Our thrust areas in the Plan period are clear: Ensure sustainable
growth in the current business portfolio through profitable
expansion and execution, scale up through business model
innovation and meet customer demands in an agile manner in
the newer businesses. This should help us clock Group Revenues
of *2.7 lakh crore and an ROE of 18%+ by FY 2025-26.
Financial
Statutory
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
2
We are targeting Group Revenues of 2.7 lakh crore and
ROE of 18%+ by FY 2025-26
• Business sustainability through sharper focus on ESG and
shareholder value creation
LARSEN & TOUBRO
Scaling up Digital and e-commerce businesses
•
•
• Exit from non-core businesses
• Value accretive growth in our current business portfolio
Our Strategic Five-year Plan christened 'Lakshya 2026',
continues to steer your Company's growth. Simultaneously,
it also responds with agility to flux in the business
environment. This year we launched Lakshya 2026, built
around the following themes:
Strategic Plan
The Company's policy of aiming for wider geographic
dispersal continues to yield positive results while de-risking
exposure. While the Middle East region remains an area of
focus, your Company has expanded its outreach to several
countries in Africa as well as South East Asia. Currently, the
Middle East region constitutes 76% of the international
Order Book of 95,227 crore.
International Business
It gives me great pleasure to inform you that the Board of
Directors has recommended a final dividend of 22 per
share for FY 2021-22.
Developing innovative business offerings to ride the
energy transition wave
Reports
Statements
Training and Talent Management
Resilience and Value Creation
Forward looking organisations constantly evaluate how the
world is transforming and course-correct to stay ahead of
the curve. At L&T, our relentless endeavour has been to pivot
the organisation on its core strength of engineering and
technology to enhance shareholder value.
The best time to change is now
Renewing Focus, Revitalising
Portfolio, Reaffirming Values
S. N. Subrahmanyan
CEO & MD
I MESSAGE FROM THE CEO & MD
3
Jai Hind!
My heartfelt greetings to you all as India celebrates
'Aazadi ka Amrit Mahotsav'.
My special thanks to all our shareholders for the trust you
have reposed in us. You remain an invaluable pillar of
strength, and I look forward to your continued support in our
journey towards setting higher levels of excellence.
I would like to thank our employees, our customers, supply
chain partners and the Government for their contribution,
directly and indirectly, to our growth. I also thank my fellow
Board Members for their invaluable support in guiding the
Company through turbulent times.
Conclusion
Amid all this, there is good news on the technology front.
Paradoxically, it took a pandemic to open our eyes to the
latent benefits of digital technologies. These technologies are
irrevocably changing the way we work and interact with each
other. Also, the IT spends are possibly the only deflationary
force in today's inflationary world. Another positive result
has been a heightened awareness of sustainability and a
more rigorous emphasis on Environment Protection, Social
Responsibility and Governance frameworks.
We live in an age of unpredictability. Just when it appeared
that the world had come to terms with the pandemic and
that the worst was behind us, war broke out in Europe,
dashing hopes of achieving the stability essential for growth.
In the interdependent world we live in, conflagrations are
no longer confined to the boundaries of the combatant
countries. This has disrupted the global supply chains and
triggered an alarming spike in prices. The consensus view is
that prices of various commodities would remain elevated in
the near term.
Outlook
As stated in the past, I wish to reiterate that our defence
business does not manufacture explosives or ammunition
of any kind, including cluster munitions or anti-personnel
landmines or nuclear weapons or components for such
munitions. The business also does not customise any delivery
systems for such munitions.
With regard to governance, the Company's core values
pivot around the principles of independence, transparency,
accountability, responsibility, compliance, ethics and trust. We
will continue to uphold the value systems which have been the
traditional hallmark of Larsen & Toubro for over eight decades.
Your Company has set for itself a Water Neutrality and
Carbon Net Zero target of 2035 and 2040 respectively. We
are already present in EPC Solar and Water space and are
now actively looking at expanding our footprint in Green
Hydrogen and Energy Storage. With more and more countries
signing up for time-bound zero emission targets, lucrative
business opportunities should emerge for your company in
green hydrogen, storage solutions, renewables and the world
of data infrastructure.
I am very happy to inform you that this is the maiden issue of
our Integrated Annual Report, bringing together our financial
and sustainability performance across multiple parameters.
While the world seems to have suddenly woken up to the
perils of climate change, for your Company sustainability
is nothing new. We have been at the forefront of many
sustainability initiatives long before they were mandated by
law. Since 2008, we have maintained an annual reporting cycle
for our sustainability performance. These reports are accessible
on the Company's website.
Sustainable Development
People are at the heart of our successes and our continuing
endeavours to do better. Our HR policies are crafted to ensure
professional growth while contributing to the employee's
sense of pride and well-being. We also leverage technologies
as we anticipate and adapt to changing requirements. For
instance, our digitalisation initiatives enabled us to provide
learning experience to our employees, even as they worked
remotely during multiple lockdowns.
Your Company continues to focus on shareholder value
creation by divesting non-core assets, capturing cost
efficiencies and leveraging technology for productivity gains.
Our strategically diversified business portfolio, geographical
dispersion, robust balance sheet and strong Order Book
are reliable signposts pointing to a brighter future. Further,
the Company's proven execution strengths and committed
workforce are helping it to seamlessly transition to a more
digitally evolved work environment. This should enable the
business to thrive once the immediate challenges posed by
pandemic and the geopolitical uncertainties are behind us.
employed metrics have reported progress, leading in turn to
improved return ratios for the Group. The Group has repaid
borrowings during the year resulting in improved
Debt-to-Equity ratios.
A healthy Operational Profit After Tax at 8,572 crore,
representing a growth of 23% over the previous year.
Thanks to robust operational cash flows, our capital
As on March 31, 2022, the Order Book at 357,595 crore
is large, growing and diversified. The Infrastructure segment
has a 73% share of the consolidated Order Book. The Order
Book registered a growth of 9%, on the back of orders
secured in projects businesses.
Statutory Financial
Reports
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
LARSEN & TOUBRO
L&T shall foster a culture of caring,
trust and continuous learning
while meeting expectations of
employees, stakeholders and society.
and attaining global benchmarks.
L&T-ites shall be an innovative,
entrepreneurial and empowered team
constantly creating value
committed to total customer satisfaction
and enhancing shareholder value.
L&T shall be a professionally-managed
Indian multinational,
VISION
S.K. TOUBRO
H. HOLCK-LARSEN
SUSTAINABILITY
IS PROGRESS
R for Rupee
Tfor 
Tree
00
LARSEN & TOUBRO
Integrated Annual Report
2021-22
LARSEN & TOUBRO
FY 2021-22 saw L&T-ites yet again demonstrate their
resilience and spirit to first overcome the challenges posed by
the pandemic and thereafter reorganise themselves to push
forward. During the pandemic, the prime focus was to stand
by our employees, workmen, vendors, and the community at
large. Driving the need to stay safe, we ensured that most of
our employees were vaccinated through regular vaccination
drives. I sincerely thank all our employees, workmen, and
other stakeholders for standing by the organisation during
those tough times.
Statements
A. M. Naik
The L&T Group recorded revenues of ₹156,521 crore during
FY 2021-22, registering a growth of 15%. The growth was
aided by improved project execution and manufacturing
activity further complemented by a strong pick-up in the
services businesses amidst a volatile macro backdrop.
In a year marked by several disruptions, your Company
turned in a creditable performance and registered
appreciable recovery across key performance parameters.
Our Order Inflow for the year at 192,997 crore was
achieved on the back of major domestic and international
order wins in Hydrocarbon and Infrastructure. Although
the domestic ordering environment was a shade below
expectations, the international environment, especially in
the Middle East, is a cause for cheer.
Group Performance Review
Internationally, we expect the GCC economy to remain
buoyant with a strong capex fuelled by prevailing oil prices.
Infrastructure and hydrocarbon opportunities are likely
to open up in the African sub-continent on the back of
enhanced bi-lateral/multi-lateral funding support.
Since infrastructure investments serve the dual purpose of
driving productivity and generating employment, we believe
the underlying macro drivers for growth remain intact. Your
Company is poised to capitalise on these opportunities as
they emerge.
India's FY 2022-23 Budget focusses on consolidation with
a capex-driven infrastructure thrust where the Government
will do the heavy lifting and the private sector steps in to
play its part. Most of the initiatives undertaken, ranging
from NIP to NMP, creation of DFI, the PLI scheme, the
public procurement initiatives as well as the renewed PPP
models, have an overarching infrastructure focus. Clearly,
they are directed to coax capex back into play. We hope
that a reasonably stable domestic macro environment
and an equable socio-economic climate will enable the
Government to realise the vision envisaged in the NIP
blueprint. Public and private investments working in
tandem should also resuscitate India's Investment / GDP
ratio which has been stagnant.
Driving Growth
Integrated Annual Report 2021-22
1
India is expected to post top quartile growth among
emerging nations in the medium term. Challenges
hovering on the horizon include runaway oil prices, supply
chain disruptions and the US rate hikes affecting capital
flows into India. Despite these roadblocks, however, our
view is that the bold structural reforms carried out by
the Government in the last couple of years will pave the
way for improved quality of growth. A slew of incentive
schemes launched by the Government should stimulate
manufacturing and exports in our run up to becoming a
USD 5 trillion economy. Leveraging its expertise in high-
tech manufacturing, your Company is well-positioned to
take advantage of the opportunities as they unfold.
in exports in FY 2021-22. Consequently, the economy
expanded at 8.7% in real GDP terms vis-à-vis a contraction
in the previous financial year.
After years of stagnation, India witnessed a pick-up
An improved borrowing programme for the Centre and
State Governments also meant that the spending proposals
envisaged in the Budget continued unhindered. Most of
the high frequency, mobility and service indicators gained
momentum as the easing of pandemic curbs saw demand
regaining lost ground before geopolitical tensions erupted
to set the clock back once again.
FY 2021-22 was an economic roller coaster with the
impact of recurring bouts of COVID-19 and global disquiet
counter-balanced to some extent by Country's economic
resilience. Regular government spending throughout
the year complemented by liquidity easing measures
by the Reserve Bank of India prevented the risk of an
economic meltdown and helped bolster the confidence of
households and private companies.
Business Scenario
macroeconomic and geopolitical upheavals, India has
managed to stay the course in its quest for growth. Your
Company has also performed well while operating within
the given constraints. At this juncture, we wish to reiterate
our commitment to advance the interests of our country
and express our solidarity with the nation and
its leadership.
Robust self-belief and resilience are the key to success in
times of uncertainty and challenge. This spirit has helped
India contend with an unprecedented pandemic and,
in rapid succession, a war in Europe with its attendant
disruptions. It is indeed creditable that amidst these
Dear Shareholders
resilience - the key to success
in times of challenge.
Robust self-belief and
Group Chairman
| CHAIRMAN'S STATEMENT
Despite severe headwinds, we ended FY 2021-22 on a strong
note on the back of several prestigious order wins. The Order
Book at around 3.6 lakh crore is not only the highest in the
history of the Company but is also diversified and growing.
Integrated Annual Report 2021-22
During the year, we formulated our Lakshya 2026 strategy
plan to sustain the present momentum and create value
over the Plan period up to FY 2025-26. In this exercise, the
Company seriously introspected and rededicated itself to its
core focus areas of EPC Projects, Hi-Tech Manufacturing and
Services.
Standalone Financials - 10 Year Highlights
L&T Nationwide Network & Global Presence
Executive Committee
17
16
14
13
12
Chairman & Board of Directors
10
9
Leadership Team
Company Information
Lakshya 2026
1
| CONTENTS
Integrated Annual Report 2021-22
7
Finally, we will always remember that we are in the
business of nation building. For that, we must remain
passionate, optimistic, calm, patient and stay united in
our shared sense of purpose.
Challenges are part and parcel of our journey, and we
are ever prepared to face and overcome them through
continuous learning, unlearning, and relearning.
L&T is fully-geared for the next phase of growth to evolve,
accept, and adopt newer ideas as we revamp our portfolio
and equip our people with tomorrow's skillsets. Adapting
and assimilating smart technology will play a significant role
going forward.
Consolidated Financials - 10 Year Highlights
L&T - A Technology Company
2
18
8
623
Shareholder's Satisfaction Survey Form - 2021-22
Information Regarding Subsidiary Companies
611
483 Consolidated Financial Statements
Standalone Financial Statements
363
Financial Statements
5
Board Report
280
258
210
AGM Notice
Business Responsibility & Sustainability Reporting (BRSR)
Statutory Reports
4
118
Integrated Report
3
Management Discussion & Analysis
We have always believed in sharing value with our various
stakeholders and our CSR initiatives, aligned with the
global and national development objectives, primarily
focus on healthcare and education & skilling to help more
Indians become capable to earn themselves a living. In
FY 2021-22, the Company spent 136 crore on
CSR activities. Apart from spending on CSR-oriented
projects covering water and sanitation, natural resource
conservation, climate change mitigation and adoption of
renewable forms of energy, L&T also responded to the
pandemic by assembling 38 PSA oxygen generation units
and transporting those across to different parts of the
country which were worst affected. Cumulatively, 1.1
million benefitted from our CSR initiatives in FY 2021-22.
Corporate Overview
Statements
Cash flow is the lifeline of any business and we have
paid close attention to the cash flow profile at the Group
level. As we see it, cash generation during the Plan period
will be the outcome of improved profitability and lower
employment of capital. Further, as I mentioned earlier,
we are looking at unlocking capital through the sale of
some of our non-core assets to boost cash balances. The
Company will explore option to step up pay-out ratios over
time in addition to returning cash to shareholders which
will accelerate ROE improvement.
Company-wide Perspective
opportunities in the Green Hydrogen BOO projects space will
be housed in this portfolio too. We would like to complete
the divestment of L&T IDPL and Nabha Power during the
current Plan period and unlock their value. In Hyderabad
Metro, a combination of capital restructuring, improved
operations, and monetisation through Transit Oriented
Development should generate value over time.
Developmental Projects or the concessions portfolio will
now largely constitute the Hyderabad Metro while emerging
In the Realty business, we are looking for growth in
the residential and commercial spaces through multiple
formats under the larger objective of developing captive
landbanks to leverage existing investments. Smart World &
Communication will mature from the current EPC / O&M
format to that of a total Smart Solutions Provider model that
will enable us to provide complete end-to-end technology
solutions. We will also grow our Industrial Machinery
& Products portfolio, primarily comprising Construction
Equipment and Valves, as demand picks up.
The Realty, Smart World & Communication and
Industrial Machinery & Products businesses will comprise
the 'Others' segment.
This business, following the philosophy of 'Shrink to Grow',
will reorganise its existing lending portfolio and migrate
towards retail lending over time. We believe a growing
digitalised retail portfolio, with a focus on upselling and
cross-selling, will yield higher returns and lead to significant
improvement in valuation.
Giving Back to the Society
The IT&TS portfolio will also have the in-house incubated
e-commerce and digital platforms that were launched in
FY 2021-22, SuFin and Edutech as well as the Data
Center Business.
Future Ready Initiatives
This portfolio includes LTI-Mindtree and LTTS. The IT&TS
businesses will continue to balance the risk and cyclicality
associated with the traditional projects and manufacturing
segment. The momentum from existing and emerging tech
trends such as Cloud, Digital, Al, Industry 4.0 is expected
to propel growth in the near term. This portfolio will aim at
Revenue growth in the high teens during the Plan period and
be vigilant to tap opportunities for inorganic growth as they
emerge. Making all these plans work will undoubtedly need
high calibre digital talent, and we intend to on-board the
finest minds in the industry.
The Services portfolio is in a sweet spot with the potential for
accelerated growth. I am also happy to inform you that our
teams are performing creditably in an intensely competitive
scenario. Going forward, the Services portfolio will comprise
two segments: IT&TS Businesses and Financial Services.
LARSEN & TOUBRO
Statutory Financial
Reports Statements
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
4
Value creation in the EPC Projects and Hi-Tech Manufacturing
businesses will be a combination of margin improvement and
lower deployment of capital.
The EPC Projects portfolio will focus on the Infrastructure
and Energy sectors, with the 'Infrastructure' segment
continuing to include all our construction businesses,
targeting Order Inflow and Revenue growth between 11 and
13%. The 'Energy' segment will comprise the Hydrocarbon,
Power, and Green Hydrogen EPC businesses. We will strive
for timely delivery and, wherever possible, early completion
in all the projects that we execute. Profitability will be driven
by a combination of productivity of resources, operational
excellence, as well as our on-going digitalisation drive.
Hi-Tech Manufacturing includes the Heavy Engineering
& Defence Engineering businesses. Additionally, the
manufacture of Electrolyzers and Battery Energy Storage
Systems will form part of this portfolio. We will target Order
Inflows and Revenue growth of 18%+ and improve and
sustain profitability thanks to our several initiatives revolving
around Design Excellence, Automation, Value Engineering,
Factory 4.0, and On-time Delivery.
IT&TS Business Portfolio
We, at L&T, are committed to face the global climate
change crisis and shape the future around frontier
technologies to mitigate the ill effects of climate change.
We do believe that alternative fuels such as Green Hydrogen
will go a long way to create a cleaner environment and
contribute towards the nation's energy security. We have a
unique opportunity to play a significant role to accelerate
the ecosystem around Green Hydrogen, with our thrust in
both the EPC and BOO spaces, coupled with the backward
integration of manufacturing electrolysers and grid battery
energy storage systems.
Financial Services
5
LARSEN & TOUBRO
On the digital front, there is maturity in understanding
data security, data ownership and the Government is also
continuing its thrust for data localisation. Thus, the new Data
Center and Cloud Services businesses are distinctly positioned
to achieve scale in the future. Another dimension to the
digital world is e-commerce and the boom of services being
delivered through the internet. In these spaces, we intend to
capitalise on our engineering DNA to design superior services.
We have made moves in the e-commerce space through
Discussion and Analysis
Management
Corporate
Overview
6
We are also taking serious steps to increase the percentage
of women in the workforce to 10% from the current 6%.
Creating the ecosystem required for not letting biases,
stereotypes, and discrimination creep into decision making
and letting objectivity define the best person for any job
has been and will remain the endeavour for creating equal
opportunity for all genders.
It is our endeavour, as an organisation, to provide the
right atmosphere, an enabling environment, and the right
incentives to realise one's potential and take the organisation
to the next level. Through the projects that we undertake,
which are some of the biggest, largest, tallest, and heaviest,
we are committed to creating opportunities at all levels
for people to give expression to their creative instincts and
unleash their potential.
People are intrinsic to any business both in terms of being
one of the goals for which they are run as well as the means
to achieve this goal. I have often mentioned that L&T is
a great technology platform that nurtures and rewards
hardworking, sincere, honest, and dedicated individuals.
Every person we employ adds value to the organisation.
The value that some individuals add is apparent while for
some others it is embedded deep inside and takes the right
atmosphere for it to manifest.
People
Integrated Statutory Financial
Report
Reports
Raising the Bar
Good governance has been integral to L&T's DNA for
decades. We have always practised the highest level of
governance and intend to keep raising the bar. We actively
seek and adopt newer, better ways of doing things to keep
setting new industry benchmarks.
Integrated Annual Report 2021-22
Greener and Brighter Tomorrow
With a vision of 'Technology for Sustainable Growth',
the Strategy Plan factors in Climate Change and what we
must do to push the agenda for a greener and sustainable
tomorrow within the organisation as well. While the
set specific targets may be new, proactive environment
conservation is not new to L&T. We have committed to
Water and Carbon Neutrality by 2035 and 2040 respectively.
We have also set for ourselves interim targets on various
parameters of ESG up to FY 2025-26.
We are taking steps to reduce waste production through
improved recycling initiatives that encourage our people
to develop and sustain environment friendly habits. Apart
from our operations and services, we are also working with
our partners, to reduce emissions and create a significant
impact. Some note-worthy achievements related to our
environmental performance include avoiding emission of
around 40,000 tonnes of CO2 during the year, which is
equivalent to planting 500,000 trees. Our cumulative energy
conservation is around 150 million units, which is equivalent
to powering 70,000 homes for a year.
SuFin, our B2B platform for the trade of industrial products
and services, where we put power in the hands of SMEs
and MSMEs and our EduTech platform, through which we
empower students seeking practical and application-oriented
engineering courses.
Digital and Technology Adoption
We cannot emphasise enough the importance of
digital technology adoption in both EPC Projects and
Manufacturing operations. In Manufacturing today, most
activities are automatically controlled. The amount of data
that is generated and monitored gives us a differentiated
advantage vis-à-vis competition in terms of visibility of
operations and remote control over various processes.
In various projects today, more than 13,000 equipment
are digitally connected providing real-time visibility into
operations. We also have quality and safety checks on
mobile apps, which also include a database with details of
our workers, their skill sets, and their home addresses. The
entire site topography is being mapped through drones and
light detection and ranging (LiDAR) sensors. Safety measures
for workers are being communicated through augmented
and virtual reality. Such level of digital adoption substantially
increases productivity, improves quality and safety. This is an
on-going journey, and all possibilities will be explored and
implemented in the future too.
We are keenly focused on Circular Economy using the 6R
(reduce, reuse, recycle, repair, refurbish and rethink) approach
to manage waste and improve material recycling and reuse.
Cumulatively, we have planted around 6 million multispecies
trees, and our focus on biodiversity and protection of
natural resources is sharper than ever. Our portfolio of green
businesses, which includes solar, water, green hydrogen, and
some others, is steadily growing and presently constitutes
>30% of the total revenue.
97
L&T POWER DEVELOPMENT
GROUP
Integrated Annual Report 2021-22
2x700 MW Supercritical Technology based Thermal Power Plant at Rajpura
mile connectivity, contactless travel, etc.) aimed at minimising
commuters' pain points, targets a higher ridership on the
Metro Rail System in FY 2022-23.
Measures like collaborations with various feeder services for
first and last mile connectivity are being taken to strengthen
fare revenue. In addition, new Non-Fare Revenue initiatives
viz. training, fibre leasing, mobile towers, etc., can add to
revenues for L&TMRHL.
A new business model of upfronting revenues from Transit
Oriented Development is being worked on with all the
stakeholders involved. These monetisation activities are likely
to get a major impetus in FY 2022-23.
Hyderabad Metro Rail is seen as an environment friendly,
safe, clean, and sustainable mode of transport with best
practices adopted by L&TMRHL. With Government planning
to implement Phase II of the Metro project, it will significantly
enhance the average ridership of the metro network in the
medium to long term.
L&T Power Development Limited, a wholly-owned subsidiary
of L&T, is engaged in developing, operating and maintaining
power generation assets. The portfolio currently comprises a
single project in the thermal sector viz. Nabha Power Limited
which owns and operates a 2 X 700 MW supercritical thermal
power plant at Rajpura, Punjab.
NPL owns and operates a 2 X 700 MW supercritical thermal
power plant at Rajpura, Punjab. The entire power generated
from this plant is sold to Punjab State Power Corporation
Limited (PSPCL) under a 25-year Power Purchase Agreement
(PPA) which is effective till 2039.
which commenced its commercial operation from January
2021, was sold to ReNew Power on August 30, 2021. This
transaction is in line with the Company's strategy to pursue
the divestment path for all non-core assets in its portfolio.
Nabha Power Limited (NPL)
Overview
The plant sources its fuel from South-Eastern Coalfields Ltd.
(SECL) and Northern Coalfields Ltd. (NCL), subsidiaries of
Coal India Limited, under a 20-year Fuel Supply Agreement
(FSA). The FSAs are for a total annual contracted quantity
of 52.4 lakh MT. The Company has also secured approvals
to arrange coal from alternate sources to make up for any
shortfall in supply of coal under the FSA. The Bhakra-Nangal
distributary is the perennial source of water for the plant
under an allocation by the State Government. The plant is
operated by an in-house team of experienced operations and
maintenance professionals.
The power plant is running successfully for over eight years
with an average availability of over 85%. The plant has been
the most reliable source of power for the State of Punjab and
has supported its requirements with uninterrupted supply
during peak seasons. NPL also happens to be the lowest
cost coal-based power producer within Punjab with best
operational efficiency.
98
Management
Integrated Statutory
Discussion and Analysis Report
With the COVID-19 pandemic waning, it is expected
that the daily commute in Hyderabad across the various
modes of transport shall be around 9 million, up from 5
million in FY 2021-22. The upcoming transport scenario
shall be influenced by minimum social distancing, IT/ITES
sector working from office, school and colleges reopening
completely, increased travel by senior citizens and reduced
private transport due to increased road congestion.
Considering the above, L&TMRHL by virtue of providing
safe, clean, comfortable, and punctual travel along with
various value-added initiatives (robust and affordable last
During the year, the Company's stake in the 3 X 33 MW (99
MW) Singoli-Bhatwari Hydro-Electric Plant in Uttarakhand,
Outlook
Corporate
Overview
.
Digital collections and servicing, thereby reducing
branch/call centre dependency and converting the non-
mandate customers
Increasing upsell and crosssell across businesses, thus
resulting in enhanced customer engagement
lead generation, end-to-end digital workflows, digital
partnerships and e-aggregators
Sourcing for onboarding customers directly through
•
•
•
•
LTFH launched a Direct-to-Consumer (D2C) mobile
application named 'LTFS Planet' (Personalised Lending and
Assisted NETworks) to fulfil the objectives of:
Major Achievements
LTFH launched UPI based payments which amplified the
customer experience alongside easing the collection efforts.
C) Digital Initiatives
The Company continued to capitalise on the low interest
rate environment in FY 2021-22 and has been able to
lock-in long-term low-cost funding. It raised long-term
borrowing of 15,293 crore in FY 2021-22 with an average
maturity of 3.22 years.
practice, LTFH has been maintaining LCR ratios well above the
regulatory required ratios.
Infrastructure Finance
Integrated Annual Report 2021-22
91
The Liquidity Coverage Ratio (LCR) guidelines announced by
the RBI came into effect from December 2020. As a prudent
In FY 2021-22, LTFH leveraged its strong liability franchise
to further reduce its weighted average cost of borrowing
(WAC). This was done through renegotiation of interest rates
on existing borrowings, prepayment of high-cost borrowings
and raising of long-term low-cost borrowings such as Priority
Sector Loans (PSL) as well as Sustainability Linked Loan (SLL).
The yearly WAC reduced by 58 bps from 8.08% for FY 2020-
21 to 7.50% for FY 2021-22 helping to achieve the lowest
ever yearly WAC.
B) Proactive Liability Management and
Diversification of Borrowings
LTFH scaled up its first 'Digitally Native' Product-Consumer
Loans (2,254 crore disbursement in FY 2021-22) at a rapid
pace and launched a pilot for a new product - Small and
Medium Enterprise Loans (SME loans) in Q3 FY 2021-22. The
SME products are aimed at addressing the financing needs of
the professionals (mainly doctors and chartered accountants)
and specific industries which have shown resilience during
successive waves of COVID-19.
A) New Retail products
During FY 2021-22, along with addressing the challenges
posed by the COVID-19 pandemic, the business focused
on retailisation, sustainability of performance with steady
margins, improving asset quality and building a strong
liability franchise. The specific focus for the year was on the
following areas:
Providing insights on customer behaviour based on the
deep tech and data analytics
Significant Initiatives
During the year, LTFH's AAA rating was reaffirmed by all four
rating agencies - CRISIL, ICRA, CARE and India Ratings. Also,
Outlook
Loan Book and NIM + Fees%
5000
10000-
13404
15000
(10.7%)
Gross Revenue
20000
*crore
(NIM) including fee income improved from 6.95% to 7.84%
mainly due to the increase of share of rural portfolio, higher
fee income and reduced cost of borrowings.
The Financial Services segment comprises Rural, Infrastructure
and Housing Finance.
Financial Performance of the Segment
Micro Loans
Statements
LARSEN & TOUBRO
Financial
Management
Integrated Statutory
Discussion and Analysis Report
Reports
Corporate
Overview
92
LTFH plans to be a top-class, digitally-enabled retail finance
company moving from a 'product-focused' to a 'customer-
focused' approach, thereby creating a Fintech @ Scale. LTFH
with a CRAR of 23% is well poised to leapfrog into this next
phase of growth through vectors like continued product
excellence, cross sell and upsell to existing good customers,
geographical expansion, launch of new products and App &
Digital-based channel expansion.
Bond yields and bank interest rates will rise at a faster pace
because of adverse spill overs from the actions of global
central banks, higher market borrowings by the Central and
State Governments and inflation risks.
While economic growth in FY 2022-23 will be driven by
another year of normal monsoons, higher public investment
and private capex in select pockets supported by the
Government's PLI scheme, there will be headwinds from the
global economic slowdown and higher commodity prices,
especially oil.
At the end of FY 2021-22, risks to India's economic growth
have shifted from the COVID-19 pandemic to geopolitics,
elevated crude oil prices and interest rate hikes by the US
Federal Reserve.
in August 2021, ICRA changed its rating outlook for the
Company to 'AAA/Stable' from 'AAA/Negative'.
*crore
The RBI tightened NBFC asset classification norms by issuing
guidelines on Income Recognition, Asset Classification
and Provisions (IRACP) .The revised norms prescribed the
classification of Special Mention Account (SMA) and NPA on a
day-end position basis and upgrade from an NPA to standard
category only after clearance of all outstanding overdues.
Further, the RBI brought in the Prompt Corrective Action
(PCA) framework, which was aimed at increasing market
discipline among non-bank players and align the regulations
at par with those of banks.
The regulatory environment saw lot of changes with the RBI
issuing multiple guidelines for harmonising policies between
all lending institutions.
Integrated Annual Report 2021-22
89
In FY 2021-22, the Micro Loans business registered healthy
volumes driven by normalised collections and better-than-
industry asset quality. Strategic initiatives like product-focused
set targets and new product launch helped clock the highest
ever quarterly disbursements of ₹3,881 crore. LTFH increased
its focus on retaining customers with an excellent repayment
track record with a share of repeat customers at 55% in Q4
FY 2021-22 through loan products like Vishwas Loans and
Pragati Loans. The Company continued to deepen channel
presence in states like Bihar, Punjab and Karnataka and
increased geographic diversification by addition of a new
state of Rajasthan. Enhanced focus on collections during
the year backed by data analytics led to collection efficiency
reaching 99.6% during March 2022.
Micro Loans
Despite the industry de-growth of 11% y-o-y, LTFH
maintained its leading position with a stable market share
of 11% on the back of extensive use of analytics, capturing
higher counter shares amongst dealers, focusing on
financially prudent customers, increasing finance penetration
to provide sustainable future growth and by providing the
best-in-class turnaround time of 45 seconds on loan sanction.
Two-wheelers
Kisan Suvidha Loans. LTFH maintained its leading position with
a stable market share of 15%. The collection efficiency of LTFH
at 94% in March 2022, continues to remain the highest in the
industry and has surpassed the pre-COVID-19 levels.
While the industry de-grew by 6% y-o-y, LTFH performed
relatively well through a focus on preferred dealer and OEM
strategy and enhanced focus on customer retention through
Farm
Retail became the largest lending segment for LTFH in
FY 2021-22 with 51% share in the entire loan book.
Additionally, the collection efficiencies have surpassed the
pre-COVID-19 levels.
RETAIL FINANCE
•Investment Management
• Wholesale Finance (infrastructure finance and real
estate finance)
• Retail Finance (farm equipment finance, two-wheeler
finance, micro loans, consumer loans, home loans, loans
against property and small & medium enterprise loans)
L&T Finance Holdings Ltd. (LTFH) is the holding Company
for the financial services business of the Larsen & Toubro
Group. It is one of India's most diversified NBFCs, having a
strong presence across lending and investment management
businesses. LTFH was incorporated in 2008 and in 2011, it
went on to become a public-listed company. Headquartered in
Mumbai, LTFH has a strong network of branches and dealers
across India catering to the business requirements of a 99
lakh+ customer base across core businesses as given below:
Overview
| FINANCIAL SERVICES BUSINESS
Farm Equipment Finance
Statements
Reports
LARSEN & TOUBRO
Financial
Considering developments in mobility, L&TMRHL has tied
up with partners to setup Electric Vehicle charging points at
different metro stations. A total of 55 charging points are
available across Hyderabad Metro stations
Housing Finance
To strengthen supervision over NBFCs, the RBI introduced scale-
based regulation and revised Non Performing Assets (NPA)
recognition and upgradation norms during October 2021.
Consumer Loans
Home Loans
The Indian financial sector remained fully functional during
FY 2021-22 and anchored the process of economic recovery.
However, in the last quarter of FY 2021-22, the post-
pandemic recovery of Indian economy was partially affected
by the disruption caused by the war in Ukraine and the
consequent economic sanctions on Russia, which are likely to
reduce global growth and push up inflation.
India's Consumer Price Index (CPI) based inflation averaged at
5.5% in FY 2021-22 versus 6.2% in the corresponding period
of the previous year. While softening of food prices provided
some relief, the hardening of crude oil prices presented a
major headwind to the inflation outlook.
However, private consumption spending, especially in the
rural belts continued to stay weak throughout FY 2021-22,
led by an uneven monsoon, weak non-farm employment
generation and unfavourable terms of trade for farmers.
Real Estate Finance
Statements
Reports
LARSEN & TOUBRO
Financial
Management
Integrated Statutory
Discussion and Analysis Report
Corporate
Overview
The Indian economy reverted to growth mode in FY 2021-22
after a decline in FY 2020-21. Just as the economic revival
was seen in the latter part of first half of FY 2021-22, the
second half of FY 2021-22 again faced another wave of the
COVID-19 variant, though the adverse impact was limited.
Business Environment
LTFH announced the stake sale of its mutual fund business in
December 2021. The transaction is expected to be effected
post receipt of regulatory approval.
INVESTMENT MANAGEMENT
LTFH continued its strategy of focus on tranche disbursements
to existing projects to ensure construction is not stalled.
The emphasis was laid on rigorous portfolio monitoring
for identification and implementation of corrective action
plan. Continued focus on completion of existing Real Estate
projects which resulted in re-payments / prepayments of over
3,000 crore in FY 2021-22.
Real Estate
Consequent to the merger of L&T Infrastructure Finance
Company Limited with L&T Finance Limited, RBI has advised
LTFH to take steps to convert the IDF - NBFC business to
an NBFC - Investment and Credit Company (NBFC - ICC).
Accordingly, L&T Infra Credit Limited has applied to the
Reserve Bank of India (RBI) for conversion to an NBFC – ICC.
LTFH's funded road annuity projects are receiving timely
payments from NHAI. Toll collections rebounded in FY
2021-22 from the impact of COVID-19 pandemic influenced
lockdowns in FY 2020-21.
LTFH continues to be one of the leading players in the
infrastructure finance business (with a special focus on
Renewable, Roads and Transmission lines). The Company
continued concentrating on projects with strong sponsors
and off-takers with a proven track record.
Infrastructure Finance
WHOLESALE FINANCE
LTFH re-initiated disbursements in Self-Employed Non-
Professional (SENP) and Loan Against Property (LAP) segments
with revamped market offerings through Direct Selling
Agents sourcing towards the latter part of the year.
LTFH focuses on the Home Loan market through its presence
in 17 locations across India. A digital lending model coupled
with paperless sanction of home loan to salaried customers,
led to a unique offering that helped in quick turnaround of
proposals. During the year, the contribution of Home Loans
as a part of total retail housing disbursements has increased
from 85% in FY 2020-21 to 96% in FY 2021-22.
Consumer Loans is LTFH's first Digital Native product. It
is an entirely digital proposition, with no-touch sourcing
and instant decisioning. The whole process of login to
disbursement takes less than 30 minutes, which is the USP of
the Company in the market. It was launched as part of cross
sell strategy to existing two-wheeler customers and recently it
made an entry into the Education Loan sector. The Company
aims to build a sustainable quality portfolio backed by a
robust underwriting framework and leveraging digital and
analytics which enabled Collection Efficiency in this portfolio
reaching -99.7% in March 2022.
98000-
90
92000
Outlook
The Company has also pursued innovative accident reduction
measures including adopting of Behavioural Science approach
solutions, which aims at studying driver behaviour and design
solutions to bring about behavioural changes. This has
been successfully implemented at one of its SPVs which has
resulted in reduction in accidents / fatalities and hence it will
be rolled out in other projects as well.
As a part of process automation, the Company developed
an intuitive Highway Management System christened as
'IHAMS'. This is yet another industry-first innovation that
is transforming the way assets are managed under O&M.
This solution is an AI / ML-based video-analytics application
which detects damaged / missing assets without any human
intervention by using dashcams installed in Route Patrolling
Vehicles. The system was successfully piloted at one SPV and
will be implemented at the other SPVs. Also, the system is
being improved for better usage and is being planned to be
integrated with SAP S4 HANA ERP in FY 2022-23.
working off-line, capturing A/V and pictures, various
measurement readings, preventive and corrective maintenance
and optimising consumption of spares for asset repairs.
The Hyderabad Metro adds efficiency to city mobility
Integrated Annual Report 2021-22
95
The dedicated mobile app for O&M of the roads and power
transmission line business launched by the Company was
integrated with ERP and ArcGIS Online (ESRI, a map-based
server), and has successfully run without disruption. The mobile
app's salient features include capturing GPS coordinates,
Significant Initiatives
In March 2022, one of the flagship projects of L&T IDPL,
namely, Vadodara Bharuch Toll Road of 498 lane km reached
the end of 15 years of concession period and was later
transferred to NHAI, after settling all outstanding liabilities and
disputes. The transfer of the project on March 17, 2022, and
the Vesting Certificate was issued by NHAI within 16 minutes
of transfer of project, which was the fastest in NHAI's history.
During the year, Kudgi Transmission consistently achieved
availability of 99.99%, thereby qualifying it to receive
incentive payments over and above the transmission tariff.
L&T IDPL holding company has become a zero-debt
company during the year and has complied with procedural
submissions to NSE in this regard. Consequently, the
Company has applied to RBI for surrendering the NBFC CIC
registration. The requisite RBI formalities in this regard have
been complied with and the Company is awaiting the final
approval confirming de-registration.
Major Achievements
As FASTag (Electronic Toll Collection) has been made
mandatory with effect from 15th February 2021 for all the
vehicles plying on NHAI roads, Electronic Toll collections as a
proportion of total toll collections is currently over 96%. This
digitalisation has resulted in reduced cash-handling and its
associated costs.
The operations have been fairly normal during the year,
barring the impact of the second wave of COVID-19 and
the farmer's agitation in the National Capital Region and the
surrounding areas, which lasted till mid-December 2021.
In order to mitigate the impact of the pandemic, the Union
and State Government authorities have granted an extension
of the concession period of such affected projects.
Business Environment
Over two decades of extensive experience in developing
various infrastructure projects and working with
governments, financial institutions, and corporate entities,
has helped the Company to develop proven competencies in
Viability Assessment, Financial Closure, Project Management,
Operations & Maintenance and Portfolio Management of
infrastructure assets across various sectors.
with the Union and State Governments. Since its inception in
2001, the Company has developed landmark infrastructure
projects across key sectors such as roads, bridges,
transmission lines, ports, renewable energy, and urban
infrastructure. It is one of India's largest road developers as
measured by lane kilometres under concession agreements
signed with Union and various State Government authorities.
Currently, its portfolio includes nine roads & bridges projects
of 3,936 lane km developed and operated (one road project
in Gujarat ceased to be subsidiary during FY 2021-22) and a
transmission line from Kudgi to Bidadi in Karnataka covering
490 km. It also manages five operational road assets covering
2,748 lane km transferred to Indinfravit Trust, an InvIT that
the Company sponsored and launched in May 2018 as the
first privately placed InvIT in India, with substantial holding
from international pension funds and insurance investors.
Major junction at Sambalpur-Rourkela Tollway Limited
Statements
Reports
LARSEN & TOUBRO
Financial
In the Union Budget FY 2022-23, the total expenditure by
the Ministry of Road Transport and Highways is estimated at
being 52% higher than the revised estimates for FY 2021-22.
In FY 2022-23, it is expected to complete a road length of
around 2500 km as part of the Bharatmala project.
The National Highway Network will be expanded by 25000 km
and development of hill roads will be taken up in PPP mode
under the 'Parwatmala' scheme. The Ministry expects to raise
*86,182 crore during the next three years to fund projects
under the National Infrastructure Pipeline, by monetising its
assets under the Toll-Operate-Transfer (TOT) model and in
FY 2022-23, the Ministry plans to raise about 20,000 crore
through such monetisation which augurs well for the business.
L&T METRO RAIL (HYDERABAD)
LIMITED
• Another initiative recently launched by L&TMRHL is the
Super Saver Card targeted towards enhancing ridership on
holidays (Sundays, public holidays, etc.)
94013
• The signalling software has been upgraded in all the three
corridors for enhancing the maximum operating speed
from 70 km/h to 80 km/h, leading to a reduction in the
travel time on Corridors 1 and 3 respectively
• To boost the ridership, L&TMRHL has undertaken a few
initiatives like increasing service hours in the morning from
November 2021 and introducing a special fare product
(Suvarna 2.0 offer) from October 2021
Significant Initiatives
8.35 MWp) at a very competitive price. This will cater to
about 10% of the energy requirement of Metro trains
• L&TMRHL has tied-up with a solar power developer for
generating captive solar power (planned capacity of about
• L&TMRHL completed the refinancing of the entire term
loan availed from the consortium of banks with a mix of
non-convertible debentures and commercial papers that
will help reduce interest expenses and improve profitability
• The business was successful in adding many new tenants
in its retail malls portfolio. Discussions are also underway
for the launch of a new income source viz. offering rights
to television channels to broadcast their exclusive content
on trains
Major Achievements
Contracts for various advertisement media including
advertisements inside trains, apart from various physical
media like piers, portals, etc., were added during FY 2021-22.
In addition, new media viz. audio advertisements in trains and
stations were launched in FY 2021-22.
The fiscal year started with the onset of second wave of
COVID-19. The State Government imposed a partial lockdown
to control the spread of the virus and allowed metro services
to operate for restricted hours. Normal operations resumed
from Q2 onwards and gathered momentum on the back of a
vaccination drive and with many small & mid-size IT companies
starting a 'return to office' policy and opening of schools and
colleges/universities. However, average ridership remained
below pre-covid levels mainly due to large IT companies
continuing to adopt WFH strategy and a general precaution
exercised by the local population to avoid / minimise the use of
public modes of transport.
Management
Integrated Statutory
Discussion and Analysis Report
Business Environment
Statements
LARSEN & TOUBRO
Financial
Integrated Statutory
Report
Reports
Discussion and Analysis
Management
Corporate
Overview
96
The Concession Agreement also includes rights for real estate
development in the form of Transit Oriented Development
(TOD) for 18.5 Mn. sq.ft., of which 1.28 Mn. sq.ft. consisting
of 4 malls and an 0.5 Mn. sq.ft. of office block have
commenced commercial operations.
L&T Metro Rail (Hyderabad) Limited (L&TMRHL) is a special
purpose vehicle created to undertake the business of
constructing, operating and maintaining the Metro Rail
System including Transit Oriented Development (TOD) in
Hyderabad under the Public Private Partnership model on
Design, Build, Finance, Operate and Transfer (DBFOT) basis.
Overview
Hyderabad Metro, Going the distance - connecting destinations
Corporate
Overview
The Metro Rail system consists of three elevated corridors
from Miyapur to L.B. Nagar, Jubilee Bus Station to Mahatma
Gandhi Bus Station and Nagole to Raidurg, in aggregate
covering a route length of 69.2 km. This network got fully
commissioned in February 2020. The remaining concession
period is approximately 25 years, extendable for a further
period of 25 years by the Company subject to fulfilment of
certain conditions as set out in the Concession Agreement
signed with the Government of Telangana.
L&T Infrastructure Development Projects Limited (L&T IDPL)
is a pioneer in the Public-Private-Partnership (PPP) model of
development in India, which involves the development of
infrastructure projects by private sector players in partnership
b) The Hyderabad Metro Rail project, executed through a
wholly owned subsidiary, L&T Metro Rail Hyderabad Limited
c) Power development projects executed through subsidiaries
of L&T Power Development Limited
a) Roads and Transmission projects developed through a
joint venture company, L&T Infrastructure Development
Projects Limited and its subsidiaries and associates (the
L&T IDPL Group)
The Development Projects segment comprises:
| DEVELOPMENT PROJECTS BUSINESS
Kudgi Transmission Lines, Karnataka
Integrated Annual Report 2021-22
93
The Financial Services business entered into a definitive
agreement with HSBC Asset Management (India) Private
Limited ("HSBC AMC") to sell its stake in the Asset
Management Company (L&T Investment Management),
subject to regulatory approvals. Average Assets Under
Management (AAUM) in the Investment Management
business is at 75,592 crore.
The Gross Non-Performing Assets (GNPA) ratio improved to
3.80% as at March 31, 2022 from 4.97% as at March 31,
2021. Net NPA ratio has increased to 2% as at March 31,
2022 against 1.57% as on March 31, 2021, with one large
value account being classified as NPA during the year.
With easing of the pandemic and resumption of normalcy
in economic activity, disbursal of fresh Loans and Advances
grew by 31% y-o-y at 37,202 crore for the year ended
March 31, 2022. The Loan Book stood at $88,341 crore
as at March 31, 2022 registering a decline of 6% over the
previous year, reflecting a cautious lending approach, focus
on collections, portfolio sell down and a phased liquidation
of the de-focused business book. The Net Interest Margins
The segment's revenue declined by 10.7% y-o-y at ₹11,971
crore for FY 2021-22 due to targeted reduction in the
wholesale loan book.
Financial Performance of the Segment
11971
2021-22
2020-21
2020-21
80000
0-
88341
7.84
84000
6.95
94
88000
Loan Book
Gross Revenue and EBIDTA
2021-22
NIM + Fees%
4368
DEVELOPMENT PROJECTS
LIMITED (L&T IDPL)
20.6%
L&T INFRASTRUCTURE
The funds employed by the segment as at March 31, 2022 at
*20,136 crore, lower by 5.9% compared to March 31, 2021
mainly due to the divestment of Singoli-Bhatwari Hydro-
Electric Plant.
The segment reported an operating profit of 100 crore for
FY 2021-22, lower than *194 crore reported in FY 2020-
21. The drop is mainly on account of non-consolidation of
NPL profits with the management's decision to carry the
investment in NPL at realisable value.
The segment recorded revenue of ₹4,368 crore for the year
ended March 31, 2022, higher by 20.6% over the previous
year. The growth in revenue is mainly on account of higher
Plant Load Factor (PLF) in Nabha Power Ltd. (NPL) with pickup
in power demand in the state of Punjab. Further, the gradual
increase in ridership of metro services in Hyderabad, aided
the growth in revenue of the segment.
100
EBIDTA
Revenue
2020-21
0+
2021-22
1000
* crore
500
6000
5000
4000
Overview
3621
3000-
194
2000-
Statements
LARSEN & TOUBRO
Financial
Statutory
Reports
Integrated
Report
• API Spec Q1 & API 600, API 594, API 6D, API 609,
Management
Triple-offset Butterfly Valves for Refineries and
Process Applications
Corporate
Overview
API 603 Monogram Certification for Coimbatore &
Kancheepuram facility
104
Safety Integrity level (SIL) Certification - Gate, Ball, TMBV,
TOBFV & Globe by TUV Nord & Exida
•
Discussion and Analysis
• Customer Audits by Air Products, Man Energy Solutions,
Kuwait National Petroleum, Saudi Aramco, GE power,
SASO, NTPC, Black & Veatch, Vogt Power, Thermax,
Chiyoda Corporation & NAMC, etc.
The market remains highly fragmented with intensified
competition rising from the changing market dynamics. Raw
material and logistics costs remain as major challenges for
the Company in the FY 2022-23. But with improved on time
delivery and quality products supported by a good mix of
direct and distribution customers, the Company is confident
of improving its Order Book.
Large-size high pressure valve for Hydrogen project Applications
• Robust internal quality standards enabled the Company
to become the first Indian manufacturer to comply to the
stringent specifications of The International Association of
Oil & Gas Producers (IOGP)
•
Efforts towards foundry vendor base rationalisation (from
57 foundries to 29 foundries) leading to better buying
costs and terms, better supply quality and reliability
• Initiative to vertically integrate machine shop to foundry (six
suppliers) improved supply chain visibility and performance
as well as reduced the lead time for execution significantly
• The Company prioritised the spending on improving the
infrastructure by constructing a central kitting store and
continuing to do shopfloor layout modifications to improve
the lean flow of material
• The Company secured the Authorised Economic Operator
(Tier 2) certification from the Government of India, Ministry
of Finance, Central Board of Indirect Taxes and Customs,
which is a key step to enhancing the logistics speed and
customer satisfaction
• Focus on automation of repetitive business processes by
adapting RPA&AI / ML technologies has enabled substantial
improvement in productivity and reducing overheads
Crude oil prices, capacity additions, geopolitical scenarios,
liquidity, project capex spending and GDP trends in the
relevant geographies continue to be the key demand drivers
impacting order prospects.
The business has also taken stock of advancements in
renewables and energy sector in general. The Company
is actively engaged in challenging assignments to create
new products for the arising needs in clean energy and
other associated sectors. The diverse portfolio in terms
of geography and industries, continuous new product
development, range extension is expected to be an
advantage for the business in the years to come.
With streamlined product basket building, initiatives
on geographical expansion, resilient supply chain,
digitalisation and a strengthened aftermarket team would
help the business gain market share and build a strong
Order Book in the coming year and deliver highest level of
customer satisfaction.
The business with major linkages to the fortunes of the oil
& gas segment plans to increase their focus on growing
segments such as Water, LNG, Hydrogen and in other
cryogenic application segments which are expected to grow
in the coming year as it has suitable products available for
the mentioned segments. Cryogenics and Water sector is
expected to witness considerable growth in the coming years
enabling positive outlook for valves business.
KOMATSU
105
Integrated Annual Report 2021-22
Significant Initiatives
The business made significant efforts to improve its approvals
and certifications and gained fresh approvals in the following
areas to enhance its market area and customer base.
The major orders include supplies to:
Large-size butterfly valves for refineries
103
The recovery of oil consumption across the globe and pent-up
demand revived the pace of capital expenditure and opened
up the market for industrial valves. Planned maintenance
by customers deferred from previous period offered
opportunities to the business. The valves market remains
EN
Integrated Annual Report 2021-22
Nickel Aluminium Bronze Valves for applications
Cryogenic Ball Valves for Liquefied Natural Gas
highly fragmented with the presence of large players as well
as SMEs. These local players are very price competitive, in
turn affecting the price margins of the entire industry.
The industry is seeing a shift towards sustainable
products leading to the creation of a strong demand for
Industrial Valves.
Major Achievements
Orders received:
• Aramco Marjan Project Order from Cunado Spain
• Berri Project Order from Saipem
• 48" Rich and Lean Gas Project from Gulfar
• Aramco Marjan Package I Order from Mcdermott
Major Product achievements:
During the year, the business through its technical expertise
customised the products and met customers' requirements:
• Metal seated trunnion mounted ball valves for high
temperature service
• Soft-seated gate and check valves
Bellow seals gate valves for nuclear power and
sodium service
. Globe control valves in F92 material for start-up vent
services in power plants
• Hull ventilation flap valves for submarine service
In line with changing market requirements in areas of safety,
emission standards in energy, the business made following
product developments:
Major Product developments:
Approval/Certifications:
• Welded body buried service ball valves for city gas projects
High pressure flex wedge and parallel slide gate valves in
.
• Triple offset butterfly valves for cryogenic service
• Gate and check valves with Inconel 625 overlay for
sour service
Large size triple offset butterfly valves
•
F92 material for power industry
PC
Successfully engineered and executed Truck Bus Radial
(TBR) Presses - Side Frame type - 3rd Generation Press
with about 7.5% weight reduction in structures. The press
offers unique features of energy efficiency with savings of
30% in steam consumption over earlier type of presses
Komatsu PC300-8 Hydraulic Excavator with Breaker attachment
B
HD-465
Komatsu HD785-7 Dump Trucks
Major Achievements
Construction & Mining Machinery Business (CMM)
• Won the largest single order ever in this year for supply
of mining equipment with a maintenance contract for a
period of 10 years
•
.
• Supplied 7000th PC71 and 2000th PC210-10M0 hydraulic
excavators from KIPL and 1500th L&T vibratory compactor
from LTCEL
Highest ever dump truck sales of 135+ machines in a year
• Commissioned L&T's largest skid plant (3 x 1500 TPH) in
Ambey Mine, Rajmahal Coal Mines
Rubber Processing Machinery Business (RPM)
• Received a breakthrough order for the supply of first ever
passenger car hydraulic tyre curing presses to USA
• Received the largest order from a Japanese tyre
manufacturer for their green field project in India
• LTRPM received the US patent for the design of
Mould-height adjustment for its new generation
hydraulic curing press
.
• Reduced floor time for Truck Bus Radial (TBR) & Passenger
Car Radial (PCR) presses by 40% thereby increasing
assembly throughput
Product Development Centre (PDC)
Introduction of KGO (Komatsu Genuine Oil) lube dedicated
van for promotion of genuine oils from Komatsu to expand
sales and market share
The business landscape of FY 2021-22 started with the
COVID-19 impact in the first quarter and resumed normalcy
by the second quarter. Raw material price increases, supply
chain hurdles and high logistics cost dominated the global
macro-economic scenario.
.
• Launched L&T Genuine Lubricants along with Gulf Oil for
LTCEL equipment
• Both KIPL and L&T extended the warranty period by 2
months on the equipment supplied in view of the low
utilisation of machines during the COVID-19 period
Inauguration of KOWA (Komatsu Oil Wear Analysis)
lab in Nagpur for oil analysis to help in ascertaining the
machine condition
HD785
•
Construction & Mining Machinery Business (CMM)
Significant Initiatives
• PDC along with RPM worked on several new development
and improvement projects related to Tyre Curing Presses
and Tyre Building Machine (TBM) for supply to some of the
marquee customers of RPM. It is noteworthy to mention
that PDC was also awarded 2 patents related to the RPM
business in this year
• PDC along with LTCEL developed various attachments
during the year such as Rock Splitter, Bottom Dump
Attachment for L&T 300i, Clam Shell, Mass Excavation
Bucket and Super Long Front for the 100T Class excavators
migrate them to a new engine platform conforming to CEV
IV emission norms and meet the new safety regulations
• PDC along with LTCEL worked on certain construction
equipment and road machinery of LTCEL to successfully
• Suraksha 10000 plus programme launched to cover
PC210-10M0 excavator by extending the warranty service
coverage to 5 years / 12,500 hours
300
LC
Integrated Annual Report 2021-22
FY 2021-22 witnessed significant investments from the
tyre majors both in domestic segment and international
segment, especially in the Americas. The tyre manufacturers
are mostly operating at their peak capacity and looking at
expansion opportunities. The Truck & Bus, Agri and Off-the-
Road segment continue to remain profitable and a focus
area for the tyre makers due to increased agricultural, mining
and construction activity. The investments in 2-wheeler and
passenger car segments were only incremental.
With COVID-19 behind, revival of the oil prices, stable
customer enquiries, buoyancy in the non-oil sectors like
water, pharma, power, and focussed actions taken by LTVL,
the outlook of the business remains positive.
CONSTRUCTION
EQUIPMENT & OTHERS
Overview
The Construction Equipment & Others (CE&O) business
includes the manufacture and marketing of construction
equipment, mining equipment and equipment for tyre
manufacturing industry, broadly segregated into Construction
& Mining Machinery (CMM) and Rubber Processing
Machinery (RPM).
The CMM division is engaged in the business of distribution
and after-sales service for hydraulic excavators and dump
trucks manufactured by Komatsu India Private Limited (KIPL)
and other mining and construction equipment manufactured
by Komatsu worldwide. It also handles the distribution and
after-sales support for a range of construction equipment
including wheel loaders, compactors and hydraulic excavators
manufactured by L&T Construction Equipment Limited
(LTCEL) and Mining Tipper Trucks manufactured by Scania
India. In addition, the division handles distribution and
after-sales support for the mining equipment manufactured
by L&T's Minerals & Metals SBG viz. surface miners, sand
plants, crushing solutions and apron feeders. The CMM
division completed 75 years of business during FY 2021-22
and celebrated the same through the release of a corporate
stamp, among other initiatives.
LTCEL, located in Doddaballapura, near Bengaluru,
manufactures vibratory compactors, wheel loaders, hydraulic
excavators, asphalt paver finishers, pneumatic tyred rollers,
skid steer loaders, hydraulic power packs, cylinders, pumps
and other components. During the year, LTCEL played
a significant role in the process of development and
manufacture of the girder transporter and straddle carrier for
the Mumbai-Ahmedabad High-Speed Rail project.
The RPM division, located in Kancheepuram near Chennai,
is engaged in building machines and tyre automation
systems for the global tyre industry. RPM established as
a JV in 1972 for manufacturing tyre curing presses and
became a fully-owned business unit of L&T in 1995. The
manufacturing facility located in Kancheepuram, India
caters to the machinery requirements of the tyre industry
and has supplied equipment to tyre majors in over 46
countries across the globe. The division also supports certain
customers in the tyre industry with 'build to print' products
and customised machinery development as well. RPM
business is also celebrating a significant milestone in
FY 2022-23 with its 50th anniversary.
The Product Development Centre (PDC), based at
Coimbatore, with its highly-skilled design team, renders
engineering and product development support for CMM and
RPM businesses.
106
Corporate
Overview
Management
Integrated
Statutory
Financial
LARSEN & TOUBRO
Discussion and Analysis
The Indian tyre industry reached a turnover of about
USD 7.8 Bn in 2021. The tyre demand has witnessed an
overall healthy recovery of 19% -20% in the last 9 months.
The recovery has been supported by a robust growth in the
after-market replacement segment as well as the OEM tyre
segment that has grown in the backdrop of higher vehicle
sales. Also, the recovery in the domestic demand and growth
in exports has resulted in overall better capacity utilisation
for the overall industry. Nevertheless, the Indian tyre industry
is facing significant headwinds in the form of a sharp rise in
raw material prices, particularly for natural rubber and crude-
linked imports such as synthetic rubber, carbon black, and
other inputs.
The first half of the year witnessed good recovery for the
tyre industry with pick-up in economic activity and demand
for vehicles. However, due to the effect of the Omicron-led
3rd wave, passenger car tyre demand remained muted for
the second half of the year. Marginal growth was seen in
the truck and bus market in Europe and North America.
The growing infrastructure activities in both developed and
developing countries, combined with increased agricultural
and mining activities, has been providing a boost to the tyre
sales in select segments.
Rubber Processing Machinery Business (RPM)
The demand for the rubber processing machinery
manufactured by this division depends on the capital
investments by the tyre majors, which is in turn linked to
the growth forecast for the Automobile, Agricultural and
Mining sectors.
However, the demand opportunities for construction and
mining equipment to some extent, got constrained due to
stiff competition from domestic and Chinese equipment
manufacturers.
The market size for premium excavators grew by 9% in FY
2021-22 with L&T / KIPL's market share increasing to 31%
from 30% in the previous year. The market demand for
wheel loaders and vibratory compactors remained stable at
about 6,000 with L&T/LTCEL maintaining its market share at
12% in FY 2021-22.
The demand for mining / material handling equipment also
improved on the basis of higher production of coal, iron-ore
and other non-ferrous metals.
107
During the year, highway construction activity increased
as compared to the previous year as the overall contract
awarding activity improved in this period. However, elections
in five states resulted in subdued growth in Q4.
Business Environment
L&T 1190 Soil Compactor
1190
Statements
Reports
Report
Construction & Mining Machinery Business (CMM)
Investment in the construction and mining sectors is one of
the key demand drivers of the CMM business.
Business Environment
Integrated Annual Report 2021-22
L&T Valves are designed by specialists with deep
understanding of various industry requirements, standards
and practices, using state-of-the-art design and analysis
software. The Company has a series of successful innovations
to its credit, including mission-critical solutions for defence
and aerospace industries.
b) Industrial Machinery, Products & Others comprising of
Construction & Mining Equipment, Rubber Processing
Machinery and Industrial Valves
c) Smart World & Communication
d) Digital Business
Financial Performance of the Segment
Revenue for the segment registered a growth of 3.1% from
Gross Revenue and OPM%
3.1%
6282
1441
* crore
8000
6093
6000
1785
4000
3522
21.0%
100
L&T Realty is positioned amongst the top real estate
developers in India, with development potential of
~60 Mn. sq. ft. across residential, commercial, and retail
segments in Mumbai, Bengaluru, NCR and Chennai. The
business model includes development in partnership with
land/development rights owners, and sale/leasing of
commercial spaces.
REALTY BUSINESS
The funds employed by the segment as at March 31, 2022
at 8,074 crore increased by 5.5% compared to
March 31, 2021 largely attributed to inventory build-up of
under construction property in the Realty business.
The operating margin declined over the previous year since
FY 2020-21 included a non-recurring gain on sale of a
commercial property in the Realty business.
*6,093 crore to ₹6,282 crore in FY 2021-22. The growth
was in the Realty business on higher handover of flats and
improved demand in Construction Equipment and Rubber
Processing Machinery business. Supply chain disruptions and
extended conversion cycles impacted the Valves business
whereas completion of projects and lower execution
momentum in the new jobs impacted revenues of Smart
World & Communication business.
a) Realty Business
Realty Industrial Machinery & Others
SWC & Digital
OPM%
1319
2020-21
1174
2000
3134
17.4%
2021-22
Corporate
Overview
'Others' business comprises:
Crescent Bay, Mumbai
Introduction of new variant of PC205 20T hydraulic excavator
to cater to general construction and hiring segment
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory
Financial
LARSEN & TOUBRO
Reports
Statements
2x700 MW Supercritical Technology based Thermal Power Plant at Rajpura
Business Environment
India's average electricity demand has gone up by 7.85% in
FY 2021-22 (y-o-y) as the economy rebounded post easing of
COVID-19 restrictions. The electricity demand in Punjab picked
up during the year and the average demand has been higher
by 7.5% (7,205 MW) compared to last year (6,705 MW).
Punjab witnessed a net capacity addition of 113 MW during FY
2021-22, all of which was contributed by renewable sources.
The annual Plant Load Factor (PLF) of NPL stood at 79%, the
highest in the operational history of NPL and also achieved 20%
higher PLF than the national average for FY 2021-22. Out of
the total power demand of Punjab state, 15% was met by NPL.
A drop in coal production due to the extended monsoons and
an increase in imported coal prices, led to severe shortage in
coal supplies. NPL made every possible effort to secure coal
from various CIL subsidiaries and signed FSA with Northern
Coalfields Limited (NCL) for transfer of coal linkage from SECL.
Major Achievements
• Zero Lost Time Injury (12.08 million cumulative safe
working man-hours)
Highest continuous operating station days achieved: 126
days (Previous best 119 days)
99
Major focus areas for NPL during FY 2022-23 would be HSE
compliance, maximising plant availability, commissioning
of FGD, resolution of long pending litigations, improving
operational efficiency, securing adequate coal quality and
quantity, cost management and digitalisation initiatives.
NPL expects to commission a Flue Gas De-sulphurisation (FGD)
system in FY 2022-23, which is a mandatory requirement
under the environmental norms notified by Gol.
The Company continuously faces operation and fuel related
risks such as fuel quality, fuel availability, supply chain logistics
and regulatory risks such as environmental compliances,
clearances, and Government policies. The Company has
implemented multiple measures in each of the risk areas to
ensure a proactive approach and timely mitigation.
The Gol appointed Commission for Air Quality Management
(CAQM) has directed power plants within 300 kms of Delhi-
NCR region to co-fire up to 5 -10% biomass, to address the
concern of stubble burning.
The increase in per capita energy consumption continues
to promise robust long-term demand. However, domestic
fuel supply and transportation challenges continue to linger
and coal prices are likely to remain elevated due to various
geopolitical issues.
| OTHERS
In FY 2022-23, the demand in Punjab is expected to remain
around ~8,000 MW (Peak 15,000 MW) and as a result, NPL is
expected to schedule a high PLF of ~82% and remain at the
top of the merit order among the thermal power producer
within the state.
• Significant collection of receivables from PSPCL in a
disputed matter pursuant to favourable order from Hon'ble
Supreme Court
Capital Overhaul (COH) of Unit 2 completed successfully
•
•
• Ensured domestic coal adequacy for FY 2021-22
• Sustained Operational Performance - Annual PLF: 79% v/s
all India thermal average: 59%
Outlook
The business has a global manufacturing presence with
two manufacturing facilities in Tamil Nadu, India which are
equipped with state-of-the-art 5-axis machining centres, CNC
machines and facilities for critical testing and two facilities in
USA and Saudi Arabia. LTVL products deliver safety, reliability,
and quality for industries across the world.
Management
Integrated
Report
The continuously rising input cost of basic raw materials
like cement, steel and other construction raw materials are
current challenges facing the sector.
The regulatory changes / reforms over past few years in the
realty sector have created an environment of transparency
and reinforced customer confidence, leading to improved
housing ownership.
In the backdrop of improved mobility and rapid vaccination
drives, employment generation picked up pace in the
organised sector, led largely by hiring in the IT/ITES and BFSI
sectors. As a result, office leasing activities in India picked up
pace in last quarter, registering a healthy growth.
Revival in the real estate space has attracted foreign investors
leading to a sizeable inflow of foreign funds into commercial
spaces in recent months.
This change, coupled with customers preference for
corporate brands offers a unique opportunity for L&T's
realty business. The complete recovery of the commercial
segment
is however, expected to take a longer time due to
multiple factors.
Major Achievements
• Launched a premium project 'Elixir Reserve' in Powai
• Successful launch of 'Veridian', a new phase in the flagship
Powai development
Launched a new phase 'Olivia' as part of a large maiden
township in Bengaluru. The project commands a premium
in the micro market
• As the workplace merges with the home, sale of large size
units gained momentum. Traction was seen in large format
premium units in Crescent Bay, Parel, placing the business
amongst the most sold projects in the premium South
Mumbai market
102
Corporate
Overview
Management
Discussion and Analysis
Integrated Statutory
Report
Financial
to serve key sectors such as oil and gas, defence, nuclear
& aerospace, power, petrochemicals, chemicals, water, and
pharmaceuticals across the globe. LTVL manufactures a wide
range of products such as Gate, Globe, Check, Ball, Butterfly,
Plug valves and automation solutions. L&T Valves also runs a
global after-market business to support its installed base with
service and spares needs.
L&T Valves (LTVL) is a leader in flow-control solutions. The
business leverages sixty years of manufacturing excellence
Overview
L&T VALVES LIMITED
Environment, sustainability, and governance are expected
to be a path to progress in the Indian real estate industry.
Transparency and stakeholder interaction are now becoming
increasingly important. Such growing awareness places
developers like L&T Realty in a favourable position.
Retail inflation has an adverse effect on the disposable
income of consumers, possibly posing a concern over
consumer sentiments for the near future. However,
supportive measures from the Government, RBI and
the resultant pick-up in end-user demand will keep the
momentum going.
Select initiatives by the Maharashtra State Government,
particularly lower stamp duty on residential property
registrations and 50% concession on development premiums
were of great support to the real estate sector.
Homebuyers' preferences for bigger homes, large, gated
communities, better amenities, and attractive pricing will
sustain the demand for premium housing.
The real estate sector in India is expected to reach USD 1 trillion
in market size by 2030 and contribute 13% to the country's
GDP by 2025.
Outlook
24" Class 600 Butterfly Valves. Large quantities supplied ahead of time for refinery expansion project
Statements
Reports
LARSEN & TOUBRO
The demand for residential properties will continue to surge
due to increased urbanisation and rising household incomes.
India is among the top 10 price-appreciating housing markets
internationally.
Discussion and Analysis
Post pandemic, the residential sector has shown significant
uptake across all top cities, supported by multiple factors
such as lower interest rates, better affordability and positive
outlook of the economy, resulting in liquidation of existing
inventory levels.
Coming up on a 40-acre plot in the IT hub of Chennai,
the 6.5 Mn sq. ft. L&T Innovation Campus project will be
developed in phases. It will bring together world-class
innovation business / IT hub, and an eclectic mix of leisure
and lifestyle amenities, with a lush central parkland at its
core. The development offers the convenience of Walk-
To-Work.
Statutory Financial
LARSEN & TOUBRO
Reports
Statements
Seawoods Grand Central, Navi Mumbai
Residential Segment
1. Emerald Isle, Mumbai
This flagship residential project in Powai spread over 90
acres and developed in phases. A new phase named
Veridian was launched during the year. Regarded as the
finest gated community, the project today has a lively
community of over 1,000+ resident families.
2. Elixir Reserve, Mumbai
Elixir Reserve is a premium residential project in Powai that
is enveloped in a picturesque setting. This project is replete
with state-of-the-art amenities, including an ICSE school,
office towers and retail spaces within walking distance.
3. Crescent Bay, Mumbai
With the Arabian Sea as the backdrop - Crescent Bay is a
residential complex at Parel with the perfect setting for an
exclusive lifestyle. The highlight of the development is a sky
deck and other lifestyle amenities on level 21. The project is
complete and occupied by 1,100+ families.
4. Seawoods Residences, Navi Mumbai
Part of India's first Transit-Oriented Mixed-Use
Development, Seawoods Development is spread across
over 40 acres. Seawoods Residences offers unmatched
connectivity and is surrounded by breath-taking views. It's
a successful project, sold out on launch. More phases are
expected to be launched soon.
5. Rejuve 360, Mumbai
Designed on the wellness thought, this residential complex
is focused on the rejuvenation of mind, body, and soul.
Conveniently located in Mulund west, Mumbai Rejuve 360
has sustained its position among premium developments in
the micro-market.
6. Centrona, Mumbai
4. L&T Innovation Campus, Chennai
Located in the rapidly growing micro market of Hebbal, the
project has the potential for development of commercial
office spaces of 3.1 Mn. sq. ft., which is being taken up in
phases. With unmatched connectivity and well-designed
spaces, it is set to become the most favoured address for
many technology companies.
3. Technology Park, Bengaluru
Elixir Reserve, Mumbai
Artist's Impression
Integrated Annual Report 2021-22
Business Environment
101
2. Technology Centres, Mumbai
1. Seawoods Grand Central, Navi Mumbai
India's first Transit-Oriented Development (TOD),
Seawoods Grand Central offers 2.6 Mn. sq. ft. of
Grade A development with a unique combination of
commercial and retail business spaces.
Commercial Segment
Conceptualised on the live-work-play theme, Raintree
Boulevard is a 65-acre mixed-use project located in the
high-growth micro-market of Hebbal. Situated just 20 mins
away from the airport, the project offers fine-living and
best-in-class amenities. L&T Tech park and a large format
mall are within walking distance from the project. 1,000+
happy families are already residing at the project. Launched
in phases, Olivia at Raintree Boulevard is a luxury offering
launched during the year.
7. Raintree Boulevard, Bengaluru
Centrona is a gated community situated in Ghatkopar and
has functional residences with unmatched comforts and
conveniences. The location boasts of being within easy
reach of the city's most iconic locales, providing easy access
to every corner of the city. With world-class amenities, it is
perfect for people who want to spend more time with their
loved ones.
Designed to provide superior workspaces, it is a part of
a larger integrated development promoting the 'walk
to work' concept. It is one of the coveted corporate
addresses in Powai, Mumbai with proximity to excellent
social infrastructure. Much of this development is already
completed and some has been effectively divested.
108
Outlook
• Additionally, the business also carried out the proof of
concept for private Long Term Evolution at L&T's A M Naik
Heavy Engineering Complex Hazira in Surat
Overview
SMART WORLD &
COMMUNICATION
The business has an added advantage as compared to the
European competitors, due to its wide product range across all
segments and being a market leader in machinery for Off-the-
Road in Agri and Mining sectors which will aid the growth in
coming years.
Electric car sales will be a growth pole for the industry, with
new electric products coming to market. Also, electric vehicles
are expected to see strong adoption in the coming years, with
2-wheelers and 3-wheelers leading the way.
The global tyre demand is likely to be robust and tyre companies
are poised for investments in select segments. The global tyre
market size is estimated to be worth USD 146 Bn in 2022 and
is forecast to a readjusted size of USD 192 Bn by 2028 with a
CAGR of 4.7% during this period. The domestic tyre market
is expected to be very buoyant especially in sectors like Agri,
Mining and Truck & Bus. As per ICRA, the Indian automobile
sales volume is expected to grow by 5-9% y-o-y in FY 2022-23.
Rubber Processing Machinery Business (RPM)
large irrigation projects and coal OB (Overburden
removal) contractors.
Government initiatives in infrastructure development in roads,
railways, irrigation, ports, urban and rural infrastructure,
affordable housing, etc., are expected to drive demand
in the cement and metal sectors, which in turn will boost
demand for excavators, dump trucks, dozers and other road
construction and mining equipment. With ~65% of demand
for mining equipment coming from coal PSUs, business is
planning to target selective tenders along with Komatsu.
Business plans to strengthen its position in the premium
segment by increasing its focus on large contractors,
Construction & Mining Machinery Business (CMM)
With the Government's thrust on investment in infrastructure
construction activity expected to pick up pace during the
coming year, the construction equipment market is expected
to grow by 17%.
Successfully developed supplier base for machining of heavy
structures like top/bottom structures, side frames, guide
columns, lock ring etc. to meet the increased business
requirements in Hydraulic Tyre Curing Press (HTCP) segment
Outlook
• Successfully implemented modular assembly and testing
methodology for TBR presses
•
The global adoption of technology for smarter, secure,
intelligent solutions, efficiency improvement and
optimisation are not only having a profound impact on
how technology is being used in our daily lives but also has
opened a multitude of business opportunities.
•
Rubber Processing Machinery Business (RPM)
• Evolved 19 design projects through 'Technology
Centre Initiatives' and implemented 9 initiatives for
design improvements
• Introduction of PC500 50T hydraulic excavator for use by
private coal OB (Overburden removal) contractors
Passenger Car Floor Mounted Hydraulic Tyre Curing Press Smart Kiosk installed at Pimpri-Chinchwad
D.
Smart Klos
PCMC SMART CITY (PCOCu
LARSEN & TOUBRO
Financial
Statements
Reports
Statutory
Integrated
Report
Discussion and Analysis
• Created vendor fabrication facility adjacent to the plant, to
cater to 150 MT / Month of fabrication load to address the
shortfall of in-house capacity
Management
109
Integrated Command Control Centre, Jhansi
LARSEN & TOUBRO
Financial
Statutory
Reports
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
110
The business is moving up the technology value chain
with a focus on solution / services-based domain centric
The BharatNet and Smart Meter programmes saw various
deliberations in the operational modality and policies rollout
leading to delay in implementation.
Defence and Space technology got higher budgetary
allocations, paving the way for opportunities for Military
Communications but faced with slow roll outs.
Integrated Annual Report 2021-22
Citizen's safety continued to be a Government priority and
City Surveillance and Intelligent Transit Management System
(ITMS) projects saw movement in few cities like Bengaluru,
Chennai, Delhi, etc.
The opportunity landscape was affected by the 2nd and 3rd
wave of the COVID-19 pandemic. Diversion of Government
spends resulted in the decline of the addressable market. The
progress of certain projects was also impacted as the work-
front clearances were delayed due to the restrictions imposed
on account of COVID-19.
Business Environment
Military Communication – Systems and solutions for
Satcom and Ground stations, Radio communication System
(HF VHF & UHF), Tactical Communication Systems, Software
Defined Radios, Electronic Warfare Systems, Vessel Traffic and
Coastal Surveillance System.
-
Cloud Security, LTE, Virtualised Network Technologies, 4G/
5G, TETRA.
Communication & Telecom Infrastructure - Systems
and solutions for Network Design, Engineering & Rollouts,
Network Migration & Upgradation, NextGen Data Centers,
Private Cloud, Cyber Security with focus on IT / OT Security,
Safe & Smart Infrastructure – Systems and solutions for
Safe Cities, Smart Cities, Public Safety, Critical Infra Security,
Traffic Management Solutions, Integrated Command Control
Centres, Advanced Metering Solutions and Smart Utilities.
-
L&T's Smart World & Communication business has always
endeavoured to keep pace with the ongoing advancements
in the technology landscape with a diversified team of 700+
skilled professionals, the business is continuously keeping
abreast with technology trends like Cloud Computing, IoT
(Internet of Things), Al, Mobility, Drone Technology, LEO
Satellites, 5G, Cyber security etc. The business operates in 3
major segments:
Leveraging the experience garnered across years, the business
has embarked on a transformational journey of establishing
itself as a Global Smart Solutions & Services Leader for Smart
Cities and in NextGen Communication technologies.
The business over the years has gathered prolific experience
as a leading systems integrator (MSI) through roll out of
domain centric projects, developing 25+ Safe & Smart Cities,
providing digital connectivity to 13 states, integrating more
than 1.25 lakh loT Devices, 30+ Data Centers and various
defence communication projects.
The Smart World & Communication business unit has been
leveraging the latest technological innovations in Utilities,
Communication, Cybersecurity and loT areas to benefit
society at large. The business provides end-to-end solutions /
services in the system development of Smart Cities, NextGen
Communication & Military Communication.
Overall, the progress under the Smart City Mission has been
uneven due to administrative delays and financial constraints
with many city corporations / agencies.
Corporate
Overview
•
Recognised as a Great Place to Work-Certified TM Company
in the USA and as Top Employer in the UK for a second
consecutive year
• Raintree Boulevard, Bengaluru recognised as the Residential
Project of the Year at the Realty Plus - South India Awards
Valves
•
Silver Medal in the National awards for Manufacturing
competitiveness 2021 organised by International Research
Institute for Manufacturing
Construction Equipment Business
• CMM business received best excavator brand 2021
award for PC 210-10M0 excavator and Innovative New
Equipment award for L&T 990HFi vibratory compactor
from Construction week equipment and infra conference &
awards 2021
Smart World & Communication
-
• India Digital Awards – 2021 for Best Supply Chain Solution
for the inhouse end to end Supply chain solution (SWIFT,
Smart Sign off & i-smart Inventory)
.
India Digital Awards - 2021 for Best Mobile Application
was awarded to Jhansi Smart City for the application
developed for Government bodies
117
• A. M. Naik Tower awarded the Luxury Project of the Year –
Commercial and Most Environmentally Friendly Commercial
Office Space at the Asian Leadership Awards 2021
Integrated Annual Report 2021-22
REPORT
SUSTAINABILITY
VISION
For a better world!
L&T shall pursue eco-friendly
growth, promoting a culture of
sustainability and innovation,
and thereby contribute
towards a better world.
FINANCIAL
CAPITAL
Page no. 196 →
118
NATURAL
CAPITAL
Page no. 136-
SOCIAL AND
RELATIONSHIP
CAPITAL
INTEGRATED
Realty
• 'Best Thermal Power Generator - Commissioned after
2010' by IPPAI
Nabha Power
• Received Gold recognition from EcoVadis for ESG practices
including environment, labor and human rights, ethics and
sustainable procurement
• LTI in ITS Top 10 list in Everest Group's PEAK MatrixⓇ IT
Service Provider of the Year 2022 and Ranked 1 in Top ITS
Challengers list in Everest Group's PEAK Matrix® IT Service
Provider of the Year 2022
• LTI Syncordis has been recognised as Temenos Service
Partner of the Year
Mindtree
• Ranked second for client satisfaction in the 2021 UK
IT Sourcing Study, conducted by Whitelane Research
in collaboration with PA Consulting, with an overall
satisfaction score of 80%, well above the industry
average of 72%
• Awarded Silver rating by EcoVadis in this year's
sustainability assessment, placing Mindtree among the
top 25% of the more than 75,000 companies it assessed
• Won three Brandon Hall Group Human Capital
Management Excellence Awards for 2021 for innovative
leadership development, HR data analytics, and
employee benefits, wellness and well-being programs
• Certified by Great Place to Work® Institute as a Great
Place to Work® in India and recognised as one among
India's Best Workplaces TM for Women for 2021 (Top 50 -
Large Companies)
• Won the Silver award in the Most Innovative Company
of the Year category at the Best in Biz Awards 2021 in
North America
L&T Technology Services
• NASSCOM honoured L&T Technology Services with the
Engineering and Innovation Excellence Awards 2021 in the
'Engineered-In-India Product of the Year' category for its
Robotic Endo-Trainer Kit
116
Corporate
Overview
Management
Integrated
Discussion and Analysis
Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
• Confederation of Indian Industry (CII) awarded LTTS with
the prestigious Top 25 Innovative Company Award at the
2021 Industrial Innovation Award
• LTTS' Chest-rAITM solution recognised in the Innovation in
Overall Customer Experience category by ASSOCHAM 2nd
Innovators' Excellence Awards 2021
• Zinnov rated LTTS as a global ER&D Leader and leader
across its core verticals such as Automotive, Aerospace,
Medical Devices, Industrial, Semicon & Telecom
• LTTS has been recognised as a Leader in Digital Engineering
in ISG's Manufacturing Industry Services 2021 Study in
the Transportation, Hi-Tech and Industrial segments, along
with its Life Science Digital Services Study recognising LTTS
as a Leader in Europe & USA in the MedTech and Digital
Transformation Services areas
Hyderabad Metro
.
Telangana State Global Linker - 4th Edition of the Telangana
State Industry Award 2021 for best Sustainability Practices
Statements
Smart Signalling System at Raipur
Smart Pole at Vishakapatnam
opportunities for more profitable and sustainable pipeline
in the focus domains.
L&T's Performance Management System, aptly named
FAIR (Framework for Linking Appraisals with Incentives
and Rewards), ensures that top-class talent gets visibility
and furthering meritocracy. The Leadership Development
Centres, pivotal to the Company's core philosophy of
grooming internal talent, ensures that the right leadership
talent is identified through an intense and objective
selection process. Talent Assessment is being successfully
done through the Development Centres which encompass
a structured and objective 2-3-day process to identify the
strengths and developmental needs of employees in terms
of the required competencies.
differentiator for the success of an organisation. Major
emphasis was given on campus branding which included
initiatives like the 'L&T Campus Engage' programme,
that facilitates the connection with the engineering and
management students across various colleges by offering
industrial visits, sponsoring fests, organising national events,
tech talks. GRACE (Get Ready for an Awesome Career in
Engineering) was launched as a pre-joining engagement
initiative, which included gamified content with leaderboards,
webinars, technical talks and newsletters, presentations on
marquee L&T projects, virtual industry visits and engagement
through social media platforms.
LARSEN & TOUBRO
Financial
Statements
Integrated Statutory
Report
Reports
Discussion and Analysis
Management
Corporate
Overview
114
In the post COVID-19 scenario of 'War for Talent', the
attraction and retention of talent acts as the biggest
L&T Radio has been launched to create a high-impact
employee communication and engagement environment for
all L&T-ites, through a series of podcast covering leadership
messages, employer branding, success stories, life learnings,
health and wellness, HR policies, and more.
HiFive, an online rewards and recognition platform was
integrated to promote a culture of appreciation and
recognition of employees at the workplace.
A structured succession planning approach is undertaken to
meet business objectives. An entire portfolio of critical roles
is created by aligning the impact drivers, where succession
matters the most. A Career Development and Succession
Planning Module is integrated with the Performance
Management System to facilitate the process in a more
efficient manner.
An Al-enabled BOT was integrated to facilitate quick
engagement surveys across the organisation. The platform
has been branded HEERA. This provides a methodical
approach of gathering employees' feedback/views
periodically. Basis such insights, appropriate and timely action
is expected to help further improve employees' experience
and engagement.
Regular awareness and training programmes are being
conducted around IT and Information Security to ensure
that all employees understand the criticality of IT and use it
judiciously for the betterment of the organisation.
IT at L&T is in a sweet spot as IT and digital transformation
permeates across L&T using various tools and technologies.
As this happens, IT is working very closely with the businesses
and stands ready to deliver to business relevant and state-of-
the-art solutions that will enable L&T to stay competitive and
secure in the future.
At L&T we are constantly enabling businesses with new,
innovative platforms for ERP, Vendor Invoice Management,
Data Analytics, etc., that enable the evolution of a real time
enterprise. L&T also continues to work with public cloud
vendors selectively to move workloads wherever found
economically viable.
Multiple generational changes in IT Infrastructure in strategic
areas have been done to ensure that IT is able to respond
to the new needs of the business for the next several years.
All these investments are done with an eye to reduce
information security risk at all times.
The digitalisation journey that started with an advanced ERP
solution and online Performance Management System was
further integrated with a Career Development & Succession
planning module, which helped in identifying emerging
leaders and build a strong talent pipeline. It helped to identify
The pandemic did not deter the Company from continuing
with industry leading HR initiatives and some of them are
summarised below.
With a people-centric philosophy and practice, combined
with dynamic top management, the Company was able
to ensure business continuity, keep the workforce safe,
healthy, motivated and engaged and contribute to the
society during the unprecedented times brought about by
the COVID-19 pandemic. Continuous communication from
the top management and the HR team helped the employees
deliver their best amidst the pandemic. Financial assistance
and additional insurance was provided to employees and
their family members affected by COVID-19 along with
educational, financial and career support to families of
deceased employees. The Company also went out on a war
footing to build medical grade Oxygen Generation Units and
donated 40 of such large-scale Oxygen Generating units to
various hospitals across the country.
| HUMAN RESOURCES
Over the past year, significant, yet strategic investments
have been done in the areas of cyber security to ensure
that uniform sets of policies, processes and technologies
are implemented across the organisation to tackle the ever
evolving threat landscape. 'Security by design' principles are
applied in all areas of IT to ensure that all applications are
secure right from the development stage.
While the investments continue in strategic areas of IT, there
is a fundamental shift in the way business is done post the
COVID-19 pandemic. Remote working and online collaboration
are the new normal of doing business. As the new normal
settles in, it is even more imperative that one secures these
new modes of communication and collaboration.
While the IT and digital landscapes continue to expand within
L&T, more and more business stakeholders are becoming
cognizant of the value that IT delivers to the business vis-à-vis
the investments being put in. Continual measurement of IT
value delivery is the new order in the business.
IT at L&T operates on a federated structure with Corporate IT
as the apex IT organisation and CIO council that is represented
by all business CIOs. The IT spends at business levels are
governed by the specific needs of that particular business.
critical roles and high potential employees, define career
paths, assess role-readiness, create targeted mentoring
programmes, match mentors and mentees, and enable
mentor / mentee collaboration.
The Company's signature Seven-Step Leadership
Development Programme is an established best practice
in talent development. It prepares leaders at all levels. This
flagship programme provides young employees with high
potential access to a curated learning experience delivered
by reputed thought leaders from Indian and international
business education institutes. The emerging leaders who
move up the Seven-Step Leadership Programme are
mentored by seniors ensuring a robustness in the continuity
of the leadership thought process and value systems.
The organisation gives a lot of emphasis on learning and
development. It runs as many as 18 dedicated training
institutes/academies including Leadership Development
Academy, Lonavala, IPM - Institute of Project Management,
Chennai & Vadodara, CTEA - Corporate Technology &
Engineering Academy, Mysuru & Madh, Safety Innovation
School, Hazira, Surat and 8 CSTIS - Construction Skills
Training Institute across the country. IPM has now established
the Knowledge@Work platform tailored to provide project
execution related knowledge assets in a digital form. It has
also initiated Pragati - the Project Leadership Development
Program (PLDP) of Larsen & Toubro, which is aimed at
enabling the comprehensive development of project leaders
who can handle mega projects and mega portfolios through
a structured competency-based development.
The Company has a matured Safety Education Programme
that is designed to build and strengthen a culture of safety at
workplace. Ensuring safety for its employees and workmen,
the Company has partnered with the National Examination
Board in Occupational Safety & Health (NEBOSH) and The
Institution of Occupational Safety & Health (IOSH) to develop
internal training capabilities in EHS and is an accredited
course provider for its employees on diverse aspects of
industrial and project safety.
Defence Engineering
• The 400 MW Bibiyana South Gas-based Combined
Cycle Power Plant in Bangladesh has been conferred the
Award of Merit by the prestigious US-based publication -
Engineering News-Record (ENR)
Power
• CII EHS award 2021 under 'Construction Category' and
'EHS Workforce Engagement' special category award for
HPCL FCHCU & HPCL CDU VDU projects
• ASSP - GCC Excellence Awards 2021 for NSGEP & TL 5
Project, KOC Kuwait
• Winner Award for Best Practices in Occupational Health and
Safety 2021 from Confederation of Indian Industries (CII)
• Business adjudged as the 'Top EPC Contractor in the
Middle East' by Oil & Gas Middle East magazine
Hydrocarbon
• PT&D Oman won the Dossier Award for the Best EPC
Contractor of the Year
Power Transmission & Distribution
• Business bagged the International Green Apple
Environment Award 2021, UK in Habitat and Biodiversity
Conservation in Mumbai Coastal Road Packages 1 and 4
Heavy Civil Infrastructure
• 'Statue of Unity' Project won the 'Outstanding Structure' IA
StructE National Award
• NPCI Datacenter Chennai & Hyderabad received 'TIER - IV'
Design Certificate from 'UPTIME INSTITUTE"
• American Concrete Institute awarded Narendra Modi
Cricket Stadium Motera with Overall Excellence award
Buildings & Factories
During the year, the CSR Journal has ranked Larsen &
Toubro Limited #18 among Top-100 companies in India for
CSR and Sustainability. Multiple projects across multiple
businesses received awards from ROSPA (The Royal Society
for the Prevention of Accidents) and British Safety Council for
Environment, Health and Safety. Further, businesses have also
won many awards and accolades, some noteworthy awards
are mentioned below:
| AWARDS
Integrated Annual Report 2021-22
115
For further details on HR, refer Human Capital (page no.168)
The Company also has an institutionalised mechanism for
dealing with complaints of sexual harassment through a
formal committee constituted in line with the Company's
policy on 'The Protection of Women's Rights' at workplace
under relevant statutory guidelines. This policy has been
widely disseminated across the Company and all complaints
are addressed in a time-bound manner.
• ATD BEST 2022 for Talent Development
• ATD Excellence in Practice Award 2022 in Leadership /
Management Development
• International Gold Award in the 6th Annual Stevie Awards
for Great Employers
All the above practices have been recognised by prestigious
and premier national and international bodies through
numerous accolades and some of the awards won by the
Company are:
With the emphasis on diversity and inclusion, L&T has
embarked on a mission to make it a key business imperative.
Employees at L&T cut across the barriers of race, gender,
nationality, caste and age, reinforcing the Company's
image as an inclusive organisation. For the last couple of
years, very focused initiatives have been undertaken to
improve the gender ratio in the organisation on all the 3
aspects - attraction, development, and retention of women
employees. Also, re-entry of women into the workforce post
maternity and child-rearing is being supported. The unique
platform 'Renew' which is linked to the talent acquisition
portal is designed specifically for the same. The 'Winspire'
initiative celebrates the journey of women leaders and
provides them a platform to share their inspiring stories
of overcoming challenges, through a series of interviews
and panel discussions. GROW (Get Ready to Own & Win)
aims at providing opportunities to women employees to
explore leadership potential and accelerate personal growth
through group and individual coaching. 'Winspire Propel'
and 'Winspire Rise' initiatives were launched pan L&T for
developing mid-career women leaders in Tier 2 and for early
career women in Tier 1. There are a host of initiatives planned
under the newly formulated D&I Charter based on 4 broad
themes of Induct, Engage, Develop leadership pipeline and
Enable a supporting ecosystem, to further strengthen the
inclusive culture of L&T and make it even more diverse.
| INFORMATION TECHNOLOGY
Page no. 178
Integrated Annual Report 2021-22
With digitalisation making inroads into all business
segments, e-commerce is slated to grow exponentially and
in this positive environment, L&T SuFin brings choice and
convenience in a single and completely reliable package.
The rising security concerns and emergency service are
leveraging the perimeter security and quick response system
against any external threat, thus giving a boost to the
perimeter security market for Government and private sector
establishments such as ports, seaports, defence, industries,
factories etc.
in the coming financial year. Under the Jal Jeevan Mission,
sensor-based loT devices play a crucial role in providing safe
quality of water and restrict pilferage.
L&T EduTech - Building Value for Learners, Academia and Industry
Integrated Annual Report 2021-22
111
Rapid urbanisation is driving the use of technology to solve
complex city problems globally. Smart Cities expansion to
remaining Tier 2 & Tier 3 cities is expected. Public Safety (City
Surveillance) and better commute experience (ITMS) in cities
are being prioritised by the Government. The Smart Meter
National Program in India aims to connect Smart Meters
at 250 Mn households by 2025. Similar to the Advanced
Metering for Energy utilities, opportunities pertaining to loT
solutions for Water Utilities is also expected to gain traction
Outlook
•Facility Acceptance test for Jharkhand Statewide Area
Network Project successfully completed
• Telecom system for R2 section of Bengaluru Metro
flagged off
Cyberabad & Rachakonda ITMS for Cyberabad &
Rachakonda Commissionerate
System for Integrated Test Range for DRDO
Commissioning of 9.3 meter Earth Satellite Antenna
The BharatNet program to provide digital connectivity to
gram panchayats across the country has been targeted for
completion by 2025.
.
• Successful soft launch of Moradabad Smart City Project
Integrated Command Control Centre ahead of schedule
Projects commissioned:
• The business has signed transfer of technology with Centre
for Development of Advanced Computing (CDAC) for Cyber
Security- DLM using blockchain and Centre for Artificial
Intelligence & Robotics (CAIR) DRDO for Secured Handset
• The Communications segment successfully launched the
in-house developed Network Management System that can
effectively monitor the IT and Non-IT Infra simultaneously
in a project
• LTI has been recognised as the Global Innovation Partner of
the Year by Snowflake, the Data Cloud Company
• The business also successfully demonstrated its capability in
the 5G domain with the successful deployment of use case
leveraging lot, Video Al riding on 5G network in the areas
of public safety and smart & connected health
• Breakthrough orders in areas of solutions / services and
from private sector with solutions order received from
Telangana, orders in Operational Technology and Cyber
security from industrial segments, order for setting up of
Security Operation Centre, etc
• Integrated Mobile Shelters for Armed Forces for
Advanced Systems Laboratory of DRDO
• Ahmedabad Safe City Project - Integrated Command
& Control Center, City Surveillance System and Video
Analytics solutions for citizen safety
• Patna Smart City - Integrated Command and Control
Center (ICCC Smart City Platform) and implementation of
city surveillance, ITMS and smart solutions and analytics
• Moradabad Smart City for creation of Command-and-
Control Centre (CCC), CCTV Surveillance, Smart Traffic
Solution, and Integration of various ICT components
Despite challenges posed by COVID-19 on the market
opportunities, the business was able to secure multiple critical
jobs such as:
Major Achievements
.
Special initiatives for Data Center & Cloud Modernisation and
IT Refresh are being implemented by Government and Private
sector. The growing penetration of digital models across a
wide range of businesses offers a massive opportunity in this
Data Centre & Cloud ecosystem.
Driven by the need for high-speed and secured wireless
network, the private LTE market size is experiencing an
accelerated adoption across industries and in an
exponential year on year market growth, creating
opportunities for the business in the areas of adoption of
private LTE across industries.
The Cyber Security market continues to provide exceptional
opportunities for solution providers. With the increasing
threats and IT & OT convergence Cyber Security solutions
have received a push in the Private as well as Government
sectors. 5G is critical to cater to the future needs of
digitalisation and for developing digital solutions for
businesses across the globe, which will create opportunities
for efficiency enhancements and new revenue streams. 5G
spectrum allocation is expected to be fast-tracked and the
rollouts are expected to be implemented in the near future.
The revenue for the platform is generated in a hybrid manner
through subscription fees, advertising, product listing, etc.
and through transactions fee by charging a commission for
transacting on the platform. In addition, there are financing
fees, and logistics fees collected from the entities for using
the services.
The logistics partners on the platform would enable efficient
delivery and fulfilment in a timely, cost-effective manner
with strong service level agreement compliance. In this B2B
marketplace initiative, financial services companies will also
participate on the platform by providing attractive financing
options to the registered users.
L&T SuFin is a B2B industrial products ecosystem which has been
commercially launched in March 2022, providing a platform
for SME / MSME buyers and sellers to connect in an efficient
manner, thereby enabling sellers to expand their sales reach,
and for buyers to find the right products and services at an
optimal cost and quality. The business platform offers a wide
product range in industrial supplies & consumables, building
& construction materials, electrical & electronics equipment,
machinery tools & mechanical equipment and packaging,
printing & office supplies.
experience with SMEs and with the products, provides an
opportunity to create trust between buyers and sellers on the
platform. Leveraging its strong brand salience, understanding of
the products and leadership position, L&T is well placed to enter
and service the B2B e-commerce segment.
L&T, with its presence across multiple industrial and
infrastructure sectors, has deep knowledge of a large number
of construction and industrial products and associated supply
chain nuances. L&T also has rich experience in dealing with
thousands of SMEs over the years, and thereby understanding
their problems and impediments to growth. Further, L&T's
In India, a number of B2C e-commerce platforms are well
established and operating at scale. In comparison, the B2B
e-commerce for industrial and construction products is at a
nascent stage and just beginning to emerge with a few players
operating in some segments of industry.
L&T SuFin
professionals, students, and learners across segments using
a technology intensive user-friendly platform. The business
commercially launched on October 15, 2021 intends to further
fine-tune the product over time. The offerings include technical
courses for colleges covering a wide stream of subjects like
Civil, Mechanical, Electrical & Electronics, IT, Chemical, etc. It
also offers Vocational & Skilling programmes for increasing
employability and Upskilling and Assessments for evaluating as is
skills for measuring employability and for competency mapping.
There are four broad categories in EdTech Industry and out of
the four segments, L&T has decided to enter Higher Education
and Professional skilling. To address the issue of equity, access
and opportunity, University Grants Commission has recently
doubled the academic credit limit for online courses to 40%,
which positively supports the business. Industry-led curriculums
and cross functional credits are only going to increase in number
since there is a dearth of continuous industry-based knowledge
and upgradation among the students of India. All these aspects
create a positive outlook for the business.
L&T SuFin, India's first business platform for industrial and construction products, integrated with finance and logistics options.
LARSEN & TOUBRO
It.
Reports
Statutory Financial
Statements
Report
Integrated
Discussion and Analysis
Management
Corporate
Overview
112
L&T EduTech is a business formed to offer EdTech products and
solutions to educational institutions, skilling bodies, working
L&T, with its rich experience in engineering, is well placed to
develop industry led, application-oriented content, bridging
the industry-academia gap. L&T's courses are developed based
on its inherent expertise and strengths in core engineering,
manufacturing, technology and its efforts in digitalisation, and
not just an aggregation of the existing resources.
Technology has led to massive disruption in the education
industry. World-class education is now available online and is
expected to complement the physical classroom learning. Hybrid
/ blended learning is here to stay and has made education
equitable, accessible and affordable.
L&T EduTech
'Others' also includes the new age businesses incubated by the
Company. These ventures are a part of L&T's plan to leverage
digital technologies in some of its core domains in order to
future-proof them and tap future growth opportunities.
DIGITAL BUSINESSES
The Smart World & Communication business with its
experience and expertise is well positioned to ride on the
wave of digitalisation and digital connectivity and convert the
prospects to project wins.
The latest Spacecom policy has opened doors for private
companies to participate in the domain. Growing application
of Satellites for Surveillance, Defence & Remote connectivity
through Satellite broadband (LEO / MEO sats.) has opened up
new avenues in the space domain for ground stations.
113
• Won Apex Gold Medal award for defence work centre at
Hazira by International Research Institute for Manufacturing
L&T Infotech
7. Sustainable Supply Chain
| STAKEHOLDER ENGAGEMENT
Integrated Annual Report 2021-22
123
Page 24
We have defined the financial and non-financial KPIs
to measure the impacts of our strategy execution over
the short-, medium- and long-term.
Key performance indicators:
8
Page 292-317
across business processes and remain
accountable to stakeholders.
We are committed to the highest degree of
ethics and compliance. We ensure transparency
Governance:
7
Engaged and diversified workforce
Maintaining environmental
commitments
GHG emission reduction
Safe workplace ensuring Zero Harm
Increased social value delivery
Patents, copyrights
and solutions
Deliver sustainable products
and investors
Sustainable returns to shareholders
value creation
Sustainable stakeholder
8
Fostering and nurturing relationships with all our partners and stakeholders is essential for the success of the
Company and long term value creation. Backed by strong engagement platforms, we are working on several
initiatives with our partners across the value chain for inclusive development. We are able to manage risks
and opportunities proactively and set clear goals to deliver long term shared value by engaging with our key
stakeholders through regular dialogues.
SHAREHOLDERS AND INVESTORS
Material Topics:
• Business performance
Advertising campaigns, bulletins, and news
•
• Exhibitions and trade fairs
Workshops and conferences
.
• Customer meets
Continuous interaction through various channels such as:
L&T's Interaction and Engagement Approach
CUSTOMERS
• Consistent credit ratings CRISIL: AAA (Stable), ICRA:
AAA (Stable)
• Solid financial performance irrespective of challenges
L&T Limited is India's largest E&C company with ₹1,010 Bn
revenue and 2,483 Bn market capitalisation.
Key
Performance
Indicators
Value creation
• Integrated Reports (IRS)
• Business Responsibility and Sustainability Report (BRSR,
earlier BRR)
• Investor grievance channels along with the presentation of
financial reports and presentations
• Annual general meetings
Face-to-face meetings
•
Quarterly calls
.
L&T's Interaction and Engagement Approach
• Fair business practices
• Effective financial and non-financial risk controls
• Improved Return on Investment (ROI)
Regular announcements and filings with the stock exchanges
Material Topics:
Page 22-23
In line with our overall strategy, we prioritise the
Reports
899
MANUFACTURED
CAPITAL
Page no. 148.
LARSEN & TOUBRO
Statements
0
INTELLECTUAL
CAPITAL
Page no. 158 >
HUMAN
CAPITAL
Page no. 168
About the report
At L&T, we have been taking concerted efforts towards
achieving resource efficiency and decarbonising our
businesses. We have sharpened our focus on improving
performance across environmental, social and
governance (ESG) parameters. We are revisiting our
vision, policies, frameworks, roadmaps and action plans
to deliver solutions towards building a better future.
This Integrated Report (IR) includes financial and non-
financial performance of L&T Limited and is aligned to
principles of International Framework developed by the
International Integrated Reporting Council (IIRC). The
Report expands the target audience from the primary
provider of financial capital to include employees,
customers, suppliers, local communities, regulators,
and policy-makers.
119
120
OUTPUT METRICS
Integrated Annual Report 2021-22
I VALUE CREATION MODEL
Natural Capital
Water Consumption: 9.4 Mn m³
Energy Consumption from Non-Renewable
sources: 9,520,137 GJ
Energy used from Renewable Sources: 127,129 GJ
Spend on Environment: *294.8 Mn
Material Consumed
Statutory Financial
Integrated
Report
Management
Discussion and Analysis
Management
Strategic objectives:
6
Page 136-199
Our resources and relationships which are critical for
us to create value and are classified into six capitals.
We provide inputs under each capital to drive our
business process.
Robust risk
framework
management
Capitals:
5
Sound corporate
governance practices
SE-1, SE-2, SE-3, SE-4, SE-5
Strategic Enablers:
SO-I, SO-II, SO-III, SO-IV, SO-V
strategic objectives which help us in achieving our overall
organisational goals.
Strategic Objectives:
environment
Dynamic business
7
6
partners
Stakeholder
Statements
Reports
LARSEN & TOUBRO
Statutory Financial
Integrated
Report
8. Talent Management-Attraction,
Retention & Development
6
Manufactured Capital
•
M
• Roads: 474 lane km
•
Railways: 306 track km
• Mass Transit: 3.86 km
• Bridges & Tunnels: 11.6 km
Power Infra created
• Transmission Lines: 1,860 circuit km
• Solar Power capacity: 161 MWp
Water & Sanitation Infra created
• Irrigation capacity: 1.01 L ha
• Pipelines laid: 32,609 km
• Treatment capacity: 617 MLD
•
Factory Output: Total production in the
reporting year (B&F, PT&D, M&M, HE,
Defence, LTEH): 321,967 MT
• Green Business revenue: *388.43 Bn
2 6
7 11 12 13
1
7. 9. 12
13
လ
14 15 16
Value Engineering projects: 74
Revenue in FY 2022 from new emerging business
started in last three years: *21,510 Mn
Building Infra created: 17 mn.sq.ft
Mobility Infra created
Crushed Sand: 1,330,182 MT
Zinc: 130 MT
GHG emission intensity: 893 tCO₂e/Bn
Material reused/recycled
Steel: 2,676 MT
Corporate
Overview
Intellectual Capital
R&D Spend (Cumulative for last 3 years):
*4,498.4 Mn
Patents filed: 15
R&D Engineers and Scientists: 187
Active collaborations and partnerships: 28
INPUT METRICS
•
Cement: 3,256,013 MT
⚫ Sand: 3,186,601 MT
⚫ Ferrous: 1,657,640 MT
BUSINESS PROCESSES AND OFFERINGS
1.
Lifecycle costing
Innovation
Process improvement
Engineering
Construction
Oil & Gas Platform
Hydrocarbon Plant
Hospitals
Commercial Spaces
Stadiums
Metro Rails and
Railways
Wastewater recycling efficiency: 48%
Saving in energy: 149 Mn kWh
GHG emission: 889,063 tCO₂e
Lean operations
1
9.
LARSEN & TOUBRO
Water
Treatment Plant
Digitalisation
000
Design thinking
Transmission
and Distribution
Lines
Revenue/employee: *19 Mn/employee
Attrition Rate: 9.05%
Average training hours per employee: 8.37
Accident free man hours: 1,153 Mn
CSR Beneficiaries: 1.13 Mn
Contribution to Exchequer: 54.4 Bn
Awards: 56
Appreciation certificates: 27
Joint Projects: 35
Complaints received: 76
Complaints resolved: 50
Turnover: 1,010 Bn
PBIT: 115 Bn
Dividend: 30.91 Bn
Return on Net Worth: 12.23%
1.
3
①+
*⑰+
8
10
Nuclear
Plant
Ferrous and Non
ferrous plant
Hydro
Power Plant
Solar PV Plant
Statements
Corporate
Overview
Management
Integrated
Statutory Financial
Discussion and Analysis
Report
Reports
Human Capital
Permanent Employees: 45,615
Engineers (BTech/MTech/Diploma):
37,966
Workforce (Contract Employees):
200,062
Employees covered under leadership
11 15
development programmes: 310
CSR Spend: 1.36 Bn
CSR Partners: 45
Active suppliers and contractors: 97,123
MSME Suppliers: 2,615
Memberships of Industry Chambers: 15
Financial Capital
Order Book: 3,155.7 Bn
Net Current Assets: 344.5 Bn
Net Fixed Assets: 97.0 Bn
Gross Debt Equity Ratio: 0.30: 1
Value engineering
Benchmarking
Manufacturing
Technology
Airports
Social and Relationship Capital
Project Sites: 710
Discussion and Analysis
CD
• Continual improvement in our ESG performance
• Present our performance through mandatory and non-
mandatory disclosures
Material Topic:
•
Transparent Stakeholder Communication
COMMUNITIES
L&T's Interaction and Engagement Approach
Regular press meets and periodic media visits
• Interactions for news and articles
Value creation
• Provide media updates
• Share critical information through press releases and feeds
to social media (LinkedIn, Facebook and
L&T website)
• Conduct media briefings and presentations
Material Topics:
•
Expectation of livelihood creation
•
Improvement in well-being and living standards
• Water and sanitation - development of
community infrastructure
L&T's Interaction and Engagement Approach
Regular engagement through:
• CSR programmes and initiatives
•
Manufacturing Locations: 18
For further details on our public policy advocacy, please
refer to Principle 7 of BRSR [Businesses, when engaging in
influencing public and regulatory policy, should do so in a
manner that is responsible and transparent]
Play an active role in policy formulation
Member of important industry associations
project/establishment's requirements
L&T's Interaction and Engagement Approach
• Periodic partner meets
E-tendering and e-procuring and supplier meets
• Training and capacity building programmes such as Human
.
Rights, EHS training, etc.
Regular visits to suppliers' and contractors' facilities
Value creation
• Cost-effective price negotiations
.
Screening, assessment and audits of suppliers related to
Volunteering activities
quality and EHS aspects
Integrated Annual Report 2021-22
GOVERNMENT
Material Topics:
Compliance with regulations
• ESG performance and Integration
• CSR and reporting
MEDIA
L&T's Interaction and Engagement Approach
.
•
•
Regular interaction with local governments
125
• Different purchase processes by businesses as per
. Quarterly review of Integrated Community
Development Projects
Value creation
12
11
14
8
13
9
6
10
5
4
3
Low
Importance for L&T
High
1
2
Material topics:
1. Customer Experience
& Satisfaction
2. Corporate Governance
3. Business Ethics
4. Employee & Workforce
Engagement, Wellbeing,
Heath & Safety
5. Human Rights &
Labour Conditions
6. Skilled Manpower
7
15
High
We identified 32 potential material issues which are directly or indirectly related to our businesses. Stakeholder feedback was
obtained through surveys and finally top 15 material issues which are most important for short-, medium- and long-term value
creation from both internal and external stakeholders perspective, were identified.
• Nine Construction Skills Training Institutes (CSTIs) impart
training in formwork, carpentry, bar-bending, steel fixing,
masonry, construction, electrician skills, welding and CCTV
installation training
• Education, health and skill development for communities
around L&T establishments and project sites
• Access to drinking water and sanitation in water-
stressed regions
• Integrated Community Development Programmes
126
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
| MATERIALITY ASSESMENT
• Continuous engagement with village panchayats and local
authorities
Materiality assessment is the process to identify, prioritise, track and report on ESG issues that are of concern to
stakeholders and can impact the business. A matter is material if it is of such relevance and importance that it could
substantively influence the assessments of providers of financial capital regarding the organization's ability to create
value over the short, medium and long term. In FY 2021-22, we conducted an extensive stakeholder engagement
exercise to identify the top ten material issues and understand the stakeholders' perspectives on the potential material
topics and efforts for sustainability. These material topics form input for our strategy, planning and disclosure.
Identification of
potential topics
Categorisation of
potential material topics
Stakeholder identification
and prioritisation
Stakeholder
Engagement
Stakeholder
feedback
Finalisation of
material topics
Mumbai Trans Harbour Link
127
128
Stakeholder concern
Integrated Annual Report 2021-22
MATERIALITY MATRIX
ASSESSMENT PROCESS
• Price reduction
Value creation
•
Evaluate the impacts
of material issues
1
External environment:
2
122
The environment in which we operate, including
the economic environment, global pandemic,
climate change impacts and infrastructure growth
cycle, among others.
Page 34-112-
Identifying risks and opportunities:
The key objective is to identify key risks associated with
the business and their impact on our strategy and value
creation process.
Page 25-29
3
Financial
Stakeholder engagement:
Our success and business sustainability
depend on the support from our stakeholders
and makes it imperative for us to understand
their needs and interests.
Page 124-126
4
Material issues:
Material issues have the potential to impact
our value creation and achievement of our
strategic objectives.
Page 127-131
Corporate
Overview
15. Social Engagement & Impact
14. Water, Waste & Hazardous
Materials Management
13. Brand Management
12. Quality Of Products And
Project Delivery
4
And Cybersecurity
Human
Repeat orders
2 3 4 5
8
10 17
M
60
8
121
Integrated Annual Report 2021-22
I VALUE CREATION PROCESS
Our value creation process assesses our operating context, identifies the key business risks, evaluates the
relationships that are critical to our value creation abilities and assesses the availability of our resources.
1
Assessing the external
environment
5
Our Capitals:
Natural
Manufactured
Identify key risks and
2
opportunities
Formulate
Intellectual
Strategies
Stakeholder
3
engagement
11. Data Security, Privacy
Social and Relationship
10. Diversity, Inclusion &
Statements
EMPLOYEES
Material Topics:
• Career growth
•
Employee benefits
• Skill development
•
Effective/high-quality training programmes
L&T's Interaction and Engagement Approach
Regular communication through:
.
Project updates
• Town halls
• Departmental meetings
• Connect sessions where employees voice their ideas
and concerns
• Internal magazines and portals such as Newsman, SPOT
•
News, RAPL, etc.
Enterprise-wide employee portal called 'L&T Scape' for
regular connect
Value creation
• Focus on attracting and retaining talent
• Promote employee wellness, functional and soft-skill
development programmes, leadership development
programmes, continuous improvement in programmes for
structured learning and development of workforce
SUPPLIERS/CONTRACTORS
Material Topics:
•
Equal Opportunity
Timely payments
Reports
9. Climate Action
Report
LARSEN & TOUBRO
Discussion and Analysis
• Confidentiality
• Competitive contract price bid
• Innovation and state-of-art engineering techniques
•
Timely completion of projects
•
•Transparency in energy, water and
GHG emissions performance
• One-on-one interactions
• Periodic reviews, annual reviews, customer satisfaction
surveys and feedback forms
High safety standards
•
.
On-time project completion with deeper 'customer
connect' at multiple levels.
Tighter project monitoring and control
• Increased after-sales support and regular monitoring
of projects
• KPIs - Safety, water, material management, energy and
GHG emissions, among others.
124
Statutory
Corporate
Overview
Management
Integrated
Financial
Value creation
Implementation of policies and procedures regarding topics
which include, but may not be limited to, issues such as insider
trading, fraud, bribery, discrimination, professional conduct, etc.
Refers to the relationship, interactions and experiences between
the business and the customer throughout the entire journey.
L&T's presence is primarily in EPC and projects and customers
include Central & State Govt., public and private sector
organisations. Partnering with customers for on-time project
completion with deeper 'customer connect' at multiple levels,
regular monitoring of projects, innovation and state-of-the-art
engineering techniques, high safety standards, transparency in
energy, water and GHG emissions performance, etc.
Financial
Capital
Set of systematic rules, practices, and processes by which
businesses are operated, regulated, or controlled are part
of corporate governance. It involves balancing the interests
of a company's stakeholders, such as shareholders, senior
management executives, customers, suppliers, financiers, the
Government, and the community. Corporate Governance
reflects our core values around the principles and ideals based
on independence, transparency, accountability, responsibility,
compliance, ethics and trust.
Refers to the physical, mental, and emotional health of
employees and workforce, both within and outside the
workplace. With 52,155 employees and 200,000 + workforce, it
is important to continuously engage the workforce in an effective
manner. Engagement includes regular communication, training
& development, skilling, management-employee dialogues and
technologies that enable the same.
Strategies
Intellectual
Capital
Natural
Capital
Capitals
Associated
SO-I, SO-III,
SO-IV, SO-V
Human Rights
& Labour
Conditions
Human rights include child labour, forced labour, prevention
of sexual harassment, etc. Also involves the right to safe
and healthy working conditions, as well as rest, leisure and
reasonable working hours. Labour conditions cover areas such
as working conditions, wages, discrimination, etc, including
entitlement to wages and benefits, working hours, overtime
arrangements and overtime compensation, and leave for
illness, maternity, vacation and respecting collective bargaining
agreement. Our scope is not just limited to Tier 1 vendors but
also our subcontractors and workers. With a contract workforce
of >200,000 contract, it is crucial to support, respect and
protect human and labour rights and ensure that the Company is
not complicit in any kind of violations.
Employee &
Workforce
Engagement,
Wellbeing,
Health &
Safety
Statutory
Corporate
Governance
Customer
Experience and
Satisfaction
Description
Material Topics
DESCRIPTION OF MATERIAL ISSUES AND LINKAGE WITH STRATEGY AND CAPITALS
LARSEN & TOUBRO
Financial
Statements
Reports
Report
Discussion and Analysis
898
Integrated
Management
Corporate
Overview
Business Ethics
SO-I, SO-II,
129
SO-V
Social & Relationship
Capital
888
Manufactured
Capital
Natural
Capital
Intellectual
Capital
Financial
Capital
Refers to providing employment opportunities on merit without
any discrimination based on gender, sexual orientation, disability,
marital status, pregnancy & maternity, caste, socio-economic
status, religion, faith, nationality, ethnicity, race, colour, age,
religious or political views. Ensure equal opportunities with
respect to recruitment, learning, development, promotion,
employee benefits, separation and other aspects of employment
relationship based solely upon merit, performance, potential and
qualifications required for the job.
Key aspects include emission reduction, efficiency in energy use,
renewables, judicious use of water, recycling of water/ waste and
use of eco-friendly materials, and green business.
Key aspects include productivity, engineering skills, project
execution capability, technology orientation, and
leadership pipeline.
Refers to how employers can attract and retain high-quality
employees, develop their skill, motivate them to deliver
their best and stay with the organization in the long run.
Strategic implementation of talent management practices
helps businesses improve performance, stay competitive, drive
innovation, form productive teams, reduce turnover and create
a strong employer branding.
Management of environment, social and economic impacts
across the supply chain. Suppliers are our partners in delivering
timely performance in construction and manufacturing
businesses. We encourage suppliers to partner our sustainable
growth. With an active supplier base of 97,123 and 2500+
MSME suppliers, fostering responsible behaviour in the supply
chain, in accordance with the highest standards of ethics and
integrity, respect for the law, human and labour rights, and
environmental stewardship is vital.
Trained, educated and experienced segments of the workforce
undertaking more complex mental and physical tasks. As we carry
out large contracts related to construction and infrastructure,
skilling manpower on a continuous basis is extremely important.
Primary skill sets include bar-bending, formwork, electrical work,
tiling, masonry, welding, carpentry and solar electrical work,
etc. It is also required for hi-tech manufacturing for Defence
Engineering and Heavy Engineering businesses.
Description
Diversity,
Inclusion
and Equal
Opportunity
Climate Action
Management-
Attraction,
Retention and
Development
Talent
SO-I, SO-II,
SO-III, SO-IV,
SO-V
SO-V
888
man
SO-V
SO-III, SO-IV,
Manufactured
Capital
888
Human
Capital
Integrated Annual Report 2021-22
Material Topics
Skilled
Manpower
Sustainable
Supply Chain
Social & Relationship
Capital
130
Electricity saved*
138
74,740
Corporate
Overview
Management
Discussion and Analysis
Integrated Statutory Financial
Report
Reports
Statements
LARSEN & TOUBRO
Water Consumption Intensity
(kl/Bn Revenue)
Target: Reduce water consumption Intensity by 30% by
FY 2026 w.r.t to FY 2021
% Wastewater Recycling Efficiency
Target: Achieve 60% Wastewater recycling efficiency by
FY 2026
10,852
11,237
9,454
FY 2020
38,056
893
FY 2022
FY 2021
(GJ/Bn Revenue)
Target: Achieve 11% reduction in intensity
by FY 2026 w.r.t FY 2021**
GHG Emission Intensity
(tCO₂e/Bn Revenue)
Target: Reduce GHG emission intensity by 25%
by FY 2026 w.r.t FY 2021**
FY 2020
FY 2021
FY 2021
FY 2022
* Results of various initiatives undertaken at campuses and project sites
** Increase in Energy Consumption Intensity & GHG Emission intensity in FY 2022 due to:
- Ramping up of construction activity
- Revenue was not realised in FY 2022 for certain projects executed in the same FY
098
864
FY 2020
9,693
Energy Consumption Intensity
FY 2022
σε
Reach 1.53 million beneficiaries in FY 2025-26
TARGET
Increase employee volunteering base to 5,000
STATUS
1.13 million beneficiaries in FY 2021-22
STATUS
4,900 employees participated in the volunteering
programmes and worked for various social causes
in FY 2021-22
133
Integrated Annual Report 2021-22
I MANAGING CAPITAL TRADE-OFFS
Managing growth while minimising the impact on the environment
L&T is a growing company and present in multiple business
verticals such as EPC projects, high-tech manufacturing
services and others.
The pursuit of growth requires judicious allocation of
various resources; with financial resources being one of the
most important ones. We have devoted significant capital
resources (both short and long term) to support the growth
of our businesses. Some of these investments are being
made in new businesses which have a positive impact on the
environment e.g., green hydrogen and battery storage. We
are also investing in digital businesses that aim to address the
demand-supply gap for skilled personnel (through EduTech,
an industry-led, application-based online learning platform)
and address the hurdles in growth faced by MSMEs (through
L&T-SuFin, a B2B e-commerce platform for industrial products
and services). These businesses will have a positive impact on
the lives of thousands of people.
Thus, the nature of investments, for some of our growth
initiatives, obviates the trade-off between sustainability and
growth by addressing both the issues.
While growth creates positive impact for the business, it also
puts pressure on usage of natural resources. To reduce this
impact on the environment, we also invest in our operations
to increase resource efficiency and minimize waste. Increasing
the efficiency of plant and machinery is one of the key focus
areas. This is being driven by digitally connecting more than
TARGET
Corporate social initiatives
FY 2022
FY 2021
FY 2021
38
FY 2022
48
Recycled Material used
(MT)
18% of recycled + eco-friendly materials used
in FY 2022
FY 2020
447,482
444,506
Safety
TARGET
Zero Harm
STATUS
Our severity rate of accidents has
reduced by 2.5% in FY 2021-22
compared to FY 2020-21. The number
of fatalities were 25, remains same as
last year
FY 2020
425,747
11,000 pieces of equipment across more than 600 project
sites and through lloT for our manufacturing facilities. We
aim to enhance the usage of renewable energy (target to
reach 50% of electricity consumption by 2026) and clean
fuels (biogas, renewable diesel) in our energy consumption.
We are devoting resources to make our campuses green by
minimising waste, increasing the use of renewable energy,
and recycling wastewater. We are also working towards
reducing water consumption and increasing water recycling
at project sites and manufacturing facilities. Despite the
constraints faced in some contracts, where clients insist on
the use of natural materials, we try to maximise the use of
recycled and alternative materials.
26,740
FY 2021
Financial
Capital
SO-V
SO-I, SO-V
SO-V
SO-III, SO-IV,
888
SO-I, SO-II,
SO-I, SO-III,
SO-V
SO-IV
Strategies
19
Capitals
Associated
Effective means to create a positive impact in the areas where
the Company operates. Our business spans vast areas of the
country and we directly impact and get impacted by society.
Communities are among our primary stakeholders. Our focus
areas include Water & Sanitation, Health, Education and
Skill Development.
Water is one of the most significant inputs for construction
activity. Processes, technologies, and systems to reduce the
amount of water used, increase water-use efficiency and manage
the wastewater appropriately needs to be deployed. Water
conservation through recycling, reuse and efficiency improvement
are major focus areas. Hazardous-waste management is the
process of collecting, treating, and disposing waste material that
can cause substantial harm to human health and safety or to the
environment, if handled improperly.
Refers to maintaining and bettering products, services, and
brand perception with the objective to receive cost leverage,
increase customer loyalty, and establish meaningful brand
awareness. It also includes promoting approaches to increase the
perceived value of a product line or brand over time. Our brand
management includes corporate brands and individual brands of
various ICs.
Intellectual
Capital
Natural
Capital
Manufactured
Capital
Social & Relationship
Target: 40% of total revenue by
Green Business
(Bn Revenue)
| SUSTAINABILITY PERFORMANCE
Integrated Annual Report 2021-22
346
33.2%
31.4%
High quality and timely delivery of the projects are critical for
success and growth. Products are in high tech manufacturing
areas of Heavy Engineering (process plants, reactors, boilers,
steam generators). Construction (building, infrastructure,
hydrocarbon, etc.) and related projects constitute >90% of
revenue for our businesses.
FY 2026
9,431
132
131
Capital
Capital
Human
888
9,564
FY 2022
Refers to the state of being protected against the criminal or
unauthorized use of electronic data, or the measures taken to
achieve this. With the internet being pervasive, cyber security is
becoming a major concern for companies. Includes mechanism
for data security, privacy and cyber security. Covers people,
process and technology. Key aspects include IT security policies,
frameworks to manage Cyber Security risk, and controls across
the organisation.
Social
SO-V
898
Strategies
Capitals
Associated
Capital
Human
We have cumulatively saved 149 million kWh since
310
388
38.2%
FY 2008
FY 2020
FY 2021
FY 2022
FY 2020
SO-I, SO-V
SO-I, SO-III,
898
SO-IV, SO-V
Water, Waste
and Hazardous
Materials
Management
Management
Brand
Quality of
Products
and Project
Delivery
Data Security,
Privacy and
Cyber Security
Description
(GJ)
Engagement
and Impact
LARSEN & TOUBRO
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
SO-V
888
SO-III, SO-V
Statutory Financial
Reports Statements
Furthermore, we continue to invest in improving our
capabilities, in terms of facilities, equipment, engineering
& design and technology to be the leader in creating
environment-friendly assets for our clients i.e., renewable
energy (solar, hydel), non-fossil fuel energy (nuclear), water
treatment and reuse, green buildings, and clean mobility
systems. Over a period of years, the share of business from
these projects/contracts has grown steadily to reach ~38%
of our revenues in FY 2021-2022 while helping our clients
reduce their carbon/water footprint.
Material Topics
Capitals deployed:
FY 2022
FY 2026
CO₂e impact - Post abatement
Mn tonne
0.75
0.81
Net water consumption (excl. conservation, recharge methods)
Mn kl
1.11
9.7
9.4
13.3
Green Business
% of revenue
33.2%
FY 2021
(Base year)
UOM
Aspects
Target
- Corporate Governance
- Business Ethics
- Sustainable Supply Chain
- Climate Action
- Brand Management
- Water, Waste and Hazardous
Materials Management
38.2%
137
TRANSLATING SUSTAINABILITY INITIATIVES INTO LASTING OUTCOMES
Our strategy is to adopt a low-carbon pathway for all our
businesses and translate our sustainability initiatives into
lasting outcomes.
Since 2016, we have been setting targets as a part of our
sustainability programme and working to fulfill them. Our
Company has a sustainability policy, systems and processes
LAKSHYA 2026 TARGETS ON NATURAL CAPITAL
in place to achieve our sustainability goals. The overall
performance is monitored and reviewed by the Board on
a quarterly basis. Our revised broad sustainability roadmap
came into effect in 2022, with the target year of FY 2025-26.
Currently, granular plans are being made.
We have set major targets and are in process of formulating comprehensive action plans on the following aspects:
Actual
Integrated Annual Report 2021-22
40%
While overall GHG emissions will increase due to an increase in business activity, the intensity is expected to reduce by
25% by FY 2025-26, primarily due to various energy efficiency measures and greater use of renewables.
KEY HIGHLIGHTS OF FY 2021-22
Green Business¹
38.2% of total revenue
(as compared to 33.2% in
FY 2020-211)
Materials Management
45,744
Recycled steel consumed
cumulative (MT) since
FY 2007-08
1,779
Recycled zinc consumed
cumulative (MT) since
FY 2007-08
Reduced use of hazardous
chemicals by
(against 85 Mn in FY 2020-21)
32% (vs FY 2020-21) and
54% (vs FY 2019-20)
46,539 tCO2e
Emission avoided
Mr. S. N. Subrahmanyan,
CEO & MD, L&T has joined
the CEO Forum as one of the
nine founding members of
Climate Finance Leadership
Initiative (CFLI) India formed
by Bloomberg.
w.r.t FY 2020-21
1. Previously called Green portfolio. Green Business revenue data of our Buildings & Factories and Smart World & Communication businesses has been
revised for FY 2020-21
L&T has demonstrated that capital trade-offs can be turned
into opportunities and endeavours to maintain the balance
between growth and environment for years to come.
Our scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY 2021-22 and FY 2020-21
Consumption of oil and
lubricants is at par with FY
2020-21 and 17% reduction
(vs FY 2019-20)
KEY MATERIAL ISSUES IMPACTED
* 294.8 Mn
Expenditure on
Energy Conservation
149 Mn units
0.32 Mn
Energy saved Cumulative (kWh)
Fuel Saved (kl)
since FY 2007-08
Renewable Energy
Environmental measures
Renewable Energy used in our
10%
of total electricity mix
Water Management
48%
Wastewater recycling efficiency
3%
Reduction in water consumption
campuses and project sites (kWh)
12
35.31 Mn units
ON LAND
Capital
Capital
134
Corporate
Overview
Management
Integrated
Statutory
Financial
Capital
Discussion and Analysis
Reports
Statements
LARSEN & TOUBRO
135
136
Integrated Annual Report 2021-22
NATURAL
CAPITAL
At L&T, we understand that we
have only one Earth and we need to
optimise resources and synchronise
all activities that further the cause
of sustainability and business
interests. We have been consistently
working towards conservation of
natural resources, building efficient
infrastructure, reducing emissions, and
more importantly, urging stakeholders
towards behavioural change through
consultation and partnership. Our
sustainability reporting started in 2008
and is a testimony of our commitment
towards a better planet.
Report
POLICIES
Social and
Relationship
Capital
Capitals impacted:
Financial
Capital
18
Cu
CO
窗
co
Manufactured
Capital
Human
Capital
Intellectual
Capital
Capital
Manufactured
Capital
Intellectual
Capital
Human
Capital
Social and
Natural
Relationship
Financial
Corporate
Overview
Natural
Integrated
13
HAD SANITATION
CLOHN WATE
SSS
Management
PAIR ARNS
14
2
SDGS IMPACTED
ACTR
SE-2
SE-1
SO-I SO-III SO-V
STRATEGIES IMPACTED
GREEN BUSINESS REVENUE
SE-3
15
SAPLINGS PLANTED
1,499,989
BY 2040
CARBON NEUTRAL
Statutory Financial
BY 2035
WATER NEUTRAL
Discussion and Analysis
KEY HIGHLIGHTS OF FY 2021-22
Report
Reports
*388.43 Bn
Statements
LARSEN & TOUBRO
FY 2021
וד
חיי
FY 2020
FY 2021
FY 2022
Percentage of recycled steel used in place of ferrous
Percentage of recycled zinc used in place of zinc
FY 2022
FY 2021
FY 2022
FY 2020
7,841,112
Percentage of crushed sand used in place of sand
Integrated Annual Report 2021-22
LARSEN & TOUBRO
1,779
9,171,294
143
FY 2020
6,228,811
FY 2022
FY 2021
FY 2020
FY 2022
FY 2021
Percentage of fly ash and GGBS used in place of cement
|||
EXPANDING OUR GREEN BUSINESS
FY 2021
• Non-fossil power generation (Nuclear)
FY 2020
• Water & effluent treatment
•
Railway Network
• Flue Gas Desulphuriser (FGD)
• Process equipment for biodiesel / clean fuels
• Green buildings / facilities
• Surface miners / sand plants, etc. (except for coal)
• Mass Rapid Transit System (Metro & High-speed Rail)
•
Solid waste Management - automated communication
software for effective solid waste management in Smart Cities
• Renewables (Solar / Hydro)
• Natural-gas extraction facilities
Our Green business includes:
We are steadily developing our portfolio of sustainable engineering and design solutions. Our green portfolio comprises projects
embedded with advanced technology, solutions centred around renewables, water and effluent treatment plants, efficient power
distribution, mass transit systems and green buildings. Our green business offers infrastructure that has a low impact on the
environment and focuses on public wellbeing. Our green business contributed *388.43 Bn (38.2%) to the revenue of the Company.
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
144
Note: Our product portfolio constitutes less than 10% of the standalone revenue of the Company
LIFE CYCLE ASSESSMENT (LCA) OF DIAMOND GREEN DIESEL REACTOR
LCA is a method for assessing a product's environmental impact considering its various life cycle stages. We undertook a cradle-
to-gate LCA of a critical reactor manufactured by our Heavy Engineering business. These reactors process biomass (recycled animal
fats, used cooking oil and inedible corn oil) to make green diesel and reduce greenhouse gas emissions by up to 80% compared
with conventional diesel fuel. LCA results of the manufacturing process of the reactor show that the maximum impacts are due to
the steel and energy consumption from the grid associated with the manufacturing process. Other than these, there are negligible
impacts during the manufacturing process.
|||
FY 2022
FY 2020
(tonnes)
Management
FY 2022
Integrated Statutory
Report
Reports
Discussion and Analysis
Overview
Corporate
Recycled steel - cumulative since FY 2008
(tonnes)
40,570
(tonnes)
2,242,784
9.41
6. Data has been revised for FY 2020-21
5. Water withdrawal data revised for FY 2020-21 and FY 2019-20, data on dewatering and hydrostatic water consumption removed from FY 2019-20 and
data corrected for FY 2020-21. (Note: 1 kl = 1 m³)
• We do not import, export, transport or treat any hazardous
waste covered under the Basel Convention.
• Non-hazardous wastes are either reused, recycled or
scientifically managed.
• Biomedical waste generated at dispensaries and health
centres is disposed of as per statutory requirements, and
responsible disposal is ensured.
2,464 tonnes
Our Green Buildings and their Rating
• Electronic waste (e-waste) is disposed of through
authorised vendors as per the statutory requirements.
• Hazardous waste is transported as per the
statutory requirements.
• Hazardous waste - such as used oil, oil-soaked cotton
waste, used chemical / paint / oil containers, batteries,
paint residues and ETP sludge - is disposed of through
Government-approved recyclers / re-refiners / re-processors.
Our waste management measures:
w.r.t FY 2020-21
6.9%
Non-Hazardous waste
48,995 tonnes
w.r.t FY 2020-21
10.4%
Hazardous wasteб
Financial
Statements
Crushed sand - cumulative since FY 2008
COMPLIANCE
MATERIAL MANAGEMENT
FY 2021
1,649
Recycled zinc- cumulative since FY 2008
(tonnes)
1,494
FY 2020
45,744
2,703,141
2,472,007
Fly ash - cumulative since FY 2008
FY 2022
FY 2021
FY 2020
43,068
6,442,614
2,713
Cement and sand
Oils and lubricants
58,531
Hazardous chemicals
7,692
1,657,640
Consumption
Non-ferrous
Ferrous
Material
Material consumption (partially reported, MT)
The materials consumed primarily during our business
activities are steel, cement and sand. We make sustained
efforts to recycle our steel and zinc at our production
facilities. But the scope of using recycled material is limited
due to customer specifications. At our construction sites, we
make judicious use of fly ash and granular blast furnace slag
to blend cement.
Our campuses and project sites have obtained necessary
approvals with respect to the various statutes, rules and
regulations from authorities before commencing their
operations. There is a 'system compliance report', which is
reviewed at all our units and regional offices on a quarterly
basis. During the year, there were no incidents of non-
compliance, and no fines were imposed on our campuses
within the reporting period.
Project
Renewed in
Integrated Statutory Financial
Report
Reports
Statements
Leadership
IMPACT
• Low water-flow fixtures in toilets
• Anti-COVID-19 features: UVGI (Ultraviolet Germicidal
Irradiation) in central AC system for health and safety
of occupants
• IAQ sensors to monitor and control of CO2 levels for
employee wellness
• Smart campus with high-end digitisation: monitor
and control of lighting, HVAC systems, meeting-room
management
Savings through reduction in raw material usage:
*1.6 Bn
✓ Superplasticisers: 44,479.2 kl
✓ Curing Compound: 2020.8 kl
Water savings by using
Emissions avoided using Supplementary Cement
Materials: 119,946 tCO₂
IMPACT
Sustainable construction means using renewable and
recyclable materials when building new structures, as well as
reducing energy consumption and waste. The primary goal of
sustainable construction is to reduce the industry's impact on
the environment. A project of our Heavy Civil Infrastructure
business, the Mumbai-Ahmedabad High-Speed Rail Project's
C4 Package, has been reducing its CO2 impact by using
supplementary cementitious materials in concrete, and
reducing its water usage by replacing conventional water-
curing with a curing compound.
700 tCO₂e/annum emissions avoided
Promoting sustainable construction
Discussion and Analysis
Management
Corporate
Overview
146
externally in different aspects of Natural Capital. As stated in
our Group Vision, we will pursue eco-friendly growth, thereby
increasing our green portfolio y-o-y. We will continue to
focus on promoting sustainability within the organisation and
innovation will be a big enabler towards this objective. We
will also continue to disclose our sustainability performance
through international platforms such as Dow Jones
Sustainability Indices (DJSI) and Carbon Disclosure Project
(CDP) and we are committed to working on Task Force on
Climate-Related Financial Disclosures (TCFD) disclosures as well.
We continue to explore opportunities both internally and
665 kgCO₂e/annum emissions avoided
108 staff and 194 workmen participated and trained on
plastic management
331.6 kg/annum plastic waste recycled
IMPACT
-
Waste collection and segregation are conducted daily to
minimise waste generated at the site and keep workplaces
clean and hazard-free. Our WET business has tied up with a
third-party manufacturer and supplier - PGS Enterprises India
Ltd. to send its plastic waste to be recycled into plastic
granules, polyfuel, etc
LARSEN & TOUBRO
Water conservation through rainwater tanks:
60 Kl/annum
Wastewater recycled through Sewage Treatment Plant
(STP): 96,000 Kl/annum
Waste reduced by 135 tonnes/annum
WASTE & CIRCULAR ECONOMY
During the
process of disposal, all relevant norms and
procedures applicable are appropriately observed and
documented for further reference, should there be an
emergency. For example, we handle oil spills with care and
we continually report on waste and spills as mandated by
ISO 14001 and OHSAS 18001. Periodic internal and external
assessments are conducted to ensure compliance with
applicable standards and regulations.
כר נכ
799999999
148
Our business segments across
geographies, and our tech-enabled
manufacturing capabilities give us a big
competitive advantage globally. We
implement global best practices at our
manufacturing facilities and locations
and invest in innovation to retain and
grow our market share. Notwithstanding
major challenges in the external
environment, we continued to make
encouraging progress in all our business
segments. With prestigious order
wins, our Order Book was at record
levels. Our revenue also picked up
momentum during the year.
CAPITAL
MANUFACTURED
Integrated Annual Report 2021-22
147
A M Naik Tower, Powai, Mumbai
AM NAIK TOWER
• E-waste segregation facility
reused for landscaping
Organic waste composter treats kitchen waste, which is
•
• Rainwater harvesting facility
Sewage treatment plant generates water for flushing,
irrigation and HVAC make-up
glazing insulated roof and high-efficiency HVAC equipment
and lifts with regen drive
buildings due to solar roof-top PV cells, high-performance
•
Significant energy savings over regular commercial
•
• Concrete-filled tube technology in steel structure
The primary features are as follows:
The certification recognises the iconic structure as a
showcase of sustainability, demonstrating L&T's leadership in
transforming the building industry. A M Naik Tower scored
high on multiple parameters - including overall energy
savings, water efficiency, design innovation and indoor
environmental quality.
The US Green Building Council has awarded L&T's corporate
office, A M Naik Tower, the prestigious LEED Platinum
certification under LEED 2009 Core and Shell development.
LEED Platinum Certification for A M Naik
Tower, Powai, Mumbai
Plastic Waste Management
FY 2022
CASE STUDIES
634,328
Location: Talegaon
The urban forest is a unique methodology proven to work worldwide, irrespective of soil and climatic conditions. Our Defence
Engineering business has been successfully undertaking urban forest development initiatives for the past few years. Here is a
glimpse of the impact.
BIODIVERSITY
Integrated Annual Report 2021-22
145
and we are working on their recertification processes.
14 of our campuses have been certified at different periods
L&T IT Park,
Coimbatore
Tower - Phase II,
Chennai
L&T Innovation
Chennai
Certification
in process
Location: Coimbatore
Tower Phase I,
L&T Innovation
Centre 4, Chennai
Technology
LTI, Mahape
FY 2022
LEED Platinum
A M Naik Tower,
Powai, Mumbai
completed in
Project
Academy,
Lonavala
IGBC Platinum
Development
Future Projects
Location: Bidkin
Location: Erode
3 patches of 400 square
metres
123,239
Jaipur Cluster
124,090
Kolkata Cluster
197,790
Bhopal Cluster
200,120
Bhubaneswar
Cluster
220,422
Bangalore Cluster
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Cluster wise plantation
L&T has planted 1,499,989 saplings in FY 2021-22, with over
99% having been planted by our Water & Effluent Treatment
(WET) business. Over the years (2008-2022) L&T has planted
over 4.8 Mn. trees.
PLANTATION
49,300 saplings with 95%
survival rate
12,500 saplings with 100%
survival rate
3,600 saplings
800 square metres, 2,401
saplings
1 acre
Others
FY 2022
8 acres
9.68
1,287
1,143
2. Intensity data for FY 2020-21 and FY 2019-20 has been revised. Total revenue has been considered for Intensity calculation; earlier, customer revenue
was considered.
FY 2022
FY 2021
FY 2020
400kV Kamudhi-Ottapidaram Transmission Line, Tamil Nadu
8,254
(GJ/Bn Revenue)
FY 2020
1,176
538,358
FY 2022
FY 2021
FY 2020
463,618
Indirect energy intensity²
Direct energy intensity²
(GJ/Bn Revenue)
8,420
Utilisation of grid electricity supplied by
state electricity supply boards.
SCOPE-3:
SCOPE-2:
Consumption of fuels such as petrol,
high speed diesel, furnace oil, natural
gas, LPG, CNG and acetylene.
SCOPE-1:
We are committed to become Carbon Neutral by 2040 from FY 2020-21 baseline, contributing meaningfully to combating climate
change. Our focus is on realigning our processes and systems to reduce our GHG emissions.
LARSEN & TOUBRO
GHG
EMISSIONS
Statements
Statutory Financial
Reports
Integrated
Report
Management
Discussion and Analysis
Corporate
Overview
8,405
FY 2022
FY 2021
74,740
Purchased goods and services, waste
generated in operations (solid waste),
employee commute and business travel
Total
Others
Electricity from Renewable energy sources has increased from 97,044 GJ in FY 2020-21 to 127,129 GJ in FY 2021-22 (an increase
of 31%) and currently it is 10% of electricity consumption. Total electricity consumption has increased from 984,692 GJ in
FY 2020-21 to 1,281,464 GJ in FY 2021-22.
Solar electricity sourced in
campuses: 5
Wind power sourced in
campuses: 5
campuses: 8
Renewable energy generated in
We have utilised 23.67 Mn units from wind powered turbines and 11.63 Mn units of solar energy which constitutes 6.7% and
3.3% respectively of our total grid electricity mix.
RENEWABLE ENERGY
250MW Solar power plant at Rewa. Madhya Pradesh
In FY 2021-22, our total energy consumption was 9,647,266 GJ, comprising direct energy consumption of 8,365,802 GJ and indirect
energy consumption of 1,281,464 GJ. Direct energy intensity decreased by 0.18% with respect to FY 2020-21, while indirect energy
intensity increased by 12.6% with respect to FY 2020-21. The increase in overall indirect energy intensity is due to the change in
scope of work of Heavy Civil Infrastructure business wherein their direct energy has decreased and indirect energy has increased.
LARSEN & TOUBRO
ENERGY
Statutory Financial
Reports
Statements
Integrated
Report
Management
Discussion and Analysis
Corporate
Overview
FY 2021
We are progressively ramping up the share of renewable energy in our total energy consumption. Across our businesses, all
departments have Bureau of Energy Efficiency (BEE) certified energy managers and auditors. The primary objective of this team is
to enable us to manage and optimise energy use at our manufacturing facilities. Energy audits on ISO 50001 are also conducted at
regular intervals.
139
140
Cumulative energy conserved
2,543
Change in personal behaviour and auto shutting of lights when not in use
28,039
Change to CFL and LED lamps
21,888
Conversion and retrofitting of equipment
4,179
13,908
(GJ/year)
Optimisation and operational control efficiency
Process re-design
Energy conservation interventions
FY 2020-21. Since FY 2007-08, we have
cumulatively saved energy equivalent
to 149 Mn units, thereby avoiding
46,539 tCO2e in FY 2021-22 through
energy conservation interventions and
renewable energy.
At L&T, our core objective is to achieve
a significant increase in energy
conservation measures every year. The
energy conservation measures have
increased by 96% compared to
ENERGY CONSERVATION
Integrated Annual Report 2021-22
(GJ)
4,183
615,035 tCO₂e
425,406
605
770,622
2,001,310
1,637,695
2,174,162
FY 2022
FY 2021
FY 2020
980,433 1,369,437
Rainwater
River / Lake
Source
Water Withdrawal (kl/year)5
Water Intensity5
(kl/Bn Revenue)
We are continuously stepping up our water conservation
initiatives as part of our overall commitment to sustainability.
The construction business is a water-intensive sector, but
we have been successful in reducing water consumption
significantly. We are devoting resources to making our
campuses green and one of the important components is
recycling and reuse of wastewater. We are also working
towards reducing water consumption and increasing water
recycling at project sites and manufacturing facilities. Our
groundwater withdrawal has been reduced by 11% since
FY 2019-20. Water recycled is used for gardening and
flushing. We undertake various measures to construct
rainwater harvesting structures both at our premises and in
areas where our projects are functional
WATER
Integrated Annual Report 2021-22
Municipal
56,672
56,575
82,364
Direct GHG emission intensity-Scope 13
(tCO2e/Bn Revenue)
10.32
FY 2020
9,454
FY 2022
FY 2021
FY 2020
11,237
10,852
(Mn kl/year)
Total Water Consumption
2,897,996
3,235,055
4,722,684
10,811,822
Total
Others
Groundwater 3,087,682 4,087,726 3,251,265
142
141
9,997,484 9,602,372
4. Excludes data from Minerals & Metals, Transportation Infrastructure, Buildings & Factories, Smart World & Communication, Heavy Civil Infrastructure,
Realty businesses and our offices
We monitor air emissions at our campuses and project sites and ensure that our emissions stay within permissible limits. Our
principal sources of air emission are process stacks at a few campuses and diesel generator sets. We have been consistently striving
to reduce emissions from different sources. The table below shows our performance over the last three years.
275
FY 2022
FY 2021
FY 2020
245
255
(tCO2e/Bn Revenue)
Indirect GHG emission intensity-Scope 23
4,976,909 tCO₂e
618
AIR EMISSIONS
FY 2022
FY 2021
FY 2020
0.65
619
FY 2021
SOX, NOX, PM & ODS emissions (in tonnes)4
274,028 tCO₂e
SOX
0.22
3. Intensity data for FY 2020-21 and FY 2019-20 has been revised. Total revenue has been considered for Intensity calculation; earlier, customer revenue
was considered.
0.93
2.62
1.01
8.31
0.11
FY 2022
9.46
12.45
NOX
17.78
1.56
FY 2020
ODS
8.38
PM
•
First-of-its-kind training centre
for rail construction in
the country.
A section of the Mauritius Metro Project
Solutions for all kinds of Transportation Infrastructure
- roads, bridges, elevated corridors, runways, high
speed rail, railway lines, dedicated freight corridors,
mass transit systems (Metro/Light Rail Transit/
Monorail).
151
Integrated Annual Report 2021-22
• Well-equipped engineering
centres which offer end-to-end
design capabilities including
consultancy and construction
engineering for all our
offerings.
HEAVY CIVIL INFRASTRUCTURE
Setting us apart
OFFERINGS
• Pioneers in introducing mechanised construction
techniques for faster execution with quality and safety.
Statements
Transit Projects.
Engineering and construction company in India offering
Design-to-Build or EPC solutions with single point
responsibility for Integrated Railway and Mass
•
Setting us apart
TRANSPORTATION INFRASTRUCTURE
49-4-4-4-4=1+3=1EE
LARSEN & TOUBRO
Integrated Statutory Financial
Discussion and Analysis Report
Reports
Management
Corporate
Overview
TOWER BAS
•
==
Expertise to design and build a full spectrum of highways,
bridges and elevated corridors including complex
interchanges, both in India and abroad.
•
Discussion and Analysis
covering civil, structural, mechanical, and electrical works
with international safety and quality standards.
• One of the world's most renowned Tower Testing and
Research stations.
Design and Engineering, Procurement and Construction
(EPC) of projects ranging from airports, hospitals,
stadiums, retail spaces, educational institutions, IT
parks, office buildings, data centres, high-rise structures,
mass housing complexes, cement plants, industrial
warehouses, test tracks and other factory structures.
a capacity of more than 1.5 lakh tonnes of tower
components per annum.
Digitally driven, green tower manufacturing units with
Providing integrated solutions with in-house design, global
sourcing and digitally enabled delivery excellence.
•
•
Setting us apart
POWER TRANSMISSION & DISTRIBUTION
Statements
Reports
Report
LARSEN & TOUBRO
Financial
Statutory
Integrated
Management
Corporate
Overview
Metros, Nuclear plants, Hydel projects, Marine
structures, Tunnels, Defence infrastructure and High-
Speed Rail projects
OFFERINGS
152
The Mumbai Trans Harbour Link
Temporary Works Competency
Centre (TWCC) to manage
enabling structures assuring
effective utilization and
asset management.
• Global supply chain management cell to undertake
competitive sourcing of materials.
• Owner and operator of one of the largest fleets of
critical machinery e.g. TBM, heavy lift cranes, shotcrete
machines, etc.
• End-to-End design and engineering capabilities for all
offerings including feasibility, detailed project report, seismic
qualification, geotech engineering, blast resistance, etc.
Expertise to build underground structures with various
tunnelling technologies e.g., New Austrian Tunneling
Method (NATM), Tunnel Boring Machine (TBM) and
erecting super structures using innovative methods e.g.,
incremental launching and full span 'U' girders.
Capability to execute complex infrastructure projects
OFFERINGS
SE-4 SE-5
150
13
12
MM
1
SDGS IMPACTED
SE-2 SE-3
SE-1
SO-I SO-III SO-V
STRATEGIES IMPACTED
GREEN BUSINESS REVENUE
*388.43 Bn
FACTORY OUTPUT
321,697 MT
MANUFACTURING LOCATIONS
18
710
KEY HIGHLIGHTS OF FY 2021-22
LARSEN & TOUBRO
LOGISTIC
04
Statements
Reports
Report
Discussion and Analysis
Statutory Financial
Integrated
• In-house Battery Energy Storage System containerisation
facility to offer large-scale renewable integration solutions.
TACT
KEY MATERIAL ISSUES IMPACTED
- Customer Experience and Satisfaction
- Corporate Governance
Prestige Song of the South at Begur, Bangalore
讀
• Forerunner in offering modular and mechanised
processes for advanced construction technologies such as
Prefabricated Prefinished Volumetric Construction, Offsite
Manufacturing, Structural Steel Construction, and 3D
printing to fast-track projects.
Capability to offer integrated design and build solutions for
light manufacturing plants and factories.
including specialised medical systems and equipment.
Plug-and-play capability to design-and-build world-class IT
infrastructure and data centres.
.
.
• End-to-End EPC capability in multispecialty hospitals
and international airports apart from many other landmark
structures have been built by L&T.
Track record of building tall, large, complex, and iconic
structures across India and overseas. The Statue of Unity
-the world's tallest statue, Shri Narendra Modi Cricket
Stadium, Motera - the world's largest cricket stadium, the
Ahmad bin Ali Stadium in Al Rayyan, Qatar, 11 national
• Turnkey solutions from 'concept-to-commissioning' across
the entire spectrum of urban infrastructure, with in-house
design expertise using advanced systems like Building
Information Modelling (BIM) 4D, 5D and BIM 360 field and
project management expertise.
•
•
HEEL EI EL EL EL EL EFELEL
DRDE-1=========
Elcl=t=1=1=1=3=1=1=1=1=1==
Setting us apart
Integrated Annual Report 2021-22
149
- Social Engagement and Impact
- Water, Waste & Hazardous Materials Management
- Brand Management
- Quality of Products and Project Delivery
- Data Security, Privacy, and Cyber Security
- Climate Action
- Talent Management-Attraction, Retention
and Development
- Sustainable Supply Chain
- Skilled Manpower
- Human Rights and Labour Conditions
- Business Ethics
BUILDINGS & FACTORIES
.
Setting us apart
• India's first 1200 kV and 765 kV Gas Insulated Substation.
Corporate
Overview
156
Propylene Oxide (PO) Reactors
Tactical and Assault Bridging Systems, Akash
Airforce Launchers, Medical Oxygen Plants Infantry
Combat Vehicle, Productive Welding Processes,
Army Bridging Systems, BrahMos Systems (Naval),
Naval Platforms
OFFERINGS
Hydrocracker and Clean Fuel Reactors, Renewable
Diesel Reactors, Fluid Catalytic Cracking (FCC)
Reactor and Regenerator Package, Coke Drums,
Ethylene and Propylene Oxide Reactors, VAM
Reactors, Molten Salt Bath Reactors, Ammonia and
Methanol Converters, Key Gasification Equipment,
Urea Stripper and Reactor, Carbamate Condenser,
Waste Heat Boiler Package, HP Heat Exchanger, Ti
and Exotic Material Heat Exchangers, Nuclear Power
Equipment - Steam Generators, End Shields, Spent
Fuel Canisters and Casks, Modification, Revamp and
Upgrade (MRU) and Critical Piping Spools
OFFERINGS
• Seamless integration of solutions through our IT business
Leveraging the digitalisation trends achieving higher degree
of welding automation, enhancing loT application through
deployment of smart devices on various machinery to
increase consistency of output, and reduction of cycle times
in a sustained manner.
.
• Offers specialised turnkey defence construction solutions
• Proven command and competence for more than
three decades
Management
DEFENCE ENGINEERING
adopting Industry 4.0 for
Engineered-To-Order (ETO)
critical equipment.
edge technology
complex with cutting
• World-class manufacturing
Technology-driven, quick turnaround solutions for Process
Plants offered by Modification, Revamp and Upgrade
(MRU) business
Providing engineered-to-order equipment, solutions and
critical piping to various industries
•
Setting us apart
HEAVY ENGINEERING
Integrated Annual Report 2021-22
155
400 MW Bibiyana-III Combined Cycle Power Plant, Bangladesh
Ammonia-Urea Plant for HURL at Sindri, India
Turnkey solutions for coal-based and gas-based
power plants, ultra-supercritical and supercritical
boilers, ultra-supercritical and supercritical turbines,
Generators, power block auxiliaries, heat recovery
steam generators, other critical system, Enviro
solutions - FGD, electrostatic precipitators (ESP) and
selective catalytic reduction (SCR) total plant design
and engineering, construction
Management
Integrated Statutory
Discussion and Analysis Report
Reports
Financial
Statements
158
999
For the business to progress, it
is imperative to continue the
innovation journey to stay relevant.
L&T's innovation efforts are backed
by advanced technology, helping
it deliver projects which set new
benchmarks within their space. With
a continuous focus on innovation,
design and development, the future is
taking shape in L&T's Technology and
Innovation centres across India. These
breakthroughs are deployed across all
businesses of L&T, ensuring added value
to our customers.
CAPITAL
INTELLECTUAL
0
Integrated Annual Report 2021-22
157
GVMC City Operations Center
Elixir Reserve, Mumbai
Stations, Radio Communication & Software Defined
Radios, High Capacity Radio Relays & Helo Deck
Communication Systems
Tactical Communication Systems, SatCom Ground
Safe & Smart Cities across India, Fusion: Indigenous
Command Control Centre for City Operations,
End to End IOT Implementation and Analytics,
Smart Utilities: Advanced Metering Solutions for
Utilities & Pioneering Pre Paid Electricity, Defence
Communication, Data Center and Network
Operations Services, Cyber Security for Operational
Assets & Security Operation Centre, Telecom
Services including 5G, Network Connectivity,
OFFERINGS
OFFERINGS
• Multiple Data Centres & Cyber Security solutions, Mega
Communications Projects connecting 30,000+ Gram
Panchayats, 5 Metro Telecommunication projects and next
gen connectivity for Indian Armed forces.
Implemented 27 Safe and Smart Cities with Integrated
Command Control Centre (ICCCS), 2mn+ Smart Utility end
points by leveraging its expertise in IOT platforms, OT Data
Analytics & AI/ML.
• Focussed on solutions to make world smart and safe,
providing secured robust state of the art digital infrastructure
with latest of communication technology, connecting
millions of operational assets.
Setting us apart
COMMUNICATION
SMART WORLD &
Real estate development offering mixed-use
integrated developments, residential complexes,
commercial and retail spaces
OFFERINGS
• India's first Transit Oriented Development (TOD), Seawoods
Grand Central, offering a unique combination of
commercial and retail business.
• Total portfolio of ~ 60 mn sq. ft. across residential,
commercial, and retail segments in Mumbai, Bengaluru,
NCR, and Chennai.
Setting us apart
REALTY
LARSEN & TOUBRO
• L&T's Smart World & Communication business has
developed it's own Platforms - Fusion-IOT, NOC and SOC
to provide customised and scalable solutions to clients and
have also developed expertise on several industry platforms.
• Created a unique ecosystem of technology partners across
the world to be able to stitch problem-specific solutions.
Expertise in executing solar projects, micro-grid
electrification projects.
Full spectrum engineering services (including FEED),
EPCIC, turnkey construction, fabrication and asset
management services for oil and gas extraction
and processing, petroleum refining, chemicals
and petrochemicals, fertilisers projects; cross-
country pipeline and terminals (including for LNG
regasification) as well as offshore wind farm projects
Major player in new emission-control technologies such as
Flue Gas Desulphurisation (FGD).
• Iron and Steel Making
• Mineral Beneficiation
Leading EPC solutions provider in the fields of
minerals, metals and finishing for large industrial,
steel, aluminium, copper, zinc and gold complexes,
associated facilities, and the mining industry. The
business offers integrated solutions for a wide range
of systems and equipment for cement, mining
and steel sectors, powered by in-house design,
engineering, manufacturing, construction, and
commissioning capabilities. Key offerings:
OFFERINGS
• Dominant player in the country in EPC of
metallurgical projects
• Provider of one-stop solutions in ferrous and non-
ferrous sectors
Setting us apart
MINERALS & METALS
Urban and Rural Water Supply, Industrial Water
Supply, Water Treatment Plants, Sewage Treatment
Plants, Effluent Treatment Plants, Wastewater
Collection Network, Desalination, Micro and Lift
Irrigation Projects, Water Management, Smart
Water Infrastructure, Plant Water Systems 24x7
Pressurised Water Supply, Non-Revenue Water (NRW)/
Unaccounted For Water (UFW)
OFFERINGS
One-stop solution provider for digital and innovative
technology driven solutions in water and wastewater
management e.g., hydraulic modelling, leakage
management, GIS asset mapping, billing and master data
management etc.
execution methods e.g., horizontal directional drilling and
micro-tunnelling for faster project execution.
Developing and adopting sustainable and innovative
•
•
• Proven track record of offering total solutions spanning
the entire spectrum of the value chain - right from tapping
water through intake structures to tertiary treatment and
safe disposal of the treated effluent through marine pipe.
Array of process technologies for water treatment covering
conventional treatment and advanced treatment like
ozonisation and granular activated carbon.
•
Setting us apart
WATER & EFFLUENT TREATMENT
Integrated Annual Report 2021-22
153
Design, manufacture, supply, installation and
commissioning of transmission lines, substations,
underground cable networks, distribution
networks, power quality improvement projects,
infrastructure electrification, backbone for fibre optic
infrastructure, solar PV plants including floating
solar, battery energy storage systems, mini/micro grid
projects and related digital solutions
OFFERINGS
Toshka 2 - Wadi Halfa 220 kV double circuit overhead transmission line, Egypt
Strong reputation and significant market share in the
India subcontinent.
.
• Aluminium, Zinc, Copper, Gold Smelters and Refiners
Speciality Conveyors
.
Equipment for Mining, Cement, Material Handling
318 MLD Coronation Pillar Sewage Treatment Plant, Delhi
Competency in executing large and complex projects
within and outside India.
UK, Chiyoda Corp - Japan, John Cockerill - Belgium.
Mitsubishi Power- Japan, Sargent & Lundy - USA, Howden
•Technology collaborations with global leaders like
•
• In-house engineering, state-of-the-art integrated
manufacturing facilities.
Setting us apart
POWER
Facilities at Hazira (India's west coast),
Kattupalli (India's east coast) and Sohar
(Oman), and an integrated manufacturing
facility at Jubail in Saudi Arabia
weather waterfront Modular Fabrication
Strategically located state-of-the-art, all-
Project management resources with experience in
executing large and complex projects.
installation capabilities.
OFFERINGS
•
• Onshore construction and offshore
• In-house engineering centres offering 'Fit to Purpose'
engineering solutions with a focus on technology.
• Integrated design-to-build capabilities
• Industry leading HSE performance
Setting us apart
HYDROCARBON
LARSEN & TOUBRO
Integrated Statutory Financial
Report
Reports
Statements
Discussion and Analysis
Management
Corporate
Overview
154
Laminar Cooling System for Rourkela Steel Plant
•
Corporate
Overview
TOTAL PROJECT SITES
• 3D PDF for design information: Area-wise cabling
information shifted from 2D based AutoCAD files to 3D
embedded PDF files which facilitates viewing the cable
routing with its complete inventory in a 3D environment
from a desktop computer instead of a high-end workstation.
• Artificial Intelligence-Machine Learning: Database of
pipe spools created using content extraction from queries
of projects executed previously through natural language
processing and text analysis. This enables a project planner
to visualise the entire pipe spool lifecycle in a timeline sheet
with all the queries and inspection data and assists the
execution team to predict the cycle time for future projects.
i-Survey: End-to-end point of presence survey
management solution with mobile app capturing survey
data, latitude & longitude, photographs and online
approval system leading to improved productivity and
performance in SCM.
i-Attend: Mobile-Based attendance punching and
monitoring solution for Linear Projects with scattered
project locations.
SmartPro-Planning: Customised and smart project
monitoring tool providing integrated view of project
progress status (Financial and Physical Progress) with
dashboard and reports in terms of scope vs progress
on design, procurement (po + delivery), installation,
integration, commissioning and go live.
• SmartPM Solution: End-to-end Smart Meter Project
Management Solution with mobile App & QR Code
Scanner for Consumer Indexing, Smart Meter installation.
1,000+
cases registered via emergency call box; emergency calls
response time- 10 seconds and resolution time - 10
minutes for incidents recorded (accidents, police and
medical emergencies)
187,410 citizens
using free monthly Wi-Fi facility
Case study
Ease of living of citizens through Pune
Smart Elements project
Brief description
• Flagship technology infrastructure and a pan-city project
consisting of Integrated Command and Control Centre
(ICCC) along with 732 smart elements across Pune.
• Enables the city administration and its stakeholders to make
informed decisions with real-time data and deliver effective
governance.
• Institutionalise data driven decision making across levels of city
functionaries for regular operations and during crises.
Enhancing collaboration across multiple departments
within and outside urban local and government bodies.
• ICCC provide insights using data for civic officials across
urban functions through the deployment of sensors across
the city.
• Smart elements installed across Pune: City Wi-Fi, Emergency
Call Box, Public Address System, Environmental sensors,
Flood Sensors, COVID Management through ICCC
Impact
• Total Data consumed: 19.81 TB per month
Critical Zones with average AQI > 200 observed and
reported with Environment Monitoring Sensors deployed in
50 locations
• 100+ Incidents recorded using flood sensors deployed at
50 locations
• PA system - audio message related to COVID-19
broadcasted live every 30 minutes using PA systems
between 7 am to 10 pm daily
Moradabad Command Control Centre
167
Integrated Annual Report 2021-22
•
899 HUMAN
CAPITAL
•
SMART WORLD &
•
Factory IOT: Monitoring of OEE (overall equipment
effectiveness) at transmission line tower plants through
IoT data.
• Fibertrack: Application for tracking and monitoring of
patrollers and Operation & Maintenance of around 16,300
km of fibre network.
• Al For contracts and engineering: Contract
comprehension includes key clause identification, risk
quantification, document, and datasheet extraction.
WATER & EFFLUENT TREATMENT
• SPRINT: Geospatial solution that helps project teams to
visualize and track pipe laying activity, including theft
identification and material reconciliation.
• PLM CAD Integration: Integration of PLM platform
with native CAD software improves the efficiency in D&E
functions and brings better change management.
• Armoury: Provides the interface to search surplus material
lying in closed projects with different attributes such as
make, size, grade, vendor, etc thus improving the possibility
of alternate use of inventory.
• Smart Quality Management System: ERP based Smart
Quality Management System assists in integrated way of
planning in design, material, production and quality functions.
• RPA Load Balancer: In house developed BOT-based
load balancing system to distribute RPA tasks to various
virtual machines.
REALTY
• MY LTR App for Brokers: Enhanced dynamic interaction
with brokers for complete life cycle, resulting in reduction
in broker registration and payment TAT, improved
transparency with leads and bookings sourced, improved
collaboration for new project launches.
L&T Tech Park, Bengaluru
166
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Statements
LARSEN & TOUBRO
COMMUNICATION
• T-TRAX: RFID-based solution for tracking tower bundles
across factories and site locations to improve tower-wise
visibility, traceability, and lot completion.
Our human assets play a key role
in seamless driving of operations
in today's ever-evolving business
environment. They deliver
projects and business solutions
effectively on time, every time.
At L&T, we have always strived
to create an enabling work
environment that encourages
continuous learning, promotes
inclusivity and equality, while
ensuring a healthy and
168
Discussion and Analysis
Management
Corporate
Overview
164
3-D model of Farabi Petrochemicals at Yanbu, Saudi Arabia
Gas Production Modules fabricated at LTHE's Oman Facility for
Hasbah II
エ
review for Operation &
Management teams.
• Virtual Reality Immersive
Walkthrough: Virtual reality
immersive walkthrough
for engineering 3D
models offering efficient
constructability and
maintainability
applying advanced analytics at
the enterprise level.
System): Decision support system for effective project
management and control,
• EPSILON (Integrated Project Management
• mCode (Unified Material codification): Unified
material codification system for parametric comparisons,
benchmarking, data mining and analytics of various
material categories to drive procurement cost optimisation.
• Drishti (Enterprise Level KMS): Enterprise level knowledge
management system to provide situational guidance and
capture, store, and extract the information required for
efficient knowledge transfer across the organisation.
HYDROCARBON
Integrated Annual Report 2021-22
163
48 MLD Water Treatment Plant, Gadag, Karanataka
400 kV Ibri Izki Transmission Line, Oman
• eALPS: Centralised web-based portal for quality vendor
inspection call management system for vendors to raise
inspection call requests along with its documents.
Super Procure: Application to raise logistics' requests
from project sites. The system enables float bids
among 67 registered transporters and helps to prepare
comparison statements online while expediting release
orders to L1 vendors.
• IMPACT: Comprehensive item-wise material and progress
management tool applicable across structural fabrication,
piping and equipment. Material management is controlled
through GPS enabled QR codes at different stages of
fabrication, storage and erection.
• Wrench: Centralized platform across EPC with automated
live S-Curves and progress dashboards that also enables
document management, and communication control across
all stakeholders.
MINERALS & METALS
Integrated
Report
safe workplace.
Statutory Financial
Statements
999999
• GST Auto-reconciliation: RPA BOT along with ERP
customisation provides automated GST reconciliation
capability to avoid IDT losses.
• Monitoring Execution: Work Allocation System enabling
QC engineer to track First Person Responsible (FPR, viz
fitter, welder and electrician) while undertaking inspection
and develop person-wise First Time Right (FTR) data.
• IoT of Welding Robots with Digital Report book:
Planned / unplanned downtime and calculating OEE (Over
Equipment Efficiency) with the help of an IoT data logger
for descriptive analysis.
DEFENCE ENGINEERING
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165
Heavy Engineering's digital initiatives
225 MW Sikalbaha Combined Cycle Power Plant, Bangladesh
• PDM (Predictive maintenance) application module:
Implemented for first time by the business on TITAN DHD
(deep hole drilling) machine, this application delivers
capabilities like early failure reduction, reduced spares
consumption and improved OEE (Over Equipment Efficiency).
• Additive manufacturing: The business has leveraged 3D
printing technology to make prototypes for development
projects, thereby significantly reducing development cost
Complex, leveraging wireless technology as part of the
Autonomous Welding Project.
• One-man multiple stations:
One man operating multiple
smart welding stations has
been successfully implemented
at AMN Heavy Engineering
ENGINEERING
HEAVY
• Price benchmarking: Smarter supply chain system using
ML based parametric price discovery model for commodity
items like cables, cable trays, valves, and pipes.
using Al: Auto Al-enabled radiograph
interpretation in the weld joints.
• Digital Radiographs Inspection
Application to help select the optimal
metal deck profile
•
• Metal Deck Profile Selection:
POWER
LARSEN & TOUBRO
• Digital Twin: Laser scanning and digitalisation concepts
extended to create digital twin models of the platform where
onboard inventory is being scanned for generating 3D models
and integrating them in the composite model. This helps to
Reports
• Prapti Bodhi: Scientific planning for businesses based on
historical data, volume, productivity and sequencing done
by the system, based on the project variables. Predicting
schedule variances based on progress and trade off analysis
for course corrections.
• LTR Konnect: Centralised HR portal for smooth interaction
with employees. The portal provides learning and training
opportunities in digitisation, analytics, data driven decision
making and process excellence.
an optimiser engine for migrating structural logic from
spreadsheets to backend services.
- Corporate Governance
- Business Ethics
- Talent Management-Attraction, Retention &
Development
- Data Security, Privacy, and Cyber Security
- Quality of Products and Project Delivery
- Brand Management
1 Includes our core R&D engineers
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Integrated Annual Report 2021-22
RESEARCH AND DEVELOPMENT
PROJECTS
• Time Lapse Camera: Capturing timestamped photos for
documentation, visualisation, and monitoring purposes.
Due to growing investments in the infrastructure sector,
the demand for various construction materials like cement,
steel, aggregates and others is increasing exponentially.
To conserve natural resources like aggregates, research is
being conducted on the development of artificial coarse
aggregates, using industrial by-products such as fly ash and
GGBFS (Ground Granulated Blast Furnace Slag) with suitable
chemical activators to form a solid rock mass. This research
has been taken up at L&T's Construction Research and
Testing Centre. Initial results are encouraging and further
research is in progress to improve durability and other
qualities. This green and sustainable product has a wide
scope for usage across the construction value stream and
will help enable significant energy savings.
2. Shredded waste plastic modified
asphalt mixes for eco-friendly
and durable pavements
Disposal of used plastics has been
a major cause of concern for many
developed and emerging nations.
Plastics are usually non-biodegradable and burning of
waste plastic emits harmful gases like sulphur dioxide.
Utilisation of used waste plastic as a modifier in asphalt
roads is an emerging technology to mitigate environmental
hazards. Plastic-modified asphalt mixes can be produced
by two methods - dry process, and wet process. L&T's
Construction Research and Testing Centre had taken up
a detailed study to evaluate the effect of shredded waste
plastic on the mechanical properties of mixes prepared by
the dry mixing process. The study revealed that the addition
of shredded waste plastic has the potential to reduce the
optimum binder content of the bituminous mixes. A 500m
trial stretch was constructed with shredded waste plastic
modified bituminous mix at the Kancheepuram campus in
2021. Preliminary investigations showed that the modified
mix performed better than the conventional mix, especially
during the monsoons, and further studies are planned to
help push the usage of this mix in future road projects.
R&D Centre for Mumbai-Ahmedabad High Speed Rail Project
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Digital Initiatives
LARSEN & TOUBRO
There are 50+ digital solutions that are in production and widely used by thousands of L&T's operating staff at hundreds of project
sites. Over 11,000 construction equipment are connected, providing real-time visibility into operations of these machines at remote
project sites. This visibility enables improvement in productivity and utilisation of these machines, better maintenance and uptime,
and better fuel efficiency leading to faster work completion and cost savings.
KEY MATERIAL ISSUES IMPACTED
15 L
SDGS IMPACTED
SE-2 SE-5
Corporate
Overview
Management
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Statutory Financial
Discussion and Analysis
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LARSEN & TOUBRO
KEY HIGHLIGHTS OF FY 2021-22
29
The initiatives highlighted in the subsequent section
have been started in FY 2021-22.
TOTAL PATENTS OWNED
TOTAL R&D SPENT
56
AWARDS WON FOR INNOVATION
37
NEW PRODUCTS AND SERVICES DEVELOPED
THROUGH R&D
187
R&D¹ DESIGN ENGINEERS
STRATEGIES IMPACTED
SO-I SO-III SO-IV SO-V
SE-1
proactively identify interferences through dynamic motion
analysis of ship-in route and generate digital templates of pipe
spools thereby avoiding physical templating.
*837 Mn
Digital Initiatives across our businesses:
1. Artificial Aggregate - An alternative to natural
stone aggregates
• Smart Cameras and Image analytics: Cloud-based
smart cameras help to monitor project site from a
single dashboard. Smart cameras provide live feeds
which are interpreted by Al Models to detect Safety and
non-compliance of COVID appropriate behaviour,
e.g Vision+
•
Enabling Structures Tracking Application (ETAP):
Digital application to track utilisation of all Enabling
Structures across project sites by using QR codes. This has
helped to increase the reusability of fabricated items and
improve tracking of the same.
• RebarPro: Application that provides end-to-end tracking
of rebar (full length, offcuts, scrap) from store-to-site. This
enables faster MIS dashboards creation, waste minimisation
and productivity improvement.
L&T Construction
Konkan Railway
Mumbai - Ahmedabad High-Speed Rail Project
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• Smart Glass and Help Lightning: AR-Enabled Remote
Assistance Software, including video collaboration
services, that enables experts to work virtually side-by-
side with anyone needing help, anywhere in the world.
Discussion and Analysis
Report
Reports
Statutory Financial
Statements
LARSEN & TOUBRO
POWER TRANSMISSION &
DISTRIBUTION
Exposure Declaration: Digitalised system to track
commodity and currency exposure.
• Pronto: Centralised digital system that takes care of site
invoicing activities by enabling resource optimisation and
prompt delivery of services.
•
Engineering Optimisation & Calculation Automation
Web-based solution using Python Programming with
• ConPro: Application for end-to-end tracking of concrete
supply chain. It enables auto dispatching of orders from
batching plants and live tracking of transit mixers.
• Pre-Cast Segment Management System (PCSMS):
Application for tracking the status of viaduct segments
using bar codes. It enables real-time tracking of
production and better traceability of finished segments at
the stacking yard.
Overview
• 3D Volumetric Measurements: Bulk material like
aggregate stocks are measured digitally using drone-
based scanning and volumetric analysis, enabling easy
reconciliation and material planning.
HEAVY CIVIL INFRASTRUCTURE
• Workforce Induction and Skills Application (WISA):
End-to-end digital solution for all workmen related
functions encompassing worker profiles, wage modules,
experience records, trade validation, certifications and
accreditations, skill database, health profile, safety
training module, attendance management and workmen
camp management.
• PROCUBE (Project, Progress & Productivity): Tool to
monitor multiple aspects of a project. It captures the
real time day-to-day progress while helping to gauge
workmen's productivity levels, analysing the project and
speeding up progress.
•
TORQ (Tying, Operation, Revenue, Quality): Quality
control tool developed to raise NC Observation, RFI
inspection, Quality Audit and Laboratory Management.
It helps to monitor and ensure maintenance of quality
standards across the lifecycle of the project.
• SHEILD - EHS Platform (Safety Health Environment
for Industrial Landscape through Digital): Platform
to evaluate a project's EHS status, manage EHS processes
from inspection checklists to approvals, observations and
audits, PTP, DWP, shut down operation and managing
safety observations with checklists, and workflows to
ensure planning, communication and action.
• Digital Stores: Solution to handle material from issue to
consumption with proper reconciliation across the project
sites. All material transactions are digitally captured
using a mobile application, supported by layers of
authentication and workflow.
• VR Training for Safety: Immersive Safety training
modules for workmen and staff using virtual reality.
• Connected Asset: Remote monitoring of P&M
equipment for utilisation and conditional monitoring.
• POMS (Post Order Management System):
Collaborative supply-chain accelerator used for enhancing
visibility and tracking of critical vendor milestones from
PO to delivery at sites.
.
• Surveys using advanced technologies: Advanced
technologies e.g LIDAR, drones, 3D layer scanning,
Ground Penetrating Radar etc., are used to conduct
surveys to provide accurate project information, enabling
efficient design and mitigating risks at an earlier stage.
• Conquer – Quality Inspection Application: Web
and mobile-based application to conduct quality
inspection prior to final commissioning. It generates
quality observations, pour cards, quality walkdown, and
customer and executive feedback.
and Resource Upskilling through Competency assessment
(RUCA), working in tandem to drive staff skill profiling,
competency assessment, resource allocation and skill
enhancement capabilities.
• Automation of manual processes: Digital technologies
e.g. Robotic Process Automation (RPA), Machine Learning
etc., have been used to design solutions to automate
manual processes and improve productivity.
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BUILDINGS &
FACTORIES
• HR Skill Inventory System:
Man-management solutions like
mySkill, Resource Assessment
Management & Planning (RAMP),
• Machine Control: 3D GNSS based Machine Control
System deployed for Motor Graders and Excavators,
enabling the equipment to run on auto mode for level
control, with the operator only driving the equipment,
thereby improving the productivity and safety at workplace.
• FORM FIT: A solution to track formwork panel utilisation
and productivity.
Transportation Infrastructure
• eMtrack (Material Tracking): Digital solution that
facilitates material return and material transfer between
stores, and aids in the reconciliation of materials issued to
various subcontractors in one line and being consumed
against activities.
Non-unionised workforce number
(age-wise and gender-wise)
Share of women in
senior management
Integrated Annual Report 2021-22
New Joinees (age-wise and gender-wise)
Data as at March 31, 2022
173
27.46% of personnel with
L&T INSTITUTE OF
IPM
10+ years in L&T
Institute of Project Management, Vadodara
Data as at March 31, 2022
PROJECT MANAGEMENT
Gender
1,540
Total
Gender
AGE
Total
<30yrs 30-50yrs
>50yrs
<30yrs
30-50yrs
>50yrs
Female
1,549
Male
3.16%
AGE
To further enhance inclusion of diverse workgroups, we have
launched a special initiative WINSPIRE. In the first year, the
focus was to induct, engage and develop more women.
24% of Graduate and Post Graduate Engineer trainees hired
in 2021 are women. Various interview sessions and panel
discussions were organised to engage the women workforce.
Leadership Development Programmes for Women Employees
'WINSPIRE RISE' and 'WINSPIRE PROPEL' were launched,
covering 110 participants across L&T. This will help to build a
steady pipeline of women leaders going forward.
29,356
L&T continues to be an organisation where diverse
workgroups come together to contribute towards creating
a better world. The multi-generational and multi-cultural
workforce works in harmony to achieve the organisation's
results. The Company has employees from 46 nationalities,
including Indians and more than 80 languages are spoken
across project sites and offices. Within India, L&T has
employees from 28 states and 8 UTS.
- Skilled Manpower
- Talent Management-Attraction, Retention and
Development
- Diversity, Inclusion and Equal Opportunity
- Brand Management
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LEARNING & DEVELOPMENT
Corporate Learning & Development (L&D)
L&T is an 80+ years old Indian multinational conglomerate.
It carries a workforce that is multi-generational, drawn from
diverse ethnic and cultural backgrounds, and brings with it a
rich mix of educational and professional experience.
Continuous learning is one of the highly treasured values
of L&T. This gets addressed through a well laid out L&D
Strategy. Building a leadership pipeline to enable growth and
business continuity is one of the strategic enablers of the
Company. This includes attracting and retaining top talent,
but more importantly, it emphasises L&T's deep-seated culture
of 'home-grown' talent. Over the years, L&T has prospered
manifold in terms of executing green-field, mega/complex
projects including Smart Cities, Mumbai Trans Harbour
Link, Airports under the Government's UDAAN scheme,
the landmark construction of the Statue of Unity and the
most recent - India's first Mega Bullet Train Project valued
at 25,000 crore. This extraordinary feat requires a sound
foundation of well-honed internal talent.
L&T's L&D Strategy is centred on three pillars:
• Anchored to Dynamic Business Needs: L&D offerings
are strongly aligned to the needs of the business over three
major career archetypes - Business Leadership, Technical
Leadership, and Project Leadership:
Business
Leadership
Leadership Archetypes
- Human Rights and Labour Conditions
Technical
Leadership
• Leadership Commitment: From addressing the sessions,
conducting training, to spending one-on-one time for
mentoring, the leadership's commitment and investment
towards talent development is visible at multiple levels.
• Strong Learning Ecosystem – People, Processes,
Infrastructure: We have a well-established Learning &
Development Team, that focuses on Technical Training
(CTEA), Project Management (IPM), Leadership and
Behavioral Training, Centre of Excellence (COE) for Process
Improvement, Digital Learning (ATLNext), Leadership
Development Academy (LDA), etc.
Built on the foundation of these three pillars, the
L&D strategy has multiple facets like:
1. Grow Within - Focus on grooming and developing
talent internally.
2. Built to Last - Design deep-rooted interventions,
adaptable to changing needs, that can sustain over long
periods of time.
3. Best Practices + Next Practices - We position our
interventions on time-tested design principles. At the same
time the pedagogy we use, keeps pace with the latest
approaches in Project, Technical and Behavioural Education,
e.g., blended learning is a big part of our offerings in all
career archetypes.
4. Partnering for Growth - It is said "If you want to go
far, go together.". We operate with a very strong internal
and external network. Internally, we are well supported
by Business Leaders, HR Leaders, Business Talent Partners,
and many Subject Matter Experts (SMEs). Externally, we
collaborate with the best in the world, be it academic
institutes like INSEAD, Michigan Ross, IIMS, XLRI or faculty
members / consultantsconsultants such as Prof. Krishna
Palepu - the Ross Graham Walker Professor of Business
Administration at Harvard Business School, and Prof Das
Narayandas - the Edsel Bryant Ford Professor of Business
Administration at Harvard Business School.
5. Crafting Leadership Journeys - We encourage long-term
growth journeys for our employees. This ensures holistic
development guided by learning through training, peers,
and on-the-job conditioning, supplemented by structured
inputs through one-on-one coaching and strategic action
learning projects, e.g., Ascent (Competency Leadership
Development Program for Tier-3 employees)
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Projects
Leadership
15,341
- Business Ethics
- Corporate Governance
Corporate
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Discussion and Analysis
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Reports
Statements
LARSEN & TOUBRO
KEY HIGHLIGHTS OF FY 2021-22
52,155
TOTAL EMPLOYEE STRENGTH
37,966
ENGINEERS
33 YEARS
MEDIAN AGE OF EMPLOYEES
8.37
AVERAGE TRAINING HOURS PER EMPLOYEE
4.96 Mn
SAFETY TRAINING HOURS
STRATEGIES IMPACTED
SO-I SO-II SO-III SO-IV SO-V
SE-2
SE-4
SDGS IMPACTED
3
5
10
KEY MATERIAL ISSUES IMPACTED
Statutory Financial
Statements
LARSEN & TOUBRO
L&D Practices to meet Short & Medium-Term Needs
Classroom Training (In-Person or Virtual) for
Competency Development
Management Development Programmes Mentorship
Qualification/Accreditation/ Certification Programmes
Corporate Technology & Engineering Academy
(CTEA) Madh and Mysuru
CTEAs have state-of-the-art infrastructure and learner
friendly environments, with robust processes to design
and deliver technical, functional, and business specific
training programmes in a healthy and pollution-free
environment. In addition to excellent classroom facilities,
both the academies lay emphasis on providing hands-on
training to the participants through various labs / hands-on
areas, like manufacturing excellence lab, CAD & Safety lab,
Digitalisation lab, Prestress Technology, IoT, PLC, Robotics,
3D printing, GD&T, etc. CTEA provides Training &
Competency Building services to many L&T businesses
including Construction ICs, Defence Engineering,
Hydrocarbon, Power, Heavy Engineering, L&T Technology
Services, Nabha Power, MHI, L&T Infotech, Valves & Process
etc.
Employee development at these academies is
focused on various levels:
• Level 1 includes young recruits such as GETS, DETs and
FLS (Frontline Supervisors). It focuses on skill enrichment
of freshers, wherein technical orientation and hands-on
experience are offered to Graduate Engineers Trainees
(GETS) from various L&T businesses to make them
industry ready. As a part of their orientation, CTEA
organized online sessions with a blended approach
for latest batch of GETS. Some of the key highlights
include virtual labs, mini projects, videos and effective
presentations. Another focus area in Level 1 is the
transformation journey of fresh Industrial Training
Institute (ITIS) to be converted into responsible FLS.
CTEA also design and deliver domain-specific survey and
quality modules and impart technical and functional
modules, to meet the current business needs.
• Level 2 training is aimed at Competency Development
needed by employees to hone their knowledge and skills at
their workplaces. CTEA conducted 162 virtual programmes,
covering 12,540 working professionals, which include
niche programmes like Behaviour Based Quality, Advanced
Hydraulics, 5G Architecture, DMEA & Certification
programmes on topics like Riggers, Scaffolding, Stores
Management, etc.
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CTEA has also customised some key programmes to
meet changing business requirements, these include the
Vendor Development Initiative, which involves formation of
taskforces comprising CTEA and Project Heads across ICs to
identify Entrepreneurial functions required for construction
works, so that vendors can start and build their own
successful business. A one-of-its-kind, six-day programme
was designed and executed at Mumbai and Delhi, covering
40 sub-contractors.
CTEA also organises several technical professional
engagements and motivational annual events like the CAD
Fest, Technology Conclave, Virtual Technical Summit, and
Technology Day Celebrations. An innovative engagement
activity named 'Learner Premier League' was organised to
motivate L&T-ites to hone their existing skills or acquire new
skills the IPL WAY.' It was a two-month online engagement
activity as part of the calendar programme to enhance learner
experience, which helped leverage group activity across multi-
disciplinary teams, increased engagement with the learners
during the COVID-19 period and brought a fun element by
breaking the monotony.
CTEA also organised a virtual event 'Engineering Through
my window' on Engineers Day, to recognise innovations
in engineering across the organisation. The event provided
a platform to nurture and encourage innovators, where
engineers had to pen-down their ideas to resolve any
challenge at work.
Digitalisation & Process: AR-based mobile application on
Wall & Column System module - an immersive self-paced
learning mobile application for detailed visualisation of the
concept created with completely gamified outputs on mobiles
to create an enriching interactive experience.
Any Time Learning (ATL): L&T has established a scalable,
multi-featured and externally-integrated Digital Learning
Platform called ATLNext. It offers a gamut of online courses
including competency courses, behavioural courses, and
business-specific technical courses to meet the unique needs
of the learners.
In FY 2022, we have tied up with globally renowned
content providers such as Skillsoft and Coursera to provide
training content to employees, while continuing with many
existing content providers like Harvard Manage Mentor
(HMM) and EBSCO. We have also implemented a unique
AI/ML technology-based communication fitness coaching
programme to improve work-related communication skills
of target employee groups. All the offerings of ATLNext
culminated into 2.7 lakh hours of learning clocked by L&T
employees through digital learning.
LEADHU
L&T's Leadership Development Academy. Lonavala
172
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Overview
Management
Discussion and Analysis
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LARSEN & TOUBRO
Leadership Development Academy
Our Leadership Development Academy (LDA) is situated in
the tranquil environs of the popular hill station, Lonavala.
Established in 1997, it offers an appropriate ambience for
learning and development. It was born out of the vision to
fulfill the constant demand of L&T-ites for a holistic learning
centre that will help manage their training programmes
better. Even after 25 years, the Academy continues to be the
preferred training destination for the L&T group.
The residential academy is equipped with great infrastructure
to conduct various types of training programmes. It can
accommodate multiple levels of leadership programmes at
the same time. This campus is one of the few places in the
country that have been designed exclusively to meet our
growing demand and training. Green design with energy-
efficient outfits and water-efficient measures are some of the
important features of this world-class Academy. The IGBC
Platinum Certification and CII Award winning energy efficient
campus is a testimony of our conscious attempt towards
sustainability. We have also introduced ESG training at LDA
this year. LDA recognises that learning happens through
discussions/debates in classrooms, in the privacy of a library,
or in the relaxed atmosphere of a recreation room. This
integrated facility provides all these advantages to nurture
thought leaders and entrepreneurs of the future.
DIVERSITY & INCLUSION
Journey-Based Competency Development Programmes
Action Learning Projects
Ref: The short film Symphony https://www.youtube.com/
watch?v=Grb-4czOWZA
L&D Practices to meet Long-Term Plans
7-Step Leadership Pipeline Programmes
~20,000
Webinars
Experiential Learning - Hands-on Training, Simulations, AR/VR
Digital Learning - ATLNext (Technical & Behavioural Modules)
RapL (micro-learning platform)
Ascent - Competency Development Journey
CLIMB
Strategic
Imperatives
Live Online / In-person
PHASE-II
BASECAMP
Orientation
Preliminary Assessment
Participative Goal Setting
Journaling
Peer-learning
PHASE-I
PHASE - III
Engage
Act
Think
SUMMIT
Integrated Simulation
Future PoA
Learning Partners
GREAT LAKES
CHICAGO BOOTH
Executive Education
Apart from these established processes, there are additional
measures taken to ensure People Development Needs are
identified and addressed regularly. The following forums
viz. Talent Partners Meet, CoE Partners Meet, ATL Partners
Meet, HR Council, DC - i-LEAD keep the interaction on
People Development alive and updated. We also participate
in external industry forums for benchmarking, gaining
knowledge and networking. We get outside-in perspectives
on current and future talent development trends from
such forums.
198,975
Courses conducted in FY 2021-22
against 187,575 in FY 2020-21
4.36 lakh hours
of courses conducted in FY 2021-22
3,276 hours
of training on Human Rights provided
in FY 2021-22
L&T executives trained in Project
Management at L&T IPM
Simulations
- Employee and Workforce Engagement, Wellbeing,
Health & Safety
Our Goal
Our contractors and suppliers are evaluated on their
safety infrastructure and assessment through auditing at
our projects. A comprehensive understanding of safety
requirements is imparted to contract workers at our
construction sites through initial health and safety induction
training. This is followed with specific activity training on risks
with refresher sessions supported by skills enhancement-
building programmes.
The importance of workmen safety and wellbeing on all our
contracts is crucial to the culture of our 'Mission Zero Harm'
goal. At our manufacturing locations and project sites', safety
committees are constituted comprising senior management
representatives, as well as union members. These committees
facilitate specific safety objectives, in line with the Company's
'Mission Zero Harm' goal. In the collective bargaining
agreement, specific clauses related to health and safety are
incorporated as well. In addition, workers have a Safety
Ambassador at sites who helps them to raise safety issues
directly and in turn, the Ambassador communicates good
health and safety practices to workers.
Safety dashboard
Severity Rate
Frequency rate
Fatality
FY 2020
FY 2021
204.29
143.60
FY 2022
140.23
0.11
0.10
0.11
41
25
Top-Down and Bottom-Up approach for
Contractors and Suppliers
25
Mission Zero Harm is to ensure all L&T workplaces, offices
and premises are safe and without hazards. This commitment
extends to all our contractors and suppliers working on
our behalf at our project sites or premises. L&T's Corporate
EHS Policy defines the commitment to Health & Safety and
Mission Zero Harm through a structured Corporate EHS
framework supporting our EHS procedures and guidelines.
This section complements with BRSR
Principle 3 i.e. Businesses should
respect and promote the well-being
of all employees, including those in
their value chains
174
Leadership Development Programmes
310
participants
3,584
training man days
Corporate
Overview
Management
Integrated
Statutory
Discussion and Analysis
Report
Reports
Financial
Statements
LARSEN & TOUBRO
We have been undertaking numerous awareness sessions on
issues pertaining to Human rights across the Company; viz
part of employee induction, EHS training and so on. In FY
2022, we initiated specific Train the trainer programme on
Human Rights.
HEALTH & SAFETY
OSHA
Accredited Safety Management Systems
Regular auditing is conducted for our safety management
systems through accredited external and internal lead
auditors to maintain the standards for continued accreditation
of ISO 45001:2018. Internally accredited lead auditors
ensure that all operations maintain the standard, adopt,
and share best practices and innovation across our ICs.
Our EHS Council monitors and measures compliance with
corporate procedures. Major supply chain contractors and
subcontractors are audited before awarding any contracts
to ensure that safety standards are maintained throughout
the contract duration. In addition to this, the EHS Council
audits each IC on the implementation of procedures. L&T's
safety management systems across the business are also
supported by internally developed Safe Operating Procedures
(SOPs), which are fully endorsed by the L&T EHS Council.
It is important that every business, through their Safety
Management Systems (SMSs) sets targets and objectives to
achieve the Zero Harm goal. The business undertakes a risk-
based approach to all activities auditors, ensuring that the
standards are being maintained, and identification and sharing
of best practices and innovation, particularly in digitalisation is
implemented across all L&T businesses.
175
•
Developing innovative programmes: Groom fresh Diploma
Engineers to perform the role of EHS professionals
Safety Awareness Programmes in specialised areas of
tunnel, marine and launching girders in our metro,
transportation, and special bridges business units
During the Safety Month, cross-functional safety audits,
along with 'train-the-trainer' programmes are conducted.
The objective is to progressively ramp up site-based safety
capabilities. We recognise the efforts of individuals for
their contributions to safety across projects through various
rewards and recognition schemes.
Safety training
In line with L&T's progressive safety initiatives and
innovations, a comprehensive safety training programme
has been developed to enhance safety awareness for all
employees. Training modules have been developed into
online sessions, with both internal and external faculty.
Projects undertake specific training and apply the 'Lifetime
Learning' approach where specific workers can undertake
and be trained in a specific area. Virtual Reality training
modules for our workmen across the board give a new
dynamic to safety training. To overcome any disabilities or
language difficulties, our training includes interactive tests
and sessions where a 3D screen and Al provide attendees
with the opportunity to apply and test their learnings from
the interactions.
KELIGENT TREATMENT IC
Water Network
LE INDUCTION VAN
VAAAAAAB
AAAAAAA
AB
On-site safety training through 'Induction Vans'
OE
177
Integrated Annual Report 2021-22
SOCIAL AND
RELATIONSHIP CAPITAL
L&T strives to promote initiatives
that enhance the quality of life for
communities in and around the areas
where the Company operates. L&T has
been working towards the social and
economic development of communities
around its premises and at various
locations across the country long
before the CSR section was introduced
in the Companies Act 2013. Building
on over eight decades of social
responsibility activities, the Company
has a well-entrenched CSR programme
that contributes to inclusive growth
by empowering communities and
accelerating development
through interventions in water
and sanitation, health, education,
and skill development.
799
•
• National Safety Week: Reinforce positive behaviour at the
workplace to achieve safety and health goals
LARSEN & TOUBRO
Financial
Statements
Integrated Annual Report 2021-22
Emergence from COVID-19 Pandemic
L&T provided full vaccination cover for all workers and
optionally extended the same to their families. Continued
monitoring of workers across the business ensured the spread
of the virus was controlled. L&T's Crisis Management Team
(CMT) proactively continues to monitor and manage health
and safety initiatives across businesses, facilities, and projects.
Apart from putting processes in place to maintain real-time
communication, the continued use of Al to monitor our
projects 24/7 to detect and prevent unsafe situations and
behaviour has enabled real time reactions to risk analysis.
Further, use of mobile safety apps are ensuring this type of
real-time reaction and compliance, further improving our
compliance without the need for delayed direct interaction.
Search engines provide direct access to doctors and medical
facilities through mobiles.
Digitalisation in Health and Safety
Behavioural-Based Safety & Well-being
The EHS Council has developed a Behavioural-Based Safety
(BBS) Programme that is implemented across all businesses.
External BBS providers such as DuPont continue to assist
in further developing an integral safety culture in all our
businesses at all levels and their understanding of risk.
Introduction of the Safety Task Analysis Risk Reduction Talk
(STARRT) Card and Hazard Identification Tool (HIT) Card have
encouraged all employees to report hazards observed and
ensure that action is taken.
L&T recognised the importance of mental wellbeing and
undertook awareness campaigns and programmes for the
same. Projects progressed to having counselling availability and
personal wellbeing initiatives when working away from home.
Furthermore, climate change is not only affecting projects
and their timely delivery but workers are also facing higher
fatigue due to rising temperatures. Fatigue Mitigation Plans
are implemented and enhanced with medical awareness and
medical checks to lessen the impact on workers.
378
Safety and Organisational Culture
• The CEO & MD and the Executive Directors communicate
the overall direction and priorities
• Fire Service Week: Prevent fires, prepare yourself,
promote safety
176
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory
Reports
Every business organises several initiatives and campaigns to
spread awareness of safety among our employees, workforce,
and suppliers. L&T dedicates the first month of the year to
Safety. Every year, a theme is agreed at the corporate level
which supports the drive to Mission Zero harm. The theme for
2022 was "Do it Right, Do it Safely, Do it every Day'.
X+Y=
119
TOTAL
Gender
AGE
Total Attrition %
<30yrs 30-50yrs >50yrs
Female
Male
310
503
1,738 2,306 172 4,216
Grand Total 2,048 2,496 175 4,719
190
3
15%1
8%
9%
*Excludes superannuated staff
1. Personal reasons (including family related, marriage & relocation),
further studies and career prospects account for higher attrition
rate in female employees.
Employees covered under Leadership Development Programmes (does not cover Leadership Development
programmes done by the businesses)
Consolidated training break up
Programme types
Data as at March 31, 2022
Total programmes
Attrition (age-wise and gender-wise)*
109
Grand Total
16,881
30,905
4,369
149
4,220 48,917
52,155
3,238
Female
Male
540
141
2
683
3,275
1,686
107
Grand Total
3,815
1,827
5,068
5,751
By internal faculty
By external faculty
Leadership Development
0
Business Requirements
76
2
74
Webinar
65
1
64
Operational Excellence
41
41
0
Safety
10
10
0
1
1
HR for HR
2
Core Development
Competency Development
Calendar
Accreditation
6
0
6
53
497
2
66
12
54
177
50
127
2
0
51
178
Artificial Intelligence (AI) is being used as a prominent solution
for the identification and prevention of unsafe acts and
conditions, while further enhancing our Building Information
Modeling (BIM) in Safety. We plan to increase the use of 3D
models in more construction sites for scaffold erection and
dismantling and introduce more VR modules. In remote places,
the use of drones has been applied to identify safety hazards,
without the necessity of putting people at risk. Continued
focus on digitalisation allows us to move further to the
'Connected EHS Manager' and the 'Connected Workman' as
we continue to push boundaries and standards in safety to
significantly improve our safety performance. We continue to
develop VR-based training modules with digitalisation playing
a critical role in the identification and reporting of unsafe
acts/conditions. Specific training incident investigation allows
us to fully understand the underlying causes and implement
necessary steps to prevent re-occurrence. Further details of
digital initiatives undertaken in health and safety have been
covered in Intellectual Capital.
673
120 Farmers benefitted
Savings of 300-400 a week through the sale of organic
vegetables
Cultivating rewarding agricultural practices
Name: Jaydeep Ramrao Rathod
Location: Devgaon Tanda, Maharastra
Challenge: Usage of chemical fertilisers, huge cost,
adverse effect on land fertility
Intervention: Promotion of multilayer farming, farmer
training and demonstration of organic farming under the
guidance of Project Agronomists
Impact: Increase in harvest and income of the family, 13
quintals of wheat, priced at 4,000/quintal
Enhancing Nutrition
Under this component, women were given good quality
seeds of indigenous species of vegetables. They were
encouraged to grow a kitchen garden that provided fresh,
nutritious, and organic food to the household to meet
their daily nutritional needs. During FY 2021-2022, 150
households benefitted through kitchen gardens.
Sowing the seeds of positive change
Location: Sewantri, Rajasthan
Challenge: Low-Income generation due to bad quality
of seeds
Intervention: Social interventions like providing good
quality indigenous seeds
Impact: In FY 2021-22, 150 households benefited, the
yield increased from 4.4 quintals/ha to 6.74 quintals/ha
and the average household income has increased from
*6,006 to 19,808
Institution Building and Sustainability
Community groups like Village Development Committees
(VDCs) with 50% participation from women, Farmers'
groups, and Self-Help Groups (SHGs) were created.
COVID-19 Vaccination: Awareness generation and
vaccination through SHGs using audio/video messages
on social media.
Result: Vaccination of 1,347 people
184
Savings on cost of fertilizers by 30-35%
Corporate
Overview
Overall impact in the region:
Promoting sustainable and climate resilient
agriculture: This intervention is aimed at reducing
the input cost of crops and increasing the yield by
promoting organic methods of cultivation.
Location: Georai Marda village, Devgaon, Aurangabad,
Maharashtra
Demography: 473 individuals with 90 households
Problem: Dependent on rain-fed farming, and irrigation
from open wells, allowing the farmers to cultivate a
single crop every year
Intervention: Civil interventions like farm bunding, farm
ponds, ravine deepening
Impact: Groundwater recharge, improved crop yield,
annual income of 54,250 cultivation of 2 crops
500+ farmers
Overall beneficiaries in the region
950.0
Water Distribution System
To provide water security to all beneficiary families, water
distribution schemes are introduced. The households are
provided with adequate piped water supply within or nearby
the household premises to relieve women and girls from the
drudgery of fetching water.
Capacity Building
In all the ICDP locations, the communities were trained
to facilitate optimum, equitable, and efficient water use
and implement other agricultural methods and technology
to increase the yield. Farmers were trained in agricultural
practices that required minimum use of water along with
techniques to prepare low-cost organic manures that retain
the land's fertility.
Target
FY 2021-22
FY 2019-20
भाई मेरा सबसे न्यार
शौचालय बनवाया प्यार
पापा मम्मी
खुले में शौच
183
Integrated Annual Report 2021-22
Region: Devgaon, Jalna District, Maharashtra
Changing the financial landscape of a village
Name: Hassan Pathan
Management
Statutory
487 households in Sewantri benefitted
Storage capacity: 46.19 lac litres
The depth of water from land surface has increased in
Sewantri due to 43% less than average rainfall in
FY 2021-22, as indicated in the graphs alongside.
182
14.2
13.7
SEWANTRI
9.7
8.0
70
DEVGAON
22.0
20.2
17.6
NAGZARI
Baseline
80
87
PAPPAMPATTI
Area: Nagzari and Chambharwadi village in Jalana
district of Maharashtra
Integrated
Interventions: Construction of farm ponds, Well
cleaning, lining and parapet construction
Depth of water from land surface (metre)
Financial
LARSEN & TOUBRO
Discussion and Analysis
Report
Reports
Statements
Making hay whether the Sun shines or not
Rajasthan, Maharashtra
and Tamil Nadu
States covered
23,907
Households covered
36,181 ha
Area covered
The ICDP starts from need assessment of the location and
follows a systematic community organisation strategy. These
include mobilising people around the problem, forming
village development and monitoring committees, creating
awareness about saving water, building civil infrastructure to
help water and soil conservation, ensuring its maintenance
by the community, providing sanitation facilities with people's
contribution in terms of labour, encouraging climate resilient
and sustainable agricultural practices and building capabilities
of the local people to use the resources judiciously.
181
Integrated Annual Report 2021-22
Infrastructure
As a part of the intervention, structures like check dams,
anicuts, contour trenches, farm bunds and farm ponds were
constructed with participation from the community. These
structures, along with other sustainable agricultural practices,
helped increase the water level in water bodies, and retained
soil moisture.
Water Resource Development through
Farm Ponds
וווין
65
914.0
LARSEN & TOUBRO
8.88 m
77%
65
3471.54 ha
53%
190.51 ha
43%
Health and Nutrition
No. of kitchen gardens
No. of children in Balwadis supported
Livestock Livelihood
No. of veterinary camps
Pastureland area under protection
Institution Building
No. of self-help groups (SHGs) active
539
241
26
19 ha
Area under horticulture
213
Fallow land converted to agriculture land
Area protected from Direct Run-off
FY 2021-22
90
92
2
FY 2019-20
187
Integrated Annual Report 2021-22
Highlights of ICDP programme in three new locations as follows:
Coverage under ICDP in three new locations: Devgaon, Nagzari and Sewantri
5,345
Households covered
Area of land under the project area
Population
10,074 ha
25,208
FY 2022
Water Availability
Increase in water table level
Percentage of household with drinking water
Agriculture
No. of crop demonstrations
Increase in area under cultivation / irrigation
245.2
SHG Savings fund created for inter-loaning
Capacity Building
Management
Discussion and Analysis
Integrated Statutory Financial
Report
Reports
Statements
Increase in Irrigated Area (ha)
116.6
461.0
638.0
Baseline
FY 2020-21
180.0
156.4
131.4
SEWANTRI
606.0 612.0
DEVGAON
1,076.0
654.0
950.0
903.0
NAGZARI
Corporate
Overview
No. of farmers groups formed
FY 2019-20
11.2
No. of farmers attended farm-field trainings
Training on subjects
*6.57 Mn
26
408
• Water budgeting
• Improved Kharif and Rabi cropping
• Horticulture wadi development
188
162,413
Lives touched through our water and
sanitation interventions
•
Zero-budget natural farming
• Best practices on grains, pulse, vegetable nursery and fruit orchards.
• Seed treatment
• Formation and strengthening of community organisation
FY 2020-21
Target
FY 2021-22
10.3
The Integrated Community Development Programme
(ICDP) of L&T started in FY 2014-15 to improve the
availability of water. Two projects in Tamil Nadu have been
handed over to people's institutions for sustaining the
work initiated by the project.
7.7
Integrated Community Development Programme
893
812
Location: Alamgaon Village, Nagzari, Maharashtra
Demography: 272 households, Population: 1,558
Intervention: Training and awareness on climate resilient agricultural practices
Impact: The formation and capacity building of Village Development Committees (VDCs) and other village institutes for
governance,. Federation of SHGs led to the process of forming Farmer Producer Group and selling of farm produce at
fair prices with the support of Government schemes. Farmer Producer Group [Swarajya Shetkari] initiated on
September 30, 2020 with a membership of 300 people.
Paradigm shift in gender perspective through women leadership
Selection of a woman candidate as President in Village Development Committee. This paradigm shift brought confidence
among women and empowered them to make decisions.
Empowering women through SHGs and
capacity Building
Region: Sewantri, Rajasthan
No of SHGs: 78
No of participants: 1,254 women
Role of SHGs: Better access to savings and credit facilities
for income generation, provide loans to their members for
health, education, and livelihood, provide women with a
firm base for dialogue with credit institutes and banks.
Intervention: Training in financial and digital literacy, SHG
processes and functioning, menstrual hygiene, maternal care
and reproductive health; 208 community meetings conducted
Gross Savings: 1,895,125
Impact:
• 46 SHGs linked with banks and total of 7.6 Mn worth
loans mobilised by the SHGS
• 15 Pashu Sakhis developed to cater to the health of goats
• 435 women engaged in vegetable cultivation,
packaging and selling in local markets; 678 engaged
in goatry; 27 women earning through purchase of
buffaloes and sale of milk
• 78 micro enterprises set up for individual or small groups
of women like grocery stores, flour mills, beauty parlours,
sewing and tailoring, etc.
• 70 SHGs have more than 3.5 Mn as total savings
A CS
LARSEN & TOUBRO
PATHARDI
394.2
350.4
909
LARSEN & TOUBRO
Statements
Reports
Report
Discussion and Analysis
Statutory Financial
Integrated
Management
Corporate
Overview
20
sen & To
20
KUMBHALGARH
Baseline
20.83
12
277.4
452.6
BHIM
84
89
89
FY 2020-21
185
Integrated Annual Report 2021-22
Impact Indicators
BHIM
6.0
6.0
CHETTIPALAYAM
Baseline
Target
FY 2019-20
KUMBHALGARH
FY 2020-21
FY 2021-22
6.9
Corporate
Overview
Discussion and Analysis
Integrated
Report
Statutory
Financial
LARSEN & TOUBRO
Reports
Statements
Increase in Irrigated Area (ha)
366
53
Management
KEY HIGHLIGHTS OF FY 2021-22
8.0
262.0
The impact of the ICDP projects that were initiated in 2014 and completed in 2020 is sustained and visible this year by either the
same/increased level of water in the wells, and area of irrigated land; which is shown in the following ICDP sustainable graphs.
Depth of water from land surface (metre)
186
6.5
5.5
4.5
4.2
PATHARDI
5.5
305.0
268.2
239.0
268.2
204.0
PAPPAMPATTI
30.0
29.0
29.0
29.1
28.0
366.0
304.8
288.0
232.0
35
1.13 Mn
STRATEGIES IMPACTED
1. Corporate CSR Team: L&T has dedicated CSR teams
at the Corporate level, committed to maximising social
impact. The Corporate CSR team acts under the guidance
and framework approved by the CSR committee of
the Board. They devise, execute, and monitor CSR
programmes, either directly or in partnership with NGOs.
Drivers of CSR Interventions
14,587
Lives Impacted
690,321
Lives Impacted
Health
Skill Development
260,295
Lives Impacted
2. CSR coordinator and teams at campuses, area offices,
and sites: Area offices and campus teams perform need-
assessment, identify local projects and NGO partners,
implement and monitor the projects - providing support in
achieving stated CSR goals.
162,341
Lives Impacted
Water and Sanitation
L&T aims to improve the quality of life, mitigate social
inequalities, build self-sufficiency, and help individuals achieve
their true potential in the identified communities.
Building India's Social Infrastructure
The activities are brought under the CSR theme 'Building
India's Social Infrastructure' to bring about impactful and
long-lasting social change.
MSME suppliers
LIVES BENEFITED THROUGH OUR COMMUNITY
DEVELOPMENT PROGRAMMES
2,615
Education
3. L&Ts Health Centres: L&T's multi-specialty Health Centres
and their professional staff are equipped to provide
outpatient and tertiary health services by reaching out to
the underprivileged communities and making health care
accessible and affordable to them.
4. Prayas Trust: Run by the female spouses of employees
and women employees to provide services to the
underprivileged sections of society located around various
L&T facilities.
5. Volunteers: L&T-eering, the Company's structured
employee volunteering programme enables and
encourages employees to participate in community
development activities. Volunteers invest their time in
programmes that benefit underprivileged communities.
32 oxygen generators, over 1,750 bedside ventilators, mobile
X-ray units, ambulances, portable laboratories, thermal
scanners, pulse oximeters, High Flow Heated Respiratory
Humidifier and Cannula, Fowler beds, and CPAP machines
Hospital Equipment
PPE Kits, Ply Masks
Personal Protective
Equipment
L&T reached out to 10 states in India and contributed
around 337.7 Mn for COVID-19 Relief.
L&T was at the forefront of responding to the COVID-19
threat, with prevention and treatment related initiatives
for affected individuals. The Company supported the
Government's efforts during the pandemic by strengthening
health infrastructure, providing preventive gear and supplies
for frontline workers, as well as donating testing, diagnostic,
and treatment equipment.
L&T's COVID-19 Care
6. L&T Public Charitable Trust (LTPCT): Established in
2004, LTPCT has been undertaking projects to facilitate
sustainable development of society through initiatives in the
realms of vocational training, water management, holistic
development of children and healthcare in the marginalised
communities. Employees' contribution and management
grant from L&T have made the institution a not-for-profit
entity within the conglomerate. LTPCT benefits from the
support and in-house expertise of various L&T companies to
design and deliver its programmes for the community.
LARSEN & TOUBRO
Statements
Reports
Statutory Financial
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
180
Contribution to exchequer
*54.4 Bn
CHETTIPALAYAM
48,168
Input Metrics
SOCIAL CAPITAL
Integrated Annual Report 2021-22
179
- Social Engagement and Impact
- Brand Management
- Diversity, Inclusion & Equal Opportunity
- Sustainable Supply Chain
- Human Rights and Labour Conditions
- Employee & Workforce Engagement, Wellbeing,
Health & Safety
- Business Ethics
- Corporate Governance
– Customer Experience and Satisfaction
KEY MATERIAL ISSUES IMPACTED
17 Patent
10
AND LANTATION
6
5
EDUCATION
BULTY
Target
3
2
SDGS IMPACTED
SE-2
SO-II SO-V
Output Metrics
New suppliers and contractors
*1.36 Bn
1.13 Mn
CSR beneficiaries
45
CSR Partners
75
Vendors, subcontractors and workers trained
CSR Spend
510,781
82287
74612
57558
63813
87255
57164
52196
66301
101000
[9]
Statement of Profit and Loss
[8]
2013-14 2012-13
2015-16 2014-15
2016-17
2018-19 2017-18
2019-20
2020-21
2021-22
IGAAP [11].
Gross revenue from operations [1]
82384
14.00
Ind AS [11].
Puducherry
Chennai
Kancheepuram
Kattupalli
Guwahati,
Kochi
Coimbatore
Mysuru
*Pulicat
Bengaluru
&
Vijayawada
Hyderabad
Visakhapatnam
Talegaon
Pune
Bhubaneswar
Raipur
Nagpur
Rourkela
Cuttack
Serampore
Kolkata
Jamshedpur
Durgapur
Ranchi
Varanasi
Lucknow
Hazira
Lonavala
Registered Office
Campus
Power Plant
Shipyards
crore
Description
| STANDALONE FINANCIALS -
10 YEAR HIGHLIGHTS
Integrated Annual Report 2021-22
LARSEN & TOUBRO
15
Agents
◆ Manufacturing / Fabrication Facilities
▲ Product & Equipment Supply
◆ Engineering & Construction Projects
★ Offices
| GLOBAL NETWORK
PBDIT[1][2]
Statutory Financial
Reports Statements
Discussion and Analysis
Integrated
Management
Corporate
Overview
This pictorial representation does not purport to be the political map of India.
* Part of L&T's Corporate Social Initiatives
+Campus denotes facilities for design and manufacture
* Construction Skills Training Institutes*
✰ Corporate Technology and Engineering Academy
Leadership Development Academy
Knowledge City
Offices
Report
9055
15.74
6838
4902
5206
Balance Sheet
Net worth
82408
75869
4765
66723
54904
50217
44180
40909
37712
33860
62375
Non-controlling interest
4233
7370
8144
7151
5920
4154
4470
4547
6041
4911
shareholders (including
extraordinary/exceptional items)
8669
11583
9549
8905
Profit attributable to Group
12966
12052
9521
218842
220525
217251
194756
167629
147735
Capital employed
135208
121221
99185
Ratios and statistics
PBDIT as % of net revenue from
operations [4][1]
11.64
136479
62672
80330
90571
6826
5201
3564
2893
4999
3179
2653
Loan funds
123468
132605
141007
125555
107524
93954
88135
8894
11.49
6965
extraordinary/exceptional items) [3]
[5] RONW [(PAT including extraordinary & exceptional items)/(average net worth excluding revaluation reserve)].
[6] Basic earnings per equity share has been calculated including extraordinary & exceptional items and adjusted for all the years for issue of bonus shares.
[7] After considering adjustments for issue of bonus shares during the respective years.
[8] Figures for 2021-22 and 2020-21 include the impact of the merger of L&T Hydrocarbon with the Company.
[9] Figures from 2018-19 include the impact of the merger of L&T Shipbuilding Limited with the Company.
[10] Dividend for the year 2020-21 includes special dividend of ₹ 18.00 per share and final dividend of * 18 per share.
[11] Figures from 2015-16 are as per Ind AS and for earlier periods as per IGAAP and hence not directly comparable.
[4] Profit After Tax (PAT) as % of net revenue from operations = [(PAT including extraordinary & exceptional items)/(gross revenue from operations less excise
duty up to June 30, 2017)].
[12] Profit from discontinued operations in the year 2020-21, 2019-20 and 2018-19 has been considered as exceptional item.
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
I CONSOLIDATED FINANCIALS -
16
10 YEAR HIGHLIGHTS
54,579 50,592
[2] Profit before depreciation, interest and tax (PBDIT) is excluding extraordinary & exceptional items wherever applicable and other income.
12.17
10.83
9.50
8.22
14,92,124 13,71,535 12,51,569 10,21,275 8,99,902
50,267 49,107 45,467 45,205 42,924
[3] PBDIT as % of net revenue from operations = [(PBDIT)/(gross revenue from operations less excise duty up to June 30, 2017)].
41,466
8,53,824
832,831 854,151
44,081
No. of equity shareholders
No. of employees
[1] For Continuing Operations from 2018-19.
9,23,628 10,28,541
43,354
LARSEN & TOUBRO
Description
crore
PBDIT [1][2]
18217
15624
Panvel
16329
15330
75195
13641
10463
11258
10730
9929
Profit attributable to Group
shareholders (excluding
11130
85889
92762
101975
Ind AS
IGAAP
2021-22
2020-21 2019-20
2018-19 2017-18 2016-17 2015-16
2014-15
2013-14 2012-13
Statement of Profit and Loss
Gross revenue from operations [1]
156521
135979
145452
135220
119862
110011
8572
8309
11.23
11.40
12936
13924
10558
10561
11990
25785
11459
24474
29291
33662
37085
42135
46013
49174
20298
50048
8478
PAT as % of net revenue from
8.97
operations [1][3]
PBDIT as % of net revenue from
Ratios and statistics
Capital employed
37769
87412
45121
56059
56571
59735
62038
77960
86212
50021
52175
61738
67114
4560
4861
5466
5414
5966
7612
4454
Profit after tax (excluding extraordinary/
exceptional items) [12]
6667
6488
5829
6481
7701
7653
5473
4699
4905
4169
Loan funds
Net worth
Balance Sheet
4384
5493
5056
5000
5454
5387
7491
6679
11798
7879
exceptional items)
Profit after tax (including extraordinary/
9.52
11.34
8.30
10.34
Book value per equity share (*) [7]
35.55
39.57
36.31
35.81
39.00
477.67
38.46
47.59
84.02
56.09
Basic earnings per equity share (*) [6]
0.29:1
0.34:1
53.43
0.35:1
439.55
356.79 350.90
10.18
10.35
12.24
12.60
13.33
18.00
371.65
18.00
22.00
Dividend per equity share (*) [7][10]
241.97 211.39
265.85
301.57
328.79
36.00
0.33:1
0.23:1
0.21:1
7.91
8.30
7.23
9.10
8.11
13.52
8.87
7.80
PAT as % of net revenue from
10.60
11.78
11.38
9.23
9.86
operations [1][4]
9.71
8.50
RONW % [5]
0.24:1
0.49:1
0.40:1
0.30:1
Gross Debt: Equity ratio
16.06
17.46
14.30
12.39
12.37
11.32
16.00
13.07
20.54
12.23
9.30
Mumbai
• L&T Valves
Arabia
Manufacturing
用鳯 Vadodara
• ArRiyadh New
Mobility
Consortium-
Riyadh Metro
Orange Line
Line Doha
Metro
• ALYSJ JV Gold
Joint Ventures
Geostructure
Pvt. Ltd.
L&T
Harbours
Transportation
Infrastructure
Arabia
Subsidiary
New Electrics
Digital
Solutions
• International
• Floating Solar
Energy Storage
• Micro Grids &
• L&T Saudi
Minerals &
Metals
Energy -
Power
Roads, Runways
• Minerals &
• Hitech Rock
Products &
Aggregates Ltd.
Infrastructure
Engineering Ltd.
• L&T Oman LLC
• L&T
Subsidiaries
Transportation
(International)
• Metro Business
Business
Construction
Railway
• Main Line
Railways
Structures
• Formations &
Bridges
• Roads &
& Elevated
Corridors
(Domestic)
• Utility Scale
Metals
Renewables
International
(Central &
West)
• Nuclear
Tunnels
• Hydel &
Distribution
Line
• B&F Fast
International
& Data Centres
• Health
• Residential
Supply II
• Rural Water
• Rural Water
Water &
Wastewater
Commercial
• IT, Office Space
• Defence
• Rural Water
• Middle East
Water
Infrastructure
• Smart Water
Desalination
• Industrial &
(South & East)
Systems II
• Large Water
• Large Water
Systems I
(North & West)
Irrigation,
Industrial &
Infrastructure
• Waste Water
Water
Management
• Urban Water &
(South & East)
Supply III
• Ports &
• Africa
• ASEAN
Health,
Residential &
• MENA
Infrastructure
Development
Projects
& Systems
Engineering
Energy Products
Construction
Capability Unit
& Lundy
• L&T-Sargent
for Engineering
& Design
Joint Venture
Power Training
Institute
• L&T Howden
Joint Ventures
⚫L&T-MHI Power
Boilers
Pre-heaters
• Rotary Air
• Axial fans
• Heavy Foundry
Hydro Turbine
Generators
for Steam &
• L&T-MHI Power
Turbine
Generators
Energy -
Hydrocarbon
• Offshore
• Onshore
• L&T-Chiyoda
Indonesia
Hydrocarbon
Engineering
Toubro
• PT. Larsen &
• Larsen Toubro
Arabia
Offshore
• L&T Sapura
Shipping
• L&T Sapura
& Associates
JVs, Subsidiaries
• ADVENT
(Advanced Value
Engineering &
Technology)
Fabrication
• Modular
Services
• Construction
Manufacturing
• Products
• Contract
for Combined
• Gas-based
Projects
• Coal-based
EPC Projects
Forgings Pvt.
Ltd.
L&T Special
Steels & Heavy
Limited
Projects
• Nabha Power
of Thermal
• Development
Power
Development
• Power
Transmission
• Metros
• Ports
• Roads
and Hydro
Power Plants
• Nuclear Steam
Turbine &
Generators
Island
• Steam Turbines
Turbine &
Generators
• Nuclear Steam
• Pulverisers
and Supercritical
Steam Turbines
Supercritical
• Ultra
Boilers
Supercritical
and Supercritical
• Ultra
Manufacturing
• Combustion
Modification
• Selective
Catalytic
Reduction
• Flue Gas
Desulfurization
Precipitators
• Electrostatic
Enviro Systems
Cycle Power
Plant
• L&T
• Factories
Public Spaces,
Airports &
Factories
1.85:1
Basic earnings per equity share (*) [7]
61.71
82.49
68.04
63.51
52.62
2.13:1
43.20
34.22
35.31
37.69
Book value per equity share (*) [8]
586.52
540.16
475.27
30.32
2.21:1
1.87:1
1.75:1
RONW % [6]
10.95
16.25
14.80
15.35
14.12
12.80
9.91
12.13
13.71
16.47
Gross Debt: Equity ratio
1.29:1
1.51:1
1.85:1
1.81:1
1.79:1
444.67
6.99
391.78
316.20
[8] After considering adjustment for issue of bonus shares during respective years.
[9] Dividend for the year 2020-21 includes special dividend of 18.00 per share and final dividend of 18.00 per share.
17
Integrated Annual Report 2021-22
MANAGEMENT DISCUSSION
AND ANALYSIS
Economy
Indian Economy
[7] Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares.
The financial year 2021-22 was expected to be a year of
recovery on the back of normalised resumption of economic
activity and improved mobility, post the first COVID-19 wave.
Despite these turbulences, India's GDP is expected to grow
by 8.7% in FY 2021-22, compared to a 6.6% contraction
registered in the previous year.
India's Union Budget 2022 emphasised on maintaining fiscal
deficit near current levels along with a renewed capex thrust.
Government capex serves the twin purpose of employment
generation and acts as a growth multiplier. Complementing
the efforts of the Government, the RBI continues to pursue
an accommodative but cautious monetary stance. The tax
buoyancy due to improved economic activity could help India
to stay adequately prepared to handle the worsening terms of
trade arising out of high oil prices. The Government remaining
committed to achieve its NIP target and private capex showing
early signs of revival, augurs well for economic growth.
The surge in domestic demand, improvement in capacity
utilization levels and much leaner corporate balance sheets
are further indicating a sustained resurgence in the economic
output. The IMD's prediction of yet another year of normal
monsoon has added to the positive sentiments.
With the easing of COVID-19 protocols, consumer confidence
and household optimism are also on an uptrend. A robust
Rabi output should support recovery in rural demand and
pick-up in contact-intensive services should help in further
strengthening the urban demand.
It is expected that the ongoing geopolitical conflict could
impact supply chain dynamics and keep commodity prices
elevated for a longer period. Rising interest rates across
the world could also impact capital flows into the country.
However, India due to its structural reforms and thoughtful
fiscal stimulus and monetary support from Government
& RBI respectively, is in a better position to withstand the
challenges, as in the past.
18
On the contrary, the year commenced with the onset of a
more virulent second wave, resulting in a record number of
infections and high mortality rate. The country witnessed
partial lockdowns across different states, as opposed to
complete lockdowns during the first wave. With improved
vaccination efforts, the economy bounced back faster than
anticipated. However, the recovery momentum was once
more disrupted due to the emergence of the Omicron variant
towards the end of Q3, which fortunately, lasted only for a
brief period. The emergence of geopolitical tensions towards
the end of the year has however now created new challenges
with a sharp rise in commodity prices, leading to a record
high inflation and rising interest rates.
[6] RONW = [(PAT including extraordinary/exceptional items)/(average net worth excluding revaluation reserve)].
[5] Profit after tax (PAT) as % of net revenue from operations = [PAT including extraordinary/exceptional items/gross revenue from operations less excise duty upto
June 30, 2017].
[4] PBDIT as % of net revenue from operations =[PBDIT/(gross revenue from operations less excise duty upto June 30, 2017)].
293.29
271.10
244.40
Dividend per equity share (*) [8] [9]
22.00
36.00
18.00
18.00
16.00
14.00
12.17
10.83
8.22
Figures for 2015-16 to 2021-22 are as per Ind AS and for earlier periods as per IGAAP and hence not directly comparable.
[1] From Continuing Operations in 2020-21, 2019-20 and 2018-19.
[2] Profit before depreciation, interest and tax [PBDIT] is excluding extraordinary/exceptional items wherever applicable and other income.
[3] Profit from discontinued operations in the year 2020-21, 2019-20 and 2018-19 has been considered as exceptional item.
358.83
• Airports
• Public Spaces
5.76
4.19
Chairman & Board of Directors
| ORGANISATION STRUCTURE
Integrated Annual Report 2021-22
9
77th Annual General Meeting through Video Conferencing or Other Audio Visual Means on Thursday, 4th August 2022 at 3.30 p.m. IST
Kfin Technologies Limited
Registrar & Share Transfer Agents
S N Subrahmanyan CEO & Managing Director
M/s. Deloitte Haskins & Sells LLP
L&T House, Ballard Estate, Mumbai - 400 001
Registered Office
Mr. Sivaram Nair A
Company Secretary
MR. PRAMIT JHAVERI
Independent Director
MRS. PREETHA REDDY
Independent Director
Nominee of Life Insurance Corporation of India
Auditors
M V Satish
T Madhava Das
S V Desai
• Power
Supply I (North)
• Transmission
• Metros
• Substation
Domestic
Heavy Civil
Infrastructure
Power
Transmission
& Distribution
Water &
Effluent
Treatment
Buildings &
Factories
Anil Parab
Arvind Garg
Derek M Shah
Satish Palekar
Subramanian Sarma
K. Asok Kumar
D K Sen
MR. HEMANT BHARGAVA
5.18
Independent Director
MR. SANJEEV AGA
Independent Director
MR. A. M. NAIK
BOARD OF DIRECTORS (as on 12th May 2022)
| COMPANY INFORMATION
Discussion and Analysis Report
Statements
LARSEN & TOUBRO
Statutory Financial
Reports
Group Chairman
Integrated
Corporate
Overview
5.54
8.52
6.57
6.59
6.16
5.53
Management
MR. S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
MR. R. SHANKAR RAMAN
MR. ADIL ZAINULBHAI
Independent Director
MR. VIKRAM SINGH MEHTA
Independent Director
MR. M. DAMODARAN
Independent Director
MR. M. M. CHITALE
Independent Director
Whole-time Director & Sr. Executive Vice President
(Utilities)
MR. T. MADHAVA DAS
Whole-time Director & Sr. Executive Vice President
(Civil Infrastructure)
MR. S. V. DESAI
Whole-time Director & Sr. Executive Vice President
(Energy)
MR. SUBRAMANIAN SARMA
Whole-time Director & Sr. Executive Vice President
(Defence & Smart Technologies)
MR. JAYANT DAMODAR PATIL
Whole-time Director & Sr. Executive Vice President
(Buildings)
MR. M. V. SATISH
Whole-time Director & Sr. Executive Vice President
(Development Projects)
MR. D. K. SEN
Whole-time Director & Chief Financial Officer
MR. NARAYANAN KUMAR
Hydrocarbon
Saudi
• Larsen & Toubro
Kuwait
Construction
• Larsen & Toubro
Electromech
• Built-to-suit
Commercial
• Luxury Housing
• Elite Housing
Residential
Development
Verticals:
Integrated
Mixed Use
Development
• Slum
Rehabilitation
Authority
Projects
Office
• Joint Venture
Development
Development
Types:
Mindtree NxT
Consulting
Automation
Enterprise IT
transformation &
• Cloud
Intelligence
• Land
Development
Campuses
Standalone
Commercial
Finance
• Real Estate
• SME Loans
• Consumer Loans
• Retail Housing
Finance
• Two-wheeler
Finance
• Farmer Finance
• Rural Business
Finance
Products
Development
Transit Oriented
Retail
• High Street
Malls
• Integrated
Retail
Buildings
• Data &
• Infrastructure
• Customer
Success
• Healthcare
Financial
• Banking and
Verticals
& Validation
• Verification
Engineering
• Embedded
Services
Engineering
Services
• VLSI Design
& Services
Products
- Digital
Consulting
Digital
Manufacturing
- Digital
• Mechanical
Insurance
• Manufacturing
• Energy &
• Banking,
Financial
Services &
Insurance
Communication,
Media &
Technology
•Retail, Consumer
Packaged Goods
& Manufacturing
•Travel,
Transportation,
Logistics &
Hospitality
Industry Groups
• Enterprise
Integration and
Mobility
and Cognitive
• Analytics, Al
& Security
Infrastructure
• Cloud,
Solutions
Enterprise
Testing
Services
Offerings
•Application
Development
Maintenance &
• Public Sector
High-Tech,
Media and
Entertainment
Packaged Goods,
Retail & Pharma
• Consumer
Utilities
Service Lines
Engineering
Finance
• Internal
S. V. Desai
Whole-time Director &
T. Madhava Das
Whole-time Director &
Sr. Executive Vice President
(Utilities)
Sr. Executive Vice President
(Defence & Smart Technologies)
J. D. Patil
Whole-time Director &
M. V. Satish
Whole-time Director &
Sr. Executive Vice
President (Buildings)
Whole-time Director &
Sr. Executive Vice President
(Development Projects)
D. K. Sen
Sr. Executive Vice President
(Civil Infrastructure)
LARSEN & TOUBRO
Subramanian Sarma
Whole-time Director &
R. Shankar Raman
Whole-time Director &
Chief Financial
Officer
CEO & Managing Director
S. N. Subrahmanyan
| EXECUTIVE COMMITTEE (ECOM)
Statutory Financial
Reports Statements
Report
Sr. Executive Vice President
(Energy)
Hasit Joshipura
Sr. Vice President & Head
Corporate Centre
Shrikant Joshi
CEO & Managing Director
L&T Realty Limited
Jamnagar
Pithampur
Bhopal
Ahmedabad
Faridabad
Jaipur
Udaipur
金鼠 New Delhi
Rajpura
Chandigarh
| NATIONWIDE NETWORK
Integrated Annual Report 2021-22
14
13
Heavy Engineering
Sr. Vice President & Head
Anil V. Parab
Discussion and Analysis
• Mutual Funds
Integrated
Corporate
Overview
Services
Manufacturing
EPC Projects
EPC Construction
Corporate Secretarial
Sivaram Nair
W. P. Parthasarathy
Corporate HR
Dr. C Jayakumar
Corporate Audit
Services
Others
Corporate Centre
Hasit Joshipura
• Risk
Insurance
Treasury
• Taxation
Reporting
• Finance
Controls
Management
As on 31.03.2022
11
Integrated Annual Report 2021-22
(Civil Infrastructure)
Sr. Executive Vice President
S. V. Desai
Whole-time Director &
(Utilities)
T. Madhava Das
Whole-time Director &
Sr. Executive Vice President
Sr. Executive Vice President
(Defence & Smart Technologies)
J. D. Patil
Whole-time Director &
M. V. Satish
Whole-time Director &
Sr. Executive Vice
President (Buildings)
Whole-time Director &
Sr. Executive Vice President
(Development Projects)
D. K. Sen
Subramanian Sarma
Whole-time Director &
Sr. Executive Vice President
(Energy)
R. Shankar Raman
Whole-time Director &
Chief Financial
Officer
S. N. Subrahmanyan
CEO & Managing Director
Group Chairman
A. M. Naik
12
| LEADERSHIP TEAM
Management
• Digital
Horizontals
• Healthcare
Making
Machinery
& Road
• Construction
Limited
Construction
Equipment
Subsidiary/JV
• L&T
Marketing
Network
• Hydraulic
• Domestic
Sand Plant
Solutions
• Rubber
• Crushing &
Machinery
• Mining
• Construction
Machinery
Construction,
Mining,
and Industrial
Machinery
Equipment
Processing
Machinery
Systems and
Components
Heavy
Engineering
• Process Plant
Internals
Upgrade (MRU)
Segment
Revamp &
• Modification,
and Coal
Gasification
• Fertilizer &
Petrochemicals
Oil & Gas
• Refinery,
Cracker,
Process Plant
Equipment
• ATVP
• LWR
• FBR
• ITER
•PHWR
& Systems
Plant Equipment
• Nuclear Power
Nuclear
of Technological
• L&T Piping
Centre
projects and
manufacturing
for
USA LLC
• L&T Valves
Subsidiaries
• Aerospace
• Nuclear
• Power
• Defence
Chemicals &
Petrochemicals
LLC
• Refining
Valves for
Valves
L&T
Hydrocarbon
Caspian LLC
• L&T
• Larsen & Toubro
Heavy
Engineering
• L&T Modular
Fabrication Yard
• Oil & Gas
Energy-
Green
Development
• Asset
Development for
• Joint Ventures
Partnerships
• Bio Fuels
• Fuel Cells
Green
Adjacencies
chemistry cells
(ACC) for
stationary
applications
• Advance
• Electrolysers
Manufacturing
and Storage
• Carbon Capture
derivatives
and its
Green Hydrogen
• EPC Projects for
EPC
Green Hydrogen
and its
derivatives
development
10
10
Corporate
Overview
Technology
• Building
Machinery
• Industrial
Controls
• Electricals &
Industrial
Products
• Power &
Verticals
• Military
• Communication
Network &
Telecom
Infrastructure
• Cyber Security
• Safe Cities
Infrastructure
Smart
• Smart Cities &
Communication
Utilities
Transportation
• Automotive
• Medical Devices
& Life Sciences
Medical Devices
• Oil & Gas
• Chemicals
• FMCG
Process
Engineering
Entertainment
• Media &
Electronics &
ISV
• Consumer
Infra & Service
Providers
•Semiconductors
• Communication
Telecom &
Hitech
• Aerospace &
Rail
Highways
• Truck & Off-
Missile
Systems Ltd.
• L&T MBDA
Subsidiaries
JVs/
R Govindan
YVS
Sravankumar
Dinanath
Dubhashi
Shrikant Joshi
Debashis
Chatterjee
R Shankar Raman
Amit Chadha
R. Srinivasan
J D Patil
Statements
Reports
LARSEN & TOUBRO
Financial
Statutory
Integrated
Report
Discussion and Analysis
Management
KV B Reddy
Madh A
Defence
L&T
New Build &
Refits
Defence
Shipbuilding
• Warships -
Armoured
Systems,
Missiles &
Aerospace
Systems
Weapon
Systems &
Engineering
Systems (Land
& Naval)
• Artillery Guns,
Underwater
Platforms
• Submarines &
Defence &
Aerospace
Hyderabad
Metro
Corporate
Finance
Corporate
Accounts &
Taxation
Services
L&T Finance
Holdings
L&T Realty
Mindtree
L&T
Infotech
Technology
&
Communication
Smart World
9.50
operations [5][1]
MAHE
Swachh Bharat Abhiyan
• In FY 2022, we have sourced
materials from 2,615 MSME
suppliers
• Our Defence Engineering
business collaborates
extensively with the
Government
• Local sourcing of products and
services
Make in India
Major Government programmes we are associated with:
•⚫3,611 household toilets
constructed under ICDP from
2017-18 using local skills and
materials
LARSEN & TOUBRO
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
194
Statutory Financial
Reports
Statements
⚫855 school toilets constructed
from 2015-16
•27,000+ children trained in
using toilets, cleanliness and
hygiene from 2015-16
• Community-based monitoring
committees ensured that
these villages became open
defecation free
• Swajal Yojana under Rural
Development Ministry: Water
shed development programme
under ICDP
• National Skill Development
Mission- L&T CSTI and Skill
Development Academy (SDA)
at Madh
Development Mission
National Skill
Integrated Child Development
scheme: Improving quality of
services at Anganwadi and
capacity building of anganwadi
workers
•
• National Family planning
Programme: Contraceptive
services made available at L&T
Health Centres
• Revised National TB Control
Programme (RNTCP) at L&T TB
Centre at Andheri
• National AIDS Control
Programme (NACP), L&T ART
centre at Andheri
National Health Mission
Irrigation Benefit Programme-
Drip irrigation in ICDP
Sinchayee Yojana: Accelerated
Pradhan Mantri Krishi
programme under ICDP
Mission (NRLM): SHG
• National Rural Livelihood
We work closely with the Government of India as well
as local governments during the regular course of
our operations. We abide by the laws of the land and
compliance is non-negotiable. With several international
associations, we participate in national and international
policy formulation and economic forums. We also
participate in several Government schemes to help enhance
the lives of the communities we work with.
• Sarva Shiksha Abhiyan (SSA)
- Community pre school
programmes and community
learning centres preventing
dropouts and ensuring
enrolment
Government
At L&T, our focus is on maintaining and enhancing our
relationships with suppliers, contractors and service providers
to drive mutual growth. These include raw material vendors,
machine suppliers and contract workers. We engage with
them regularly through partner meets. We have established
an e-procurement model for paperless buying and an
e-tendering system is used for information flow and reverse
auctioning. We trained more than 5 lakh vendors, dealers,
sub-contractors and workers in FY 2021-2022.
GIC India
1.8
Fidelity Investments
1.8
ICICI Prudential Mutual Fund
1.8
1.7
NPS Trust (India)
HDFC Mutual Fund
GIC Singapore
2.5
11.9
Sum of % Equity
LIC
2.3
SBI Mutual Fund
1.6
ICICI Prudential Life Insurance
Suppliers and contractors
Our constant endeavour is to provide our customers with a
superior experience at every stage of their association with
us. Innovation - across products, projects, processes and
customer servicing - enables us to create value that can set
a benchmark for the industry to emulate. Some of our major
clients include State and Central Government departments,
ministries, and local municipal bodies as well. We engage
with our customers regularly through various modes of
communication to get their feedback and suggestions and
understand their requirements. Our Customer Satisfaction
Score is 89% during FY 2021-2022. Further details have also
been provided in BRSR Principle 4-Q2 and Principle 9.
//////
Customers
Value distributed in FY 2021-22
*1,019 Bn
Nippon Mutual Fund
SBI Life Insurance
1.0
1.0
1.0
Franklin Mutual Fund
1.2
Kotak Mutual Fund
1.3
Our Code of Conduct has been revamped and includes
compliance with environmental regulations, health and
safety, labour practices, human rights, ethical behaviour and
transparency in business processes. As at March 31, 2022,
around 65,000 vendors have signed the Code of Conduct
(CoC). Suppliers are assessed based on their environment
and social performance during vendor registration and on-
boarding. Further details have also been covered in BRSR
Principle 5 and 6.
Investors
• STEM Initiative of National
Science and Technology
Communication Council and
the Department of Science
and Technology, Government
of India- STEM Education
Programme-Engineering Futures
National Smart Cities Mission
- Brand Management
- Quality of Products and Project Delivery
· Data Security, Privacy, and Cyber Security
- Climate Action
- Talent Management-Attraction,
Retention & Development
- Business Ethics
- Social Engagement & Impact
- Corporate Governance
KEY MATERIAL ISSUES IMPACTED
SDGS IMPACTED
SO-II SO-III SO-IV SO-V
SE-3
SO-I
STRATEGIES IMPACTED
– Customer Experience and Satisfaction
1 Excluding Exceptional items and Discontinued operations
197
Integrated Annual Report 2021-22
*30.91 Bn
PAT²
*78.79 Bn
Turnover
*1,010.00 Bn
Output Metrics
Gross Debt to Equity ratio
0.3x
Net Fixed Assets³
*96.96 Bn
Net Current Assets
*344.50 Bn
Order Book
*3,155.67 Bn
Input Metrics
INTERNATIONAL ORDER INFLOW GROWTH
Interventions during the year include:
62%
1
Manufacturing shops for space launch vehicles at Powai
and Coimbatore
Aerospace
11.Early Warning Dissemination System (EWDS) helped Odisha and
Andhra Pradesh Governments during Cyclone Yaas
10.JHARNET 2.0 (Government of Jharkhand)
9. BBNL (Bharat Broadband Network) Bharat Net Project [High speed
internet connectivity in rural Maharashtra]
8. Jhansi Smart City
195
7. Patna Smart City
5. Raipur Smart City
4. Mumbai City Surveillance
3. Prayagraj Smart City
2. Vizag Smart City
1. Hyderabad City Surveillance and ITMS project
The Smart World & Communication business leverages its technical
prowess to solve problems through smart, scalable solutions for
security, urban services, traffic, transportation, utilities and
digital connectivity.
6. Moradabad Smart City
196
Integrated Annual Report 2021-22
FINANCIAL
CAPITAL
28%
KEY HIGHLIGHTS OF FY 2021-22
LARSEN & TOUBRO
Statements
Reports
Report
Discussion and Analysis
Statutory Financial
Integrated
Management
Corporate
Overview
-
=
S
L&T's financial capital helps it create
a solid foundation. The Company has
created a strong balance sheet with
strong linkages to economic growth
that can help India reduce external
dependencies and enhance self-reliance.
L&T has judiciously managed its capital
structure, helping the Company to
counter risks effectively. Despite the
size of its business, L&T has been able to
maintain growth. Financial prudence has
helped the Company navigate its way
through the challenging period
of the COVID-19 pandemic.
PAT GROWTH
Dividend4
We follow a policy of engaging with all stakeholders regularly
and keep them informed of evolving developments in the
organisation. Our objective is to gain insights into their
perspectives, get clarity on 'pain points' and craft the way
forward collaboratively. Our institutional investors include:
We have always laid emphasis on
building enduring bonds of trust
with our stakeholders. These include
customers, shareholders, employees,
bankers, business partners, Central
and State Governments and the
communities we interact with. We
believe that enduring relationships with
all stakeholders provide us with insights
that help us review and progressively
refine our strategies to create long-term
value for all.
Statutory
Integrated
Management
Corporate
Overview
190
Extra-curricular activities are also conducted to help the
overall development of children and also retain their
motivation to participate in academic activities.
Financial
Students are grouped as per their learning levels and progress
is monitored through a baseline and end line tests.
Pre-school Community Balwadi Centres: Set up in the
community to help children become school-ready and
create awareness among parents to enrol their children
in schools.
Providing adequate school infrastructure motivates children to
come to school, in turn improving attendance and increasing
the students' interest in learning. Building classrooms,
separate washrooms for boys and girls, providing books
for the library, and improving overall infrastructure of the
schools in different CSR locations across India are some of the
activities that are executed under the School Infrastructure
initiative.
Strengthening school infrastructure for creating a
better learning environment
Achievement: His idea of a 'Pushing Stand Trolley
Wheelchair' as a participant of MANAK was featured
in the 39,263 ideas shortlisted by the Department of
Science and Technology across the country.
Name: J. Subash, part of the Engineering
Futures Programme
An idea can touch many lives
Community Learning Centres: Provide remedial teaching
for the students who have limited opportunities for receiving
guidance from their homes. The classes are run after school
hours and on weekends in the community areas or in public
places like gardens or parks. The sessions are conducted
either by trained volunteers or project staff.
LARSEN & TOUBRO
Reports
Statements
✓
Intensive Care Unit
✓
Low risk and specialised surgical services
✓
Consultation services; OPD care
✓
Community Health Centre
The Company set up its first Health Centre at Andheri in Mumbai in 1967. At present, L&T has ten Community Health Centres
operational at Chennai, Kattupalli, Coimbatore, Thane, Lonavala, Surat, Vadodara, and three Centres in Mumbai. Additionally,
L&T also runs artificial kidney dialysis clinics for the underprivileged at its Health Centres in Mumbai, Thane, Vadodara, Surat,
and Chennai. L&T Mumbai's Anti-Retroviral Therapy (ART) centre conducts HIV/AIDS awareness camps, provides medical support
along with therapy, counselling, and testing. Comprehensive TB related treatment is provided in Mumbai including individualised
treatment OPD, check-up, diagnostics, medicines and nutrition support, home visits and counselling. The Health Centre in Mumbai
provides infertility treatment services free of cost for the underprivileged communities. The Company also has a well-equipped
child guidance clinic in Mumbai in addition to parent counselling. Major services offered are:
HEALTH
beneficiaries through our
education interventions
this year
260,295
community to ensure that the children get access to quality
reading material in various languages namely, Marathi,
Hindi, and English. During the pandemic, e-books were
distributed, followed with the physical distribution of books
in the community and creating library groups, containing
5-6 children. The staff also conducted learning activities to
improve the learning outcomes of children.
The Library Programme was implemented in the
Discussion and Analysis Report
• In the national level competition – MANAK Science Awards,
conducted by Department of Science and Technology,
Govt of India, 198 project ideas from 83 STEM schools
were submitted, of which 12 ideas got selected and were
awarded 10,000 for developing their prototype
Day care and inter-patient department
• 17,158 (100%) parents gave feedback on the remote
learning experience and encouraged children to participate
in the project
•
Saajhi Shiksha
L&T's education programmes are the key to promoting social
upliftment and inclusive development in the country. The
Company has undertaken a variety of initiatives to provide
infrastructure to schools that lack adequate resources. It also
strives to improve the quality of instruction and learning for
the children.
EDUCATION
परियोजना
"अपना पुस्तकालय
Opening a Community Learning Resource centre has
been one of the key interventions of Saajhi Shikshas' after
COVID-19. The project, in collaboration with the Rajasthan
State Commission for Protection of Child Rights, launched a
helpline number in the name of 'UMEED' to provide psycho-
social care to the children and parents of the community.
With the aim of reducing mental stress and providing proper
psychological care, the project team linked children and
parents on the UMEED helpline platform. In the initial six
months of FY 2022, about 300+ parents and children have
been able to connect and benefit from the UMEED helpline.
Resource centres
Aim: Inclusive and quality education for marginalised
children aged between 3-18 years
Institutionalising Community Learning
Enhancing quality of life
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Integrated
Report
Discussion and Analysis
Overview
L&T continued to support interventions that aimed at
enhancement of education and health services in the same
locations to further improve the quality of people's lives.
Location: Bhim Block, Rajsamand, Rajasthan,
Impact: Implemented in 19 schools and six
Anganwadi Centres.
Intervention: Establish Learning Resource Centres to
support the learning continuity of children
Impact: Engagement with 263 children through a
team of community volunteers, three new Learning
Resource Centres launched, 105 children were freshly
enrolled, 16,384 library books checked out from
these centres
Restoring health of children
• 4,852 (30%) students were able to perform STEM activities
• 9,603 (56%) students participated in the remote learning
programme
• Trained 300 EF teachers (100%) equipped with remote
learning strategy and methodologies and conducted online
classes for students
Impact of strategies adopted
HI CUAL CAMERA
NOTES PRO
RED
Integrated Annual Report 2021-22
189
Community-level STEM Model-making sessions: The
project team carried resources on field and conducted STEM
model-making sessions with students. 2,294 students from
four locations who did not have proper internet connection/
smartphones were reached out. All the models were aligned
with the online classes going on in Science and Math.
Since 2019, L&T has introduced a STEM (Science Technology
Engineering Math) Education Project called 'Engineering Futures'
(EF). Operating in resource-poor Government schools around
four campus areas in Vadodara, Hazira, Chennai and Faridabad.
This programme helps teach Science and Math through
hands-on models and digital content for better comprehension,
while encouraging curiosity and scientific rigour among the
students of these schools. Each school is equipped with a
computer centre as a dynamic educational laboratory that builds
the capacity of teachers to utilise technology and empowers
students with practical digital literacy skills.
'Engineering Futures'- L&T's STEM
Education Programme
Once the schools reopened, most of our education projects
initiated a blended approach of teaching and learning, where
both offline and online classes were conducted. With this
approach, children coming to school and those who preferred
to stay at home, were both covered.
During and after COVID-19 pandemic
Under Nutrition and Health care, the project has initiated
work with 10 balwadis at Sewantri in Rajasthan. Through
these Balwadis, 241 (121 girls, 120 boys) children were able
to get effective care, nutrition, and pre-school education.
Due to access to quality nutrition, all severely malnourished
children have recovered, and their health has improved.
7,555 (44%) students who do not have access to
smartphones were reached out through community visits
and worksheets
Shareholders and investors
✓
Mobile Medical Unit
Farmer's son to Site
Supervisor
rural and urban youth, along with women and physically
challenged persons from underprivileged communities, are
being imparted skills that will improve their employability
14,587
Vocational training for women: L&T introduced vocational
training programmes in the areas of tailoring, beautician
skills, home-nursing and food processing for women from
underprivileged communities.
Discussion and Analysis Report
Statements
Name: Mr. Somnath
Reports
Financial
Statutory
Integrated
Management
Corporate
Overview
192
LARSEN & TOUBRO
Challenge: Could not pursue
higher education due to
financial difficulties
RELATIONSHIP CAPITAL
Integrated Annual Report 2021-22
193
Impact: Encouraging self-employment among women
by introducing various skill development programmes
like tailoring, embroidery etc.
Location: Kolkata
Self-employment thought Self-development
Name: Initiative DAWN
Case Study
L&T-ites volunteered to reach more than 12,800 people,
clocking more than 37,119 volunteering hours.
4,900
L&T-eering: Employee volunteering initiative
L&T-eers continued to engage with children and youth
through virtual means - teaching, mentoring, reading out
stories, building life skills, conducting educational quizzes,
support with sessions on psycho-social care and awareness
sessions on environment, sanitation, safety and other issues.
L&Teers worked towards mentoring 6th-8th grade children
in rural schools to create Science Technology Engineering
Math (STEM) models for state level competitions. Several
environment related activities included tree plantations,
cleanliness drives and creation of artificial nest boxes installed
at public gardens and parks were undertaken. Blood donation
is part of the L&T heritage and this year 18,474 units of blood
was donated.
In FY 2021-22, the centre has had 125 students
and successfully provided basic training to 74 unique
beneficiaries of which 34 are women (46%). While out of
the 51 advance batch trainees, 23 (45%) got placed with
various employers.
Multi Skilling Training Centre (MSTC) at Vizag
MSTC is a skill-building Centre established by L&T under
its CSR initiatives for actively bridging the gap between
vocational education and industry needs. The centre helps
in improving the employability of fresh ITI technicians, by
providing structured skill training by L&T qualified trainers.
Impact: Presently appointed as
Site Supervisor of rebars with a
salary of 18,000+
CSTI for 3 Months
Intervention: Introduced to
of enrollees were employed
Diagnostic services
63%
6,897
Specialised free breast examination clinics organised at
three locations at Kannur
•
• Model for moulding a healthy community of
women population
• Provided intensive training to 300 women volunteers
this year in comprehensive Breast Cancer Control
• Initiated in the year 2016-17 by Malabar Cancer
Care Society
Breast Cancer Brigade Project (BCB) in
Kannur, Kerala
• Conducted 183 free specialised clinics for women
reported to have symptoms based on BSE (Breast Self-
Examination) and recommended necessary cases for
Mammography test
Case Study
✓ Dialysis services
✓ Reaching out to unreached population /linking them to other
health services
✓ Counselling
✓ Geriatric care
✓ Health education and promotion
✓ Primary health/medical care at the doorstep
✓ Health promotion and camps
• Conducted four village-level specialised camps
involving Mobile Tele-Medicine unit with facilities of
Mammogram, USG, X-ray, Laboratory, etc.
• 5,515 women benefitted
191
Empowering the differently-abled: L&T's 'Project Neev'
initiative enriches the lives of the differently-abled by offering
specially-designed training programmes.
Industry-oriented training: L&T has collaborated with 27
Industrial Training Institutes (ITIS) across the country.
In L&T's endeavour to achieve inclusive growth, it provides
vocational training courses and other skill building activities
to provide uneducated youth with wage-earning skills. L&T's
Construction Skills Training Institutes (CSTIs) in different parts
of the country, provide free-of-cost training in skills like bar
bending, formwork carpentry, masonry, scaffolding, welding,
and electrical wiring, etc., to rural and urban youth. With an
emphasis on technology and innovation, new technology-
based skill-training courses are introduced in Solar PV
Technician skills, OFC & CCTV installation and maintenance.
Training programmes are conducted at nine CSTIS
operational at Kancheepuram and Pulicat in Tamil Nadu,
Panvel in Maharashtra, Pilkhuwa in Uttar Pradesh, Jadcherla
in Telangana, Cuttack in Orrisa, Attibelle in Karnataka,
Chacharwadi in Gujarat and Serampore in West Bengal.
SKILL DEVELOPMENT
Covid Vaccination camps were also held at three
health centres with public private partnership
model benefitting 47,910 beneficiaries
Through Blood donation camps, 18,474 blood
units were donated to various blood banks across
L&T locations.
Health camps held at remand homes
and orphanges
ROSI
RENATALERO LIMITED
BLOD NATION CA
OOD
BHUBANESWAR
BLOOD
LARSEN & TOUBRO
Integrated Annual Report 2021-22
youth completed various courses at L&T's CSTIS
Management
12.23%
L&T's standalone financials reflect the performance of businesses like Infrastructure, Hydrocarbon,
Power, Heavy Engineering, Defence Engineering and others. The 'others' segment consists of Realty, Construction & Mining
Machinery, Rubber Processing Machinery, Smart World & Communication and Digital Businesses. During the financial year, L&T
Hydrocarbon Engineering Limited, a wholly-owned subsidiary company was merged with the Company pursuant to approval of the
Scheme of Arrangement from National Company Law Tribunal, Mumbai Bench (NCLT) with the appointed date of April 1, 2021.
Financials for FY 2021-22 are consequent to the merger and previous year's figures have accordingly been regrouped.
Return on Net worth
• The Board of Directors has recommended a final dividend
of 22 per equity share for the approval of shareholders -
an increase of 22% per share over the previous year.
• The margin remains stable notwithstanding the headwinds
faced from increasing commodity prices.
• PAT from continuing operations (excluding exceptional
items) registered a substantial growth of 28%. Besides
revenue growth, higher dividend from Subsidiaries
coupled with lower interest cost on reduced borrowings,
facilitated the growth.
• Revenue growth of 16% reflects progress achieved on
execution of robust Order Book.
Corporate
Key highlights of FY 2021-22:
198
4 For FY 2021-22
3 Including ROU assets
• Order Inflow achieved, basis robust growth in international
orders ~62%.
2 Including Exceptional item
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports Statements
LARSEN & TOUBRO
Goals
сл
Ensure inclusive and
quality education,
and promote lifelong
learning opportunities
for all
Welfare teams at the workplace
CEMBER
Achieve gender equality
and empower all women
and girls
GAD SANITATION
QUALITY
EDUCATION
- Health infrastructure strengthening during the COVID-19 pandemic
- Infrastructure support to Anganwadis, PHCs and Hospitals
Ensure availability
178-195
136-147,
178-195
Ensure healthy
lives and promote
wellbeing of people
of all ages
200
– Multi-specialty community health centres providing access to maternal, family welfare,
paediatric and general healthcare
168-177,
Integration with national health programmes
178-195
Health centres offering mental health services, child- guidance clinic and counselling
Mobile health vans and camps for school children, women and elderly from underprivileged
communities
Health awareness for adolescents
Care and counselling programmes for differently-abled children
Blood donation camps
- Training of frontline healthcare workers
-
and sustainable water
Initiatives
sanitation for all
Demonstration of rainwater harvesting system in schools and households
- Developing community-based groups like Village Development Committees and Farmers'
Groups for maintaining the water structures, judicial use of common water resources and
ensuring the villages remain open defecation-free
- Constructing water harvesting structures with contribution from the community and ensuring
their maintenance
-
- Supplementing water bodies to increase ground water level with participation from communities
· Achieving water adequacy for drinking, sanitation and agriculture through watershed projects, 136-147,
as part of Integrated Community Development Programmes (ICDP)
178-195
25.286
168-177,
178-195
178-195
Page number(s)
Formation of women's Self-help Groups (SHGs), ensuring participation and decision making in
village development and school management committees across villages
skill development, vocational training programmes and market linkages
-
- Creating livelihood opportunities and encouraging entrepreneurship among women through
Motivate parents to encourage girls to participate in STEM activities and exposure visits
Toilet facilities in schools for girls
Awareness on women's health and menstrual hygiene
School infrastructure development for creating a conducive learning environment, including
construction of school sanitation facilities
- Making Government schools accessible by providing technology-enabled education
(e-learning facilities)
Mini science centres and laboratories to develop interest in science subjects
- Introducing and strengthening STEM (Science, Technology, Engineering and Math) Education
programme in Government schools to unlock scientific and technological potential of children
and encourage their curiosity, scientific vigour and creativity.
Teacher training programme to impart effective pedagogy
- Enhancing curriculum and impacting classroom learning through nurturing talent
management and
- Promoting girl child education
- Community-based learning centres with parental involvement to prevent dropouts and prepare
children for Board exams
-
-Specific interventions to integrate children at risk of dropping-out and out-of-school children
into school
Prepare indigenous students for admission to various public schools
· Mitigating digital divide by providing digitally-enabled devices to the underprivileged children
or visiting students at their homes to provide study material in print form
- Making water available to doorstep and drudgery reduction initiatives
- Life skills and extra-curricular activities for overall development of students
148-157,
158-167,
168-177,
Livestock management and training in dairy and poultry business
Provide food and ration in disasters and crisis situations
Economic Value Generated
1061.71
927.09
Manufacturing, construction and
841.21
721.50
2020-21
operating expenses
73.91
63.88
Payments to providers of capital
Interest
17.54
23.82
Employee wages and benefits
Dividend
2021-22
6 FY 2020-21 excludes special dividend
23.82
63.88
Manufacturing, construction and operating expenses
Dividend
Employee wages and benefits
Interest
Payments to exchequer
Description
Community investments (CSR spend)
= Value Retained
FY 2021-22
42.45
FY 2020-21
37.61
5 Excluding Exceptional items and Discontinued operations
Value Generated - Value Distributed
Page number(s)
30.91
Payments to exchequer
KINGS
End hunger, achieve
food security,
improve nutrition and
sustainable agriculture
Initiatives
- Skilling programmes for youth and migrant labour enables higher wage-earning capacity
Vocational, life skills training and job placements for skilled youth, women and
differently-abled
- Encouraging entrepreneurship among youth, women and differently-abled through training
and promoting Self Help Groups (SHGs)
2
- Increased agricultural income and multi-cropping due to water adequacy
- Training communities in better nutrition practices
- Encouraging sustainable agricultural practices by use of zero budget natural farming, drip
irrigation, indigenous pesticides, seed treatment, balanced dose of fertilisers, discouraging
plantation of water-intensive crops, and introducing horticulture through farm field schools
and demonstrations.
Nutrition awareness campaign and counselling for women, pre-school teachers and school
children from the community
- Addressing malnutrition among children by providing services related to education of mothers,
prevention, early detection and treatment
- Promoting low-cost backyard nutrition gardens and recipe demonstration in rural
communities; training households in incorporating traditional millets and locally-available
low-cost nutritive foods in everyday meals
- Supplementary multi-vitamins / milk at Anganwadis/schools
- Created agro-based livelihood, increasing household incomes
Formation of farmer's groups and market linkages for better crop prices
25.286
End poverty in all
its forms
ON
54.36
53.41
Community investments (CSR spend)
1.32
1.57
Economic Value Retained
POVERTY
42.45
199
Integrated Annual Report 2021-22
| SUSTAINABLE DEVELOPMENT
GOALS (SDGs)
SDGs define global priorities and aspirations for 2030, with objectives to achieve conservation and ecological balance.
The following demonstrate our alignment with SDGs and our initiatives towards climate change mitigation, environmental
conservation and corporate social responsibility.
Goals
37.61
- Training Farmers' Groups in water estimation and budgeting, and to measure water levels and
in GIS-based water management
- Supporting Swachh Bharat Abhiyan
- Sanitation awareness campaigns followed with construction of household toilets and school
toilets, to make rural India 'open-defecation-free'
Felicitation of guests with a Tree Certificate, instead of a floral bouquet - planting a tree for
each certificate
- In-house guidelines on scientific tree plantation and maintenance
Planted 700,000+ saplings in last five years and 150,000+ fully-grown trees are nurtured
across major campuses
Lake clean-up and reserve forest clean-up drives alongside de-silting of water bodies
-
-
- Village level committee to regulate the use of common resources
Rainwater harvesting in schools and households
- Building soil conservation to prevent soil erosion in the ICD programme
Protect, restore and
promote sustainable use
of terrestrial ecosystems,
manage forests, combat
desertification, and halt
land degradation and
biodiversity loss
ON LAND
15
resources for sustainable
development
Conserve the oceans,
seas and marine
136-147
148-157
136-147,
Page number(s)
Goals
13
CLAR
Take urgent action to
combat climate change
and its impacts
14
LIFE
- Optimising the use of natural resources
Initiatives
Measurable targets for reducing energy and carbon intensity at campuses and project sites
Carbon footprint mapping at the organisational level
- Discourage over-exploitation of ground water
- Minimising or avoiding use of chemical fertilisers and preventing degradation of soil quality
- Building capacity of communities to address climate change and its impact
- Alignment with National Action Plan on Climate Change (NAPCC), Government of India
Evaluate business process risk to ensure that negative impacts are avoided /
minimised /controlled
- Climate change mitigation and adaptation initiatives: GHG intensity reduction projects,
promoting the use of renewable energy, green buildings and tree plantation
- Afforestation by creating fast-growing sustainable forest
16
AND STRONG
INSITUTIONS
Value Distributed
927.09
FY 2020-21
1,061.71
FY 2021-22
Value Generated
FY 2021-22
Economic value generated and distributed [in \ Bn]
LARSEN & TOUBRO
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
Statements
LARSEN & TOUBRO
30.91
73.91
Promote peaceful
and inclusive societies
for sustainable
development, provide
access to justice for all
and build effective as
well as accountable
institutions at all levels
17
PARTNERSHAPS
Strengthen the means
of implementation
and revitalize global
17.54
associations for
1.57
53.41
FY 2020-21
841.21
1.32
54.36
sustainable development
Statutory Financial
Reports Statements
Integrated
Report
Management
Discussion and Analysis
- Television and digital media workshops for youth empowerment
- Empowering workforce through learning, development and welfare initiatives
Page number(s)
168-177,
178-195,
196-199
Build resilient
- Certified computer courses for students
infrastructure, promote
inclusive and sustainable
industrialisation and
foster innovation
REDUCED
INEQUALITIES
- Training rural youth in ethno-veterinary care and Natural Resource Management
Embolden automation with focus on application for patents/Intellectual Property Rights (IPR) to 148-157,
inspire innovation
158-167,
196-199
-
10
Resilient infrastructure creation and sustainable industrialisation for our clients, through our
offerings i.e. green product and service portfolio
- Skilling youth through training institutes
- Construction Skills Training Institutes for skilling youth
- Providing solar lamps to the underprivileged communities and with back-up for communities
and schools
136-147,
148-157
Ensure access to
affordable, reliable,
Green products and services portfolio for customers
- Promoting solar agricultural fences in villages
sustainable energy for all - Promoting bio-gas plants
Transform fresh ITI candidates to multi-skilled workers
201
Goals
DECENT WORK AND
ECONOMIC GROWTH
Promote inclusive and
sustainable economic
growth, full and
productive employment
and decent work for all
Initiatives
- Employable skill training and placements for youth from underprivileged communities,
physically and mentally-challenged persons
Integrated Annual Report 2021-22
-
Focus on 'Make in India' initiatives to create employment opportunities and import substitution
Merit-based hiring with emphasis on equal opportunities
Sustainable ICD Programme for water-stressed rural settlements
- Promoting climate resilient and sustainable agricultural practices, reducing the input cost of
crops and increasing the yield by promoting organic methods of cultivation.
TIMEAUTEN
ALL PRODUCTION
- Implement material conservation initiatives, energy efficiency advancement projects and
sustainable production practices
136-147,
148-157
12
Our cumulative energy conservation over the years is more than 400,000 GJ.
We proactively utilise flash granular blast furnace slag and crushed sand in our construction
projects and recycled steel wherever permissible.
Ensure sustainable
consumption and
production patterns
- Discouraging plantation of water-intensive crops, use of indigenous pesticides, seed treatment,
balanced dose of fertilisers
- Multi-cropping among farmers on increase
202
Corporate
Overview
-
-
136-147,
158-167
Road barricades and guards to control traffic areas around project sites, especially busy
junctions in the city, along with road safety awareness campaigns
168-177,
178-195
Established policies to empower employees irrespective of gender, age, disability, race
and religion
Reduce inequality within
and among countries
Make cities and human
settlements inclusive,
safe, resilient and
sustainable
- Garden maintenance in cities and flood relief interventions
- Encouraging participation of vulnerable groups like women and the deprived in rural
development committees of developmental projects supported by the Company
Fairness in distribution of resources within villages under ICDP to circulate the benefit to
vulnerable communities
-
-
-
Prioritise needs of marginal and poor farmers in rural development programmes
Create comprehensive and smart technology solutions for critical infrastructure, spanning
airports, power plants, metro rail and IT parks
Offer specialised turnkey GIS-based network management solutions for city surveillance, traffic
monitoring and analysis
-
- Increasing renewable energy use within campuses and project sites
721.50
Disclosure
Encourage democratic functioning and financial transparency in conduct of SHG business
136-147,
178-195
- Village level committee and democratic process formulated for maintenance, usage and
monitoring the sustainability of ICDP interventions
136-147,
158-167
We have complied with the DNV Code of Conduct² during the assurance engagement and
maintain independence where required by relevant ethical requirements. This engagement
work was carried out by an independent team of sustainability assurance professionals. We
were not involved in the preparation of any statements or data included in the BRSR except for
this Assurance Statement and Management Report. DNV maintains complete impartiality
toward stakeholders interviewed during the assurance process. We did not provide any
services to L&T and its subsidiaries in the scope of assurance for the reporting period that
could compromise the independence or impartiality of our work.
For DNV Business Assurance India Private Limited,
Radhakrish Digitally signed by
nan, Kiran
Kiran Radhakrishnan
Lead Verifier
- Associating with industry forums and Government bodies for promoting
sustainable development
Radhakrishnan, Kiran
13:32:56 +05'30'
DNV Business Assurance India Private
Limited, India.
8th July 2022, Bengaluru, India
Digitally signed by
Vadakepatth Vadakepatth,
Nandkumar
Nandkumar Date: 2022.07.08
13:36:39 +05'30'
Vadakepatth Nandkumar
Technical Reviewer
Date: 2022.07.08
DNV Business Assurance India Private
Limited, India.
- Collaboration and partnership with state and national Governments, NGOs and ITIS
- Sharing best practices with stakeholders
203
138, 139, 143, 144
138, 139, 143
196-199
180-193
Page No
196-199
303-3 Water withdrawal
303-5 Water consumption
303-2 Management of water discharge-related impacts
302-4 Reduction of energy consumption
302-3 Energy intensity
302-1 Energy consumption within the organization
178-195
301-2 Recycled input materials used
201-1 Direct economic value generated and distributed
203-1 Infrastructure investments and services supported
203-2 Significant indirect economic impacts
GRI 303: Water and Effluents 2018
GRI 302: Energy 2016
GRI 301: Materials 2016
GRI 203: Indirect Economic Impacts 2016
GRI 201: Economic Performance 2016
GRI Standard
This Integrated Report is aligned to the GRI Standards and the mapping is as follows:
| GRI CONTENT INDEX
Integrated Annual Report 2021-22
301-1 Materials used by weight or volume
DNV Business Assurance India Private Limited is part of DNV - Business Assurance, a global provider of certification, verification,
assessment and training services, helping customers to build sustainable business performance. www.dnv.com
2 The DNV Code of Conduct is available on request from www.dnv.com (https://www.dnv.com/about/in-brief/corporate-governance.html)
Project No.: PRJN-375518
Page 3 of 4
889.063
Τ
615,035
T
274,028
T
0.93
T
4,976,909
CO2e Scope 3 (Cat-1: Purchased goods and services,
Cat-5: Waste generated in operations {solid waste},
Cat-6: Business travel and Cat-7: Employee commute)
Water
KT
Water Withdrawal
Total
Water Withdrawal - From river / lakes
Water Withdrawal
-
From rain water
Water Withdrawal – From ground water
Σ Σ Σ Σ
M3
9,602,372
M³
-
1,281,464
GJ
8,365,802
207
Integrated Annual Report 2021-22
208
Annexure 1: Verified Performance Data ·
-
2021 - 22
Environmental Compliance
Environmental Regulatory Non-Compliances Resulting in
Fines or Prosecutions
Energy (Renewable)
Indirect energy consumption
Energy (Non Renewable)
Direct energy consumption (1)
Indirect energy consumption (2)
Greenhouse Gases (3)
CO2e - Total
CO2e Scope 1
CO2 - Scope 2
N2O
Scope 1
No. of cases
GJ
2 (Transportation
Infrastructure IC)
127,129
GJ
138, 139, 140
140
2,001,310
138, 139, 140
142
Project No.: PRJN-375518
1 The VeriSustain protocol is based on the principles of various assurance standards including International Standard on Assurance
Engagements 3000 (ISAE 3000) Revised (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and
the GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience;
and is available on request from www.dnv.com
-
The scope of the verification includes the identified sustainability performance data (detailed in
Annexure 1) for the selected boundary of L&T and its twelve (12) Independent Companies
(`ICs') in India for the period 1st April 2021 to 31st March 2022 as indicated in the BRSR, in
Scope, Boundary and Limitations of Verification
The intended user of this Verification Statement is the management of the Company (the
'Management'). The team is responsible for all data as well as related assumptions and
calculation methodologies as information provided to us for verification, as well as the
processes for collecting, analysing and reporting the sustainability performance data in its
BRSR as part of its Annual Integrated Report. Our verification engagement is based on the
assumption that the data and information provided to us is complete and true and free from
material misstatement. We expressly disclaim any liability or co-responsibility for any decision
a person or entity would make based on this verification statement. This exercise was carried
out during April 2022 - July 2022 by a team of sustainability professionals of DNV.
Our engagement has been carried out based on DNV's assurance methodology VeriSustain™¹,
(customised verification procedure) as mutually agreed with L&T for the performance data
detailed in Annexure 1 and provides a limited level of verification while applying a ±5%
materiality threshold for errors and omissions.
number of corporate social responsibility (CSR) beneficiaries, and CSR expenditure.
for disclosure in the Business Responsibility and Sustainability Report of its Annual Integrated
Report of FY 2021-22.
Number of permanent employees (male and female); and,
403-9 Work-related injuries from GRI 403: Occupational Health and Safety 2018, and
number of safety training hours;
Page 1 of 4
307-1 Non-compliance with environmental laws and regulations from GRI 307:
Environmental Compliance 2016;
•
•
•
306-3 Waste generated from GRI 306: Waste 2020;
•
303-3 Water withdrawal and 303-5 - Water consumption from GRI 303: Water and
Effluents 2018;
-
302-1 - Energy consumption within the organization from GRI 302: Energy 2016;
305-1 Direct (Scope 1) GHG emissions, 305-2 Energy indirect (Scope 2) GHG
emissions, and GRI 305-3; Other indirect (Scope 3) GHG emissions from GRI 305:
Emissions 2016;
-
-
•
•
205
206
DNV applies its own management standards and compliance policies for quality control, in
accordance with ISO IEC 17021:2015 Conformity Assessment Requirements for bodies
providing audit and certification of management systems, and accordingly maintains a
comprehensive system of quality control including documented policies and procedures
regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.
-
Our Competence and Independence
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
Page 2 of 4
Integrated Annual Report 2021-22
Project No.: PRJN-375518
Conclusions
Verification of sample data to check accuracy and reliability for a limited level of
customised verification through interaction with data owners.
Review of systems and procedures for data collection and aggregation, that is, the
calculation methodology, assumptions of the selected consolidated sustainability
performance data (Annexure-1) prepared for the Company's internal reporting purposes
and to be included in the BRSR which forms part of its Annual Integrated Report.
Assessed the robustness of the data management systems, data accuracy, data flow
and controls for the reported sustainability performance data, as well as the processes
for data consolidation in context to the principle of Completeness as per DNV's
VeriSustain.
Review of the data management processes that L&T has in place to report the identified
sustainability data. We examined and reviewed supporting evidence such as supporting
documents, secondary data and other information made available by L&T to us.
Carried out online and on-site verification for sample ICs of the Company - (i) Buildings
and Factories, (ii) Transportation Infrastructure, (iii) Heavy Civil Infrastructure (iv)
Power Transmission and Distribution, (v) Water and Effluent Treatment, (vi) Minerals
and Metals, (vii) Energy Hydrocarbon, (viii) Energy Power, (ix) Heavy Engineering, (x)
Defence, (xi) L&T Realty, and, (xii) Smart World and Communication and offices
(Chennai Office Campus, Leadership Development Academy at Lonavala, AMN Tower,
L&T House, and Knowledge City) to review the processes and systems for preparing site
level sustainability data and implementation of sustainability strategy. DNV was free to
choose sites for conducting our sustainability performance data verification.
•
•
During the verification, we adopted a risk-based approach, and a sample-based verification
was carried out for a limited level of verification as per DNV VeriSustain and as agreed with
L&T. We undertook the following activities:
Verification Methodology
During the verification process, we did not come across limitations to the scope of the agreed
verification engagement. This verification engagement did not involve any engagement with
external stakeholders. The verification was conducted based on desk reviews, site visits to
sample ICs, interactions with data owners and other publicly available data made available to
us. The review of management approach and other qualitative disclosures was not carried out
as part of this engagement. The verification of reported data on expenditure towards CSR
activities is not within the scope of our verification exercise as a separate audit is carried out
by L&T's statutory financial auditors and reported in L&T's Annual Integrated Report.
accordance with the scope of work agreed upon with the management of the Company
including the sampling plan to arrive at our conclusion.
In our opinion, on the basis of limited level of verification undertaken and mutually agreed
scope of work, nothing has come to our attention that would cause us not to believe that the
data verified as listed in Annexure - 1, is not a reliable and accurate representation of L&T's
selected performance data. Some of the data inaccuracies identified during the verification
process were found to be attributable to transcription, interpretation and aggregation errors,
and the errors have been communicated for correction and corrected.
•
DNV Business Assurance India Private Limited ('DNV') has been commissioned by the
management of L&T Limited ('L&T' or the 'Company', Corporate Identity Number:
L99999MH1946PLC004768) to carry out an independent customised verification of selected
sustainability performance data related to Energy and Greenhouse Gas Emissions, Water,
Waste, Occupational Health and Safety, Employees, and Corporate Social Responsibility. These
performance datasets have been prepared by L&T using topic-specific Standards from the
Global Reporting Initiative ('GRI) Standards ('GRI Standards'), that is,
Introduction
142
306-4 Waste diverted from disposal
GRI 306: Waste 2020
142
306-3 Waste generated
significant air emissions
141
305-7 Nitrogen oxides (NOx), sulphur oxides (SOX), and other
141
305-6 Emissions of ozone-depleting substances (ODS)
GRI 401: Employment 2016
132
GRI 305: Emissions 2016
141
305-4 GHG emissions intensity
141
305-3 Other indirect (Scope 3) GHG emissions
141
305-2 Energy indirect (Scope 2) GHG emissions
141
305-1 Direct (Scope 1) GHG emissions
138,142
305-5 Reduction of GHG emissions
401-1 New employee hires and employee turnover
174
403-1 Occupational health and safety management system
LARSEN & TOUBRO
Independent Verification Statement
| ASSURANCE STATEMENT
Statements
Integrated Statutory Financial
Reports
Discussion and Analysis Report
Management
Corporate
Overview
204
180-193
174
169
405-2 Ratio of basic salary and remuneration of women to men
413-1 Operations with local community engagement, impact
assessments, and development programs
404-1 Average hours of training per year per employee
GRI 413: Local Communities 2016
GRI 405: Diversity and Equal Opportunity 2016
GRI 404: Training and Education 2016
175
175-177
175-177
403-2 Hazard identification, risk assessment, and incident investigation
403-7 Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships
403-9 Work-related injuries
GRI 403: Occupational Health and Safety 2018
175-177
142
M³
Water Withdrawal - From municipal sources
M3
Number of near miss accidents
Number of safety training hours
Employees
Number of permanent male employees
No. of cases
1,154,859,499
161,946
8,769
No. of cases
Hours
37,674
4,969,092
Number
Number of permanent female employees
CSR(6)
Number of beneficiaries impacted
Number
42,618
2,997
CSR Expenditure
1,127,544
136
Note 1: Direct energy: Consumption is reported based on amount of fuel procured and not consumed as required under GRI topic-specific standard 302-1.
L&T assumes that procurement = consumption.
Note 2: Indirect energy: In case of certain ICs (Smart World and Communications, and Building and Factories) amount of indirect energy consumed is
calculated by the cost of total grid electricity consumed divided by an average unit cost decided by each IC.
Note 3: Emissions due to SF6 and CH4 are not monitored and reported. Types of Ozone Depleting Substances have not been reported by type (HFC, CFC).
Note 4: Hazardous and non-hazardous waste classification are not carried out based on types (solid and liquid) as required under GRI topic-specific Standard
306-3.
Note 5: Reporting on Occupational Health and Safety covers entire workforce covering permanent employees and on-contract workers.
Note 6: CSR amount spent is not within the scope of our verification exercise as a separate verification is carried out by L&T's statutory financial auditors and
reported in the Annual Integrated Report.
Note 7: Detailed comments on assumptions, methodologies and estimations reviewed as part of DNV's verification are provided in DNV's Management Report.
1,369,437
Number of first aid cases
Days
Days
Number
Crore INR
Number of man days worked
82,364
Number of man days lost
M³
3,251,265
-
M3
2,897,996
M³
9,410,093
Waste(4)
Hazardous waste
-
Water Withdrawal – From other sources (Tankers)
Water (fresh) consumed - Total
T
Generated
Number of fatalities
132
25
Number of reportable accidents
No. of cases
2,464
48,995
T
Non-hazardous waste - Generated
Occupational Health and Safety (5)
No. of cases
70.0
entity
No
Subsidiary
Larsen & Toubro Heavy Engineering LLC
65
No
Does the entity indicated
at column A, participate in
the Business Responsibility
initiatives of the listed
entity? (Yes/No)
Larsen & Toubro Electromech LLC
70.0
Subsidiary
64
Associate
Indicate
whether
Subsidiary/
66
(A)
No.
% of shares
held by listed
Larsen & Toubro Infotech Canada Limited
74.0
74.0
Larsen & Toubro Infotech Norge AS
Name of the subsidiary/ associate companies
70
No
74.0
Subsidiary
Larsen & Toubro Infotech LLC
69
Subsidiary
No*
Larsen & Toubro Infotech Limited
68
No
74.0
Subsidiary
Larsen & Toubro Infotech Gmbh
67
No
Subsidiary
S.
L&T-Sargent & Lundy Limited
Statements
Subsidiary
Subsidiary
61
51.0
L&T-MHI Power Turbine Generators Private Limited Subsidiary
60
51.0
Businesses should uphold the effective abolition of
child labour.
50.0
Businesses should uphold the elimination of all forms of
forced and compulsory labour.
Businesses should make sure that they are not complicit in
human rights abuses.
Environment
Labour
Labour
5
Labour
4
st
Businesses should uphold the freedom of association and
the effective recognition of the right to
collective bargaining.
62
Larsen & Toubro (East Asia) Sdn. Bhd.
Subsidiary
Reports
Statutory Financial
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
No
No
No
No
No
No
No
z z zz zzz
100.0
Subsidiary
L&T Hydrocarbon Saudi Company LLC
63
30.0
LARSEN & TOUBRO
74.0
Larsen & Toubro T&D SA (Pty) Limited
Larsen & Toubro International FZE
128-129, 225, 237, 238, 239
128-129, 225, 237, 238, 239
239, 248
Businesses should support a precautionary approach to
environmental challenges.
SECTION A: GENERAL DISCLOSURES
I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity- L99999MH1946PLC004768
Subsidiary
128, 130, 228
82 Nabha Power Limited
Subsidiary
Mudit Cement Private Limited
81
51.0
Subsidiary
LTIDPL INDVIT Services Limited
80
56.6
66.2
Subsidiary
6
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORTING
Labour
7
8
Environment
Businesses should undertake initiatives to promote greater
environmental responsibility.
136-147, 240-248
9
Environment
136-147, 240-248
10
Anti-Corruption
Businesses should encourage the development and
diffusion of environmentally friendly technologies.
Businesses should work against corruption in all its forms,
including extortion and bribery.
145
128, 129, 224
NK
209
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
10
71
LTH Milcom Private Limited
Businesses should uphold the elimination of discrimination
in respect of employment and occupation.
Subsidiary
Larsen & Toubro Oman LLC
74
98.7
Subsidiary
Larsen & Toubro LLC
73
Contracting Company, With Limited Liability
65.0
No
No
은은 은
49.0
Subsidiary
Larsen & Toubro Kuwait Construction General
72
100.0
Subsidiary
No
79
75
Subsidiary
75.0
Subsidiary
Larsen Toubro Arabia LLC
78
80 ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞
No
No
No
Larsen & Toubro Saudi Arabia LLC
No
51.5
Subsidiary
Larsen And Toubro Infotech South Africa (Pty)
Limited
77
72.5
Subsidiary
76
100.0
z z z z z
3
Integrated Annual Report 2021-22
2
17
L&T Realty Developers Limited
Subsidiary
100.0
No
18
L&T Construction Equipment Limited
Subsidiary
No
100.0
19
L&T Deccan Tollways Limited
Subsidiary
52.8
No
20
L&T Innovation Campus (Chennai) Limited
Subsidiary
No
100.0
51.0
L&T Chennai-Tada Tollway Limited
51.0
No
13
L&T Arunachal Hydropower Limited
Subsidiary
100.0
14 L&T Aviation Services Private Limited
Subsidiary
Subsidiary
100.0
L&T Capital Company Limited
Subsidiary
100.0
은은 은은
No
No
No
16
15
Subsidiary
NO
21
No
No
No
213
Integrated Annual Report 2021-22
214
Business Responsibility & Sustainability Reporting
S.
No
Name of the subsidiary/ associate companies
(A)
Associate
26
L&T Howden Private Limited
Subsidiary
27
L&T Information Technology Services (Shanghai)
Subsidiary
No.
No
은은 은은
Subsidiary
L&T Finance Holdings Limited
Subsidiary
66.2
No*
22
L&T Finance Limited
Subsidiary
66.2
100.0
23
Subsidiary
66.2
24
L&T Global Holdings Limited
Subsidiary
100.0
25
L&T Himachal Hydropower Limited
L&T Financial Consultants Limited
Ahmedabad-Maliya Tollway Limited
12
No
S.
No.
Name of the subsidiary/ associate companies
whether
% of shares
held by listed
(A)
Subsidiary/
Associate
entity
1
Indicate
Bhilai Power Supply Company Limited
99.9
Does the entity indicated
at column A, participate in
the Business Responsibility
initiatives of the listed
entity? (Yes/No)
No
2
Chennai Vision Developers Private Limited
Subsidiary
100.0
3
Subsidiary
Kesun Iron and Steel Company Private Limited #
V. Holding, Subsidiary and Associate Companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies/joint ventures
Management
128-129, 225, 237, 238, 239
128-129, 225, 237, 238, 239
Businesses should support and respect the protection of
internationally proclaimed human rights.
Human Rights
1
Page
Description
Principle Category
Corporate
Overview
Communication on progress
LARSEN & TOUBRO
I
Subsidiary
Statements
Statutory Financial
Reports
Report
Discussion and Analysis
Integrated
| UNITED NATIONS GLOBAL COMPACT
Subsidiary
95.0
4
Graphene Solutions Taiwan Ltd.
Subsidiary
73.9
No
9
Hi-Tech Rock Products & Aggregates Limited
Subsidiary
100.0
8
No
Kudgi Transmission Limited
Subsidiary
51.0
No
11
L&T Hydrocarbon Caspian LLC
Subsidiary
50.0
10
No
73.9
Subsidiary
Esencia Technologies India Private Limited
Subsidiary
73.9
5
Graphene Semiconductors Services Private Limited
Subsidiary
73.9
zzzz
No
No
No
No
6
Graphene Solutions Sdn. Bhd
Subsidiary
73.9
No
7
Graphene Solutions Pte Ltd
Human Rights
L&T-MHI Power Boilers Private Limited
No
100.0
52,155
48,917
94%
3,238
6%
WORKERS
4.
Permanent (F)
3,307
3,304
99.9%
3
Total employees (D + E)
0.1%
Other than Permanent (G)
196,755
194,376
99%
2,379
1%
6. Total workers (F + G)
200,062
197,680
99%
2,382
1%
5.
b. Differently abled Employees and workers:
3.
241
The Company's business is construction of infrastructure and manufacturing of products for industrial uses. Some of
its major clients include State and Central Government departments, Ministries, and local municipal bodies as well.
IV. Employees
18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
S.
Particulars
No
Male
Female
Total (A)
No. (B)
% (B / A)
No. (C)
4%
% (C/A)
1.
Permanent (D)
45,615
42,618
93%
2,997
7%
2.
Other than Permanent (E)
6,540
6,299
96%
EMPLOYEES
A brief on types of customers
S.
No
DIFFERENTLY ABLED WORKERS
4
Permanent (F)
15
15
100%
0
0%
5
Other than permanent (G)
9
9
10%
100%
0%
6 Total differently abled workers (F + G)
24
24
100%
0
0%
19. Participation/Inclusion/Representation of women
212
No. and percentage of Females
Total (A)
Board of Directors*
0
Particulars
5
43
Male
Female
Total (A)
No. (B)
% (B/A)
No. (C)
% (C/A)
DIFFERENTLY ABLED EMPLOYEES
1
Permanent (D)
2
Other than Permanent (E)
90%
3
48
88
37
33
89%
4
11%
11
10
91%
1
9%
Total differently abled employees (D + E)
17
What is the contribution of exports as a percentage of the total turnover of the entity?
19.9 %
b.
Construction and maintenance of water main and line
42204
telecommunication and transmission lines
11.9%
4.4%
Construction / erection and maintenance of power,
42202
Construction and maintenance of power plants
42201
4220
422
4
42205
Construction and maintenance of railways and rail-bridges
28.5%
Construction and maintenance of motorways, streets, roads,
other vehicular and pedestrian ways, highways, bridges, tunnels
and subways
42101
4210
421
3
10.8%
Construction of buildings carried out on own-account basis or
on a fee or contract basis
41001
4100
410
2
42102
4.8%
connection, water reservoirs including irrigation system (canal)
Construction and repair of sewer systems including sewage
disposal plants and pumping stations
5
211
53
33*
Number
* Includes 25 states and 8 UTs (excluding Mizoram, Manipur, Nagaland and Lakshadweep)
International (No. of Countries)
53
50
38
19
Total
Number of offices
12.8%
Number of plants
19
3
a. Number of locations
17. Markets served by the entity:
International
National
Location
16. Number of locations where plants and/or operations/offices of the entity are situated:
III. Operations
17.2%
Construction and maintenance of industrial facilities such as
refineries, chemical plants, etc.
42901
4290
429
Locations
C.
contributed
4.4%
Discussion and Analysis Report
Statements
Reports
LARSEN & TOUBRO
Financial
Statutory
Integrated
Management
Overview
Corporate
210
The Business Responsibility and Sustainability (BRS) initiatives of the Company are extended to the Subsidiary/Associate
Companies, and they are also encouraged to participate in these initiatives of the parent organisation. In addition,
companies like L&T Finance Holdings Limited, Larsen & Toubro Infotech Limited, L&T Technology Services Limited,
Mindtree Limited (Listed entities) have their separate Business Responsibility Report (BRR)/ Business Responsibility &
Sustainability Report (BRSR) as a part of the Annual Report. This report is for Larsen & Toubro Limited (L&T) and the
reporting scope encompasses L&T's manufacturing locations, project sites & offices across India and overseas.
II.
13. Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a
consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken
together).
Head-Corporate Sustainability
+91 22 61238504
Dr. Pradeep Panigrahi
Details
Email ID
4.
Telephone Number
3.
2.
1.
Name
Designation
Particulars
S. No
sustainability-ehs@Larsentoubro.com
% of total
Turnover
Products/Services
S. No.
17.2%
68.5%
% of
Turnover of
the entity
Manufacture of parts and accessories for machinery / equipment
used by construction and mining industries
Product/Services
28246
2824
282
1
Sub Class
Class
Group
14. Details of business activities (accounting for 90% of the turnover):
S. No
15. Products/Services sold by the entity (accounting for 90% of the entity's turnover):
Engineering, Procurement, Construction for Coal and Gas based power plants
Engineering, Procurement & Construction for Hydrocarbon Upstream,
Midstream and Downstream projects
Power
3
Hydrocarbon
2
Engineering, Procurement & Construction of Residential Buildings, Factories,
Public spaces, Airports, IT Parks, Hospitals, Roads, Railways, Metros, Elevated
Corridors, Transmission lines, Renewable projects, Water Supply & Distribution,
Industrial Desalination, Sewage treatment plants, Irrigation projects, Hydel
power, Nuclear plants, Marine projects, Minerals & Metals process plants and
related customized equipment etc.
Description of Business Activity
Infrastructure
Description of Main
Activity
1
NIC Code
No. (B)
1
% (B/A)
Key Management Personnel
No
42
Panipat Elevated Corridor Limited
Subsidiary
51.0
No
43
L&T Power Development Limited
Subsidiary
100.0
No
44
66.2
L&T Power Limited
99.9
No
45
L&T Rajkot-Vadinar Tollway Limited
Subsidiary
51.0
Business Responsibility & Sustainability Reporting
46
L&T Samakhiali Gandhidham Tollway Limited
Subsidiary
51.0
No
Subsidiary
47
Subsidiary
41
Subsidiary
51.0
37
L&T Investment Management Limited
Subsidiary
66.2
38
L&T MBDA Missile Systems Limited
Subsidiary
51.0
39
L&T Metro Rail (Hyderabad) Limited
L&T Mutual Fund Trustee Limited
Subsidiary
40
L&T Modular Fabrication Yard LLC
Subsidiary
70.0
z z zzzzz
No
No
No
No
No
No
No
100.0
L&T Interstate Road Corridor Limited
L&T Sambalpur - Rourkela Tollway Limited
51.0
Subsidiary
73.9
54
L&T Technology Services (Shanghai) Co. Ltd.
Subsidiary
73.9
55
L&T Technology Services (Canada) Limited
Subsidiary
73.9
29 2 2 2
No
L&T Technology Services LLC
No
56
L&T Thales Technology Services Private Limited
Subsidiary
54.6
No
57
L&T Transportation Infrastructure Limited
Subsidiary
63.8
58
L&T Valves Limited
Subsidiary
No
Subsidiary
53
73.9
48
L&T Sapura Offshore Private Limited
Subsidiary
60.0
49
L&T Sapura Shipping Private Limited
Subsidiary
60.0
50
L&T Seawoods Limited
Subsidiary
100.0
No*
51
Subsidiary
74.0
은은 은 은은
No
No
No
No
No
Limited
52
L&T Technology Services Limited
Subsidiary
L&T Special Steels and Heavy Forgings Private
36
100.0
Subsidiary
Male
Female
Total
11.1%
Employees
Permanent
NA
ΝΑ
ΝΑ
ΝΑ
ΝΑ
NA
Total
12.1%
ΝΑ
ΝΑ
Workers*
*Turnover rate of permanent workers is not calculated
** Personal reasons (including family related, marriage & relocation), further studies and career prospects account for higher attrition rate in
female employees.
NA: Data not available
12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the
BRSR report
11. Paid-up Capital- 281.01 crore
b. BSE Limited (BSE)
National Stock Exchange of India Limited (NSE)
a.
10. Name of the Stock Exchange(s) where shares are listed
9. Financial year for which reporting is being done 1st April 2021 - 31st March 2022
ΝΑ
Website- www.larsentoubro.com
Female
13.7%
Total
14.7%
1
0
5.8%
0%
*The CFO and CEO are included in the Board of Directors.
Corporate
Overview
Management
Integrated
Discussion and Analysis
Report
Statutory Financial
Reports
Statements
20. Turnover rate for permanent employees and workers
Male
12.0%
LARSEN & TOUBRO
FY20-21
(Turnover rate in current FY)
%
(Turnover rate in previous FY)
%
FY19-20
(Turnover rate in the year prior to
the previous FY)
%
Male
Female
Permanent
14.3%
20.6% **
FY21-22
8.
7. Telephone- +91 22 67525656
E-mail- infodesk@larsentoubro.com
74.0
No
31
L&T Infra Credit Limited
Subsidiary
66.2
32
L&T Infra Investment Partners Advisory Private
Subsidiary
66.2
은은 은 은은
No
Subsidiary
No
33
L&T Infra Investment Partners Trustee Private
Subsidiary
66.2
No
Limited
34
L&T Infrastructure Development Projects Limited
Subsidiary
51.0
35
L&T Infrastructure Engineering Limited
Limited
L&T Infotech S. DE. RL. DE. CV.
30
No
6.
5. Corporate address- L&T House, Ballard Estate, Mumbai, 400 001, India
4. Registered office address- L&T House, Ballard Estate, Mumbai, 400 001, India
Year of Incorporation- 1946
3.
Name of the Listed Entity- Larsen & Toubro Limited
2.
50.1
74.0
Does the entity indicated
at column A, participate in
the Business Responsibility
initiatives of the listed
entity? (Yes/No)
No
은은
No
Co., Ltd.
28
L&T Information Technology Spain SL
Subsidiary
74.0
No
29
L&T Infotech Financial Services Technologies Inc
Subsidiary
74.0
59
National (No. of States)
% of shares
held by listed
entity
Communities
International Seaports (Haldia) Private Limited
119
No
50.0
Indiran Engineering Projects and Systems Kish (LLC) Associate
118
No
17.2
Associate
117 Grameen Capital India Private Limited
No
51.0
Subsidiary
116 Watrak Infrastructure Private Limited
No
74.0
Subsidiary
Subsidiary
73.9
No
113
LTI Middle East FZ-LLC
Subsidiary
Associate
74.0
114 Cuelogic Technologies Private Limited
Subsidiary
74.0
No
zzzz
115 Cuelogic Technologies Inc.
No
14.2
No
120
50.0
z z z z z
No
No
No
No
Associate
No
# under strike-off process
@under liquidation
VI. CSR Details
22. (i)
Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes
(ii) Turnover (in): 101,000 crore
Notes: they have separate BRR/BRSR
Orchestra Technology Inc.
125 Gujarat Leather Industries Limited @
Associate
L&T Camp Facilities LLC
Associate
49.0
No
121 L&T-Chiyoda Limited
Associate
39.2
50.0
Larsen & Toubro Qatar & HBK Contracting LLC
123 Magtorq Private Limited
Associate
50.0
Associate
42.8
124 Magtorq Engineering Solutions Private Limited
122
112
No
99.0
No
215
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
Indicate
S.
No.
No
Name of the subsidiary/ associate companies
whether
Subsidiary/
% of shares
held by listed
entity
Associate
Does the entity indicated
at column A, participate in
the Business Responsibility
initiatives of the listed
entity? (Yes/No)
103 Bluefin Solutions Sdn. Bhd.
Subsidiary
(A)
60.9
20 19 20
Subsidiary
L&T Valves USA LLC
Subsidiary
100.0
No
100
L&T Valves Arabia Manufacturing LLC
60.9
Subsidiary
101
Mindtree Limited
Subsidiary
60.9
No⭑
102 Mindtree Software (Shanghai) Company Limited
100.0
(iii) Net worth (in): 67,114 crore
No
Subsidiary
No
109
L&T Geostructure Private Limited
Subsidiary
100.0
No
49.0
110
Subsidiary
100.0
No
111
LTR SSM Private Limited
Subsidiary
L&T Parel Project Private Limited
104 Lymbyc Solutions Private Limited
Subsidiary
108
74.0
No
Subsidiary
74.0
No
106 Powerup Cloud Technologies Private Limited
Larsen & Toubro Qatar LLC @
Subsidiary
No
107
Larsen & Toubro Infotech UK Limited
Subsidiary
74.0
No
74.0
99
216
Management
(R/O)
risk or
opportunity
Material issue identified*
S.
No.
whether
Indicate
218
Integrated Annual Report 2021-22
217
Negative
Positive
Financial
implications of the
risk or opportunity
(Indicate positive
or negative
implications)
Policy revision/ upgradation/
Board review (Refer to
Principle-1)
R
Corporate Governance
2.
Customer Experience &
Satisfaction
| |
* Data for employees, workers and customers is partially reported. The Company will strengthen its systems for complete coverage in FY23
# The policies guiding L&T's conduct with all its stakeholders including grievance mechanism are available on the company's website. The link to
the policies: https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/
Customer satisfaction score of 89% in FY22.
24. Overview of the entity's material responsible business conduct issues
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its financial implications, as per the following format.
3.
Indicate
whether
Material issue identified*
No.
risk or
opportunity
(R/O)
Rationale for
identifying the
risk/ opportunity
In case of risk, approach to
adapt or mitigate
1.
S.
Business Ethics
R
4.
Human Rights & Labour
Conditions
R -
L&T has always been
Negative
committed to foster a culture
7.
6.
Skilled Manpower
8. Sustainable Supply Chain
O/R
of caring and trust. This
is embedded in its various
corporate policies like
Environment, Health & Safety
(EHS) Policy, Whistle-Blower
policy, Protection of Women's
Rights at Workplace Policy
and the Code of Conduct.
Training on various issues
related to human rights are
covered under new employee
induction, EHS training, POSH,
code of conduct etc. For more
details, refer to Principle 3.
Skill based trainings (Nine
CSTIs spread across the
country train over 10,000
youth in construction and
allied skills per year. For
further details refer to
Principle 3.8 on training
given to employees for skill
upgradation. Also, refer
to chapter on Social &
Relationship Capital)
Supplier/vendor Code of
Conduct (COC) covers EHS
and Human Rights parameters
to be adhered and supply
chain partners must sign the
COC as a part of the contract
documents.
Positive/negative
Positive/ negative
O/R -
email / letters)
Negative
technological upgradation/
review at senior level and
Board committee. L&T is
committed to its Zero Harm
to life.
Employee & Workforce
Engagement, Wellbeing
5.
Health & Safety
R
Business Responsibility & Sustainability Reporting
For more details refer to
Principle-3
Rationale for
identifying the
In case of risk, approach to
adapt or mitigate
Whistle blower policy and its
deployment. The Company
has a whistle blower policy for
its employees, vendors and
channel partners, for further
details refer to Principle-1
Financial
implications of the
risk or opportunity
(Indicate positive
or negative
implications)
Negative
Positive
Training/ awareness/
risk / opportunity
(Anonymous
1
6
Number of
complaints
received
policy)#
filed
during the
year
complaints
pending
(If Yes, then provide web-
link for grievance redress
resolution
Remarks
at close of
the year
filed
during the
year
complaints
pending
resolution
Remarks
Number of
complaints
at close of
the year
complaint is
Number of
Integrated
Discussion and Analysis Report
Statutory
Reports
Financial
Statements
LARSEN & TOUBRO
VII. Transparency and Disclosures Compliances
23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business
whom
Conduct:
Mechanism in Place
(Yes/No)
FY21-22 Current Financial Year
FY20-21 Previous Financial Year
Stakeholder
group from
Number of
Grievance Redressal
Corporate
Overview
3 - -
3
Value Chain
Yes
56
22
303
1
50
7
Partners
(supply chain
partners)
Other
Yes
4 --
2
9
Yes
workers*
Investors
Yes
(other than
shareholders)
Shareholders
Yes
Customers*
I
Yes
13
3
WI
26
16
Employees and
No
105 Lymbyc Solutions Inc
Subsidiary
88
Nielsen+Partner Unternehmensberater AG
Nielsen&Partner Co. Ltd.
PNG Tollway Limited
Subsidiary
74.0
Subsidiary
74.0
Subsidiary
37.7
87
89
Subsidiary
95.0
은은 은 은은
No
No
No
No
No
PT. Larsen & Toubro Hydrocarbon Engineering
Indonesia
90
86
Subsidiary
51.0
Indicate
whether
Subsidiary/
100.0
83
Nielsen+Partner Unternehmensberater GmbH
Subsidiary
74.0
은은 은은 은은
74.0
No
No
No
No
84 Nielsen&Partner Pty Ltd
Subsidiary
74.0
No
85 Nielsen+Partner Pte Ltd.
No
Raykal Aluminium Company Private Limited
No
75.5
No
95
Syncordis S.A. Luxembourg
Subsidiary
74.0
No
96
Syncordis SARL, France
74.0
Subsidiary
No
97
Subsidiary
74.0
No
98
Subsidiary
Vadodara Bharuch Tollway Limited
74.0
Subsidiary
Syncordis PSF S.A.
94
Syncordis Limited, UK
91
Ruletronics Limited, UK
No
74.0
No
92
Ruletronics Systems Inc
Subsidiary
74.0
No
93
Seastar Labs Private Limited
Subsidiary
73.9
Subsidiary
은은 은은
No
Discussion and Analysis Report
} }
NA
ΝΑ
ΝΑ
NA
ΝΑ
ΝΑ
ΝΑ
Corporate
Overview
Integrated
Management
Integrated
ΝΑ
ΝΑ
NA
ΝΑ
ΝΑ
3 3 3 3
ΝΑ ΝΑ
NA
NA
ΝΑ
Indicate product category
Reclaimed products and their packaging materials as % of
total products sold in respective category
NA: Data not available
ΝΑ
Corporate
Overview
Statutory Financial
Reports
Statements
Management
금금금금
LARSEN & TOUBRO
100%
This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with
key processes and decisions. The information sought is categorized as "Essential" and "Leadership". While the essential
indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be
voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and
ethically responsible.
97.4%
20 manhours
20 manhours
5,539 no of programmes
929,901 manhours (Trainings
and Awareness)
of Conduct and principles of
Corporate Governance
EHS training
100%
100% (EHS Induction Training
2.
is mandatory for all the workers
who resume work)
Details of fines/ penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the
entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the
following format:
The Company had no monetary and non-monetary fines / penalties /punishment/ award/ compounding fees/ settlement
amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial
institutions, in the financial year FY22 based on materiality thresholds.
Discussion and Analysis Report
Penalty/ Fine
Responsible Organisation Code
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
% age of persons in
respective category
covered by the awareness
programmes
update of laws
Principle 1: Businesses should conduct and govern themselves with integrity and in a manner
that is Ethical, Transparent and accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the principles during the financial year:
Segment
Board of Directors
Key Managerial Personnel
Business Principles for
Employees other than BOD and
Workers
Total Number of training and
awareness programmes held
Topics/principles covered
under the training and its
impact
Business, strategy, risk and
update of laws
Business, strategy, risk and
KMPS
Statutory Financial
Reports
20%
LARSEN & TOUBRO
1,654
3%
1,318
3%
1,338
100%
3%
3%
0%
0
Settlement
Compounding Fee
1,338
100%
3%
211
1,443
Other than
employees
65
26%
42%
67
59% 2,166
107
4,252
0
0%
Permanent
0
60% 2,099
4,145
6,954
254
7,208
Total
Female
Male
30%
Statements
3%
0%
(D)
% (B Number % (C/ Number
A)
(C)
A)
Day Care
facilities
Benefits
% (D/
A)
Paternity
insurance
Health insurance
Total
(A) Number
(B)
Category
1. a. Details of measures for the well-being of employees:
Essential Indicators
Principle 3: Businesses should respect and promote the well-being of all employees, including
those in their value chains
% of employees covered by
Accident
Maternity
benefits
1,318
Number
Number % (F /
0
100%
45,615
100%
100% 6,540
100% 52,155
45,615 45,615
6,540 6,540
52,155 52,155
Total
% (E/
Female
employees
Permanent
A)
(F)
A)
(E)
Male
Imprisonment
Punishment
(Previous Financial Year)
Number
NGRBC Principle
Whether
conducted by
independent
external agency
Cradle to Gate
Boundary for
which the Life
Cycle Perspective/
Assessment was
conducted
Not available
% of total
Turnover
contributed
Diamond Green Diesel Reactor
281
NIC Code Name of Product/Service
2.
Yes, the Company has conducted one LCA study for one of its products (Diamond Green Diesel Reactor) from the Heavy
Engineering business vertical in FY22 period.
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or
for its services (for service industry)? If yes, provide details in the following format?
Leadership Indicators
ΝΑ
Business Responsibility & Sustainability Reporting
Integrated Annual Report 2021-22
225
EPR is not applicable as the major business of the Company is construction and associated services and the Company
does not manufacture any consumer products. The Company manufactures few heavy construction machineries,
specialised industrial units and defence products. There is no specific plastic, electrical and electronic product
manufactured where EPR is applicable under E-Waste Management.
Current F Y
FY21-22 (Cr)
Previous F Y
FY20-21 (Cr)
Details of improvements in
environmental and social impacts
2.
3.
4.
(Yes/No)
L&T conducts R&D linked to environmental and social initiatives, however currently the expenditures are not tracked.
The Company has a procedure for sustainable sourcing where all the new and existing supply chain partners are
mandatorily evaluated on environment, health & safety and sustainability parameters before onboarding. Also,
supplier/vendor Code of Conduct (COC) covers EHS and Human Rights parameters to be adhered and value chain
partners (supply chain partners) must sign the COC as a part of the contract documents.
b. If yes, what percentage of inputs were sourced sustainably?
It is mandatory to furnish the evaluation questionnaire (EHS and sustainability parameters) before onboarding as
value chain partners (supply chain partners) and it has 100% coverage.
Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for
(a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
The Company does not have any specific product to reclaim at the end of life. However, at the project and operation
sites, there are systems in place to recycle, reuse and dispose in line with regulatory requirement for the above waste
being generated during course of construction and operation.
Whether Extended Producer Responsibility (EPR) is applicable to the entity's activities (Yes / No). If yes, whether the waste
collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If
not, provide steps taken to address the same.
a. Does the entity have procedures in place for sustainable sourcing?
Yes
Results
communicated in
public domain (Yes/
No)
If yes, provide the
web-link.
FY20-21 (Previous Financial Year)
Re-used
Plastics (including packaging)
E-waste
Hazardous Waste
Re-cycled
5 Tons
- 112 Tons
732.9 Tons
FY21-22 (Current Financial Year)
Re-used
Safely
Disposed
0.1 Tons
Not applicable as the Company does not have any specific consumer product except heavy construction machinery,
valves and defence products and there is no product reclamation at the end of the product life. However, the waste
material generated at the operation and project sites are reused, recycled and disposed as per the applicable regulatory
requirements.
1541.4 Tons
Safely
disposed
1785 Tons
Other Waste
5.
226
26%
Recycled
0 Tons
- 30 Tons
1002.1 Tons
R&D
Capex
33.4%
11.9%
29.4%
No
If there are any significant social or environmental concerns and/or risks arising from production or disposal of your
products/services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly
describe the same along-with action taken to mitigate the same.
Name of Product /
Service
Diamond Green
Diesel Reactor
Description of the risk/concern
The LCA study concludes that maximum
environmental impact is associated with procurement
of primary raw material (steel) and the energy
consumption (grid source) associated with the
manufacturing process. Other than these, there
is almost negligible impacts in the manufacturing
process.
Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed, as per the following format:
Action Taken
3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
industry) or providing services (for service industry).
Indicate input material
Recycled or re-used input material to total material
FY 21-22
Fly ash and Ground Granulated Blast-furnace Slag in place of Cement
Crushed sand in place of Natural Sand
FY 20-21
14.2%
4.
It has been recommended to look for green steel or
recycled steel for the manufacturing of this product
without compromising the quality of raw material. Also,
it has been advised to consider usage of renewable
source of energy in the manufacturing process.
Management is evaluating this recommendation on
feasibility of adoption.
Monetary
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and
social impacts of product and processes to total R&D and capex investments made by the entity, respectively.
Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe
6. Details of complaints with regards to conflict of interest:
Employees
Workers
Directors
KMPS
There have been no cases involving disciplinary action taken by any law enforcement agency on the charges of bribery/
corruption against directors / KMPs / employees / workers that have been brought to the Company's attention.
Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption:
Yes, The Company has 'zero tolerance' of any practice that may be classified as corruption, bribery or giving or receipt of
bribes and the same has been mentioned in its Code of Conduct. The objective of this policy is to serve as a guide for all
directors, executives, employees and associated persons for ensuring compliance with applicable anti-bribery laws, rules
and regulations. This policy is applicable to all individuals working at all levels and grades, including Board Members and
Senior Managerial Personnel, other employees, consultants, interns, contractors, agency staff, agents or any other person
associated with the Company and such person acting on behalf of the Company.
Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
web-link to the policy.
5.
4.
Name of the regulatory/ enforcement agencies/ judicial institutions
Case Details
Not applicable
Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or
non-monetary action has been appealed:
Business Responsibility & Sustainability Reporting
3.
Integrated Annual Report 2021-22
223
Name of the
regulatory/
enforcement
Amount (in INR) Brief of the Case
agencies/ judicial
Has an appeal
been preferred?
(Yes/No)
institutions
NGRBC Principle
FY21-22
NIL
NIL
Non-Monetary
Name of the
regulatory/
enforcement agencies/
judicial institutions
Brief of the Case
Has an appeal been
preferred? (Yes/No)
NIL
(Current Financial Year)
FY20-21
(Previous Financial Year)
Varying from 40% to 65%*
224
and awareness, awareness sessions on BRSR
and 9 principles therein
*The top 25 value chain partners (supply chain partners) and also many other suppliers have been covered by the awareness sessions. These
supply chain partners comprise 40% to 65% (by value) across the various business verticals. The Company has excluded government entities from
the list of its value chain partners (supply chain partners) for these awareness training.
Corporate
Overview
Management
% age of value chain partners covered
(by value of business done with
such partners) under the awareness
programmes
Discussion and Analysis
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
2.
Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If
yes, provide details of the same.
The Company has processes on management of conflict of interests involving members of the Board which may arise
due to Directors joining the Boards of other companies and even conflicts which would take place during the course
of normal business activities. The process allows the Directors to recuse themselves from the discussions pertaining
to the conflict of interest. The Directors have to exercise their responsibilities in a bonafide manner in the interest of
the Company, should not allow any extraneous considerations that may vitiate their exercise of objective independent
judgment in the paramount interest of the Company and not abuse their position to the detriment of the Company for
the purpose of gaining direct or indirect personal advantage. Any conflict of interest arising with the Board Members
needs to be reported to the Chairman of the Audit Committee/Chairman of the Board.
Integrated
Report
ESSENTIAL INDICATORS
Environment, health and safety trainings
2,618 participants
FY21-22
FY20-21
(Current Financial Year)
Number
Remarks
Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Remarks
training
7.
Number of complaints received in relation to issues of Conflict of
Interest of the KMPS
Provide details of any corrective action taken or underway on issues related to fines/ penalties / action taken by
regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.
Not applicable
LEADERSHIP INDICATORS
1.
Awareness programmes conducted for value chain partners on any of the principles during the financial year:
Total number of awareness programmes Topics/principles covered under the
held
Number of complaints received in relation to issues of Conflict of
Interest of the Directors
0
3
65
100%
3
3
100%
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
8.
9.
10
Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies).
Name: Mr. R. Shankar Raman
Designation: Whole-time Director & Chief Financial Officer
DIN: 00019798
Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability
related issues? (Yes / No). If yes, provide details.
Yes, the Company's CSR and Sustainability Committee is responsible for sustainability related issues
Details of Review of NGRBCs by the Company:
Subject for Review
Performance against
11.
The Company complies with the extant regulations and principles as are applicable.
During the review, the effectiveness of the policies is evaluated and necessary amendments to policies and
procedures are implemented.
P1 P2 P3 P4 P5 P6 P7 P8 P9
P2 P3 P4 P5 P6 P7 P8 P9
All the policies of the Company are approved by the Board and reviewed periodically or on a need basis by
Executive Committee as a part of ESG review.
P1
Frequency (Annually/ Half yearly/Quarterly/
Any other - please specify)
workers in
Indicate whether review was undertaken by
Director/Committee of the Board/ Any other
Committee
rectification of any
the principles, and
of relevance to
statutory requirements
Compliance with
above policies and follow
up action¹
non-compliances
Total
Employee/
workers in
% (B / A)
No. of
employees/
Workers in
respective
category,
who are
part of
* Gender wise breakup for permanent employees and workers not available.
6.
96%
89%
Retention rate
Permanent workers#
Retention rate (%) Return to work rate
# The Company is putting a process in place to compile the above data for Permanent workers for FY23.
Return to work rate (%)
Total
Female
Male
Gender*
Return to work and Retention rates of permanent employees and workers that took parental leave.
Yes, the Company has Equal Opportunity Policy as per the Rights of Persons with Disabilities Act, 2016. This policy can be
accessed through the link https://larsentoubro.com/corporate/about-It-group/corporate-policies/.
Permanent employees
Has the entity carried out independent
assessment/ evaluation of the working of its
policies by an external agency? (Yes/No). If
yes, provide name of the agency.
Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If
yes, give details of the mechanism in brief.
Other than Permanent Workers
employees/
worker in
respective
category (A)
Total
- Male
Total Permanent Employees
Category
228
Permanent Workers
FY 20-21 (Previous Financial Year)
No. of
employees/
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
The Company has HR Connect application on L&T Intranet (My Zone) which is accessible to all
employees (except other than permanent employees). On this platform, they can raise their
complaints and grievances which are addressed by HR. The grievances can be also raised through
whistle-blower system through dedicated mail and toll-free number.
Yes. Grievance redressal mechanism is available at factory & project site establishments.
Complaints can be raised through the toll-free number provided at project site and
manufacturing/factory set up or directly reported to the admin and industrial relation personnel.
Also, grievances can be raised through e-mails and all the grievances that are received through
different platforms are directed to the respective function owner and resolved through the
respective IR and Admin function.
Yes/No (If Yes, then give details of the mechanism in brief)
Other than Permanent Employees
Permanent Employees
FY 21-22 (Current Financial Year)
Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a
web-link to the policy.
P1
P3
P5
P6
P7
P8
ΝΑ
ΝΑ
ΝΑ
ΝΑ
P9
ΝΑ ΝΑ
respective
category,
% (D/C)
respective
who are part
category (C) of association
association(s)
or Union (B)
- Female
82%
82%
2,351
2,348
2,849
2,852
P4
69%
69%
3,307
3,304
- Male
Total Permanent Workers
- Female
(D)
(s) or Union
2,291
2,288
3 3 3 3 w
ΝΑ
ΝΑ
NA
The entity does not consider the Principles material to its
business (Yes/No)
P2
P1
2
Questions
ΝΑ
12. If answer to question (1) above is "No" i.e. not all Principles are covered by a policy, reasons to be stated:
P 9
P8
P7
P6
P5
P4
Yes. DNV India conduct audit in various ICs on different subjects such as ISO 14001,
ISO 45001, ISO 50001 and sustainability assurance. During the audit process they check
working of the related policies of the company. They do it through checking policy elements,
procedures, action plans etc.
P2
The entity is not at a stage where it is in a position to formulate
and implement the policies on specified principles (Yes/No)
The entity does not have the financial or/human and technical
NA ΝΑ ΝΑ
NA
ΝΑ
1 Details of performance against some of the targets are available in the Integrated report section.
NA- Data not available
NA
ΝΑ
ΝΑ
금금금금
ΝΑ
NA
It is planned to be done in the next financial year (Yes/No)
Any other reason (please specify)
resources available for the task (Yes/No)
ΝΑ
NA
30%
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of
the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Yes, most of the Company's permanent office buildings and manufacturing locations are accessible to differently abled
employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016.
4.
3,304
3
3,304
100%
Total
3,307
3
3,307
100%
2,187
3
66%
0
0%
0
0%
1,215
37%
100%
2
37%
1,217
0%
2
0%
2
Female
66%
67%
ΝΑ ΝΑ ΝΑ
2
67%
2
67%
100% 2,190
Male
workers
A)
2.
b.
0%
31
0
2%
Details of measures for the well-being of workers:
0%
0
26
0
ooo
0
1%
65
Other than
Category
(B)
(F)
A)
Number % (F/
Day Care
facilities
Permanent
(E)
Health insurance
Total
(A) Number
A)
A)
(C)
% (B Number % (C/ Number % (D/ Number % (E/
A)
Paternity
Benefits
Accident
insurance
% of workers covered by
Maternity
benefits
(D)
5.
Permanent
Male
the authority
(Y/N/N.A)
employees
No. of
employees
covered as
a % of total
employees
No.of workers
covered as a %
of total workers
Previous Financial Year
Deducted and
deposited with
the authority
(Y/N/N.A.)
PF
Gratuity
ESI
100%
100%
Y
100%
100%
Y
100%
100%
3. Accessibility of workplaces
Business Responsibility & Sustainability Reporting
Integrated Annual Report 2021-22
227
Y
100%
Deducted and
deposited with
100%
100%
100%
Y
100%
100%
Y
Y
Current Financial Year
of total workers
a % of total
90%
0%
0
0%
0
3
210
0%
55%
30% 106,957
58,834
2,049 86% 2,139
60,883 31% 109,096
2,379
196,755
Female
Total
194,376
0
workers
124
165
No. of workers
covered as a %
No. of
employees
covered as
Benefits
FY 20-21
FY 21-22
Details of retirement benefits, for Current FY and Previous Financial Year.
5%
0%
0%
124
0%
210
55%
7%
165
9%
ΝΑ
ISO 14001 ISO 45001 IIRC IR
and ISO
45001
Policy and management processes
1. a.
222
221
While BRSR is mandatory from FY23, as a responsible corporate citizen, the Company has decided to report on its
business responsibility and sustainability practices from FY22 onwards. This BRSR is a testimony of the Company's
commitment to sustainability in all its dimensions and the Company will constantly endeavour to strengthen this further
on a continuing basis.
On the governance front, the Management and the Board are involved in active review of the Company's ESG
performance on a regular basis. The Company periodically reassesses all key policies such as Sustainability Policy,
Supplier Code of Conduct Policy etc. To strengthen the policy framework further, two additional policies namely, Equal
Opportunity Policy and 'Public Policy Advocacy' Policy have been recently adopted by the Company.
Across industries, cybersecurity has also become a key concern for the business continuity. Vulnerabilities such as
targeted attacks, ransomware threats and phishing have raised the importance of protecting the IT infrastructure and
sensitive data of the Company. The Company has developed a robust 5-year cyber security & resiliency roadmap and
made investments in state of art security platforms. It has implemented a groupwide Cyber Risk Assurance Framework
and operationalised one of the most advanced Security Operations center to monitor developments 24X7 and respond
effectively when required to any cyber incidents.
The Company's CSR programmes are focused on strengthening the country's social infrastructure with its thrust in areas
such as water and sanitation, education, health and skill building. The success of these initiatives lies in delivering impact
with optimum use of resources, leveraging strengths and collaborating on areas where capacities need to be built. The
Company's Integrated Community Development Programmes (ICDP) being aligned closely to the Sustainable Development
Goals (SDGs), is an example of one such effort. The ICDP was initiated 6 years back, specifically in remote water-scarce
locations of Maharashtra, Tamil Nadu and Rajasthan. The program was designed with a focus on improving the quality
of life of the community by achieving water sufficiency and further expanding into various aspects of sanitation, health,
education and livelihood. The ICDP consists of a unique mix of civil interventions (water harvesting structures, farm
field structures, sanitation units etc.) as well as targeted programs to build community-based institutions, to provide
ownership, accountability, self-management and sustainability of the interventions. These locations have become self-
sustaining now, and the Company is replicating this model in other locations.
In an economy facing shortage of skilled workforce, the Construction Skills Training Institutes (CSTIs) run by the
Company's CSR department in India are worthy of mention. Setup in 1995 and currently with a network of 9 CSTIS
spread across the country, CSTIs trains over 10,000 youth in construction and allied skills every year. These skill training
institutes have grown over the years with a unique industry connect leveraging on the Company's rich experience and
deep knowledge of contemporary as well as new-age practices of the construction industry.
Energy transition from fossil fuels to green energy is an established mega trend globally and some of the businesses of
the Company like thermal power has already felt the impact of this over the last few years. Another business which could
experience an impact over the next 5-10 years is the hydrocarbon business. The Company is therefore evaluating its
prospects in green energy areas including green hydrogen, battery storage and offshore wind among others. Overall, the
Company intends to reduce its presence across the fossil fuel space and build new businesses around green energy.
The EPC business is very labour intensive, and post-Covid the availability of skilled labour has become a challenge.
This constraint could magnify over time as India increases its thrust on infrastructure development, an area that the
Company seeks to grow in. Recognizing this, the Company has increased its off-site fabrication and its thrust on pre-cast
technology. In addition, the Company is augmenting its mechanization and automation capabilities for on-site work.
These initiatives are intended to reduce manual component of work, increase worker productivity, reduce wastages and
thereby, improve the cost competitiveness of the business.
P 9
In the short term, the Company's aim, even as it grows, is to flatten the emission curve in the next five years, through
improved efficiency in the use of energy and increased use of renewable energy across its operations. This apart, the
Company also aims to improve its share of green business offerings over the years, which currently stands at around
38%.
LARSEN & TOUBRO
Integrated Statutory Financial
Discussion and Analysis Report
Reports
Statements
Management
Corporate
Overview
220
Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and
achievements (listed entity has flexibility regarding the placement of this disclosure).
7.
Governance, leadership, and oversight
e) Number of lives to be impacted by CSR projects: 1.5 million by FY26, achieved 1.13 million in FY22.
d) Achieve carbon neutrality by 2040 and water neutrality by 2035.
L&T is a conglomerate with dominant presence in EPC, High Tech manufacturing, IT Services, and Financial Services.
These businesses, the EPC and manufacturing in particular, have a significant impact on the environment in terms of
GHG emission, energy and water consumption. Given the strong growth aspiration of the Company, the challenge is to
balance the growth pursued while minimising its impact on the environment, and also achieve net zero position for both
water consumption and carbon footprint by 2035 and 2040 respectively.
P 8
P7
P6
P1
Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and
Accountable.
P2
Businesses should provide goods and services in a manner that is sustainable and safe.
P 3
P4
Businesses should respect and promote the well-being of all employees, including those in their value chains.
Businesses should respect the interests of and be responsive to all its stakeholders.
P 5
Businesses should respect and promote human rights.
P6
Businesses should respect and make efforts to protect and restore the environment.
P7
Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible
and transparent.
Businesses should promote inclusive growth and equitable development.
P 8
P 9
Businesses should engage with and provide value to their consumers in a responsible manner.
Disclosure Questions
P1
P2
P3
P4
P5
Emission reduction intensity up to 25% by FY26.
b) Zero Harm Vision to life, environment and property.
a) 40% Green Business by FY26, achieved 38.2% for FY22.
specific commitments, goals and targets
along-with reasons in case the same are
not met.
5. Specific commitments, goals and
4. Name of the national and international
codes/certifications/labels/ standards
(e.g. Forest Stewardship Council,
Fairtrade, Rainforest Alliance, Trustea)
standards (e.g. SA 8000, OHSAS,
ISO, BIS) adopted by your entity and
mapped to each principle. SEBI (Listing
obligation and Disclosure Requirements)
Regulations, 2015
3. Do the enlisted policies extend to your
value chain partners? (Yes/No)
2. Whether the entity has translated the
policy into procedures. (Yes/No)
available
C. Web Link of the Policies, if
Y
Y
Y
Y
Y
Y
Y
Y
Y
b. Has the policy been approved by
the Board? (Yes/No)
Y
Y
Y
Y
Y
Y
Y
targets set by the entity with defined
timelines, if any.
Business Responsibility & Sustainability Reporting
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/
Y
(d)
(c)
(b)
(a)
6. Performance of the entity against the
(e)
(d)
(c)
(b)
(a)
IIRC IR
Principle
IIRC IR
Principle
Indian ISO14001
labour
codes
Principle
Whether your entity's policy/
policies cover each principle and its
core elements of the NGRBCs. (Yes/
No)
Y
Y
Y
Y
Y
Y
Y
Y
YYYYYYYYY
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
Integrated Annual Report 2021-22
219
11.
○
Climate Action
10.
O/R
Talent Management, Attraction,
Retention and Development
9.
(R/O)
Positive/Negative
Financial
implications of the
risk or opportunity
(Indicate positive
or negative
implications)
For details, refer to chapter
on Human Capital in the
Integrated Report section.
Diversity, Inclusion & Equal
In case of risk, approach to
adapt or mitigate
whether
risk or
opportunity
Indicate
LARSEN & TOUBRO
Statements
Reports
Integrated Statutory Financial
Report
Material issue identified*
S.
No.
Discussion and Analysis
Management
Y
Rationale for
identifying the
risk / opportunity
Opportunity
Corporate
Overview
Data Security, Privacy, and
Cybersecurity
12.
Positive
Positive/ Negative
Positive
Positive
Negative
Positive
Positive
*For more details, refer to chapter on Materiality Assessment in the Integrated Report section.
For details, refer to chapter
on Natural Capital in the
Integrated Report section.
For details, refer to chapter on
Manufactured Capital in the
Integrated Report section.
Policy and deployment,
audits/ Cyber Security
Assurance Framework
(L&T has developed a
robust 5-year cyber security
& resiliency roadmap and
made investments in state of
art security platforms. The
Company has implemented
a groupwide Cyber Risk
Assurance Framework and
operationalised one of the
most advanced Security
Operations Centre to monitor
24X7 & respond to any cyber
incidents.)
о
Y
16.
Social engagement & Impact
R
13.
Quality of Products and Project
delivery
14.
O/R
○
15.
Water, Waste & Hazardous
O/R
Materials Management
Brand Management
Farmer community in
water stressed and
The engagement with vulnerable groups is through Integrated Community Development Project (ICDP) and health
initiatives. Some of the instances are given below:
Vulnerable group
Concerns
Drought, Poverty,
Migration
Rural Population
not having access to
sanitation facilities
•
Drought Prone Locations
(Men and Women)
Action Taken
Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized
stakeholder groups.
2.
Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were
incorporated into policies and activities of the entity.
The Company has set up various committees on economic and ESG governance and performance monitoring. These
committees are CSR & Sustainability Committee, ERM Committee, Stakeholder's Relationship Committee, Investor
Cell, EHS Council, Green Campus Steercom etc. The CSR Committee is a committee constituted by the Board and is
chaired by an Independent Director. The Board Risk Management Committee is constituted by the Board and is chaired
by an Independent Director. The Stakeholders' Relationship Committee is constituted by the Board and is chaired
by an Independent Director. The other Committees mentioned here are internally constituted committees. Quarterly
performance update and reviews were conducted by the respective committees on these topics and consolidated
performance report and outcome were presented to the Board in their quarterly meetings. Also, the Company has been
conducting stakeholder engagement exercise from time to time on ESG topics. This stakeholder engagement exercise
proceeds on a structural approach on frequency, delegation and reporting of outcome including stakeholders' feedback
to the Board. As per their respective terms of reference, the various Committees (statutory as well as internal) meet
periodically to review the performance of the Company in various areas.
3.
Open defecation
leading to health
issues and social
disgrace
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
LARSEN & TOUBRO
Leadership Indicators
Statutory Financial
Reports
Statements
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
Yes, outcome of the materiality assessment and stakeholder engagement exercise are taken forward to identify material
topic of concern on sustainability for the Company. Based on these material topics of significance to the Company,
further strategy development, policy setting, if required, objectives and goal setting with monitoring mechanism are
developed and implemented.
Organised farmers community to form
village development committees (VDC)
and Farmers Producer Organisation
(FPO)
Increase in household agricultural
income
Maintenance of water structures by the
VDC along with Panchayat
Community awareness regarding
making villages open defecation free
(ODF)
Affordable general health services
along with consultations in specialised
clinics provided through nine health
centres across India and mobile health
vans
Ensured equal representation of
women in VDCs and Communty level
Decision making
Village level women groups formed
and organised in SHGS
Women were part of needs assessment
and their critical concerns were
prioritised
•
•
Action Taken
Unaffordable and
inaccessible health
services
community from urban
Gender related issues
- no decision making
power in household
and community
related issues
Concerns
Underprivileged
women
Business Responsibility & Sustainability Reporting
Integrated Annual Report 2021-22
235
Women felt safe to use household
toilet and saved social disgrace
4,000+ Toliets constructed and
made 67 villages ODF
Reverse migration
Rise in ground water table
and water made available to
population of 96,812 and 191 Ha
land brought under cultivation in
nine ICDP locations
Impact
Village level monitoring committee
formed to ensure ODF status of the
village
Construction of toilets after ensuring
water availability
• Water made available with watershed
and water conservation interventions
Capacity buiding in sustainable
agricultural practices
Vulnerable group
Disadvantaged rural
3.
Impact
6,299
Male
100%
6,540
6,540
Permanent
Employees
% (F / D)
% (ED) No. (F)
No. (E)
% (C/A)
% (BA) No. (C)
No. (B)
More than Minimum
Wage
Previous Financial Year
FY 20-21*
Wage
Statutory Financial
Reports
Statements
2.
3.
Details of minimum wages paid to employees and workers, in the following format:
LARSEN & TOUBRO
6,299
FY 21-22
Current Financial Year
Equal to Minimum
Total (A)
Wage
More than Minimum
Wage
Equal to Minimum
Total (D)
Category
Report
100%
241
195,220
196,755
Other than
100%
3
3
Female
100%
3,304
3,304
Male
100%
3,307
3,307
Permanent
Workers
100%
241
100%
Other than
6,540
6,540
100%
Female
Permanent
6,299
6,299
100%
Female
241
241
Male
Their expectation and feedback
on impact/success of CSR
project. Also review scale
up potentials and further
engagement scope.
Discussion and Analysis
Management
3,256
6,540
Other than permanent
11%
5,244
47,854
16%
7,178
45,615
Permanent
Employees
% (D/C)
employee/
workers
covered (D)
Total (C)
% (B / A)
No.
No. of
employee/
workers
covered (B)
• 483 SHGs formed with
*65.6 Lakh savings
Women are assuming community
leadership positions
e.g. President of VDC
-
178,239 population accessing the
services
Principle 5: Businesses should respect and promote human rights
50%
Essential Indicators
236
Category
FY 21-22
(Current Financial Year)
FY 20-21
(Previous Financial Year)
Total (A)
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the
following format:
Integrated
3,158
42%
Corporate
Overview
Training on various issues related to human rights are covered under new employee induction, EHS training, POSH, code of conduct etc.
6%
13,575
235,195
7%
14,287
200,062
5%
11,451
232,075
6%
12,217
196,755
68%
2,124
3,120
Total Employees
52,155
10,434
20%
51,012
6,571
1,327
13%
Permanent
Other than permanent
Total Workers
3,307
2,070
63%
Workers
99%
etc.
As and when
required
Workers
(Permanent
Workers only)
Male
Female
3,304
3
2,640
1
80%
33%
100%
3,805
3
100%
3
100%
For FY22 the review process is still in progress and will be completed by FY24
10. Health and safety management system:
a.
Whether an occupational health and safety management system has been implemented by the entity? (Yes/No). If
yes, the coverage of such system?
Yes, occupational health and safety management system has been implemented by the entity. It covers the entire
operations covering all construction project sites, manufacturing units, industrial production facilities and offices. In
line with L&T's vision, philosophy, and EHS Policy, management systems have been implemented in accordance with
the International Standards ISO 45001:2018 (Occupational Health and Safety Management System Standard). EHS
Management System defines the mandatory requirements for the systematic management and execution within the
organisation. The Company's Integrated EHS Management System is accredited by international certification bodies.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by
the entity?
3,805
The Company has in place systematic risk management process to identify and control all the hazards in construction
project sites, manufacturing units, industrial production facilities and offices. The Company's risk management
process is applied through five steps (Identification, Assessment, Mitigation, Monitoring and Reporting) and is the
key driver for controlling the risk of EHS in business. All relevant stakeholders including construction engineers,
design and planning engineers, production in charges and EHS team members are involved in risk assessments and
the risk management process, Risk Assessments & Safe Work Method Statement are developed and approved prior
to starting any work activity. All identified risks and risk mitigation plans are required to be documented, approved
and communicated to all relevant parties involved in the activity.
3,158
47,854
Category
(Current Financial Year)
Total (A)
No. (B)
% (B/A)
Total (C)
(Previous Financial Year)
No. (D)
% (D/C)
100%
Employees
38,644
33,354
86%
Female
2,709
1,931
71%
47,854
3,158
Male
FY20-21
C. Whether you have processes for workers to report work related hazards and to remove themselves from such risks.
229
0
2
25
23
0
3
1
0
High consequence work-related injury or
ill-health (excluding fatalities)
75
Workers
Workers
Employees
Workers
12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
As a part of the EHS Management system, a project specific EHS plan is prepared at the inception of every new project
that determines the broad parameters of EHS management. This EHS plan identifies the hazardous operations and
the risks arising from such hazards which are within the scope of the work. It even specifies the required integrated
preventive measures (Controls) to mitigate the same.
The Management provides strong demonstrable visible leadership and commitment towards EHS through personal
examples and actions. This is the first principle of L&T L.I.F.E (Live Injury Free Each Day) leadership commitment.
Management has participated in EHS meetings, conducted site Inspections and EHS Audits, to encourage and develop
a positive attitude towards EHS within L&T projects and operations. Management ensured that sufficient EHS resources
were available and allocated responsibilities for implementing the L&T LIFE framework. Roles & responsibilities, targets &
objectives, goals, training needs & required behaviours had been clearly defined, agreed & communicated throughout the
entire organisation & structure.
To support this further, there is a systematic risk management process in place to identify and control all the hazards in
projects/units which requires verification of conformity. The EHS management system has various procedures and EHS
norms. Therefore, a process has been established for carrying out Internal EHS audits. This process mandates to organise
internal audits for all active projects and it is verified by each IC head office audit team at least once in six months.
Certain projects were selected for frequent auditing, depending on their status, importance, and risk profile. This was in
addition to any external audits carried out by accredited auditors.
13. Number of Complaints on the following made by employees and workers:
230
Benefits
Employees
Yes, the Company has processes for workers to report work related hazards and to remove themselves from such
risks.
122
10
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
d. Do the employees/workers of the entity have access to non-occupational medical and healthcare services?
Yes, medical centres and first aid facilities are available for both employees and workers.
11. Details of safety related incidents, in the following format:
FY21-22
FY20-21
Safety Incident/Number
Category
8
Current Financial Year
Lost Time Injury Frequency Rate (LTIFR) (per one
million-person hours worked)
Employees
0.1
0.1
Workers
Total recordable work-related injuries
Employees
No. of fatalities
Previous Financial Year
FY21-22
9. Details of performance and career development reviews of employees and worker:
3%
No. (E) % (ED) No. (F) % (F / D)
Employees
Male
42,618
8,271
Female
2,997
609
No. (B) % (BA) No. (C) % (C/A)
19%
20%
27%
47,854
8,427
18%
17,475
37%
984
33%
11,505
Total
On Skill upgradation
Total (D)
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
8. Details of training given to employees and workers:
On Health and
safety measures
FY 21-22
Current Financial Year
FY 20-21
Previous Financial Year
Category
On Health and
On Skill upgradation
Total (A)
safety measures
LARSEN & TOUBRO
45,615
8,880
19%
270
11%
258,910
962
114,333
44%
6,850
3%
559
15%
58%
2%
173,617
87%
9,083
5% 259,872
114,892
44%
6,874
24
369
2,382
200,062
Total
12,489
27%
3,158
51,012
561
18%
1,180
37%
8,988
18%
18,655
37%
Workers
Male
197,680
173,248
88%
8,813
4%
Female
Working Conditions
Health & safety
Others
FY 21-22
Construction is a labour-intensive activity, and L&T employs over 200,062 workers in addition to >50,000
of its own employees (including manufacturing). Hence, their skills development, health and well-being are
important for the Company's ongoing and future operations.
Various business units of the Company operate in variety of sectors, each of which are governed by
specific regulatory bodies. In addition to this, there are bodies which oversee different steps in EPC and
manufacturing air pollution control. It becomes important to understand priorities of these agencies and
address their concerns, if any, to maintain compliance levels and establish benchmark performance levels.
Shareholders and investors make an important contribution to the growth of the company by providing
financial resources for short term i.e., working capital and long term i.e., capital expenditure and
investments. They also play an important role through exercise of their voting rights with respect to
important plans of the Company.
Media acts as important channel of communication of Company's performance, policies and plans. They also
help in reverse loop in highlighting concerns or issues related to the Company. In order to ensure that there
are no gaps in communication, engagement with media entities is a continuous process.
L&T helps catalyse socio-economic development of communities around its premises and at various locations
across the country. Focus is on under-privileged and marginalized sections to enable them to bring them
on-par with others.
233
Integrated Annual Report 2021-22
2.
234
Private sector makes up ~16% of the orderbook and plays an important role in business plans of the
company. Many of them are long-term clients which offer repeat business over period of years and also act
as partners in developing new solutions or business offerings.
Business Responsibility & Sustainability Reporting
Stakeholder
Group
Whether
identified as
Vulnerable &
Channels of Communication
Marginalized
Group (Yes/No)
Shareholders and
No
investors
List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Media
Government (central and state) orders make up ~40% of the Company's current orderbook. Additionally,
orders from Government owned enterprises contribute to ~44% of the orderbook and therefore, they are
the largest clients for the businesses. In addition to providing the business, they also determine policies for
various areas as well as determine the future plans for various sectors.
ii) Outsourcing of business activities e.g., low-end civil works in construction projects and low-end
manufacturing
LARSEN & TOUBRO
Principle 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1.
Describe the processes for identifying key stakeholder groups of the entity.
L&T's business is primarily EPC - engineering, procurement, construction, and high-tech manufacturing. Hence, in line
with its business models, the Company has identified the following as key stakeholder groups:
Stakeholder Group
Suppliers/Contractors
Government
To maintain sustainable growth, these partners are key elements in meeting the delivery and cost objectives
for various contracts.
Customers
Regulatory bodies
Shareholders and
Investors
Media
Communities
Basis of Identification
EPC and high-tech manufacturing have significant dependence on supply chain partners for
i)
Sourcing of key raw materials e.g., cement, aggregates, steel and other materials for construction
projects, and high-grade metals, subcomponents and other inputs for manufacturing business.
Employees and
Workforce
No
Frequency of
engagement
As and when
required
•
their families
Online news bulletins to convey
topical developments
A large bouquet of print and on-line
in-house magazines (some location-
specific, some business-specific), a
CSR Programme newsletter
As and when
required
As and when
required
Customer satisfaction and
feedback. Project delivery,
timeline, challenges that are
faced during execution.
Reporting requirement,
statutory compliance, support
from authority and resolution.
of issues.
• Welfare initiatives for employee and
Employees' growth and
benefits, their expectation,
volunteering, career growth,
professional development and
continuing education and skill
training etc.
Community
No
L&T Helpdesk, toll-free number
Regular supplier and dealer meets
Yes (Some of
the Company's
CSR Project
Beneficiaries)
Direct engagement and through the
Company's CSR project implementation
partners (NGO)
As and when
required
Suppliers/
contractors
• Corporate social initiatives
corporate and line management
Circular and messages from
Purpose and scope of
engagement including key
topics and concerns raised
during such engagement
To understand their need
and expectation which are
material to the Company. Key
topics are company's financial
performance, ESG performance
etc.
Press Releases, Info desk - an online
service, dedicated email ID for Investor
Grievances, Quarterly Results, Annual
Reports, Integrated Reports, AGM
(Shareholders interaction), Quarterly
investor presentation, Investors meets,
stock exchange filings and corporate
website.
Press Releases, Quarterly Results, Annual
Reports, Sustainability / Integrated
Reports, AGM (shareholders interaction),
Access information and media
As and when
required
Performance reporting, good
practices, show cases, awards
and achievements, initiatives
etc are discussed and reported
interactions
Customers
No
Business interactions, client satisfaction
surveys
Biannually
Government
No
Press Releases, Quarterly Results, Annual
Reports, Sustainability / Integrated
Reports, Stock Exchange filings, issue
specific meetings, representations
Employees
No
•
Employee satisfaction surveys,
engagement surveys
Statements
Need and expectation,
schedule, supply chain issue,
need for awareness and other
training, their regulatory
compliance, EHS performance
Statutory Financial
Reports
Management
14. Assessments for the year:
Health and safety practices
Working Conditions
% of your plants and offices that were assessed (by entity or statutory authorities or
third parties)
100%
L&T has robust Internal audit process in line with ISO 45001:2018 requirement and it covers all
construction projects, offices and manufacturing units. At least one internal audit is conducted in
a financial year for all such operations/sites/ manufacturing units/offices.
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant
risks / concerns arising from assessments of health & safety practices and working conditions.
The Company's EHS Council undertakes a review of all accidents and incidents, and formulate procedures based on
risk analysis of data gathered through respective IC. It makes use of advanced technology such as vison analytics/Al to
detect any health & safety hazards and gather data. This data is used for predictive analysis, measurement of incidents
and unsafe behaviours. This enables identification of the key areas of risk which in turn guides the projects to proactively
manage and focus resources to prevent any accidents or incidents. Such analysis is shared throughout the group IC
structure, to support L&T Mission ZERO HARM objective.
In view of this collective approach, efforts have been made in understanding the Company's high-risk profile holistically
as well as in general. EHS risk management culture has been inculcated across the Company. Various steps have been
taken including:
LARSEN & TOUBRO
•
•
Developed HSE Training Modules on high-risk activities.
•
•
•
Developed standardized template of HSE Lessons Learnt (EHS Alert) and these alerts are shared in the centralized
knowledge sharing platform which can be accessed by all employees.
Enrolled Subject Matter Experts (SMEs) into the HSES Management Community of central knowledge sharing
module.
Implementation of senior management audits based on standard checklist developed by the EHS Council.
The outcome of the efforts has been to capture the high-risk hazardous activities ubiquitous in various L&T's Business
verticals. This helps to devise an action plan to enhance the competency among stakeholders in managing such activities
with higher degree of awareness and suitable training using technology such as AR/VR from competent external agencies
as well as subject matter experts. Each employee of the organisation strives to achieve EHS excellence in their respective
functions and align their actions and business decisions.
Implementation of HSE Surveillance Rating
LEADERSHIP INDICATORS
Integrated Statutory Financial
Report
Reports
Statements
Management
Current Financial Year
FY 20-21
Previous Financial Year
Filed during
the year
Pending
resolution at
the end of year
Remarks
Filed during
the year
Pending
resolution at
the end of year
Discussion and Analysis
Remarks
2
Data not available, to be tracked in FY23
Data not available, to be tracked in FY23
POSH
3
ΝΑ
POSH
Corporate
Overview
ΝΑ
1.
2.
Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (B)
Workers
1
1
4.
5.
6.
*All the deceased workers and employees resulting from work related injuries have received the insurance money.
Does the entity provide transition assistance programmes to facilitate continued employability and the management of
career endings resulting from retirement or termination of employment?
The Company provides transition assistance programmes to facilitate continued employability and the management of
career endings resulting from retirement.
(Previous FY)
Details on assessment of value chain partners (Supply chain partners):
% of value chain partners (by value of business done with such partners) that were assessed
Varying from 40% to 65%
(The top 25 suppliers and large number of other suppliers are assessed through a detailed checklist of
more than 40 questions on EHS parameters. The top 25 suppliers account for 40% to 65% by value of
business done with such partners.)
Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments
of health and safety practices and working conditions of value chain partners.
As per the internal EHS audit procedure and assessment carried out, all the observations and non-conformances are
properly recorded and notified for closeout. Once closeouts are done, they are recorded with details of closeouts. These
details can be retrieved from respective sites, manufacturing units and operations.
The Company, based on all EHS analysis data gathered, has developed several procedures aligned to Sub-contractor
procurement and management. The Health, Safety & Environment Management system has been reviewed and aligned
to be a part of and fully incorporated into the contract between sub-contractor and the Company. Its purpose is to set
forth the areas of EHS concerns and requirements routinely. This subcontractor system is intended to supplement any
contractual requirements, including EHS Management System manual, guidelines, Standard Operating Procedures, any
requirements of client, as well as sub-contractor's own EHS Programme.
All the suppliers and contractors of the Company are evaluated on their safety infrastructure processes and strengths
before awarding a contract. The continued monitoring and measuring of suppliers and contractors ensure a
comprehensive safe environment. This is further enhanced with regular refresher training sessions and capacity-building
programmes. In addition, periodic site visits by the senior management and site audits improve the EHS performance.
232
Corporate
Overview
Health and safety practices
Working Conditions
FY20-21
2
-
The Company extends life insurance coverage for work related death of its employees and workers.
Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the
value chain partners.
Adherence to the applicable statutory provisions including payment and deduction of statutory dues is incorporated in
the contract agreement with the value chain partners. The Company makes sure that all the relevant clauses dealing with
statutory compliance are validated and honoured by both sides.
231
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
Provide the number of employees / workers having suffered high consequence work-related injury / ill-health/fatalities
(as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable employment or
whose family members have been placed in suitable employment:
Benefits
Employees
Workers
Total no. of affected employees/workers*
FY21-22
(Current FY)
FY20-21
(Previous FY)
0
1
28
25
No. of employees/workers that are
rehabilitated and placed in suitable
employment or whose family members have
been placed in suitable Employment
FY21-22
(Current FY)
Integrated
Discussion and Analysis Report
1,535
and peri-urban areas
| | | |
3
Filed during
the year
Remarks
Pending
resolution at
the end of
year
the year
Filed during
Previous Financial Year
FY 20-21
Rights related issues
Other human
Pending
resolution at
the end of
Wages
Child Labour
Discrimination at workplace
Sexual Harassment
Benefits
9.
8.
7.
FY 21-22
Current Financial Year
6. Number of Complaints on the following made by employees and workers:
Business Responsibility & Sustainability Reporting
Forced Labour/ Involuntary Labour
Integrated Annual Report 2021-22
year
Remarks
1%
238
The Company adheres to the UNGC (United Nation Global Compact) principles which include Human Rights clauses.
These clauses are part of the Company's contracts in the form of Supplier/Vendor Code of Conduct (CoC) and is
extended across entire value chain. Fostering a culture of caring and trust are embedded in various corporate policies
like Environment, Health & Safety (EHS) Policy, Whistle-Blower policy, Protection of Women's Rights at Workplace Policy
Details of the scope and coverage of any Human rights due-diligence conducted.
No complaint received in FY22 for human rights violation. The Company revised its Supplier/Vendor Code of Conduct
including human rights compliance requirements for value chain partners.
1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.
Leadership Indicators
No significant risks/concerns.
10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 9 above.
Others please specify
.² = 3.
-
Wages
Discrimination at workplace
Sexual harassment
Forced/involuntary labour
Child labour
100%
% of your plants and offices that were assessed (by entity or statutory authorities or third
parties)
Assessments for the year
Yes. The Company adheres to the UNGC (United Nation Global Compact) principles which include Human Rights clauses.
These clauses are part of the contracts with suppliers, partners, and NGOs, and are extended across the supply chain in
the form of Supplier/Vendor Code of Conduct.
Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The Company has a Whistle Blower Policy wherein the employees report, without fear of retaliation, any wrong
practices, unethical behaviour or noncompliance which may have a detrimental effect on the organisation, including
financial damage and impact on brand image. Also, the Code of Conduct of the Company requires employees to
behave responsibly in their action and conduct. Apart from that, the Company has Committees at every location for the
protection of women at workplace to ensure their rights, receive grievances, conduct investigation and to take actions.
Do human rights requirements form part of your business agreements and contracts?
The Company undertook internal assessment through its EHS, HR and IR function.
237
2.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
(In Rupees)
Number
Median remuneration/
salary/ wages of
respective category
Number
Female
Male
Board of Directors (BOD)
(Whole-time Directors)
Key Managerial Personnel
Benefits
*100% coverage of employees and workers towards payment of equal to/more than minimum wages; Breakup is not available FY21.
Details of remuneration/salary/wages, in the following format:
Female
Median remuneration/
salary/ wages of
respective category
1%
1%
99%
99%
192,858
2,362
2,379
194,376
Male
||||
||||
All grievances are addressed as and when received by the respective Manufacturing Unit Heads/Project Managers/Business
Unit Heads through Admin/IR in coordination with HR. All the grievances received are duly investigated and appropriate
actions are taken to resolve the issue/complaint. Whenever required, disciplinary actions are initiated as deemed fit and
assistance from regulatory authority is sought.
||||
1,518
17
(In Rupees)
Permanent
6 Cr appx.
The Company does not have a single focal point for addressing the human rights issues. However, the HR head of the
respective IC is responsible for addressing the same.
8
4.
c)
Directors Salary includes Commission.
b)
CEO & CFO are Directors and included in Board of Directors.
a)
Note -
Workers
Salary Amount given above is the Median salary in the respective category.
Employees other than
1
48,544
BoD and KMP
1.9 Cr appx.
9.2 Lakhs appx.
2,821
Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business?
7.8 Lakhs appx.
1,957
11.3 Lakhs appx.
9.1 Lakhs appx.
6
Name and brief
details of project
EIA Notification
Date
No.
None
Whether conducted by
independent external
agency (Yes/No)
Results communicated
in public domain
(Yes/No)
Relevant Web
link
12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and
rules thereunder (Y/N).
All the Company projects and industrial facilities follow the applicable environmental law/ regulations/ guidelines in India,
such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment
Protection Act and rules thereunder. However, two cases of noncompliance have been raised by respective authority in its
construction vertical in Delhi NCR region which are presented here.
243
Integrated Annual Report 2021-22
If not, provide details of all such non-compliances, in the following format:
S.
No.
1
The Company has not conducted any environmental impact assessments (EIA) of projects or industrial facility in FY22.
For the construction projects, it is under the scope of the proponents, and the Company ensures that all regulatory
permits and approvals are in place before starting of the construction work. For the ongoing construction projects, all the
applicable EIAs are carried out by the proponent before the construction project is awarded to the Company.
Specify the law / regulation /
guidelines which was not complied
with
DPCC/NGT-AIR Pollution/
Business Responsibility & Sustainability Reporting
Industrial Facility
Yes
Yes
CMC-IV/2021/1005 dated 02/07/2021
14
ISP PARWATI PHASE III & IV
Construction
Yes
15
L&T Defence Vizag facility
Industrial Facility
The above selected projects mentioned herein are the Company's major construction projects and industrial facilities.
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current
financial year:
Yes
L&T Defence Coimbatore Facility
Yes
17
L&T Defence Talegaon Facility
Industrial Facility
Yes
18
A.M. Naik Heavy Engineering Complex
Industrial Facility
16
Provide details of the
non-compliance
5.
Any fines /
penalties /
action taken
Covering of loose materials,
waste and loads during
transportation
Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources, in
the following format:
Parameter
From renewable sources
Total electricity consumption (A)
Total fuel consumption (B)
Energy consumption through other sources (C)
Total energy consumed from renewable sources (A+B+C)
From non-renewable sources
FY21-22#
FY20-21#
(Current Financial Year) GJ (Previous Financial Year) GJ
127,129
97,044
127,129
97,044
Total electricity consumption (D)
Total fuel consumption (E)
1,154,335
Industrial Facility
244
1.
Leadership Indicators
Use of anti-smog gun
by regulatory
agencies such as
pollution control
boards or by courts
Yes, a penalty of 5
Lakhs was imposed
by Delhi Pollution
Control Committee
(DPCC)
Corrective action taken, if
any
As instructed by DPCC (Delhi
Pollution Control Board),
the following steps were
implemented:
1. Installed 4 Anti-Smog guns
around the project area.
2. Deployed dedicated water
sprinkling tankers to control
dust.
3. Covering of excavated
materials using Green cloth.
2
Dust generation leading to air
pollution at the Company's
Pragati Maidan Construction
Project
Air Pollution under the Provisions
Dust generation leading to air
pollution at Dwarka Expressway
Project
Yes, a penalty
1. Regular water sprinkling
of 10 lakh was
imposed by Regional
Office, Gurugram
(N) Haryana State
Pollution Control
Board
2.
Removal of dust on live
roads
3.
Tree plantation
4.
of Air Act, 1981 & Environmental
compensation.
TLT -TLTRS Kancheepuram
Total
Yes
Other Hazardous waste. Please specify, if any. (G)
2,447.5
Other Non-hazardous waste generated (H). Please specify, if any. (Break-up
46,457
44,484
by composition i.e. by materials relevant to the sector)
Total (A+B + C + D + E + F + G + H)
51,459
48,044
For each category of waste generated, total waste recovered
through recycling, re-using or other recovery operations (in metric
tonnes)
Category of waste
(i)
Recycled
(ii)
Re-used
(iii) Other recovery operations
8,365,802
For each category of waste generated, total waste disposed by
nature of disposal method (in metric tonnes)
NA
Category of waste
1.4
6
Plastic waste (A)
E-waste (B)
Bio-medical waste (C)
Construction and demolition waste (D)
Battery waste (E)
Radioactive waste (F)
8. Provide details related to waste management by the entity, in the following format:
FY21-22#
FY20-21#
(Current Financial Year)
(Previous Financial Year)
99
ΝΑ
9
17
0.1
NA
2,439
1,328
NA
(i)
Incineration
732.9 (Hazardous);
Proposed Mixed use development of residential,
I.T, School & Commercial building Village Paspoli,
Saki Vihar Road, Powai West, Mumbai - 400 072.
Construction
Yes
9
DIAL Phase-3 A Expansion Project
Construction
Yes
10
Dwarka Expressway Project, Package 3
Construction
Yes
11
TLT Factory Pithampur
Industrial Facility
Yes
12
-
TLT Factory Puducherry
Industrial Facility
8
L&T is certified under ISO 14001:2015 and the scope covers its entire operations including offices, headquarters,
construction projects and temporary facilities, manufacturing units and industrial facilities. Under the environmental
management system, the Company has guidelines for comprehensive waste management (which is under revision now)
for the identification, segregation, collection, recycling and final disposal. Wherever applicable the company follows
6R principles (Rethink, Reduce, Reuse, Recycle, Refuse and Repair) for waste management. Awareness sessions are
undertaken for the employees who have a role and responsibility towards waste management. Performance is monitored
and waste data is collected quarterly through the sustainability data management platform (SoFi).
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your
company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to
manage such wastes.
Yes, the assurance has been conducted by DNV India.
44,912 (Non-Hazardous)
NA
ΝΑ
45,644.9
1,002.2 (Hazardous);
36,548 (Non-Hazardous)
NA
NA
37,500.2
(ii) Landfilling
138.8 (Hazardous);
13
0 (Non-hazardous);
138.8 (TOTAL)
ΝΑ
3,144.6
72.5 (Hazardous);
0 (Non-hazardous);
72.5 (TOTAL)
1,924 (Non-hazardous);
685.4 (Hazardous);
2,609.49 (TOTAL)
NA
2,681.9
(iii) Other disposal operations
Total
Some of the waste data have been captured for the first time in FY22
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21
NA: Data not available
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
2,190 (Non-hazardous);
815.8 (Hazardous);
3,005.8 (TOTAL)
887,648
7,251,162
(i) Surface water
Total energy consumed from non-renewable sources (D+E+F)
If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as
well as outcome of such initiatives, as per the following format:
Sr.
Initiative undertaken
No
1.
Plastic Waste Management
Details of the initiative (Web-link, if any, Outcome of the initiative
may be provided along-with summary)
The waste collection & segregation
is conducted daily to minimize the
waste generated at the site, minimize
environmental impact, keep workplace,
aisles hazard free. With the help of a
third-party manufacturer & supplier-PGS
enterprises India LTD., Pune, WET IC sends
its plastic waste to be recycled into plastic
granules, polyfuel, etc.
(i) Waste Impact: 331.6 kg/Yr Plastic Waste
recycled into Polyfuel/Granules
(ii) 108 Staff and 194 Workmen participated
in the initiative, and they were also
trained by the IC.
(iii) Emission Impact: 665 kgCO2e per
annum emissions avoided (Per kg of
plastic, about 6 kg of carbon dioxide
is emitted during production and
incineration)²
(iv) Water Impact: Water footprint is about
5.3 litres of water to produce typical
single-use water³.
2.
LEED Platinum Certification for AM (i) Used percolation pits along the periphery
Naik Tower
(i)
Emission Impact: 700 tCO2e/year
(ii)
All the projects and industrial facilities listed in Question 10 of the Essential Indicators above, are either operating near
coastal areas coming under CRZ Notification 2011 or forest and other sensitive zones as identified within the respective
EIA studies conducted earlier (not in FY22) where Environmental Clearance (EC)/approval and permits as applicable
are in place. The significant direct impact as identified in EIA study was on marine biodiversity for the Company's
marine projects and pollution load to the nearby settlements, water bodies and forest. All the requisite environmental
management plans including marine biodiversity conservation plan are in place and implemented. All the regulatory
compliance reports are being submitted as mentioned in the EC/Approval terms and conditions. Further, all the applicable
Consent to Establish (CTE) and Consent to Operate (CTO) are in place for Batching Plants, Precast Yards, Fabrication Yard,
and Industrial Facilities as applicable.
Water Impact:
With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details
of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation
activities.
5.
(optional) – the relevant metric may be
selected by the entity
Unit
FY21-22#
FY20-21#*
Metric tonnes of CO2
equivalent
(Current Financial Year)
4,976,909
(Previous Financial Year)
Metric tonnes of CO2
Equivalent/ Billion INR
5,000
#Excluding transit houses, guest houses, holiday homes and company owned residential facilities as part of the scope for both FY21-22 and
FY20-21
*In FY20-21 the data was not captured by the Company
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assessment has been conducted by DNV, India.
Corporate
Overview
Management
Discussion and Analysis
Integrated Statutory Financial
Report
Reports
Statements
LARSEN & TOUBRO
6.
(a) Rainwater Tanks: 60 KL/year
3.
4.
Promoting sustainable construction (i) Reduction in CO2 impact by using
6.
Food waste composting
supplementary cementitious materials in
concrete
(ii) Reduction in the water usage by
replacing conventional water curing with
curing compound
(i) Recycling food waste.
(ii) Improving Hygiene in the workplace
(iii) Reducing stagnation of food waste at
Drains.
(i) Emission Impact: Supplementary Cement
Materials: 119,946 tCO2e
(ii) Water Impact: (a) Curing Compound:
2,020.8 KL (b) Superplasticizers:
44,479.2 KL
(iii) Savings through reduction in raw
material usage: * 160 crores
(i) 1kg of food waste is equivalent to 2.5kg
of CO2 emission, composting of 4
tonnes of food waste results in avoiding
emissions around 10 tCO2e/year4
(ii) Impact on employee or society: 50
employees are trained & 135 people are
benefited from the fertilizer.
Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
The Company has established emergency preparedness plans at each project site to deal with the emergency situations.
It also provides response procedures for preventing and mitigating the hazard & risk and environmental impacts arising
from emergency situations including the provision for first aid. In the event of any occurrence of an emergency, the same
shall be investigated and appropriate preventive measures would be initiated to avoid recurrence in future. Relevant
information and training related to emergency preparedness and response shall be provided to the interested parties. The
duties and responsibilities of all the workers are being communicated periodically.
Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or
adaptation measures have been taken by the entity in this regard.
No significant adverse impact reported from any value chain partners. A separate Code of Conduct (CoC) has been
extended to vendors and service providers which covers the need for compliance with environmental regulations, health
and safety, labour practices, human rights aspects, minimum wages, freedom of association, collective bargaining,
prohibition of child labour and forced and compulsory labour, ethical behaviour, transparency in business processes and
environment conservation. All new vendors/service providers need to sign the CoC as part of the initial empanelment
process. Timely internal environmental management system audit for ISO 14001:2015 and external audits are conducted
to evaluate compliance which also includes the Company's value chain partners (supply chain partners) too.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental
impacts.
All supply chain partners are required to sign a CoC which covers the need for compliance including environmental
regulations. In FY23, the Company intends to assess some supply chain partners for environmental impacts as pilot
projects.
4 Source: https://www.newfood magazine.com/article/153960/food-waste-climate/
248
Details of the initiative (Web-link, if any, Outcome of the initiative
may be provided along-with summary)
5.
No
Initiative undertaken
Alternate material for Backfilling
and Temporary works in
Underground Metro Station
Extension of electrically powered
gantry cranes
Storm Water Drain for Groundwater
recharge
(ii) Usage of organic waste for treating
kitchen & organic waste
(b) Sewage Treatment Plant (STP):
96,000 KL/yr
(iii) Using AC condensate water for domestic (iii) Waste Impact: 135 tonnes/Year
reuse
(iv) Highly efficient HVAC equipment lifts
with Regen drive for energy savings
Use of Crusher Dust (CRF-Crushed Rock
Fines) and TBM (Tunnel Boring Machine)
Excavated Muck instead of M-Sand in CLSM
(Controlled Low strength Material) for
Backfilling and Temporary Works
Total Scope 3 emission intensity
L&T Modular fabrication is into fabrication of
modular structures for onshore and offshore
installation. Fabrication of such structures
involve extensive handling of individual
steel members with weight ranging from
200 Kilograms to a higher range of 8,000
kilogram.
(ii) Emission Impact: 111 tCO2e
(iii) Water Impact: 2525.6 KL
(iv) Waste impact: 1.15 tonnes
(v) Saving through reduction of water
usage: 0.08 Cr
(vi) Energy saving cost: 0.15 Cr.
(i) Emission Impact: 4874 MT/year
(ii) Energy saving cost: 1.5 million USD
(iii) 30% higher travel speed (No load)
2 Source: https://timeforchange.org/plastic-bags-and-plastic-bottles-co2-emissions-during-their-lifetime/
3 Source: https://foodprint.org/blog/plastic-water-bottle/
247
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
7.
8.
Sr.
(i) Savings through reduction in raw
material usage: ₹ 1.31 Cr.
turnover
Total Scope 3 emissions per rupee of
Total Scope 3 emissions (Break-up of
the GHG into CO2, CH4, N2O, HFCS,
PFCs, SF6, NF3, if available)
- No treatment
- With treatment - please specify level of Treatment
(iii) To Seawater
- No treatment
- With treatment - please specify level of Treatment
(iv) Sent to third-parties
- No treatment
- With treatment - please specify level of treatment
(v) Others
- No treatment
- With treatment - please specify level of Treatment
Total water discharged (in kilolitres)
*Data for the above are not captured for both FY21-22 and FY20-21.
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assessment has been conducted by DNV, India.
Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
Currently mapping is in progress for the Company's permanent facilities and offices. The data will be provided for FY23.
For each facility / plant located in areas of water stress, provide the following information:
(i) Name of the area
(ii) Nature of operations
(ii) To Groundwater
- With treatment - please specify level of Treatment
- No treatment
| |
9,520,137
8,138,810
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assessment has been conducted by DNV India.
Corporate
Overview
Management
Integrated
Discussion and Analysis
(iii) Water withdrawal, consumption and discharge in the following format:
Report
2. Provide the following details related to water discharged:
No wastewater is discharged from any office or plant locations.
LARSEN & TOUBRO
FY 21-22*
FY 20-21*
Parameter
(Current Financial Year)
(Previous Financial Year)
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
Statutory Financial
Reports
Statements
Energy consumption through other sources (F)
3.
Water withdrawal by source (in kilolitres)
- With treatment - please specify level of treatment
(iii) Into Seawater
- No treatment
- With treatment - please specify level of treatment
(iv) Sent to third-parties
- No treatment
- With treatment - please specify level of treatment
(v) Others
- No treatment
-
- With treatment – please specify level of treatment
Total water discharged (in kilolitres)
FY 21-22*
FY 20-21*
(Current Financial Year) (Previous Financial Year)
*Currently, the Company does not have an assessment of operations that could be in water stressed area, same would be done by FY24
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency.
Yes, the assessment has been conducted by DNV, India.
Please provide details of total Scope 3 emissions & its intensity, in the following format:
| |
246
Parameter
· No treatment
(ii) Into Groundwater
- With treatment - please specify level of treatment
- No treatment
Total Waste generated (in metric tonnes)
(ii) Groundwater
(iii) Third party water
(iv) Seawater desalinated water
(v) Others
Total volume of water withdrawal (in kilolitres)
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover (Water consumed / turnover)
FY 21-22*
Parameter
FY 20-21*
|||||
245
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
4.
Parameter
Water intensity (optional) - the relevant metric may be selected by the
Entity
Water discharge by destination and level of treatment (in
kilolitres)
(i) Into Surface water
(Current Financial Year) (Previous Financial Year)
Parameter
2,215
Integrated Annual Report 2021-22
(Current Financial Year) (Previous Financial Year)
2,001,310
3,251,265
1,369,437
1,637,695
4,087,726
Business Responsibility & Sustainability Reporting
FY20-21#
(iv) Seawater desalinated water
2,980,360
3,291,630
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)
9,602,372
9,997,484
Total volume of water consumption (in kilolitres)
9,410,093
(v) Others
9,677,094
FY21-22#
(ii) Groundwater
984,692 GJ
7,251,162 GJ
9,647,266 GJ
9,693 GJ/Bn
8,235,854 GJ
9,564 GJ/Bn
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the sustainability data assurance is carried out by DNV India.
(iii) Third party water
Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and
Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have
been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
3.
4.
240
Provide details of the following disclosures related to water, in the following format:
Parameter
Water withdrawal by source (in kilolitres)
(i) Surface water
The Company does not have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India.
8,365,802 GJ
Water intensity per rupee of turnover (Water consumed / turnover)
11,237
Unit
Tonnes
Tonnes
Tonnes
Persistent organic pollutants (POP)
Volatile organic compounds (VOC)
Hazardous air pollutants (HAP)
Particulate matter (PM)
Others - (ODS)
*The data is partially reported for both the years
(Current Financial Year)*
(Previous Financial Year)*
0.9
1.0
0.1
8.3
Tonnes
9,454
SOX
Parameter
Water intensity (optional) - the relevant metric may be selected by the entity
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the sustainability data assurance is carried out by DNV India.
Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
The Company has implemented a mechanism of Zero Liquid Discharge in 19 manufacturing units and office campuses out
of its 20 units where the Company reuses and recycles all the wastewater generated after treatment. All the wastewater
Corporate
Overview
Management
Discussion and Analysis
NOx
Integrated
Report
Statements
LARSEN & TOUBRO
5.
is collected and treated in STP/ETPs and treated wastewater is completely recycled or reused as appropriate. The Company
is in the process of conducting comprehensive water audits of these facilities.
Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
FY21-22
FY20-21
Statutory Financial
Reports
0.2
1,281,464 GJ
FY 20-21#
Mumbai Coastal Road Project (package 1 and 4)
Mumbai Trans Harbour Link Project (Package 1
and 3)
2
1
Whether the conditions of environmental
approval / clearance are being complied
with? (Y/N) If no, the reasons thereof and
corrective action taken, if any.
No.
Type of Operations
Location of operations/offices
Construction projects
S.
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
approvals / clearances are required, please specify details in the following format:
242
Yes
Yes
Yes
Construction
Yes
Industrial Facility
Yes
Industrial Facility
Yes
Construction projects
Industrial Facility
Construction projects
Proposed residential, I.T & Commercial building,
Saki Vihar Road, Powai East, Mumbai - 400 072.
MFF Hazira
High Speed Rail Project (Package C4 and C6)
L&T Heavy Engineering, Ranoli Plant
Kattupalli Ship Building Facility
7
4569
3
Yes
(Current Financial Year) (Previous Financial Year)
Corporate
Overview
Integrated
Report
Not applicable
239
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
Principle 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above.
2.
Total electricity consumption (A)
Total fuel consumption (B)
Energy consumption through other sources (C)
Total energy consumption (A+B+C)
Energy intensity per rupee of turnover (Total energy consumption/ turnover
in rupees)
Energy intensity (optional) – the relevant metric may be selected by the entity
FY 21-22#
Parameter
Management
Discussion and Analysis
Others please specify
Wages
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
3.
4.
and the CoC. The Company has laid down its CoC, which is applicable to Board members, senior management and
employees. The objective is to be committed and vigilant towards the ethical conduct of business processes and instil
a sense of ownership within the Company. All designated employees, including Board Members, adhere to the CoC
and provide an annual declaration of their compliance. The Code covers all aspects of functioning, including anti-trust
behaviour, information security, insider trading rules, professional engagements, use of Company assets and brand logo,
intellectual property, human rights etc. A separate CoC has been extended to vendors and service providers which covers
the need for compliance with environmental regulations, health and safety, labour practices, ethical behaviour, human
rights aspects, minimum wages, freedom of association, collective bargaining, prohibition of child labour and forced and
compulsory labour. The Company is committed to treating every employee with dignity and respect. The Company has
formulated a policy on 'Protection of Women's Rights at Workplace' as per the provisions of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules, 2013. The policy is applicable to all L&T
establishments located in India.
Further, the Company conducts regular audit and inspection through internal audit protocols by EHS and IR department
on EHS and human rights issues. The scope of audit covers all project sites, manufacturing units and offices including the
value chain partners (supply chain partners) that are active in the Company's construction projects. Quarterly compliance
report is prepared by all business verticals and submitted to corporate compliance department for further review, record
and action plan. Additionally, the top 25 suppliers and large number of other suppliers are assessed through a detailed
checklist of more than 40 questions on EHS parameters.
Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons
with Disabilities Act, 2016?
-
Most of the permanent facilities and office buildings are accessible to differently abled visitors, as per the requirements of
the Rights of Persons with Disabilities Act, 2016.
Child labour
Forced/involuntary labour
Sexual harassment
Discrimination at workplace
% of Value chain partners (by value of business done with such partners) that were assessed
Currently, this is not being assessed.
However, the Company's Suppliers CoC addresses many of these aspects. All suppliers have to
necessarily sign the CoC for dealing with the Company and are expected to comply with its
requirements.
5.
Details on assessment of value chain partners:
9.4
980,433
2.6
Yes, the Company undertakes projects and initiatives to reduce the Scope 1 and Scope 2 emissions and the Company has
set a target of reduction of energy intensity by 2.5% per annum for Scope-1 and 2% per annum for Scope-2 over 2021
as baseline. The Company has also declared its commitment to become carbon neutral by 2040 and water neutral by
2035. For more details, refer to chapter on Natural Capital in the Integrated Report section.
Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
Yes- The assurance has been conducted by DNV India.
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21
*GHG emissions intensity have been derived as per the Scope of Reporting and as per ISO 14064-1 standard. The Company has also calculated
intensity (tCO2e Bn).
864
893
Metric tonnes of CO2
Equivalent Per Bn
210,763
274,028
Metric tonnes of CO2
Equivalent
533,423
615,035
Metric tonnes of CO2
Equivalent
FY20-21*#
(Previous Financial Year)
FY21-22*#
(Current Financial Year)
Unit
Total Scope 1 and Scope 2 emissions per
rupee of turnover
Total Scope 2 emissions (Break-up of the GHG
into CO2, CH4, N2O, HFCS, PFCs, SF6, NF3, if
available)
Total Scope 1 emissions (Break-up of the GHG
into CO2, CH4, N2O, HFCS, PFCs, SF6, NF3, if
available)
Parameter
7.
Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity in the following format:
6.
Yes, the assurance is carried out by DNV India.
241
0.6
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
1,405
3
Cannot be ascertained
Maintenance of Public Green Spaces (Saki Vihar Median & Nashik
Flyover garden)
2
% of beneficiaries from
vulnerable and marginalized
groups
No. of persons
benefitted from CSR
Projects
12,880
Awareness Programmes and Engagement with Community
1
No
CSR Project
Sr.
Corrective action taken
Brief of the case
252
Details of beneficiaries of CSR Projects:
Covid-19 Emergency Response (Ventilators)
Cannot be ascertained
4
Covid-19 Emergency Response
9
100% of the Projects serve the
beneficiaries who are from the
504
Support to Community Learning Centers for Urban Children from
Vulnerable Communities
8
310
Support to Community Learning Centers Through Study Centers &
Balwadis
6.
7
STEM Programme In Mumbai For Schools
6
10
1,000
Repair and Renovation of Day Care Center, for Children
5
9,200
50
Early Childhood Intervention through Pre-School Readiness
Programme
Name of authority
Benefits of calculating
benefit share
39
41
NA W
School Infrastructure Development
40
School Infrastructure Development
Support for Special Education for Abandoned Children with
Intellectual Disability
95
322
4,456
109
42
Infrastructure Support for Blood Storage
Cannot be ascertained
43
'Green Hands' - Building Awareness for Greenery Development in
Nearby Communities
Every Child a Scientist Project
38
vulnerable and backward
community of the society.
100% of the Projects serve the
415 beneficiaries who are from the
under privileged, marginalised,
Benefit (Yes/No)
Owned/ Acquired (Yes/
No)
traditional knowledge
Intellectual Property based upon
Sr. No.
5.
Not applicable as the Company does not have any intellectual properties owned or acquired by the entity (in the current
financial year), based on traditional knowledge.
Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
wherein usage of traditional knowledge is involved:
Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
current financial year), based on traditional knowledge:
Support to Study Centers for Urban Children from Vulnerable
Communities
36
Educational Support for Special Children
37
Support to Evening School For Children from Vulnerable
Communities
44
590
Not applicable. Although the Company engages some of the marginalised and vulnerable groups (Women self-help
group, local farmers, small businessman) for its canteen operation for food supplies, it is very negligible as compared
to the total procurement. The food supplies procured for three canteen operations (Talegaon, Knowledge Campus
Vadodara and AMN Hazira Campus) amounts to 43.4 L for FY22.
504 under privileged, marginalised,
vulnerable and backward
community of the society.
10
31
30
29 Maintenance of Public Green Spaces
Community Health Centre, Thane
Skill Training Academy, Madh
Enhancing Education And Infrastructure Support, Bhim
Covid Response - Provision of Oxygen Generating Plants
Support to Health & Dialysis Centers and Mobile Medical Units
Educate and Empower Children at Risk of Dropping out in Pathardi
Women Health and Child Nutrition Programme, Kumbhalgarh
Infrastructure Support and Education Enhancement Programme,
Kumbhalghar
Integrated Community Development Programme, Sewantri
STEM Education Project in Urban Schools
Women Health and Child Nutrition, Gudiyatham
28
27
26
25
24
23
www www N N N
Educational Support to Vulnerable Children
Skills Development Training for Rural Youth, Serampore
32 Providing Educational Support to Tribal Communities
1,430
44,239
Cannot be ascertained
29,227
436
1,500
3,402
1 2 3 4 5
410
16,297
3,571
9,000
17,158
75,000
% of beneficiaries from
vulnerable and marginalized
groups
No. of persons
benefitted from CSR
Projects
178,239
22
21
20
7,853
8,355
20,037
4,175
14 Integrated Community Development Programme, Devgaon
Integrated Community Development Programme, Nagzari
Integrated Community Development Programme, Gudiyatham
3156
Community Development Activities
30,376
Bhim
Infrastructure Improvement of Schools and Anganwadi Centers,
12
861
Early Childhood Intervention through Pre-School Readiness
Programme
11
1,308
Mobile Toy Van Outreach
3,571
1,268
Corporate
Overview
Discussion and Analysis
19
18
35
Infrastructure Development Support at School
34
Autocad Training for Underprivileged Youth
33
Management
No
Sr.
LARSEN & TOUBRO
Statements
Reports
Financial
Statutory
Integrated
Report
CSR Project
17 Community Sanitation and Awareness, Gudiyatham
Aspirational District
2.
*This percentage value is based on the seven mega projects with project value over 5,000 crore and the calculation is done for material sourced
directly within the district and neighbouring districts to the total project cost of these seven projects.
Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):
2.
Details of negative social impact identified
No negative social impact has been identified in social impact
assessment.
NA: Not available
Corrective action taken
(c) What percentage of total procurement (by value) does it constitute?
NA
Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies:
3.
Sr. No.
4.
Business Responsibility & Sustainability Reporting
Integrated Annual Report 2021-22
251
Not Applicable.
(b) From which marginalized /vulnerable groups do you procure?
* 2,149 Cr
Not Available
L&T Limited is in construction and engineering business, and majority of the Company's procurement is of industrial
origin and procured in bulk. The Company does not have a preferential procurement policy to purchase from
suppliers comprising marginalized /vulnerable groups.
18.8% *
FY 20-21
For CSR Projects
In the Community based CSR projects, L&T representative from CSR team facilitates the interaction between the
beneficiary groups, addresses concerns and resolves issues if any.
Process followed is as under:
(i) During monthly or quarterly review meetings community conflicts that impact the implementation or outcomes of
the project are discussed.
(ii) During the quarterly review visit by L&T representative, concerns and issues are discussed with the community-based
groups e.g. Farmer's Association, Self Help Groups or Village Development Committees.
(iii) L&T along with other stakeholders analyse the conflicts, discuss the alternatives, pros and cons and identify the
probable strategies/solutions. Community-groups are encouraged to resolve the issues by negotiating with the
concerned persons or groups in the community.
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
(iv) Community Groups are empowered by disseminating relevant knowledge, information, conducting skills training and
encouraging them to assume leadership in conflict management.
(v) If the community themselves are unable to resolve a certain conflict, L&T representatives intervene and facilitate
negotiations between different groups in the community and stakeholders.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Directly sourced from MSMEs/small producers
Sourced directly from within the district and neighbouring districts
FY 21-22
Current Financial Year
4 % (2,559 Cr)
Previous Financial Year
At the Company's construction sites, public complaints are collected through suggestion box and mail. The complaints
or grievances received from community is addressed by the site management involving the industrial and administration
department and also the clients, as applicable. Any issue which is unresolved or needs management intervention is
escalated to the respective business heads. Any community member can raise complaint on Company's toll-free number
and email address provided at Company's website which is monitored, addressed and proper record is maintained under
Whistle Blower Policy.
(a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized /vulnerable groups?
7,590,784
12
0 1 2 3 4
11
10
9
8
Singrauli (MP) Covid Relief
Kalburgai (Karnataka) Covid Relief
6
69
Ranchi (Jharkhand) Education
5
Hazaribag (Jharkhand) Education
4
Bastar (Chhattisgarh) Education
3
Begusarai (Bihar) Covid relief
2
Vishakhapatnam (AP) Skills training, Education, Environment and Covid relief
14
55,025,105
Gadchiroli (Maharashtra) Covid Relief
Nabarangpur (Odisha) Covid Relief
2,323,775
335,000
300,000
330,000
29,972
7,136,211
330,000
7,640,050
443,000
773,000
178,416
990,000
26,624,897
Amount spent (In INR)
TOTAL
Telangana (Adilabad) Covid Relief
Virudhunagar (Tamil Nadu) Covid Relief
Rayagada (Odisha) Covid Relief
Naupara (Odisha) Covid Relief
Balangir (Odisha) Covid Relief
Describe the mechanisms to receive and redress grievances of the community.
the FY (in INR)
Amount paid to PAFs in
National
10
National Fire Protection Institution
National
11
Indian Electrical and Electronics Manufacturers' Association (IEEMA)
National
12
India Smart Grid Forum (ISGF)
National
13
Central Board of Irrigation and Power (CBIP)
National
14
India Lead Zinc Development Association (ILZDA)
National
15
Society of Indian Defence Manufacturers (SIDM)
National
National Safety Council
Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity,
based on adverse orders from regulatory authorities:
9
Indian Institute of Chemical Engineers (IIChE)
Associated Chambers of Commerce and Industry of India (ASSOCHAM)
National
National
3.
Bombay Chamber of Commerce & Industry (BCCI)
State
4.
Bureau of Indian Standards
National
5.
Construction Industry Development Council (CIDC)
National
6
Confederation of Indian Industry (CII-CESD and CII - GBC)
National
7
Cannot be ascertained
Federation of Indian Chambers of Commerce and Industry (FICCI)
National
8
National
During the year, there were no such cases.
Name of authority
Brief of the case
ΝΑ
Yes (Thinkthrough
Consulting, New
Delhi)
Results
communicated
in public
domain
Yes
Web Link if available
https://investors.larsentoubro.com/
Listing-Compliance.aspx
stakeholder participation.
NA: Data not available
2.
3.
250
Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
entity, in the following format:
Not applicable. No rehabilitation and resettlement were undertaken by the entity during this reporting period.
Sr. No
Name of the project for
which R&R is going
State
District
No. of Projects
Affected families
% of PAFS
covered by R&R
ΝΑ
of efficiency, effectiveness and
evaluated on key parameters
A third-party social audit was
conducted, covering L&T's
key CSR thematic areas of
education, health, EHS, skill
development and water &
sanitation. Projects across
geographical locations were
Corrective action taken
Leadership Indicators
1. Details of public policy positions advocated by the entity:
Given L&T's expertise, the Company proactively engages with various stakeholders including industry chambers,
associations, governments and regulators and provides its inputs on various areas such as infrastructure development
and construction, renewable energy, space, health and safety, amongst others. Over the years, L&T executives have
played a key role in helping shape public policy and been invited to several committees and task forces. The Company is
committed to engage in the public policy advocacy process in a responsible and ethical manner.
Sr. No. Public Policy Covered
Method restored for Whether information in
such advocacy
public Domain
Frequency of
review by Board
1
Web Link if
available
Integrated Annual Report 2021-22
Business Responsibility & Sustainability Reporting
Principle 8: Businesses should promote inclusive growth and equitable development
Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current
financial year.
Name and brief detail of the
project
SIA
Notification
Number
Date of
Notification
Whether
conducted by
independent
external agency
249
Reach of trade and industry chambers/
associations (State/National)
44
45 Oxygen Concentrator Machines to Government Hospitals, Chennai
(Covid Relief)
year
year
Data privacy
Advertising
Cyber-security
Delivery of essential
Services
Restrictive Trade Practices
Unfair Trade Practices
Other
| | |
| | |
*The Company is putting a process to compile the above data for FY23
4.
Details of instances of product recalls on account of safety issues:
| | |
||||
The Company does not have any specific consumer products except few heavy machines and machine parts for industrial
and defence use. No product recalls (voluntary or forced) were made on grounds of safety in FY22.
Remarks
Pending
resolution
at end of
Received
during the
Remarks
•
•
Construction Capability
Project Quality
Management
Customer complaints are received through email, transmittal letter communications and verbal communications directly
to project management teams. A complaint register is maintained for customers to record their complaints as per the
established QMS documented information. The customers can also lodge complaint through the toll-free number and
email address provided on the Company website.
Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:
As a percentage to total turnover
Environmental and social parameters relevant to the product
Safe and responsible usage
Voluntary recalls
Forced recalls
Recycling and/or safe disposal
Not applicable as the Company does not have specific consumer
product or product range except few heavy machines and
machine parts for industrial and Defence use.
FY21-22*
(Current Financial Year)
FY20-21
(Previous Financial Year)
Received
during the
year
Pending
resolution at
end of year
Number of consumer complaints in respect of the following:
•
Number
5.
Provide the following information relating to data breaches:
(a) Number of instances of data breaches along-with impact
There were no data breaches during the year.
(b) Percentage of data breaches involving personally identifiable information of customers -
NIL
257
Integrated Annual Report 2021-22
LARSEN & TOUBRO LIMITED
Regd. Office L&T House, Ballard Estate, Mumbai 400 001.
CIN L99999MH1946PLC004768
Email: igrc@larsentoubro.com • Website: www.larsentoubro.com
Tel No: 022-67525656 • Fax No: 022-67525858
Notice
Notice
NOTICE IS HEREBY GIVEN THAT the Seventy Seventh
Annual General Meeting of LARSEN & TOUBRO LIMITED
will be held through VIDEO CONFERENCING OR OTHER
AUDIO-VISUAL MEANS on Thursday, August 04, 2022
at 03.30 P.M. IST to transact the following business:-
1) To consider and adopt the audited financial statements
of the Company for the year ended March 31, 2022
and the Reports of the Board of Directors and Auditors
thereon and the audited consolidated financial
statements of the Company and the report of the
auditors thereon for the year ended March 31, 2022;
2)
To declare a dividend on equity shares;
3) To appoint a Director in place of Mr. Subramanian
Sarma (DIN: 00554221), who retires by rotation and is
eligible for re-appointment;
5.
The average customer satisfaction score during FY22 was 89%.
Not applicable, as the Company operates in B2B model.
Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/
Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction
relating to the major products / services of the entity, significant locations of operation of the entity or the entity as a
whole? (Yes/No)
6.
Does the entity have a framework/policy on cyber security and risks related to data privacy? If available, provide a
web-link of the policy
Yes, the Company has a framework/ policy on cyber security and risks related to data privacy, available at
https://www.larsentoubro.com/corporate/privacy-policy/.
Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential
services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken
by regulatory authorities on safety of products/services.
None.
256
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Reason for call
Statutory Financial
Reports
Statements
Leadership Indicators
1.
Channels/platforms where information on products and services of the entity can be accessed (provide web link, if
available).
The Company's business offerings can be found on the website: https://www.larsentoubro.com/corporate/our-businesses/
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
The Company does not operate in B2C model except for few heavy machines and machine parts for industrial and
defence use. For aforementioned products, regular interaction with the client/customers are conducted during the
execution phase of a project. The Company extends an opportunity to explain about its products, innovations, new
technology and techniques that are implemented to enhance product quality and work methodology.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
4.
During execution of construction projects and transport of heavy machinery, the clients and concerned departmental
authorities are informed through transmittal letters and their permissions are sought for road closure, traffic diversion and
isolation of essential services.
LARSEN & TOUBRO
4) To appoint a Director in place of Mr. S. V. Desai
Business Responsibility & Sustainability Reporting
2.
70
95
Primary health care programme
3,164
96
Early diagnostic career guidance for school children
5,561
Infrastructure support for PHC, Minjur
Cannot be ascertained
98
Community development for water and sanitation Programme
99
Village Development Programme
100
Water Management Initiatives
101
Wastewater Treatment, Alva village
Health & Nutrition at Child Care Centre
94
200
Infrastructure support to school
No. of persons
benefitted from CSR
Projects
% of beneficiaries from
vulnerable and marginalized
groups
Education Development Programme, Mumbai
3,197
89
Education Development Programme, Vadodara
5,076
90 Engineering Futures Programme - STEM intervention
102
1,595
Personality development and life skills Programme for children 'Just
for Kicks', Mumbai
789
92
97
23000 2
School on Wheels' Education support for children
260
93
91
3.
Providing drinking water facilities
103
111
L&T Public Charitable Trust
Total
143,638
1,127,544
The Company's projects are designed to serve the beneficiaries from the under privileged, marginalised, vulnerable and
backward communities of the society.
Principle 9: Businesses should engage with and provide value to their consumers in a
responsible manner
Essential Indicators
1.
Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
The Company does not have any specific consumer products except few heavy machines and machine parts for Industrial
and Defence use. The Company collects feedback forms from client/customer every six months as per the Company's
established QMS documented information. Customers evaluate the performance and provide rating on the following
parameters:
•
Designing / Detail Engineering
•
Planning
255
Integrated Annual Report 2021-22
11,663
110 Covid-19 Vaccination
Cannot be ascertained
Oxygen Augmentation - PSA Oxygen Generation Unit
Plastic Recyclothon
202,560
104
Village Development Programme
889
105
Infrastructure support for skilling
100
10,442
100% of the Projects serve the
4,510 beneficiaries who are from the
under privileged, marginalised,
24,007
vulnerable and backward
577 community of the society.
500
106
Cannot be ascertained
107
Oxygen Augmentation - PSA O2 Unit Civil & electric work
Cannot be ascertained
108
Health infrastructure support
300
109
Infrastructure for COVID relief
Skill Upgradation Training for Women Construction Workers
5)
(DIN: 07648203), who retires by rotation and is eligible
for re-appointment;
Maintenance of Public Green Spaces
62
9,127
Alternate Energy for Schools
61
6,518
Providing Educational Kits
60
3,800
Support to Community Development Centre at Mora
59
2,805
Awareness and Engagement with Community
58
83,028
Health & Hygiene Programme for Adolescent Health Awareness
57
Cannot be ascertained
63
Providing Digital Classrooms in Schools
7,739
72
9,925 100 % of the Projects serve the
beneficiaries who are from the
571
under privileged, marginalised,
496 vulnerable and backward
760 community of the society.
Skills Development Training for Rural Youth, Pilkhuwa
71
Skills Development Training for Rural Youth, Kanchipuram
70 Skills Development Training for Rural Youth, Panvel
69
Repairs to Infrastructure Facilities in School
68
2,015
1,284
812
Skills Development Training for Rural Youth, Jadcherla
Skills Development Training for Rural Youth, Ahmedabad
Awareness and Cancer Detection
67
66
65
105
Awareness Programme and Engagement with Community
64
586
Repairs to Infrastructure Facilities in School
'Aadhaar' Skill Building for Community Women
HIV Aids Awareness Prevention & Support System
891
136
115
25
Skill Development Programme
50
Mobility Aids and Mainstreaming
49
Support for Education to Vulnerable Children
48
Providing Skill Training to Youth on Data Entry
47
Cannot be ascertained
E-Content Development for Skills Development Training Institutes
for Rural Youth
46
46
73
500
253
Integrated Annual Report 2021-22
254
Business Responsibility & Sustainability Reporting
5556
66
23,590
10,888
Blood Donation Awareness & Camp, Kolkata
420
% of beneficiaries from
vulnerable and marginalized
groups
No. of persons
benefitted from CSR
Projects
60
Vocational Training for Women
CSR Project
Sr.
Rural Health Support
54
Providing Educational Kits
53
52
51
No
6)
80
Renovation of Community Center at Belpada Village
S.
Name of the trade and industry chambers/ associations
No.
No
CSR Project
Sr.
20%
88
LARSEN & TOUBRO
Statements
Reports
Financial
Statutory
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the
entity is a member of/ affiliated to.
B.
2.
A. Number of affiliations with trade and industry chambers/ associations.
To appoint a Director in place of Mr. T. Madhava Das
(DIN: 08586766), who retires by rotation and is eligible
for re-appointment;
To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
"RESOLVED THAT pursuant to Sections 196, 197,
203 and other applicable provisions, if any, of the
Companies Act, 2013 read with Schedule V of the said
Act and the Rules made thereunder, approval be and
is hereby granted to the re-appointment of Mr. S.N.
Subrahmanyan (DIN: 02255382) as the Chief Executive
Officer and Managing Director of the Company with
effect from July 1, 2022 upto and including June 30,
2027.
RESOLVED FURTHER THAT Mr. S.N. Subrahmanyan in
his capacity as Chief Executive Officer and Managing
Director, be paid remuneration as may be fixed by
the Board, from time to time, as prescribed under the
Companies Act, 2013 and within the limits approved
by the Members as per the details given in the
explanatory statement.
11
7) To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
"RESOLVED THAT pursuant to the provisions of
Regulation 23(4) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
("Listing Regulations"), the applicable provisions
of the Companies Act, 2013 alongwith the
Rules made thereunder and other applicable
laws including any amendments, modifications,
variations or re-enactments thereof, the Company's
Policy on Related Party Transactions and as per the
recommendation/approval of the Audit Committee
and the Board of Directors of the Company, approval
of the Members of the Company be and is hereby
accorded for entering into and/or continuing to
enter into transaction(s) with Larsen Toubro Arabia
LLC, L&T Modular Fabrication Yard LLC, Larsen
& Toubro Electromech LLC, Larsen & Toubro
Heavy Engineering LLC, Larsen & Toubro Kuwait
General Contracting Co WLL, subsidiaries of the
Company and Related Parties within the meaning
of Section 2(76) of the Companies Act, 2013 and
Regulation 2(1)(zb) of the Listing Regulations for
providing Parent Company Guarantees or Corporate
Guarantees or Comfort Letters or Undertakings, on
behalf of the above subsidiaries, from this Meeting
till the next Annual General Meeting of the Company
or for a period of fifteen months, whichever is earlier,
upto an amount not exceeding * 6,000 crore or
US$ 800 Mn, whichever is higher, on such terms
and conditions as may be decided by the Board of
Directors/Audit Committee of the Company as they
may deem fit.
RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby authorised to delegate
all or any of the powers conferred on it to any
Committee of Directors and/or Managing/Whole-time
Director(s) of the Company and to do all such acts and
take all such steps as may be considered necessary or
expedient to give effect to the aforesaid resolution.
RESOLVED FURTHER THAT all actions taken by the
Board in connection with any matter referred to or
contemplated in this resolution, be and are hereby
approved and confirmed in all respects."
101
8) To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
"RESOLVED THAT pursuant to the provisions of
Regulation 23(4) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
("Listing Regulations"), the applicable provisions
Association of Business Communicators of India
Corporate
Overview
Management
Integrated Statutory Financial
Discussion and Analysis Report
Reports
Statements
LARSEN & TOUBRO
Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do
so in a manner that is responsible and transparent
1.
258
73
7,800
2,247
79
3,295
Basic Infrastructure Upgradation in Government School
78
3,000
Infrastructure Development (Solar Power System) in Community
77
14,714
Infrastructure Development at Government Schools
76
908
Construction Skill Training Institute for Rural Youth, Attibelle
75
998
Skills Development Training for Rural Youth, Cuttack
74
120
Skills Development Training for Rural Youth, Hyderabad
349
80
Infrastructure and Learning Enhancement Programme in
Government Schools
8,000
125
Cannot be ascertained
87 Awareness Programme and Engagement with Community
Maintenance of Public Green Spaces
86
85
Education Support for Special Children
178
Wash Facilities for Schools
Multi Skill Training Center for Rural Youth
Maintenance of Public Green Spaces
82
84
83
800 800 80 00 00
81
10,599
Water Conservation Initiatives for Community
1.
Self-declaration by the non-resident shareholder
as to:
Mumbai, May 12, 2022
No.
Date of
Declaration
For the year
ended
86
09.09.2015 31.03.2015
Due for
Transfer on
15.10.2022
87
26.08.2016 31.03.2016
02.10.2023
88
89
90
91
92
93
94
22.08.2017 31.03.2017 27.09.2024
23.08.2018 31.03.2018 28.09.2025
01.08.2019 31.03.2019 06.09.2026
18.03.2020 31.03.2020 24.04.2027
13.08.2020 31.03.2020 18.09.2027
28.10.2020 31.03.2021 02.12.2027
05.08.2021 31.03.2021 09.09.2028
ཆཙ
Members who have not encashed their dividend
warrants pertaining to the aforesaid years may
approach the Company/KFintech, for obtaining
payments thereof atleast 20 days before they are
due for transfer to the said fund.
Dividend
Pursuant to Section 124 of the Companies Act, 2013
the unpaid dividends that are due for transfer to the
Investor Education and Protection Fund are as follows:
The Register of Directors and Key Managerial
Personnel and their shareholding maintained under
Section 170 of the Companies Act, 2013, the Register
of Contracts or Arrangements in which the directors
are interested and maintained under Section 189 of
the Act, and the relevant documents referred to in this
Notice will be available electronically for inspection by
the Members during the AGM.
[I] All matters included in this Notice are unavoidable
and hence are proposed for seeking approval at this
AGM. All shareholders will be able to inspect all
documents referred to in this Notice electronically
without any fee from the date of circulation of this
Notice up to the date of AGM. Members seeking
to inspect such documents can send an email to
LNTGOGREEN@larsentoubro.com.
receipt of all the aforesaid documents/details
b)
dematerialization of all the securities in such
folios.
7.
Members may please note that SEBI vide its
Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/
CIR/2022/8 dated January 25, 2022 has
mandated the listed companies to issue
Final Dividend if approved by the Members at this
Meeting will be directly credited to the bank accounts
of the shareholders as on the Record Date i.e Friday,
July 22, 2022. In case of shareholders who have
not registered their bank details with the Company,
dividend warrants/demand drafts will be sent to them
in due course of time.
securities in dematerialized form only while
securities certificate; claim from unclaimed
suspense account; renewal/exchange of
securities certificate; endorsement; sub-division/
split of securities certificate; consolidation
of securities certificates/folios; transmission
and transposition. Accordingly, members are
263
Integrated Annual Report 2021-22
Notice
8.
requested to make service requests by submitting
a duly filled and signed Form ISR – 4, the
format of which is available on the Company's
website at https://investors.larsentoubro.com/
DownloadableForms.aspx# and on the website of
KFintech at https://ris.kfintech.com/clientservices/
isc/default.aspx#isc_download hrd. It may be
noted that any service request can be processed
only after the folio is KYC Compliant.
SEBI vide its Notification dated January 24, 2022
has mandated that all requests for transfer of
securities including transmission and transposition
requests shall be processed only in dematerialized
form. In view of the same and to eliminate all
risks associated with physical shares and avail
various benefits of dematerialisation, Members
are advised to dematerialise the shares held by
them in physical form. Members can contact
the Company or KFintech, for assistance in this
regard.
processing service requests viz. Issue of duplicate
[m] Investor Grievance Redressal:
The Company has designated an exclusive e-mail id
viz. IGRC@Larsentoubro.com to enable Investors to
register their complaints, if any.
[n] Adhering to the various requirements set out in the
Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules,
2016, as amended, the Company has during the
Financial Year 2021-22 transferred to the IEPF
Authority all shares in respect of which dividend
has remained unpaid or unclaimed for seven
consecutive years or more as on the due date of
transfer. Details of shares transferred to IEPF Authority
are available on the website of the Company
and the same can be accessed through the link:
http://investors.larsentoubro.com/resources.aspx. The
said details have also been uploaded on the website
of the IEPF Authority and the same can be accessed
through the link: www.iepf.gov.in.
Non-resident shareholders:
For Foreign Portfolio Investor (FPI) category
Shareholders, taxes shall be deducted at source under
Section 196D of the Income Tax Act, 1961 at 20%
(plus applicable surcharge and cess).
For other Non-resident Shareholders, taxes are required
to be deducted in accordance with the provisions of
Section 195 of the Income Tax Act, 1961, at the rates
in force. As per the relevant provisions of the Income
Tax Act, 1961, the tax shall be deducted at the rate
of 20% (plus applicable surcharge and cess) on the
amount of dividend payable to them.
FPI and the non-resident shareholder have the option
to be governed by the provisions of the Double Tax
Avoidance Agreement (DTAA) between India and the
country of tax residence of the shareholder, if they are
more beneficial to them.
To avail the benefit of rate of deduction of tax at
source under DTAA, such non-resident shareholders/
FPIs will have to provide the following:
1. Self-attested copy of the PAN allotted by the
Indian Income Tax authorities;
2.
3.
4.
(f) Category I or a Category II Alternative Investment
Fund (registered with SEBI as per section 115UB)
as per Notification 51/2015
The following payees are also not subject to TDS in
view of the provisions of Sections 196, 197A of the
Income Tax Act, 1961 and CBDT Notification:
(b) Reserve Bank of India [section 196(ii)]
(c) a Corporation established by or under a Central
Act which is, under any law for the time being
in force, exempt from income-tax on its income
[section 196(iii)]
(d) Mutual Fund [section 196(iv)]
Tax residency certificate from the jurisdictional
tax authorities confirming residential status for
FY 2022-23;
Declaration by the non-resident in prescribed
Form 10F;
•
•
Eligibility to claim tax treaty benefits based on
the tax residential status of the shareholder,
including having regard to the Principal
Purpose Test (if any), introduced in the
applicable tax treaty with India;
No Permanent Establishment/fixed base in
India in accordance with the applicable tax
treaty;
(a) Government [section 196(i)]
a)
(e) any person for, or on behalf of, the New Pension
System Trust referred to in section 10(44)
[sub-section 1E to section 197A]
(c) any other insurer in respect of any shares owned
by it or in which it has full beneficial interest
[clause (c) to 2nd proviso to section 194]
[o] SEBI has decided that securities of listed companies
can be transferred only in dematerialized form with
effect from April 1, 2019. In view of the above and to
avail various benefits of dematerialisation, Members
are advised to dematerialize shares held by them in
physical form.
[p] Dividend income is taxable in the hands of
shareholders and the Company is required to deduct
tax at source from dividend paid to shareholders at the
prescribed rates. For the prescribed rates for various
categories, the shareholders are requested to refer
to the Income Tax Act, 1961. The shareholders are
requested to update their PAN with the Company/
KFintech (in case of shares held in physical mode) and
with the Depositories/Depository Participants (in case
of shares held in demat mode).
Resident shareholders:
For Resident Shareholders, who have provided PAN,
tax shall be deducted at source under Section 194 of
264
Corporate
Overview
Management
Discussion and Analysis
(d) Dividend income credited/paid to a "business
trust", as defined in clause (13A) of section 2,
by a special purpose vehicle referred to in the
Explanation to clause (23FC) of section 10; [clause
(d) to 2nd proviso to section 194]
Report
LARSEN & TOUBRO
the Income Tax Act, 1961 at 10% on the amount of
dividend.
Tax shall be deducted at source at 20% wherein-
(a) shareholders do not have PAN/have not registered
their valid PAN details (including linking Aadhaar
with PAN) in their account/with the Company/
KFintech under Section 206AA
(b) shareholders are classified as specified persons
under Section 206AB
No tax shall be deducted on the dividend payable to a
resident individual if the total dividend to be received
by the resident shareholders during Financial Year
2022-23 does not exceed 5,000. In cases where the
shareholder provides Form 15G/Form 15H and meets
all the required eligibility conditions, no tax will be
deducted at source.
Apart from above cases, following categories of
shareholders are exempt from tax deduction at source:
(a) Life Insurance Corporation of India [clause (a) to
2nd proviso to section 194]
(b) General Insurance Corporation of India/The
New India Assurance Company Ltd/United India
Insurance Company Ltd/The Oriental Insurance
Company Ltd/National Insurance Company Ltd
[clause (b) to 2nd proviso to section 194]
Statutory Financial
Reports
Statements
KFintech shall reverse the frozen folios to normal
status upon:
2002, if they continue to remain frozen as on
December 31, 2025.
eligible for any payment including dividend,
only through electronic mode, subject to
verification and confirmation by KFintech.
referred by KFintech/the Company to the
administering authority under the Benami
Transactions (Prohibitions) Act, 1988 and/
or Prevention of Money Laundering Act,
Committee of Directors and/or Managing/Whole-time
Director(s) of the Company and to do all such acts and
take all such steps as may be considered necessary or
expedient to give effect to the aforesaid resolution.
11) To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
"RESOLVED THAT pursuant to the provisions of
Regulation 23(4) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
("Listing Regulations"), the applicable provisions
of the Companies Act, 2013 along with the
Rules made thereunder and other applicable
laws including any amendments, modifications,
variations or re-enactments thereof, the Company's
Policy on Related Party Transactions and as per the
recommendation/approval of the Audit Committee
and the Board of Directors of the Company, approval
of the Members of the Company be and is hereby
accorded for entering into and/or continuing to enter
into contract(s)/transaction(s) with L&T Modular
Fabrication Yard LLC, subsidiary of the Company and
a Related Party within the meaning of Section 2(76)
of the Companies Act, 2013 and Regulation 2(1)(zb)
of the Listing Regulations in the nature of a) sale,
purchase, lease or supply of goods or business assets
or equipment; b) availing or rendering of services;
c) transfer of any resources, services or obligations to
meet its business objectives/requirements ("Related
Party Transactions") from this Meeting till the next
Annual General Meeting of the Company or for a
period of fifteen months, whichever is earlier, upto an
amount not exceeding 2,300 crore or US $ 300 Mn,
whichever is higher, on such terms and conditions
as may be decided by the Board of Directors/Audit
Committee of the Company as they may deem fit.
RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby authorized to delegate
all or any of the powers conferred on it to any
RESOLVED FURTHER THAT all actions taken by the
Board of Directors/Audit Committee in connection
with any matter referred to or contemplated in this
resolution, be and are hereby approved and confirmed
in all respects."
RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby authorized to delegate
all or any of the powers conferred on it to any
Committee of Directors and/or Managing/Whole-time
Director(s) of the Company and to do all such acts and
take all such steps as may be considered necessary or
expedient to give effect to the aforesaid resolution.
Company or for a period of fifteen months, whichever
is earlier, upto an amount not exceeding 2,000
crore on such terms and conditions as may be decided
by the Board of Directors/Audit Committee of the
Company as they may deem fit.
Notice
Integrated Annual Report 2021-22
259
"RESOLVED THAT pursuant to the provisions of
Regulation 23(4) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
("Listing Regulations"), the applicable provisions
of the Companies Act, 2013 along with the
Rules made thereunder and other applicable
laws including any amendments, modifications,
variations or re-enactments thereof, the Company's
Policy on Related Party Transactions and as per the
recommendation/approval of the Audit Committee
and the Board of Directors of the Company, approval
of the Members of the Company be and is hereby
accorded for entering into and/or continuing to enter
into contract(s)/transaction(s) with L&T Special Steels
and Heavy Forgings Private Limited, subsidiary of
the Company and a Related Party within the meaning
of Section 2(76) of the Companies Act, 2013 and
Regulation 2(1)(zb) of the Listing Regulations in
the nature of a) sale, purchase, lease or supply of
goods or business assets or equipment; b) availing
or rendering of services; c) transfer of any resources,
services or obligations to meet its business objectives/
requirements ("Related Party Transactions") from this
Meeting till the next Annual General Meeting of the
RESOLVED FURTHER THAT all actions taken by the
Board of Directors/Audit Committee in connection
with any matter referred to or contemplated in this
resolution, be and are hereby approved and confirmed
in all respects."
10) To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
Turbine Generators Private Limited, subsidiary of
the Company and a Related Party within the meaning
of Section 2(76) of the Companies Act, 2013 and
Regulation 2(1)(zb) of the Listing Regulations in
the nature of a) sale, purchase, lease or supply of
goods or business assets or equipment; b) availing
or rendering of services; c) transfer of any resources,
services or obligations to meet its business objectives/
requirements ("Related Party Transactions") from this
Meeting till the next Annual General Meeting of the
Company or for a period of fifteen months, whichever
is earlier, upto an amount not exceeding 2,600
crore on such terms and conditions as may be decided
by the Board of Directors/Audit Committee of the
Company as they may deem fit.
'RESOLVED THAT pursuant to the provisions of
Regulation 23(4) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
("Listing Regulations"), the applicable provisions
of the Companies Act, 2013 along with the
Rules made thereunder and other applicable
laws including any amendments, modifications,
variations or re-enactments thereof, the Company's
Policy on Related Party Transactions and as per the
recommendation/approval of the Audit Committee
and the Board of Directors of the Company, approval
of the Members of the Company be and is hereby
accorded for entering into and/or continuing to enter
into contract(s)/transaction(s) with L&T-MHI Power
To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby authorized to delegate
all or any of the powers conferred on it to any
Committee of Directors and/or Managing/Whole-time
Director(s) of the Company and to do all such acts and
take all such steps as may be considered necessary or
expedient to give effect to the aforesaid resolution.
RESOLVED FURTHER THAT all actions taken by the
Board of Directors/Audit Committee in connection
with any matter referred to or contemplated in this
resolution, be and are hereby approved and confirmed
in all respects."
of the Companies Act, 2013 along with the
Rules made thereunder and other applicable
laws including any amendments, modifications,
variations or re-enactments thereof, the Company's
Policy on Related Party Transactions and as per the
recommendation/approval of the Audit Committee
and the Board of Directors of the Company, approval
of the Members of the Company be and is hereby
accorded for entering into and/or continuing to
enter into contract(s)/transaction(s) with L&T-MHI
Power Boilers Private Limited, subsidiary of the
Company and a Related Party within the meaning
of Section 2(76) of the Companies Act, 2013 and
Regulation 2(1)(zb) of the Listing Regulations in
the nature of a) sale, purchase, lease or supply of
goods or business assets or equipment; b) availing
or rendering of services; c) transfer of any resources,
services or obligations to meet its business objectives/
requirements ("Related Party Transactions") from this
Meeting till the next Annual General Meeting of the
Company or for a period of fifteen months, whichever
is earlier, upto an amount not exceeding * 6,500
crore on such terms and conditions as may be decided
by the Board of Directors/Audit Committee of the
Company as they may deem fit.
LARSEN & TOUBRO
9)
Statutory Financial
Reports
Statements
Report
RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby authorized to delegate
all or any of the powers conferred on it to any
Committee of Directors and/or Managing/Whole-time
Director(s) of the Company and to do all such acts and
take all such steps as may be considered necessary or
expedient to give effect to the aforesaid resolution.
RESOLVED FURTHER THAT all actions taken by the
Board of Directors/Audit Committee in connection
with any matter referred to or contemplated in this
resolution, be and are hereby approved and confirmed
in all respects."
Discussion and Analysis
12) To consider and, if thought fit, to pass as a SPECIAL
RESOLUTION the following:
260
RESOLVED FURTHER THAT the Company do apply
to the National Securities Depository Limited and/
or Central Depository Services (India) Limited for
admission of the Securities.
RESOLVED FURTHER THAT the Board be and is
hereby authorised to appoint Lead Manager(s) in
offerings of Securities and to remunerate them by
way of commission, brokerage, fees or the like and
also to enter into and execute all such arrangements,
agreements, memoranda, documents, etc. with Lead
Manager(s) and to seek listing of such Securities.
RESOLVED FURTHER THAT the Company do apply
for listing of the new Equity Shares as may be issued
with BSE Limited and National Stock Exchange of India
Limited or any other Stock Exchange(s).
RESOLVED FURTHER THAT the Equity Shares to be
offered and allotted shall be in dematerialized form.
RESOLVED FURTHER THAT for the purpose of
giving effect to any offer, issue or allotment of
Securities, the Board, be and is hereby authorised on
behalf of the Company to do all such acts, deeds,
matters and things as it may, in absolute discretion,
deem necessary or desirable for such purpose,
including without limitation, the determination of
the terms thereof, for entering into arrangements
for managing, underwriting, marketing, listing and
trading, to issue placement documents and to sign all
deeds, documents and writings and to pay any fees,
commissions, remuneration, expenses relating thereto
and with power on behalf of the Company to settle
all questions, difficulties or doubts that may arise in
regard to such offer(s) or issue(s) or allotment(s) as it
may, in its absolute discretion, deem fit.
RESOLVED FURTHER THAT the Equity Shares so
issued shall rank pari passu with the existing Equity
Shares of the Company in all respects.
in case of allotment of eligible convertible
securities, either the date of the meeting in
which the Board decides to open the issue of
such convertible securities or the date on which
the holders of such convertible securities become
entitled to apply for the equity shares, as may be
determined by the Board.
in case of allotment of equity shares, the date of
meeting in which the Board decides to open the
proposed issue
ii)
i)
RESOLVED FURTHER THAT in case of QIP issue the
relevant date for determination of the floor price of
the Equity Shares to be issued shall be -
"RESOLVED THAT in supersession of the resolution
no. 13 passed by the Members at the 76th Annual
General Meeting of the Company held on August
5, 2021 in this regard and in accordance with the
provisions of Sections 41, 42, 62 and other applicable
provisions, if any, of the Companies Act, 2013
(including any statutory modifications or re-enactments
thereof for the time being in force) as amended from
time to time, Foreign Exchange Management Act,
1999, Securities and Exchange Board of India (Issue
of Capital and Disclosure Requirements) Regulations,
2018 ('SEBI Regulations'), Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, enabling provisions
in the Memorandum and Articles of Association
of the Company as also provisions of any other
applicable laws, rules and regulations (including any
amendments thereto or re-enactments thereof for the
time being in force) and subject to such approvals,
consents, permissions and sanctions of the Securities
and Exchange Board of India (SEBI), Government of
India (GOI), Reserve Bank of India (RBI) and all other
appropriate and/or concerned authorities, or bodies
and subject to such conditions and modifications, as
may be prescribed by any of them in granting such
approvals, consents, permissions and sanctions which
may be agreed to by the Board of Directors of the
Company ('Board') (which term shall be deemed to
include any Committee which the Board may have
constituted or hereafter constitute for the time being,
exercising the powers conferred on the Board by this
resolution), the Board be and is hereby authorized
to offer, issue and allot in one or more tranches, to
Investors whether Indian or Foreign, including Foreign
Institutions, Foreign Institutional Investors, Foreign
Portfolio Investors, Foreign Venture Capital Fund
Investors, Venture Capital Funds, Non-resident Indians,
Corporate Bodies, Mutual Funds, Banks, Insurance
Companies, Pension Funds, Individuals or otherwise,
whether shareholders of the Company or not, through
an issue of convertible bonds and/or equity shares
RESOLVED FURTHER THAT in case of QIP issue it
shall be completed within 12 months from the date of
passing of this resolution.
4,500
through depository receipts, including by way of
Qualified Institutions Placement ('QIP'), to Qualified
Institutional Buyers ('QIB') in terms of Chapter VI of
the SEBI Regulations, through one or more placements
of Equity Shares (hereinafter collectively referred to as
"Securities"), whether by way of private placement
or otherwise as the Board may determine, where
necessary in consultation with the Lead Managers,
Underwriters, Merchant Bankers, Guarantors, Financial
and/or Legal Advisors, Rating Agencies/Advisors,
Depositories, Custodians, Principal Paying/Transfer/
Conversion agents, Listing agents, Registrars, Trustees,
Auditors, Stabilizing agents and all other Agencies/
Advisors so that the total amount raised through
the issue of the Securities shall not exceed
Crore (Rupees Four Thousand Five Hundred Crore) or
US $600 Mn (US Dollars Six Hundred Million), if the
value is higher.
LARSEN & TOUBRO
Financial
Statements
Reports
Statutory
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
RESOLVED FURTHER THAT for the purpose of giving
effect to the above, the Board be and is hereby also
authorised to determine the form, terms and timing of
the issue(s), including the class of investors to whom
the Securities are to be allotted, number of Securities
to be allotted in each tranche, issue price, face
value, premium amount in issue/conversion/exercise/
redemption, rate of interest, redemption period,
listings on one or more Stock Exchanges in India or
abroad, as the Board may in its absolute discretion
deem fit and to make and accept any modifications
in the proposals as may be required by the authorities
involved in such issue(s) in India and/or abroad, to do
all acts, deeds, matters and things and to settle any
questions or difficulties that may arise in regard to the
issue(s).
Shareholder being the beneficial owner of the
dividend income to be received on the equity
shares.
Integrated
Corporate
Overview
[j] Members holding shares in physical form are requested
to furnish bank details, email address, change of
address etc. to KFin Technologies Limited ("KFintech"),
Selenium, Tower B, Plot 31-32, Gachibowli, Financial
District, Nanakramguda, Hyderabad 500 032, who are
the Company's Registrar and Share Transfer Agents
(RTA) so as to reach them latest by Friday, July 22,
2022, in order to take note of the same. In respect
of members holding shares in electronic mode, the
details as would be furnished by the Depositories as
at the close of the aforesaid date will be considered
by the Company. Hence, members holding shares in
demat mode should update their records with their
Depository Participants at the earliest.
[k] Those Members who have not yet registered their
email address are requested to get their email
addresses registered by following the procedure given
below:
1.
2.
3.
4.
5.
Those Members who have not registered their
email address and mobile nos. including address
and bank details may please contact and
validate/update their details with the Depository
Participant(s) in case of shares held in electronic
form and with Registrar and Transfer Agents,
KFintech in case the shares are held in physical
form.
Members who have already registered their
email addresses are requested to get their
email addresses validated with their Depository
Participants/KFintech to enable servicing of
notices/documents/Annual Reports electronically
to their email address.
of the Companies Act, 2013, in respect of the business
under items 6 to 13 set out above are annexed hereto.
[i] The record date for the purpose of payment of
dividend will be Friday, July 22, 2022.
Members who have not registered their
email address can get their email address
and mobile number registered with KFintech,
by clicking the link: https://ris.kfintech.com/
clientservices/mobilereg/mobileemailreg.aspx.
Members are requested to follow the process as
guided to capture the email address and mobile
number for sending the soft copy of the Notice.
In case of any queries, shareholders may write to
einward.ris@KFintech.com.
Members may send an e-mail request to
einward.ris@KFintech.com along with scanned
6.
copy of the signed request letter providing the
email address, mobile number, self-attested PAN
copy and Client Master copy in case of electronic
folio and copy of share certificate in case of
physical folio.
It is mandatory vide SEBI Circular No. SEBI/HO/
MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated
November 3, 2021 to update PAN, Address,
Email ID, Bank account details (KYC details)
and Nomination details of shareholders, who
have not updated the same with RTA in case
of physical shareholding and with Depository
Participants (DPs) in case of Demat shareholding.
Henceforth, RTA will attend to all service requests
of the shareholders with respect to transmission,
dividend, etc., only after updating the above
details in the records. Non-updation of KYC
details in Folios, wherein any one of the
cited details/documents (i.e. PAN, Bank Details,
Nomination) are not available on or after April
01, 2023, shall be frozen by the RTA as per above
SEBI Circular.
The shareholders whose folios are frozen shall be:
eligible to lodge grievance or avail
a)
service request from KFintech only after
furnishing the complete documents/details as
aforesaid.
b)
c)
Members may also visit the website of the
Company at www.larsentoubro.com or the
website of NSDL at www.evoting.nsdl.com for
downloading the Annual Report and Notice of the
AGM.
Management
LARSEN & TOUBRO
Report
RESOLVED FURTHER THAT the Board be and is
hereby authorised to create necessary charge on
such of the assets and properties (whether present or
future) of the Company in respect of Securities and
to approve, accept, finalize and execute facilities,
sanctions, undertakings, agreements, promissory
notes, credit limits and any of the documents and
papers in connection with the issue of Securities.
RESOLVED FURTHER THAT the Board be and is
hereby authorised to delegate all or any of the powers
in such manner as they may deem fit."
261
Integrated Annual Report 2021-22
Notice
13) To consider and ratify the remuneration payable to
Cost Auditors and for that purpose to pass, as an
ORDINARY RESOLUTION the following:
"RESOLVED THAT pursuant to Section 148 and
other applicable provisions, if any, of the Companies
Act, 2013 and the Companies (Audit and Auditors)
Rules, 2014, the Company hereby ratifies the
remuneration of 17 lakhs plus applicable taxes
and out of pocket expenses at actuals for travelling
and boarding/lodging for the Financial Year ending
March 31, 2023 to M/s R. Nanabhoy & Co., Cost
Accountants (Regn. No. 000010), who are appointed
as Cost Auditors to conduct the audit of cost records
maintained by the Company for the Financial Year
2022-23."
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
SIVARAM NAIR A
COMPANY SECRETARY
M.NO - F3939
[a] In view of the COVID-19 pandemic and the need
for ensuring social distancing, the Government of
India, Ministry of Corporate Affairs ("MCA") allowed
conducting Annual General Meeting through video
conferencing (VC) or other audio-visual means (OAVM)
without the physical presence of Members at a
common venue. Accordingly, MCA issued Circular No.
14/2020 dated April 08, 2020, Circular No. 17/2020
dated April 13, 2020, Circular No. 20/2020 dated May
05, 2020, Circular No. 02/2021 dated January 13,
2021, Circular No. 20/2021 dated December 8, 2021
and Circular No. 2/2022 dated May 5, 2022 ("MCA
Circulars"), prescribing the procedures and manner
of conducting the Annual General Meeting through
VC/OAVM. MCA Circular No. 2/2022 dated May 5,
2022 extended the time line for holding of Annual
General Meetings through VC/OAVM till December
31, 2022. In compliance with the applicable provisions
of the Companies Act, 2013 and MCA Circulars, the
77th Annual General Meeting (AGM) of the Members
will be held through VC/OAVM. Hence, Members can
attend and participate in the AGM through VC/OAVM
only.
[b] Since this General Meeting is held through VC/OAVM
the physical attendance of members is dispensed with
and no proxies would be accepted by the Company
pursuant to the relevant MCA Circulars and SEBI
Circular dated May 13, 2022. Hence, no proxy form
has been sent along with this Notice.
Statutory Financial
Reports
Statements
[c] No attendance slip/route map has been sent along
with this Notice of the Meeting as the meeting is held
through VC/OAVM.
[e] The attendance through VC/OAVM is restricted
and hence members will be allowed on first come
first serve basis. However, attendance of Members
holding more than 2% of the shares of the Company,
Institutional Investors as on Thursday, July 28, 2022
and Directors and Key Managerial Personnel, the
Chairpersons of the Audit Committee, Nomination
and Remuneration Committee, the Stakeholders
Relationship Committee and Auditors will not be
restricted on first come first serve basis.
[f] Members attending the Meeting through VC/OAVM
will be counted for the purposes of reckoning of
Quorum under Section 103 of the Companies Act,
2013.
[g] In line with the MCA Circulars and SEBI Circular
NO SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated May
13, 2022, this Notice along with the Integrated
Annual Report for FY 2021-22 is being sent by
electronic mode to those Members whose e-mail
addresses are registered with the Company/
Depositories/Depositary Participants/KFintech,
unless any Member has requested for a physical
copy of the same. Members may note that the
Notice and Integrated Annual Report 2021-22
will also be available on the Company's website
at www.larsentoubro.com, websites of the Stock
Exchanges i.e. BSE Limited and National Stock
Exchange of India Limited at www.bseindia.com and
www.nseindia.com respectively and on the website
of NSDL at https://www.evoting.nsdl.com. The
Company will also be publishing an advertisement in
the newspaper containing the details about the AGM
i.e., the conduct of AGM through VC/OAVM, date and
time of AGM, availability of Notice of AGM on the
Company's website, manner of registering the email
IDS of those shareholders who have not registered
their email addresses with the Company/KFintech,
manner of providing mandate for dividends and other
matters as may be required.
[h] The information required to be provided under the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and the Secretarial Standards on
General Meetings, regarding the Directors who are
proposed to be appointed/re-appointed and the
relative Explanatory Statement pursuant to Section 102
262
Corporate
Overview
Management
Integrated
Discussion and Analysis
[d] Members who are shareholders as on Thursday,
July 28, 2022 can join the AGM 30 minutes before
the commencement of the AGM i.e at 03.00 P.M
and till the time of the conclusion of the Meeting by
following the procedure mentioned in this Notice.
265
Integrated
Notice
4. After successful authentication, you will be
redirected to NSDL website wherein you
can see e-Voting page. Click on company
name or e-Voting service provider - NSDL
and I you will be redirected to e-Voting
website of NSDL for casting your vote
during the remote e-Voting period or
joining virtual meeting and e-Voting during
the meeting.
3. A new screen will open. You will have to
enter your User ID (i.e. your sixteen digit
demat account number held with NSDL),
Password/OTP and a Verification Code as
shown on the screen.
2. Once the home page of e-Voting system is
launched, click on the icon "Login" which
is available under 'Shareholder/Member'
section.
1. Open web browser and type the following
URL: https://www.evoting.nsdl.com/ either
on a personal computer or on a mobile
phone.
3. Please follow steps given in points 1-5.
B. e-Voting website of NSDL
Portal or click at https://eservices.nsdl.com/
SecureWeb/IdeasDirectReg.jsp
2. Select "Register Online for IDEAS"
1. Option to register is available at
https://eservices.nsdl.com.
you are not registered, follow the
below steps:
If
5. Click on company name or e-Voting
service provider i.e NSDL and you will
be re-directed to NSDL e-Voting website
for casting your vote during the remote
e-Voting period or joining virtual meeting
and e-Voting during the meeting.
4. Click on "Access to e-Voting" under
e-Voting services and you will be able to
see e-Voting page.
3. A new screen will open. You will have to
enter your User ID and Password. After
successful authentication, you will be able
to see e-Voting services under Value Added
Services.
2. Once the home page of e-Services is
launched, click on the "Beneficial
Owner" icon under "Login" which is
available under "IDEAS" section.
1. Visit the e-Services website of NSDL. Open
web browser and type the following URL:
https://eservices.nsdl.com/ either on a
Personal Computer or on a mobile.
If you are already registered, follow the
below steps:
A. NSDL IDEAS facility
Individual
Shareholders
holding
securities in
demat mode
with NSDL
shareholders
5. Shareholders/Members can also download
NSDL Mobile App "NSDL Speede" facility
by scanning the QR code mentioned below
for seamless voting experience.
NSDL Mobile App is available on
Login Method
App Store
Type of
shareholders
Individual
Shareholders
Integrated Annual Report 2021-22
free no.: 1800 1020 990 and
1800 22 44 30
Securities held with Please contact NSDL helpdesk
by sending a request at
evoting@nsdl.co.in or call at toll
Helpdesk details
NSDL
Login type
Helpdesk for Individual Shareholders holding
securities in demat mode for any technical
issues related to login through Depository i.e.
NSDL and CDSL.
Important note: Members who are unable to
retrieve User ID/Password are advised to use
Forgot User ID and Forgot Password option
available at respective websites.
3. Click on company name or e-Voting service
provider NSDL and you will be redirected
to e-Voting website of NSDL for casting
your vote during the remote e-Voting
period or joining virtual meeting and
e-Voting during the meeting.
e-Voting option. Once you click on e-Voting
option, you will be redirected to NSDL/
CDSL Depository site after successful
authentication, wherein you can see
e-Voting feature.
2. Once logged-in, you will be able to see
1.
4. Alternatively, the user can directly access
e-Voting page by providing Demat
Account Number and PAN from a link in
www.cdslindia.com home page. The system
will authenticate the user by sending
OTP on registered Mobile and e-mail as
recorded in the Demat Account. After
successful authentication, user will be
provided links for the respective ESP i.e.
NSDL where the e-Voting is in progress.
You can also login using the login
credentials of your demat account through
your DP registered with NSDL/CDSL for
e-Voting facility.
3. If the user is not registered for Easi/
Easiest, option to register is available
at https://web.cdslindia.com/myeasi/
Registration/EasiRegistration.
2. After successful login of Easi/Easiest the
user will be also able to see the e-Voting
Menu. The Menu will have links of ESP i.e.
NSDL. Click on NSDL to cast your vote.
Existing users who have opted for Easi/
Easiest, can login through their user id and
password. Option will be made available
to reach e-Voting page without any further
authentication. The URL for users to login
to Easi/Easiest is https://web.cdslindia.com/
myeasi/home/login or www.cdslindia.com.
Click on New System Myeasi.
1.
Individual
Shareholders
(holding
securities in
demat mode)
logging
through their
depository
participants
holding
securities in
demat mode
with CDSL
Google Play
Type of
Login Method
268
A person whose name is recorded in the Register
of Members or in the Register of Beneficial Owners
maintained by the Depositories as on the cut-off date
of Thursday, July 28, 2022 shall be entitled to avail
the facility of remote e-voting or e-voting on the
day of the Meeting. Persons who are not members
as on the cut-off date should treat this Notice for
information purposes only.
The businesses as set out in this Notice may be
transacted through electronic voting system and the
Company will provide a facility for voting by electronic
means. In compliance with the provisions of Section
108 of the Act, read with Rule 20 of the Companies
(Management and Administration) Rules, 2014,
Standard 2 of the Secretarial Standards on General
Meetings and Reg. 44 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the
Company is pleased to offer the facility of voting
through electronic means. The said facility of casting
the votes by the members using electronic means
(remote e-voting) will be provided by NSDL.
[r] E-voting
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
266
Members who are not able to join this Meeting over
VC/OAVM will be able to view the live webcast of
proceedings of AGM by logging on the e-voting
website of NSDL by following remote e-voting
instructions mentioned in this Notice.
Notice
(a) twice the rate as per the provisions of Act; or
Members who would like to express their views or ask
questions during the AGM may register themselves
as a speaker by sending their request from their
registered email address mentioning their name, DP
ID and Client ID/folio number, PAN, mobile number
to LNTGOGREEN@larsentoubro.com on or before
Monday, August 1, 2022. Those Members who have
registered themselves as a speaker and have received
a confirmation from the Company will be allowed to
express their views/ask questions during the AGM. The
Company reserves the right to restrict the number of
speakers depending on the availability of time for the
AGM.
Further, Members will be required to use Internet with
a good speed to avoid any disturbance during the
meeting.
Please note that the members who do not have the
User ID and Password for e-Voting or have forgotten
their User ID and Password may retrieve the same by
following the instructions mentioned in this Notice.
Members can participate in AGM through smart
phone/laptop. However, for better experience and
smooth participation it is advisable to join the Meeting
using Google Chrome, through Laptops connected
through broadband.
e-Voting system. After successful login, you can
see the link of VC/OAVM placed under Join General
Meeting menu against the Company name. You are
requested to click on the VC/OAVM link placed under
Join General Meeting menu.
Members will be provided with a facility to attend
the AGM through VC/OAVM through the NSDL
e-Voting system. Members may access by following
the steps mentioned in this Notice for Access to NSDL
The Company has appointed National Securities
Depository Limited (NSDL) to provide VC/OAVM for the
AGM and are the attendant enablers for conducting
the e-AGM.
[q] Instruction for attending the meeting through VC:
Convenience of different persons positioned in
different time zones has been kept in mind before
scheduling the time for this Meeting.
Tax deducted by the Company is final and the
Company shall not refund/adjust the tax so deducted
subsequently.
Deduction of tax at a rate lower than statutory
rate or no deduction of tax shall depend upon the
completeness of the documents and the satisfactory
review of the forms and the documents, submitted by
Resident shareholders, to the Company/KFintech.
Please note that the Company is not obligated
to apply the beneficial DTAA rates at the time of
tax deduction/withholding on dividend amounts.
Application of beneficial DTAA rate shall depend
upon the completeness and satisfactory review by the
Company/KFintech, of the documents submitted by
Non-Resident shareholder/FPI.
In order to enable us to determine the appropriate
tax rate at which tax has to be deducted at source
under the respective provisions of the Income Tax
Act, 1961, we request Resident shareholders and
Non-Resident shareholders to upload the details and
documents referred to in this Notice in the format
provided by us and as applicable to you on the link
https://ris.KFintech.com/form15/. No communication
on the tax determination/deduction shall be
entertained beyond 5.00 p.m on Thursday, July 21,
2022.
General:
(c) 5%.
(b) twice the rate in force; or
Please note that participants connecting from Mobile
Devices or Tablets or through Laptop via Mobile
Hotspot may experience Audio/Video loss due to
fluctuation in their respective network. It is therefore
recommended to use Stable Wi-Fi or LAN Connection
to mitigate any kind of aforesaid glitches.
Members seeking any information with regard to
the accounts or any matter to be placed at the
AGM, are requested to write to the Company on or
before Thursday, July 28, 2022 through email to
IGRC@larsentoubro.com. The same will be replied by
the Company suitably. Please note that, members'
queries/questions will be responded to only if the
shareholder continues to hold the shares as on the
cut-off date i.e Thursday, July 28, 2022.
The remote e-voting period commences on Monday,
August 01, 2022 at 9.00 A.M and ends on
Wednesday, August 03, 2022 at 05.00 P.M. During
this period, members of the Company holding shares
either in physical or dematerialised form, as on the
cut-off date of Thursday, July 28, 2022 may cast
their vote by remote e-voting. The remote e-voting
module shall be disabled by NSDL for voting thereafter.
Instructions for e-voting during the AGM:
The e-Voting window shall be activated upon
instructions of the Chairman during the AGM
proceedings.
The Notice will be displayed on the website of the
Company at www.larsentoubro.com and on the
website of NSDL at https://www.evoting.nsdl.com.
The members who have cast their vote through remote
e-voting prior to the AGM may also attend the AGM
through VC/OAVM but shall not be entitled to cast
their vote again.
Member(s), whose names appear in the
Register of Members/Beneficial Owners as on
Only those shareholders, who are present in the AGM
and have not casted their vote on the Resolutions
through remote e-Voting and are otherwise not
barred from doing so, shall be eligible to vote through
e-Voting system available during the e-AGM.
In case of non-resident shareholder, having permanent
establishment in India, if they are classified as
"specified person" as per the provision of Section
206AB of the Income Tax Act, 1961, tax will be
deducted at rate higher of
Shareholders are advised to update their mobile
number and e-mail ID with their DPs in order to
access e-Voting facility.
Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/
CIR/P/2020/242 dated December 9, 2020 on
"e-Voting facility provided by Listed Companies",
e-Voting process has been enabled to all the
individual demat account holders, by way of single
login credential, through their demat accounts/
websites of Depositories/Depository Participants
(DPS) in order to increase the efficiency of the
voting process. Individual demat account holders
would be able to cast their vote without having to
register again with the e-Voting service provider
(ESP) thereby not only facilitating seamless
authentication but also ease and convenience of
participating in e-Voting process.
Integrated Annual Report 2021-22
267
I.
The detailed steps on the process and manner for
remote e-voting/e-voting at the AGM and to access
the VC/OAVM facility at the AGM are as follows:
Members are requested to follow the instructions
given in this Notice to cast their votes through
e-voting.
Thursday, July 28, 2022, are entitled to vote on
the Resolutions set forth in this Notice. Any person
holding shares in physical form and non-individual
shareholders, who acquire shares of the Company and
becomes a member of the Company after this Notice
is sent through e-mail and continues to hold shares
as of the cut-off date i.e. Thursday, July 28, 2022,
may obtain the login ID and password by sending a
request to NSDL at evoting@nsdl.co.in or the Company
at IGRC@larsentoubro.com. However, if you are
already registered with NSDL for remote e-voting, then
you can use your existing user ID and password for
casting your vote. If you forgot your password, you
can reset your password by using "Forgot User Details/
Password" or "Physical User Reset Password" option
available on www.evoting.nsdl.com or call on toll free
no. 1800 1020 990 and 1800 22 44 30. In case of
Individual Shareholders who have acquired shares of
the Company and becomes a Member of the Company
after sending of this Notice and holding shares as of
the cut-off date i.e. Thursday, July 28, 2022 may
follow steps mentioned in this Notice of the AGM
under "Access to NSDL e-Voting system".
Login method for remote e-Voting and
joining virtual meeting for Individual
shareholders holding securities in demat
mode.
As per the provisions of Section 188 of the Companies
Act, 2013 ("Act"), transactions with related parties which
are at arm's length and in the ordinary course of business,
are exempted from the obligation of obtaining prior
approval of shareholders. However, as per the provisions
of Regulation 23(4) of the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("SEBI Listing Regulations"), such
transactions, if material, require the approval of
shareholders through a resolution, notwithstanding the
fact that the same are on an arm's length basis and in the
ordinary course of business.
Largely responsible for establishing L&T Construction
as a significant EPC player in the Middle East,
Mr. Subrahmanyan has spearheaded and won several large
projects in Oman, Qatar, Abu Dhabi and Saudi Arabia. The
Riyadh Metro project is one of the largest international
orders bagged by L&T thus far; while the Doha Metro, the
AL-Wakrah Road Project both in Qatar and the Abu Dhabi
Airport airside works have been won in the face of stiff
international competition. He has also led the spread into
Africa and L&T Construction is making its presence felt
especially in North and East Africa.
Considering the above, the Company is required to provide
Parent Company Guarantees or Corporate Guarantees
or Letters of Comfort or Undertakings, on behalf of its
subsidiary companies, to achieve business objectives
including meeting client requirements under the terms of
the contract, consortium or other agreements.
Considering the increasing localization requirements
in the Middle East, it had become imperative for the
Company to bid for projects through its local subsidiaries.
Larsen Toubro Arabia LLC, L&T Modular Fabrication
Yard LLC, Larsen & Toubro Electromech LLC, Larsen
& Toubro Heavy Engineering LLC, Larsen & Toubro
Kuwait General Contracting Co WLL ("international
subsidiaries") were incorporated as subsidiaries in the
Middle East. The value of the Parent Company Guarantees
or Corporate Guarantees or Letters of Comfort or
Undertakings proposed to be issued to customers on
behalf of the international subsidiaries is 6,000 crore
or US $ 800 Mn, whichever is higher. The Company had
contract.
The Company has various subsidiaries which are formed
in accordance with the requirement of local laws for
the purpose of bidding and execution of Engineering,
Procurement and Construction (EPC) contracts. Contracts
entered into by these international subsidiaries usually
have a clause which requires issuance of Parent Company
Guarantees (PCGs) for execution of these projects. The
value of these PCGs is equivalent to the full value of the
contract. Such PCGs are to be issued upfront and are to
be valid till the completion of all obligations under the
With effect from April 1, 2022, Regulation 23 of SEBI
Listing Regulations, mandates prior approval of the
Shareholders through ordinary resolution for all 'material'
Related Party Transactions. For this purpose, a Related
Party Transaction will be considered 'material' if the
transaction(s) to be entered into individually or taken
together with previous transactions during a financial year
exceeds 1,000 Crore or 10% of the annual consolidated
turnover of the Company as per the last audited financial
statements of the Company, whichever is lower.
Item No. 7 to 11:
The agreement entered into by the Company with Mr. S. N.
Subrahmanyan, in respect of his re-appointment as Chief
Executive Officer and Managing Director, contains terms
and conditions of his appointment including remuneration.
Accordingly, the Resolution at Item No. 6 is proposed
for approval of the members for re-appointment of
Mr. S. N. Subrahmanyan, as the Chief Executive Officer and
Managing Director as contemplated by Part III of Schedule
V of the Companies Act, 2013 and other applicable
provisions, if any.
The agreement entered into with Mr. S. N. Subrahmanyan
will be open for inspection by members in the manner
as specified in this Notice up to the date of the Annual
General Meeting.
Apart from completing several challenging infrastructure
projects across verticals over the years, he has played a
crucial role in securing and managing EPC contracts for
the construction of four major international airports in
India at Bengaluru, Hyderabad, Delhi and Mumbai. Among
his list of accomplishments are the mandates to build
the tallest statue in the world - the Statue of Unity - and
the development of dedicated freight corridors that will
realign the dynamics of freight movement in the country.
The construction division is among the top 30 global
contractors and by far the largest construction organisation
in the country.
Pursuant to Article 136(C) of the Articles of Association of
the Company, Mr. S.N. Subrahmanyan in his capacity as
Chief Executive Officer and Managing Director will not be
liable to retire by rotation.
Others: Company's contribution to retirement funds,
official use of car/driver and communication facilities for
Company's business, as per rules of the Company.
Disclosures as required under Secretarial Standard 2 on
General Meetings are provided as an Annexure to this
Notice.
Commission: The commission will be paid as per the
parameters fixed by the Nomination and Remuneration
Committee and the Board of Directors within the overall
limits approved by the Shareholders of the Company.
Perquisites: 20 lakh per annum excluding free furnished
accommodation or house rent in lieu thereof. The above
perquisites will exclude value of Stock Option benefits, if
any, computed as per Income Tax Act/Rules, tax on which
will be borne by the Company.
Shareholders had approved the appointment of Mr. S.N.
Subrahmanyan (DIN: 02255382) as Chief Executive Officer
and Managing Director of the Company for a period of
five years, with effect from July 1, 2017 upto and including
June 30, 2022.
On the recommendation of the Nomination &
Remuneration Committee, the Board of Directors of
the Company at its Meeting held on May 12, 2022,
re-appointed Mr. S. N. Subrahmanyan (DIN: 02255382),
as Chief Executive Officer and Managing Director of the
Company with effect from July 1, 2022, upto and including
June 30, 2027, subject to the approval of the members in
the Annual General Meeting.
Mr. S. N. Subrahmanyan, 62, is a civil engineer with post
graduate qualification in business management. He joined
L&T in 1984 starting off as project planning engineer
and was soon handpicked for senior responsibilities. He
is responsible for leading the Company's considerable
business interests to new growth levels, riding on the
enormous benefits of digitalisation, big data, and predictive
analysis that he drives internally with exceptional zeal. He
places a premium on innovation, project management and
talent development, particularly in leadership roles.
Under his leadership, he has transformed L&T into a
Company that executes a wide range of projects at speed
and scale.
The Board recommends approval of the re-appointment
and remuneration of Mr. S. N. Subrahmanyan, as Chief
Executive Officer and Managing Director of the Company.
Except Mr. S.N. Subrahmanyan, being the appointee, none
of the Directors and Key Managerial Personnel of the
Company and their relatives are concerned or interested, in
the Resolution set out at Item No. 6.
He holds positions of pre-eminence on various industry
bodies, construction institutions and councils. In February
2021, he was appointed Chairman of the National Safety
Council (NSC) for three years by the Union Ministry of
Labour & Employment. In this role Mr. Subrahmanyan
would guide the NSC, which has a major part to play to
ensure safety in workplaces under the new Occupational
Safety, Health and Working Conditions Code, 2020 (OSH
Code, 2020).
Notice
At the Annual General Meeting of the Company held on
August 26, 2016, the shareholders had fixed the maximum
limits within which the Board was delegated authority to
decide the remuneration of the Chief Executive Officer
and Managing Director of the Company. Pursuant to this,
the Board has fixed the remuneration payable to Mr. S. N.
Subrahmanyan during his tenure as Chief Executive Officer
and Managing Director.
sending a request at helpdesk
evoting@cdslindia.com or
contact at 022-23058738 or
022-23058542-43
Securities held with Please contact CDSL helpdesk by
CDSL
Helpdesk details
Login type
LARSEN & TOUBRO
II.
Statements
Reports
Report
Recognising L&T's leadership in climate and infrastructure
finance, he has been appointed one of nine founding
members of Climate Finance Leadership Initiative (CFLI)
India to bring global scale and influence to the initiative.
Mr. Subrahmanyan is the Non-Executive Vice Chairman of
Larsen & Toubro Infotech Limited, L&T Technology Services
Limited and Mindtree Limited and the Non-Executive
Chairman of L&T Metro Rail (Hyderabad) Limited and L&T
Finance Holdings Limited.
Discussion and Analysis
Statutory
Integrated
Management
Corporate
Overview
Salary: 27,00,000 (Rupees Twenty Seven Lakh only)
per month in the scale of 27,00,000 - ₹3,00,000 -
42,00,000 with the annual increment due on April 1
every year.
The Company has entered into an Agreement with
Mr. S.N. Subrahmanyan re-appointing him as a Chief
Executive Officer and Managing Director for a period of
five
years from July 1, 2022 upto and including June 30,
2027. During the period of this agreement and so long
as the Chief Executive Officer and Managing Director
performs his services as per the terms and conditions
provided by this agreement, he shall be entitled to the
following:
in the past provided similar Parent Company Guarantees
or Corporate Guarantees or Letters of Comfort or
Integrated Annual Report 2021-22
271
Financial
272
Resolution No. 10
L&T Special Steels
and Heavy Forgings
Private Limited
(LTSSHF)
Management
taken by a related
Login method for e-Voting and joining
virtual meeting for shareholders other than
Individual shareholders holding securities
in demat mode and shareholders holding
securities in physical mode.
2,000
Providing Parent Company
Guarantees or Corporate
Guarantees or Letters of
Comfort or Undertakings
on behalf of International
subsidiaries from this AGM
till the next Annual General
Meeting or for a period of
fifteen months, whichever
is earlier, and for an amount
not exceeding 6,000 crore
or US $ 800 Mn, whichever
is higher, in accordance with
the terms and conditions of
the contract/agreement to
be executed by international
subsidiaries with their
customers.
Subsidiary Company(ies)
a)
b)
Sale, purchase, lease or supply of goods, business assets or equipment;
Availing or rendering of services;
c)
Transfer or exchange of any resources, services or obligations to meet its business objectives/
requirements
The approval will be valid from this AGM till the next Annual General Meeting or for a period of
fifteen months, whichever is earlier, in accordance with the terms and conditions of the contract/
agreement for the below mentioned amounts:
Name of the Company
LMB
LMTG
LTSSHF
MFY*
Amount (Crore)
6,500
2,600
2,300
Corporate
Overview
securities for loan
Transaction related
to providing loan(s)/
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Undertakings in favour of these international subsidiaries.
However, post the amendment in the definition of material
related party transactions, the aforesaid proposal now
requires prior approval of the shareholders.
Given the nature and scope of the business, the Company
works closely with its related parties (including subsidiaries)
to achieve its business objectives and enters into various
operational transactions with its related parties, from time
to time, in the ordinary course of business and on arm's
length. Amongst the transactions that Company enters
into with its related parties, the estimated value of the
contract(s)/arrangement(s)/transaction(s) with L&T-MHI
Power Boilers Private Limited, L&T-MHI Power Turbine
Generators Private Limited, L&T Special Steels and
Heavy Forgings Private Limited and L&T Modular
Fabrication Yard LLC, subsidiaries of the Company
("Related Parties"), are likely to exceed the threshold of
material Related Party Transactions.
The Company has been undertaking transactions of similar
nature in the past in the ordinary course of business and
on arm's length after obtaining requisite approvals of the
Audit Committee of the Company. The maximum annual
value of the proposed transactions with the aforesaid
Details w.r.t Material Related Party Transactions:
Particulars
Name of the Related
Parties
Resolution No. 7
Larsen Toubro Arabia LLC,
L&T Modular Fabrication
Yard LLC, Larsen & Toubro
Electromech LLC, Larsen &
Toubro Heavy Engineering
LLC, Larsen & Toubro Kuwait
General Contracting Co WLL
("international subsidiaries")
Resolution No. 8
L&T-MHI Power Boilers
Private Limited (LMB)
related parties is estimated on the basis of the Company's
current transactions with them and the future business
prospects.
The proposed transactions, being operational and critical
in nature, play a significant role in the Company's business.
Therefore, in order to secure continuity of operations, the
Company is proposing to seek approval of shareholders for
the potential quantum of transactions with the aforesaid
related parties.
The Company has in place a balanced and structured policy
and process for approval of Related Party Transactions.
The Policy provides the details required to be provided to
the Audit Committee for the purpose of review of such
transactions and grant their approval for the proposed
transactions. A justification for each and every related party
transaction is provided to the Audit Committee which
enables them to arrive at the right decisions. Additionally,
an update on the actual related party transactions entered
during every quarter is provided to the Audit Committee.
The Audit Committee of the Company comprises of
only Independent Directors as Members which helps
in providing an objective judgement to all transactions
proposed for approval.
Resolution No. 9
L&T-MHI Power
Turbine Generators
Private Limited (LMTG)
Resolution No. 11
L&T Modular
Fabrication Yard LLC
(MFY)
Nature of
Relationship
Nature, duration,
tenure, material
terms, monetary
value and particulars
of the contract or
arrangement
advance(s) or
1. Visit the e-Voting website of NSDL. Open
web browser and type the following URL:
https://www.evoting.nsdl.com/ either on a
personal computer or on a mobile.
270
3.
It is strongly recommended not to share your
password with any other person and take utmost
care to keep your password confidential. Login
to the e-Voting website will be disabled upon
five unsuccessful attempts to key in the correct
password. In such an event, you will need to go
through the "Forgot User Details/Password?" or
"Physical User Reset Password?" option available
on https://www.evoting.nsdl.com to reset the
password.
2.
1.
General Guidelines for shareholders
Once you confirm your vote on the
resolution, you will not be allowed to modify
your vote.
You can also take the printout of the votes
cast by you by clicking on the print option on
the confirmation page.
7.
6.
In case of any queries relating to e-Voting
you may refer to the FAQs for Shareholders
5. Upon confirmation, the message "Vote cast
successfully" will be displayed
Now you are ready for e-Voting as the Voting
page opens.
Select "EVEN 120346" to cast your vote
during the remote e-Voting period and
casting your vote during the General
Meeting. For joining virtual meeting, you
need to click on "VC/OAVM" link placed
under "Join General Meeting".
You will be able to see all the companies
"EVEN" in which you are holding shares and
whose voting cycle and General Meeting is in
active status.
4.
3.
2.
1.
How to cast your vote electronically
Cast your vote by selecting appropriate
options i.e. assent or dissent, verify/modify
the number of shares for which you wish to
cast your vote and click on "Submit" and also
"Confirm" when prompted.
3.
and e-Voting user manual for Shareholders
available at the download section of
https://www.evoting.nsdl.com or call on toll free
no.: 1800 1020 990 and 1800 22 44 30 or send a
request at evoting@nsdl.co.in.
Members may send a request to
* US $ 300 million whichever is higher
evoting@nsdl.co.in for procuring user id and
password for e-voting by providing demat account
number/Folio number, client master or copy
of Consolidated Account statement, PAN (self
attested scanned copy), AADHAR (self-attested
scanned copy). If you are an Individual shareholder
holding securities in demat mode, you are
requested to refer to the login method explained
above.
Members who need assistance before or during the
AGM, can contact NSDL on evoting@nsdl.co.in/
1800 1020 990 and 1800 22 44 30 or contact Amit
Vishal at amitv@nsdl.co.in or Pallavi Mhatre at
pallavid@nsdl.co.in.
The Company has appointed Mr. S. N.
Ananthasubramanian, Practicing Company Secretary,
(Membership No. 4206, COP No. 1774) or failing him
Mrs. Aparna Gadgil, Practicing Company Secretary,
(Membership No. 14713, COP No. 8430), to act as
the Scrutinizer for conducting the voting and remote
e-voting process in a fair and transparent manner.
Institutional shareholders (i.e. other than individuals,
HUF, NRI, etc.) are required to send scanned copy
(PDF/JPG format) of the relevant Board Resolution/
Authority letter etc., together with attested specimen
signature of the duly authorized signatory(ies) who
are authorized to vote, to the Scrutinizer through
e-mail to scrutinizer@snaco.net, with a copy marked to
evoting@nsdl.co.in.
In case of any queries, please visit Help and Frequently
Asked Questions (FAQs) section available at evoting
website at https://evoting.nsdl.com.
Members will be able to attend the AGM through VC/
OAVM or view the live webcast of AGM provided by
NSDL at https://www.evoting.nsdl.com following the
steps mentioned above for login to NSDL e-voting
system.
After successful login, you can see VC/OAVM link
placed under "Join Meeting" menu against company
name. You are requested to click on VC/OAVM link
placed under "Join Meeting" menu.
Based on the report received from the Scrutinizer,
the Company will submit within 2 working days to
the Stock Exchanges details of the voting results
as required under Reg. 44(3) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015.
Corporate
Overview
Management
Discussion and Analysis
Integrated Statutory
Report
Reports
Financial
Statements
LARSEN & TOUBRO
A Member can opt for only one mode of voting i.e.
either through remote e-voting or at the Meeting. If a
Member has cast his vote by remote e-voting then he
will not be eligible to vote at the Meeting.
The Scrutinizer will submit his report to the Chairman
after completion of the scrutiny. The result of the
voting on the Resolutions at the Meeting shall be
announced by the Chairman or any other person
authorized by him immediately after the results are
declared.
9. After you click on the "Login" button, home
page
of e-Voting will open.
8. Now, you will have to click on "Login"
button.
7. After entering your password, tick on Agree
to "Terms and Conditions" by selecting on
the check box.
d) Members can also use the one-time
password (OTP) based login for casting
the votes on the e-Voting system of
NSDL.
is 001 then user ID is
123456001***
123456 and folio number
For example, if EVEN is
with the Company.
Folio Number registered
EVEN Number followed by
8 Character DP ID followed
by 8 Digit Client ID
For example, if your DP ID
is IN300✶✶✶ and Client ID
is 12****** then your user
ID is IN300***12******
16 Digit Beneficiary ID
For example, if your
Beneficiary ID is
12**************
then your user ID is
12**************
For Members
holding shares in
Physical Form
For Members who
hold shares in demat
account with CDSL
For Members who
hold shares in demat
account with NSDL
Physical
(NSDL or CDSL) or
shares i.e. Demat
Manner of holding Your User ID is:
Your User ID details are given below:
Alternatively, if you are registered for
NSDL e-services i.e. IDEAS, you can login
at https://eservices.nsdl.com/ with your
existing IDEAS login. Once you login to NSDL
e-services after using your login credentials,
click on e-Voting and you can proceed to cast
your vote electronically.
A new screen will open. You will have to
enter your User ID, your Password/OTP and a
Verification Code as shown on the screen.
Once the home page of e-Voting system is
launched, click on the icon "Login" which
is available under "Shareholders/Member"
section.
4.
5.
2.
6.
Password details for shareholders other than
individual shareholders are given below:
Notice
Integrated Annual Report 2021-22
269
If you are still unable to get the password
by aforesaid two options, you can send a
request at evoting@nsdl.co.in mentioning
your demat account number/folio
number, your PAN, your name and your
registered address.
in physical mode) option available on
www.evoting.nsdl.com.
Password?" (If you are holding shares
Click on "Physical User Reset
Click on "Forgot User Details/
Password?" (If you are holding
shares in your demat account with
NSDL or CDSL) option available on
www.evoting.nsdl.com.
c)
b)
a)
If you are unable to retrieve or have not
received the 'initial password' or have
forgotten your password:
In case you have not registered
your e-mail address with the
Company/Depository, please follow
instructions mentioned below in this
Notice.
If your e-mail ID is registered in
your demat account or with the
Company, your 'initial password'
is communicated to you on your
e-mail ID. Trace the e-mail sent to
you from NSDL in your mailbox
from evoting@nsdl.com. Open the
e-mail and open the attachment
i.e. a .pdf file. Open the .pdf file.
The password to open the .pdf file
is your 8-digit client ID for NSDL
account, last 8 digits of client ID for
CDSL account or folio number for
shares held in physical form. The
.pdf file contains your 'User ID' and
your 'initial password'.
i)
c)
How to retrieve your 'initial password'?
b) If you are using NSDL e-Voting system
for the first time, you will need to
retrieve the 'initial password' which was
communicated to you by NSDL. Once
you retrieve your 'initial password', you
need to enter the 'initial password' and
the system will force you to change your
password.
a) If you are already registered for e-Voting,
then you can use your existing password
to login and cast your vote.
Facility to cast vote through e-voting will be made
available on the Video Conferencing screen and will
be activated once the same is announced by the
Chairman during the Meeting.
Not Applicable
ii) in case of allotment of eligible convertible securities,
either the date of the meeting in which the Board
decides to open the issue of such convertible securities
273
Number of
8 of 8
L&T Infrastructure Engineering
Limited
Larsen & Toubro Limited
Corporate Social Responsibility
Committee
NA
Indian Electricals and
Electronics Manufacturers
Association
Member
Dredging Private Limited
4. International Seaport
Limited
8 of 8
3. L&T Infrastructure Engineering
1. L&T Arunachal Hydropower
Limited
Vast Experience in Heavy Civil and Expertise in managing
and nurturing business
portfolios of global
utility projects especially
in power transmission
and distribution and
renewables
B.E from NIT Calicut, Post
Graduate in Management
from Xavier Institute,
Bhubaneshwar
Risk Management
Committee
Member
across all
companies
of committees
2. L&T Power Limited
1. L&T Valves Limited
large business portfolios in Infrastructure Space
energy sector.
Masters in Civil Engineering from
IIT
2. L&T Himachal Hydropower
Limited
Meetings
B.Sc, Engg. (Civil) & MBA
Finance
Vast Experience in Design
and Build (D&B) contracts,
PPP Projects, Engineering
and Construction Industry
None
Relationships
Directors
Non-Executive
ΝΑ
ΝΑ
ΝΑ
Shareholding of NA
the year
Item No. 6
attended during
8 of 8
8 of 8
Mindtree Limited
Remuneration Committee
Nomination and
Member
7. L&T Finance Holdings
Limited
6. Mindtree Foundation
5. Mindtree Limited
4. L&T Realty Developers
Limited
(Hyderabad) Limited
3. L&T Metro Rail
2. L&T Technology Services
Limited
1. Larsen & Toubro Infotech
Limited
Expertise in managing
Master's Degree in
Chemical Engineering
from IIT Bombay
Memberships/
Chairmanships
companies)
SIVARAM NAIR A
COMPANY SECRETARY
M.No - F3939
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
Mumbai, May 12, 2022
None of the Directors and Key Managerial Personnel of the
Company and their relatives are concerned or interested, in
the resolution set out at Item No. 13.
The Directors recommend this resolution for approval of
the shareholders.
Accordingly, consent of the shareholders is sought for the
aforesaid purpose.
M/s. R. Nanabhoy & Co., Cost Accountants, have furnished
certificates regarding their eligibility for appointment as
Cost Auditors of the Company. In accordance with the
provisions of Section 148 of the Act read with the Rules,
the remuneration payable to the cost auditor has to be
ratified by the shareholders of the Company.
Accountants (Regn. No. 000010), as the Cost Auditors of
the Company to conduct audit of cost records maintained
by the Company for the Financial Year 2022-23, at a
remuneration of ₹ 17 lakhs plus applicable taxes and out
of pocket expenses at actuals for travelling and boarding/
lodging.
In accordance with the provisions of Section 148 of the
Companies Act, 2013 ("the Act") and the Companies
(Audit and Auditors) Rules, 2014 ("the Rules") the
Company is required to appoint a cost auditor to audit
the cost records of the Company, for products and
services, specified under Rules issued in pursuance
to the above section. On the recommendation of the
Audit Committee, the Board of Directors had approved
the appointment of M/s. R. Nanabhoy & Co, Cost
Item No. 13:
None of the Directors and Key Managerial Personnel of the
Company and their relatives are concerned or interested, in
the resolution set out at Item No. 12.
The Directors recommend this Resolution for approval of
the Shareholders.
The Shareholders through a resolution passed at their
meeting held on August 5, 2021, had approved issue of
Securities for an aggregate sum up to US$ 600 Million
(or its rupee equivalent) or 4,500 Crore, if higher. The
Company has not raised any funds under the said approval.
However, Shareholders' resolution for QIP issuance is valid
for a period of 12 months from the date of passing of the
resolution.
The Stock Exchange for the same purpose is BSE Limited/
National Stock Exchange of India Limited.
or the date on which the holders of such convertible
securities become entitled to apply for the equity
shares, as may be determined by the Board.
LARSEN & TOUBRO
Financial
Statements
Reports
Report
Discussion and Analysis
Statutory
Integrated
Management
Corporate
Overview
276
277
None
Integrated Annual Report 2021-22
(ANNEXURE TO NOTICE DATED MAY 12, 2022)
foreign
(excluding
companies
of public
companies
which are
subsidiaries
private
including
Directorships
held in
other public
companies
Expertise
Qualifications
Date of
Appointment
on the Board
July 1, 2011
March 16, 1960
January 25, 1963
July 11, 2020
July 11, 2020
August 19, 2015
July 5, 1960
February 4, 1958
Date of Birth
Mr. S.N. Subrahmanyan
Mr. Subramanian Sarma Mr. Sudhindra Vasantrao Desai Mr. T. Madhava Das
Name of the
Director
[Pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Secretarial Standard 2 on General Meetings]
ANNUAL GENERAL MEETING
DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT AT THE FORTHCOMING
Notice
party
None
between
As the proposal relates to
providing Parent Company
Guarantees or Corporate
Guarantees or Letter of
Comforts or Undertakings
on behalf of international
subsidiaries the question of
valuation does not arise.
The charges would be upto
0.50% per annum which is
benchmarked with the existing
bank guarantee charges
Not Applicable
Not Applicable
NIL
1.66%
1.28%
1.47%
The Power business of the Company is into
construction and commissioning of power
plants. Boilers/Turbines are a critical component
of the power plant and hence procurement
of boilers/turbines is in the ordinary course of
business for the Company.
LMB/LMTG is a joint venture between the
Company and Mitsubishi Heavy Industries
(MHI) and is part of the technical collaboration
in construction and commissioning of power
plants.
While bidding for a project, the technical
qualifications of MHI adds to the pre-
qualifications of the Company. The Company
is charged a price comparable with what LMB/
LMTG charges to its other customers. Hence the
transaction is at arm's length.
The Company also avails infrastructure and
business support services with respect to boilers
and turbine generators from LMB and LMTG
respectively.
4.15%
These entities operate from common
campus(es) across the country and expenses
related to the same are apportioned by the
Company to LMB and LMTG.
Engineering business
provides indigenous,
design-to-delivery
solutions across the
defence spectrum -
from surveillance to
strike capabilities, and
mobility platforms
essential to enhance
their effectiveness.
The Company is in the
business of bidding for
various EPC contracts
in India as well as
overseas. Most of the
EPC projects involve
use of customized
fabricated structures
as per the contract
specifications. As far
as Indian projects
are concerned, the
Company has its own
fabrication facility(ies)
in India. In case of
overseas projects, the
Company generally
uses such facilities
outside India to save
on logistics costs.
Thus, availing
fabrication services
is an activity in the
normal course of
business.
274
Corporate
Overview
Management
Discussion and Analysis
Integrated
Statutory Financial
Report
Reports
Statements
LARSEN & TOUBRO
The Heavy
Engineering business
manufactures and
supplies custom
designed equipment
& critical piping to
process industries
such as fertilizer,
chemical, refinery,
petrochemical and
oil & gas, as well as
to sectors such as
thermal & nuclear
power and aerospace.
The Defence
3.83%
Not Applicable as no indebtness shall be incurred by the Company
The charges would be upto
0.50% per annum which is
benchmarked with the existing
bank guarantee charges.
Integrated Annual Report 2021-22
Notice
Particulars
Resolution No. 7
Resolution No. 8
Details of the
Resolution No. 9
Not Applicable
Resolution No. 10
Resolution No. 11
source of funds in
connection with the
proposed transaction
If any financial
indebtness is
incurred to make
or give such loans/
advances/securities
for loan and Nature
of Indebtness/Cost of
Funds/Tenure
Applicable terms,
including covenants,
tenure, interest rate,
repayment schedule,
whether secured
(nature of security)
or unsecured
Purpose for which
funds will be utilised
Any advance paid
or received for the
transaction
Percentage of the
Company's annual
consolidated
turnover for the
immediately
preceding financial
year (i.e FY 22) that
is represented by
the value of the
proposed transaction
Details about
valuation, arm's
length and ordinary
course of business
The Parent Company
Guarantee or Corporate
Guarantee will be provided at
an arm's length basis and a fee
will be charged.
Particulars
Resolution No. 7
Resolution No. 8
Resolution No. 9
Notice
Any subsequent material modification in the proposed
transactions, as defined by the Audit Committee as a part
of Company's Policy on Related Party Transactions, shall be
placed before the shareholders for approval, in terms of
Regulation 23(4) of the SEBI Listing Regulations.
SEBI vide its Circular dated April 8, 2022 has clarified that a
related party transaction approved by the shareholders shall
be valid from one AGM till the next AGM of the Company
or for a period of fifteen months, whichever is earlier.
The Board recommends the Resolution set out at Item Nos.
7 to 11 for approval of the Shareholders.
None of the Directors and Key Managerial Personnel (KMP)
of the Company and their respective relatives are, in any
way, concerned or interested, in the Resolution set out at
Item Nos. 7 to 11.
The members may note that as per the provisions of the
SEBI Listing Regulations, all related parties (whether such
related party is a party to the above-mentioned transaction
or not), shall not vote to approve the Resolutions set out at
Item Nos. 7 to 11.
Item No. 12
The Company requires adequate capital to meet the
needs of growing business. While it is expected that the
internal generation of funds would partially finance the
need for capital, debt raising would be another source of
funds and hence it is thought prudent for the Company
to have enabling approvals to raise a part of the funding
requirements for the said purposes as well as for such other
corporate purposes as may be permitted under applicable
laws through the issue of appropriate securities as defined
in the resolution, in Indian or International markets.
The fund raising may be through a mix of equity/equity-
linked instruments, as may be appropriate. Members'
approval is sought for the issue of equity shares, securities
linked to or convertible into equity shares or depository
receipts of the Company. SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 also provides
that the Company shall, in the first instance, offer all
Securities for subscription pro-rata to the Shareholders
unless the Shareholders in a general meeting decide
otherwise. Members' approval is sought for issuing any
such instrument as the Company may deem appropriate
to parties other than the existing shareholders. Whilst no
specific instrument has been identified at this stage, in the
event the Company issues any equity linked instrument,
the issue will be structured in a manner such that the
additional share capital that may be issued would not be
more than 5% of the paid-up capital of the Company (as
at the date when the Board recommended passing of the
Special Resolution). The equity shares, if any, allotted on
issue, conversion of Securities shall rank in all respects pari
passu with the existing equity shares of the Company.
The Company may also opt for issue of securities through
Qualified Institutions Placement (QIP). A QIP of the shares
of the Company would be less time consuming and more
economical than other modes of raising capital.
Accordingly, the Company may issue securities by way
of a QIP in terms of Chapter VI of the Securities and
Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018 ('SEBI Regulations').
These securities will be allotted only to Qualified
Institutional Buyers (QIBS) as per the SEBI Regulations and
there will be no issue to retail individual investors and
existing retail shareholders. The resolution proposed is an
enabling resolution and the exact price, proportion and
timing of the issue of the securities will be decided by the
Board based on an analysis of the specific requirements
after necessary consultations. Therefore, the proposal
seeks to confer upon the Board the absolute discretion to
determine the terms of issue in consultation with the Lead
Managers to the Issue.
As per Chapter VI of the SEBI Regulations, an issue of
securities on QIP basis shall be made at a price not less
than the average of the weekly high and low of the closing
prices of the related shares quoted on the stock exchange
during the two weeks preceding the "relevant date." The
Board may, at its absolute discretion, issue equity shares
at a discount of not more than five percent or such other
discount as may be permitted under applicable regulations
to the 'floor price' as determined in terms of the SEBI
Regulations, subject to Section 53 of the Companies Act,
2013.
As the pricing of the offer cannot be decided except at a
later stage, it is not possible to state the price of shares to
be issued.
However, the same would be in accordance with the
provisions of the SEBI Regulations, the Companies Act,
2013, or any other guidelines/regulations/consents as may
be applicable or required.
In case of issue of convertible bonds and/or equity shares
through depository receipts, the price will be determined
on the basis of the then current market price and other
relevant guidelines.
The "relevant date" for the above
i)
purpose, shall be
in case of allotment of equity shares, the date of
the meeting in which the Board decides to open the
proposed issue
EXPLANATORY STATEMENT
The results declared along with the Scrutinizer's report,
will be hosted on the website of the Company at
www.larsentoubro.com and on the website of NSDL
at https://evoting.nsdl.com and will be displayed on
the Notice Board of the Company at its Registered
Office as well as Corporate Office immediately
after the declaration of the result by the Chairman
or any person authorised by him in writing and
communicated to the Stock Exchanges.
278
inter-se
directors
Integrated Annual Report 2021-22
None
275
The above related party contract(s)/arrangement(s) will materialize only if the Company succeeds
in the bids being participated.
Rationale/Benefit of
the transaction and
why this transaction
is in the interest of
the Company
Any other
information relevant
or important for the
shareholders to take
an informed decision
This will enable international
subsidiaries to bid and execute
contracts in foreign countries
All international subsidiary
companies have local partners.
However, 100% beneficial
interest in the international
subsidiaries is held by the
Company.
The Power business of the Company bids for
execution of a power plant project after taking
into consideration various costs involved.
Procurement of boilers/turbines is an integral
part of the installation of a power plant.
While bidding for the project, the Company
states that the boilers/turbine generators
and other infrastructure support service will
be procured from LMB and LMTG which are
pre-qualified as per the contractual conditions.
Resolution No. 10
Both these businesses
require customized
forging.
Hence procurement
of forgings is in
the ordinary course
of business of the
Company.
The businesses
procure forgings from
LTSSHF as well as
external vendors and
hence arm's length
is decided based on
comparable quotes.
Factors such as
timeliness and quality
are also considered
before deciding on
the procurement.
The Company
also sells scrap
materials as well as
avails engineering
services for its Heavy
Engineering and
Defence Engineering
businesses.
This entity operates
from a common
campus in Hazira
and expenses related
to the same are
apportioned by the
Company to LTSSHF.
The Heavy
Engineering &
Defence Engineering
business of the
Company bids for
various projects
(including defence
contracts of the
Government)
Some of these
contracts require
procurement of
forgings.
LTSSHF is a pre-
qualified supplier for
most of the clients.
The Company is expected to bid for various projects during FY 2023.
Resolution No. 11
The Company obtains
quotations from
various parties for its
fabrication activities
and based on the price,
quality, timelines,
etc., the contract gets
finalized.
MFY also quotes for
such contracts and gets
selected only if the
quote is competitive.
The Company also
sells material such as
steel plates, pipes, etc
to MFY at competitive
prices.
The Energy &
Hydrocarbon business
of the Company
bids for various EPC
contracts.
Customized fabrication
activities are an
essential part of
execution of such
contracts.
Such activities are
normally done through
MFY which has the
technical expertise,
facilities and execution
capabilities.
Since it is not possible to predict the exact amount of the contract(s), enabling approval of
shareholders is being sought.
As required by Section 102 of the Companies Act, 2013,
the following Explanatory Statement sets out material
facts relating to the business under items 6 to 13 of the
accompanying Notice dated May 12, 2022.
A detailed procedure for making a Complaint, initiating an
enquiry, redressal process and preparation of report within
a stipulated timeline is laid out in the Policy document.
The Policy also covers Disciplinary Action for Sexual
Harassment. The Policy is uploaded on the Company's
website at https://www.larsentoubro.com/corporate/about-
It-group/corporate-policies/.
Statutory Financial
Reports
Statements
SCHEME OF ARRANGEMENT BETWEEN THE COMPANY
AND L&T HYDROCARBON ENGINEERING LIMITED:
The Board of Directors of the Company had approved a
Scheme for Amalgamation of L&T Hydrocarbon Engineering
Limited (LTHE), a wholly owned subsidiary, with the
Company. The rationale for the Scheme was to create cost
effectiveness by integrating the Hydrocarbon business of
LTHE and Engineering, Projects and Construction (EPC)
power business of the Company.
During FY 2022, the Company sold its digital
transformation business, incubated and operated as
L&T NXT, to Mindtree Limited, a listed subsidiary of the
Company, for a consideration of 198 crore.
SALE OF DIGITAL BUSINESS (L&T NXT):
The Company's borrowing programmes have received
the highest credit ratings from CRISIL, ICRA and India
Ratings. The details of the same are given on page 313 in
Annexure 'B' - Report on Corporate Governance forming
part of this Board Report and is also available on the
website of the Company.
The Company has not defaulted on payment of any dues
to the financial lenders.
The Company has issued Commercial Papers amounting to
5,800 crore during FY 2022. As on date, the outstanding
amount of Commercial Papers is 2,000 crore.
The Company has exercised the first call on the partly paid
up Debentures issued in the FY 2021 and raised 450
crore (2.5 lakh each on 18,000 debentures) during FY
2022. The funds raised through issuance of NCDs have
been utilized for repayment of existing maturing NCDs.
LARSEN & TOUBRO
To provide the procedure for the resolution and
redressal of complaints of Sexual Harassment.
Report
Discussion and Analysis
The Scheme of Arrangement (the "Scheme") was approved
by the Hon'ble National Company Law Tribunal, Mumbai
Bench and became effective from 7th February 2022. The
Appointed date for the Scheme is 1st April 2021.
Subsequently all the subsidiaries of LTHE have become
direct subsidiaries of the Company.
Integrated
Corporate
Overview
280
During the year, the Company repaid Non-convertible
Debentures (NCDs) of 450 crore and short-term External
Commercial Borrowings (ECB) of USD 100 million as per
the repayment schedule.
The Company's Authorized Capital increased from
crore to 8,037 crore pursuant to amalgamation of L&T
Hydrocarbon Engineering Limited with the Company vide
order dated 28th January 2022 passed by Hon'ble National
Company Law Tribunal, Mumbai bench.
5,025
During the year under review, the Company allotted
473,826 equity shares of 2/- each upon exercise of stock
options by eligible employees under the Employee Stock
Option Schemes.
CAPITAL AND FINANCE:
corporate-policies/.
by the Board of Directors of the Company which is in
line with regulation 43A of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
The Policy is uploaded on the Company's website at
https://www.larsentoubro.com/corporate/about-lt-group/
The Dividend payment is based upon the parameters
mentioned in the Dividend Distribution Policy approved
The Directors recommend payment of dividend of ₹22/-
(1,100%) per equity share of 2/- each on the share capital
amounting to 3,091.06 crore.
Management
AMOUNT TO BE CARRIED TO GENERAL RESERVE:
The Company has not transferred any amount to general
reserve during the current financial year.
DIVIDEND:
AMALGAMATION OF MINDTREE LIMITED WITH
LARSEN & TOUBRO INFOTECH LIMITED:
Subsequent to the year under review, the Board of
Directors of Mindtree Limited (MT) and Larsen & Toubro
Infotech Limited (LTI), listed subsidiaries of the Company,
have approved a Scheme of Amalgamation of MT with LTI.
The said scheme is subject to approval of the Shareholders
and creditors of these subsidiaries and the approval of
applicable regulators and the Hon'ble National Company
Law Tribunals having jurisdiction over these subsidiary
companies.
As at 31st March 2022, the gross value of property, plant
and equipment, investment property and other intangible
assets including leased assets, were at 16,837.38 crore
and the net value of property, plant and equipment,
investment property and other intangible assets, including
leased assets, were at 9,695.93 crore. Capital Expenditure
during the year amounted to ₹ 1,410.29 crore.
of the Postal Ballot will be declared on or before 18th May
2022.
The Company proposes to enter into a material related
party transaction with L&T Finance Limited for providing
a line of credit of 2,000 crore for a period of 5 years
from FY 2023 till FY 2027. The transaction is not a
material related party transaction as per the provisions of
the Companies Act, 2013. However, the said transaction
exceeds the materiality threshold of ₹1,000 crore as
provided under Regulation 23(1) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015. The Company has sought an enabling approval from
the Shareholders by means of a Postal Ballot. The results
There were no related party transactions that have conflict
with the interest of the Company.
During the year under review, all related party transactions
were in the ordinary course of business and at arm's length.
The Audit Committee has approved the related party
transactions for the FY 2022 and the estimated related
party transactions for FY 2023.
The Company has a process in place to periodically review
and monitor Related Party Transactions.
The Audit Committee and the Board of Directors have
reviewed and approved the amended Related Party
Transactions Policy and the same has been uploaded on
the Company's website https://www.larsentoubro.com/
corporate/about-lt-group/corporate-policies/.
Obligations and Disclosure Requirements) Regulations,
2015, the Company has revised its existing Related Party
Transactions Policy to align it with the requirements of the
said Regulations.
Pursuant to the amendments to the SEBI (Listing
WITH RELATED PARTIES:
PARTICULARS OF CONTRACTS OR ARRANGEMENTS
The Company has disclosed the full particulars of the
loans given, investments made or guarantees given or
security provided as required under section 186 of the
Companies Act, 2013, Regulation 34(3) and Schedule V of
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 in Notes 57 and 58 forming part of the
financial statements.
CAPITAL EXPENDITURE:
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE,
GUARANTEES GIVEN OR SECURITY PROVIDED BY THE
COMPANY:
Board Report
Integrated Annual Report 2021-22
281
The Company has formulated a policy on identification of
material subsidiaries in line with Regulation 16(c) of the
SEBI (Listing Obligations and Disclosure Requirements)
A statement containing the salient features of the
financial statement of subsidiary / associate / joint
venture companies and their contribution to the overall
performance of the Company is provided on pages 611 to
622 of this Annual Report.
Pursuant to an order passed by the National Company Law
Tribunal, Mumbai bench, the equity share capital of L&T
Seawoods Limited, a wholly owned subsidiary, was reduced
to the extent of 30,00,00,000 equity shares aggregating to
300 crore by way of return of surplus cash on 7th April
2022.
Kesun Iron and Steel Company Private Limited has applied
to the Ministry of Corporate Affairs for strike off under
the provisions of Companies Act, 2013 on 15th December
2021. The approval is awaited.
During the year under review, the Company acquired
6,82,25,347 equity shares of L&T Finance Holdings Limited
(LTFHL) and presently holds 163,92,29,920 equity shares
representing 66.26% of the total share capital of LTFHL.
L&T Uttaranchal Hydropower Limited (L&T UHPL) ceased
to be a subsidiary of the Company pursuant to the sale of
entire stake by the Company and L&T Power Development
Limited (a wholly owned subsidiary) to ReNew Power
Services Private Limited (ReNew) for a total consideration
of 1,003 crore. The Company held 142,68,50,000
preference shares in L&T UHPL which were entirely sold to
ReNew.
SUBSIDIARY / ASSOCIATE / JOINT VENTURE
COMPANIES:
During the year under review, the Company has not
accepted deposits from the public falling within the ambit
of section 73 of the Companies Act, 2013 and the rules
framed thereunder, and the requisite returns have been
filed. The Company does not have any unclaimed deposits
as of date.
DEPOSITS:
Regulations, 2015 and the same is placed on the
Company's website at https://www.larsentoubro.com/
corporate/about-It-group/corporate-policies/. The Company
does not have any material subsidiaries as on the date of
this report.
The Company is seeking an enabling approval for certain
material related party transactions at the ensuing Annual
General Meeting (AGM). Shareholders are requested
to refer to the AGM notice at pages 258 to 279 of this
Annual Report, for details of the proposed related party
transactions.
The total income for the financial year under review was
1,04,613.06 crore as against 90,615.77 crore for the
previous financial year, registering an increase of 15.45%.
The profit before tax from continuing operations including
exceptional items was 10,031.47 crore for the financial
year under review as against 5,318.73 crore for the
previous financial year. The profit after tax from continuing
operations including exceptional items was 7,879.45
crore for the financial year under review as against
3,147.31 crore for the previous financial year, registering
an increase of 150.36%.
260.00
25722.05
Also see pages 307 and 308 forming part of Annexure 'B'
of this Board Report.
The Company has a Whistle-blower Policy in place
since 2004. The Policy has been modified to meet the
requirements of Vigil Mechanism under the Companies
Act, 2013. The Whistle Blower Policy is available on
the Company's website https://www.larsentoubro.com/
corporate/about-It-group/corporate-policies/.
Remuneration received by Whole-time Director
from subsidiary company: Mr. D. K. Sen, Whole-
time Director of the Company is also the Managing
Director of L&T Infrastructure Development Projects
Limited (L&T IDPL), a subsidiary of the Company.
During FY 2022, part of the remuneration paid to
Mr. Sen was charged to L&T IDPL. Accordingly, the
Company has recovered an amount of ₹ 1,81,18,283
from L&T IDPL for remuneration paid to Mr. Sen.
VIGIL MECHANISM:
Reporting of fraud: The Auditors of the Company
have not reported any instances of fraud committed
against the Company by its officers or employees as
specified under section 143(12) of the Companies Act,
2013.
IBC: There is no Corporate Insolvency Resolution
Process initiated under the Insolvency and Bankruptcy
Code, 2016 (IBC).
MSME: The Company has registered itself on Trade
Receivables Discounting System platform (TReDS)
through the service providers Receivables Exchange
of India Limited. The Company complies with the
requirement of submitting a half yearly return to the
Ministry of Corporate Affairs within the prescribed
timelines.
Annual Return: The Annual Return of the Company
for the FY 2022 is available on our website
https://investors.larsentoubro.com/Listing-Compliance.aspx.
Statutory Compliance: The Company complies with
all applicable laws and regulations, pays applicable
taxes on time, ensures statutory CSR spend and
initiates sustainable activities.
showcasing how the Company is adding value to its
stakeholders. The Integrated Report forms a part of
this Annual Report.
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS
PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS:
Report
Integrated
Management
Corporate
Overview
286
Integrated Reporting: The Company is complying
with the applicable requirements of the Integrated
Reporting Framework. The Integrated Report tracks
the sustainability performance of the organization and
its interconnectedness with the financial performance,
Business Responsibility and Sustainability
Reporting: As per Regulation 34 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, a separate section on Business Responsibility
and Sustainability Reporting forms a part of this
Annual Report (refer pages 210 to 257).
Corporate Governance: Pursuant to Regulation
34 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, a Report on
Corporate Governance and a certificate obtained from
the Statutory Auditors confirming compliance with
Corporate Governance requirements provided in the
aforesaid Regulations, are provided in Annexure 'B'
forming part of this Report.
A certificate obtained from the Secretarial Auditors,
confirming that the ESOP Schemes of the Company
are in compliance with the SBEB Regulations and that
the Company has complied with the provisions of the
Companies Act, 2013 and the SBEB Regulations is also
provided in Annexure 'B' forming part of this Report.
The disclosure relating to ESOPs required to be
made under the provisions of the Companies
Act, 2013 and the rules made thereunder and
the Securities and Exchange Board of India
(Share Based Employee Benefit and Sweat
Equity) Regulations, 2021 ("SBEB Regulations")
is provided on the website of the Company
https://investors.larsentoubro.com/Listing-Compliance.aspx.
ESOP Disclosures: There has been no change in the
Employee Stock Option Schemes (ESOP schemes)
during the current financial year.
of sexual harassment and upholding the dignity of
employees. Specific programs have been created on
the digital platform to sensitize employees to uphold
the dignity of their colleagues and prevention of sexual
harassment. During FY 2022, about 11,100 employees
have undergone training through the programs/ workshops
including the awareness sessions held on digital platform.
There were 2 complaints received during the FY 2022. Both
the complaints were redressed as per the provisions of the
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and Rules, 2013.
OTHER DISCLOSURES:
Discussion and Analysis
PERFORMANCE OF THE COMPANY:
During the year under review, there were no material
and significant orders passed by the regulators or courts
CONSOLIDATED FINANCIAL STATEMENTS:
31131.14
Balance to be carried forward
39.36
58.02
Add: Gain on remeasurement of the net defined benefits plans
Less: Capital redemption reserve
2527.66
Less: Interim dividend paid during the year
1123.23
2528.38
Less: Dividend paid for the previous year
838.62
or tribunals impacting the going concern status and the
Company's operations in future.
Add: Change on account of business combination
25722.05
Add: Balance brought forward from the previous year
11797.79
7879.45
Net profit after tax from continuing operations and discontinued operations
AUDITORS:
The Secretarial Audit Report issued by M/s. S. N.
Ananthasubramanian & Co., Company Secretaries is
attached as Annexure 'E' forming part of this Board
Report. The Secretarial Audit Report does not contain any
qualification, reservation or adverse remark.
SECRETARIAL AUDIT REPORT:
The Auditors' report to the Shareholders does not contain
any qualification, observation or adverse comment.
AUDIT REPORT:
Your Directors are pleased to attach the Consolidated
Financial Statements pursuant to section 129(3) of
the Companies Act, 2013 and Regulation 34 of the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, prepared in accordance with the
provisions of the Companies Act and the Indian Accounting
Standards (Ind AS).
16957.17
MATERIAL CHANGES AND COMMITMENTS AFFECTING
THE FINANCIAL POSITION OF THE COMPANY,
BETWEEN THE END OF THE FINANCIAL YEAR AND THE
DATE OF THE REPORT:
Other than stated elsewhere in this report, there are no
material changes and commitments affecting the financial
position of the Company between the end of the financial
year and the date of this report.
CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
OUTGO:
The disclosures required to be given under section 135
of the Companies Act, 2013 read with Rule 8(1) of the
Companies (Corporate Social Responsibility Policy) Rules,
2014 are given in Annexure 'C' forming part of this Board
Report.
Board Report
Integrated Annual Report 2021-22
285
A brief note regarding the Company's initiatives with
respect to CSR is given in Annexure 'B' - Report on
Corporate Governance forming part of this Board Report.
Please refer to pages 304 to 306 of this Annual Report.
aspx.
The CSR policy framework and Annual Action Plan
for FY 2023 is available on the Company's website at
https://investors.larsentoubro.com/corporate-governance.
The Corporate Social Responsibility (CSR) Committee
comprises of Mr. M. M. Chitale, Mr. R. Shankar Raman and
Mr. D. K. Sen as the Members. Mr. Chitale is the Chairman
of the Committee.
CORPORATE SOCIAL RESPONSIBILITY:
The Company sends specific advance communication to
the concerned shareholders at their address registered with
the Company and also publishes notice in newspapers
providing the details of the shares due for transfer to
enable them to take appropriate action. All corporate
benefits accruing on such shares viz. bonus shares, etc.
including dividend except rights shares shall be credited to
IEPF.
In accordance with the provisions of the section 124(6) of
the Companies Act, 2013 and Rule 6(3)(a) of the Investor
Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 ('IEPF Rules'), the
Company has transferred 3,17,463 equity shares of 2
each (0.02% of total number of shares) held by 1,530
shareholders (0.10% of total shareholders) to IEPF. The said
shares correspond to the dividend which had remained
unclaimed for a period of seven consecutive years from
the financial year 2013-14. Subsequent to the transfer, the
concerned shareholders can claim the said shares along
with the dividend(s) by making an application to IEPF
Authority in accordance with the procedure available on
www.iepf.gov.in and on submission of such documents as
prescribed under the IEPF Rules.
The Chief Financial Officer of the Company has certified
that CSR funds so disbursed for the projects have been
utilized for the purposes and in the manner as approved by
the Board.
Cumulatively, the amount transferred to the said fund was
* 46,79,35,382 as on 31st March 2022.
co-ordination with the RTA to locate the shareholders who
have not claimed their dues.
The Company has been regularly sending communications
to members whose dividends are unclaimed requesting
them to provide/update bank details with Registrar and
Transfer Agents (RTA)/Company, so that dividends paid
by the Company are credited to the investor's account
on time. Efforts are also made by the Company in
TRANSFER TO INVESTOR EDUCATION AND
PROTECTION FUND:
In adherence to SEBI's circular to enhance the due-diligence
for dematerialization of the physical shares, the Company
has provided the static database of the shareholders
holding shares in physical form to the depositories which
would augment the integrity of its existing systems and
enable the depositories to validate any dematerialization
request.
In view of the numerous advantages offered by the
Depository system as well as to avoid frauds, members
holding shares in physical form are advised to avail of the
facility of dematerialization from either of the Depositories.
Pursuant to amendments in SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, with effect
from January 24, 2022, requests for effecting transfer of
securities in physical form, shall not be processed by the
Company and all requests for transmission, transposition,
issue of duplicate share certificate, claim from unclaimed
suspense account, renewal/exchange of securities
certificate, endorsement, sub-division/split of securities
certificate and consolidation of securities certificates/folios
need to be processed only in dematerialized form. In such
cases the Company will issue a letter of confirmation,
which needs to be submitted to Depository Participant(s)
to get credit of the securities in dematerialized form.
Shareholders desirous of availing these services are
requested to refer to the detailed procedure for availing
these services provided on the website of the Company at
https://investors.larsentoubro.com/shareholder-services.aspx.
As the members are aware, the Company's shares are
compulsorily tradable in electronic form. As on 31st March
2022, 98.89% of the Company's total paid up capital
representing 138,93,93,268 shares are in dematerialized
form.
DEPOSITORY SYSTEM:
no material weakness exists. The Company has a process
in place to continuously monitor the same and identify
gaps, if any, and implement new and/or improved controls
wherever the effect of such gaps would have a material
effect on the Company's operations.
LARSEN & TOUBRO
Integrated Statutory Financial
Report
Reports
Statements
Despite these efforts, an amount of 9,12,62,638 which
I was due and payable and remained unclaimed and unpaid
for a period of seven years, was transferred to Investor
Education and Protection Fund (IEPF) as provided in section
125 of the Companies Act, 2013 and the rules made
thereunder.
Discussion and Analysis
M/s. Deloitte Haskins & Sells LLP were re-appointed as
Statutory Auditors for a period of 5 continuous years
from the conclusion of 75th Annual General Meeting till
the conclusion of 80th Annual General Meeting of the
Company.
The Company has complied with Secretarial Standards
issued by the Institute of Company Secretaries of India on
Board Meetings and General Meetings.
The Auditors attend the Annual General Meeting of the
Company. Also see page 308 forming part of Annexure 'B'
of this Board Report.
COST AUDITORS:
The provisions of section 148(1) of the Companies Act,
2013 are applicable to the Company and accordingly
the Company has maintained cost accounts and records
in respect of the applicable products for the year ended
March 31, 2022.
Pursuant to the provisions of section 148 of the Companies
Act, 2013 and as per the Companies (Cost Records and
Audit) Rules, 2014 and amendments thereof, the Board,
on the recommendation of the Audit Committee, at
287
Integrated Annual Report 2021-22
Board Report
its meeting held on 12th May 2022, has approved the
appointment of M/s R. Nanabhoy & Co., Cost Accountants,
as the Cost Auditors for the Company for the financial year
ending 31st March 2023 at a remuneration of 17 lakhs
plus taxes and out of pocket expenses.
A proposal for ratification of remuneration of the Cost
Auditor for FY 2023 is placed before the Shareholders.
The Report of the Cost Auditors for the financial year
ended 31st March 2022 is under finalization and shall
be filed with the Ministry of Corporate Affairs within the
prescribed period.
ACKNOWLEDGEMENT:
COMPLIANCE WITH SECRETARIAL STANDARDS ON
BOARD AND GENERAL MEETINGS:
The Directors take this opportunity to thank the Customers,
Supply Chain Partners, Employees, Financial Institutions,
Date 12th May 2022
Place Mumbai
For and on behalf of the Board
A.M. NAIK
Group Chairman
(DIN: 00001514)
288
To lay down the guidelines for reporting acts of Sexual
Harassment at the workplace; and
•
• To define Sexual Harassment;
This Policy encompasses the following objectives:
The Company believes that every employee should have
the opportunity to work in an environment free from any
conduct which can be considered as Sexual Harassment.
The Company is committed to treating every employee
with dignity and respect. The Company has formulated a
policy on 'Protection of Women's Rights at Workplace' as
per the provisions of the Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act,
2013 and Rules, 2013. The policy is applicable to all L&T
establishments located in India. The policy has been widely
disseminated. The Company has constituted Internal
Complaints Committees to ensure implementation and
compliance with the provisions of the aforesaid Act and the
Rules.
PROTECTION OF WOMEN AT WORKPLACE:
Banks, Central and State Government authorities,
Regulatory Authorities, Stock Exchanges and all other
stakeholders for their continued co-operation and support
to the Company. Your Directors also wish to record their
appreciation for the continued co-operation and support
received from the Joint Venture Partners/Associates.
Management
Corporate
Overview
284
The Company has also disclosed on its website
http://investors.larsentoubro.com/Listing-Compliance.aspx
details of the familiarization programs to educate the
Independent Directors regarding their roles, rights and
responsibilities in the Company and the nature of the
industry in which the Company operates, the business
model of the Company, etc.
The terms and conditions of appointment of the
Independent Directors are in compliance with the provisions
of the Companies Act, 2013 and are placed on the website
of the Company http://investors.larsentoubro.com/Listing-
Compliance.aspx.
The notice convening the AGM includes the proposal for
re-appointment of Directors.
Mr. T. Madhava Das, retire by rotation at the ensuing
Annual General Meeting (AGM) and being eligible, offer
themselves for re-appointment.
Mr. Subramanian Sarma, Mr. S. V. Desai and
held on March 24, 2022 has approved the appointment
of Mr. Pramit Jhaveri as an Independent Director for a
period of five years with effect from April 1, 2022 till
March 31, 2027, subject to the approval of shareholders
through special resolution. The approval has been sought
by means of a Postal Ballot and the results will be declared
on or before 18th May 2022. The NRC considered the
appointment of Mr. Jhaveri as an Independent Director
after evaluating the skills, knowledge and experience
required on the Board as per the approved skill matrix.
The Board pursuant to the recommendation of the NRC
and report of his performance evaluation, re-appointed
Mr. S.N Subrahmanyan as Chief Executive Officer and
Managing Director of the Company for a period of five
years from July 1, 2022 upto and including June 30, 2027.
His appointment shall be subject to the approval of the
shareholders.
LARSEN & TOUBRO
Financial
Statements
Reports
Report
Discussion and Analysis
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:
Statutory
Management
Corporate
Overview
282
Mr. Subodh Bhargava ceased to be an Independent
Director of the Company with effect from March 29, 2022
on account of completion of his tenure. The Board places
on record its appreciation towards valuable contribution
made by him during his tenure as Director of the Company.
Pursuant to the recommendation of the Nomination and
Remuneration Committee (NRC), the Board at its Meeting
DETAILS OF DIRECTORS AND KEY MANAGERIAL
PERSONNEL APPOINTED/ RESIGNED:
For further details on risk management, please refer to
page 306 of this Annual Report.
The Charter of the Committee is to assist the Board
in fulfilling its oversight responsibilities of reviewing
the existing Risk Management Policy, Framework, Risk
Management Structure and Risk Management Systems.
The Committee periodically reviews the risk status to
ensure that executive management mitigates the risks by
means of a properly designed framework.
Mr. Adil Zainulbhai, Mr. Sanjeev Aga and Mr. Subramanian
Sarma, Directors of the Company. Mr. Adil Zainulbhai is the
Chairman of the Committee.
The Board Risk Management Committee comprises
RISK MANAGEMENT:
Information as required to be given under section
134(3)(m) of the Companies Act, 2013 read with Rule 8(3)
of the Companies (Accounts) Rules, 2014 is provided in
Annexure 'A' forming part of this Board Report.
Integrated
This information is given in Annexure 'B' - Report on
Corporate Governance forming part of this Report.
Members are requested to refer to pages 293 and 294 of
this Annual Report.
AUDIT COMMITTEE:
The Company has in place an Audit Committee in terms
of the requirements of the Companies Act, 2013 read
with the rules made thereunder and Regulation 18 of the
SEBI (Listing Obligations and Disclosure Requirements)
ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has designed and implemented a process
driven framework for Internal Financial Controls ("IFC")
within the meaning of the explanation to section 134(5)(e)
of the Companies Act, 2013. For the year ended 31st
March 2022, the Board is of the opinion that the Company
has sound IFC commensurate with the nature and size
of its business operations and operating effectively and
The Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and were
operating effectively.
f)
e) The Directors have laid down an adequate system
of Internal Financial Controls to be followed by the
Company and such Internal Financial Controls are
adequate and operating efficiently;
d) The Directors have prepared the Annual Accounts on a
going concern basis;
c) The Directors have taken proper and sufficient care
for the maintenance of adequate accounting records
in accordance with the provisions of the Companies
Act, 2013 for safeguarding the assets of the Company
and for preventing and detecting fraud and other
irregularities;
b) The Directors have selected such accounting policies
and applied them consistently and made judgements
and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the
profit of the Company for that period;
DIRECTORS' RESPONSIBILITY STATEMENT:
The Board of Directors of the Company confirms:
a) In the preparation of Annual Accounts, the applicable
accounting standards have been followed along with
proper explanation relating to material departures;
The information in respect of employees of the Company
pursuant to Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, as amended from time to time, is provided
in Annexure 'G' forming part of this report. In terms of
section 136(1) of the Companies Act, 2013 and the rules
made thereunder, the Report and Accounts are being sent
to the Shareholders excluding the aforesaid Annexure. Any
Shareholder interested in obtaining a copy of the same may
write to the Company Secretary at the Registered Office
of the Company. None of the employees listed in the said
Annexure is related to any Director of the Company.
The details of remuneration as required to be disclosed
under the Companies Act, 2013 and the rules made
thereunder, are given in Annexure 'D' forming part of this
Board Report.
DISCLOSURE OF REMUNERATION:
For the year under review, the questionnaire was updated
suitably based on the comments and suggestions received
from Independent Directors. As in the previous years, an
external consultant was engaged to receive the responses
of the Directors and consolidate/ analyze the responses.
The same external consultant's IT platform was used from
initiation and till conclusion of the entire board evaluation
process. This ensured that the process was transparent and
independent of involvement of the Management or the
Company's IT system. This has enabled unbiased feedback.
The Board Performance Evaluation inputs, including
areas of improvement for the Directors, Board processes
and related issues for enhanced Board effectiveness
were discussed in the meetings of the Nomination and
Remuneration Committee and the Board of Directors held
on May 12, 2022.
The Nomination and Remuneration Committee and the
Board have laid down the manner in which formal annual
evaluation of the performance of the Board, Committees,
Individual Directors, CEO & MD and the Chairman has to
be made. All Directors responded through a structured
questionnaire giving feedback about the performance of
the Board, its Committees, Individual Directors, CEO & MD
and the Chairman.
The Independent Directors of the Company have registered
themselves with the data bank maintained by Indian
Institute of Corporate Affairs (IICA). In terms of section
150 of the Companies Act, 2013 read with Rule 6(4)
of the Companies (Appointment and Qualification of
Directors) Rules, 2014, all Independent Directors, except
Mr. Pramit Jhaveri, are exempted from undertaking the
online proficiency self-assessment test conducted by IICA.
Mr. Pramit Jhaveri shall complete the online proficiency
self-assessment test within the prescribed timelines.
PERFORMANCE EVALUATION:
and Regulation 16(1)(b) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015. The
same are also displayed on the website of the Company
http://investors.larsentoubro.com/Listing-Compliance.aspx.
The Independent Directors have complied with the Code
for Independent Directors prescribed in Schedule IV to the
Companies Act, 2013.
Board Report
Integrated Annual Report 2021-22
283
The Company has received Declarations of Independence
as stipulated under section 149(7) of the Companies Act,
2013 and Regulation 25(8) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
from Independent Directors confirming that he/she is
not disqualified from being appointed/re-appointed/
continue as an Independent Director as per the criteria
laid down in section 149(6) of the Companies Act, 2013
DECLARATION OF INDEPENDENCE:
The Committee has formulated a policy on Directors'
appointment and remuneration including recommendation
of remuneration of the key managerial personnel
and senior management personnel, and the criteria
for determining qualifications, positive attributes and
independence of a Director. Nomination and Remuneration
Policy is provided as Annexure 'F' forming part of this
Board Report and also disclosed on the Company's website
at https://www.larsentoubro.com/corporate/about-lt-group/
corporate-policies/. The Committee has also formulated a
separate policy on Board Diversity.
The Company has in place a Nomination and Remuneration
Committee in accordance with the requirements of the
Companies Act, 2013 read with the rules made thereunder
and Regulation 19 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015. The details
relating to the same are given in Annexure 'B' - Report on
Corporate Governance forming part of this Board Report.
Members are requested to refer to pages 300 to 303 of
this Annual Report.
COMPANY POLICY ON DIRECTORS' APPOINTMENT
AND REMUNERATION:
The Company has in place a Stakeholders Relationship
Committee in terms of the requirements of the Companies
Act, 2013 read with the rules made thereunder and
Regulation 20 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015. The details
relating to the same are given in Annexure 'B' - Report on
Corporate Governance forming part of this Board Report.
Members are requested to refer to page 304 of this Annual
Report.
Regulations, 2015. The details relating to the same are
given in Annexure 'B' - Report on Corporate Governance
forming part of this Board Report. Members are requested
to refer to pages 298 to 300 of this Annual Report.
STAKEHOLDERS RELATIONSHIP COMMITTEE:
Training programs and workshops for employees are
organised throughout the year. The orientation programs
for new recruits include awareness sessions on prevention
The Audit Committee reviews the independence and
objectivity of the Auditors and the effectiveness of the
Audit process.
The Auditors have confirmed that they have subjected
themselves to the peer review process of Institute of
Chartered Accountants of India (ICAI) and hold valid
certificate issued by the Peer Review Board of ICAI.
Selenium, Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda,
Hyderabad 500 032
Particulars
crore
FINANCIAL RESULTS:
The Directors have pleasure in presenting their 77th Annual Report and Audited Financial Statements for the year ended
31st March 2022.
Dear Members,
Board Report
Board Report
Integrated Annual Report 2021-22
279
KFintech Website: https://ris.kfintech.com/clientservices/mobilereg/mobileemailreg.aspx
Physical Shareholders:
Contact respective Depository Participant
Demat Shareholders:
Tel No: 18001020 990/1800 22 44 30
Lower Parel, Mumbai - 400013
Trade World, A Wing, 4th Floor, Kamala Mills Compound,
National Securities Depositories Limited (NSDL)
E-voting Service Provider
Email: einward.ris@KFintech.com
Tel No: 1800-425-8998/1800-345-4001
KFin Technologies Limited ("KFintech"),
Registrar and Transfer Agent
Members can also login using the login credentials of their demat account through
your DP registered with NSDL/CDSL for e-voting facility.
Logging in through Depositary Participants:
https://web.cdslindia.com/myeasi/home/login
Profit before depreciation, exceptional items and tax
1. Shareholders who have opted for Easi facility of CDSL:
Less: Depreciation, amortization, impairment and obsolescence
Add: Exceptional Items
8650.48
Net profit after tax from discontinued operations
2548.75
Less: Tax expense of discontinued operations
11199.23
3147.31
7879.45
2171.42
2152.02
5318.73
10031.47
(2818.65)
290.06
8137.38
9741.41
1150.68
1172.50
9288.06
10913.91
2020-21
2021-22
Profit before tax from discontinued operations
Profit for the period from continuing operations
Less: Provision for tax
Profit before tax
Profit before exceptional items and tax
Shares held in Demat mode with CDSL:
2. Others: www.cdslindia.com
1. Shareholders registered for NSDL IDEAS facility: https://eservices.nsdl.com/
2. Others: https://evoting.nsdl.com
Speaker Registration before AGM
Submission of Questions/Queries
before AGM
Helpline Number for VC/OAVM
participation
Participation through VC/OAVM
6
5
4
3
Mode
2
Day, Date and Time of AGM
Recorded Transcript
1
Sr. No Particulars
INFORMATION AT A GLANCE:
LARSEN & TOUBRO
Statements
Reports
Report
Discussion and Analysis
Overview
Statutory Financial
Integrated
Management
Corporate
Details
8
7
Video Conference (VC) and Other Audio Visual Means (OAVM)
Members can login from 03.00 P.M. (IST) on the date of the AGM at
https://www.evoting.nsdl.com.
Shares held in Demat mode with NSDL:
Wednesday, August 3, 2022, 05.00 P.M
Monday, August 1, 2022, 09.00 A.M
On or before Monday, August 08, 2022
Thursday, July 28, 2022
Friday, July 22, 2022
Email Registration and Contact
Updation Process
Name, address and contact details of
e-voting service provider and registrar
and transfer agent
16
Thursday, August 4, 2022, 3.30 P.M
14 Remote e-voting website of KFintech
Remote e-voting end time and date
13
15
12
1800 1020 990/1800 22 44 30
Members seeking any information with regard to the accounts or any matter to be
placed at the AGM, are requested to write to the Company on or before Thursday,
July 28, 2022 through email on IGRC@larsentoubro.com. The same will be replied by
the Company suitably. Please note that members' queries/questions will be responded
to only if the shareholder continues to hold the shares as on the cut-off date i.e
Thursday, July 28, 2022.
Remote e-voting start time and date
Will be made available post AGM at www.larsentoubro.com
Dividend for FY 2022 recommended by 22 per equity share of the face value of ₹2 each
the Board
9
Members may register themselves as a speaker by sending their request from their
registered email address mentioning their name, DP ID and Client ID/folio number,
PAN, mobile number to LNTGOGREEN@larsentoubro.com on or before Monday,
August 1, 2022.
Record Date
10
Dividend Payment Date
11
Cut-off date for e-voting
and microgrids (PT&D)
B&F Building & Factories
Big Data, Al/ML, AR / VR, 5G, Cloud,
Cybersecurity (LTI, LTTS, MT)
Automation, Industry 4.0, Digital
Engineering (LTTS, MT)
Digital Transformation
Universal coverage for basic amenities
while keeping up with growing
demands of global population
Financial services (LTFS)
LTI
Energy Efficient Power Systems
- Water consumption
Water and Sewage Treatment
systems (WET)
Societal Challenges
Climate change and resource scarcity
driving need for solutions to balance
growing needs with environment
Green Hydrogen (GE)
Water Recycling and Reuse
solutions (WET)
Climate Change
L&T Infotech
Affordable & Mass Housing (B&F)
• Metrics linked to ESG
performance based on
materiality e.g:
GHG Intensity
Data Storage and Computing (DC)
HC
It has been observed that competition from foreign and
domestic players has considerably increased in the last
few years.
Removal of Bid Bond and relaxation of Performance
Bank Guarantee in Government contracts has led to
increased competition, especially in Road Projects.
Sectors such as Power, Nuclear, Defence - Shipbuilding,
continued to show slow growth and underutilization of
their capacities.
Mitigation
The Company has in place mitigation strategies like country-
clearance approval procedure, monitoring of changes in
sanction regimes, diversification of Order Book, etc. Further,
entity level sanctions are also monitored for counter party risk
assessment.
The Company engages periodically with external experts
and Government Authorities to assess potential impacts
of geopolitical conflicts on new investments, supply chain,
logistics, and commodity prices. The Company has put in
place, alternate strategic sourcing options to minimise
the impact.
The Projects Business derives its competitive strength from its
excellence in execution, reputation for quality, technology,
timely completion, cost-effectiveness, sourcing capability,
project management expertise, strong safety record and
lengthy experience with a wide range of services and
technologies.
Bids are priced accordingly considering the risk appetite and
management strategy to deal with competition.
• Size of Green Portfolio
Enabling business sustainability
through high focus on ESG &
Stakeholder Value Creation
SO-V
Scaling up digital and E-commerce
businesses
SO-IV
• New Business or
Business offerings
developed
ride the Energy Transition wave
Developing business offerings to
SO-III
Completing the divestment of non-
core businesses
SO-II
• Businesses divested
• Revenue Growth
•Composition of Services
in Total Revenues
KPIs
Value accretive growth of
current businesses
SO-I
Objectives
Performance in FY 2021-22 against objectives:
Integrated Annual Report 2021-22
23
absorption of new
technologies and
partnerships
The recent geopolitical event - Russia-Ukraine -
conflict has impacted the world directly or indirectly in
terms of supply chain disruptions and inflation.
The Company operates in numerous geographies and
is exposed to risks on account of protectionist policies,
political dynamics, trade barriers, sanctions, and
geopolitical conflicts.
Risk
Underperformance
in key sectors
- Lost Time Incident
- Training hours
Performance
In FY 2021-22, despite continued impact of COVID-19 led disruptions,
the Company achieved revenues of 156,521 crore (+15% y-o-y).
Services business continued to show strong growth of 12% with a
stable percentage share in revenues at 30% in FY 2021-22.
In FY 2021-22, the Company divested Singoli-Bhatwari Hydroelectric
Project (99 MW) and is actively pursuing divestments in L&T IDPL
and exploring various alternatives to cap our current exposure in
Hyderabad Metro.
The size of Green Portfolio of businesses is 38,843 crore which is
38.2% of standalone revenues in FY 2021-22 (compared to 33.2%
in FY 2020-21).
The Board has approved entry into the 'Green Energy' business
through Green Hydrogen & derivates and Advanced Chemistry Cells
batteries. The business will be setup in FY 2022-23, including tie-ups
for technology and business partnerships. These new businesses are
proposed to be set up through joint ventures, with L&T having a
dominant share.
L&T SuFin and L&T EduTech have been formally launched in
FY 2021-22 and currently in scale-up stage.
A new business which has been evaluated and incubated in
FY 2021-22 is Data Center & Cloud Services (Business offering linked
to data centers and related services).
For details refer to sections:
Natural Capital (pg. no.136)
Social & Relationship Capital (pg.no.178)
Human Capital (pg.no.168)
24
through R&D,
Corporate
Overview
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
• Growth of Digital &
E-commerce Businesses
L&T has a comprehensive Enterprise Risk Management (ERM)
framework in place for identification, assessment, treatment
and reporting of risks. The Risk Management Framework
consists of four tiers:
• The operating businesses form the First Tier as risk owners
and have primary responsibility for identifying and managing
the risks.
• The Second Tier comprises corporate functions and
dedicated Business Risk Management teams who are
responsible for monitoring and reporting of risks and
providing guidance to risk owners.
• The Apex Risk Management Committee is the Third Tier
that monitors & provides strategic decisions on risks.
This Committee periodically evaluates the robustness
and defensibility of the systems in place and suggests
mitigation plans accordingly.
• The Board Risk Management Committee (BRMC) & Audit
Committee is the Fourth Tier that provides risk governance
and oversight as a component of strategic leadership.
The BRMC reviews the existing risk management policy,
framework, processes, structure, and the mitigation
systems. It also on a periodic basis, evaluates and monitors
the key risks at a Company level. The Audit Committee,
in compliance with The Companies Act and SEBI LODR,
oversees the financial risk framework of the Company.
The Company is predominantly into the Projects business
and has a robust Project Risk Management process. The
key processes of risk reviews include (a) country clearance
process for the first-time geographies (b) pre-bid risk
reviews based on authorisation level mapped to the range
of bid values (c) execution risk reviews of the projects for
tracking the movement of risks and course corrections
and (d) close out reviews to capture key learnings from
the projects completed and document the learnings for
future bids. The Company's risk management processes
ensure that the businesses accept risks as per the boundary
conditions based on the risk appetite of the organisation.
The entire risk management process is overseen by the
office of the Chief Risk Officer of the Company.
The Company also has a Chief Information Security
Officer (CISO) who is responsible for forming and assuring
implementation of IT security policies, frameworks to manage
cybersecurity risk, and controls across the organisation.
The top enterprise-wide risks for the Company and their mitigation measures are summarised below:
Geopolitical Risk
Competition
Management
TI
Capability
development
leadership pipeline
to enable growth
and business
continuity
Geographically diversified businesses. While India will
continue to be the main market for EPC Projects over the
next 5 years, select international markets i.e., Middle East,
Africa and ASEAN would also be in focus. The Americas and
Europe would continue to be the focus geographies for IT
services businesses.
7
Complementing the mature businesses with growth-
stage businesses. While established businesses continue to
drive the growth of the Group, the focus is also on seeding
and scaling up new businesses which have high growth
potential, are tech-oriented and have high value-addition.
22
The portfolio strategy aims to de-risk the revenue while improving profitability in the pursuit of growth.
This strategy focuses on:
Portfolio Strategy
Integrated Annual Report 2021-22
21
Green Energy
GE
Cloud Services
Geo L&T Geostructures
Data Center &
DC
& Distribution
Communication
PT&D Power Transmission
Smart World &
SWC
Treatment
Mindtree
MT
Services
L&T Technology
LTTS
Transportation Infra
Heavy Civil
WET Water & Effluent
Platforms (SuFin, EduTech)
to transform businesses across
various domains
Technology and services offerings
Balancing the cyclical nature of the EPC business
through a portfolio of Services businesses. With the aim
of better profitability and a stable revenue profile, the Group
intends to increase the share of the Services businesses, while
pursuing growth in the traditional EPC Contracts and Hi-Tech
Manufacturing businesses.
Supplementing the standalone offerings with
partnerships. For the traditional businesses, the Company
has partnered with several large global process and technology
licensors, and for the IT and Technology Services businesses,
the Group has extensive partnerships with established global
software product and technology companies.
Corporate
Overview
Management
Talent and
SE-4
when required
Financial resources
to enable growth
of the businesses
and strong financial
health to facilitate
access to capital
markets, as and
SE-3
Industry leading
capabilities in
digital technologies
and analytics for
productivity, ESG
effectiveness and
strengthening
revenue streams
SE-2
Operational
Excellence for
leadership in cost-
competitiveness
and world-class
execution
SE-1
Developing business
offerings to ride the
Energy Transition wave
of non-core businesses
Completing the divestment
These Strategic Objectives are supported through Strategic Enablers (SES):
Scaling up digital and
E-commerce businesses
SE-5
SO-IV
ROE
Growth
SO-V
SO-II
SO-I
Enabling business
sustainability through
high focus on ESG &
Stakeholder Value Creation
of current businesses
Value Accretive growth
As part of the Lakshya 2026 plan, the Group has re-evaluated shareholder value creation, defined social obligations, and framed
sustainability goals. The outcome of this assessment was the rearticulation of its Strategic Objectives (SOS), which would drive value
creation over a long-term horizon. These are:
LARSEN & TOUBRO
Strategic Thrust & Direction
Statements
Statutory Financial
Reports
Integrated
Report
Discussion and Analysis
SO-III
Risk Management
LARSEN & TOUBRO
New Government initiatives like Atmanirbhar Bharat (Make
in India) and impetus to National Infrastructure Pipeline
provides lot of growth opportunities in the near future.
Financial Risk Management is governed by the Risk
Management framework and policy approved by the Audit
Committee and authorised by the Board. Financial risks
in each business portfolio are measured and managed by
Corporate Treasury aided by the said framework.
Liquidity and Interest Rate Risks
The Company judiciously deploys its surplus funds in short-
term investments in line with the Board approved policy.
It constantly monitors the liquidity levels, economic and
capital market conditions and maintains access to the lowest
possible cost of sourcing liquidity through banking lines,
trade finance and capital markets. The Company managed
its higher than usual treasury investments to generate
investment return to neutralise the higher interest cost due
to borrowings raised in the previous financial year. The
Company dynamically manages interest rate risks through
a mix of fund-raising, investment products and derivatives
across maturity profiles and currencies within a robust risk
management framework.
With the post COVID-19 recovery, the attention is now focussed
on the size of G4 central bank balance sheets and a rethink of
the accommodative monetary policy. The Federal Reserve started
hiking interest rates with a 25 bps increase in their March 2022
meeting. The RBI, also in order to combat the inflationary trends,
has recently increased the repo rate leading to a hardening
interest rate regime.
Financial Resources & Capital Allocation
The capital allocation philosophy of the Company is geared
to support business initiatives for the medium to long term
growth of the Company, while retaining enough liquidity to
support any short-term exigencies faced by the Group.
FY 2021-22 started with another phase of uncertainty in
terms of liquidity with renewed lockdowns and disruption
of work at sites as well as in client offices. However, with
the Company having raised significant amount of long-term
liquidity in FY 2020-21, there was adequate liquidity reserve
on the balance sheet.
The Company provided support to Group companies like
L&T Metro Rail Hyderabad Ltd. while it was recovering from
impact of COVID-19's second and third waves. The Company
also supported the capital expenditure required to execute
some of the large projects awarded in the previous financial
year. Going forward, apart from regular capital expenditure,
the Company plans to invest in new businesses of Green
Energy & Data Centers and continue to focus on growing its
IT&TS services business.
Since business conditions have improved post the initial
disruption, the Company ended the year with a reduction
in its debt levels at 20,298 crore vis-à-vis 24,474 crore
in FY 2020-21. Low standalone gearing levels (Gross Debt
to Equity ratio at 0.30) and an adequate cash balance of
~25,000 crore equip the Company to deal with normal
business uncertainties.
The Company plans to maintain around the current level of
liquidity reserve on the Balance Sheet to deal with continuing
uncertainties in economic conditions.
While the Company has adequate banking facilities to cater
to the business requirements, the Large Exposure Framework
guidelines of RBI implemented from April 1, 2019, may
constrain the availability of bank limits for the Group. At
the same time, the Government's initiative to reduce the
performance bank guarantee requirement in projects from
10% to 3% has positively impacted the resources availability
for the businesses.
Internal Controls & Safeguards
One of the important pillars of corporate governance
is a robust internal controls framework that assists the
corporation to achieve predictable and desired outcomes.
It helps in aligning controls with the dynamics of constant
challenges and changes in risk profile, arising due to varying
internal and external factors. The internal controls framework
established by the Company is commensurate with the size
of operations and complexity of its businesses. All internal
controls are well aligned with the evolving business needs,
objectives, and overall strategic direction. The Company
ensures integrity in conducting its business, safeguarding of
its assets, timely preparation of reliable financial information,
accuracy and completeness in maintaining accounting
records, and prevention and detection of frauds and errors
through a set of detailed policies and procedures.
The Board of Directors and Management at all levels exhibit
the right tone at the top through their actions, behaviour,
and directives. The 'Code of Conduct' emphasises the
corporate culture and values of the Company which serves
as a beacon for the employees and inculcates the importance
of integrity and ethical values. Suppliers must conform to
a separate 'Code of Conduct' as a part of the registration
process to ensure that they align to the Company's
commitment to seek sustainable growth by integrating
Environment, Social and Governance (ESG) principles with its
businesses. The 'Code of Conduct' and the 'Whistle-blower /
Vigil Mechanism' policies are available to both employees and
business partners, to enable them to raise genuine concerns
about any actual or suspected ethical/legal violations or
misconduct or fraud, with adequate safeguards against
victimisation, fear of punishment or unfair treatment.
The Company has adopted the globally accepted framework
issued by the Committee of Sponsoring Organisations
(COSO) of the Treadway Commission for Internal Controls.
The Internal Financial Controls are instituted at the entity
and process levels and are aligned with the requirements
of the Companies Act, 2013. The internal control teams at
corporate and business levels serve as the second line of
defence and assist the Management in setting up of sound
internal controls and establishing, operating, and upgrading
the internal controls system. The Corporate team shares best
practices across the organisation, reviews and assesses the
processes, formulates and updates the policies, guidance
notes and advisories.
28
Energy Storage (PT&D, HC)
Renewables - Solar,
Expressways & Rail Networks (TI)
Integrated Annual Report 2021-22
27
80.07
80.07
83
17,570
8
Iron ore - Buy
71
57,020
73.76
73.76
9
Electric, Autonomous and
Connected systems (LTTS)
Steel - Buy
29,66,407
10
Cement - Buy
4,209
66,36,849
11
Nickel - Buy
177
1,099
19,762
World class airports (B&F, TI)
Mass Rapid Transit Systems (TI, HC)
田
EPC Projects
Value creation by the Group is enabled by leveraging its distinct business models across projects, manufacturing and service lines:
Business Model
Integrated Annual Report 2021-22
19
The plan also envisages venturing into emerging businesses
like Green Hydrogen development, Electrolyser & Battery
manufacturing, Data Centers and also scale up new-age
digital and e-commerce businesses over the plan period.
The thrust on unlocking value by exiting non-core
businesses continues.
The Lakshya 2026 plan targets to achieve value accretive
growth in the existing businesses through a multi-
pronged approach like selective project bidding, targeting
opportunities in line with global ESG trends, riding the
momentum in existing and emerging technological trends for
services, rejigging business offerings and driving profitability
through operational excellence, value engineering and
digitalisation initiatives.
The Company's 5-year Strategic Plan, 'Lakshya', is developed
through a collaborative and consultative process across the
organisation. The Lakshya 2026 plan formulation was initiated
in March 2021. The exercise was to be undertaken in 2020
for the period FY 2021-22 to FY 2025-26 but was deferred
by a year owing to the exigencies created by the COVID-19
pandemic and the heightened uncertainty across economy
and various sectors. The first year, which is FY 2021-22, was
covered through the annual budgeting exercise, and
Lakshya 2026 plan has been now developed for the four-year
period FY 2022-23 to FY 2025-26.
Business strategy formulation seeks to set long-term goals
and strategies that help the Company in exploiting its
strengths, identifying and realising new opportunities, and
building new capabilities. This is enabled through three plans
with time horizons ranging from long-term Perspective (7-10
years) to medium-term Strategic (5 years) to the short-term
(the Annual Budget). Each plan dovetails into the next.
The Group focuses on its proven core competencies
of conceptualising, designing, engineering, executing,
and commissioning large, complex projects in the areas
of transportation infrastructure, power transmission
and distribution, thermal / hydel / solar/ nuclear power
plants, green hydrogen, and derivatives, water and
irrigation infrastructure, buildings and factories, oil and
gas facilities, and metals and mining projects.
Strategy Formulation
In this scenario, the themes to watch out for in the medium
term would be a possible rearrangement of the global supply
chain, consequent shift in export hubs, establishment of a
'new world order' and the gradual shift from globalisation
to localisation.
There are no easy policy choices in current times.
Governments and Central Banks across the world continue
to grapple with the prospect of stagflation, as low economic
output and supply-side led inflation continues to linger. This is
getting further aggravated with the resurgence of COVID-19
infections in some major economies, leading to lockdowns
and thereby delaying the resumption of normalcy.
The global economy witnessed swift recovery amidst continued
progress with vaccination efforts, supportive macroeconomic
policies in the major economies and favourable financial
conditions. However, the global environment significantly
worsened in the latter half of the financial year with the
unfavourable geopolitical situation, adversely impacting food
and energy prices, and supply chain disruption.
Global Economy
Statements
LARSEN & TOUBRO
Financial
Management
Integrated Statutory
Discussion and Analysis Report
Reports
Corporate
Overview
Business Model and Strategy
Coking coal - Buy
Hi-Tech Manufacturing
Services
Safe, fast, affordable and environment
friendly solutions for movement of
people and goods
Mobility Growth
congestion and call for better solutions
leading to various challenges e.g.
Increasing population pressures in cities
Safe and Smart cities (SWC)
High-capacity utility networks
(PT&D, WET)
Underground multi-level
car parks (Geo)
High-rise buildings (B&F)
Hi-Tech Manufacturing focuses on custom-built
products catering to process industries, material
handling equipment, electrolysers and advanced cell
chemistry batteries, construction machinery & mining
equipment, industrial valves and defence engineering
including shipbuilding.
Urbanisation Boom
Statutory Financial
Reports
Statements
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
20
While the Group has also undertaken major development projects such as the Hyderabad Metro, toll-road operations (through L&T
Infrastructure Development Projects Limited) and Nabha Power in the past, the focus going forward would be to unlock the value
embedded in these investments and stay asset-light.
The Services businesses cater to sectors of IT (through
LTI and Mindtree), Technology Services (through LTTS,
Smart World & Communication), Real Estate (through
L&T Realty) and Financial Services (through LTFHL), B2B
E-commerce (through L&T SuFin), Skilling & Assessment
(through L&T EduTech) and Cloud Services (through
Data Centers).
Our businesses and offerings are closely linked to global megatrends
Being a diversified conglomerate, the Company portfolio
itself offsets the slowdown in some sectors with growth in
other sectors.
7
100.00
Legal, Taxation, Finance and Risk teams are involved in vetting
the proposal at the bid stage. The Company maintains a strong
documentation and follow up with clients / sub-contractors/
vendors for any claim that is submitted.
The majority of risks are identified during the Prebid stage and
appropriate mitigation strategies are developed.
These identified risks are monitored at regular intervals for
resolution / mitigation.
The Company implemented a number of safety measures like
vaccination camps for staff and labour, enforcing safe distancing
norms etc. to mitigate the effects of the COVID-19 pandemic.
Credit worthiness of counterparties is being monitored regularly.
The Chief Information Security Officer of the Company, under
the guidance of the Risk Management Committee, oversees
the implementation of strong enterprise-wide cybersecurity
practices. These practices are grouped into people, processes
and technology control areas under a company-wide Cyber
Security Assurance Framework. The maturity of security
controls is continually being measured to maintain them at
desired benchmarks.
The Company adheres to all environmental and safety
compliances including ISO 14001 and ISO 45001. Occupational
hazards and adherence to environmental management plan
are carefully monitored at all project sites and manufacturing
locations. Assessment of high precipitation/flooding periods
is done at bidding stage for construction projects and same
is factored in project execution plan to avoid heavy or at-risk
work during those periods. Monsoon preparedness plans
are a standard requirement now for all projects and cover
plans for protection of equipment (covering, tying down
or other suitable arrangements), backup for power/fuel,
human safety and plans for restoring normal operations e.g.
dewatering arrangements. For dealing with periods of extreme
temperature, operations are adjusted to start earlier in the day
and restart after taking a mid-day break. To de-risk movement
of equipment in difficult conditions, appropriate arrangements
(route assessment, ground reinforcement, special support team
etc.) are made in advance. Initial Risk assessment and regular
risk reviews aim to anticipate impact of climate risks and devise
solutions or build contingencies to handle them accordingly.
26
Corporate
Overview
Management
Integrated Statutory Financial
Reports
Statements
Discussion and Analysis Report
LARSEN & TOUBRO
The Risk Management processes are enabled through an
ERM system that facilitates monitoring risks across projects in
various geographies of operation, provides a risk-weighted
portfolio view of businesses and shares learnings across the
organisation. An integrated Knowledge Centre Portal is also
available that provides a platform for assessment of financials
of counterparty, geo-political and macro risks to support
informed and fact-based decision-making.
The Company emphasises on continuous learning and has
taken initiatives to strengthen its processes. An e-Learning
module of ERM is in place for employees to get acquainted with
Risk Management processes and manage risks effectively and
responsibly. Periodic training workshops on Risk Management
are organised across the Company to spread awareness.
The Enterprise Risk Management Framework is continuously
reviewed and benchmarked with industry best practices.
FINANCIAL RISKS
Foreign Exchange and Commodity Price Risks
The businesses of the Company are exposed to fluctuations
in foreign exchange rates and commodity prices. Additionally,
it has exposures to foreign currency denominated financial
assets and liabilities. With the increasing tendency to access
sanctions to combat geo-political issues, there have been
reports of attempts to develop alternate payment systems to
support trade and capital flows. The rise of cryptocurrency
may pose additional challenges in this regard.
The Group has an evolved policy for foreign exchange
risk management, with separate policies for project and
manufacturing business and IT&TS business. With respect
to project and manufacturing portfolio, the currency risks
are evaluated from the tendering stage and are assessed for
pass-through arrangements in contracts, coverage by way
of natural hedge and the balance appropriately hedged. The
Company also proactively monitors depeg risk in the GCC.
The Company relies on strong internal processes,
back-to-back arrangements with vendors/subcontractors,
project and business level working capital monitoring policies,
and pre-bid reviews as a risk mitigation strategy.
Opportunities like Green Hydrogen, Clean Energy Technology,
and Offshore Wind have been identified as new growth avenues.
The Company views the transition to Green Energy as
an opportunity.
The Company is committed to Energy Transition & Sustainability
goals by setting targets to become Water neutral by 2035 and
Carbon neutral by 2040. Its ESG roadmap is aligned with the
5-year strategic plan - 'Lakshya 2026' with a commitment to
climate leadership, water stewardship, circular economy, green
supply chain, biodiversity, and green offerings.
The Company is also foraying into new geographies and
new businesses.
25
Integrated Annual Report 2021-22
Energy Transition
Inequitable Terms
of Trade
Execution
Challenges
Cyber Security
Climate Risk
There is a renewed focus on Energy Transition across
the world, with most of the Governments supporting
Climate Action Plan. This transition involves risks in the
form of switching to a new business model.
Stakeholder activism on ESG has increased over
the years demanding that corporations pursue
sustainable business models.
The financial risks involving commodity prices are
managed through price variation clauses embedded in the
contracts, hedges in financial markets and pass-through
price arrangements. In the case of contracts with price
variation clauses, the Company runs a basis risk in terms of
reimbursement tied to various price indices versus actual
commodity prices. During financial year 2021-22, commodity
prices had remained elevated, which is expected to continue
in the financial year 2022-23, driven by supply constraints
which have been further accentuated by geopolitical events.
The Company partners with multiple stakeholders in
executing projects and the terms agreed upon with these
parties have become more stringent over the years.
Joint & several liabilities, long defects liability period,
cost overruns, back-ended payment structure, working
capital challenges, and claim management challenges
will influence the performance and cash flows.
There have been additional challenges due to pandemic
like supply chain disruptions, scarcity of raw materials,
inflation, counter party risk, etc.
Some of the businesses like Financial Services,
Hyderabad Metro, Realty were affected in varying
degrees due to the pandemic.
The Company is undergoing a digital transformation,
and cybersecurity has become a key concern for
the continuity of business. Vulnerabilities like
targeted attacks, ransomware threats, and phishing
have enhanced the importance of protecting the
information technology infrastructure and data of
the Company.
The world has seen high amount of climate variability
and extreme weather events over the years due to
global warming. The Company's primary operations
in the construction and engineering sector may be
impacted by climate change. Some of the major
concerns include:
(i) The weather of a location cannot be predicted
accurately based on the meteorological data.
(ii) Climate change is a risk multiplier and has also
enhanced the instances of natural calamities, which
cause problems in site operations, logistics of
equipment/materials and safety of resources.
(iii) Extremely high daytime temperatures have a negative
impact on health and safety of construction workers
and impact productivity.
(iv) High precipitation or high flooding of rivers pose
significant risk to operations and movement of plant
and machinery.
(v) Extreme weather events cause significant disruptions
in operations and supply chain and thereby have a
direct impact on the costs.
The Company faces inherent risks throughout the
execution phase of the project. Project challenges
include employee / workmen mobilisation, adverse
geological surprises, unavailability of work front, land
acquisition and Right-of-Way (ROW), delay in approval
and clearances, visa issues, etc.
For disclosure of commodity exposures as required under
clause 9(n) of Part C of Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
in the format specified vide SEBI Circular dated
15th November, 2018 is given below:
% of such exposure hedged through
commodity derivative
Sr No.
80
3,108
100.00
100.00
4
Copper - Buy
1,670
22,728
68.48
Zinc - Buy
68.48
Copper - Sell
801
10,801
100.00
100.00
6
Lead - Buy
104
6,045
5
100.00
3
52.81
Commodity Name
Exposure towards the
particular commodity
(crore)
Exposure in Quantity
terms towards
the particular
commodity (Tn)
Domestic market
International market
Total
OTC Exchange
52.81
OTC Exchange
Aluminium - Buy
1,191
55,723
50.11
50.11
2
Aluminium - Sell
372
14,496
1
Green buildings (B&F)
Mr. Narayanan Kumar
298
Name of Director
The following is the composition of the Board of Directors as on 31st March 2022. Their attendance at the Board
Meetings during the year and at the last Annual General Meeting is as under:
The Minutes of the proceedings of the Meetings of the Board of Directors are noted and the draft minutes are
circulated amongst the Members of the Board for their perusal. Comments, if any, received from the Directors are
also incorporated in the Minutes, in consultation with the Chairman. The Minutes are approved and entered in the
Minutes book within 30 days of the Board meeting. Thereafter, the Minutes are signed and dated by the Chairman
of the Board at the next meeting.
The Company Secretary prepares the agenda and the explanatory notes, in consultation with the Group Chairman /
Chief Executive Officer & Managing Director and circulates the same in advance to the Directors. Every Director
is free to suggest inclusion of items on the agenda. The Board meets at least once every quarter, inter alia, to
review the quarterly results. Additional meetings are held, whenever necessary. The meetings were conducted
physically/through video conference during the year. Presentations are made on business operations to the Board by
Independent Companies / Business Units. Senior management personnel are invited to provide additional inputs for
the items being discussed by the Board of Directors as and when necessary. The respective Chairperson of the Board
Committees apprise the Board Members of the important issues and discussions in the Committee Meetings. Minutes
of Committee meetings are also circulated to the Board.
The Independent Directors met on 8th May 2021, 22nd May 2021 and 20th March 2022 to discuss, inter alia,
the performance evaluation of the Board as a whole and assess the quality, quantity and timeliness of flow of
information between the management and the Board of Directors that is necessary for the Board to effectively and
reasonably perform their duties.
Annexure to the Board Report
294
Integrated Annual Report 2021-22
Mr. A. M. Naik
293
b. Meetings of the Board:
The Company's policy is to have an appropriate mix of Executive, Non-Executive and Independent Directors. As
on 31st March 2022, the Board comprised the Group Chairman, the Chief Executive Officer & Managing Director,
7 Executive Directors, 1 Non-Executive Director (representing a financial institution) and 7 Independent Directors,
including one Independent Woman Director. The composition of the Board, as on 31st March 2022, is in conformity
with the provisions of the Companies Act, 2013 and Regulation 17 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 ('SEBI LODR Regulations').
Composition of the Board:
a.
BOARD OF DIRECTORS
As a part of Lakshya 2016, the Company had decided to have Hybrid Holdco Structure. Accordingly, a number
of 'Independent Companies' (ICs) were created, each with their own quasi-board comprising 2 to 3 Independent
Members akin to Independent Directors. During the process of evolving Lakshya 2026, the structure was reviewed
and it was decided to continue with the IC structure.
g. Independent Company Board (IC Board):
The Non-Executive Directors / Independent Directors play a critical role in enhancing balance to the Board processes
with their independent judgment on issues of strategy, performance, resources, standards of conduct, safety, etc.,
besides providing the Board with valuable inputs.
The Meetings of the Board are generally held at the Registered Office of the Company at L&T House, Ballard Estate,
Mumbai 400 001 and whenever necessary, in locations, where the Company operates. However, in view of the
COVID 19 pandemic and the restrictions on movement imposed by the government authorities, during the initial
part of FY 2022, Board Meetings were held through video conferencing. The Meetings of the Board have been held
at regular intervals with a time gap of not more than 120 days between two consecutive Meetings. During the year
under review, 8 meetings were held on 14th May 2021, 26th July 2021, 7th September 2021, 27th October 2021,
28th January 2022, 22nd March 2022, 23rd March 2022 and 24th March 2022.
Mr. S. N. Subrahmanyan
GC
CEO & MD
Mr. Adil Zainulbhai
Mr. Vikram Singh Mehta
Mr. M. Damodaran
ID
Mr. M. M. Chitale
ED
Mr. T. Madhava Das
ED
Mr. S. V. Desai
ED
Mr. Subramanian Sarma
ED
Mr. J. D. Patil
ED
Mr. M. V. Satish
ED
Mr. D. K. Sen
ED
Mr. R. Shankar Raman
Non-Executive Directors (NED)/ Independent Directors:
Mr. Sanjeev Aga
The Executive Directors, as members of the Board, along with the Senior Management Personnel in the Executive
Committee, contribute to the strategic management of the Company's businesses within Board approved direction
and framework. They assume overall responsibility for strategic management of business and corporate functions
including its governance processes and top management effectiveness.
The CEO & MD is fully accountable to the Board for the Company's business development, operational excellence,
business results, leadership development and other related responsibilities.
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
292
Review of major order prospects (Standalone/ Group) / "Integrated offerings"
The ECom provides a companywide operations review and plays a key role in strengthening linkages between the ICs
and the Company's Board, as well as in rapidly realizing inter-IC synergies. In addition, the ECom deliberates upon
strategic and tactical issues that cut across ICs and Corporate. The agenda includes:
Statutory Financial
Reports
Executive Committee (ECom):
C.
b. The Group Chairman (GC):
The Directors of the Company are in a fiduciary position, empowered to oversee the management functions with a
view to ensuring its effectiveness and enhancement of shareholder value. The Board also provides strategic direction,
reviews and approves management's business objectives, plans and oversees risk management.
a. Board of Directors (the Board):
D. ROLES OF VARIOUS CONSTITUENTS OF CORPORATE GOVERNANCE IN THE COMPANY
The four-tier governance structure, besides ensuring greater management accountability and credibility, facilitates
increased autonomy to the businesses, performance discipline and development of business leaders, leading to increased
public confidence.
(iv) Operational Management - by the Business Unit (BU) Heads.
Company (IC) (not legal entities) comprising of representatives from the Company's Board, Senior Executives from the
IC and independent members.
The GC is the Chairman of the Board. His primary role is to provide leadership to the Board and guidance and
mentorship to the CEO & MD and Executive Directors for realizing the approved strategic plan and business
objectives. He presides over the Board and the Shareholders' meetings.
Statements
LARSEN & TOUBRO
Review of consolidated financials including working capital, cash flow, capital structure, etc.
The Chief Executive Officer and Managing Director (CEO & MD):
Sharing of best practices, etc.
f.
e.
d.
E.
Strategic plans and business portfolio reviews
•
•
Approval of common policies
iv. Digitalization and Analytics initiatives
iii. HR Update/ Talent Management / Service contract extensions for senior management personnel / Leadership
development and succession planning
IC synergies
ii.
i.
International business expansion
Review and discuss strategic issues which impact the entire organization, viz.,
• Review of Revenue, Capital & Manpower Budget and performance thereagainst
Review of Monthly / Quarterly/Yearly financial performance
Executive Directors (ED) / Senior Management Personnel:
ID
ID
ID
Yes
8
Yes
8
Yes
8
Yes
8
8
Yes
Yes
8
Yes
7
Yes
8
Yes
8
8
Yes
Group Chairman
Meetings held during the year are expressed as number of meetings eligible to attend.
Note 1: Representing equity interest of Life Insurance Corporation of India.
GC
No. of other
company
Directorships
As on 31st March 2022, the number of other directorships and the number of positions held as Member/Chairperson
of Committees of the Board of Directors along with the names of the listed entities (whose equity shares are listed)
wherein the Director holds directorships are as follows:
No. of
Committee
Membership
Name of Director
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
None of the Directors hold the office of Director in more than the permissible number of companies under the
Companies Act, 2013 or Regulation 17A of the SEBI LODR Regulations.
2.
None of the above Directors are related inter-se.
1.
ID Independent Director
-
CEO & MD - Chief Executive Officer & Managing Director
NED Non-Executive Director
ED - Executive Director
Yes
8
Yes
8
∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞
8
8
attended
AGM
Attendance at last
No. of Board
Meetings
No. of Board
Meetings held
during the year
Category
8
ID
Mrs. Preetha Reddy
8
NED
Mr. Hemant Bhargava (Note 1)
8
ID
Mr. Narayanan Kumar
ID
8
(iii) Strategy and Operational Management – by the Independent Company Boards of each Independent
5
8
Yes
8
Yes
Yes
∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞ ∞
8
8
8
8
8
8
8
8
8
8
8
8
Yes
7
Yes
(ii) Executive Management – by the Executive Committee (ECom) comprising of the Chief Executive Officer and
Managing Director, all Executive Directors and a few senior leaders.
(i) Strategic Supervision - by the Board of Directors comprising the Executive, Non-Executive and Independent
Directors.
The Company has four tiers of Corporate Governance structure, viz.:
Developed SMS alert (Digital initiative) for
monitoring the pressure at fire hydrant system.
Development of OTR Cured tyre Handling system
with Trimming and Inspection Machine.
Implemented Antivibration pad in power press
machine to reduce the vibration and noise thereby
reducing noise pollution.
Introduction of Higher striping force BCM for
65.5" MTCP CEAT.
Developed 56" MTCP with rope loader, parallel
unloader and front bead lift arm developed for
Petlas.
Memorandum of Understanding entered with a
Technology partner for electrolyser manufacturing.
Development of 2nd Generation PCR HTCP and
3rd Generation PCR HTCP with Hollow Squeeze
Cylinder and Ribbed construction.
Partnered with IIT-B to jointly pursue research
and development work in the Green Hydrogen
value chain and development of next generation
technologies.
Adoption of advanced pneumatic valves which
can control flow and pressure for lube spraying
operation to automatically control spray width,
flow and atomization.
•
Adopted HCL wet scrubber arrangement for fresh
acid storage tank to remove acid fumes in the
atmosphere.
•
•
Annexure to the Board Report
290
Integrated Annual Report 2021-22
289
(i) Efforts made towards technology absorption:
Online barcode reading system installed to
automatically select recipes for GT Lube Spraying.
Establishment of in-house expertise in areas such
as Cathodic Protection (CP) system design and
implementation.
[B] TECHNOLOGY ABSORPTION:
The measures taken have resulted in savings in cost of
production, power consumption and processing time at all
locations.
•
Introduction of LiDAR based Pre-bid engineering,
survey and integration with BIM, laying of Bentley
Rail Track and development of Open Rail Designer
have improved efficiency.
Adoption of concrete mix design with GGBS
(Ground Granulated Blast-furnace Slag) and Flyash
upto the maximum limit and thereby reducing the
cement consumption in order to reduce further
carbon emission.
Indigenously designed the FSLM equipment of
1100MT Capacity.
Development of Unmanned Surface Vessel
composites and other Aerospace manufacturing
technologies.
Development of metal additive, advanced
Developed Satellite Launch Vehicle ToT absorption.
and modular clamping arrangement.
Designed and developed universal 3D base plate
Developed and implemented automated load
testing system for Sarvatra bridge.
Deployed pull off adhesive tester, proactive
inspection module and stud wielding application.
Developed and implemented special purpose
machine for shell T-frame twin head SAW and
web flange twin head Gas Metal Arc Welding.
Deployed portable VR facility at the desktop level
for carrying out regular review of 3D models at
working level.
•
•
• Developed skid loading optimization for
monitoring the progress of Hull Fabrication and
Hull Block Turn over time.
Deployed digital library module with elastic search
for capturing technical and commercial details of
various equipment.
Introduced Robotic Process Automation (RPA)
to automate the repeated and long lead time in
Design, IT, Finance and Subcontract processes.
Implemented Infor Operating Services (IOS) in
Enterprise Resource Planning.
Designed P&M IoT and Workmen Management
system to improve the productivity and minimise
idleness.
•
•
Designed RebarPro that provides end-to-end
tracking of rebar from store to site after
fabrication which enables minimum wastage,
saves time and accelerates process efficiency.
Designed ConPro for enabling end-to-end tracking
of concrete supply chain across project sites by
using QR codes.
Installed express feeder uninterrupted power
supply at AIT plant.
Replaced HVAC pump with efficient monoblock
pump.
Installed VFD panel in place of ELGi compressor.
Replaced existing submersible pumps with
hydropnuematic pumps.
Usage of Inverter based welding machines instead
of generator-based welding machines.
Installation of Variable Voltage Frequency Drive
(VVFDs) in gantry cranes functional motors to
reduce power consumption.
Usage of LED fixtures in place of CFL and FTL
Fixtures and Installation of daytime timers.
•
•
•
•
•
(i) Steps taken or impact on conservation of energy:
Retrofitting diesel compressor to electrical based
compressor.
[A] CONSERVATION OF ENERGY:
section 134(3)(m) read with rule 8(3) of the Companies
(Accounts) Rules, 2014.
Information as required to be given under
Annexure 'A' to the Board Report
LARSEN & TOUBRO
Financial
Statements
Integrated Statutory
Report
Reports
Discussion and Analysis
Management
Corporate
Overview
Improved efficiency through implementation of
Flux-cored Arc Welding-Gas Shielded (FCAW-GS)
for automation and saving energy.
for ISR, ASW and MCM operations, close-in
weapon system, fire control radar for air defence
application.
Replacing existing Split AC units with inverter
based energy efficient units.
Power generation through Solar Roof top PV
installation and utilization of solar lights for
lighting around compound wall in factories.
Existing metal halide lamps in high mast replaced
with 300W LED fittings.
Usage of Thyristor controlled welding machines
for fabrication and energy saved 176,010 kwh.
•
•
•
(iii) Capital investment on energy conservation
equipments:
Alternate curing solution has been implemented
for all the vertical structures for conserving water.
Installed carbon offsetting program through
production of solar and wind power which
compensated for non-renewable energy
consumption and in-turn reduction in carbon
footprint.
Alternate usage of M-sand instead of Natural
Sand at all project sites has helped in conserving
the natural resources.
Solar Power Plant have been installed for
generation of 1747 KW solar electricity that is
utilized to power batching plants and project
camps.
Usage of PNG, cleaner energy source, at DIAL
project to power the Hot Mix Plants.
Usage of Green Hydrogen as an alternative to
natural gas in refineries and fertilizers.
•
(ii) Steps taken by the Company for utilizing
alternate sources of energy:
Usage of light pipes, transparent sheets and
noorikool daylighting systems in shop floors for
effective utilization of natural light for ventilation.
Installation of programmable timer for Air
Handling Unit (AHU) at dust free chamber.
Installation of transparent sheets and turbo vents
in Light Fabrication Shop in place of overhead
lights and exhaust fans to provide sufficient
illumination and ventilation.
Adoption of Integrated Vehicle Management
System has led to fuel saving.
Digital tools used to track, trace and improve the
working of systems and to achieve the Company's
ESG goals of Carbon and Water Neutrality.
Utilization of Chiller for Heating Ventilation
and Air Conditioning (HVAC) System - Campus
Facility Management Division (FMD) initiated and
controlled the chiller running hours for HVAC
during holidays and extended working hours.
Replacing existing Pumps (Water, Sewage and
HVAC) with energy efficient pumps.
No. of Committee
Chairmanship
Development of multi-hierarchy command and
control systems for integrated engagement across
forces.
Optimum selection, verification and
characterization of materials for critical
applications.
[C] FOREIGN EXCHANGE EARNINGS AND OUTGO:
0.08%
Total R&D expenditure as a percentage of total
turnover
87.99
83.73
4.26
2021-22
crore
crore
(iv) Expenditure incurred on Research and Development:
f)
Methodology
Construction
2021-22 Fully absorbed
Full Span
e)
(PoE) based devices
Fully absorbed
Straddle carrier 2021-22 Fully absorbed
2021-22
Foreign Exchange earned
11,721.13
C. THE GOVERNANCE STRUCTURE
The Company's essential character revolves around values based on transparency, integrity, professionalism and
accountability. At the highest level, the Company continuously endeavors to improve upon these aspects on an ongoing
basis and adopts innovative approaches for leveraging resources, converting opportunities into achievements through
proper empowerment and motivation, fostering a healthy growth and development of human resources to take the
Company forward.
COMPANY'S CORPORATE GOVERNANCE PHILOSOPHY
The Company believes that sound Corporate Governance is critical for enhancing and retaining stakeholder trust and
always seeks to ensure that its performance goals are met accordingly. The Company has established systems and
procedures to ensure that its Board of Directors is well informed and well equipped to fulfill its overall responsibilities and
to provide management with the strategic direction needed to create long term shareholders value. The Company had
adopted many ethical and transparent governance practices even before they were mandated by law. The Company has
always worked towards building trust with shareholders, employees, customers, suppliers and other stakeholders based
on the principles of good Corporate Governance.
Corporate Governance enables an organization to perform efficiently and ethically, generate long term wealth and create
value for all its stakeholders.
Corporate Governance is a set of principles, processes and systems which govern a company. The elements of Corporate
Governance are independence, transparency, accountability, responsibility, compliance, ethics, values and trust.
B.
A. CORPORATE GOVERNANCE
Annexure 'B' to the Board Report
Annexure to the Board Report
Integrated Annual Report 2021-22
291
Total
10,383.99
Foreign Exchange used
11,806.60
Total
85.47
Foreign Exchange saved / deemed exports
Power over Ethernet 2020-21
d)
Design
Capital
Recurring
Information Right Management solution has
.
•
.
•
• Digital library module has helped reduce lead time
during Request for Proposal/bid submission.
Robotic Process Automation has helped increase
manpower productivity and reduction in man
hours spent across various business activities.
plant equipment through analysis of degradation
mechanisms such as, Methanol Stress Corrosion
Cracking, Hydrogen Embrittlement, Chloride
Stress Corrosion Cracking, Sulphuric Acid
Corrosion and Microbial Corrosion attack.
Advanced troubleshooting of critical process
Establishment of in-house capability for
specialized engineering analysis, such as modeling
and process simulation, Computational Fluid
Dynamics (CFD), transient thermal analysis,
Radiation and dispersion analysis and advanced
stress analysis by Finite Element Method (FEM) for
achieving self-sufficiency.
Implemented suitable preservation/corrosion
protection techniques to achieve successful longer
life and adequate performance.
•
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
helped secure documents and provide data centric
security across various stages of document life
cycle.
(ii) Benefits derived like product improvement,
cost reduction, product development or import
substitution:
Stud wielding application has helped achieve
higher productivity for block alignment and
erection joints, electrical earthing points, cable
trays and foundation bolts. It has also helped
reduce overall wielding time and reduce heat
input to avoid damage to internal structures and
equipment.
helped setup in-house quality check to establish
soundness of paint coating system without
depending on any external agency.
Direct Current (DC) 2019-20 Fully absorbed
Traction System
c)
System
2019-20 Fully absorbed
Electrical Storage
b)
2019-20 Fully absorbed
Verse Equipment
a)
Year of
Import
No. Imported
Technology
S.
Status of absorption
and reasons for non-
absorption, if any
(iii) Information regarding technology imported
during the last 3 years:
Cost saving by eliminating use of welded
attachments and non-value added activities like
grinding, touchup, etc.
Quick clamping of assemblies led to clamping
time reduction.
minimize design errors and enhancing the
ergonomics of design.
Deployment of portable VR facility has helped
Deployment of pull off adhesive tester has
Names of other Listed
entities where he holds
Directorship
• Developed calibration module, chatbot based
helpdesk portal, Information Right Management
(IRM) solution.
Mr. A. M. Naik
Mr. M. M. Chitale
10.
Mr. T. Madhava Das
9.
Mr. S. V. Desai
8.
Mr. Subramanian Sarma
7.
X
Mr. J. D. Patil
Mr. M. V. Satish
5.
Mr. D. K. Sen
4.
Mr. R. Shankar Raman
3.
Mr. S. N. Subrahmanyan
2.
6.
11.
Mr. Subodh Bhargava*
X
✗
X
✓
✓
X
✓
areas
Accounts/
Audit /Risk
Management
Exposure
International
Experience/
Global
Expertise/
Experience in
Finance and
Governance
including legal
compliance
✓
Experience and
Exposure in
policy shaping
and industry
advocacy
X
Mr. M. Damodaran
12.
Mr. A. M. Naik
1.
experience
No
Industry knowledge
and experience
5
4
3
2
Leadership
1
Sr. No
Experience/
Expertise/Attribute
The matrix setting out the skills/expertise/competence of the Board of Directors, as identified by the Board of
Directors in the context of the Company's businesses, is given below:
LARSEN & TOUBRO
Board Skill Matrix:
e.
Statements
Reports
Statutory Financial
Integrated
Report
Discussion and Analysis
Experience and
ง
Exposure in policy
shaping and industry
advocacy
including legal
compliance
Industry
knowledge and
Leadership
Name of the Director
Sr.
Skill Attribute
The mapping of the Skill Matrix for FY 2022 for all Directors is as follows:
Ability to have access and understand business models of global corporations, relate to the developments with respect
to leading global corporations and assist the Company to adapt to the local environment, understand the geo political
dynamics and its relations to the Company's strategies and business prospects and have a network of contacts in global
corporations and industry worldwide.
Global Experience /
International
Exposure
6
Ability to understand financial policies, accounting statements and disclosure practices and contribute to the financial/
risk management policies/ practices of the Company across its business lines and geography of operations.
Commitment, belief and experience in setting Corporate Governance practices to support the Company's robust legal
compliance systems and governance policies/practices.
Should possess ability to develop professional relationship with the Policy makers and Regulators for contributing to the
shaping of Government policies in the areas of Company business.
Should possess domain knowledge in businesses in which the Company participates viz. Infrastructure, Power, Heavy
Engineering, Defence Engineering, Hydrocarbon, Financial Services, Information Technology and Technology Services.
Must have the ability to leverage the developments in the areas of engineering and technology and other areas as
appropriate for betterment of Company's business.
Ability to envision the future and prescribe a strategic goal for the Company, help the Company to identify possible
road maps, inspire and motivate the strategy, approach, processes and other such key deliverables and mentor the
leadership team to channelize its energy/efforts in appropriate direction. Be a thought leader for the Company and be
a role model in good governance and ethical conduct of business, while encouraging the organization to maximize
shareholder value. Should have had hands on experience of leading an entity at the highest level of management
practices.
Comments
Risk Management
areas
Accounts / Audit /
in Finance and
Expertise/Experience
Governance
Management
X
✓
Note: Absence of any skill does not necessarily mean that the Director does not possess that skill.
* ceased to be a director w.e.f. 29th March 2022.
X
18. Mrs. Preetha Reddy
Mr. Hemant Bhargava
17.
16.
Mr. Sanjeev Aga
F.
15.
14.
Mr. Vikram Singh Mehta
13.
✓
✗
✗
X
✓
Mr. Adil Zainulbhai
BOARD COMMITTEES
The Board currently has 5 Committees: 1) Audit
Committee, 2) Nomination and Remuneration
Committee, 3) Stakeholders' Relationship Committee,
4) Corporate Social Responsibility Committee and 5)
Board Risk Management Committee. The terms of
reference of the Board Committees are in compliance
with the provisions of the Companies Act, 2013,
SEBI LODR Regulations and are also reviewed by the
Board from time to time. The Board is responsible for
constituting, assigning and co-opting the members
of the Committees. The meetings of each Board
Committee are convened by the Company Secretary
in consultation with the respective Committee
Chairperson. The role and composition of these
Committees including the number of meetings held
during the financial year and the related attendance
are provided in the subsequent paragraphs.
1) Audit Committee
The Company constituted the Audit Committee in
1986, well before it was made mandatory by law.
Category of Directorship
Disclosure of any related party
transactions
6.
5. Compliance with listing and other
legal requirements relating to
financial statements
4. Significant adjustments made in the
financial statements arising out of
audit findings
3. Major accounting entries involving
estimates based on the exercise of
judgment by management
2. Changes, if any, in accounting
policies and practices and reasons
for the same
in the Directors' Responsibility
Statement to be included in the
Board's report in terms of sub-
section (5) of Section 134 of the
Companies Act, 2013
Matters required to be included
1.
Reviewing, with the management, the
annual financial statements and the audit
report before submission to the Board for
approval, with particular reference to:
concern.
Discussion with statutory auditors, before
the audit commences, about the nature
and scope of audit as well as post-audit
discussion to ascertain any area of
Approval of payment to statutory
auditors for any other services rendered
by the statutory auditors.
Recommending to the Board, the
appointment, re-appointment, terms
of appointment and, if required, the
replacement or removal of the statutory
auditor and the fixation of audit fees.
Oversight of the Company's financial
reporting process and the disclosure
of its financial information to ensure
that the financial statement is correct,
sufficient and credible.
The role of the Audit Committee includes the
following:
Terms of reference:
i)
X
✓
X
✓
Leadership
Name of the Director
Sr.
Integrated Annual Report 2021-22
297
✗
✓
X
✓
√
X
√
✗
√
X
✓
X
X
✓
No
✗
Skill Attribute
Experience and
✗
✓
✓
X
✓
X
✓
✓
Exposure
Experience/
International
Global
areas
Accounts/
Audit /Risk
Management
Expertise/
Experience in
Finance and
Governance
including legal
compliance
advocacy
policy shaping
and industry
Exposure in
Industry
knowledge and
experience
Annexure to the Board Report
Corporate
Overview
✓
d. Post-meeting internal communication system:
0
Nil
Nil
0
0
1
Nil
0
Nil
00 - 000
2
4
5
Mr. M. M. Chitale
0
0
Mr. T. Madhava Das
3
Atul Limited
0
Nil
Nil
וט
Mr. Vikram Singh Mehta
Independent Director
Biocon Limited
Independent Director
Hero Motocorp Limited
Independent Director
Chairman and
Interglobe Aviation Limited
2
3
60
Mr. M. Damodaran
Independent Director
Bhageria Industries Limited
Limited
Independent Director
Macrotech Developers
Independent Director
Mr. S. V. Desai
2
Mr. Subramanian Sarma
1
Limited
Non-Executive
Larsen & Toubro Infotech
0
0
6
Mr. S. N. Subrahmanyan
Non-Executive Chairman
Mindtree Limited
Limited
Non-Executive Chairman
L&T Technology Services
Limited
Non-Executive Chairman
Larsen & Toubro Infotech
0
0
The important decisions taken at the Board / Committee meetings are communicated to the concerned
departments / ICs promptly. An Action Taken Report is regularly presented to the Board.
5
Vice-Chairman
6
L&T Technology Services
Limited
Mindtree Limited
Mr. J. D. Patil
1
Mr. M. V. Satish
7
Mr. D. K. Sen
Non-Executive Director
Mindtree Limited
Non-Executive Director
L&T Finance Holdings Limited
Non-Executive Director
Larsen & Toubro Infotech
Limited
0
60
8
Mr. R. Shankar Raman
Non-Executive Chairman
L&T Finance Holdings Limited
Vice-Chairman
Non-Executive
Vice-Chairman
5
Non-Executive
Colgate-Palmolive (India)
0
3
3
Mr. Hemant Bhargava
Independent Director
Nominee Director
Independent Director
Chairman and
Independent Director
Independent Director
Independent Director
Category of Directorship
Entertainment Network
(India) Limited
Take Solutions Limited
Mphasis Limited
entities where he holds
Directorship
Names of other Listed
Annexure to the Board Report
L&T Technology Services
Limited
4
3
7
Mr. Narayanan Kumar
Indus Towers Limited
The Tata Power Company
Limited
No. of Committee
Chairmanship
UGRO Capital Limited
ITC Limited
Independent Director
Developments in respect of human resources/industrial relations
Compliance or Non-compliance of any regulatory, statutory nature or listing requirements and investor service
such as non-payment of dividend, delay in share transfer, etc., if any
1
Any issue, which involves possible public or product liability claims of substantial nature, including any Judgment
or Order, if any, which may have strictures on the conduct of the Company
Any materially relevant default, if any, in financial obligations to and by the Company or substantial
non-payment for goods sold or services rendered, if any
Details of any joint venture, acquisitions of companies or collaboration agreement or sale of investments,
subsidiaries, assets and quarterly report on fatal or serious accidents or dangerous occurrences
Minutes of meetings of Board of Directors, Audit Committee, Nomination and Remuneration Committee,
Stakeholders Relationship Committee, Board Risk Management Committee and Corporate Social Responsibility
Committee
Financing plans of the Company
Quarterly results and results of operations of ICs and business segments
•
Annual revenue budgets and capital expenditure plans
The Board of Directors are provided information relating to the Company, which inter alia includes -
The details of positions held as Member/Chairperson of Committees are disclosed as per Regulation 26 of the
SEBI LODR Regulations which includes only Stakeholders' Relationship Committee and Audit Committee.
Information to the Board:
Whole-time Director
Apollo Hospitals Enterprise
Limited
0
2
9
Mrs. Preetha Reddy
Independent Director
No. of
Committee
Membership
Other Company Directorships includes directorships in all public limited companies and excludes private limited
companies, foreign companies and Section 8 companies.
Name of Director
Investment Limited
Chairman and
Network 18 Media &
Reliance Industries Limited
5
3
7
Mr. Adil Zainulbhai
Independent Director
Jubilant Foodworks Limited
Limited
Independent Director
Mahindra & Mahindra
Independent Director
Apollo Tyres Limited
Independent Director
Independent Director
company
Directorships
HT Media Limited
Cipla Limited
TV18 Broadcast Limited
Limited
295
No. of other
Integrated Annual Report 2021-22
296
Independent Director
Independent Director
Pidilite Industries Limited
Mahindra Holidays & Resorts
India Limited
Independent Director
Chairman and
UFO Moviez India Limited
Chairman and
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Larsen & Toubro Infotech
Limited
2
3
4
Mr. Sanjeev Aga
C.
Reports
Report
Discussion and Analysis
Statutory Financial
Integrated
Provide guidance for the
development of the long-term
Sustainability Plan; and
Corporate
Overview
The Corporate Social Responsibility ("CSR")
Committee has also been entrusted with the
task of reviewing the sustainability initiatives
of the Company.
4) Corporate Social Responsibility Committee:
i) Terms of reference:
The Board has delegated the powers to
approve transfer of shares to Share Transfer
Committee comprising four Senior Executives.
This Committee held 3 meetings during the
year and approved the transfer of shares
lodged with the Company.
Statements
Pursuant to SEBI press release dated 3rd
December 2018 and 27th March 2019,
except in case of transmission or transposition
of securities, requests for effecting transfer of
securities subsequent to 1st April 2019, have
not been processed by the Company.
SEBI vide its circular dated 7th September
2020 had provided a cut-off date of 31st
March 2021 for re-lodgment of transfer
requests which were lodged prior to 31st
March 2019 but rejected/returned due to
deficiency of paperwork. Accordingly, the
Company has accepted such transfer requests
till 31st March 2021 and the said requests
were approved during the year.
* Investor complaints / queries shown outstanding as on 31st March
2022 have been subsequently resolved to the satisfaction of the
investors. The Company repeatedly sends reminders to shareholders
regarding unclaimed shares and dividends. This results in an increase
in the number of queries received.
Management
LARSEN & TOUBRO
Plan
A. Corporate Social Responsibility:
Formulate and recommend to the
Board a Sustainability Policy and
suggest any changes thereto
ii.
iii. Monitor the implementation of the
Sustainability Plan of the Company
from time to time
i.
B. Sustainability:
Identify and recommend to the
Board the CSR projects that will
qualify to be ongoing projects
The terms of reference of the Committee are
as follows:
V.
iii. Recommend the CSR annual budget
to the Board for approval
development of annual CSR Action
ii. Provide guidance for the
the Board a Corporate Social
Responsibility Policy and suggest any
changes thereto
Formulate and recommend to
i.
iv. Monitor the implementation of the
CSR Action Plan of the Company
from time to time; and
5
Received Resolved Pending*
529
During the year, the Company / its Registrar
received the following complaints from
SEBI / Stock Exchanges and queries from
shareholders, which were resolved within the
time frames laid down by SEBI.
iv) Number of Requests / Complaints:
During the year, the Company has resolved
investor grievances expeditiously except for
the cases constrained by disputes or legal
impediments.
Mr. Sivaram Nair Company Secretary is the
Compliance Officer.
# appointed as a member of the Committee w.e.f. May 14, 2021.
appointed as Chairman of the Committee w.e.f. May 14, 2021.
*
Particulars
Complaints:
Meetings held during the year are expressed as number of
meetings eligible to attend.
3
3
3
ii) Composition:
Mr. Hemant Bhargava# Member
3
Mr. Narayanan Kumar* Chairman
531
Opening
Balance
3
7
162
4,369 4,294
Transmission/ 87
Transfer
Demat /
Remat
30
18,729 18,982
SEBI / Stock
283
Dividend
Shareholder Queries:
Exchange
2
96
95
Related
As on 31st March 2022, the CSR Committee
comprised 1 Independent Director and
The terms of reference of the Board Risk
Management Committee are as follows:
iii) Meetings:
No. of
meetings
Status
Name
The attendance of Members at the Meetings
was as follows-
During the year ended 31st March 2022,
2 meetings of the Board Risk Management
Committee were held on 9th June 2021 and
3rd December 2021.
iii) Meetings:
held
As on 31st March 2022, the Board Risk
Management Committee comprised 2
Independent Directors and 1 Executive
Director.
Evaluate risks related to cyber security.
The Company also has an Apex Risk
Management Committee, comprising
Executive Directors, which reviews the
operational risks including client quality,
manpower availability, logistic and other
aspects which impact the Company and the
Group.
Review of the existing Risk Management
Policy, framework and processes,
Risk Management Structure and Risk
Mitigation Systems. Broadly, the key
risks will cover strategic risks of the
Group at the domestic and international
level including sectoral developments,
risk related to market, financial,
geographical, political and reputational
issues, Environment, Social and
Governance (ESG) risks, etc.
i)
5) Board Risk Management Committee:
Terms of reference:
The detailed disclosures of CSR spending
during the year has been given in Annexure
'C' forming part of this Board Report. Please
refer to pages 323 to 352 of this Annual
Report.
All CSR projects have defined goals and
milestones which are tracked as per the
periodicity defined for the project. The
progress is compared with the baseline data
that is gathered before the commencement
of the project. This is carried out through
an onsite evaluation as well as the reports
generated from the project. The indirect
impact that accrue are also factored and
documented in the monthly reporting
process. These are subsequently vetted /
measured during the external Social Audit or
Impact Assessment. The Social Audit/Impact
Assessment report is discussed during the
CSR Committee meetings and it forms a part
of Annexure C to this Board Report.
ii) Composition:
plants and providing them to hospitals across
the Country.
No. of
Meetings
year
Presentations are made regularly to the
Board / NRC / Audit Committee (AC) (minutes
of AC, NRC, SRC, RMC and CSR Committee are
circulated to the Board), where Directors get an
opportunity to interact with senior managers.
Presentations, inter alia, cover business strategies,
management structure, HR policy, management
development and succession planning, quarterly
and annual results, budgets, treasury policy,
review of internal audit, risk management
framework, operations of subsidiaries and
associates, etc.
The internal newsletters of the Company, the
press releases, etc. are circulated to all the
Directors so that they are updated about the
operations of the Company.
Member
a) Directors' Familiarization Program:
The Directors of the Company are updated
on changes/developments in the domestic/
global markets and industry scenario through
presentations made at Board, Committee, IC
meetings and interactions with senior company
personnel. The Directors are also updated about
changes in statutes/legislations and economic
environment, and on matters significantly
affecting the Company, to enable them to take
well informed and timely decisions.
2 2 2
G. OTHER INFORMATION
during the Attended
Members are also requested to refer to
page 282 of the Board Report.
Mr. Subramanian
Sarma
2
2
2
Chairman
Member
Member
Mr. Adil Zainulbhai
Mr. Sanjeev Aga
Meetings held during the year are expressed as number of
meetings eligible to attend.
2 Executive Directors.
Annexure to the Board Report
Integrated Annual Report 2021-22
3
Chairman
Member
Mr. R. Shankar
Mr. M. M. Chitale
the year
held
3
Status
Meetings
No. of
meetings No. of
Name
The Members at the Committee are as
follows-
3 meetings of the CSR Committee were held
on 27th April 2021, 27th September 2021
and 10th March 2022.
During the year ended 31st March 2022,
during Attended
306
3
Raman
305
meetings eligible to attend.
In view of the sustained impact of the
second wave of the COVID -19 pandemic
on the health infrastructure, education
and livelihoods and the acute shortage of
oxygen across the country, the Company
responded by supplementing the health care
system by providing oxygen concentrators,
ventilators and portable X-ray units besides
manufacturing PSA oxygen concentration
Skill development: Enhancing
employability of youth (enhancing
training capacity, improved infrastructure
of skill development centres).
Health: Improvement in access to quality
health care (expanding infrastructure
of health centres, increased number of
people availing quality health care)
Education: To improve access to
education (increased enrollment in pre-
school, children attending neighborhood
schools), improving quality of learning
(better school infrastructure, better
teaching-learning process) and learning
STEM (Science Technology Engineering
and Math) subjects with fun and hands
on experiments
3
Water and Sanitation: For the
availability of safe drinking water and
proper sanitation facilities
iv) CSR Activities and Impact Assessment:
The Company, through its CSR Committee,
is committed to improve the social
infrastructure / fabric of the Country. The
Company's CSR programmes are well-
entrenched, focusing on areas that align
with the global and national matrices of
development: water and sanitation, health,
education and skill-building.
Meetings held during the year are expressed as number of
3
3
Member
Mr. D. K. Sen
The Company is leveraging its countrywide
presence to reduce disparities through
interventions in water and sanitation,
healthcare, education and skill building.
Close interactions with the local community
members have enabled the Company to
identify and address their most pressing needs
and the social interventions for community
development have been specifically aligned.
The Company has launched programs
towards holistic development in the following
areas based on need assessment:
Mr. J. D. Patil
0.04
the year
3
6.03
0.26
1.83
Mr. Subramanian
Mehta
0.55^
3.65
0.44
Mr. Vikram Singh
7.23 11.05
2.29
0.30
1.23
Mr. J. D. Patil
0.11
7.05 11.19
11.70 23.47
0.08
Mr. T. Madhava
0.54
0.40
0.06
0.08
Mr. Sanjeev Aga
Mr. Adil Zainulbhai
8.56 12.55
0.34
1.05
Mr. S. V. Desai
Sarma
0.63
0.51
2.60
1.05
2.30
1.47
13.98 28.62
4.30
7.98
0.41
1.95
Mr. R. Shankar
Raman
0.67
0.06
0.07
Mr. M. M. Chitale
Subrahmanyan
Independent Directors have the freedom to
interact with the Company's Management.
Interactions happen during Board / Committee
3.25 3.00 6.32
0.54
0.37
Mr. Subodh
0.03
Mr. M. V. Satish
0.65
0.52
0.05
0.08
Mr. M. Damodaran
0.08
Bhargava*
2.46
0.28
1.47
Mr. D. K. Sen
0.66
0.55
7.62 11.83
3
0.30
8.40 12.30
Integrated Annual Report 2021-22
303
* held jointly with the Institution he represents.
180
Mrs. Preetha Reddy
90
304
100
1,500
Mr. Narayanan Kumar
Mr. Hemant Bhargava
Mr. Hemant Bhargava
100
150
Mr. Adil Zainulbhai
Mr. Sanjeev Aga
1,327
*
Mr. Vikram Singh Mehta
Annexure to the Board Report
i)
No. of
Meetings
Attended
No. of
meetings
held during
Status
Name
The attendance of Members at the Meetings
was as follows:
During the year ended 31st March 2022,
3 meetings of the Stakeholders' Relationship
Committee were held on 26th July 2021,
1st October 2021 and 28th January 2022.
3) Stakeholders' Relationship Committee:
iii) Meetings:
ii) Composition:
Review of the various measures and
initiatives taken by the Company for
reducing the quantum of unclaimed
dividends and ensuring timely receipt
of dividend warrants/annual reports/
statutory notices by the shareholders of
the company.
Review of measures taken for effective
exercise of voting rights by shareholders.
Review of adherence to the service
standards adopted by the Company in
respect of various services being rendered
by the Registrar and Share Transfer
Agent.
Resolving the grievances of the security
holders of the Company including
complaints related to transfer/
transmission of shares, non-receipt of
annual report, non-receipt of declared
dividends, issue of new/duplicate
certificates, general meetings etc.
The terms of reference of the Stakeholders'
Relationship Committee are as follows:
Terms of reference:
As on 31st March 2022, the Stakeholders'
Relationship Committee comprised 1 Non-
Executive Director, 1 Independent Director
and 1 Executive Director.
2.55
225
No. of Shares
0.23
0.08
Mrs. Preetha Reddy
Bhargava#
0.34
0.25
-
0.01
Das
0.47
0.35
0.04
0.08
Mr. Narayanan
Kumar
0.08
6,26,936
3,568
0.31
appointment of Chief Executive Officer &
Managing Director and other Whole-time
Directors is six months on either side.
Mr. M. Damodaran
Mr. M. M. Chitale
Mr. A. M. Naik
Name
Details of shares and convertible instruments
of the Company held by the Non-Executive
Directors, as on 31st March 2022, are as
follows:
^ Includes commission and sitting fees paid by L&T
Hydrocarbon Engineering Limited (LTHE). LTHE has merged
with the Company.
*Represents perquisite value related to ESOPs exercised
during the year in respect of stock options granted over the
past several years by the Company, Larsen & Toubro Infotech
Limited and L&T Technology Services Limited and includes
tax on ESOPs borne by the Company wherever applicable.
Notice period for termination of
# Payable to the Institution he represents.
* Ceased to be an Independent Director with effect from
29th March 2022 on account of completion of his tenure.
Mr. Hemant
Mr. S. N. Subrahmanyan has exercised
40,000 stock options each of Larsen
& Toubro Infotech Limited and L&T
Technology Services Limited, vested
during the year. Mr. R. Shankar Raman
has exercised 20,000 stock options of
Larsen & Toubro Infotech Limited, vested
during the year. The perquisite amount
Mr. Subramanian Sarma has exercised
25,000 stock options of the Company,
vested during the year. The perquisite
amount on exercise of these options is
considered as a part of his remuneration.
Details of Options granted under
Employee Stock Option Schemes are
provided on the website of the Company
www.larsentoubro.com.
No severance pay is payable on
termination of appointment.
+ others include pension.
Corporate
Overview
Report
Integrated
Discussion and Analysis Report
the year
No. of
meetings No. of
held Meetings
during Attended
Status
Name
The attendance of Members at the Meetings
was as follows:
During the year ended 31st March 2022,
5 meetings of the Nomination and
Remuneration Committee were held on 14th
May 2021, 26th July 2021, 27th October
2021, 28th January 2022 and 22nd March
2022.
iii) Meetings:
As at 31st March 2022, the Committee
comprised 2 Independent Directors and the
Group Chairman.
ii) Composition:
Administration of Employee Stock Option
Scheme (ESOS).
relating to remuneration for the
Directors, Key Managerial Personnel
(KMP) and senior management;
Recommend to the Board a policy,
Carry out evaluation of the Board and
Directors;
of Directors, Board and the Board
Committees;
Formulation of criteria for evaluation
•
LARSEN & TOUBRO
Statements
Reports
Discussion and Analysis
Financial
Statutory
Integrated
Management
Corporate
Overview
Devise a policy on Board diversity;
Formulate criteria for determining
qualifications, positive attributes and
independence of a Director;
5
5
Chairman
5
The remuneration of the Board members
is based on the Company's size and global
presence, its economic and financial position,
industrial trends, compensation paid by the
peer companies, etc. Compensation reflects
each Board member's performance and
accountability. The level of compensation
to Executive Directors is competitive and
matches industry standards.
v) Remuneration Policy:
Compliance.aspx
on the website of the Company
https://investors.larsentoubro.com/Listing-
These certificates have been placed
The Board has taken on record the
declaration and confirmation submitted by
the Independent Directors and after assessing
the veracity of the same, the Board is of the
opinion that the Independent Directors fulfill
the conditions specified in the SEBI LODR
Regulations and are independent of the
management.
Each Independent Director gives a certificate
confirming that they meet the "independence
criteria" as mentioned in Section 149(6) of
the Companies Act, 2013 and SEBI LODR
Regulations.
The Independent Directors satisfy and fulfill
the criteria of independence as provided
under Section 149(6) of the Companies Act,
2013 and all the applicable provisions of the
SEBI LODR Regulations.
While evaluating the suitability of a Director
for re-appointment, besides the above
criteria, the NRC considers Board evaluation
results, attendance and participation in and
contribution to the activities of the Board by
the Director.
wisdom, ability to read and understand
financial statements, commitment to ethical
standards and values of the Company.
While appointing/re-appointing any
Independent Director/Non-Executive Director
on the Board, the NRC considers the criteria
as laid down in the Companies Act, 2013 and
the SEBI LODR Regulations.
While screening, selecting and recommending
to the Board new members, the Committee
ensures that the Board is objective, there is
no conflict of interest, availability of diverse
perspectives, business experience, legal,
financial and other expertise, integrity,
leadership and managerial qualities, practical
iv) Board Membership Criteria:
#Ceased to be Member and Chairman of the Committee with
effect from 29th March 2022.
Recommend to the Board appointment
and removal of such persons;
*Appointed as Chairman of the Committee with effect from 30th
March 2022.
Management
5
5
Member
Mr. Narayanan
4
5
Member
Mr. A. M. Naik
Bhargava#
Mr. Subodh
Mr. Adil Zainulbhai* Chairman
5
Meetings held during the year are expressed as number of
meetings eligible to attend.
The Company pays remuneration to Executive
Directors by way of salary, perquisites and
retirement benefits (fixed components) and
commission (variable component), based on
accordance with the criteria laid down by
the Committee;
Identify persons who are qualified to
become Directors and who may be
The attendance of Members at the Meetings
was as follows:
Annexure to the Board Report
300
Integrated Annual Report 2021-22
299
During the year ended 31st March 2022, 9
meetings of the Audit Committee were held
on 21st April 2021, 13th May 2021, 12th July
2021, 24th July 2021, 26th August 2021,
26th October 2021, 23rd November 2021,
27th January 2022 and 1st March 2022.
iii) Meetings:
As on 31st March 2022, the Audit Committee
comprised four Independent Directors.
ii) Composition:
Carrying out any other function as is
mentioned in the terms of reference of
the Audit Committee.
Monitoring the end use of funds raised
through public offers and related
matters.
Valuation of undertakings or assets of
the Company, wherever it is necessary.
Evaluation of internal financial controls
and risk management systems.
Reviewing the utilization of loans and/or
advances to/investment in the subsidiary
companies exceeding rupees 100 crore or
10% of the asset size of the subsidiary,
whichever is lower including existing
loans advances / investments.
Approval or any subsequent material
modification of transactions of the
Company with related parties.
of operations.
Review the management discussion and
analysis of financial condition and results
Review and monitor the auditor's
independence and performance, and
effectiveness of audit process.
The recommendation for appointment,
remuneration and terms of appointment
of cost auditors of the Company.
Approval of appointment of CFO (i.e.,
the whole-time Finance Director or
any other person heading the finance
function or discharging that function)
after assessing the qualifications,
experience and background, etc. of the
candidate.
To review the functioning of the Whistle
Blower mechanism.
To look into the reasons for
substantial defaults in the payment
to the depositors, debenture holders,
shareholders (in case of non-payment of
declared dividends) and creditors.
Reviewing the findings of any internal
investigations by the internal auditors
into matters where there is suspected
fraud or irregularity or a failure of
internal control systems of a material
nature and reporting the matter to the
Board.
Discussion with internal auditors about
any significant findings and follow up
there on.
Reviewing the adequacy of internal audit
function, if any, including the structure
of the internal audit department, staffing
and seniority of the official heading the
department, reporting structure coverage
and frequency of internal audit.
Reviewing, with the management,
performance of statutory and internal
auditors, and adequacy of the internal
control systems.
Reviewing, with the management, the
quarterly financial statements before
submission to the Board for approval.
Reviewing, with the management,
the statement of uses / application of
funds raised through an issue (public
issue, rights issue, preferential issue,
etc.), the statement of funds utilized
for purposes other than those stated in
the offer document/prospectus/notice
and the report submitted by the agency
monitoring the utilisation of proceeds
of public or rights issue, and making
appropriate recommendations to the
Board to take up steps in this matter, if
any.
0.02
Name
Status
No. of
meetings
held during
No. of
Meetings
i) Terms of reference:
The Nomination and Remuneration Committee
was constituted in 1999 even before it was
mandated by law.
2) Nomination and Remuneration Committee
(NRC)
The CAS team of the Company also covers
the internal audit of all ICs and Subsidiary
Companies. An in-depth audit is conducted
by the team and the major deviations are
highlighted and discussed with the concerned
IC and/or subsidiary company Boards and
significant observations are placed before
the Audit Committee of the Company once
in every Quarter. Some subsidiaries have
engaged external firms for conducting
internal audit.
a project-oriented Company, CAS emphasizes
a risk-based focus areas in project audits.
It encourages its team members to obtain
globally renowned CISA, CIA and CFE
Certification, etc., which will add strength to
the Department. Every year, CAS reviews the
Audit Universe which is an exhaustive list of
businesses, functions, activities and locations
across the Company. The yearly plan, then
details out the scope and coverage of audits
proposed for the year and it is ensured that,
on an average, all operations in the Audit
Universe gets into an audit coverage, at least
once in 2 years. The CAS team has its offices
at Mumbai and Chennai and all overseas
audits are shared between these two teams.
From time to time, the Company's systems
of internal controls covering financial,
operational, compliance, IT applications,
etc. are also reviewed by external experts.
Presentations are made to the Audit
Committee, on the findings of such reviews.
The CAS team while drawing out their
Audit Plan for the year, also plans for some
theme-based audits (Revenue recognition,
HR, Treasury, Insurance etc.) which is
incorporated in the overall audit programme
and also performs certain joint audits with
other corporate departments for specific
functions. The Company being predominantly
The Company has an internal corporate audit
team consisting of Chartered Accountants,
Certified Internal Auditors and Engineers
from various disciplines. Over a period, the
Corporate Audit Services ("CAS") department
has acquired in-depth knowledge about the
Company, its businesses, its systems and
procedures, the knowledge of which is now
institutionalized. The Company's Internal
Audit function is ISO 9001:2015 certified. The
Head of CAS reports to the Audit Committee.
The staff of CAS are rotated periodically to
have a holistic view of the entire operations
and share the findings and good practices.
iv) Internal Audit:
The Chief Executive Officer & Managing
Director, Whole-time Director & Chief
Financial Officer and Head - Corporate
Audit Services are permanent invitees to
the Meetings of the Audit Committee. The
Company Secretary is the Secretary to the
Committee.
Majority of the members of the Audit
Committee are financially literate and have
accounting or related financial management
expertise.
* Inducted as a member of the Committee with effect from
24th March 2022
Meetings held during the year are expressed as number of
meetings eligible to attend.
Member
appointed in senior management in
Mr. Vikram Singh
Mehta*
9
Member
Mr. Sanjeev Aga
9
9
Member
Mr. M. Damodaran
9
9
Chairman
Mr. M. M. Chitale
the year
Attended
9
301
Kumar
302
I hereby declare that all the Board Members and senior
management personnel have affirmed compliance
with the Code of Conduct as adopted by the Board of
Directors and senior management personnel.
S. N. Subrahmanyan
Chief Executive Officer & Managing Director
Date: 12th May 2022
Place: Mumbai
e) General Body Meetings:
The last three Annual General Meetings of the
Company were held as under:
Financial
Year
Date
2020-2021 5th August
2021
Venue
Integrated Annual Report 2021-22
Meeting
was held
through Video
Conferencing/
Other Audio-
Visual Means
Meeting
was held
through Video
Conferencing/
Time
3:30 p.m.
3:30 p.m.
2018-2019
1st August
2019
Other Audio-
Visual Means
Birla Matushri
Sabhagar
3:00 p.m.
The following Special Resolutions were passed by
the members during the past 3 Annual General
Meetings:
Annual General Meeting held on 5th August
2021:
•
To re-appoint Mr. Sanjeev Aga as an
Independent Director of the Company for a
five-year term upto 24th May 2026.
To re-appoint Mr. Narayanan Kumar as an
Independent Director of the Company for a
five-year term upto 26th May 2026.
To approve raising of capital through QIP's
by issue of shares / convertible debentures /
securities upto an amount of USD 600 million
or 4,500 crore.
To the Shareholders of Larsen & Toubro Limited
Sub: Compliance with Code of Conduct
is available on the website of the Company
www.larsentourbo.com. The declaration of the
Chief Executive Officer & Managing Director is
given below:
The Company has laid down a Code of
Conduct for all Board members and senior
management personnel. The Code of Conduct
d) Code of Conduct:
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
meetings, when senior company personnel are
asked to make presentations about performance
of their Independent Company (IC) / Business Unit
to the Board.
Some of the Independent Directors are members
of the IC Board. They share the learnings from
these meetings with the remaining Non-Executive
Directors / Independent Directors formally and
informally. Such interactions also happen when
these Directors meet senior management in IC
meetings and informal gatherings.
As part of the appointment letter issued to
Independent Directors, the Company has stated
that it will facilitate attending seminars/programs/
conferences designed to train Directors to
enhance their role as an Independent Director.
This information is also available on the website of
the Company http://investors.larsentoubro.com/
Listing-Compliance.aspx.
b) Vigil Mechanism / Whistle Blower Policy:
The Company has a Whistle Blower Policy in
place since April 2004. The said policy was
modified in line with the requirements of the
Vigil Mechanism under the Companies Act, 2013
and subsequently in 2018 to include reporting
of instances of leakage of unpublished price
sensitive information as per SEBI (Prohibition of
Insider Trading) (Amendment) Regulations, 2018.
The Company has a Whistle Blower Investigation
Committee (WBIC) to manage complaints from
"Identified" Whistle Blowers. In addition, WBIC
considers "Anonymous" complaints which in
their judgement are serious in nature and require
investigation. The WBIC has five members viz.
Chief Financial Officer, Company Secretary,
Head-Corporate HR, Chief Internal Auditor and
a senior Finance and Accounts person from
business. The WBIC is responsible for end-to-end
management of the investigations, from the time
of receipt of complaints to bringing them to a
logical conclusion, keeping in mind the interest of
the Company. Suitable actions are taken against
employees, wherever investigation confirms the
allegations.
Employees are encouraged to report any acts of
unacceptable behaviour inconsistent with the
Company's Code of Conduct, having an adverse
effect on the Company's financials / image and
instances of sharing of unpublished price sensitive
information. An employee can report any such
conduct in oral or written form. Whistle-blowers
are assured by the management of full protection
from any kind of harassment, retaliation,
victimization, or unfair treatment.
Complaints under the Whistle Blower Policy
are received by the Corporate Audit Services of
the Company from various sources. The Chief
Internal Auditor reviews the same and after
screening the complaint, decides on the further
course of action which will include requesting
the complainant to provide further details,
internal investigation by the CAS department,
investigation by external agencies, wherever
necessary, opportunity to the defendant to
present his/her case, etc. Based on the findings
of the investigation, the Corporate Audit Services
takes the approval of WBIC for the action
recommended by them to be taken.
The WBIC is appraised periodically on the
complaints received, current status, actions
contemplated and closure of the cases. The
WBIC reviews the complaints and their progress.
Queries by the WBIC members are immediately
attended to by CAS and the implementation of
the recommended action are undertaken by the
respective HR/Accounts Departments.
The policy provides for adequate safeguards
against victimisation of persons who blow the
whistle and also provides for direct access to
the Chairperson of the Audit Committee. The
Audit Committee of the Company oversees the
implementation of the Whistle-Blower Policy.
Mr. A. M. Naik
The Audit Committee is periodically briefed about
the various cases received, the status of the
investigation, findings and action taken, if any and
a comprehensive update is provided semi-annually
which is presented and discussed at the Audit
Committee Meeting.
The Company also has a separate Whistle Blower
Policy for its vendors and channel partners. This
policy provides all stakeholders an opportunity
to report genuine concerns about unethical
behaviour, improper practices, misconduct, any
violation of legal or regulatory requirements,
actual or suspected fraud, without fear of
punishment or unfair treatment. The details
of the same are available on the Company's
307
Integrated Annual Report 2021-22
308
Annexure to the Board Report
website https://larsentoubro.com/corporate/
about-lt-group/corporate-policies/.
Also refer to page 287 of the Board Report.
c) Statutory Auditors:
In the case of appointment of new auditors, a
Committee, comprising of the Chairman of the
Audit Committee, the CFO and the Company
Secretary, evaluates various audit firms based
on approved criteria as given herein below. The
audit firms shortlisted, are required to make a
presentation to this Committee. The Committee
considers factors such as compliance with the
legal provisions, number / nature / size and
variation in client base, skill sets available in
the firm both at partner level and staff level,
international experience, systems and processes
followed by the firm, training and development
by the firm to its partners and staff, etc.
during the process of evaluation. Based on
merit and the factors mentioned above, the
Committee finalizes the firm to be appointed and
recommends the same to the Audit Committee.
The Audit Committee reviews the same before
recommending to the Board and shareholders for
approval.
Deloitte Haskins & Sells LLP ("DHS LLP" or
"Firm") is registered with the Institute of
Chartered Accountants of India (Registration
No. 117366W/W-100018). The Firm has around
2,500 professionals and staff. DHS LLP has offices
in Mumbai, Delhi, Kolkata, Chennai, Bangalore,
Ahmedabad, Hyderabad, Coimbatore, Kochi,
Pune, Jamshedpur and Goa. The registered office
of the Firm is One International Center, Tower 3,
32nd Floor, Senapati Bapat Marg, Elphinstone
Road (West), Mumbai - 400013, Maharashtra,
India.
For FY 2022, the total fees paid by the Company
and its subsidiaries, on a consolidated basis, to
Deloitte Haskins & Sells LLP, Statutory Auditor
and all entities in the network firm/network entity
of which the statutory auditors are a part thereof,
for all the services provided by them is 11.13
crore.
Also refer to page 287 of the Board Report.
The Company has zero tolerance towards breach
of Code of Conduct and to this extent, the
Company has built a robust framework around
the Whistle Blower mechanism to actively address
all complaints received.
21.40 61.27
2019-2020 13th August
2020
29.93
Integrated
Management
Corporate
Overview
The organisation also conducts its Core
Development programs with tie-ups with
reputed Indian B-Schools like Narsee Monjee,
NITIE, XLRI, IIM-Bangalore and Kolkata
to provide inputs to its leaders and in the
process build a strong pipeline at every level.
Multiple instances of these programs were
conducted in FY 2022 in the virtual mode.
The organisation also provides managerial
inputs to high potential employees through
its famed 7-Steps leadership development
program which culminates with mentoring
by the Group Chairman and the CEO & MD.
The 7-Steps leadership program is done in
association with global premier B-Schools. In
FY 2022, the step 1 in association with IIM
Ahmedabad and step 3 in association with
Michigan Ross were conducted using a virtual
medium and suitable pedagogy associated
with it.
vi) Training and Succession Planning:
The organisation has a robust process of
building its talent pipeline which helps to feed
in succession planning. The process starts
with the Development Centre (DC) where
high performing employees get assessed on
defined competencies at four different levels
in the organisation. The process identifies
competency gaps which are developed with
specific Individual Development Plans (IDP's)
and competency programs organised for
these levels. This helps the organisation to
have a pool of leaders at every level who are
"Competency Ready". The DC process and
the subsequent development programs were
conducted in virtual mode in FY 2022.
Members are also requested to refer to
page 284 of the Board Report.
participation, assessment of their
independence, etc. It also contains specific
criteria for evaluating the Chairman, CEO
& MD and individual Directors. An external
consultant is engaged to receive the
responses of the Directors and consolidate/
analyze the responses. This is done through a
software platform of the external consultant.
The Chairman of the Company discusses
the performance evaluation results with the
Chairman of the NRC and interacts with all
the Non-Executive Directors and Independent
Directors. The NRC Chairman interacts with
the Executive Directors.
The performance evaluation questionnaire
covers qualitative/ subjective criteria with
respect to the structure, culture, Board
processes and selection, effectiveness
of the Board and Committees, strategic
decision making, functioning of the Board
and Committees, Committee composition,
information availability, remuneration
framework, succession planning, adequate
Performance Evaluation Criteria for
Independent Directors:
Compliance.aspx
As required by the provisions of Regulation
46 of the SEBI LODR Regulations, the criteria
for payment to Independent Directors /
Non-Executive Directors is made available on
the investor page of our corporate website
https://investors.larsentoubro.com/Listing-
In the case of nominees of Financial
Institutions, the commission is paid to the
Financial Institutions.
Discussion and Analysis
The commission to the Independent
Directors / Non-Executive Directors is
distributed broadly on the basis of their
attendance, contribution at the Board, the
Committee meetings, Chairmanship of
Committees and participation in IC meetings.
6.53
7. Qualifications in the draft audit
LARSEN & TOUBRO
Discussion and Analysis Report
Statements
Reports
Financial
Statutory
Integrated
Management
Corporate
Overview
recommendation of the NRC, approval of the
Board and the shareholders. The commission
payable is based on the overall performance
of the Company, performance of the
business / function as well as qualitative
factors. The commission is calculated with
reference to net profits of the Company
in the financial year subject to overall
ceilings stipulated under Section 197 of the
Companies Act, 2013.
Annexure to the Board Report
The Independent Directors / Non-Executive
Directors are paid remuneration by way of
commission and sitting fees. The Company
paid sitting fees of 1,00,000/- per meeting
of the Board and ₹50,000/- for Audit
Committee, Nomination and Remuneration
Committee and Board Risk Management
Committee meetings and 35,000/- for
Stakeholders Relationship Committee and
Corporate Social Responsibility Committee
meetings, during the year, to the Independent
Directors / Non-Executive Directors. The
commission is paid in accordance with the
provisions of section 197 of the Companies
Act, 2013.
Report
report.
Statements
0.63
Statutory Financial
Reports
2.78
Mr. S. N.
Meeting
Meeting
ESOP*
ESOP
Commission Others+ Total
Sitting
Fees for
Board Committee
Benefits
Names
Sitting
Fees for
Commission Total
0.05
Salary other than
related to
vii) Details of remuneration paid / payable to
Directors for the year ended 31st March
2022:
LARSEN & TOUBRO
(a) Executive Directors:
FY 2022 is as follows:
on exercise of these options is considered
as a part of the remuneration of these
Directors.
The details of remuneration paid /
payable to the Executive Directors for
The details of remuneration paid /
payable to the Non-Executive Directors
for FY 2022 is as follows:
crore
crore
Perquisites Perquisites
Retirement
Names
(b) Non-Executive Directors:
Financial District, Nanakramguda,
Hyderabad, Telengana - 500 032
Tel: (040) 6716 2222
1.
KFin Technologies Limited
Unit: Larsen & Toubro Limited
Selenium Tower B,
Plot 31 & 32, Gachibowli,
Toll free number: 1-800-3094-001
Fax: (040) 2342 0814
Tel: (022) 6623 5454/5412/5427
2. KFin Technologies Limited
Unit: Larsen & Toubro Limited
24-B, Raja Bahadur Mansion,
Ground Floor, Ambalal Doshi Marg,
Behind BSE Limited,
Fort, Mumbai 400 023.
Shareholder correspondence may be directed
to the Company's Registrar and Share Transfer
Agent, whose address is given below:
u) Investor Grievances:
The Company has designated an exclusive e-mail
id viz. IGRC@LARSENTOUBRO.COM to enable
investors to register their complaints, if any.
Email: einward.ris@kfintech.com
Website: www.kfintech.com
Fax No. (022) 6752 5858
314
L&T House, Ballard Estate,
Mumbai 400 001.
s) Plant Locations:
The L&T Group's facilities for design, engineering,
manufacture, modular fabrication and production
are based at multiple locations within India
India
Non-Convertible
Debentures
and
Research
Private
'IND AAA/ Stable'
313
Integrated Annual Report 2021-22
Annexure to the Board Report
including, Bengaluru, Chennai, Coimbatore,
Faridabad, Hazira (Surat), Kattupalli (near
Chennai), Kanchipuram, Mumbai, Pithampur,
Puducherry, Rajpura, Kansbahal (Rourkela),
Talegaon, Vadodara and Visakhapatnam. L&T's
international manufacturing footprint covers
Oman, Saudi Arabia and USA. The L&T Group also
has an extensive network of offices in India and
around the globe. See pages 14 and 15 of this
Annual Report.
t) Address for correspondence:
Larsen & Toubro Limited,
Tel. No. (022) 6752 5656,
Ratings
May
NSDL
131,35,23,560
93.49%
1900
Category
18200
2000
19100
2100
1) Categories of Shareholders is as under:
14,92,124 100.00 140,50,29,123 100.00
TOTAL
T20000
L&T NSE (*) ―NSE NIFTY
2200
Stock Performance
above
4,129 0.28 2,86,44,106 2.04
3,462 0.23 116,49,19,398 82.91
5001 - 10000
10001 and
January 2078.55 1850.10 1909.20 18350.95 16836.80 17339.85
February
2008.00 1751.00 1816.75 17794.60 16203.25 16793.90
1826.95 1595.00 1767.65 17559.80 15671.45 17464.75
March
1,11,76,202 0.80
2,480 0.17
4001 - 5000
0.96
1,34,46,251
%
0.26
17300
L&T-NSE (*)
Shares underlying GDRs
Mutual Funds
Bodies Corporate &
Qualified Institutional
Daily Closing Price
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
21 21 21 21 21 21 21 21 21 22 22 22
11000
1000
11900
1100
1200
12800
1300
13700
1400
%
31.03.2022
31.03.2021
No. of
No. of
Shares
Shares
21,00,83,320 14.95 23,97,88,975 17.07
31,08,73,341 22.13 31,99,81,665 22.78
Foreign Institutional
Investors
Financial Institutions
NSE NIFTY
14600
1500
15500
1600
1700
16400
1800
1,81,96,992 1.30 2,02,61,741 1.44
24,50,08,723 17.44 21,25,49,034 15.13
8,14,83,173 5.80 7,85,44,719 5.59
3,881
2,19,02,931
Physical shares received for dematerialization are
processed and completed within a period of 21
Pursuant to SEBI notification dated 24th January
2022, requests for effecting transfer of securities
in physical form, shall not be processed by the
Company. The share related information is
available online.
Share Transfer System:
Selenium Tower B, Plot number 31 & 32
Financial District Gachibowli, Nanakramguda,
Hyderabad, Telangana - 500 032.
Unit: Larsen & Toubro Limited
KFin Technologies Limited (previously known as
KFin Technologies Private Limited)
BSE SENSEX
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
21 21 21 21 21 21 21 21 21 22 22 22
Daily Closing Price
1000
45000
1100
47500
1200
1300
50000
1400
1500
52500
1600
55000
1700
1800
57500
days from the date of receipt.
1.56
As required under Regulation 40 of the SEBI
LODR Regulations, a certificate on yearly basis
confirming due compliance of share transfer
formalities by the Company from Practicing
Company Secretary has been submitted to Stock
Exchanges within stipulated time.
Month
0.60
8,960
2001 - 3000
3001-4000
2.65
3,72,87,482
26,708 1.79
2.50
3,51,38,388
Number
%
9,25,14,365 6.58
Number %
13,94,521 93.46
47,983 3.22
501-1000
1001-2000
upto 500
No. of Shares
Shareholding
Shareholders
High Low
Month
Month
Close
Close
1447.85 1306.00 1340.45 15044.35 14151.40 14631.10
1499.65 1319.15 1467.70 15606.35 14416.25 15582.80
1583.00 1447.25 1500.55 15915.65 15450.90 15721.50
June
July 1647.15 1475.50 1601.45 15962.25 15513.45 15763.05
August 1684.95 1562.75 1672.20 17153.50 15834.65 17132.20
September 1810.00 1655.20 1702.95 17947.65 17055.05 17618.15
October 1885.00 1684.05 1766.65 18604.45 17452.90 17671.65
November 1981.75 1735.15 1764.75 18210.15 16782.40 16983.20
December 1909.00 1762.05 1895.90 17639.50 16410.20 17354.05
2022
v) Securities Dealing Code:
April
NIFTY
L&T NSE Price (₹)
High Low
2021
k) Distribution of Shareholding as on 31st March
2022:
Limited
Buyers
17,82,434
93.49
131,35,23,560
Held in dematerialized form in NSDL
CRISIL
issued
Rating
Type of Instrument
Rating
Agency
capital
No. of shares
total
% of
The Company has obtained rating from CRISIL
Limited, ICRA Limited and India Ratings and
Research Private Limited during FY 2022. There
has been no revision in credit ratings during
FY 2022. The ratings given by these agencies are
as follows:
r) Credit Rating:
-
Mumbai 400 001
17, R. Kamani Marg, Ballard Estate
Ground Floor, Asian Building
IDBI Trusteeship Services Limited
q) Debenture Trustees (for privately placed
debentures):
The Commercial Papers issued by the Company
are listed on BSE Limited.
p) Listing of Commercial Paper:
The redeemable Non-Convertible debentures
issued by the Company are listed on the
Wholesale Debt Market (WDM) of National Stock
Exchange of India Limited and / or BSE Limited.
Limited
o) Listing of Debt Securities:
Non-Convertible
Debentures
Held in dematerialized form in CDSL
1.11%
Physical
1,56,35,855
5.40%
CDSL
7,58,69,708
'[ICRA] A1+'
Commercial Paper
Debentures Programme
as on 31st March 2022
Shares held in Demat / Physical Form
'[ICRA] AAA (stable)'
Non-Convertible
ICRA
Limited
100.00
140,50,29,123
Total
'CRISIL A1+'
'CRISIL AAA/Stable'
Bank Loan Facilities
Commercial Paper
1.11
1,56,35,855
Physical
5.40
7,58,69,708
'CRISIL AAA/Stable'
Directors & Relatives
The outstanding GDRs are backed up by
underlying equity shares which are part of the
existing paid-up capital.
The number of shares held in dematerialized and
physical mode as on 31st March 2022 is as under:
Others
19,25,58,158 13.71
34,50,42,982 24.55 33,91,39,419 24.16
140,50,29,123 100.00 140,45,55,297 100.00
Categories of Shareholders
TOTAL
19,25,58,158 13.70
L&T Employees Trust
Others
%
No. of
Shares
%
No. of
Shares
Category
31.03.2021
31.03.2022
LARSEN & TOUBRO
Statements
Reports
Report
Discussion and Analysis
Statutory Financial
Integrated
Management
Corporate
Overview
17,31,586 0.12
0.13
24.55%
n) Outstanding GDRs / ADRs / Warrants or any
Convertible Instruments, conversion date and
likely impact on equity:
L&T
as on 31st March 2022
The Company's Shares are required to be
compulsorily traded in the Stock Exchanges in
dematerialized form.
m) Dematerialization of shares and Liquidity:
5.80%
Buyers
Institutional
17.44%
1.30%
& Qualified
Funds
Corporate
GDRs
0.13%
underlying
Mutual
Bodies
Relatives
Shares
Directors &
13.70%
Trust
Foreign
Institutional
Investors
22.13%
Institutions
14.95%
Financial
Employees
The objective of the Securities Dealing Code
('Code') is to prevent purchase and / or sale of
shares of the Company by an Insider based on
unpublished price sensitive information. Under
this Code, Designated Persons (Directors, Advisors,
Officers and other concerned employees / persons)
are prevented from dealing in the Company's
shares during the closure of Trading Window.
To deal in securities beyond specified limit,
Date: May 12, 2022
Mr. Sivaram Nair A, Company Secretary has been
designated as the Compliance Officer.
The shares of the Company are listed on BSE
Limited (BSE) and the National Stock Exchange of
India Limited (NSE).
d) Listing of equity shares / shares underlying
GDRs on Stock Exchanges:
On or before 8th August
2022
4th August 2022
During the last week of
July 2022 *
Second week of July 2022
12th May 2022
5. Payment of Dividend
4. Annual General
Meeting
3. First Quarter Results
2. Mailing of Annual
Reports
1. Annual Results of
2021-22
b) Financial calendar:
The Annual General Meeting of the Company has
been convened on Thursday, 4th August 2022 at
3:30 p.m. through Video Conferencing ("VC") /
Other Audio Visual Means ("OAVM") pursuant to
the MCA Circular dated 5th May 2020.
All corporate benefits on such shares viz. dividends,
bonus shares, etc. shall be transferred in accordance
with the provisions of IEPF Rules read with Section
124(6) of the Companies Act, 2013. The eligible
shareholders are requested to note the same and make
an application to IEPF Authority in accordance with the
procedure available on www.iepf.gov.in and submit
such documents as prescribed under the IEPF Rules
to claim these shares. Mr. Sivaram Nair A has been
appointed as the Nodal officer of the Company.
GENERAL SHAREHOLDERS' INFORMATION
a) Annual General Meeting:
In accordance with the provisions of the Section 124(6)
of the Companies Act, 2013 and Rule 6(3)(a) of the
Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules,
2016 ('IEPF Rules'), the Company has transferred to
IEPF equity shares on which dividend has remained
unclaimed for a period of seven consecutive years from
the financial year 2013-14. The details are given in the
Board Report. Please refer to page 285 of this Annual
Report.
certificates are regularly released on requests received
from the eligible shareholders after due verification.
I.
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
The Company does not have any unclaimed shares
lying with it from any public issue. However certain
shares resulting out of the bonus shares issued by
the Company are unclaimed by the shareholders. As
required under Regulation 39(4) of the SEBI LODR
Regulations, the Company has already sent reminders
to the shareholders to claim these shares. These share
The schedule of analyst / institutional
investor meets and presentations
made to them on a quarterly basis
are informed to the Stock Exchanges
and also displayed on the Company's
website. The audio recordings and
transcripts of these meetings are also
uploaded on the Company's website
and link for the same is intimated to
the Exchanges.
GDRs are listed on Luxembourg Stock Exchange
and admitted for trading on London Stock
Exchange.
e) Listing Fees to Stock Exchanges:
The Company has paid the Listing Fees for the
year 2022-23 to BSE and NSE in April 2022. The
fees to Luxembourg Stock Exchange has been
paid in March 2022. The fees to London Stock
Exchange will be paid on receipt of the invoice.
f) Custodial Fees to Depositories:
July
The Record date to determine the members
entitled to the dividend for FY 2022 is Friday,
22nd July 2022.
c) Record Date:
June
Tentative
May
April
During last week of
January 2023 *
7. Third Quarter results
2021
During last week of
October 2022 *
6. Second Quarter
results
Month
This forms a part of the Annual Report
which is mailed to the shareholders of
the Company.
h) Stock market data for the year 2021-22:
: LTOD
London Exchange Stock
Code
Luxembourg Exchange Stock : 005428157
Code
: INE018A01030
: LART.BO
Scrip Code 500510
Scrip Code - LT
Reuters RIC
ISIN
India Limited (NSE)
National Stock Exchange of
BSE Limited (BSE)
The Company's equity shares / GDRs are listed on
the following Stock Exchanges and admitted for
trading in London Stock Exchange:
g) Stock Code / Symbol:
The fees to National Securities Depository Limited
(NSDL) and Central Depository Services (India)
Limited (CDSL) shall be paid on the receipt of their
invoice.
The Company's shares constitute a part of BSE 30
Index of the BSE Limited as well as NIFTY Index of
the National Stock Exchange of India Limited.
Annual Report is circulated to all the
members and all others like auditors,
equity analysts, etc. To enable a
larger participation of shareholders
for the Annual General Meeting
(AGM), the Company has provided
Webcast facility at its last three AGMS
in co-ordination with NSDL/KFin
Technologies. This year, like previous
year, due to the continuing COVID-19
pandemic, the Company will be once
again conducting the AGM through
Audio Visual Means, as permitted by
Ministry of Corporate Affairs and SEBI.
The Annual Report is e-mailed to all
members who have registered their
email ids with the Company and to
those shareholders who request for
the same. The Annual Report would
also be made available on the website
of the Company. The Chairman
suitably responds to the queries raised
by the shareholders during the AGM.
Investor complaints are processed
at SEBI in a centralized web-based
complaints redress system. The salient
features of this system are centralised
database of all complaints, online
upload of Action Taken Reports (ATRS)
by concerned companies and online
viewing by investors of actions taken
on the complaints and their current
status. The Company submits ATR
on timely basis with respect to the
complaints received from SCORES.
now being also filed online on NEAPS
and Digital Portal for NSE, BSE Online
for BSE and RNS for London Stock
Exchange.
Information to Stock Exchanges is
Details of all related party transactions
form a part of the accounts as required
under IND AS 24 and the same are given in
Note No. 47 forming part of the financial
statements.
3.
2.
1. During the year, there were no transactions
of material nature with the Directors or the
Management or relatives or the subsidiaries
that had potential conflict with the interests
of the Company.
g) Disclosures:
The results of the Postal Ballot would be
announced on or before 18th May 2022.
The Company had appointed Mr. S. N.
Ananthasubramanian, Practising Company
Secretary, (M. No: FCS 4206, COP No. 1774)
and failing him, Ms. Aparna Gadgil, Practising
Company Secretary (M. No: ACS 14713, COP No.
8430), as Scrutinizer for conducting the Postal
Ballot in a fair and transparent manner.
The voting period for the said Postal Ballot
commenced on 18th April 2022 at 9:00 a.m.
IST and shall conclude on 17th May 2022 at
5:00 p.m. IST.
3. Appointment of Mr. Pramit Jhaveri (DIN:
00186137) as an Independent Director w.e.f.
1st April 2022.
2. Approval of Related Party Transaction to
be undertaken by the Company with L&T
Finance Limited.
1. Alteration of Object Clause of the
Memorandum of Association of the
Company.
f) Resolution(s) passed through Postal Ballot:
No postal ballot was conducted during FY 2022.
The Company has sought the approval of
shareholders through notice of the Postal Ballot
dated 13th April 2022 for the following proposals:
Note: The resolution relating to raising of
finances have been taken at each of the above
AGMs since the validity of the resolution is one
year.
The Company has followed all relevant
Accounting Standards notified by the
Companies (Indian Accounting Standards)
Rules, 2015 while preparing the Financial
Statements.
To approve raising of capital through QIP's
by issue of shares / convertible debentures /
securities upto an amount of USD 600 million
or 4,000 crore.
To re-appoint Mr. Adil Zainulbhai as an
Independent Director of the Company for a
five-year term upto 28th May 2024.
To re-appoint Mr. Vikram Singh Mehta as an
Independent Director of the Company for a
five-year term upto 31st March 2024.
To re-appoint Mr. M. M. Chitale as an
Independent Director of the Company for a
five-year term upto 31st March 2024.
To re-appoint Mr. M. Damodaran as an
Independent Director of the Company for a
five-year term upto 31st March 2024.
Annual General Meeting held on 1st August
2019:
To approve raising of capital through QIP's
by issue of shares / convertible debentures /
securities upto an amount of USD 600 million
or 4,500 crore.
To re-appoint and continue the appointment
of Mr. A. M. Naik as Non-Executive Director
of the company who has attained the age of
75 years.
Annual General Meeting held on 13th August
2020:
LARSEN & TOUBRO
Financial
Statements
Integrated Statutory
Report
Reports
Discussion and Analysis
Management
Corporate
Overview
To amend the object clause of the
Memorandum of Association of the
Company.
L&T BSE Price (*)
Month
Month
High Low
Close
Close
1447.80 1306.40 1340.20 50375.77 47204.50 48782.36
1499.80 1320.65 1465.55 52013.22 48028.07 51937.44
1582.65 1448.00 1501.25 53126.73 51450.58 52482.71
1647.00 1475.85 1601.40 53290.81 51802.73 52586.84
August 1684.80 1563.30 1671.40 57625.26 52804.08 57552.39
September 1810.00 1657.20 1703.15 60412.32 57263.90 59126.36
October 1884.90 1684.40 1766.80 62245.43 58551.14 59306.93
4. The Company makes presentations to
Institutional Investors and Equity Analysts
on the Company's performance on a
quarterly basis. These presentations
are provided to the Stock Exchanges
and also available on our website
https://investors.larsentoubro.com/Analyst-
5. There were no instances of non-compliance,
penalties, strictures imposed on the Company
by the Stock Exchanges on any matter related
to the capital markets, during the last three
years.
H. UNCLAIMED SHARES
Presentations made
to Institutional
Investors and
Analysts
Management
Discussion &
Analysis
SEBI Complaints
Redress System
(SCORES)
Annual Report and
Annual General
Meeting
Filing with Stock
Exchanges
available on the websites of the Stock
Exchanges.
The Company's corporate website
www.larsentoubro.com provides
comprehensive information about
its portfolio of businesses. Section
on "Investors" serves to inform and
service the Shareholders allowing
them to access information at
their convenience. The quarterly
shareholding pattern of the Company
is available on the website of the
Company as well as the stock
exchanges. The entire Annual Report
of the Company and subsidiaries are
available in downloadable formats.
The entire Annual Report of the
Company would also be made
Official news releases that carry
material price sensitive information
are sent to stock exchanges as well as
displayed on the Company's website:
www.larsentoubro.com.
Advertisements relating to IEPF,
E-Voting, AGM related compliances,
etc. are published in The Financial
Express and Loksatta.
Quarterly and Annual Results
are published in prominent daily
newspapers viz. The Financial
Express, The Hindu Business Line
and Loksatta. The results are also
posted on the Company's website:
www.larsentoubro.com.
Website
News Releases
Presentation-Archives.aspx
Financial Results
and other
Communications
10. The Company has not provided any loans
or advances in the nature of loans to firms/
companies in which Directors are interested.
Details in relation to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 form a part of the
Board Report. Please refer to page 286 of this
Annual Report.
Management Discussion & Analysis. Please
refer to page 25 to 28 of this Annual Report.
As required under the provisions of SEBI
LODR Regulations, a certificate confirming
that none of the Directors on the Board
have been debarred or disqualified by the
Securities and Exchange Board of India or
Ministry of Corporate Affairs or any such
statutory authority, obtained from M/s S.
N. Ananthasubramanian & Co., Company
Secretaries, is a part of the Corporate
Governance report.
9.
8.
Annexure to the Board Report
310
Integrated Annual Report 2021-22
309
foreign exchange risk, commodity price risk
and hedging activities form a part of the
Details of risk management including
7.
6. The policies for determining material
subsidiaries and related party transactions
are available on the Company's website
https://www.larsentoubro.com/corporate/
about-lt-group/corporate-policies/.
h) Means of communication:
permission of Compliance Officer is also required.
Directors and designated employees who buy
and sell shares of the Company are prohibited
from executing contra-trades during the next
six months following the prior transactions.
The Company has a policy for acting against
Directors and employees who violate the SEBI PIT
Regulations / Code. Pursuant to the enactment
of the SEBI (Prohibition of Insider Trading)
(Amendment) Regulations, 2018, the Company
has suitably modified the provisions of the Code
which are effective from 1st April 2019.
BSE SENSEX
311
Integrated Annual Report 2021-22
316
Annexure to the Board Report
Based on these confirmations, the Company
Secretary gives a compliance certificate to the
Board of Directors.
The Company has a process of verifying the
compliances through a random review of the
process/system/documentation of the location
of the IC/Corporate function / Group Company.
The review is placed before the Board of the
respective IC / group company. Existing internal
controls are also reviewed. The audit process
includes planning the audit, discussion with
auditee before audit commencement to explain
the scope and purpose of the audit, verifying
the compliances based on the supporting
documentation, post audit meeting for explaining
the observations, etc.
cc) Group Governance Policy:
Vide its circular dated 10th May 2018, SEBI has
introduced the concept of Group Governance
Unit. The circular expects listed companies to
monitor their governance through a Governance
Committee and establishment of a strong and
effective group governance policy.
"Corporate Governance" in the Company and its
subsidiaries broadly includes strategic supervision
by the Board and its Committees, compliance of
Code of Conduct, Statutory Compliance including
compliance of Companies Act / applicable SEBI
Regulations, avoiding conflict of interest, Risk
Management, Internal Controls and Audit.
The Company has four listed subsidiaries within
the Group. Each of these entities have their own
Board and Board Committees in compliance
with the Companies Act, 2013 and SEBI LODR
Regulations. The oversight of their subsidiaries
is as per Companies Act, 2013 and SEBI LODR
Regulations. The Board Report and its annexures
of these listed companies contains various
disclosures dealing with subsidiary companies.
Most of these listed entities has one Executive
Director and one or more Independent Director(s)
of the Company on its Board. Any financial
assistance to the above companies or purchase/
sale by the Company of their shares, is dealt with
by the Company's Board.
These listed entities publish their Independent
Auditor's certificate on Corporate Governance,
Secretarial Audit Report of Practising Company
Secretary and CEO/CFO's certificate for internal
controls for financial reporting.
Responsibility of the Company's corporate team
in the areas of statutory compliance (including
corporate laws), Risk Management, Internal
Controls and Internal Audit, covers all unlisted
subsidiaries. The four listed subsidiaries have their
own teams to carry out these functions.
The ICs have separate internal teams to
oversee their legal and compliance functions.
All Subsidiary Companies associated with the
respective ICs are reviewed by their respective IC
Boards.
The subsidiary companies also function
independently and have separate Boards which
consists of representatives of the Company,
who are senior executives of the Company,
representatives of Joint Venture partners,
representative of the Company's Board as well
as Independent Directors as required by law. As
per law, these companies, wherever required,
also have Audit Committee, Nomination and
Remuneration Committee, CSR Committee,
Stakeholders' Relationship Committee and Risk
Management Committee.
Major unlisted subsidiaries have some Executive
Directors of the Company on their Board. The
subsidiary companies' performance is reviewed
by the Company's Board periodically (included
in quarterly results presented to the Company's
Board). F&A heads of some of the subsidiary
companies functionally report to select senior
finance officers of the Company.
Thus, the overall functioning of these Subsidiary
companies is monitored by the Group directly or
through their respective IC's.
A voluntary Secretarial Audit is conducted for all
subsidiary companies, including foreign companies
and companies which are not covered under the
purview of Companies Act, 2013. Thus, there is
a complete audit of the compliance of applicable
statutory provisions and adherence to good
corporate practices.
The Company's Code of Conduct (Code) is
required to be adhered by all unlisted group
companies covering employees, directors,
suppliers, contractors, etc. In addition to
this, the subsidiaries also have their own vigil
mechanism, if they meet the thresholds given in
the Companies Act. The Audit Committee/Board
of these companies monitor this mechanism. The
Vigil Mechanism Framework to report breach of
Corporate
Overview
Management
Discussion and Analysis
Integrated Statutory
Report
Reports
Financial
Statements
LARSEN & TOUBRO
code is a structured process, which encourages
and facilitates all covered, to report without
fear, wrongdoings or any unethical or improper
practice which may adversely impact the image,
credibility and/or the financials of the company,
through an appropriate forum.
The Secretarial Department of the Company has
qualified Company Secretaries (CS) with vast
experience in the field of compliance and law.
It consists of fulltime professionals dedicated to
performing corporate secretarial and subsidiary
governance duties. Qualified CS in secretarial
department monitor the compliance related to
subsidiaries under Companies Act / Rules. The
Company's Secretarial Department develops a
broad Governance policy for the Company and its
group of subsidiaries.
315
Each IC / Business head certifies compliance of
all applicable laws by the IC on a quarterly basis.
The Company complies with applicable laws, rules
and regulations impacting Company's business.
These comprise of Central Acts / Rules and
those of state governments where the Company
generally carries on business. The applicable
laws are reviewed and updated by an External
Consultant along with the Corporate Legal and
Legal departments of each Independent Company
(IC).
bb) Statutory Compliance System:
The Company has appointed Mr. P. Ramakrishnan,
Vice President (Corporate Accounts & Investor
Relations), as Chief Investor Relations Officer.
The Company also formulated Code of Practices
and Procedures for Fair Disclosure of unpublished
price sensitive information which is available on
Company's Website https://www.larsentoubro.
com/corporate/about-It-group/corporate-policies/.
w) Stakeholder Engagement:
The Company recognizes that its stakeholders
form a vast and heterogeneous community. Our
customers, shareholders, employees, suppliers,
community, etc. have been guideposts of our
decision-making process. The Company engages
with its identified stakeholders on an ongoing
basis through business level engagements and
structured stakeholder engagement programs.
The Company maintains its focus on delivering
value to all its stakeholders, especially the
disadvantaged communities.
The Company has a dedicated Corporate Brand
Management and Communications department
which facilitates an on-going dialogue between
the Company and its stakeholders. The
communication channels include:
For external stakeholders - Stakeholder
engagement sessions, client satisfaction
surveys, shareholder satisfaction assessment,
dealer and stockists meet, analyst / investors
meet, periodic feedback mechanism, general
meeting for shareholders, online service
and dedicated e-mail service for grievances,
corporate website and access to business
media to respond to queries, etc.
For internal stakeholders - Employee
satisfaction surveys, employee engagement
surveys for improvement in employee
Corporate
Overview
Management
Discussion and Analysis
Integrated
Statutory
Financial
Report
Reports
The Company's Secretarial Department is involved
in all major corporate actions of subsidiaries
like IPO's, raising of capital, restructuring, major
financial assistance to subsidiaries etc.
Statements
engagement processes, circulars and
messages from management, corporate
social initiatives, welfare initiatives for
employees and their families, online news
bulletins for conveying topical developments,
large bouquet of print and online in-house
magazines, helpdesk facility, etc.
Each of the businesses have their internal
mechanisms to address the grievances of its
stakeholders. In addition, at the corporate level,
there are committees which can be approached
if the stakeholders are not satisfied with the
functioning of such internal mechanisms. As
part of the vigil mechanism, the Whistle Blower
Policy provides access to the Chairperson of
the Audit Committee. The Whistle Blower
Policy for Vendors and Channel Partners is
displayed on the website of the Company
https://www.larsentoubro.com/corporate/
about-lt-group/corporate-policies/.
x) Awareness Sessions / Workshops on
Governance practices:
Employees across the Company as well as the
group are being sensitized about the various
policies and governance practices of the
Company. The Company has designed in-house
training workshops on Corporate Governance
with the help of an external faculty covering
basics of Corporate Governance as well as internal
policies and compliances under Code of Conduct,
Whistle Blower Policy, Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013, SEBI (Prohibition of Insider
Trading) Regulations, 2015, etc.
The Company has established a scalable,
multi-featured and externally integrated digital
learning platform called ATLNext. It offers a
gamut of online courses including competency
courses, behavioural courses, and business-specific
technical courses. ATLNext also provides for a
course on Governance where employees can learn
about Governance practices and give a self-
assessment test after completion of the course.
The Company has created a batch of trainers
across businesses who in turn conduct training /
awareness sessions within their business regularly.
y) ISO 9001:2015 Certification:
The Company's Secretarial Department which
provides secretarial services and investor services
for the Company and its Subsidiaries and
Associate Companies is ISO 9001:2015 certified.
z) Audit as per SEBI requirements:
As stipulated by SEBI, a Qualified Practicing
Company Secretary carries out Reconciliation of
Share Capital Audit to reconcile the total admitted
capital with National Securities Depository Limited
(NSDL) and Central Depository Services (India)
Limited (CDSL) with the total issued and listed
capital. This audit is carried out every quarter
and the report thereon is submitted to the Stock
Exchanges. The Audit confirms that the total
Listed and Paid-up capital is in agreement with
the aggregate of the total number of shares in
dematerialized form and in physical form.
The Secretarial Department of the Company at
Mumbai is manned by competent and experienced
professionals. The Company has a system to
review and audit its secretarial and other statutory
compliances by competent professionals, who are
employees of the Company. Appropriate actions
are taken to continuously improve the quality of
compliance.
aa) Secretarial Audit as per Companies Act, 2013:
Pursuant to the provisions of Section 204(1)
of the Companies Act, 2013, M/s. S. N.
Ananthasubramanian & Co., Company Secretaries,
conducts the secretarial audit of the compliance of
applicable statutory provisions and the adherence
of good corporate practices by the Company.
Pursuant to the SEBI circular no. CIR/CFD/
CMD1/27/2019 dated 8th February 2019,
the Company has obtained an annual
secretarial compliance report from M/s. S. N.
Ananthasubramanian & Co., Company Secretaries
and shall submit the same to the Stock Exchanges
within the prescribed timelines.
LARSEN & TOUBRO
Appropriate disclosures related to subsidiaries
are made in Financial Statements / Directors'
Report of the Company as well as its subsidiaries
as per Companies Act, 2013 / applicable SEBI
Regulations and applicable Accounting Standards.
All companies are subject to Statutory Audit and
applicable Secretarial Audit.
317
Integrated Annual Report 2021-22
318
60000
2100
62500
2200
2300
65000
BSE SENSEX
L&T BSE (*)
2400
Stock Performance
L&T-BSE (*)
j)
UDIN: 22039826AIVDOS1456
January 2078.20 1850.80 1908.85 61475.15 56409.63 58014.17
February
2006.80 1750.55 1816.90 59618.51 54383.20 56247.28
March 1826.35 1595.00 1767.45 58890.92 52260.82 58568.51
November 1982.95 1735.25 1763.90 61036.56 56382.93 57064.87
December 1908.75 1763.00 1895.00 59203.37 55132.68 58253.82
2022
Month
Close
Low
High
Month
Close
High Low
2021
BSE SENSEX
L&T BSE Price (*)
Month
Annexure to the Board Report
312
Integrated Annual Report 2021-22
i) Registrar and Share Transfer Agents (RTA):
High Low
(Membership No. 039826)
2000
Annexure to the Board Report
Independent Auditor's Certificate on Corporate Governance
TO THE MEMBERS OF
LARSEN & TOUBRO LIMITED
INDEPENDENT AUDITOR'S CERTIFICATE ON
CORPORATE GOVERNANCE
1. This certificate is issued in accordance with the terms
of our engagement letter dated August 23, 2021.
2. We, Deloitte Haskins & Sells LLP, Chartered
Accountants, the Statutory Auditors of Larsen &
Toubro Limited (the "Company"), have examined the
compliance of conditions of Corporate Governance by
the Company, for the year ended on March 31, 2022,
as stipulated in regulations 17 to 27 and clauses (b) to
(i) of regulation 46(2) and para C and D of Schedule
V of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended from
time to time (the "Listing Regulations").
MANAGEMENTS' RESPONSIBILITY
3. The compliance of conditions of Corporate
Governance is the responsibility of the Management.
This responsibility includes the design, implementation
and maintenance of internal control and procedures
to ensure the compliance with the conditions of
the Corporate Governance stipulated in Listing
Regulations.
AUDITOR'S RESPONSIBILITY
4.
5.
Sanjiv V. Pilgaonkar
(Partner)
6.
We have examined the books of account and other
relevant records and documents maintained by the
Company for the purposes of providing reasonable
assurance on the compliance with Corporate
Governance requirements by the Company.
We have carried out an examination of the relevant
records of the Company in accordance with the
Guidance Note on Certification of Corporate
7.
Governance issued by the Institute of the Chartered
Accountants of India (the "ICAI"), the Standards
on Auditing specified under Section 143(10) of the
Companies Act 2013, in so far as applicable for the
purpose of this certificate and as per the Guidance
Note on Reports or Certificates for Special Purposes
issued by the ICAI which requires that we comply with
the ethical requirements of the Code of Ethics issued
by the ICAI.
We have complied with the relevant applicable
requirements of the Standard on Quality
Control (SQC) 1, Quality Control for Firms that
Perform Audits and Reviews of Historical Financial
Information, and Other Assurance and Related Services
Engagements.
OPINION
8. Based on our examination of the relevant records
and according to the information and explanations
provided to us and the representations provided by
the Management, we certify that the Company has
complied with the conditions of Corporate Governance
as stipulated in regulations 17 to 27 and clauses (b) to
(i) of regulation 46(2) and para C and D of Schedule
V of the Listing Regulations during the year ended
March 31, 2022.
9.
We state that such compliance is neither an assurance
as to the future viability of the Company nor the
efficiency or effectiveness with which the Management
has conducted the affairs of the Company.
Place: Mumbai
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W100018)
Our responsibility is limited to examining the
procedures and implementation thereof, adopted
by the Company for ensuring compliance with the
conditions of the Corporate Governance. It is neither
an audit nor an expression of opinion on the financial
statements of the Company.
1900
Mumbai 400001
Location of the project.
ΝΑ
* 6.14 crore
140.19 crore*
Amount
134.05 crore
9. (a) Details of Unspent CSR amount for the preceding three financial years
* includes excess amount of 4.51 crore spent in FY 2021 and set-off in the current financial year.
Amount available for set off in succeeding financial years [(iii)-(iv)]
6.14 crore
Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if
any
(iv)
Excess amount spent for the financial year [(ii)-(i)]
(iii)
Total amount spent for the Financial Year
(ii)
Two percent of average net profit of the company as per section 135(5)
(i)
(v)
ΝΑ
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
ΝΑ
325
Chief Executive Officer &
S. N. Subrahmanyan
326
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section
135(5).
ΝΑ
3
As per Exhibit - B
2
1
(d) Provide details of the capital asset(s) created or acquired (including complete
address and location of the capital asset).
Details of the entity or public authority or beneficiary under whose name
such capital asset is registered, their address etc.
(c)
(b) Amount of CSR spent for creation or acquisition of capital asset (in)
(a) Date of creation or acquisition of the capital asset(s)
Capital Purchase FY 2022
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year (asset-wise details).
Annexure to the Board Report
Integrated Annual Report 2021-22
Particulars
Managing Director
Sl. No.
(f) Total amount spent for the Financial Year (8b+8c+8d+8e)
135.68 crore
SI.
Mode of implementation -
Through implementing agency.
(8)
(7)
(6)
(2)
(1)
area
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
Local
(5)
(4)
(3)
Item from
the list of
NOT APPLICABLE
TOTAL
1.
Location of the project
Amount
spent for the
Name of the Project activities in
No.
0.21 crore
(e) Amount spent on Impact Assessment, if applicable
* 6.42 crore
(d) Amount spent in Administrative Overheads
129.04
As per Exhibit - A
to the Act
registration number
Name
crore)
District
State
CSR
Mode of
implementation -
Direct (Yes/No)
project (in
(Yes/
No)
schedule VII
(g) Excess amount for set off, if any
DIN: 02255382
M. M. Chitale
Chairman CSR Committee
Yes
5,861,612
Mumbai
Maharashtra
Yes
iv
Maintenance of Public
Green Spaces
3
and Engagement with
Yes
618,164
Mumbai
Maharashtra
Yes
¡¡
Community
4
Covid-19 Emergency
i
5
Shimla and Delhi
and Delhi
Bangalore, Rajsamand, Ahmedabad,
Himachal Pradesh
Khandwa, Tikamgarh, Dharwad,
Rajasthan, Gujarat,
Oddanchattram, Virudhunagar, Sagar,
Pradesh, Karnataka,
Coimbatore, Thoothukudi,
Nadu, Madhya
Response
Yes
56,710,370
Andaman, Tirunelveli, Madurai,
Andaman, Tamil
No
Awareness Programmes
2
Projects
Implementation of
activities in
Name of the Project.
area
SI.
the list of
Local
Item from
EXHIBIT - A
Statements
Reports
Statutory Financial
Integrated
Report
Management
Discussion and Analysis
Overview
Corporate
DIN: 00101004
-
No.
CSR
Registration
number
(Yes/
No).
Designing and
1
Yes
6,940,086
number
Name (NGO) Registration
(Yes/No).
CSR
Mode of Implementation -
Through Implementing Agency
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
(in )
LARSEN & TOUBRO
Mumbai
Maharashtra
Yes
the Act.
District
State
Schedule VII to
Covid-19 Emergency
(in)
Name
The CSR projects of the Company are focused on communities that are disadvantaged, vulnerable and marginalized.
The Company strives to contribute positively to improve their standard of living, through its interventions in water &
sanitation, heath, education and skill development.
1. Brief outline on CSR Policy of the Company
ANNUAL REPORT ON CSR ACTIVITIES FOR FINANCIAL YEAR ENDED 31ST MARCH 2022
Annexure 'C' to the Board Report
LARSEN & TOUBRO
Statutory Financial
Statements
Reports
The Company's CSR Policy framework details the mechanisms for undertaking various programmes in accordance with
Section 135 of the Companies Act, 2013 (the Act) for the benefit of the community.
Discussion and Analysis Report
Management
Corporate
Overview
DIN: 02255382
Managing Director
S. N. Subrahmanyan
Chief Executive Officer and
DIN: 00019798
R. Shankar Raman
Whole-time Director and
Chief Financial Officer
Integrated
The impact of COVID-19 pandemic continued to ravage communities impacting livelihoods, education and health and
called for innovative approaches to address the ground realities.
Significant efforts were deployed towards Covid-19 relief besides continuing commitment to existing projects. During the
second wave of Covid-19, the focus of relief efforts was to address the acute oxygen shortage faced within the Country
through timely supply of PSA oxygen plants, besides strengthening the health infrastructure. Educational activities,
including implementation of STEM (Science, Technology, Engineering and Mathematics) programmes in schools.
The Company's primary focus is on 'Building India's Social Infrastructure' as part of its CSR programme which include,
amongst others, the following areas, viz.
2
Mr. M. M. Chitale
1
No.
Name of Director
SI.
Designation /Nature of
Directorship
The CSR Committee of the Board comprises of
2. Composition of CSR Committee.
Integrated Annual Report 2021-22
323
Governance, Technology and Innovation would be the Key enabling factors across all these initiatives.
Skill Development - Includes but not limited to vocational training such as skill building, computer training,
women empowerment, support to ITI's, support to specially-abled (infrastructure support and vocational training),
Construction Skills Training Centres and providing employability skills to women and youth.
Health - Due to unprecedented challenges faced by the healthcare sector posed by the spread of Covid -19, focus
and outlay on health was substantially increased. However, regular health activities including but not limited to
community health centres, mobile medical vans, dialysis centres, general and specialized health camps and outreach
programs, support to HIV/AIDS, Tuberculosis control programs continued in a restricted manner.
This is achieved through support to Balwadis and Anganwadis strengthening the in-school interventions and
providing after school study classes in the community. Ongoing community-based education programs are
significantly impacted by Covid-19 induced lockdown. Efforts are being taken to remain digitally connected to the
children, despite challenges.
Education - Includes but not limited to education infrastructure support to educational Institutions, educational
programs and nurturing talent at various levels. Promoting learning enhancement amongst children, both in schools
and in communities through interventions in pre-school education, innovative teaching methodology and training
teachers in formal schools, providing interesting "teaching learning material", with special focus on Science,
Technology Engineering and Maths (STEM) subjects.
Water and Sanitation - Includes but not limited to watershed development, access to potable water, promoting
rain water harvesting, soil and moisture conservation, enhancing ground water levels by facilitating setting up
of community-based institutions such as village development committees, self-help groups, farmer groups and
community management of water resources for improving conditions related to sanitation, health, education and
livelihoods of communities through an integrated approach.
322
Mr. R. Shankar Raman
Date: May 12, 2022
(iii) that there were no instances of significant fraud of which we have become aware.
Company Secretaries
For S. N. ANANTHASUBRAMANIAN & Co.
Date 4th May, 2022
Place: Thane
This Certificate has been issued at the request of the Company to make disclosure in its Corporate Governance Report for the
Financial Year ended 31st March, 2022.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
01-04-2022
01-03-2021
ICSI Unique Code P1991MH040400
00001871
08586766
11-07-2020
07648203
28-05-2018
01922717
01-07-2017
01252184
11-07-2020
Peer Review Cert. No. 606/2019
S. N. Ananthasubramanian
Partner
(ii) that there were no significant changes in accounting policies made during the year; and
(i) that there were no significant changes in internal controls over financial reporting during the year; and
(d) We have indicated to the Auditors and the Audit Committee:
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting. We have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the
Auditors and the Audit Committee, deficiencies, if any, in the design or operation of such internal controls of which we
are aware and steps taken or proposed to be taken for rectifying these deficiencies.
(b) There are no transactions entered into by the Company during the period which are fraudulent, illegal or in violation of
the Company's code of conduct.
(ii) these statements present a true and fair view of the Company's affairs and are in compliance with current accounting
standards, applicable laws and regulations.
(a) (i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
may be misleading;
We have reviewed the consolidated financial statements, read with the consolidated cash flow statement of Larsen & Toubro
Limited for the year ended March 31, 2022 and that to the best of our knowledge and belief, we state that;
[Issued in accordance with provisions of Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015]
Annexure to the Board Report
Sub: CEO / CFO Certificate
Dear Sirs,
To the Board of Directors of Larsen & Toubro Limited
Integrated Annual Report 2021-22
321
ICSI UDIN: F004206D000266677
FCS: 4206 | COP No. : 1774
Yours sincerely,
3
Mr. D. K. Sen
Member (Whole-time Director)
Local
Item from
the list of
Amount
(b) Details of CSR amount spent against ongoing projects for the financial year:
Nil
135.68 crore towards various activities for the
4.51 crore spent by the Company in FY 2021.
Amount Unspent
Location of the
project
Against the mandated spend of 134.05 crore, the Company spent
benefit of the community and availed set off for an excess amount of
Accordingly, the excess spend for FY 2022 is 6.14 crore.
8. (a) CSR amount spent or unspent for the financial year:
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Report
Discussion and Analysis
Integrated
Management
Total Amount Spent for the Financial Year.
SI.
area
Name of the Project
Section 135(6)
Mode of
Implementation -
Through Implementing
Agency
Mode of
Implementation -
Direct (Yes/No)
project as per
F.Y.
project
(in)
No) State District
current
Account for the
in the
Amount
transferred to
Unspent CSR
spent
Amount
allocated
for the
Project
duration
(Yes/
activities in
Schedule VII
to the Act
No.
Corporate
Overview
The Company was required to spend an amount of 129.54 crore as CSR expenditure during FY 2022.
(d) Total CSR obligation for the financial year (7a+7b-7c).
4.51 crore
Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of
the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
Board are available in the Governance section on the website of the Company. Please see the link
https://investors.larsentoubro.com/corporate-governance.aspx.
The Composition of CSR committee, CSR Policy Framework and CSR Projects approved by the
Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the
board are disclosed on the website of the company.
Mr. Sivaram Nair A acts as the Secretary of the Committee.
4.
3.
3
3
3
3
3
3
Number of meetings of CSR
Committee attended during the year
Number of meetings of CSR
Committee held during the year
Annexure to the Board Report
Chairman (Independent Director)
Member (Whole-time Director)
Impact assessment for projects concluded in FY 2019-20 was completed. The Independent auditor's report is provided on
the Company's website at https://investors.larsentoubro.com/Listing-Compliance.aspx
(in)
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate
Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any
Amount required to be setoff for the financial year,
Financial Year
324
(c) Amount required to be set off for the financial year, if any
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.
Nil
7. (a) Two percent of average net profit of the company of last three financial years as per section 135(5)
134.05 crore
The average net profit of the Company for the last three financial years is ₹6,702.59 crore
*The Company's contribution to PM CARES Fund during FY 2019-20 of 53.23 crore has not been considered as available for set-off against the
Company's CSR obligations for FY 2020-21 and FY 2021-22 considering the clarification provided by MCA vide its circular dated 20th May 2021.
6. Average net profit of the company as per section 135(5).
4.51 crore
if any (in )
Nil
4.51 crore
4.51 crore
57.74 crore
financial years (in)
53.23 crore*
Amount available for set-off from preceding
TOTAL
2020-21
2
2019-20
1
No.
SI.
¡
No
Maharashtra
Dhan
No
3,776,832
Vellore
Tamil Nadu
No
!!
CSR00000273
Awareness, Gudiyatham
20
Foundation
Action)
Of Humane
Gudiyatham
(Development
Development Programme,
Community Sanitation and
(Development
Of Humane
Action)
STEM Education Project in
22
Foundation
Action)
Of Humane
(Development
CSR00000273
Dhan
No
4,796,115
Nutrition, Gudiyatham
Vellore
Tamil Nadu
No
Women Health and Child
21
Foundation
CSR00000273
Yes
Dhan
9,243,976
Devgaon
Organization
Development Programme,
CSR00000518
Watershed
No
22,858,745
Trust
Aurangabad
No
X
Integrated Community
17
Bengal
Tamil Nadu and West
Bangalore, Chandigarh, Bhopal and
Kolkata
Maharashtra
18
Integrated Community
X
Vellore
Tamil Nadu
No
X
Integrated Community
19
Trust
Nagzari
Organization
Development Programme,
CSR00000518
Watershed
No
12,450,135
Jalna
Maharashtra
No
No
Tamil Nadu, Haryana
Chennai, Faridabad, Vadodara and
14,081,101
Dialysis Centers and
Maharashtra, Andhra
Yes
i
Support to Health and
27
West Bengal
Pradesh, Tamil Nadu
Yes
Vadodara, Navsari, Ahmedabad,
Surat, Delhi, Gorakhpur, Lucknow,
Faridabad, Adilabad, Sehore, Hamirpur
and Gadchiroli
Ankapalle, North 24 Parganas,
Unnao, Malleshwaram, Hubbali,
Belagavi, Gulbarga, Coimbatore,
Erode, Kanchipuram, Kudamkulam,
Chengelpet, Ajmer, Sundergarh,
Delhi, Gujarat,
Haryana, Himachal
Pradesh, Karnataka,
Madhya Pradesh,
Maharashtra, Orissa,
Rajasthan, Tamil
Nadu, Telangana,
Uttar Pradesh and
Generating Plants
Provision of Oxygen
238,212,459
Raigad, Pune, Kattupalli, Coimbatore,
Chennai, Surat and Vadodara
110,899,099
No
Dropping out in Pathardi
328
Trust
Children at Risk of
CSR00000156
Light Of Life
No
2,138,614
Pathardi
Maharashtra
No
Educate and Empower
28
and Gujarat
Mobile Medical Units
CSR00004501
L&T Public
Charitable Trust
Andra Pradesh,
No
i
Covid Response -
Development Programme,
CSR00000288
Seva Mandir
No
21,690,544
Rajsamand
Rajasthan
No
X
Integrated Community
23
Foundation
Hazira
and Gujarat
Urban Schools
American India CSR00001977
No
Sewantri
Madhya Pradesh,
24
¡¡
26
Development Center
20,217,900 Yes
Bondeli
Gujarat
Yes
Construction of Skill
25
Bhim
CSR00000065
Bal Raksha
Bharat
No
5,337,834
Infrastructure Support,
Rajsamand
Rajasthan
No
Enhancing Education And
Haryana, Karnataka,
Mumbai, Nagpur, Faridabad,
Orissa, Maharashtra,
ii
Support to Community
10
Balwadis
Study Centers and
Children India
Learning Centers Through
Yes Maharashtra
CSR00000158
No
7,664,772
Mumbai
Yes Maharashtra
Support to Community
9
School
Save The
Mumbai
3,222,057
No
Education
Pre-School Readiness
Mumbai
CSR00000751
Pratham
No
2,261,983
Mumbai
Yes Maharashtra
!!
Intervention through
Vulnerable Communities
Early Childhood
Urban Children from
11
CSR00000120
Angel Xpress
Foundation
Learning Centers for
Technical
For Schools
CSR00002656
St. Joseph's
Response
CSR00004043
Vidya
No
8,862,252
Delhi
Delhi
No
Covid-19 Emergency
6
Children India
Response
CSR00000158
Save The
No
1,519,749
Mumbai
Foundation
Program
7
!!
No
534,728
Mumbai
Maharashtra
Yes
ii
STEM Program In Mumbai
8
Children
Sangh
of Day Care Center for
Lokmanya Seva CSR00007632
No
2,000,000
Mumbai
Maharashtra
Yes
Repair and Renovation
27-05-2016
Initiative
Mobile Toy Van Outreach
No.
activities in
Name of the Project.
area
SI.
the list of
Location of the project.
(Yes/
Local
Annexure to the Board Report
Integrated Annual Report 2021-22
327
CSR00000826
Arpan Seva
Sansthan
No
23,249,776
Item from
Schedule VII to
No).
State
CSR00003840
Prayas Trust
No
12,421,781
Chennai, Vadodara, Sundargarh,
Tamil Nadu, Gujarat,
Yes
!!
Community Development
Activities
16
number
the Act.
Name (NGO) Registration
CSR
Mode of Implementation -
Through Implementing Agency
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
(in) (Yes/No).
District
Rajsamand
Rajasthan
No
!!
Pratham
No
1,694,880
Mumbai
Maharashtra
Yes
ii
Early Childhood
13
Foundation
CSR00001187
Children Toy
No
1,315,110
Mumbai
Yes Maharashtra
¡¡
CSR00000258
12
Intervention through
Pre-School Readiness
Bhim
and Anganwadi Centers,
Infrastructure
Improvement of Schools
(WIA) for civil work for
Installation of Radiation
Equipment and Care of
Underprivileged Patients
15
Cancer Institute CSR00007235
(WIA)
to Cancer Institute
No
7,500,000
Chennai and Kanchipuram
Tamil Nadu
Yes
i
Providing Support
14
Program
Foundation
Education
Date of Cessation
00186137
00007848
The Members of
[Pursuant to Regulation 34(3) and Schedule V Para C Clause (10) (i) of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015]
Certificate of Non-Disqualification of Directors
Annexure to the Board Report
To,
Integrated Annual Report 2021-22
319
FCS: 4206 | COP No.: 1774
ICSI UDIN: F004206D000267898
Partner
S. N. Ananthasubramanian
Peer Review Cert. No.: 606/2019
ICSI Unique Code: P1991MH040400
Company Secretaries
Date: 04th May, 2022
For S. N. ANANTHASUBRAMANIAN & Co.
Larsen & Toubro Limited
L & T House,
Ballard Estate,
Mumbai 400001.
00001514
Mr. Anilkumar Manibhai Naik
01
Date of Cessation
Date of Appointment
Director
Identification
Number (DIN)
No.
Place: Thane
Name of Director
Based on our examination as aforesaid and such other verifications carried out by us as deemed necessary and adequate
(including Directors Identification Number (DIN) status at the portal www.mca.gov.in), in our opinion and to the best of
our information and knowledge and according to the explanations provided by the Company, its officers and authorized
representatives, we hereby certify that during the Financial Year ended 31st March 2022, none of the Directors on
the Board of the Company, as listed hereunder have been debarred or disqualified from being appointed or continuing
as Directors of Companies by Securities and Exchange Board of India/ Ministry of Corporate Affairs or any such statutory
authority.
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion based on our verification.
as submitted by the Directors of Larsen & Toubro Limited ('the Company') bearing CIN: L99999MH1946PLC004768
and having its registered office at L&T House, Ballard Estate, Mumbai 400001, to the Board of Directors of the Company
('the Board') for the Financial Year 2021-22 and Financial Year 2022-23 and relevant registers, records, forms and
returns maintained by the Company and as made available to us for the purpose of issuing this Certificate in accordance
with Regulation 34(3) read with Schedule V Para C Clause 10(i) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. We have considered non-disqualification to include non-debarment by Regulatory / Statutory Authorities.
It is the responsibility of Directors to submit relevant documents with complete and accurate information in accordance with
the provisions of the Act.
ii) Disclosure of concern or interests as required under Section 184 of the Act; (hereinafter referred to as 'relevant
documents')
Declaration of non-disqualification as required under Section 164 of Companies Act, 2013 ('the Act');
i)
We have examined the following documents:
Sr.
This Certificate is addressed to and provided to the
Members of the Company solely for the purpose of
compliances with Clause 13 of the Regulations. This
Certificate should not be circulated, copied, used /
referred to for any other purpose, without our prior
written consent. Accordingly, we do not accept or
assume any liability or any duty of care of for any
other purpose or to any other party to whom it is
shown or into whose hands it may come without our
prior consent in writing.
8.
RESTRICTION ON USE
1. This Certificate is issued in accordance with the terms
of our engagement dated 07th March, 2022.
BACKGROUND
L&T House, Ballard Estate,
Larsen & Toubro Limited
The Members,
To,
[Pursuant to Regulation 13 of the Securities Exchange Board of India (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021]
2. We, Secretarial Auditor of Larsen & Toubro Limited
("the Company") pursuant to Regulation 13 of the
Securities Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations,
2021 ("the Regulations") are required to certify that,
for the Financial Year ended 31st March, 2022, the
Employees Stock Option Schemes, L&T Limited ESOP
Scheme 2003 and L&T Limited ESOP Scheme - 2006
(collectively referred to as "the Schemes") have been
implemented in accordance with the Regulations and
in accordance with the Special Resolutions passed
at the General Meeting held on 26th August, 1999
& 22nd August, 2003 and 25th August, 2006,
respectively (the "Resolutions")
Secretarial Auditor's Certificate in respect of the Implementation of
Employee Stock Option Schemes of the Company
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
Date of Appointment
LARSEN & TOUBRO
02
MANAGEMENT RESPONSIBILITY
It is the responsibility of the Management of the
Company to implement the Schemes including
designing, maintaining records and devising proper
systems to ensure compliance with the provisions of all
applicable laws and regulations and to ensure that the
systems are adequate and operate effectively.
Based on our verification of the records and
documents maintained by the Company as aforesaid
and according to the information, explanations and
written representations provided to us, we certify
that the Company has complied with the applicable
provisions of the Regulations and the Resolutions in
implementing the Schemes during the year ended
31st March 2022.
7.
CERTIFICATION
(c) Note on Accounting Treatment followed by the
Company.
(b) the Resolutions;
(a) the Schemes;
We have verified the following:
3.
6.
issued by the Institute of Companies Secretaries of
India.
Regulations, 2021 and the ICSI Auditing Standards,
We have conducted our examination and obtained the
explanations in accordance with Referencer on SEBI
(Share Based Employee Benefits and Sweat Equity)
It is our responsibility to certify whether the Company
has complied with the applicable provisions of the
Regulations and the Resolutions, during the year
ended 31st March 2022, in implementing the Schemes
on the basis of information compiled or collated by the
Management and the accounting and other relevant
supporting records and documents provided to us for
our examination.
5.
4.
AUDITOR'S RESPONSIBILITY
VERIFICATION
Mr. Mukund Manohar Chitale
CIN: L99999MH1946PLC004768
23-11-1989
06-07-2004
Statutory Financial
Reports
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
320
25-05-2016
00022065
Mr. Sanjeev Aga
13
29-01-2016
06393156
Mr. Maddur Venkata Rao Satish
Statements
Sr.
Name of Director
No.
Director
Identification
Number (DIN)
00101004
LARSEN & TOUBRO
Mr. Pramit Jhaveri
20
Mrs. Preetha Reddy
19
12
Mr. Tharayil Madhava Das
17
Mr. Hemant Bhargava
16
Mr. Jayant Damodar Patil
15
Mr. Narayanan Kumar
14
Mr. Sudhindra Vasantrao Desai
01-10-2015
18
Mr. Dip Kishore Sen
Mr. Meleveetil Damodaran
06
01-10-2011
00019798
Mr. Ramamurthi Shankar Raman
05
01-07-2011
02255382
Mr. Sekharipuram Narayanan Subrahmanyan
29-03-2022
03-07-2007
00035672
03
03554707
Mr. Subodh Kumar Bhargava
02106990
22-10-2012
04
Mr. Vikram Singh Mehta
07
00554221
Mr. Subramanian Sarma
10
01-04-2015
02949529
Mrs. Sunita Sharma
09
03-05-2021
30-05-2014
00041197
22-10-2012
11
08
Mr. Adil Siraj Zainulbhai
19-08-2015
06646490
Local
Item from
Yes
Sl.
Name (NGO) Registration
number
the list of
CSR
Mode of Implementation -
Through Implementing Agency
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
(Yes/No).
(in )
Location of the project.
LARSEN & TOUBRO
763,694
Corporate
Overview
Reports
Report
Discussion and Analysis
Statutory Financial
Integrated
Management
Yes
147,500
Medchal-Malkajgiri
Yes Telangana
area
Yes
275,941
Sonepur
Statements
Name of the Project.
108
No.
¡¡
Infrastructure
Orissa
Yes
206,500
Jhunjhunu
Rajasthan
Yes
!!
Government Schools
110
110
19
109
Development at
Infrastructure
Government Schools
Shivpuri
Madhya Pradesh
Yes
Development at
Infrastructure
107
the Act.
District
State
No).
Schedule VII to
(Yes/
activities in
Yes
Schools
!!
Infrastructure
Development (Solar Power
System) in Community
Development (Solar Power
System) at Government
Infrastructure
Schools
10
103
102
00
101
System) at Government
Development (Solar Power
Yes
178,416
Bastar
Yes Chhattisgarh
¡¡
Infrastructure
100
100
Name (NGO) Registration
number
CSR
Mode of Implementation -
Through Implementing Agency
Yes
300,000
Faridabad
Haryana
Yes
at Government Schools
Yes
Infrastructure
Development at
Government Schools
104 Infrastructure
105
105
Yes
345,572
Belagavi
Karnataka
Yes
ii
Yes
879,997
Patna
Bihar
Yes
Yes
269,800
New Delhi
!!
New Delhi
!!
!!
Yes
452,950
Satara
Yes Maharashtra
¡¡
332
Infrastructure
Development at
Government Schools
Infrastructure
Development at
Government Schools
at Government Schools
Facilities and Awareness)
Development (Wash
106
Yes
Tamil Nadu
CSR00001346
276,000
The Ability
No
1,055,401
Visakhapatnam
Andhra Pradesh
Yes
¡¡
Education Support for
118
Yes
4,476,454
Coimbatore
Tamil Nadu
Yes
¡¡
Wash Facilities for Schools
117
and Depressed
Upliftment
for Oppressed
Organisation
Initiatives for Community
Facilities and Awareness)
Community
No
2,482,043
Coimbatore
Tamil Nadu
Yes
i
CSR00007686
Water Conservation
Special Children
119
Gujarat
Surat
448,778
No
Laxi Care
CSR00011414
for Community Women
Foundation
72
Skill Building for
ii
Yes Gujarat
Surat
1,216,373
Yes
Community Women
73
Health and Hygiene
¡
Yes Gujarat
Surat
603,747
Yes
264,974
Visakhapatnam
Andhra Pradesh
Yes
iv
Maintenance of Public
People
116
16
for Rural Youth
Ranga Reddy
Telangana
Yes
ii
Skills Development
112
112
Yes
2,500,000
Pune
Maharashtra
Yes
!!
Government School
Upgradation in
Basic Infrastructure
Government School
111
Upgradation in
Yes
3,500,000
Namakkal
Tamil Nadu
Yes
¡¡
Basic Infrastructure
Government Schools
Development at
Yes
9,800,330
Yes
Training for Rural Youth,
Hyderabad
CSR00002739
TATA Strive
9,684,550
Visakhapatnam
Andhra Pradesh
Yes
¡¡
Multi Skill Training Center
115
Green Spaces
Yes
396,602
Pune
Maharashtra
Tiruvarur
Yes
Maintenance of Public
114
Schools
Programme in Government
Learning Enhancement
Yes
6,952,188
Coimbatore
Tamil Nadu
Yes
¡¡
Infrastructure and
13
113
iv
Development (Wash
Cuttack
Government Schools
Repairs to Infrastructure
84
Malabar Cancer CSR00025434
Care Society
Detection
No
974,989
Kannur
Kerala
Yes
i
Awareness and Cancer
83
Ahmedabad
Training for Rural Youth,
Yes
32,400,000
Ahmedabad
Gujarat
Yes
¡¡
Skills Development
82
Jadcherla
Training for Rural Youth,
Yes
33,662,731
Mahbubnagar
Yes Telangana
ii
Yes
Skills Development
Uttar Pradesh
1,216,000
87
Yes
34,189,274
Kanchipuram
Tamil Nadu
Yes
Yes
Yes
239,250
Gurgaon and Nuh
Haryana
Yes
!!
Yes
1,000,000
Kolkata
West Bengal
Yes
Facilities in School
Repairs to Infrastructure
Facilities in School
Repairs to Infrastructure
85
86
98
55
GB Nagar
Facilities in School
Yes
Saharanpur, Chandauli, Janupur and
81
Community
and Engagement with
2,505,976
Surat
Gujarat
Yes
!!
Providing Educational Kits
at Mora
Development Centre
67
76
Yes
804,884
Surat
Gujarat
Yes
Support to Community
75
Community
Engagement with
Yes
177,576
Surat
Yes Gujarat
¡¡
Awareness and
74
Health Awareness
Programme for Adolescent
Yes
Yes
77 Alternate Energy for
iv
Yes Gujarat
Yes
55,198
Vadodara
Yes Gujarat
ii
Awareness Programme
80
50
Classrooms in Schools
Yes
15,189,479
Surat
Gujarat
Yes
Skills Development
ii
79
Green Spaces
Yes
2,614,559
Surat
Gujarat
Yes
iv
Maintenance of Public
78
Schools
Yes
7,500,000
Surat
Providing Digital
Infrastructure
Training for Rural Youth,
88
96
96
Government Schools
Development at
Yes
979,637
Medinipur
West Bengal
Yes
ii
Infrastructure
95
at Government Schools
Facilities and Awareness
Development and Wash
Yes
2,811,411
Nabarangupr
Orissa
Yes
¡¡
Infrastructure
94
Attibelle
Institute for Rural Youth,
Yes
40,063,796
Bangalore
Karnataka
Infrastructure
Yes
¡¡
Hazaribagh
and Awareness) at
99
99
System, Wash Facilities
Development (Solar Power
Yes
497,000
Singrauli
Madhya Pradesh
Yes
Infrastructure
Schools
System) at Government
Facilities and Solar Power
96
98
Development (Wash
Yes
2,122,760
Tonk
Rajasthan
Yes
!!
Infrastructure
97
Government Schools
Development at
Yes
773,000
Yes Jharkhand
¡¡
Construction Skill Training
93
Renovation of Community
91
Facilities in School
Yes
1,069,670
Raigad
Yes Maharashtra
ii
Repairs to Infrastructure
90
Pilkhuwa
Training for Rural Youth,
Yes
37,999,053
Hapur
Uttar Pradesh
Yes
¡¡
Skills Development
89
Panvel
Training for Rural Youth,
Yes
42,612,437
Raigad
Maharashtra
Yes
¡¡
Skills Development
X
Yes Maharashtra
Raigad
1,002,113
93
Cuttack
Training for Rural Youth,
Skills Development
92
Yes
32,720,312
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
(in ) (Yes/No).
Annexure to the Board Report
Orissa
Yes
the Act.
District
State
Kanchipuram
No).
(Yes/
No.
activities in
Name of the Project.
area
SI.
the list of
Location of the project.
Local
Item from
Integrated Annual Report 2021-22
331
Center at Belpada Village
Yes
Schedule VII to
¡¡
No
71
West Bengal
Hooghly
2,200,000
Yes
Underprivileged Youth
43
Infrastructure
!!
Yes
West Bengal
Hooghly
1,000,000
Yes
44
Development Support at
School
Support to Study Centers
!!
Yes
Tamil Nadu
Chennai
3,000,000
No
Bhumi
CSR00001059
for Urban Children from
Vulnerable Communities
45
Educational Support for
Yes
¡¡
ii
42
Vulnerable Children
39
Education Support to
Yes
Gujarat
Vadodara
127,680
Yes
Vulnerable Children
40
Skills Development
ii
Yes
West Bengal
Hooghly
45,000,000
Yes
Training for Rural Youth,
Serampore
41
Providing Educational
¡¡
Yes
Orissa
Sundargarh
28,000,000
Yes
Support to Tribal
Communities
Autocad Training for
Yes
Tamil Nadu
Chennai
Yes
Tamil Nadu
Chennai
2,254,409
Yes
Yes
Tamil Nadu
Chennai
2,700,000
No
Development
United Way Of
Chennai
CSR00000572
329
Integrated Annual Report 2021-22
Item from
Local
Location of the project.
the list of
SI.
area
Name of the Project.
activities in
No.
(Yes/
Schedule VII to
No).
State
District
!!
School Infrastructure
School Infrastructure
Development
49
4,599,834
No
Vidyasagar Trust CSR00003082
Special Children
46
Support to Evening
ii
Yes
New Delhi
New Delhi
6,099,560
No
School For Children from
Seth Vidyalaya
Trust (Prayatn)
CSR00000322
CSR00002655
47
Every Child a Scientist
¡¡
Yes
Tamil Nadu
Chennai
1,909,397
No
MSSRF-MS
CSR00000470
Project
Swaminathan
Research
Foundation
48
Vulnerable Communities
the Act.
Sai Angel
572,280
(Yes/No).
Name (NGO) Registration
number
9,181,235
No
Seva Mandir
CSR00000288
Nutrition Programme,
Kumbhalgarh
30
Infrastructure Support and
ii
No
Rajasthan
Rajsamand
17,821,455
No
Seva Mandir
CSR00000288
Education Enhancement
Programme, Kumbhalghar
31
Skill Training Academy,
¡¡
Yes
Maharashtra
Mumbai
16,584,073
Yes
CSR
Madh
Mode of Implementation -
Through Implementing Agency
Location of the project.
Corporate
Overview
Management
Integrated
Statutory Financial
Discussion and Analysis
Report
Reports
Statements
LARSEN & TOUBRO
Item from
Local
the list of
Sl.
area
Name of the Project.
activities in
No.
(Yes/
Schedule VII to
No).
State
District
the Act.
29
Women Health and Child
¡
No
Rajasthan
Rajsamand
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
(in)
32
Infrastructure Support for
¡¡
Education Support to
Yes
Gujarat
Vadodara
1,169,485
No
Swami
CSR00008492
Vivekanand
Vulnerable Children
School
37
Education Support to
!!
Yes Gujarat
Vadodara
2,130,385
No
Roosevelt
CSR00020728
Vulnerable Children
School
38
38
Education Support to
ii
Yes
Gujarat
Vadodara
36
Vulnerable Children
Yes
3,748,800
Yes
Maharashtra
Mumbai
97,409
No
Community Development
L&T Community CSR00015237
Welfare
Association
33
Community Health Centre,
i
Yes
Maharashtra
Thane
43,299,550
No
Yes
བ་
34
Maintenance of Public
iv
Yes
Gujarat
Vadodara
3,517,900
Yes
Green Spaces
35
Educational Support to
Yes Haryana
Faridabad
Thane
'Aadhaar'- Skill Building
Yes
Chennai
CSR00000237
Programme
Foundation
65
Vocational Training for
ii
Yes
West Bengal
Kolkata
1,642,993
No
Cathedral Relief CSR00011146
Women
Services
66
99
Blood Donation
i
Yes
West Bengal
Kolkata
484,992
No
Association of CSR00014736
Awareness and Camp,
Voluntary Blood
Kolkata
Donor
6%9
Disha
67
No
Kolkata
62
Mobility Aids and
¡
Yes
Maharashtra
Pune
1,200,000
No
Bharat Vikash
CSR00004408
Mainstreaming
Parishad
63
Skill Development
¡¡
Yes
West Bengal
Kolkata
1,001,032
No
Anandan
CSR00012653
Programme
59
64
Skill Development
!!
Yes
West Bengal
353,600
Providing Educational Kits
¡¡
Yes
area
Name of the Project.
activities in
No.
(Yes/
120
Schedule VII to
No).
State
District
the Act.
70
HIV AIDS Awareness
¡
Yes
Gujarat
Surat
Location of the project.
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
Mode of Implementation -
Through Implementing Agency
CSR
(in )
(Yes/No).
Name (NGO)
Registration
number
876,998
Yes
Prevention and Support
System
Sl.
the list of
Local
Item from
Gujarat
Surat
9,450,970
Yes
68
Rural Health Support
Yes Gujarat
Surat
800,000
Yes
69
HIV AIDS Awareness
Prevention and Support
Yes Gujarat
Surat
Vulnerable Children
697,002
Gujarat State
Network of
CSR00011799
330
People Living
With HIV+
(Gsnp+)
Corporate
Overview
Management
Integrated
Statutory Financial
Discussion and Analysis
Report
Reports
Statements
LARSEN & TOUBRO
No
Tamil Nadu
CSR00008054
No
and Engagement with
Community
53
'Green Hands' Building
-
iv
Yes
Tamil Nadu
Chennai
282,059
Yes
Awareness For Greenery
Development in Nearby
Communities
54
54
Skill Upgradation Training
ii
Yes
Gujarat
Ahmedabad
357,007
Yes
SEWA Trust
CSR00002616
for Women Construction
Workers
55
Oxygen Concentrator
Yes
i
389,503
Tamil Nadu
Annexure to the Board Report
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
(in )
(Yes/No).
Mode of Implementation -
Through Implementing Agency
CSR
Name (NGO) Registration
number
1,020,000
No
Sri Arunodayam CSR00001030
Charitable Trust
50
Support for Special
Education for Abandoned
Children with Intellectual
Disability
51
Infrastructure Support for
i
Yes
Tamil Nadu
Chennai
774,080
No
Blood Storage
Indian Red
Cross Society
CSR00004593
52
Awareness Programme
¡¡
Yes
Chennai
Yes
Tamil Nadu
Chennai
1,046,093
Yes
for Skills Development
Training Institutes for
Rural Youth
59
Providing Skill Training to
¡¡
Yes
New Delhi
New Delhi
174,999
No
NIIT Foundation CSR00000621
Youth on Data Entry
1669
60
Blood Donation Camp
Yes
Orissa
Bhubaneswar
160,529
Yes
Support for Education to
ii
Yes
New Delhi
New Delhi
947,636
Chennai
Tamil Nadu
Yes
E-Content Development
2,500,000
No
Machines to Government
United Way Of
Chennai
CSR00000572
Hospitals, Chennai (Covid
Relief)
56
E-Content Development
ii
Yes
Tamil Nadu
Chennai
22,485,548
Adharshila
Yes
Training Institutes for
Rural Youth
57
E-Content Development
Yes
Tamil Nadu
Chennai
9,507,042
Yes
for Skills Development
Training Institutes for
Rural Youth
58
50
for Skills Development
120
Green Spaces
¡¡
Tamil Nadu
4. Primary Health Centre, Arisipalayam,
Madukkarai Block, Coimbatore,
Pradesh 470335
3. Government Hospital (Covid Care Center),
Banda Belai, Sagar, Madhya
2. Government Rajaji Hospital, Madurai,
Tamil Nadu 625020
949,760 1. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011
441,260 L&T Community Welfare Association - L & T
House, NM Marg, Ballard Estate, Mumbai,
Maharashtra - 400001
28. Women's Hospital, Gadchiroli,
Maharashtra - 442605
Tamil Nadu 607001
27. Government Head Quarters Hospital,
Railway Road, Kanchipuram,
26. BMO Civil Hospital Hamirpur, Tauni Devi,
Himachal Pradesh - 177023
24. RIMS, Adilabad, Telangana - 504001
25. COVID Hospital, Budhni, Madhya
Pradesh 466445
23. Atal Bihari Government Hospital, Haryana
- 121004
Medical College, Kunnathur Road,
Perundurai, Tamil Nadu - 638053
22. IRT Perundurai, Government Erode
West Bengal - 743263
21. State General Hospital Habra, Habra,
Annexure to the Board Report
Sr
Date of
No.
creation or
acquisition
of the capital
asset(s)
2
641032
27th October
28th March 2022
3
22nd May 2021
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
19. LG Hospital, Maninagar, Ahmedabad,
Gujarat - 380008
20. Government Hospital, Anakapalle, Andhra
Pradesh 531001
2021 to
Integrated Annual Report 2021-22
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
1. Epson L805 Printer,
Double Piston
Compressor with
accessories and
microwave oven solo.
Management
Corporate
Overview
336
4. Primary Health Centre, Arisipalayam,
Madukkarai Block, Coimbatore, Tamil
Nadu 641032
3. Government Hospital (Covid Care
Center), Banda Belai, Sagar, Madhya
Pradesh 470335
2. Government Rajaji Hospital, Madurai,
Tamil Nadu 625020
1. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011
2. MSTC, Plot No. D-11, B - Block, Auto
Nagar, Visakhapatnam, Andhra
Pradesh 530012
1. L&T Andheri Health Center, Gundavali,
Andheri East, Mumbai,
Maharashtra - 400093
28. Women's Hospital, Gadchiroli,
Maharashtra - 442605
27. Government Head Quarters Hospital,
Railway Road, Kanchipuram,
Tamil Nadu 607001
26. BMO Civil Hospital Hamirpur, Tauni
Devi, Himachal Pradesh - 177023
24. RIMS, Adilabad, Telangana - 504001
25. COVID Hospital, Budhni, Madhya
Pradesh 466445
Medical College, Kunnathur Road,
Perundurai, Tamil Nadu - 638053
23. Atal Bihari Government Hospital,
Haryana-121004
22. IRT Perundurai, Government Erode
West Bengal - 743263
21. State General Hospital Habra, Habra,
2. Haier Smart Television
(43 Inch), HP Printer
329DW, Argon
Cylinders, Oxygen
Cylinders, DA
Cylinders, Power
Hacksaw (Model:
Ashu), Double
Ended Pedestral
Grinder, Pipe Bending
Asset Name
Machine and
Block
Oxygen Concentrator(s)
(5 LPM)
Address
19. LG Hospital, Maninagar, Ahmedabad,
Gujarat - 380008
20. Government Hospital, Anakapalle,
Andhra Pradesh - 531001
Differential Chain
Discussion and Analysis
335
Sundargarh, Odisha - 770001
Asset Name
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
(in)
capital asset
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
September 2021
2021 to 27th
15th May
1
creation or
acquisition
of the capital
asset(s)
No.
Date of
Sr
EXHIBIT - B
LARSEN & TOUBRO
Statutory Financial
Reports Statements
Integrated
Report
Covid-19 Vaccination
Yes
Maharashtra
Mumbai
Total
1,000,000
238,212,459 1. SSG Hospital, Vadodara, Gujarat - 390001 Oxygen Generating
Plants
No
1,290,487,087
334
Corporate
Management
Overview
Discussion and Analysis
Project Mumbai CSR00015484
18. 100 Bed Hospital, Maurawan, Uttar
Pradesh 209821
2. MG General Hospital, Navsari, Gujarat
3. 1200 Bed Civil Hospital, Asarwa,
Ahmedabad, Gujarat - 380016
17. DCHC Government Hospital,
16. Railway Hospital, Ajmer, Rajasthan
- 305001
Hospital, Kundunkulam, Radhapuram,
Tirunelveli, Tamil Nadu - 627106
15. Chengalpattu Medical College, VOC
Nagar, Chengalpattu, Tamil Nadu
- 603001
13. Mahatma Gandhi Health Centre,
Lucknow, Uttar Pradesh - 226028
14. Government Medical College and
12. Gulbarga Institute of Medical Science,
Veeresh Nagar Cross, Sedam Road,
Behind MRMC, Kuvempu Nagar,
Gulbarga, Karnataka - 585101
9. Nirali Hospital, Navsari, Gujarat - 396463
10. Karnataka Institute of Medical Sciences,
KIMS Hospital, KIMS Campus, PB Road,
Vidya Nagar, Hubli, Karnataka - 580022
11. BIMS Hospital, Belagavi, Karnataka
- 590001
8. ESI Hospital, Singanallur, Coimbatore
- 641015
7. KC General Hospital, Bengaluru,
Karnataka 560003
6. Acharya Shree Bhikshu Hospital, Moti
Nagar, New Delhi, Delhi - 110015
5. Guru Gorak Nath Hospital, Gorakhpur,
Uttar Pradesh - 273015
4. Maharishi Valmiki Hospital, Puth Khurd
Village, New Delhi, Delhi - 110039
3. 1200 Bed Civil Hospital, Asarwa,
Ahmedabad, Gujarat - 380016
2. MG General Hospital, Navsari, Gujarat
- 396445
1. SSG Hospital, Vadodara, Gujarat
- 390001
Address
Pradesh 209821
18. 100 Bed Hospital, Maurawan, Uttar
4. Maharishi Valmiki Hospital, Puth Khurd
Village, New Delhi, Delhi - 110039
5. Guru Gorak Nath Hospital, Gorakhpur,
Uttar Pradesh - 273015
6. Acharya Shree Bhikshu Hospital, Moti
Nagar, New Delhi, Delhi - 110015
7. KC General Hospital, Bengaluru,
Karnataka 560003
8. ESI Hospital, Singanallur, Coimbatore
- 641015
9. Nirali Hospital, Navsari, Gujarat - 396463
10. Karnataka Institute of Medical Sciences,
KIMS Hospital, KIMS Campus, PB Road,
Vidya Nagar, Hubli, Karnataka - 580022
- 396445
11. BIMS Hospital, Belagavi, Karnataka
- 590001
13. Mahatma Gandhi Health Centre,
Lucknow, Uttar Pradesh - 226028
14. Government Medical College and
Hospital, Kundunkulam, Radhapuram,
Tirunelveli, Tamil Nadu - 627106
15. Chengalpattu Medical College, VOC
Nagar, Chengalpattu, Tamil Nadu
- 603001
16. Railway Hospital, Ajmer, Rajasthan
- 305001
17. DCHC Government Hospital, Sundargarh,
Odisha 770001
12. Gulbarga Institute of Medical Science,
Veeresh Nagar Cross, Sedam Road, Behind
MRMC, Kuvempu Nagar, Gulbarga,
Karnataka 585101
143
Integrated
Report
LARSEN & TOUBRO
Mobile X-Ray Units
Asset Name
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
Nadu State Branch, Red Cross Building, 32,
Montieth Road, Egmore, Chennai, Tamil
Nadu - 600008
774,080 Chairman, Indian Red Cross Society, Tamil
4. Government Higher Secondary School,
Mettukuppam, Chennai - 600097
2. Villivakkam Panchayat Union Middle
School, Poothapedu, Chennai - 600089
3. Government Girls Higher Secondary
School, Chinna Porur, Chennai - 600116
2,700,000 1. Head Teacher, Government Higher
Secondary School, Alapakkam,
Chennai 600116
3. Vidya Foundation, B-16, Panchsheel
Enclave, New Delhi - 110017
2. Forest Department, Satpura Bhawan,
Arera Hills, Bhopal, Madhya Pradesh
- 462004
(b) Samudayik Swasthya Kendra, Harsud
District, Khandwa, Madhya Pradesh
- 450116
15,733,899 1. (a) Samudayik Swasthya Kendra, Khalwa
District, Khandwa, Madhya Pradesh -
450117
Tirunelveli, Tamil Nadu - 627011
4. Government Medical College Hospital,
3. Thoothukudi Medical College Hospital,
Behind Rajaji Park, Thoothukudi, Tamil
Nadu - 628003
2. Government Medical College Hospital,
Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu - 626001
1,428,000 1. Government Rajaji Hospital, Medical
College Bus Stop, Madurai, Tamil Nadu
- 625020
1st November
2021
6
1st July 2021
10
1st May 2021
1. Force Traveller T1
Ambulance (Type B)
11
12
14th December
2021
13
17th January
2022
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
17th January
2022
8
2. Force Trax Crusier
Ambulance (AC)
(Type B)
Rain water harvesting
structures
Awareness Programme
338
Bora Girls' Primary School, Village Bora,
Hoogly, West Bengal - 712306
Serampore Girls' College, 13 T. C.
Goswami Street, Serampore, Hooghly,
West Bengal 712201
Rajyadharpur Girls High School, Village
Rajyadharpur, Serampore, Hooghly, West
Bengal - 712201
Greater Chennai Corporation, Rippon
Bulding, Chennai, Tamil Nadu - 600003
Indian Red Cross Society, Tamil Nadu
State Branch, Red Cross Building, 32,
Montieth Road, Egmore, Chennai, Tamil
Nadu 600008
4. Government Higher Secondary School,
Mettukuppam, Chennai - 600097
- 600116
3. Government Girls Higher Secondary
School, Chinna Porur, Chennai
2. Villivakkam Panchayat Union Middle
School, Poothapedu, Chennai - 600089
1. Government Higher Secondary School,
Alapakkam, Chennai - 600116
3. Vidya Foundation, B-16, Panchsheel
Enclave, New Delhi - 110017
2. Forest Department, Satpura Bhawan,
Arera Hills, Bhopal, Madhya Pradesh
- 462004
(b) Samudayik Swasthya Kendra,
Harsud District, Khandwa, Madhya
Pradesh 450116
1. (a) Samudayik Swasthya Kendra,
Khalwa District, Khandwa, Madhya
Pradesh 450117
4. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011
Deep freezer equipment
2,500,000 Commissioner, Greater Chennai Corporation, Oxygen Concentrator
Rippon Bulding, Chennai, Tamil Nadu
- 600003
162,000 The Headmistress, Rajyadharpur Girls High
School, Village Rajyadharpur, Serampore,
Hooghly, West Bengal - 712201
433,000 The Principal, Serampore Girls' College, 13
T. C. Goswami Street, Serampore, Hooghly,
West Bengal - 712201
Water purifier, ceiling
fans and almirah
3. Force Trax Cruiser
Ambulance
Smart class room set up
Village Bora, Hoogly, West Bengal - 712306
Address
1. Government Rajaji Hospital, Medical
College Bus Stop, Madurai,
Tamil Nadu 625020
2. Government Medical College Hospital,
Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu - 626001
3. Thoothukudi Medical College Hospital,
Behind Rajaji Park, Thoothukudi, Tamil
Nadu - 628003
115,000 Teacher In-charge, Bora Girls' Primary School, Computers and printer
Statutory Financial
Reports
Statements
29th May 2021
to 15th May
2021
4. Government Rajaji Hospital, Medical
College Bus Stop, Madurai,
625020
3. Military Hospital, Jutogh, Shimla,
Himachal Pradesh - 171008
Karnataka 585105
2. GIMS Hospital, Gulbarga,
Killa, Dharwad, Karnataka - 580008
9,660,000 1. District Government Hospital Dharwad, ICU Ventilator(s)
Oxygen Concentrator(s)
(10 LPM)
Asset Name
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
Oddanchatram, Tamil Nadu - 624619
12. Government Taluk Hospital,
11. Andaman and Nicobar Administration,
Secretariat, Port Blair -744101
10. Ahmedabad Municipal Corporation,
Central Medical Store, Ahmedabad,
Gujarat - 380022
9. Superintendant of Police, Tenkasi, Tamil
Nadu - 627811
8. Samudayik Swasthya Kendra, Bhim,
Rajasthan - 305921
7. Chitaguppi Hospital, Lamington Road,
Hubli, Karnataka - 580020
Corporation Limited, Hoodi, Bengaluru,
Karnataka 560048
Sr
Date of
No.
4
31st May 2021
5
Tamil Nadu
14th May 2021
15,480,950 1. Government Medical College Hospital,
Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu - 626001
2. Government Thoothukudi Medical
College Hospital, Thoothukudi, Tamil
Nadu 628008
3. Samudayik Swasthya Kendra,
Khargapur, Tikamgarh, Madhya
Pradesh 472115
4. Samudayik Swasthya Kendra, Palera,
Tikamgarh, Madhya Pradesh - 472221
5. Chitaguppi Hospital, Lamington Road,
Hubli, Karnataka - 580020
6. Karnataka Power Transmission
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
7
5. Government Medical College Hospital,
Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu - 626001
7. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011
6
14th May 2021
creation or
acquisition
of the capital
asset(s)
No.
Date of
Sr
Annexure to the Board Report
Integrated Annual Report 2021-22
337
7. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011
6. Thoothukudi Medical College Hospital,
Behind Rajaji Park, Thoothukudi, Tamil
Nadu 628003
5. Government Medical College Hospital,
Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu - 626001
Tamil Nadu 625020
4. Government Rajaji Hospital, Medical
College Bus Stop, Madurai,
3. Military Hospital, Jutogh, Shimla,
Himachal Pradesh - 171008
1. District Government Hospital Dharwad,
Killa, Dharwad, Karnataka - 580008
2. GIMS Hospital, Gulbarga,
Karnataka 585105
Oddanchatram, Tamil Nadu - 624619
Address
1. Government Medical College Hospital,
Ramamoorthy Road, Annanagar,
Virudhunagar Tamil Nadu - 626001
2. Government Thoothukudi Medical
College Hospital, Thoothukudi, Tamil
Nadu 628008
3. Samudayik Swasthya Kendra,
Khargapur, Tikamgarh, Madhya
Pradesh 472115
4. Samudayik Swasthya Kendra, Palera,
Tikamgarh, Madhya Pradesh - 472221
5. Chitaguppi Hospital, Lamington Road,
Hubli, Karnataka - 580020
6. Thoothukudi Medical College Hospital,
Behind Rajaji Park, Thoothukudi, Tamil
Nadu - 628003
6. Karnataka Power Transmission
Corporation Limited, Hoodi, Bengaluru,
Karnataka 560048
7. Chitaguppi Hospital, Lamington Road,
Hubli, Karnataka - 580020
8. Samudayik Swasthya Kendra, Bhim,
Rajasthan 305921
9. Superintendant of Police, Tenkasi, Tamil
Nadu - 627811
10. Ahmedabad Municipal Corporation,
Central Medical Store, Ahmedabad,
Gujarat - 380022
11. Andaman and Nicobar Administration,
Secretariat, Port Blair -744101
12. Government Taluk Hospital,
-
Unit
creation or
acquisition
of the capital
asset(s)
PSA Oxygen Generation
Tamil Nadu
Yes
!!
Infrastructure support to
school
126
number
the Act.
Name (NGO) Registration
CSR
Mode of Implementation -
Through Implementing Agency
Amount spent
Mode of
in the current Implementa
financial Year tion - Direct
(Yes/No).
(in )
District
State
Tiruvallur
No).
(Yes/
No.
activities in
Name of the Project.
area
Sl.
the list of
Location of the project.
Local
Item from
Annexure to the Board Report
Integrated Annual Report 2021-22
333
children
Schedule VII to
395,992
Yes
127
Maharashtra
Yes
¡
Early dignostic career
19
129
programme
Foundation
CSR00007444
Swasth
No
1,500,000
Mumbai
Maharashtra
Yes
i
Primary health care
127
Health and Nutrition at
i
Yes
Maharashtra
Thane
Education support for
2,000,000
Children of the
CSR00003131
Child Care Centre
World India
Trust
128
No
CSR00000742
VYOM
No
Foundation
Education
CSR00000258
Pratham
No
3,500,000
Vadodara
Gujarat
Yes
ii
Education Development
Programme, Vadodara
122
123
CSR00000751
Pratham
Mumbai
Education
Initiatives
No
4,000,000
and Tamil Nadu
Yes
Tamil Nadu
Coimbatore
45,770
Yes
123
121
and Engagement with
Community
Education Development
Programme
!!
Yes Maharashtra
Mumbai
121
Mumbai
123
¡¡
500,000
Vadodara
Gujarat
Yes
¡¡
School on Wheels
125
15
Kicks', Mumbai
for children 'Just for
Foundation
CSR00002852
Pragatee
No
4,500,000
Mumbai and Chennai
Maharashtra and
Tamil Nadu
Yes
Gujarat
Vadodara
1,466,890
No
American India CSR00001977
STEM education project in
urban schools
124
224
Personality development
¡¡
Yes
and life skills programme
Foundation
2,000,000
NO
Prafulta
Yes
Infrastructure for COVID
139
Yes
509,999
Tiruvallur
Tamil Nadu
Yes
!!
Infrastructure support for
skilling
138
Group-AWAG
Women's Action
Programme
CSR00000709
Ahmedabad
No
Plastic Recyclothon
iv
Yes
Maharashtra
Mumbai
2,000,000
Punjab, Bihar and
No
Village Development
¡¡
Yes
Gujarat
Vadodara
3,000,000
Project Mumbai CSR00015484
13333
Bathinda, Begusarai and Surat
Yes
Yes
No
30,948,356
Surat, Barmer and Tiruvallur
Gujarat, Rajasthan
Yes
Oxygen Augmentation -
142
Gujarat
support
Yes
3,581,298
Tiruvallur and Surat
Tamil Nadu and
Yes
Health infrastructure
141
relief
Gujarat
140
140
Oxygen Augmentation -
i
5,626,319
Yes
Tiruvallur
549,779
Yes
PSA Oxygen Unit Civil and
electric work
141
Tamil Nadu
facilities
i
1,086,721
Maharashtra
6,000,000
No
Aga Khan
CSR00001277
for water and sanitation
Yes
Program
132
132
Village Development
X
Yes
Gujarat
Agnecy For
Habitat India
Vadodara
X
131
CSR00007755
guidance for school
Yes
children
130
Infrastructure support for
Community development
i
Tamil Nadu
Tiruvallur
1,940,309
Yes
PHC, Minjur
131
Yes
3,576,000
Palghar
Tamil Nadu
Tiruvallur
No
Yes
i
Providing drinking water
135
135
Alva village
Yes
Vadodara
Gujarat
Yes
iv
Wastewater Treatment,
134
4,530,000
Arpan Seva
Sansthan
VYOM
CSR00000742
CSR00000826
133
133
Water Management
X
Program
Rajasthan
Barmer
4,324,530 No
Initiatives
Yes
Management
Corporate
Overview
340
23. L. D. Engineering College, 120, Circular
Road, University Area, Ahmedabad,
Gujarat - 380015
22. Government Girls School, Pali, Nana,
Rajasthan
Gandevi, Navsari, Gujarat - 396370
21. Lok Bharti School, Opposite Terapanth
Bhavan, Inside Ashok Pan Street, City
light Road, Surat, Gujarat - 395007
20. Gandhighar, Kaccholi, Amalsad,
18. Puni Aashramshala, Puni, Palsana,
Surat, Gujarat 394352
17. Timba Aashramshala, Timba,
Chhaprabhatha Road, Tadwadi, Surat,
Gujarat - 394520
15. L. D. High School, Patelnagar, Plot No.
9, Station Road, Raj Nagar, Sachin,
Surat, Gujarat 394230
16. Vaghecha Ashram Shala, Vaghecha,
Near Shiv Mandir, Vaghecha Kadod,
Bardoli, Surat, Gujarat - 394355
14. MSV, Olpad, Karanj Road, Surat,
Gujarat - 394540
-
Discussion and Analysis
19. Amalsadi Aashram Shala, Amalsadi,
Palsana, Surat, Gujarat - 394350
Integrated
Report
Asset Name
LARSEN & TOUBRO
Education Software
13. MRC High School, Dihen, Olpad, Surat,
Gujarat - 395005
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
4,059,746 1. MSV, Olpad, Karanj Road, Olpad, Surat,
Gujarat - 394540
(in )
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
Statutory Financial
Reports
Statements
March 2022
- Mynet School by
creation or
acquisition
of the capital
asset(s)
16
No.
Date of
Sr
26th August
2021 to 7th
11. Sarvodaya Vidhyalaya, Segvachama,
Olpad, Surat, Gujarat - 395009
12. Dandi Road, Lavachha, Olpad, Surat,
Gujarat - 394540
339
7. Dhansher Primary School, Dhanser,
Olpad, Surat, Gujarat - 395005
8. Tena ni Rang Primary School, Tena ni
Rang, Olpad, Surat, Gujarat - 395005
9. Navchetan Vidhyalay, Junagam, Suvali,
Choryasi, Surat, Gujarat - 394510
8. Tena ni Rang Primary School, Tena ni
Rang, Olpad, Surat, Gujarat - 395005
7. Dhansher Primary School, Dhanser, Olpad,
Surat, Gujarat 395005
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
creation or
acquisition
of the capital
asset(s)
No.
10. Sharda Vidhyalaya, Irchhapor,
Second Bus Stop, Choryasi, Surat,
Gujarat - 394510
Date of
Annexure to the Board Report
Integrated Annual Report 2021-22
Gujarat - 394517
2. Z.M. Patel High school, Lavaccha Village, Mediapro
Dandi Road, Olpad, Surat,
6. Mor Tunda Primary School, Mor Tunda
Village, Olpad, Surat, Gujarat - 394530
5. Kudiyana Primary School, Kudiyana
Village, Olpad, Surat, Gujarat - 394540
348
11. Sarvodaya Vidhyalaya, Segvachama,
Olpad, Surat, Gujarat - 395009
12. Dandi Road, Lavachha, Olpad, Surat,
Gujarat - 394540
13. MRC High School, Dihen, Olpad, Surat,
Gujarat - 395005
Address
Asset Name
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
Road, University Area, Ahmedabad,
Gujarat - 380015
23. L. D. Engineering College, 120, Circular
22. Government Girls School, Pali, Nana,
Rajasthan
21. Lok Bharti School, Opposite Terapanth
Bhavan, Inside Ashok Pan Street, City light
Road, Surat, Gujarat - 395007
20. Gandhighar, Kaccholi, Amalsad, Gandevi,
Navsari, Gujarat 396370
19. Amalsadi Aashram Shala, Amalsadi,
Palsana, Surat, Gujarat - 394350
18. Puni Aashramshala, Puni, Palsana, Surat,
Gujarat - 394352
Chhaprabhatha Road, Tadwadi, Surat,
Gujarat - 394520
17. Timba Aashramshala, Timba,
16. Vaghecha Ashram Shala, Vaghecha, Near
Shiv Mandir, Vaghecha Kadod, Bardoli,
Surat, Gujarat 394355
15. L. D. High School, Patelnagar, Plot No. 9,
Station Road, Raj Nagar, Sachin, Surat,
Gujarat - 394230
14. MSV, Olpad, Karanj Road, Surat, Gujarat
- 394540
9. Navchetan Vidhyalay, Junagam, Suvali,
Choryasi, Surat, Gujarat - 394510
10. Sharda Vidhyalaya, Irchhapor,
Second Bus Stop, Choryasi, Surat,
Gujarat - 394510
Gujarat - 394540
32. Asharam Shala, Village - Limdha, Mandvi,
Surat, Gujarat 394440
Shiv Mandir, Vaghecha Kadod, Bardoli,
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
creation or
acquisition
of the capital
asset(s)
No.
Date of
Sr
Annexure to the Board Report
21. Shree A.V.T Saraswati Vidhyalaya,
Vadadla, Aerthan Village, Palsana, Surat,
Gujarat - 394317
Integrated Annual Report 2021-22
20. Shree Shidhh Shomeswar Vidhyalay,
Saras, Olpad, Surat, Gujarat - 394540
19. Shree JR Patel Takarma Vibhag
Madhyamik Shala, Takaram, Olpad,
Surat, Gujarat 394540
18. R N Naik High School, Udhna, 214,
Ranchod Nagar, Opposite City
Shopping Centre, Udhna, Surat,
Gujarat - 934210
17. Nav Chetan Vidhyalaya, Junagam,
Hazira Road, Choryashi, Surat,
Gujarat - 394510
16. L. D. High School, Patelnagar, Plot No.
9, Station Road, Raj Nagar, Sachin,
Surat, Gujarat 394230
-
341
22. Suvali Primary School, Suvali, Choryashi,
Surat, Gujarat 394517
23. Talad High School, Olpad, Surat,
36. Mandroi Primary School, Mandroi, Olpad,
Surat, Gujarat 394540
4. Damka Primary School, Damka, Hazira
Road, Choryashi, Surat,
35. Bhatgam Primary School, Bhatgam,Olpad,
Surat, Gujarat 394540
34. Junagam Primary School, Junagam,
Hazira Road, Choryashi, Surat,
Gujarat - 394510
33. Mor High School, Village - Mor, Olpad,
Surat, Gujarat 394530
31. Asharam Shala, Village - Makanjar,
Mandvi, Surat, Gujarat - 394160
30. Asharam Shala, Village - Sathvav, Mandvi,
Surat, Gujarat 394160
Gujarat - 394445
29. Asharam Shala, Village - Bilvan,
Umarpada, Mandvi, Surat,
28. Gandhighar, Kaccholi, Amalsad, Gandevi,
Navsari, Gujarat- 396370
27. Pariya High School, Pardi, Udwada,
Valsad, Gujarat 396180
26. Lok Bharti School, Opposite Terapanth
Bhavan, Inside Ashok Pan Street, City light
Road, Surat, Gujarat - 395007
25. Mayur Dhwaj Vidhaylaya, Mora Village,
Near Gram Panchayat, Choryashi, Surat,
Gujarat - 394510
24. Kudiyana Primary School, Kudiyana
Village, Kudiyana, Olpad, Surat,
Gujarat - 394540
Gujarat - 394540
15. Shree Dayalji Kasanji Bhatarkar
Vidhyasankul, Shivani Park, Althan,
Surat, Gujarat 395017
3. Vaghecha Ashram Shala, Vaghecha, Near
14. Jawahar Vidhyalyay, Saniya Kande,
Choryashi, Surat, Gujarat - 394210
Bhadol, Olpad, Surat, Gujarat - 394530
11. MRC High School, Dihen, Olpad, Surat,
Gujarat - 395005
15. Shree Dayalji Kasanji Bhatarkar
14. Jawahar Vidhyalyay, Saniya Kande,
Choryashi, Surat, Gujarat - 394210
13. Sondha Meetha Aashramshala,
Sonda Meetha, Olpad, Surat,
Gujarat - 394540
12. Barbodhan Primary School, Barbodhan,
Olpad, Surat, Gujarat - 395005
11. MRC High School, Dihen, Olpad, Surat,
Gujarat - 395005
10. Sanskar Bharti Vidhyalaya, Village -
Bhadol, Olpad, Surat, Gujarat - 394530
Vidhyasankul, Shivani Park, Althan, Surat,
Gujarat - 395017
9. Asnaad High School, Asnaad, Olpad,
Surat, Gujarat 394540
7. Bhandut Primary School, Bhandut, Olpad,
Surat, Gujarat 395005
6. Tena ni Rang Primary School, Tena ni
Rang, Olpad, Surat, Gujarat - 395005
5. Dhansher Primary School, Dhanser, Olpad,
Surat, Gujarat - 395005
4. Sharda Vidyalaya Ichhapore, Near 2nd
Bus Stop, Hazira Road, Ichhapore, Surat,
Gujarat - 394510
-
Surat, Gujarat 394355
8. Lavachha Primary School, Lavaccha
Village, Dandi Road, Olpad, Surat,
Gujarat - 394540
16. L. D. High School, Patelnagar, Plot No. 9,
Station Road, Raj Nagar, Sachin, Surat,
Gujarat - 394230
17. Nav Chetan Vidhyalaya, Junagam,
Hazira Road, Choryashi, Surat,
Gujarat - 394510
18. R N Naik High School, Udhna,
214, Ranchod Nagar, Opposite City
Shopping Centre, Udhna, Surat,
Gujarat - 934210
10. Sanskar Bharti Vidhyalaya, Village -
-
9. Asnaad High School, Asnaad, Olpad,
Surat, Gujarat 394540
8. Lavachha Primary School, Lavaccha
Village, Dandi Road, Olpad, Surat,
Gujarat - 394540
6. Tena ni Rang Primary School, Tena ni
Rang, Olpad, Surat, Gujarat - 395005
7. Bhandut Primary School, Bhandut,
Olpad, Surat, Gujarat - 395005
5. Dhansher Primary School, Dhanser,
Olpad, Surat, Gujarat - 395005
-
4. Sharda Vidyalaya Ichhapore, Near 2nd
Bus Stop, Hazira Road, Ichhapore,
Surat, Gujarat 394510
3. Vaghecha Ashram Shala, Vaghecha,
Near Shiv Mandir, Vaghecha Kadod,
Bardoli, Surat, Gujarat - 394355
2. Z.M. Patel High school, Lavaccha
Village, Dandi Road, Olpad, Surat,
Gujarat - 394540
1. MSV, Olpad, Karanj Road, Olpad, Surat,
Gujarat - 394540
Address
Saras, Olpad, Surat, Gujarat - 394540
20. Shree Shidhh Shomeswar Vidhyalay,
19. Shree JR Patel Takarma Vibhag
Madhyamik Shala, Takaram, Olpad, Surat,
Gujarat - 394540
12. Barbodhan Primary School, Barbodhan,
Olpad, Surat, Gujarat - 395005
13. Sondha Meetha Aashramshala,
Sonda Meetha, Olpad, Surat,
Gujarat - 394540
3. Mora Primary School, Mora Village,
Near Gram Panchayat, Choryashi,
Surat, Gujarat 394510
(b) Government Primary School,
Shobhawato Ki Bhagal, Gram
Surat, Gujarat 394510
27
7th March 2022
60,000 Zilha Parishad School, Ajnup, Shahapur,
Thane, Maharashtra
Water tank
28
7th March 2022
Construction of shed
604,000 Swami Vivekanand Adivasi Madhyamik
29
29
29th November
2021 to 12th
March 2022
35,620 1. Government Primary School, Mandiakudar 1. Almirah
Sundargarh, Odisha
2. Table and chairs
Ashram School, Chindhyachi Wadi, Post
Vashala, Shahapur, Thane, Maharashtra
Zilha Parishad School, Ajnup, Shahapur,
Thane, Maharashtra
2. Chasole High School, Chasole, Murbad,
Thane, Maharashtra
2. Chasole High School, Chasole, Murbad,
Thane, Maharashtra
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
Asset Name
Address
Solar panel with battery Purva Madyamik Vidyalay, Bolthakaram,
Amarwar, Duddhi, Sonbhadra, Uttar
Pradesh
Toilet blocks and desks
Government Middle School, Harnichak,
Beur, Anishabad, Patna, Bihar - 800002
25
20th January
2022
879,997 District Education Officer, Patna, Koiritola,
Rajendra Nagar, Near Moinul Haq Stadium
Patna, Bihar 800004
46
26
7th March 2022
200,000 1. Krushi Tantra Vidyalaya, Vare, Karjat,
Maharashtra
Borewell and water tank
1. Krushi Tantra Vidyalaya, Vare, Karjat,
Maharashtra
30
167,000 Purva Madyamik Vidyalay, Bolthakaram,
Amarwar, Duddhi, Sonbhadra, Uttar Pradesh
30
31
1. Government Primary School,
Mandiakudar, Sundargarh, Odisha
2. (a) Government UP School,
Badnuagaon, Sundargarh, Odisha
(b) Government Primary School,
Kadambahal, PO - Kansbahal,
Sundargarh, Odisha
1. Upper Primary School, Dasana Ki
Bhagal, Majhera Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321
2. (a) Government Primary School,
Rodh Ka Guda, Sukhar Panchayat,
Antaliya Zone, Kumbhalgarh Block,
Rajsamand, Rajasthan - 313333
Panchayat Antaliya, Kumbhalgarh
Block, Rajsamand,
Swami Vivekanand Adivasi Madhyamik
Ashram School, Chindhyachi Wadi, Post
Vashala, Shahapur, Thane, Maharashtra
Rajasthan 313334
-
2. Government Primary School, Beed Ki
Bhagal, Gawar Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
3. Upper Primary School, Aret Ki Bhagal,
Majhera Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
-
37. Karamla Primary School, Karamla, Olpad,
Surat, Gujarat 394130
1. Upper Primary School, Aret Ki Bhagal,
Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
tank and solar pumping
system
Tube well, water storage
2. Resource room with
furniture
10th March 2022
2. (a) Government UP School, Badnuagaon,
Sundargarh, Odisha
(b) Government Primary School,
Kadambahal, PO - Kansbahal,
Sundargarh, Odisha
2,952,381 1. Upper Primary School, Dasana Ki Bhagal,
Majhera Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321
2. (a) Government Primary School, Rodh
Ka Guda, Sukhar Panchayat, Antaliya
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
(b) Government Primary School,
Shobhawato Ki Bhagal, Gram
Panchayat Antaliya, Kumbhalgarh
Block, Rajsamand, Rajasthan - 313334
3,886,504 1. Upper Primary School, Aret Ki Bhagal,
Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325
2. Government Primary School, Beed Ki
Bhagal, Gawar Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
3. Upper Primary School, Aret Ki Bhagal,
Majhera Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
1. Resource room
with furniture and
projector screens
10th March 2022
-
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
24
2. Sanskar Bharti Vidhyalaya Bhadol,
Surat, Gujarat 394230
1. L. D. High School, Patelnagar, Plot No.
9, Station Road, Raj Nagar, Sachin,
Address
Solar Power Generation
Systems
Asset Name
Bhadol, Olpad, Surat, Gujarat - 394540
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
5. Kudiyana Primary School, Kudiyana
Village, Olpad, Surat, Gujarat - 394540
4. Damka Primary School, Damka,
Hazira Road, Choryashi, Surat,
Gujarat - 394517
Near Gram Panchayat, Choryashi, Surat,
Gujarat - 394510
3. Mora Primary School, Mora Village,
2. Mayur Dhwaj Vidhaylaya, Mora Village,
Near Gram Panchayat, Choryashi, Surat,
Gujarat - 394510
10,000,000 1. Ambetha Primary School, Ambhetha,
Olpad, Surat, Gujarat - 395005
6. Mor Tunda Primary School, Mor Tunda
Village, Olpad, Surat, Gujarat - 394530
3. Navjivan Vidhyalaya, Karanj, Olpad,
Surat, Gujarat 394530
4. Gyandeep Vidhyalaya, Abhwa, Surat,
Gujarat - 395007
5. Mor High School, Mor, Olpad, Surat,
Gujarat - 394530
Near Gram Panchayat, Choryashi,
2. Mayur Dhwaj Vidhaylaya, Mora Village,
Olpad, Surat, Gujarat - 395005
Digital System
Interactive Flat Panel (IFP) 1. Ambetha Primary School, Ambhetha,
13. Aashram Shala Sonvada, Fakira Faliya
via Dungri, Sonvada, Valsad,
Gujarat - 396375
12. Aashram Shala Karambela, Karambela,
Umergam, Valsad, Gujarat - 396105
11. Aashram Shala Kalai, Kalai, Umergam,
Valsad, Gujarat 396105
10. Aashram Shala Tejlav, Tejlav, Chikhli,
Navsari, Gujarat 396521
9. Aashram Shala Ajarai, Ajarai, Gandevi,
Navsari, Gujarat - 396360
Gujarat - 394540
Olpad, Hathisa, Block No. 233, Near
Government ITI, Surat,
8. Arts and Commerce College,
7. Sharda Vidyalaya Ichhapore, Near 2nd
Bus Stop, Hazira Road, Ichhapore,
Surat, Gujarat 394510
6. J. R. Patel Takarama High School,
Takarama, Olpad, Surat,
Gujarat - 394540
13. Aashram Shala Sonvada, Fakira Faliya via
Dungri, Sonvada, Valsad,
Gujarat - 396375
11th November
2021
12. Aashram Shala Karambela, Karambela,
Umergam, Valsad, Gujarat - 396105
10. Aashram Shala Tejlav, Tejlav, Chikhli,
Navsari, Gujarat-396521
No.
Date of
Sr
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Integrated
Report
14
Discussion and Analysis
Integrated Annual Report 2021-22
Annexure to the Board Report
Sr
Date of
No.
creation or
acquisition
of the capital
asset(s)
347
creation or
acquisition
of the capital
asset(s)
17th February
2022 to 19th
March 2022
15
9. Aashram Shala Ajarai, Ajarai, Gandevi,
Navsari, Gujarat - 396360
Gujarat - 394540
Near Government ITI, Surat,
8. Arts and Commerce College, Olpad,
Hathisa, Block No. 233,
7. Sharda Vidyalaya Ichhapore, Near 2nd
Bus Stop, Hazira Road, Ichhapore, Surat,
Gujarat - 394510
Gujarat - 394540
6. J. R. Patel Takarama High School,
Takarama, Olpad, Surat,
5. Mor High School, Mor, Olpad, Surat,
Gujarat - 394530
4. Gyandeep Vidhyalaya, Abhwa, Surat,
Gujarat - 395007
3. Navjivan Vidhyalaya, Karanj, Olpad, Surat,
Gujarat - 394530
2. Sanskar Bharti Vidhyalaya Bhadol, Bhadol,
Olpad, Surat, Gujarat - 394540
6,490,645 1. L. D. High School, Patelnagar, Plot No. 9,
Station Road, Raj Nagar, Sachin, Surat,
Gujarat - 394230
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in )
to 14th February
2022
29th June 2021
11. Aashram Shala Kalai, Kalai, Umergam,
Valsad, Gujarat 396105
38. The Varad Sarvjanik High School,
Rayam, Bardoli, Surat,
Sr
39. PKD Vidhyalaya, Atar, Valsad,
22. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325
Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
21. Upper Primary School, Hatai Ki Bhagal,
20. Upper Primary School, Dasana Ki Bhagal,
Majhera Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321
19. Government Primary School, Beed Ki
Bhagal, Gawar Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313333
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
23. Upper Primary School, Rati Talai,
Antaliya Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313334
21st September
2021 to 24th
March 2022
4th August 2021
21
creation or
acquisition
of the capital
asset(s)
No.
Date of
Sr
22
24. Government Primary School, Rod Ka
Guda, Sukhar Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
36,409 Head Teacher, Narayanpur Primary School,
PO Ganja Narayanpur, Purba Medinipur,
West Bengal - 721648
2,347,840 1. Benabad Junior High School, Benabad,
Mejhia, Bankura, West Bengal - 722143
2. Pairasole Primary School, Pairasole,
Mejhia, Bankura, West Bengal - 722143
3. Benabad Primary School, Benabad,
Mejhia, Bankura, West Bengal - 722143
4. Natshala Primary School, Benabad,
Bankura, West Bengal - 722143
5. Maraya Primary School, Amarkanan,
Bankura, West Bengal - 722133
22. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan-313325
21. Upper Primary School, Hatai Ki Bhagal,
Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
Bhagal, Majhera Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313321
20. Upper Primary School, Dasana Ki
19. Government Primary School, Beed Ki
Bhagal, Gawar Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
Address
Benches and desks
Desktop
Gujarat - 394355
Asset Name
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
9. Government N.U.P. School, Dhanghara,
Tusura, Balangir, Odisha - 767030
8. Government Nodal Upper Primary School,
Bishipada, Block - Ulunda, Subaranapur,
Odisha 767062
7. Office of the Head master, Government
Sr. Primary School, Nokhadaiya, Kolayat,
Bikaner, Rajasthan - 334001
6. Mukundapur Thakamoni High School,
Durlavpur, Mejhia, Bankura,
West Bengal -722133
Annexure to the Board Report
23. Upper Primary School, Rati Talai,
Antaliya Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313334
Integrated Annual Report 2021-22
18. Upper Primary School, Aret Ki Bhagal,
Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325
3. Shree Jagannath High School, Sagada,
Boudh, Odisha - 762016
1. Government U.P. School, Dangariguda,
Koksara, Kalahandi, Odisha - 766017
2. M. L. High School, Attabira, Lakhnapur,
Jharsuguda, Odisha - 768027
Address
Toilet blocks
Asset Name
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
4. Bidyabhar Satrujit Bidyapitha, Sagar,
Cuttack, Odisha - 754037
18. Upper Primary School, Aret Ki Bhagal,
Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325
17. Government Urdu Higher Primary School,
Veerabhadra Nagar, Belagavi,
16. Government Girls Senior Secondary
School, NIT 3, Faridabad,
Haryana-121001
Madhya Pradesh - 473446
15. Government M. S. Hatkapura School,
Ashoknagar, Rajghat,
14. Rajkiya Madhyamik Vidyalaya, Krishna
Nagar (Village Kishanpura), RIICO Road,
Bharatpur, Rajasthan - 321001
13. Principal, Government Secondary
School, Potaliya Bada, Kushalgarh pkg-3,
Rajasthan 327801
Karnataka 500016.
5. Darlimunda High School, At PO
Darlimunda, Nuapada, Odisha - 766105
6. Daijmahul Primary School, Karamdihi,
Sundargarh, Odisha - 770002
7. Mangalchak Primary School,
17. Government Urdu Higher Primary
School, Veerabhadra Nagar, Belagavi,
Karnataka 500016.
-
Haryana 121001
16. Government Girls Senior Secondary
School, NIT 3, Faridabad,
Madhya Pradesh - 473446
15. Government M. S. Hatkapura School,
Ashoknagar, Rajghat,
14. Rajkiya Madhyamik Vidyalaya, Krishna
Nagar (Village Kishanpura), RIICO Road,
Bharatpur, Rajasthan - 321001
13. Government Secondary School, Potaliya
Bada, Kushalgarh pkg-3,
Rajasthan -327801
11. Government Kasturba Ghandhi Girls
Residential School, Chhoti Sarwa,
Kushalgarh pkg-1, Rajasthan - 327602
12. Government Higher Secondary School,
Dungra Bada, Sajjangarh pkg-2,
Rajasthan 327604
-
10. Government Upper Primary School,
Village-Gandhigram-1, Deoli, Tonk,
Rajasthan 304804
9. Amritnagar High School, Amritnagar,
Hazaribagh, Jharkhand - 825301
PS - Nandigram, Purba Medinipur, West
Bengal - 721650
8. Khodhambari Union B.P.H.S School,
Khodhambari, Nandigram Block - 2,
PO - Terapekhia, Nandigram, Purba
Medinipur, West Bengal - 721656
345
11. Principal, Government Kasturba Ghandhi
Girls Residential School, Chhoti Sarwa,
Kushalgarh pkg-1, Rajasthan - 327602
12. Principal, Government Higher Secondary
School, Dungra Bada, Sajjangarh pkg-2,
Rajasthan -327604
24. Government Primary School, Rod Ka
Guda, Sukhar Panchayat, Antaliya
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
Narayanpur Primary School, PO - Ganja
Narayanpur, Purba Medinipur, West Bengal
- 721648
Satanwada, Shivpuri, Madhya Pradesh
12. Government High School, Satanwada,
Shivpuri, Madhya Pradesh
11. Government Madhyamik School,
10. Zilla Parishad High School, Neredmet,
Malkajgiri Madal, Medchal,
Hyderabad-500056
Address
Solar lights
Asset Name
13. Government Primary School,
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
4. Government of NCT of Delhi, Plot No 7,
Kh No. 240, B Block, Inder Enclave,
Near Nitari Pulia, Kirari Suleman Nagar,
Delhi 110086
3. Government Ashram School, Rati Kasa,
Surya Nagar, Vikramgarh, Palghar,
Maharashtra - 401609
2. Surpunch of Village Patelpara, Near
Bacheli, Dantewada District,
Chhattisgarh - 494553
Marg, Opposite Hotel Meera, Madhuban,
Udaipur, Rajasthan - 313001
1,149,486 1. Principal, Meera Girls College, Meera
16th September
2021
5. Bhikusa High school, Sinnar, Nasik,
Maharashtra - 422103
Malagaon, Satwas, Dewas, Madhya
Pradesh
14. Government Sr. Secondary School
Hamiri, Kalan, Jhunjhunu,
Rajasthan 333001
-
5. Bhikusa High school, Sinnar, Nasik,
Maharashtra - 422103
Corporate
Overview
7, Kh No. 240, B - Block, Inder Enclave,
Near Nitari Pulia, Kirari Suleman Nagar,
Delhi - 110086
4. Government of NCT of Delhi, Plot No
3. Government Ashram School, Rati Kasa,
Surya Nagar, Vikramgarh, Palghar,
Maharashtra - 401609
Chhattisgarh-494553
2. Village Patel para, Near Bacheli,
Dantewada District,
1. Meera Girls College, Meera Marg,
Opposite Hotel Meera, Madhuban,
Udaipur, Rajasthan 313001
Kila Kumbhalgarh, Gawar Panchayat,
Kelwara Zone, Kumbhalgarh Block,
Rajsamand, Rajasthan - 313333
21. Mahesh Shri Ramakrishna Ashram, 40
Ramakrishna Road, PO Rishra, Hooghly,
West Bengal 712248
20. Government Upper Primary School,
19. Mission Primary School, Kalodihi,
Sundargarh, Odisha
18. Government Primary School,
Gowalapara, PO - Kansbahal,
Sundargarh, Odisha
17. Government Primary School,
Ranibandhtola, PO - Sagjore,
Sundargarh, Odisha
16. Government Primary School,
Bhagatpara, PO - Kansbahal,
Sundargarh, Odisha
15. Government UP School, Kansbahal,
Sundargarh, Odisha
23
-
21. The Secretary, Mahesh Shri Ramakrishna
Ashram, 40 Ramakrishna Road, PO Rishra,
Hooghly, West Bengal - 712248
19. Mission Primary School, Kalodihi,
Sundargarh, Odisha
Integrated
Discussion and Analysis
Management
Corporate
Overview
346
9. Government N.U.P. School, Dhanghara,
Tusura, Balangir, Odisha - 767030
Statutory Financial
8. Government Nodal Upper Primary
School, Bishipada, Block - Ulunda,
Subaranapur, Odisha - 767062
7. Government Sr. Primary School,
Nokhadaiya, Kolayat, Bikaner,
Rajasthan 334001
6. Mukundapur Thakamoni High School,
Durlavpur, Mejhia, Bankura,
West Bengal -722133
5. Maraya Primary School, Amarkanan,
Bankura, West Bengal - 722133
Mejhia, Bankura, West Bengal - 722143
4. Natshala Primary School, Benabad,
Bankura, West Bengal - 722143
Mejhia, Bankura, West Bengal - 722143
3. Benabad Primary School, Benabad,
1. Benabad Junior High School, Benabad,
Mejhia, Bankura, West Bengal - 722143
2. Pairasole Primary School, Pairasole,
-
Report
Reports
Statements
18. Government Primary School,
Gowalapara, PO - Kansbahal,
Sundargarh, Odisha
17. Government Primary School,
Ranibandhtola, PO - Sagjore,
Sundargarh, Odisha
16. Government Primary School,
Bhagatpara, PO Kansbahal,
Sundargarh, Odisha
15. Government UP School, Kansbahal,
Sundargarh, Odisha
14. Principal of Government Sr. Secondary
School Hamiri, Kalan, Jhunjhunu,
Rajasthan 333001
13. Principal, Government Primary School,
Malagaon, Satwas, Dewas, Madhya
Pradesh
12. Government High School, Satanwada,
Shivpuri, Madhya Pradesh
11. Government Madhyamik School,
Satanwada, Shivpuri, Madhya Pradesh
10. Zilla Parishad High School, Neredmet,
Malkajgiri Madal, Medchal,
Hyderabad-500056
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
creation or
acquisition
of the capital
asset(s)
No.
Date of
Sr
LARSEN & TOUBRO
20. Government Upper Primary School, Kila
Kumbhalgarh, Gawar Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
10. Government Upper Primary School,
Village- Gandhigram-1, Deoli, Tonk,
Rajasthan - 304804
Management
7. Head Teacher, Mangalchak Primary
School, PO - Terapekhia, Nandigram,
Purba Medinipur, West Bengal - 721656
8. Khodhambari Union B.P.H.S School,
Khodhambari, Nandigram Block - 2,
PS- Nandigram, Purba Medinipur, West
Bengal - 721650
Choryashi, Surat, Gujarat - 394355
342
Corporate
Overview
Management
Integrated
Statutory Financial
41. Kharvasa Asharam Shala, Kharvasa,
Discussion and Analysis
Reports
Statements
Sr
Date of
No.
creation or
acquisition
of the capital
asset(s)
Report
-
40. Godadhara High School, Godadhra,
Surat, Gujarat 395012
39. PKD Vidhyalaya, Atar, Valsad,
Gujarat - 396020
Gujarat - 394540
24. Kudiyana Primary School, Kudiyana
Village, Kudiyana, Olpad, Surat,
Gujarat - 394540
25. Mayur Dhwaj Vidhaylaya, Mora Village,
Near Gram Panchayat, Choryashi,
Surat, Gujarat 394510
-
26. Lok Bharti School, Opposite Terapanth
Bhavan, Inside Ashok Pan Street, City
light Road, Surat, Gujarat - 395007
27. Pariya High School, Pardi, Udwada,
Valsad, Gujarat 396180
28. Gandhighar, Kaccholi, Amalsad,
Gandevi, Navsari, Gujarat- 396370
29. Asharam Shala, Village - Bilvan,
Umarpada, Mandvi, Surat,
Gujarat - 394445
30. Asharam Shala, Village - Sathvav,
Mandvi, Surat, Gujarat - 394160
31. Asharam Shala, Village - Makanjar,
Mandvi, Surat, Gujarat - 394160
32. Asharam Shala, Village - Limdha,
Mandvi, Surat, Gujarat - 394440
33. Mor High School, Village - Mor, Olpad,
Surat, Gujarat 394530
-
34. Junagam Primary School, Junagam,
Hazira Road, Choryashi, Surat,
Gujarat - 394510
35. Bhatgam Primary School, Bhatgam,
Olpad, Surat, Gujarat - 394540
36. Mandroi Primary School, Mandroi,
Olpad, Surat, Gujarat - 394540
37. Karamla Primary School, Karamla,
Olpad, Surat, Gujarat - 394130
38. The Varad Sarvjanik High School,
Rayam, Bardoli, Surat,
Gujarat - 394355
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
Choryashi, Surat, Gujarat - 394517
23. Talad High School, Olpad, Surat,
LARSEN & TOUBRO
17
Asset Name
Farm Pond
Address
42. Ambetha Primary School, Ambhetha,
Olpad, Surat, Gujarat - 395005
43. Mora Primary School, Mora Village,
Near Gram Panchayat, Choryashi,
Surat, Gujarat 394510
44. Damka Primary School, Damka,
Hazira Road, Choryashi, Surat,
Gujarat - 394517
45. Mor Tunda Primary School, Mor Tunda
Village, Olpad, Surat, Gujarat - 394530
46. Sarvodaya Vidhyalaya, Segvachama,
Olpad, Surat, Gujarat - 395009
47. Timba Aashramshala, Timba,
Chhaprabhatha Road, Tadwadi, Surat,
Gujarat - 394520
-431107)
48. Puni Aashramshala, Puni, Palsana,
-
49. Amalsadi Aashram Shala, Amalsadi,
Palsana, Surat, Gujarat - 394350
1. Nagzari, Ambad Block, Jalna,
Maharashtra 431204
2. Chambharwadi, Ambad Block, Jalna,
Maharashtra 431204
-
9. Amritnagar High School, Amritnagar,
Hazaribagh, Jharkhand - 825301
Surat, Gujarat 394352
(Residents of Village - Antarwali Khandi,
Paithan, Aurangabad, Maharashtra
Vaijinath Namdev Doifode.
Sarjerav Dighule, Sanjay Keshavrav Jadhav,
Dwarakabai Baburav Parande, Bhaurav
Kakasaheb Hande, Ankush Murlidhar
25th January
2022 to 11th
March 2022
42. Ambetha Primary School, Ambhetha,
Olpad, Surat, Gujarat - 395005
43. Mora Primary School, Mora Village,
Near Gram Panchayat, Choryashi, Surat,
Gujarat - 394510
44. Damka Primary School, Damka,
Hazira Road, Choryashi, Surat,
Gujarat - 394517
45. Mor Tunda Primary School, Mor Tunda
Village, Olpad, Surat, Gujarat - 394530
46. Sarvodaya Vidhyalaya, Segvachama,
Olpad, Surat, Gujarat - 395009
47. Timba Aashramshala, Timba,
Chhaprabhatha Road, Tadwadi, Surat,
Gujarat - 394520
48. Puni Aashramshala, Puni, Palsana, Surat,
Gujarat - 394352
49. Amalsadi Aashram Shala, Amalsadi,
Palsana, Surat, Gujarat - 394350
862,812 1. Rasul Chandkha Pathan, Sajed Babukha
Pathan, Saber Babukha Pathan,
Subhankha Mahebubkha Pathan,
Moshinali Muktar Pathan, Taher Subhan
Pathan, Abu Bakar Makbul Pathan, Fakir
Imam Shaikh, Altaf Ayyubkha Pathan,
Ramdas Janappa Jadhav, Shahenshaha
Mohamad Sharif Shaikh, Abdul Wahed
Nuruddin Shaikh, Daniyal Sudnyan Nirmal,
Javed Subhan Pathan, Nisar Nijam Pathan
and Khalil Yasin Pathan.
(Residents of Nagzari, Ambad Block, Jalna,
Maharashtra 431204)
2. Jagannath Kondiba Gund, Tukaram Asruji
Dukre, Gafur Shaikh Biban and Shaikh
Matin Gafur Shaikh.
(Residents of Chambharwadi, Ambad
Block, Jalna, Maharashtra - 431204)
3. Kishor Shivaji Doifode, Raju Bhaurav
Channe, Bhagwan Bhaurao Channe,
Pralhad Baburao Shirase, Bhagubai
Pandurang Auti, Sanjivani Bapurav
Pokharkar, Subhash Jadhav, Kishor
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
22. Suvali Primary School, Suvali,
Doifode, Laxman Ravsaheb Hande and
Surat, Gujarat 394317
344
6. L&T Health and Dialysis Centre, Smith
Park Apartment, Near Yogiraj Complex,
Adajan Road, Surat, Gujarat - 395009
5. Samparc Malvali Centre, Near
Malvali Railway Station, Maval, Pune,
Maharashtra 410405
Mumbai, Maharashtra - 400072
4. Nirali | A M Naik Charitable Health-Care
Facility, Saki Vihar Road, Opposite
Tunga Village Bus Stop, Powai,
3. L&T ART Centre, 1st Floor, Koldongri
Municipal Dispensary, Opposite
Garware, Sahar Road, Andheri East,
Mumbai, Maharashtra - 400069
Corporate
Overview
No. 1/160 B, Eachanari - Chettipalayam
Road, Seerapalayam Pudur,
Coimbatore, Tamil Nadu - 641021
1. L&T Health & Dialysis Centre, First
Floor,TAM House, Tower B, Near
Chhani Jakatnaka, Nava Yard Road,
Vadodara, Gujarat - 390002
Grampanchayat, Devgaon, Paithan,
Aurangabad, Maharashtra - 431107
5. Village Devgaon Tanda, Paithan,
Aurangabad, Maharashtra - 431107
-
4. Village Dabhrul, Paithan, Aurangabad,
Maharashtra - 431107
Address
2. L&T Coimbatore Health Centre,
Management
6. Daijmahul Primary School, Karamdihi,
Sundargarh, Odisha - 770002
Discussion and Analysis
5. Head Master, Darlimunda High School,
At PO Darlimunda, Nuapada, Odisha
- 766105
-
4. Bidyabhar Satrujit Bidyapitha, Sagar,
Cuttack, Odisha - 754037
3. Shree Jagannath High School, Sagada,
Boudh, Odisha - 762016
10,475,189 1. Government U.P. School, Dangariguda,
Koksara, Kalahandi, Odisha - 766017
2. M. L. High School, Attabira, Lakhnapur,
Jharsuguda, Odisha - 768027
(in )
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
30th October
2021 to 19th
January 2022
creation or
acquisition
of the capital
asset(s)
No.
Date of
Sr
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Integrated
Report
6. Fumigation machine,
laptop, finger print
scanner, LED TV,
wireless router,
chairs, sonography
machine and water
tank
5. Force Traveller
20
4. Phaco handpiece
slim, Hospital Bed,
Geyser, VATECH
Date of
Sr
Annexure to the Board Report
Integrated Annual Report 2021-22
343
3. Village Antarwali Khandi, Paithan,
Aurangabad, Maharashtra - 431107
Gujarat - 396020
40. Godadhara High School, Godadhra, Surat,
Gujarat - 395012
41. Kharvasa Asharam Shala, Kharvasa,
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
Asset Name
Address
VR Sensor, Oxygen
gas pipeline,
Operating table,
Auto Keratometer,
Fundas Cameras, civil
work of dismantling,
cutting and removing
of existing door, Brio
Combination therapy
unit and therapy
Cart, Physiotherapy
Equipment, Ventilator
and Autoclave
Vadadla, Aerthan Village, Palsana,
21. Shree A.V.T Saraswati Vidhyalaya,
No.
creation or
acquisition
of the capital
asset(s)
Choryashi, Surat, Gujarat - 394355
23rd February
2022 to 16th
2. ECG Machine
18
3. Laboratory Software,
American Power
Conversion, Desktops
Check Dam
1. Air cooler, Digital
Radiography and
Endo Mate TC2,
Heart Start Onsite
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
7,538,914 Larsen & Toubro Public Charitable Trust,
Landmark A, 1st Floor, Suren Road, Opposite
PVR Cinemas, Near Western Express Highway
(WEH) Metro Station, Andheri East, Mumbai,
Maharashtra 400093
1,358,273 Grampanchayat, Devgaon, Paithan,
Aurangabad, Maharashtra - 431107
Asset Name
4. Mirabai Ramesh Chavan, Tarabai Gorakh
Chavan, Gautam Sandu Vahule, Shriram
Hari Chavan and Gorakh Hari Chavan
(Residents of Village - Dabhrul, Paithan,
Aurangabad, Maharashtra - 431107)
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
2022
21st April 2021
to 15th March
March 2022
5. Rohidas Balu Rathod, Village - Devgaon
Tanda, Paithan, Aurangabad, Maharashtra
-431107
19
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2022
Discussion and Analysis
Integrated Statutory
Report
Reports
Financial
Statements
Annexure 'E' to the Board Report
Form No. MR-3
SECRETARIAL AUDIT REPORT
LARSEN & TOUBRO
Management
E.
354
It is hereby affirmed that the remuneration paid is
as per the Remuneration Policy for Directors, Key
Managerial Personnel and other Employees.
Affirmation that the remuneration is as per the
remuneration policy of the company:
The average percentage increase in the salaries of
employees excluding key managerial personnel for
the year 2021-22 was 17.42% whereas there is
an increase in the key managerial remuneration by
66.01%. The increase in managerial remuneration is
due to higher eligible profits, base adjustment and
full year impact of remuneration to new Whole-time
Directors who joined in the year 2020-21.
thereof and point out if there are any exceptional
circumstances for increase in managerial
remuneration
D. Average percentile increase made in the salaries
of the employees other than the managerial
personnel in the last financial year and its
comparison with the percentile increase in
the managerial remuneration and justification
There were 49,921 permanent employees on the rolls
of Company as on 31st March 2022.
Number of permanent employees on the rolls of
the Company as on 31st March 2022:
The median remuneration of employees of the
Company during the financial year was 9.14 lakh. In
the financial year, there was an increase of 6.67% in
the median remuneration of employees.
C.
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014]
B. Percentage increase in the median remuneration
of all employees in FY 2022:
Corporate
Overview
To,
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
Larsen & Toubro Limited
Annexure to the Board Report
h. The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 2018 - Not
Applicable as there was no reportable event
during the financial year under review;
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009
(up to 9th June, 2021) and The Securities and
Exchange Board of India (Delisting of Equity
Shares) Regulations, 2021 (with effect from 10th
June, 2021) - Not Applicable as the Company
has not delisted/ proposed to delist its equity
shares from any Stock Exchange during the
financial year under review;
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act
and dealing with client - Not Applicable as the
Company is not registered as Registrar to
Issue and Share Transfer Agent during the
financial year under review;
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008
(up to 15th August, 2021);
g.
f.
e.
d. The Securities and Exchange Board of India (Share
Based Employee Benefits) Regulations, 2014 (up
to 12th August, 2021) and The Securities and
Exchange Board of India (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021
(with effect from 13th August, 2021);
C. The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2018 - Not Applicable as there
was no reportable event during the financial
year under review;
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
b.
a.
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 ('SEBI Act'):
V.
iv. Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent of
Foreign Direct Investment, Overseas Direct Investment
and External Commercial Borrowings;
iii. The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
ii. The Securities Contracts (Regulation) Act, 1956
('SCRA') and the rules made thereunder;
The Companies Act, 2013 (the Act) and the rules made
thereunder;
i.
We have examined the books, papers, minute books, forms
and returns filed and other records maintained by the
Company for the financial year ended on 31st March, 2022
according to the provisions of:
We have conducted the Secretarial Audit of the compliance
of applicable statutory provisions and the adherence to
good corporate practices by Larsen & Toubro Limited
(hereinafter called 'the Company'). Secretarial Audit was
conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts / statutory
compliances and expressing our opinion thereon.
Based on our verification of the Company's books, papers,
minute books, forms and returns filed and other records
maintained by the Company and also the information
provided by the Company, its officers, agents and
authorized representatives during the conduct of secretarial
audit, we hereby report that in our opinion, the Company
has, during the audit period covering the financial year
ended on 31st March 2022, complied with the statutory
provisions listed hereunder and also that the Company
has proper Board-processes and compliance-mechanism
in place to the extent, in the manner and subject to the
reporting made hereinafter.
400001
L&T House, Ballard Estate,
Mumbai
CIN: L99999MH1946PLC004768
The Members,
Integrated Annual Report 2021-22
Mr. Sanjeev Aga
Mr. Narayanan Kumar
Current year remuneration includes the commission and sitting fees paid by L&T Hydrocarbon Engineering Limited.
5.86
0.54
Independent Director
0.80%
6.88
0.63
Independent Director
Mr. Adil Zainulbhai
43.28% $
6.06
0.55
Independent Director
Mr. Vikram Singh Mehta
0.78%
7.07
0.65
Independent Director
Mr. M. Damodaran
7.25
0.66
Independent Director
Mr. Subodh Bhargava #
(7.27%)
7.32
Integrated Annual Report 2021-22
(3.51%)
353
Independent Director
5.13
$
Impact of full year remuneration of new director/KMP appointed during FY 2020-21
@
Part of the remuneration has been paid to the financial institution he represents
Λ
Ceased to be an Independent Director with effect from 29th March 2022 on completion of his term.
#
Ratio of remuneration of Director to the median remuneration is calculated on pro-rata basis for those Directors who served for only part of
FY 2022.
*
19.39%
21.63
300.00% @
3.41
1.98
0.31
Company Secretary
Mr. Sivaram Nair A
Mrs. Preetha Reddy
Corporation of India
10.10%
3.76
0.34
Nominee of Life Insurance
Mr. Hemant Bhargava ^
(1.98%)
0.47
Annexure to the Board Report
Date 04th May, 2022
Place: Thane
The Securities and Exchange Board of India
(Issue and Listing of Non-Convertible Securities)
Regulations, 2021 (with effect from 16th August,
2021);
To ensure that level and composition of remuneration
is reasonable and sufficient to attract, retain and
motivate Directors of the quality required to run the
Company successfully;
To formulate the criteria for determining qualifications,
positive attributes and independence of a Director
and recommend to the Board a policy, relating to
the remuneration for the Directors, Key Managerial
Personnel and other employees;
To identify persons who are qualified to become
Directors and who may be appointed in senior
management in accordance with the criteria laid
down, recommend to the Board their appointment
and removal and shall specify the manner for effective
evaluation of performance of Board, its Committees
and individual Directors to be carried out by the Board
or the Nomination & Remuneration Committee or
by an Independent External Agency and review its
implementation and compliance;
2.
•
The Nomination and Remuneration Committee and this
Policy shall be in compliance with Section 178 of the Act
read along with the applicable rules thereto and Regulation
19 of LODR. The Key Objectives of the Committee would
be:
1. OBJECTIVE:
The Board of Directors of Larsen & Toubro Limited
("the Company") had constituted the "Nomination and
Remuneration Committee" which is in compliance with
the requirements of the Companies Act, 2013 ("Act")
and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("LODR").
NOMINATION AND REMUNERATION POLICY
(As per Companies Act, 2013)
Annexure 'F' to the Board Report
Annexure to the Board Report
Integrated Annual Report 2021-22
357
0.67
FCS: 4206 | COP No.: 1774
ICSI UDIN: F004206D000266600
S. N. Ananthasubramanian
Partner
ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019
For S. N. ANANTHASUBRAMANIAN & Co.
Company Secretaries
We have not verified the correctness and
appropriateness of financial records and books of
accounts of the Company.
The Secretarial Audit Report is neither an assurance
as to the future viability of the Company nor of the
efficacy or effectiveness with which the management
has conducted the affairs of the Company.
8
7
Disclaimer
etc.
Management's representation about the compliance of
laws, rules and regulations and happening of events,
Relationship of remuneration to performance is clear
and meets appropriate performance benchmarks;
Remuneration to Directors, Key Managerial Personnel
and senior management involves a balance between
fixed and incentive pay reflecting short and long-term
performance objectives appropriate to the working of
the Company and its goals;
Wherever required, we have obtained the
Devising a policy on Board diversity;
2.1. Act means the Companies Act, 2013 or Companies
Act, 1956 as may be applicable and Rules framed
thereunder, as amended from time to time.
358
a) The Committee shall identify and ascertain the
integrity, qualification, expertise and experience
3.2.1. Appointment criteria and qualifications
3.2. Policy for appointment and removal of Director,
KMP and Senior Management
removal of Director, KMP and Senior Management
Personnel.
Recommend to the Board, appointment and
Identify persons who are qualified to become
Director and persons who may be appointed in
Key Managerial and Senior Management positions
in accordance with the criteria laid down in this
policy.
Formulate the criteria for determining
qualifications, positive attributes and
independence of a Director.
The Committee shall:
3.1. Matters to be dealt with, perused and
recommended to the Board by the Nomination
and Remuneration Committee
3. ROLE OF COMMITTEE:
2.6. Senior Management Personnel means all members
of management one level below the Executive
Directors including the Chief Financial Officer and
Company Secretary. Presently, persons in Sr. Vice
President grade and F&A heads of Independent
Companies reporting to Whole-time Directors will be
covered as Senior Management Personnel.
Such other officer as may be prescribed.
Senior Management Personnel designated as such
by the Board; and
•
. Company Secretary;
Chief Financial Officer;
Whole-time Directors;
Chief Executive Officer or the Managing Director
or the Manager;
.
•
2.5. Key Managerial Personnel (KMP) means
2.4. Executive Directors means the Executive Chairman
if any, Chief Executive Officer and Managing Director,
Deputy Managing Director, if any and Whole-time
Directors.
2.3. Directors mean Directors of the Company.
2.2. Board means Board of Directors of the Company.
DEFINITIONS:
i.
Audit, maintained by the Company, are free from
misstatement.
6
Corporate
356
Place: Thane
Date 04th May, 2022
FCS: 4206 | COP No.: 1774
ICSI UDIN: F004206D000266600
S. N. Ananthasubramanian
Partner
ICSI Unique Code: P1991 MH040400
Peer Review Cert. No.: 606/2019
For S. N. ANANTHASUBRAMANIAN & Co.
Company Secretaries
This Report is to be read with our letter of even date which
is annexed as Annexure A and forms an integral part of this
report.
10,000 crore (Rupees Ten Thousand Crore), including
refinancing, through external commercial borrowings,
term loans, non-convertible debentures or any other
instrument as may be appropriate.
The Board of Directors at its meeting held on 24th
March 2022, approved long term borrowings upto
Raised 450 crore (Rupees Four Hundred and Fifty
Crore only), by way of receipt of call money pursuant
to First Balance Payment notice of ₹2,50,000 each on
the 18,000 Non - Convertible Debentures of 10 Lac
each on 12th April 2021.
In supersession of the Special Resolution passed at
the 75th Annual General Meeting (AGM) held on
13th August, 2020, members at the 76th AGM held
on 05th August 2021, passed a Special Resolution
authorising the Board of Directors to raise funds
through issuance of convertible bonds and/or equity
shares through depository receipts, including by way
of Qualified Institutions Placement, in one or more
tranches upto an amount not exceeding 4500 Crore
or US $600 Million, whichever is higher.
The Company at its Board Meeting held on July 26,
2021, had considered and approved a Scheme of
Arrangement for amalgamation of L&T Hydrocarbon
Engineering Limited ("LTHE”) (a wholly-owned
Subsidiary of the Company) with the Company. ("the
Scheme"). The said Scheme was approved vide order
of the National Company Law Tribunal, Mumbai bench
dated 28th January 2022.
on the Company's affairs in pursuance of the above
referred laws, rules, regulations, guidelines, standards etc:
Non-Convertible Debentures amounting to 450
Crore (Rupees Four Hundred and Fifty Crore only) were
duly redeemed on their respective due dates.
We further report that based on review of compliance
mechanism established by the Company and on the basis
of the Compliance Certificate(s) issued by the Company
Secretary and taken on record by the Board of Directors
at their meeting(s), we are of the opinion that there are
adequate systems and processes in place in the Company
which is commensurate with the size and operations of
the Company to monitor and ensure compliance with
applicable laws, rules, regulations and guidelines.
We further report that during the audit period the
following events have occurred which had a major bearing
All decisions of Board and Committee meetings were
carried unanimously.
The Board of Directors of the Company is duly
constituted with proper balance of Executive Directors,
Non-Executive Directors including Independent
Directors and Women Directors. The changes in the
composition of the Board of Directors which took
place during the period under review were carried out
in compliance with the provisions of the Act;
Adequate notice is given to all Directors of the
schedule of the Board and Committee Meetings and
Agenda & detailed notes on agenda were sent at
least seven days in advance and there exists a system
for seeking and obtaining further information and
clarifications on the agenda items before the meeting
for meaningful participation at the meeting;
•
We further report that:-
During the period under review the Company has complied
with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc.
(ii) Listing Agreements entered into by the Company with
BSE Limited and National Stock Exchange of India
Limited.
(i) Secretarial Standards with regard to Meetings of Board
of Directors (SS-1) and General Meetings (SS-2) issued
by The Institute of Company Secretaries of India;
vi. The Company has informed that there are no laws
which are specifically applicable to the Company.
We have also examined compliance with the applicable
provisions of the following:
j. The Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements),
Regulations, 2015;
Management
documents or Records, in relation to Secretarial
Overview
Integrated
Report
Wherever required, we have obtained reasonable
assurance whether the statements prepared,
adequate and appropriate for us to provide a basis for
our opinion.
We believe that audit evidence and information
obtained from the Company's management is
We have conducted the Audit as per the applicable
Auditing Standards issued by the Institute of Company
Secretaries of India.
5
4
3
2 Our responsibility is to express an opinion on these
secretarial records, standards and procedures
followed by the Company with respect to secretarial
compliances.
Auditor's Responsibility
It is the responsibility of the management of the
Company to maintain secretarial records, devise proper
systems to ensure compliance with the provisions of all
applicable laws and regulations and to ensure that the
systems are adequate and operate effectively.
1
Management's Responsibility
Our Secretarial Audit Report for the Financial Year ended
31st March, 2022, of even date is to be read along with
this letter.
Mumbai 400001.
L&T House, Ballard Estate,
CIN: L99999MH1946PLC004768
Larsen & Toubro Limited
The Members,
To,
LARSEN & TOUBRO
Annexure-'A'
Statements
Reports
Financial
Statutory
Discussion and Analysis
Independent Director
355
Sr. Executive Vice President
(Utilities)
1,577,111 Head Master, Government Upper Primary
School, Kathon Ka Talab, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
Asset Name
1. Construction of
stage, drinking water
tank platform, ramp
and stairs
2. Construction of
boundary wall and
drinking water tank
platform
Construction of class
room, drinking water
tank platform, fencing
wire of boundary wall,
verandah and ramp
Construction of drinking
water tank platform,
classroom and ramp
Construction of stage,
drinking water tank
platform and verandah
Construction of drinking
water tank platform,
stairs, ramp and platform
Construction of stage,
classroom and stairs
Construction of drinking
water tank platform and
boundary wall
Construction of drinking
water tank platform,
boundary wall, plaster
work and ramp
Construction of class
room, drinking water
tank platform, boundary
wall, stage and ramp
Address
1. Aanganwadi Jalpa, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
2. (a) Aanganwadi Rajarel, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
(b) Aanganwadi Kookra, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
Senior Secondary School Kookra, Kookra,
Bhim, Rajsamand, Rajasthan - 305921
Kashya, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
1,226,982 Head Master, Government Primary School -
452,365 Project Officer, ICDS, Aanganwadi - Nichla
Lasadiya, Kookra, Bhim, Rajsamand,
Rajasthan 305921
1,358,448 Head Master, Primary School, Dungo Ka
Wala, Kookra, Bhim, Rajsamand, Rajasthan
- 305921
30th September
2021
40
Mr. M. M. Chitale
40
28th February
2022
41
Upper Primary School (Girls), Kookra, Bhim,
Rajsamand, Rajasthan - 305921
28th February
2022
28th February
2022
Kookra, Bhim, Rajsamand, Rajasthan
- 305921
1,195,585 Head Master, Upper Primary School (Girls),
Kookra, Bhim, Rajsamand, Rajasthan
- 305921
204,591 Head Master, Primary School, Japla, Kookra,
Bhim, Rajsamand, Rajasthan - 305921
380,924 1. Head Master, Primary School, Jassuj
Ka Kheda, Kookra, Bhim, Rajsamand,
Rajasthan 305921
2. Head Master, Primary School, Godarel,
Kookra, Bhim, Rajsamand,
Rajasthan - 305921
42
39
Primary School, Japla, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
2. Primary School, Godarel, Kookra,
Bhim, Rajsamand, Rajasthan - 305921
44
28th February
2022
45
28th February
2022
46
46
28th February
2022
47
28th February
2022
48
28th February
2022
49
28th February
2022
50
50
28th February
2022
43
creation or
acquisition
of the capital
asset(s)
No.
Primary School, Dungo Ka Wala,
Kookra, Bhim, Rajsamand,
Rajasthan 305921
1. Aanganwadi Nichla Lasadiya, Kookra,
Bhim, Rajsamand, Rajasthan - 305921
2. Aanganwadi - Rawat Ka Kheda,
Kookra, Bhim, Rajsamand,
Rajasthan 305921
-
Government Primary School - Kashya,
Kookra, Bhim, Rajsamand,
Rajasthan 305921
Government Upper Primary School,
Kathon Ka Talab, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
1. Primary School, Jassuj Ka Kheda,
Kookra, Bhim, Rajsamand,
Rajasthan - 305921
350
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Sr
Date of
Corporate
Overview
30th September
2021
38
30th September
2021
6. Government Primary School, Shobhawato
Ki Bhagal, Gram Panchayat Antaliya,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313334
407,060 1. Government Primary School, Rodh Ka
Guda, Sukhar Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
2. Upper Primary School, Dasana Ki Bhagal,
Majhera Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321
3. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
4. Government Primary School, Shobhawato
Ki Bhagal, Gram Panchayat Antaliya,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313334
1,673,673 1. Health Sub Centre, Antaliya, Antaliya
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313334
2. (a) Health Sub Centre, Antaliya, Antaliya
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313334
(b) Upper Primary School, Aret Ki Bhagal,
Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325
3. (a) Upper Primary School, Rati Talai,
Antaliya Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313334
(b) Anganwadi, Nichli Bhagal, Antaliya
Panchayat and Zone, Kumbhalgarh
Block, Rajsamand,
Rajasthan - 313321
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
5. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
4. Upper Primary School, Dasana Ki Bhagal,
Majhera Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
25th January
2022
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
Asset Name
LARSEN & TOUBRO
Date of
No.
creation or
acquisition
of the capital
asset(s)
32
3rd March 2022
33
33
Sr
Furniture
1. Borewell
2.
Annexure to the Board Report
Sr
Date of
No.
creation or
acquisition
of the capital
asset(s)
34
30th September
Integrated Annual Report 2021-22
2021
735,153 Project Officer, ICDS, Aanganwadi Jalpa,
Post Kookra, Bhim, Rajsamand, Rajasthan
- 305921
35
30th September
2021
1,567,576 Principal, Senior Secondary School Kookra,
36
30th September
2021
37
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in )
30th June 2021
349
(b) Anganwadi, Nichli Bhagal, Antaliya
Panchayat and Zone, Kumbhalgarh
Motor pump
operated through
Solar charger
3. Alternate electricity
through solar charger
Address
4. Upper Primary School, Dasana Ki
Bhagal, Majhera Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313321
5. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325
6. Government Primary School,
Shobhawato Ki Bhagal, Gram
Panchayat Antaliya, Kumbhalgarh
Block, Rajsamand, Rajasthan - 313334
Block, Rajsamand,
Rajasthan - 313321
1. Government Primary School, Rodh
Ka Guda, Sukhar Panchayat, Antaliya
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313333
3. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan 313325
4. Government Primary School,
Shobhawato Ki Bhagal, Gram
Panchayat Antaliya, Kumbhalgarh
Block, Rajsamand, Rajasthan - 313334
1. Health Sub Centre, Antaliya, Antaliya
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan 313334
2. (a) Health Sub Centre, Antaliya,
3.
Antaliya Zone, Kumbhalgarh Block,
Rajsamand, Rajasthan - 313334
(b) Upper Primary School, Aret
Ki Bhagal, Gawar Panchayat,
Kelwara Zone, Kumbhalgarh Block,
Rajsamand, Rajasthan - 313325
(a) Upper Primary School, Rati Talai,
Antaliya Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand,
Rajasthan -313334
2. Upper Primary School, Dasana Ki
Bhagal, Majhera Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan -313321
to 30th August
Independent Director
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
108.32%
122.34
11.19
Whole-time Director &
Mr. M. V. Satish
(Development Projects)
Sr. Executive Vice President
137.77%
129.40
11.83
Whole-time Director &
Mr. D. K. Sen
Financial Officer
116.38%
313.00
Sr. Executive Vice President
(Buildings)
Mr. J. D. Patil
Whole-time Director &
137.19
12.55
Whole-time Director &
Mr. S. V. Desai
(Energy)
Sr. Executive Vice President
105.99% @
28.62
256.68
Whole-time Director &
Mr. Subramanian Sarma
(Defence & Smart Technologies)
Sr. Executive Vice President
106.13%
120.81
11.05
23.47
Whole-time Director & Chief
Mr. R. Shankar Raman
Managing Director
Reports
Statutory
Integrated
Report
12. No. 86, Rajakuppam, Rajamandripatti,
Periya Paravakkal, Gudiyatham,
Tamil Nadu
Discussion and Analysis
Management
Corporate
Overview
Financial
Statements
Dhan Foundation, 1A Vaidyanathapuram
East, Kennet Cross Road, Madurai, Tamil
Nadu 625016
352
East, Kennet Cross Road, Madurai, Tamil
Nadu - 625016
21,200 Dhan Foundation, 1A Vaidyanathapuram
29th November
2021
51
635803
2021
CANON MF 241 LASER
PRINTER
261.47% @
Annexure 'D' to the Board Report
LARSEN & TOUBRO
1.85%
115.00%
670.02
61.27
Chief Executive Officer &
Mr. S. N. Subrahmanyan
69.11
6.32
A.
Group Chairman
Percentage
Ratio (times) of
remuneration of director to
the median remuneration *
Remuneration
Name of the Director/KMP Designation
Total
crore
Ratio of the remuneration of each Director to the median remuneration of the employees of the Company for
FY 2022 and the percentage increase in remuneration of each Director and Company Secretary during FY 2022:
Mr. A. M. Naik
Sr. Executive Vice President (Civil
increase in
Remuneration
Mr. T. Madhava Das
Construction of class
room, drinking water
tank platform, boundary
wall and ramp
Construction of drinking
water tank platform,
ramp and boundary wall
Construction of drinking
water tank platform,
ramp and verandah
Construction of class
room, drinking water
tank platform, boundary
wall, fencing wire,
verandah and ramp
Small pond
Address
Government Primary School, Mohariya,
Kookra, Bhim, Rajsamand,
Rajasthan - 305921
Government Primary School, Nichla
Karkala, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
Government Primary School, Pathwari
Ka Baadiya, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
Government Primary School, Rawat
Ka Kheda, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
Government Upper Primary School,
Barla Choura, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
Government Upper Primary School,
Upperla Karkala, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
Government Senior Secondry School
Lasadiya, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
1. No.21/1, Mel Settikuppam,
Sarakuppam, Settikuppam,
Construction of class
room, drinking water
tank platform, boundary
wall, fencing wire, ramp
and drain
Construction of drinking
water tank platform,
boundary wall, stage and
classroom
Construction of
classroom, boundary
wall, fencing wire, ramp,
stairs, pathway and
protection wall
Asset Name
(in )
Infrastructure)
1,630,749 Head Master, Government Primary School,
Mohariya, Kookra, Bhim, Rajsamand,
Rajasthan 305921
-
947,399 Head Master, Government Primary School,
Nichla Karkala, Kookra, Bhim, Rajsamand,
Rajasthan 305921
-
1,371,305 Head Master, Government Primary School,
Pathwari Ka Baadiya, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
Gudiyatham,
1,333,269 Head Master, Government Primary School,
Rawat Ka Kheda, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
324,319 Head Master, Government Upper Primary
School, Upperla Karkala, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
1,395,026 Principal, Government Senior Secondry
School Lasadiya, Kookra, Bhim, Rajsamand,
Rajasthan - 305921
557,880 1. Mr. Govindharaj S/o Krishnaaiya,
No.21/1, Mel Settikuppam, Sarakuppam,
Settikuppam, Gudiyatham,
Tamil Nadu 635803
2. Mr. Karunakaran S/o Masilamani No. 78,
Kowsiya Nagar, Ulli Village, Mettukollai,
Gudiyatham, Tamil Nadu - 635813
3. Ms. Prema W/o Loganathan, No. 3/34,
Rajakuppam, Dasrimandripatti, Paravakkal
Gudiyatham, Tamil Nadu - 635803
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
196,163 Head Master, Government Upper Primary
School, Barla Choura, Kookra, Bhim,
Rajsamand, Rajasthan - 305921
Tamil Nadu 635803
4. Ms. Lavanya W/o Dheenabandu, No.
41/14, Periya Rajakuppam, Rajakuppam
(PO), Paravakkal, Gudiyatham, Tamil
Nadu - 635803
Tamil Nadu 635813
Tamil Nadu 635803
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
Asset Name
Address
5. Rajamandripatti, Dasmandripatti,
Paravakkal, Gudiyatham,
Tamil Nadu 635803
6. No. 2/66, Pananthoppu Colony,
Rajakuppam (PO), Paravakkal,
Gudiyatham, Tamil Nadu - 635803
12. Mr. Purushothanam S/o Kannaaiya, No.
86, Rajakuppam, Rajamandripatti, Periya
Paravakkal, Gudiyatham,
8. No. 21/1, Mel Theru, Mel Settikuppam,
Gudiyatham, Tamil Nadu - 635803
10. No. 66/21, Pananthoppu Colony,
Rajakuppam (PO), Paravakkal,
Gudiyatham, Tamil Nadu - 635803
11. Pogalur, Gudiyatham, Tamil Nadu -
635813
236.34% @
134.55
2. No. 78, Kowsiya Nagar, Ulli Village,
Mettukollai, Gudiyatham,
Whole-time Director &
12.30
9. No. 29/15A, B N Palayam, Settikuppam,
Gudiyatham, Tamil Nadu - 635803
11. Mr. Dhanasekaran S/o Kesavan Mel
Alangkuppam, Pogalur, Gudiyatham,
Tamil Nadu 635813
7. No. 1/135, Rajakuppam (PO), Periya
Paravakkal, Paravakkal, Gudiyatham,
Tamil Nadu 635803
635803
3. No. 3/34, Rajakuppam,
4. No. 41/14, Periya Rajakuppam,
Rajakuppam (PO), Paravakkal,
Gudiyatham, Tamil Nadu - 635803
10. Ms. Savitha W/o Sivakumar, No. 66/21,
Pananthoppu Colony, Rajakuppam (PO),
Paravakkal, Gudiyatham,
Tamil Nadu 635803
351
Integrated Annual Report 2021-22
Annexure to the Board Report
Dasrimandripatti, Paravakkal
Gudiyatham, Tamil Nadu - 635803
Date of
No.
Sr
creation or
acquisition
of the capital
asset(s)
Amount of Details of the entity or public authority
CSR spent for or beneficiary under whose name such
creation or capital asset is registered, their address
acquisition of etc.
capital asset
(in)
5. Mr. Sundaramoorthy S/o Govindhan
Rajakuppam, Rajamandripatti,
Dasmandripatti, Paravakkal, Gudiyatham,
Tamil Nadu - 635803
6. Mr. Dakshanamoorthy S/o Munisamy, No.
2/66, Pananthoppu Colony, Rajakuppam
(PO), Paravakkal, Gudiyatham, Tamil
Nadu - 635803
7. Mr. Govindhasamy S/o Veerasamy,
No. 1/135, Rajakuppam (PO), Periya
Paravakkal, Paravakkal, Gudiyatham,
Tamil Nadu 635803
8. Mr. Harish S/o Govindharaj No. 21/1, Mel
Theru, Mel Settikuppam, Gudiyatham,
Tamil Nadu 635803
9. Ms. Dharani S/o Krishnaaiya, No. 29/15A,
BN Palayam, Settikuppam, Gudiyatham,
Tamil Nadu
5.2 Chairperson of the Company may be appointed
CHAIRPERSON
5.
4.4 Term of the Committee shall be continued unless
terminated by the Board of Directors.
as a member of the Committee but shall not be a
Chairman of the Committee.
4.3 Membership of the Committee shall be disclosed in
the Annual Report.
members whichever is greater including atleast one
Independent Director shall constitute a quorum for the
Committee meeting.
5.1 Chairperson of the Committee shall be an Independent
Director.
4.2 Minimum two (2) members or one-third of the
LARSEN & TOUBRO
MEMBERSHIP
An Independent Director shall not be entitled
to any stock option of the Company. Non-
Executive Directors are eligible for Stock options
in accordance with Schemes formulated by the
Company. Nominee Directors are not entitled to
stock options as per their respective nomination
letters received by the Company.
d) Stock Options:
the Company computed as per the applicable
provisions of the Act. The Board of Directors will
fix the Commission payable to Directors on the
basis of number of Board/Committee meetings
attended during the year and Chairmanships of
Committees.
4.
Statutory Financial
Reports
Statements
Integrated
Report
Management
Discussion and Analysis
5.3 In the absence of the Chairperson, the members of the
Committee present at the meeting shall choose one
amongst them to act as Chairperson.
360
Corporate
Overview
4.1 The Committee shall consist of a minimum 3 non-
executive Directors, half of them being independent.
5.4 Chairman of the Nomination and Remuneration
Committee meeting could be present at the Annual
General Meeting or may nominate some other
member to answer the shareholders' queries.
10.3 Setting a formal and transparent procedure for
selecting new Directors for appointment to the Board;
10.4 Developing a succession plan for the Board and Senior
Management and regularly reviewing the plan;
The meeting of the Committee shall be held atleast
once in a year and at such regular intervals as may be
required.
10.8 Recommend any necessary changes to the Board; and
Commission may be paid within the monetary
limit approved by shareholders, subject to
the limit not exceeding 1% of the profits of
Annexure to the Board Report
Integrated Annual Report 2021-22
361
10.7 Delegating any of its powers to one or more of its
members or the Secretary of the Committee;
10.6 Making recommendations to the Board concerning
any matters relating to the continuation in office of
any Director at any time including the suspension or
termination of service of an Executive Director as an
employee of the Company subject to the provision of
the law and their service contract;
10.5 Evaluating the performance of the Board members
and Senior Management in the context of the
Company's performance from business and compliance
perspective;
10.2 Determining the appropriate size, diversity and
composition of the Board;
10.1 Ensuring that on appointment to the Board,
Non-Executive Directors receive a formal letter of
appointment in accordance with the Guidelines
provided under the Act;
6. FREQUENCY OF MEETINGS
The duties of the Committee in relation to nomination
matters include:
Matters arising for determination at Committee
meetings shall be decided by a majority of votes of
Members present and voting and any such decision
shall for all purposes be deemed a decision of the
Committee.
VOTING
The Company Secretary of the Company shall act as
Secretary of the Committee.
SECRETARY
9.
8.
7.2 The Committee may invite such executives, as it
considers appropriate, to be present at the meetings of
the Committee.
7.1 A member of the Committee is not entitled to be
present/participate in discussion when his or her own
remuneration is discussed at a meeting or when his or
her performance is being evaluated.
COMMITTEE MEMBERS' INTERESTS
7.
10. NOMINATION DUTIES
c) Commission:
c) Maximum Number of Directorships:
The Non-Executive / Independent Director may
receive remuneration by way of fees for attending
meetings of Board or Committee thereof. Provided
that the amount of such fees shall not exceed
3.2.4. Removal
C.
b. Previous years observations and actions taken
Proposed actions based on current year's
observations
a.
The Company may disclose in the Annual Report:
Observation of the Board Evaluation for the year
under review
The Committee shall by itself or through the Board or
an independent external agency carry out evaluation
of performance of the Board/Committee(s), Individual
Directors and Chairman at regular interval (yearly) and
review implementation and compliance.
3.2.3. Evaluation
A person shall not be appointed as a
Director in case he is a Director in more than
eight listed companies after April 1, 2019
and seven listed companies after April 1,
2020. For the purpose of this clause listed
companies would mean only those companies
whose equity shares are listed.
At the time of appointment of Independent
Director it should be ensured that number of
Boards on which such Independent Director
serves is restricted to seven listed companies
as an Independent Director and three listed
companies as an Independent Director in
case such person is serving as a Whole-time
Director of a listed company or such other
number as may be prescribed under the Act.
No Independent Director shall hold office for
more than two consecutive terms, but such
Independent Director shall be eligible for
appointment after expiry of three years of
ceasing to become an Independent Director.
Provided that an Independent Director shall
not, during the said period of three years,
be appointed in or be associated with the
Company in any other capacity, either directly
or indirectly.
Due to reasons for any disqualification mentioned
in the Act or under any other applicable Act, rules
and regulations thereunder, the Committee may
recommend, to the Board with reasons recorded
in writing, removal of a Director, KMP or Senior
Management Personnel subject to the provisions and
compliance of the said Act, rules and regulations.
3.2.5. Retirement
An Independent Director shall hold office for
a term up to five consecutive years on the
Board of the Company and will be eligible
for re-appointment on passing of a special
resolution by the Company and disclosure of
such appointment in the Board's report. The
rationale for such re-appointment shall also
be provided in the Notice to Shareholders
proposing such re-appointment.
The Company shall appoint or re-appoint any
person as its Executive Director for a term not
exceeding five years at a time. No re-appointment
shall be made earlier than one year before the
expiry of term.
a) Executive Directors:
3.2.2. Term Tenure
b) A person should possess adequate qualification,
expertise and experience for the position he / she
is considered for appointment. The Committee
has discretion to decide whether qualification,
expertise and experience possessed by a person is
sufficient / satisfactory for the concerned position.
c) The Company shall not appoint or continue the
employment of any person as Director who has
attained the retirement age fixed by the Board or
as approved by the Shareholders pursuant to the
requirement of the Act/LODR.
of the person for appointment as Director and
recommend to the Board his/her appointment.
Appointment and Remuneration of KMP or Senior
Management Personnel is in accordance with
the HR Policy of the Company. The Company's
policy is committed to acquire, develop and retain
a pool of high calibre talent, establish systems
and practises for maintaining transparency,
fairness and equity and provides for payment
of competitive pay packages matching industry
standards.
LARSEN & TOUBRO
Integrated Statutory Financial
Report
Reports
Statements
Management
Discussion and Analysis
Corporate
Overview
10.9 Considering any other matters, as may be requested by
the Board.
b) Independent Directors:
The Director, KMP and Senior Management Personnel
shall retire as per the applicable provisions of the Act
or the prevailing policy of the Company, as applicable.
The Board/Committee will have the discretion to retain
the Director, KMP, Senior Management Personnel in
the same position/ remuneration or otherwise even
after attaining the retirement age, for the benefit of
the Company.
359
Integrated Annual Report 2021-22
b) Sitting Fees:
The remuneration / commission shall be fixed as
per the limits and conditions mentioned in the
Articles of Association of the Company and the
Act.
a) Remuneration / Commission:
3.3.3. Remuneration to Non-Executive / Independent
Director:
d) Stock Options in Subsidiary Companies:
Executive Directors may be granted stock options
in subsidiary companies as per their Schemes
and after taking necessary approvals. Perquisites
may be added to the remuneration of concerned
Directors and considered in the limits applicable to
the Company.
If any Chairman/Managing Director/Whole-time
Directors draws or receives, directly or indirectly by
way of remuneration any such sums in excess of
the limits prescribed under the Act or without the
prior sanction of the Central Government, where
required, he/she shall refund such sums to the
Company and until such sum is refunded, hold it
in trust for the Company. The Company shall not
waive recovery of such sum refundable to it unless
permitted by the Central Government.
c) Provisions for excess remuneration:
If, in any financial year, the Company has no
profits or its profits are inadequate, the Company
shall pay remuneration to its Executive Directors
in accordance with the provisions of Schedule
V of the Act and if it is not able to comply with
such provisions, with the previous approval of the
Central Government.
b) Minimum Remuneration:
Committee and approved by the shareholders and
Central Government, wherever required.
The Executive Directors/ KMP and Senior
Management Personnel shall be eligible for
a monthly remuneration as may be approved
by the Board on the recommendation of the
Committee or policy of the Company. In case of
remuneration to Directors, the breakup of the
pay scale and quantum of perquisites including,
employer's contribution to P.F, pension scheme,
medical expenses, club fees etc. shall be decided
and approved by the Board/ the Person authorized
by the Board on the recommendation of the
a) Fixed pay:
3.3.2. Remuneration to Executive Directors/KMP and
Senior Management Personnel:
Management Personnel, in any form, shall be as
per the policy of the Company based on the grade
structure in the Company.
Remuneration of other KMP or Senior
e)
d) Where any insurance is taken by the Company
on behalf of its Executive Directors, Chief
Executive Officer, Chief Financial Officer, the
Company Secretary and any other employees
for indemnifying them against any liability, the
premium paid on such insurance shall not be
treated as part of the remuneration payable to
any such personnel. Provided that if such person
is proved to be guilty, the premium paid on
such insurance shall be treated as part of the
remuneration.
Increments to the existing remuneration/
compensation structure may be recommended
by the Committee to the Board which should be
within the limits approved by the Shareholders in
the case of Executive Directors.
c)
b) The remuneration and commission to be paid to
the Executive Directors shall be in accordance with
the percentage / limits / conditions laid down in
the Articles of Association of the Company and as
per the provisions of the Act.
a) The remuneration / compensation / commission
etc. to the Executive Directors will be determined
by the Committee and recommended to the Board
for approval. The remuneration / compensation /
commission etc. shall be subject to the approval
of the shareholders of the Company and Central
Government, wherever required.
3.3. Policy relating to the Remuneration of Executive
Director, KMP and Senior Management Personnel
3.3.1. General:
Annexure to the Board Report
One Lac per meeting of the Board or Committee
or such amount as may be prescribed by the
Central Government from time to time.
11. REMUNERATION DUTIES
Key audit matter
description
11.1 To consider and determine the Remuneration Policy,
based on the performance and also bearing in mind
that the remuneration is reasonable and sufficient to
attract, retain and motivate members of the Board
and such other factors as the Committee shall deem
appropriate all elements of the remuneration of the
members of the Board.
Management
Discussion and Analysis
Integrated
Report
Statutory
Reports
Financial
Statements
LARSEN & TOUBRO
Report on Other Legal and Regulatory Requirements
1.
2.
As required by Section 143(3) of the Act, based on our audit and based on the consideration of the reports of the other auditors on the
separate financial information of the joint operations referred to in Other Matters section above we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary
for the purposes of our audit.
b)
c)
d)
e)
f)
g)
h)
In our opinion, proper books of account as required by law have been kept by the Company and its joint operation company so far
as it appears from our examination of those books and the reports of the other auditors.
The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and
Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
Corporate
Overview
In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164(2)
of the Act.
366
We did not audit the financial information of 1 joint operation included in the standalone financial statements, whose financial
information reflects total assets of 1,067.79 crore as at March 31, 2022, total revenues of 352.96 crore, total net profit after tax (net)
of 11.91 crore, total comprehensive profit (net) of 11.91 crore and net cash inflows of 5.10 crore for the year ended March 31,
2022, respectively, as considered in the standalone financial statements. The financial information of this joint operation has not been
audited by the auditor whose financial information has been furnished to us by the Management of the Company, and our opinion in
so far as it relates to the amounts and disclosures included in respect of this joint operation, is based solely on the financial information
certified by the management of the Company. According to the information and explanations given to us by the Management, the
financial information of this entity is not material to the Company.
Integrated Annual Report 2021-22
Independent Auditors' Report
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
•
•
•
•
•
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether
the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its joint operations to express an
opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the
financial statements of such entities included in the standalone financial statements of which we are the independent auditors. For
the other entities included in the standalone financial statements, which have been audited by the other auditors, such other auditors
remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our
audit opinion.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matters
We did not audit the financial information of 29 joint operations included in the standalone financial statements, whose financial
information reflects total assets of 2,972.06 crore as at March 31, 2022, total revenues of 3,217.48 crore, total net loss after tax (net)
of 187.97 crore, total comprehensive loss (net) of 187.97 crore and net cash inflows of 97.18 crore for the year ended March 31,
2022, respectively, as considered in the standalone financial statements. The financial information of these joint operations has been
audited by the other auditors whose reports have been furnished to us by the Management of the Company, and our opinion in so far
as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on the reports of such other
auditors and the procedures performed by us as stated under Auditor's Responsibilities section above.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in
respect of the these matters with respect to our reliance on the work done and the reports of the other auditors and the financial information
certified by the management.
With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.
With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16)
of the Act, as amended. In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to
us:
Date: May 12, 2022
367
Integrated Annual Report 2021-22
Independent Auditors' Report
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under "Report on Other Legal and Regulatory Requirements" section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (the "Act")
We have audited the internal financial controls over financial reporting of Larsen and Toubro Limited (the "Company") as of March 31, 2022
in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date which includes
internal financial controls over financial reporting of one of the Company's 31 joint operations which is a company incorporated in India.
Management's Responsibility for Internal Financial Controls
The Company's Management is responsible for establishing and maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to respective company's policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditor's Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting of the Company and its joint
operations company incorporated in India, based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
"Guidance Note") issued by the ICAI and the Standards on Auditing ("SA"s) prescribed under Section 143(10) of the Companies Act, 2013
(the "Act"), to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, and the audit evidence obtained by the other auditor of the joint operation which is
a company incorporated in India, in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to
provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the reports
of the other auditor on internal financial controls system over financial reporting of the joint operation referred to in the Other Matters
paragraph below, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such
internal financial controls over financial reporting were operating effectively as at March 31, 2022, based on the criteria for internal financial
control over financial reporting established by the respective Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
368
Place: Mumbai
UDIN: 22039826AIVCQV7676
(Membership No. 39826)
Partner
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements;
The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts, including derivative contracts;
ii.
iii.
iv.
There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
the Company;
a.
b.
C.
The Management has represented that, to the best of it's knowledge and belief, no funds (which are material either
individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
The Management has represented, that, to the best of it's knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign
entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall,
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
365
Based on the audit procedures that has been considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)
contain any material mis-statement; and
V.
a)
b)
The final dividend paid by the Company during the year in respect of the same declared for the previous year is in
accordance with Section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
As stated in note 17 to the financial statements, the Board of Directors of the Company have proposed final dividend
for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of
dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section
143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
The amount of dividend is in accordance with Section 123 of the Act.
The duties of the Committee in relation to remuneration
matters include:
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAS will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these standalone financial statements.
The Company's Board of Directors is also responsible for overseeing the Company's financial reporting process.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LARSEN & TOUBRO LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Larsen & Toubro Limited (the "Company"), which comprise the
Balance Sheet as at March 31, 2022, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other
explanatory information, which includes 31 joint operations accounted on proportionate basis.
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports
of the other auditors on separate financial statements of the joint operations referred to in the Other Matters section below, the aforesaid
standalone financial statements give the information required by the Companies Act, 2013 (the "Act") in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS"), and other accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2022, and its profit, total comprehensive income, its cash flows and the changes in equity for the
year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing ("SA"s) specified under
section 143(10) of the Companies Act, 2013 (the "Act"). Our responsibilities under those Standards are further described in the Auditor's
Responsibility for the Audit of the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI")
together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act
and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's
Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements of the current financial year. These matters were addressed in the context of our audit of the standalone financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.
Revenue recognition - accounting for construction contracts
There are significant accounting judgements in estimating revenue to be recognised on contracts with customers,
including estimation of costs to complete. The Company recognizes revenue on the basis of stage of completion in
proportion of the contract costs incurred at balance sheet date, relative to the total estimated costs of the contract
at completion. The recognition of revenue is therefore dependent on estimates in relation to total estimated costs
of each such contract.
Significant judgements are involved in determining the expected losses, when such losses become probable based
on the expected total contract cost. Cost contingencies are included in these estimates to take into account specific
risks of uncertainties or disputed claims against the Company, arising within each contract. These contingencies
are reviewed by the Management on a regular basis throughout the life of the contract and adjusted where
appropriate. The revenue on contracts may also include variable consideration (variations and claims). Variable
consideration is recognised when the recovery of such consideration is highly probable.
Refer to Note No. [1] (ii)(e) to the Standalone Financial Statements
363
Integrated Annual Report 2021-22
Independent Auditors' Report
Revenue recognition - accounting for construction contracts
Principal Audit
Procedures
Our audit procedures related to the (1) identification of distinct performance obligations, (2) evaluation of the
process for estimation of costs to complete (3) evaluation of implications of change orders on costs estimates of
costs to complete and revenue and (4) evaluation of any variable consideration included the following:
Maharashtra, India
We tested the effectiveness of controls relating to the (a) evaluation of performance obligations and
identification of those that are distinct; (b) estimation of costs to complete each of the performance
obligations including the contingencies in respect thereof, as work progresses and the impact thereon as
a consequence of change orders; (c) the impact of change orders on the transaction price of the related
contracts; and (d) evaluation of the impact of variable consideration on the transaction price.
We selected a sample of contracts with customers and performed the following procedures:
One International Center Tower 3,
32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
Mumbai - 400 013
DELOITTE HASKINS & SELLS LLP
11.2 To ensure the remuneration maintains a balance
between fixed and incentive pay reflecting short and
long term performance objectives appropriate to the
working of the Company.
11.3 To delegate any of its powers to one or more of its
members or the Secretary of the Committee.
11.4 To consider any other matters as may be requested by
the Board.
11.5 Professional indemnity and liability insurance for
Directors and senior management.
12. MINUTES OF NOMINATION AND REMUNERATION
COMMITTEE MEETING
Proceedings of all meetings must be minuted and signed
by the Chairman of the Committee at the subsequent
meeting. Minutes of the Committee meetings will be
tabled at the subsequent Board and Committee meeting.
13. REVIEW & AMENDMENT:
The Policy shall be reviewed as and when required
to ensure that it meets the objectives of the relevant
legislation and remains effective. The Executive Committee
has the right to change/amend the policy as may be
expedient taking into account the law for the time being in
force.
362
Corporate
Management
Integrated
Statutory
Financial
LARSEN & TOUBRO
Overview
Discussion and Analysis
Report
Reports
Statements
Chartered Accountants
a.
b.
C.
Principal Audit
Procedures
As at March 31, 2022, the Company held investment with a carrying amount of ₹2,439.00 crore (excluding
*3,726.70 crore in inter corporate deposits and ₹1,145.63 crore in debentures) in L&T Metro Rail (Hyderabad)
Limited, a wholly owned subsidiary. This investment is carried at cost less impairment in the Company's standalone
financial statements. Consequent to accumulation of losses incurred by the subsidiary, the Company's management
has tested this investment for impairment in accordance with Ind AS 36 by comparing its recoverable amount with
it carrying amount as at March 31, 2022. The recoverable amount of the investment in the subsidiary is assessed
based on future discounted cash flows of the subsidiary.
We considered this as a key audit matter due to significant judgement involved in estimating future cash flows of
the subsidiary and in determining the discount rate to be used. Changes in inputs and assumptions could impact
the results of the impairment assessment.
Refer to Note Nos. [1] (ii)(m) to the Standalone Financial Statements.
Our audit procedures related to forecasts of future traffic, revenue, free cash flows generated, selection of the
method for estimating recoverable value and discount rate for the entity included the following:
• We tested the effectiveness of controls over forecasts of future traffic, revenue, free cash flows and selection
of the discount rate;
•
We evaluated the reasons for variation between the management's previous estimate of traffic, revenue and
cash flow forecasts and obtained our understanding of the manner in which revised forecasts were obtained;
With the assistance of our fair value specialists who have specialised skill and knowledge, we evaluated
the reasonableness of the methodology and discount rate by testing the source information underlying the
determination of the discount rate and mathematical accuracy of the calculations; and
•
We performed a sensitivity analysis on the discount rate to assess the extent of change in discount rate that
would be required for the investment to be impaired.
Information Other than the Financial Statements and Auditor's Report Thereon ('other information')
The Boards of Directors of the Company is responsible for the preparation of other information. The other information comprise the
information included in the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business
Responsibility Report, Corporate Governance and Shareholder's Information, but does not include the standalone financial statements and our
auditor's report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during
the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (the "Act") with respect
to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other
accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
description
Key audit matter
Impairment of Investment in a Subsidiary
LARSEN & TOUBRO
d.
Obtained and read contract documents for each selection, change orders, and other documents that
were part of the agreement.
Identified significant terms and deliverables in the contract to assess management's conclusions
regarding the (i) identification of distinct performance obligations; (ii) changes to costs to complete
as work progresses and as a consequence of change orders; (iii) the impact of change orders on the
transaction price; and (iv) the evaluation of the adjustment to the transaction price on account of variable
consideration.
Compared costs incurred with Company's estimates of costs incurred to date to identify significant
variations and evaluated whether those variations have been considered appropriately in estimating the
remaining costs to complete the contract.
Tested the estimate for consistency with the status of delivery of milestones and customer acceptance to
identify possible delays in achieving milestones, which require changes in estimated costs or efforts to
complete the remaining performance obligation.
Measurement of contract assets in respect of overdue milestones and receivables in respect of overdue invoices.
Key audit matter The Company, in its contract with customers, promises to transfer distinct services to its customers, which may
description
be rendered in the form of engineering, procurement, and construction ("EPC") services through design-build
contracts, and other forms of construction contracts. The recognition of revenue is based on contractual terms,
which could be based on agreed unit price or lump-sum revenue arrangements. At each reporting date, revenue
is accrued for costs incurred against work performed that may not have been invoiced. Identifying whether the
Company's performance has resulted in a service that would be billable and collectable where the works carried out
have not been acknowledged by customers as of the reporting date, or in the case of certain Defence contracts,
where the evidence of work carried out and cost incurred are covered by confidentiality arrangements, involves a
significant amount of judgement. Assessing the recoverability of contract assets related to overdue milestones and
amounts overdue against invoices raised which have remained unsettled for a significantly long period after the
end of the contractual credit period also involves a significant amount of judgment. Refer to Note Nos. [1](ii)(e),
[1](ii)(m) to the Standalone Financial Statements
Principal Audit
Procedures
Our audit procedures related to the (1) evaluation of evidence supporting the execution of work; (2) evaluation
of recoverability of the overdue amounts including the impact on the expected credit loss allowance; and (3)
assessment of adjusting events after the reporting date i.e. March 31, 2022 and the date when the financial
statements are approved by the Company's Board of Directors included the following:
•
Auditor's Responsibility for the Audit of the Standalone Financial Statements
We tested the effectiveness of controls relating to the (a) gathering and evaluation of evidence supporting
the execution of work; (b) evaluation of recoverability of the overdue amounts including the impact on the
expected credit loss allowance; and (c) assessment of adjusting events after the reporting date i.e. March
31, 2022 and the date when the financial statements are approved by the Board of Directors and the impact
thereof on the carrying amount of the related contract assets. Measurement of contract assets in respect of
overdue milestones and receivables in respect of overdue invoices.
In respect of the sample contracts, we compared previous estimates relating to recoverability of contract assets
and compared it with actual collections during the year.
364
Corporate
Overview
Management
Integrated
Statutory
Reports
Financial
Statements
Discussion and Analysis Report
We selected a sample of contracts assets with corresponding trade receivables that were overdue and
evaluated the basis for management's conclusions regarding the (1) evidence supporting the execution of
work for which the contract assets were recognised; (2) reasons for the delays in recovery of invoices and the
basis on which recoverability of the contract assets was assessed; (3) impact on the allowance for expected
credit losses; and (4) adjusting events after the reporting date i.e. March 31, 2022 and the date when the
financial statements are approved by the Board of Directors and the impact thereof on the carrying amount of
the related contract assets.
•
Corporate
Overview
Amount Due Date
1.71 December 31,
2021
376
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Balance Sheet as at March 31, 2022 (contd.)
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Total equity
Liabilities
Non- current liabilities
Financial liabilities
Borrowings
159915.62
Lease liability
168502.28
122017.86
650.59
Loans
14
249.60
257.87
Other financial assets
15
2182.44
2513.99
63756.12
62511.95
Other current assets
Sub-total-Current assets
TOTAL ASSETS
16
55129.23
49855.81
115245.33
780.28
Other financial liabilities
Other non-current liabilities
22
13167.64
645.27
7.84
16817.22
655.90
13820.75
17473.12
Sub-total - Non-current liabilities
Current liabilities
Financial liabilities
Borrowings
23
2097.39
6827.90
Current maturities of long-term borrowings
24
5232.49
999.56
Lease liability
21
Provisions
76.24
94.25
20
LARSEN & TOUBRO
crore
Note
As at 31-3-2022
As at 31-3-2021
17
281.01
18
66833.04
280.91
61456.91
67114.05
61737.82
19:
19
12968.41
16646.73
53.98
145.25
13
Other bank balances
3524.95
Intangible assets under development
Right-of-use assets
Financial assets
Investments
Loans
Other financial assets
Deferred tax assets (net)
Other non-current assets
Sub-total - Non-current assets
Current assets
Inventories
223
4
4
54(b)
569
44(e)
8
Other Intangible assets
9
Goodwill
Capital work-in-progress
(Firm's Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No. 39826)
UDIN: 22039826AIVCQV7676
Place: Mumbai
Date: May 12, 2022
375
Integrated Annual Report 2021-22
Balance Sheet as at March 31, 2022
Balance Sheet
crore
Note
As at 31-3-2022
As at 31-3-2021
ASSETS:
Non-current assets
Property, plant and equipment
Investment property
7908.37
8198.54
571.50
3898.29
46484.42
44670.29
3132.51
2877.57
Financials assets
Investments
10
18478.22
22232.95
Trade receivables
11
36347.35
33331.60
Cash and cash equivalents
12
5718.23
3990.30
754.27
1140.30
30565.92
238.71
589.64
408.36
47.29
47.29
147.29
70.83
11.26
124.44
48.01
440.07
27049.50
27180.62
4084.58
7
523.80
2853.52
531.78
31657.88
420.59
Chartered Accountants
114.03
25
1754.24
2381.71
1172.50
1150.68
Total Expenses
94871.65
Interest accrued for the
quarter ended December
2021 remains unpaid
82478.39
9741.41
8137.38
34
35
36
37
Tax expenses
Current tax
44(a)
2917.34
2405.17
2982.68
7396.88
1226.68
Stores, spares and tools consumed
2718.52
1701.07
Sub-contracting charges
Changes in inventories of finished goods, stock-in-trade and
work-in-progress
25166.38
21993.33
(1944.37)
362.10
Other manufacturing, construction and operating expenses
10517.85
9183.68
81565.35
69630.46
Employee benefits expense
Finance costs
6398.20
1070.62
1847.72
44(a)
Net profit after tax from discontinued operations
Net profit after tax from continuing operations & discontinued
operations
7879.45
Other comprehensive income
A Items that will not be reclassified to Profit or Loss:
Gain/(loss) on remeasurement of the defined benefits plan
Income tax (expenses)/income on remeasurments of the defined benefits
plan
Carried forward - other comprehensive income
378
11199.23
2548.75
8650.48
11797.79
77.53
52.63
(19.51)
(13.27)
58.02
58.02
39(a)(i)
44(a)
Deferred tax
Tax expense of discontinued operations
Discontinued operations
(275.92)
323.70
2129.25
2171.42
Net profit after tax (before exceptional items) from continuing
operations
7612.16
5965.96
Exceptional items before tax
59
290.06
(2818.65)
Tax expense on exceptional items
22.77
Exceptional items (net of tax)
Net profit after tax from continuing operations
267.29
7879.45
(2818.65)
3147.31
Profit before tax from discontinued operations
22869.85
31445.49
12293.75
1861.48
1650.38
659.87
416.74
TOTAL EQUITY AND LIABILITIES
CONTINGENT LIABILITIES
87567.48
101388.23
168502.28
80704.68
98177.80
159915.62
COMMITMENTS (capital and others)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
29
30
1 to 65
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
27474.76
Firm's Registration No. 117366W/W-100018
28888.84
27
Due to micro enterprises and small enterprises
473.67
448.30
Due to others
44911.67
40321.48
Other financial liabilities
26
3317.63
2451.53
56157.29
51162.80
Other current liabilities
Provisions
Current tax liabilities (net)
Sub-total - Current liabilities
TOTAL LIABILITIES
28
by the hand of
SANJIV V. PILGAONKAR
Partner
32
101000.41
3612.65
104613.06
Statement of Profit and Loss
2020-21
crore
87255.48
3360.29
90615.77
Sales, administration and other expenses
Depreciation,amortisation, impairment and obsolescence
Profit before exceptional items and tax
Manufacturing, construction and operating expenses
33
Cost of raw materials components consumed
Construction materials consumed
Purchase of stock-in-trade
12590.86
31
2021-22
Note
EXPENSES:
Membership No. 39826
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Whole-time Director & Chief Financial Officer
(DIN 00019798)
Mumbai, May 12, 2022
SIVARAM NAIR A
Trade payables:
Company Secretary & Compliance Officer
Membership No. FCS3939
377
Integrated Annual Report 2021-22
Statement of Profit and Loss for the year ended March 31, 2022
Continuing operations
INCOME:
Revenue from operations
Other income[net]
Total Income
M. M. CHITALE
Independent Director
(DIN 00101004)
39.36
For DELOITTE HASKINS & SELLS LLP
(xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other
information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on
our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any
material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at
the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that
this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date
of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from
the balance sheet date, will get discharged by the Company as and when they fall due.
Carrying
value in the
financial
statements
as at March
31, 2022
Gross
carrying
value as at
March 31,
2022
Description of
property
range,
where
Held in name of
With respect to immovable properties (other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the Company) disclosed in the financial statements as a part of property, plant and equipment, capital
work-in progress and investment property and based on the examination of the registered sale deed / transfer deed / conveyance
deed provided to us, we report that, the title deeds of such immovable properties are held in the name of the Company as at the
balance sheet date, except for the following:
(c)
(b) The Company has a program of physical verification of its property, plant and equipment and investment properties so to cover
all the items in a phased manner over a period of 3 years which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain assets were due for verification during the year and were
physically verified by the Management during the year. No material discrepancies were noticed on such verification.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of property,
plant and equipment, capital work-in progress, investment properties and relevant details of right-of-use assets.
In respect of the Company's property, plant and equipment and intangible assets:
(i)
In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us
in the normal course of audit and to the best of our knowledge and belief, we state that:
(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report to the Members of Larsen &
Toubro Limited of even date)
ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT
Independent Auditors' Report
Integrated Annual Report 2021-22
Whether
promoter,
director
or their
relative or
employee
369
Period held
- indicate
0.13
SP Mukherjee Road,
29 years
No
0.12 SVM Industries
0.15
Building 4 flats - 171,
-
sq ft)
Bengal (Area- 3925
Road, Kolkata, West
(Since 1992)
30 years
appropriate
at 171, SP Mukherjee
Land
No
0.13 SVM Industries
Undivided Land
(Since 1993)
Date: May 12, 2022
UDIN: 22039826AIVCQV7676
Refer to Note No. 63(b) to the Standalone Financial Statements.
(f) The Company has not granted any loans either repayable on demand or without specifying any terms or period of repayment
during the year. Hence, reporting under clause (iii)(f) is not applicable.
371
Integrated Annual Report 2021-22
Independent Auditors' Report
(iv) The Company has complied with the provisions of Sections 185 and 186 of the Act, to the extent applicable, in respect of grant of loans,
making investments and providing guarantees and securities during the year, as applicable.
(v)
The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause (v) of the Order
is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Act. We have broadly
reviewed the cost records maintained during the year by the Company pursuant to the Companies (Cost Records and Audit) Rules,
2014, as amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Act, and are of the opinion
that, prima facie, the prescribed cost records have been made and maintained by the company. We have, however, not made a detailed
examination of the cost records with a view to determine whether they are accurate or complete.
(vii) In respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees' State
Insurance, Income-tax, Goods and Service Tax, Sales Tax, duty of Custom, duty of Excise, Value Added Tax and corresponding cess
and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income-tax, Goods and
Service Tax, Sales Tax, duty of Custom, duty of Excise, Value Added Tax and corresponding cess and other material statutory dues in
arrears as at March 31, 2022 for a period of more than six months from the date they became payable.
(c) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on March 31, 2022 on account of
disputes are given below:
372
crore
Name of Statute
Nature of Dues
4.85%
Place: Mumbai
Percentage of the aggregate to the total
loans or advances granted during the year
0.71%
Hi-Tech Rock Products and Aggregates Limited
L&T Sapura Shipping Private Limited
(Membership No. 39826)
Partner
Sanjiv V. Pilgaonkar
(Firm's Registration No. 117366W/W-100018)
Chartered Accountants
For DELOITTE HASKINS & SELLS LLP
Our opinion is not modified in respect of this matter.
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
financial reporting insofar as it relates to one joint operation which is a company incorporated in India, is based on the corresponding report
of the other auditor of such company incorporated in India.
Other Matters
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Report
Management
Discussion and Analysis
crore
Name of the Party
Aggregate amount of
existing loans renewed
24.66
168.48
Kolkata, West Bengal
Freehold Land - Hazira
West
1.01
NIL
NIL
NIL
12,616.00
5,255.52
- Others
- Associates
- Joint Venture
- Subsidiaries
above cases*
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
crore
Refer to Note No. 63(b)(ii) to the Standalone Financial Statements.
1.79 March 31,
2022
Interest on Bridge Loan
for Working Capital
Extent of Delay Remarks, if any
90 days
(d) In respect of loans granted by the Company, there is no amount overdue for more than 90 days at the balance sheet date.
(e) During the year loans aggregating to 193.14 crore fell due from certain parties have been renewed. The details of such loans that
fell due and were renewed during the year are stated below:
Interest on Bridge Loan
for Working Capital
Nature
L&T Sapura Shipping
Private Limited
Name of the entity
L&T Sapura Shipping
Private Limited
(c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated
and the repayments of principal amounts and receipts of interest are regular as per stipulation, except for the following:
(b) The investments made, guarantees provided and the terms and conditions of the grant of all the above-mentioned loans and
guarantees provided, during the year are, in our opinion, prima facie, not prejudicial to the Company's interest.
The Company has not provided any advances in the nature of loans to any other entity during the year.
*The amounts reported are at gross amounts (including interest accrued), without considering provisions made and includes investments
made in debt instruments issued by subsidiaries.
NIL
NIL
NIL
NIL
NIL
NIL
9,816.00
In respect of the Company's inventories:
(e) No proceedings have been initiated or is pending against the company as at March 31, 2022 for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(d) The Company has not revalued any of its property, plant and equipment (including Right of Use assets) and intangible assets during
the year.
* Irrevocable Power of Attorney given to L&T by the owners, possession is with L&T
370
(ii)
The formalities are
pending from the
authorities side.
Land acquired from
farmers through
Government
Acquisition Route.
Court of Calcutta
Appeal is pending
before the High
Conveyance deed
is pending to be
executed.
Also indicate if in
dispute
Reason for not
being held in name
of Company
crore
10 years
(Since 2012)
No
1.01 1. Magan Kuber *
2. Kashiben Patel
3. Ishwar Prema
(a) The inventories except for goods in transit, were physically verified during the year by the Management at reasonable intervals. In
case of real estate inventory wherein, having regard to the nature of inventory, the physical verification by way of verification of title
deeds, site visits by the Management and certification to the extent of work completion by competent persons, are at reasonable
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
3,473.25
Security
Guarantees
Loans
crore
B. Balance Outstanding as at balance sheet date in respect of
- Others
- Associates
Forum where Dispute
is Pending
- Joint Venture
Particulars
(a) The Company has provided loans and stood guarantee during the year and details of which are given below:
(iii) The Company has made investments in, provided guarantee and granted loans, secured or unsecured, to companies or any other parties
during the year, in respect of which:
(b) The Company has been sanctioned working capital limits in excess of ₹5 crores, in aggregate, at points of time during the year,
from banks or financial institutions on the basis of security of current assets. In our opinion, the quarterly returns filed by the
Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company of the
respective quarters and no material discrepancies have been observed.
intervals. In our opinion, the coverage and procedure of such verification by the Management is appropriate having regard to the
size of the Company and the nature of its operations. In respect of goods in transit, the goods have been received subsequent
to the year end. No discrepancies of 10% or more in the aggregate for each class of inventories were noticed on such physical
verification of inventories when compared with books of account.
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
A. Aggregate amount granted / provided during the year:
- Subsidiaries
(xx) The Company has fully spent the required amount towards Corporate Social Responsibility (CSR) and there are no unspent CSR amount
for the year requiring a transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the
provision of sub-section (6) of section 135 of the said Act. Accordingly, reporting under clause (xx) of the Order is not applicable for the
year.
Goods and Services Disallowance of credits claimed in Tran-1
Tax Act, 2017
Period to which
amount relates
2017-18 and
161.00
Assessing Officer
1999-00 to
Supreme
Court of India
2005-06, 2007-08,
2009-10 to 2017-18
2010-11 to 2021-22
17.91
14.73
136.12
70.84
High court
1994-95
7.98
7.98
Income Tax Appellate
Tribunal (ITAT)
CIT(A)
2004-05, 2009-10,
2011-12, 2012-13
2011-12, 2014-15
718.39
161.50
254.69
2008-09, 2010-11,
2012-13 to 2017-18
1999-00, 2001-02
to 2017-18
827.48
658.38
2010-11, 2015-16
11.28
9.91
Special Objection
Hearing Authority
Rajasthan Tax Board
2012-13 to 2015-16
0.63
0.61
2006-07 to 2016-17
239.34 234.25
1989-90, 1996-97
to 2017-18
1,378.42 1,210.09
Joint commissioner
Appeals/ Additional
Commissioner Appeals/
Deputy Commissioner
Appeals/Assistant
Commissioner Appeals/
Commissioner Appeals
Assistant Commissioner/
Deputy Commissioner/
Additional
Commissioner/
Joint Commissioner/
Commissioner
Special commissioner
1996-97 to
1,748.62 1,666.47
1989-90, 1991-
92,1993-94 to
2017-18
2,428.08 2,245.21
373
(c) We have taken into consideration, the whistle blower complaints received by the company during the year and upto the date of this
report and provided to us, when performing our audit.
(xii) The Company is not a Nidhi Company. Therefore, reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the
related parties undertaken during the year and the details of such related party transactions have been disclosed in the standalone
financial statements as required by the applicable accounting standards.
(xiv) In respect of internal audit:
(a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in
determining the nature, timing and extent of our audit procedures.
(xv) In our opinion, during the year the Company has not entered any non-cash transactions with its Directors or persons connected to its
Directors and hence provisions of section 192 of the Act are not applicable.
(xvi) (a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under
clause (xvi)(a), (b) and (c) of the Order is not applicable.
(b) The Group has more than one Core Investment Company (CIC) as part of the group. There are two CIC forming part of the group.
(xvii) The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of the Company during the year.
374
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of
Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.
to 2018-19
(a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the
year and hence reporting under clause (x)(a) of the Order is not applicable.
Integrated Annual Report 2021-22
Independent Auditors' Report
(viii) There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 (43 of 1961) during the year.
(ix)
In respect of borrowings:
(x)
(xi)
(a) In our opinion, during the year, the Company has not defaulted in the repayment of loans or other borrowings or in the payment of
interest thereon to any lender during the year.
(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.
(c) The Company has not taken any term loan during the year and there are no unutilized term loans at the beginning of the year and
hence, reporting under clause (ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie, not been
used during the year for long-term purposes by the Company.
(e)
(f)
On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or
person on account of or to meet the obligations of its subsidiaries or associates. or joint ventures.
The Company has not raised loans during the year on the pledge of securities held in its subsidiaries or joint ventures or associate
companies.
In respect of issue of securities:
(a)
(b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures
(fully or partly or optionally) and hence, reporting under clause (x)(b) of the Order is not applicable to the Company.
In respect of fraud:
197.94
211.62
1993-94, 1994-95,
1999-00 to 2012-
13, 2015-16
2018-19
85.86
80.49
Supreme Court
2011-12 to
0.09
2015-16
High Court
2005-06 to
2012-13, 2014-15
169.26
149.89
CESTAT
to 2017-18
2003-04, 2005-06
to 2017-18
1,219.40
1,169.49
Commissioner (Appeals) 2006-07, 2012-13
Commissioner (Appeals)
to 2017-18 and
2021-22
Differential Custom Duty
matters.
Amount
Involved
Amount
Unpaid
0.95
0.95
2018-19
Disallowance of credits claimed in Tran-1
Assistant Joint
2017-18
16.25
14.86
Commissioner
The Central Excise
Act, 1944, Service
Tax under Finance
Act, 1994 and
Customs Act, 1962
Disallowance of Input Tax Credit
Dispute regarding questions of law,
classification dispute, Rate disputes and
other matters
Dispute regarding questions of law,
classification dispute and other matters
Dispute regarding question of law,
Disallowance of CENVAT credit, short
payment of service tax, Valuation
disputes, dispute regarding classification
of services/goods, disallowances of excise
duty exemption, Non-Maintenance of
Separate Books of Accounts, Export
rebate disallowance, and other matters.
Dispute of question of law, Disallowance
of CENVAT credit, short payment of
service tax, pending forms, service tax
rate dispute, valuation dispute and other
Disallowance of CENVAT credit, short
payment of service tax, pending forms,
service tax rate dispute, valuation dispute
and other matter
5.86
4.41
Deputy Commissioner
Supreme Court of India
Period to which
amount relates
2006-07 to
2015-16
Amount Amount
Involved
Unpaid
760.37
741.34
Sales Tax/VAT Tribunal
Disallowance of sales-in-transit, Taxability High Court
of subcontractor turnover, Disallowance
of labour charges, Dispute regarding
questions of law, classification dispute,
local VAT and Works contract disputes
Non submission of Forms, classification
disputes, inter-state sale turnover, Rate of
tax of declared goods, Labour & service
charges disallowed, Disallowance of
exemptions claimed for imports & Sales
in transit, Sale mismatch & levy of tax on
import of goods through Way bill, Road
permit issue and other
Non Submission of forms, subcontractor
turnover and interest related disputes and
CAG notice for interest on non-submission
of C, E1 & F Forms
Demand for pending Forms
Sale in Transit disallowance & WCT TDS
related disputes
Dispute regarding questions of law,
classification dispute, sales in transit, high
sea sales, non-submission of C forms & E1
forms, disallowance of ITC, valuation of
goods and other matters
Dispute regarding questions of law,
classification dispute, sales in transit, high
sea sales, non-submission of C forms & E1
forms, disallowance of ITC, valuation of
goods and other matters
Subcontractor Turnover, ITC disallowed
and Labor & Like Charges Disallowed
Non-Submission of forms, subcontractor
turnover related disputes and Arbitrary
enhancement of turnover
Property Tax for various development
works at Powai, Mumbai, Property Tax on
open land (Unutilised FSI) and Property
Tax on Land under construction
Demands arising out of Regular
Assessment/ Reassessment
Demands arising out of Regular
Assessment/ Reassessment
Demands arising out of Regular
Assessment/ Reassessment
CAG
1986-87, 1987-88,
Forum where Dispute
is Pending
crore
Dispute of questions of law, Classification
dispute, Tax levied on goods-in-transit,
labour charges & disallowance of input tax
credit on deemed export sales, Taxability
of sub-contractor turnover, rate of tax
for declared goods and non- submission
of forms
Nature of Dues
2014-15 to
2017-18
0.15
0.15
DGFT
2016-17
1.05
0.79
Corporate
Overview
Assistant Commissioner
Management
Integrated
Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Name of Statute
The Central Sales
Tax Act, Entry tax,
Local Sales Tax Act,
Works Contract Tax
Act and Goods &
Services Tax Act
The Mumbai
Municipal
Corporation Act,
1888
Income Tax Act,
1961
Discussion and Analysis
39.36
1 day Interest accrued for the
quarter ended March 2022
remains unpaid
Discussion and Analysis Report
364.98
Cash (used in)/generated from operations
8295.51
11511.95
Direct taxes refund/(paid) [net]
Net cash (used in)/from operating activities
B. Cash flow from investing activities:
Purchase of fixed assets
Sale of fixed assets (including advance received)
Investment in subsidiaries, associates and joint venture companies
Divestment of stake in subsidiary companies
Net proceeds from transfer of NxT business undertaking
Net proceeds/(payments) for transfer of discontinued operations (net of tax)
(Purchase)/sale of current investments (net)
Change in other bank balances and cash not availabe for immediate use
Long term deposits/loans (given) - subsidiaries, associates, joint venture companies and third parties
Long term deposits/loans repaid - subsidiaries, associates, joint venture companies and third parties
Short term deposits/loans (given)/repaid (net) - subsidiaries, associates, joint venture companies and third
parties
(2296.72)
(1951.11)
5998.79
9560.84
(1410.29)
Increase/decrease) in trade payables and customer advances
26.90
2519.02
(8128.79)
(219.84)
(1045.82)
(948.73)
(Profit)/loss on sale of fixed assets (net)
(14.78)
(477.41)
(Profit)/loss on sale of investments (net) [including fair valuation]
(506.09)
(1076.69)
Impairment of non-current investment
0.29
(781.32)
277.71
49.11
43.89
Non-cash items related to discontinued operations
2.83
Operating profit before working capital changes
9390.16
8601.05
Adjustments for:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
Employee stock option-discount forming part of employee benefits expense
60.45
(542.83)
631.80
(2272.05)
Discussion and Analysis Report
Reports
Financial
Statements
Statement of Cash Flows for the year ended March 31, 2022 (contd.)
LARSEN & TOUBRO
crore
2021-22
2020-21
Interest paid on lease liability
C. Cash flow from financing activities:
Statutory
Proceeds from fresh issue of share capital (including share application money) [net]
15.85
Proceeds from non-current borrowings [refer Note 43]
450.00
9117.73
Repayment of non-current borrowings [refer Note 43]
(18.00)
(3396.88)
(Repayments of)/Proceeds from other borrowings (net) [refer Note 43]
(4713.97)
(6823.60)
10.97
2381.71
Integrated
Corporate
Overview
785.02
107.58
(49.24)
4012.85
10845.76
(13127.63)
62.41
(1677.12)
857.25
12.32
(1743.04)
1698.96
Interest received
Management
Dividend received from subsidiaries and joint venture companies
Net cash (used in)/from investing activities
(147.85)
848.71
158.58
822.08
1615.19
1016.03
3.74
4525.87
15.34
(2723.17)
382
Dividend received from other investments
1754.24
Interest income
Finance cost
58.02 (19.90)
62.87
(137.20) (36.21)
7937.47
(19.90)
62.87
(137.20) 7843.24
51.09
51.09
1.12
7879.45
1.12
(7.30)
9.06
7.30
30
9.06
Dividend paid for previous year
(2528.38)
(2528.38)
Balance as at 31-3-2022
10.84
(25.77)
Employee share options (net)
260.00 8718.74
7879.45
300.22
General
options
redemption
reserve
Foreign
Retained currency
earnings translation
Items of Other Comprehensive Income
Debt
instruments Total other
Hedging through
equity
reserve
61456.91
other
(net)
reserve
comprehen-
sive income
10.84
(25.77) 260.00
8667.65
87.62 138.65 26072.13
25722.05
9.00
214.52
reserve
Settlement of derivative contracts related to borrowings
89.38
26079.43 31131.14
Profit before tax (excluding exceptional items) from:
Continuing operations
9741.41
8137.38
Discontinued operations
11199.23
Profit before tax including discontinued operations (excluding exceptional items)
Adjustments for:
9741.41
19336.61
Gain on transfer of discontinued operations
2020-21
(11078.33)
(1619.06) (1034.40)
Depreciation, amortisation, impairment and obsolescence (net)
1172.50
1150.68
Exchange difference on items grouped under financing/investing activities
(122.69)
(28.09)
Effect of exchange rate changes on cash and cash equivalents
(18.95)
51.27
Dividend received
138.65
2021-22
Statement of Cash Flows
(10.90)
278.51 163.02 66833.04
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm's Registration No. 117366W/W-100018
by the hand of
SANJIV V. PILGAONKAR
Partner
Membership No. 39826
crore
Mumbai, May 12, 2022
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Whole-time Director & Chief Financial Officer
(DIN 00019798)
SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
M. M. CHITALE
Independent Director
(DIN 00101004)
381
Integrated Annual Report 2021-22
Statement of Cash Flows for the year ended March 31, 2022
A. Cash flow from operating activities:
S. N. SUBRAHMANYAN
share
143.82
(13.24)
Government grants, which are revenue in nature and are towards compensation for the qualifying costs incurred by the
Company, are recognised as other income/reduced from underlying expenses in profit or loss in the period in which such
costs are incurred. Government grants related to an asset are reduced from the cost of an asset until the asset is ready to use
and the grant post that is presented as deferred income. Subsequently the grant is recognised as income in profit or loss on
a systematic basis over the expected useful life of the related asset. Government grant receivable in the form of duty credit
scrips is recognised as other income in the Statement of Profit and Loss in the period in which the application is made to the
government authorities and to the extent there is no uncertainty towards its receipt.
Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.
Exceptional items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the
performance of the Company is treated as an exceptional item and disclosed as such in the financial statements.
(g) Property, plant and equipment (PPE)
PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and
cumulative impairment, if any. All directly attributable costs related to the acquisition of PPE and, borrowing costs in case of qualifying
assets are capitalised in accordance with the Company's accounting policy.
386
Corporate
Overview
Management
Integrated
Statutory Financial
Reports Statements
Notes forming part of the Financial Statements (contd.)
NOTE [1] (II)
LARSEN & TOUBRO
Significant Accounting Policies (contd.)
Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general overhead
expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and
capitalised as a part of the cost of the PPE.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably.
PPE not ready for the intended use on the date of the Balance Sheet are disclosed as "capital work-in-progress". (Also refer to the
policies on leases, borrowing costs, impairment of assets and foreign currency transactions infra).
Depreciation is recognised using straight-line method so as to write off the cost of the assets (other than freehold land and capital
work-in-progress) less their residual values over their useful lives specified in Schedule II to the Act, or in the case of assets where the
useful life was determined by technical evaluation, over the useful life so determined.
Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is
allocated over its remaining useful life.
Depreciation method is reviewed at each financial year end to reflect the expected pattern of consumption of the future economic
benefits embodied in the asset. The estimated useful life and residual values are also reviewed at each financial year end and the effect
of any change in the estimates of useful life/residual value is accounted on prospective basis.
Dividend income is accounted in the period in which the right to receive the same is established.
D.
C.
B.
Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and
control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents
the cost of work performed on the contract plus proportionate margin, using the percentage of completion method.
Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.
385
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
C.
D.
E.
Where cost of a part of the asset ("asset component") is significant to total cost of the asset and useful life of that part is different from
the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is depreciated
over its separate useful life.
For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the
case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as "Due from customers". For
contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus
recognised losses, as the case may be), the surplus is shown as contract liability and termed as "Due to customers". Amounts
received before the related work is performed are disclosed in the Balance Sheet as contract liability and termed as "Advances
from customer". The amounts billed on customer for work performed and are unconditionally due for payment i.e. only
passage of time is required before payment falls due, are disclosed in the Balance Sheet as trade receivables. The amount of
retention money held by the customers pending completion of performance milestone is disclosed as part of contract asset
and is reclassified as trade receivables when it becomes due for payment.
Revenue from property development activities is recognised when performance obligation is satisfied, customer obtains control
of the property transferred and a reasonable expectation of collection of the sale consideration from the customer exists.
Revenue from rendering of services is recognised over time as the customer receives the benefit of the Company's performance
and the Company has an enforceable right to payment for services transferred.
Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.
Revenue from contracts for rendering of engineering design services and other services which are directly related to the
construction of an asset is recognised on the same basis as stated in (B) supra.
F.
Commission income is recognised as the terms of the contract are fulfilled.
(f)
G. Course fees/subscription income is recognised over time as per the course/subscription duration and agreed terms.
H. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the
performance obligation is satisfied and right to receive the income is established as per the terms of the contract.
(ii) Other income
A. Interest income on investments and loans is accrued on a time basis by reference to the principal outstanding and the
effective interest rate including interest on investments classified as fair value through profit or loss or fair value through other
comprehensive income. Interest receivable on customer dues is recognised as income in the Statement of Profit and Loss on
accrual basis provided there is no uncertainty of realisation.
Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the
extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the Company expects
to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining
performance obligations). The Company recognises impairment loss (termed as provision for expected credit loss on contract
assets in the financial statements) on account of credit risk in respect of a contract asset using expected credit loss model on
similar basis as applicable to trade receivables.
Depreciation on additions to/deductions from, owned assets is calculated pro rata to the period of use.
PPE is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition is recognised in the Statement of Profit and Loss in the same period.
(h) Investment property
Amortisation on impaired assets is provided by adjusting the amortisation charge in the remaining periods so as to allocate the
asset's revised carrying amount over its remaining useful life.
(j) Impairment of assets
As at the end of each financial year, the carrying amounts of PPE, investment property, intangible assets and investments in subsidiary,
associate and joint venture companies are reviewed to determine whether there is any indication that those assets have suffered an
impairment loss. If such indication exists, PPE, investment property and intangible assets are tested for impairment so as to determine the
impairment loss, if any. Intangible assets with indefinite life are tested for impairment each year.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:
(i)
in the case of an individual asset, at the higher of the fair value less costs to sell and the value-in-use; and
(ii) in the case of a cash generating unit (the smallest identifiable group of assets that generates independent cash flows), at the higher
of the cash generating unit's fair value less costs to sell and the value-in-use.
The amount of value-in-use is determined as the present value of estimated future cash flows from the continuing use of an asset,
which may vary based on the future performance of the Company and from its disposal at the end of its useful life. For this purpose, the
discount rate (pre-tax) is determined based on the weighted average cost of capital of the company suitably adjusted for risks specified
to the estimated cash flows of the asset.
If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised
immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is
reduced to its recoverable amount.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised
estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment
loss is recognised immediately in the Statement of Profit and Loss.
Intangible assets are amortised on straight-line basis over the estimated useful life. The method of amortisation and useful life are
reviewed at the end of each financial year with the effect of any changes in the estimate being accounted for on a prospective
basis.
(k) Employee Benefits
(ii)
Short-term employee benefits:
Employee benefits such as salaries, wages, short-term compensated absences, bonus, ex-gratia and performance-linked rewards
falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and are expensed in
the period in which the employee renders the service.
Post-employment benefits:
A. Defined contribution plans: The Company's superannuation scheme, state governed provident fund scheme, employee state
insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/payable under the
schemes is recognised during the period in which the employee renders the service.
B.
Defined benefit plans: The employees' gratuity fund schemes and employee provident fund schemes managed by board of
trustees established by the Company, the post-retirement medical care plan and the company pension plan represent defined
benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial valuation using
the Projected Unit Credit Method.
The obligation towards defined benefit plans is measured at the present value of the estimated future cash flows using a discount
rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of
the defined benefit obligations at the Balance Sheet date.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.
388
(i)
Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the
extent performance obligations have been satisfied. The amount of transaction price allocated to the performance
obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the
customer.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as "intangible assets under
development".
NOTE [1] (II)
Properties, including those under construction, held to earn rentals and/or capital appreciation are classified as investment property and
are measured and reported at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with
the Company's accounting policy. Policies with respect to depreciation, useful life and derecognition are followed on the same basis as
stated for PPE supra.
(i) Intangible assets
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the
Company and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if
any, less accumulated amortisation and cumulative impairment. All directly attributable costs and other administrative and other general
overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost
of the intangible assets. Research and development expenditure on new products:
(i)
(ii)
Expenditure on research is expensed under respective heads of account in the period in which it is incurred.
Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:
A. the technical feasibility of completing the intangible asset so that it will be available for use or sale;
B.
the Company has intention to complete the intangible asset and use or sell it;
Significant Accounting Policies (contd.)
C.
D.
E.
F.
the manner in which the probable future economic benefits will be generated including the existence of a market for output
of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
the Company has ability to reliably measure the expenditure attributable to the intangible asset during its development.
Development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.
387
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
the Company has ability to use or sell the intangible asset;
Revenue from construction/project related activity is recognised as follows:
Revenue is recognised when the control of the same is transferred to the customer and it is probable that the Company will
collect the consideration to which it is entitled for the exchanged goods. Revenue from commissioning of complex plant and
equipment is recognised either 'over time' or 'in time' based on an assessment of the transfer of control as per the terms of
the contract.
Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of complex plant and
equipment is recognised as follows:
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm's Registration No. 117366W/W-100018
by the hand of
SANJIV V. PILGAONKAR
Partner
Membership No. 39826
Mumbai, May 12, 2022
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Whole-time Director & Chief Financial Officer
(DIN 00019798)
In terms of our report attached
SIVARAM NAIR A
M. M. CHITALE
Independent Director
(DIN 00101004)
383
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements
NOTE [1](1)
Company overview:
Larsen & Toubro Limited ("the Company") is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. The
Company operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have
enabled the Company to attain and sustain leadership in its major lines of business for over eight decades.
The Company is engaged in core, high impact sectors of the economy and its integrated capabilities span the entire spectrum of 'design to
delivery'. Every aspect of Company's businesses is characterised by professionalism and high standards of corporate governance. Sustainability
is embedded into its long-term strategy for growth.
The Company's manufacturing footprint extends across eight countries in addition to India. The Company has several international offices and
a supply chain that extends around the globe.
Company Secretary & Compliance Officer
Membership No. FCS3939
NOTE [1] (II)
2. Fixed assets include property, plant and equipment, investment property and intangible assets adjusted for movement of (a) capital work-in-progress
for property, plant and equipment and investment property and (b) Intangible assets under development during the year.
3. Previous year's figures have been regrouped/reclassified wherever applicable.
Notes:
(14.36)
(96.33)
(117.04)
(2528.38)
(3650.89)
(1595.23)
(1895.69)
(8360.36)
(6698.15)
Net (decrease)/increase in cash and cash equivalents (A + B + C)
1. Statement of Cash Flows has been prepared under the indirect method as set out in the Indian Accounting Standard (Ind AS) 7 "Statement of Cash
Flows" as specified in the Companies (Indian Accounting Standards) Rules, 2015.
2164.30
139.52
3442.70
28.98
(57.27)
5718.23
3524.95
Principal repayment on lease liability [refer Note 43]
Dividends paid
Interest paid (including cash flows from interest rate swaps)
Net cash (used in)/from financing activities
Cash and cash equivalents at beginning of the year [refer Note 14]
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of the year [refer Note 14]
3524.95
66.73
Significant Accounting Policies
The Company's financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto issued
by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In addition, the guidance notes/announcements issued
by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgations
require a different treatment. These financials statements have been approved for issue by the Board of Directors at its meeting held on
May 12, 2022.
Significant Accounting Policies (contd.)
For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction
of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost
attributable to the performance obligation.
The Company transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue
over a period of time if one of the following criteria is met:
(a)
the customer simultaneously consumes the benefit of the Company's performance or
(b)
the customer controls the asset as it is being created/enhanced by the Company's performance or
(c) there is no alternative use of the asset and the Company has either explicit or implicit right of payment considering legal
precedents,
In all other cases, performance obligation is considered as satisfied at a point in time.
The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Transaction price is the
amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer
excluding amounts collected on behalf of a third party. The Company includes variable consideration as part of transaction price when
there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of
cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved. Variable
consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment
terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the transaction
price and accounted as interest income.
NOTE [1](ii)
Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in profit or loss
immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil
a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of
actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.
a.
b.
C.
(i)
Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is
done by measuring the progress towards complete satisfaction of performance obligation.
Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected
total contract cost as at the reporting date.
Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.
Revenue from operations
Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation and other claims,
which are not ascertainable/acknowledged by customers are not taken into account.
A.
B.
Significant judgments are used in:
(a) Statement of compliance
Notes forming part of the Financial Statements (contd.)
Statutory Financial
Reports Statements
(b) Basis of accounting
The Company maintains its accounts on accrual basis following historical cost convention, except for certain assets and liabilities that are
measured at fair value in accordance with Ind AS.
Fair value measurements are categorised as below based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety:
•
.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at
measurement date;
Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the assets or liabilities, either directly
or indirectly; and
• Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.
Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the levels of the fair value
hierarchy unless the circumstances change warranting such transfer.
LARSEN & TOUBRO
(c) Presentation of financial statements
Amounts in the financial statements are presented in Indian Rupee in crore [1 crore = 10 million] rounded off to two decimal places as
permitted by Schedule III to the Act. Per share data are presented in Indian Rupee to two decimals places.
(d) Operating cycle for current and non-current classification
Operating cycle for the business activities of the Company covers the duration of the specific project or contract or product line or
service including the defect liability period wherever applicable and extends up to the realisation of receivables (including retention
monies) within the agreed credit period normally applicable to the respective lines of business.
(e) Revenue recognition
Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods or
services to a customer.
384
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 (the Act). The Statement of Cash Flows has been prepared and presented
in accordance with Ind AS 7 "Statement of Cash Flows". The disclosures with respect to items in the Balance Sheet and Statement of
Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along
with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended.
Securities
premium
7253.98
Employee Debenture
Partner
SANJIV V. PILGAONKAR
by the hand of
Firm's Registration No. 117366W/W-100018
Chartered Accountants
For DELOITTE HASKINS & SELLS LLP
In terms of our report attached
1 to 65
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
83.93
2.00
56.03
2.00
Face value per equity share (*)
84.02
56.09
229
49
Diluted earnings per equity share (*)
49
Basic earnings per equity share (*)
Earnings per share (EPS) of 2 each from continuing operations &
discontinued operations:
61.54
61.61
49
Diluted earnings per equity share (*)
49
Basic earnings per equity share (*)
Earnings per share (EPS) of 2 each from discontinued operations:
Membership No. 39826
22.39
Mumbai, May 12, 2022
Chief Executive Officer & Managing Director
(DIN 02255382)
*crore
280.91
1,40,45,55,297
0.13
6,63,275
280.78
1,40,38,92,022
280.91
0.10
281.01
1,40,45,55,297
4,73,826
1,40,50,29,123
crore
2020-21
Number of
shares
crore
2021-22
Number of
shares
Statement of changes in Equity
B. Other equity
Issued, subscribed and fully paid up equity shares outstanding at the end of the year
Issued, subscribed and fully paid up equity share outstanding at the beginning of the year
Add: Shares issued on exercise of employee stock options during the year
Particulars
A. Equity share capital
Statement of Changes in Equity for the year ended March 31, 2022
Integrated Annual Report 2021-22
379
M. M. CHITALE
Independent Director
(DIN 00101004)
Company Secretary & Compliance Officer
Membership No. FCS3939
SIVARAM NAIR A
Whole-time Director & Chief Financial Officer
(DIN 00019798)
R. SHANKAR RAMAN
S. N. SUBRAHMANYAN
56.03
49
Diluted earnings per equity share (*)
Exchange differences in translating the financial statements of
foreign operations
184.67
(137.20)
(54.79)
40.70
Income tax (expenses)/income on debt instruments through other
comprehensive income
239.46
(177.90)
Debt instruments through other comprehensive income
39.36
2020-21
2021-22
Note
crore
LARSEN & TOUBRO
B Items that will be reclassified to Profit or Loss:
Brought forward - other comprehensive income
Statement of Profit and Loss for the year ended March 31, 2022 (contd.)
Financial
Statements
Reports
Report
Discussion and Analysis
Statutory
Integrated
Management
Corporate
Overview
redemption
reserve
(26.59)
17.56
Income tax (expenses)/income on exchange differences in
translating the financial statements of foreign operations
6.69
22.41
56.09
49
Basic earnings per equity share (*)
Earnings per share (EPS) of ₹ 2 each from continuing operations:
8.83
394.69
12192.48
7843.24
Total comprehensive income for the year
(36.21)
Other comprehensive income for the year (net of tax)
2.29
(2.97)
(0.77)
Reserves and surplus
Income tax (expenses)/income on cost of hedging reserve
3.06
Cost of hedging reserve
148.69
60.58
(69.74)
(8.59)
Income tax (expenses)/income on effective portion of
gains/(losses) on hedging instruments in a cash flow hedge
218.43
69.17
Effective portion of gains/(losses) on hedging instruments in a
cash flow hedge
13.14
(19.90)
(4.42)
11.80
Items of Other Comprehensive Income
58.02
Capital
260.00
(5.76)
(5.76)
(394.88) 401.42
(6.54)
6 5
(1.86)
(1.86)
68.05
68.05
12192.48
184.67
157.52
13.14
11837.15
Balance as at 31-3-2021
Dividend paid for previous year
Special dividend
Transfer to capital redemption reserve
Employee share options (net)
Transfer from/(to) general reserve
Transfer to non-financial assets/liabilities
Issue of equity shares
Total comprehensive income for the year (a+b)
394.69
184.67
157.52
(260.00)
(2527.66)
(2527.66)
(1123.23)
Capital
Debt
Capital reserve on
reserve business
combination
Capital
Reserves and surplus
crore
LARSEN & TOUBRO
Transfer from/(to) general reserve
Transfer to non-financial assets/liabilities
Issue of equity shares
Other comprehensive income (d)
Profit for the year (c)
Balance as at 1-4-2021
13.14
Particulars
Financial
Statements
Integrated Statutory
Discussion and Analysis Report
Reports
Management
Corporate
Overview
380
61456.91
300.22
9.00 214.52
25722.05
87.62 138.65 26072.13
(25.77) 260.00 8667.65
10.84
(1123.23)
Statement of Changes in Equity for the year ended March 31, 2022 (contd.)
39.36
Total comprehensive income for the year (c+d)
Other comprehensive income (b)
sive income
comprehen-
reserve
reserve
equity
other
through
instruments Total other
reserve
I
Hedging
currency
Retained
earnings
reserve
redemption
options
(net)
reserve
General
Foreign
Employee Debenture
share
Securities
premium
redemption
Capital
Capital reserve on
business
combination
reserve
Particulars
Balance as at 1-4-2020
10.52
translation
8599.60
11797.79
11797.79
I
Profit for the year (a)
(25.77)
115.55
58.86
(4.14)
17795.79
25670.71
99.92 533.53
8599.60
(25.77)
10.84
52,854.89
960.32
Restated balance at 1-4-2020
16957.17
(4.14)
99.92 533.53 25669.50
115.55
51894.57
(61.31)
0.32
1.21
838.62
120.17
Change on account of business combination
The Group's operating profit at ₹ 18,217 crore for the year
2021-22 registered a growth of 16.6% y-o-y, largely due
to higher revenue volumes. The EBITDA margins for the
year improved by 10 bps at 11.6%. Operational excellence
measures in Mindtree and L&T Technology Services and
lower credit cost in Financial Services aided the margin
improvement. However, impact of high commodity prices and
higher provisions on contract assets and customer receivables
exerted some pressure on the margin.
Sales and administration expenses at ₹8,832 crore is almost
in line with the previous year at 8,903 crore.
Depreciation and Amortization charge
2,904 crore in
Depreciation and amortisation charge for the year 2021-22
marginally increased to 2,948 crore from
previous year.
Profit Before Interest and Tax
Staff expenses for FY 2021-22 at 29,734 crore increased by
20.1% over the previous year and as a percentage to revenue
increased by 80 bps, reflecting manpower ramp-up in the
IT&TS segment and salary revision. The Group continues
to focus on productivity improvements, digitalisation, and
manpower optimisation across most of its businesses.
Segment-wise composition of PBIT for FY 2021-22 is
represented below:
Segment-wise PBIT
crore
7000
2000
5000
4000
3000
1000
I.
0
-1000
Infrastructure Hydrocarbon Power
Heavy
Defence
Engineering Engineering
IT &
Technology
Services
6000
Manufacturing, Construction and Operating (MCO) expenses
for FY 2021-22 at 99,739 crore increased by 15% over
the previous year. These expenses mainly comprise cost
of construction material, raw materials and components,
subcontracting expenses and interest costs in the Financial
Services business. This represents 63.7% of revenue in line
with the previous year.
Statutory Financial
Reports
Statements
Sales, Administration &
Other Expenses
Discussion and Analysis
Integrated
Report
Financial
Services
LARSEN & TOUBRO
During the year, most of the businesses registered a growth
over the previous year. The revenues from the IT&TS
segment continue to register industry leading growth.
Operating Expenses and PBDIT
crore Operating Expenses and PBDIT
180000-
140000
15624
8903
18217
8832
29734
100000
24751
60000-
86701
20000
0
Mfg., Construction &
Operating Expenses
99739
2020-21
2021-22
Staff Expenses
Operating Profit (PBDIT)
Development
Projects
Consolidated Profit after Tax (PAT) (excluding exceptional
items and profit from discontinued operations) at ₹ 8,572
crore for the year 2021-22 increased by 23.1% over the
previous year at 6,965 crore.
FY 2020-21 4522
FY 2021-22 5182
As highlighted above, the reduction in PAT and EPS over the
previous year is primarily due to the gain on divestment of
the Electrical & Automation business in FY 2020-21.
Return on Consolidated Net Worth
The Net Worth, as on March 31, 2022, at 82,408 crore,
reflects a net increase of 6,539 crore, as compared to the
position as on March 31, 2021. The Return on Net Worth
(RONW) for the year 2021-22 was lower at 11%, compared
to 16.2% in the previous year since it included the one-time
divestment gains of the Electrical & Automation business.
Liquidity & Gearing
Cash flow from Operations (including change in loans and
advances towards financing activities) decreased to
19,163 crore as compared to 23,074 crore in the
previous year due to the build-up of customer outstanding
with increase in business volumes. During the year,
additional funds were generated mainly from the divestment
of Singoli-Bhatwari Hydel Power Plant, treasury and
dividend income.
Funds were utilised mainly for repayment of borrowings
*8,677 crore, capital expenditure of 3,040 crore and
payment of dividend 2,528 crore. Further funds were
applied for purchase of current investment of 2,422 crore
and net interest payment of 2,968 crore during FY 2021-22.
Consequently, there was a net increase of 314 crore in
the cash balances as at March 31, 2022 as compared to the
beginning of the year.
Consolidated Fund Flow Statement
* crore
Particulars
FY 20-21
Operating activities
23,074
Net divestment/(investment)
11,574
FY 21-22
19,163
665
Treasury and dividend income
ESOP Proceeds (net)
1,476
1,130
11
Management
16
Consolidated Basic Earnings per Share (EPS) for the year
2021-22 at 61.71 declined over previous year at 82.49.
Consolidated Profit after Tax (PAT) (including exceptional
items and profit from discontinued operations) at ₹ 8,669
crore for the year 2021-22 decreased by 25.2% over the
previous year at 11,583 crore.
Consolidated Profit after Tax and EPS
The previous year's Profit from Discontinued Operations
includes gain from divestment of the Electrical & Automation
business and profit from operations of the same up to the
date of transfer.
1369
1501
111
139
488
470
617
533
4823
6410
1286
(197)
1123
1470
(231)
Others
939
31
Integrated Annual Report 2021-22
Other Income
It mainly consists of profit on sale of liquid/short term
investments and interest income. Other income at ₹ 2,267
crore, declined by 33.9% over 3,429 crore, mainly due to
lower investible surplus.
Finance cost
The interest expenses for the year 2021-22 at ₹3,126 crore
was lower by 20.1% over 3,913 crore for the previous year.
The decline was mainly attributable to reduction of borrowings
in the Parent entity. Also, the average borrowing cost for
FY 2021-22 decreased to 7.4% p.a. from 7.7% p.a. in the
previous year due to refinancing of debt in Hyderabad Metro.
Tax Expense
Income Tax charge for FY 2021-22 (excluding tax charge on
discontinued operations) increased to 4,217 crore compared
to 4,011 crore in the previous year on increased profits.
Exceptional Items
Exceptional items during the year mainly comprises
divestment gain on sale of Singoli – Bhatwari Hydro project
partly offset by tax on transfer of L&T Nxt to Mindtree
Limited. The previous year mainly included impairment
of funded exposure in the Heavy Forgings Joint Venture,
impairment of asset in the power development business, net
of gain on divestment of wealth management business of
L&T Finance Holdings Limited.
Profit from Discontinued Operations
The segment-wise PBIT registered improvement over previous year majorly in Infrastructure and IT&TS businesses.
Corporate
Overview
37% 50463
4368
The Order Book registered a growth of 9.2%, mainly with
receipt of some high value orders during the year. Around
21% of the Order Book comprises orders received from various
State Governments, including local authorities. The Private
sector is gathering momentum with its contribution increasing
to 20% of the total Order Book as of March 2022 as against
17% as of March 2021. Of the domestic Order Book, 38% of
the orders are funded by multi-lateral agencies.
The share of the international Order Book increased from
21% to 27% with the share of Saudi Arabia in the overall
international Order Book increasing to 63% from 32%.
Consolidated Revenue from Operations
Gross Revenue from Operations
* crore
200000-
15.1%
* crore
12537
4%, (2%)
4714
14420
4%, (4%)
1%, (1%)
■Infrastructure
150000
135979
156521
55783 36%
8901
Hydrocarbon
2%, (4%)
100000 -
■Power
Order Book Composition
■Heavy
■International
As at 31-03-2022
Health: This BU handles the turnkey Design & Build solutions of
hospitals, medical and nursing colleges. Healthcare infrastructure
is delivered with end-to-end healthcare facilities, including
medical equipment, right from concept to commissioning.
Residential Buildings: This unit is a prime EPC solutions
provider of elite, affordable and mass housing projects.
Sources of Funds
Airports: Offers design-and-build solutions for passenger &
cargo buildings and allied service buildings, with integrated
airport system solutions like baggage-handling systems,
passenger-flow monitoring system, passenger boarding
bridges, visual docking guidance systems and other facilities.
Factories: This business unit is a one-stop solution for the
EPC requirements for cement plants, automobile plants, EV
manufacturing, glass & paint manufacturing, warehouses,
automobile test tracks and food processing plants.
The business is organised into following business units (BUS):
Public Spaces: Provides design and execution of special
structures like tall statues, metro stations, convention centres,
marquee buildings, hotels, malls, integrated development and
educational institutions.
The Buildings & Factories (B&F) business is an industry leader
in Design & Engineering, Procurement and Construction (EPC)
of projects ranging from airports, hospitals, stadiums, retail
spaces, educational institutions, IT parks, office buildings,
data centers, high-rise structures to mass housing complexes,
cement plants, industrial warehouses, test tracks and other
light factory structures. The business has a track record of
building the tallest, largest, and most complex structures
across India and overseas.
Overview
BUILDINGS & FACTORIES
The funds employed by the segment at 24,234 crore as at
March 31, 2022 registered a decline of 3.7% vis-à-vis March
31, 2021, with receipt of advances in large value projects and
better vendor credit management. The increase in inventory
levels to sustain the operations from headwinds in supply
chain also impacted the funds employed to an extent.
The segment's operating margin reduced from 8.5% to 8.2%
mainly due to the impact of high commodity prices and
increased provisions on contract assets and customer receivables.
The Infrastructure segment clocked a gross revenue of
*73,560 crore for FY 2021-22, registering growth of 18.7%
over the previous year. Growth was mainly on account of pick
up in execution momentum of a strong opening Order Book.
Revenue from international operations constituted 23% of
the total revenues, compared to 25% in the previous year,
with some large value orders getting substantially completed.
Hydearbad International Airport
15
Shop and Dine
od
Lounges
101-124
Gates
Gates 3-14
个个个个
ALSFORT
HYD
G.R
WELCOME TO
Domestic
56398
16%, (14%)
Engineering
IT &
Infrastructure Hydrocarbon
Power
Heavy
Defence
Engineering Engineering
Technology
Services
Financial
Services
Development
Projects
Others
FY 2020-21 61962
FY 2021-22 73560
16964
3193
3018
3410
25619
13404
3621
6093
19265
4448
3039
3226
32474
11971
10,000
0
20,000
30,000
40,000
50000
100738 64%
63%
85516
■Defence
HYDERABAD
0
■ Others
260624
73% (75%)
2020-21
Domestic
6282
2021-22
Total Order Book:
357595 crore as at March 31, 2022
[Figures in brackets relate to previous year]
As at March 31, 2022, the Order Book is at 357,595 crore
providing a multi-year revenue visibility to the Company. The
infrastructure segment continues to dominate with a share
of 73% of the consolidated Order Book, vis-à-vis 75% as of
March 2021.
L&T Group recorded revenue of 156,521 crore during
FY 2021-22, registering a growth of 15.1%. The growth
was mainly achieved with the pickup of execution
momentum in Project businesses and substantial growth in
IT&TS business. The composition of international revenue at
the Group level is at 36% in FY 2021-22 compared to 37%
in the previous year.
30
Segment-wise Revenue
crore
80,000
70,000
60,000
50,000
■International
36,140
12,553
Capital expenditure (net)
1,153
Repayment of Borrowings
1,350
149
Capital expenditure (net)
12,553
(1,685)
11
16
2,468
1,853
4,075
(13,115)
5,999
9,561
FY 21-22
FY 20-21
crore
Sources of Funds
ESOP Proceeds (net of buyback
expenses)
Treasury and dividend income
Sale/(Purchase) of Other investments
Operating activities
4,236
Particulars
(net of Additional Borrowings)
(8,688)
As a follow up, the Union Budget 2022 has focused on high
impact areas and accelerating the capital expenditure cycle by
providing for a sharp increase in capex outlay by 35.4% (from
5.54 lakh crore in FY 2021-22 to 7.50 lakh crore in
FY 2022-23), to propel economic growth.
Net Working Capital % of
Additionally, in the Union Budget 2021, the Government
announced the Pradhan Mantri Atmanirbhar Swasth Bharat
Yojana (PMANSY), which will entail an outlay of ₹64,180
crore over six years to strengthen the existing 'National Health
Mission'. The Government also announced 18,998 crore for
metro projects. The Government announced 305,984 crore
over the next five years for a revamped, reforms-based and
result-linked new power distribution sector scheme.
Over the years, the Union Government continues to provide
policy support for Infrastructure development in India. In the
Union Budget 2021, to support initiatives such as 'Housing
for All' and 'Smart Cities Mission', the Government allocated
13,750 crore to AMRUT and Smart Cities Mission. In March
2021, the Parliament passed a bill to set up the National Bank
for Financing Infrastructure and Development (NaBFID) to
fund infrastructure projects in India.
India continues to invest heavily in infrastructure development
as the primary driver of growth. This is not only in terms of
adopting a long-term integrated focus on large infrastructure
projects but also facilitates quick implementation by providing
the necessary regulatory and timely financial support. This
has augured well for the country and as a multiplier effect,
evidenced positive sentiment on private capex as well.
Sector Performance in FY 2021-22
位置
| INFRASTRUCTURE BUSINESS
Mauritius LRT Phase 1
Integrated Annual Report 2021-22
33
Total borrowings as at March 31, 2022 reduced to ₹20,298
crore as compared to 24,474 crore in the previous year. The
loan portfolio of the Company comprises a mix of Rupee and
suitably hedged foreign currency loans. The gross debt-equity
ratio reduced to 0.30:1 as at March 31, 2022 from 0.40:1 as
at March 31, 2021. The Company has become debt free after
considering cash and cash equivalent during the year.
(1,685)
2164
140
Increase/(Decrease) in cash balance
Utilisation of Funds
1,608
1,910
Interest paid
2,528
3,651
Dividend paid
667
Net investment/(divestment)
The Prime Minister announced a national master plan for
multi-modal connectivity in October 2021, with the goal of
developing infrastructure, to lower logistic costs and improve
efficiency. The Government's PM Gati Shakti initiative is
expected to bring together 16 Ministries and is expected to
help in taking care of long-standing issues, such as disjointed
planning, lack of standardisation, problems with clearances,
and timely creation and utilisation of infrastructure capacities.
This announcement follows two major steps taken by the
Government towards advancing Indian infrastructure, namely,
the National Infrastructure Pipeline and National Monetisation
Pipeline, helping generate funds to support the capex.
Fund Flow Statement
Business operations generated cash flows of 5,999 crore
during the year as compared to ₹9,561 crore in the previous
year. The drop is mainly due to higher deployment of funds
to support growing business volumes. The cash generated
through the sale of short term investment at 4,075 crore,
treasury income of 852 crore and dividend income from
S&A companies at ₹1,615 crore has been utilised towards
repayment of borrowings (incl. repayment of lease liability) of
* 4,236 crore and net investment in S&A companies at
*667 crore, in addition to capex payment of 1,350 crore,
dividend payment of 2,528 crore and interest payment of
1,608 crore respectively.
FY 20-21 FY 21-22
1,26,414 1,18,956
crore
26%
Share of International Order Inflow (%)
Order Inflow
Parameters
Brief Summary of Performance at Standalone level:
During the year, L&T Hydrocarbon Engineering Limited,
a wholly-owned subsidiary company was merged with
the Company pursuant to the approval of the Scheme
of Arrangement from National Company Law Tribunal,
Mumbai Bench (NCLT) with appointed date of April 1, 2021.
Accordingly, previous year's figures have been restated for
comparative purpose.
L&T's standalone financials reflect the performance of
Infrastructure, Hydrocarbon, Power, Heavy Engineering,
Defence Engineering and Others. The Others segment
comprises Realty, Construction & Mining Machinery, Rubber
Processing Machinery, Smart World & Communication and
Digital Businesses.
II. L&T STANDALONE
*The significant change in the Interest Coverage Ratio for
FY 2021-22 has been due to improvement in profits
and reduction in average borrowings, especially at L&T
Standalone level.
Services and Finance
Lease Activity)
(excludes Financial
5.14 36.8%
3.76
Interest Coverage ratio*
(iv)
Services & Corporate)
Sales (Excluding Financial
14.2%
1.3%
10.7%
19.9%
22.3%
ITOS & Datacentres: Focuses on providing concept-
to-commissioning services for setting up Data Centers,
leveraging its strong mechanical, electrical and plumbing
(MEP) competencies. It also offers turnkey office space
solutions for Information Technology and Office spaces.
15%
There was a net increase of 2,164 crore in the cash
balances as at March 31, 2022 as compared to the beginning
of the year.
Revenue
87,255
26%
Liquidity & Gearing
56.09
84.02
12.2%
20.5%
67,114
61,738
EPS (in )
RONW (%)
Net Worth
7,879
11,798
PAT
9,055
8,309
PBDIT
19%
18%
Share of International Order Book (%)
3,15,567
3,08,101
Order Book
1,01,000
20%
Share of International Revenue (%)
The Government's thrust for bi-lateral co-operation bodes well
for the construction industry. In November 2021, India, US,
Israel and the UAE established a new quadrilateral economic
forum to focus on infrastructure development projects in the
region. To meet the objective of a USD 5 Trillion Economy by
2025, Infrastructure spend will be the key driver.
Post a six-year slowdown triggered by the crash in oil prices
in 2014 and deepened by the impact of COVID-19, the Gulf
Cooperation Council (GCC) construction industry is finally
set for a strong recovery, as oil production and prices have
risen and much of the non-oil sector rebounded from the
impact of the pandemic. The Middle East is continuing to
diversify into non-oil sectors and take advantage of its natural
solar resources. The region also has robust plans around
healthcare, transport, water and sewage, offering some
prime opportunities to EPC players.
Saudi Arabia, the GCC region's largest economy in 2021, has
begun to ramp up tendering on its Public Investment Fund (PIF)
Management
Integrated
Statutory
Discussion and Analysis
Report
Reports
Financial
Statements
LARSEN & TOUBRO
hereunder along with the explanation for the significant
changes i.e. change of 25% or more as compared to the
previous financial year:
Sr. No. Particulars
2020-21 2021-22 % Change
(i)
Gross Debt Equity Ratio
1.51
1.29
(ii)
PBDIT as % of net revenue
11.5%
11.6%
(iii)
OPM%
2021-22
2020-21
Domestic International
Corporate
Overview
Domestic ■International
32
Details of significant changes in key financial
ratios along with explanation:
922
3,040
Repayment of Borrowings
9,047
8,677
Purchase/(Sale) of investments
17,787
2,422
Dividend paid
3,651
2,528
Interest paid
3,388
2,968
Payment to/(receipt from) minority
interest (net)
(796)
1,020
Increase/(Decrease) in cash balance
Utilisation of Funds
2,141
314
36,140
20,969
The total borrowings as at March 31, 2022 was lower at
123,468 crore as compared to 132,605 crore as at March
31, 2021. The major decrease is in borrowings of Parent
entity, Financial Services, Nabha and Hyderabad Metro. The
gross debt equity ratio decreased to 1.29:1 as at March 31,
2022 from 1.51:1 as at March 31, 2021. The net debt equity
ratio improved to 0.81:1 as at March 31, 2022 from 1:1 as at
March 31, 2021.
In compliance with the requirement of listing regulations,
the key financial ratios of the Group have been provided
2021-22
2020-21
0
*crore
Gross Revenue from Operations
(8.9%)
Order Inflow
140000
*crore
The share of international Order Inflow for the Infrastructure
segment increased to 29%, from 19% in the previous year.
The Infrastructure segment won orders worth 93,515 crore,
lower by 8.9% over the previous year that had receipt of
large-value, high-speed rail orders. During the current year,
the Power Transmission & Distribution business registered
significant growth with receipt of a mega order in the Middle
East. The Buildings & Factories business registered growth
with receipt of some prestigious orders in the Health and
Public Space businesses. The Water & Effluent Treatment
business also received numerous orders in the Rural Water
Supply segment, majorly in Uttar Pradesh. De-growth
was seen in the Heavy Civil Infrastructure, Transportation
Infrastructure and Minerals & Metals businesses mainly due to
deferral of targeted prospects.
Financial Performance of the Segment
Increasing construction activity around the globe is expected
with global growth gaining momentum. The sharp rise
in crude prices will remain a double-edged sword, raising
expectations for the oil and gas sector and infrastructure
development in the Middle East, which would augur well
for the construction sector but simultaneously create
inflationary pressures.
While the pandemic affected the African economies, the IMF
is predicting a strong recovery that will catalyse an increase
in project investment. However, Africa's project plans are
engulfed with challenges from political instability to poor
infrastructure and lack of finance.
'giga projects' program, particularly on the Neom, Red Sea,
Diriyah Gate and Qiddiya developments, as it seeks to turn
its ambitious tourism and real estate plans into action on
the ground.
Mumbai Trans Harbour Link Project
Statements
LARSEN & TOUBRO
Financial
Statutory
Reports
Report
Discussion and Analysis
Integrated
Management
Corporate
Overview
34
100000
18.7%
80000-
102702
0
20000
8.2%
46253
20000
75%
66284 71%
77%
83061
81%
8.5%
20,969
40000-
56808
25% 15709
27231 29%
60000.
23%
16752
73560
61962
93515
19% 19641
100000
60000
B&F Fast: Responsible for exploring and creating value from
advanced construction technologies such as prefabricated
prefinished volumetric construction, modular construction,
structural steel construction, and 3D printing that will fast
track project delivery.
Engineering
Corporate
Overview
Total Order Inflow: 192997 crore during the year 2021-22
[Figures in brackets relate to previous year]
Others
Projects
Financial Services
■Development
■IT & Technology
Services
Defence
Engineering
Engineering
L&T Group achieved Order Inflows of 192,997 crore
during FY 2021-22, registering growth of 10% over the
previous year, with growth largely driven by receipt of
mega international orders in the Power Transmission &
Distribution and Hydrocarbon business. This led to an
increase in share of international Order Inflow to 44%
from 27% in previous year.
■Heavy
■Infrastructure
Hydrocarbon
2021-22
108886 56%
44%
84111
192997
L93515
48%, (59%)
Power
7312
The year witnessed booking of some noteworthy orders in
the rural water supply segment, few metro projects, a project
in Health and Public space business, a large value order
from Indian Navy in the Defence Engineering business, a
mega order from the Middle East in Power Transmission &
Distribution business and big-ticket orders in Offshore and
Onshore verticals of Hydrocarbon.
29
40000
262368 73%
36
120000
200000
280000
21% 68773
With improved order traction in Hydrocarbon and Defence
Engineering, the contribution of the Infrastructure segment
in the overall Order Inflow decreased to 48% from 59% in
previous year.
95227 27%
327354
360000
9.2%
Order Book
440000
crore
Integrated Annual Report 2021-22
357595
16%, (10%)
1%, (1%) 30912
4368
* crore
250000
Order Inflow and Order Book
As at March 31, 2022, the L&T Group comprises 93
subsidiaries, 5 associate companies, 27 joint ventures and
35 jointly held operations. Out of the total 160 entities, 54
companies belong to the 4 listed subsidiaries and 19 are
related to Development Projects. The rest of the entities in
the Group are mostly, strategic extensions of the traditional
businesses viz. EPC Contracts and Hi-Tech Manufacturing,
for enabling access to new geographies, technology, and
nuanced business segments.
b) L&T SuFin - A B2B E-Commerce online platform launched
to provide SME/MSME buyers and sellers (mainly focused on
construction and industrial products & services) to connect in
an efficient manner, thereby enabling sellers to expand their
sales reach, and for buyers to find their required products and
services seamlessly. The platform also enables logistics services
and credit facilities to support the e-commerce transactions.
Further, during FY 2021-22, the Company initiated feasibility
studies and pilot investments into new businesses planned
under Strategic Plan i.e. Data Center and Green Hydrogen.
During the year, the Company launched new businesses:
a) L&T EduTech - Which offers EdTech products and
solutions to educational institutions, skilling bodies, working
professionals, students, and learners across segments using a
technology intensive user-friendly platform.
The Group while prioritising the health and safety of its
manpower, registered a good performance in FY 2021-22
despite all the challenges. The Company continued to focus
on its goal of maximising shareholder value by an efficient
execution of its large Order Book, leveraging technology
to improve cost competitiveness, achieving operational
excellence through digital initiatives, and containing working
capital along with better funds management and divesting
non-core assets identified for sale. During the year, the
Company concluded the divestment of its 99 MW Singoli-
Bhatwari Hydel Power Plant in the state of Uttarakhand.
I. L&T CONSOLIDATED
200000
OVERALL FINANCIAL REVIEW
FY 2021-22
The Corporate Audit Services Department carries out
independent internal audits covering core business
operations, corporate departments, and support functions.
The annual audit plan of Corporate Audit Services is reviewed
by the Audit Committee of the Board to ensure the adequacy
of the coverage. The significant audit observations are
presented to the Audit Committee every quarter along with
update on the implementation of the recommended remedial
measures and the agreed actions by the Management.
LARSEN & TOUBRO
Statutory Financial
Reports
Statements
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
The operating effectiveness of Internal Financial Controls
are carried out by Corporate Audit Services team and
Internal Controls for Financial Reporting by Statutory
Auditors and no reportable material weaknesses either in
their design or operations were observed. The evaluation
included documentation review, enquiries, testing, and other
procedures considered to be appropriate in the circumstances.
Order Inflow
10.0%
175497
1360
3223
2%, (2%)
8079
4%, (1%)
32256
17%, (14%)
11971
6%, (8%)
2%, (2%) 4%, (3%)
Order Inflow Composition
Domestic ■International
2020-21
0
* crore
50000
35
127546
73%
100000-
150000- 27% 47951
0
As at 31-03-2021
79% 258581
Projects commissioned:
Prestige City Project, Bengaluru
•
Super Specialty Hospital at Warangal
37
Integrated Annual Report 2021-22
LnT Innovation Campus - Chennai
• AllMS Hospital at Gorakhpur
•Indira Gandhi Hospital at Dwarka
• AIIMS Guntur, Mangalagiri
• NXTRA data center at Chennai
•
•
Prestige Song of the South project in Bengaluru
The business also achieved important milestones in the
execution of major landmark projects:
• Delhi International Airport - Ph 3A – T1, Arrival Part A
opened for passenger movement in February 2022
• Chennai Airport- Commissioned the Arrival Lounge for
public use
• 1,30,000 Cum Engineered Fill completed in record time of
5 months at Shri Ram Temple Project, Ayodhya
.
Completion handing over of FCS ADE Facility to DRDO in
a record time of 45 days
To provide impetus for India's ambitious 'Housing for All'
initiative, the business has been extensively exploring 3D
Concrete printing, which is significantly new and radically
different from conventional construction methodology. With
extensive research and after obtaining design validation
and structural stability certification from Indian Institute
of Technology, Madras (IIT-M), the business printed a G+1
reinforced concrete building in the previous year. It has
received Performance Appraisal Certification from Buildings
Materials & Technology Promotion Council (BMTPC), Ministry
of Housing & Urban Affairs, Government of India towards
Volumetric (3D) Concrete Printing Technology (VCPT).
With the technology certification from the Government of
India's Apex Body, L&T is planning to offer this innovative
technology to all its prestigious customers and implement in
its ongoing projects.
A structured Lean Practices Implementation drive is carried
out across major projects in the business. Some of the
Lean Initiatives being implemented are Planned Percentage
Complete (PPC), Last Planner System (LPS), Constraint
Identification, Weekly Progress Tracking, Variance & Root
Cause Analysis, Workmen Performance Measurement &
Reward System, Work Sampling Technique and 5S system
implementation to remove root cause of poor housekeeping.
Extensive training programs are conducted for staff and
workmen to adopt these practices.
In addition to the existing set of digital tools to monitor
project progress, quality, safety and workmen mobilisation,
some more applications like Procurement Tracker, Material
Wastage Control Solution, Integrated Gate Entry System,
and Workforce Management Solutions were developed and
implemented to improve procurement turn-around time,
reduce wastage, track material movement, and enhance
workmen productivity. The business has inhouse developed
and introduced 'Safety Screen System' in all new high-rise
residential structures to significantly enhance the safety of
workers while working at high altitude.
Other key achievements:
• SCB Medical College and Hospital, Cuttack
•IT/Hi-Tech Park at Bangladesh
• Common Central Secretariat project at New Delhi
Orders won:
Management
Integrated
Discussion and Analysis
Report
Statutory
Reports
Financial
LARSEN & TOUBRO
Statements
Patna Medical College and Hospital
The Buildings & Factories business offers total turnkey solutions
with in-house structural & architectural design using advanced
systems like BIM 4D, 5D and BIM 360 field. The Engineering
Design and Research Centre (EDRC), supports various business
units with efficient engineering solutions and has proven
capabilities in the Data Centre segment as well.
Dedicated competency cells, advanced formwork systems,
mechanised project execution, a wide network of consultants
and vendors, digitised project control and a talented pool
of employees help the business in sustaining its leadership
position over the years.
Business Environment
India has emerged as the fastest-growing major economy in
the world and is expected to be one of the top three economic
powers in the world over the next 10-15 years, which augurs
well for the B&F business vertical that is dependent equally on
the public and the private sector investments.
As COVID-19 restrictions were gradually lifted, many parts
of the economy witnessed robust activity and private sector
capex also showed signs of revival.
While the country requires enormous investments in the
expansion and building of new airports to handle expanding
traffic and boost regional connectivity, with the onset of the
pandemic, the investment decisions got delayed.
A growing population and rising burden of new diseases boosts
the demand for health care systems in the country. The Health
BU saw prospects materializing for construction of hospitals.
The Central Vista Redevelopment Infrastructure Plan involving
multiple projects added prospects for the Public Spaces BU.
The ITOS segment looked subdued in the initial quarters with
very few large prospects and most of the large ITOS majors
deferring new investments. The year ended with the receipt
of an international order by the BU.
Indian real estate ended the fiscal on a very strong footing,
registering one of the highest growth in recent times,
positively impacting the business. However, Central & State
Government prospects under 'Housing for All scheme' did
not pick up as anticipated during the period.
The Factories BU saw traction with improved private capex in
the green energy and related segments like electric scooter
factory. Cement manufacturing and industrial chemicals like
paints are also gaining traction.
The B&F Fast division has started expanding into the
market with jobs from Central Government agencies and
other structural steel buildings with some private players.
The business is now exploring to exploit its expertise in
technologies like 3D printing, PPVC, etc.
Investments in the GCC region remained muted during
the financial year.
Major Achievements
Various training programs, for staff and workmen, have been
conducted throughout the year to inculcate a pro-safety
culture in the organisation.
38
Integrated Annual Report 2021-22
A.
Integrated
Management
Corporate
Overview
394
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money
is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
(iii) a reliable estimate can be made of the amount of the obligation.
Discussion and Analysis Report
(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
Provisions are recognised only when:
(w) Provisions, contingent liabilities and contingent assets
Interests in joint operations are included in the segments to which they relate.
The Company as a joint operator recognises in relation to its interest in a joint operation, its share in the assets/liabilities held/ incurred
jointly with the other parties of the joint arrangement. Revenue is recognised for its share of revenue from the sale of output by the joint
operation. Expenses are recognised for its share of expenses incurred jointly with other parties as part of the joint arrangement.
(v) Interests in joint operations
Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with
the tax as applicable.
(i) the Company has a present obligation (legal or constructive) as a result of a past event; and
Statutory Financial
Reports Statements
LARSEN & TOUBRO
Notes forming part of the Financial Statements (contd.)
(iii) funding related commitment to subsidiary, associate and joint venture companies; and
(ii) uncalled liability on shares and other investments partly paid;
(i) estimated amount of contracts remaining to be executed on capital account and not provided for;
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
(x) Commitments
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under
such contract, the present obligation under the contract is recognised and measured as a provision.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Contingent assets are disclosed where an inflow of economic benefits is probable.
a present obligation arising from past events, when no reliable estimate is possible.
(ii)
(i)
a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the
obligation; and
Contingent liability is disclosed in case of:
Significant Accounting Policies (contd.)
NOTE [1] (II)
Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits will be
available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of
the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company's financial
statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates as per laws enacted
or substantively enacted as on the Balance Sheet date.
Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and using estimates and judgments based on the expected outcome of assessments/appeals and
the relevant rulings in the areas of allowances and disallowances.
Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting
policies have been followed for segment reporting:
The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and
resource allocation to the segments.
Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision
making body in the Company to make decisions for performance assessment and resource allocation.
(t) Accounting and reporting of information for Operating Segments
all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign currency
translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations.
income and expenses for each income statement are translated at average exchange rate for the reporting period; and
C.
B.
A. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;
1.60
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
i) Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment including inter
segment revenue.
(iv) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.
Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive details.
(y) Discontinued operations and non-current assets held for sale
ii)
iii) Most of the common costs are allocated to segments mainly on the basis of the respective segment revenue estimated at the
beginning of the reporting period.
(u) Taxes on income
Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price which are
either determined to yield a desired margin or agreed on a negotiated basis.
x)
ix) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1 (ii)(r) supra] and is allocated to the segment.
viii) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and
liabilities represent the assets and liabilities that relate to the Company as a whole.
vii) Segment results have not been adjusted for any exceptional item.
vi) Segment result includes the finance costs incurred on interest bearing advances with corresponding credit included in "unallocable
corporate income/(expenditure)(net).
v) Segment result represents profit before interest and tax and includes margins on inter-segment capital jobs, which are reduced in
arriving at the profit before tax of the Company.
iv) Income which relates to the Company as a whole and not allocable to segments is included in "unallocable corporate income/
(expenditure)(net)".
Significant Accounting Policies (contd.)
NOTE [1] (II)
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
393
Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result.
(m) Financial instruments
Discontinued operation is a component of the Company that has been disposed of or classified as held for sale and represents a major
line of business.
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs
to sell.
As at
Up to
31-3-2022 31-3-2022 31-3-2021
Up to
currency Deductions
year investment
property/ fluctuation
from
As at As at
31-3-2022 31-3-2021
Foreign
Up to
31-3-2021
As at
31-3-2022
currency Deductions
Additions investment
Trf (to)/
Foreign
For the
fluctuation
inventories
property
9.56
701.49
11.69 (183.75)
873.55
Sub total -Land
1.60
9.56
144.01
144.01
Leasehold
557.48
11.69 (183.75)
729.54
Freehold
Land
As at
1-4-2021
Trf (to)/
from
Class of assets
Book value
Common control business combination is accounted using the pooling of interest method where the Company is transferee. Assets
and liabilities of the combining entities are reflected at their carrying amounts and no new asset or liability is recognised. Identity of
reserves of the transferor company is preserved by reflecting them in the same form in the Company's financial statements in which
they appeared in the financial statements of the transferor company. The excess between the amount of consideration paid over the
share capital of the transferor company is recognised as a negative amount and the same is disclosed as capital reserve on business
combination.
(ab) Business Combination
Significant Accounting Policies (contd.)
NOTE [1] (II)
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
395
The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and
the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions
made by management are explained under respective policies. Revisions to accounting estimates include useful lives of property, plant
and equipment & intangible assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, expected
cost of completion of contracts, provision for rectification costs, fair value/recoverable amount measurement, etc. Difference, if any,
between the actual results and estimates is recognised in the period in which the results are known.
(aa) Key sources of estimation
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for
general use as at the date of Balance Sheet.
(iii) all other items for which the cash effects are investing or financing cash flows.
(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the effects of:
(i) changes during the period in inventories and operating receivables and payables, transactions of a non-cash nature;
(z) Statement of Cash Flows
The financial information in the financial statements in respect of prior periods is restated from the beginning of the preceding period in
the financial statements if the business combination date is prior to that date. However, if business combination date is after that date,
the financial information in the financial statements is restated from the date of business combination.
Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally
through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and
is expected to qualify for recognition as a completed sale within one year from the date of classification.
The gain/loss net of tax on transfer of business within common control entities is recognised in the statement of profit and loss account
by the transferor entity.
On March 23, 2022, Ministry of Corporate Affairs amended Ind AS 16 (specifying accounting of net sale proceeds generated while
preparing the asset for its intended use), Ind AS 37 (specifying the composition of the cost of fulfilling the contract), Ind AS 103
(specifying the criteria for applying acquisition method for recognising assets and liabilities) and Ind AS 109 (specifying which fees to be
included to apply 10 per cent test). These amendments are effective from April 1, 2022 and will not have material impact on Company's
financial statements.
Impairment
crore
Depreciation
Cost/Valuation
LARSEN & TOUBRO
Property, Plant and Equipment & Capital work-in-progress
NOTE [2]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
396
(ac) Recent Pronouncement:
Financial assets and/or financial liabilities are recognised when the Company becomes party to a contract embodying the related financial
instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and
where such values are different from fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from as the case may be, the fair value of such financial assets or liabilities, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.
In case of funding to subsidiary companies in the form of interest free or concession loans and preference shares, the excess of the
actual amount of the funding over initially measured fair value is accounted as an equity investment.
A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally
enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the
liability simultaneously.
390
The stock options granted to employees in terms of the Company's Stock Options Schemes, are measured at the fair value of the options
at the grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over the vesting
period on a straight-line basis. The amount recognised as expense in each year is arrived at based on the number of grants expected to
vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such grant is transferred to
the general reserve within equity.
(r) Share-based payment arrangements
asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready
for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Significant Accounting Policies (contd.)
NOTE [1] (II)
Notes forming part of the Financial Statements (contd.)
The fair value of the stock options granted to employees of the Company by the Company's subsidiaries is accounted as employee
compensation cost over the vesting period and where such fair value is not recovered by the subsidiaries, the same is treated as dividend
declared by them. The share-based payment equivalent to the fair value as on the date of grant of employee stock options granted to
key managerial personnel is disclosed as a related party transaction in the year of grant.
LARSEN & TOUBRO
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
392
Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventorised as part of cost of such asset till such time the
Statutory Financial
Reports Statements
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
(s) Foreign currencies
(i)
The functional currency and presentation currency of the Company is Indian Rupee.
0.53
553
11.16
11.16
1.79 653.78
-
557.48 729.54
132.85 134.46
690.33
(iv) Financial statements of foreign operations whose functional currency is different than Indian Rupees are translated into Indian
Rupees as follows:
(iii) exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or receipt of
advance consideration is used for initial recognition of related asset, expense or income.
exchange differences on transactions entered into to hedge certain foreign currency risks.
B.
A. exchange differences on foreign currency borrowings relating to assets under construction for future productive use, are
included in the cost of those assets when such exchange differences are regarded as an adjustment to finance costs on those
foreign currency borrowings; and
(ii) Transactions in currencies other than the Company's functional currency are recorded on initial recognition using the exchange
rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the closing spot rate.
Non-monetary items that are measured in terms of historical cost in foreign currency are not translated. Exchange differences that
arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are
recognised in the Statement of Profit and Loss in the period in which they arise except for:
Borrowing costs include finance costs calculated using the effective interest method, finance charges in respect of assets acquired on
lease and exchange differences arising on foreign currency borrowings to the extent they are regarded as an adjustment to finance costs.
In cases where hedging instruments are acquired for protection against exchange rate risk related to borrowings and are accounted
as hedging a time-period related hedge item, the borrowing costs also include the amortisation of premium element of the forward
contract and foreign currency basis spread as applicable, over the period of the hedging instrument.
(q) Borrowing Costs
(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium.
The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options
Scheme.
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
391
The cash flow hedges are allocated to the forecast transactions on gross exposure basis. Where the hedged forecast transaction
results in the recognition of a non-financial asset, such gains/losses are transferred from hedge reserve (but not as reclassification
adjustment) and included in the initial measurement cost of the non-financial asset.
In case of time period related hedges, the premium element and the spot element of a forward contract is separated and only
the change in the value of the spot element of the forward contract is designated as the hedging instrument. Similarly, wherever
applicable, the foreign currency basis spread is separated from the financial instrument and is excluded from the designation of that
financial instrument as the hedging instrument in case of time period related hedges. The changes in the fair value of the premium
element of the forward contract or the foreign currency basis spread of the financial instrument is accumulated in a separate
component of equity as "cost of hedging reserve". The changes in the fair value of such premium element or foreign currency
basis spread are reclassified to profit or loss as a reclassification adjustment on a straight-line basis over the period of the forward
contract or the financial instrument.
Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of derivatives that
are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in equity as
'hedging reserve'. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts
previously recognised in other comprehensive income and accumulated in equity relating to the effective portion, are
reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same head as the hedged item.
The effective portion of the hedge is determined at the lower of the cumulative gain or loss on the hedging instrument from
inception of the hedge and the cumulative change in the fair value of the hedged item from the inception of the hedge and
the remaining gain or loss on the hedging instrument is treated as ineffective portion.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the
hedged risk is amortised to profit or loss from that date.
Fair value hedges: Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are
recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk.
B.
A.
(iii) The Company designates certain hedging instruments, such as derivatives, embedded derivatives and in respect of foreign currency
risk, certain non-derivatives, as either fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
Hedges of foreign exchange risk on firm commitments are accounted as cash flow hedges.
A financial liability is derecognised when the related obligation expires or is discharged or cancelled.
Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL are
subsequently measured at fair value. Financial guarantee contracts are subsequently measured at the amount of impairment
loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher. All other financial
liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method.
B.
NOTE [1] (II)
(1.60)
Significant Accounting Policies (contd.)
(iv) Compound financial instruments issued by the Company which can be converted into fixed number of equity shares at the option
of the holders irrespective of changes in the fair value of the instrument are accounted by recognising the liability and the equity
components separately. The liability component is initially recognised at the fair value of a comparable liability that does not have
an equity conversion option. The equity component is initially recognised at the difference between the fair value of the compound
financial instrument as a whole and the fair value of the liability component. The directly attributable transaction costs are allocated
to the liability and the equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the
liability component of the compound financial instrument is measured at amortised cost using the effective interest method. The
equity component of a compound financial instrument is not remeasured subsequently.
B.
A. The difference between the face value of the equity shares and the consideration received in respect of shares issued.
Securities premium includes:
(i)
(p) Securities premium
Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which
have restrictions on repatriation. Short-term and liquid investments being subject to more than insignificant risk of change in value, are not
included as part of cash and cash equivalents.
(o) Cash and bank balances
Assessment of net realisable value is made at each reporting period end and when the circumstances that previously caused inventories
to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value because of changed
economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original amount written-down so that
the resultant carrying amount is the lower of the cost and the revised net realisable value.
(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically identifiable
cost or net realisable value.
(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable
value. Cost includes costs of purchases, costs of conversion and other costs incurred in bringing the inventories to their present
location. Taxes which are subsequently recoverable from taxation authorities are not included in the cost.
Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In some
cases, manufacturing work-in-progress are valued at lower of specifically identifiable cost or net realisable value. In the case of
qualifying assets, cost also includes applicable borrowing costs vide policy relating to borrowing costs.
(ii)
(i) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net
realisable value. However, these items are considered to be realisable at cost if the finished products in which they will be used, are
expected to be sold at or above cost.
Inventories are valued after providing for obsolescence, as under:
(n) Inventories
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer
qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity at that
time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast
transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised in profit or loss.
7.37 3242.84 548.03 108.61
0.53
58.97 (5.18)
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Investment in equity instruments issued by subsidiary, associate and joint venture companies are measured at cost less
impairment.
Investment in preference shares of the subsidiary companies are treated as equity instruments if the same are convertible
into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose of redemption of
such investments. Investment in preference shares not meeting the aforesaid conditions are classified as debt instruments
at FVTPL.
Investments in equity instruments issued by other than subsidiaries are classified as at FVTPL, unless the related
instruments are not held for trading and the Company irrevocably elects on initial recognition to present subsequent
changes in fair value in other comprehensive income.
Trade receivables, security deposits, cash and cash equivalents, employee and other advances - at amortised cost.
For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for impairment and
exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other than on
account of above income or expense) are recognised in other comprehensive income and accumulated in other equity. On
disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified
to profit or loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on
disposal of investments.
(Also refer to policy on depreciation, supra)
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports Statements
Notes forming part of the Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
C.
The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and
selling financial assets; and
A financial asset is primarily derecognised when:
•
7.
(i)
Financial assets:
A. All recognised financial assets are subsequently measured in their entirety either at amortised cost or at fair value as follows:
1.
2.
Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value. Debt
instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in profit or loss.
Investments in debt instruments that meet the following conditions are subsequently measured at amortised cost (unless
the same designated as fair value through profit or loss):
•
The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and
•
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
B.
3. Investment in debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)
4.
5.
6.
.
Financial liabilities:
1.
2.
costs.
(iv) Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company's
offer of the termination benefit can no longer be withdrawn or when the Company recognises the related restructuring costs
whichever is earlier.
(I) Leases
Assets taken on lease are accounted as right-of-use assets and the corresponding lease liability is recognised at the lease commencement
date.
Initially the right-of-use asset is measured at cost which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, as reduced by any lease incentives received.
The lease liability is initially measured at the present value of the lease payments, discounted using the Company's incremental borrowing
rate. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, or a change in the
estimate of the guaranteed residual value, or a change in the assessment of purchase, extension or termination option. When the lease
liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The right-of-use asset is measured by applying cost model i.e. right-of-use asset at cost less accumulated depreciation and cumulative
impairment, if any. The right-of-use asset is depreciated using the straight-line method from the commencement date to the end of the
lease term or useful life of the underlying asset whichever is earlier. Carrying amount of lease liability is increased by interest on lease
liability and reduced by lease payments made.
Lease payments associated with following leases are recognised as expense on straight-line basis:
(i) Low value leases; and
(ii) Leases which are short-term.
Assets given on lease are classified either as operating lease or as finance lease. A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset. Asset held under finance lease is initially recognised
in Balance Sheet and presented as a receivable at an amount equal to the net investment in the lease. Finance income is recognised over
the lease term, based on a pattern reflecting a constant periodic rate of return on Company's net investment in the lease. A lease which
is not classified as a finance lease is an operating lease.
The Company recognises lease payments in case of assets given on operating leases as income on a straight-line basis. The Company
presents underlying assets subject to operating lease in its Balance Sheet under the respective class of asset.
Buildings
3195.89
Long-term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefits
expense. Interest cost implicit in long-term employee benefit costs is recognised in the Statement of Profit and Loss under finance
the right to receive cash flows from the asset has expired, or
The obligation recognised in respect of long-term benefits such as compensated absences, long service award etc. is measured at
present value of estimated future cash flows expected to be made by the Company and is recognised in a similar manner as in the
case of defined benefit plans vide (ii)(B) supra.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to
recognise the obligation on a net basis.
LARSEN & TOUBRO
D.
the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a pass-through arrangement; and (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
On derecognition of a financial asset in its entirety, the difference between the carrying amount at the date of derecognition
and the consideration received is recognised in profit or loss.
Impairment of financial assets: Impairment loss on trade receivables is recognised using expected credit loss model, which
involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted under Ind AS 109
and is adjusted for forward looking information. Impairment loss on investments is recognised when the carrying amount
exceeds its recoverable amount. For all other financial assets, expected credit losses are recognised based on the difference
between the contractual cashflows and all the expected cash flows, discounted at the original effective interest rate. ECLs are
measured at an amount equal to 12-month expected credit losses or at an amount equal to lifetime expected credit losses if
the credit risk on the financial asset has increased significantly since initial recognition.
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports Statements
LARSEN & TOUBRO
Notes forming part of the Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the
Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is recognised in
the Statement of Profit and Loss under finance costs. Gains or losses on settlement of any defined benefit plan are recognised when
the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the
Company recognises related restructuring costs or termination benefits.
(iii) Long-term employee benefits:
389
265.82
864.00
in various co-operative societies: 0.36 crore (previous year: 0.36 crore) for which share certificates are yet to be issued.
₹
in various apartments: 8.82 crore. (previous year: 8.82 crore).
C.
B.
(i) A. in various co-operative societies, shop-owners' associations and non-trading corporations: 68.21 crore, including 2610
shares of 50 each, 75 shares of 100 each. (previous year: in various co-operative societies, shop-owners' associations and
non-trading corporations: 68.26 crore, including 2615 shares of 50 each, 75 shares of 100 each).
Cost of buildings includes ownership accommodations:
a)
571.50 238.71
8479.87 8437.25
Add: Capital work-in-progress [refer Note 2(k)]
8198.54
1011.85
421.24
948.66
181.88 6430.31 102.62 102.62 7908.37
226.64 5590.61 104.60 102.62
240.79 14441.30 5590.61 1021.04 (3.87) 4.41
379.72 13891.76 4881.33 962.27 (10.55) (15.80)
(6.79)
D. in proposed co-operative societies 30.59 crore. (previous year: 30.59 crore).
(ii) ownership accommodations of 11.75 crore representing undivided share in properties at various locations. (previous year:
11.75 crore).
397
Integrated Annual Report 2021-22
a.
Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the consumption
pattern of the assets and the past performance of similar assets.
Out of its leasehold land at Hazira, the Company has given certain portion of land for the use to its joint venture company and the lease
deed is under execution.
g)
f)
Cost as at April 1, 2021 of individual assets has been reclassified wherever necessary.
e)
1709.34 (53.37)
Owned assets given on operating lease have been presented separately under respective class of assets as "Leased out" pursuant to Ind
AS 116 "Leases".
Additions during the year and capital work-in-progress of buildings include 8.83 crore (previous year: 27.75 Crore) being borrowing
cost capitalised in accordance with Accounting Standard (Ind AS) 23 "Borrowing Costs".
d)
b)
Property, Plant and Equipment & Capital work-in-progress (contd.)
NOTE [2]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
The rate used to determine the amount of borrowing costs eligible for capitalisation is 6.23% (previous year: 5.71%).
12622.30
Previous year
4.46
4.75
10.48
195.22 37.38
5.01
226.00 31.44
679.69 233.90 31.92
20.68
0.09
50.34
4.75
Leasehold Improvements
195.22
Aircraft
226.00
Breakwater Structures
679.69
264.24
398
71.02
213.66
979.32 (193.45)
13891.76
Total
1369.90 353.06 68.18
4.99
1364.91
Sub total Other assets
193.22
4.66
157.84
147.36
47.86
194.57
189.55
36.45
413.87 445.78
0.09
Estimated useful life of the following assets is in line with useful life prescribed in schedule II of the Companies Act, 2013:
Sr. No Asset Class
Minimum useful life (in years) Maximum useful life (in years)
1.
Buildings
5-15
15
Modular furnace
10-30
15
Boring/Rolling/Drilling/Milling machines
Plant & equipment
Other furnaces
1.
years)
Useful life adopted (in
Useful life as per
Schedule II (in
Sub-category of Assets
Category of Assets
No
Sr.
years)
Assets used in Heavy Engineering Business:
15
Horizontal autoclaves
5-15
5
Carpeted roads-other than RCC
Roads
2.
10-30
15
5-30
Cranes
15
Flushing facility
50
15
Load bearing structures
10-30
15
3
Dredged Channel
A
20
8
10
Furniture & fixture
5.
5
4
Office equipment
4.
10
6
3.
15
8
Plant & equipment
2.
60
3
3
18
7
6.
8
Motor Cars
Vehicles
2.
Aircrafts
1.
adopted (in years)
Useful life
Vehicles
Useful life as per
Schedule II (in years)
Sr. No Category of Assets
Estimated useful life of following assets is different than useful life as prescribed in schedule II of the Companies Act, 2013.
b.
14
14
7. Ships
10
Sub-category of Assets
0.24
Computer
6.83
100.80 113.79
Other assets
Ships
264.00
22.40 (0.05)
272.63
Office equipment
137.21
15.02 3413.71 3361.26
124.22
19.51 417.57
0.08
71.10
365.90
21.28 541.79
0.08
59.88
503.11
Computers
15.02
125.26 4456.27
3.16
(0.35)
3885.87 692.85
164.25 7885.00
3.19
786.20 (2.29)
7262.15
156.85
equipment
23.11
28.42
0.30
5.38 210.26
0.01
0.01 79.28 91.10
Furniture & fixtures
154.50
9.19
(2.18)
0.04
8.47
153.08
95.44
16.43
(1.89)
0.03
5.72 289.55
103.18
0.24
0.24
49.66 58.83
Vehicles
265.02
26.00
0.33
33.70 257.65
151.23
0.29
0.31
(0.03)
Sub total- Plant &
15.02
15.02 3411.67 3355.77
2.04 5.49
87.35 87.35 2501.71 2560.51
Plant & equipment
Owned
7099.43
786.20
181.52 33.85
3.19
Leased out
162.72
164.25 7722.28 3728.64 689.40 (0.35)
162.72 157.23 3.45
3.16
(2.29)
125.26 4295.59
160.68
15
7
с
Assets used in Defence Engineering Business:
Sr.
Category of Assets
Sub-category of Assets
No
1.
Factory Buildings
50
[1] Represents licence period as per agreement executed with the Tamil Nadu Maritime Board, renewable on expiry.
Useful life adopted
(in years)
5-50
Useful life as per
Schedule II (in years)
30
Non-Factory Buildings
3 -60
2-60
2.
Buildings
8
Motor Cars
30
30 [1]
15
(iii)
Plant & equipment
Rails
15
Diesel Generator
15
Air-Conditioner & refrigeration
15
5
22222
25
20
12
12
equipment
(iv) Buildings
Internal roads
(v)
Vehicles
40
Production shops
15
Tower cranes
4-30
4-30
4-30
4555
Assets deployed at project sites
Assets deployed at Office
Assets deployed at project sites
Assets deployed at Office
Canteen Equipments
Air-condition and Refrigeration
Water Cooler
4-30
Other Office Equipments
Switches & Routers
3-6
וס
6
3-6
3
8-30
8-30
Inkjet/LaserJet Printers, Switchers
Audio Video & Projectors
55
12
Photographic Equipments
NOTE [2]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
4-30
4-30
Assets deployed at project sites
4-30
15
Assets deployed at project sites
Assets deployed at Office
Laboratory Equipments
4-30
8
Assets deployed at project sites
Assets deployed at Office
8
15
2853.13
283.48
B
Assets used in Shipbuilding Business:
Asset category
(i) Breakwater Structures
(ii)
Dredged Channel
Sub-category of Assets
Breakwater & Rock Bund
Property, Plant and Equipment & Capital work-in-progress (contd.)
Ship lift structures, Control system,
Chiller units, Condition monitoring
system, Ship position system, Ship
transfer system, other ship lift related
structures
Useful life as per
Schedule II (in years)
30 [1]
30[1]
Revised Useful life
adopted based on
technical evaluation
(in years)
50
20
20
Land berth and piled platforms
LARSEN & TOUBRO
NOTE [2]
Notes forming part of the Financial Statements (contd.)
Statements
277.70
283.48
277.70
Joint venture companies, considered good
1891.60
1730.38
Less: Allowance for expected credit loss
1730.38
1730.38
Unsecured other loans, considered good
161.22
0.07
4084.58
NOTE [7]
Non current Assets: Financial Assets - Others
Particulars
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Plant & equipment
General
Notes forming part of the Financial Statements (contd.)
1-30
Equipments
Tunneling and transmission Line
8-30
12
General
Plant & equipment
Software
6
Depending on life of
Specialised software
Software
15-25
20
Ships
10
5-60
Housing colony
5-60
60
Office building
Buildings
(in years)
Useful life adopted
Useful Life as per
Schedule II (in years)
Sub Class
Category
Assets used in Hydrocarbon business
E
In addition to above any assets purchased for project site with acquisition value less than 50,000 for above 5 categories of
Asset, full cost is depreciated in the same financial year.
5.
50
3
8-30
15
8-30
15
8-30
15
Servers & Storage & Network
Laptop/Deskop
Earth-moving Equipment
Plant & Machinery
Others
Welding Equipment
Office Equipments
Computers
8-30
15
Cranes 100 Tons
Pipeline Equipment
15
Piling Equipment
8-30
15
Crushing Equipment
8-30
15
Road Making Equipment
8-30
15
Property, Plant and Equipment & Capital work-in-progress (contd.)
Concreting Equipment
Heavy Lift Equipment
8-30
8-30
3 3 3 m
15
10
10
1-15
4-5
1-8
3-6
Motor cars
Vehicles
6.
Furniture & fixture
5.
Office equipment
4.
Computer
3.
1-20
1-12
refrigeration equipment
Air conditioning and
1-21
10
Electrical installation
1-8
10
Laboratory equipment
5-8
15
Photographic equipment
1-8
8
Canteen equipment
12
8
7
399
15
15
Assets deployed at project site
Photographic equipment
Assets deployed at project site
Laboratory equipment
4.
Assets deployed at project site
Assets deployed at project site
Canteen equipment
3.
Air conditioning and
refrigeration equipment
2.
3
5
Assets deployed at project site
Office equipment
1.
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Fax/Printers/Scanner (MFD), Desktop
NOTE [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
D
8-15
400
Sr.
Category of Assets
Sub-category of Assets
No
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
Assets used in Construction business:
Sub Class
Add: Intangible assets under development [refer Note 4(c)]
Category
16.09
27.78
3
Other bank balances (including interest accrued thereon) not available for immediate use being security
offered for bids submitted, loans availed, acquisition etc.
601.04
616.43
Total
644.84
671.23
Less: Amount reflected under current assets [refer Note 13]
550.55
387.38
Amount reflected under other financial assets - non-current [refer Note 7]
94.29
Contingency deposit (including interest accrued thereon) received from customers of property
development business towards their sales tax liability - to be refunded / adjusted depending on the
outcome of the legal case.
283.85
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [8]
Other non-current assets
Particulars
Capital advances:
Secured
Unsecured
Advance recoverable other than in cash
Current tax receivable (net)
NOTE [9]
Current Assets: Inventories
crore
407
As at 31-3-2022
2
27.71
Note 7(a)
Particulars of cash and bank balances not available for immediate use
0.39
2853.52
crore
As at 31-3-2022
179.87
39.86
As at 31-3-2021
161.45
37.79
140.01
0.36
123.66
2.89
94.29
283.85
129.74
100.06
27.02
2.39
77.73
6.12
79.28
13.45
523.80
531.78
Sr.
As at
Particulars
No.
31-3-2022
crore
As at
31-3-2021
1
Amount received (including interest accrued thereon) from customers of property development business –
to be handed over to housing society on its formation.
1.75
As at 31-3-2021
0.92
0.61
2877.57
Note: During the year 28.06 crore (previous year: 5.19 crore) was recognised as expense towards write-down of inventories (net).
NOTE [10]
Current Assets: Financial Assets - investments
Particulars
(A) Government and trust securities
(B) Debentures and bonds
(i) Subsidiary companies
(ii) Joint venture companies
(iii) Other debentures & bonds
(C) Mutual funds
(D) Collateral borrowing and lending obligation (CBLO)
(E) Commercial paper
408
crore
13.86
As at 31-3-2022
2146.25
869.51
2228.72
698.81
2659.72
884.37
5024.60
5731.81
7952.13
5961.14
9275.90
11787.56
1499.57
299.98
919.13
18478.22
22232.95
As at 31-3-2021
2.71
1567.90
5.79
1620.82
5.67
3132.51
Property development project - completed property
107.37
31.02
1802.28
1807.49
2079.73
2059.17
3990.30
3898.29
crore
Particulars
As at 31-3-2022
As at 31-3-2021
Raw materials [includes goods-in-transit 27.64 crore (previous year: 3.86 crore)]
403.90
396.97
Components [includes goods-in-transit ₹ 7.80 crore (previous year: 1.48 crore)]
Construction materials [includes goods-in-transit 116.74 crore (previous year: 39.17 crore)]
Manufacturing work-in-progress
188.99
Property development related work-in-progress
156.27
148.10
361.31
319.61
Stock-in-trade [includes goods-in-transit 32.73 crore (previous year: 44.34 crore)]
Stores and spares [includes goods-in-transit ₹ 1.76 crore (previous year: ₹ 4.60 crore)]
Loose tools
Other receivables
3.57
Finished goods
212.23
272.15
59.78
150.83
102.97
16.65
Premium receivable on financial guarantee contracts
Embedded derivative receivables
Forward contract receivables
91.94
7.04
571.50
Less than
1 year
204.48
1-2 years 2-3 years
More than
3 years
Total
33.45
0.77
238.71
Projects in progress
Projects temporarily suspended
Total capital work-in-progress
472.53
472.53
91.94
571.50 204.48
33.45
0.77
238.71
As on the date of balance sheet, there are no capital work-in-progress projects whose completon is overdue or has exceeded the cost,
based on approved plan.
Title deeds of Immovable Properties not held in name of the Company
Description of
property
Gross
carrying
value as at
March 31,
2022
(*crore)
Carrying value
in the financial
statements as at
March 31, 2022
(*crore)
Whether title
deed holder
Title deeds held in is a promoter,
name of
director or
their relative or
employee
Property
held since
which date
Undivided
0.13
0.13 SVM Industries
7.04
Total
More than
3 years
1 year
Useful Life as per
Schedule II (in years)
Useful life adopted
(in years)
Electrical Installations
Furniture and Fixtures
Vehicles
HT/LT Electric Sub-station
Assets deployed at Office
Buses & Trucks
22
4-30
10
2-10
8
5-10
7
5-10
7
5-10
10
5-10
1-2 years 2-3 years
Less than
As at 31-3-2021
As at 31-3-2022
crore
Particulars
No
1)
k)
j)
2) P&M and Office equipment at project sites costing below 50,000/- is depreciated in the same financial year.
Carrying value of Property, plant and equipment hypothecated as collateral for certain borrowings and / or commitments as at March 31,
2022 1479.32 crore (as at March 31, 2021: 1476.49 crore)
1) Assets with Acquisition value less than
Cars
Jeeps
Motorcycles
5,000/- is depreciated in the same financial year.
Ageing of Capital work-in-progress
LARSEN & TOUBRO
Land
Bengal (Area-
Transferred
Transferred
Class of assets
As at
from
As at
As at
from
As at
As at
Additions
Deductions
Additions
Deductions
Book Value
1-4-2021
31-3-2022
31-3-2021
PPE/(to)
31-3-2022
31-3-2022
As at
31-3-2021
inventories
inventories
Land
3923.29
Unsecured security deposits, considered good:
Less: Allowance for expected credit loss
Fixed deposits with banks (maturity more than 12 months)
Cash and bank balances not available for immediate use [refer Note 7(a)]
PPE/(to)
Depreciation
Cost
crore
3925 sq ft)
Reason for not
being held in name
of Company
30 years
(Since 1992)
29 years
(Since 1993)
Conveyance deed
is pending to be
executed. Appeal
is pending before
the High Court of
Calcutta.
Conveyance deed
is pending to be
executed. Appeal
is pending before
the High Court of
Calcutta.
Land acquired from
farmers through
Government
Acquisition Route.
The formalities are
pending from the
authorities side.
Building - 4
0.15
0.12 SVM Industries
No
flats - 171, SP
Mukherjee Road,
Kolkata, West
Bengal
Freehold Land-
Investment Property
NOTE [3]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
401
Land at 171, SP
Mukherjee Road,
Kolkata, West
* Irrevocable Power of Attorney given to L&T by the owner, possession is with L&T.
10 years
(Since 2012)
2. Kashiben Patel
Hazira West
No
1.01 1. Magan Kuber *
1.01
3. Ishwar Prema
crore
9567.93
LARSEN & TOUBRO
1 year
11.14
1-2 years 2-3 years
Less than
As at 31-3-2021
As at 31-3-2022
crore
5
6
10
10
Maximum useful life (in years)
290.83
4.69
40.58
254.94
361.65
5.87
More than
3 years
12.23
Total
1-2 years 2-3 years
Integrated Annual Report 2021-22
403
As on the date of balance sheet, there are no capital work-in-progress projects whose completion is overdue or has exceeded the cost,
based on approved plan.
48.01
48.01
11.26
0.12
11.14
Total capital work-in-progress
Projects temporarily suspended
Projects in progress
- 48.01
48.01
11.26
0.12
Total
More than
3 years
Less than
1 year
355.29
Previous year
70.83
New Product Design and Development
25.60
18.40
81.45
7.20
74.25
99.85
99.85
Technical knowhow
45.23
44.12
223.12
0.09
12.90
210.31
267.25
0.10
6.26
6.26
6.26
6.26
147.29
314.46
0.09
23.72
290.83
461.75
0.10
100.20
Notes forming part of the Financial Statements
361.65
84.77
3.62
3.62
88.39
88.39
Platforms and Courses
(0.00)
0.00
Total
11.81
Notes forming part of the Financial Statements (contd.)
Non-current Assets: Financial Assets - Investments
50,000
10
L&T Cassidian Limited [Net of provision 0.05 crore] [previous year provision: 0.05
crore]
0.05
0.05
50,000
10
45.60
45.60
4,56,00,000
10
9,500
10
100
L&T Capital Company Limited
L&T Aviation Services Private Limited
Kesun Iron & Steel Company Private Limited [Net of provision 95,000 (previous
year: 95,000]
L&T Finance Holdings Limited (quoted)
0.05
10
10
L&T Seawoods Limited[1]
10
OMR 1
L&T Heavy Engineering LLC [ 183.89 (previous year: 183.89)]
L&T Realty Developers Limited
OMR 1
L&T Electromech LLC [171.7 (previous year: 171.7)]
10
10
L&T Power Limited
L&T Power Development Limited [Net of provision 668.00 crore (previous year:
* 829.00 crore)]
1,000
SAR 1000
L&T Hydrocarbon Saudi Company LLC (Formerly Larsen & Toubro ATCO Saudi LLC)
130.39 (previous year: 130.39)]
2439.00
2439.00
5375.82
5918.65
1,63,92,29,920
2,43,89,99,999
L&T Metro Rail (Hyderabad) Limited
0.05
50,000
10
70.22
27180.62
1640.09
4.42
25465.89
4.42
1642.10
74.40
27049.50
25328.58
As at 31-3-2021
As at 31-3-2022
crore
Particulars
Details of Non-current Assets: Financial Assets - Investments
(d) Other companies
(c) Joint venture companies
(b) Associate companies
(a) Subsidiary companies
Investment in equity instruments
Particulars
Number of units
Face value
per unit
As at
31-3-2022
Hi-Tech Rock Products & Aggregates Limited
0.05
0.05
49,950
10
161.23
161.23
18,00,000
NOTE [5]
100
(i) Investments in fully paid equity instruments:
L&T Valves Limited
(a) Subsidiary companies:
(A) Investments in fully paid equity instruments
crore
crore
₹
As at
31-3-2021
As at
31-3-2022
Bhilai Power Supply Company Limited
10
255.54
As at
31-3-2021
194.05
194.05
146.37
47.68
48.01
158.55
118.84
(a)
Additions during the year
Class of assets
Specialised software
Technical knowhow
New product design and
development
Platforms and courses
Total
(b)
47.68
crore
Buildings
51.21
85.27
0.23
16.49
68.55
674.91
146.78
51.21
476.92
Total
360.68
395.58
85.27
0.23
16.49
68.55
480.85
0.41
429.23
FY 2021-22
FY 2020-21
Internal
Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the consumption
pattern of the assets and the past performance of similar assets:
Sr. No Class of assets
1.
Specialised software
2.
Technical knowhow
3.
New product design and
development
4.
Platforms and courses
(c) Ageing of intangible assets under development
Particulars
Minimum useful life (in years)
1
1
As at 31-3-2021
12.23
1.17
12.23
88.39
100.20
Development
Acquired
- External
Total
Internal
Development
Acquired
Total
- External
2.11
589.64
9.70
11.81
8.28
8.28
2.78
2.78
...1.17
88.39
90.50
9.70
1
5
Specialised Software
408.36
509.49
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
Note: Above valuation is based on government rates, market research, market trend and comparable values as considered appropriate.
[1] Independent valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017
2082.07
2405.47
865.66
1159.66
56.75
1225.00
70.12
1110.35
Total fair value
(iii) internal architectural department
(ii) independent unregistered valuers [1]
independent registered valuers [1]
(i)
Statutory Financial
Reports
2020-21
Statements
NOTE [4]
As at
31-3-2022
to
31-3-2022
Deductions
For the year
31-3-2021
Up to
As at
31-3-2022
1-4-2021
Deductions
Additions
As at
Class of assets
Book Value
Amortisation
Cost
crore
Other intangible assets & Intangible assets under development
Notes forming part of the Financial Statements (contd.)
2021-22
crore
Fair valuation by:
Minimum useful life (in years)
3
Buildings
1.
Sr. No Class of assets
Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the consumption
pattern of the assets and the past performance of similar assets:
408.36
589.64
(a)
Add: Capital work-in-progress
68.55
11.87
7.57
17.48
55.37
476.92
82.12
49.55
(b) Disclosure pursuant to Ind AS 40 "Investment Property"
(i) Amount recognised in the Statement of Profit and Loss for investment property:
402
Maximum useful life (in years)
Particulars
(ii) Details with respect to fair valuation of Investment property:
4.24
Direct operating expenses pertaining from investment property that did not generate
rental income
3
58.21
49.14
Direct operating expenses pertaining from investment property that generated rental
income
Previous year
2
2020-21
2021-22
103.31
Rental income derived from investment property
1
Particulars
Sr. No.
crore
60
124.40
3,11,27,00,000
51,157
2,10,000
16,71,60,700
39,65,500
1,65,45,50,000
LARSEN & TOUBRO
2283.70
0.05
405
9.36
11.37
7.12
9.13
2.24
2.24
L&T - MHI Power Turbine Generators Private Limited
L&T - MHI Power Boilers Private Limited
(ii) Other equity investments:
1630.73
1630.73
100
10
L&T Halol-Shamlaji Tollway Limited [(previous year: 1000)] [2]
0.51
0.51
Integrated Annual Report 2021-22
5,10,000
Notes forming part of the Financial Statements
NOTE [5]
17,76,00,000
10
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-
convertible redeemable at par preference shares, December 8, 2025 [Net of provision
97.91 crore (previous year: 97.91 crore)]
15,54,00,000
10
As at
31-3-2021
* crore
crore
Z
As at
31-3-2022
As at
31-3-2022
per unit
Face value
Number of units
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-
convertible redeemable at par preference shares, December 8, 2024 [Net of provision
78.33 crore (previous year: 78.33 crore)]
(iii) Preference shares-(equity portion):
Particulars
Details of Non-current Assets: Financial Assets - Investments (contd.)
Notes forming part of the Financial Statements (contd.)
10
L&T MBDA Missile Systems Limited
0.04
0.01
13,000
10
L&T Samakhiali Gandhidham Tollway Limited
100
10
L&T Rajkot-Vadinar Tollway Limited [1000 (previous year: * 1000)]
362.41
362.41
36,24,06,000
10
L&T MHI Power Turbine Generators Private Limited
119.39
119.39
11,93,91,000
10
L&T - MHI Power Boilers Private Limited
0.01
L&T Special Steels and Heavy Forgings Private Limited [Net of provision 419.28
crore (previous year: 419.28 crore)]
10
41,92,84,000
0.04
37,750
10
Raykal Aluminium Company Private Limited
100
10
₹
PNG Tollway Limited [1000 (previous year: * 1000)]
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-
convertible redeemable at par preference shares, December 8, 2026 [Net of provision
84.41 crore (previous year: 84.41 crore)]
0.82
27,82,736
10
L&T-Sargent & Lundy Limited
10.86
10.86
1,08,64,000
10
L&T Transportation Infrastructure Limited
0.82
1021.48
10
Total (c)(i)+(ii)+(iii)
16417.71
176195.93
As at 31-3-2022 As at 31-3-2021
(c) Aggregate amount of Impairment in value of investments
Book Value
(b) Aggregate amount of unquoted investments;
Market Value
Book Value
Aggregate amount of quoted investments and market value thereof;
(a)
Particulars
Details of quoted/unquoted investments:
crore
Total Non current Investment =(A)+(B)
27180.62
27049.50
Total - (B)
14,20,80,000
10631.79
3300.57
10
15874.88
109342.27
4047.57
As at 31-3-2022
2444.70
0.05
Subsidiary companies, considered good
Subsidiary companies, considered doubtful
Less: Allowance for expected credit loss
Unsecured loan and advances to related parties:
Particulars
Non-current Assets: Financials Assets - Loans
NOTE [6]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
406
[2] Ceased to be a joint venture w.e.f. October 21, 2021
[1] L&T Seawoods Limited, a wholly owned subsidiary has received the approval from The National Company Law Tribunal, Mumbai Bench, for the
reduction of its paid-up equity share capital from 1654.55 crore (1,65,45,50,000 shares of 10 each) to 1354.55 crore (1,35,45,50,000 shares
of 10 each). As the approval is received on April 4, 2022, the cancellation of 30,00,00,000 equity shares of 10 each by returning cash of 300
crore to the Company is effected in financial year 2022-23.
11305.74
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
redeemable at par preference shares, December 8, 2026 [Net of provision * 56.28 crore
(previous year: 56.28 crore)]
17,76,00,000
10
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
redeemable at par preference shares, December 8, 2025 [Net of provision * 79.12 crore
(previous year: 79.12 crore)]
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
redeemable at par preference shares, December 8, 2024 [Net of provision 77.77 crore
(previous year: 77.77 crore)]
(Fair value debt portion):
(B) Investment in preference shares of Joint Venture companies:
Total (A)=(a)+(b)+(c)+(d)
L&T Halol-Shamlaji Tollway Limited [Net of provision 1000] [2]
The New India Assurance Company Limited
₹
New Vision Wind Power Private Limited [27,000 (previous year: 27,000)]
VP Global Fibre and Yarns Private Limited [22,900 (previous year: 22,900)]
Tidel Park Limited [refer Note 53(f)]
Utmal Multi purpose Service Co-operative Society Limited (B Class) [30,000 (previous
year: 30,000)]
₹
10000
International Seaport Dredging Limited [Net of provision 15.90 crore (previous year:
15.90 crore)]
(d) Other companies:
1640.09
1642.10
°° 808000
10
15,899
1,00,000
0.10
15,54,00,000
10
70.22
27180.62
74.40
27049.50
6.88
4.98
4,45,803
100
10
14,20,80,000
10
10
229
63.23
69.32
40,00,000
10
300
0.10
2,700
1021.48
BBT Elevated Road Private Limited
10
21.85
21.85
36,00,000
80,000
USD 100
L&T Global Holdings Limited
10
L&T Infrastructure Engineering Limited
1.05
1.05
625
SAR 1000
Larsen & Toubro (Saudi Arabia) LLC
22.27
22.27
19,91,42,091
0.23
0.23
53.16
23721.38
53.16
23017.84
404
As at
31-3-2021
As at
31-3-2022
crore
K
As at
31-3-2022
per unit
Face value
Number of units
LARSEN & TOUBRO
50,000
Particulars
NOTE [5]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
Details of Non-current Assets: Financial Assets - Investments (contd.)
crore
0.29
318.50
40.36
40.36
74,38,796
10
L&T Innovation Campus (Chennai) Limited (formerly known as L&T Electricals and
Automation Limited)
11.26
9567.93
10,05,27,734
20,19,230
OMR 1
L&T Modular Fabrication Yard LLC [171.7 (previous year: 171.7)]
10
Mindtree Limited (quoted)
1654.55
1654.55
32,10,59,096
107.72
107.72
L&T Kuwait Construction General Contracting Company WLL [66.04 (previous year:
66.04)]
KWD 1000
980
L&T Technology Services Limited (quoted)
2,47,50,000
11.08
11.08
7,500
SAR 1000
10
AED 1000
USD 1
10
L&T Construction Equipment Limited
Larsen & Toubro LLC
108.05
150
108.05
805.25
7,79,86,899
12,97,84,034
1
L&T Hydrocarbon International FZE
L&T Geostructure Private Limited
Larsen & Toubro Arabia LLC
Larsen & Toubro Infotech Limited (quoted)
2
805.25
(ii) Preference share considered equity as per terms:
318.50
2
15.03
1,50,30,000
10
L&T Howden Private Limited
100
10
L&T Chennai-TADA Tollway Limited [1000 (previous year: 1000)]
100
10
Ahmedabad-Maliya Tollway Limited [ 1000 (previous year: 1000)]
(i) Investments in fully paid equity instruments:
(c) Joint Venture companies:
4.42
4.42
4.42
4.42
9,000
15.03
L&T Hydrocarbon Caspian LLC
10
45,00,000
L&T Infrastructure Development Projects Limited [Net of provision 1723 crore
(previous year: 1723 crore)]
0.01
0.01
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, March 30, 2027.
6,000
10
L&T Sapura Offshore Private Limited
95.31
100
95.31
10
L&T Sapura Shipping Private Limited
0.36
0.36
9,250
AZM 10
4.50
4.50
9,53,11,850
Magtorq Private Limited
L&T Chiyoda Limited
10
42.00
42.00
4,20,00,000
2
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, September 3, 2027
42.25
826.00
4,22,50,000
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally convertible
redeemable preference shares, July 17, 2029 [previous year net of provision:
586.00 crore]
2
48.00
48.00
4,80,00,000
2
7,35,000
82,60,00,000
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, May 12, 2027
826.00
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, July 14, 2027
2
42.25
840.85
Gujarat Leather Industries Limited [Net of provision 0.56 crore (previous year: 0.56
crore)]
(b) Associate companies:
25465.89
25328.58
0.65
0.65
0.65
Total (a)(i)+(ii)+(iii)
0.65
(iii) Other equity investments:
2447.40
648.30
648.30
1606.55
64,83,00,000
L&T Realty Developers Limited - 12% Non-cumulative and optionally convertible
redeemable at par preference shares, May 26, 2025.
L&T Aviation Services Private Limited
10
Notes forming part of the Financial Statements (contd.)
Statements
Corporate
Overview
Discussion and Analysis Report
Integrated
Management
NOTE [16]
Statutory Financial
Reports
Other current assets
As at 31-3-2021
Particulars
LARSEN & TOUBRO
crore
As at 31-3-2022
Retention money including unbilled revenue
Contract Assets [refer Note 41(d)]
Due from customers (construction and project related activity)
33429.11
30631.64
15354.22
2513.99
48.49
412
9.41
13761.41
Forward contract receivable
36.65
402.82
604.74
Embedded derivative receivable
51.06
Doubtful advances:
2182.44
Deferred credit sale of ships
27.11
232.49
259.60
Less: Allowance for expected credit loss
259.60
27.11
295.78
322.89
322.89
Other loans and advances
Advance recoverable other than in cash
crore
Other loans and advances
1,40,50,29,123
281.01 1,40,45,55,297
280.91
[1] Pursuant to the approval of the Scheme of Arrangement of merger of L&T Hydrocarbon Engineering Limited with the Company, the
authorised share capital of L&T Hydrocarbon Engineering Limited is added to the authorised share capital of the Company, w.e.f Appointed Date
i.e. April 1, 2021.
(b) Reconciliation of the number of equity shares and share capital:
Particulars
Add: Shares issued on exercise of employee stock options during the
year
Issued, subscribed and fully paid up equity share outstanding at the beginning of
the year
2021-22
2020-21
Number of
shares
Number of
shares
crore
1,40,45,55,297
280.91
1,40,38,92,022
4,73,826
Premium receivable on financial guarantee contracts
280.78
5025.00
8037.00 25,12,50,00,000
40,18,50,00,000
crore
Less: Allowance for expected credit loss
48783.33
6319.19
26.71
44393.05
5399.27
63.49
1.60
1.60
11.72
11.72
NOTE [17]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:
Government grants receivable
Particulars
Equity shares of 2 each
Issued, subscribed and fully paid up:
Equity shares of 2 each
55129.23
49855.81
As at 31-3-2022
Number of
* crore
shares
As at 31-3-2021
Number of
shares
Authorised: [1]
744.87
16.
Advances recoverable in cash
Less:
annually
8.00% p.a. Redeemable at face value at the end of 9th year from the
payable date of allotment.
annually
14686.72
14667.86
5159.78
926.05 Current maturity of long-term borrowings [refer Note 24]
477.91 Short Term Unsecured Debentures [refer Note 23]
9526.94 13263.90 Borrowings -noncurrent [refer Note 19]
3.46
Less:
Margin money deposits with banks
22.58
Cash and bank balances not available for immediate use [refer Note 7(a)]
550.55
387.38
780.28
650.59
[1] Real Estate (Regulation and Development) Act, 2016
411
Integrated Annual Report 2021-22
23.15
Notes forming part of the Financial Statements
Total
April 23,2021
payable
annually
0.10
1538.23 7.25% p.a. Redeemable at face value at the end of 4th year from the
date of allotment.
payable
annually
2661.09 7.70% p.a. Redeemable at face value at the end of 5th year from the
date of allotment.
payable
annually
477.91 6.60% p.a.
payable
annually
479.55 7.00% p.a. Redeemable at face value at the end of 2nd year from the
date of allotment.
483.83
payable
annually
payable
annually
2,50,000
April 23,2020
483.77
483.78 8.00% p.a.
payable
Redeemable at face value at the end of 10th year from the
date of allotment.
17.
2,50,000
2611.51 7.25% p.a. Redeemable at face value at the end of 3rd year from the
date of allotment.
611.58
Notes forming part of the Financial Statements (contd.)
Current Assets: Financials Assets - Loans
Particulars
Unsecured security deposits, considered good
Less: Allowance for expected credit loss
As at 31-3-2022
340.11
Advances to related parties:
Subsidiary companies
634.80
699.97
Less: Allowance for expected credit loss
6.03
355.54
628.77
4.83
699.97
0.30
Joint venture companies
115.68
Less: Allowance for expected credit loss
6.04
53.18
5.08
109.64
48.10
Associate companies
NOTE [14]
339.66
0.45
Particulars
Unsecured loan and advances to related parties:
Subsidiary companies, considered good
Subsidiary companies, considered doubtful
Less: Allowance for expected credit loss
Associate/Joint venture companies, considered good
Other unsecured loans, considered good
NOTE [15]
Current Assets: Financial Assets - Others
As at 31-3-2022
82.79
0.57
5.45
crore
As at 31-3-2021
95.08
166.71
0.10
249.60
162.53
0.26
257.87
crore
As at 31-3-2021
356.11
5.45
6,63,275
In respect of stock options granted pursuant to the Company's stock options schemes, the fair value of the options is treated
as discount and accounted as employee compensation over the vesting period.
Issued, subscribed and fully paid up equity shares outstanding at the
end of the year
LARSEN & TOUBRO
2021-22
2020-21
Particulars
No. of stock
options
(A) Options granted and outstanding at the beginning of the year
17,81,564
Weighted
average
exercise price
(F)
241.90
No. of stock
Weighted
average
options
exercise price
(₹)
25,21,389
252.09
(B) Options granted
5,50,769
182.90
1,04,000
iii. The number and weighted average exercise price of stock options are as follows:
Equity share capital (contd.)
NOTE [17]
Notes forming part of the Financial Statements (contd.)
16,08,414
10,450
Options yet to vest
2,69,509
23,575
1,49,575
3,89,610
4,84,082
10,48,850
11,24,332
7.80
9 Weighted average remaining contractual life of options (in years)
5.74
4.29
4.23
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
5.67
(C) Options allotted
4,73,826
231.58
During the year, the Company has recovered 2.15 crore (previous year: 1.25 crore) from its subsidiary companies towards the
stock options granted to their employees, pursuant to the employee stock option schemes.
vii. Weighted average fair values of options granted during the year is 1113.62 (previous year: 834.24) per option.
viii. The fair value has been calculated using the Black-Scholes Option Pricing Model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
Sr.
Particulars
2021-22
2020-21
ix.
No.
Expense on Employee Stock Option Schemes debited to the Statement of Profit and Loss during 2021-22 is 49.11 crore
(previous year: 45.63 crore) net of recoveries of Nil (previous year: 0.40 crore) from its group companies towards the
stock options granted to deputed employees, pursuant to the employee stock option schemes (Note 34). The entire amount
pertains to equity-settled employee share-based payment plans. [expense related to held for sale business Nil (previous year:
*2.14 crore)]
(i) Weighted average risk-free interest rate
(iii) Weighted average expected volatility
(iv) Weighted average expected dividends over the life of the option
(v) Weighted average share price
(vi) Weighted average exercise price
(vii) Method used to determine expected volatility
5.41 %
3.77 years
31.02%
67.82 per option
1311.86 per option
182.90 per option
2614.13
(ii) Weighted average expected life of options
14,38,460
B.
Weighted average share price at the date of exercise for stock options exercised during the year is 1635.25 (previous year:
1001.47) per share.
6,63,275
238.99
(D) Options lapsed
1,40,088
253.90
1,80,550
260.10
(E) Options granted and outstanding at the end of the year
17,18,419
A.
224.86
241.90
(F) Options exercisable at the end of the year out of (E) supra
4,00,060
260.33
5,07,657
255.06
iv.
V.
vi.
17,81,564
1,73,150
2,79,959
8 Options granted and outstanding at the end of the year, of which
Options vested
13.70
L&T Employees Trust
Life Insurance Corporation of India
16,69,42,875
(e) Shares reserved for issue under options outstanding on un-issued share capital:
Particulars
As at 31-3-2022
Number of
equity shares
to be issued
as fully paid
Employee stock options granted and outstanding [1]
[1] Note 17 (h) infra for terms of employee stock option schemes.
19,24,67,386
17,18,419
Number of
crore
(at face
value)
equity shares
to be issued
as fully paid
crore
(at face
value)
0.34[2]
17,81,564
0.36[2]
[2] The equity shares will be issued at a premium of 38.30 crore (previous year: 42.74 crore).
(f) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March
31, 2022 are 46,67,64,755 (period of five years ended March 31, 2021: 46,67,64,755 shares).
As at 31-3-2021
(g) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding
last five years ended on March 31, 2022 - Nil (period of five years ended March 31, 2021: Nil).
11.88
19,25,58,158
1,40,50,29,123
281.01 1,40,45,55,297
280.91
413
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [17]
Equity share capital (contd.)
13.71
(c) Terms/rights attached to equity shares:
(d) Shareholder holding more than 5% of equity shares as at the end of the year:
Name of the shareholders
As at 31-3-2022
Number of Shareholding
shares
%
As at 31-3-2021
Number of Shareholding
shares
%
19,25,58,158
13.70
The Company has only one class of share capital, i.e., equity shares having face value of 2 per share. Each holder of equity share is
entitled to one vote per share.
0.13
(h) Stock option schemes
Terms:
7.80
23-5-2003 onwards
23-5-2004 onwards
1,73,150
7.80
267.10
267.10
1-7-2007 onwards
1-7-2008 onwards
5
Options lapsed
7,130
year
6 Options granted
1,45,935
4,875
1,04,000
16,08,414 23,75,454
7
Options exercised
64,900
71,910
1,32,958
3,71,930
4,08,926
1,75,675
5,91,365
1,78,839
i.
Options granted and outstanding at the beginning of the
3 Vesting commences on
A.
B.
The grant of options to the employees under the stock option schemes is on the basis of their performance and other eligibility
criteria. The options are vested equally over a period of 4 years [5 years in the case of series 2006(A)], subject to the discretion
of the management and fulfillment of certain conditions.
Options can be exercised anytime within a period of 7 years from the date of grant and would be settled by way of issue of
equity shares. Management has discretion to modify the exercise period.
414
ii.
The details of the grants under the aforesaid schemes are summarised below:
Sr.
2003(B)
4
2006(A)
No.
2021-22
2020-21
2021-22
2020-21
1
Grant price - (*)
2
Grant dates
Series reference
April 23,2020
129.35
15.
Book Value (Accounted based on NAV)
(b) Aggregate amount of unquoted current investments;
Market Value
(a) Aggregate amount of quoted current investments and market value thereof;
Book Value
Particulars
Details of quoted/unquoted investments:
Book Value
NOTE [10] (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
409
698.81
Total- (ii)
272.65
Notes forming part of the Financial Statements (contd.)
crore
As at 31-3-2022 As at 31-3-2021
10098.38
Less: Allowance for expected credit loss
Credit Impaired
Less: Allowance for expected credit loss
Unsecured, considered good
Less: Allowance for expected credit loss
Secured, considered good
Particulars
Current Assets: Financial Assets - Trade receivables
NOTE [11]
299.98
11787.56
5961.14
2418.70
10145.41
10098.38
10145.41
1000000
[a] Current assets: Financial assets - Trade receivables ageing
8.60% L&T Infrastructure Development Project Limited NCD December 26, 2026
31.40
1000000
45.12
45.08
360
1000000
41.42
390
41.44
1000000
38.72
38.99
310
1000000
35.21
330
48.63
48.74
1000000
250
1000000
9.50% Kudgi Transmission Limited SR-W NCD April 25, 2040
120.67
120.14
960
1000000
9.50% Kudgi Transmission Limited SR-V NCD April 25, 2039
43.90
43.63
350
1000000
51.33
50.89
410
31.50
Particulars
Undisputed:
- Considered good
45.18
1045.96
1776.70
1857.10
8153.24
23945.78
Gross trade receivables
137.54
3050.31
Credit impaired
1138.88
982.15
12.26
85.08
25.35
34.04
-
182.72
39829.09
Less: Allowance for expected credit loss
3481.74
- Considered good
Undisputed:
Particulars
[a] Current assets: Financial assets - Trade receivables ageing (contd.)
NOTE [11]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
410
36347.35
Total
757.22
442.90
72.12
145.90
2247.47
35452.34
38884.29
2618.76
4.86
As at 31-3-2021
As at 31-3-2022
4.86
crore
23905.65
Not due
- Increase in credit risk
- Considered good
Disputed:
Credit impaired
-
- Increase in credit risk
36265.53
35.63
33204.87
885.80
759.07
72.92
17.29
6.09
1487.72 37750.27
916.40
1545.72
1758.83
8135.95
Total
More than
3 years
Outstanding for the following periods from the due date of payment
Less than 6 months -
1-2 years 2-3 years
6 months
1 year
As at 31-3-2022
crore
126.73
33331.60
76.96
36347.35
939.94
862.98
290
1000000
34.73
145.30
144.59
1,300
1000000
7.95% L&T Finance Limited NCD July 28, 2025
7.90% L&T Finance Limited NCD July 13, 2024
80.66
1000000
1000000
27.03
26.26
250
1000000
26.84
25.78
8.50% L&T Finance Limited Sr.C NCD March 17, 2023
223.28
7.30% L&T Finance Limited NCD September 8, 2023
8.50% L&T Finance Limited NCD January 17, 2023
8.50% L&T Finance Limited NCD February 17, 2023
8.55% L&T Finance Limited NCD November 29, 2022
7.15% L&T Finance Limited NCD September 16, 2024
6.75% L&T Finance Limited NCD November 3, 2024
7.85% L&T Finance Limited NCD July 9, 2025
6.55% L&T Finance Limited NCD November 3, 2028
1000000
205.27
204.36
2,000
1000000
107.25
106.42
1,000
1000000
108.92
1000000
16.11
1000000
75.07
1000000
541.76
250
1000000
162.02
160.25
As at
31-3-2022
value per
unit
Face
Number of
units
LARSEN & TOUBRO
Particulars
Details of current investments in Subsidiary companies and Joint venture companies
NOTE [10] (contd.)
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
As at
31-3-2022
1000000
As at
31-3-2021
crore
1,450
1000000
5.34
1000000
18.15
17.70
153,800
1000
21.06
20.12
200,000
1000
9.10% L&T Finance Limited NCD April 13, 2022
9.00% L&T Finance Limited NCD April 15, 2024
8.92% L&T Finance Limited NCD October 6, 2021
7.75% L&T Finance Limited NCD July 10, 2025
8.93% L&T Finance Limited NCD August 8, 2022
8.25% L&T Finance Limited NCD June 24, 2023
(i) Subsidiary companies:
Debentures and Bonds (quoted):
crore
- Increase in credit risk
900
100.36
23.47
200
1000000
8.80% Kudgi Transmission Limited April 25, 2026
8.80% Kudgi Transmission Limited April 25, 2027
20.89
180
1000000
1000000
19.47
170
1000000
16.80
150
1000000
8.80% Kudgi Transmission Limited April 25, 2025
210
24.81
9.14% Kudgi Transmission Limited SR-K NCD April 25, 2028
9.14% Kudgi Transmission Limited SR-L NCD April 25, 2029
9.14% Kudgi Transmission Limited SR-M NCD April 25, 2030
9.14% Kudgi Transmission Limited SR-N NCD April 25, 2031
9.14% Kudgi Transmission Limited SR-O NCD April 25, 2032
9.50% Kudgi Transmission Limited SR-P NCD April 25, 2033
9.50% Kudgi Transmission Limited SR-Q NCD April 25, 2034
9.50% Kudgi Transmission Limited SR-R NCD April 25, 2035
9.50% Kudgi Transmission Limited SR-S NCD April 25, 2036
9.50% Kudgi Transmission Limited SR-T NCD April 25, 2037
9.50% Kudgi Transmission Limited SR-U NCD April 25, 2038
34.38
280
1000000
33.61
33.06
270
1000000
29.74
29.26
240
1000000
28.39
27.86
230
1000000
8.80% Kudgi Transmission Limited April 25, 2023
8.80% Kudgi Transmission Limited April 25, 2024
13.48
12.98
120
1,570
1000000
61.57
305.96
2,490
1000000
91.51
216.79
1,780
1000000
9.81% L&T Metro Rail (Hyderabad) Limited June 18, 2035
9.81% L&T Metro Rail (Hyderabad) Limited November 2, 2035
9.85% L&T Metro Rail (Hyderabad) Limited January 28, 2036
6.68% L&T Metro Rail (Hyderabad) Limited SR C April 30, 2027
304.15
277.79
2,750
1000000
189.60
99.81
30.27
4,220
1000000
8.50% Kudgi Transmission Limited SR-E NCD April 25, 2022
15.16
1000000
8.50% Kudgi Transmission Limited SR-D NCD April 25, 2021
(ii) Joint Venture companies:
2659.72
2228.72
124.30
1000000
9.55% L&T Metro Rail (Hyderabad) Limited SR-F NCD September 28, 2030
Total- (i)
183.50
1000000
9.50% L&T Metro Rail (Hyderabad) Limited SR-F NCD November 26, 2030
433.29
1000000
10,00,000
-
Disputed:
269.88
October 25,
2012
10,00,000
4
269.81
October 25,
2012
5
10,00,000
269.77
October 25,
2012
10,00,000
2
301.84 9.10% p.a.
payable
annually
301.92
3
10,00,000
October 25,
2012
269.94
The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
Redeemable at face value at the end of 12 years from the date of
allotment or on exercise of call option.
The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
Redeemable at face value at the end of 13 years from the date of
allotment or on exercise of call option.
The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
Redeemable at face value at the end of 14 years from the date of
allotment or on exercise of call option.
The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
Redeemable at face value at the end of 15 years from the date of
allotment or on exercise of call option.
269.86 9.10% p.a.
payable
annually
269.79 9.10% p.a.
payable
annually
269.73 9.10% p.a.
payable
annually
269.69 9.10% p.a.
payable
annually
Terms of repayment for debentures outstanding as at
31-3-2022
Less:
Total
October 25,
2012
10,00,000
1
Interest
for the
year
2021-22
Redeemable non-convertible fixed rate debentures [refer
Note 19(a)(i)&(ii)]
Total
As at 31-3-2021
Secured Unsecured
Total
Secured Unsecured
Particulars
As at 31-3-2022
crore
LARSEN & TOUBRO
Non-current liabilities: Financial Liabilities- Borrowings
NOTE [19]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
1328.89
Redeemable at face value at the end of 11 years from the date of
allotment or on exercise of call option.
9526.94 10855.83
Redeemable non-convertible inflation linked debentures
As at
31-3-2021
crore
31-3-2022
crore
Date of
allotment
As at
Face
value per
debenture
(₹)
Sr.
No.
19(a) (i) Secured redeemable non-convertible fixed rate debentures (privately placed):
126.15
1928.20
16646.73
126.15
1928.20
15318.25
1328.48
129.94
1982.64
12968.41
129.94
1982.64
11639.52
1328.89
Term loan from banks [refer Note 19(b)]
[refer Note 19(a)(iii)]
1328.48 13263.90 14592.38
Integrated
The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
52.43
1328.89
10,00,000
10.
Redeemable at face value at the end of 3rd year from the
date of allotment.
payable
annually
1062.47 6.72% p.a.
1062.71
April 20,2020
January 24, 2020
9
Redeemable at face value at the end of 3rd year from the
date of allotment.
payable
annually
2137.13 8.02% p.a.
2137.88
May 22, 2019
10,00,000
1332.93
1330.66 7.20% p.a.
Redeemable at face value at the end of 3rd year from the
date of allotment.
479.58
April 23,2020
10,00,000
14.
April 23,2020
10,00,000
13.
2665.30
April 28,2020
10,00,000
12.
1540.43
May 6,2020
10,00,000
11.
10,00,000
7
Redeemable at face value at the end of 3rd year from the
date of allotment.
Redeemable at face value at the end of 10th year from the
date of allotment.
418
19(a) (ii) Unsecured redeemable non-convertible fixed rate debentures (privately placed):
Non-current liabilities: Financial Liabilities- Borrowings (contd.)
NOTE [19]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
417
(ii) Charge on the designated account under the Debenture Trust Deed.
(i) First pari-passu charge over certain assets of the Company with security asset cover of 1.25 times; and
13,310 fully paid redeemable non-convertible debentures having face value of 10,00,000/- each issued on private placement basis
are secured by:
Security:
Current maturity of long term borrowings [refer Note 24]
Borrowings non-current [refer Note 19]
1328.48
1380.91
52.43
Sr.
1381.32
No.
As at
payable
annually
1612.04 7.87% p.a.
1612.53
April 18, 2019
10,00,000
2
273.49 9.75% p.a.
payable
annually
273.63
April 10,2012
10,00,000
1
Terms of repayment for debentures outstanding as at
31-3-2022
Interest
for the
year
2021-22
As at
31-3-2021
crore
Date of allotment 31-3-2022
* crore
Face
value per
debenture
(*)
Management
Corporate
Overview
416
Fixed deposits with banks (maturity less than 3 months)
Cash on hand
Cheques and draft on hand
Balance with banks
Particulars
Current Assets: Financials Assets - Cash and cash equivalents
NOTE [13]
NOTE [12]
Total
3006.54
Less: Allowance for expected credit loss
190.67
36338.14
146.74
2539.34
845.11
33331.60
Current Assets: Financials Assets - Other bank balances
crore
As at 31-3-2022
3831.27
109.39
As at 31-3-2021
77.23
As at 31-3-2022
Earmarked balances with banks-unclaimed dividend
Fixed deposits with banks
Particulars
crore
3524.95
5718.23
204.14
3.70
3.67
1605.25
As at 31-3-2021
2973.74
343.37
278.04
35.19
1743.86
2653.81
7155.27
21400.75
1075.14
654.99
1621.96
2560.33
7017.45
21294.87
Total
Outstanding for the following periods from the due date of payment
More than
1-2 years
2-3 years
3 years
Less than 6 months -
6 months
1 year
Not due
As at 31-3-2021
crore
LARSEN & TOUBRO
- Increase in credit risk
- Considered good
34224.74
127.78
11.06
52.63
Gross trade receivables
8.74
Credit impaired
-
1227.60
916.76
107.46
57.44
32.11
19.01
94.82
695.13
400.70
82.66
29.27
118.81
Earmarked balances with banks-Section4(2)(1)(D) of RERA [1]
4.81 %
2.85 years
35.39%
9.00
25722.05
26072.13
(10.90)
31131.14
Cash flow hedging reserve
Cost of hedging reserve
Hedging reserve
Retained earnings
26079.43
[5]
General reserve
138.65
138.65
Foreign currency translation reserve
283.23
(4.72)
221.53
(7.01)
Debenture redemption reserve (DRR): The Ministry of Corporate Affairs vide notification dated August 16, 2019, amended
the Companies (Share capital and Debenture) Rules, 2014 by which the Company is no longer required to create DRR towards the
debentures issued. Earlier to this amendment, the Company was required to maintain a DRR of 25% of the value of debentures issued,
either by a public issue or on a private placement basis and the amounts credited to the DRR was not to be utilised by the Company
except to redeem debentures. The above amount represents the DRR created out of profits of the Company prior to the said notification.
[5] General reserve: The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act, 1956
where in certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per Companies
Act 2013, the requirements to transfer profits to General Reserve is not mandatory. General Reserve is a free reserve available to the
Company.
Capital redemption reserve: Created on redemption of preference shares out of profits in accordance with of Section 55(2)(c) the
Companies Act, 2013.
Capital reserve on business combination: It arises on transfer of business between entities under common control. It represents the
difference, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets
and the amount of share capital of the transferor [refer Note 1 (ii)(ab)].
[4]
[3]
[2]
Capital reserve: It represents the gains of capital nature which mainly include the excess of value of net assets acquired over
consideration paid by the Company for business amalgamation transactions in earlier years.
[1]
61456.91
66833.04
300.22
163.02
Debt instruments through other comprehensive income
214.52
278.51
Debenture redemption reserve [4]
Credit impaired
87.62
(36.86)
Capital reserve on business combination [2]
Capital reserve [1]
Particulars
Other equity
NOTE [18]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
415
The Board of directors, at their meeting held on May 12, 2022 recommended the final dividend of 22 per equity share for the year
ended March 31, 2022, subject to approval from shareholders. On approval, the total dividend outgo is expected to be 3091.06 crore
based on number of shares outstanding as at March 31, 2022.
The Company continues its policy of a conservative capital structure which has ensured that it retains the highest credit rating even
amidst an adverse economic environment. Low gearing levels also enable the Company to navigate business stresses on one hand and
raise growth capital on the other. This policy also provides flexibility of fund-raising options for future, which is especially important in
times of global economic volatility. The gross debt equity ratio is 0.30:1 as at March 31, 2022 (as at March 31, 2021 0.40:1).
During the year ended March 31, 2022, the Company paid the final dividend of 18 per equity share for the year ended March 31,
2021 amounting to 2528.38 crore.
(i) Capital Management:
The balance in share options (net) account as at March 31, 2022 is ₹ 89.36 crore (previous year: 87.62 crore), including 31.70
crore (previous year: 38.78 crore) for which the options have been vested to employees as at March 31, 2022.
Expected volatility is based on the historical volatility
of the Company's share price applicable to the total
expected life of each option.
51.22 per option
884.83 per option
7.80 per option
Capital redemption reserve [3]
89.38
crore
As at 31-3-2021
(41.24)
Deferred employee compensation expense
124.48
130.62
Employee share options outstanding
Employee share options (net)
Securities premium
As at 31-3-2022
8667.65
(25.77)
8718.74
260.00
(25.77)
10.84
10.84
260.00
884.37
428
2917.34
Finished goods
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
655.90
645.27
348.86
307.04
299.64
As at 31-3-2021
As at 31-3-2022
345.63
crore
94.25
145.25
41.34
37.95
6.23
78.76
13.84
13.17
32.84
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [22]
Other non- current liabilities
46.00
As at 31-3-2022
Secured Unsecured
crore
23(a) Loans guaranteed by directors Nil (previous year: Nil)
Joint venture companies
Subsidiary companies
Loans from related parties:
Commercial paper
Short-term debentures [refer Note 19(a)(ii)]
Short-term loan and advances from banks
15.37
Loans repayable on demand from banks
Current liabilities: Financial Liabilities - Borrowings
NOTE [23]
7.84
7.84
Other Payables (Deferred income on day one fair valuation of financial instrument)
As at 31-3-2021
As at 31-3-2022
Particulars
crore
LARSEN & TOUBRO
Particulars
1773.67
As at 31-3-2021
crore
Nil
Quantum of (d), which has been met from (c) (e)
Nil
Shortfall in the borrowing through debt securities, if any, for 2021-22 (T-1)
carried forward to FY(T) (d)
450.00 crore
Actual borrowing done through debt securities in 2021-22 (T) (c)
6 9
45
Mandatory borrowing to be done through debt securities in 2021-22 (T) [(b) 112.50 crore
(25% of a)]
=
3
FY 2021-22 & FY 2022-23
450.00 crore [1]
Details
Incremental borrowings done in 2021-22 (T) (a)
2
2-year block period [(T), (T+1)]
1
Particulars
Sl. No.
Details of the borrowings:
4.
Nil
Shortfall, if any, in the mandatory borrowing through debt securities for
2021-22 (T) {after adjusting for any shortfall in borrowing for 2020-21 (T-1)
which was carried forward to 2021-22 (T)}
[1] Figure pertains to long-term borrowings with original maturity of more of than one year (excludes External Commercial Borrowings and
inter-corporate borrowings between the Company and its subsidiaries)
Details of penalty to be paid, if any, in respect to previous block (all figures in crore):
420
Post-retirement medical benefits plan
Employee pension scheme
Particulars
Non-current liabilities: Provisions
NOTE [21]
Due to others (Mainly includes liabilities towards capital goods)
Financial guarantee contracts
Embedded derivative payables
Forward contract payables
As at 31-3-2022
Particulars
NOTE [20]
Amount of fine to be paid for the block, if applicable Fine = 0.2% of {(d)-(e)} Nil
2
FY 2020-21 & FY 2021-22
2-years block period [(T-1), (T)]
1
Details
Particulars
Sl. No.
5.
Non-current liabilities: Other financial liabilities
Total
46.00
1773.67
As at 31-3-2021
Secured Unsecured
Total
crore
Outstanding for the following periods from the
due date of payment
As at 31-3-2022
40321.48
37199.44
2778.05
2524.24
42224.63
44911.67
1761.12
14.01
7.67
1771.17
1002.92
745.40
343.99
162.80
As at 31-3-2021
As at 31-3-2022
crore
Undisputed:
Particulars
25(a) Current liabilities: Financial liabilities - Trade payables ageing
Due to others
Unbilled
Dues
Total
Not due
Less than 1
4930.29
20671.11
17895.82
Total
8440.19 1.33 9.
Others
Micro and small enterprises
Disputed:
473.67
44901.71
0.92
876.99
Joint venture companies
0.45
271.35
18.32
4911.97
417.20
20245.47
17859.55
Others
36.27
Micro and small enterprises
More than
3 years
year
2-3 years
1-2 years
0.51
736.38
Associate companies
Subsidiary companies
Due to related parties:
Integrated Annual Report 2021-22
421
23(c) The Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, at points of time during the year, from
banks or financial institutions on the basis of security of current assets. The quarterly returns filed by the Company with such banks or
financial institutions are in agreement with the Books of Account of the Company of the respective quarters.
23(b) The Company has fund based and non-fund based facilities (viz. bank guarantees, letter of credits and derivatives) from banks. These
facilities are secured by hypothecation of inventories and trade receivables. Amount of inventories and trade receivables that are pledged
as collateral: 6932 crore as at March 31, 2022 (March 31, 2021: 10182 crore)
6827.90
6827.90
2097.39
2097.39
90.91
90.91
Notes forming part of the Financial Statements
193.74
4.40
83.98
83.98
193.74
2737.40
2737.40
477.91
477.91
3494.54
22.74
22.74
3494.54
4.40
Report filed for FY (T): 2021-22
Notes forming part of the Financial Statements (contd.)
Current liabilities: Financial liabilities - Current maturities of long-term borrowings
Acceptances
Particulars
Current liabilities: Financial liabilities - Other trade Payables
24(a) Loans guaraneed by directors Nil (previous year: * Nil)
NOTE [25]
999.56
5232.49
1.60
1.73
Redeemable non-convertible floating rate debentures [refer Note 19(a)(iii)]
19.48
NOTE [24]
18.55
5159.78
Redeemable non-convertible fixed rate debentures [refer Note 19(a)(ii)]
Term loans from banks [refer Note 19(b)]
52.43
52.43
As at 31-3-2021
As at 31-3-2022
crore
Redeemable non-convertible fixed rate debentures [refer Note 19(a)(i)]
Unsecured:
Secured:
Particulars
926.05
736.89
3.
2.
Power and fuel
2054.12
1369.62
Royalty and technical know-how fees
4.38
57.50
Packing and forwarding
567.90
497.88
Rent hire charges
2623.82
2129.71
Engineering, professional, technical and consultancy fees
1612.56
1554.15
Insurance
450.92
435.34
Rates and taxes
681.13
583.66
Other manufacturing, construction and operating expenses:
362.10
(1944.37)
6183.96
12383.54
89.79
12590.86
31445.49
12293.75
22869.85
1070.62
1226.68
2718.52
1701.07
25166.38
21993.33
Travelling and conveyance
16.65
324.10
7425.48
7766.23
5458.26
5821.86
3.57
18.12
360.03
308.36
5458.26
5857.48
5821.86
3.57
360.03
164.66
779.91
Repairs to plant and equipment
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [34]
Employee benefits expense
Particulars
Salaries, wages and bonus
Contribution to and provision for :
Provident fund and pension fund
Superannuation/employee pension schemes
Gratuity funds
Expenses on employees stock option schemes
Employee medical and other insurance premium expenses
Staff welfare expenses
Recoveries on account of deputation
NOTE [35]
Sales, administration and other expenses
Particulars
Power and fuel
Packing and forwarding
Professional fees
Audit fees
Closing stock:
Integrated Annual Report 2021-22
427
69630.46
81565.35
112.14
63.76
Repairs to buildings
24.33
21.28
General repairs and maintenance
566.64
546.17
Bank guarantee charges
315.32
712.89
310.08
(38.61)
37.16
Other provisions
164.64
136.79
Miscellaneous expenses
598.65
727.69
10517.85
9183.68
Provision/(reversal) for foreseeable losses on construction contracts
12755.52
2020-21
crore
Name of the Company
Particulars
Sr. No.
Annexure A:
19(c) Annual disclosure as Large Corporate pursuant to SEBI circular dated November 26, 2018.
[1] Represents unsecured term loans obtained in foreign currency.
19.48 Current maturity of long-term borrowings [refer Note 24]
730.86 Short Term Unsecured Loan [refer Note 23]
1928.20 Borrowings noncurrent [refer Note 19]
1982.64
Repayable on May 7, 2023
Repayable on October 19, 2023
Repayable on April 8, 2024
Repayable on April 8, 2023
Stock-in-trade
Work-in-progress
Less: Opening stock:
Finished goods
Stock-in-trade
Work-in-progress
Corporate
Overview
Management
Integrated
1
2
CIN
3
1. Name of the Company: Larsen & Toubro Limited
Annexure B
Non-current liabilities: Financial Liabilities- Borrowings (contd.)
Insurance
NOTE [19]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
419
[1] Figure pertains to long-term borrowings with original maturity of more of than one year (excludes External Commercial Borrowings and
inter-corporate borrowings between the Company and its subsidiaries)
Discussion and Analysis Report
•IND AAA(Stable) by India Ratings and Research Private Limited
National Stock Exchange of India Limited
• CRISIL AAA (Stable) by CRISIL Limited
Larsen & Toubro Limited
L9999MH1946PLC004768
15244 Crore [1]
Details
be paid, in case of shortfall in the required
borrowing under the framework
5
Name of Stock Exchange in which the fine shall
financial year along with name of the Credit
Rating Agency
Highest Credit Rating during the previous
Outstanding borrowings of the Company as at
31st March 2022
4
• ICRA AAA (Stable) by ICRA Limited
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
* crore
1128.86
2 3 4 5
541.93
133.46
133.46
41.22
22.26
As at
31-3-2021
* crore
1087.56 USD LIBOR + Spread [1]
Rate of Interest for the year 2021-22
521.60 USD LIBOR + Spread [1]
128.46 USD LIBOR + Spread [1]
128.46 USD LIBOR + Spread [1]
52.99 9.00% p.a. payable monthly
28.61 8.40% p.a. payable monthly
1
730.86
7
Total
Less:
2001.19
18.55
Less:
Terms of repayment of term loan outstanding as at
31-3-2022
Repayable on April 14, 2025
Repayable on October 8, 2023
2021-22
LARSEN & TOUBRO
6
CIN: L99999MH1946PLC004768
As at
31-3-2022
[1] The principal amount has been calculated as [{Average Ref WPI as at reporting period/Average Ref WPI (as at 23/5/2013)} x Face Value]
19(b) Details of term Loans (Unsecured):
NOTE [19]
Non-current liabilities: Financial Liabilities- Borrowings (contd.)
19(a) (iii) Unsecured redeemable non-convertible inflation linked debentures:
LARSEN & TOUBRO
Face
value per
debenture (*)
Date of
allotment
As at
31-3-2022
crore
10,00,000
May 23,2013 131.67 [1]
As at
31-3-2021
* crore
127.75 [1]
Interest for the
year 2021-22
Sr.
No.
1.65% p.a.
1.73
1.60
129.94
126.15
payable on
Inflation Adjusted
Principal as on the
date of coupon
payment
Terms of repayment for debentures
outstanding as on 31.3.2022
Redeemable at the end of 10th year from the
date of allotment. Redemption value calculated
as [{Average Ref WPI (on Maturity Date) / Average
Ref WPI (on Issue Date)} x Face Value] with Floor
Rate as 3% and Cap Rate as 12%. WPI here
refers to Wholesale Price Index
Current Liabilities: Financial Liabilities-Current maturities of Long term
borrowings [refer Note 24]
Non-Current liabilities: Financial Liabilities - Borrowings [refer Note 19]
Less:
271.99
2678.54
9.96
45385.34
58.75
52.36
2020-21
2021-22
crore
6398.20
7396.88
(262.77)
(264.92)
539.80
607.85
99.81
96.94
43.89
49.11
240.93
281.16
75.51
85.93
11.41
29.83
154.01
49.64
43.26
425.99
343.15
36.03
37.33
29.59
53.19
100.06
108.09
1.13
1.07
207.13
236.19
165.40
21.39
145.33
188.12
(1.17)
62.29
101.68
114.52
60.80
58.42
6.91
7.78
16.49
Commission:
5736.54
2020-21
46.59
Premium earned (net) on related forward exchange contracts
73.02
89.58
Income from services to Group companies
74.20
65.51
Lease rentals
7.16
4.75
Technical fees
426.21
Profit/(loss) on sale of investment properties
Other operational income:
85951.13
100383.80
116.57
137.48
1031.75
1233.93
188.68
50.50
Miscellaneous income
410.18
673.26
2021-22
crore
Stationery and printing
Advertising and publicity
Telephone, postage and telegrams
Directors' fees
General repairs and maintenance
Repairs to buildings
Travelling and conveyance
Rates and taxes
6626.74
Rent & hire charges
Other income
NOTE [32]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
425
87255.48
101000.41
1304.35
616.61
Particulars
Distributors and agents
Others
22.30
14.78
(52.11)
70.88
1076.70
506.09
70.42
1006.28
515.13
(9.04)
1034.40
1619.06
15.34
3.74
174.38
156.83
844.68
1458.49
950.71
1055.51
733.74
780.09
216.97
51.19
95.83
88.75
250.50
879.24
Changes in inventories of finished goods, work-in-progress and stock-in-trade and
property development :
Sub-contracting charges
Stores, spares and tools consumed
Purchase of stock-in-trade
Construction materials consumed
Less: Scrap sales
Raw materials and components
Cost of raw materials, components consumed:
Particulars
275.42
Manufacturing, construction and operating expenses
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
3360.29
3612.65
210.65
NOTE [33]
2020-21
crore
2021-22
1056.35
Allowance for expected credit loss (net)
157.49
131.67
Corporate social responsibility
13.86
22.49
375.97
156.66
389.83
703.96
179.15
404.33
410.58
Miscellaneous expenses
77.43
19.15
24.22
77.98
Bank charges
2.20
1.92
16.95
Bad debts and advances written off(net of written back)
Less: Allowance for expected credit loss written back
158.86
Exchange (gain)/loss (net)
Other provisions
426
Miscellaneous income (net of expenses)
Lease rentals
Net gain/(loss) on sale of property, plant and equipment
Net gain/(loss) on sale of investments
Net gain/(loss) on fair valuation of investments
Others
Joint venture companies
Subsidiary companies
Dividend income:
Provision with respect to loans given to subsidiary companies
Others
Interest income:
(93.30)
(65.47)
2982.68
175.11
45.46
277.70
0.90
36.68
(142.09)
Recoveries from subsidiary and associates
Subsidiary and associate companies
62.25
Net gain/loss on derivatives at fair value through profit or loss
2645.51
37.44
55.38
84.29
319.51
346.90
127.78
As at 31-3-2021
As at 31-3-2022
129.35
crore
[1] mainly includes liabilities towards joint ventures, statutory dues & employee benefits.
Other payables [1]
Advances from customers
Due to customers (Construction related activity)
Contract liabilities [refer Note 41(d)]
Particulars
Other current liabilities
NOTE [27]
[2] Mainly includes liability towards employee benefits & capital goods
[1] Due to others include due to directors 89.75 crore (previous year: * 36.96 crore)
Due to others [1] [2]
Financial guarantee contracts
9.74
2719.65
3317.63
1939.12
2451.53
Employee pension scheme
Compensated absences
Gratuity
Provision for employee benefits:
Particulars
Current liabilities - provisions
NOTE [28]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
Embedded derivative payable
423
28888.84
25179.78
2294.98
26571.06
2317.78
14036.37
15264.06
11143.41
11307.00
As at 31-3-2021
As at 31-3-2022
crore
27474.76
Forward contract payable
Unclaimed dividend
Particulars
2-3 years
1-2 years
Less than 1
year
Total
Not due
Outstanding for the following periods from the
due date of payment
Unbilled
Dues
Particulars
As at 31-3-2021
crore
More than
3 years
LARSEN & TOUBRO
NOTE [25]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
537.81
422
[a] Current liabilities: Financial liabilities - Trade payables ageing (contd.)
Post-retirement medical benefits plan
Undisputed:
49.08
Current liabilities - Other financial liabilities
NOTE [26]
20.46
40769.78
2.66
904.92
525.93
424.94
0.14
1.04
5835.50
16.76
15514.73
17563.76
Micro and small enterprises
Total
---0.14
Micro and small enterprises
Disputed:
448.16
40301.02
0.83
901.29
0.55
525.38
1.04
423.90
368.78
15129.19
17514.68
Others
Others
Other Provisions [refer Note 50]
27.88
5806.58
Contingent liabilities
As at 31-3-2022
Particulars
crore
LARSEN & TOUBRO
NOTE [30]
Commitments
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
As at 31-3-2021
Management
424
In respect of matters at (j), the cash outflows, if any, is fully reimbursable by the third parties under an agreement entered in to with
them
In respect of matters at (g) to (i), the cash outflows, if any, could generally occur up to completion of projects undertaken by the
respective joint operations.
In respect of matters at (f), the cash outflows, if any, could generally occur up to nine, being the period over which the validity of the
guarantees extends.
In respect of matters at (e), the cash outflows, if any, could generally occur up to five, being the period over which the validity of the
guarantees extends except in a few cases where the cash outflows, if any, could occur any time during the subsistence of the borrowing
to which the guarantees relate.
The Company does not expect any reimbursements in respect of the above contingent liabilities except in respect of matters at (j)
It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution of the
arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above includes interest except in cases where the Company
has determined that the possibility of such levy is remote.
6.
5.
4.
3.
Corporate
Overview
2.
(a) Estimated amount of contracts remaining to be executed on capital account (net of
advances) on:
1658.27
2857.52
81906.37
NOTE [29]
95458.20
2020-21
crore
1658.27
14.00
2021-22
1895.50
477.57
3.44
(i) Property, plant & equipment
1892.06
Servicing
Engineering and service fees
Property development activity
Manufacturing and trading activity
Construction and project related activity
Particulars
Revenue from operations
NOTE [31]
(b) Funding committed by way of equity/loans to subsidiary companies
(ii) Intangible assets
Commission
1.
Sales and service:
479.43
As at 31-3-2022
crore
1650.38
1861.48
919.70
1109.12
730.68
752.36
13.30
13.38
As at 31-3-2021
29.09
615.38
83.08
97.67
As at 31-3-2021
As at 31-3-2022
Notes:
Particulars
(a) Claims against the Company not acknowledged as debts
crore
(b) Sales tax/GST liability that may arise in respect of matters in appeal
25.93
3105.76
605.21
2989.58
292.64
7042.11
61.95
(j) Indemnities for performance given on behalf of third parties
4405.09
324.60
263.21
4875.31
57.01
(h) Share in contingent liabilities of joint operations for which the Company is contingently liable
Contingent liabilities in respect of liabilities of other joint operators of joint operations
(g) Contingent liabilities, incurred in relation to interests in joint operations
13899.75
29856.81
(f) Corporate and bank guarantees for performance given on behalf of subsidiary companies/
joint venture companies
6520.74
12871.12
(c) Excise duty/service tax/customs duty liability that may arise including those in respect of
matters in appeal/challenged by the Company in Writ
(e) Corporate and bank guarantees for debt given on behalf of subsidiary companies/joint
venture companies
359.38
(d) Income tax liability that may arise in respect of which the Company is in appeal
2546.93
341.37
5534.67
179.47
3165.49
98177.80
58610.12
59386.55
26658.40
(1010.23)
168502.28
(993.42)
159915.62
(1010.23)
101388.23
72512.82
(993.42)
22905.19
3819.33
Total
101522.49
1314.82
1430.07
431
Defence Engineering
4806.78
5843.61
3732.45
3989.02
79493.27
3766.94
Others
Unallocable corporate assets/liabilities
Inter- segment assets/liabilities
Total assets/liabilities
7225.62
6616.69
110902.39
Electrical & Automation (discontinued operations)
Integrated Annual Report 2021-22
ended
Notes forming part of the Financial Statements (contd.)
For the
year
ended
For the
year
ended
For the
year
ended
year
ended
ended
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
For the
year
ended
For the
year
ended
For the
year
ended
For the For the
year
667.67
2894.59
Infrastructure
697.03
year
ended
Notes forming part of the Financial Statements
year
For the
NOTE [40]
Disclosure pursuant to Ind AS 108 "Operating Segment" (contd.)
crore
Depreciation,
amortisation,
impairment &
obsolescence
included in segment
Other non-cash
expenses included in
segment expense
Finance cost
included in segment
Interest income
included in segment
Additions to
non-current assets
expense
expense
Particulars
expenses
For the
Heavy Engineering
Inter-segment margins on capital jobs
4757.17
708.32
8203.19
7588.40
(120.91)
Electrical & Automation (discontinued operations)
Total
Result of discontinued operations
Unallocable corporate income net of expenditure
Finance cost
Exceptional items[Note 59]
Profit before tax
Current tax
Deferred tax
Net profit after tax from continuing operations
Profit before tax from discontinued operations
552.46
Tax expense of discontinued operations
Others
616.98
Infrastructure
4956.38
36.31
4274.41
Hydrocarbon
1551.38
1267.68
Power
139.38
111.08
Heavy Engineering
470.11
489.02
Defence Engineering
533.48
120.91
4672.13
Net profit after tax from discontinued operations
3292.46
(1754.24)
As at
31-3-2022
Segment Liabilities
As at
31-3-2021
78516.42
71165.97
56504.01
48169.76
Hydrocarbon
11618.71
9212.21
9195.80
10654.59
Power
5840.27
5518.52
As at
31-3-2021
Net profit after tax from continuing operations &
discontinued operations
As at
31-3-2022
Particulars
290.06
10031.47
(2427.94)
275.92
7879.45
7879.45
(11.11)
3062.71
(2381.71)
(2818.65)
5318.73
(1847.72)
(323.70)
3147.31
11199.23
(2548.75)
8650.48
11797.79
crore
Segment Assets
Infrastructure
33.53
10437.47
276.08
1658.85
2919.31
Other countries
11452.59
Total foreign countries (ii)
20099.01
1620.11
22457.96
101000.41
88473.41
Less: Discontinued operations
1217.93
Total
101000.41
Total (i+ii)
2112.02
4712.36
3632.35
For the
year ended
For the
year ended
India(i)
Foreign countries:
United Arab Emirates
Saudi Arabia
Qatar
Kuwait
31-3-2022
80901.40
31-3-2021
66015.45
2258.32
1753.59
87255.48
Particulars
Non-current assets
As at
Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed ten
percent of the Company's total revenue.
(d) The Company's reportable segments are organised based on the nature of products and services offered by these segments.
(e) Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:
Basis of identifying Operating segments:
(i)
ii)
Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues
and incur expenses (including transactions with any of the Company's other components; (b) whose operating results are regularly
reviewed by the Company's executive management to make decisions about resource allocation and performance assessment; and
(c) for which discrete financial information is available.
The Company has six reportable segments as described under "segment composition" below. The nature of products and services
offered by these businesses are different and are managed separately given the different sets of technology and competency
requirements.
Reportable segments
An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute amount
of result or assets exceed 10% or more of the combined total of all the operating segments.
iii) Segment profit
Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management
reports that are reviewed by the corporate executive management.
iv) Segment composition
Infrastructure segment comprises engineering and construction of (a) building and factories, (b) transportation
infrastructure, (c) heavy civil infrastructure, (d) power transmission & distribution, (e) water & effluent treatment systems and
(f) minerals & metals.
Segment result [Profit /(loss) before interest and tax]
Hydrocarbon segment comprises EPC solutions for the global Oil & Gas industry from front-end design through detailed
engineering, modular fabrication, procurement, project management, construction, installation, and commissioning.
(c)
Revenue by location of project
Disclosure pursuant to Ind AS 108 "Operating Segment" (contd.)
Notes forming part of the Financial Statements (contd.)
31-3-2022
India (i)
13455.49
Foreign countries (ii)
230.75
Total (i+ii)
13686.24
As at
31-3-2021
12999.29
350.81
13350.10
Corporate
Overview
Management
Discussion and Analysis Report
Statutory Financial
Reports Statements
LARSEN & TOUBRO
NOTE [40]
crore
Particulars
432
1.83
1.14
6.02 1863.02 1111.21
491.36
61.32
53.30
55.88
42.17
36.32
84.26
56.83
Electrical & Automation
[Discontinued operations]
0.69
2.14
136.69
66.58
116.76
0.82
4.58
Hydrocarbon
112.82
127.03
2.56
3.58
Power
32.33
35.58
0.91
0.48
Heavy Engineering
46.41
47.21
1.18
Defence Engineering
194.80
Others
41.88
2023.26 1809.22
Inter-segment
(0.84)
-
Total
1172.50 1151.37
49.11
46.03
-
(264.01)
(1020.78)
5034.12
2776.68
Note: There is no impairment in non-financial assets of the segments. Unallocable corporate expenses include impairment loss of Nil for
the year ended March 31,2022 (previous year: 0.10 crore)
(b) Geographical information
(6.02)
41.82
3274.87 1988.24
4.58
(4.58)
2.18
2.39
740.76
600.10
Total
1047.17
1056.75
44.97
44.08
Unallocated corporate
125.33
95.46
4.14
194.80
1.95 (194.80)
276.08
(276.08)
6.02
87255.48
Depreciation on:
101000.41
NOTE [37]
Depreciation, amortisation, impairment and obsolescence
Particulars
Property, plant and equipment
Right of use assets
Investment property
Exchange loss
Amortisation of intangible assets
Obsolescence on property, plant and equipment
NOTE [38]
Disclosure pursuant to Ind AS 103 "Business Combinations":
2021-22
crore
2021-22
1689.77
Impairment of property, plant and equipment
Other borrowing costs
Interest expenses
Particulars
General repairs and maintenance
566.64
236.19
802.83
546.17
207.13
9
Miscellaneous expenses
598.65
410.58
1009.23
727.69
753.30
404.33 1132.02
NOTE [36]
Finance costs
2020-21
2376.98
0.10
64.47
1754.24
The assets and liabilities of LTHE are reflected at their carrying amounts. No adjustment is made to reflect the fair values, or recognise
any new asset or liability.
The balance of the Retained earnings appearing in the financial statements of the LTHE is aggregated with the corresponding balance
appearing in the financial statements of the Company.
iii.
Restating the financials of the Company from April 1, 2020.
429
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [39]
Disclosure pursuant to Ind AS 105 "Non-current assets held for sale and discontinued operations":
During the year 2020-21, the Company completed the divestment of Electrical & Automation (E&A) business which was classified as
discontinued operation.
(a) The operating profit from E&A business upto the date of divestment and the gain on divestment have been shown below:
crore
2020-21
Particulars
ii.
8
i.
1150.68
4.63
2381.71
crore
2020-21
1021.04
962.27
104.00
16.49
122.80
17.48
1141.53
23.72
1102.55
40.58
0.10
7.25
1172.50
7.45
L&T Hydrocarbon Engineering Limited (LTHE), a wholly owned subsidiary, is merged with the Company under a Scheme of Arrangement
approved by National Company Law Tribunal, Mumbai on January 28, 2022. The merger is effective from the appointed date April 1, 2021.
LTHE has a registered office in Mumbai, India and is engaged in the business of EPC solutions for the global Oil & Gas industry from front-end
design through detailed engineering, modular fabrication, procurement, project management, construction, installation, and commissioning.
No fresh shares are issued to effect the merger as LTHE is a wholly owned subsidiary of the Company. Further the merger is accounted in
accordance with the Scheme of Arrangement and accounting standards using pooling of interest method, involving the following:
42.67
21.39
21.28
Note 34
Note 35
1
Power and fuel
2054.12
58.75
Total
2112.87
Note 33
1369.62
Note 34
Note 35
Total
49.64
1419.26
2
Packing and forwarding
Note 33
567.90
No.
2020-21
Power segment comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power generation
equipment with associated systems and/or balance-of-plant packages.
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [35] (a)
LARSEN & TOUBRO
-
Aggregation of expenses disclosed vide Note 33 -Manufacturing, construction and operating expenses, Note 34 -Employee benefits expense
and Note 35 Sales, administration and other expenses.
crore
Sr.
2021-22
Nature of expenses
Revenue from operations
52.36
Insurance
Travelling and conveyance
779.91
188.12
743.42
968.03
583.66
-1.17
582.49
712.89
145.33
858.22
7
Repairs to buildings
24.33
16.49
40.82
6
3
2231.39
595.95
450.92
96.94
4
Rent hire charges
2623.82
5
Rates and taxes
681.13
58.42
114.52
62.29
620.26
606.28
2738.34 2129.71
497.88
435.34
43.26
541.14
99.81
60.80
101.68
87255.48
(ii)
1262.74
6.62
16011.37
Power
4418.84
29.35
4448.19
16004.75
3176.56
3192.64
Heavy Engineering
2723.94
314.52
3038.46
2711.42
16.08
17363.50
12.03
17351.47
For the year ended 31-3-2022
Inter-
External
segment
For the year ended 31-3-2021
Total
External
Inter-
segment
Total
Revenue
Infrastructure
69157.59
427.74
69585.33
58079.21
284.94
58364.15
Hydrocarbon
306.81
3018.23
Defence Engineering
3218.00
101815.91
88473.41
725.19
89198.60
Revenue of discontinued operations
(1217.93)
(44.81)
(1262.74)
Inter-segment revenue
(815.50)
(815.50)
(680.38)
(680.38)
Total
101000.41
815.50
Particulars
101000.41
3939.35
8.40
3226.40
3409.99
0.13
3410.12
Electrical & Automation (discontinued operations)
1217.93
44.81
1262.74
Others
4130.57
23.46
4154.03
3873.55
65.80
Sub-total
crore
LARSEN & TOUBRO
Information about reportable segments:
Loans
Inventories
Trade receivables
Other assets
Total
Liabilities related to group(s) of assets classified as held for sale:
Trade payables
Provisions
Total
Other liabilities
Carrying amount of net assets sold
(c) Summarised Statement of Cash Flows of discontinued operations:
Particulars
Cash flow from operating activities
430
Intangible assets under development
Cash flow from investing activities [1]
Intangible assets
Property, plant and equipment
1141.83
(iii) Profit before tax (i)-(ii)
(iv) Tax expense
120.91
27.21
(v)
Profit after tax (iii)-(iv)
93.70
(vi) Gain on transfer of E&A business before tax
(vii) Tax on above (including related deferred tax reversal)
(viii) Gain on transfer E&A business (net of tax) (vi)-(vii)
(ix) Other Comprehensive Income
(b) Major classes of assets and liabilities of E&A business transferred:
Particulars
Group(s) of assets classified as held for sale:
Capital work-in-progress
Total expense
11078.32
8556.78
(2.48)
(60.37)
Cash flow from financing activities
Activities related to borrowings and investments of surplus funds were managed at Corporate and accordingly formed part of
unallocable corporate assets/liabilities (refer Note 40). There were no borrowings or investments specifically allocable to E&A business.
[1] represents additions & deletions to property, plant and equipment and intangible assets adjusted for movement of (a) capital work-in-progress
for property, plant and equipment and (b) Intangible assets under development during the year.
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [40]
Disclosure pursuant to Ind AS 108 "Operating Segment"
(a)
2020-21
2521.54
crore
1030.73
(2.63)
crore
As at
August 31, 2020
655.04
11.22
174.97
130.46
2.03
641.50
701.11
231.69
2548.02
591.74
91.32
347.67
1517.29
Heavy Engineering segment comprises manufacture and supply of custom designed, engineered critical equipment &
systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil & Gas and Thermal & Nuclear Power.
Defence Engineering segment comprises (a) design, development, serial production and through life-support of equipment,
systems and platforms for Defence and Aerospace sectors and (b) design, construction, and repair/refit of defence vessels.
Electrical & Automation segment (upto the date of transfer and disclosed as discontinued operation) comprises
manufacture and sale of low and medium voltage switchgear components, custom-built low and medium voltage
switchboards, electronic energy meters/protection (relays) systems and control & automation products.
Integrated
433
86.30
(4378.30)
11
Changes on lease termination/lease
concessions
(1.82)
(1.82)
12
The effect of changes in foreign exchange
rates
39.94
13
Interest accrued
1064.23
20.05
(36.59)
59.99
14
Other changes (transfer within categories)
(96.33)
(5232.49)
(18.00)
450.00
(1.29)
(157.31)
(190.06)
426.40
7
Other changes (transfer within categories)
(999.56)
999.56
8
Balance as at March 31, 2021
16646.73
6827.90
999.56
9
Additions to lease liability
190.27
86.30
24664.46
10
Changes from financing cash flows
(4713.97)
(125.57)
(18.05)
15
12968.41
450.00
9117.73
Repayment of non-current borrowings
3057.40
13153.42
3101.32
13345.35
Total
1607.63
7026.37
1822.46
7965.30
assets (on account of indexation benefit)
Temporary differences arising out of revaluation of tax base of
2.
1449.77
6127.05
Proceeds from non-current borrowings
Balance as at March 31, 2022
2020-21
Particulars
2097.39
(981.56)
5232.49
5232.49
46.08
178.42
20476.71
436
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [43]
LARSEN & TOUBRO
Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 "Statement of Cash Flows": (contd.)
Amounts reported in Statement of Cash Flows under financing activities:
crore
2021-22
1278.86
(63.20)
601.76
6
94.72
473.67
328.25
120.05
448.30
Due to others
25
42,800.99
Lease Liability
Other financial liabilities
26
70.15
3295.44
Other current liabilities
27
24356.50
Provisions
28
378.96
1480.32
Due to micro enterprises and small
enterprises
months
2512.75
1.23
55129.23
2513.99
49855.81
crore
Within
Particulars
Note
twelve
months
As at 31-3-2022
After
twelve
months
As at 31-3-2021
Within
After
Total
twelve
months
twelve
Total
Trade payables:
Interest accrued
2110.68
54.29
22.19
4532.34
381.16
38008.99
75.37
2429.01
22808.98
1224.10
Additions to lease liability
208.14
109.15
3
Changes from financing cash flows
9117.73
(6823.60)
(3396.88)
(117.04)
25548.74
109.15
(1219.79)
4
Changes on lease termination/lease
concessions
(9.98)
(9.98)
5
The effect of changes in foreign exchange
rates
2
44911.67
124.44
3317.63
28888.84
1861.48
Total
Current
maturities
of long term
borrowings
(Note 24)
3555.48
2312.49
38.66
22.52
4665.78
426.28
40321.48
114.03
2451.53
27474.76
1650.38
NOTE [43]
Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 "Statement of Cash Flows":
crore
Sr
Particulars
No.
Non-current
borrowings
(Note 19)
Current
borrowings
(Note 23)
1
Balance as at April 01, 2020
7990.00
13795.12
Lease liability
5380.05
in value of investments on which DTA not created
Deductible temporary differences towards provision for diminution
Deferred tax:
(B)
(2.45)
71.85
(2.45)
71.85
On gain/(loss) on cash flow hedges other than mark to market
Items to be reclassified to Profit or Loss in subsequent periods:
(A) Current tax expense/(income):
(ii)
13.27
19.51
13.27
19.51
On remeasurement of defined benefit plans
(i) Items not to be reclassified to Profit or Loss in subsequent periods:
Current tax expense/(income):
Other comprehensive income (OCI) Section:
2.
On mark to market gain/(loss) on cash flow hedges
4720.17
Net gain/(loss) on cost of hedge reserve
On foreign currency translation of joint operations
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
437
145.19
(18.52)
134.37
(109.88)
4.42
(6.69)
54.79
(40.70)
2.97
0.77
72.19
(63.26)
Income tax expense reported in the OCI section [(i)+(ii)]
Net gain/(loss) on fair value of debt securities
[NOTE 44]
2152.02
2171.42
2021-22
crore
Particulars
Sr.
No.
(a) Major components of tax expense/(income):
Disclosure pursuant to Ind AS 12 "Income Taxes":
NOTE [44]
(1219.79)
(4378.30)
Total changes from financing cash flows (refer to Sr.No 3 & 10 supra)
(117.04)
(96.33)
Repayment of lease liability
(6823.60)
(4713.97)
(Repayments)/proceeds from other borrowings (net)
(3396.88)
2020-21
2548.75
1.
(i)
2152.02
Profit from discontinued operation
Profit from continuing operations (including exceptional items)
Income tax expense is attributable to:
4720.17
2152.02
Income tax expense reported in Profit or Loss [(i)+(ii)]
771.12
(275.92)
Tax expense on origination and reversal of temporary differences
Deferred tax:
(ii)
3943.32
5.73
2424.86
3.08
Tax expense of earlier years
Current income tax expense
Current Income tax :
Profit or Loss section
Disclosure pursuant to Ind AS 12 "Income Taxes": (contd.)
(b) Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate applicable in India:
Sr.
No.
Unused tax losses for which no deferred tax asset (DTA) is recognised in Balance Sheet:
(c) (i)
Effective tax Rate (6)=(5)/(1)
(6)
Tax expense recognised during the year (5)=(3)+(4)
(5)
Total effect of tax adjustments [(i) to (viii)]
28.58%
21.45%
4720.17
2152.02
562.93
(372.70)
136.80
5.01
103.51
6.95
(260.34)
Particulars
(407.49)
Capital loss
As at 31-3-2022
Deferred Tax
(* crore)
156.22
1.
Deferred Tax
As at 31-3-2021
Base Amount
Deferred Tax
Base Amount
No.
Particulars
Sr.
As at 31-3-2022
crore
(ii) Unrecognised deductible temporary differences for which no deferred tax asset (DTA) is recognised in Balance Sheet:
438
FY 2029-30
Expiry date
As at 31-3-2021
Deferred Tax
(*crore)
Base Amount
(crore)
Expiry date
Base Amount
(* crore)
682.79
3.48
5.73
(266.65)
(12.96)
(iv) Effect of lower tax rate on long term capital gains
(iii) Effect of current tax related to earlier years
(ii) Tax effect on impairment recognised on which deferred tax asset is not recognised
(B) Tax on employee perquisites borne by the Company
(A) Corporate social responsibility
Tax on expenses not tax deductible:
(i)
(4)
Tax on Accounting profit (3)=(1)*(2)
(3)
Corporate tax rate as per Income Tax Act, 1961
(2)
Discontinued Operations
Continuing Operations (including exceptional items)
Profit before tax from:
(1)
Particulars
(v) Tax effect of losses in joint operation of current year on which no deferred tax benefit is
recognised
(vi) Effect of deduction with respect to dividend income
(vii) Reversal of deferred tax on brought forward losses on utlisation as set off against gains
(viii) Tax effect on various other items
crore
3.08
795.33
2.52
3.04
39.08
33.14
4157.24
2524.72
2182.44
25.17%
16517.96
10031.47
11199.23
Others segment includes realty, smart world & communication projects (including military communications), marketing and
servicing of construction & mining machinery and parts thereof and manufacture, sale of rubber processing machinery and
digital platforms - (i) SuFin for B2B e-commerce & (ii) EduTech, for higher education and professional skilling.
5318.73
10031.47
2020-21
2021-22
25.17%
67.09
8702.33
(18.00)
Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
1142.75
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [41]
Disclosure pursuant to Ind AS 115 "Revenue from Contracts with Customers" (contd.)
(d) Contract balances:
LARSEN & TOUBRO
i.
Movement in contract balances during the year.
crore
2021-22
2020-21
Particulars
Contract
Assets
Contract Net contract
Liabilities
1599.24
Contract
3006.54
Balance as at March 31
3006.54
crore
Provision on Contract Assets
2020-21
2871.49
2021-22
1142.75
2020-21
983.03
Changes in loss allowance for expected credit loss:
Provision/(reversal) of allowance for expected credit loss
411.24
297.07
379.24
141.77
Additional provision (net) towards credit impaired receivables
Written off as bad debts
185.62
205.58
77.25
17.95
(121.66)
(367.60)
3481.74
2021-22
Contract Net contract
Opening balance as at April 01
13177.66
55784.32
Power
Hydrocarbon
Infrastructure
Other
Revenue
Total
Foreign
Domestic
Segment
Revenue as per Ind AS 115
crore
For the year ended March 31, 2022:
i.
(a) Disaggregation of revenue into Operating Segments and Geographical areas
Disclosure pursuant to Ind AS 115 "Revenue from Contracts with Customers"
NOTE [41]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
68961.98
balances
195.61
Segment reporting
44393.05
25179.78
19213.27
2681.30
1084.26
1597.04
7890.40
Heavy Engineering
4418.84
3.82
4415.02
264.56
4150.46
17351.47
59.10
17292.37
4971.55
12320.82
69157.59
Total as per Statement
of Profit and Loss/
Balance as at April 1
Provision on Trade
Receivables
Particulars
Domestic
Foreign
Total
Other
Revenue
Infrastructure
45137.26
12579.42
57716.68
362.53
Hydrocarbon
8863.43
7125.84
15989.27
15.48
Total as per Statement
of Profit and Loss/
Segment reporting
58079.21
16004.75
Power
3003.68
Segment
148.25
Revenue as per Ind AS 115
For the year ended March 31, 2021:
Defence Engineering
2796.35
418.70
3215.05
2.95
3218.00
Others
3995.67
130.60
4126.27
4.30
4130.57
Total
80644.66
20047.33
100691.99
308.42
101000.41
ii.
crore
3151.93
24.63
3176.56
108.95
22435.79
158.23
3437.69
87575.18
1208.48
435.86
3873.55
898.23
88473.41
9.45
1217.93
(discontinued operations)
Revenue for continuing operations
64089.14
22277.56
86366.70
888.78
87255.48
(b) Out of the total revenue recognised under Ind AS 115 during the year, 95882.14 crore (previous year: 82646.59 crore) is recognised
over a period of time and 4809.85 crore (previous year: 4928.59 crore) is recognised at a point in time.
(c)
Movement in Expected Credit Loss during the year:
434
65139.39
1050.25
Less: Electrical & Automation
Total
3328.74
Heavy Engineering
1176.67
1491.86
2668.53
42.89
2711.42
Defence Engineering
2579.36
823.24
Integrated Annual Report 2021-22
3402.60
3409.99
Electrical & Automation (discontinued
operations)
1050.25
158.23
1208.48
9.45
1217.93
Others
7.39
2723.94
42.64
25179.78
a. Revenue out of orders completed during the year
2603.95
Total Revenue recognised during the year :
Closing contracted price of orders as at the end of the year[1]
On account of business transfer
80749.97
b.
55660.22
Less:
(20881.89)
(1203.27)
2620.01
585.84
Increase/(decrease) due to exchange rate movements (net)
Increase due to additional consideration recognised as per contractual terms/(decrease) due to scope
reduction (net)
131925.57
Orders completed during the year
Revenue out of orders under execution at the end of the year (I)
753815.67
100691.99
6731.81
93960.18
701910.49
701910.49
753815.67
Closing contracted price of orders as at the end of the year [1] (1+||+|||+|V)
308209.45
315575.73
Balance revenue to be recognised in future viz. Order book (IV)
(323.95)
(434.38)
Increase/(decrease) due to exchange rate movements (III)
312712.25
344714.14
Revenue recognised upto previous year (from orders pending completion at the end of the year) (II)
81312.74
6262.44
87575.18
104359.55
Fresh orders/change orders received (net)
Add:
675424.00
25675.33
22522.67
Closing balance as at March 31
48783.33
26571.06
22212.27
44393.05
ii.
19213.27
Net increase/(decrease)
4390.28
1391.28
2999.00
(3804.95)
(495.55)
balances
[1] including full value of partially executed contracts.
Liabilities
During the current year, increase in net contract balances is primarily due to higher revenue recognition as compared to progress
bills raised.
2020-21
2021-22
701910.49
crore
Opening contracted price of orders as at start of the year[1]
Particulars
Reconciliation of contracted price with revenue during the year:
Recognised as contract assets at March 31, 2022: Nil (previous year: Nil)
Amortisation in Statement of Profit and Loss: Nil (previous year: Nil)
i.
ii.
(f)
Z
(e) Cost to obtain the contract:
Revenue recognised from opening balance of contract liabilities amounts to 5589.58 crore (previous year: 5896.41 crore)
iii. Revenue recognised from the performance obligation satisfied (or partially satisfied) upto previous year (arising out of contract
modifications) amounts to ₹ 10.19 crore (previous year: 26.40 crore)
During the previous year, decrease in net contract balances is primarily due to higher progress bills raised as compared to revenue
recognition.
Assets
48198.00
(g) Outstanding performance and Time for its expected conversion into Revenue:
crore
Time for expected conversion to Revenue
Trade receivables
670.28
2207.29
3132.51
1406.05
1726.46
9
Inventories
months
months
months
months
Total
twelve
twelve
Loans
Total
11
1910.90
41965.41
2115.35
46426.90
15
16
b.
Other current assets
Other financial assets
257.87
257.87
249.60
249.60
14
2877.57
33331.60
1028.40
32303.21
36347.35
34436.45
(3309.40)
twelve
Note
18900.06
16998.38
56898.50
61709.27
96242.11
102087.76
130487.43
114926.17
308209.45
As at March 31, 2021
315575.73
As at March 31, 2022
Beyond 5
2 to 3 years 3 to 4 years 4 to 5 years
1 to 2 years
Upto 1 Year
performance
Total
Outstanding
4689.65
twelve
years
8357.98
6811.01
Particulars
After
Within
After
Within
As at 31-3-2021
As at 31-3-2022
crore
a. Current assets expected to be recovered within twelve months and after twelve months from the reporting date:
Disclosure pursuant to Ind AS 1 "Presentation of financial statements":
NOTE [42]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
435
5676.86
i.
89
80
Nature of relationship
Transaction entered
during the year
Larsen & Toubro Hydrocarbon International Limited LLC [20]
Sr
No.
Name of the Subsidiary Company
95
L&T Power Development Limited
96
L&T Uttaranchal Hydropower Limited [15]
97
L&T Arunachal Hydropower Limited
98
L&T Himachal Hydropower Limited
WOS of L&T Technology Services Limited
Nabha Power Limited
100
L&T Metro Rail (Hyderabad) Limited [16]
101
Thalest Limited [17]
102
Cuelogic Technologies Private Limited [18]
103
Cuelogic Technologies Inc. [18]
104
L&T Cassidian Limited [19]
105
106
L&T Overseas Projects Nigeria Limited [21]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
107
NOTE [47]
LARSEN & TOUBRO
L&T Technology Services (Shanghai) Co. Ltd
WOS of L&T Technology Services Limited
No
90
L&T Technology Services (Canada) Ltd
WOS of L&T Technology Services LLC
No
91
Orchestra Technology, Inc. [14]
92
Mindtree Limited
WOS of L&T Technology Services LLC
Subsidiary
No
Yes
93
Mindtree Software (Shanghai) Co. Limited
WOS of Mindtree Limited
No
94
Bluefin Solutions SDN. BHD.
WOS of Mindtree Limited
No
446
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
Yes
L&T Capital Markets Limited [22]
L&T Capital Market (Middle East) Ltd [23]
No
WOS of L&T Technology Services Limited
Graphene Solutions Taiwan Limited
87
No
WOS of L&T Technology Services Limited
Graphene Solutions SDN. BHD.
86
No
WOS of L&T Technology Services Limited
Graphene Solutions PTE Ltd.
85
Yes
WOS of L&T Technology Services Limited
Graphene Semiconductor Services Private Limited
84
No
Yes
Yes
WOS of L&T Technology Services Limited
WOS of L&T Technology Services Limited
WOS of L&T Technology Services LLC
Esencia Technologies Inc. [13]
83
L&T Technology Services LLC
82
Esencia Technologies India Private Limited
81
Yes
Subsidiary of L&T Technology Services Limited
L&T Thales Technology Services Private Limited
88
108
Seastar Labs Private Limited
WOS
109
110
111
112
113
[27]
114
115
Tamco Electrical Industries Australia Pty Limited [27]
116
117
L&T Electrical & Automation FZE [27]
118
[1]
[2]
[3]
[4]
In process of liquidation
[5]
Formerly know as L&T Electricals and Automation Limited
Nielsen+Partners Luxembourg [24]
Sahibganj Ganges Bridge-Company Private Limited [25]
Servowatch Systems Limited [26]
L&T Electricals & Automation Saudi Arabia Company LLC [27]
Tamco Switchgear (Malaysia) SDN. BHD. (2
Henikwon Corporation SDN. BHD. [27]
PT. Tamco Indonesia [27]
Kana Controls General Trading & Contracting Company W.L.L. [27]
In process of being struck off from the register of companies
Struck off from the register of companies w.e.f. December 28, 2021
Liquidated on August 17, 2021
WOS of L&T Power Development Limited
WOS of L&T Power Development Limited
99
Subsidiary
WOS of L&T Power Development Limited
Subsidiary
Ahmedabad-Maliya Tollway Limited
17
L&T Samakhiali Gandhidham Tollway Limited
18
L&T Deccan Tollways Limited
19
Kudgi Transmission Limited
20
L&T Sambalpur-Rourkela Tollway Limited
21
L&T Rajkot-Vadinar Tollway Limited
22
L&T MBDA Missile Systems Limited
[1] Renamed
[2] The company ceased to be a joint venture w.e.f. October 21, 2021
(iii) Name of post-employment benefit plans with whom transactions were carried out during the year
Sr. No Provident Fund Trust
16
L&T Halol-Shamlaji Tollway Limited [2]
15
L&T Transportation Infrastructure Limited
Raykal Aluminium Company Private Limited
6
L&T - MHI Power Turbine Generators Private Limited [1]
L&T Special Steels and Heavy Forgings Private Limited
7
L&T Howden Private Limited
8
L&T Sapura Shipping Private Limited
9
1
L&T Sapura Offshore Private Limited
L&T Infrastructure Development Projects Limited
11
Panipat Elevated Corridor Limited
12
Vadodara Bharuch Tollway Limited
13
L&T Interstate Road Corridor Limited
14
10
5
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Larsen & Toubro Limited Provident Fund of 1952
1
Mr. S. N. Subrahmanyan (Chief Executive Officer &
Managing Director)
2
Mr. R. Shankar Raman (Whole-time Director & Chief
Financial Officer)
3
Mr. Shailendra Roy (Whole-time Director) [1]
4
Mr. Subramanian Sarma (Whole-time Director) [2]
5
Mr. D. K. Sen (Whole-time Director)
6
Mr. M. V. Satish (Whole-time Director)
7
Mr. J. D. Patil (Whole-time Director)
8
Mr. S.V. Desai (Whole-time Director) [3]
Yes
Sr. No
Sr. No
(i)
(iv) Name of key management Personnel and their relatives with whom transactions were carried out during the year:
Executive Director
3
Larsen & Toubro Limited Provident Fund
4
L&T Kansbahal Officers & Supervisory Provident Fund
5
L&T Kansbahal Staff & Workmen Provident Fund
Sr. No Gratuity Trust
1
2
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
3
L&T Shipbuilding Limited Employees Group Gratuity Assurance Scheme
4
L&T Hydrocarbon Engineering Limited Group Gratuity Scheme
Sr. No Superannuation Trust
1
Larsen & Toubro Limited Senior Officers' Superannuation Scheme
2
4
L&T - MHI Power Boilers Private Limited [1]
3
No
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
[6] Formerly known as L&T Parel Project LLP
[7]
Divested on June 3, 2021
[8]
[9]
In process of being struck off from the register of companies.
Formerly known as L&T Infra Debt Fund Limited
[10] Merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2021
No
Yes
No
No
WOS of Larsen & Toubro International FZE
Subsidiary of Larsen & Toubro Infotech Limited
Subsidiary of Cuelogic Technologies Private Limited
WOS
WOS of Larsen & Toubro International FZE
WOS of L&T Finance Holdings Limited
WOS of L&T Finance Holdings Limited
WOS of Nielsen+Partners Germany
WOS of L&T Capital Company Limited
WOS of Thalest Limited
WOS of Tamco Switchgear (Malaysia) SDN. BHD
WOS of Larsen & Toubro International FZE
WOS of Tamco Switchgear (Malaysia) SDN. BHD
WOS of Larsen & Toubro International FZE
WOS of Larsen & Toubro International FZE
WOS of Larsen & Toubro International FZE
WOS of L&T Electrical & Automation FZE
(Yes/No)
[11] Incorporated on August 17, 2020
Yes
Yes
Yes
Yes
Yes
No
No
No
No
Yes
[12] Incorporated on November 25, 2020
[13] Merged with L&T Technology Services LLC w.e.f. October 1, 2021
[14]
447
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
(b) (i) Name of associates and joint ventures with whom transactions were carried out during the year:
Sr. No Associate Companies
448
Divested on August 31, 2020
1
2
Magtorq Engineering Solutions Private Limited
Names of joint ventures with whom transactions were carried out during the year:
Sr. No Joint Venture Companies
1
L&T-Sargent & Lundy Limited
2
Sr. No Joint Venture Companies
L&T-Chiyoda Limited
Magtorq Private Limited
WOS of L&T Power Development Limited
Divested on December 1, 2020
[27]
[15]
The Company through its subsidiary has acquired stake on October 2, 2020
Divested on August 30, 2021
[16]
ངཚནEརྫ ་ ཀྱ ་ྕ 2 ཋ ཎྜ ཨྰཿནྡྲ ཊ བ བ བ ཟླ བ ཐ བ
[17]
[18]
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders' Agreement
Dissolved on September 7, 2021
The company through its subsidiary has acquired stake on July 7, 2021
Dissolved w.e.f. March 30, 2021
[19] Dissolved w.e.f. January 28, 2021
[21]
[22]
Dissolved w.e.f. January 21, 2021
Divested on April 24, 2020
[23] Liquidated w.e.f. from December 17, 2020
[24] Merged with Syncordis PSF S.A. w.e.f. December 21, 2020
[25]
[26]
[20] Liquidated on May 16, 2020
No
g) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
L&T Technology Services Limited
The Post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees
post their retirement. The reimbursement is subject to an overall ceiling sanctioned based on cadre of the employee at the
time of retirement. The plan is unfunded. Employees do not contribute to the plan.
Company's pension plan:
Post-retirement medical care plan:
Unfunded gratuity represents a small part of gratuity plan which is not material. Further, the unfunded portion includes
amounts payable in respect of the Company's foreign operations which result in gratuity payable to employees engaged as per
local laws of country of operation.
The defined benefit plan for gratuity of the Company is administered by separate gratuity funds that are legally separate
from the Company. The trustees nominated by the Company are responsible for the administration of the plan. There are no
minimum funding requirements of these plans. The funding of these plans are based on gratuity fund's actuarial measurement
framework set out in the funding policies of the plan. These actuarial measurements are similar compared to the assumptions
set out in (g) supra. Employees do not contribute to any of these plans.
The Company operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent to fifteen
days last salary drawn for each completed year of service. The same is payable on termination of service or retirement
whichever is earlier. The benefit vests after five years of continuous service. The Company's scheme is more favorable as
compared to the obligation under Payment of Gratuity Act, 1972.
Gratuity plan:
3
NOTE [46]
2
1
i)
h) Characteristics of defined benefit plans and associated risks:
In addition to contribution to state-managed pension plan (EPS scheme), the Company operates a post retirement pension
scheme, which is discretionary in nature for certain cadres of employees. The quantum of pension depends on the cadre of the
employee at the time of retirement. The plan is unfunded. Employees do not contribute to the plan.
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 "Employee Benefits" (contd.)
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
443
(18.39)
52.57
50.83
(18.59)
22.49
(41.29)
2020-21
2021-22
2020-21
Effect of 1% decrease
NOTE [45]
4
Trust managed provident fund plan:
The Company manages provident fund plan through a provident fund trust for its employees which is permitted under the
Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The plan mandates contribution by employer at a fixed
percentage of employee's salary. Employees also contribute to the plan at a fixed percentage of their salary as a minimum
contribution and additional sums at their discretion. The plan guarantees interest at the rate notified by Employees' Provident
Fund Organisation. The contribution by employer and employee together with interest are payable at the time of separation
from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.
The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest
income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognized
immediately in the Statement of Profit and Loss as actuarial loss. Any loss/gain arising out of the investment risk and actuarial
risk associated with the plan is also recognized as expense or income in the period in which such loss/gain occurs.
All the above defined benefit plans expose the Company to general actuarial risks such as interest rate risk and market
(investment) risk.
Kesun Iron and Steel Company Private Limited [1]
Yes
Subsidiary
Bhilai Power Supply Company Limited
23 <
Yes
Wholly Owned Subsidiary [WOS]
Transaction entered
during the year
(Yes/No)
Nature of relationship
L&T Construction Equipment Limited
1
No.
Name of the Subsidiary Company
Sr
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures"
List of related parties over which control exist and status of transactions entered during the year:
NOTE [47]
Notes forming part of the Financial Statements (contd.)
LARSEN & TOUBRO
Statutory Financial
Reports Statements
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
444
(ii) The Company's defence manufacturing facility is eligible for certain incentives under Gujarat Aerospace and Defence Policy, 2016.
Income accounted towards such incentives amounts to 13.05 crore (previous year: Nil).
The Company's exports qualify for various export benefits offered in the form of duty credit scrips under foreign trade policy framed by
Department General of Foreign Trade India (DGFT). Income accounted towards such export incentives and duty drawback amounts to
93.53 crore (previous year: 242.54 crore).
Disclosure pursuant to Ind AS 20 "Accounting for Government Grants and Disclosure of Government Assistance":
The Company will assess the impact of Code on Wages, 2019 and the Code on Social Security, 2020 and give effect in the financial
statements when the date of implementation of these codes and the Rules/Schemes thereunder are notified.
Effect of 1% increase
2021-22
22.66
(40.25)
Subsidiary
crore
Impact of change in healthcare cost
Attrition Rate:
iv)
9.00%
9.00%
6.00%
6.00%
b) Company pension plan
Gratuity plan
a)
5.00%
5.00%
6.47%
a)
7.05%
7.05%
6.47%
7.05%
As at 31-3-2021
As at 31-3-2022
LARSEN & TOUBRO
iii) Salary Growth rate:
Annual increase in healthcare costs (refer note vii infra)
ii)
Post-retirement medical benefit plan
b) Company pension plan
Gratuity plan
6.47%
For gratuity plan the attrition rate varies from 1% to 10% (previous year: 1% to 11%) for various age groups.
b)
For Company pension plan, the attrition rate varies from 0% to 2% (previous year: 0% to 2%) for various age groups.
Particulars
(C) A one percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of post-retirement medical benefit plan:
2020-21
32.31
Effect of 1% decrease
2021-22
30.37
2020-21
(28.02)
Effect of 1% increase
2021-22
(26.45)
crore
Impact of change in discount rate
Particulars
(B) A one percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of Company pension plan:
52.39
53.61
2020-21
(46.18)
2021-22
(47.59)
2020-21
52.08
(45.55)
Effect of 1% decrease
Effect of 1% increase
2021-22
53.61
(46.78)
crore
Impact of change in salary growth rate
Impact of change in discount rate
Particulars
viii) (A) One percentage point change in actuarial assumptions would have the following effects on the defined benefit obligation
of gratuity plan:
vii) The obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits. At
present, healthcare cost, as indicated in the principal actuarial assumption given supra, has been assumed to increase at
5.00% p.a.
vi) The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest
income on long-term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised
immediately in the Statement of Profit and Loss.
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors, such as supply and demand in the employment market.
For post-retirement medical benefit plan, the attrition rate varies from 1% to 11% (previous year: 1% to 11%) for various
age groups.
c)
v)
Impact of change in discount rate
No
4
L&T Power Limited
Yes
14
Larsen Toubro Arabia LLC
15
L&T Hydrocarbon Saudi Company
16
Larsen & Toubro Electromech LLC
17
L&T Hydrocarbon International FZE (3]
18
L&T Geostructure Private Limited
19
No
L&T Geo-L&T JV for Maharatangarh project
WOS
Subsidiary
WOS of L&T Geostructure Private Limited
Yes
ZÁÁÁ
Yes
Yes
No
Yes
No
20
L&T Geo-L&T UJV CMRL CS
Subsidiary
WOS
Subsidiary
Yes
Yes
Yes
WOS
WOS
Yes
Yes
7
L&T Infra Contractors Private Limited [2]
WOS of L&T Capital Company Limited
No
8
Larsen & Toubro International FZE
WOS of L&T Global Holdings Limited
Yes
9
L&T Global Holdings Limited
10
Larsen & Toubro Heavy Engineering LLC
11
L&T Modular Fabrication Yard LLC
12
PT Larsen & Toubro Hydrocarbon Engineering Indonesia
13
Larsen & Toubro Kuwait Construction General Contracting
Company WLL
WOS
Subsidiary
Subsidiary
Subsidiary
WOS
21
L&T Infrastructure Engineering Limited
WOS of L&T Geostructure Private Limited
WOS
No
Yes
30
L&T Seawoods Limited
WOS
Yes
31
L&T Asian Realty Project LLP
WOS of L&T Seawoods Limited
Yes
32
L&T Parel Project Private Limited [6]
WOS of L&T Seawoods Limited
Yes
33
Chennai Vision Developers Private Limited
WOS of L&T Realty Developers Limited
Yes
34
L&T Vision Ventures Limited [7]
Subsidiary of L&T Realty Developers Limited
Yes
L&T Capital Company Limited
6
L&T Aviation Services Private Limited
5
Yes
Subsidiary
WOS
a)
L&T Innovation Campus (Chennai) Limited [5]
Yes
Yes
22
Larsen & Toubro (Oman) LLC
Subsidiary of Larsen & Toubro International FZE
Yes
23
Larsen & Toubro Qatar LLC [4]
24
Larsen & Toubro Saudi Arabia LLC
WOS of Larsen & Toubro International FZE
Subsidiary
No
Yes
25
Larsen & Toubro T&D SA (Proprietary) Limited
Subsidiary of Larsen & Toubro International FZE
No
26
Larsen & Toubro (East Asia) SDN. BHD.
WOS of Larsen & Toubro International FZE
Yes
27
Hi-Tech Rock Products and Aggregates Limited
WOS
Yes
28
L&T Realty Developers Limited
WOS
29
WOS of Larsen & Toubro Infotech Limited
Subsidiary
Discount rate:
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 "Employee Benefits" (contd.)
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
Larsen and Toubro Infotech South Africa (Proprietary) Limited
L&T Information Technology Services (Shanghai) Co., Ltd.
L&T Infotech S. DE R.L. DE C.V.
Nature of relationship
WOS of L&T Finance Holdings Limited
WOS of L&T Financial Consultants Limited
Subsidiary of L&T Finance Limited
Subsidiary
WOS of Larsen & Toubro Infotech Limited
Subsidiary
WOS of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech Limited
Subsidiary of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech Limited
WOS of Larsen & Toubro Infotech GmbH
Transaction entered
during the year
(Yes/No)
NOTE [47]
Yes
No
Yes
No
No
No
No
No
No
No
No
No
No
Yes
Notes forming part of the Financial Statements (contd.)
Syncordis S.A.
62
47
L&T Financial Consultants Limited
48
Mudit Cement Private Limited
49
L&T Infra Investment Partners
50
Larsen & Toubro Infotech Limited
51
Syncordis Software Services India Private Limited [10]
52
Larsen & Toubro LLC
53
Larsen & Toubro Infotech GmbH
54
Larsen & Toubro Infotech Canada Limited
55
Larsen & Toubro Infotech LLC
56
L&T Infotech Financial Services Technologies Inc.
57
58
59
L&T Information Technology Spain SL
60
61
Larsen & Toubro Infotech Norge AS
No
No.
No
Syncordis France SARL
73
Ruletronics Systems Private Limited [10]
74
Lymbyc Solutions Inc.
75
Lymbyc Solutions Private Limited
WOS of Nielsen+Partner Germany
WOS of Larsen & Toubro Infotech GmbH
WOS of Larsen & Toubro Infotech GmbH
WOS of Larsen & Toubro Infotech Limited
WOS of Lymbyc Solutions Private Limited
WOS of Larsen & Toubro Infotech Limited
No
No
No
Ruletronics Systems Inc.
No
No
76
Powerup Cloud Technologies Private Limited
WOS of Larsen & Toubro Infotech Limited
No
77
Larsen & Toubro Infotech UK Limited [11]
WOS of Larsen & Toubro Infotech Limited
Yes
78
LTI Middle East FZ-LLC [12]
79
No
72
Ruletronics Limited
71
WOS of Syncordis S.A.
No
64
Syncordis Limited
WOS of Syncordis S.A.
No
65
Syncordis PSF S.A.
WOS of Syncordis S.A.
No
66
Nielsen+Partners Germany
WOS of Larsen & Toubro Infotech GmbH
No
67 Nielsen+Partners Switzerland
WOS of Nielsen+Partner Germany
No
68
Nielsen+Partners Singapore
WOS of Nielsen+Partner Germany
No
69
Nielsen+Partners Thailand
WOS of Nielsen+Partner Germany
No
70
Nielsen+Partners Australia
63
Name of the Subsidiary Company
Sr
Notes forming part of the Financial Statements
200.03
155.49
155.49
1.02
1.02
2.78
2.78
30.19
30.19
Closing balance of the plan assets
Other (payables)/receivables
Special deposit schemes
200.03
Fixed deposits
17.61
17.61
177.58
99.62
77.96
203.42
150.76
52.66
Mutual funds - Debt
-
Mutual funds Equity
455.15
Mutual funds - Others
0.17
3532.70
(0.00)
355.03
0.17
NOTE [45]
Notes forming part of the Financial Statements (contd.)
Statutory Financial
Reports Statements
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
8.01
7.52
7.69
14.53
14.16
7.38
As at 31-3-2021
As at 31-3-2022
3) Company pension plan
Post-retirement medical benefit plan
2)
1) Gratuity plan
Plans
The average duration of the defined benefit plan obligations at the end of the reporting period is as follows:
f)
3727.52
(0.00)
(0.01)
379.64
3347.88
3887.73
0.01
455.15
395.46
395.46
Debt instruments - PSU bonds
Yes
41
L&T Finance Limited
WOS of L&T Finance Holdings Limited
Yes
42
L&T Investment Management Limited
WOS of L&T Finance Holdings Limited
Yes
43
L&T Mutual Fund Trustee Limited
WOS of L&T Finance Holdings Limited
Yes
44
L&T Infra Credit Limited [9]
WOS of L&T Finance Limited
Yes
45
L&T Infra Investment Partners Advisory Private Limited
WOS of L&T Finance Limited
Yes
46
L&T Infra Investment Partners Trustee Private Limited
WOS of L&T Finance Limited
Yes
445
Integrated Annual Report 2021-22
Subsidiary
Plans
L&T Finance Holdings Limited
No
833.74
833.74
1,054.53
1,054.53
Debt instruments - State government bonds
828.84
828.84
696.10
696.10
35
L&T Westend Project LLP
Subsidiary of L&T Realty Developers Limited
No
36
LTR SSM Private Limited [8]
37
L&T Valves Limited
Subsidiary of L&T Realty Developers Limited
WOS
No
Yes
38
L&T Valves Arabia Manufacturing LLC
WOS of L&T Valves Limited
No
39
L&T Valves USA LLC
WOS of L&T Valves Limited
40
Total
Mr. T. Madhava Das (Whole-time Director) [3]
1,105.53
25.36
28.46 [1]
26.62 [1]
Net liability/(asset) - Non current
299.64
307.04
345.63
352.59
[1] Employer's and employee's contribution due towards Provident Fund
b)
The amounts recognised in Statement of Profit and Loss are as follows:
crore
Gratuity plan
Particulars
Post-retirement
medical benefit plan
Company pension
plan
Trust-managed
provident fund plan
2021-22
2020-21
2021-22 2020-21
2021-22
2020-21
2021-22 2020-21
1
Current service cost
85.93
77.71
13.54
13.25
25.93
2.98
13.30
84.42
Amount to be recognised as liability/(asset)
116.13
84.42
313.02
320.34
371.56
3887.73 3727.53
377.95 (269.14) (309.95)
B) Amounts reflected in the Balance Sheet
Liabilities
116.13
84.42
313.02
320.34
371.56
377.95
28.46
26.62
Assets
Net liability/(asset)
116.13
84.42
313.02
320.34
371.56
377.95
28.46
26.62
Net liability/(asset) - current
116.13
13.38
626.66
4.03
82.90
Actuarial gain/(loss) not recognised in books
I
(66.50)
111.85
8
Amount capitalised out of the above/recovered
from S&A
(0.01)
(0.02)
Total (1 to 8)
53.04
27.47
5.82
28.54
18.40
32.90
88.70
82.90
¡
Amount included in "Employee benefits
expense"
85.92
75.50
13.54
12.79
13.20
4.03
88.70
79.79
!!
7
88.70
10.22
6
2
Interest cost
37.77
38.63
20.23
20.03
23.52
23.62
268.79
268.87
3
Interest income on plan assets
(39.40)
(35.71)
(268.79)
(268.87)
4
Actuarial losses/(gains) - others
(0.69)
(5.00) (27.95)
(4.72)
(18.32)
5.25
5 Actuarial losses/(gains) - difference between
actual return on plan assets and interest income
(30.57)
(48.16)
66.50
(111.85)
Past service cost
659.28
Less: Fair value of plan assets
377.95 3618.59 3417.58
58.82
3.
Provision for doubtful debt and advances
(1325.05)
(1105.37)
(219.67)
(41.67)
4.
Difference in book depreciation and income tax depreciation
282.30
327.06
(44.76)
(140.20)
5.
Gain/(loss) on derivative transactions
7.88
70.59
6.
Deferred tax on capital losses
7.
Other temporary differences
Deferred tax expense/(income)
Net deferred tax (assets)/liabilities
(e) Reconciliation of deferred tax (assets)/liabilities
787.94
21.46
48.89
19.97
(275.92)
64.32
771.12
(50.61)
(1140.30)
(270.63)
Items disallowed u/s 43B of Income Tax Act, 1961
Debt instruments - Central government bonds
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Financial Statements (contd.)
[NOTE 44]
Disclosure pursuant to Ind AS 12 "Income Taxes": (contd.)
(d) Components of deferred tax (assets) and liabilities recognised in the Balance Sheet and Statement of Profit and Loss
crore
Balance Sheet
Statement of Profit and Loss
Sr.
No.
Particulars
As at
31-3-2022
As at
31-3-2021
2021-22
2020-21
1.
Disputed statutory liability claimed on payment basis u/s 43B of the
Income Tax Act, 1961
194.34
175.19
19.15
41.91
2.
(321.23)
(754.27)
Sr.
Particulars
Gratuity Plan
Post-retirement
medical benefit plan
Company pension plan
Particulars
As at
31-3-2022
As at
31-3-2021
As at
31-3-2022
As at
31-3-2021
As at
31-3-2022
Trust-managed
provident fund plan
As at As at
31-3-2021 31-3-2022
As at
31-3-2021
A) Present value of defined benefit obligation
677.74
628.00
3618.59
3417.58
-Wholly unfunded
97.67
83.08
313.02
320.34
371.56
377.95
775.41
711.08
313.02
320.34
371.56
crore
a) The amount recognised in Balance Sheet are as follows:
Defined benefit plans: [Note [1] (k)(ii)(B)]:
ii
No.
1.
Balance as at April 1
2.
Tax (income)/expense during the period recognised in:
(i) Statement of Profit and Loss in Profit or Loss section
(ii) Statement of Profit and Loss under OCI section
3
(iii) Hedge reserve (other than through OCI)
Balance as at March 31
crore
2021-22
2020-21
(754.27)
Amount included as part of "Finance cost"
(1660.12)
771.12
(109.88)
134.37
(0.23)
0.36
(1140.30)
(754.27)
439
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 "Employee Benefits"
Defined contribution plans: [Note [1] (k)(ii)(A)]: Amount of 100.65 crore (previous year: 94.32 crore out of which 5.88 crore pertains
to discontinued operations) is recognised as an expense.
(275.92)
(1.62)
-Wholly funded
20.23
2.90
48.70
48.70
Equity instruments
26.35
26.35
19.98
19.98
Debt instruments - Corporate bonds
215.05
215.05
261.80
0.31
262.10
Debt instruments - Central government bonds
169.90
169.90
186.78
186.78
Debt instruments - State government bonds
145.80
145.80
106.67
106.67
Debt instruments - PSU bonds
19.85
19.85
23.53
23.53
2.90
Mutual funds
Cash and cash equivalents
As at 31-3-2021
Unquoted
Add: Interest income on plan assets[1]
Add/(Less): Actuarial gains/(losses)
Difference between actual return on plan assets and interest income
30.57
Add: Contribution by the employer
1.01
Add/(less): Transfer in/(out)
Add: Contribution by plan participants
48.16 (66.50) 111.85
111.41
81.52 83.53
(0.82) 84.25 70.59
258.11 259.81
Less: Benefits paid
Closing balance of the plan assets
[1] Basis used to determine interest income on plan assets:
(38.36) (121.91) (465.97) (429.90)
659.28 626.66 3887.73 3727.54
The Trust formed by the Company manages the investments of provident funds and gratuity fund. Interest income on plan assets
is determined by multiplying the fair value of the plan assets by the discount rate determined at the start of the annual reporting
period.
The Company expects to fund 17.71 crore (previous year: 0.92 crore) towards its gratuity plan and 100.49 crore (previous year:
81.06 crore) towards its trust-managed provident fund plan during the year 2021-22.
441
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 "Employee Benefits" (contd.)
The fair value of major categories of plan assets are as follows:
442
crore
Gratuity plan
Particulars
Quoted
As at 31-3-2022
Unquoted
Total
Quoted
Total
Opening balance of the fair value of the plan assets
-
24.10
4.69
626.66
crore
Trust-managed provident fund plan
Particulars
As at 31-3-2022
As at 31-3-2021
Quoted
Unquoted
Total
Quoted
Unquoted
9
Cash and cash equivalents
18.59
18.59
34.82
34.82
Equity instruments
146.46
146.46
70.41
70.41
Debt instruments - Corporate bonds
1,187.32
1,187.32
1,081.76
2.93
23.77
621.97
Equity
659.28
601.05
45.83
69.93
23.21
23.41
Mutual funds Debt
Mutual funds Others
3.17
3.17
3.90
3.90
2.90
2.90
Insurer managed funds
Fixed deposits
3.37
3.37
3.44
3.44
Special deposit schemes
1.48
1.48
1.48
1.48
Other (payables)/receivables
0.76
0.75
(78.72)
(78.72)
Closing balance of the plan assets
58.24
35.71 268.79 268.87
46.63
Trust-managed
provident fund plan
As at
As at
31-3-2022 31-3-2021
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Financial Statements (contd.)
NOTE [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 "Employee Benefits" (contd.)
c) The changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof
are as follows:
Particulars
crore
Trust-managed
provident fund plan
As at
31-3-2022
As at
31-3-2021
Gratuity plan
Post-retirement
medical benefit plan
Company pension
plan
As at
31-3-2022
As at
31-3-2021
As at
31-3-2022
As at
31-3-2021
As at
31-3-2022
As at
31-3-2021
Opening balance of the present value of defined
benefit obligation
711.09
766.78
320.34
316.16
377.95
Management
Corporate
Overview
440
202.29
20.03
23.52
626.66 554.11 3727.53 3362.79
39.40
23.62
iii Amount included as part of "Other
comprehensive income"
(31.26)
(53.16)
(27.95)
(4.72)
(18.32)
5.25
iv
Amount included in "Profit from discontinued
Add: Current service cost
operations"
0.44
3.11
Total (i+ii+iii+iv)
53.04
27.47
5.82
28.54
18.40
32.90
88.70
82.90
Actual return on plan assets
69.96
83.87
2.20
85.93
380.73
13.54
(60.53)
31.39 (12.49)
(158.93)
Add: Past service cost
3.69
6.00
8.16
(0.75)
(24.08) (465.97)
(429.91)
Add: Business transfer
Add/(less): Translation adjustments
1.86
(0.70)
(2.50)
Gratuity plan
As at
As at
31-3-2022 31-3-2021
Closing balance of the present value of defined
benefit obligation
775.42
711.09
313.02
320.34
371.56
377.95
(0.00)
(0.00)
3618.59
3417.58
d)
Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:
77.71
Particulars
crore
Less: Benefits paid
iii) experience adjustments
6.86
(29.54)
(16.71)
(5.27) (16.56) (1.62)
(13.13) (24.39) (24.78)
10.22
(0.95)
13.25
2.98
369.13
4.03
3417.58
3178.15
88.70
82.90
Add: Interest cost
37.77
8.36
20.22
20.03
23.52
23.62
268.79
38.63
Add: Contribution by plan participants
i) Employee
ii) Transfer-in/(out)
Add/(less): Actuarial losses/(gains) arising from
225.24
246.99
84.25
70.58
(4.83)
ii) financial assumptions
changes in:
i) demographic assumptions
(0.28)
(31.81)
268.87
1019.20
(266.10)
L&T Metro Rail (Hyderabad) Limited
L&T Geostructure Private Limited
1057.00
Larsen Toubro Arabia LLC
(85.39)
L&T Hydrocarbon Saudi Company
L&T Modular Fabrication Yard LLC
(209.75)
(184.32)
29.50
819.70
(350.96)
Subsidiaries, including:
Amount
viii.
2021-22
2020-21
Hi-Tech Rock Products and Aggregates Limited
Amounts
for major
Amount
parties
Amounts
for major
parties
Net inter corporate deposits and loans given/(repaid by)
2338.47
2338.47
Subsidiary:
198.00
Mindtree Limited
198.00
Total
198.00
2338.47
(267.59)
32.00
122.95
151.59
(114.51)
79.57
(535.21)
83.97
(517.33)
100.75
100.75
32.00
180.32
(503.21)
X.
Subsidiaries, including:
crore
Charges paid for miscellaneous services
L&T MBDA Missile Systems Limited
Nabha Power Limited
Total
L&T Seawoods Limited
L&T Realty Developers Limited
Joint ventures:
L&T Sapura Shipping Private Limited
(353.18)
(158.75)
148.03
151.59
148.03
L&T Special Steels and Heavy Forgings Private Limited
Total
967.73
ix.
Net inter corporate borrowing taken from/(repaid to)
Subsidiaries, including:
Nabha Power Limited
Joint venture:
LARSEN & TOUBRO
15.99
L&T Finance Limited
Total
134.18
2.73
iv.
Sale of property, plant and equipment
Subsidiaries:
L&T Geostructure Private Limited
L&T Hydrocarbon Saudi Company
0.05
6.55
0.02
3.74
2.81
L&T Valves Limited
Key management personnel:
0.05
Mr. Shailendra Roy
L&T-Sargent & Lundy Limited
Joint venture:
1203.36
Larsen & Toubro Infotech Limited
833.31
15.73
14.54
15.73
Mindtree Limited
L&T Construction Equipment Limited
134.13
2.73
12.29
104.84
Larsen & Toubro (Oman) LLC
L&T Technology Services Limited
2.06
0.38
0.05
vii. Sale/redemption of stake in business undertaking
Total
0.03
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
Sr.
Nature of transaction/relationship/major parties
No.
vi. Subscription debentures/bonds net of redemption
Subsidiary:
Total
2272.05
0.05
2.02
2.02
0.61
0.61
7.16
V.
Investments including subscription to equity and preference shares
(equity portion)
Subsidiaries, including:
L&T Finance Holdings Limited
Hi-Tech Rock Products and Aggregates Limited
2272.05
1907.65
300.00
Joint venture:
2.02
L&T - MHI Power Turbine Generators Private Limited
Total
L&T Aviation Services Private Limited
13.16
L&T Technology Services Limited
L&T Electrical and Automation FZE
18.65
L&T Modular Fabrication Yard LLC
Kana Controls General Trading and Contracting Company WLL
Total
18.66
xiii. (b) Charges recovered for deputation of employees to related parties
Subsidiaries, including:
L&T Parel Project Private Limited
L&T Asian Realty Project LLP
L&T Realty Developers Limited
L&T Geostructure Private Limited
L&T Seawoods Limited
Joint ventures, including:
L&T Sapura Shipping Private Limited
L&T Technology Services Limited
L&T Infrastructure Development Projects Limited
8.27
xiii. (a) Charges incurred for deputation of employees from related parties
Subsidiaries, including:
Joint ventures, including:
107.65
101.34
L&T - MHI Power Boilers Private Limited
41.32
31.86
L&T - Sargent & Lundy Limited
10.87
11.57
L&T Chiyoda Limited
23.97
25.39
Total
463.07
429.67
18.66
46.77
L&T Special Steels and Heavy Forgings Private Limited
Total
0.73
1.14
0.76
75.49
2.83
72.34
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
5.49
2.94
L&T- Chiyoda Limited
3.85
5.34
3.58
0.89
1.57
8.27
70.15
64.70
7.77
7.12
11.50
6.79
10.69
11.47
17.34
11.05
7.32
7.64
L&T Finance Limited
68.01
67.85
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
452
crore
2021-22
2020-21
Sr.
Nature of transaction/relationship/major parties
No.
Amount
Amounts
for major
Amount
parties
Integrated Annual Report 2021-22
Amounts
for major
parties
451
182.27
Joint ventures, including:
Total
L&T- Chiyoda Limited
L&T Sargent & Lundy Limited
164.53
152.15
112.19
21.09
111.58
17.95
21.38
17.74
29.90
12.06
4.45
25.17
3.61
182.05
xi.
Rent paid, including lease rentals under leasing/hire purchase
arrangements
Subsidiaries, including:
Magtorq Private Limited
0.08
Total
6.27
2.92
xii. Rent received, overheads recovered and miscellaneous income
Subsidiaries, including:
355.42
328.33
Larsen & Toubro Infotech Limited
105.81
92.08
L&T Technology Services Limited
52.15
53.69
L&T Geostructure Private Limited
0.08
0.06
L&T Special Steels and Heavy Forgings Private Limited
Associate:
0.11
5.96
2.91
L&T Hydrocarbon Saudi Company
5.80
1.84
L&T Electrical & Automation FZE
0.36
Mindtree Limited
Larsen Toubro Arabia LLC
Joint ventures:
0.23
0.01
L&T - MHI Power Turbine Generators Private Limited
0.06
0.01
L&T - MHI Power Boilers Private Limited
0.38
12.73
0.01
40.53
2.43
8.40
2.29
8.56
5.31
11.70
2.91
7.23
2.66
7.05
2.40
7.62
0.92
5.49
13.98
89.75
8.40
36.96
xi.
0.94
17.71
Due to gratuity trusts:
(b)
31.47
40.70
Total
28.65
37.71
Larsen & Toubro Officers & Supervisory Staff Provident Fund
31.47
40.70
Due to provident fund trusts, including:
(a)
Post employment benefit plan
Total
Larsen & Toubro Officers & Supervisors Gratuity Fund
21.40
89.75
X.
No.
Category of balance/relationship/parties
Sr.
458
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
NOTE [47]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
457
134.02
139.39
Total
20.46
Due to directors [1].
36.96
Key management personnel, including:
Mr. R. Shankar Raman
Amounts
for major
parties
crore
As at 31-3-2021
Amount
Amounts
for major
parties
Amount
As at 31-3-2022
Mr. T. Madhava Das
Mr. S.V.Desai
Mr. Subramanian Sarma
Mr. J.D. Patil
Corporate
Overview
Mr. M. V. Satish
Mr. D. K. Sen
Mr. Shailendra N Roy
Mr. S. N. Subrahmanyan
17.34
15.47
2.24
1815.42
2127.79
Total
Magtorq Private Limited
Associates, including:
L&T Chiyoda Limited
-
L&T - MHI Power Turbine Generators Private Limited
L&T - MHI Power Boilers Private Limited
Joint ventures, including:
Larsen & Toubro Electromech LLC
Larsen & Toubro (Oman) LLC
L&T Modular Fabrication Yard LLC
L&T Geostructure LLP
Subsidiaries, including:
1192.92
xii.(b) Revenue commitment given
121.19
149.53
4401.89
3601.57
35.08
51.54
35.45
52.26
327.86
387.72
1643.73
820.89
305.67
2551.02
1421.52
742.44
25.46
187.64
359.19
Larsen & Toubro Gratuity Fund
140.36
Total
xii. (a) Capital commitment given
4.48
12.89
4.48
12.89
Larsen & Toubro Limited Senior Officers' Superannuation Scheme
Total
4.48
12.89
Due to superannuation trust:
(c)
0.94
17.71
Total
0.94
L&T Hydrocarbon Engineering Limited Group Gratuity Scheme
Subsidiaries, including:
5.56
L&T Construction Equipment Limited
5.45
0.02
L&T Special Steels and Heavy Forgings Private Limited
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
L&T - MHI Power Turbine Generators Private Limited
0.08
L&T Sargent & Lundy Limited
-
0.11
3.51
Joint ventures:
Mindtree Limited
0.83
136.98
0.88
140.36
Larsen & Toubro Infotech Limited
L&T - MHI Power Boilers Private Limited
20.46
Management
3010.92
449
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
450
Sr.
Nature of transaction/relationship/major parties
No.
ii. (a) Sale of goods/contract revenue & services
Subsidiaries, including:
Larsen & Toubro Infotech Limited
L&T Realty Developers Limited
Nabha Power Limited
3356.43
Larsen & Toubro (East Asia) SDN. BHD.
Total
27.31
1531.41
1303.43
L&T - MHI Power Boilers Private Limited
697.31
694.76
L&T- Chiyoda Limited
227.63
147.76
L&T - MHI Power Turbine Generators Private Limited
341.21
248.52
Associates, including:
28.34
17.44
Magtorq Private Limited
17.44
Joint ventures, including:
Larsen & Toubro Saudi Arabia LLC
L&T Metro Rail (Hyderabad) Limited
Amounts
for major
parties
parties
1134.35
780.69
484.76
202.45
171.07
128.55
208.61
82.46
96.27
69.01
52.62
47.48
Amount
Nabha Power Limited
Amounts
for major
2020-21
Joint ventures, including:
L&T - MHI Power Boilers Private Limited
L&T- Chiyoda Limited
Total
L&T Special Steels and Heavy Forgings Private Limited
ii. (b) Reversal of sale of goods/contract revenue & services
Subsidiaries, including:
Total
iii.
L&T Parel Project Private Limited
Purchase/lease of property, plant and equipment
Subsidiaries, including:
Larsen & Toubro Infotech Limited
crore
2021-22
Amount
680.46
294.30
L&T Modular Fabrication Yard LLC
Mr. Sanjeev Aga
13
Mr. Hemant Bhargava
15
Mr. Pramit Jhaveri [10]
[1] Ceased w.e.f. July 7, 2020 on account of superannuation
Sr. No
2
Mr. M. M. Chitale
4
Mr. M. Damodaran
6
Mr. Adil Zainulbhai
8
Mr. Thomas Mathew T [6]
11
10
Mr. Ajay Shankar [7]
Ms. Sunita Sharma [5]
Integrated
Discussion and Analysis Report
Statutory Financial
Reports Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
Non-executive/Independent Directors
(i)
Sr. No
1
Mr. A.M. Naik (Group Chairman)
3
Mr. Subodh Bhargava [4]
5
Mr. Vikram Singh Mehta
7
9
Ms. Naina Lal Kidwai [8]
12
Mr. Narayanan Kumar
Amount
Amounts
for major
parties
Amounts
Amount
for major
parties
i.
Purchase of goods & services (including commission paid)
Subsidiaries, including:
1796.68
1690.05
Larsen & Toubro Electromech LLC
603.71
211.42
L&T Geostructure Private Limited
436.27
246.17
No.
Nature of transaction/relationship/major parties
Sr.
2020-21
14
Ms. Preeta Reddy [9]
LARSEN & TOUBRO
[3] Appointed w.e.f. July 11, 2020
[5] Ceased w.e.f. May 3, 2021 on account of withdrawal of
nomination by Life Insurance Corporation of India
[2] Appointed as Whole-time Director w.e.f. August 19, 2020
(Non-executive Director till August 18, 2020)
[4] Ceased w.e.f. March 29, 2022 on account of completion of
term
6.17
[6] Ceased w.e.f. April 2, 2020 on account of completion of term
[9] Appointed w.e.f. March 1, 2021
(c)
Disclosure of related party transactions:
term
[10] Appointed w.e.f. April 1, 2022
crore
2021-22
[7] Ceased w.e.f. May 29, 2020 on account of completion of term [8] Ceased w.e.f. February 28, 2021 on account of completion of
Sr.
0.92
7.51
No.
Joint venture:
Impairment loss on investment in debt securities
iv
3757.26
3140.70
Total
272.65
L&T Infrastructure Development Private Limited
611.72
213.17
213.17
698.81
L&T Special Steels and Heavy Forgings Private Limited
Kudgi Transmission Limited (Secured)
1097.54
911.98
Joint ventures:
213.17
491.14
2168.58
213.17
213.17
Category of balance/relationship/parties
Sr.
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
NOTE [47]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
213.17
213.17
Total
213.17
L&T Special Steels and Heavy Forgings Private Limited
No.
1145.67
1083.05
L&T Metro Rail (Hyderabad) Limited
1775.55
86.06
222.17
150.22
84.76
306.04
117.90
L&T Modular Fabrication Yard LLC
1004.71
751.20
Joint ventures, including:
Larsen and Toubro (Oman) LLC
Larsen & Toubro Saudi Arabia LLC
L&T Geostructure Private Limited
Larsen Toubro Arabia LLC
1772.77
L&T Finance Limited
L&T - MHI Power Turbine Generators Private Limited
863.49
2659.72
2228.72
Subsidiaries:
portion)]
Investment in debt securities [including preference shares (debt
iii.
2534.42
2791.45
8.79
5.18
6.82
13.97
7.67
177.35
576.54
756.64
796.53
Subsidiaries, including:
LARSEN & TOUBRO
As at 31-3-2022
vii.
1735.46
2031.39
Total
1730.38
1730.38
L&T Special Steels and Heavy Forgings Private Limited
1735.46
1736.43
Joint ventures, including:
38.38
39.81
Larsen Toubro Arabia LLC
71.62
75.20
Provision towards constructive obligation
Larsen & Toubro Heavy Engineering LLC
Joint venture:
14.84
83.98
Nabha Power Limited
4.40
4.40
L&T Capital Company Limited
83.98
Subsidiaries:
Unsecured loans (including lease finance)
viii.
14.84
14.84
Total
14.84
14.84
L&T Special Steels and Heavy Forgings Private Limited
14.84
crore
167.70
L&T Hydrocarbon Saudi Company
2312.75
Joint ventures, including:
2481.56
3735.72
L&T Metro Rail (Hyderabad) Limited
3928.87
4980.20
Subsidiaries, including:
Loans & advances recoverable
V.
Amounts
for major
parties
Amount
Amounts
for major
parties
Amount
As at 31-3-2021
2162.92
173.93
L&T Special Steels and Heavy Forgings Private Limited
L&T Sapura Shipping Private Limited
1746.17
277.70
294.96
Subsidiaries, including:
Impairment loss on loans & advances recoverable
vi.
6096.79
7297.18
Total
5.00
4.23
Magtorq Private Limited
5.00
4.23
Associates:
328.43
1781.18
Accounts payables, including other payables
ii.
934.67
(h) Mr. S.V. Desai
(g) Mr. J.D. Patil
1.08
4.24
11.05
2.30
8.75
(f) Mr. M. V. Satish
4.94
1.01
3.93
11.73
2.46
9.27
(e) Mr. D. K. Sen
(i) Mr. T. Madhava Das
w.e.f. August 19, 2020)
Non-executive/Independent Directors:
(b) Mr. Subramanian Sarma (Non-executive
0.72
2.94
12.27
2.55
9.72
0.64
2.83
12.51
2.60
9.91
1.09
4.23
10.93
2.29
8.64
(a) Mr. A.M. Naik
| | | |│
13.89
1.02
11.26
30.99
6.53
24.46
(a) Mr. S.N.Subrahmanyan
Executive Directors:
benefits
Total
Share based
payment
Other Long
term benefit
employment
employee
benefits
benefits
benefits
Total
2.97
8.39
14.23
16.12
4.48
17.36
3.65
13.71
(d) Mr. Subramanian Sarma (Executive Director
22.67
10.2012]
7.64[1]
4.83
(c) Mr. Shailendra Roy
9.48
1.98
7.50
20.42
4.30
(b) Mr. R. Shankar Raman
5.32
5.32
3.47
736.30
800.87
1323.21
Amounts
for major
parties
Amount
Amounts
for major
parties
Amount
As at 31-3-2021
As at 31-3-2022
crore
L&T Geostructure LLP
L&T Metro Rail (Hyderabad) Limited
Subsidiaries, including:
Accounts receivable
i.
610.48
No.
220.33
133.80
50.00
1415.04
Total
L&T Deccan Tollways Limited
L&T - MHI Power Turbine Generators Private Limited
L&T - MHI Power Boilers Private Limited
Joint ventures, including:
Total
L&T Camp Facilities LLC
Magtorq Private Limited
Associates, including:
L&T Infrastructure Development Projects Limited
L&T - MHI Power Boilers Private Limited
75.49
57.43
13.36
91.83
Category of balance/relationship/parties
Sr.
456
5.25
4.81
4.81
(c) Other Non-executive/Independent Directors
Director till August 18, 2020)
4.36
1.26
3.10
6.21
3.00 [3]
3.21
6.32
3.00 [3]
3.32
3.66
5.25
Total
108.71
29.68
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
(d) Amount due to/from related parties:
NOTE [47]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
455
Represents pension
Joint venture:
[3]
[1] Post retirement benefits include gratuity * 6.60 crore
98.80
8.39
10.20
22.41
57.80
138.39
[2] Represents encashment of past service accumulated leave
Nature of transaction/relationship/major parties
193.74
L&T MBDA Missile Systems Limited
6.81
2.81
L&T - MHI Power Turbine Generators Private Limited
2.29
10.83
Total
52.46
45.05
xviii. Interest received from
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
L&T Finance Limited
Joint ventures, including:
L&T Sapura Shipping Private Limited
468.10
L&T MBDA Missile Systems Limited
294.35
13.64
Joint ventures:
xvii. Interest paid to
Subsidiaries, including:
43.36
31.41
L&T Seawoods Limited
11.50
13.47
Nabha Power Limited
8.68
11.78
L&T Power Development Limited
5.58
L&T Realty Developers Limited
15.57
4.79
9.10
21.87
317.56
128.45
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
454
crore
Sr.
Nature of transaction/relationship/major parties
No.
2021-22
2020-21
Amount
Amounts
for major
parties
Amount
Amounts
for major
parties
xix.
Amount recognised/(reversed) in Profit or Loss as provision towards bad
and doubtful debts (including expected credit loss on account of delay)
Notes forming part of the Financial Statements (contd.)
132.95
Notes forming part of the Financial Statements
453
113.69
65.12
206.60
9.76
L&T Special Steels and Heavy Forgings Private Limited
Kudgi Transmission Limited
L&T Infrastructure Development Projects Limited
Total
134.52
45.52
45.93
9.84
21.44
533.22
500.95
Integrated Annual Report 2021-22
Subsidiaries, including:
50.23
0.47
1458.49
844.68
649.00
396.34
269.11
164.01
95.60
199.87
276.45
175.92
156.83
174.38
119.39
119.39
40.50
parties
1019.06
parties
Amount
χίν.
Dividend received
Subsidiaries, including:
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
Larsen & Toubro Electromech LLC
L&T Realty Developers Limited
Mindtree Limited
Joint ventures, including:
LARSEN & TOUBRO
crore
2021-22
2020-21
Amount
Amounts
for major
Amounts
for major
Total
L&T - MHI Power Boilers Private Limited
Total
21.40
13.40
12.86
17.84
7.91
Larsen & Toubro Saudi Arabia LLC
2.48
Larsen Toubro Arabia LLC
6.77
2.87
Joint venture:
0.64
0.47
L&T - MHI Power Turbine Generators Private Limited
0.64
49.59
L&T- Chiyoda Limited
7.77
7.77
1615.32
XV.
Commission received, including those under agency arrangements
Subsidiary:
L&T Construction Equipment Limited
Total
xvi.
Guarantee charges recovered from
Subsidiaries, including:
Nabha Power Limited
L&T Hydrocarbon Saudi Company
L&T Metro Rail (Hyderabad) Limited
8.17
7.77
8.17
8.17
57.46
5.05
Larsen Toubro Arabia LLC
Amount
Amounts
for major
Amount
parties
Amounts
for major
parties
(b) Towards employer's contribution to gratuity fund trusts, including:
L&T Hydrocarbon Engineering Limited Group Gratuity Scheme
Larsen & Toubro Gratuity Fund
0.92
114.32
0.92
86.47
16.54
Total
(c)
Towards employer's contribution to superannuation trust:
114.32
6.81
No.
Larsen & Toubro Limited Senior Officers' Superannuation Scheme
Nature of transaction/relationship/major parties
2020-21
Total
71.88
110.85
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
LARSEN & TOUBRO
crore
2021-22
Sr.
100.44
7.51
Total
24.84
L&T Realty Developers Limited
47.51
29.84
Nabha Power Limited
113.56
122.05
Subsidiaries, including:
Advances received in the capacity of supplier of goods/services classified
as "Advances from customers" in the Balance Sheet
ix.
95.31
277.72
Total
90.91
193.74
56.64
6.81
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
7.51
6.81
"Major parties" denote entities accounting for 10% or more of the aggregate for that category of transaction during respective year.
xxiv. Compensation paid to key management personnel:
crore
2021-22
2020-21
Key Management Personnel
Short-term
employee
Post-
Short-term
Post-
employment
17.34
Joint venture:
32.15
33.88
62.47
Larsen & Toubro Officers & Supervisory Staff Provident Fund
110.85
L&T Sapura Offshore Private Limited
0.18
L&T - MHI Power Boilers Private Limited
(1.46)
0.39
Total
57.15
5.36
XX.
Amount recognised in Profit or Loss on account of impairment loss on
investment and inter corporate deposit
Subsidiaries:
0.90
1692.71
Larsen & Toubro Heavy Engineering LLC
0.90
0.85
L&T Power Development Limited
Raykal Aluminium Company Private Limited
L&T - MHI Power Turbine Generators Private Limited
L&T Hydrocarbon Saudi Company
L&T Metro Rail (Hyderabad) Limited
27.95
11.03
11.24
L&T Seawoods Limited
Larsen & Toubro Heavy Engineering LLC
Joint ventures, including:
L&T Special Steels and Heavy Forgings Private Limited
(0.31)
6.12
0.67
(0.80)
0.31
(0.09)
0.11
L&T Uttaranchal Hydropower Limited
Joint venture:
L&T Special Steels and Heavy Forgings Private Limited
L&T Hydrocarbon Saudi Company
Nabha Power Limited
xxiii. Contribution to post-employment benefit plans
14.84
14.84
14.84
30778.64
2192.99
8486.70
12227.39
8616.00
30778.64
518.44
274.55
1400.00
2192.99
(a) Towards employer's contribution to provident fund trusts, including:
71.88
Mindtree Limited
L&T Metro Rail (Hyderabad) Limited
L&T Hydrocarbon Saudi Company
Larsen Toubro Arabia LLC
Total
829.00
586.00
1467.38
1467.38
0.90
3160.09
90.91
xxi.
L&T Special Steels and Heavy Forgings Private Limited
Joint venture:
Total
Xxii.
Guarantee given on behalf of
Subsidiaries, including:
Total
Amount recognised in Profit and Loss on account of provision towards
constructive obligation
[1] Includes commission due to non-executive directors 3.81 cr crore (previous year: 4.15 crore).
15.97
67980.02
Due to others
50.00
India
L&T-Sargent & Lundy Limited
19
50.00
50.00
50.00
50.00
50.00
India
18
60.00
60.00
60.00
60.00
India
L&T Sapura Offshore Private Limited
17
L&T Chiyoda Limited
60.00
50.00
[1] Proportion of direct ownership is less than 0.01%.
7879.45
A
Profit after tax from continuing operations as per accounts (crore)
Basic earnings per share
2020-21
2021-22
LARSEN & TOUBRO
Basic and diluted Earnings per Share [EPS] computed in accordance with Ind AS 33 "Earnings per Share":
Particulars
50.00
NOTE [49]
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
462
[2] The company ceased to be a joint venture w.e.f. October 21, 2021
Notes forming part of the Financial Statements (contd.)
60.00
60.00
60.00
PNG Tollway Limited
13
74.00
74.00
74.00
74.00
India
L&T Special Steels and Heavy Forgings Private Limited
India
12
75.50
75.50
75.50
India
Raykal Aluminium Company Private Limited
11
51.00
51.00
75.50
[1]
37.74
[1]
India
L&T Sapura Shipping Private Limited
16
Azerbaijan
50.00
50.00
50.00
50.00
Baku,
L&T Hydrocarbon Caspian LLC
15
51.00
51.00
51.00
51.00
India
L&T MBDA Missile Systems Limited
14
37.74
3147.31
51.00
Profit after tax from discontinued operations as per accounts ( crore)
8650.48
Expected tax
liability in
respect of
indirect taxes
Product
warranties
Particulars
Sr.
No.
Class of provisions
crore
Movement in provisions:
a)
Litigation
related
obligations
Disclosures pursuant to Ind AS 37 "Provisions, Contingent Liabilities and Contingent Assets"
Face value per share (*)
2
2
83.93
56.03
C/F
Diluted EPS from continuing discontinued operations()
61.54
NOTE [50]
B/F
Contractual
rectification
Others
422.51
370.20
0.67
36.43
15.21
Additional provision during the year
2
919.70
cost-
54.90
73.45
338.81
5.97
Balance as at April 1, 2021
1
contracts
construction
Total
446.57
Diluted EPS from discontinued operations(*)
22.39
56.03
84.02
56.09
C/D
Basic EPS from continuing discontinued operations(*)
61.61
B/D
Basic EPS from discontinued operations(*)
22.41
Diluted earnings per share
56.09
Basic EPS from continuing operations(*)
1,40,41,46,937
11797.79
7879.45
1,40,47,47,700
D
Weighted average number of equity shares outstanding
C=A+B
Profit after tax from continuing and discontinued operations as per accounts ( crore)
A/D
Profit after tax from continuing operations as per accounts (crore)
A
7879.45
A/F
1,40,55,67,202
14,20,264
15,40,580
1,40,62,88,280
F=D+E
Weighted average number of equity shares outstanding for diluted EPS
Diluted EPS from continuing operations(*)
1,40,41,46,937
1,40,47,47,700
D
D E
Add: Weighted average number of potential equity shares on account of employee
stock options
11797.79
7879.45
C=A+B
Profit after tax from continuing and discontinued operations as per accounts (crore)
Weighted average number of equity shares outstanding
8650.48
B
Profit after tax from discontinued operations as per accounts (crore)
3147.31
B
3
51.00
L&T-MHI Power Turbine Generators Private Limited
Proportion
Proportion
Proportion
of effective
voting power
Proportion
of effective
ownership
ownership
(%)
Interest (%)
of direct
Proportion
Proportion
Principal
place of
business
No.
Sr.
Name of associate
As at 31-3-2021
As at 31-3-2022
Associate Companies :
of direct
[1] Liquidated on August 17, 2021
of effective
ownership
42.85
India
Magtorq Private Limited
2
50.00
50.00
50.00
50.00
of effective
50.00
India
Gujarat Leather Industries Limited [1]
1
held (%)
Interest (%)
(%)
held (%)
ownership voting power
50.00
100.00
70.00
70.00
70.00
70.00
100.00
70.00
70.00
Oman
Sultanate of
L&T Electromech LLC
100.00
7
70.00
70.00
100.00
70.00
70.00
Oman
Sultanate of
L&T Modular Fabrication Yard LLC
100.00
8
L&T Hydrocarbon International FZE [1]
UAE
100.00
70.00
70.00
Oman
Sultanate of
L&T Heavy Engineering LLC
10
100.00
49.00
49.00
100.00
49.00
49.00
Kuwait
L&T Kuwait Construction General Contracting
Company WLL
9
100.00
100.00
100.00
42.85
India
42.85
42.85
51.00
[1]
51.00
[1]
India
6
63.86
26.24
7
63.86
India
L&T Transportation Infrastructure Limited
5
51.00
51.00
51.00
51.00
India
26.24
L&T Infrastructure Development Projects Limited
L&T Halol-Shamlaji Tollway Limited [2]
[1]
10
51.00
51.00
51.00
51.00
India
L&T-MHI Power Boilers Private Limited
9
India
50.10
50.10
50.10
India
L&T Howden Private Limited
8
24.98
[1]
24.98
50.10
4
51.01
0.02
Proportion
As at 31-3-2021
Proportion
of effective
ownership
Interest (%)
As at 31-3-2022
Proportion
of direct
ownership
(%)
Principal
place of
business
No.
Name of the joint venture
of direct
Sr.
Disclosure pursuant to Ind AS 27 "Separate Financial Statements" (contd.)
NOTE [48]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
461
[1] Under liquidation
42.85
Joint Ventures:
ownership
(%)
Proportion
of effective
ownership
Interest (%)
51.01
0.02
India
L&T Samakhiali Gandhidham Tollway Limited
3
51.00
[1]
51.00
[1]
India
L&T Rajkot-Vadinar Tollway Limited
2
51.00
[1]
51.00
[1]
India
L&T Chennai-Tada Tollway Limited
1
42.85
6
Provision used during the year
(11.74)
Investment in equity instruments
(i)
Measured at fair value through Profit or Loss (FVTPL):
I.
As at
31-3-2021
As at
31-3-2022
Note
crore
(ii) Investment in mutual funds
No.
Sr.
(a) Category-wise classification for applicable financial assets:
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures":
NOTE [53]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
467
Particulars
The table given in the Risk Management section of Management Discussion and Analysis lists out the commodity exposure for the year
(only for projects that been awarded and are under execution).
5
10
12973.90
7405.60
Sub-total (I)
33.68
24.48
7,15
Embedded derivatives not designated as cash flow hedges
(v)
74.40
99.47
7,15
(iv) Derivative instruments not designated as cash flow hedges
982.97
1277.67
10
(iii) Investment in bonds
70.22
11787.56
5961.14
67.91
The Company bids for and executes EPC projects on turnkey basis. EPC projects entail procurement of various equipment and materials
which may have direct or indirect linkages to commodity prices like steel (both long and flat steel), copper, aluminum, zinc, lead, nickel,
cement etc. Accordingly, the Company is exposed to the price risk on these commodities. To mitigate the risk of commodity prices, the
company relies on contractual provisions like pass through of prices, price variation provisions etc., and further uses hedging instruments
where available (refer Note 53 (h)(ii)). There is certain residual risk carried by the company that cannot be hedged against.
3006.54
(ii) Trade receivable written off during the year but still enforceable for recovery amounts to Nil (previous year: Nil)
(d) Commodity price risk management:
LARSEN & TOUBRO
Statutory Financial
Reports Statements
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
(2.19)
2.19
59.32
(59.32)
4.52
(4.52)
Notes forming part of the Financial Statements (contd.)
crore
Increase/(decrease) in investment value
As at 31-3-2022 As at 31-3-2021
76.39
(76.39)
Debt funds and debt securities - increase by 0.50% in fair market value
Particulars
The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through
adequate committed credit lines. Given the need to fund diverse businesses, the Company maintains flexibility by need based drawing
from committed credit lines. Management regularly monitors the position of cash and cash equivalents. The maturity profiles of financial
assets and financial liabilities including debt financing plans and liquidity ratios are considered while reviewing the liquidity position.
The Company's investment policy and strategy are focused on preservation of capital and supporting the Company's liquidity
requirements. The Company uses a combination of internal and external management to execute its investment strategy and achieve its
investment objectives. The Company typically invests in money market funds, large debt funds, Government of India securities, equity
funds and other highly-rated securities under a exposure limit framework. The investment policy focuses on minimising the potential risk
of principal loss. To provide a meaningful assessment of the price risk associated with the Company's investment portfolio, the Company
performed a sensitivity analysis to determine the impact of change in prices of the securities on the value of the investment portfolio
assuming a 0.5% movement in the fair market value of debt funds and debt securities and a 5% movement in the NAV of the equity
funds as below:
18.78
(18.78)
(12.70)
12.70
(18.78)
18.78
(12.70)
12.70
Debt funds and debt securities - decrease by 0.50% in fair market value
Equity funds- increase by 5% in NAV
Equity funds- decrease by 5% in NAV
NOTE [52]
Disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": Market risk management (contd.)
(c) Credit Risk Management:
The Company's customer profile include public sector enterprises, state owned companies and large private corporates. Accordingly,
the Company's customer credit risk is low. The Company's average project execution cycle is around 24 to 36 months. General payment
terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention
money to be released at the end of the project. In some cases, retentions are substituted with bank/corporate guarantees. The Company
has a detailed review mechanism of overdue customer receivables at various levels within the organisation to ensure proper attention
and focus for realisation.
3481.74
(121.66) (367.60)
205.58
185.62
297.07
411.24
2871.49
2020-21
2021-22
3006.54
crore
Balance as at March 31 [refer Note 11]
Write off as bad debts
Additional provision (net) towards credit impaired receivables
Provision/(reversal) of allowance for ECL
Changes in loss allowance for ECL:
Balance as at April 1
Particulars
The Company is making provisions on trade receivables based on Expected Credit Loss (ECL) model. The reconciliation of ECL is as
follows:
(i)
II.
1.01
Measured at amortised cost:
(ii)
20298.29
19,23,24
Borrowings
Measured at amortised cost:
II.
27.54
62.90
Sub-total (I)
24474.19
11.73
20,26
Embedded derivatives not designated as cash flow hedges
(ii)
15.81
36.03
20,26
Derivative instruments not designated as cash flow hedges
(i)
26.86
Measured at fair value through Profit or Loss (FVTPL):
(ii) Trade payables
(iii) Others
116.20
69324.93
20,26
57.49
394.04
336.54
326.24
70.60
396.84
20,26
20,26
2298.50
67542.47
448.30
40321.48
Due to micro enterprises and small enterprises
473.67
44911.67
3065.36
68748.99
Total (I+II+II+IV)
Financial guarantee contracts
(ii) Embedded derivatives designated as cash flow hedges
Sub-total (III)
IV.
Derivative instruments designated as cash flow hedges
(i)
III. Derivative instruments (including embedded derivatives) through other
comprehensive income:
Sub-total (II)
25
I.
crore
As at
31-3-2021
744.87
611.58
15
33331.60
36347.35
11
299.98
2418.70
7,12,13
10
4334.18
6,14
Sub-total (II)
(vi) Other receivables
(v) Cash and cash equivalents and bank balances
(iv) Advances recoverable in cash
(iii) Trade receivables
Investment in CBLO and Commercial Paper
3111.39
6593.16
4462.28
1416.57
51721.54
As at
31-3-2022
Note
No.
Particulars
Sr.
468
(b) Category-wise classification for applicable financial liabilities:
Total (1+11+111)
19.13
9786.90
65967.47
26.40
9311.76
68438.90
605.33
9162.44
8820.71
464.65
7,15
7,15
(ii) Derivative financial instruments designated as cash flow hedges
(iii) Embedded Derivatives designated as cash flow hedges
Sub-total (III)
10
III. Measured at fair value through Other Comprehensive Income (FVTOCI):
(i) Investment in government securities, bonds and debentures
43206.67
1256.55
Loans
(2.64)
(1.01)
1.01
(a) tangible assets
30.87
2020-21
2021-22
crore
Capital Expenditure on:
(ii)
Recognised as expense in the Statement of Profit and Loss
(b) intangible assets being expenditure on new product development
Particulars
Of the above, expenditure on research and development activities of discontinued operations is as follows:
0.58
0.52
(c) other intangible assets
9.39
1.24
3.74
(b) intangible assets being expenditure on new product development
Sr.
No.
(a) tangible assets
NOTE [52]
0.49
Particulars
crore
As at 31-3-2022
Disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": Market risk management (contd.)
The net exposure to foreign currency risk (based on notional amount) in respect of recognised financial assets, recognised financial
liabilities and derivatives for major categories is as follows:
NOTE [52]
Notes forming part of the Financial Statements (contd.)
LARSEN & TOUBRO
Statutory Financial
Reports Statements
Disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": Market risk management
(a) Foreign exchange rate and interest rate risk:
Integrated
Discussion and Analysis Report
Corporate
Overview
464
The Company may enter into foreign currency forward and option contracts with financial institutions to protect against foreign
exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future cash
flows and net investments in foreign subsidiaries. In addition, the Company has entered, and may enter in future, into non-
designated foreign currency contracts to partially offset the foreign currency exchange gains and losses on its foreign-denominated
debt issuances. The Company's practice is to hedge a portion of its material net foreign exchange exposures with tenors in line with
the project/business life cycle. The Company may also choose not to hedge certain foreign exchange exposures.
The Company has both receivable and payable exposures in foreign currency. Accordingly, changes in exchange rates may affect
the Company's revenues, cost and profitability. There is a risk that the Company may also have to adjust the pricing due to
competitive pressures when there has been significant volatility in foreign currency exchange rates.
Foreign exchange rate risk:
(i)
The Company regularly reviews its foreign currency and interest rate related exposures - both hedged and open exposures. The
Company primarily follows cash flow hedge accounting for Highly Probable Forecasted Exposures (HPFE), hence, the movement in mark
to market (MTM) of the hedge contracts undertaken for such exposures is likely to be offset by contra movements in the underlying
exposures values. However, till the point of time that the HPFE becomes an on-balance sheet exposure, the changes in MTM of the
hedge contracts will impact the Balance Sheet of the Company. Further, given the effective horizons of the Company's risk management
activities which coincide with the durations of the projects under execution, which could extend across 3-4 years and given the business
uncertainties associated with the timing and estimation of the project exposures, the recognition of the gains and losses related to these
instruments may not always coincide with the timing of gains and losses related to the underlying economic exposures and, therefore,
may affect the Company's financial condition and operating results. The Company monitors the potential risk arising out of the market
factors like exchange rates, interest rates, price of traded investment products etc. on a regular basis. For on-balance Sheet exposures,
the Company monitors the risks on net unhedged exposures.
9.39
Management
122.33
83.73
2020-21
i.
Nature of provisions:
b)
1109.12
54.90
604.26
74.04
358.75
ii.
17.17
(169.28)
(63.81)
(49.43)
(163.08)
(0.08)
(4.75)
(1.37)
Provision reversed during the year
4
5 Balance as at March 31, 2022 (5=1+2+3+4)
iii.
iv.
Product warranties: The Company gives warranties on certain products and services, undertaking to repair or replace the items
that fail to perform satisfactorily during the warranty period. Provision made as at March 31, 2022 represents the amount of the
expected cost of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be within a period
of 1 to 3 years from the date of Balance Sheet.
2021-22
crore
Capital Expenditure on:
(ii)
Recognised as expense in the Statement of Profit and Loss
(i)
No.
Particulars
Sr.
The expenditure on research and development activities is as follows:
NOTE [51]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
463
Disclosure in respect of contingent liabilities is given as part of Note 29 to the Balance Sheet.
V. Other provisions mainly includes onerous contracts.
Provision for litigation related obligations represents liabilities that are expected to materialise in respect of matters in appeal.
Contractual rectification cost represents the estimated cost the Company is likely to incur during defect liability period as per the
contract obligations in respect of completed construction contracts accounted under Ind AS 115 "Revenue from Contracts with
customers".
Expected tax liability in respect of indirect taxes represents mainly the differential sales tax liability on account of non-collection of
declaration forms.
US Dollars
including
pegged
currencies
(0.48)
0.48
EURO Japanese Yen
Algerian
In the cases mentioned above, the lenders and the Company are likely to agree on a neutral spread adjustment which does not
impact the counterparties financially.
The Company's Treasury team constantly tracks the developments related to this proposed transition and has also had interactions
with the counterparty lenders to prepare for the transition.
With the transition of LIBOR into another benchmark (SOFR), there will be a spread adjustment that will have to be applied to these
loans. The loans are expected to be either refinanced and linked to a new benchmark or simply transitioned to the new benchmark
before LIBOR ceases to be published.
The Company has insignificant portion of the loan book which has a flowing rate linked to one month USD LIBOR.
Disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": Market risk management (contd.)
NOTE [52]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
The exposure of the Company's borrowing to interest rate changes at the end of the reporting period are as follows:
Integrated Annual Report 2021-22
The Company's exposure to changes in interest rates relates primarily to the Company's outstanding floating rate debt. While
most of the Company's outstanding debt in local currency is on fixed rate basis and hence not subject to interest rate risk, a major
portion of foreign currency debt is linked to international interest rate benchmarks like LIBOR. The Company also hedges a portion
of these risks by way of derivatives instruments like Interest rate swaps and currency swaps.
(ii) Interest rate risk:
Actual future gains and losses associated with the Company's investment portfolio and derivative positions may differ materially
from the sensitivity analysis performed as at March 31, 2022 due to the inherent limitations associated with predicting the timing
and amount of changes in foreign currency exchanges rates and the Company's actual exposures and position.
To provide a meaningful assessment of the foreign currency risk associated with the Company's foreign currency derivative positions
against off-balance sheet exposures and unhedged portion of on-balance sheet financial assets and liabilities, the Company uses
a multi-currency correlated value-at-risk ("VAR") model. The VAR model uses a Monte Carlo simulation to generate thousands of
random market price paths for foreign currencies against Indian rupee taking into account the correlations between them. The
VAR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval.
The VAR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market
conditions and is a historical best fit model. Because the Company uses foreign currency instruments for hedging purposes, the
loss in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures for
on-balance sheet exposures. The overnight VAR for the Company at 95% confidence level is 69.70 crore as at March 31, 2022
and 61.09 crore as at March 31, 2021.
(21.02)
(14.43)
164.57
2337.79
465
Receivable/(payable) exposure with respect to forward
contracts and embedded derivatives not designated as cash
flow hedge
Particulars
crore
(1.01)
(0.48)
0.48
As at 31-3-2021
As at 31-3-2022
2020-21
2021-22
Impact on Equity
Impact on Profit and Loss after tax
Floating rate borrowings
Interest rates-increase by 0.5% in USD interest rate
Interest rates -decrease by 0.5% in USD interest rate
Liquidity Risk Management:
Indian Rupee
Particulars
crore
A hypothetical 50 basis point shift in respective currency LIBORS and other benchmarks, holding all other variables constant, on the
unhedged loans would result in a corresponding increase/decrease in interest cost for the Company on a yearly basis as follows:
466
(b)
As at 31-3-2021
5287.49
As at 31-3-2022
3524.53
Interest rates -increase by 0.5% in INR interest rate
Interest rates -decrease by 0.5% in INR interest rate
US Dollar
404.79
1031.00
(4931.25)
3294.27
Receivable/(payable) exposure with respect to forward
contracts and embedded derivatives not designated as cash
flow hedge
696.42
473.12
(2308.25)
7710.74
commitments and highly probable transactions
Derivatives including embedded derivatives for hedging
receivable/ (payable) exposure with respect to firm
32.10
(56.08)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to non-financial
assets/(liabilities)
(358.10)
103.40
(221.42)
(166.91)
(2949.42)
Net exposure to foreign currency risk in respect of recognised
financial assets/(recognised financial liabilities)
Dinar
86.57
(23.99)
(38.45)
crore
6324.70
commitments and highly probable transactions
Derivatives including embedded derivatives for hedging
receivable/ (payable) exposure with respect to firm
65.82
291.65
(97.62)
(37.84)
(554.10)
55.90
(1216.76)
Net exposure to foreign currency risk in respect of recognised
financial assets/(recognised financial liabilities)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to non-financial
assets/(liabilities)
currencies
Algerian
Dinar
Dinars
EURO Japanese Yen
Kuwaiti
US Dollars
including
pegged
Particulars
As at 31-3-2021
Kuwaiti
Dinars
100.00
Ahmedabad Maliya Tollway Limited
100.00
Disclosure pursuant to Ind AS 27 "Separate Financial Statements"
Investment in following subsidiaries, associates and joint ventures is accounted at cost.
Subsidiaries:
Sr.
Name of the subsidiary
Principal
place of
business
No.
Proportion
of direct
ownership
(%)
Interest (%)
As at 31-3-2022
Proportion
of effective
ownership
Proportion
of effective
voting power
held (%)
Proportion
As at 31-3-2021
Proportion
of effective
ownership
of direct
ownership
(%)
Interest (%)
Proportion
NOTE [48]
of effective
voting power
held (%)
Notes forming part of the Financial Statements (contd.)
Integrated Annual Report 2021-22
27.95
11.03
22.02
23.30
21.82
23.28
19.29
2.04
14.51
2.00
92.73
42.59
"Major parties" denote entities account for 10% or more of the aggregate for that category of transaction during respective year.
[2] The Company has provided a revolving line of credit facility of 1800 crore to L&T Finance Limited as a stand-by liquidity support arrangement
(the "Facility"), renewable on a yearly basis. This Facility is in addition to the working capital lines that L&T Finance Limited has with its
consortium of lending banks. The Facility shall be exercised by L&T Finance Limited only after exhausting all external bank funding lines. The
utilisation against the Facility is NIL as at 31st March 2022.
Note:
1.
All the related party contracts / arrangements have been entered on arms' length basis.
2.
The amount of outstanding balances as shown above are unsecured and will be settled/recovered in cash.
3.
The interest rate charged on loans given to related parties are as per market rates.
459
Notes forming part of the Financial Statements
25.75
Indian subsidiaries
Bhilai Power Supply Company Limited
4
L&T Seawoods Limited
India
100.00
100.00
100.00
100.00
100.00
100.00
5
Kesun Iron & Steel Company Private Limited [2] India
95.00
95.00
95.00
95.00
95.00
95.00
6
L&T Geostructure Private Limited [3]
India
99.00
100.00
1
100.00
100.00
India
99.90
99.90
99.90
99.90
99.90
99.90
2
L&T Innovation Campus Limited [1]
India
100.00
100.00
100.00
100.00
100.00
100.00
3
Hi-Tech Rock Products & Aggregates Limited
India
100.00
100.00
100.00
70.71
Total
L&T - MHI Power Boilers Private Limited
14.00
Nabha Power Limited
477.57
L&T Uttaranchal Hydropower Limited
14.00
Total
477.57
14.00
xiv.
Revenue commitment received
Subsidiaries, including:
1486.57
2143.92
L&T Metro Rail (Hyderabad) Limited
398.04
457.82
Larsen & Toubro Infotech Limited
213.60
677.92
Nabha Power Limited
317.52
477.57
488.57
Subsidiary:
xiii.
100.00
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures" (contd.)
LARSEN & TOUBRO
Sr.
Category of balance/relationship/parties
No.
crore
As at 31-3-2022
As at 31-3-2021
Amount
Amounts
for major
parties
Amount
Amounts
for major
parties
Commitment to Fund [2]
L&T Realty Developers Limited
352.88
Larsen & Toubro (East Asia) SDN. BHD.
4115.57
4216.00
4716.00
8616.00
300.23
363.85
L&T - MHI Power Turbine Generators Private Limited
255.12
312.67
Total
42727.93
19434.42
xvi.
Provision for doubtful debts related to the amount of outstanding
balances
Subsidiaries, including:
Nabha Power Limited
L&T Metro Rail (Hyderabad) Limited
L&T Seawoods Limited
Larsen Toubro Arabia LLC
Joint ventures, including:
L&T Hydrocarbon Saudi Company
8652.89
7128.36
19573.00
19070.57
180.20
Joint ventures, including:
125.16
187.73
L&T - MHI Power Boilers Private Limited
107.24
158.78
L&T MBDA Missile Systems Limited
17.53
20.00
100.00
1611.73
XV.
Total
Guarantee given on behalf of
Subsidiaries, including:
L&T Hydrocarbon Saudi Company
Larsen Toubro Arabia LLC
Nabha Power Limited
L&T Metro Rail (Hyderabad) Limited
Joint ventures, including:
42427.70
2331.65
100.00
221.70
100.00
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [48]
Disclosure pursuant to Ind AS 27 "Separate Financial Statements" (contd.)
Foreign Subsidiaries:
LARSEN & TOUBRO
Sr.
Name of the subsidiary
Principal
place of
business
No.
Proportion
of direct
ownership
(%)
As at 31-3-2022
Proportion
of effective
ownership
Interest (%)
Proportion
1
Larsen & Toubro LLC
Corporate
Overview
USA
460
[5] Formerly known as L&T Construction Machinery Limited.
18
L&T Realty Developers Limited [6]
India
100.00
100.00
100.00
100.00
100.00
100.00
19
Mindtree Limited
India
60.99
60.99
60.99
61.03
61.03
61.03
[1] Formerly known as L&T Electricals and Automation Limited.
[2] In process of being struck off from the register of companies.
[3] Became subsidiary on November 25, 2020.
[4] One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders' Agreement.
[6] Formerly known as L&T Construction Equipment Limited.
95.24
98.76
Proportion
100.00
100.00
100.00
4
Larsen & Toubro Arabia LLC
Kindgom of
Saudi Arabia
75.00
75.00
100.00
75.00
75.00
100.00
5
L&T Hydrocarbon Saudi Company LLC
Kindgom of
Saudi Arabia
100.00
100.00
99.00
100.00
100.00
100.00
100.00
UAE
As at 31-3-2021
Proportion
of effective
ownership
of effective
voting power
held (%)
of direct
ownership
(%)
Interest (%)
98.76
95.24
98.77
Proportion
of effective
voting power
held (%)
100.00
98.77
Larsen & Toubro (Saudi Arabia) LLC
Kindgom of
Saudi Arabia
4.35
100.00
100.00
4.35
100.00
100.00
L&T Global Holdings Limited
2
100.00
3
100.00
100.00
100.00
10
Larsen & Toubro Infotech Limited
India
74.05
74.05
74.05
74.27
74.27
74.27
11
L&T Finance Holdings Limited
India
66.26
66.26
66.26
63.62
63.62
63.62
12
100.00
100.00
100.00
100.00
7
100.00
100.00
L&T Valves Limited
India
100.00
100.00
100.00
100.00
100.00
L&T Capital Company Limited
100.00
L&T Power Limited
India
99.99
99.99
99.99
99.99
99.99
9
L&T Aviation Services Private Limited
India
8
India
99.99
100.00
L&T Technology Services Limited
India
73.90
73.90
73.90
74.24
74.24
74.24
16
L&T Construction Equipment Limited [5]
India
100.00
100.00
100.00
100.00
100.00
17
L&T Infrastructure Engineering Limited
100.00
India
100.00
15
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
L&T Power Development Limited
India
100.00
100.00
100.00
13
100.00
100.00
100.00
100.00
100.00
India
100.00
L&T Metro Rail (Hyderabad) Limited [4]
14
100.00
Gross
Net of Tax
221.53
(92.89)
314.42
Tax
Gross
2020-21
Tax
2021-22
crore
Impact of business combination
Opening balance
Hedging reserve
LARSEN & TOUBRO
111.77
period related hedges
(64.58)
as hedging instruments
Changes in fair value of forward contracts designated
(1)
142.97
(59.74)
202.71
51.93
Net of Tax
(7.23)
which is designated as hedging instrument for time
Changes in the spot element of the forward contracts
121.55
(40.88)
162.43
(46.83)
17.75
59.16
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": (contd.)
Movement of hedging reserve & cost of hedging reserve
2020-21
Notes forming part of the Financial Statements (contd.)
Hedging reserve/Cost of
hedging reserve
crore
(2.67)
190.60
0.04
322.19
(4.34)
30.93
(4.76)
reserve
reserve
hedging
(13.66)
hedging
Cash flow
2021-22
Cost of
23.42
31.57
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
242.30
NOTE [53]
(72.30)
(76.02)
92.77
44.26
45.46
41.78
260.25
20.40
(137.51)
98.11
Amount reclassified to Profit or Loss
(188.34)
(6.30)
Closing balance
(103.55)
112.39
(37.80)
150.19
34.83
(138.38)
(61.52)
63.81
(21.46)
85.27
20.69
(82.21)
contracts where changes in spot element of forward
contract is designated as hedging instrument for time
period related hedges
Changes in the forward element of the forward
Impact of business combination
1.58
Opening balance
(4.72)
2.35
[1] Excluding impairment of
[2] Excluding impairment of
[3] Excluding impairment of
[4] Excluding impairment of
1730.38 crore (previous year:
39.81 crore (previous year:
173.93 crore (previous year:
75.20 crore (previous year:
Cost of
hedging
1730.38 crore)
38.38 crore)
167.70 crore)
71.62 crore)
478
(ii) Derivative financial instruments designated as
cash flow hedges
(7.01)
2.35
Net of Tax
Tax
Gross
Net of Tax
Tax
NOTE [54]
(7.01)
(9.36)
Cost of hedging reserve
Gross
(9.36)
2020-21
(305.19)
119.60
(424.79)
(40.75)
5.67
(46.42)
Amount reclassified to Profit or Loss
21.29
(8.90)
30.19
(29.84)
4.15
(33.99)
Changes in fair value of swaps
486.99
Amount included in non-financial asset/liability
0.15
(0.02)
0.13
2021-22
crore
(194.58)
221.53
65.67
(92.89)
314.42
283.23
(101.46)
675.33
384.69
(17.88)
2.52
(20.40)
Amount included in Progress Billing in balance sheet
Closing balance
(4.67)
1.95
(6.62)
(260.25)
reserve
71.39
reserve
25.25
(99.81)
(99.81) 227305.24
25.25 12174.31
(126.17)
588420.44
(126.17)
(556.94)
(556.94) 743183.52
(crore)
(* crore)
(*crore)
(crore)
(*)
months
months
71.39 1346959.25
rate
8.13
8.13
Within
As at 31-3-2021
As at 31-3-2022
Aluminium
Particulars
Commodity options contract:
[1] Negative nominal amount represents net sell position.
47.04
143.04
33.68
7447.47
(23.49)
11.03
(12.46) 151246.64
33.68
143.04 1030545.11
142207.55
47.04
169465.07
Nominal
amount
twelve
Average
Copper(Tn)[1]
Aluminium (Tn)[1]
Particulars
B.
A. Commodity forward contract:
(ii) Outstanding commodity price hedge instruments
9.46
189.04
9.46
Omani Riyal
3.51
58.77
3.51
3.63
Investments in fully paid equity instruments and Current
Investments
60.69
Iron Ore(Tn)
twelve
Nickel(Tn)
As at 31-3-2022
Nominal
amount
(* crore)
(₹)
(crore)
months
months
rate
amount
After
Within
After
twelve
twelve
Average
Nominal
Within
As at 31-3-2021
Lead(Tn)
Average
twelve
After
twelve
As at 31-3-2021
As at 31-3-2022
Currency Commodity
exposure price exposure
Sales, administration and other expenses
Manufacturing,construction and operating expenses
Finance costs
Revenue from operation
Progress billing
Hedged expected future cash flows affecting Profit or Loss:
Sales, administration and other expenses
Future cash flows are no longer expected to occur:
Particulars
474
(k) Reclassification of hedging reserve & cost of hedging reserve to Profit or Loss
Balance for which hedge accounting discontinued
Balance towards continuing hedges
Particulars
crore
Breakup of hedging reserve & cost of hedging reserve balance:
Currency Commodity
exposure price exposure
67.59
hedging
Cash flow
As at 31-3-2021
As at 31-3-2022
crore
3.02
42.83
95.32
27.71
119.42
61.40
286.79
29.18
154.01
375.12
304.03
339.94
Liability Other financial liabilities
Asset Other financial assets
Non-current:
(*crore)
(₹)
months
months
rate
After
twelve
twelve
Average
Nominal
amount
(crore)
(*)
(*crore)
months
months
rate
Within
(*crore)
(crore)
(* crore)
11.30
Liability Other financial liabilities
Asset Other financial assets
Current:
Forward contracts
Particulars
Cash flow hedge:
(i) Carrying amounts of hedge instruments for which hedge accounting is followed:
(38.96)
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": (contd.)
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
473
[1] The options contracts include a combination of calls and puts with different maturities and strike prices.
11.30
[1]
NOTE [53]
(C)
0.05
0.50
19434.43
crore
Particulars
Principal amount due to suppliers under MSMED Act, 2006
2021-22
2020-21
18.42
87.78
Interest accrued, due to suppliers under MSMED Act on the above amount, and unpaid
Payment made to suppliers (other than interest) beyond the appointed day during the year
Interest paid to suppliers under MSMED Act (Section 16)
1.03
318.82
193.36
2.89
0.55
Interest due and payable towards suppliers under MSMED Act for payments already made
Interest accrued and remaining unpaid at the end of the year to suppliers under MSMED Act
Amount of further interest remaining due and payable even in the succeeding years
11.46
The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at
March 31, 2022. The disclosure pursuant to the said Act is as under:
1.09
Total cash out flow for leases amounts to 2558.41 crore during the year (previous year: 2119.36 crore) including cash outflow of
short-term and low value leases.
2589.36 crore (previous year: 2143.46 crore) and
Total
104.00
122.80
86.30
110.05
420.59
440.07
i.
Interest expense on lease liabilities amounts to 13.24 crore (previous year: 14.36 crore).
ii.
The expense relating to payments not included in the measurement of lease liability and recognised as expense in the Statement of
Profit and Loss during the year are as follows:
iii.
NOTE [55]
Low value leases -
35.41 crore (previous year: 7.66 crore)
Short-term leases -
1.52
14.43
0.28
As at
No.
2021-2022
2020-2021
31-03-2022
31-03-2021
(i)
Loans and advances in the nature of loans given to subsidiaries:
L&T Realty Developers Limited [1]
(ii) L&T Special Steels & Heavy Forgings Private Limited [2]
(iii) L&T Geostructure Private Limited
(iv) Nabha Power Limited
(v)
L&T Metro Rail (Hyderabad) Limited
(vi)
Hi-Tech Rock Products & Aggregates Limited
Maximum outstanding during
14.01
Balance as at
As at
Sr.
9.73
NOTE [56]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2022.
476
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Financial Statements (contd.)
NOTE [57]
Particulars in respect of loans and advances in the nature of loans to related parties as required by the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015:
crore
Name of the company
0.93
1.76
0.24
27.99
As at 31-3-2021
6.69
0.28
0.28
0.28
0.16
7.68
(b) Where the Company is a lessee:
The Company has taken various assets on lease such as, plant & equipment, buildings, office premises, vehicles and computer
equipment. Generally, leases are renewed only on mutual consent and at a prevalent market price and sub-lease is restricted.
475
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [54]
Total
Disclosure pursuant to IndAS 116 "Leases" (contd.)
Beyond 5 years
3-4 years
4.56
3.63
4.86
(1.83)
0.46
(14.48)
(1.37)
Disclosure pursuant to IndAS 116 "Leases"
(a) Where the Company is a lessor:
Operating leases: The Company has given buildings and plant & equipment under operating lease. The lease income received during the
year is 161.35 crore (previous year: 162.96 crore). Leases are renewed only on mutual consent and at a prevalent market price and
sub-lease is generally restricted.
Annual undiscounted lease payments receivable is as under:
crore
Particulars
As at 31-3-2022
Upto 1 year
7.27
1 - 2 years
7.23
2-3 years
5.65
4-5years
3.29
Details with respect to right-of-use assets:
crore
Depreciation for the year
131.95
Plant & equipment
36.13
71.78
28.04
5.78
33.27
41.43
Vehicles
0.09
0.09
0.06
0.15
Computer
0.59
123.70
101.60
56.38
46.61
Class of asset
2021-22
2020-21
2021-22
Additions during the year
2020-21
Carrying amount
2021-22
2020-21
(vii) Larsen & Toubro Arabia LLC [3]
Land
4.07
1.88
0.91
262.64
265.03
Buildings
62.96
4.23
[Note 5 and Note 10]
(viii) L&T Sapura Shipping Private Limited
(x)
162.53
213.23
403.66
0.28
83.12
75.20
71.62
6353.32
5118.82
Working capital
(a) L&T MHI Power Turbine Generators Private
Limited
255.12
312.67
(b) Nabha Power Limited
(c) L&T Metro Rail (Hyderabad) Limited
327.93
(d) Larsen & Toubro Arabia LLC
130.84
29.60
2020-21
Working capital and project funding
1730.38
1730.38
Project funding
145.43
22.48
Working capital and project funding
3726.70
2450.49
Investment in subsidiaries
24.66
34.10
Project funding
26.00
83.50
2021-22
(e) L&T Technology Services Limited
(g) Mindtree Limited
(k) Nabha Power Limited
(I) L&T Special Steel & Heavy Forgings Pvt Ltd
Guarantees issued by bank out of the Company's
sanctioned limits to customer of L&T- MHI Power Boilers
Private Limited for project performance
Guarantee issued by bank out of the Company's
sanctioned limits On behalf of LTMRHL towards DSRA
((Debt Service Reserve Account) to SBI Cap Trustee
Guarantees issued by bank out of the Company's
sanctioned limits on behalf of Nabha for project
performance to PSPCL
(m) L&T Seawoods Ltd
(19.34)
29.21
29.23
472.00
216.00
216.00
Guarantees issued by bank out of the Company's
sanctioned limits on behalf of L&T Special Steel for
project performance to NPCIL
15.89
21.95
Corporate guarantee given to Maharashtra Pollution
Control Board for CTO/CTE compliances
0.50
42727.92
(j) L&T Metro Rail (Hyderabad) Ltd
(f) Larsen & Toubro (Saudi Arabia) LLC
L&T-MHI Power Boilers Private Limited
19573.00
Corporate guarantee given for subsidiary's Debt
4000.00
4500.00
8616.00
250.00
8652.89
4115.57
610.58
611.53
Corporate guarantee for subsidiary's project performance
253.41
1262.12
505.32
514.50
(h) L&T Hydrocarbon Saudi Company LLC
(i)
7128.36
Purpose for which the loan/guarantee/security is
proposed to be utilised by the recipient
crore
Subsidiary Companies:
34.10
326.64
83.50
130.84
130.84
487.99
327.93
162.53
327.93
163.73
213.23
403.66
403.66
601.48
0.28
34.10
83.12
24.66
4004.49
(xi)
L&T Modular Fabrication Yard LLC
L&T Heavy Engineering LLC [5]
Total
1730.38
1730.38
1730.38
176.67
1730.38
26.00
145.43
29.60
29.60
29.60
22.48
404.15
1584.45
3726.70
2450.49
2450.49
83.12
86.71
75.20
(B)
Nature of the transaction (loans given/investment
made/guarantee given/security provided)
Loan and Advances
Subsidiary Companies:
Total
(a) L&T Special Steels & Heavy Forgings Private
Limited [1]
(b) Nabha Power Limited
(c) L&T Metro Rail (Hyderabad) Limited
(d) Hi-Tech Rock Products & Aggregates Limited
(e) L&T Geostructure Private Limited
(f) Larsen & Toubro Arabia LLC [2]
(g) L&T Sapura Shipping Private Limited
(h) L&T Hydrocarbon Saudi Company [3]
(i) L&T Modular Fabrication Yard LLC
L&T Heavy Engineering LLC [4]
Guarantees
(A)
No.
Sr.
Disclosure pursuant to section 186 of The Companies Act 2013:
71.62
75.20
144.49
6353.32
5118.82
[1] Formerly known as L&T Construction Equipment Limited
[2] Excluding impairment of
[3] Excluding impairment of
[4] Excluding impairment of
[5] Excluding impairment of
1730.38 crore)
38.38 crore)
167.70 crore)
(ix) L&T Hydrocarbon Saudi Company [4]
1730.38 crore (previous year:
39.81 crore (previous year:
173.93 crore (previous year:
75.20 crore (previous year: 71.62 crore)
[7] Loans to employees (including directors) under various schemes of the company (such as housing loan, furniture loan, education loan, etc.) have
been considered to be outside the purview of disclosure requirements.
[8] Subsidiary classification is in accordance with the Companies Act, 2013
477
Integrated Annual Report 2021-22
Notes forming part of the Financial Statements
Notes forming part of the Financial Statements (contd.)
NOTE [58]
[6] Above figures include interest accrued
Canadian Dollar
8820.71
20.28
C. On futures not designated as cash flow hedges
Sub-total (A)
B
Financial assets measured at amortised cost:
(i)
Exchange gains/(losses) on revaluation or settlement of items denominated in foreign
currency (trade receivables, loans given etc.)
166.59
(271.45)
(ii) Allowance/(reversal) for expected credit loss during the year
(411.24)
(297.07)
(iii) Provision for impairment loss (other than expected credit loss) [net]
(199.54)
(1989.86)
(iv) Gains/(losses) on derecognition:
On embedded derivative contracts not designated as cash flow hedges
1. Bad debts (written off)/written back (net)
b.
652.26
(i)
Financial assets or financial liabilities mandatorily measured at fair value through Profit or Loss:
1.
Gains/(losses) on fair valuation or sale of Investments
434.94
960.68
2.
Gains/(losses) on fair valuation/settlement of derivative:
a. On forward contracts not designated as cash flow hedges
190.76
(134.42)
(44.32)
(147.16)
70.88
(52.11)
626.99
A
(22.49)
2. Gains/(losses) on transfer of financial assets (on non-recourse basis)
(1521.82)
||
Net gains/(losses) on financial assets and financial liabilities measured at fair value through other
comprehensive income:
A
Gains/(loses) recognised in other comprehensive income:
(i) Financial assets measured at fair value through other comprehensive income:
1. Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc.
(ii) Derivative measured at fair value through other comprehensive income :
(106.75)
355.48
1.
Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
flow hedges
93.06
736.93
2.
Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges
140.92
(13.86)
Total [I]=(A+B+C)
(15.91)
(28.73)
(58.42)
Sub-total (B)
(495.43)
(2630.66)
C
Financial liabilities measured at amortised cost:
(i)
Exchange gains/(losses) on revaluation or settlement of items denominated in foreign
currency (trade payables, borrowing availed etc.)
(121.95)
255.31
(ii) Unclaimed credit balances written back
106.04
226.54
Sub-total (C)
481.85
Net gains/(losses) on financial assets, financial liabilities measured at fair value through Profit or
Loss and amortised cost
|
No.
326.22
326.22
20,26
(a) Derivative financial instruments designated
as cash flow hedges
(ii) Designated at FVTOCI:
11.73
11.73
26.86
26.86
20,26
(b) Embedded derivative instruments not
designated as cash flow hedges
15.81
15.81
36.03
36.03
336.55
20,26
336.55
20,26
(f)
Derivative instrument - Mark to market on forward covers and embedded derivative instruments is based on forward
exchange rates at the end of reporting period and discounted using G-sec rate plus applicable spread.
Level-2
2.
1. Level-1 Mutual Fund, bonds, debentures and government securities- Quoted price in the active market
Valuation technique and key inputs used to determine fair value -
421.58
421.58
459.71
459.71
Total
57.49
57.49
70.60
70.60
(b) Embedded derivative financial instruments
designated as cash flow hedges
(a) Derivative instruments not designated as
cash flow hedges
(i) Designated at FVTPL:
Financial Liabilities:
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [53]
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": (contd.)
(c) Items of income, expense, gains or losses related to financial instruments:
LARSEN & TOUBRO
crore
Sr.
Particulars
2021-22
2020-21
Corporate
Overview
7,15
464.64
464.64
63.34 22760.79
757.60
21939.85
69.42 16717.35
19.13
19.13
26.40
(38.33)
(52.02)
26.40
583.43
Total
7,15
(iii) Embedded derivative instruments designated as
cash flow hedges
605.32
9162.44
605.32
8820.71 9162.44
16064.50
Movement of items measured using unobservable inputs (Level 3):
32.92
1125.33
Sub-total (A)
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
Notes forming part of the Financial Statements (contd.)
NOTE [53]
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": (contd.)
(e) Fair value hierarchy of financial assets and liabilities measured at fair value:
Particulars
Financial assets:
LARSEN & TOUBRO
crore
Note
Level 1
Corporate
Overview
As at 31-3-2022
Level 2
[1] Valuation technique L2: Future cash flows discounted using market rates.
88.28 L2[1]
16498.88
Fair value
Fair value hierarchy
Particulars
46.35
As at 31-3-2021
Carrying
Fair value
amount
amount
Redeemable non-convertible fixed rate debentures
Term loan from banks
16068.04
Total
63.47
16131.51
16561.90
65.44
16627.33
15570.86
81.60
15652.47
16410.60 L2[1]
Note: The carrying amounts of trade and other payables are considered to be the same as their fair values due to their short-term nature.
The carrying amounts of current borrowings at fixed rate and other borrowings at floating rate of interest are considered to be close to
the fair value.
crore
Level 3
Level 1
7,15
67.91
67.91
99.47
99.47
(v) Embedded derivative Instruments not designated
as cash flow hedges
7,15
24.48
24.48
33.68
33.68
Financial assets at FVTOCI:
(i) Debt instruments viz. government securities,
bonds and debentures
10
(iv) Derivative instruments not designated as cash
flow hedges
Total
70.22
11787.56
982.97
6.88
11787.56
982.97
As at 31-3-2021
Level 2
Level 3
Total
Financial assets at FVTPL:
(i) Equity shares (other than those held in subsidiary,
joint ventures and associate companies)
5
4.98
69.42
(ii) Mutual fund units
10
5961.14
(iii) Bonds
10
1277.67
74.40
5961.14
1277.67
63.34
Financial liabilities measured at amortised cost:
(ii)
470
Notes forming part of the Financial Statements (contd.)
NOTE [53]
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": (contd.)
Sr.
Particulars
No.
III
Other income/(expenses):
A Dividend income:
B
Dividend income from investments measured at FVTPL
Sub-total (A)
Interest income:
crore
2021-22
Notes forming part of the Financial Statements
2020-21
Integrated Annual Report 2021-22
3.72
528.13
597.20
Less:
(i)
Gains/(losses) reclassified to Profit or Loss from other comprehensive income:
Financial assets measured at fair value through other comprehensive income:
(ii)
1. On government securities, bonds, debentures etc. upon sale
Derivative measured at fair value through other comprehensive income:
71.15
116.02
1. On forward contracts upon hedged future cash flows affecting the Profit or Loss or
related asset or liability
41.95
408.39
2.
On embedded derivative contracts upon hedged future cash flows affecting the Profit
or Loss or related asset or liability
Sub-total (B)
Net gains/(losses) recognised in other comprehensive income [II]= (A)-(B)
(4.78)
108.32
(160.34)
469
3.74
15.34
3.74
(1870.02)
Financial liabilities that are measured at fair value through Profit or Loss
(0.17)
(1508.24)
(2007.70)
(459.14)
(963.61)
(a)
(b) Financial liabilities that are measured at amortised cost
(c)
Sub-total (C)
Total [II] = (A+B+C)
(d) Fair value of financial assets and financial liabilities measured at amortised cost:
Financial assets measured at amortised cost:
(i)
The carrying amounts of trade receivables, loans, advances, investments in CBLO and Commercial Paper and cash and other bank
balances are considered to be the same as their fair values due to their short-term nature. The carrying amounts of long-term loans
given with floating rate of interest are considered to be close to the fair value.
(1432.22)
(137.51)
(76.02)
Derivative instruments (including embedded derivatives) that are measured at fair value
through other comprehensive income (reclassified to Profit or Loss during the period)
15.34
C
(c)
Sub-total (B)
(a)
Financial assets measured at amortised cost
(b) Financial assets measured at fair value through other comprehensive income
Financial assets measured at fair value through Profit or Loss
B
344.42
658.65
640.35
42.27
24.51
1045.34
1028.75
Interest expense:
363.89
Particulars
As at 31-3-2022
Carrying
Gains/(losses) recognised in Profit or Loss during 2020-21
As at 31-3-2022
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": (contd.)
NOTE [53]
LARSEN & TOUBRO
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
2.77
2.31
2.77
Thai Baht
As at 31-3-2021
91.85
Within
Within
Average
Nominal
amount
(* crore)
months
(crore)
(*crore)
(*)
(*crore)
months
rate
amount
twelve
twelve
Average
Particulars
Nominal
After
After
twelve
19.40
38.98
186.52
645.10
255.45
831.62
12.93
795.36
261.19
808.30
Kuwaiti Dinar
265.29
1195.09
99.84
1460.38
257.37
683.69
Omani Riyal
91.85
365.55
265.40
18.28
38.98
Malaysian Ringgit
214.70
100.49
214.70
191.87
105.14
191.87
British Pound
186.38
599.11
193.34
785.49
100.15
202.36
twelve
rate
months
British Pound
29.59
20.69
29.59
149.96
20.82
149.96
Qatari Riyal
169.76
123.77
80.10
293.53
0.90
272.74
77.29
127.11
273.64
105.93
26.41
Balance as at April 01, 2020
46.35
42.35
20.71
42.35
Arab Emirates Dirham
242.90
242.90
242.90
32.43
253.45
32.43
Kuwaiti Dinar
26.41
101.30
127.11
0.01
85.98
11.23
EURO
311.60
10615.91
74.49
10927.51
100.03
9424.11
76.83
9524.14
US Dollar
(b) Payable hedges
(*crore)
(crore)
(₹)
months
3556.94
87.56
3515.38
41.56
85.99
500.30
12.04
500.30
Chinese Yuan
1325.46
0.72
94.15
1325.46
0.67
897.43
Japanese Yen
279.83
6129.57
87.40
6409.40
897.43
941.06
Swiss Franc
146.35
19,23,24
Borrowings
A. Non-derivative liabilities:
months
months
months
months
Total
twelve
twelve
Total
twelve
twelve
After
Within
8222.87
After
14412.85 22635.72
20705.48 28655.62
120.05
2312.51
69.76
119.47
23327.27
48422.11
328.25
38008.97
2054.45
80.30
473.67
44911.67
3003.15
181.03
71205.24
94.71
2110.67
119.97
109.68
16847.88
378.96
42801.00
2883.18
71.35
54357.36
B. Derivative liabilities:
Total
Lease liabilities
20,26
Other financial liabilities
25
Due to others
Due to micro enterprises and small enterprises
Trade payables:
7950.14
448.30
40321.48
Within
As at 31-3-2022
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
471
69.32
6.09
63.23
(5.07)
68.30
Equity Investment in Tidel Park Limited
crore
Balance as at March 31, 2022
Gains/(losses) recognised in Profit or Loss during 2021-22
EURO
Balance as at March 31, 2021
NOTE [53]
As at 31-3-2021
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": (contd.)
Fair value as at
31-3-2022 31-3-2021
Note
crore
Particulars
25 bps change in capitalisation rate would result in +/- 0.60 crore (post
tax- 0.45 crore)
1% change in net realisation would result in +/- 0.28 crore (post tax- 0.21
crore)
Sensitivity
31-3-2022 and 31-3-2021 :
(g) Maturity profile of Financial Liabilities (undiscounted values):
2. Capitalisation rate 11.50%
63.23 31-3-2022 and 31-3-2021:
1. Net realisation per month
*31.827 per sqft.
69.32
Equity
Investment
crore
inputs
Significant unobservable
Significant unobservable inputs used in level 3 fair value measurements and sensitivity of the fair value measurement to changes in
unobservable inputs:
2124.21
199.77
71749.38
Particulars
Embedded derivatives
13197.80
2607.45
79.32 10671.01
21.06 1734.08
0.69 1401.82
1502.65
Japanese Yen
1739.15
Qatari Riyal
13278.46
US Dollar
(a) Receivable hedges
(crore)
(crore)
(crore)
(*crore)
(*)
78.35
months
8999.77
Arab Emirates Dirham
21.26
779.74
Forward contracts
926.09
110.40
2426.78
0.73
2537.18
249.32
958.09
20.72
5.07
100.83
74.40
950.49
21.26
1024.89
4198.03
months
1207.41
twelve
(i)
(h) Details of outstanding hedge instruments for which hedge accounting is followed:
Outstanding currency exchange rate hedge instruments
362.74
69.74
432.48
35.74
35.74
327.00
69.74
396.74
465.19
Forward covers taken to hedge exchange rate risk and accounted as cash flow hedge:
29.67
366.76
98.43
16.50
13.17
85.26
20,26
Total
rate
350.26
20,26
472
435.52
As at 31-3-2022
twelve
Nominal
amount
(*crore)
(*)
months
months
rate
Within
After
Average
twelve
Average
Nominal
amount
(*crore)
Particulars
Within
As at 31-3-2021
After
twelve
Our audit procedures related to the (1) evaluation of evidence supporting the execution of work; (2) evaluation
of recoverability of the overdue amounts including the impact on the expected credit loss allowance; and (3)
assessment of adjusting events after the reporting date i.e. March 31, 2022 and the date when the financial
statements are approved by the Parent's Board of Directors included the following:
Measurement of contract assets in respect of overdue milestones and receivables in respect of overdue invoices.
Key audit matter The Group, in its contract with customers, promises to transfer distinct services to its customers, which may
be rendered in the form of engineering, procurement, and construction ("EPC") services through design-build
contracts, and other forms of construction contracts. The recognition of revenue is based on contractual terms,
which could be based on agreed unit price or lump-sum revenue arrangements. At each reporting date, revenue
is accrued for costs incurred against work performed that may not have been invoiced. Identifying whether the
Group's performance has resulted in a service that would be billable and collectable where the works carried out
have not been acknowledged by customers as of the reporting date, or in the case of certain Defence contracts,
where the evidence of work carried out and cost incurred are covered by confidentiality arrangements, involves a
significant amount of judgement. Assessing the recoverability of contract assets related to overdue milestones and
amounts overdue against invoices raised which have remained unsettled for a significantly long period after the end
of the contractual credit period also involves a significant amount of judgment.
Refer to Note No. [1](II)(i), [1] (II) (r) to the Consolidated Financial Statements.
Principal Audit
Procedures
•
484
We selected a sample of contracts assets with corresponding trade receivables that were overdue and
evaluated the basis for management's conclusions regarding the (1) evidence supporting the execution of
work for which the contract assets were recognised; (2) reasons for the delays in recovery of invoices and the
basis on which recoverability of the contract assets was assessed; (3) impact on the allowance for expected
credit losses; and (4) adjusting events after the reporting date i.e. March 31, 2022 and the date when the
financial statements are approved by the Board of Directors and the impact thereof on the carrying amount of
the related contract assets.
In respect of the sample contracts, we compared previous estimates relating to recoverability of contract assets
and compared it with actual collections during the year.
Tested the estimate for consistency with the status of delivery of milestones and customer acceptance to
identify possible delays in achieving milestones, which require changes in estimated costs or efforts to
complete the remaining performance obligation.
Corporate
Overview
We tested the effectiveness of controls relating to the (a) gathering and evaluation of evidence supporting
the execution of work; (b) evaluation of recoverability of the overdue amounts including the impact on the
expected credit loss allowance; and (c) assessment of adjusting events after the reporting date i.e. March
31, 2022 and the date when the financial statements are approved by the Board of Directors and the impact
thereof on the carrying amount of the related contract assets. Measurement of contract assets in respect of
overdue milestones and receivables in respect of overdue invoices.
Compared costs incurred with Group's estimates of costs incurred to date to identify significant variations
and evaluated whether those variations have been considered appropriately in estimating the remaining
costs to complete the contract; and
a.
Obtained and read contract documents for each selection, change orders, and other documents that
were part of the agreement;
Integrated Annual Report 2021-22
d.
C.
b.
Auditors' Report on Consolidated Financial Statements
We selected a sample of contracts with customers and performed the following procedures:
We tested the effectiveness of controls relating to the (a) evaluation of performance obligations and
identification of those that are distinct; (b) estimation of costs to complete each of the performance
obligations including the contingencies in respect thereof, as work progresses and the impact thereon as
a consequence of change orders; (c) the impact of change orders on the transaction price of the related
contracts; and (d) evaluation of the impact of variable consideration on the transaction price.
Our audit procedures related to the (1) identification of distinct performance obligations, (2) evaluation of the
process for estimation of costs to complete (3) evaluation of implications of change orders on costs estimates of
costs to complete and revenue and (4) evaluation of any variable consideration included the following:
description
Principal Audit
Procedures
Revenue recognition - accounting for construction contracts
Identified significant terms and deliverables in the contract to assess management's conclusions
regarding the (i) identification of distinct performance obligations; (ii) changes to costs to complete
as work progresses and as a consequence of change orders; (iii) the impact of change orders on the
transaction price; and (iv) the evaluation of the adjustment to the transaction price on account of variable
consideration;
Management
We tested the effectiveness of controls over forecasts of future traffic, revenue, free cash flows and selection
of the discount rate;
Statutory
Selected a sample of continuing and new contracts and performed the following procedures:
Tested the relevant information technology systems' access and change management controls relating to
contracts and related information used in recording and disclosing revenue in accordance with the revenue
accounting standard.
483
Evaluated the design and operating effectiveness of internal controls relating to the application of revenue
accounting standard specifically, those relating to identification of the distinct performance obligations and
determination of transaction price. Procedures performed included enquiry and observation, reperformance
and inspection of evidence in respect of operation of these controls.
The component's auditors (being other firms of chartered accountants) have performed the following audit
procedures:
The Group has also assessed (i) the possibility of constraints to render services which may require revision of
estimations of costs to complete the contract because of additional efforts, (ii) onerous obligations, (iii) penalties
relating to breaches of service level agreements and (iv) termination or deferment of contracts by customers.
Refer to Note No. [1] (II)(i) to the Consolidated Financial Statements.
The application of the revenue accounting standard (Ind AS 115) involves significant judgements/material estimates
relating to identification of distinct performance obligations, determination of transaction price of the identified
performance obligations, the appropriateness of the basis used to measure revenue recognised over a period.
Additionally, the standard requires disclosures, which involve collation of information in respect of disaggregated
revenue, and periods over which the remaining performance obligations will be satisfied subsequent to the Balance
Sheet date.
Principal Audit
Procedures
description
Key audit matter
Accuracy of recognition, measurement, presentation and disclosures of revenue and other related balances in view of the
principles laid down under Ind AS 115 "Revenue from Contracts with Customers" in respect of component Larsen & Toubro
Infotech Limited
We performed a sensitivity analysis on the discount rate to assess the extent of change in discount rate that
would be required for the CGU to be impaired.
We evaluated the reasons for variation between the management's previous estimate of traffic, revenue and
cash flow forecasts and obtained our understanding of the manner in which revised forecasts were obtained;
With the assistance of our fair value specialists who have specialised skill and knowledge, we evaluated
the reasonableness of the methodology and discount rate by testing the source information underlying the
determination of the discount rate and mathematical accuracy of the calculations; and
•
•
•
Our audit procedures related to forecasts of future traffic, revenue, free cash flows generated, selection of the
method for estimating recoverable value and discount rate for the entity included the following:
Refer to Note 1 (II)(o) to the Consolidated Financial Statements
The Group is carrying Intangible asset, Property Plant & Equipment and Investment property relating to Metro
Rail CGU (comprising of Hyderabad Metro operations). During the year, as the indication exists, the Group has
reassessed its impairment assessment with respect to the above CGU. Impairment of assets is a key audit matter
considering the significance of the carrying value, estimations and the significant judgement involved in impairment
assessment.
As per the requirements of Ind AS 36, the Group assesses at the end of every reporting period, whether there is any
indication that cash generating unit (CGU) may be impaired. If any such indication exists, the Group estimates the
recoverable amount of the CGU. The determination of recoverable amount being value-in-use involves significant
estimates, assumptions and judgements of the long-term financial projections.
Principal Audit
Procedures
description
Key audit matter
LARSEN & TOUBRO
Discussion and Analysis Report
Financial
Statements
Reports
Integrated
Refer to Note No. [1] (II)(i) to the Consolidated Financial Statements
(a) For better understanding of the Company's performance, line items have been added to show Profit after tax from continuing operations
separately from exceptional items. This is in line with guidance available in Schedule III to the Act.
There are significant accounting judgements in estimating revenue to be recognised on contracts with customers,
including estimation of costs to complete. The Group recognizes revenue on the basis of stage of completion in
proportion of the contract costs incurred at balance sheet date, relative to the total estimated costs of the contract
at completion. The recognition of revenue is therefore dependent on estimates in relation to total estimated costs
of each such contract.
481
Figures for the previous year have been regrouped/reclassified to conform to the figures of the current year.
(b)
NOTE [65]
[7] Not material considering the size and the nature of operations of the Company
Includes current investment, inter corporate deposits and fixed deposits
[6]
Includes profit/loss on sale and fair valuation of current investments, dividend on current investment and interest income
[5]
Includes Manufacturing,construction and operating expenses
[4] Average Equity and average loan funds (including interest bearing advances)
Interest expense + Principal repayments made during the period for long term borrowings+ Cash flow on settlement of derivatives contracts related
to borrowings
Consolidated Financial Statements
[3]
Profit before interest, tax and exceptional items from continuing operations
[1]
(21.4)
8.56%
6.72%
Average
investment [6]
Investment (%)
Treasury income [5]
Return on
(35.3)
a. Read, analysed and identified the distinct performance obligations in these contracts;
15.94%
[2]
Significant judgements are involved in determining the expected losses, when such losses become probable based
on the expected total contract cost. Cost contingencies are included in these estimates to take into account specific
risks of uncertainties or disputed claims against the Group, arising within each contract. These contingencies
are reviewed by the Management on a regular basis throughout the life of the contract and adjusted where
appropriate. The revenue on contracts may also include variable consideration (variations and claims). Variable
consideration is recognised when the recovery of such consideration is highly probable.
Corporate
Integrated
Key audit matter
description
Revenue recognition - accounting for construction contracts
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial
statements of the current financial year. These matters were addressed in the context of our audit of the consolidated financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.
Key Audit Matters
We are independent of the Group, its associates and joint ventures in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the consolidated financial statements
under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by the
other auditors in terms of their reports referred to in the Other Matters section below, is sufficient and appropriate to provide a basis for our
audit opinion on the consolidated financial statements.
We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing specified under section 143
(10) of the Act ("SA"s). Our responsibilities under those Standards are further described in the Auditor's Responsibility for the Audit of the
Consolidated Financial Statements section of our report.
Basis for Opinion
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports
of the other auditors on separate financial information of the joint operations, subsidiaries, associates and joint ventures referred to in the
Other Matters section below, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (the
"Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS"), and other accounting principles
generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2022, and their consolidated profit, their
consolidated total comprehensive income, their consolidated cash flows and their consolidated changes in equity for the year ended on that
date.
We have audited the accompanying Consolidated Financial Statements of Larsen & Toubro Limited (the "Parent") and its subsidiaries, (the
Parent and its subsidiaries together referred to as the "Group") which includes 35 joint operations of the Group accounted on proportionate
basis and the Group's share of profit in its associates and joint ventures, which comprise the Consolidated Balance Sheet as at March 31,
2022, and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Cash
Flows and the Consolidated Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and
other explanatory information.
Report on the Audit of the Consolidated Financial Statements
Opinion
LARSEN & TOUBRO LIMITED
TO THE MEMBERS OF
Management
INDEPENDENT AUDITORS' REPORT
32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
One International Center Tower 3,
Chartered Accountants
DELOITTE HASKINS & SELLS LLP
Statements
Reports
Report
Discussion and Analysis
Overview
LARSEN & TOUBRO
Financial
Statutory
Mumbai - 400 013
Maharashtra, India
b. Compared such performance obligations with those identified and recorded by the Company;
•
d.
Due to the multitude of factors and assumptions involved in determining the forecasted revenues/cash flows
and discount rate in the projection period, Significant judgments are required to estimate the recoverable values.
Any adverse changes to these assumptions could result into reduction in the fair value determined resulting in a
potential impairment to be recognised
The Group has carried out detailed evaluations considering various factors and concluded that the carrying value of
the toll collection rights are good and recoverable.
Toll collection rights obtained in consideration for rendering construction services, represent the right to collect
toll revenue during the concession period in respect of Build-Operate-Transfer ("BOT") and Design-Build-Operate-
Transfer ("DBOT") projects. Toll collection rights are capitalised as intangible assets upon completion of the project
at the cumulative construction costs plus the present value of obligation towards negative grants and additional
concession fee payable to National Highways Authority of India ("NHAI")/State Authorities, if any.
Principal Audit
Procedures
Key audit matter
description
Impairment of Toll Collection Rights of certain operating projects who have incurred continuous losses and/or are undergoing
restructuring due to continuous losses for a period more than 5 years.
assessed the disclosures made in relation to the ECL allowance and fair valuation to confirm
compliance with Ind AS provisions.
evaluated the methodology used for computation of the fair value of loans; and
•
evaluated the methodology used to determine macroeconomic overlays and adjustments to the
output of the ECL model;
evaluated the reasonableness of applicable assumptions, including LGD;
tested the factual accuracy of information such as ratings and period of default and other related
information used in estimating the PD;
tested appropriateness of staging of borrowers based on DPD and other loss indicators, as
applicable;
•
Performed the following substantive procedures on sample of loan assets:
reconciled the total loans considered for ECL assessment with the books of accounts to ensure the
completeness;
appropriateness of information used in the estimation of the Probability of Default ("PD") and Loss
given Default ("LGD") for the different stages depending on the nature of the portfolio.
completeness and accuracy of the Exposure at Default ("EAD") and the classification thereof into
stages consistent with the definitions applied in accordance with the policy approved by the Board
of Directors;
•
b.
Audit procedures relating to the allowance for ECL and fair valuation included the following, among others:
Performed end-to-end process walkthroughs to identify the controls used in the impairment loss
allowance processes. Tested the design and effectiveness of relevant internal controls, including the
general IT controls relevant to the impairment loss allowance process, as detailed below:
a.
Confirmed that adjustments to the output of the ECL model is consistent with the documented rationale and
basis for such adjustments which has been approved by the Audit Committee of the Board of Directors.
Verified the methodology adopted for computation of ECL and fair valuation for assessing and measuring
lending exposures.
Examined the policies approved by the Board of Directors of the Company that articulate the Company's
business model for managing its financial assets to achieve its business objectives.
Refer to Note No. [1] (II) (o) to the Consolidated Financial Statements
The component's auditors (being other firms of chartered accountants) have performed the following audit
procedures:
•
Evaluated the design and implementation of the relevant controls and the operating effectiveness of such
internal controls which inter-alia includes the completeness and accuracy of the input data considered,
reasonableness of assumptions considered in determining the future projections and the assumptions
considered in preparing the impairment calculations.
10.32%
•
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level
of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial statements.
Auditor's Responsibility for the Audit of the Consolidated Financial Statements
The respective Boards of Directors of the companies included in the Group and of its associates and joint ventures are also responsible for
overseeing the financial reporting process of the Group and of its associates and joint ventures.
In preparing the consolidated financial statements, the respective Boards of Directors of the companies included in the Group and of its
associates and joint ventures are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either
intends to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.
The respective Boards of Directors of the companies included in the Group and of its associates and joint ventures are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its
associates and its joint ventures and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements
by the Directors of the Parent Company, as aforesaid.
The Parent Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial
performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group including its
associates and joint ventures in accordance with Ind AS and other accounting principles generally accepted in India.
Management's Responsibility for the Consolidated Financial Statements
If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, compare with the
financial statements of the joint operations, subsidiaries, joint ventures and associates audited by the other auditors, to the extent it relates
to these entities and, in doing so, place reliance on the work of the other auditors and consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated. Other information so far as it relates to the joint operations, subsidiaries, joint ventures and associates, is traced from
their financial statements audited by the other auditors.
•
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
Information Other than the Financial Statements and Auditor's Report Thereon
Evaluated the appropriateness of key assumptions considered, including discount rate, growth rate, etc.
considering the historical accuracy of the Company's estimates in the prior periods, consultations with
internal specialists and comparison of the assumptions with public data wherever available.
C.
Compared the actual revenues and cash flows generated by the subsidiaries during the year as to the
projections and estimates considered in the previous year; and
b.
Conducted discussions with component personnel to identify factors, if any, that should be taken into
account in the analysis;
a.
Obtained the investment valuations (prepared by Management or as carried out by Management's external
valuation specialist) pertaining to such subsidiaries and performed the following procedures;
Impairment of Toll Collection Rights of certain operating projects who have incurred continuous losses and/or are undergoing
restructuring due to continuous losses for a period more than 5 years.
Auditors' Report on Consolidated Financial Statements
Integrated Annual Report 2021-22
487
The Parent Company's Board of Directors is responsible for the other information. The other information comprises the information included
in the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business Responsibility Report, Corporate
Governance and Shareholder's Information, but does not include the consolidated financial statements, standalone financial statements and
our auditor's report thereon.
•
•
The component's auditors (being other firms of chartered accountants) have performed the following audit
procedures:
C.
b.
a.
For time and material-based contracts:
Ensured that revenue recognition method applied was appropriate based on the terms of the agreement with
the customer; obtained an understanding of the processes and tested relevant controls, which impact the
revenue recognition;
•
•
The component's auditors (being other firms of chartered accountants) have performed the following audit
procedures:
Refer to Note [1] (II)(i) to the Consolidated Financial Statements.
The Group is having two models for the purpose of recognition of revenue from contracts for services rendered,
which are time and material contracts and fixed price contracts.
The Group is in the business of providing technology and engineering services to third parties.
Principal Audit
Procedures
Obtained appropriate evidence based on the circumstances to conclude whether the hours charged on
projects were appropriate;
Key audit matter
description
Reviewed the collation of information and the logic of the report generated from the management
system used to prepare the disclosure relating to the periods over which the remaining performance
obligations will be satisfied after the Balance Sheet date.
Performed analytical procedures for reasonableness of revenue disclosed by type and service offerings;
and
In respect of samples relating to fixed price contracts, progress towards satisfaction of performance
obligation used to compute recorded revenue was verified with actual and estimated efforts from the
time recording and contracting systems. We also tested the access and change management controls
relating to these systems;
g.
f.
e.
Accuracy of recognition, measurement, presentation and disclosures of revenue and other related balances in view of the
principles laid down under Ind AS 115 "Revenue from Contracts with Customers” in respect of component Larsen & Toubro
Infotech Limited
Auditors' Report on Consolidated Financial Statements
Integrated Annual Report 2021-22
485
Samples in respect of revenue recorded for time and material contracts were tested through a review
of approved time sheets including customer acceptances, subsequent invoicing and historical trend of
collections and disputes;
Reviewed contracts terms to determine the transaction price including any variable consideration to
determine the appropriate transaction price for computing revenue and to test the basis of estimation of
the variable consideration;
Revenue recognition in respect of component L&T Technology Services Limited
C.
Obtained appropriate evidence based on the circumstances to conclude whether the rate charged per
man hours on projects were appropriate; and
For fixed price contracts:
In addition to the output of the ECL models, macroeconomic overlays and adjustments are recognised by the
Company in order to align historic LGD estimates with the current collection and recovery practices.
Refer to Note [1] (II) (r)(i)(D) to the Consolidated Financial Statements.
C.
Principal Audit
Procedures
Measurement of loan assets for financial services segment
LARSEN & TOUBRO
Discussion and Analysis Report
Statements
Statutory Financial
Reports
Integrated
Management
Corporate
Overview
486
Verified the revenue based on the hours charged on the projects and approved per hour rate.
Considered the appropriateness of disclosures in relation to revenue recognition.
b.
The key areas where the component auditors' have identified greater levels of management judgement and
therefore increased levels of audit focus in the Company's estimation of ECLs are:
As part of risk assessment, component auditors' have determined that the allowance for ECL and fair valuation
on loan assets has a high degree of estimation uncertainty, with a potential range of reasonable outcomes for the
financial statements.
Significant judgement is used in classifying these loan assets and applying appropriate measurement principles. The
allowance for expected credit losses ("ECL") and fair valuation on such loan assets are critical estimates involving
significant level of management judgement.
Measurement of loan assets for financial services segment
Key audit matter
description
Obtained appropriate evidence based on the circumstances to conclude whether the proportion of
completion of projects was appropriate.
e.
Verified the revenue based on the stage of completion of the projects; and
d.
C. Evaluated management's estimates and assumptions in recognition of the revenue;
b. Assessed the reliability of management's estimates by comparing actual results of delivered projects to
previous estimates;
Agreed the total project revenue estimate with customer contracts agreements including amendments as
appropriate;
a.
a. Each borrower is classified into Stage 1 to 3 based on the objective criteria of Day Past Due (DPD) status as of
the reporting date and other loss indicators, as applicable. Such classification by borrower is done across all
facilities provided to the borrower, i.e. maximum of the DPDs among the facilities ["Max DPD"].
Inherently, judgment is involved in the use models to estimate ECL which includes determining Exposures at
Default ("EAD"), Probabilities of Default ("PD") and Loss Given Default ("LGD"). The PD and the LGD are
the key drivers of estimation complexity and as a result are considered the most significant judgments in the
Company's modelling approach.
Finance Cost)
0.50
Cost (net off tax shield on
For Company law matters
C.
0.74
0.76
For Taxation matters
b.
2.10
2.49
Limited review of standalone and consolidated financial statements on a quarterly basis
(ii)
2.45
2.75
Statutory audit fees
(i)
Paid as Auditor
a.
2020-21
2021-22
crore
Sr. No. Particulars
Auditors' remuneration (excluding GST):
NOTE [61]
Notes forming part of the Financial Statements (contd.)
Notes forming part of the Financial Statements
Integrated Annual Report 2021-22
d.
For Other services including certification work
1.16
1.43
2
[1]
-[1]
ΝΑ
Accounts Payables
Walls Infra Solution Private Limited
1
as at 31-3-2021
Balance
outstanding
as at 31-3-2022
company
Transaction
479
Balance
outstanding
S. No. Name of the Struck off Company
Nature of
crore
Balance outstanding with struck off companies:
(a)
NOTE [63]
Contribution to political parties during the year 2021-22 is Nil (previous year: Nil).
NOTE [62]
0.19
0.12
For reimbursement of expenses
e.
Relationship with
the struck off
[3] Includes CSR expense of discontinued operations * 0.83 crore.
[2] Total amount spent in excess of mandatory requirement for FY 20-21 was 5.07 crore. The amount available for set off in succeeding
financial years was 4.51 crore (including the amount for which no asset was created).
[1] Total amount spent in excess of mandatory requirement for FY 21-22 and available for set off in succeeding financial years is * 6.14 crore
(including the amount for which no asset is created).
(iii) (i)-(ii) Spend obligation
Excess spend of previous year utilised
Required to be spent
Particulars
(ii)
(i)
Sr. No.
Disclosure related to Corporate Social Responsibility (CSR):
NOTE [60]
The impairment was recognised considering the existing business operations and the outlook for the future performance. The present value of
estimated future cash flows of the business (value-in-use) was considered as a recoverable amount (discount rates used 11.90% to 12.75%).
For power development business, in addition to value-in-use, part of the recoverable value was based on the fair value determined based on
benchmark multiple method.
(ii) Impairment of investments in the power development business 1415.00 crore.
Impairment towards funded exposure of 1467.38 crore offset by interest income of 78.58 crore and provision towards constructive
obligation to fund future losses ₹ 14.85 crore in the heavy forgings joint venture.
(iv)
Gain of 128.60 crore on divestment of stake in L&T Uttaranchal Hydro Power Limited, a subsidiary on August 30, 2021.
Exceptional items (net of tax) for 2020-21 included the following:
Gain of 138.69 crore on transfer of NxT digital business to Mindtree Limited, a subsidiary, with effect from July 1, 2021.
(i)
LARSEN & TOUBRO
Exceptional items (net of tax) for 2021-22 includes the following:
NOTE [59]
Notes forming part of the Financial Statements (contd.)
Statutory Financial
Reports Statements
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(ii)
Avn Green Technologies Private Limited
Actual spent
crore
ii. Amount spent on CSR during the year 2021-22 includes contribution to PM CARES Fund NIL (previous year: 3.24 crore).
Refer Annexure C to the Board Report for the nature of CSR activities of the Company.
i.
158.32[3]
131.67
Total amount shown in Statement of Profit and Loss
(iv b)+(v)
1.62
Excess spend shown as asset in previous year charged to Statement of Profit and Loss on its
utilisation
(v)
158.32
130.05
Of which amount recognised in:
(b) Statement of Profit and Loss
5.63[1]
Balance sheet
(a)
159.94
135.68
154.87
129.54
4.51 [2]
154.87
134.05
2020-21
2021-22
1.62[2]
Previous period included gain
on E&A business transfer.
Accounts Payables
_[1]
Revenue from operations
Trade Receivables
ΝΑ
NA [7]
NA [7]
Average inventory
Cost of goods sold
Inventory Turnover
Ratio
Previous period included gain
(40.5) on E&A business transfer.
257.3 maturity
20.5%
12.2%
shareholders equity
Ratio (%)
Profit for the year after tax Average
Return on Equity
1.82
6.49
(times)
higher repayment of NCDs on
Previous period included
Earnings available for debt Debt service [2]
service [1]
Coverage Ratio
Debt Service
(23.7)
Average gross trade
Turnover Ratio
receivables
2.65
Employed (%)
Capital employed [4]
Profit after tax + Finance
Return on Capital
Previous period included gain
(42.3) on E&A business transfer.
13.52%
7.80%
operations
Profit for the year after tax Revenue from
Net Profit Ratio (%)
(16.8)
3.52
0.40
2.93
Average working
Net Capital Turnover Revenue from operations
Ratio
9.6
1.73
1.89
payables
Turnover Ratio
Average trade
Purchases [3]
Trade Payables
7.7
2.46
capital
0.30
(times)
Shareholder's equity
[1]
_ [1]
ΝΑ
Shares held by
struck off company
Kothari Intergroup Limited
6
_[1]
_ [1]
ΝΑ
struck off company
Shares held by
Victor Properties private Limited
[1] Less than 1 Lakhs.
5
[1]
ΝΑ
Accounts Payables
IS Earth Movers Private Limited
4
0.01
0.01
ΝΑ
Accounts Payables
Alert Infraprojects Private Limited
3
_ [1]
_ [1]
ΝΑ
(b) Notes with respect to remarks in CARO Report:
(ii) The Company renewed the loan of 168.48 crore to L&T Sapura Shipping Private Limited, a joint venture, as the vessel owned by
it was under major repairs since its accident in March 2020 and the joint venture company was unable to generate revenue. The
vessel is expected to be re-commissioned in 2022-23. The payment of interest of 3.50 crore on the Company's bridge loan, for
repairs of the vessel, to the joint venture company, is overdue and would be settled out of insurance claim proceeds.
Total debt
Debt Equity Ratio
(2.4)
1.43
1.39
Current liabilities
Current assets
Current Ratio (times)
change is more than 25%]
Variance % Reason of Variance [If
As at
31-3-2021
As at
31-3-2022
(i) The Company renewed the loan of 24.66 crore to Hi-Tech Rock Product & Aggregates Limited, a subsidiary, as its business was
affected majorly due to an inverted duty structure. The subsidiary company has initiated measures to become more cost competitive
including redressal of the inverted duty structure through various forums.
Denominator
Ratio
LARSEN & TOUBRO
Following are the analytical ratios for the year ended March 31, 2022 and March 31, 2021
NOTE [64]
Notes forming part of the Financial Statements (contd.)
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
480
Numerator
488
Impairment on Assets - Metro Rail Cash Generating Unit
The business has Engineering Design Centres located at
Mumbai, Faridabad, and Chennai. It also has a Competency
Development Centre at Kancheepuram and a Workmen
Training Centre at Ahmedabad.
* 58,500 crore are expected to be finalised in the next 5 years.
Systems orders are expected to be finalised across six Metros
in FY 2022-23 viz. Chennai Metro Phase 2, Ahmedabad
Metro Phase 2, Surat Metro, Indore and Bhopal Metro and
Delhi Metro Phase 4. New Metros have been announced
in several Tier 2 cities like Gorakhpur, Varanasi, Meerut,
Vijayawada, Vizag, Dehradun, Bhubaneswar etc. Expansion
of existing Metro Systems in major cities such as Mumbai,
Delhi, Bangalore, Chennai, Kolkata is underway. The business
outlook for the next 5 years includes 18 new projects
(700 km) in the Track and Systems domain.
Rapid commissioning of Western & Eastern Freight Corridors
will catalyse development of new freight corridors i.e., East
Coast, North-South and East-West Corridors. Detailed project
reports have been initiated for East Coast (1,114 km) and the
East-West (2,328 km) Corridors. In total, Projects worth
Further Track and Systems packages are expected to be
awarded for the Mumbai – Ahmedabad High Speed Corridor
during FY 2022-23.
-
Civil Packages and System Tenders expected under the four
RRTS corridors being implemented by the National Capital
Region Transport Corporation (NCRTC).
Also, through Mission Electrification, IR has completed the
highest-ever Railway Electrification of 6,366 km in its history
and further IR has commenced upgradation of the existing
electrification system to 2x25 kV electrification to facilitate
higher speeds (upto 160 km/h), haulage and improved
system efficiency for High Density Network (HDN) and Highly
Utilised Network (HUN) through Zonal Railways.
The Indian Railways (IR) has announced multiple projects
aimed at capacity augmentation and traffic decongestion in
its network. The prospects in next 3 years include New Line
6,000 km (60,000 crore), Doubling / 3rd Line 4,000 km
(40,000 crore).
during the period from 2019-20 to 2024-25 to enhance track
capacity, improve freight efficiency, augment the speed of
trains, enhancing safety and ensuring better connectivity. In
FY 2022-23, the national transporter has received the highest
ever total plan capex of 2.45 trillion vis-à-vis 2.15 trillion
in FY 2021-22.
As per the National Infrastructure Pipeline, investments
worth 13.67 trillion are to be made in the railways sector
Railway Business
Outlook
Mumbai-Nagpur Expressway
Integrated Annual Report 2021-22
• Bidkin Industrial Area Development Project commissioned
in Apr 2021
• 4 Lane 30 km Karodi-Aurangabad Road Project
commissioned in Feb 2022
• 4 Lane 111 km Baharagora-Singhara Road Project
commissioned in Aug 2021
• 4 Lane 34 km Helwak-Patan-Karad Road Project
commissioned in Jul 2021
• 4 Lane 84 km Ghoshpukur-Salsalabari Road Project
commissioned in Jul 2021
• 4 Lane 11 km Chandigarh-Khadar Elevated Corridor
commissioned in June 2021
• Loco Trial for 118 TKM priority section of EDFC MGS-
SEBN commenced in Nov 2021 from New Ganjkhwaja to
Chiralapathu Station
• Loco Trial for 133 TKM priority section of EDFC CP-204
Mughalsarai to New Bhaupur commenced in Feb 2022
from Kanpur to Sujatpur
• 18 TKM of Kanpur Metro priority section commissioned in
Dec 2021 from IIT to Motijheel
• Phase 2A of Mauritius Metro Express has been
commissioned (Rose Hill to Quatre Bornes) and is in
commercial operation since June 2021
• Odisha Power Generation Corporation - Fully
commissioned 68 km rail connectivity and commercial
operations started from Manoharpur Coal Mines to
Thermal Power Plant for the OPGC project
equipment, the section corresponding to CTP 1 & 2 has
been commissioned
Road & Bridges
• Electrical and Mechanical Works at Western Dedicated
Freight Corridor involving 2x25 kV, high rise over head
The Government has planned to expand the National
Highway network by ~60,000 km by 2025 in major
economic corridors, strategic areas, and Elevated Corridor
& Flyovers network in major cities such as Delhi, Chennai,
Kolkata, Mumbai and Bengaluru, with an investment outlay
of 20.33 lakh crore under the National Infrastructure Plan
(NIP). While a daily average of constructing 39 km of road per
day has been achieved in March 2022, the Government has
set up an ambitious target of construction of 25,000 km of
national highways in the next fiscal year under the PM Gati
Shakti National Master Plan.
Corporate
Overview
Integrated Annual Report 2021-22
43
With hydel power evolving as an alternate source for grid
stability, the Government has taken various steps for the
development of hydropower projects in J&K and the North-
Eastern states. 21 Hydropower projects with an aggregate
The Government is keen to expand metro services to 50
Indian cities to accommodate the growing commuting
requirements and for better mobility.
Business Environment
L&T Geostructure, a wholly-owned subsidiary engages in
foundation and ground improvement projects. With its expertise
in building deep piling and diaphragm walls, multicellular intake
wells for river-linking, and marinas with berths and jetties. It
has a strong and professional foundation specialised team with
knowledge of design, equipment, and methods to execute and
supervise sophisticated foundation works.
The Marine Structures Vertical has extensive experience in
greenfield ports, shipyard structures and seawater intake
systems along the coastlines of India. It specialises in
providing state-of-the-art ship lift structures and turnkey EPC
solutions.
The Company's Hydel & Tunnels segment is involved in road
and railway tunnelling projects, which enhances nation
building and offers EPC solutions for complete hydroelectric
power projects, large-diameter transport / water tunnels and
complex irrigation projects.
The nuclear business segment offers turnkey services
including seismic qualification, civil, mechanical, electrical,
instrumentation and modular construction technology. Its
expertise extends to both Pressurised Heavy Water Reactor
(PHWR) and Light Water Reactor (LWR) technologies.
With an industry leading position in enhancing urban mass
rail transit capabilities, the Company is involved in building
metro rail systems in nearly all major Indian cities.
The business is currently involved in the construction of the
country's first High Speed Rail corridor connecting Mumbai to
Ahmedabad. The latest construction technologies including
in-house fabricated Full Span Launching Equipment, Straddle
Carrier and Girder Transporter are being used in the marquee
project as a part of the Make in India initiative.
The business has a strong presence in India, Middle East,
and Bhutan. With dedicated design and technical centres,
competency cells, specialised training centres, digital project
management, and a talented pool of employees, the business
sustains its leading position.
The Heavy Civil Infrastructure business is a market leader in
EPC projects in core civil infrastructure segments that are
crucial to the Indian economy viz. Metro Rail System, High
Speed Rail, Nuclear, Hydel & Tunnels, Marine Structures and
Defence Infrastructure Facilities.
Overview
HEAVY CIVIL INFRASTRUCTURE
On the international front, while the business continues to
focus on neighbouring countries like Bangladesh, it is also
strongly looking at entering ASEAN, North and East Africa
- regions where the Company already has a presence in the
other businesses.
International Front
The Mumbai Coastal Road Project. L&T is executing Packages 1 and 4.
Statements
LARSEN & TOUBRO
Financial
Statutory
Reports
Integrated
Report
Discussion and Analysis
Management
42
204-16 01
The business has completed the following projects:
Bangalore Suburban Rail Project – Corridor 02 from Rail
Infrastructure Development Company, Karnataka
The Railways Business Group is recognised as a full range
rail system integrator. The SBG has built capabilities in all
3 railway domains including track construction, overhead
electrification and signalling & telecommunication. The SBG
is further subdivided into Mainline Business Unit (MLBU)
and Metro Business Unit (MTBU). MLBU addresses EPC
construction works in the domains of civil and trackwork,
electrification, system integration for all Mainline Railway
Projects, Dedicated Freight Corridors, and Rail Links for
Port, Mining & Power Plant facilities etc. MTBU addresses
EPC construction works involving ballastless trackwork,
electrification and system integration for all Mass Rapid
Transit System Projects and Regional Rapid Transit System in
India and abroad.
Dhaka Metro MRT Line 6
Integrated Annual Report 2021-22
39
L&T's Transportation Infrastructure business is one of the
leading contractors in India offering turnkey Design & Build /
EPC solutions with single point responsibility for all kinds
of transportation infrastructure such as Roads, Bridges,
Railways, City Infra, Urban Transit and Airports. The business
is broadly divided into two Strategic Business Groups (SBGs),
namely, Railways Business Group (RBG) and Roads Runways
& Elevated Corridors (RREC).
Overview
TRANSPORTATION
INFRASTRUCTURE
With the economy poised to grow in the coming year the
business is well placed to benefit from the expected large
investments across many sectors.
With manufacturing leaders trying to set their hubs in India,
it is expected that the factories sector will get a significant
boost. The Solar PV industry which is now under PLI is also
expected to generate significant prospects in the future.
Warehousing and Logistics are picking up pace. Industrial
Chemicals like Paints are gaining significant investments.
The Automobile and the Cement industries are also on an
uptrend and will lead an increase in the setting up of new
manufacturing facilities across the country.
FY 2022-23 is poised to be a very promising year for the
Indian housing market, supported by investments either
from Government or private players in the Affordable
Housing Segment.
The Indian Data Centre Industry is witnessing meteoric
growth. A large and growing internet user base coupled
with the explosion of data and creation of a conducive
atmosphere via the Government's Digital India Mission has
transformed India into a fast-growing data centre hub.
The State and the Central Governments and a few public
sector units are coming up with buildings like the Central
Vista, Museums, Statues and Educational Institutions. The
awards under National High Speed Rail Corporation Ltd.
(NHSRCL) projects are picking up pace and are likely to
witness further tendering. The business is also expecting
some traction in the development / redevelopment of railway
stations across the country.
The health sector has garnered significant attention from
the Government after the pandemic. The Government has
allocated about 64,000 crore for healthcare infrastructure over
the next 6 years. Government spending is the biggest growth
driver for this segment and the business is expected to focus
on major healthcare prospects coming up from the Central
Government and the State Governments. The total Health
Sector allocation for FY 2021-22 stood at ₹223,846 crore.
With 100% FDI allowance for green field airports, it is
anticipated that India is set to become the 3rd largest aviation
market by 2025. India's aviation industry is expected to
witness *35,000 crore (USD 4.99 Bn) investment in the next
four years. The Indian Government is planning to invest
USD 1.83 bn for development of airport infrastructure along
with aviation navigation services by 2026.
Outlook
Dhaka Metro
Statements
Reports
Report
Discussion and Analysis
LARSEN & TOUBRO
Statutory Financial
Integrated
Management
Corporate
Overview
The Road, Runways & Elevated Corridor Business Group
is divided into Roads & Bridges (R&B) Business Unit and
Formations & Structure (Railways) Segment (F&S). R&B
provides EPC design and build construction services for all
types of roads, bridges and elevated corridors including all
associated structures, cross-drainage, toll booths, wayside
amenities, etc. In the airport sector, the R&B BU is involved
in the construction of complete airside infrastructure viz.
runways, taxiways, aprons, airfield ground lighting, fuel
hydrant systems, etc. The F&S Segment provides design and
build construction services of civil works (Earthwork, Earth-
retaining structures, Cross drainage, etc.) for all types of
Railway projects including Dedicated Freight Corridors, High
Speed Rail and Urban Railway Network.
Projects completed:
Business Environment
Increasing urbanisation, growing industrialisation, and the
need to connect metros with growth centres has been driving
the growth in the Railway sector in the past few years. The
pace of infrastructure creation has been at an all-time high
with new and innovative means of construction. Most of
the projects during the year were awarded on a fragmented
basis. As a part of Atmanirbhar Bharat, 2,000 km of network
will be brought under Kavach, the indigenous technology
for safety and capacity augmentation in FY 2022-23. A new
Project Development Cell (PDC) has been created in the
Railway Board to increase investments and encourage foreign
direct investment.
•
• 4 Lane to 6 Lane Ghaziabad to Aligarh Road Project from
CUBE Highways
• Chennai Peripheral Ring Road Project EPC 02 of section
Il from Tamil Nadu Road Infrastructure Development
Corporation
• Ganga Expressway Group 1, Package A from IRB
Infrastructure Developers Ltd.
• Third Rail Traction Project: Agra Metro (64 TKM) from Uttar
Pradesh Metro Rail Corporation Limited
• EPC Overhead Electrification Projects from IRCON
• Slab Track Package T3 Package (258 TKM) from National
High Speed Rail Corporation Ltd.
Major projects received during the year:
Orders won:
Major Achievements
The Airport sector did not see any major traction in the
recent year.
However, over the last couple of years, the number of
projects awarded under the Hybrid Annuity Method is seeing
an increase impacting the prospects for pure play EPC players.
Ghoshpukur Salsalabari Road Project
Statements
LARSEN & TOUBRO
Financial
Integrated Statutory
Report
Reports
Discussion and Analysis
Management
Corporate
Overview
40
Also, in view of the exponential increase in traffic over the
years in urban areas, the Government has shifted its focus
on developing many new Elevated Corridor / Flyover projects
across major cities, with the primary aim of decongesting
urban roads and highways.
Over the last 7 years, the length of National Highways has
gone up by 50% - from 91,287 km (as of April 2014) to
1,46,440 km (as of March 2022). Construction of highways
has increased to 39 km / day in 2021-22 from 27 km / day in
2019-20, with an increased focus on the timely delivery
of projects.
The budgetary support for the Road and Bridges sector has
seen a steady increase of more than 58% over the last 4 years.
18% of the National Infrastructure Pipeline announced by the
Government is earmarked for roads & bridges.
Roads, Runways & Elevated Corridor SBG
Railway Business Group
Bangalore Metro - an underground section
41
capacity of 5,186 MW are under discussion at various levels
for development in the next five years in Jammu & Kashmir.
.
• 400 kV Substations & Transmission Line in Rajasthan
• 400 kV & 220 kV Substations & Transmission Line
in Karnataka
Orders won:
Major Achievements
The FY 2021-22 witnessed several headwinds viz. successive
waves of COVID-19, supply chain disruptions worldwide
causing unusual increase in commodity / solar module prices
besides freight costs. These led not only to delayed order
finalisations from the customer's end but also the measured
pacing of progress in ongoing projects.
In Africa, the lower vaccination rates, travel restrictions,
internal conflict, etc. etc. has caused a lull in the momentum,
with borrowing capacities of countries reduced drastically
as per the Debt Service Suspension Initiative. However,
the business gained successful entry into West Africa with
breakthrough projects in Guinea and Cameroon. Addition of
South Africa into the fold is another key milestone. Sustained
lockdowns and severe restrictions impacted the order
finalisations in the ASEAN region.
The expansion of the 380 kV network in Saudi Arabia
presented sizeable opportunities for Substations and
Overhead Lines. A major Oil & Gas project win for the Group
provided power system opportunities in the Kingdom. The
GW scale renewable energy projects being built in the region
gained significant momentum.
The opportunities for providing Reactive Power
Compensation devices like STATCOMs, Static Var
Compensators (SVCS), and Reactors have previously been
limited only to India. However, such opportunities are on the
rise in other operating geographies such as KSA, UAE and
Qatar recently.
The Renewables arm of the business has emerged successful
in more than 1 GWp projects in the western region of the
country, from Central and State Public Sector Enterprises.
This is in line with rising potential for hybrid plants with
wind and BESS components. Current supply constraints of
solar modules and batteries are envisaged to ease out in the
medium to long term with the push given by the Government
through the Production Linked Incentive Scheme.
The customer-end delays in finalisation of funding
arrangements and fulfilling bidding/contractual
arrangements for Optical Fibre Cabling (OFC) projects in
southern parts of the country led to lacklustre performance
on the OFC front. The next phase of Bharat Net projects is yet
to take off with PPP mode tenders receiving muted response.
On the back of ongoing transmission line projects in
Bangladesh, the business has made further inroads with
Substation and EHV cabling orders. With the successful
execution of Koshi corridor associated substations and
transmission lines, Nepal also offers good T&D prospects.
The Substation and Transmission Line orders from state
utilities were limited to few states like Karnataka and
Rajasthan. The delays in Tariff Based Competitive Bidding
for interstate T&D networks led to shrinking of orders from
Power Grid Corporation and other developers.
in packages where the scope included advanced SCADA
systems and Digital Solutions.
500 kV HVDC Transmission Line, Kenya
Statements
Reports
LARSEN & TOUBRO
Financial
Integrated Statutory
Report
Discussion and Analysis
Management
Corporate
Overview
46
With the consolidation of ongoing distribution schemes
under a new, yet to be operationalised Revamped
Distribution Sector Scheme, the distribution jobs were limited
to few packages. However, the business emerged successful
Switchyard package in Gorakhpur
Business Environment
• Power Supply System for Agra Metro
47
48
With oil prices remaining high due to geo-political tensions,
the Middle East region now provides stable opportunities,
though the individual countries are likely to witness cyclical
variations due to various factors including demand growth.
Challenges faced by the EPC players due to slow ramp-up of
domestic module manufacturing capacity, price uncertainty
coupled with aggressive tariffs is further aggravated by
The Himalayan terrain being quite familiar for the business, the
upcoming Leh Solar evacuation related prospects may offer
substantial prospects, in addition to Green Energy Corridor
Il and intrastate strengthening packages. The evacuation
arrangements and electrics for nuclear power plants being
developed in fleet mode is another good opportunity. Also, the
power system packages of metro rail projects in major cities
provide good substation and cabling opportunities.
The Revamped Distribution Sector scheme gaining traction
with budget allocation and ministerial push, several packages
are expected to get finalized in next year, especially the
infrastructure works meant for Aggregate Technical &
Commercial (AT&C) loss reduction.
Various measures proposed in the General Instructions
on Procurement and Project Management guidelines by
Ministry of Finance, Government of India may prove to be
gamechangers if these get implemented by Central Public
Sector Enterprises.
Outlook
risk management modules, the migration to an advanced
version of enterprise portal with added capabilities and
fortified cybersecurity were some other milestones.
• Seamless integration of customer relationship and enterprise
• Advanced resource management, BIM integration and
forecasting abilities were added to the mature project
management digital ecosystem PRAPTI / BODHI.
Significant Initiatives
• 275 kV Matang Substation in Sarawak, Malaysia
• 26 substations and 790 km of overhead / underground
transmission corridors in the Middle East, including a
400 kV Substation in UAE and one of the longest 380 kV
Overhead lines in GCC region
• Distribution Infrastructure improved by adding 2400+
RMUs and 1450 km of cable conversion in Northern part
of India
Rishikesh-Karnaprayag Rail Link Package 2
• Power Supply Systems for Mumbai Metro Line 3 & Line 7
• Two 230 kV Gas Insulated Substations in Bengaluru
Projects completed and commissioned:
• 500 kV Castillejos TL - a major transmission line project
in Philippines
• 225 kV TL in Guinea
• 400 kV TLs in Cameroon, Tanzania, and the Mozambique -
Malawi 400 kV Interconnector
• STATCOM / Shunt Reactor / Dynamic Reactive Power
Compensation orders in Saudi Arabia and UAE
• A large Solar-cum-Energy Storage Project with 57 MWhr
storage capacity, in Gujarat
•230 kV GIS in Nepal
Large scale solar cum storage project in Andaman
Integrated Annual Report 2021-22
⚫ EHV Cable System package in Bangladesh
Larsen & Toubro Saudi Arabia LLC (LTSA), a wholly-
owned subsidiary, provides engineering, construction,
and contracting services in the sphere of transmission &
distribution in the Kingdom of Saudi Arabia.
• 1250+ km of Transmission Lines completed in Madhya
Pradesh, Kerala, etc.
The fast-expanding Africa business unit has executed
several landmark projects in Algeria, Egypt, Morocco, Kenya,
Ethiopia, Tanzania, Uganda, Botswana, Mozambique, and
Malawi. It has made further inroads into Western & Central
Africa with breakthrough projects in Ghana and Cameroon.
With the regional offices strategically located in Nairobi,
Cairo, Johannesburg & Accra to serve the vast continent, the
business has earned a coveted position with a sizeable market
share in the addressable segment.
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
44
Bangalore Metro Rail Project, RT-02 package has achieved
its First Tunnel Boring Machine (TBM) Breakthrough on 6th
January 2022 at MG Road Station
•
• India's largest TBM (MAVALA having 12.19 m dia.) at
Mumbai Coastal Road Project, Package-4 achieved its
first breakthrough on 10th January 2022, covering a total
distance of 2.1 km
• RVNL Package 2 connecting Shivpuri to Byasi in
Uttarakhand completed 10 km of tunnelling using the new
Austrian tunnelling method (NATM) technology in about
twenty months (out of total 26.6 km)
High Speed Rail Package 4 connecting Zaroli village -
Maharashtra - Gujarat border to Vadodara erected the
first 40 m full span box girder (weighing 970 MT) on 25th
November 2021 at the Navsari casting yard
.
• Bangalore Metro RT-03 package achieved its second
TBM breakthrough on 13th October 2021 after
covering 866 m
Key achievements:
Statutory
Reports
• Delhi Metro Rail Corporation Package DC 09 for
construction of twin TBM tunnel of 5 km length each and
4 underground stations between Chattarpur and Neb Sarai
High Speed Rail Package C5 for construction of civil and
building works for double line high speed rail involving
Vadodara station between MAHSR 393.7 km and MAHSR
401.9 km in the state of Gujarat
CP10 ECV-03 for construction of approx. 10.2 km of
elevated viaduct and 11 elevated stations from Assissi
Nagar to CMBT Metro station
C5 ECV-02 for construction of approx. 12.4 km of
elevated viaduct and 12 elevated stations between CMBT
metro station and Puzhuthivakkam metro station
UG TU 02 for construction of approx. 12 km
underground twin tunnel between Kellys and
Taramani Road
>>>
»
• Chennai Metro Rail Ltd. Phase 2 Packages -
Orders won:
Major Achievements
The Government is focusing on building new capacities and
upgrading existing defence infrastructure. This will lead to
creation of opportunities in various defence infrastructure
projects including naval infrastructure facilities.
In the Maritime India Summit - 2021, the Government came
up with the Maritime Vision 2030, which envisages the
development of three mega ports of greater than 300 MTPA
cargo handling capacity. Debottlenecking of existing port
facilities is required to accommodate the increased cargo
handling and trading sector. Also, the Government is keen on
strengthening and modernising naval bases across the country.
India's installed nuclear capacity is 6,780 MW which is
expected to reach to 22,480 MW by 2031 on completion of
projects under construction. At present there are 11 reactors
at various stages of construction totaling to 8,700 MW.
In the ASEAN region, L&T is an established international
T&D player to reckon with, holding a portfolio of prestigious
projects spread across Thailand, Malaysia, and Philippines.
• Patna Metro PC03 for construction of underground twin
tunnel of 6.3 km length each and 6 stations between
Rajendranagar and Akashvani
Financial
»
Statements
Over the past three decades, the Middle East business unit
has earned a strong reputation among the utilities and oil
companies in Saudi Arabia, UAE, Oman, Qatar, Kuwait, and
Bahrain, having executed several marquee projects. It enjoys
an enviable track record and garners significant share of T&D
projects awarded every year.
LARSEN & TOUBRO
The international units of the business provide the entire
spectrum of Power T&D related services in Middle East, Africa
and ASEAN regions.
The initiatives in emerging areas such as Digital Solutions and
Electric Vehicle Charging Infrastructure have made initial wins
and are on track to ensure that the business is future ready.
The Renewables arm of Power T&D business is a single-stop
EPC service provider globally for GW-scale Solar PV, Energy
Storage, Microgrid and Hybrid renewable projects. There are
very few players with such strong experience and expertise in
different module technologies, module mounting structures
and storage types. The business unit has accumulated in-depth
engineering and construction know-how to execute a vast
range of renewable projects, be it hybrid, floating or linear,
with the best suited technologies for terrain type and tracking.
The container integration facility at Kancheepuram augments
the capabilities of the business with an annual capacity to
integrate 400 MWh of battery energy storage system with
associated intelligent management and control systems.
The Power Distribution Business Unit has been at the
forefront of taking electricity to all by providing a range of EPC
services related to urban / rural electrification, augmenting,
reforming, and strengthening of high voltage and low voltage
distribution networks, power quality improvement works and
advanced distribution management solutions.
132-11 kV Umm Besher and 132-11 kV Wakrah-4 Substation
400 KV GIS Substation, Chennai, Tamil Nadu
Integrated Annual Report 2021-22
45
The Substation Business Unit provides turnkey solutions
for Extra High Voltage (EHV) air insulated / gas insulated
substations, Flexible AC Transmission Systems (FACTS), Digital
Substation related solutions and EHV cable systems.
The domestic business is organised based on offerings and
caters to various T&D utilities, developers and infrastructure
customers such as metros, airports etc.
L&T's Power Transmission & Distribution business vertical
a leading EPC player, providing end-to-end solutions for
transmission / distribution infrastructure, clean electricity
starting from Solar PV plant EPC to last mile electrification. It
offers integrated EPC offerings including Ground Mounted
/ Floating Solar Photovoltaic Plants, Battery Energy Storage
Systems (BESS), Substations and Transmission Lines up
to 1200 kV, Underground Cable Systems, Distribution
Infrastructure both at Medium & Low Voltage levels, and
related Digital Solutions. With 15 regional offices spread
across the SAARC, Middle East, Africa, ASEAN and CIS
regions, the Power T&D business has projects being executed
in 30 countries.
The Transmission Line Business Unit provides complete
EPC solutions for overhead transmission lines. It is
well integrated with the digitally-driven, green tower
manufacturing units at Puducherry, Pithampur and
Kancheepuram, which have a combined capacity to produce
more than 1.5 lakh tonnes of tower components per
annum. The Kancheepuram facility also houses the world-
renowned Tower Testing and Research Station.
DISTRIBUTION
Overview
500kV Bang Saphan 2 to Surat Thani 2 Transmission Line
Medigadda Barrage project in Telangana bagged Formwork
Award 2020 for best use of formwork in civil engineering
from the Association of Consulting Civil Engineers, India
Outlook
Considering Mission 2070 Net Zero India, the country
is to focus on green construction technologies in future
infrastructure projects. Carbon-efficient design (modular
design), adoption of low-carbon construction processes
(low emission materials such as fly ash), enforcement of
building energy codes are few initiatives suggested by World
Economic Forum in the Mission 2070: A Green New Deal for
a Net Zero India white paper. The thrust on renewable energy
is expected to increase in the coming years, providing the
necessary boost for sustainable infrastructure such as Metros,
Hydel & Nuclear businesses.
The Nuclear business is expected to continue its growth along
with continued focus on 10 Pressurised Heavy Water Reactor
(PHWR) projects. The growing energy demand in India will
make nuclear power a major source of renewable power, as
fossil fuels are scarce in the country.
In India, metro networks operate only in 13 cities and to
increase better urban mobility and metro being one of the
low carbon emission transport systems, the Government
is keen to expand metro services. It is also considering the
implementation of Mass Transit Systems such as Metro/
Metro Lite / Metro Neo / Personal Rapid Transit System in Tier
1 and Tier 2 cities keeping in view the growing importance of
the transport sector in the city's overall development.
FY 2022-23 to 7.5 trillion, which is 24.4% higher than * 6.0
trillion in FY 2021-22 revised estimate. The above initiatives by
Gol will benefit the business in the upcoming years.
•
POWER TRANSMISSION &
In terms of infrastructure investments, the Budget has factored
in a significant increase in capital expenditure in
Other financial assets
62840.50
173.24
9
2162.97
252.99
1420.19
58963.66
Deferred tax assets (net)
51(d)
Other non-current assets
Sub-total - Non-current assets
Current assets
10
2840.10
8
2697.00
111867.75
6077.62
5949.67
Other loans
Investments in joint ventures and associates
46736.84
18729.37
8066.96
7476.98
116306.88
19197.76
79.23
1988.62
112.02
2021.53
Financial assets
43(e)
2729.35
2670.26
Other investments
6
7081.51
5945.14
Loans towards financing activities
7
52631.67
Inventories
235.35
11
280.34
Other financial assets
18
3840.04
3251.68
141274.18
134348.57
Other current assets
19
60132.89
Sub-total Current assets
207350.39
54791.48
194960.59
Group(s) of assets classified as held for sale
TOTAL ASSETS
45(e)
320048.92
830.78
6.24
3646.78
17
Other loans
41379.03
42269.20
5943.32
5820.54
Investments
12
29792.51
31011.23
Trade receivables
13
46138.92
Financial assets
42229.78
14
13770.24
13373.52
Other bank balances
15
5182.93
2867.98
Loans towards financing activities
16
Cash and cash equivalents
3962.98
5952.54
1170.32
*Refer to Note No. 63(a) to the Consolidated Financial Statements
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
(Partner)
(Membership No. 39826)
UDIN: 22039826AIVCZB5750
Place: Mumbai
Date: May 12, 2022
491
Integrated Annual Report 2021-22
Auditors' Report on Consolidated Financial Statements
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph "(f)" under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (the "Act")
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2022, we
have audited the internal financial controls over financial reporting of LARSEN & TOUBRO LIMITED (hereinafter referred to as "Parent") and its
subsidiary companies which includes one of the Group's 35 joint operations which is a company incorporated in India, its associate companies
and joint ventures, which are companies incorporated in India, as of that date.
Management's Responsibility for Internal Financial Controls
The respective Boards of Directors of the Parent, its subsidiary companies, its joint operation, its associate companies and joint ventures,
which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the respective companies considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants
of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company's policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor's Responsibility
Clause - xix
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Parent, its subsidiary companies, its
joint operation, its associate companies and its joint ventures, which are companies incorporated in India, based on our audit. We conducted
our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note")
issued ICAI and the Standards on Auditing ("SA"), prescribed under Section 143(10) of the Companies Act, 2013 (the "Act"), to the extent
applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting
was established and maintained and if such controls operated effectively in all material respects.
Clause - ix (a)
Clause (c) and iii (d)
Name of the company
Larsen and Toubro Limited
L&T Seawoods Limited
L&T Sapura Shipping Private
Limited
311273.71
L&T Chennai Tada Tollway
Limited
L&T Special Steels and Heavy
Forgings Private Limited
CIN
L99999MH1946PLC004768
U45203MH2008PLC 180029
U61100TN2010PTC077217
U45309TN2008PLC066938
U27109MH2009PTC193699
Nature of relationship
Parent
Subsidiary
Joint Venture
Joint Venture
Joint Venture
Clause number of the CARO report
which is qualified or adverse*
Clause iii (c) & iii (e)
-
Clause -ix (a)
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by other auditors of the subsidiary companies, joint
operation, associate companies and joint ventures, which are companies incorporated in India, in terms of their reports referred to in the
Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system
over financial reporting of the Parent, its subsidiary companies, its joint operation, its associate companies and its joint ventures, which are
companies incorporated in India.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A Company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Integrated Annual Report 2021-22
Consolidated Balance Sheet as at March 31, 2022
Consolidated Balance Sheet
crore
Note
As at 31-3-2022
As at 31-3-2021
ASSETS:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Investment property
Goodwill
Other intangible assets
Intangible assets under development
223 455
Right-of-use assets
61(b)(iii)
10578.87
493
Date: May 12, 2022
Place: Mumbai
UDIN: 22039826AIVCZB5750
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion to the best of our information and according to the explanations given to us and based on the consideration of the reports
of the other auditors referred to in the Other Matters paragraph below, the Parent, its subsidiary companies, its joint operation, its associate
companies and joint ventures, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2022,
based on the criteria for internal financial controls over financial reporting established by the respective companies considering the essential
components of internal control stated in the Guidance Note.
492
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports Statements
Other Matters
11386.29
388.37
29733.53
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
financial reporting in so far as it relates to 34 subsidiary companies, 1 joint operation company and 11 joint ventures, which are companies
incorporated in India, is based solely on the corresponding reports of the auditors of such companies incorporated in India.
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
financial reporting in so far as it relates to 1 associate company, which are companies incorporated in India, whose financial information is
unaudited and whose efficacy of internal financial controls over financial reporting is based solely on the Management's certification provided
to us and our opinion on the adequacy and operating effectiveness of the internal financial controls over financial reporting of the Group is
not affected as the financial information of such entities is not material to the Group.
Our opinion is not modified in respect of the above matters with respect to our reliance on the work done by and the reports of such other
auditors and the financial information certified by the Management.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
(Partner)
(Membership No. 39826)
LARSEN & TOUBRO
494
For DELOITTE HASKINS & SELLS LLP
Management
SANJIV V. PILGAONKAR
Partner
Membership No. 39826
R. SHANKAR RAMAN
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
Whole-time Director & Chief Financial Officer
(DIN 00019798)
Mumbai, May 12, 2022
SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
M. M. CHITALE
Independent Director
(DIN 00101004)
495
Integrated Annual Report 2021-22
Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss for the year ended March 31, 2022
crore
Note
by the hand of
2021-22
Firm's Registration No. 117366W/W-100018
With respect to the matters specified in clause (xxi) of paragraph (3) and paragraph 4 of the Companies (Auditor's Report) Order,
2020 ("CARO"/ "the Order") issued by the Central Government in terms of Section 143(11) of the Act, according to the information
and explanations given to us, and based on the CARO reports issued by us and the auditors of respective companies included in the
consolidated financial statements to which reporting under CARO is applicable, as provided to us by the Management of the Parent, we
report that in respect of those companies where audits have been completed under section 143 of the Act, there are no qualifications or
adverse remarks by the respective auditors in the CARO reports of the said companies included in the consolidated financial statements
except for the following:
1309.82
1171.02
Sub-total - Current liabilities
159353.80
137404.81
Liabilities associated with group(s) of assets classified as held for sale
45(e)
79.73
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
224675.19
320048.92
3.20
223353.65
311273.71
CONTINGENT LIABILITIES
COMMITMENTS (capital and others)
32
33
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1 to 65
In terms of our report attached
Chartered Accountants
Current tax liabilities (net)
2020-21
Revenue from operations
156521.23
2267.08
158788.31
135979.03
3429.35
139408.38
36
17100.84
15562.05
33506.21
24558.23
1069.50
1213.58
3091.07
2032.89
24772.33
22316.18
(2076.60)
16322.62
343.37
12983.56
37
7691.04
35
Continuing operations
INCOME:
34
Deferred tax
Other income (net)
Total Income
EXPENSES:
Manufacturing, construction and operating expenses:
Cost of raw materials, components consumed
Construction materials consumed
Purchase of stock-in-trade
Stores, spares and tools consumed
Sub-contracting charges
Changes in inventories of finished goods, work-in-progress,
stock-in-trade and property development
Other manufacturing, construction and operating expenses
Finance cost of financial services business and finance lease activity
Employee benefits expense
Sales, administration and other expenses
Finance costs
Depreciation, amortisation, impairment and obsolescence
Total Expenses
Profit before exceptional items and tax
Tax expense:
Current tax
Net profit after tax (before exceptional items) from continuing operations
Exceptional items before tax
2998.68
3355.86
31269.63
75868.53
12051.53
TOTAL EQUITY
95373.73
87920.06
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
Lease liability
Other financial liabilities
Provisions
Deferred tax liabilities (net)
Other non-current liabilities
Sub-total-Non-current liabilities
Current liabilities
22
61618.31
1633.31
82407.66
12966.07
82120.04
1617.72
Non-controlling interests
280.91
75587.62
Integrated
Statutory
Discussion and Analysis Report
Reports
Financial
Statements
Consolidated Balance Sheet as at March 31, 2022 (contd.)
LARSEN & TOUBRO
crore
Note
As at 31-3-2022
As at 31-3-2021
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
220
20
21
281.01
82126.65
Equity attributable to owners of the Company
23
111.67
186.74
406.10
Trade payables:
Due to micro enterprises and small enterprises
Due to others
28
Other financial liabilities
29
22
575.91
50568.33
488.99
6643.32
45256.24
5328.93
120044.02
101965.48
Other current liabilities
Provisions
30
31
34644.10
406.54
Lease liability
22719.39
31372.96
24
51(d)
25
63363.29
817.77
83924.50
773.78
1039.33
1178.66
21.27
Corporate
Overview
68.70
85945.64
Financial liabilities
Borrowings
Current maturities of long-term borrowings
25
26
30476.96
27765.83
27
65241.66
As stated in Note No. 20 to the Consolidated Financial Statements, the Board of Directors of the Parent Company have
proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General
Meeting. The amount of dividend declared is in accordance with section 123 of the Act to the extent it applies to
declaration of dividend.
Tax expense of discontinued operations
b.
For DELOITTE HASKINS & SELLS LLP
In terms of our report attached
1 to 65
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
2.00
82.41
61.65
2.00
Face value per equity share (₹)
82.49
61.71
55
55
Diluted earnings per equity share (*)
Basic earnings per equity share (*)
discontinued operations:
Earnings per share (EPS) of 2 each from continuing operations &
58.61
58.67
55
55
Chartered Accountants
55
Firm's Registration No. 117366W/W-100018
SANJIV V. PILGAONKAR
* crore
2021-22
Number of
shares
Particulars
A. Equity share capital
Consolidated Statement of Changes in Equity for the year ended March 31, 2022
Consolidated Statement of changes in Equity
Integrated Annual Report 2021-22
497
M. M. CHITALE
Independent Director
(DIN 00101004)
Company Secretary & Compliance Officer
Membership No. FCS3939
SIVARAM NAIR A
Whole-time Director & Chief Financial Officer
(DIN 00019798)
(DIN 02255382)
Chief Executive Officer & Managing Director
S. N. SUBRAHMANYAN
R. SHANKAR RAMAN
Mumbai, May 12, 2022
Membership No. 39826
Partner
by the hand of
2020-21
Number of
shares
Diluted earnings per equity share (*)
Earnings per share (EPS) of 2 each from discontinued operations:
12921.28
10419.24
1338.35
1749.91
11582.93
8669.33
Non-controlling interests
Other comprehensive income for the year attributable to:
Owners of the Company
Owners of the Company
Non-controlling interests
Profit for the year attributable to:
8.14
(26.56)
1454.37
14375.65
10857.59
438.35
13.47
Share in Other comprehensive income of joint ventures/associates (net)
Other comprehensive income for the year (net of tax)
Total comprehensive income for the year
2.29
11.12
(2.98)
(0.77)
Income tax (expenses)/income on cost of hedging reserve
329.38
Basic earnings per equity share (*)
1129.49
324.88
23.80
61.65
55
Diluted earnings per equity share (*)
23.82
61.71
55
Basic earnings per equity share (*)
Earnings per share (EPS) of 2 each from continuing operations:
14375.65
10857.59
1663.23
1858.88
Non-controlling interests
12712.42
8998.71
Total comprehensive income for the year attributable to:
Owners of the Company
1454.37
438.35
108.97
3.06
crore
1,40,45,55,297
4,73,826
(1.87)
68.05
68.05
68.05
1663.23 14375.65
(17.68) 12712.42
97.07
923.89
82.89
11626.25
66442.44 9520.83 75963.27
11582.93 1338.35 12921.28
(17.68) 1129.49 324.88 1454.37
97.07
923.89
82.89
43.32
11582.93
sive income sive income
16.75
65.33
(436.92)
(1.87)
4157.55 52731.64 582.56
(1.87)
(8.63) (474.28)
(9.26)
Corporate
Overview
(0.23) 75587.62 12051.53 87639.15
162.40
485.10
665.45
282.44 302.00 8667.65 383.60 3683.27 60955.94
19.80 1100.58 1120.38
19.80
(6.93)
6.93
(303.03) (3953.92)
(3650.89)
67.59
76.85
(9.26)
0.70
6.93
(3650.89)
222.21
260.00
Issued, subscribed and fully paid up equity shares outstanding at the beginning of the year
Add: Shares issued on exercise of employee stock options during the year
401.49
Total
Employee share options (net)
Transfer from/(to) retained earnings
Transfer to non-financial assets/liabilities
Issue of equity shares
Total comprehensive income for the year (a+b)
Other comprehensive income for the year (b)
Profit for the year (a)
Balance as at 31-3-2020
Particulars
B. Other equity
280.91
0.13
6,63,275
1,40,45,55,297
0.10
281.01
1,40,50,29,123
Issued, subscribed and fully paid up equity shares outstanding at the end of the year
280.78
1,40,38,92,022
280.91
Dividend paid (including special dividend)
282.44 42.00 8599.60
Net gain/loss on transactions with non-controlling
interests
Balance as at 31-3-2021
controlling
interests
Non-
instruments instruments Total other
equity
through
Other Other
comprehen- comprehen-
reserve
reserve
Hedging through
Employee
Foreign
share Statutory Retained currency
options
earnings translation
(net)
reserve
reserves
Securities
premium
reserve
Capital
redemption
Capital
Debt Equity
Items of Other comprehensive income
Reserves and surplus
crore
498
Increase in non-controlling interests due to dilution/
divestment/acquisition/right issue
The final dividend paid by the Parent Company during the year in respect of the same declared for the previous year is in
accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
Cost of hedging reserve
310.28
•
•
•
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Parent Company
has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group
and its associates and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the Group and its associates and joint ventures to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether
the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group
and its associates and joint ventures to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the audit of the financial statements of such entities or business activities included in the consolidated
financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements,
which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of
the audits carried out by them. We remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the consolidated financial statements.
We communicate with those charged with governance of the Parent Company and such other entities included in the consolidated financial
statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matters
•
•
•
We did not audit the financial information of 33 joint operations included in the standalone financial statements of the entities included
in the Group, whose financial information reflects total assets of ₹3,130.29 crore as at March 31, 2022, total revenues of ₹3,381.64
crore, total net loss after tax of 193.76 crore, total comprehensive loss (net) of 193.76 crore and net cash inflows amounting to
101.55 crore for the year ended March 31, 2022, as considered in the respective standalone financial statements of the entities
included in the Group. The financial information of these joint operations has been audited by the other auditors whose reports have
been furnished to us by the Parent's Management, and our opinion in so far as it relates to the amounts and disclosures included in
respect of these joint operations and our report in terms of subsection (3) of Section 143 of the Act, in so far as it relates to the aforesaid
joint operations, is based solely on the report of such other auditors.
1,85,352.10 crore
We did not audit the financial information of 61 subsidiaries, whose financial information reflects total assets of
as at March 31, 2022, total revenues of 49,781.36 crore, total net profit after tax of 3,735.63 crore, total comprehensive income
(net) of 3,931.93 crore and net cash outflows amounting to 2,035.19 crore for the year ended March 31, 2022, as considered in
the consolidated financial statements. The consolidated financial statements also include the Group's share of total net profit after
tax of 116.20 crore for the year ended March 31, 2022 and total comprehensive income (net) of 186.18 crore for the year ended
March 31, 2022, as considered in the consolidated financial statements, in respect of 2 associates and 12 joint ventures, whose
financial information has not been audited by us. This financial information has been audited by other auditors whose reports have
been furnished to us by the Parent's Management and our opinion on the consolidated financial statements, in so far as it relates to the
amounts and disclosures included in respect of these subsidiaries, joint ventures and associates, and our report in terms of subsection (3)
of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, joint ventures and associates is based solely on the reports
of the other auditors.
We did not audit the financial information of 1 joint operation included in the standalone financial statements of the entities included in
the Group, whose financial information reflects total assets of ₹1,067.79 crore as at March 31, 2022, total revenues of ₹352.96 crore,
total net profit after tax (net) of 11.91 crore, total comprehensive profit (net) of 11.91 crore and net cash inflows of 5.10 crore for
the year ended March 31, 2022, as considered in the respective standalone financial statements of the entities included in the Group.
This financial information of this joint operations have not been audited by the auditor whose financial information has been furnished
489
•
Integrated Annual Report 2021-22
LARSEN & TOUBRO
Reports
51(a)
12235.80
14410.73
127172.58
144377.58
2904.21
2947.95
3913.44
3125.70
39
8903.49
8831.89
38
24750.54
Management
Integrated
Statutory
Discussion and Analysis
Report
Financial
Statements
4512.09
(295.48)
Auditors' Report on Consolidated Financial Statements
We did not audit the financial information of 38 subsidiaries, whose financial information reflects total assets of 1,480.21 crore as at
March 31, 2022, total revenues of 987.76 crore, total net loss after tax of 60.62 crore, total comprehensive loss (net) of 56.43 crore
and net cash outflows amounting to ₹ 56.34 crore for the year March 31, 2022, as considered in the consolidated financial statements.
The consolidated financial statements also include the Group's share of total net loss after tax of 1.41 crore and total comprehensive
loss (net) of 1.46 crore for the year ended March 31, 2022, as considered in the consolidated financial statements, in respect of 3
associates and 2 joint ventures, whose financial information has not been audited by their respective auditors. This financial information
is unaudited and has been furnished to us by the Parent's Management and our opinion on the consolidated financial statements, in so
far as it relates to the amounts and disclosures included in respect of these subsidiaries, joint ventures and associates, is based solely on
such unaudited financial information. In our opinion and according to the information and explanations given to us by the Management,
these financial information are not material to the Group.
iv.
There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
the Parent Company and its subsidiary companies, associate companies and joint venture companies incorporated in India;
a.
The respective Managements of the Company and its subsidiaries which are companies incorporated in India whose
financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries
respectively that, to the best of their knowledge and belief, no funds (which are material either individually or in the
aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company or any of such subsidiaries to or in any other person(s) or entity(ies), including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
2.
V.
b.
C.
Company or any of such subsidiaries ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
The respective Managements of the Company and its subsidiaries which are companies incorporated in India whose
financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries
respectively that, to the best of their knowledge and belief, no funds (which are material either individually or in the
aggregate) have been received by the Company or any of such subsidiaries from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company
or any of such subsidiaries shall, directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; and
Based on the audit procedures that has been considered reasonable and appropriate in the circumstances performed by
us and those performed by the auditors of the subsidiaries which are companies incorporated in India whose financial
statements have been audited under the Act, nothing has come to our or other auditor's notice that has caused us or
the other auditors to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any material
mis-statement.
The amount of dividend is in accordance with Section 123 of the Act.
a.
iii.
to us by the Parent's Management, and our opinion in so far as it relates to the amounts and disclosures included in respect of this
joint operation, is based solely on the financial information. According to the information and explanations given to us by the Parent's
Management, the financial information of this entity are not material to the Group.
490
ii.
Our opinion on the consolidated financial statements above and our report on Other Legal and Regulatory Requirements below, is not
modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial
information certified by the Management.
Report on Other Legal and Regulatory Requirements
1.
As required by Section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditors on the
separate financial information of the joint operations, subsidiaries, associates and joint ventures referred to in the Other Matters section
above we report, to the extent applicable that:
a)
b)
c)
d)
f)
g)
h)
We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit of the aforesaid consolidated financial statements.
In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the
Consolidated Statement of Cash Flows and the Consolidated Statement of Changes in Equity dealt with by this Report are in
agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.
On the basis of the written representations received from the directors of the Parent Company as on March 31, 2022 taken
on record by the Board of Directors of the Company and the reports of the statutory auditors of its joint operation companies,
subsidiary companies, associate companies and joint venture companies incorporated in India, none of the directors of the Group
companies, its associate companies and joint venture companies incorporated in India is disqualified as on March 31, 2022 from
being appointed as a director in terms of Section 164 (2) of the Act.
With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such
controls, refer to our separate Report in "Annexure A" which is based on the auditors' reports of the Parent company, subsidiary
companies, associate companies and joint venture companies incorporated in India. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of internal financial controls over financial reporting of those companies.
With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of
the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the
Parent Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the
Group, its associates and joint ventures;
Provision has been made in the consolidated financial statements, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
1237.96
3923.39
87.43
4010.82
8224.98
(3693.78)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Report
Discussion and Analysis
Management
Corporate
Overview
496
139.55
92.55
(56.49)
80.04
Carried forward - Other comprehensive income
(31.14)
23.02
Income tax (expenses)/income on debt instruments through Other
comprehensive income
123.69
(79.51)
Debt instruments through Other comprehensive income
(51.76)
Consolidated Statement of Profit and Loss for the year ended March 31, 2022 (contd.)
43.71
crore
2021-22
(479.18)
(116.50)
Income tax (expenses)/income on effective portion of gains/(losses) on
hedging instruments in a cash flow hedge
1717.14
426.78
Effective portion of gains/(losses) on hedging instruments in a cash
flow hedge
95.28
32.27
(4.42)
6.69
Income tax (expenses)/income on exchange differences in translating
the financial statements of foreign operations
99.70
25.58
operations
Exchange differences in translating the financial statements of foreign
139.55
80.04
Brought forward - Other comprehensive income
2020-21
Note
4216.61
10194.12
119.70
80.35
56.18
B
Discontinued operations
10419.24
Profit for the year from continuing operations
128.19
43(f)
Share in profit/(loss) after tax of joint ventures/associates (net)
10291.05
Net profit after tax from continuing operations
48
Exceptional items (net of tax)
Deferred tax
Current tax
Tax expense on exceptional items:
(137.76)
(3556.02)
96.93
22.77
48.44
(186.20)
22.77
51(a)
Profit before tax from discontinued operations
Share in Other comprehensive income of joint ventures/associates (net)
Items that will be reclassified to profit or loss:
99738.51
Net profit after tax from discontinued operations
(13.69)
(25.53)
Income tax (expenses)/income on remeasurements of the net defined
benefit plans
57.40
105.88
Gain/(loss) on remeasurements of the net defined benefit plans
55.05
12921.28
8237.92
45(a)
51(a)
2552.58
4683.36
14.40
4668.96
55.05
Income tax (expenses)/income on equity instruments through Other
comprehensive income
Equity instruments through Other comprehensive income
A Items that will not be reclassified to profit or loss:
10419.24
Net profit after tax from continuing operations & discontinued operations
Other comprehensive income
10790.50
86700.90
Expenditure on research is expensed under respective heads of account in the period in which it is incurred
(ii) Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:
Corporate
Overview
The Group accounts for business combinations under acquisition method of accounting. Acquisition-related costs are recognised in the
Statement of Profit and Loss as incurred. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the condition for
recognition are recognised at their fair values at the acquisition date.
(g) Business combination/Goodwill on consolidation
When the Group has joint control of the arrangement based on contractually determined right to the assets and obligations for liabilities,
it recognises such interests as joint operations. Joint control exists when the decisions about the relevant activities (i.e. activities that
significantly affects the investee's returns) require unanimous consent of the parties sharing the control. In respect of its interests in joint
operations, the Group recognises its share in assets, liabilities, income and expenses line-by-line in the standalone financial statements
of the entity which is party to such joint arrangement, thereby forms part of the consolidated financial statements. Interests in joint
operations are included in the segments to which they relate.
(f) Interests in joint operations
When the Group's share of losses of a joint venture or an associate exceeds the Group's interest in that joint venture or the associate
(which includes any long-term interests that, in substance, form part of the Group's net investment in the joint venture or the associate),
the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the joint venture or the associate.
The carrying amount of investment in joint ventures and associates is reduced to recognise impairment, if any, when there is evidence of
impairment.
The unrealised profits/losses on transactions with joint ventures and associates are eliminated by reducing the carrying amount of
investment.
The results, assets and liabilities of joint ventures and associates are incorporated in the consolidated financial statements using equity
method of accounting after making necessary adjustments to achieve uniformity in application of accounting policies, wherever required.
An investment in joint venture or associate is initially recognised at cost and adjusted thereafter to recognise the Group's share of profit
or loss and other comprehensive income of the joint venture or associate. Gain or loss in respect of changes in Other Equity of joint
ventures or associates resulting from divestment or dilution of stake in the joint ventures and associates is recognised in the Statement
of Profit and Loss. On acquisition of investment in a joint venture or associate, any excess of cost of investment over the fair value of the
assets and liabilities of the joint venture and associate, is recognised as goodwill and is included in the carrying value of the investment
in the joint venture and associate. The excess of fair value of assets and liabilities over the investment is recognised directly in equity as
capital reserve.
When the Group has with other entities joint control of the arrangement and rights to the net assets of the joint arrangement, it
recognises its interest as joint ventures. Joint control exists when the decisions about the relevant activities (i.e. activities that significantly
affects the investee's returns) require unanimous consent of the parties sharing the control. When the Group has significant influence
over the other entity, it recognises such interest as investment in associates. Significant influence is the power to participate in the
financial and operating policy decisions of the entity but is not control or joint control over the entity.
(e) Investments in joint ventures and associates
(vi) The gains/losses in respect of divestment of stake resulting in ceding of control in subsidiary companies are recognised in the
Statement of Profit and Loss. The investment representing the interest retained in a former subsidiary, if any, is initially recognised
at its fair value with the corresponding effect recognised in the Statement of Profit and Loss as on the date the control is ceded.
Such retained interest is subsequently accounted as investment in an associate or a joint venture or as a financial asset.
The gains/losses in respect of part divestment/dilution of stake in subsidiary companies not resulting in ceding of control, are
recognised directly in other equity attributable to the owners of the Parent Company in the Consolidated Financial Statements of
the Group.
(v)
503
(iv) Non-controlling interests represent that part of the total comprehensive income and net assets of subsidiaries attributable to the
interest which is not owned, directly or indirectly, by the Parent Company.
Significant Accounting Policies (contd.)
NOTE [1] (II)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
502
(ii) Consolidation of a subsidiary begins when the Parent Company, directly or indirectly, obtains control over the subsidiary and ceases
when the Parent Company, directly or indirectly, loses control of the subsidiary. Income and expenses of a subsidiary acquired are
included in the Consolidated Statement of Profit and Loss from the date the Parent Company, directly or indirectly, gains control
until the date when the Parent Company, directly or indirectly, ceases to control the subsidiary.
The consolidated financial statements incorporate the financial statements of the Parent Company and its subsidiaries. For this
purpose, an entity which is, directly or indirectly, controlled by the Parent Company is treated as subsidiary. The Parent Company
together with its subsidiaries constitute the Group. Control exists when the Parent Company, directly or indirectly, has power over
the investee, is exposed to variable returns from its involvement with the investee and has the ability to use its power to affect its
returns.
(i)
(iii) The consolidated financial statements of the Group combine financial statements of the Parent Company and its subsidiaries
line-by-line by adding together the like items of assets, liabilities, income and expenses. All intra-group assets, liabilities, income,
expenses and unrealised profits/losses on intra-group transactions are eliminated on consolidation. The accounting policies of
subsidiaries are harmonised to ensure the consistency with the policies adopted by the Parent Company. The consolidated financial
statements are presented to the extent possible, in the same manner as Parent Company's standalone financial statements.
Profit or loss and other comprehensive income are attributed to the owners of the Parent Company and to the non-controlling
interests, shown separately in the financial statements.
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
504
Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected
total contract cost as at the reporting date.
Determining the revenue to be recognised in case of performance obligation satisfied over a period of time. Revenue recognition is
done by measuring the progress towards complete satisfaction of performance obligation.
b.
a.
Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged off in profit & loss
immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfill
a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of
actual cost incurred to date, to the total estimated cost attributable to the performance obligation.
Significant judgments are used in:
The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Transaction price is the
amount of consideration to which the Group expects it to be entitled in exchange for transferring goods or services to a customer
excluding amounts collected on behalf of a third party. The Group includes variable consideration as part of transaction price when
there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of
cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.
(c) there is no alternative use of the asset and the company has either explicit or implicit right of payment considering legal precedents.
In all other cases, performance obligation is considered as satisfied at a point in time.
(b) the customer controls the asset as it is being created/enhanced by the company's performance or
(a) the customer simultaneously consumes the benefit of the company's performance or
The Group transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue over
a period of time if one of the following criteria is met:
For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction
of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to date, to the total estimated cost
attributable to the performance obligation.
Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods or
services to a customer.
Revenue recognition
Operating cycle for the business activities of the Group covers the duration of the specific project or contract or product line or service
including the defect liability period wherever applicable and extends up to the realisation of receivables (including retention monies)
within the agreed credit period normally applicable to the respective lines of business.
(i)
(h) Operating cycle for current and non-current classification
Business combinations arising from transfers of interests in entities that are under common control are accounted using pooling of
interest method. The difference between consideration given and the aggregate historical carrying amounts of assets and liabilities of the
acquired entity are recorded in shareholders' equity.
Goodwill arising on consolidation is tested for impairment annually and not amortised. In the event of cessation of operations of a
subsidiary, the unimpaired goodwill is written off fully.
Goodwill on consolidation is allocated to cash generating units or group of cash generating units that are expected to benefit from the
acquisition.
Goodwill arising on consolidation of acquisitions represents the excess of (a) consideration paid for acquiring control and (b) acquisition
date fair value of previously held ownership interest, if any, in a subsidiary over the Group's share in the fair value of the net assets
(including identifiable intangibles) of the subsidiary as on the date of acquisition of control. Where the fair value of the identifiable assets
and liabilities exceed the cost of acquisition, the excess is recognised as Capital Reserve.
Significant Accounting Policies (contd.)
NOTE [1] (II)
(d) Basis of consolidation
Amounts in the financial statements are presented in Indian Rupees in crore [1 crore = 10 million] rounded off to two decimal places as
permitted by Schedule III to the Act. Per share data are presented in Indian Rupees to two decimal places.
The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 (the Act). The Statement of Cash Flows has been prepared and presented
in accordance with Ind AS 7 "Statement of Cash Flows". The disclosures with respect to items in the Balance Sheet and Statement of
Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along
with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended.
(c) Presentation of financial statements
For DELOITTE HASKINS & SELLS LLP
In terms of our report attached
3. Previous year's figures have been regrouped/reclassified wherever applicable.
2. Fixed assets include property, plant and equipment, investment property and intangible assets adjusted for movement of (a) capital work-in-progress
for property, plant and equipment and investment property and (b) Intangible assets under development during the year.
1. Statement of Cash Flows has been prepared under the indirect method as set out in the Indian Accounting Standard (Ind AS) 7 "Statement of Cash
Flows" as specified in the Companies (Indian Accounting Standards) Rules, 2015.
13373.52
13770.24
(1.86)
(90.11)
11324.57
2140.92
314.42
13373.52
82.30
(15274.38)
(15181.48)
(3184.42)
(2812.33)
(203.57)
(155.59)
(381.64)
(407.20)
(3650.89)
(2528.38)
66.73
143.82
796.02
(6151.20)
(38839.86)
(1019.59)
(35806.44)
2739.13
Chartered Accountants
Notes forming part of the Consolidated Financial Statements (contd.)
Firm's Registration No. 117366W/W-100018
SANJIV V. PILGAONKAR
Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the levels of the fair value
hierarchy unless the circumstances change warranting such transfer.
(iii) Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.
(ii) Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the assets or liabilities, either directly
or indirectly; and
(i) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at
measurement date;
Fair value measurements are categorised as below based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety:
The Group maintains its accounts on accrual basis following historical cost convention, except for certain assets and liabilities that are
measured at fair value in accordance with Ind AS.
(b) Basis of accounting
The Group's financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto issued
by the Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In addition, the guidance notes/announcements
issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory
promulgations require a different treatment. These financials statements have been approved for issue by the Board of Directors at its
meeting held on May 12, 2022.
(a) Statement of compliance
Significant Accounting Policies
NOTE [1] (II)
The principal activities of the Group, its Joint Ventures and associates consist of providing Engineering and Construction solutions in key
sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence Engineering, Information Technology and Financial
Services. Further details of the business operations of the Group are mentioned in Note [46] Segment Information.
The Consolidated Financial Statements comprise financial statements of "Larsen & Toubro Limited" ("L&T", the "Parent Company") and its
subsidiaries (collectively referred to as "the Group") for the year ended March 31, 2022.
Company Overview
NOTE [1](1)
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
501
Company Secretary & Compliance Officer
Membership No. FCS3939
SIVARAM NAIR A
Mumbai, May 12, 2022
M. M. CHITALE
Independent Director
(DIN 00101004)
Whole-time Director & Chief Financial Officer
(DIN 00019798)
R. SHANKAR RAMAN
Chief Executive Officer & Managing Director
(DIN 02255382)
S. N. SUBRAHMANYAN
Membership No. 39826
Partner
by the hand of
15.85
36258.60
NOTE [1] (II)
C. Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.
Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation and other claims, which
are not ascertainable/acknowledged by customers are not taken into account.
(i)
in the case of an individual asset, at the higher of fair value less costs to sell and the value-in-use; and
(ii) in the case of a cash generating unit (the smallest identifiable group of assets that generates independent cash flows), at the higher
of the cash generating unit's fair values less costs to sell and the value-in-use.
(The amount of value-in-use is determined as the present value of estimated future cash flows from the continuing use of an asset,
which may vary based on the future performance of the entity and from its disposal at the end of its useful life. For this purpose, the
discount rate (pre-tax) is determined based on the weighted average cost of capital of the company suitably adjusted for risks specified
to the estimated cash flows of the asset).
If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised
immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is
reduced to its recoverable amount. For this purpose, the impairment loss recognised in respect of a cash generating unit is allocated first
to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to reduce the carrying amount of the
other assets of the cash generating unit on a pro-rata basis.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit), except for allocated
goodwill, is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss is recognised for the asset (or cash generating unit) in prior
years. A reversal of an impairment loss (other than impairment loss allocated to goodwill) is recognised immediately in the Statement of
Profit and Loss.
(p) Employee benefits
(i)
(ii)
Short-term employee benefits:
Employee benefits such as salaries, wages, short term compensated absences, bonus, ex-gratia, and performance-linked rewards
falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in
the period in which the employee renders the service.
Post-employment benefits:
A. Defined contribution plans: The Group's superannuation scheme, state governed provident fund scheme, employee state
insurance scheme, social security contributions and employee pension scheme are defined contribution plans. The contribution
paid/payable under the schemes is recognised during the period in which the employee renders the service.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:
508
Research and development expenditure on new products:
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if
any, including borrowing costs capitalised for qualifying assets and reduced by accumulated amortisation and cumulative impairment. All
directly attributable costs and other administrative and other general overhead expenses that are specifically attributable to acquisition of
intangible assets are allocated and capitalised as a part of the cost of the intangible assets.
(n) Intangible assets
Properties (including those under construction) held to earn rentals and/or capital appreciation are classified as investment property and
are measured and reported at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with
the Group's accounting policy. Policies with respect to depreciation, useful life and derecognition are on the same basis as stated in PPE
supra.
(m) Investment property
PPE is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on
derecognition is recognised in the Statement of Profit and Loss in the same period.
Depreciation on additions to owned assets is calculated pro rata from the date it is ready for use.
Where cost of a part of the asset ("asset component”) is significant to total cost of the asset and useful life of that part is different from
the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is depreciated
over its separate useful life.
Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is
allocated over its remaining useful life.
Depreciation is recognised using straight-line method so as to write off the cost of the assets (other than freehold land and capital
work-in-progress) less their residual values over their useful life specified in Schedule II to the Act, or in case of assets where the useful
life was determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year
end to reflect the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful life and
residual values are also reviewed at each financial year end with the effect of any change in the estimates of useful life/residual value is
accounted on prospective basis.
PPE not ready for the intended use on the date of the Balance Sheet are disclosed as "capital work-in-progress". (Also refer to the
policies on leases, borrowing costs, impairment of assets and foreign currency transactions Infra).
Significant Accounting Policies (contd.)
NOTE [1] (II)
(i)
As at the end of each accounting year, the carrying amounts of PPE, investment property and intangible assets are reviewed to determine
whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the PPE, investment property
and intangible assets are tested for impairment so as to determine the impairment loss, if any. Goodwill and the intangible assets with
indefinite useful life are tested for impairment each year.
(o) Impairment of assets
(ix) Amortisation on impaired assets is provided by adjusting the amortisation charge in the remaining periods so as to allocate the
asset's revised carrying amount over its remaining useful life.
A.
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
B.
the Group has intention to complete the intangible asset and use or sell it;
C.
the Group has ability to use or sell the intangible asset;
D.
E.
the manner in which the probable future economic benefits will be generated including the existence of a market for output
of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
F.
the Group has ability to reliably measure the expenditure attributable to the intangible asset during its development.
Development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.
Fare collection rights obtained in consideration for rendering construction services represent the right to collect fare during the
concession period in respect of Build-Operate-Transfer (BOT) projects undertaken by the Group. Fare collection rights are capitalised
as intangible asset upon completion of the project at the cumulative construction costs including related margins.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as "intangible assets under
development".
507
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
Intangible assets are amortised on straight-line basis over the estimated useful life. The method of amortisation and useful life are
reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a prospective
basis. The estimated useful life for major categories of the intangible assets are as follows:
(i) Specialised software: over a period of three to ten years;
(ii) Technical know-how: over a period of three to seven years;
(iii) New product design and development: over a period of five years;
(iv) Customer contracts and relationship: over a period of the contract which generally is over three to ten years;
(v) Trade name: over a period of three months to five years;
(vi) Rights under licensing agreement: over a period of six years;
(vii) Intangible assets with indefinite useful life that are acquired separately are carried at cost less accumulated impairment losses;
(viii) Fare collection rights are amortised using the straight-line method over the period of concession; and
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
H.
G.
Significant Accounting Policies (contd.)
NOTE [1] (II)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
505
Revenue from contracts for rendering of engineering design services and other services which are directly related to the
construction of an asset is recognised on the same basis as stated in (i) B Supra.
material basis is recognised over a period of time when relevant services are rendered and related costs are incurred. Revenue from
fixed price contracts is recognised over a period of time using the proportionate completion method.
In respect of information technology business and technology services business, revenue from contracts awarded on time and
Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.
Revenue from rendering of services is recognised over time as the customer receives the benefit of the company's performance and
the company has an enforceable right to payment for services transferred.
In the case of the developmental project business and the realty business, revenue includes profit on sale of investment properties
or sale of stake in the subsidiary and/or joint venture companies as the sale/divestments are inherent in the business model.
Rendering of services
Revenue from property development activities is recognised when performance obligation is satisfied, customer obtains control of
the property transferred and a reasonable expectation of collection of the sale consideration from the customer exists.
Revenue from construction/project contracts executed under joint operations [in terms of Ind AS 111 "Joint Arrangements"], is
recognised on the same basis as adopted in respect of contracts independently executed by the Group.
Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the extent
the carrying amount of the contract asset exceeds the remaining amount of consideration that the company expects to receive
towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining performance
obligations). The Group recognises impairment loss (termed as provision for expected credit loss on contract assets in the financial
statements) on account of credit risk in respect of a contract asset using expected credit loss model on similar basis as applicable to
trade receivables.
For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the case
may be) exceeds the progress billing, the surplus is shown as contract asset and termed as "Due from customers". For contracts
where progress billing exceeds the aggregate of contract costs incurred to date plus recognised profits (or minus recognised losses,
as the case may be), the surplus is shown as contract liability and termed as "Due to customers". Amounts received before the
related work is performed are disclosed in the Balance Sheet as contract liability and termed as "Advances from customer". The
amounts billed on customer for work performed and are unconditionally due for payment i.e. only passage of time is required
before payment falls due, are disclosed in the Balance Sheet as trade receivables. The amount of retention money held by the
customers pending completion of performance milestone is disclosed as part of contract asset and is reclassified as trade receivables
when it becomes due for payment.
Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control
is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents the cost of work
performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion
is the proportion of cost of work performed to date, to the total estimated contract costs.
Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the extent
performance obligations have been satisfied. The amount of transaction price allocated to the performance obligations
satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer.
Revenue from construction/project related activity is recognised as follows:
Revenue is recognised when the control of the same is transferred to the customer and it is probable that the Group will collect
the consideration to which it is entitled for the exchanged goods. Revenue from commissioning of complex plant and equipment is
recognised either 'over time' or 'in time' based on assessment of the transfer of control as per the terms of the contract.
Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of complex plant and
equipment is recognised as follows:
F.
E.
D.
C.
B.
A.
In respect of financial services business and finance lease activity, income from interest-bearing loans/lease is recognised on accrual
basis over the life of the loans/lease based on the effective yield. Income from bill discounting, advisory and syndication services and
other financing activities is accounted on accrual basis.
Significant Accounting Policies (contd.)
Revenue on account of construction services rendered in connection with Build-Operate-Transfer (BOT) projects undertaken by
the Group is recognised during the period of construction using percentage of completion method. After the completion of
construction period, revenue from fare/toll charges from users of facilities is accounted when they are collected.
Commission income is recognised when the terms of the contract are fulfilled.
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
506
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general overhead
expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and
capitalised as a part of the cost of the PPE.
All directly attributable costs related to the acquisition of PPE and borrowing costs in case of qualifying assets are capitalised in
accordance with the Group's accounting policy.
PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and
cumulative impairment, if any.
Property, Plant and Equipment (PPE)
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the
performance of the Group is treated as an exceptional item and the same is disclosed in Statement of Profit and Loss and in the notes
forming part of the financial statements.
Exceptional items
Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the Group and the amount of income can be measured reliably.
Government grants, which are revenue in nature and are towards compensation for the qualifying costs incurred by the Group,
are recognised as other income/reduced from underlying expenses in profit or loss in the period in which such costs are incurred.
Government grants related to an asset are reduced from the cost of an asset until the asset is ready to use and the grant post that
is presented as deferred income. Subsequently the grant is recognised as income in profit or loss on a systematic basis over the
expected useful life of the related asset. Government grant receivable in the form of duty credit scrips is recognised as other income
in the Statement of Profit and Loss in the period in which the application is made to the government authorities and to the extent
there is no uncertainty towards its receipt.
Dividend income is accounted in the period in which the right to receive the same is established.
D.
C.
B.
A. Interest income on investments and loans is accrued on a time basis by reference to the principal outstanding and the
effective interest rate including interest on investments classified as fair value through profit or loss or fair value through other
comprehensive income. Interest receivable on customer dues is recognised as income in the Statement of Profit and Loss on accrual
basis provided there is no uncertainty of realisation.
(I)
(k)
(j) Other income
N. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the
performance obligation is satisfied and the right to receive the income is established as per the terms of the contract.
M. Revenue from operation and maintenance services of power plant receivable under the Power Purchase Agreement is recognised on
accrual basis.
Revenue from charter hire is recognised as per the terms of the time charter agreement.
Income from investment management fees is recognised in accordance with the contractual terms and the SEBI regulations based
on average Assets Under Management (AUM) of mutual fund schemes over the period of the agreement in terms of which services
are performed. Portfolio management fees are recognised in accordance with the related contracts entered into with the clients
over the period of the agreement. Trusteeship fees are accounted on accrual basis.
Course fees/subscription income is recognised over time as per the course/subscription duration and agreed terms.
L.
K.
J.
I.
10.97
24654.13
Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance.
Payment terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the
transaction price and accounted as interest income.
2021-22
14410.73
12235.80
Discontinued operations
10790.50
Profit before tax including discontinued operations (excluding exceptional items)
14410.73
23026.30
Adjustments for:
Continuing operations
Dividend received
(28.47)
Depreciation, amortisation, impairment and obsolescence
2947.95
2904.21
Exchange difference on items grouped under financing/investing activities
(108.09)
(75.47)
Effect of exchange rate changes on cash and cash equivalents
(4.12)
Profit before tax (excluding exceptional items) from:
2020-21
2021-22
Firm's Registration No. 117366W/W-100018
by the hand of
SANJIV V. PILGAONKAR
Partner
Membership No. 39826
Mumbai, May 12, 2022
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Whole-time Director & Chief Financial Officer
(DIN 00019798)
SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
M. M. CHITALE
Independent Director
(DIN 00101004)
499
Integrated Annual Report 2021-22
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows for the year ended March 31, 2022
crore
A. Cash flow from operating activities:
(41.25)
74.98
Unrealised (gain)/loss on finance leases
Finance costs
0.23
(Gain)/loss on de-recognition of lease liability/right-of-use assets
(6.11)
(15.78)
Interest expenses/(income) related to discontinued operations
Operating profit before working capital changes
Adjustments for:
18959.08
1.16
16346.93
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
(9833.40)
3011.51
(74.33)
348.90
Increase/decrease) in trade payables and customer advances
9659.71
2219.78
Cash generated from operations before financing activities
18711.06
21927.12
Impairment recognised on non-current assets held for sale
Chartered Accountants
151.26
Impairment of investment in debt instruments
Interest income
(Profit)/loss on sale of fixed assets (net)
(Profit)/loss on sale/fair valuation of investments (net)
(Gain)/loss on disposal of discontinued operations
Employee stock option-discount
(14.55)
3125.70
3913.44
(1053.65)
(1375.68)
(17.60)
(528.81)
(440.14) (1118.77)
(10707.92)
135.31
137.67
Non-cash items related to discontinued operations
3.13
(Gain)/loss on disposal of subsidiary
(1.65)
12.00
(Increase)/decrease in loans and advances towards financing activities
For DELOITTE HASKINS & SELLS LLP
98.20 55.62 82126.65 12966.07 95092.72
Debt Equity
instruments instruments
Capital
Capital
redemption
Employee
reserve
Securities
premium
options
share Statutory Retained
reserves earnings translation
Items of Other comprehensive income
Foreign
currency
through
Other
through Total other
Other equity
Non-
controlling
interests
Total
reserve
reserve
Hedging
Reserves and surplus-
crore
Balance as at 31-3-2022
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Consolidated Statement of Changes in Equity for the year ended March 31, 2022 (contd.)
Particulars
Balance as at 31-3-2021
Profit for the year (c)
Other comprehensive income for the year (d)
Total comprehensive income for the year (c+d)
crore
2020-21
Transfer to non-financial assets/liabilities
Transfer from/(to) retained earnings
Employee share options (net)
Dividend paid
Net gain/(loss) on transactions with non-controlling
interests
Decrease in non-controlling interest due to dilution/
divestment/acquisition
(net)
compre-
compre-
reserve
1.12
1.12
33.10
(12.70)
0.75
27.20
(47.60)
(2528.46)
3.77
0.75
90.35
91.10
(2528.46) (494.99) (3023.45)
---- 3.77 (3.77)
12.05
12.05 (535.93) (523.88)
282.44
335.10 8718.74 371.65 3710.47 67139.90
696.00
718.53
1.12
In terms of our report attached
'
1749.91 10419.24
108.97 438.35
1858.88 10857.59
hensive
hensive
income
income
282.44 302.00 8667.65 383.60
3683.27 60955.94 665.45 485.10
162.40
(0.23) 75587.62
12051.53 87639.15
8669.33
74.87
30.55
232.31
8744.20
30.55
(64.20)
232.31 (64.20)
I
51.09
8669.33
55.85 329.38
55.85 8998.71
51.09
51.09
5004.65
Issue of equity shares
Cash generated from operations
Repayment of lease liability [Note 50]
Interest paid on lease liability
Interest paid (including cash flows on account of interest rate swaps)
Net (decrease)/increase in cash and cash equivalents (A + B + C)
Cash and cash equivalents at beginning of the year [Note 14]
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents for discontinued operations (classified as held for sale)
Cash and cash equivalents at end of the year [Note 14]
Dividends paid
Notes:
(55.07)
Cash and cash equivalents of subsidiaries discharged pursuant to (divestment)/classification to held for sale
Net cash (used in)/from investing activities
(121.77)
(87.85)
9.91
Cash and cash equivalents acquired pursuant to acquisition of subsidiaries
Consideration paid on acquisition of subsidiaries
11530.82
7.07
13.69
295.78
Settlement of derivative contracts related to borrowings
Proceeds from/(repayment of) other borrowings (net) [Note 50]
4617.71
(3667.68)
(5658.52)
500
Corporate
Overview
Management
Integrated
Payment (to)/from non-controlling interest (net)
Discussion and Analysis Report
Statements
LARSEN & TOUBRO
Consolidated Statement of Cash Flows for the year ended March 31, 2022 (contd.)
C. Cash flow from financing activities:
Proceeds from issue of share capital (including share application money) [net]
Proceeds from non-current borrowings [Note 50]
Repayment of non-current borrowings [Note 50]
Statutory Financial
Reports
28.47
Net cash (used in)/from financing activities
Net proceeds/(payments) for transfer of discontinued operations (net of tax)
Sale of non-current investments
(1873.24)
885.36
70.75
(2156.24)
(1807.70)
(3110.63)
Purchase of non-current investments
Sale of fixed assets
1026.06
Purchase of fixed assets
23073.82
19163.58
Net cash (used in)/from operating activities
(3471.01)
4.12
1005.73
(59.52)
Direct taxes refund/(paid) [net]
26544.83
23715.71
B. Cash flow from investing activities:
240.19
(4552.13)
1437.04
(Purchase)/sale of current investments (net)
Consideration received on disposal of subsidiaries
Dividend received from other investments
156.83
Dividend received from joint ventures
1273.47
968.55
Interest received
688.10
(151.59)
174.38
(148.03)
Deposits/loans given to associates, joint ventures and third parties
(2729.33)
Change in other bank balance and cash not available for immediate use
(16841.55)
133.75
107.67
8.17
(5.18)
136.33
4435.40
Buildings
11.29
1003.29
135.36
4.24
11.69 (183.75)
1179.59
Sub total
4467.05
12.90
1.61
878.56
2.51
1.61
11.29
Owned
9736.79
I
983.69 (0.50)
Plant & equipment
3326.56
3258.22
206.34
230.28
1002.49
30.80
(5.31)
157.53
1168.30
990.39
12.90
| | |
146.65
year
Leasehold
crore
Depreciation
Transfer
(to) / from
Cost
Transfer
(to) / from
inventories
Business
As at
1-4-2021 combination
Class of assets
Statements
Reports
Report
Discussion and Analysis
Overview
Financial
Statutory
Integrated
Impairment
Management
Property, Plant and Equipment and Capital work-in-progress
NOTE [2]
Notes forming part of the Consolidated Financial Statements (contd.)
516
On March 23, 2022, Ministry of Corporate Affairs amended Ind AS 16 (specifying accounting of net sale proceeds generated while preparing
the asset for its intended use), Ind AS 37 (specifying the composition of the cost of fulfilling the contract), Ind AS 103 (specifying the
criteria for applying acquisition method for recognising assets and liabilities) and Ind AS 109 (specifying which fees to be included to apply
10 per cent test). These amendments are effective from April 1, 2022 and will not have material impact on Group's Consolidated Financial
Statements.
Recent Pronouncement
NOTE [1](IV)
Based on assessment of the impact of COVID-19 pandemic on the business/economic conditions, the Group expects to recover the carrying
value of its assets. The Group will continue to evaluate the pandemic-related uncertainty and update its assessment.
NOTE [1](III)
The preparation of financial statements in conformity with Ind AS requires that the management of the Group makes estimates and
assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and
the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions
made by the management are explained under respective policies. Revisions to accounting estimates include useful life of property, plant
and equipment & intangible assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, expected
cost of completion of contracts, provision for rectification costs, fair value/recoverable amount measurement etc. Difference, if any,
between the actual results and estimates is recognised in the period in which the results are known.
(ae) Key sources of estimation
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for
general use as at the date of Balance Sheet.
all other items for which the cash effects are investing or financing cash flows.
iii.
Corporate
Book value
Foreign Classified
Additions
1032.94
856.64
856.64
4.24
(183.75)
11.69
1032.94
Freehold
Land
Property
Investment
Investment
Property
31-3-2022 31-3-2021
As at
As at
Up to
31-3-2022
Up to
and
fluctuation
currency as held for
sale
As at
Deductions 31-3-2022
Up to
31-3-2021 combination
Business
146.65
For the inventories
17.49
and
fluctuation
currency as held for
sale
Deductions
Up to
31-3-2022 31-3-2021
Foreign Classified
1777.34
Leased out
802.93
(0.05)
52.22
0.54
589.72
Owned
Office equipment
725.34 496.55
1347.04
51.06
0.87
1.56
1.49 272.35
1123.57
2072.38
53.14
1.12
6.27
496.55
725.34
51.06 1340.77
0.87
4718.36
4056.93
1.62
Leased out
0.02
Sub total
481.84
12.87
0.26
313
1.33
(0.03)
70.53
0.51
422.63
630.34
13.38
29.55
0.35
1.33
0.51 70.53 (0.03)
422.63
630.32
13.38
0.35
616
1.62
52.22 (0.05)
0.54
589.74
0.02
743.41
5197.24
207.04
4572.05
9283.72
1777.34
17.49
26.06
983.69
10033.82
Sub total
107.94
118.65
204.94
818.78 (0.35)
15.85
323.59
26.56
297.03
ii. non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and
3938.28 4610.42
29.55
743.41
4992.30
207.04
13.80
(0.35)
189.09
8960.13 4382.96
13.80
Owned
' '
6.27
6.27
1.56
272.35
49
1.49
1117.30
2066.11
53.14
12
Computers
1.12
2.42
502.03
2.07
1620.12
Sub total
6.27
Leased out
2.42
502.03
2.07
1613.85
བྲཱ'བ
i. changes during the period in inventories and operating receivables and payables, transactions of a non-cash nature;
Significant Accounting Policies (contd.)
(ad) Statement of Cash Flows
(i) Low value leases; and
(ii) Leases which are short term.
509
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
Assets given on lease are classified either as operating lease or as finance lease. A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset. Asset held under finance lease is initially recognised
in balance sheet and presented as a receivable at an amount equal to the net investment in the lease. Finance income is recognised over
the lease term, based on a pattern reflecting a constant periodic rate of return on Groups' net investment in the lease. A lease which is
not classified as a finance lease is an operating lease.
The Group recognises lease payments in case of assets given on operating leases as income on a straight-line basis. The Group presents
underlying assets subject to operating lease in its balance sheet under the respective class of asset.
(Also refer to policy on depreciation, supra)
(r) Financial instruments
Financial assets and/or financial liabilities are recognised when the Group becomes party to a contract embodying the related financial
instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and
where such values are different from fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from, as the case may be, the fair value of such financial assets or liabilities on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.
A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally
enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the
liability simultaneously.
510
(i)
Financial assets
1.
A. All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, as follows:
Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value
2.
Other investments in debt instruments - at amortised cost (unless the same are designated as fair value through profit or
loss), subject to following conditions:
•
The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and
B.
Lease payments associated with following leases are recognised as expense on straight-line basis:
The right-of-use asset is measured by applying cost model i.e. right-of-use asset at cost less accumulated depreciation and impairment
losses. The right-of-use asset is depreciated using the straight-line method from the commencement date to the end of the lease term
or useful life of the underlying asset whichever is earlier. Carrying amount of lease liability is increased by interest on lease liability and
reduced by lease payments made.
The lease liability is initially measured at the present value of the lease payments, discounted using the Group's incremental borrowing
rate. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, or a change in the
estimate of the guaranteed residual value, or a change in the assessment of purchase, extension or termination option. When the lease
liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Initially the right-of-use asset is measured at cost which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, as reduced by any lease incentives received.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity
at that time remains in equity and is recognised in profit or loss when the forecast transaction is ultimately recognised in profit
or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised in
profit or loss.
The cash flow hedges are allocated to the forecast transactions on gross exposure basis. Where the hedged forecast
transaction results in the recognition of a non-financial asset, such gains/losses are transferred from hedge reserve (but not as
reclassification adjustment) and included in the initial measurement cost of the non-financial asset.
In case of time period related hedges, the premium element and the spot element of a forward contract is separated and
only the change in the value of the spot element of the forward contract is designated as the hedging instrument. Similarly,
wherever applicable, the foreign currency basis spread is separated from the financial instrument and is excluded from the
designation of that financial instrument as the hedging instrument in case of time period related hedges. The changes in the
fair value of the premium element of the forward contract or the foreign currency basis spread of the financial instrument is
accumulated in a separate component of equity as 'cost of hedging reserve'. The changes in the fair value of such premium
element or foreign currency basis spread are reclassified to profit or loss as a reclassification adjustment on a straight-line basis
over the period of the forward contract or the financial instrument.
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (II)
3.
Significant Accounting Policies (contd.)
Defined benefit plans: The employees' gratuity fund schemes and employee provident fund schemes managed by board of
trustees established by the company, the post-retirement medical care plan and the Parent Company pension plan represent
defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial
valuation using the Projected Unit Credit Method.
The obligation towards defined benefit plans is measured at the present value of the estimated future cash flows using a discount
rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of
the defined benefit obligations at the Balance Sheet date.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the
Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is recognised in
the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan are recognised when
the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the
Group recognises related restructuring costs or termination benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to
recognise the obligation on a net basis.
(iii) Long term employee benefits:
The obligation recognised in respect of long term benefits such as compensated absences, long service award etc. is measured at
present value of estimated future cash flows expected to be made by the Group and is recognised in a similar manner as in the case
of defined benefit plans vide (ii) B Supra.
Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefits
expenses. Interest cost implicit in long term employee benefit costs is recognised in the Statement of Profit and Loss under finance
cost.
(iv) Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised as expense when the company's
offer of the termination benefit can no longer be withdrawn or when the Group recognises the related restructuring costs,
whichever is earlier.
(q) Leases
Assets taken on lease are accounted as right-of-use assets and the corresponding lease liability is recognised at the lease commencement
date.
B.
(iv) Compound financial instruments issued by the Group which can be converted into fixed number of equity shares at the option
of the holders irrespective of changes in the fair value of the instrument are accounted by recognising the liability and the
equity components separately. The liability component is initially recognised at the fair value of a comparable liability that
does not have an equity conversion option. The equity component is initially recognised at the difference between the fair
value of the compound financial instrument as a whole and the fair value of the liability component. The directly attributable
transaction costs are allocated to the liability and the equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of the compound financial instrument is measured at amortised
cost using the effective interest method. The equity component of a compound financial instrument is not remeasured
subsequently.
4.
6.
On derecognition of a financial asset in its entirety, the difference between the carrying amount at the date of derecognition
and the consideration received is recognised in profit or loss.
Impairment of financial assets: The Group recognises impairment loss on trade receivables using expected credit loss model
which involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted under Ind AS
109 and is adjusted for forward looking information.
For all other financial assets, expected credit losses are recognised based on the difference between the contractual cashflows
and all the expected cash flows, discounted at the original effective interest rate. ECLs are measured at an amount equal to
12-month expected credit losses or at an amount equal to lifetime expected credit losses if the credit risk on the financial asset
has increased significantly since initial recognition.
In respect of financial services business, the Group applies a separate model of the expected credit loss for recognising
impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade
receivables and other contractual rights to receive cash or other financial asset and financial guarantees not designated as at
FVTPL as follows:
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the
weights. Credit loss is the difference between all contractual cash flows that are due to the Group in accordance with
the contract and all the cash flows that the Group expects to receive (i.e. all cash shortfalls), discounted at the original
effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial
assets). The Group estimates cash flows by considering all contractual terms of the financial instrument (for e.g.
prepayment, extension, call and similar options) through the expected life of that financial instrument.
The loss allowance for a financial instrument is measured at an amount equal to the lifetime expected credit losses if the
credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial
instrument has not increased significantly since initial recognition, the loss allowance for that financial instrument is
measured at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the
lifetime expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12
months weighted by the probability of default after the reporting date and thus, are not cash shortfalls that are predicted
over the next 12 months.
When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the
change in the risk of a default occurring over the expected life of the financial instrument is used instead of the change in
the amount of expected credit losses. To make that assessment, the risk of a default occurring on the financial instrument
as at the reporting date is compared with the risk of a default occurring on the financial instrument as at the date of
initial recognition using reasonable and supportable information, that is available without undue cost or effort.
(ii) Financial liabilities
A.
Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL are
subsequently measured at fair value. Financial guarantee contracts are subsequently measured at the amount of impairment
loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher. All other financial
liabilities including loans and borrowings, trade and other payables are initially recognised at fair value and subsequently
measured at amortised cost using Effective Interest Rate (EIR) method.
B. A financial liability is derecognised when the related obligation expires or is discharged or cancelled.
(iii) The Group designates certain hedging instruments such as derivatives, embedded derivatives and in respect of foreign currency risk,
certain non-derivatives as either fair value hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of
foreign exchange risk on firm commitments are accounted as cash flow hedges.
511
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
A.
B.
Fair value hedges: Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are
recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated,
or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the
hedged item arising from the hedged risk is amortised to profit or loss from that date.
Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of derivatives that
are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in equity as
'hedging reserve'. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts
previously recognised in other comprehensive income and accumulated in equity relating to the effective portion are
reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same head as the hedged item.
The effective portion of the hedge is determined at the lower of the cumulative gain or loss on the hedging instrument from
inception of the hedge and the cumulative change in the fair value of the hedged item from the inception of the hedge and
the remaining gain or loss on the hedging instrument is treated as ineffective portion.
0.01
the group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a pass-through arrangement; and a) the group
has transferred substantially all the risks and rewards of the asset, or b) the group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
2.
D.
the right to receive cash flows from the asset has expired, or
7.
•
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)
•
The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and
selling financial assets; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Debt instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in profit or
loss.
Investments in equity instruments are classified as FVTPL, unless the related instruments are not held for trading and the
Group irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income.
Trade receivables, security deposits, cash and cash equivalents, employee and other advances - at amortised cost.
The Group has elected to measure the investments in associates and joint ventures held through unit trusts at FVTPL.
For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for impairment and
exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other than on
account of above income or expense) are recognised in other comprehensive income and accumulated in other equity. On
disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified
to profit or loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on
disposal of investments.
5.
Corporate
Overview
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (II)
Significant Accounting Policies (contd.)
C.
A financial asset is primarily derecognised when:
1.
Management
(s) Inventories
Inventories are valued after providing for obsolescence, as under:
(i) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net
realizable value. However, these items are considered to be realisable at cost if the finished products in which they will be used, are
expected to be sold at or above cost.
(aa) Provisions, contingent liabilities and contingent assets
Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity or in case of business
combination, is recorded along with the tax as applicable.
Deferred tax assets in respect of unutilised tax credits which mainly relate to minimum alternate tax are recognised, to the extent it is
probable that such unutilised tax credits will get realised, in the period in which such determination is made.
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head "capital gains"/other temporary
differences are recognised and carried forward to the extent of available taxable temporary differences or where there is convincing
other evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying
amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Group's financial
statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or
substantively enacted as on the Balance Sheet date.
Tax on income for the current period is determined on the basis of taxable income (or on the basis of book profits wherever minimum
alternate tax is applicable) and tax credits computed in accordance with the provisions of the applicable tax laws, and using estimates
and judgments based on the expected outcome of assessments/appeals and the relevant rulings in the areas of allowances and
disallowances.
(z) Taxes on income
NOTE [1] (II)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
514
(viii) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price which are
either determined to yield a desired margin or agreed on a negotiated basis.
(vii) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1(w) Supra] and is allocated to the segment.
(vi) Segment assets and liabilities include those directly identifiable with the respective segments. In respect of (a) financial services
segment, and (b) Developmental Projects segment relating to power generation asset given on finance lease, segment liabilities
include borrowings as the finance costs on the borrowings are accounted as segment expenses. Investment in joint ventures and
associates identified with a particular segment are reported as part of the segment assets of those respective segments.
Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Group as a whole.
Segment result represents profit before interest and tax and includes margins on inter-segment capital jobs, which are reduced
in arriving at the profit before tax of the Group. It also includes the finance costs incurred on interest bearing advances with
corresponding credit included in "unallocable corporate income/(expenditure) [net]". Segment results are not adjusted for any
exceptional item.
(v)
(iv) Income which relates to the Group as a whole and not allocable to segments is included in "unallocable corporate income/
(expenditure) [net]".
Provisions are recognised only when:
(i) the Group has a present obligation (legal or constructive) as a result of a past event; and
(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
(iii) a reliable estimate can be made of the amount of the obligation.
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs
to sell.
Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally
through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and
is expected to qualify for recognition as a completed sale within one year from the date of classification.
Discontinued operation is a component of the Group that has been disposed of or classified as held for sale and represents a major line
of business.
(ac) Discontinued Operations and non-current assets held for sale
Significant Accounting Policies (contd.)
NOTE [1] (II)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
515
d) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.
Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive details.
(iii) Most of the common costs are allocated to segments mainly on the basis of the respective segment revenue estimated at the
beginning of the reporting period.
funding related commitment to associate and joint venture companies; and
a) estimated amount of contracts remaining to be executed on capital account and not provided for;
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
(ab) Commitments
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under
such contract, the present obligation under the contract is recognised and measured as a provision.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Contingent assets are disclosed where an inflow of economic benefits is probable.
a present obligation arising from past events, when no reliable estimate is possible.
(ii)
a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the
obligation; and
(i)
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money
is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
b) uncalled liability on shares and other investments partly paid;
Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. In respect of (a)
financial services segment and (b) Developmental Projects segment relating to power generation asset given on finance lease, the
finance costs on borrowings are accounted as segment expenses.
Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment including (a) inter-
segment revenue and (b) profit on sale of stake in the subsidiary and/or joint venture companies under developmental projects
segment and realty business grouped under "Others" segment.
(i)
B.
A. The difference between the face value of the equity shares and the consideration received in respect of shares issued.
Securities premium includes:
(ii)
(i)
(v)
(u) Securities premium
Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which
have restrictions on repatriation. Short term and liquid investments being subject to more than insignificant risk of change in value, are
not included as part of cash and bank balances.
(t) Cash and bank balances
Assessment of net realisable value is made at each reporting period end and when the circumstances that previously caused inventories
to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value because of changed
economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original amount written-down so that
the resultant carrying amount is the lower of the cost and the revised net realisable value.
(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically identifiable
cost or net realisable value.
The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options
Scheme.
Significant Accounting Policies (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
512
(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable
value. Cost includes costs of purchases, costs of conversion and other costs incurred in bringing the inventories to their present
location. Taxes which are subsequently recoverable from taxation authorities are not included in the cost.
Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In some
cases, manufacturing work-in-progress are valued at lower of specifically identifiable cost or net realisable value. In the case of
qualifying assets, cost also includes applicable borrowing costs vide policy relating to borrowing costs.
(ii)
NOTE [1] (II)
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method adjusting the profit before tax excluding exceptional items for the effects of:
The issue expenses of securities which qualify as equity instruments are written off against securities premium.
Borrowing Costs
The stock options granted to employees in terms of the Group's Stock Options Schemes, are measured at the fair value of the options
at the grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over the vesting
period on a straight-line basis. The amount recognised as expense in each year is arrived at based on the number of grants expected to
vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such grant is transferred to
the retained earnings. The share-based payment equivalent to the fair value as on the date of grant of employee stock options granted
to key managerial personnel is disclosed as a related party transaction in the year of grant.
Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision
making body in the Group to make decisions for performance assessment and resource allocation. The reporting of segment information
is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments.
Segment accounting policies are in line with the accounting policies of the Group. In addition, the following specific accounting policies
have been followed for segment reporting:
(y) Accounting and reporting of information for Operating Segments
all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign
currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations. The portion
of foreign currency translation reserve attributed to non-controlling interests is reflected as part of non-controlling interests.
income and expenses are translated at average exchange rate for the reporting period; and
C.
B.
assets and liabilities are translated at the closing rate at the date of that Balance Sheet;
A.
(iv) Financial statements of foreign operations whose functional currency is different than Indian Rupee are translated into Indian Rupee
as follows:
(iii) Exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or receipt of
advance consideration is used for initial recognition of related asset, expense or income.
C. exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither
planned nor likely to occur or included in the net investment in foreign operation, and are recognised initially in other
comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.
Borrowing costs include finance costs calculated using the effective interest method, finance charges in respect of assets acquired on
lease and exchange differences arising on foreign currency borrowings, to the extent they are regarded as an adjustment to finance
costs. In cases where hedging instruments are acquired for protection against exchange rate risk related to borrowings and are
accounted as hedging a time-period related hedge item, the borrowing costs also include the amortisation of premium element of the
forward contract and foreign currency basis spread as applicable, over the period of the hedging instrument.
Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time the
asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready
for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
(w) Share-based payment arrangements
exchange differences on transactions entered into to hedge certain foreign currency risks; and
Significant Accounting Policies (contd.)
NOTE [1] (II)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
513
A. exchange differences on foreign currency borrowings relating to assets under construction for future productive use, are
included in the cost of those assets when such exchange differences are regarded as an adjustment to finance costs on those
foreign currency borrowings;
Transactions in currencies other than the Group's functional currency are recorded on initial recognition using the exchange
rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the closing spot rate.
Non-monetary items that are measured in terms of historical cost in foreign currency are not translated. Exchange differences that
arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are
recognised in the Statement of Profit and Loss in the period in which they arise except for:
(ii)
(i) The functional currency and presentation currency of the Group is Indian Rupee. Functional currency of the Group and foreign
operations has been determined based on the primary economic environment in which the Group and its foreign operations
operate considering the currency in which funds are generated, spent and retained.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
(x) Foreign currencies
B.
0.01
3962.98 3646.78
167.08
15
2 3 3 2 3 3 3 2 5 20
Maximum useful life
(in years)
Minimum useful life
(in years)
Ageing of Capital work-in-progress
(f)
10 Shiplift, marine structures and related assets and Breakwater structures
Ships
9
Aircraft
8
Vehicles
7
Furniture & fixtures
6
Office equipment
5
99
Computers
61
7
Less than
1 year
271.83
Total
More than
3 years
37.05 1170.32
1-2 years 2-3 years
1 year
983.95 102.02 47.30
Projects in progress
Less than
Particulars
As at 31-3-2021
As at 31-3-2022
crore
50
14
18
18
10
10
15
35
4
Plant & equipment
3
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
517
Notes:
(a) Carrying value of property, plant and equipment pledged as collateral for liabilities and/or commitments as at March 31, 2022 is 1568.27 crore (previous year: 1609.66
crore).
(b) Depreciation for the year includes impact of foreign currency fluctuation 1.04 crore (previous year: (0.88) crore) and depreciation capitalised 0.23 crore (previous year:
1.10 crore)
LARSEN & TOUBRO
11774.66
388.37
1170.32
11749.19
Add: Capital work-in-progress [Note 2(f)]
973.94
11386.29
10578.87
1.47 378.12 9386.76 973.94 236.14
334.26 8222.87
1082.28 1164.13
16.84 761.98
NOTE [2] (contd.)
(c) The cumulative impairment is as below:
Particulars
As at 1-4-2021
Buildings
2
1 Leasehold land
no.
Class of assets
Sr.
(e) Range of useful life of property, plant and equipment is as below:
(d) Owned assets given on operating lease have been presented separately under respective class of assets as "Leased out" pursuant to
Ind AS 116 "Leases".
79.59
236.14
(742.33)
4.22
0.31
973.94
crore
Less: Reversal of impairment on sale of assets
Add: Foreign currency fluctuation
Add: Impairment during the year
As at 31-3-2022
123.95
1-2 years 2-3 years
36.95
Total
143.03
4.26
34.02
1867.94 104.75
3008.94 133.40
88.39
2585.00
166.10
2155.03 470.63 125.44
Previous year
2585.00 277.16 146.78
Total
938.82
1096.61
44.39
15.74
28.65
1141.00
27.16 146.37
0.41
5.18
967.47
1617.53 250.00
5.18
49.76
148.47
518
(b) Useful life of building included in investment property: 3 to 60 years.
(a) Carrying value of investment property pledged as collateral for liabilities and/or commitments and having restriction on title as at
March 31, 2022: Nil (previous year: 0.16 crore).
Notes:
1146.64 1200.36
Add: Capital work-in-progress [Note 3(f)]
5.18
133.40
13.52
17.20
41.33
2816.34 2446.42
5.18
5.18
187.42
4.26
1719.73 1507.60
Buildings
Land
equipment
Depreciation
Transfer
Transfer
Cost
Investment property
NOTE [3]
36.95
79.59
271.83
37.05 1170.32
47.30
102.02
As on the date of balance sheet, there is no capital work-in-progress project(s) whose completion is overdue or has exceeded the cost,
based on the approved plan.
388.37
983.95
Total capital work-in-progress
Projects temporarily suspended
388.37
Impairment
crore
Book value
Class of assets
equipment
As at
31-3-2021
As at
31-3-2022
As at
31-3-2022
Up to
31-3-2021
31-3-2022
plant and
As at
More than
3 years
property Deductions
plant and
For the
Up to
31-3-2021
property Deductions
Additions
As at
1-4-2021
(to)/from
(to)/from
period
113.33
As at
31-3-2022
227
0.06
7.28
7.16
-
176.23
162.08
0.24
167.10
148.49
0.01
0.02
0.02
' '
7.20
'
0.12
7.08
25.03 495.42
14.36
296.33
(1.89)
1.00
0.67
1.01
2.91
42.16
250.34
404.64
54.31
183.51
169.24
0.24
0.24
20.26 325.94
0.02
-
73
1.73
50.05
0.24
20.26 318.74
0.02
2.43
(2.18)
40.18
I
I
480.08
Sub total
14.36
Leased out
465.72
Owned
Furniture & fixtures
0.01
481.84
12.87
16.84 305.72
0.26
40.18
(2.18)
2.43
Vehicles
13
1.73
(1.89)
49.93
289.25
481.06
25.03
0.06
0.17
'ཤྲུ དྷུ'སྶ
413.12
Sub total
1.68
Leased out
3.21
44.30
411.44
Owned
3.21
I
44.30
405.31 251.34
2.89 1812.71 (165.10) 35.75
20583.10
Total
29.58 1844.26 667.10
0.35
0.41
0.28 42.27
1831.23
Sub total
0.08
282.32
29.58 419.05
0.35
0.41
42.02
0.28
406.27
1.88
Previous year
17516.36
3666.95 (4.17)
2.08 1524.94 (7.58) 24.04
1408.03 (4.41) (21.09)
0.32
55.32
0.20
0.08 111.76
0.32
0.20
40.28
Leasehold Improvements
194.07
44.37
5.01
445.82
413.90
269.17
31.92
2065.70 20201.77 8222.87
565.05 20583.10 7174.60
(30.99)
189.06
39.36
11888
233.43
264.01
Ships
244.45
Aircraft
Other assets
161.78
147.98
39.25 257.33
0.25
0.18
0.68
161.10
147.80
38.57 256.84
42.33
233.43
| | |
2.91
0.49
||
0.68
57.83
683.07
237.25
244.45
683.07
and related assets
Shiplift, marine structures
213.67
71.02
20.68
193.24
Breakwater structures
50.34
264.26
13.87
186.62
172.75
71.70
Total
73.57
Platforms and
3.34
76.91
76.91
courses
Previous year
3.34
22070.44
21563.56
25.42
31.40
11.21
115.70 22413.64 2872.68
1.47
909.01
9.00
115.31
3684.27 18729.37 19197.76
24.95 103.90 120.94
46.49
458.40
52.18
17.99 420.72
0.49
192.91
3.35
3350.50
and relationship
50.19 22070.44 1966.58
17.67
8.36
96.65
24.01 25.67
6.24
172.08
133.51
0.48
0.31
8.12
0.86
1.36
3376.53 882.86
1.16
376.80
7.45
1268.27 2108.26 2467.64
Rights under
licensing agreement
124.29
4.56
128.85
21.11
906.53
0.71
Add: Intangible assets under development [Note 5(c)]
2.79
New product design and development
0.13
0.13
1.87
1.87
Customer contracts and relationship
0.71
Rights under licensing agreement
124.29
124.29
Platforms and courses
76.91
170.78
76.91
249.94
420.72
52.18
406.22
458.40
Total
(c) Ageing of Intangible assets under development
520
Particulars
Customer contracts
Projects in progress
2.79
42.98
6.37
Technical know-how
43.41 2872.68
79.23 112.02
18808.60 19309.78
(a) Amortisation for the year includes impact of foreign currency fluctuation ₹ 0.05 crore (previous year: ₹ 0.06 crore) and depreciation capitalised
0.37 crore (previous year: Nil)
(b) Details of addition in other intangible assets:
crore
2021-22
2020-21
Class of assets
Fare collection Rights
Internal
development
Acquired
- external
131.65
Total
Internal
development
Acquired
external
Total
131.65
144.68
144.68
Specialised software
93.74
111.92
205.66
49.60
134.46
184.06
6.37
7.95
Class of assets
0.46
Impairment
Book value
As at Business
1-4-2021 combination
Additions
Foreign
currency
fluctuation
Classified
Goodwill on consolidation
8116.88
Previous year
8059.50
37.40
40.83
2.49
0.50
14.06
as held for Deductions
sale
627.88
As at
31-3-2022
As at
31-3-2022
As at
31-3-2022
As at
31-3-2021
7526.90
8116.88
49.92
49.92
7476.98
8066.96
8066.96
Note:
(a) Impairment recognised in the Statement of Profit and Loss during the year is Nil (previous year: 1.82 crore).
519
Cost
Integrated Annual Report 2021-22
crore
NOTE [4]
Projects temporarily suspended
crore
As at 31-3-2022
As at 31-3-2021
Less than
1-2 years 2-3 years
1 year
188.47
92.97
165.81
More than
3 years
699.39 1146.64
Total
Less than
1-2 years 2-3 years
1 year
161.39
261.04 194.89
More than
3 years
583.04 1200.36
Total
Projects temporarily suspended
Total capital work-in-progress
188.47
92.97
165.81
699.39 1146.64 161.39 261.04
194.89
583.04 1200.36
As on the date of balance sheet, there is no capital work-in-progress project(s) whose completion is overdue or has exceeded the cost,
based on the approved plan.
Goodwill
8.98
Notes forming part of the Consolidated Financial Statements
NOTE [5]
205.66
18.31
11.21 109.00
Technical know-how
114.29
6.37
Trade names
311.66
0.17
6.24
16659.36 439.18
1736.76 1331.97
120.66 88.62
305.59 118.75
276.61
715.79
15943.57 16088.53
0.31
163.24
17.31
9.00 108.76 1395.07 341.69 300.71
8.03
59.40
0.17
New product design
and development
9.31
0.13
0.32
Notes forming part of the Consolidated Financial Statements (contd.)
1632.68
131.65
Other intangible assets and intangible assets under development
crore
Cost
Amortisation
Book value
Class of assets
Foreign Classified
As at Business
1-4-2021 combination
As at
Additions
currency as held for Deductions
fluctuation sale
Up to
Business
For the
31-3-2022
31-3-2021 combination
year
Foreign Classified
currency as held for Deductions
fluctuation sale
Up to
As at
31-3-2022
31-3-2022
As at
31-3-2021
Fare collection rights
16527.71
Specialised software
Total capital work-in-progress
1,40,50,29,123
As at 31-3-2022
2020-21
281.01
1,40,45,55,297
[1] Pursuant to the approval of the Scheme of Arrangement of Merger of L&T Hydrocarbon Engineering Limited with the Parent Company,
the authorised share capital of L&T Hydrocarbon Engineering Limited is added to the authorised share capital of the Parent Company, w.e.f.
Appointed Date i.e. April 1, 2021.
(b) Reconciliation of the number of equity shares and share capital:
280.91
Particulars
2021-22
2020-21
Number of
shares
* crore
Number of
shares
crore
Add: Shares issued on exercise of employee stock options during the year
Issued, subscribed and fully paid up equity shares outstanding at the end of the
year
Issued, subscribed and fully paid up equity share outstanding at the beginning of
the year
1,40,45,55,297
4,73,826
280.91
0.10
1,40,38,92,022
6,63,275
280.78
0.13
Projects in progress
281.01
1,40,45,55,297
280.91
Other receivables [1]
(c) Terms/rights attached to equity shares:
Embedded derivative receivables
Fixed deposits with banks (maturity more than 12 months)
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [8]
Non-current assets: Financial assets - Other loans
Particulars
crore
As at 31-3-2022
As at 31-3-2021
Loans and advances to related parties
Joint ventures and associates, considered good - unsecured
1306.65
Less: Allowance for expected credit loss
1139.03
1149.30
1139.03
167.62
10.27
Others loans
Considered good - unsecured
Less: Allowance for expected credit loss
NOTE [9]
Non-current assets: Financial assets - Others
Particulars
Security deposits
Considered good - unsecured
Less: Allowance for expected credit loss
Cash and bank balances not available for immediate use
Forward contract receivables
Notes forming part of the Consolidated Financial Statements
The Company has only one class of share capital, i.e., equity shares having face value of 2 per share. Each holder of equity share is
entitled to one vote per share.
Name of the shareholders
[2] The equity shares will be issued at a premium of 38.30 crore (previous year: 42.74 crore)
(f) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March
31, 2022 are 46,67,64,755 (period of five years ended March 31, 2021: 46,67,64,755 shares).
(g) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding
five years ended on March 31, 2022 - Nil (period of five years ended March 31, 2021: Nil).
527
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(h) Stock option scheme of the Parent Company:
(A) Terms:
i.
ii.
The grant of options to the employees under the stock option schemes is on the basis of their performance and other eligibility
criteria. The options are vested equally over a period of 4 years for series 2003(B) and 5 years in the case of series 2006(A),
subject to the discretion of the management and fulfillment of certain conditions.
Options can be exercised anytime within a period of 7 years from the date of grant and would be settled by way of issue of
equity shares. Management has discretion to modify the exercise period.
528
(B)
The details of the grants under the aforesaid scheme are summarised below:
Sr.
2003(B)
2006(A)
Series reference
No.
2021-22
2020-21
2021-22
0.36[2]
(d) Shareholder holding more than 5% of equity shares as at the end of the year:
* crore
(at face
value)
0.34[2]
As at 31-3-2022
Number of Shareholding
shares
19,25,58,158
As at 31-3-2021
Number of Shareholding
%
shares
%
13.70
19,25,58,158
11.88
19,24,67,386
13.71
13.70
L&T Employees Trust
Life Insurance Corporation of India
16,69,42,875
(e) Shares reserved for issue under options outstanding on un-issued share capital:
Particulars
Employee stock options granted and outstanding [1]
As at 31-3-2022
Number of
equity shares
to be issued
as fully paid
17,18,419
[1] Note 20(h) infra for terms of employee stock option schemes
As at 31-3-2021
Number of
crore
(at face
value)
equity shares
to be issued
as fully paid
17,81,564
crore
Integrated Annual Report 2021-22
1341.40
52631.67
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [5] (contd.)
Notes:
(1)
Borrowing cost capitalised in accordance with Ind AS 23 "Borrowing Costs" is as follows:
Class of Assets
Capital work-in-progress
crore
2021-22
2020-21
Property, plant and equipment - building
8.83
Total
Investment property - building
12.63
27.75
13.11
21.46
40.86
(2) The average borrowing cost used for capitalisation is 7.29% (previous year: 6.56%).
NOTE [6]
Non-current assets: Financial assets - Other investments
Particulars
Equity instruments
Preference shares
Statements
Government and trust securities
Statutory Financial
Reports
Management
As at 31-3-2021
Less than
1-2 years 2-3 years
1 year
72.12
More than
3 years
Total
Less than
1 year
1-2 years 2-3 years
More than
3 years
Total
7.11
79.23
88.70
21.29
2.03
112.02
72.12
7.11
79.23
88.70
21.29
2.03
112.02
As on the date of balance sheet, there is no Intangible assets under development whose completion is overdue or has exceeded the cost,
based on the approved plan.
Corporate
Overview
Integrated
Discussion and Analysis Report
521
Debentures and bonds
Security receipts
Considered good - unsecured
Less: Allowance for expected credit loss
14348.10
377.86
13342.63
255.20
Less: Impairment
1942.08
1659.70
12028.16
11427.73
Having significant increase in credit risk
6098.04
Less: Allowance for expected credit loss
733.03
3200.50
178.74
5365.01
3021.76
Credit impaired
2176.05
5048.21
Less: Allowance for expected credit loss
1433.94
3706.81
742.11
46736.84
36840.78
Mutual funds
28601.56
202.45
Units of fund
Other investments
NOTE [7]
Non-current assets: Financial assets - Loans towards financing activities
crore
As at 31-3-2022
610.72
As at 31-3-2021
121.67
544.89
87.00
204.68
101.15
1008.97
1004.47
31.39
4886.22
4114.88
31.20
218.05
7081.51
61.36
5945.14
crore
Particulars
Considered good - secured
As at 31-3-2022
28804.01
As at 31-3-2021
37184.23
Less: Allowance for expected credit loss
343.45
Particulars
Notes forming part of the Consolidated Financial Statements (contd.)
(e) The fair values of investment property have been determined by internal architectural department or independent valuer, as appropriate.
Fair value of property that are evaluated by registered independent valuers as defined under rule 2 of Companies (Registered Valuers and
Valuation) Rules, 2017, amounted to 2746.81 crore (previous year: 1616.64 crore). Valuation is based on government rates, market
research, market trend and comparable values as considered appropriate.
32345.24
26791.66
59.60
316.34
5.04
114.66
32721.18
As at 31-3-2021
As at 31-3-2022
26911.36
Less: Net fair value changes
Less: Allowance for expected credit loss
Considered good - secured
Particulars
Considered good - unsecured
crore
566.32
5182.93
944.01
1568.20
771.04
376.20
6.69
74.04
136.43
135.97
616.49
As at 31-3-2021
393.32
2867.98
Less: Allowance for expected credit loss
Less: Impairment
9092.51
616.97
46.56
41379.03
912.09
42269.20
Considered good - unsecured
Others loans
Considered good - unsecured
Loans and advances to related parties
Particulars
Current assets: Financial assets - Other loans
NOTE [17]
1342.94
430.85
Less: Net fair value changes
Credit Impaired
971.16
6136.47
44.23
163.16
Less: Net fair value changes
1103.08
87.69
257.23
Less: Allowance for expected credit loss
6556.86
Having significant increase in credit risk
8062.63
8428.98
8534.40
444.65
27.12
As at 31-3-2022
2462.20
crore
Current Assets: Financial Assets - Loans towards financing activities
NOTE [16]
Balance with banks
Particulars
Current assets: Financial assets - Cash and cash equivalents
NOTE [14]
42229.78
3405.60
Less: Allowance for expected credit loss
190.66
45635.38
1620.68
1126.36
146.74
2985.72
929.59
115.76
64.75
35.18
1878.80
192.48
8.74
3222.60
8846.10
27772.57
Gross trade receivables
- Credit impaired
26.51
94.82
Considered good
-
43043.65
780.39
1246.06
466.56
727.28
86.55
Cheques and drafts on hand
crore
Cash on hand
524
[1] Real Estate (Regulation and Development) Act, 2016
Cash and bank balances not available for immediate use
Margin money deposits with banks
Earmarked balances with banks - others
Earmarked balances with banks - Section 4(2)(1)(D) of RERA[1]
Earmarked balances with banks - unclaimed dividend
Fixed deposits with banks
Particulars
Current assets: Financial assets - Other bank balances
NOTE [15]
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
7161.18
13373.52
11.84
12.46
6689.67
13770.24
5743.64
456.86
As at 31-3-2021
As at 31-3-2022
6673.01
395.10
crore
Fixed deposits with banks (maturity less than 3 months)
As at 31-3-2022
As at 31-3-2021
171.29
1.60
1.60
102.21
26.98
47619.14
6878.77
52043.67
8014.70
15170.83
16805.40
32448.31
35238.27
As at 31-3-2021
As at 31-3-2022
crore
3251.68
3840.04
526
Others
Less: Allowance for expected credit loss
Other loans and advances
Government grant receivable
Advance recoverable other than in cash
Retention money including unbilled revenue
Due from customers (construction and project related activity)
Contract assets [Note 47(d)(i)]
Particulars
11.72
11.72
Other current assets
47.54
191.36
54791.48
1,40,50,29,123
Equity shares of 2 each
Issued, subscribed and fully paid up:
5025.00
8037.00 25,12,50,00,000
40,18,50,00,000
crore
As at 31-3-2021
Number of
shares
shares
crore
As at 31-3-2022
Number of
Equity shares of 2 each
Authorised: [1]
Particulars
(a) Share capital authorised, issued, subscribed and paid up:
Equity share capital
NOTE [20]
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
60132.89
1739.90
38.97
NOTE [19]
753.00
crore
Other loans and advances
Deferred credit sale of ships
Doubtful advances:
Embedded derivative receivables
Unbilled Revenue
Forward contract receivables
Advances recoverable in cash
Joint ventures
Associates
Advances to related parties:
Less: Allowance for expected credit loss
Considered good - unsecured
Security deposits
Particulars
Current assets: Financial assets - Others
NOTE [18]
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
525
68.26
235.35
280.34
109.05
167.09
As at 31-3-2022
816.24
As at 31-3-2021
414.73
Less: Allowance for expected credit loss
816.24
753.00
789.13
725.89
27.11
27.11
51.06
48.49
837.93
1363.54
942.04
1073.50
958.08
844.34
48.41
114.40
48.10
109.64
0.31
4.76
414.16
395.77
0.57
0.52
396.29
2964.19
57.19
8699.53
120.06
11.06
Particulars
crore
Current assets: Inventories
NOTE [11]
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
5949.67
6077.62
2607.12
3262.10
3307.65
2624.20
80.45
145.77
0.61
79.84
144.85
0.92
As at 31-3-2021
As at 31-3-2022
crore
Raw materials [include goods-in-transit 82.31 crore (previous year: 76.78 crore)]
Components [include goods-in-transit 15.24 crore (previous year: 9.58 crore)]
Construction materials [include goods-in-transit 116.74 crore (previous year: 39.17 crore)]
1420.19
As at 31-3-2022
701.61
849.22
NOTE [12]
Note: During the year 37.21 crore (previous year: 8.15 crore) was recognised as expense towards write-down of inventories (net).
5820.54
5943.32
3553.67
3645.49
10.28
12.47
287.75
290.19
₹
Stores and spares [include goods-in-transit 1.76 crore (previous year: 4.60 crore)]
Loose tools [include goods-in-transit 0.01 crore (previous year: 0.01 crore)]
Property development projects (including land)
361.31
319.61
Stock-in-trade (in respect of goods acquired for trading) [include goods-in-transit 32.73 crore
(previous year: 44.34 crore)]
86.01
93.35
Finished goods
261.37
313.01
Manufacturing work-in-progress
90.22
180.56
320.71
387.03
As at 31-3-2021
Current assets: Financial assets - Investments
29.64
1.75
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [3] (contd.)
(c) Amounts recognised in the Statement of Profit and Loss in respect of investment property:
crore
2021-22
2020-21
Sr. No.
Particulars
1
Rental income derived from investment property
73.65
70.06
2
3
Direct operating expenses incurred on investment property that generated rental income
Direct operating expenses incurred on investment property that did not generate rental
income
8.14
9.91
0.64
(d) Fair value of investment property as at March 31, 2022: 6679.74 crore (previous year: 5918.31 crore).
Other non-current assets
89.03
2162.97
Particulars
Secured
2.39
518.91
715.50
228.07
832.02
283.91
357.91
429.69
94.34
37.90
40.00
395.81
469.69
As at 31-3-2021
As at 31-3-2022
crore
162.97
173.24
85.37
252.99
113.80
113.80
276.77
199.17
522
Current tax receivable (net)
Advance recoverable other than in cash
Unsecured
Capital advances:
(f) Ageing of Capital work-in-progress
Particulars
Preference shares
244.24
63.51
7.24
34.04
- Credit impaired
Considered good
-
Disputed:
- Credit impaired
831.20
47452.50
1557.88
508.42
835.32
73.12
1766.97
151.53
2457.96
74.31
10438.28
17.73
6.09
30396.09
- Considered good
Undisputed:
Total
More than
3 years
2-3 years
1-2 years
-
Gross trade receivables
Less than 6 months
6 months
1 year
30436.22
2595.78
27666.69
Total
More than
3 years
2-3 years
1-2 years
Less than 6 months -
6 months
1 year
Not due
* crore
46138.92
Outstanding for following periods from due date of payment
As at 31-3-2021
Disputed:
- Credit impaired
- Considered good
Undisputed:
Particulars
3892.51
Less: Allowance for expected credit loss
50031.43
183.02
137.84
3400.74
1564.71
1196.60
19.08
45.18
972.70
2162.74
10463.25
Equity shares
Not due
crore
31011.23
801.31
1359.94
29792.51
2495.29
299.98
1499.57
20143.53
12918.05
7331.66
7891.72
2336.16
3469.53
0.68
97.91
As at 31-3-2021
As at 31-3-2022
158.41
crore
Current assets: Financial assets - Trade receivables
NOTE [13]
Other investments
Commercial paper
Collateral borrowing and lending obligation (CBLO)
Mutual funds
Debentures and bonds
Government and trust securities
crore
Particulars
Particulars
As at 31-3-2022
Outstanding for following periods from due date of payment
As at 31-3-2022
Current assets: Financial assets - Trade receivables ageing
NOTE [13][a]
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
523
126.73
42229.78
46138.92
76.80
971.05
844.32
937.42
Less: Allowance for expected credit loss
1014.22
Credit impaired
42078.56
46037.03
44639.84
2561.28
2955.09
Less: Allowance for expected credit loss
48992.12
Considered good - unsecured
24.49
25.09
As at 31-3-2021
Considered good - secured
i.
NOTE [10]
7.80
4,73,826
(C) Options allotted
7.80
1,04,000
182.90
5,50,769
(B) Options granted
252.09
25,21,389
241.90
17,81,564
(A) Options granted and outstanding at the beginning of the year
(*)
exercise price
Weighted
average
No. of stock
options
Weighted
average
exercise price
(₹)
231.58
6,63,275
238.99
(D) Options lapsed
Grant price (*)
[1] mainly includes lease receivables and recoverable from joint ventures and banks
(F) Weighted average fair values of options granted during the year is ₹1113.62 (previous year: 834.24) per option.
The fair value of the options granted under the stock option scheme is treated as discount and accounted as employee
compensation over the vesting period.
(E)
(F) Options exercisable at the end of the year out of (E) supra
(D) Weighted average share price at the date of exercise for stock options exercised during the year is ₹ 1635.25 (previous year:
1001.47) per share.
255.06
5,07,657
No. of stock
options
260.33
241.90
17,81,564
224.86
17,18,419
(E) Options granted and outstanding at the end of the year
260.10
1,80,550
1,40,088
4,00,060
Particulars
253.90
2021-22
1,78,839
vi. Options granted
7,130
v. Options lapsed
16,08,414 23,75,454
1,45,935
1,73,150
1-7-2008 onwards
1-7-2007 onwards
23-5-2003 onwards
23-5-2004 onwards
lii. Vesting commences on
Grant dates
ii.
267.10
267.10
2020-21
7.80
4,875
1,04,000
1,32,958
3,71,930
iv. Options granted and outstanding at the beginning of the year
vii. Options exercised
4.23
1,75,675
11,24,332
4,84,082
3,89,610
10,48,850
4.29
1,49,575
5.74
ix. Weighted average remaining contractual life of options (in years)
(C) The number and weighted average exercise price of stock options are as follows:
2,69,509
Options yet to vest
23,575
5.67
10,450
Options vested
4,08,926 5,91,365
14,38,460 16,08,414
1,73,150
2,79,959
viii. Options granted and outstanding at the end of the year, of which
71,910
64,900
82126.65
(0.23)
55.62
Debt instruments through Other comprehensive income [Note 1 (II)(r)(i)(B)]
Equity instruments through Other comprehensive income [Note 1(II)(r)(i)(B)]
98.20
(7.01)
718.53
485.10
162.40
75587.62
NOTE [22]
[2] Debenture redemption reserve: Created on non-convertible debentures in accordance with the Companies (Share capital and Debenture) Rules, 2014
(as amended).
[3] Impairment reserve as per Reserve Bank of India: Created pursuant to circular issued by Reserve Bank of India where impairment allowance as per Ind
AS 109 is lower than the provisioning required as per extant prudential norms.
535
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
Non-current liabilities: Financial liabilities - Borrowings
crore
(4.72)
As at 31-3-2022
[1] Capital redemption reserve: Created by the subsidiaries on redemption of preference shares out of profits in accordance with Section 55(2)(c) of the
Companies Act, 2013.
Cost of hedging reserve
2162.13
723.25
As at 31-3-2021
Statutory reserves
Debenture redemption reserve [2]
546.62
776.76
Reserve u/s 45-IC of the Reserve Bank India Act, 1934
1956.05
Reserve u/s 29C of the National Housing Bank Act, 1987
11.09
11.09
Reserve u/s 36(1)(viii) of the Income-tax Act, 1961
Impairment reserve as per Reserve Bank of India [3]
Retained earnings
962.27
911.01
28.36
28.36
Foreign currency translation reserve [Note 1(II)(x)(iv)]
3710.47
67139.90
696.00
3683.27
60955.94
665.45
Hedging reserve [Note 1(II)(r)(iii)(B)]
Cash flow hedging reserve
492.11
Particulars
13.84
Redeemable non-convertible fixed rate debentures
NOTE [25]
Other non-current liabilities
Particulars
Other payables
536
crore
As at 31-3-2022
As at 31-3-2021
27.46
59.78
Other provisions [Note 56(a)]
13.17
1.03
0.12
70.01
113.00
111.67
186.74
crore
As at 31-3-2022
As at 31-3-2021
345.63
383.60
Provision for other employee benefits
Post-retirement medical benefits plan [Note 52(b)(i)]
Employee pension scheme [Note 52(b)(i)]
30945.62
Redeemable non-convertible inflation linked debentures
Preference shares
Term loans from banks
13657.29
44602.91
14687.17 45632.79
129.94
129.94
215.65
215.65
1982.64 15639.93 29334.73
17015.40 61618.31 58497.68
Total Secured Unsecured
29162.95 20021.22 49184.17
126.15 126.15
1123.66 1123.66
2351.33 31686.06
23622.36 82120.04
Total
Notes:
(a) Loans guaranteed by directors Nil (previous year: Nil)
(b)
Non-convertible debentures and bank borrowings are secured by charge on the specified movable and immovable assets of the respective entities.
NOTE [23]
Non-current liabilities: Other financial liabilities
Particulars
Forward contract payables
Embedded derivative payables
Financial guarantee contracts
Due to others [1]
[1] mainly includes security deposits and liabilities towards capital goods
NOTE [24]
Non-current liabilities: Provisions
Particulars
Secured Unsecured
371.65
3411.29
* 3290.65
0.11%
(130.44)
No. of stock options
Weighted average
exercise price (*)
i.
Options granted and outstanding at the beginning of the year
ii.
Options granted during the year
1,87,000
3,290.65
iii.
Options exercised during the year
Sr. No. Particulars
iv.
V.
Options granted and outstanding at the end of the year
17,000
2,683.80
1,70,000
3,290.65
vi.
Options vested at the end of the year out of (v) supra
The weighted average remaining contractual life of the option is 1.99 years as at March 31, 2022 (as at March 31, 2021: NA)
The weighted average fair value of each option under the above mentioned Series B of ESOP 2021 plan was 926.45 using
the Black-Scholes Option Pricing Model with the following assumptions:
Sr. No. Particulars
Options Lapsed/forfeited during the year
i.
Series B
2021-22
Notes forming part of the Consolidated Financial Statements (contd.)
Sr. No. Particulars
2021-22
* 2984.23
i.
Weighted average grant date share price
ii.
Exercise price
iii.
Dividend yield %
iv.
NOTE [20] (contd.)
Expected life
Risk-free interest rate
vi.
Volatility
10.00
0.10%
1-4 year
4.88%
34.68%
533
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
V.
Weighted average grant date share price
ii.
Exercise price
Capital reserve [Note 1(II)(g)]
Capital reserve
Capital reserve on consolidation
Capital redemption reserve [1]
Securities premium [Note 1(II)(u)]
Employee share options (net) [Note 1(II)(w)]
Employee share options outstanding
Deferred employee compensation expense
crore
As at 31-3-2022
Particulars
As at 31-3-2021
271.92
10.52
271.92
282.44
282.44
335.10
302.00
8718.74
8667.65
502.09
427.52
10.52
Other equity
NOTE [21]
Notes forming part of the Consolidated Financial Statements (contd.)
iii.
Dividend yield %
iv.
Expected life
V.
Risk-free interest rate
vi.
Volatility
2021-22
348.86
1-4 year
4.94%
34.29%
(I) Capital Management
The Group continues its policy of a conservative capital structure. Low gearing levels also enable the Group to navigate business stress on
one hand and raise growth capital on the other. This policy also provides flexibility of fund-raising options for future, which is especially
important in times of global economic volatility. The gross debt equity ratio is 1.29:1 (as at 31-3-2021: 1.51:1).
534
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
(43.92)
333.93
Loans from related parties
19.97
crore
Particulars
Unbilled
Not due
Dues
As at 31-3-2021
Outstanding for following periods from due date of payment
Less than
1 year
1-2 years
2-3 years
More than
3 years
9.95
51144.24
Total
Micro and small enterprises
49.09
Others
18979.64
403.57
16856.48
33.48
7209.71
1.26
664.81
0.65
590.50
0.81
934.63
488.86
45235.77
Undisputed:
Disputed:
1.33
965.12
954.23
Not due
1-2 years
Outstanding for following periods from due date of payment
Less than 1
More than
year
3 years
Total
2-3 years
Undisputed:
Micro and small enterprises
Others
36.26
19674.94
516.10
22237.09
0.19
343.55
21.32
6387.20
0.57
342.79
0.93
962.86
575.91
50558.38
Disputed:
Micro and small enterprises
Others
8.43
19711.20
22761.62
6408.52
0.73
953.50
Micro and small enterprises
Others
16.76
127.78
367.31
244.66
0.85
402.19
0.79
379.25
84.29
5659.33
6643.32
55.38
4521.07
5328.93
crore
As at 31-3-2021
As at 31-3-2022
12818.25
17963.32
Other payables [1]
[1] mainly includes statutory dues and liabilities towards joint ventures, volume discount and employee benefits
538
11943.66
15876.07
30781.57
3862.53
34644.10
27819.73
3449.90
31269.63
As at 31-3-2021
As at 31-3-2022
129.35
crore
Advances from customers
19028.73
17276.81
1.04
7244.23
666.07
591.15
0.13
2.67
938.24
0.13
20.47
45745.23
NOTE [29]
Current liabilities: Other financial liabilities
Particulars
Unclaimed dividend
Unclaimed interest on debentures
Financial guarantee contracts
Forward contract payables
Embedded derivative payables
Due to others [1][2]
[1] Due to others include due to directors: 112.87 crore (previous year: 43.19 crore)
[2] Mainly includes security deposits and liability towards employee benefits and capital goods
NOTE [30]
Other current liabilities
Particulars
Contract liabilities [Note 47(d)(i)]
Due to customers (construction and project related activity)
Unbilled
Dues
Particulars
As at 31-3-2022
crore
Loans repayable on demand
8596.89
4091.27
Short-term loans and advances from banks
4137.00
2024.05
12688.16
6161.05
Short-term unsecured fixed rate debentures
As at 31-3-2021
Secured Unsecured
7098.45 3797.92 10896.37
1953.81 4215.93 6169.74
477.90
Total
Total
477.90
Commercial paper
193.74
193.74
12733.89
11434.01
17743.07
11434.01
30476.96
90.91
90.91
10130.91
10130.91
The weighted average remaining contractual life of the option is 1.88 years as at March 31, 2022 (as at March 31, 2021: NA)
The weighted average fair value of each option under the above mentioned Series A of ESOP 2021 plan was 2965.70 using
the Black-Scholes model with the following assumptions:
Secured Unsecured
Particulars
As at 31-3-2022
18.12
118.24
68.38
817.77
773.78
As at 31-3-2022
21.27
21.27
crore
As at 31-3-2021
68.70
68.70
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [26]
Current liabilities: Financial liabilities - Borrowings
crore
9052.26
338.42
18713.57
Note: The secured portion of loans payable on demand and bank borrowings are secured by charge on the specified movable and immovable assets of
the respective entities.
Due to others
Particulars
crore
As at 31-3-2022
As at 31-3-2021
164.52
382.35
7.94
14.54
1772.57
Joint ventures
1761.12
1775.66
43098.23
50568.33
45256.24
537
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [28][a]
Current liabilities: Financial liabilities - Trade payables ageing
1780.51
48623.30
Associates
Due to related parties:
Acceptances
NOTE [27]
Current liabilities: Financial liabilities - Current maturities of long term borrowings
Particulars
Redeemable non-convertible fixed rate debentures
Redeemable non-convertible floating rate debentures
Preference shares
Term loans from banks
crore
As at 31-3-2022
As at 31-3-2021
9405.63
22953.45
Secured Unsecured
13547.82 7707.33
1.73
1.73
170.09
170.09
540.36 9945.99 9419.55
8419.51 31372.96 19078.82
Total
21255.15
Secured Unsecured
9659.27 3230.04
1.60
319.26
89.67 9509.22
3640.57 22719.39
Total
12889.31
1.60
319.26
Notes:
(a)
Loans guaranteed by directors Nil (previous year: Nil)
(b)
Non-convertible debentures and bank borrowings are secured by charge on the specified movable and immovable assets of the respective entities.
Current liabilities: Financial liabilities - Other trade payables
27765.83
Options vested at the end of the year out of (v) supra
Dividend yield %
10.00
2
2
ii.
Grant dates
28-07-2016 onwards
iii. Vesting commences on
28-07-2017 onwards
iv. Options granted and outstanding at the beginning of the year
7,32,469
13,22,434
Grant price
v. Options lapsed during the year
76,200
vi. Options granted during the year
20,500
vii. Options exercised during the year
4,86,344
5,34,265
viii. Options granted and outstanding at the end of the year
2,15,725
7,32,469
ix. Options vested at the end of the year out of (viii) supra
30,400
66,605
i.
2021-22
5.00%
4.62%
3 years
3 years
27.67%
189.16
* 4668.46
1
25.17%
148.59
2020-21
* 2349.87
The expected volatility
has been calculated
based on historic
company share price.
The expected volatility
has been calculated
entirely based on
historic volatility of IT
Index.
(ii) L&T Technology Services Limited
(A) Employee stock option plan (ESOP)
(i) The options are vested equally over a period of 5 years subject to the discretion of the management and fulfillment of
certain conditions.
(ii) The exercise period for the options granted under the ESOP Scheme, 2016 would be seven years (84 months) from the
date of grant of options or six years (72 months) from the date of first vesting or three years (36 months) from the date
of retirement/death, whichever is earlier, subject to any change as may be approved by the Board. The exercise price may
be decided by the Board, in such manner, during such period, in one or more tranches and on such terms and conditions
as it may deem fit, provided that the exercise price per option shall not be less than the par value of the equity share
of the Company and shall not be more than the market price as defined in the SEBI (Share Based Employee Benefits)
Regulations, 2014 and shall be subject to compliance with accounting policies under the said regulation. The number of
shares to be allotted on exercise of options should not exceed the total number of unexercised vested options that may
be exercised by the employee. Details of grant under ESOP Scheme, 2016 is summarised below:
Sr.
ESOP Scheme, 2016
No. Particulars
1
1,46,929
X.
Options unvested at the end of the year out of (viii) supra
Weighted average expected price volatility of Company's share
(F) Weighted average expected dividend yield over life of option
(G) Weighted average risk-free interest rate
(H)
Method used to determine expected volatility
No new ESOP grant
during the year
* 2.00
16-07-2020
16-07-2027
1441.70 per option
30.42%
5.12%
4.55%
The expected price volatility is based on the
historic volatility (based on the remaining life of
the options), adjusted for any expected changes
to future volatility based on publicly available
information.
(iii) L&T Finance Holdings Limited
(E)
The Company has formulated Employee Stock Option Schemes 2010 (Scheme 2010) and 2013 (Scheme 2013). The grant of options
to the employees under the stock option schemes is on the basis of their performance and other eligibility criteria. The options
allotted under the Scheme 2010 are vested over a period of four years in the ratio of 15%, 20%, 30% and 35% respectively from
the end of 12 months from the date of grant, subject to the discretion of the management and fulfillment of certain conditions.
The options granted under the Scheme 2013 are vested in a graded manner over a period of four years with 0%, 33%, 33% and
34% of grants vesting each year, commencing from the end of 24 months from the date of grant or w.e.f. July 10, 2019 vested in
a graded manner over a period of four years with 25%, 25%, 25% and 25% of grants vesting each year, commencing from the
end of 12 months from the date of grant.
Sr.
Scheme 2010
Scheme 2013
Particulars
No.
2021-22
2020-21
2021-22
2020-21
i.
(A) The details of the grants are summarised below:
(D) Weighted average share price at grant date
(C) Expiry date
Grant date
1,49,120
5,85,540
xi. Weighted average remaining contractual life of options (in years)
0.24
1.99
(B) Weighted average share price at the date of exercise for stock options exercised during the year is 4770.17 per share
(previous year: 1763.19 per share).
(C) In respect of stock options granted pursuant to the Company's stock options schemes, the fair value of the options is treated
as discount and accounted as employee compensation over the vesting period.
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(D) There are no new options granted during the year ended 31-3-2022. The fair value at grant date of options granted during
the previous year: 1378.40 per option. The fair value of grant date is determined using the Black-Scholes Option Pricing
Model which takes into account the exercise price, term of option, share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. The model inputs for
options granted during the year included:
Sr.
Particulars
No.
2021-22
2020-21
(A) Weighted average exercise price
(B)
2020-21
Grant price
2021-22
(G)
182.90 per option
4.81%
2.85 years
35.39%
51.22 per option
884.83 per option
7.80 per option
Expected volatility is based on the historical volatility
of the Company's share price applicable to the total
expected life of each option.
During the year ended March 31, 2022, the Company paid the final dividend of 18 per equity share for the year ended March 31,
2021.
The Board of Directors, at their meeting held on May 12, 2022 recommended a final dividend of 22 per equity share for the year
ended March 31, 2022, subject to approval of shareholders. On approval, the dividend outgo is expected to be 3091.06 crore based on
number of shares outstanding as on March 31, 2022.
(k) Stock option scheme of subsidiary companies:
(i)
Larsen & Toubro Infotech Limited
67.82 per option
1311.86 per option
Employee Stock Ownership Scheme (ESOS Plan)
way of issue of equity shares. Management has discretion to modify the exercise period.
(B) The details of the grant under the aforesaid scheme is summarised below:
Sr.
No. Particulars
i.
Grant price
ii. Grant dates
iii. Vesting commences on
iv. Options granted & outstanding at the beginning of the year
ESOP scheme 2015
(A) The options are vested equally over a period of 5 years subject to the discretion of the management and fulfilment of certain
conditions. The options can be exercised anytime within a period of 7 years from the date of grant and would be settled by
2021-22
5.41%
3.77 years
31.02%
Weighted average exercise price
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(G) The fair value of the options granted during the year has been calculated using the Black-Scholes Option Pricing Model using the
following significant assumptions and inputs:
Sr.
(G) Method used to determine expected volatility
Particulars
2021-22
2020-21
(i)
(j)
(A) Weighted average risk-free interest rate
(B) Weighted average expected life of options
(C) Weighted average expected volatility
(D) Weighted average expected dividends over the life of the option
(E) Weighted average share price
(F)
No.
2020-21
1
₹ 1
3.3
(C) Weighted average share price at the date of exercise for stock options exercised during the year is 4889.01 per share
(previous year: 2691.00 per share).
(D) Weighted average fair value of options granted during the year is 4667.46 per share (previous year: 2348.93 per share).
529
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(E) The fair value has been calculated using the Black-Scholes Option Pricing Model and significant assumptions and inputs to
estimate the fair value options granted during the year are as follows:
Sr. No. Particulars
3.5
530
Weighted average risk-free interest rate
(B)
Weighted average expected life of options
(C)
Weighted average expected volatility
Weighted average expected dividends over the life of option
(E)
Weighted average share price
(F)
Weighted average exercise price
(A)
xii Weighted average remaining contractual life of options (in years)
7,60,398
1,82,793
10-06-2016 onwards
10-06-2017 onwards
8,82,606
15,25,395
V.
Options reinstated during the year
vi. Options granted during the year
vii. Options exercised during the year
45,285
83,650
5,19,548
6,23,839
viii. Options lapsed/cancelled during the year
ix. Options granted & outstanding at the end of the year
82,428
1,02,600
3,25,915
8,82,606
X.
Options vested at the end of the year out of (ix) supra
1,43,122
1,22,208
xi. Options unvested at the end of the year out of (ix) supra
Method used to determine expected volatility
* 44.20
10.001/Market Price
ii.
Grant Price per share/unit [2]
[1] Does not include direct allotment of shares
[2] Based on Letter of Intent
2021-22
2020-21
Employee Restricted Stock Option Plan
2012 [1]
1,92,166
2,40,450
1,44,466
(1)
1,17,241
5000
9,702
65,223
1-2 year
10 per share
33,595
1,92,166
1-2 year
May 12, 2020,
June 18, 2020,
October 30, 2020,
February 8, 2021
10 per share
Corporate
Overview
1,54,155
Management
Grant Date [2]
Contractual life
5,200
10.00
vi.
Options vested at the end of the year out of (v) supra
8,435
10.00
5,200
10.00
(B) Other Stock based compensation arrangements
The Company has granted phantom stock options and letter of intent to issue shares under ERSP 2012 plan to certain
employees which is subject to certain vesting conditions. Details of the outstanding options/ units as at March 31, 2022 are
given below:
(H)
Sr. No. Particulars
Outstanding units/shares as at the beginning of the year
(B)
Number of units/shares granted under letter of intent during the year
Vested units/shares
(D)
Lapsed units/shares
(E)
Cancelled units/shares
(F)
Outstanding units/shares as at the end of the year
(A)
Integrated
Discussion and Analysis
Report
48.33%
ESOP 2021 was instituted with effect from May 22, 2021 for the issue of upto 20,00,000 options (including the unutilized
options under ERSP 2012) to employees. The Nomination and Remuneration Committee ('NRC') administers the plan through
a trust established specifically for this purpose, called the Mindtree Employee Welfare Trust ('ESOP Trust').
The ESOP Trust shall subscribe to the equity shares of the Company using the proceeds from loans obtained from the
Company, other cash inflows from allotment of shares to employees under the ESOP Plan, to the extent of number of shares
as is necessary for transferring to the employees. The NRC shall determine the exercise price which will not be less than the
face value of the shares.
Options under this program are granted to employees at an exercise price periodically determined by the NRC. All stock
options have a four-year vesting term. The options vest and become fully exercisable at the rate of 25% each over a period of
4 years from the date of grant. Each option is entitled to 1 equity share of ₹10 each. These options are exercisable within 6
years from the date of vesting.
Series A
2021-22
Sr. No. Particulars
No. of stock options
Weighted average
exercise price (*)
i.
Options granted and outstanding at the beginning of the year
35.15%
ii.
3,28,128
10.00
iii. Options exercised during the year
iv.
Options lapsed/forfeited during the year
V.
Options granted and outstanding at the end of the year
16,160
10.00
3,11,968
Options granted during the year
4.31%
5.56%
1-2 year
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
The weighted average fair value of each unit under the above mentioned ERSP 2012 plan, granted during the previous year
ended March 31, 2021 was ₹ 873.36 using the Black-Scholes Option Pricing Model with the following assumptions:
Sr. No. Particulars
(A)
Weighted average grant date share price
(B) Weighted average exercise price
(D)
Expected life
(E)
Risk-free interest rate
(F)
Volatility
(C) Employee Stock Option Plan 2021 (ESOP 2021)
2021-22
2020-21
* 873.36
* 10.00
0.42%
10.00
0.42%
1-2 year
10.00
8,435
Options granted and outstanding at the end of the year
V.
4,01,58,040
5,37,000 2,16,22,255
13,91,500 1,85,35,785
3,98,32,101
1,81,71,874
2,16,60,227
vii. Weighted average remaining contractual life of options (in
years)
3.56
4.02
5.64
4.81
2,29,250
[1] w.e.f. July 10, 2019
531
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
532
(C) The fair value has been calculated using the Black-Scholes Option Pricing Model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
Sr. No. Particulars
(A)
Weighted average risk-free interest rate
(B) The average fair values of options granted during the year is 72.69 (previous year: 33.15) per option.
Options yet to vest
7,19,000
Options vested
Options granted and outstanding at the beginning of the year
19,28,500
29,20,500
3,98,32,101
4,51,95,840
iii. Options granted during the year
iv. Options lapsed/cancelled during the year
1,07,89,685
21,31,627
6,63,250
3,07,500
61,90,962
48,92,793
V.
Options exercised and shares allotted during the year
3,17,000
6,84,000
42,72,784
26,02,573
vi. Options granted and outstanding at the end of the year
of which:
9,48,250
19,28,500
(B)
vi.
Weighted average expected life of options
Weighted average expected dividends
options
options
(₹)
Weighted
average
exercise price
(F)
i.
Options granted and outstanding at the beginning of the
year
5,200
10.00
ii.
Options granted during the year
No. of
stock
1,17,241
1,54,155
10.00
iii. Options exercised during the year
1,14,006
10.00
1,45,700
10.00
iv. Options lapsed/forfeited during the year
3,255
10.00
10.00
Weighted
average
exercise price
No. of
stock
No.
(E)
Weighted average share price
Weighted average exercise price
Method used to determine expected volatility
2021-22
4.59%
2.68 years
39.50%
2.60 per option
83.71 per option
10.00 per option
2020-21
2.70%
1.73 years
25.26%
1.68 per option
39.61 per option
5.82 per option
Expected volatility is based on the historical volatility of
the Company's shares price applicable to the expected
life of each option.
(iv) Mindtree Limited
(A) Employee Restricted Stock Purchase Plan 2012 (ERSP 2012)
ERSP 2012 was instituted with effect from July 16, 2012 to issue equity shares of nominal value of 10 each. Shares under
this program are granted to employees at an exercise price of not less than ₹ 10 per equity share or such higher price
as determined by the Nomination and Remuneration Committee. Shares shall vest over such term as determined by the
Nomination and Remuneration Committee not exceeding ten years from the date of the grant. All shares will have a minimum
lock in period of one year from the date of allotment.
2021-22
2020-21
Sr.
Particulars
Weighted average expected volatility
NOTE [28]
Particulars
2169.02
Total
123.03
1581.33
2
Packing and forwarding
599.23
91.27
690.50
536.23
74.66
Note 39
610.89
Insurance
497.25 362.62
164.82
1024.69
471.08
329.80
131.47
932.35
4
Rent and hire charges
3
3071.04
Note 38
Total
2267.26
3055.42
3904.54
5.81
4.27
64.47
4.63
3125.70
3913.44
39(a) Aggregation of expenses disclosed vide Note 36 - Manufacturing, construction and operating expenses, Note 37 - Employee benefits
expense, Note 38 - Sales, administration and other expenses and Note 39 - Finance costs
crore
Note 36 Note 37
1458.30
Sr.
2020-21
Nature of expenses
No.
Note 36 Note 37
Note 38
Note 39
1
Power and fuel
2141.26
126.00
2021-22
237.47
3308.51
2265.80
25.75
106.41
132.16
22.74
102.45
125.19
9
General repairs and
maintenance
600.33
Repairs to buildings
458.56
581.74
435.17
1016.91
10 Engineering, professional,
technical and consultancy
fees
2302.10
1213.03
3515.13
2008.62
1058.89
8
69.78
69.78
211.70
2477.50
5
Rates and taxes
764.91
260.09
1025.00
686.11
292.25
978.36
6
Travelling and conveyance
1013.78
445.84
1459.62
828.06
317.25
1145.31
7
Repairs to plant and
equipment
142.84
142.84
Exchange (gain)/loss [net]
912.39
Other borrowing costs
2020-21
211.70
260.09
292.25
445.84
317.25
106.41
102.45
458.56
435.17
1213.03
237.47
912.39
7.97
238.28
220.90
169.88
101.32
50.84
49.10
31.12
7.02
33.56
8.47
5.92
38.14
131.47
74.66
Packing and forwarding
Insurance
Rent and hire charges
Rates and taxes
Travelling and conveyance
Repairs to buildings
General repairs and maintenance
Professional fees
Directors' fees
Telephone, postage and telegrams
164.82
Advertising and publicity
Commission:
Distributors and agents
Others
Bank charges
crore
Particulars
2021-22
2020-21
126.00
123.03
91.27
Stationery and printing
42.03
156.74
145.10
347.37
158.76
Recoveries from joint ventures and associates
(27.15)
(39.48)
Exchange (gain)/loss [net]
(666.00)
(37.31)
Other provisions
78.46
Loss on fair valuation of loans towards financing activities (net)
371.16
8903.49
543
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [39]
Finance costs
crore
Particulars
2021-22
8831.89
3400.09
3200.55
Allowances for expected credit loss
Impairment on lease receivables
301.82
2.35
Corporate social responsibility expenses
232.39
225.20
Collection cost (Financial Services business)
435.70
302.74
Miscellaneous expenses
794.95
643.60
Bad debts and advances written off (net of written back)
4092.37
3039.99
Less: Allowances for expected credit loss written back
3733.86
2481.66
358.51
558.33
Impairment of debt instruments
12.00
151.26
Interest expenses
11
Finance costs
5952.54
74.24
12
L&T Thales Technology Services Private Limited
India
54.69
54.69
54.94
54.94
13
Graphene Semiconductor Services Private Limited
74.24
India
73.90
74.24
74.24
14
Seastar Labs Private Limited
India
73.90
73.90
74.24
74.24
73.90
15
73.90
India
74.27
8
Lymbyc Solutions Private Limited
India
74.05
74.05
74.27
74.27
9
Powerup Cloud Technologies Private Limited
73.90
India
74.05
74.27
74.27
10
Cuelogic Technologies Private Limited [c]
India
74.05
74.05
11
L&T Technology Services Limited
74.05
Esencia Technologies India Private Limited
India
73.90
India
66.26
66.26
63.62
63.62
20
L&T Infra Investment Partners Advisory Private Limited
India
66.26
66.26
Debt Fund Limited)
63.62
21
L&T Infra Investment Partners Trustee Private Limited
India
66.26
66.26
63.62
63.62
22
L&T Investment Management Limited
India
63.62
L&T Infra Credit Limited (formerly known as L&T Infra
19
63.62
73.90
74.24
74.24
16
Mindtree Limited
India
60.99
60.99
61.03
61.03
17
L&T Finance Holdings Limited
India
66.26
66.26
63.62
63.62
18
L&T Finance Limited
India
66.26
66.26
63.62
74.27
India
Ruletronics Systems Private Limited [b]
7
2020-21
1523.67
456.01
49.76
1407.81
457.87
41.33
2029.44
908.59
1907.01
906.47
0.30
76.28
5.18
1.82
crore
0.30
9.62
7.45
2947.95
2904.21
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
83.28
2021-22
544
Obsolescence on property, plant and equipment
3125.70
9078.24
7691.04
2921.01
3913.44 11604.48
12
Miscellaneous expenses
842.87
794.95
1637.82
1110.75
643.60
1754.35
39(b) Depreciation, amortisation, impairment and obsolescence
Particulars
Depreciation on:
Property, plant and equipment
Right of use assets
Investment property
Amortisation of intangible assets
Impairment on:
Property, plant and equipment
Investment property
Goodwill
Notes forming part of the Consolidated Financial Statements (contd.)
Power and fuel
NOTE [40]
Sr.
India
100.00
100.00
100.00
100.00
4
L&T Hydrocarbon Engineering Limited (al
India
100.00
100.00
L&T Infrastructure Engineering Limited
5
India
74.05
74.05
74.27
74.27
6
Syncordis Software Services India Private Limited [b]
India
74.27
74.27
Larsen & Toubro Infotech Limited
3
100.00
100.00
Name of subsidiaries
No.
As at 31-3-2022
Principal place
of business
Proportion
of effective
ownership
interest (%)
Proportion of
voting power
held (%)
As at 31-3-2021
Proportion
of effective
ownership
interest (%)
Proportion of
voting power
held (%)
Indian subsidiaries
1
Hi-Tech Rock Products and Aggregates Limited
India
100.00
100.00
100.00
100.00
2
L&T Geostructure Private Limited
India
100.00
100.00
The list of subsidiaries, associates, joint ventures and joint operations included in the Consolidated Financial Statements are as under:
66.26
Sales, administration and other expenses
24750.54
1178.07
Commission
129.31
110.27
Charter hire income
2.29
3.56
Investment/portfolio management and trusteeship fees
359.09
311.34
1345.32
Fees for operation and maintenance of power plant
2267.90
Revenue from sale of power
Other operational income:
81.95
21.60
155672.46
134476.75
540
Lease rentals
87.38
2804.94
Property maintenance recoveries
Servicing fees
201.39
Sales & service:
2021-22
crore
2020-21
Construction and project related activity
100604.09
Manufacturing and trading activity
3882.61
86406.51
3760.72
Engineering service fees
84.00
6561.80
Software development products and services
25804.51
20088.56
Income from financing activity/annuity based projects
12630.81
14107.19
Property development activity
1264.35
606.14
Fare collection and related activity
5530.89
49.63
81.96
56.44
Interest income on: [Note 46(a)]
2021-22
crore
2020-21
Loans and advances to joint ventures and associates
9.94
60.84
Investments
731.82
638.57
Particulars
Others
678.25
1063.35
1377.66
Dividend income on:
Trade investments
Current investments
Others
Net gain/(loss) on fair valuation of investments
Net gain/(loss) on sale of investments
Net gain/(loss) on derivatives at fair value through profit or loss
Net gain/(loss) on sale of PPE and Intangible assets
321.59
Other income
NOTE [35]
Notes forming part of the Consolidated Financial Statements (contd.)
Profit on sale of a subsidiary classified under realty segment
1.65
Premium earned (net) on related forward exchange contracts
53.65
61.50
Profit on sale of investment property
Technical fees
4.75
466.20
7.12
Miscellaneous income
651.71
829.06
848.77
1502.28
156521.23
135979.03
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Particulars
Lease rentals
Revenue from operations
1010.35
14.78
0.84
1671.41
1634.56
Other provisions [Note 56(a)]
1684.45
1364.12
3355.86
2998.68
NOTE [32]
Contingent Liabilities
0.86
Particulars
(b) Sales tax/GST liability that may arise in respect of matters in appeal
crore
As at 31-3-2022
3239.98
318.69
As at 31-3-2021
3222.99
351.39
(c) Excise duty/service tax/custom duty/entry tax/stamp duty/municipal cess liability that may
arise, including those in respect of matters in appeal/challenged by the Group in Writ
(d) Income tax liability that may arise in respect of which the Group is in appeal
(e) Guarantees or letter of credit or letter of comfort given to third parties
1007.85
830.85
2877.52
(a) Claims against the Group not acknowledged as debts
676.62
Others
20.64
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [31]
Current liabilities: Provisions
Particulars
Provision for employee benefits:
Gratuity [Note 52(b)(i)]
21.64
crore
As at 31-3-2021
236.44
210.43
Compensated absences
1387.54
1372.56
Employee pension scheme [Note 52(b)(i)]
25.93
29.09
Post-retirement medical benefits plan [Note 52(b)(i)]
As at 31-3-2022
529.17
340.16
(f) Corporate guarantees for debt given on behalf of joint ventures
539
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [33]
Commitments
crore
Particulars
As at 31-3-2022
As at 31-3-2021
(a) Estimated amount of contracts remaining to be executed on capital account (net of advances):
(i) Property, plant and equipment
(viii) In respect of matters at (I), the cash outflows, if any, is fully reimbursable by the third parties under an agreement entered in to with
them.
(ii) Investment property
10.13
47.56
28.88
151.14
(iii) Intangible assets
(b) Other funding commitments:
(i) Undrawn/undisbursed commitments to other companies (in Financial Services segment)
1026.95
(ii) Share of joint ventures' capital commitments
10.80
1774.32
(vii) In respect of matters at (k), the cash outflows, if any, could generally occur any time up to settlement of claims or during subsistence of
the underlying agreements.
(vi) In respect of matters at (h) to (j), the cash outflows, if any, could generally occur upto completion of projects undertaken by the
respective joint operations.
(v) In respect of matters at (g), the cash outflows, if any, could generally occur up to two years, being the period over which the validity of
the guarantees extends.
(g) Bank guarantees given on behalf of joint venture
255.12
312.67
45.10
51.18
(h) Contingent liabilities in relation to interest in joint operations
6520.74
7042.11
(i) Share in contingent liabilities of joint operations for which the Group is contingently liable
(j) Contingent liabilities in respect of liabilities of other joint operators in respect of joint
operations
57.01
61.95
4405.09
4875.31
(k) Share of joint ventures' contingent liabilities in respect of a legal claim lodged against the
entity
(1) Indemnities for performance given on behalf of third parties
Notes:
175.42
324.60
169.94
479.43
(i) The Group expects reimbursements of 13.82 crore (previous year: ₹14.24 crore) in respect of the above contingent liabilities except in
respect of matters at (I).
(ii) It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution of the
arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above excludes interest and penalty in cases where the
Group has determined that the possibility of such levy is remote.
(iii) In respect of matters at (e), the cash flows, if any, could occur any time during the subsistence of the underlying agreement.
(iv) In respect of matters at (f), the cash outflows, if any, could generally occur up to four years, being the period over which the validity
of the guarantees extends except in a few cases where the cash outflows, if any, could occur any time during the subsistence of the
borrowing to which the guarantees relate.
NOTE [34]
Miscellaneous income (net of expenses)
NOTE [36]
Manufacturing, construction and operating expenses
828.06
Repairs to plant and equipment
142.84
69.78
Repairs to buildings
25.75
22.74
General repairs and maintenance
600.33
581.74
1013.78
Provision/(reversal) for foreseeable losses on construction contracts
23.66
Other provisions
177.96
116.85
Expenses on construction job in realty business
771.74
236.81
Software development expenses
3068.32
2199.44
(18.31)
Miscellaneous expenses
Travelling and conveyance
764.91
Power and fuel
2141.26
1458.30
Royalty and technical know-how fees
4.38
57.50
Packing and forwarding
599.23
536.23
Rent and hire charges
686.11
3071.04
Bank guarantee charges
317.17
310.09
Engineering, professional, technical and consultancy fees
2302.10
2008.62
Insurance
497.25
471.08
Rates and taxes
2265.80
Finance cost of financial services business and finance lease activity
842.87
1110.75
519.07
Superannuation/employee pension and social security schemes
521.12
430.15
Gratuity funds [Note 52(b)(ii)]
209.22
180.30
1314.47
1129.52
Expenses on employee stock option scheme
584.13
135.31
Employee medical and other insurance premium expenses
362.62
329.76
Staff welfare expenses
Recoveries on account of deputation charges
1208.14
1013.57
(174.76)
(181.31)
29733.53
137.67
Provident fund and pension fund
Contribution to and provision for:
22321.33
16322.62
12983.56
5952.54
7691.04
99738.51
86700.90
542
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [37]
Employee benefits expense
crore
Particulars
Salaries, wages and bonus
2021-22
26887.75
2020-21
343.37
(2076.60)
2
Other manufacturing, construction and operating expenses:
864.95
2267.08
3429.35
2021-22
crore
2020-21
17268.17
167.33
15651.20
89.15
17100.84
33506.21
15562.05
636.16
24558.23
1213.58
3091.07
2032.89
24772.33
22316.18
property development:
Closing stock:
Finished goods
89.29
Stock-in-trade
1069.50
19.35
20.14
62.61
Particulars
Cost of raw materials, components consumed:
Raw materials and components
Less: Scrap sales
Construction materials consumed
Purchase of stock-in-trade
Stores, spares and tools consumed
Sub-contracting charges
Changes in inventories of finished goods, stock-in-trade, work-in-progress and
3.74
0.04
14.24
0.21
0.34
14.02
4.12
28.47
(259.39)
(97.86)
699.54
1216.63
85.56
(42.46)
17.60
324.10
NOTE [38]
86.01
360.03
7171.57
65682.93
Finished goods
86.01
Stock-in-trade
360.03
Work-in-progress
5252.57
98.56
308.36
5748.17
9252.28
Cost of built-up space and property development land:
3069.60
3130.39
Completed property
384.60
72.37
9152.81
9357.85
(2076.60)
105.57
Inventorisation of investment property
Work-in-progress
79539.95
11229.41
2020-21
5252.57
Cost of built-up space and property development land:
Work-in-progress
3277.96
3169.07
Completed property
366.49
384.60
11229.41
9252.28
Carried forward
11229.41 79539.95
9252.28 65682.93
541
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [36]
Manufacturing, construction and operating expenses (contd.)
Brought forward
Less: Opening stock:
crore
2021-22
Work-in-progress
Management
66.26
63.62
44
L&T Technology Services (Canada) Limited
Canada
73.90
73.90
74.24
74.24
45
Orchestra Technology, Inc.
USA
74.24
73.90
74.24
74.24
46
Mindtree Software (Shanghai) Co. Limited
China
60.99
60.99
61.03
61.03
47
73.90
Bluefin Solutions Sdn. Bhd.
74.24
73.90
40
Graphene Solutions SDN. BHD.
Malaysia
73.90
73.90
74.24
74.24
41
Graphene Solutions Taiwan Limited
Taiwan
73.90
73.90
74.24
74.24
42
Esencia Technologies Inc. [d]
USA
74.24
74.24
43
L&T Technology Services (Shanghai) Co. Limited
China
73.90
Malaysia
60.99
60.99
100.00
52
L&T Valves Arabia Manufacturing LLC
Kingdom of Saudi Arabia
100.00
100.00
100.00
100.00
53
L&T Valves USA LLC
100.00
USA
100.00
100.00
100.00
[a]
The company is in process of liquidation
[b]
The company is liquidated on August 17, 2021
[c]
The Group has acquired stake on July 7, 2021
[d]
100.00
100.00
100.00
UAE
61.03
61.03
48
Thalest Limited [e]
UK
100.00
100.00
49
Larsen & Toubro (East Asia) Sdn.Bhd.
Malaysia
30.00
100.00
30.00
100.00
50
Larsen & Toubro International FZE
UAE
100.00
100.00
100.00
100.00
51
L&T Global Holdings Limited
74.24
The company is merged with L&T Technology Services LLC w.e.f. October 1, 2021
74.24
73.90
Switzerland
74.05
74.05
74.27
74.27
29
Nielsen+Partner Pte Limited
Singapore
74.05
74.05
Nielsen+Partner Unternehmensberater AG
74.27
30 Nielsen&Partner Company Limited
Thailand
74.05
74.05
74.27
74.27
31
Nielsen&Partner Pty Limited
Australia
74.05
74.27
74.05
28
74.27
74.05
74.27
74.27
25
Syncordis Limited
UK
74.05
74.05
74.27
74.27
74.27
26
Luxembourg
74.05
74.05
74.27
74.27
27
Nielsen+Partner Unternehmensberater GmbH
Germany
74.05
74.05
Syncordis PSF S.A.
74.27
74.27
32
36
Lymbyc Solutions Inc.
USA
74.05
74.05
74.27
74.27
37
Cuelogic Technologies Inc. (c)
USA
74.27
74.05
38
L&T Technology Services LLC
USA
73.90
73.90
74.24
74.24
39
Graphene Solutions PTE Limited
Singapore
74.05
74.27
74.05
74.05
Ruletronics Limited
UK
74.05
74.05
74.27
74.27
33
Ruletronics Systems Inc.
USA
74.05
74.05
74.27
74.27
34
Larsen & Toubro Infotech UK Limited
UK
74.05
74.05
74.27
74.27
35
LTI Middle East FZ-LLC
UAE
73.90
[e]
The company is dissolved on September 7, 2021
547
60.00
60.00
India
L&T Sapura Offshore Private Limited
7
51.00
51.00
India
L&T MBDA Missile Systems Limited
6
8
74.00
India
L&T Special Steels and Heavy Forgings Private Limited
5
50.00
50.00
India
L&T-Sargent & Lundy Limited
4
50.10
50.10
74.00
India
L&T Sapura Shipping Private Limited
60.00
13
51.00
51.00
India
L&T Chennai-Tada Tollway Limited
12
51.00
51.00
India
L&T Infrastructure Development Projects Limited
India
11
50.00
Azerbaijan
L&T Hydrocarbon Caspian LLC
10
50.00
50.00
India
L&T-Chiyoda Limited
9
60.00
50.00
L&T Howden Private Limited
3
51.00
Gujarat Leather Industries Limited (al
5
39.28
39.28
39.28
39.28
India
Magtorq Engineering Solutions Private Limited
4
42.85
India
42.85
42.85
India
Magtorq Private Limited
3
49.00
49.00
49.00
49.00
UAE
L&T Camp Facilities LLC
42.85
50.00
50.00
50.00
51.00
India
L&T - MHI Power Turbine Generators Private Limited
2
51.00
51.00
India
L&T MHI Power Boilers Private Limited
1
of effective
ownership
interest (%)
Proportion
ownership
interest (%)
of effective
Proportion
Principal place
of business
As at 31-3-2021
As at 31-3-2022
No.
Name of joint ventures
Sr.
The company is under liquidation
[a]
50.00
L&T Rajkot-Vadinar Tollway Limited
India
51.00
51.00
[b]
The company ceased to be a joint venture w.e.f. October 21, 2021
[a]
61.00
Maldives
50.00
50.00
Iran
L&T Infrastructure Engineering Limited and LEA Associates South Asia Private Limited JV
LLP [c]
28
The company has been incorporated on November 18, 2021
Indiran Engineering Projects and Systems Kish PJSC
75.50
75.50
India
Raykal Aluminium Company Private Limited
26
51.00
India
Watrak Infrastructure Private Limited [b]
25
37.74
27
[c]
The entity is formed on May 24, 2021
548
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
As at 31-3-2022
Sr.
Name of associates
No.
Principal place
of business
Proportion
of effective
ownership
interest (%)
Proportion of
voting power
held (%)
As at 31-3-2021
Proportion
of effective
ownership
interest (%)
Proportion of
voting power
held (%)
1
Larsen & Toubro Qatar & HBK Contracting Co. WLL
Qatar
50.00
50.00
50.00
37.74
74.05
India
24
Panipat Elevated Corridor Limited
18
51.00
51.00
India
L&T Sambalpur-Rourkela Tollway limited
17
51.00
51.00
India
India
Kudgi Transmission Limited
51.01
51.01
India
L&T Samakhiali Gandhidham Tollway Limited
15
52.89
52.89
India
L&T Deccan Tollways Limited
14
16
51.00
51.00
19
24.98
India
L&T Halol-Shamlaji Tollway Limited (al
23
51.00
51.00
India
Ahmedabad-Maliya Tollway Limited
22
51.00
51.00
India
L&T Interstate Road Corridor Limited
21
63.86
63.86
India
L&T Transportation Infrastructure Limited
20
51.00
51.00
India
Vadodara Bharuch Tollway Limited
PNG Tollway Limited
63.62
France
24
100.00
545
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
No.
Name of subsidiaries
Indian subsidiaries
Principal place
100.00
of business
As at 31-3-2022
Proportion of
voting power
held (%)
As at 31-3-2021
Proportion
of effective
ownership
interest (%)
Proportion of
voting power
held (%)
42
L&T Construction Equipment Limited
India
100.00
Proportion
of effective
ownership
interest (%)
100.00
100.00
India
99.00
99.00
99.00
L&T Seawoods Limited
India
100.00
100.00
100.00
100.00
L&T Vision Ventures Limited [f]
100.00
India
68.00
L&T Innovation Campus (Chennai) Limited (formerly
known as L&T Electricals and Automation Limited)
India
100.00
100.00
100.00
100.00
41
L&T Realty Developers Limited
68.00
100.00
100.00
43
47
L&T Aviation Services Private Limited
India
100.00
100.00
100.00
100.00
48
L&T Capital Company Limited
India
95.00
100.00
100.00
100.00
49
L&T Infra Contractors Private Limited [h]
India
100.00
100.00
[a]
The company is merged with Larsen & Toubro Limited w.e.f. April 1, 2021
[b]
100.00
95.00
95.00
95.00
L&T Valves Limited
India
100.00
100.00
100.00
100.00
44
Bhilai Power Supply Company Limited
India
99.90
99.90
99.90
99.90
45
L&T Power Limited
India
99.99
99.99
99.99
99.99
46
Kesun Iron and Steel Company Private Limited [9]
India
99.00
The company is merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2021
India
100.00
34.94
34.94
27
L&T Metro Rail (Hyderabad) Limited [d]
India
100.00
100.00
100.00
100.00
28
36.38
L&T Arunachal Hydropower Limited
100.00
100.00
100.00
100.00
29
L&T Himachal Hydropower Limited
India
100.00
100.00
100.00
India
100.00
36.38
L&T Infra Investment Partners
23
L&T Mutual Fund Trustee Limited
India
66.26
66.26
63.62
63.62
24
L&T Financial Consultants Limited
India
India
66.26
63.62
63.62
25
Mudit Cement Private Limited
India
66.26
66.26
63.62
63.62
26
66.26
30
L&T Power Development Limited
India
100.00
100.00
100.00
35
L&T Parel Project Private Limited (formerly known as L&T
Parel Project LLP)
India
100.00
100.00
100.00
100.00
100.00
37
38
39
40
+ www b
L&T Westend Project LLP
India
100.00
100.00
100.00
36
India
L&T Asian Realty Project LLP
34
100.00
100.00
100.00
100.00
31
L&T Uttaranchal Hydropower Limited [e]
India
100.00
100.00
32
Nabha Power Limited
India
100.00
100.00
100.00
100.00
33
Chennai Vision Developers Private Limited
India
100.00
100.00
100.00
100.00
LTR SSM Private Limited
[c]
The Group has acquired stake on July 7, 2021
[d]
74.27
17
Larsen & Toubro Infotech South Africa
(Proprietary) Limited
South Africa
51.52
51.52
51.68
51.68
546
74.27
Corporate
Overview
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
No.
Name of subsidiaries
As at 31-3-2022
Management
Principal place of
business
74.05
74.27
Co., Limited
China
14
L&T Infotech Financial Services Technologies Inc.
Canada
15
Larsen & Toubro Infotech Canada Limited
Canada
16
Larsen & Toubro Infotech LLC
74.05
USA
74.05
74.27
74.27
74.05
74.05
74.27
74.27
74.05
74.05
74.27
74.05
Proportion
Proportion of
of effective
ownership
interest (%)
74.27
21
Larsen & Toubro LLC
USA
98.76
98.76
98.77
98.77
22
L&T Infotech S. DE R.L. DE C.V.
74.27
Mexico
74.05
74.27
74.27
23
Syncordis S.A.
Luxembourg
74.05
74.05
74.27
74.27
74.05
74.05
74.05
Norway
As at 31-3-2021
Proportion
of effective
voting power
Proportion of
voting power
held (%)
ownership
interest (%)
held (%)
Foreign subsidiaries
18
Larsen & Toubro Infotech GmbH
Germany
74.05
74.05
74.27
74.27
19
L&T Information Technology Spain SL
Spain
74.05
74.05
74.27
74.27
20
Larsen & Toubro Infotech Norge AS
L&T Information Technology Services (Shanghai)
13
100.00
100.00
65.00
65.00
2
Larsen & Toubro Qatar LLC [a]
Qatar
49.00
100.00
49.00
100.00
3
65.00
Larsen & Toubro Saudi Arabia LLC
100.00
100.00
100.00
100.00
4
Larsen & Toubro T&D SA (Proprietary) Limited
South Africa
72.50
72.50
72.50
Kingdom of Saudi Arabia
65.00
Sultanate of Oman
Larsen & Toubro (Oman) LLC
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders' Agreement
[e]
The Group has sold its stake on August 30, 2021
[f]
The Group has sold its stake on June 3, 2021
[g]
The company is in process of being struck off from the register of companies
[h]
The company is struck off from the register of companies w.e.f. December 28, 2021
Sr.
Name of subsidiaries
No.
Principal place of
business
As at 31-3-2022
Proportion
of effective
ownership
Proportion of
voting power
interest (%)
held (%)
As at 31-3-2021
Proportion
of effective
ownership
interest (%)
Proportion of
voting power
held (%)
Foreign subsidiaries
1
72.50
Syncordis France SARL
5
Sultanate of Oman
Kuwait
49.00
100.00
49.00
100.00
10
PT Larsen & Toubro Hydrocarbon Engineering
Indonesia
Indonesia
95.00
95.00
Larsen & Toubro Kuwait Construction General
Contracting Company WLL
95.00
11
Larsen & Toubro Electromech LLC
Sultanate of Oman
70.00
100.00
70.00
100.00
12
L&T Hydrocarbon International FZE [b]
UAE
95.00
9
100.00
100.00
70.00
100.00
70.00
100.00
6
L&T Modular Fabrication Yard LLC
Sultanate of Oman
70.00
100.00
70.00
100.00
7
Larsen Toubro Arabia LLC
Kingdom of Saudi Arabia
75.00
100.00
75.00
100.00
8
L&T Hydrocarbon Saudi Company
Kingdom of Saudi Arabia
100.00
100.00
Larsen & Toubro Heavy Engineering LLC
Corporate
Overview
237.80
50.00
51.00%
51.00%
51.00%
51.00%
60.00%
60.00%
51.00%
51.00%
Group's share in %
1909.87
2052.65
360.10
385.18
414.66
320.06
Group's share
1728.88
884.92
192.04
183.65
196.44
248.80
192.04
881.72
884.92
Carrying amount
Other adjustments
companies
Parent's investment in group
1128.81
1201.84
183.65
196.44
248.80
881.72
1735.14
Closing net assets
(0.09)
As at
31-3-2022
As at
31-3-2021
As at
31-3-2022
360.10
9.85
(96.68)
(107.69)
As at
31-3-2021
527.79
414.66
As at
31-3-2022
As at
31-3-2021
1732.94
253.08
241.02
Profit/(loss) for the year (net of NCI)
Dividend distributed during the year
Other comprehensive income (net of
NCI)
1728.88
Opening net assets
As at
31-3-2022
L&T Infrastructure
Development Projects
Limited (consolidated)
As at
31-3-2021
332.97
35.85
(234.10)
(234.10)
17.31
Other adjustments
3.95
instruments
Equity component of other financial
(102.92)
109.24
10.88
34.63
1247.35
(8.72)
(16.45)
13.09
(23.04)
(0.66)
(130.07)
2142.95
1909.87
24.76
(8.53)
11.28
10.88
19.85
1159.54
Corporate
Overview
(1.92)
(0.30)
Finance cost
(491.09)
(580.46)
(52.64)
(49.46)
(61.04)
(61.13)
(67.17)
(63.32)
Depreciation and amortisation
54.53
38.29
10.83
(12.94)
(7.93)
(50.11)
(36.68)
24.76
35.85
9.85
(96.68)
(107.69)
253.08
241.02
2.29
Profit/(loss) for the year (net of NCI)
(35.84)
(0.14)
(89.15)
(83.34)
Tax expense
(842.38)
(893.51)
(34.91)
Limited
0.13
42.76
Limited
L&T - MHI Power Turbine
Generators Private
L&T Sapura Shipping
Private Limited
L&T - MHI Power Boilers
Private Limited
Particulars
crore
(c) Summarised Statement of Profit and Loss of material joint ventures:
NOTE [43] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
L&T Infrastructure
Development Projects
Limited (consolidated)
2021-22
2020-21
2021-22
24.92
1548.31
1711.68
724.85
607.55
0.23
0.70
0.25
1763.44
Interest income
Revenue
2020-21
2021-22
2020-21
2021-22
2020-21
2310.60
(130.07)
Particulars
L&T Sapura Shipping
Private Limited
38.29
549.29
510.08
Cash and bank balances
As at
31-3-2021
As at
31-3-2022
As at
31-3-2021
L&T Infrastructure
Development Projects
Limited (consolidated)
crore
Limited
As at
31-3-2022
As at
31-3-2021
As at
31-3-2022
As at
31-3-2021
As at
31-3-2022
L&T - MHI Power Turbine
Generators Private
0.80
L&T Sapura Shipping
Private Limited
Other assets
2631.37
1070.46
143.48
254.10
3180.66
2947.70
(A)
Total current assets
1082.99
1176.96
1605.66
1231.79
9.17
1302.59
6.27
1064.19
142.68
215.81
2437.62
L&T - MHI Power Boilers
Private Limited
Current assets
Particulars
Cash flows from investing activities
Cash flows from operating activities
Particulars
(51.29)
34.70
28.45
(108.70)
Net increase/decrease) in cash and cash equivalents
(353.80)
(476.00)
(512.82)
(1046.90)
Cash flows from financing activities
(964.62)
(388.60)
Cash flows from financing activities
Net increase/decrease) in cash and cash equivalents
crore
Mindtree Limited
Disclosures pursuant to Ind AS 112 "Disclosure of interest in other entities": Joint Ventures and Associates
(a) Summarised Balance Sheet of material joint ventures:
NOTE [43]
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
553
389.50
1311.76
255.60
(595.70)
(1183.30)
(686.00)
1995.30
1537.30
2020-21
2021-22
(422.50)
2408.75
2688.65
Total non-current assets
(A+B-C-D-E)
Net assets
(E)
Non-controlling interest (NCI)
15.69
10.08
(D)
Total non-current liabilities
payables)
Other liabilities (including trade
15.69
10.08
payables)
Financial liabilities (excluding trade
Non-current liabilities
1735.14
-- 500.23
252.67
7100.33
L&T - MHI Power Boilers
Private Limited
crore
554
(b) Reconciliation of carrying amounts of material joint ventures:
138.64
1909.87
8900.32
574.11
2555.64
496.23
7596.56
83.75
2052.64
385.17
414.66
320.06
1728.88
73.23
325.90
58.06
558.29
8326.21
360.10
L&T - MHI Power Turbine
Generators Private
1482.26
750.15
403.26
230.50
payables)
Financial liabilities (excluding trade
Current liabilities
10815.82
8806.46
673.45
623.15
575.39
532.21
551.12
502.71
(B)
(including Goodwill)
443.43
271.13
419.12
643.98
304.21
523.86
353.76
655.23
331.03
33.08
22.82
466.25
1299.21
1583.95
1987.21
(C)
Total current liabilities
1474.69
payables)
Other liabilities (including trade
2031.78
1128.50
1705.19
Other comprehensive income (net of NCI)
(0.66)
(23.04)
Provisions
Trade payables
Borrowings
Liabilities associated with group(s) of assets classified as held for sale:
Total
Other assets
Tax assets
Cash and cash equivalents
Trade receivables
Inventories
Other loans
Right-of-use assets
Intangible assets under development
Other intangible assets
Goodwill
Tax liabilities (net)
Capital work-in-progress
Other liabilities
Carrying amount of net assets sold
504.59
1.63
151.74
1195.14
840.18
3.35
17.50
130.46
205.55
335.11
11.22
812.09
August 31, 2020
As at
crore
Total
Property, plant and equipment
Group(s) of assets classified as held for sale:
Particulars
(x) Gain on sale of Electrical and Automation business before tax
(ix) Profit for the year attributable to owners of the Company [(vii)-(viii)]
(viii) Non-controlling interest - discontinued operations
Profit/(loss) after tax [(v)-(vi)]
Tax expenses
(vii)
(vi)
Profit/(loss) before tax [(iii)-(iv)]
(v)
Total expenses
(iv)
Total income [(i)+(ii)]
(iii)
Other income
(ii)
(xi)
Tax on above (including related deferred tax reversal)
(xii) Gain on sale of E&A business (net of tax) [includes reclassification of exchange differences on foreign currency
translation 138.50 crore]
(xiii) Other comprehensive income
(b) Details of net assets of Electrical & Automation business divested:
14.90
8252.82
8185.46
2522.46
10707.92
52.46
52.46
4208.56
30.12
1528.47
1611.05
5.38
1605.67
2020-21
crore
(xiv) Total comprehensive income [(ix)+(xii)+(xiii)]
82.58
59.06
943.43
169.44
As at
crore
As at
31-3-2022
36.82
6.98
(57.17)
87.01
2020-21
crore
Total
Other liabilities
Provisions
Trade payables
Borrowings
Liabilities associated with group(s) of assets classified as held for sale:
31-3-2021
0.41
627.88
2.21
79.73
0.01
73.96
1.60
4.17
3.19
6.24
Total
830.78
11.17
3.32
18.98
160.01
6.24
0.01
1.40
5.39
Revenue from operations
Other assets
Cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents
Cash flows from financing activities
Cash flows from investing activities
Cash flows from operating activities
Particulars
(c) Summarised Statement of Cash Flows of discontinued operations:
NOTE [45] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
557
2455.08
1753.48
574.71
6.84
(d) The Group has following non-current assets/disposal group recognised as held for sale:
Asset/disposal group
Reportable segment
As at 31-3-2022
Trade receivables
Investments
Other loans
Right-of-use assets
Other intangible assets
Goodwill
Property, plant and equipment
Tax assets
Group(s) of assets classified as held for sale:
558
(e) The details of assets/disposal group classified as held for sale and liabilities associated thereto are as under:
Others
Current assets (L&T Vision Ventures Limited)
As at 31-3-2021
Financial services
Asset management business (L&T Investment Management Limited)
Particulars
Particulars
(i)
No.
10.70
10.23
31-3-2021
As at
As at
31-3-2022
crore
Total
Material joint ventures
Sub-total
Non-material joint ventures
Non-material associates
Particulars
(f) Share in profit/(loss) of joint ventures/associates (net):
Total
Material joint ventures
198.37
185.85
208.60
196.55
128.19
48.78
84.27
(34.38)
43.92
(32.84)
44.52
Sub-total
(1.54)
2020-21
2021-22
crore
2670.26
2729.35
2473.71
2520.75
(0.60)
14.40
Non-material joint ventures
Particulars
(232.99)
134.00
27.13
21.13
(113.13)
(94.60)
230.04
240.36
Total comprehensive income (net of NCI)
(102.92)
109.24
(8.72)
11.28
(16.45)
13.09
(d) Financial information in respect of individually not material joint ventures/associates:
crore
As at
As at
(e) Carrying amount of investments in joint ventures/associates:
(48.47)
44.55
(14.09)
0.63
(34.38)
43.92
Non-material associates
Total comprehensive income for the year
Profit/(loss) for the year
196.55
208.60
Aggregate carrying amount of investment in individually not material joint venture/associate
Aggregate amounts of the Group's share of:
31-3-2021
31-3-2022
Particulars
Other comprehensive income for the year
(1638.19)
555
Notes forming part of the Consolidated Financial Statements
5.97
45.03
Cuelogic
crore
26.46
12.15
8.77
6.56
2.21
3.38
38.61
19.11
1.55
9.91
7.65
12.86
63.86
26.46
37.40
(iv) Goodwill is attributable to future growth of business from this acquisition and assembled workforce. The goodwill is not deductible for
income tax purposes.
Sr.
(a) During the previous year 2020-21, the Group completed divestment of Electrical and Automation (E&A) business which was classified
as discontinued operation. The operating profit from E&A business upto the date of divestment and the gain on divestment have been
shown below.
Disclosure pursuant to Ind AS 105 "Non-current Assets Held for Sale and Discontinued Operations":
NOTE [45]
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
19.50
Statutory Financial
Reports
Management
Corporate
Overview
556
(viii) Trade receivables acquired have been substantially collected during the year.
(vii) The transaction costs of 0.39 crore related to the acquisition have been expensed in the Statement of Profit and Loss for the year
ended March 31, 2022.
(vi) The entity has reported revenue of 43.10 crore and profit of 0.50 crore from the date of acquisition till March 31, 2022. Had the
entity been acquired from April 1, 2021, it would have reported revenue of 57.50 crore and profit of ₹1.00 crore during 2021-22.
(v) The Group has recognised contingent consideration in accordance with the terms of the share purchase agreement. The maximum
contingent consideration of ₹14.13 crore is payable to the promoters of Cuelogic upon achievement of the specified financial targets.
The fair value of the contingent consideration is determined by assigning probabilities to achievement of targets.
Integrated
Discussion and Analysis Report
Integrated Annual Report 2021-22
2.17
16.52
Trade receivables
Current assets
Other non-current assets
Property, plant and equipment
Intangible assets
Non-current assets
Assets
Assets acquired and liabilities recognised on the date of acquisition are as follows:
(ii)
On July 7, 2021, the Group has acquired 100% stake in Cuelogic Technologies Private Limited (Cuelogic), a Pune based company,
operating in the IT & Technology Services. Cuelogic is a digital engineering company which builds and modernises digital products
leveraging cloud native metholodologies across web and mobile. Cuelogic will help bolster Group's digital engineering practice.
(i)
Acquisition of Cuelogic Technologies Private Limited
Disclosures pursuant to Ind AS 103 "Business Combinations":
NOTE [44]
Notes forming part of the Consolidated Financial Statements (contd.)
Cash and bank balances
Other current assets
Total assets
Liabilities
Cuelogic
crore
Goodwill
Less: Fair value of net assets acquired
Purchase consideration (D=A+B+C)
Contingent consideration payable over three years (C)
Deferred consideration (B)
0.81
Cash (A)
Net assets acquired
Total liabilities
Other current liabilities
Trade payables
Current liabilities
Deferred tax liabilty
Non-current liabilities
(iii) Calculation of Goodwill:
(668.70)
Cash flows from investing activities
1267.13
interest [1]
earnings
earnings
interest [1]
Retained
Non-
made controlling
Payment
Acquisition
(%)
(Dr)/Cr to
(Dr)/Cr to
Retained
(Dr)/Cr to
(Dr)/Cr to
Non-
made controlling
Payment
Acquisition
(%)
Name of group
companies
L&T Finance
2020-21
Holdings Limited
542.83
(%)
Retained
Dilution
(Dr)/Cr to
(Dr)/Cr to
Non-
received controlling
interest [1]
(%)
Proceeds
Dilution
Name of group
companies
2020-21
2021-22
crore
On account of dilution due to exercise of Employee Stock Options (without ceding control):
3.73
(546.56)
2.76%
2021-22
crore
(i) On account of acquisition of part stake (from open market):
50.00
Arabia
Larsen Toubro Arabia LLC - Subsea Seven Saudi Company Limited (formerly known as EMAS Kingdom of Saudi
Saudi Arabia Limited)
33
50.00
50.00
India
Bauer- L&T Geo Joint Venture
32
99.00
99.00
India
L&T - PCIPL JV
31
55.00
50.00
34
L&T Infrastructure Engineering - LEA Associates South Asia JV
India
(a) Change in the Group's ownership interest in a subsidiary:
Disclosure pursuant to Ind AS 112 "Disclosure of interest in other entities": Subsidiaries
NOTE [42]
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
549
earnings
The components of other equity shown in the Consolidated Balance Sheet include the Group's share in the respective reserves of subsidiaries,
joint arrangements and associates. Retained earnings comprise Group's share in general reserve and balance of Profit and Loss. Non-
controlling interest includes its share in the reserves.
75.81
75.81
Bhutan
L&T Infra Engineering JV United Consultancy
35
61.00
61.00
NOTE [41]
(Dr)/Cr to
Proceeds
Non-
received controlling
interest [1]
(Dr)/Cr to
Retained
L&T Uttaranchal Hydropower Limited
1
Name of company
Sr.
No.
550
(b) The effect of divestment with ceding of control in subsidiaries during the year is as under:
[1] Represents proportionate share of the net assets of subsidiaries.
(77.66)
86.56
8.90
(80.65)
95.27
14.62
Total
(6.84)
2
L&T Vision Ventures Limited
3
L&T Capital Markets Limited
Exceptional items before tax
Line item in Statement of
Profit & Loss in which the
gain/(loss) is recognised
-
Effect on consolidated
profit/(loss) before
non-controlling interest
2021-22 2020-21
119.70
1.62
crore
h. Servowatch Systems Limited
Total
g. Tamco Switchgear (Malaysia) SDN. BHD.
6.99
f. Tamco Electrical Industries Australia Pty Limited
d. L&T Electricals & Automation Saudi Arabia Company
Limited LLC
c. L&T Electrical & Automation FZE
W.L.L.
b. Kana Controls General Trading & Contracting Company
a. Henikwon Corporation SDN. BHD.
Subsidiaries in Electrical and Automation business
4
e. PT. Tamco Indonesia
55.00
0.15
(7.04)
0.05
0.22%
Infotech Limited
Larsen & Toubro
(24.17)
32.75
8.58
0.10%
(27.16)
41.52
14.36
0.12%
Holdings Limited
L&T Finance
earnings
27.37
(27.32)
0.27%
0.06
7.15
0.11
0.04%
Mindtree Limited
(17.98)
18.09
0.11
0.05%
0.38%
19.23
0.10
0.34%
Services Limited
L&T Technology
(28.67)
28.73
(19.13)
UAE
L&T Powerchina JV
30
90.00
90.00
India
L&T-Hochtief Seabird Joint Venture
8
26.00
26.00
India
Metro Tunneling Group
7
26.00
26.00
India
International Metro Civil Contractors Joint Venture
43.00
Metro Tunneling Chennai-L&T Shanghai Urban Construction (Group) Corporation Joint
Venture
India
75.00
75.00
14
29.00
29.00
Arabia
Kingdom of Saudi
22.00
22.00
43.00
Qatar
68.00
India
60.00
60.00
Metro Tunneling Delhi-L&T Shanghai Urban Construction (Group) Corporation Joint Venture India
L&T-Shanghai Urban Construction (Group) Corporation Joint Venture CC27 Delhi
Aktor-Larsen & Toubro-Yapi Merkezi-STFA-Al Jaber Engineering Joint Venture
Civil Works Joint Venture
11
0123
68.00
L&T-Shanghai Urban Construction (Group) Corporation Joint Venture
India
65.00
As at 31-3-2021
Proportion
of effective
ownership
interest (%)
Principal place
Name of joint operations (with specific ownership interest in the arrangement) of business
No.
Sr.
As at 31-3-2022
NOTE [40] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
Proportion
of effective
ownership
interest (%)
1
Desbuild L&T Joint Venture
India
65.00
India
L&T-AM Tapovan Joint Venture
456 1 ∞ 9
80.00
80.00
Qatar
HCC-L&T Purulia Joint Venture
Al Balagh Trading & Contracting Co W.L.L- L&T Joint Venture
50.00
50.00
India
Larsen and Toubro Limited-Shapoorji Pallonji & Co. Limited Joint Venture
2
49.00
49.00
3
Revenue from operations
India
51.00
50.00
50.00
UAE
Besix - Larsen & Toubro Joint Venture
25
55.00
55.00
India
Larsen & Toubro Limited & NCC Limited Joint Venture
24
75.00
75.00
Qatar
L&T-AL-Sraiya LRDP 6 Joint Venture
23
26
Larsen & Toubro Limited - Passavant Energy & Environment JV
India
50.00
60.00
60.00
India
L&T - Tecton JV
29
56.67
56.67
100.00
India
28
90.00
90.00
Tanzania
LNT-Shriram EPC Tanzania UJV
27
50.00
LTH Milcom Private Limited
51.00
100.00
L&T-Delma Mafraq Joint Venture
100.00
100.00
India
L&T-ISDPL (JV)
17
65.00
65.00
India
L&T-STEC JV Mumbai
16
50.00
50.00
India
DAEWOO and L&T Joint Venture
15
18
L&T-IHI Consortium
India
100.00
100.00
100.00
India
L&T- Inabensa Consortium
21
50.00
50.00
UAE
India
20
22222
60.00
60.00
India
19 Larsen and Toubro Limited-Scomi Engineering BHD Consortium-Residual Joint Works Joint
Venture
100.00
Larsen and Toubro Limited-Scomi Engineering BHD Consortium-O&M Joint Venture
3.20
224.72 Exceptional items before tax
Profit before tax from
discontinued operations
469.35
496.35
726.24
682.66
Non-current liabilities (e)
1506.19
1688.19
2413.66
3364.24
2303.24
2789.70
5252.38
5721.29
1010.68
1230.42
Net non-current assets (f)=(d)-(e)
2321.66
2681.58
1191.84
As at
Particulars
crore
Mindtree Limited
869.76
1051.78
1779.56
2140.89
Accumulated non-controlling interest
3340.08
3981.54
6939.80
8402.87
Net assets (g)=(c)+(f)
1036.84
1687.42
2617.77
3313.92
4020.12
2517.52
16491.38
9016.60
9227.53
3640.17
11660.80
1074.82
43204.83
33597.85
10091.42
9227.53
46845.00
45258.65
1993.68
1176.01
15621.44
2388.47
10403.54
11010.28
3724.73
7574.04
8339.06
Non-current assets (d)
Net current assets (c)=(a)-(b)
Current liabilities (b)
Current assets (a)
As at
31-3-2021
31-3-2022
As at
31-3-2022
31-3-2022
As at
Particulars
L&T Technology Services
Limited
Larsen & Toubro Infotech
Limited
crore
3916.45
As at
31-3-2021
As at
31-3-2021
Current assets (a)
Current liabilities (b)
(3235.28)
(281.00)
Cash flows from financing activities
272.18
(0.77)
(2471.20)
(1726.55)
(170.40)
408.15
4761.01
1928.55
2020-21
2021-22
2020-21
2021-22
(1664.28)
1295.74
Net increase/(decrease) in cash and cash equivalents
(79.00)
899.30
2179.46
1606.90
Cash flows from operating activities
2020-21
2021-22
2020-21
Limited
2021-22
L&T Technology Services
Larsen & Toubro Infotech
Limited
Particulars
crore
1397.52
(1256.90)
(945.47)
Limited
11981.27
Cash flows from investing activities
Particulars
1602.10
Net non-current assets (f)=(d)-(e)
449.80
482.60
Non-current liabilities (e)
1787.40
2084.70
2981.00
3871.30
Non-current assets (d)
Net current assets (c)=(a)-(b)
1592.20
2200.80
4573.20
6072.10
1337.60
Net assets (g)=(c)+(f)
5473.40
4318.60
L&T Finance Limited
L&T Finance Holdings
crore
(iii) Summarised Statement of cash flows
NOTE [42] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Cash flows from operating activities
Statements
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
2193.14
2609.82
Accumulated non-controlling interest
Statutory Financial
Reports
4830.58
754.58
152.58
crore
6.94
(12.31)
226.45
303.19
Profit/(loss) allocated to non-controlling interest (including
consolidation adjustments)
36.38%
33.74%
36.38%
33.74%
Effective % of non-controlling interest
116.16
220.60
44.55
870.00
Larsen & Toubro Infotech
L&T Technology Services
Particulars
Limited
Other comprehensive income
673.13
918.55
1787.39
2260.93
4971.60
5873.68
Total comprehensive income
11563.54
Profit/(loss) for the year
Revenue
2020-21
2021-22
2020-21
2021-22
Limited
14406.43
64.27
0.11
43.19
crore
Summarised Statement of Profit and Loss
(i)
(c) Disclosure of subsidiaries having material non-controlling interest:
NOTE [42] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
(145.69)
121.32
L&T Finance Holdings
L&T Finance Limited
Particulars
Limited
62.02
Other comprehensive income
116.05
218.18
1.36
807.98
166.74
2.42
312.03
10859.26
Profit/(loss) for the year
Revenue
2020-21
2021-22
2020-21
2021-22
12125.67
(370.41)
438.62
254.00
Summarised Balance Sheet
(ii)
552
NOTE [42] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
551
112.12
176.57
340.18
547.88
38.97%
39.01%
1440.12
Particulars
Current assets
Current liabilities (b)
Net current assets (c)=(a)-(b)
37390.19
46082.61
2748.26
As at
31-3-2021
As at
31-3-2022
1328.59
As at
31-3-2021
49371.46
50913.19
1750.41
As at
31-3-2022
crore
L&T Finance Limited
Accumulated non-controlling interest
Net assets (g)=(c)+(f)
Net non-current assets (f)=(d)-(e)
Non-current liabilities (e)
Non-current assets (d)
L&T Finance Holdings
Limited
80.57
329.82
1110.30
236.68
455.44
541.80
consolidation adjustments)
Profit/(loss) allocated to non-controlling interest (including
25.76%
26.10%
25.73%
25.95%
Effective % of non-controlling interest
927.13
999.12
2226.01
2325.20
Total comprehensive income
Dividend to non-controlling interest
225.14
135.58
93.59
1652.80
7967.80
10525.29
2020-21
2021-22
Mindtree Limited
crore
97.61
Dividend to non-controlling interest
Effective % of non-controlling interest
Total comprehensive income
Other comprehensive income
Profit/(loss) for the year
Revenue
Particulars
170.84
55.84
Profit/(loss) allocated to non-controlling interest (including consolidation adjustments)
1247.34
Others
(196.55)
523.28
759.83
6297.70
8109.79
128.19
(21.13)
Unallocable
1055.17
948.85
(194.80)
(276.08)
35.53
Relates to discontinued operations
(0.63)
Inter-segment
Segment total
(0.14)
(0.01)
63.82
131.24
33.05
Financial Services
280.34
257.82
5741.54
7206.59
(515.10)
Developmental Projects
394.47
361.36
627.12
20.93
(63.93)
Others
67.33
31.54
(330.39)
(150.36)
(142.67)
105.93
4.88
241.11
Power
53.30
55.88
1194.99
4.23
319.28
1173.34
516.16
Heavy Engineering
36.32
Defence Engineering
84.26
56.83
40.97
13.80
Electrical & Automation (discontinued operations)
42.17
IT & Technology Services
Hydrocarbon
1996.60
Consolidated total
1063.35
1377.66
5952.54
7691.04
128.19
14.40
1177.39
crore
assets
Particulars
2021-22
2020-21
Investment in associates and
joint ventures accounted
applying equity method
included in segment assets
As at
31-3-2022
As at
31-3-2021
Infrastructure
Additions to non-current
0.63
(discontinued operations)
Electrical & Automation
1.95
Relates to discontinued operations
(0.69)
(2.14)
Inter-segment
(20.79)
(21.89)
4.14
Consolidated total
2904.21
135.31
137.67
Note: Impairment loss included in segment expense: Hydrocarbon segment: 0.30 crore (previous year: Nil), Financial Services segment: Nil
(previous year: 5.18 crore), Developmental Projects segment: Nil (previous year: 76.17 crore) and Corporate Unallocable: Nil (previous year:
1.92 crore).
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
2947.95
Statutory Financial
Reports
77.51
Unallocable
86.41
26.43
54.51
Developmental Projects
330.44
390.97
Others
125.31
101.95
2.29
2.39
Segment total
2843.43
2849.28
131.17
137.86
104.26
68.81
Statements
Notes forming part of the Consolidated Financial Statements (contd.)
2020-21
12.20
6.80
194.80
276.08
0.40
(1.73)
2021-22
0.63
(71.71)
(50.03)
151.41
173.29
(86.68)
27.17
8.09
3.24
LARSEN & TOUBRO
2020-21
2020-21
NOTE [46] (contd.)
(a) Information about reportable segments:
Particulars
Interest income included in
segment income
Finance costs included in
segment expense
crore
2021-22
Profit/(loss) of associates
segment result
Infrastructure
Hydrocarbon
Power
Heavy Engineering
Defence Engineering
2021-22
and joint ventures
accounted applying equity
method not included in
IT & Technology Services
1847.12
1024.00
Other loans
3
Trade receivables
2
Inventories
1
Particulars
4
Sr.
No.
Disclosure pursuant to Ind AS 1 "Presentation of financial statements":
NOTE [49]
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
567
Finance lease receivables in a thermal power project: 1604.00 crore, applying fair value method based on benchmark
multiples (level 2 of the fair value hierarchy).
(a) Current assets expected to be recovered within twelve months and after twelve months from the reporting date:
Property, plant and equipment including capital work-in-progress in a hydel power plant: 1053.00 crore, applying value-in-
use method and using discount rate of 12.75%.
Other financial assets
Other current assets
months
months
Total
After
twelve
twelve
Total
twelve
months
5
months
Note
Within
After
Within
As at 31-3-2021
As at 31-3-2022
crore
twelve
11
(ii) Impairment of funded exposure in L&T Special Steels and Heavy Forgings Private Limited:
impairment of 1139.03 crore, applying value-in-use method and using discount rate of 11.90% and provision towards
constructive obligation to fund its future losses 14.85 crore, reduced by interest income of 78.58 crore from the joint venture.
(iii) Impairment of following assets in power development business on assessment of recoverable value and management's long-term
plan for the business: 2657.00 crore comprising:
Gain on divestment of wealth management business: 176.28 crore.
(b) change in ownership
(a) project agreements
Major obligations of the concessionaire are relating to:
Rights & Obligations
NOTE [47] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
(c)
Statements
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
566
Further extension of 25 years will be granted at the option of the concessionaire upon satisfaction
of Key Performance Indicators laid under the concession agreement. This option is to be exercised by
the concessionaire during the 33rd year of the initial concession period. Termination of the concession
agreement can either be due to (a) Force Majeure (b) Non Political event (c) Indirect political event
(d) Political event. On occurrence of any of the above events, the obligations, dispute resolution,
termination payments etc. are as detailed in the concession agreement.
Being DBFOT project, the project assets have to be transferred at the end of concession period.
Statutory Financial
Reports
1075.30 crore (net), comprising
issuance of Golden Share to the Government
maintenance of aesthetic quality of the Rail System
(i)
(ii) Tax expense on transfer of NxT digital business from the Parent to Mindtree Limited, a subsidiary: 46.70 crore.
(b) Exceptional items (net of tax) for 2020-21 include:
(i) Gain on divestment of stake in a hydel power plant: 143.63 crore.
(a) Exceptional items (net of tax) for 2021-22 include:
27.62 crore (previous year: 80.04 crore) [included in Note 47(a) supra]
Intangible assets have been recognised towards rights to charge the users of the utility.
(e) obligations relating to supply of electricity etc.
(d)
(d) obligations relating to competing facilities
(b) providing reasonable support and assistance in procuring applicable permits required for
construction
(a) providing required constructible right of way for construction of rail system and land required for
construction of depots and transit oriented development
Major obligations of the Government are:
(e) operation and maintenance of the rolling stock and equipment necessary and sufficient for
handling users equivalent to 110% of the average PHPDT etc.
NOTE [48]
Construction revenue
recognised
Classification of service
arrangement
(c) providing reasonable assistance in obtaining access to all necessary infrastructure facilities and
utilities
104.29
3044.91
44154.26
345
48246.80
28
Due to others
94.72
481.19
Due to micro enterprises and small
enterprises
Other financial liabilities
Trade payables:
Lease liability
1
406.10
Total
twelve
months
38.66
367.44
406.54
2
54.29
29
30
Financial Services
142.31
692.09
Developmental Projects
656.13
324.35
2998.68
Other current liabilities
754.34
488.99
45256.24
120.05
2352.58
575.91
368.94
2321.53 50568.33 42903.66
22.20 6643.32 5307.03
5888.93 34644.10 25762.66
735.36 3355.86 2244.34
2620.50
31
Provisions
6621.12
28755.17
21.90 5328.93
5506.97 31269.63
13
352.25
months
1.35
235.35
280.34 235.35
3840.04 3250.33
60132.89 46580.54
5.81
9248.40
3834.23
50884.49
19
18
8210.94
280.34
42229.78
1027.74
5820.54
2214.32
3606.22
46138.92 41202.04
5943.32
2898.41
1984.66
17
months
3251.68
54791.48
568
months
twelve
Total
twelve
twelve
Note
After
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
Within
Within
As at 31-3-2021
As at 31-3-2022
crore
No.
Particulars
Sr.
After
Financial Services
39.27
59.66
(22.77)
Current tax
Tax expense on exceptional items:
(3693.78)
119.70
Exceptional items before tax
8224.98
Deferred tax
10194.12
Net profit after tax (before exceptional items) from
(87.43)
295.48
Deferred tax
(3923.39)
(4512.09)
Current tax
continuing operations
12235.80
(48.44)
186.20
96.93
Net profit after tax from discontinued operations
(2552.58)
Tax expense of discontinued operations
10790.50
Profit from discontinued operations
Discontinued operations
4683.36
Exceptional items (net of tax)
10419.24
14.40
128.19
(net)
Share in profit/(loss) after tax of joint ventures/associates
(3556.02)
4668.96
10291.05
Net profit after tax from continuing operations
Profit for the year from continuing operations
8237.92
14410.73
Profit before exceptional items and tax
Inter-segment margins on capital jobs
Result of discontinued operations
Total
Others
Developmental Projects
Financial Services
IT & Technology Services
Finance costs
Electrical & Automation (discontinued operations)
533.48
Defence Engineering
488.32
470.46
Heavy Engineering
111.22
139.49
616.98
Tax expense:
Unallocated corporate income net of expenditure
6410.44
2031.49
1187.10
(3913.44)
(3125.70)
(24.95)
(84.37)
14227.07
84.37
(65.32)
1122.96
938.52
(2651.53)
(230.59)
1285.78
1469.80
4823.20
16414.65
Power
Net profit after tax from continuing operations &
10419.24
107342.41
105459.21
6898.22
8088.49
30340.20
34529.13
3766.94
86746.21
3732.45
4847.75
1430.06
1314.82
3169.97
2899.17
4672.13
4757.17
5857.41
6694.17
89968.72
27552.27
28690.99
27007.36
Corporate unallocated assets/liabilities
184842.22
190948.57
284592.69
295693.09
Developmental Projects
Segment total
6301.54
13636.87
14375.84
Others
8689.24
7416.60
30091.85
5984.01
discontinued operations
7037.69
11632.20
560
(a) Information about reportable segments:
NOTE [46] (contd.)
Inter-segment assets/liabilities
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
crore
559
8669.33
profit/(loss) of joint ventures/associates
Net profit after tax, non-controlling interests and share in
(1338.35)
(1749.91)
Non-controlling interest for the year
12921.28
11582.93
11489.78
Particulars
31-3-2022
10346.92
13799.14
51943.12
60959.09
77112.89
85192.89
Financial Services
Segment Assets
As at
IT & Technology Services
Heavy Engineering
Power
Hydrocarbon
Infrastructure
As at
31-3-2021
Segment Liabilities
As at
31-3-2022
As at
31-3-2021
Defence Engineering
Viability Gap Funding of 1458 crore.
1369.25
Hydrocarbon
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
NOTE [46]
Corporate
Overview
(2651.53)
(2009.97)
Consolidated total assets/liabilities
320048.92
311273.71
224675.19
223353.65
(2009.97)
crore
Disclosure pursuant to Ind AS 108 "Operating Segment":
crore
Hydrocarbon
61961.64
530.32
61431.32
73560.09
1155.73
72404.36
(a) Information about reportable segments:
Infrastructure
Total
For the year ended 31-3-2021
Inter-
segment
External
Total
Inter-
segment
For the year ended 31-3-2022
External
Particulars
Revenue
19174.55
Particulars
expense
Heavy Engineering
46.41
47.21
1.18
0.82
Defence Engineering
116.76
0.48
136.69
1.14
Electrical & Automation (discontinued operations)
0.69
2.14
IT & Technology Services
1202.94
1162.65
1.83
Depreciation, amortisation,
impairment & obsolescence
included in segment
0.91
32.33
2021-22
Non-cash expenses other
than depreciation included
in segment expense
2020-21
2021-22
2020-21
Infrastructure
737.86
35.58
705.46
33.53
Hydrocarbon
170.45
179.36
2.56
3.58
Power
36.31
1500.64
90.66
16924.54
137499.66
158632.98
2111.75
156521.23
Total
6092.75
240.04
1389.18
5852.71
294.13
5987.71
Others
3621.43
3621.43
4367.52
4367.52
6281.84
Developmental Projects
138888.84
(1520.63)
4521.54
5182.41
Infrastructure
Segment result [Profit/(loss) before interest and tax]
135979.03
135979.03
156521.23
Revenue from discontinued operations
156521.23
(1304.14)
(1304.14)
(2111.75)
(2111.75)
Inter-segment revenue
(1605.67)
(85.04)
Total
19265.21
13403.55
11971.10
3018.48
306.81
2711.67
3038.81
314.52
2724.29
Heavy Engineering
Defence Engineering
3192.64
3174.15
4448.19
30.19
4418.00
Power
16963.80
39.26
18.49
13403.55
3217.93
3226.40
11971.10
Financial Services
25618.76
155.40
25463.36
32473.82
218.05
8.47
32255.77
1605.67
85.04
1520.63
Electrical & Automation (discontinued operations)
3410.12
13.82
3396.30
IT & Technology Services
Fare collection rights from the users of the Metro Rail System, license to use land provided by the
government for constructing depots and for transit oriented development and earn lease rental
income on such development and grant of viability gap fund.
Initial period of 35 years and extendable by another 25 years at the option of the concessionaire
subject to fulfilment of certain conditions under concession agreement. Considered further extension
of initial concession period by 7 years in terms of Article 29 of Concession Agreement.
Funding from grantor
Infrastructure return at the
end of the concession period
Renewal and termination
options
136.03
report
72404.36
12320.94
6789.80
19110.74
63.82
19174.56
4150.44
264.56
4415.00
3.00
72268.33
4418.00
1597.04
1084.61
2681.65
42.64
2724.29
Defence Engineering
2796.28
418.70
3214.98
2.94
3217.92
Heavy Engineering
16737.96
55530.37
Power
Power segment comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power generation
equipment with associated systems and/or balance-of-plant packages.
Heavy Engineering segment comprises manufacture and supply of custom designed, engineered critical equipment &
systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil & Gas and Thermal & Nuclear Power.
Defence Engineering segment comprises (a) design, development, serial production and through life-support of equipment,
systems and platforms for Defence and Aerospace sectors and (b) design, construction and repair/refit of defence vessels.
Electrical & Automation segment (upto the date of divestment and disclosed as discontinued operation) comprises
(a) manufacture and sale of low and medium voltage switchgear components, custom-built low and medium voltage
switchboards, electronic energy meters/protection (relays) systems and control & automation products and (b) marine control &
automation systems.
IT & Technology Services segment comprises information technology and integrated engineering services.
Financial Services segment comprises rural finance, housing finance, infrastructure finance and asset management.
Developmental Projects segment comprises (a) development, operation and maintenance of infrastructure projects, toll and
fare collection and (b) power generation & development (i) thermal power and (ii) hydel power (upto the date of divestment).
Others segment includes realty, manufacture and sale of industrial valves, smart world & communication projects (including
military communications), manufacture, marketing and servicing of construction equipment and parts thereof, marketing
and servicing of mining machinery and parts thereof, manufacture and sale of rubber processing machinery and and digital
platforms (i) SuFin for B2B e-commerce & (ii) EduTech for higher education and professional skilling. None of the businesses
reported as part of others segment meet any of the quantitative thresholds for determining reportable segments for the year
ended March 31, 2022.
563
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47]
Disclosure pursuant to Ind AS 115 "Revenue from Contracts with Customers":
(a) Disaggregation of revenue into operating segments and geographical areas:
2021-22
Revenue as per Ind AS 115
Segment
Domestic
Foreign
Other revenue
Total
crore
36378.15
Statement
of Profit and
Loss/Segment
Infrastructure
Hydrocarbon
IT & Technology Services
Hydrocarbon segment comprises EPC solutions for the global Oil & Gas Industry from front-end design through detailed
engineering, modular fabrication, procurement, project management, construction, installation and commissioning.
2278.72
Financial Services
Loss/Segment
Infrastructure
45439.78
15689.25
61129.03
302.29
report
61431.32
Hydrocarbon
8923.18
7985.88
16909.06
of Profit and
15.48
Power
3004.23
148.25
3152.48
21.67
3174.15
Heavy Engineering
1176.67
1492.11
2668.78
42.89
16924.54
Total as per
Statement
crore
Total
482.85
Developmental Projects
3282.83
32255.77
482.85
3282.83
32255.77
11488.25
11971.10
Others
5504.74
453.15
5957.89
Total
87944.21
55725.83
143670.04
1084.69
29.82
12851.19
4367.52
5987.71
156521.23
2020-21
Revenue as per Ind AS 115
Segment
Domestic
Foreign
Other revenue
29977.05
2711.67
Infrastructure segment comprises engineering and construction of (a) building and factories, (b) transportation
infrastructure, (c) heavy civil infrastructure, (d) power transmission & distribution, (e) water & effluent treatment and (f)
minerals & metals.
•
United Arab Emirates
Bangladesh
Qatar
Algeria
Kuwait
United Kingdom
Other countries
Total foreign countries (ii)
Total (i+ii)
crore
Revenue [1]
Sultanate of Oman
2021-22
100738.60
86564.17
21914.49
17806.21
7848.53
7641.83
2997.58
2333.69
2813.65
1981.85
2473.87
1456.73
2020-21
United States of America
Kingdom of Saudi Arabia
Foreign countries (ii):
India (i)
984.87
735.65
Segment total
Unallocable
Inter-segment
Consolidated total
6322.92
4277.25
0.06
2729.35
1159.54
0.07
2670.26
2024.21
1809.22
(239.32)
(1207.12)
8107.81
4879.35
2729.35
2670.26
561
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46] (contd.)
(b) Geographical information
Particulars
2140.05
•
1670.39
3019.13
50063.99
50769.38
(c)
Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed 10%
of the Group's total revenue.
(d) The Group's reportable segments are organised based on the nature of products and services offered by these segments.
(e) Segment reporting: basis of identifying operating segments, reportable segments and definition of each reportable segment:
Basis of identifying operating segments:
(i)
Operating segments are identified as those components of the Group (a) that engage in business activities to earn revenues
and incur expenses (including transactions with any of the Group's other components); (b) whose operating results are regularly
reviewed by the Group's Corporate Executive Management to make decisions about resource allocation and performance
assessment; and (c) for which discrete financial information is available.
The Group has nine reportable segments [described under "segment composition"] which are the Group's independent businesses.
The nature of products and services offered by these businesses are different and are managed separately given the different sets of
technology and competency requirements. In arriving at the reportable segment, the six operating segments have been aggregated
and reported as "infrastructure segment" as these operating segments have similar economic characteristics in terms of long term
average gross margins, nature of the products and services, type of customers, methods used to distribute the products and services
and the nature of regulatory environment applicable to them.
(ii) Reportable segments:
An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute amount
of result or assets exceed 10% or more of the combined total of all the operating segments.
Total
562
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46] (contd.)
(iii) Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management
reports that are reviewed by the Group's Corporate Executive Management. The performance of financial services segment and
finance lease activities of power development segment are measured based on segment profit (before tax) after deducting the
interest expense.
(iv) Segment composition:
•
•
Corporate
Overview
2601.29
2181.15
Foreign countries
1666.82
2930.32
1565.20
995.39
10378.04
11099.95
55782.63
50935.49
156521.23
137499.66
1520.63
Less: Discontinued operations
Total
156521.23
135979.03
[1] Geography wise break up of revenue is based on location of project other than service industries where it is based on location of customer.
crore
Non-current assets
Particulars
As at
31-3-2022
As at
31-3-2021
India
47882.84
48168.09
1984.40
Defence Engineering
Total as per
823.24
During the current year, increase in net contract balances is primarily due to higher revenue recognition as compared to progress
bills raised.
During the previous year, decrease in net contract balances is primarily due to lower revenue recognition as compared to progress
bills raised.
Revenue recognised from opening balance of contract liabilities amounts to 6520.65 crore (previous year: 6529.93 crore).
(iii) Revenue recognised from the performance obligation satisfied (or partially satisfied) upto previous year (arising out of contract
modifications) amounts to 183.85 crore (previous year: 184.65 crore).
(e) Cost to obtain/fulfil the contract:
(i)
Amortisation in Statement of Profit and Loss: 68.94 crore (previous year: 48.77 crore).
(ii) Recognised as contract assets as at March 31, 2022: 88.46 crore (as at March 31, 2021: 117.28 crore).
565
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
Note:
NOTE [47] (contd.)
Reconciliation of contracted price with revenue during the year:
crore
Particulars
2021-22
2020-21
Opening contracted price of orders on hand as at April 1 [1]
757584.33
726478.59
Add:
Fresh orders/change orders received (net)
Increase due to additional consideration recognised as per contractual
terms/(decrease) due to scope reduction (net)
(f)
(4030.77)
(199.72)
(4230.49)
(d) Contract balances:
(i) Movement in contract balances during the year:
crore
2021-22
2020-21
Particulars
Contract
assets
(A)
Contract Net contract
liabilities
Contract
(B)
Balance as at April 1
47619.14
Balance as at March 31
52043.67
Net increase/decrease)
4424.53
27819.73
30781.57
2961.84
balances
(A-B)
19799.41
21262.10
1462.69
assets
(A)
Contract Net contract
liabilities
(B)
51849.63
47619.14
28019.45
27819.73
balances
(A-B)
23830.18
19799.41
Addition/(deletion) on account of business combination/divestment
Increase/(decrease) due to exchange rate movements (net) and others
1174.22
Less:
Closing contracted price of orders on hand as at March 31 [1]
378384.27
341750.48
849547.00
757584.33
2565.67
Outstanding performance
As at March 31, 2022
As at March 31, 2021
Total
Upto
378384.27
341750.48
585.64
1 Year
158010.81
133445.56
Beyond
5 years
8488.29
7155.71
67802.71
64675.40
23743.85
18652.99
5596.80
6020.31
(h) The Group has undertaken a project for construction, operation and maintenance of the Metro Rail System on Design-Build-Finance-
Operate-Transfer (DBFOT) basis as per the concession agreement with the government authorities. The significant terms of the
arrangement are as under:
Period of the concession
Remuneration
Time for expected conversion in revenue
1 to 2 years
2 to 3 years 3 to 4 years
4 to 5 years
114741.81
111800.51
(3447.08)
324114.92
364086.72
Total revenue recognised during the year
Less: Revenue out of orders completed during the year
Revenue out of orders under execution at the end of the year (i)
Revenue recognised upto previous year (from orders pending
completion at the end of the year) (ii)
Increase/decrease) due to exchange rate movements (net) (iii)
Balance revenue to be recognised in future viz. Order book (iv)
Closing contracted price of orders on hand as at March 31 [1] (i+ii+iii+iv)
[1] including full value of partially executed contracts
(g)
Outstanding performance and time for its expected conversion into revenue:
185311.91
172612.76
544.16
(19858.81)
(5195.92)
1641.45
(1971.03)
95534.85
114481.26
849547.00
757584.33
143670.04
122576.29
33146.95
31443.00
110523.09
91133.29
Orders completed during the year
1619.72
crore
3892.51
3621.43
5852.71
137499.66
Less: Revenue from discontinued
operations
Total
462.59
50445.46
(b) Break up of revenue (as per Ind AS 115) into over a period of time and at a point in time:
1048.59
70619.65
1511.18
121065.11
9.45
14913.92
1056.47
521.45
14923.37
1520.63
135979.03
crore
Over a period of time
At a point in time
Year
Continuing
operations
Discontinued
operations
Total
Continuing
operations
Discontinued
operations
Total
2021-22
2020-21
564
13403.55
12946.28
457.27
2564.96
5331.26
122576.29
0.09
3405.60
3388.91
7.39
3396.30
Electrical & Automation (discontinued
operations)
1048.59
462.59
1511.18
9.45
1520.63
IT & Technology Services
1806.84
23656.52
25463.36
25463.36
Financial Services
455.59
1.68
Developmental Projects
Others
2564.96
4682.73
Total
71668.24
648.53
50908.05
133075.90
133075.90
40521.40
10594.14
receivables
2021-22
3405.59
Changes in allowance for ECL:
Provision/(reversal) of allowance for ECL
430.06
375.05
375.95
144.83
Additional provision (net)
200.08
279.07
69.28
17.95
Written off as bad debts
(146.52)
(425.58)
Translation adjustment
3.10
0.27
(0.61)
Addition on account of business combination
0.20
10594.14
Provision as at March 31
Provision on trade
1012.05
(4.24)
3181.21
112.61
1174.22
112080.96
112193.57
1398.57
10382.72
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
8984.15
Notes forming part of the Consolidated Financial Statements (contd.)
2020-21
2021-22
LARSEN & TOUBRO
contract assets
Provision on
crore
2020-21
Provision as at April 1
Particulars
NOTE [47] (contd.)
Movement in expected credit loss ("ECL") during the year:
(c)
5.10
(iii) Tax credit for Research & Development in foreign jurisdiction(s)
NOTE [54]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 "Related Party Disclosures":
(a) List of related parties:
(i) Name of associate entities with whom transactions were carried out during the year:
Associate Entities:
1 Magtorq Private Limited
3 Larsen & Toubro Qatar & HBK Contracting Co. WLL
2 Magtorq Engineering Solutions Private Limited
4
L&T Camp Facilities LLC
Name of joint venture entities with whom transactions were carried out during the year:
Joint Venture Entities:
578
1
L&T Infrastructure Development Projects Limited
3 Ahmedabad - Maliya Tollway Limited
5 L&T Chennai-Tada Tollway Limited
7 L&T Rajkot-Vadinar Tollway Limited
5.67
9 L&T Deccan Tollways Limited
48.80
Disclosure pursuant to Ind AS 20 "Accounting for Government Grants and Disclosure of Government Assistance":
During the year, the Group has recognised the following Government Grants as income/reduction from underlying expenses:
311.27
11 Kudgi Transmission Limited
(D) Trust-managed provident fund plan:
The Parent Company and a few subsidiaries manage provident fund plan through a provident fund trust for its employees
which is permitted under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The plan mandates
contribution by employer at a fixed percentage of employee's salary. Employees also contribute to the plan at a fixed
percentage of their salary as a minimum contribution and additional sums at their discretion. The plan guarantees interest
at the rate notified by the provident fund authority. The contribution by employer and employee together with interest are
payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately
on rendering of service.
The interest payment obligation of trust-managed provident fund is expected to be adequately covered by the interest income
on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised in the
Statement of Profit and Loss as actuarial loss. Any loss/gain arising out of the investment risk and actuarial risk associated with
the plan is also recognised as expense or income in the period in which such loss/gain occurs.
All the above defined benefit plans expose the Group to general actuarial risks such as interest rate risk and market
(investment) risk.
(ix) The Group will assess the impact of Code on Wages, 2019 and the Code on Social Security, 2020 and give effect in the financial
statements when the date of implementation of these codes and the Rules/Schemes thereunder are notified.
577
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
13.85
Notes forming part of the Consolidated Financial Statements (contd.)
Particulars
(i)
Export incentives, duty drawback and other schemes
(ii)
Benefits towards employee benefits expenses for COVID-19 pandemic
crore
2021-22
2020-21
89.65
NOTE [53]
2 L&T Interstate Road Corridor Limited
1 Larsen & Toubro Officers & Supervisory Staff Provident
Fund
6 Panipat Elevated Corridor Limited
3 Larsen & Toubro Limited Provident Fund
2 Larsen & Toubro Limited Provident Fund of 1952
4
L&T Kansbahal Officers & Supervisory Provident Fund
5 L&T Kansbahal Staff & Workmen Provident Fund
6
L&T Construction Equipment Employees Provident Fund
Trust
7 L&T Valves Employees Provident Fund
Gratuity Trusts:
1 Larsen & Toubro Officers & Supervisors Gratuity Fund
3 L&T Technology Services Limited Employee Group Gratuity
Scheme
5 Nabha Power Limited Employees' Group Gratuity
Assurance Scheme
7 Mindtree Limited Employees Gratuity Fund Trust
Superannuation Trust
2 Larsen & Toubro Gratuity Fund
4
L&T Shipbuilding Limited Employees Group Gratuity
Assurance Scheme
6 L&T Hydrocarbon Engineering Limited Group Gratuity
Scheme
In addition to contribution to State-managed pension plan (EPS scheme), the Group operates a post retirement pension
scheme, which is discretionary in nature for certain cadres of employees. The quantum of pension depends on the cadre of the
employee at the time of retirement. The plan is unfunded. Employees do not contribute to the plan.
Provident Fund Trusts:
(iii) Name of post-employment benefit plans with whom transactions were carried out during the year:
L&T Infrastructure Engineering Limited and LEA
Associates South Asia Private Limited JV LLP [2]
[2] The entity is formed on May 24, 2021
8 Vadodara Bharuch Tollway Limited
10 L&T Samakhiali Gandhidham Tollway Limited
12
L&T Sambalpur-Rourkela Tollway limited
13 L&T Transportation Infrastructure Limited
15
14
L&T-Chiyoda Limited
L&TMHI Power Boilers Private Limited
16 L&T MHI Power Turbine Generators Private Limited
4 L&T Halol-Shamlaji Tollway Limited [1]
17 L&T-Sargent & Lundy Limited
19 L&T Sapura Shipping Private Limited
20
L&T Sapura Offshore Private Limited
21
L&T Special Steels and Heavy Forgings Private Limited
23 Raykal Aluminium Company Private Limited
22
L&T MBDA Missile Systems Limited
24
[1] The company ceased to be a joint venture w.e.f. October 21, 2021
18 L&T Howden Private Limited
(C) Pension plan:
92.70
(B) Post-retirement medical plan:
6.66
14.50
7.52
6.97
14.92
8.01
As at 31-3-2022
As at 31-3-2021
6.82%
6.30%
6.82%
6.30%
6.82%
6.30%
5.00%
5.00%
6.06%
9.00%
9.00%
(a) For gratuity plan, the attrition rate varies from 1% to 40% (previous year: 1% to 31%).
(b) For pension plan, the attrition rate varies from 0% to 2% (previous year: 0% to 2%).
(E)
As at 31-3-2021
(c) For post-retirement medical benefit plan, the attrition rate varies from 1% to 40% (previous year: 1% to 23%).
As at 31-3-2022
Pension plan
(vi) The average duration (in number of years) of the defined benefit obligation at the end of the reporting period is as follows:
Plans
1.
Gratuity
2.
Post-retirement medical benefit plan
3. Pension plan
(vii) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted average):
Plans
(A) Discount rate:
(a) Gratuity plan
(c)
(b) Pension plan
Post-retirement medical benefit plan
(B)
Annual increase in healthcare costs (see note below)
(C) Salary growth rate:
(a) Gratuity plan
(b)
(D) Attrition rate for various age groups:
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors, such as supply and demand in the employment market.
(F) The interest payment obligation of trust-managed provident fund is expected to be adequately covered by the interest income
on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised in the
Statement of Profit and Loss as actuarial losses.
(G) The obligation of the Group under the post-retirement medical benefit plan is limited to the overall ceiling limits. At present,
healthcare cost, as indicated in the principal actuarial assumption given above, has been assumed to increase at 5% p.a.
As at
31-3-2021
(79.91)
(83.36)
93.34
90.02
27.04
27.96
(46.48)
(48.28)
(22.18)
58.96
(22.84)
61.81
Impact of change in discount rate
(26.45)
(28.08)
30.37
32.39
(viii) Characteristics of defined benefit plans and associated risks:
(A) Gratuity plan:
The Parent Company operates gratuity plan through a trust whereby every employee is entitled to the benefit equivalent to
fifteen days salary last drawn for each completed year of service. The same is payable to vested employees at retirement, death
while in employment or on termination of employment. The benefit vests after five years of continuous service. The Company's
scheme is more favourable as compared to the obligation under The Payment of Gratuity Act, 1972.
The defined benefit plans for gratuity of the Parent Company and material domestic subsidiary companies are administered by
separate gratuity funds that are legally separate from the Parent Company and the material domestic subsidiary companies.
The trustees nominated by the Group are responsible for the administration of the plans. There are no minimum funding
requirements of these plans. The funding of these plans is based on gratuity fund's actuarial measurement framework set
out in the funding policies of the plan. These actuarial measurements are similar compared to the assumptions set out in (vii)
supra. An insignificant portion of the gratuity plan of the Group attributable to subsidiary companies is administered by the
respective subsidiary companies and is funded through insurer managed funds. A part of the gratuity plan is unfunded and
managed within the Group. Further, the unfunded portion also includes amounts payable in respect of the Group's foreign
operations which result in gratuity payable to employees engaged as per the local laws of country of operation. Employees do
not contribute to any of these plans.
crore
As at
31-3-2022
Effect of 1% decrease
As at
31-3-2021
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [52] (contd.)
(H) A one percentage point change in actuarial assumptions would have the following effects on defined benefit obligation:
The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees
post their retirement. The reimbursement is subject to an overall ceiling sanctioned based on cadre of the employee at the
time of retirement. The plan is unfunded. Employees do not contribute to the plan.
Effect of 1% increase
Gratuity
Impact of change in salary growth rate
Impact of change in discount rate
Post-retirement medical benefit plan
Impact of change in health care cost
Impact of change in discount rate
Company pension plan
As at
31-3-2022
(82.42)
89.01
(79.22)
Particulars
6.20%
(i) Current income tax:
(a) Profit and Loss section:
Net liability/(asset)
(0.52)
(0.21)
Assets
51.62
65.91
377.95
371.56
360.06
354.57
277.78
337.93
Liabilities
B) Amounts reflected in the Balance Sheet
(481.41)
(445.95)
377.95
371.56
360.06
354.57
277.26
337.72
Amount to be recognised as liability or
(asset)
7.14
6.13
1.06
0.39
337.72
277.26
354.57
360.06
Trust-managed
Pension plan
medical benefit plan
Gratuity plan
2021-22
209.67
Current service cost
1
Particulars
Post-retirement
crore
The amounts recognised in Statement of Profit and Loss are as follows:
348.86
345.63
338.42
Add: Amount not recognised as an asset
[limit in para 64(b)]
333.93
51.62
65.91
29.09
25.93
21.64
20.64
277.26
337.72
Net liability/(asset) - Current
51.62
65.91
377.95
371.56
Net liability/(asset) - Non-current
provident fund plan
5849.85 5238.92
6301.93 5727.47
371.56
(0.23)
16.20
(4.25)
3.38
(295.48)
(1518.34)
Net deferred tax liability/(assets)
(2840.10)
(2697.00)
Net deferred tax (assets)
2785.69
2856.41
liabilities
Offsetting of deferred tax (assets) with deferred tax
(5625.79)
(0.73)
(29.25)
1.23
3.38
(47.01)
(5553.41)
Deferred tax (assets)
(939.10)
(0.73)
(29.27)
1.23
3.38
(2.05)
(1800.77)
Corporate
Overview
Management
360.06
354.57
377.95
371.56
360.06
354.57
5849.85 5238.92
1191.84 1092.08
236.44 210.43
1428.28 1302.51
1090.95 1026.31
Less: Fair value of plan assets
- Wholly unfunded
A) Present value of defined benefit obligation
-Wholly funded
As at
As at
31-3-2022 31-3-2021
Trust-managed
provident fund plan
377.95
Pension plan
Particulars
Gratuity plan
crore
(i) The amounts recognised in Balance Sheet are as follows:
(b) Defined benefit plans:
Defined contribution plans: Amount of 876.60 crore (previous year: 804.43 crore) has been incurred. Out of above, 876.60 crore
(previous year: 790.91 crore) is included in "employee benefits expense" [Note 37] and Nil (previous year: 7.24 crore) pertains to
discontinued operations in the Statement of Profit and Loss and Nil (previous year: 6.28 crore) has been capitalised.
Disclosure pursuant to Ind AS 19 "Employee Benefits" [Note 1(II)(p)]:
NOTE [52]
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Post-retirement
medical benefit plan
As at
As at
As at
As at
As at
As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
(76.62)
2020-21
183.77
I.
Trust-managed
provident fund plan
2021-22 2020-21
2020-21
2021-22
2021-22 2020-21
2020-21
2021-22
Pension plan
Post-retirement
medical benefit plan
Particulars
Gratuity plan
crore
574
NOTE [52] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
573
172.67
229.00
32.90
18.40
| | |
(0.02)
32.04
8.25
146.32
165.12
Amount included in "Employee benefits
expense"
209.22
180.30
22.70
5.25
(18.32)
(12.06)
(37.12)
(50.59)
(50.44)
comprehensive income"
Amount included as part of "Other
IV.
23.62
23.52
22.31
22.67
Total (1 to 11)
12.20
costs"
III. Amount included as part of "finance
0.87
0.76
operating expenses"
"Manufacturing, construction and
Amount included as part of
II.
169.56
229.00
4.03
13.20
21.34
5.58
2021-22 2020-21
(0.32)
11
-
Re-measurement - Actuarial losses/
4
(402.85)
(426.23)
(54.36)
(62.93)
Interest income on plan assets
3
402.85
426.23
23.62
172.67 [3]
229.00 [3]
4.03
2020-21
2021-22
2020-21
2021-22
2.98
23.52
22.31
22.67
67.41
69.37
Interest cost
2
21.81
22.70
(gains) Difference between actual return
on plan assets and interest income
(34.31)
(53.12)
0.29
(0.55)
Translation adjustments
10
------
(0.59)
Re-measurement - Effect of the limit in
para 64(b)
9
0.19
Adjustment for earlier years
8
194.87
(36.84)
Amount capitalised out of the above
books
7
5.25
(18.32)
10.22
Past service cost
6
(12.06)
3.05 (37.12)
(16.13)
(gains) - Others
Re-measurement - Actuarial losses/
5
(194.87)
36.84
Actuarial gain/(loss) not recognised in
(837.08)
Other items giving rise to temporary differences
(185.76)
25.17%
25.17%
19332.52
14530.43
8542.02
10790.50
14530.43
2020-21
2021-22
(c) Tax on accounting profit [(c)=(a)*(b)]
(b) Corporate tax rate as per Income Tax Act, 1961
Continuing operations (including exceptional items)
Discontinued operations
Profit before tax from:
Particulars
Sr.
No.
(a)
crore
(b) Reconciliation of Income tax expense and accounting profit multiplied by domestic tax rate applicable in India:
NOTE [51] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
531.41
113.09
3657.02
4865.61
(d) (i)
Tax on Corporate Social Responsibility expenses, not tax deductible
4239.39
1560.03
582.37
521.64
138.75
117.77
14.36
(329.17)
(158.70)
488.34
582.49
Unused tax losses for which no deferred tax asset is recognised in Balance Sheet:
Effective tax rate [(f)=(e)/(a)]
Income tax expense/(income) [(i)+(ii)]
(f)
Total effect of tax adjustments [(i) to (vii)]
(vii) Tax effect on various other items
(vi) Effect of current tax related to earlier years
(iv) Tax effect of losses of current year on which no deferred tax benefit is recognised
(v) Effect of tax paid on foreign source income which is exempt from tax in India
(166.56)
(31.90)
(iii) Effect of previously unrecognised tax losses and unutilised tax credits used to reduce tax
expense
875.18
(21.41)
Tax effect on impairment/(reversal) and fair valuation losses recognised on which deferred
tax asset is not recognised
(ii)
52.83
58.78
(e) Tax expense recognised during the year [(e)=(c)+(d)]
6425.64
520.17
4.42
(b) Other comprehensive income section:
6425.64
4239.38
2552.58
3873.06
4239.38
Profit from discontinued operations
Profit from continuing operations (including exceptional items)
Income tax expense attributable to:
(1.56)
348.65
6425.64
4239.38
Income tax expense/(income) [(i)+(ii)]
(295.48)
0.06
Effect of previously unrecognised tax losses and tax offsets on which deferred tax benefit is
recognised
350.21
(295.54)
Tax expense on origination and reversal of temporary differences
(ii) Deferred tax:
117.77
6076.99
4534.86
14.36
(164.99)
6124.21
4552.46
(31.96)
Effect of previously unrecognised tax losses and tax offsets used during the current year
Tax expense of earlier years
Current income tax expense
(i) Items not to be reclassified to profit or loss in subsequent periods:
(A) Current tax expense/(income):
On re-measurement of defined benefit plans
25.04
(6.69)
On exchange differences in translating the financial statements of foreign operations
31.14
(23.02)
On gain/(loss) on fair value of debt securities
481.63
44.65
On mark to market gain/(loss) on cash flow hedges
2.98
0.77
Net gain/(loss) on cost of hedging reserve
(B) Deferred tax expense/(income):
(2.45)
15.71
71.85
71.85
On gain/(loss) on cash flow hedges other than mark to market
(A) Current tax expense/(income):
(ii) Items to be reclassified to profit or loss in subsequent periods:
0.16
0.49
0.16
0.49
On re-measurement of defined benefit plans
(B) Deferred tax expense/(income):
13.53
25.04
13.53
(2.45)
29.18%
33.24%
(c) (i)
45.45
(5.48)
(248.47)
4035.07
Deferred tax liabilities
1047.38
(1.53)
0.03
(6.83)
(192.54)
1248.25
Other items giving rise to temporary differences
282.62
(0.23)
45.42
10.41
227.02
settlement
offered for tax purposes in the year of transfer/
Net gain/(loss) on derivative transactions to be
194.34
19.15
175.19
Disputed statutory liabilities paid and claimed
as deduction for tax purposes but not debited to
Statement of Profit and Loss
2300.68
0.21
1.35
(0.23)
(1.32)
3825.02
Offsetting of deferred tax liabilities with deferred
31.23
(216.99)
Unutilised MAT credit
(454.15)
7.49
(461.64)
Carried forward tax losses
(1214.24)
3.56
(1217.80)
Unabsorbed depreciation
(353.88)
(57.43)
(85.49)
(296.45)
(2478.67)
0.02
44.76
(2523.45)
and contract assets
Provision for doubtful debts, loans & advances
Deferred tax (assets):
1039.33
1178.66
Net deferred tax liabilities
(2785.69)
(2856.41)
tax (assets)
Unpaid statutory liabilities
2384.61
Difference between book base and tax base of
property, plant & equipment, investment property
and intangible assets
Loss
(b)
As at
31-3-2021
2020.94
1599.73
Towards provision for diminution in value of investments
(a)
31-3-2022
No.
Particulars
As at
Sr.
crore
(ii) Unrecognised deductible temporary differences for which no deferred tax asset is recognised in Balance Sheet:
8757.20
Arising out of upward revaluation of tax base of assets (on account of indexation
benefit)
11466.36
5363.93
2482.70 FY 2022-23 to
FY 2029-30
2270.66 FY 2021-22 to
FY 2028-29
3619.73 FY 2022-23 to
FY 2029-30
Expiry year
As at 31-3-2021
crore
Expiry year
As at 31-3-2022
* crore
Total
Tax losses (Capital loss)
- Amount of losses having no expiry
- Amount of losses having expiry
Tax losses (Business loss and unabsorbed depreciation)
Particulars
5206.14
1280.40 FY 2021-22 to
FY 2028-29
V.
3467.76
(c)
liabilities/
(assets) as at
31-3-2022
Exchange
difference
(other than
through OCI)
hedge reserve
Deferred tax
Debit/(credit) to
Charge/(credit)
to Other
comprehensive
income
Classified as
held for sale
acquisition
Effect due to
Charge/
(credit) to
Statement
of Profit and
Deferred tax
liabilities/
(assets) as at
31-3-2021
crore
2991.19
Deferred tax liabilities:
572
(d) Major components of deferred tax liabilities and deferred tax assets:
NOTE [51] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
571
7609.79
7238.39
Total
2597.66
2170.90
Other items giving rise to temporary differences
Particulars
Amount included in "profit from
discontinued operations"
Total (I+II+III+IV+V)
271.56
271.56
233.25
233.25
Closing balance of the plan assets
Others
Fixed deposits
Special deposit scheme
5.98
5.98
42.43
30.19
12.24
18.33
17.61
0.72
0.73
0.01
0.72
Mutual funds - Others
Mutual funds - Debt
283.04
158.04
125.00
326.79
240.75
86.04
1.87
1.87
2.68
2.68
(381.64)
e
Total changes from financing cash flows (e = a to d)
(8820.38)
(9114.10)
569
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [51]
Disclosure pursuant to Ind AS 12 "Income Taxes":
(a) Major components of tax expense/(income):
570
709.73
Sr.
No.
crore
2021-22
2020-21
5727.47
548.63
5178.84
6301.93
42.97
18.82
24.15
27.68
26.66
562.44
1.02
5739.49
Particulars
(407.20)
709.73
648.19
As at 31-3-2022
Particulars
Trust-managed provident fund plan
crore
576
NOTE [52] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
575
1026.31
391.31
(71.42)
(76.02)
4.60
635.00
10.38
1090.95
6.08
477.93
613.02
Closing balance of the plan assets
4.30
Other (payables)/receivables
381.78
381.78
410.99
410.99
Insurer managed fund
3.44
Quoted
Unquoted
Total
Quoted
Debt instruments - Public sector unit bonds
Mutual funds - Equity
1313.54
1313.54
1740.15
1740.15
Debt instruments - State government bonds
1264.76
1264.76
1112.23
1112.23
Debt instruments - Central government bonds
1664.48
23.77
648.19
1640.71
1901.76
Debt instruments - Corporate bonds
100.23
100.23
237.14
237.14
50.17
50.17
29.71
29.71
Cash and cash equivalents
Equity instruments
Total
As at 31-3-2021
Unquoted
1901.76
Repayment of lease liability
d
(6151.20)
13804.46
(6151.20)
(16385.72)
(188.28)
(193.36)
355.79
(9114.10)
iv
Effect of changes in foreign exchange rates
37.85
(166.70)
(31.87)
(6.19)
0.62
(166.29)
V
Interest accrued (net of interest paid)
(267.27)
(614.32)
1350.88
469.29
vi
Other changes (transfer within categories)
(13786.33)
(345.00)
14131.33
9.34
vii
Changes from financing cash flows
202.79
153.00
Additions to lease liability
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [50]
Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 "Statement of Cash Flows":
crore
Sr.
No.
Particulars
Non-current
borrowings
(Note 22)
De-recognition of lease liability
Current
borrowings
(Note 26)
borrowings
(Note 27)
Non-
current
lease
liability
Current
lease
liability
Total
i
Balance as at 31-3-2020
82331.33
35021.02
23654.77
1741.60
424.95 143173.67
ii
Current
maturities
of long
term
(91.75)
(9.34)
(19.56)
(111.31)
(101.57)
101.57
XV
De-recognition of lease liability
xvi
Balance as at 31-3-2022 (xvi = ix to xv)
61618.31
30476.96
31372.96
(21.47)
1633.31
(12.95)
(34.42)
406.54 125508.08
(815.17)
Amounts reported in Statement of Cash Flows under financing activities:
Sr. No.
Particulars
a
Proceeds from non-current borrowings
b
Repayment of non-current borrowings
2021-22
24654.13
(35806.44)
2020-21
36258.60
(38839.86)
C
Proceeds from/(repayment of) other borrowings (net)
2739.13
crore
3.44
104.28
17.46
viii
Liabilities classified as held for sale/realised on
disposal
ix
Balance as at 31-3-2021 (ix = i to viii)
82120.04
22.03
27765.83
22.03
22719.39
Additions to lease liability
xi
Changes from financing cash flows
(5278.53)
(4.50)
xii
40.71
xiii
Interest accrued (net of interest paid)
1007.20
2739.13
51.19
(79.19)
xiv
Other changes (transfer within categories)
(16271.11)
(5873.78)
(0.58)
(1743.18)
16271.11
1617.72
332.86
(211.69)
406.10
111.83
(195.51)
134629.08
444.69
(8820.38)
Effect of changes in foreign exchange rates
8 L&T-Gulf Employees Group Gratuity Assurance Scheme
3.37
Fixed deposits
(24.07) (769.57) (579.02)
(24.79)
(11.98)
(13.74)
(223.37)
(145.29)
Add: Past Service Cost
sale/divestment
Less: Unfunded liablity classified as held for
Less: Benefits paid [1]
(0.75)
(1.61)
(23.58)
(9.33)
(31.41)
35.81
iii) Experience adjustments
6.00
(16.71)
9.07
(32.23)
38.95
(50.25)
ii) Financial assumptions
2.44
4.44
(5.08)
(1.04)
(0.28)
10.22
Add: Liabilities assumed on transfer of
Management
Corporate
Overview
[1] Excluding amount pertaining to discontinued operations.
5238.92
5849.85
377.95
371.56
360.06
354.57
1302.51
1428.28
defined benefit obligation
Closing balance of the present value of
(1.69)
(0.03)
(6.72)
6.28
Add/(less): Translation adjustments
4.68
(0.17)
Add: Adjustment for earlier years
1.62
Add: Business combination/acquisition
79.50
147.94
(5.22)
0.25
employees
0.38
Integrated
Discussion and Analysis Report
i) Demographic assumptions
Add/(less): Actuarial losses/(gains) arising
Opening balance of the present value of
defined benefit obligation
2021-22 2020-21
2020-21
2021-22
2021-22 2020-21
2020-21
2021-22
Trust-managed
provident fund plan
Pension plan
Post-retirement
medical benefit plan
Consolidated Statement of Profit and Loss:
Gratuity plan
crore
(iii) The changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof
are as follows:
597.72
389.39
172.67
229.00
32.90
18.40
32.04
8.25
3.11
0.45
3.54
146.32
107.48
165.12
97.24
Actual return on plan assets
1302.51
1285.39
360.06
340.27
Transfer-in/(out)
483.25
576.95
ii) Employee
Employer
i)
Add: Contribution by plan participants
402.85
426.23
23.62
23.52
22.31
22.67
from changes in -
67.41
Add: Interest cost
172.67 [3]
229.00 [3]
4.03
4675.02
5238.92
369.12
377.95
2.98
21.81
22.70
183.77
209.67
Add: Current service cost
69.37
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Debt instruments - State government bonds
191.62
191.62
173.34
173.34
Debt instruments - Central government bonds
264.00
0.31
263.69
215.05
215.05
Debt instruments - Corporate bonds
19.98
19.98
26.35
26.35
Equity instruments
50.84
50.84
6.28
6.28
Cash and cash equivalents
Total
As at 31-3-2021
Unquoted
Quoted
Total
As at 31-3-2022
Unquoted
146.59
146.59
106.67
106.67
1.48
1.48
1.48
1.48
2.90
2.90
3.90
3.90
Special deposit scheme
Mutual funds Others
4.86
3.17
1.69
Quoted
1.90
Mutual funds - Debt
46.62
23.41
23.21
69.92
45.83
24.09
Mutual funds - Equity
23.54
23.54
21.40
21.40
Debt instruments - Public sector unit bonds
1.90
Particulars
Gratuity plan
crore
Add: Contribution by the employer
194.87
(36.84)
53.12
34.31
return on plan assets and interest income
Add/(less): Actuarial gains/(losses) - Difference between actual
402.85
426.23
54.36
62.93
Add: Interest income on plan assets [2]
4960.42
74.13
5727.47
1026.31
Opening balance of the fair value of the plan assets
2020-21
2021-22
2020-21
2021-22
Trust-managed
provident fund plan
Particulars
Gratuity plan
crore
(iv) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:
NOTE [52] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
851.04
3.37
223.62
171.45
The fair value of major categories of plan assets are as follows:
(v)
[3] Employer's contribution to provident fund.
The Group expects to fund 122.46 crore (previous year: 74.74 crore) towards its gratuity plan and 196.05 crore (previous year:
180.66 crore) towards its trust-managed provident fund plan during the year 2022-23.
The Trust formed by the Parent Company and a few subsidiaries manage the investments of provident funds and gratuity fund. Interest
income on plan assets is determined by multiplying the fair value of the plan assets by the discount rate stated in (vii) below both
determined at the start of the annual reporting period.
Basis used to determine interest income on plan assets:
[2]
Notes: The fair value of the plan assets under the trust managed provident fund plan has been determined at amounts based on their value
at the time of redemption, assuming a constant rate of return to maturity.
5727.47
6301.93
1026.31
1090.95
Closing balance of the plan assets
216.30
4.54
(579.02)
(769.57)
(154.99)
(106.80)
Less: Benefits paid
134.49
147.58
(0.84)
0.07
Add: Assets assumed on transfer of employees
437.87
590.76
Add: Contribution by plan participants
Add: Adjustment for earlier years
Particulars
1 Larsen & Toubro Limited Senior Officers' Superannuation Scheme
Management
Associates, including:
177.35
63.19
L&T Infrastructure Development Projects Limited
576.54
796.53
L&T - MHI Power Turbine Generators Private Limited
863.49
757.16
7.94
L&T - MHI Power Boilers Private Limited
1777.11
Joint ventures, including:
Accounts payable including other payable
(ii)
135.77
92.76
Total
0.20
0.21
1772.76
14.54
Magtorq Private Limited
L&T Camp Facilities LLC
* Before set-off of losses under equity accounting
1097.54
911.98
Total
611.72
698.81
Kudgi Transmission Limited#
272.65
213.17
213.17
L&T Special Steels and Heavy Forgings Private Limited*
L&T Infrastructure Development Projects Limited
1097.54
911.98
Joint ventures:
(iii) Investment in debt securities [including preference shares
(debt portion)]
1787.30
1785.05
Total
8.79
5.75
7.09
0.60
Larsen & Toubro Qatar & HBK Contracting Co. WLL
0.20
0.21
Associate:
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
[5] Represents end of service benefit as per applicable local laws till August 18, 2020
141 Represents pension
131 Represents fair value of employee stock options granted during 2020-21 to be vested over a period of time
121 Represents encashment of past service accumulated leave
[1] Post retirement benefits include gratuity * 6.60 crore
105.38
8.39
10.20
22.41
64.38
145.06
29.68
115.38
Total
5.86
LARSEN & TOUBRO
# Secured
Notes forming part of the Consolidated Financial Statements (contd.)
(c) Amount due to/from related parties (including commitments):
50.00
1.18
75.49
57.76
13.39
L&T - MHI Power Turbine Generators Private Limited
L&T Deccan Tollways Limited
L&T - MHI Power Boilers Private Limited
135.57
92.55
Joint ventures, including:
Accounts receivable
(i)
Amounts
for major
parties
Amount
Amounts
for major
parties
Amount
No.
Category of balance/relationship/major parties
Sr.
As at 31-3-2021
As at 31-3-2022
crore
NOTE [54] (contd.)
5.86
(iv)
Joint ventures, including:
20.46
17.34
L&T - MHI Power Boilers Private Limited
20.46
17.34
Joint venture:
(viii) Advances from customers
Amounts
for major
parties
parties
Total
Amount
Amount
No.
Category of balance/relationship/major parties
Sr.
As at 31-3-2021
As at 31-3-2022
crore
584
NOTE [54] (contd.)
Amounts
for major
17.34
20.46
(ix)
0.92
5.49
13.98
Mr. T. Madhava Das
Mr. S. V. Desai
Mr. Subramanian Sarma
Mr. J. D. Patil
Mr. M. V. Satish
Mr. D. K. Sen
Mr. Shailendra Roy
Mr. R. Shankar Raman
8.40
21.40
Mr. S. N. Subrahmanyan
3.60
3.35
Mr. A. M. Naik
Key Management Personnel, including:
41.04
93.81
Due to directors [a].
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
583
1139.03
L&T Special Steels and Heavy Forgings Private Limited
1144.11
1145.08
Joint ventures, including:
* Before set-off of losses under equity accounting and impairment
(v) Impairment/provision of loans & advances recoverable
2182.75
2328.85
Total
14.44
5.00
10.61
4.23
Magtorq Private Limited
L&T Camp Facilities LLC
19.44
14.84
Associates:
1746.17
162.61
1781.18
328.43
L&T Special Steels and Heavy Forgings Private Limited*
L&T Sapura Shipping Private Limited
2163.31
2314.01
1139.03
Loans & advances recoverable
Total
1144.11
90.91
193.74
90.91
193.74
90.91
193.74
Total
L&T MBDA Missile Systems Limited
Joint ventures:
(vii) Unsecured loans taken
14.84
14.84
Total
14.84
14.84
L&T Special Steels and Heavy Forgings Private Limited
14.84
14.84
Joint venture:
Provision towards constructive obligation
(vi)
1145.08
7.62
5.66
(c) Other Non-executive/Independent Directors
7.70
7.70
7.70
Total
Entity with common Key Management Personnel:
Mindtree Foundation
(xx) Provision towards unspent CSR expenses
1.65
8.90
Total
(xxi) Contribution to post employment benefit plan
1.65
1.65
8.90
Entity with common Key Management Personnel:
Mindtree Foundation
(xix) Donation given
parties
parties
for major
Amount
Amounts
8.90
(A) Towards Employer's contribution to provident fund trusts, including:
210.90
199.05
6.81
7.51
(C) Towards Employer's contribution to superannuation trust:
188.49
27.98
Total
56.12
18.06
12.67
14.27
L&T Technology Services Limited Employee Group Gratuity Scheme
Mindtree Limited Employees Gratuity Fund Trust
86.47
188.49
27.98
Towards Employer's contribution to gratuity fund trusts, including:
Larsen & Toubro Officers & Supervisors Gratuity Fund
(B)
199.05
210.90
Total
186.25
199.44
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Amounts
for major
Amount
No.
Nature of transaction/relationship/major parties
(0.31)
Total
0.85
Raykal Aluminium Company Private Limited
0.18
L&T Sapura Offshore Private Limited
0.11
L&T - MHI Power Turbine Generators Private Limited
(1.46)
L&T Special Steels and Heavy Forgings Private Limited
L&T - MHI Power Boilers Private Limited
(0.31)
Joint ventures, including:
(xvi) Allowance/(reversal) for expected credit loss
0.02
0.39
(0.09)
0.31
206.79
65.30
0.19
0.18
0.31
Larsen & Toubro Limited Senior Officers' Superannuation Scheme
(xvii) Impairment on loans & advances
L&T Special Steels and Heavy Forgings Private Limited
Sr.
2020-21
2021-22
crore
582
NOTE [54] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
581
14.84
14.84
14.84
1139.03
1139.03
1139.03
Total
L&T Special Steels and Heavy Forgings Private Limited
Joint venture:
(xviii) Provision towards constructive obligation
Total
Joint venture:
5.66
7.51
Total
(i) Mr. T. Madhava Das
(h) Mr. S. V. Desai
5.32
1.09
4.23
10.93
2.29
8.64
(g) Mr. J. D. Patil
Non-executive/Independent Directors:
5.32
4.24
11.05
2.30
8.75
(f) Mr. M. V. Satish
4.94
1.01
3.93
11.73
1.08
(a) Mr. A. M. Naik (Group Chairman)
(b) Mr. Subramanian Sarma (Non-executive
Director till August 18, 2020)
4.36
1.26 [5]
3.10
12.18
3.00 [4]
9.18
12.14
3.00 [4]
9.14
3.66
0.72
2.94
12.27
2.55
9.72
3.47
0.64
2.83
12.51
2.60
9.91
2.46
9.27
(e) Mr. D. K. Sen
13.89
24.46
(a) Mr. S. N. Subrahmanyan
Executive Directors:
payment
Total
Share based
Other long
term benefit
Post
employment
benefits
benefits
benefits
Short term
employee
Total
Post
employment
Short term
employee
benefits
Key Management Personnel
2020-21
2021-22
crore
"Major parties" denote entities accounting for 10% or more of the aggregate for that category of transaction during respective year.
(xix) Compensation to Key Management Personnel (KMP):
6.81
7.51
6.53
6.81
30.99
2.97
8.39 131
1.02
4.48
17.36
3.65
13.71
w.e.f. August 19, 2020)
(d) Mr. Subramanian Sarma (Executive Director
22.67
10.20 [2]
7.64 [1]
4.83
(c) Mr. Shailendra Roy
9.48
1.98
7.50
20.42
4.30
16.12
(b) Mr. R. Shankar Raman
14.23
11.26
0.19
2.40
2.66
Particulars
Breakup of provisions:
1802.69
83.60
0.42
0.42
753.83
578.71
358.73
27.82
Balance as at 1-4-2021
Balance as at 31-3-2022 (1 to 5)
Translation adjustments
5
(186.11)
(8.34)
(168.15)
(0.08)
(4.75)
(4.79)
Unused provision reversed during the year
6
Balance as at 31-3-2022
Note 24
68.38
118.24
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
586
(c) Disclosure in respect of contingent liabilities is given in Note 32.
(v) Other provisions mainly includes provision for onerous contracts.
(iv) Contractual rectification cost represents the estimated cost the Group is likely to incur during defect liability period as per the
contract obligations and in respect of completed construction contracts accounted under Ind AS 115 "Revenue from contracts with
customers".
(iii) Provision for litigation-related obligations represents liabilities that are expected to materialise in respect of matters in appeal.
Expected tax liability in respect of indirect taxes represents mainly the differential sales tax liability on account of non-collection of
declaration forms and liability for goods and service tax, customs duty and excise duty.
Provision made as at March 31, 2022 represents the amount of the expected cost of meeting such obligations of rectification/
replacement. The timing of the outflows is expected to be within a period of three years from the date of Balance Sheet.
Product warranties: The Group gives warranties on certain products and services, undertaking to repair or replace the items that fail
to perform satisfactorily during the warranty period.
(i)
(b) Nature of provisions:
1802.69
1432.50
Total
crore
1684.45
1364.12
Note 31
4
(63.80)
(49.42)
(11.74)
Contractual
rectification
Litigation-
related
obligations
of indirect
Expected
tax liability
in respect
Product
warranties
Particulars
Sr.
No.
Class of provisions
crore
Movement in provisions:
(a)
Disclosure pursuant to Ind AS 37 "Provisions, Contingent Liabilities and Contingent Assets":
NOTE [56]
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
585
2
2
Face value per share (*)
82.41
cost-
Statutory Financial
Reports
Others
construction
(2.64)
Provision used during the year
3
619.68
19.51
434.69
107.00
36.42
22.06
Additional provision during the year
2
1432.50
72.43
536.29
471.79
338.80
13.19
Balance as at 1-4-2021
1
contracts
taxes
Total
61.65
Statements
Notes forming part of the Consolidated Financial Statements (contd.)
3.74
197.16
186.05
2020-21
2021-22
crore
Capital Expenditure on:
(ii)
Recognised as expense in the Statement of Profit and Loss
1.24
No.
Sr.
Of the above, expenditure on research and development activities of discontinued operations is as follows:
Other intangible assets
(c)
The net exposure to foreign currency risk (based on notional amount) in respect of recognised financial assets, recognised financial
liabilities and derivatives for major currencies is as follows:
crore
As at 31-3-2022
As at 31-3-2021
Particulars
Particulars
0.13
9.80
0.52
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
587
The Group may enter into foreign currency forward and option contracts with financial institutions to protect against foreign
exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future cash
flows and net investments in foreign subsidiaries. In addition, the Group has entered, and may enter in the future, into non-
designated foreign currency contracts to partially offset the foreign currency exchange gains and losses on its foreign-denominated
debt issuances. The Group's practice is to hedge a portion of its material net foreign exchange exposures with tenors in line with
the project/business life cycle. The Group may also choose not to hedge certain foreign exchange exposures.
The Group has both receivable and payable exposure in foreign currency. Accordingly, changes in exchange rates, may adversely
affect the Group's revenue, cost and profitability. There is a risk that the Group may also have to adjust the pricing due to
competitive pressures when there have been significant volatility in foreign currency exchange rates.
Foreign exchange rate risk:
(i)
The Group regularly reviews its foreign currency and interest rate related exposures - both hedged and open exposures. The Group
primarily follows cash flow hedge accounting for Highly Probable Forecasted Exposures (HPFE), hence, the movement in mark to market
(MTM) of the hedge contracts undertaken for such exposures is likely to be offset by contra movements in the underlying exposures
values. However, till the point of time that the HPFE becomes an on-balance sheet exposure, the changes in MTM of the hedge contracts
will impact the Balance Sheet of the Group. Further, given the effective horizons of the Group's risk management activities which
coincide with the duration of the projects under execution, which could extend across 3-4 years and given the business uncertainties
associated with the timing and estimation of the project exposures, the recognition of the gains and losses related to these instruments
may not always coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may affect the
Group's financial condition and operating results. The Group monitors the potential risk arising out of the market factors like exchange
rates, interest rates, price of traded investment products etc. on a regular basis. For on-balance sheet exposures, the Group monitors the
risks on net unhedged exposures.
0.01
9.39
0.49
Disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures": Market risk management
(a) Foreign exchange rate and interest rate risk:
Other intangible assets
NOTE 58
(b) Intangible assets being expenditure on new product development
(a) Tangible assets
32.29
2020-21
2021-22
crore
8.10
US Dollar
including
pegged
currencies
EURO
Algerian Canadian Japanese
Dinar Dollar
Yen
To provide a meaningful assessment of the foreign currency risk associated with the Group's foreign currency derivative positions
against off-balance sheet exposures and unhedged portion of on-balance sheet financial assets and liabilities, the Group uses a
multi-currency correlated value-at-risk ("VAR") model. The VAR model uses a Monte Carlo simulation to generate thousands of
random market price paths for foreign currencies against Indian Rupee taking into account the correlations between them. The
VAR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval.
The VAR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market
conditions and is a historical best fit model. Because the Group uses foreign currency instruments for hedging purposes, the loss in
fair value incurred on those instruments are generally offset by increase in the fair value of the underlying exposures for on-balance
sheet exposures. The overnight VAR for the Group at 95% confidence level is 201.00 crore as at March 31, 2022 and 203.08
crore as at March 31, 2021.
Actual future gains and losses associated with the Group's investment portfolio and derivative positions may differ materially from
the sensitivity analysis performed as at March 31, 2022 due to the inherent limitations associated with predicting the timing and
amount of changes in foreign currency exchange rates and the Group's actual exposures and position.
Interest rate risk:
The Group's exposure to changes in interest rates relates primarily to the Group's outstanding floating rate debt and lending. The
Group's outstanding debt in local currency is a combination of fixed rate and floating rate. For the portion of local currency debt
on fixed rate basis, there is no interest rate risk. For the portion of local currency debt on floating rate basis, there is a natural
hedge with receivables in respect of financial services business. There is a portion of debt that is linked to international interest rate
benchmarks like LIBOR. The Group also hedges a portion of these risks by way of derivative instruments like interest rate swaps and
currency swaps.
The Group has insignificant portion of the loan book which has a flowing rate linked to one month USD LIBOR.
With the transition of LIBOR into another benchmark (SOFR), there will be a spread adjustment that will have to be applied to these
loans. The loans are expected to be either refinanced and linked to a new benchmark or simply transitioned to the new benchmark
before LIBOR ceases to be published.
The Group's Treasury team constantly tracks the developments related to this proposed transition and has also had interactions with
the counterparty lenders to prepare for the transition.
In the cases mentioned above, the lenders and the Group are likely to agree on a neutral spread adjustment which does not impact
the counterparties financially.
The exposure of the Group's borrowing to interest rate changes is 25848.75 crore (previous year: 48077.49 crore).
€
588
(b) Intangible assets being expenditure on new product development
(a) Tangible assets
(ii) Capital expenditure on:
Recognised as expense in the Statement of Profit and Loss
(i)
No.
Particulars
Sr.
The expenditure on research and development activities is as follows:
Research & Development
NOTE [57]
(14.43) 21.02
LARSEN & TOUBRO
2337.79 164.57
3294.27 32.10
Kuwaiti
Dinar
US Dollar
including
pegged
currencies
EURO
Algerian Canadian Japanese Kuwaiti
Dinar Dollar Yen Dinar
Net exposure to foreign currency risk in respect
of recognised financial assets/(recognised
financial liabilities)
Derivatives including embedded derivatives for
hedging receivable/(payable) exposure with
respect to non-financial assets/(non-financial
liabilities)
Derivatives including embedded derivatives for
hedging receivable/(payable) exposures with
respect to firm commitments and highly
probable forecast transactions
Receivable/(payable) exposures with respect to
forward contracts and embedded derivatives
not designated as cash flow hedge
(1100.21)
747.08
(358.10) 573.06 (184.60)
109.56
(1207.93) 400.90 (97.62)
232.84 (505.18) (52.56)
332.11 (56.08)
357.96 65.82
38860.98 (2817.23)
13.46
473.12 696.42
29116.78 (4244.49)
37.78 1031.00 404.79
(23.99) 38.45
7.05
C/F
58.61
L&T-Chiyoda Limited
L&T - MHI Power Turbine Generators Private Limited
L&T - MHI Power Boilers Private Limited
2551.02
1424.92
Joint ventures, including:
(xiii) Revenue commitment given
0.11
Total
820.89
305.67
101.92
| | |
0.02
L&T Special Steels and Heavy Forgings Private Limited
L&T - MHI Power Turbine Generators Private Limited
0.08
L&T-Sargent & Lundy Limited
0.11
Joint ventures:
(xii) Capital commitment given
4.48
12.89
0.01
1643.73
387.72
327.86
Associates, including:
Sr.
As at 31-3-2021
As at 31-3-2022
crore
NOTE [54] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Management
Corporate
Overview
[a] includes commission due to other Non-executive directors 4.52 crore (previous year: 4.63 crore)
2586.47
1477.18
Total
35.08
51.54
Magtorq Private Limited
35.45
52.26
4.48
12.89
Larsen & Toubro Limited Senior Officers' Superannuation Scheme
Total
4.48
Due to provident fund trusts, including:
(A)
(xi) Post employment benefit plans
7.70
Total
7.70
7.70
Entity with common Key Management Personnel:
Mindtree Foundation
Provision towards unspent CSR expenses
(x)
Total
41.04
93.81
2.43
8.40
2.29
8.56
5.31
11.70
2.91
7.23
78.10
Category of balance/relationship/major parties
56.45
74.44
12.89
Due to superannuation fund:
(C)
19.77
48.81
Total
7.60
20.71
11.11
10.04
L&T Technology Services Limited Employee Group Gratuity Scheme
Mindtree Limited Employees Gratuity Fund Trust
15.47
Larsen & Toubro Officers & Supervisors Gratuity Fund
19.77
48.81
Due to gratuity trusts, including:
(B)
56.45
78.10
Total
52.92
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Diluted EPS from continuing operations & discontinued operations (*)
No.
Amounts
for major
parties
61.71
C/D
Basic EPS from continuing operations & discontinued operations (*)
58.67
B/D
Basic EPS from discontinued operations (*)
23.82
61.71
A/D
82.49
Basic EPS from continuing operations (*)
11582.93
8669.33
1,40,47,47,700
D
Weighted average number of equity shares outstanding
C=A+B
Profit after tax from continuing operations & discontinued operations (crore)
8237.92
B
Profit after tax from discontinued operations (crore)
1,40,41,46,937
Diluted EPS
Profit after tax from continuing operations (crore)
A
B/F
Diluted EPS from discontinued operations (*)
23.80
61.65
A/F
Diluted EPS from continuing operations (*)
14,20,264
1,40,55,67,201
15,40,580
1,40,62,88,280
F=D+E
Weighted average number of equity shares outstanding for diluted EPS
E
Add: Weighted average number of potential equity shares on account of employee
stock options
1,40,41,46,937
3345.01
8237.92
11582.93
8669.33
1,40,47,47,700
D
C=A+B
Profit after tax from continuing operations & discontinued operations ( crore)
Weighted average number of equity shares outstanding
B
Profit after tax from discontinued operations (crore)
8669.33
3345.01
8669.33
A
Profit after tax from continuing operations (crore)
23.30
22.02
Joint ventures, including:
(xvi) Guarantees given on behalf of
Total
Joint ventures, including:
(xv) Provision for expected credit loss
187.73
125.16
Total
20.00
17.53
158.78
107.24
L&T - MHI Power Boilers Private Limited
L&T MBDA Missile Systems Limited
Notes forming part of the Consolidated Financial Statements (contd.)
125.16
Joint ventures, including:
(xiv) Revenue commitment received
Amounts
for major
parties
Amount
L&T - MHI Power Boilers Private Limited
Amount
21.82
22.02
Basic EPS
2020-21
2021-22
Particulars
Basic and Diluted Earnings per share [EPS] computed in accordance with Ind AS 33 "Earnings per Share"
NOTE [55]
The amount of outstanding balances as shown above are unsecured and will be settled/recovered in cash.
The interest rate charged on loans given to related parties are as per market rates.
3.
2.
All the related party contracts/arrangements have been entered into on arm's length basis.
Note: 1.
"Major parties" denote entities accounting for 10% or more of the aggregate for that category of balance during respective year.
363.85
300.23
312.67
255.12
363.85
300.23
Total
L&T - MHI Power Turbine Generators Private Limited
23.30
23.28
0.18
187.73
9.76
148.03
151.59
(vii) Net inter-corporate borrowing taken/(repaid)
Joint venture:
Total
L&T MBDA Missile Systems Limited
(viii) Charges paid for miscellaneous services
(ix)
Joint ventures, including:
Total
L&T-Sargent & Lundy Limited
L&T-Chiyoda Limited
Rent paid, including lease rentals under leasing
arrangements
Joint ventures, including:
L&T - MHI Power Boilers Private Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T - MHI Power Turbine Generators Private Limited
Associate:
Magtorq Private Limited
Total
(x) Rent received, overheads recovered and miscellaneous
income
Joint ventures, including:
L&T - MHI Power Boilers Private Limited
L&T-Sargent & Lundy Limited
L&T-Chiyoda Limited
Total
100.75
32.00
100.75
32.00
100.75
148.03
Total
151.59
151.59
for major
parties
parties
(iii) Purchase/lease of property, plant and equipment
Joint ventures:
0.05
L&T Infrastructure Development Projects Limited
L&T-Sargent & Lundy Limited
26.38
26.38
Total
0.05
0.05
26.38
(iv) Sale of property, plant and equipment
Key management personnel:
32.00
Mr. Shailendra Roy
0.61
0.61
Total
(v)
Investments as other equity/equity
Joint ventures, including:
2.11
L&T - MHI Power Turbine Generators Private Limited
2.02
Total
2.11
(vi) Net inter-corporate deposits given/(repaid)
Joint ventures:
148.03
L&T Special Steels and Heavy Forgings Private Limited
L&T Sapura Shipping Private Limited
0.61
Amount
17.74
4.45
2021-22
2020-21
Sr.
Nature of transaction/relationship/major parties
No.
Amount
Amounts
for major
Amount
Amounts
for major
parties
parties
(xi) Charges recovered for deputation of employees to related parties
Joint ventures:
5.34
7.64
L&T Infrastructure Development Projects Limited
0.73
1.14
L&T Special Steels and Heavy Forgings Private Limited
L&T Sapura Shipping Private Limited
0.76
0.73
3.85
2.94
Total
L&T-Chiyoda Limited
(xii) Dividend received
2.83
5.34
7.64
Joint ventures, including:
crore
NOTE [54] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
3.61
12.06
25.17
17.74
29.90
0.24
0.01
0.11
0.06
0.06
0.08
0.08
0.32
0.01
29.90
0.01
101.34
41.32
31.86
10.87
11.57
23.97
25.39
107.66
101.34
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
107.66
Amounts
Amounts
for major
Amount
2
Mr. M. M. Chitale
4
Mr. M. Damodaran
6 Mr. Adil Zainulbhai
8
Mr. Thomas Mathew T [6]
10 Ms. Naina Lal Kidwai [8]
12
Mr. Narayanan Kumar
14
Ms. Preetha Reddy (9)
[9]
[1]
Ceased w.e.f. July 7, 2020 on account of superannuation
[2]
Appointed as Whole-time Director w.e.f. August 19, 2020
(Non-executive Director till August 18, 2020)
[3]
Appointed w.e.f. July 11, 2020
[4]
Ceased w.e.f. March 29, 2022 on account of completion of term
[5]
Ceased w.e.f. May 3, 2021 on account of withdrawal of
nomination by Life Insurance Corporation of India
[6]
Ceased w.e.f. April 2, 2020 on account of completion of term
[7]
Ceased w.e.f. May 29, 2020 on account of completion of term
[8]
[9]
15 Mr. Pramit Jhaveri [10]
Mr. Hemant Bhargava
13
Mr. Sanjeev Aga
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
(iv) Name of Key Management Personnel (of the Parent Company) and their relatives with whom transactions were carried out during
the year:
(A) Executive Directors:
1
Mr. S. N. Subrahmanyan (Chief Executive Officer &
Managing Director)
2
Mr. R. Shankar Raman (Whole-time Director & Chief
Financial Officer)
3 Mr. Shailendra Roy (Whole-time Director) [1]
4
Appointed w.e.f. March 1, 2021
Mr. Subramanian Sarma (Whole-time Director) [2]
Mr. D. K. Sen (Whole-time Director)
6 Mr. M. V. Satish (Whole-time Director)
8
Mr. S. V. Desai (Whole-time Director) [3]
7 Mr. J. D. Patil (Whole-time Director)
9 Mr. T. Madhava Das (Whole-time Director) [3]
(B) Non-executive/Independent Directors:
1
Mr. A. M. Naik (Group Chairman)
3 Mr. Subodh Bhargava [4]
5 Mr. Vikram Singh Mehta
7 Ms. Sunita Sharma [5]
9 Mr. Ajay Shankar [7]
11
5
[10]
Ceased w.e.f. February 28, 2021 on account of completion of term
Appointed w.e.f. April 1, 2022
(v) Entity with common Key Managerial Personnel with whom transactions were carried out during the year:
(ii)
Sale of goods/contract revenue & services
Joint ventures, including:
Total
L&T - MHI Power Boilers Private Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T - MHI Power Turbine Generators Private Limited
L&T-Chiyoda Limited
74.28
58.96
47.78
40.53
12.73
5.49
8.63
0.05
1330.39
2.69
74.28
58.96
579
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
580
crore
2021-22
2020-21
Sr.
Nature of transaction/relationship/major parties
No.
7.74
L&T - MHI Power Boilers Private Limited
L&T-Chiyoda Limited
1593.05
27.60
1 Mindtree Foundation
(b) Disclosure of related party transactions:
crore
2021-22
2020-21
Sr.
No.
Nature of transaction/relationship/major parties
Amount
Amounts
for major
parties
Amount
Amounts
for major
parties
(i)
Purchase of goods & services (including commission paid)
Joint ventures, including:
18.18
L&T - MHI Power Boilers Private Limited
Associates, including:
4.71
Magtorq Private Limited
Total
1564.42
1312.21
705.70
698.19
352.83
253.06
227.63
147.76
28.63
18.18
L&T - MHI Power Turbine Generators Private Limited
L&T-Chiyoda Limited
Total
NOTE [58] (contd.)
40.50
9.10
Joint ventures:
Corporate
Overview
156.83
174.38
119.39
119.39
14.85
156.83
13.64
174.38
Joint venture:
0.64
0.47
L&T - MHI Power Turbine Generators Private Limited
0.64
0.47
Total
0.64
0.47
(xiii) Guarantee charges recovered from
L&T MBDA Missile Systems Limited
(xiv) Interest paid to
2.81
45.93
45.52
21.44
9.84
134.52
206.60
L&T Camp Facilities LLC
6.81
Associate:
L&T Sapura Shipping Private Limited
Kudgi Transmission Limited
Total
L&T - MHI Power Turbine Generators Private Limited
65.12
Joint ventures:
(xv) Interest received from
13.64
9.10
Total
10.83
2.29
L&T Special Steels and Heavy Forgings Private Limited
L&T Infrastructure Development Projects Limited
H5BH 647
Integrated Annual Report 2021-22
55
Leveraging its Offshore expertise, the business is carving
out a part of the team to focus on the emerging business
opportunities in Offshore Wind Farms, which will address
renewable energy requirements and balance the portfolio.
The offshore vertical has comprehensive in-house engineering
capabilities offering customised 'Fit for Purpose' engineering
solutions, covering the complete project life cycle, from
concept to commissioning, for offshore projects. As a
vertically integrated EPCIC player, it also has in-house
fabrication and offshore installation capability. Marine assets
comprise a self-propelled heavy-lift-cum-pipe-lay vessel – LTS
3000 - held in a joint venture, and a wholly-owned
pipe-lay barge - LTB 300.
Pursuant to the Scheme of Amalgamation, approved by
National Company Law Tribunal (NCLT) on January 28, 2022,
L&T Hydrocarbon Engineering Limited (LTHE) has become
a division of L&T with effect from April 1, 2021. This
amalgamation will enable the Hydrocarbon business to leverage
the superior pre-qualification and financial capability of L&T
for securing large bids. The synergies from amalgamation will
Offshore
The business caters to clients across the hydrocarbon value-
chain through following business verticals:
further improve operational efficiencies and organisational
capabilities to sustain the growth momentum, while continuing
to maintain operational autonomy.
One of the Three Gas PDMs installed in Hasbah Field,
Saudi Arabia
Lumpsum Turnkey EPCIC solutions are offered to the
global offshore oil & gas industry. The products encompass
wellhead platforms, process platforms, process modules,
subsea pipelines and systems, brownfield developments,
offshore drilling rigs (upgrade and new builds), FPSO
modules, deep-water subsea manifold & structures, living-
quarters platforms, transportation & installation services,
and decommissioning projects.
Onshore
Cracker Furnace Package for HPCL-Mittal Energy Limited (HMEL) at Bathinda
This business vertical provides EPCC solutions for a wide
range of onshore hydrocarbon projects covering oil & gas
processing, petroleum refining, petrochemicals, fertilisers
(ammonia & urea complexes), thermal systems such as
cracking furnaces, cryogenic storage tanks and LNG
regasification terminals, cross-country pipelines & terminals
as well as coal/pet-coke gasification, coal-to-chemicals,
and crude-to-chemicals projects. The business has a track
record of concurrent execution of multiple mega projects
successfully both in domestic and international markets, with
diverse technology process licensors. Design engineering
centers for the Onshore vertical offer the complete spectrum
of FEED, process, and detailed engineering.
Construction Services
This business vertical renders turnkey construction services
for refineries, petrochemical, fertiliser projects, gas-gathering
stations, cross-country oil & gas pipelines and terminals
including LNG & oil storage tanks and underground cavern
storage systems for LPG. Its major capabilities include heavy-
lift equipment erection competency, application of advanced
welding technologies with high levels of automation,
management of manpower and material in large volumes
at construction sites and Quality / HSE systems conforming
to international practices. The business has also invested in
strategic construction equipment viz., a range of pipeline-
spread equipment, automatic welding machines and other
plant and machinery for mechanical construction works.
Modular Fabrication
This vertical specialises in modular fabrication and supply of
offshore & onshore structures and process modules, including
free-standing static equipment for oil & gas fields, refineries,
petrochemical plants, and fertiliser plants. Leveraging its
modular capability, much of the on-site work for mega
projects such as Onshore Process Modules (PAU) & Pre-
assembled Piperacks (PAR) for a Residue upgradation Facility
(RUF) in India, a Gasification plant in Singapore, a Hydrogen
Plant in Netherlands, and a Refinery in Thailand are being
executed at its fabrication yards.
World-class modular fabrication facilities are strategically
located at Hazira (India's West coast), Kattupalli (India's
East coast), Sohar (Oman) and Jubail (KSA). The combined
annual capacity for fabrication is estimated at about
60 million manhours or about 200,000 MT (depending on
the product mix).
The Piping shop and the proposed Pressure Vessel
Manufacturing shop in KSA will mainly cater to the local
market and for developing local skills to support the
IKTVA programme.
The business is equipped to supply products like windfarm
foundations and other modules for offshore windfarm
projects and e-houses. All-weather waterfront facilities
provide easy access to clients across the globe and have load-
out jetties suitable for dispatch of large and heavy modules
via ocean-going vessels and barges.
Advanced Value Engineering & Technology
Services (ADVENT)
Leveraging the expertise in high-end engineering and
The business has integrated capabilities across the value
chain, supported by in-house front-end design and detailed
engineering, R&D, project management, procurement,
modular fabrication facilities, Onshore construction, Offshore
installation, and commissioning. Major fabrication facilities
are in India and the Middle East. In India, the engineering,
procurement & project management centres are at Mumbai,
Vadodara & Chennai. Modular fabrication facilities are at
Hazira (near Surat) and Kattupalli (near Chennai). Overseas
presence is dominantly in the Middle East, i.e., in the UAE,
KSA & Kuwait and in Algeria. The project management office
with a training facility is in Al Khobar, KSA. The business
has a state-of-the-art modular fabrication facility at Sohar in
Oman, Piping shop at Jubail in KSA and an upcoming Heavy
Wall Pressure Vessel Manufacturing shop at Jubail Industrial
Zone in KSA.
Two Oil PDMs and Associated Facilities in Zuluf Field, Saudi Arabia
The Hydrocarbon business provides integrated D&B turnkey
solutions for the hydrocarbon industry, globally. The business
executes projects for oil & gas extraction and processing,
petroleum refining, chemicals & petrochemicals, fertilisers,
cross-country pipelines & terminals, and has recently launched
asset management as well as services for offshore wind.
• First stream Commissioned for Steel Melt Shop, JSW Steel Dolvi
| HYDROCARBON BUSINESS
execution of large-scale, technologically complex EPC projects
• New Hot Strip Mill, SAIL, Rourkela
• 1.5 MTPA to 2 MTPA Expansion of Alumina refinery at
UAIL Rayagada
• Stacker Reclaimer at JSW Paradip
Other key achievements:
With its superior manufacturing capabilities and prowess
in design to deliver equipment, the Product BU had the
following major commissioning highlights this year:
•
Successfully designed, manufactured, commissioned and load
tested the 1100 MT Straddle Carrier & Transporter Girder and
three of the Straddle Carrier Machines, which are in successful
operation at High-Speed Rail Project Sites at Gujarat
• A total of 8 Surface Miners (including 2 in international
geographies), 11 Sand Plants, 3 Largest Capacity Skid-
mounted Coal crushing plants, apart from multiple
limestone crushing plants commissioned this year
Significant Initiatives
Overview
• Implemented Design Automation, Al enabled engineering,
and Data Analytics Solution for continuous improvement
on various processes in its domain area
Market sentiments continue to remain positive with strong
demand, bullish commodity price forecasts in near terms and
metal producers recording unprecedented margins which
will provide solid impetus towards new capex cycle. This has
strengthened the sentiments of investors and, will lead to a
robust investment environment in the industry.
Similarly, the economic scenario in Gulf countries is following
a fresh capex cycle to industrialization, facilitating their
strategic shift away from oil & gas.
54
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
Statements
New Water Injection South - R Project for ONGC
• Implemented the specialised software under iMPACT
initiative to monitor progress from BOM to Erection
in Piping & Structural with QR code-based progress
monitoring and materials tracing and tracking
Outlook
56
•
Management
•
343 km gas transport pipelines between Jafurah Gas Plant
and Juaymah Tank Farm
• Mega contract for new facilities and integration with
existing facilities and significant contracts for expansion
of a marine terminal and replacement of electrical as
well as refurbishment of PDMs from a prestigious client
in Middle East
Large contract for Pipeline Replacement Project (PRP-VII)
from Oil & Natural Gas Corporation (ONGC) for installation
of 350 km subsea pipelines and related offshore works
spread across India's west coast
Significant contract from Indian Oil Corporation Limited for
Diesel Hydrotreating Project for its Panipat refinery
Significant contract from Petronet LNG for 2 x 170,000
m3 LNG tanks for Phase IIIB of the Dahej Expansion
Project, Gujarat
Significant contracts for laying of Mumbai-Nagpur
Gas Pipeline (24" x 224 km) including construction of
terminals along with associated facilities from GAIL and
construction of Steam Methane Reformer, Air Separation
Plant and Pressure Swing Adsorption Units for Jubail
Industrial Gas Network Project from Air Products Middle
East Industrial Gases
• Supply of PAU, PAR and Reformer modules for a Hydrogen
plant in Rotterdam, the Netherlands
Projects completed:
.
•
Development of Cluster 8 Marginal Field in Mumbai High
for ONGC
• Cracker Furnace Package for HPCL-Mittal Energy
Limited (HMEL)
• New 48" Crude Transit Line (TL-5) for Kuwait Oil
Company (KOC)
• SRT - III Ethylene Cracking Furnace at Panipat Refinery for
Indian Oil Corporation Limited (IOCL)
•
Supply of several onshore modules, skids and static
equipment for various refineries and petrochemical plants
in India and Algeria
Significant Initiatives
The business has placed a significant reliance on processes and
on operational excellence, covering productivity improvement
and Advanced Work Packs based Project Management, data
driven decision making, Smart SCM, value engineering, besides
robust QHSE processes. In May 2021, when cyclone 'Tauktae'
impacted the Arabian sea, all manpower along with marine
assets were safely demobilised from the Mumbai High.
Further, towards the journey in digital transformation, the
business has rolled-out multiple initiatives, viz., drone-based
progress monitoring and survey, product quality surveillance,
augmented reality based remote inspection, robotic welding
systems for fabrication, electrostatic painting application for
waste minimization and resources monitoring and scaffolding
management system.
As part of Lakshya 2026, the business has identified various
strategic initiatives to boost cost competitiveness and achieve
growth aspirations.
Strategic actions include building partnerships, developing
markets for adjacencies in business offerings, nurturing
new businesses like asset management, offshore windfarms
58
• 28 Offshore Jackets for Saudi Aramco in Zuluf, Marjan,
Safaniya and Rubiyan Oil fields
Corporate
Overview
•
Onshore Process & Piperack Modules being loaded-out from MFF Hazira for a Refinery in Thailand
Discussion and Analysis
Integrated
Report
Statutory Financial
Reports
LARSEN & TOUBRO
Statements
over several decades and collaborating with well-organised
R&D centres and renowned institutions, the ADVENT vertical
delivers comprehensive customer-centric solutions for the
entire value chain of the Hydrocarbon industry.
ADVENT's technical capabilities and agility enable it to
offer associated tailored value engineering solutions such
as product modular solutions, supporting customers in
re-purposing study of existing assets and adoption to
energy transition. ADVENT's offerings to clients encompass
full spectrum engineering, technology co-development &
commercialisation, strategic projects delivery through EPC &
other contracting models, integrated modular solutions as
well as emerging technology-driven solutions.
ADVENT also focusses on technology backed chemical
industries which are now ramping up the investment in the
chemical sector, reducing dependence on imports. These
chemicals are the building blocks of high-value industrial
end products.
Asset Management
The Asset Management business is a newly formed vertical
with a view to diversify revenue streams and deliver highly
integrated, digitally-enabled value-added services to the oil &
gas industry.
·
These comprehensive asset management solutions extend
the organisation's design, engineering, construction, and
commissioning capabilities to cover operations, maintenance,
performance enhancement and health assessment of
critical assets. Asset Management complements EPC project
offerings for mutually beneficial engagement with clients
over the entire lifecycle of assets.
The FY 2021-22 began with a significant thrust across the
developed world for energy transition from the Fossil Fuels
to Renewables. However, energy transition to limit global
warming to well below 2 degree Celsius as agreed in the
2015 Paris Climate Agreement, has been slower than
anticipated due to the evolving nature of the technologies,
their associated high costs as well as the geo-political risks.
With this backdrop, the oil & gas fraternity engaged with
EPC players for cleaner technologies in the conventional
areas. With normalcy returning post the COVID-19 pandemic
leading to a surge in demand resulting in hardening of oil
prices, traction was seen in the GCC region with Saudi
Arabia leading the way. Therefore, at least in the near future
significant investments are likely in oil & gas projects.
However, the business witnessed disruptive pricing by new
entrants in the domestic market, particularly onshore, which
caused loss of some market share. The business expects the
situation to normalise soon. In the domestic offshore market,
business has retained its strong foothold.
The business has been able to withstand the challenges and
recorded its highest ever Order Inflow in FY 2021-22 with the
Order Book remaining healthy. The Business has successfully
completed multiple large projects and outperformed most of
its peers in terms of profitability despite inflationary pressures
in commodities.
Major Achievements
Orders won:
•
Mega contract from Saudi Aramco for a Gas Compression
Plant for Jafurah Basin Development Programme and laying
57
Integrated Annual Report 2021-22
• Coke Dry Quenching Project, JSW Steel Dolvi
Business Environment
• Blast Furnace, JSW Steel Dolvi
LARSEN & TOUBRO
Major projects commissioned:
Piped water supply schemes to various districts in
Uttar Pradesh
Rengali Right Bank underground pipeline project Odisha
Sewerage works in K&C Valley, Karnataka
• Zero Liquid Discharge and Demineralization works for IOCL
Refineries at Baroda and Barauni
• Integrated Infrastructure Development Works for Silvassa
Smart City
• Dubai Water Transmission Project
• Water Supply Schemes in various towns of Tanzania
Major projects commissioned:
6+ million people benefitted with the commissioning of 20
projects during FY 2021-22.
• Industrial Area Sewage Treatment Works, Qatar
• 318 MLD Sewage Treatment Plant at Coronation Pillar, Delhi
• CDS Drinking Water Supply Schemes, Rajasthan
.
Bansujara Micro Irrigation Scheme, Madhya Pradesh
• Kanpur Water Carriage System, Uttar Pradesh
The business celebrated the UN Designated 'World Water
Day' on March 22, 2022 for the 13th consecutive year with
numerous events designed to inculcate the need for water
conservation among employees and other stakeholders. The
mega awareness campaign conducted by the employees
covering 20,000+ students was declared a record by the India
Book of Records for being the 'Largest Water Conservation
Campaign for students across the nation on a single day'.
50
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory Financial
LARSEN & TOUBRO
Reports
Statements
Moga Water Supply Scheme Project, Punjab
Significant Initiatives
As part of the business strategy to become future-proof and
build on the foundation of an agile culture, the following
initiatives were undertaken during the financial year:
.
•
Orders won:
Major Achievements
Corporate
Overview
Management
Integrated
Discussion and Analysis
Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Haliba, Containerised Substation
Chattarpur Water Supply Project
additional customs duty coming into effect from April 2022
on import of solar cells and modules. With India's ambitious
target of generating 500 GW of renewable energy by 2030,
prospects in renewable evacuation corridors look better. In
KSA and Oman, GW scale plants characterised by substantial
BESS and Grid components continue to provide huge
opportunities, given the Net Zero commitments and Green
Hydrogen prospects.
As the multilateral funding from institutions like JICA,
Millennium Challenge Corporation are now gathering
momentum and as the renewable energy projects are given
a thrust, several opportunities including interconnector
projects are now on the anvil in Africa. Countries such as
Algeria, Mozambique, Tanzania, and Uganda also offer
substantial potential.
The establishment of an Indonesian subsidiary of the business
is expected to open up sizeable opportunities locally. The
T&D network expansion plans of Thailand, Malaysia, and
Philippines in addition to Floating Solar, BESS and SVC related
opportunities have resulted in several prospects which are
under various stages of bidding. The entry into Georgia
with a 500 kV Transmission Line order should help build
credentials and experience for further opportunities in the
Transcaucasia region.
The scaling up of the Digital Solutions business, given its
early successes proving its potential and prowess, provides
another avenue for growth and profitability. The business
is well poised to garner opportunities arising out of the Net
Zero renewables race and provide a green technology path
to clean energy transition in India and abroad, all this while
enabling the customers and prosumers with the highest
standards of reliability, availability and efficiency of power
transmission and distribution networks.
• In order to track the movement of workforce engaged in
remote working areas, a mobile application LMNOP Raksha
has been developed. The application sends timely alerts to
the related supervisor pertaining to work happening in risk
prone areas leading to better EHS performance
WATER & EFFLUENT TREATMENT
L&T's Water & Effluent Treatment business develops water
infrastructure offerings which serve to store, move, and treat
water, thus delivering substantial social and economic benefits.
The business has established itself as an industry leader by
executing, commissioning, and operating mega water projects
in the areas of drinking water supply, wastewater treatment,
industrial water treatment, irrigation and development of
smart water infrastructure across the length and breadth of the
country. The business has successfully forayed into Middle East,
East Africa and SAARC region countries.
L&T's Water & Effluent Treatment business is organised into 3
verticals - (i) Water & Wastewater; (ii) Irrigation, Industrial &
Infrastructure; (iii) Water International.
The Water & Wastewater business vertical comprises of Rural
Water Supply, Urban Water Supply, Water Management and
Wastewater Treatment encompassing the entire spectrum of
water and wastewater solutions.
The Irrigation, Industrial & Infrastructure business vertical
constitutes Mega & Micro Irrigation, Industrial Water Systems &
Effluent Treatment, Desalination and Smart Water Infrastructure,
catering to the needs of agriculture and industries.
The Water International business vertical lays its focus on
the international markets and continues to tap business
opportunities in the regions of Middle East, East Africa, and
SAARC region countries.
49
Integrated Annual Report 2021-22
Industrial Area Sewage Treatment Works, Doha, Qatar
Business Environment
The Financial year 2021-22 was the second consecutive
year that the nation had to bear the brunt of the COVID-19
pandemic, with Governments being forced to divert
funds towards mitigating the healthcare emergency and
consequently leading to deferment of prospects in irrigation
and wastewater sectors. However, rural drinking water
continued to receive support under the 'Har Ghar Nal Se Jal'
Yojana in certain states.
• Coke Oven Battery, JSW Steel Dolvi
The water infrastructure market in the Middle East is on an
upward trajectory, aided by a rebound in the prices of crude
oil. The water sector in the African subcontinent is seeing
increasing thrust from multilateral agencies focused on
social sector lending in areas of drinking water supply and
wastewater treatment. Consequently, both these regions
witnessed a surge in prospects during the last quarter of
FY 2021-22.
The increase in prospects across the value chain of the
business has transformed the industry from a niche segment
to a highly commoditised market leading to entry of several
competitors. Further, to aid participation of local agencies in
Government contracts, a sharp dilution in prequalification
criteria has been carried out for all new tenders, leading to
increased competition. The business has been able to thrive
and grow amidst stiff competition by leveraging advanced
technologies, digitalisation and is on course to transform
itself into a technology-led EPC player.
Overview
• Material Schedule Tracker (MST) is a predictive analytics
tool that provides information on cycle time associated
with the procurement of a wide variety of materials. MST,
adopted across projects, aims to influence procurement
decisions and minimise delays associated with procurement
of major supplies
The global spotlight on ESG led to an upsurge in technology
intensive process-oriented orders with some of the established
PSUs leading the way by transforming their process toward
water neutrality.
Orders won:
Financial
LARSEN & TOUBRO
Statements
Kakrapar Atomic Power Plant 3
Steel, Aluminium, Copper, Gold, Phosphate and their allied
industries are likely to present new EPC opportunities,
especially in the KSA, UAE and West Africa. The downstream
metal industry is becoming an attractive investment
destination in UAE and KSA due to low power tariffs and
flexible policies which is included in their Vision 2030 to be
net exporter of value-added products.
Product Business
The Product Business is the domestic leader for many of
its products and is actively pursuing international markets
currently, more particularly in Indonesia, Australia and select
countries in Africa for their product range. The core products
(such as crushers, surface miners, sand plants, material
handling equipment) growth is primarily driven by movement
in following industrial sectors:
Cement Sector: Major cement producers continued to
embark on their expansion plans during FY 2021-22 showing
strong revival in the sector. L&T's Crushing Systems & Material
Handling Equipment continued to be the preferred choice
for Indian cement players. Riding on the current momentum
in the economy, business witnessed large order inflows from
the Cement Sector in the current year and continues to see
a strong order pipeline in the next year. It is estimated that
the Indian cement industry is likely to add ~80 million tonnes
(MT) capacity by FY 2023-24, riding on the growth in housing
and infrastructure projects.
Mining & Steel Sector: Continued augmentation of
capacities in coal and iron ore to cater to the growing
demand for steel has increased the business potential for its
equipment range covering Surface Miners and Skid-mounted
Coal Crushers, Stacker Reclaimers, Plough Feeders, etc. The
thrust on increasing domestic coal production is expected to
continue and reach 1000+ million tonnes by FY 2025-26.
The current year also witnessed an increased Order Inflow for
apron feeders, stacker reclaimers, coal crushing equipment
from the above sectors and the momentum is expected to
continue in the coming years with promising growth plans of
the mining and steel players.
Construction Sector: Growth in infrastructure projects,
backed by a revival in economic activities, drives demand for
sand plants as well as newly launched, new generation, high-
capacity aggregate crushing solutions (jaw crushers, cone
crushers and vertical shaft impactors).
Integrated Statutory
Report
Reports
Major Achievements
• Steel Melt Shop at Tata Steel Kalinganagar
• Coke Oven Battery at Tata Steel Kalinganagar
• Dry Circuit System at NMDC Ltd. Kirandul
• 2 MTPA Pellet Plant at NMDC Ltd. Nagarnar
• Maintained 100% market share in Cement sector and
securing a total of 17 order wins in limestone
crushing plants
53
Integrated Annual Report 2021-22
LIKEN STOUARE
KSM304C
KSM-304C Surface Miner
• Booked orders for 19 Sand Plants from various quarry
owners and construction companies across the country
• In order to mitigate the impact of steep volatility in prices
of commodities due to pent up demand and geopolitical
tension, the business is entering into pre-tender pricing
agreements with reputed vendors and increasingly focusing
on the Just In Time Model for material procurement based
on the availability of work fronts
With increased demand and growth in domestic
industrial sectors, the business has received the following
prestigious orders:
Discussion and Analysis
The first E&P Project of the business in Egypt is expected to
help set a foothold in Africa.
Corporate
Overview
• With the focus on accelerating innovation and maintaining
technology leadership, the business has embarked upon
the construction of a Water Technology Centre (WTC)
at Kancheepuram. The WTC is committed to continuous
R&D to innovate scalable solutions enabling the business
to meet present and future water needs, to build safe,
resilient and sustainable eco-systems globally
• The business is also working with several renowned start-
ups in the area of efficient and remote operation of plants
with a potential to provide a significant cost advantage.
These initiatives will go a long way in the transformation of
the business into a technology driven EPC player
Outlook
The prospects for development of water infrastructure
continue to remain bright. As per NITI Aayog Report 2019,
India is in the midst of a water crisis with 600 million people
facing extreme water stress. The Government is doing its bit
to tackle water scarcity through a variety of schemes.
The Jal Jeevan Mission with its ambitious target of providing
tapped drinking water to 193 million households by 2024
is expected to provide opportunities for mega prospects in
the arena of drinking water supply. With general elections
scheduled for 2024 and several state elections around the
corner, the Government is working on mission mode to
monitor the progress and hence prospects in this sector look
very encouraging.
Urbanisation, population growth, and climate related water
inequity will ensure good opportunities in the water and
wastewater infrastructure area in the foreseeable future.
Implementation of river interlinking projects announced in
the Union Budget 2022 will add another dimension to the
business prospects.
Investment into irrigation infrastructure is expected to revive
soon. With 51% of agricultural area being rain fed and with
an overall irrigation efficiency of only 38%, a wide array of
prospects are visible in macro and micro irrigation with the
Government being focused on 'More Crop per Drop' through
its 'Pradhan Mantri Krishi Sinchayee Yojana'.
The emergence of ESG investing has enhanced the focus
on sustainable corporate actions. As a result, the visibility
of prospects has increased in the areas of specialised and
process oriented industrial effluent solutions.
Management
51
Integrated Annual Report 2021-22
Stacker-Reclaimer
are available in water and wastewater businesses. Priority
funding from multilateral agencies for social infrastructure
projects are opening new markets for the business in East
Africa. The business is carefully reviewing each of the
prospects in the international space and perusing projects
in countries with a stable Government and sound economic
linkages to mitigate any associated risks.
MINERALS & METALS
On the international front, the rise in crude prices is driving
more investments in the Middle East and enough prospects
L&T's Minerals & Metals (M&M) business offers complete EPC
solutions for the Mining, Minerals & Metals sectors across
the globe. The business undertakes end-to-end engineering,
procurement, manufacturing, supply, construction, erection,
and commissioning of the projects, covering the complete
spectrum from mineral processing to finished metals.
Overview
The Kingdom of Saudi Arabia has been a frontrunner in
developing a non-oil economy - led by the mineral sector.
Incidentally, the mineral sector has been earmarked to
become the third pillar of the industrial thrust area with
the establishment of a Mining Fund to provide sustainable
finance for the sector.
The Mineral and Metals sector is one of the thrust areas
identified by most of the Middle East countries, as a strategic
diversification beyond oil. GCC countries continue to invest
in their mineral sectors with strategic long-term initiatives to
exploit the untapped mineral deposits.
International Business
All the major steel and non-ferrous metal producers are
augmenting their current capacity by way of expansion and
acquisitions, including setting up greenfield projects.
With the revival of economic activity post the disruption
caused by COVID-19, the demand for steel has increased and
a strong recovery in steel production was evident during FY
2021-22. During the latter half of the year, all non-ferrous
metal prices have steadied near their peaks, while steel prices
continue to rise unabated. Consequently, metal industry cash
flow has been robust, resulting in a substantial reduction in
their debt levels.
Business Environment
manufacturing centres are in Kansbahal, Odisha and
Kancheepuram, Tamil Nadu.
The complete range of our product solutions are backed
by 5 decades of experience & knowledge, in-house design
resources, state-of-the-art manufacturing capabilities
and providing after sales product support, value-added
and cost-effective services to ensure higher uptime. The
The business also offers comprehensive product solutions
like an array of customised Mineral Crushing Equipment and
Plants for varied applications such as surface miners, sand
manufacturing plants, material handling and high-speed
railway equipment, other custom-made critical equipment
and complex assemblies catering to core industrial sectors
including Mining, Steel, Ports, Fertilisers, Cement and
Chemical Plants, etc.
Domestic Business
52
I.
Net gains/(losses) on financial assets and financial liabilities measured at Fair Value through Profit
or Loss (FVTPL) and amortised cost:
Gains/(losses) on fair valuation or sale of investments
No.
A.
Financial asset or financial liabilities measured at fair value through Profit or Loss:
1.
Gains/(losses) on fair valuation/settlement of derivative:
2. Gains/(losses) on fair valuation or sale of loans (Financial Services)
393.27
(347.37)
1002.28
(158.76)
3.
2020-21
256.76
(a) Gains/(losses) on fair valuation or settlement of forward contracts not designated as
cash flow hedges
592
2021-22
LARSEN & TOUBRO
Sr.
2039.85
(55.52)
2023.82
6082.59
182734.91
4856.27
185230.58
23,29
23,29
393.21
70.60
463.81
23,29
1.88
183407.31
416.22
57.49
473.71
0.91
185889.98
(c)
Items of income, expenses, gains or losses related to financial instruments:
crore
Particulars
(b) Gains/(losses) on fair valuation or settlement of embedded derivative contracts not
designated as cash flow hedges
(2978.77)
(146.41)
(2743.03)
(a) Bad debts written off (net)
(73.50)
(321.07)
(b) Gains/(losses) on transfer of financial assets (including non-recourse basis)
(314.07)
(295.75)
Sub-total (B)
(6869.20)
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
45256.24
(iv) Impairment loss recognised in Statement of Profit and Loss [as exceptional items (net of tax)]
(v) Gains/(losses) on derecognition:
(44.32)
(330.11)
(iii) Provision for impairment loss (other than ECL) [net]
(c) Gains/(losses) on fair valuation or settlement of futures not designated as cash flow
hedges
85.56
(42.46)
Sub-total (A)
343.90
599.13
B.
Financial assets measured at amortised cost:
(i)
Exchange difference gains/(losses) on revaluation or settlement of items denominated in
foreign currency (trade receivables, loans given etc.)
476.13
(ii)
(Allowance)/reversal for expected credit loss during the year
(2567.56)
(314.22)
(2865.02)
(499.77)
488.99
592.34
28
0.10
0.10
11217.28
197508.49
10114.09
194518.81
591
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (contd.)
(b) Category-wise classification for applicable financial liabilities:
Sr.
No.
Particulars
I.
(i)
0.10
0.10
Measured at Fair Value through Profit or Loss (FVTPL):
6,12
11217.18
Notes forming part of the Consolidated Financial Statements (contd.)
9474.33
0.67
(iii) Derivative instruments designated as cash flow hedges
(iv) Embedded derivative designated as cash flow hedges
9,18
1715.78
8749.31
0.67
1344.88
9,18
26.40
Sub-total (c)
(d) Designated:
(i) Investment in equity instruments
Sub-total (d)
Sub-total (IIIc+d)
Total (1+11+111)
=
19.13
10113.99
575.91
50568.33
crore
As at
31-3-2022
Due to others
(iii) Lease liability
(iv) Others
Sub-total (II)
III. Derivative instruments (including embedded derivatives) through Other
Comprehensive Income:
IV.
(i)
(ii)
Derivative instruments designated as cash flow hedges
Embedded derivatives designated as cash flow hedges
Sub-total (III)
Financial guarantee contracts
Total (I+II+III+IV)
22,26,27
123468.23
132605.26
Due to micro enterprises and small enterprises
Note
(ii) Trade payables:
(i)
As at
31-3-2021
Derivative instruments not designated as cash flow hedges
23,29
36.44
(ii) Embedded derivatives not designated as cash flow hedges
(iii) Others
23,29
26.86
22.81
11.73
143.41
150.24
206.71
184.78
Sub-total (I)
II.
Measured at amortised cost:
Borrowings
NOTE [59] (contd.)
67013.47
Particulars
4759.49
(137.51)
(0.17)
(11205.43)
4243.15
593
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
Total (III A+B+C)
NOTE [59] (contd.)
Particulars
As at 31-3-2022
Note
Carrying
Fair value
amount
(d) Fair value of financial assets and financial liabilities measured at amortised cost:
=
(8804.87)
Sub-total (C)
690.55
12984.43
615.14
2670.07
1820.54
Sub-total (B)
13560.10
15420.11
C.
Interest expense:
(i)
Financial liabilities measured at amortised cost
(8728.85)
(11067.75)
(ii) Derivative instruments (including embeded derivatives) that are measured at fair value
through Other Comprehensive Income (reclassified to Profit and Loss during the year)
(iii) Financial liabilities measured at fair value through Profit or Loss
(76.02)
As at 31-3-2021
Carrying
amount
crore
Fair value
Financial assets:
69463.66
63597.99
6,12
67337.14
69463.66
63597.99
67013.47
Notes:
1.
Carrying amount of loans are net of provision for expected credit losses.
2.
The carrying amounts of trade and other receivables, cash and cash equivalents, trade and other payables are considered to be the same as
their fair values due to their short term nature. The carrying amounts of loans given and borrowings taken for short term or at floating rate
of interest are considered to be close to the fair value. Accordingly, these items have not been included in the above table.
(e) Disclosure pursuant to Ind AS 113 "Fair Value Measurement" - Fair value hierarchy of financial assets and financial liabilities measured at
amortised cost:
crore
594
67337.14
Financial assets measured at fair value through Other Comprehensive Income
(iii) Financial assets measured at fair value through Profit or Loss
22,27
Borrowings
Loans
7,8,16,17
46742.98
46742.98
Government securities, debentures and bonds
6,12
2700.24
Total
49443.22
2700.24
49443.22
52659.55
584.31
53243.86
52659.55
584.31
53243.86
Financial liabilities:
Total
(ii)
10199.48
Financial assets measured at amortised cost
Net gains/(losses) on financial assets and financial liabilities measured at fair value through Other
Comprehensive Income:
A.
Gains recognised in Other Comprehensive Income:
Financial assets measured at fair value through Other Comprehensive Income:
(ii)
(a) Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc.
Derivative measured at fair value through Other Comprehensive Income:
(32.64)
239.70
(b) Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
flow hedges
732.32
1911.09
Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges
Sub-total (A)
Less:
(38.33)
661.35
30.97
2181.76
II.
B.
(5753.06)
Total (A+B+C)
crore
2021-22
2020-21
C.
Financial liabilities measured at amortised cost:
(i)
Exchange difference gains/(losses) on revaluation or settlement of items denominated in
foreign currency (trade payables, borrowing availed etc.)
(91.33)
284.50
(ii) Unclaimed credit balances written back
106.17
232.51
Sub-total (C)
14.84
517.01
(2620.03)
Sr.
No.
Gains reclassified to Profit and Loss from Other Comprehensive Income
Financial assets measured at fair value through Other Comprehensive Income:
(12.00)
1656.67
(151.26)
III.
Interest and Other income/expense:
A.
Dividend Income:
Dividend income from investments measured at FVTPL
Sub-total (A)
4.26
28.47
4.26
28.47
B.
Interest Income:
(i)
Impairment loss recognised in Statement of Profit and Loss
(i)
C.
Net gains recognised in Other Comprehensive Income (A-B)
1. On government securities, bonds, debentures etc. upon sale
46.85
116.01
(ii)
Derivative measured at fair value through Other Comprehensive Income:
2. On forward contracts upon hedged future cash flows affecting the Profit or Loss or
related assets or liabilities
404.51
405.36
3.
On embedded derivative contracts upon hedged future cash flows affecting the Profit
or Loss or related assets or liabilities
(4.78)
3.72
Sub-total (B)
446.58
525.09
214.77
6,12
389.69
(i)
Particulars
Loss allowance as at 1-4-2020
Stage 1
570.38
Stage 2
268.65
Stage 3
crore
(iii) Reconciliation of loss allowance provision for financial services business - Loans:
Total
4624.96
New assets originated or purchased
461.25
60.59
35.71
Amount written off
3785.93
NOTE [58] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
6.31
(6.31)
119.74
(119.74)
6.10
(6.10)
The investments in money market funds are for the purpose of liquidity management only and hence not subject to any material price
risk.
(c) Credit risk management:
(i) Financial services business:
Financial services business has a risk management framework that monitors and ensures that the business lines operate within
the defined risk appetite and risk tolerance levels defined by the management. Risk management function is closely involved in
management and control of credit risk, portfolio monitoring, market risks including liquidity risk and operational risks. The credit
risk function independently evaluates proposals based on well-established sector specific internal frameworks, in order to identify,
mitigate and allocate risks as well as to enable risk-based pricing of assets. Regulatory and process risks are identified, mitigated
and managed by a separate group. Risk management policies are made under the guidance of Risk Management Committee and
are approved by Board of Directors.
(ii)
Other than financial services business:
The Group's customer profile include public sector enterprises, state owned companies and large private corporates. Accordingly,
the Group's customer credit risk is low. The Group's average project execution cycle is around 24 to 36 months. General payment
terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain
retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees.
The Group has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper
attention and focus for realisation.
589
Integrated Annual Report 2021-22
Transfers to Stage 1
(2230.13)
557.55
(2230.13)
43.35
358.28
Loss allowance as at 31-3-2021
908.81
345.60
3821.72
5076.13
New assets originated or purchased
856.54
25.76
44.39
926.69
Amount written off
(1797.23)
(1797.23)
Transfers to Stage 1
603.77
(102.95)
(179.38)
Increase/(decrease) provision on existing financial assets including recovery
(26.24)
(17.11)
Transfers to Stage 2
(30.17)
34.57
(4.40)
Transfers to Stage 3
(27.72)
(143.69)
171.41
Impact of changes in credit risk on account of stage movements
(42.17)
331.10
1476.54
1765.47
(66.11)
102.95
Debt funds and debt securities - increase by 0.50% in fair market value
Debt funds and debt securities - decrease by 0.50% in fair market value
Equity and equity marketable securities - increase by 5% in NAV
Equity and equity marketable securities - decrease by 5% in NAV
Particulars
18.28
38.98
91.85
19.40
91.85
Omani Riyal
365.55
202.36
265.40
100.15
785.49
193.34
599.11
186.38
Arab Emirates Dirham
38.98
1024.89
Malaysian Ringgit
1450.44
(a) Receivable hedges:
US Dollar
48885.03
80.88 27681.16
21203.87
37310.77
79.03
20391.92 16918.85
EURO
1330.72
91.80
829.41
501.31
1715.73
90.63
265.29
22.80
21.26
74.40
13.71
(42.41)
(13.71)
(42.41)
(13.71)
(12.70)
12.70
(19.80)
19.80
(12.70)
12.70
(19.80)
19.80
(b) Liquidity risk management:
The Group manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an
adequate committed credit lines. Given the need to fund diverse businesses, the Group maintains flexibility by needbased drawing from
committed credit lines. Management regularly monitors the position of cash and cash equivalents. The maturity profiles of financial
assets/liabilities including debt financing plans and liquidity ratios are considered while reviewing the liquidity position.
The Group's investment policy and strategy are focused on preservation of capital and supporting the Group's liquidity requirements. The
Group uses a combination of internal and external tools to execute its investment strategy and achieve its investment objectives. The
Group typically invests in money market funds, large debt funds, Government of India securities, equity and equity marketable securities
and other highly rated securities under an exposure limit framework. The investment policy focusses on minimising the potential risk
of principal loss. To provide a meaningful assessment of the price risk associated with the Group's investment portfolio, the Group
performed a sensitivity analysis to determine the impact of change in price of the securities on the value of the investment portfolio
assuming a 0.50% movement in the fair market value of debt funds and debt securities and a 5% movement in the NAV of the equity
and equity marketable securities as below:
crore
Increase/(decrease) in investment value
As at 31-3-2022 As at 31-3-2021
42.41
950.49
13.71
Interest rates - increase by 0.50% in INR interest rate
Interest rates - decrease by 0.50% in INR interest rate
USD (including pegged currencies) loans
Interest rates increase by 0.50% in USD interest rate
Interest rates - decrease by 0.50% in USD interest rate
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [58] (contd.)
A hypothetical 50 basis point shift in respective currency LIBOR and other benchmarks, holding all other variables constant, on the
unhedged loans would result in a corresponding increase/decrease in interest cost for the Group on a yearly basis as follows:
crore
Particulars
INR loans (net of loans given)
Increase/(decrease) in Profit after tax
2021-22
2020-21
Increase/(decrease) in Equity
As at 31-3-2022
As at 31-3-2021
42.41
(7.99)
Transfers to Stage 2
(117.67)
116.07
9,18
24.48
6
4886.22
33.68
4114.88
6,12
1576.15
6,12
0.91
22300.16
0.94
26971.36
16
22753.78
22877.66
22753.78
73.22
22877.66
9,18
(i) Loans
6,12
121.00
(iii) Investment in mutual funds and units of fund
6,12
12949.25
87.01
20236.28
(iv) Investment in government securities, debentures and bonds
6,12
1899.90
1739.80
(v) Derivative instruments not designated as cash flow hedges
(vi) Embedded derivatives not designated as cash flow hedges
(vii) Investment in security receipts
(viii) Investment in commercial paper
(ix) Other Investments
Sub-total (a)
(b) Designated:
Sub-total (b)
(ii) Investment in preference shares
45053.94
Sub-total (a+b)
800.37
42229.78
(vi) Advances recoverable in cash
18
(vii) Unbilled Revenue
18
844.34
1363.54
958.08
(viii) Cash and bank balances
9,14,15
(ix) Other receivables
Sub-total (II)
19879.53
1028.89
141237.27
837.93
16753.48
850.12
134555.70
III.
Measured at Fair Value through Other Comprehensive Income (FVTOCI):
(c) Mandatorily measured:
46138.92
49849.02
13
1577.08
II.
Measured at amortised cost:
Loans
7,8,16,17
66785.59
71541.63
(ii) Investment in government securities, debentures, bonds and CBLO
6,12
2700.24
584.31
(iii) Investment in commercial paper
6,12
919.14
(iv) Other Investments
6,12
(v) Trade receivables
Investment in government securities, debentures and bonds
(ii) Investment in preference shares
642.70
6,12
Changes in allowance for ECL:
Provision/(reversal) of allowance for ECL
Additional provision (net)
Written off as bad debts
Translation adjustment
Addition on account of business combination
Provision as at March 31 (Note 13)
(v) Amounts written off:
Particulars
Amount of financial assets written off during the period but still enforceable
crore
2021-22
3405.60
2020-21
3181.21
430.06
200.08
Provision as at April 1
375.05
Particulars
1101.47
130.61
(14.81)
(12.94)
Transfers to Stage 3
(34.35)
(7.28)
Impact of changes in credit risk on account of stage movements
Increase/(decrease) provision on existing financial assets including recovery
Loss allowance as at 31-3-2022
(iv) Reconciliation of allowance for expected credit loss ("ECL") on trade receivables (other than financial services business):
1163.97
(1743.04)
3626.52
(22.29)
225.08
41.63
961.18
(522.81)
As at 31-3-2022
1091.03
(1609.92)
1434.02
769.03
279.07
(425.58)
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59]
Other disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures":
(a) Category-wise classification for applicable financial assets:
Sr.
Particulars
No.
I.
Measured at Fair Value through Profit or Loss (FVTPL):
(a) Mandatorily measured:
crore
Note
As at
31-3-2022
As at
31-3-2021
(i)
Investment in equity instruments
LARSEN & TOUBRO
(146.52)
Statements
Discussion and Analysis Report
3.09
0.20
3892.51
(4.24)
0.09
3405.60
crore
2021-22
2020-21
1860.23
1972.77
(d) Commodity price risk management:
The Group bids for and executes EPC projects on turnkey basis. EPC projects entail procurement of various equipment and materials
which may have direct or indirect linkages to commodity prices like Steel (both long and flat steel), Copper, Aluminium, Zinc, Lead,
Nickel, Cement etc. Accordingly, the Group is exposed to the price risk on these commodities. To mitigate the risk of commodity
prices, the Group relies on contractual provisions like pass through of prices, price variation provisions, etc. and further uses hedging
instruments where available [Note 59(k)(ii)]. There is certain residual risk carried by the Group that cannot be hedged against.
The Group is also exposed to contingent risk on account of commodity price movements that may not be fully offset by contractual
provisions in the projects that it has bid for but which are not awarded yet. Commodity prices are volatile and have witnessed sharp
two-way movement during the financial year. This may impact margin on projects where the Group has submitted bids on a firm price
basis. However, for projects where the Group is eligible for an adjustment based on price variation clause, the actual impact will depend
on the exact project wins and the relative contractual provisions therein.
590
Corporate
Overview
Management
Integrated
Statutory Financial
Reports
Level 1
6494.48
Level 3
After
Nominal
amount
(*crore)
Average
twelve
twelve
rate
months
Within
months
(crore)
21.26
779.75
146.34
Canadian Dollar
13.46
59.84
(*)
13.46
Within
After
twelve twelve
months months
(*crore) (*crore)
(* crore)
597
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (contd.)
(k) Details of outstanding hedge instruments for which hedge accounting is followed:
(i)
rate
(₹)
Outstanding currency exchange rate hedge instruments:
598
As at 31-3-2022
As at 31-3-2021
Nominal
Average
Particulars
amount
(A) Forward covers taken to hedge exchange rate risk and accounted as cash flow hedge:
37.78
57.24
37.78
831.62
255.45
645.10
186.52
Qatari Riyal
1739.15
21.06
12.94
1734.08
1207.41
20.72
958.10
249.31
Australian Dollar
16.69
55.64
5.07
795.36
261.19
808.30
British Pound
214.37
104.57
214.37
257.70
100.22
257.70
Japanese Yen
1502.65
0.69
1401.81
100.84
2537.18
0.73
2426.78
110.40
Kuwaiti Dinar
519.15
62.67
69.74
449.41
4.32
150.24
18.70
15.56
(43.30)
2.21
143.41
(40.81)
A 1% change in the unobservable inputs used in fair valuation of Level 3 liabilities does not have a significant impact on the value.
Maturity profile of financial liabilities based on undiscounted cash flows:
A. Non-derivative liabilities:
Borrowings
Trade payables:
crore
As at 31-3-2022
As at 31-3-2021
Within
Particulars
(49.95)
18.48
218.20
(i)
Movement of financial liabilities measured using unobservable inputs (Level 3):
Particulars
Balance as at 31-3-2020
Addition during the year
Charge recognised in Statement of Profit and Loss
Settled during the year
Foreign exchange difference
Balance as at 31-3-2021
Addition during the year
Charge recognised in Statement of Profit and Loss
Settled during the year
Foreign exchange difference
Balance as at 31-3-2022
Note:
crore
Contingent consideration
Note
16.69
twelve
months
Within
488.99
45256.24
5006.56
B. Derivative liabilities:
Forward contracts
23,29
405.55
Embedded derivatives
120.05
2352.58
135.19
501.67
2123.87
2625.54
103611.36 111436.64 215048.00
23,29
28.59
13.17
Total
490.81
41.76
434.14
98.43
532.57
386.74
69.74
456.48
62.67
85.26
368.94
42903.66
4871.37
94.72
575.91
2321.53 50568.33
73.27 6225.98
2120.69 2656.13
76190.54 197834.45
481.19
48246.80
6152.71
535.44
121643.91
After
Total
twelve
months
twelve
months
Total
22,26,27
66227.77
71580.33 137808.10
54965.72 106704.95 161670.67
Due to micro enterprises and small enterprises
Due to others
Other financial liabilities
Lease Liability
Total
28
23, 29
After
twelve
months
NOTE [59] (contd.)
72.07
72.07
Within
After
Nominal
amount
(*crore)
Average
twelve
twelve
rate
After
twelve
months
(* crore)
months
(₹)
(* crore)
(a) Receivable hedges:
US Dollar/Indian Rupees
962.41
82.68
46.90
months
EURO/US Dollar
(*crore)
(* crore)
11.23
85.99
3.51
58.77
3.51
(B) Options taken to hedge exchange rate risk and accounted as cash flow hedge:
As at 31-3-2022
(₹)
As at 31-3-2021
Nominal
Average
Particulars
twelve
amount
rate
months
Within
1213.94
$1.18 to
661.17
$1.15 to
618.03
212.84
379.50
$ 1.16
592.34
US Dollar/EURO
238.53
(b) Payable hedges:
379.50
238.53
$1.15 to
618.03
212.84
379.50
$ 1.16
$1.18
379.50
$1.18
EURO/US Dollar
915.51 1052.91
552.77 1093.04
81.76
90.50
962.41
$ 1.08 to
582.92
510.12
$1.27
$1.18
167.71
106.23
$1.08
273.94
97.12
167.71
$ 1.27
264.83
85.99
169.76
185.27
80.29
12538.47
EURO
5026.27
Qatari Riyals
149.96
74.88 11573.90
87.39 4916.55
20.82 149.96
964.57
109.72
US Dollar
14875.35
7293.72
73.39 11322.88
7013.89
3552.47
279.83
29.59
20.69
29.59
Arab Emirates Dirham
87.63
(b) Payable hedges:
108.54
8.70
South African Rand
63.52
4.67
63.52
Danish Krone
38.91
11.94
38.91
Thai Baht
2.77
2.31
2.77
Swedish Krona
48.20
8.03
48.20
108.54
42.35
55.10
20.71
46.35
253.45
32.43
242.90
242.90
242.90
9.46
189.04
32.43
9.46
Chinese Yuan
Canadian Dollar
500.30
3.63
79.43
12.04
60.69
425.40
500.30
3.63
0.90
355.03
426.30
Swiss Franc
Omani Riyal
Kuwaiti Dinar
(* crore)
20.28
46.35
British Pound
127.11
105.93
127.11
26.41
101.30
26.41
Japanese Yen
897.43
0.67
897.43
1325.68
0.72
1325.68
42.35
Level 2
Notes forming part of the Consolidated Financial Statements (contd.)
Statements
designated as cash flow hedges
9,18
24.48
24.48
33.68
33.68
(vii) Other investments
(vi) Embedded derivative instruments not
6,12
US Dollar/EURO
0.94
(viii) Loans (Financial Services)
16
22753.78 22753.78
4176.24 4177.18
22877.66 22877.66
Financial assets at FVTOCI:
1576.15 4918.33
(i) Debt instruments viz. government securities,
bonds and debentures
116.07
73.22
6,12
12918.05
121.00
12918.05 20174.92
87.01
87.01
20174.92
(iv) Debt instruments viz. government securities,
bonds and debentures
6,12
116.07
1309.10
1899.90
1014.35
725.45
1739.80
(v) Derivative instruments not designated as cash
flow hedges
9,8
73.22
590.80
6,12
6591.99
2882.05
1344.88
1344.88
(v) Embedded derivative financial instruments
designated as cash flow hedges
9,18
26.40
26.40
19.13
1715.78
19.13
20982.53
6298.08 28990.61 56271.22
27797.07
3619.24 28546.80 59963.11
Financial liabilities:
Financial liabilities at FVTPL:
(a) Designated at FVTPL:
Total
1715.78
9,18
(iv) Derivative financial instruments designated as
cash flow hedges
0.29
9474.33
6503.01
2104.54
141.76 8749.31
(ii) Preference shares
6
0.67
0.67
0.67
0.67
(iii) Equity shares
6
0.10
0.10
0.10
0.10
(iii) Mutual fund
121.00
6,12
(ii) Preference shares
Level 2
Level 3
Total
level 3 items
Financial assets:
Loans
Government securities, debentures and bonds
Level 1
550.34
550.34
6833.45
33.97
6867.42
45826.10
45826.10
52659.55
584.31
53243.86
Discounted cash flow
Financial liabilities:
Total
Valuation technique for
crore
As at 31-3-2021
Total
Valuation technique for
level 3 items
Financial assets:
Loans
Government securities, debentures and bonds
2338.82
Total
2338.82
6254.58 40488.40
137.81
223.61
6392.39 40712.01
46742.98
2700.24
49443.22
Discounted cash flow
Financial liabilities:
Borrowings
Total
29417.01
29417.01
40046.65
40046.65
69463.66 Discounted cash flow
69463.66
Borrowings
(i)
582.62
582.62
Level 2
Level 3
Total
Level 1
As at 31-3-2021
Level 2
Level 3
Total
Level 1
Financial assets at FVTPL:
6,12
163.39
605.64
769.03
104.79
537.91
642.70
(i) Equity shares
Note
As at 31-3-2022
crore
21378.03
21378.03
45052.82
45052.82
67013.47 Discounted cash flow
67013.47
Valuation technique Level 2: Future cash flows discounted using market rates.
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (contd.)
(f)
Fair value hierarchy of financial assets and financial liabilities at fair value:
Particulars
Financial assets:
Total
LARSEN & TOUBRO
Derivative instruments not designated as
cash flow hedges
36.44
(348.08)
(252.39)
(668.93)
Gains/(losses) recognised in Other
comprehensive income
30.52
30.52
(74.06)
Impairment recognised in Profit or Loss
Balance as at 31-3-2022
605.74
121.67
591.09
22753.78
4918.33
394.77
28990.61
394.77
(h)
(0.48)
Gains/(losses) recognised in Profit or Loss
28546.80
926.09
65.08
35.67
7315.57
1495.55
8911.87
6.08
Disposal during the year
(627.35)
(7091.37)
(501.07)
(8220.99)
Transferred to held for sale
(3.43)
(3.43)
(1.20)
Sensitivity disclosure for level 3 fair value measurements:
Particulars
Fair value as at
31-3-2022 31-3-2021
Other
Investments
4918.33
4176.24 Net Assets Value (NAV)
Increase/(decrease) of 5% in the book value would result in impact on profit or
loss by 21.87 crore (previous year: 19.57 crore)
Increase/(decrease) of 1% in net realisation would result in impact on profit or
loss by 0.21 crore (previous year: 0.21 crore)
Increase/(decrease) of 25 bps in capitalisation rate would result in impact on
profit or loss by 0.45 crore (previous year: 0.45 crore)
Increase/(decrease) of 5% in the book value would result in impact on profit or
loss by 2.28 crore (previous year: 0.54 crore)
Loans
Increase/(decrease) in the fair value by 5% would result in impact on profit or loss
by 3.80 crore (previous year: 3.82 crore)
Increase/(decrease) in fair value by 0.25% would result in impact on profit or loss
by 42.57 crore (previous year: 42.80 crore)
Increase/(decrease) in the NAV by 5% would result in impact on profit or loss
183.99 crore (previous year: 156.25 crore)
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Increase/(decrease) in fair value by 0.25% would result in impact on profit or loss
by 1.22 crore (previous year: 1.76 crore)
22877.66 Expected yield
22753.78
867.21 Expected yield
Significant unobservable
inputs
Sensitivity
crore
536.43
474.78 Book value
596
Equity shares
69.31
63.23 31-3-2022 and 31-3-2021:
1. Net realisation per month
31.83 per sq. ft.
2. Capitalisation rate 11.50%
45.52
10.85 Book value
Preference
shares
76.15
76.83 Expected yield
Debt
instruments
591.09
4176.24
22877.66
867.21
87.68
416.22
(ii) Embedded derivative financial instruments
designated as cash flow hedges
23,29
70.60
70.60
57.49
57.49
416.22
Total
143.41
670.52
508.25
150.24
658.49
Valuation technique and key inputs used to determine fair value:
A.
527.11
393.21
393.21
23,29
36.44
22.81
22.81
(ii) Embedded derivative instruments not
designated as cash flow hedges
23,29
26.86
26.86
11.73
11.73
(iii) Others
143.41
143.41
150.24
150.24
(b) Designated at FVTOCI:
(i) Derivative financial instruments designated
as cash flow hedges
Level 1: Mutual funds, bonds, debentures and government securities - Quoted price in the active market.
23,29
B.
Derivative Instruments - Present value technique using forward exchange rates as at reporting period.
Disposal during the year
(13.60)
Gains/(losses) recognised in Profit or Loss
(5.24)
0.55
(9.29)
(125.61)
24877.64
3721.30
(5562.49)
(158.79)
10.85
2605.09
1913.27
5645.42
(214.55) (5799.93)
(127.57)
(416.66)
Impairment recognised in Profit or Loss
(151.28)
(151.28)
Balance as at 31-3-2021
538.01
29269.25
Addition during the year
Total
Other
investments
(b)
Preference share and government securities, bonds and debentures - Future cash flows are discounted using G-sec
rates as at reporting date.
595
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (contd.)
(g) Movement of items measured using unobservable inputs (Level 3):
crore
Particulars
Balance as at 31-3-2020
Equity Preference
shares
Debt
Loans
543.25
89.88
shares instruments
1153.39
Level 2: (a)
Addition during the year
(*crore)
(1749.91)
Private Limited
0.01%
6.48
0.02%
1.97
(0.01%)
(0.02)
0.03%
Powerup Cloud Technologies
1.95
Limited
0.02%
13.63
(0.00%)
(0.13)
(0.00%)
(0.13)
Financial Services:
Cuelogic Technologies Private
(2.16)
(0.02%)
(2.16)
Seastar Labs Private Limited
0.00%
0.06
(0.00%)
(0.05)
(0.00%)
(0.05)
Esencia Technologies India Private
Limited
0.00%
0.59
(0.00%)
(0.01)
(0.00%)
(0.01)
Lymbyc Solutions Private Limited
0.00%
0.52
(0.02%)
L&T Finance Holdings Limited
13.68%
11271.13
2.52%
3.58
L&T Infra Investment Partners
Trustee Private Limited
0.00%
0.08
0.00%
0.01
0.00%
0.01
L&T Investment Management
Limited
0.66%
541.57
1.75%
151.38
(0.30%)
(1.00)
1.67%
150.38
0.04%
0.14
3.58
21.52
218.18
0.73%
2.42
2.45%
220.60
L&T Infra Credit Limited (formerly
known as L&T Infra Debt Fund
Limited)
1.63%
1340.38
0.05%
4.11
0.20%
0.66
0.06%
4.77
L&T Infra Investment Partners
Advisory Private Limited
0.03%
0.04%
L&T Mutual Fund Trustee Limited
0.00%
0.00%
(0.00%)
(1.34)
(0.02%)
(1.33)
(0.01%)
(1.33)
L&T Geostructure Private Limited
0.35%
Aggregates Limited
287.61
48.36
(0.02%)
(0.08)
0.54%
48.28
L&T Infrastructure Engineering
Limited
0.06%
47.53
0.56%
Hi-Tech Rock Products and
Infrastructure:
Indian Subsidiaries
As % of
consolidated
profit or loss
As % of
consolidated
Share in Total comprehensive
income
As % of
consolidated
Amount
(*crore)
Other
comprehensive
income
Amount
(*crore)
Total
Amount
(*crore)
comprehensive
income
Parent company
Larsen and Toubro Limited
81.44%
67114.05
90.89%
7879.45
(11.00%)
(36.21)
87.16%
7843.24
0.02%
2.06
0.02%
2.06
1652.90
29.63%
97.61
19.45%
1750.51
L&T Thales Technology Services
Private Limited
0.06%
51.50
0.16%
13.50
0.04%
0.14
0.15%
13.64
Graphene Semiconductor Services
Private Limited
0.01%
10.98
19.07%
0.14
5473.94
Mindtree Limited (Consolidated)
IT & Technology Services:
Larsen & Toubro Infotech Limited
10.20%
8402.87
26.08%
2260.93
19.51%
64.27
25.84%
2325.20
L&T Technology Services Limited
4.83%
3981.54
10.60%
918.55
24.46%
80.57
11.10%
999.12
6.64%
net assets
0.00%
0.00%
(0.00%)
(0.01)
(0.25%)
(23.38)
L&T Parel Project Private Limited
(formerly known as L&T Parel
Project LLP)
0.25%
(23.38)
206.60
59.82
(0.01%)
(0.03)
0.66%
59.79
L&T Realty Developers Limited
1.13%
927.59
0.69%
(0.27%)
(68.80)
(0.08%)
0.44%
39.16
Nabha Power Limited
4.79%
3951.21
3.48%
301.82
(0.20%)
(0.66)
3.35%
301.16
Realty:
Chennai Vision Developers Private
Limited
(0.00%)
(0.03)
(0.00%)
(0.01)
L&T Asian Realty Project LLP
1.69%
146.42
(0.01%)
(0.04)
L&T Westend Project LLP
Valves, Construction Equipment:
L&T Construction Equipment
Limited
L&T Valves Limited
0.25%
204.38
0.13%
11.45
(0.03%)
(0.10)
0.13%
11.35
0.59%
484.44
0.16%
14.10
(0.02%)
(0.07)
(0.59)
39.16
(0.01%)
(0.01%)
1.63%
146.38
LTR SSM Private Limited
L&T Seawoods Limited
3.40%
2801.36
0.62%
53.36
0.01%
0.02
0.60%
53.38
L&T Vision Ventures Limited
L&T Innovation Campus (Chennai)
Limited (formerly known as
L&T Electricals and Automation
Limited)
(0.00%)
(2.32)
(0.59)
0.96
0.45%
L&T Uttaranchal Hydropower
9.32%
(0.53%)
807.99
18.83%
62.02
(46.33)
9.67%
(0.51%)
870.01
(46.33)
(6.26)
Developmental Projects:
(2.03%)
(1669.37) (20.14%) (1745.85)
0.15%
0.51
(19.40%) (1745.34)
604
Corporate
Overview
Management
L&T Metro Rail (Hyderabad)
Limited
(0.07%)
(6.26)
(0.07%)
0.04
0.00%
0.04
L&T Financial Consultants Limited
0.30%
245.15
0.78%
67.67
0.01%
0.03
0.75%
67.70
Mudit Cement Private Limited
0.03%
L&T Finance Limited
20.01%
L&T Infra Investment Partners
0.48%
22.28
16491.38
398.81
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
(0.15)
0.00%
0.08
0.00%
0.08
L&T Himachal Hydropower Limited
(0.00%)
(0.59)
0.03%
2.43
0.03%
2.43
L&T Power Development Limited
3.04%
2508.59
2.52%
218.93
2.43%
218.93
(0.00%)
Limited
Limited
Power Development:
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [62] (contd.)
Net Assets, i.e., total assets minus
total liabilities
Share in profit or (loss)
Name of the entity
As % of
consolidated
Amount
(crore)
net assets
As % of
consolidated
profit or loss
Share in Other comprehensive
income
As % of
consolidated
Share in Total comprehensive
income
As % of
consolidated
Amount
(crore)
Other
comprehensive
income
Amount
(crore)
Amount
Total
(*crore)
comprehensive
income
L&T Arunachal Hydropower
Amount
(*crore)
As % of
consolidated
Name of the entity
Total inventories and current financial assets hypothecated as collateral
55979.77
50936.71
Non-current:
Loans
Total non-current financial assets hypothecated as collateral
39027.52
47357.97
522.27
39027.52
601
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [61]
Disclosure pursuant to Ind AS 116 "Leases":
(a) Where the Group is a lessor:
602
47357.97
690.07
Other assets
34777.90
(2.98)
(4.72)
(7.01)
Closing balance
NOTE [60]
Value of financial assets and inventories hypothecated as collateral for liabilities and/or commitments and/or contingent liabilities:
crore
As at
31-3-2022
As at
31-3-2021
Particulars
Current:
Inventories and trade receivables
Cash and cash equivalents
11409.83
15290.95
4623.16
345.59
Loans
39256.71
(i)
Finance leases:
A. Assets given under leases mainly include power plant where the Group has agreed to manufacture/construct an asset and
convey, in substance, a right to the beneficiary to use the asset over a major part of its economic life, for a pre-determined
consideration.
B.
1518.23
1235.89
643.44
310.37
3
Receivable later than 2 years and not later than 3 years
1291.33
1517.28
478.98
642.15
4
Receivable later than 3 years and not later than 4 years
1017.80
1290.94
246.71
478.38
5
Receivable later than 4 years and not later than 5 years
1008.68
Receivable later than 1 year and not later than 2 years
(0.77)
2
343.45
Finance lease income recognised in the Statement of Profit and Loss: 1021.62 crore (previous year:
of above, 971.23 crore (previous year: 984.30 crore) is on the net investment in finance lease and
year: 39.34 crore) is income relating to variable lease payments not included in the measurement of
finance leases.
1023.64 crore). Out
50.39 crore (previous
the net investment in
C. Selling profit on finance lease recognised in the Statement of Profit and Loss: 1.13 crore (previous year: 14.55 crore).
D. Sub-lease income recognised on finance leases: 0.10 crore (previous year: 0.18 crore).
E.
The gross investment in these leases and the present value of minimum lease payments receivable is as under:
Minimum lease payments
Sr.
Particulars
crore
Present value of minimum
lease payments
No.
As at
31-3-2022
1
Receivable not later than 1 year
1241.74
As at
31-3-2021
1151.43
As at
31-3-2022
As at
31-3-2021
207.15
1017.77
Taxes related to above
85.27
(iii) Manufacturing, construction and operating expenses
44.78
90.86
(iv) Finance costs
(75.37)
(137.54)
(v) Sales, administration and other expenses
47.30
38.12
242.30
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (contd.)
Corporate
Overview
284.56
(ii) Revenue from operations
260.25
Total
723.25
(4.72)
492.11
(7.01)
(n) Reclassification of hedging reserve and cost of hedging reserve to Profit or Loss:
600
Particulars
(A) Future cash flows are no longer expected to occur:
(i) Sales, administration and other expenses
(B) Hedged expected future cash flows affecting Profit or loss:
crore
2021-22
2020-21
21.57
39.49
(i)
Progress billing
20.40
(o) Movement of cash flow hedging reserve and cost of hedging reserve:
crore
Cash flow hedging reserve
2021-22
(6.62)
(20.40)
(260.25)
(116.50)
(479.18)
Closing balance
723.25
492.11
crore
Cost of hedging reserve
2021-22
2020-21
Opening balance
(7.01)
(15.15)
Changes in the forward element of the forward contracts where changes in spot element of forward
contract is designated as hedging instruments for time period related hedges
(82.21)
(138.38)
Amount reclassified to Profit or Loss
0.15
149.50
Taxes related to above
Amount included in non-financial asset/liability
2020-21
Opening balance
492.11
(421.77)
Changes in the spot element of the forward contracts which is designated as hedging instruments
for time period related hedges
1.77
222.30
Changes in fair value of forward contracts designated as hedging instruments
762.09
1837.49
Changes in intrinsic value of option contracts
7.24
(6.94)
Changes in fair value of swaps
Amount reclassified to Profit or Loss
4.90
28.16
(408.11)
(421.08)
Amount included in progress billing in Balance Sheet
265.92
246.40
6
crore
Depreciation for the year
Class of asset
2021-22
Land
19.70
Buildings
397.69
(iii) Details with respect to right-of-use assets:
2020-21
19.03
363.20
3.80
Plant & equipment
36.13
73.57
423.10
28.04
Additions during the year
2020-21
5.64
354.63
Carrying amount
As at 31-3-2022 As at 31-3-2021
343.82
2021-22
(ii) The Group during the year has leased out surplus capacity in leased assets and has accounted an income of 3.08 crore (previous
year: 4.12 crore) on such sub-leases.
The Group has taken on lease various assets such as plant & equipment, buildings, furniture & fixtures, vehicles and computers.
Generally, leases are renewed only on mutual consent and at a prevalent market price.
(i)
48.66
3
Receivable later than 2 years and not later than 3 years
17.61
22.82
4
Receivable later than 3 years and not later than 4 years
1.37
7.41
5
6
Receivable later than 4 years and not later than 5 years
Receivable later than 5 years
Total (1+2+3+4+5+6)
0.50
0.37
0.40
0.64
113.82
150.19
(b) Where the Group is a lessee:
368.80
1606.87
1602.80
5.78
1988.62
2021.53
(iv) Interest expense on lease liabilities amounts to 155.59 crore (previous year: 203.57 crore) [including Nil (previous year: * 0.28
₹
crore) pertaining to discontinued operations].
(v)
Amounts not included in the measurement of the lease liability and recognised as expense in the Statement of Profit and Loss
during the year are as follows:
A. Short term leases - 3102.47 crore (previous year: 2339.65 crore) [including Nil (previous year: 4.60 crore) pertaining to
discontinued operations];
B. Low value leases - 68.62 crore (previous year: 38.88 crore)
(vi) Total cash outflow for leases amounts to 3557.66 crore (previous year: 2792.92 crore) [including Nil (previous year: * 5.89
crore) pertaining to discontinued operations] during the year including cash outflow of short term and low value leases.
(vii) The Group has entered into certain lease agreements, which had not commenced by the year end and as a result, a lease liability
and right-of-use asset has not been recognised as at year end. The aggregate future cash flows to which the Group is exposed in
respect of these contracts are:
Fixed payments of ₹7.38 crore (previous year: 8.39 crore) per year, for a lease term of 5.5 years (previous year: 10 years)
603
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [62]
Additional information pursuant to Schedule III to the Companies Act, 2013 as at and for the year ended 31-3-2022:
Share in Other comprehensive
income
Net Assets, i.e., total assets minus
total liabilities
Share in profit or (loss)
368.15
41.48
454.94
0.93
33.27
42.82
Furniture & fixtures
1.67
1.67
3.48
5.14
Vehicles
0.21
0.16
0.34
0.25
0.45
Computers
0.59
Total
455.99
0.24
457.87
1.76
1.52
Receivable later than 1 year and not later than 2 years
2
As at
31-3-2021
70.29
8715.83
11
Less: Impairment [in Developmental Projects Segment
(Note 48)] Expected credit loss on lease receivables
1989.06
1687.42
1989.06
1687.42
Net lease receivables (10-11)
6558.43
7028.41
6558.43
7028.41
F.
Reconciliation of carrying amount of net investment in finance lease receivables:
crore
Sr. No. Particulars
1
Opening balance
8547.49
2021-22
7028.41
10 Present value of minimum lease payments receivable (8-9)
9961.59
Receivable later than 5 years
11440.94
12449.61
5578.63
5841.02
7
Unguaranteed residual value
990.36
990.36
990.36
990.36
8
Gross investment in leases (1+2+3+4+5+6+7)
18509.08
19653.28
8547.49
8715.83
9
Less: Unearned finance income
10937.45
0.16%
2020-21
8898.18
Finance income/sub-lease income recognised during the year
C. Sub-lease income recognised on operating leases: 2.98 crore (previous year: 3.94 crore).
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [61] (contd.)
D.
Annual undiscounted lease payments receivable is as under:
crore
As at
Sr. No. Particulars
31-3-2022
1
Receivable not later than 1 year
52.46
Operating lease income recognised in the Statement of Profit and Loss: 107.52 crore (previous year: ₹ 101.31 crore).
2
The Group has given, on non-cancellable lease, certain assets such as buildings, plant & equipment, furniture & fixtures and
vehicles. Leases are renewed only on mutual consent and at a prevalent market price and sub-lease is generally restricted.
A.
971.33
984.48
3
Addition to finance lease during the year
7.84
4
Lease rental received during the year
(1147.51)
28.65
(1195.48)
5
Impairment [in Developmental Projects Segment (Note 48)]/ Expected credit loss
recognised during the year
(301.64)
(1687.42)
6
Closing balance (1+2+3+4+5)
6558.43
7028.41
(ii) Operating leases:
B.
14.03
Others:
Bhilai Power Supply Company
(0.10%)
122.94
1.42%
884.93
1.07%
Limited
L&T MHI Power Boilers Private
Power:
(0.34)
Indian Joint Ventures
(0.08)
(0.59)
5.21
Total Associates
(1.48)
(0.02%)
(0.08)
(0.02%)
(0.67)
1.36%
122.60
L&T - MHI Power Turbine
37.44
0.05%
L&T-Sargent & Lundy Limited
14.10
0.16%
14.10
0.17%
76.19
0.09%
L&T Howden Private Limited
10.77
0.12%
5.75
1.75%
5.02
0.06%
196.44
0.24%
Generators Private Limited
(1.40)
(0.02%)
3.03
0.00%
Associates
(1858.88)
(20.66%)
(108.97)
(33.08%)
(0.01%)
(20.20%)
(12966.07)
(15.73%)
subsidiaries
Non-controlling Interest in all
5671.01
348.79
21.38
0.24%
21.29
6.46%
0.09
5322.22
60142.92
Indian Associates
0.12%
Gujarat Leather Industries Limited
0.01%
L&T Camp Facilities LLC
(3.89)
(0.00%)
Contracting Co. WLL
Larsen & Toubro Qatar & HBK
Foreign Associates
0.04
0.00%
0.77
0.01%
0.04
0.00%
0.53
0.00%
Private Limited
Magtorq Engineering Solutions
0.77
0.01%
5.54
Magtorq Private Limited
Total Subsidiaries
9.36
0.18
0.50
0.15%
(6.40)
(0.07%)
48.18
0.06%
L&T-Chiyoda Limited
(56.76)
(0.07%)
(0.63%)
2.39%
(64.62)
(0.75%)
192.04
0.23%
Limited
L&T Sapura Shipping Private
0.01
7.86
(5.90)
Developmental Projects:
L&T Infrastructure Development
Foreign Joint Ventures
(0.01)
(0.00%)
(0.01)
(0.00%)
0.06
0.00%
Private Limited
Raykal Aluminium Company
Others:
68.33
0.76%
55.71
16.91%
12.62
0.15%
808.58
0.98%
Projects Limited (Consolidated)
0.00%
0.01
0.00%
0.30
Other
comprehensive
income
Amount
(crore)
As % of
consolidated
Share in Total comprehensive
income
Share in Other comprehensive
income
As % of
consolidated
As % of
consolidated
profit or loss
net assets
Amount
(*crore)
As % of
consolidated
Name of the entity
Share in profit or (loss)
Net Assets, i.e., total assets minus
total liabilities
NOTE [62] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
607
9.54
0.11%
Amount
(*crore)
0.05%
Amount
(*crore)
0.00%
Limited
L&T Sapura Offshore Private
Hydrocarbon:
26.34
-- 0.29%
26.34
0.30%
33.68
0.04%
Limited
L&T MBDA Missile Systems
Defence Engineering:
(1792.48)
(2.18%)
further losses recognised]
Group's funded exposure (net of
impairment) is nil and hence no
L&T Special Steels and Heavy
Forgings Private Limited [The
Heavy Engineering:
Total
comprehensive
income
0.00%
601.54
0.73%
Amount
Share in Total comprehensive
income
As % of
consolidated
Share in Other comprehensive
income
As % of
consolidated
As % of
consolidated
Amount
(*crore)
As % of
consolidated
Name of the entity
Share in profit or (loss)
(*crore)
Net Assets, i.e., total assets minus
total liabilities
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
NOTE [62] (contd.)
net assets
profit or loss
Other
comprehensive
income
(0.08)
(0.00%)
0.23
0.00%
Limited
Graphene Solutions Taiwan
(0.02)
(0.00%)
(0.02)
(0.00%)
0.13
0.00%
Graphene Solutions SDN. BHD.
income
comprehensive
(*crore)
Total
Amount
Amount
(*crore)
606
(0.11)
(0.00%)
0.02
0.00%
0.99
0.00%
Ruletronics Systems Inc.
(0.30)
(0.00%)
(0.02)
(0.01%)
(0.28)
(0.00%)
Ruletronics Limited
(4.29)
(0.05%)
(0.14)
(0.04%)
(4.15)
(0.05%)
(5.07)
(0.01%)
0.21
0.00%
0.01%
0.00%
0.01%
(0.13)
(0.00%)
0.53
0.00%
Graphene Solutions PTE Limited
60.24
0.67%
16.86
5.11%
43.38
0.50%
309.07
0.38%
L&T Technology Services LLC
(0.39)
(0.00%)
Lymbyc Solutions Inc.
0.24
0.03
0.01
(0.00%)
(0.07)
(0.01%)
(3.33)
(0.04%)
(2.07)
(0.00%)
LLC
L&T Valves Arabia Manufacturing
Valves, Construction Equipment:
0.62
0.01%
0.02
0.01%
0.60
0.01%
0.97
0.00%
Cuelogic Technologies Inc.
(0.97)
(0.01%)
L&T Valves USA LLC
(0.02)
0.00%
0.01%
L&T Global Holdings Limited
55.93
0.62%
13.58
4.12%
42.35
0.49%
403.05
0.49%
L&T International FZE
Others:
Thalest Limited
Electrical & Automation:
0.88
(3.37)
(0.04%)
0.01%
(0.04)
0.06
0.02%
0.82
2.18
Construction
(0.01%)
(0.01%)
(6.12)
(0.07%)
0.65
0.20%
(6.77)
(0.08%)
15.19
0.02%
Orchestra Technology, Inc.
1.13
0.01%
0.11
0.03%
1.02
0.01%
2.26
0.00%
(Shanghai) Co. Limited
L&T Technology Services
Larsen & Toubro Infotech UK
(0.95)
Limited
12.71
(0.88)
(0.00%)
Limited
L&T Technology Services (Canada)
16.58
0.18%
0.33
0.10%
16.25
0.19%
17.97
0.02%
LTI Middle East FZ-LLC
12.49
0.14%
(0.30)
(0.09%)
12.79
0.15%
0.02%
(2.67)
L&T Infrastructure Engineering
Asia Private Limited JV LLP
(0.32%)
(262.34)
0.43%
37.11
(3.10%)
(10.22)
0.30%
26.89
Larsen Toubro Arabia LLC
L&T Hydrocarbon Saudi Company
(653.33)
0.09%
7.64
(25.16%)
(82.88)
(0.84%)
(75.24)
Larsen & Toubro Kuwait
(0.79%)
(29.06)
(0.31%)
6.95
Amount
(*crore)
comprehensive
income
Hydrocarbon:
Larsen & Toubro Heavy
Engineering LLC
(0.16%)
(128.91)
(0.10%)
(8.69)
(1.34%)
(4.42)
(0.15%)
(13.11)
L&T Modular Fabrication Yard LLC
0.22%
179.07
(0.42%)
(36.01)
2.11%
Construction General Contracting
Company WLL
0.01%
8.92
0.01%
0.48
IT & Technology Services:
L&T Information Technology
Services (Shanghai) Co., Limited
(0.00%)
(1.66)
0.03%
2.24
(0.06%)
(0.20)
0.02%
2.04
L&T Infotech Financial Services
Technologies Inc.
0.38%
312.83
1.26%
108.97
0.48
Share in Total comprehensive
income
As % of
consolidated
Total
0.01%
0.00%
0.01%
0.81
0.09%
0.28
0.01%
1.09
PT Larsen & Toubro Hydrocarbon
Engineering Indonesia
Larsen & Toubro Electromech LLC
(0.09%)
(72.11)
(1.43%)
(123.69)
1.31%
4.30
(1.33%)
(119.39)
L&T Hydrocarbon International
FZE
0.48
(0.88%)
Amount
(crore)
Amount
(crore)
L&T Infra Contractors Private
Limited
I
Foreign Subsidiaries
Infrastructure:
Larsen & Toubro (Oman) LLC
0.52%
425.11
0.07%
3.70
6.11
9.25
0.17%
15.36
Larsen & Toubro Qatar LLC
(0.00%)
(0.50)
(0.00%)
(0.24)
2.81%
0.00%
L&T Capital Company Limited
2.00
Limited
0.00%
0.05
L&T Power Limited
0.01%
5.84
0.00%
0.12
0.00%
0.12
Kesun Iron and Steel Company
Private Limited
L&T Aviation Services Private
Limited
0.05%
37.13
0.02%
2.00
----
... 0.02%
(0.10%)
(0.34)
(0.01%)
(0.58)
0.00%
0.29
0.03%
0.10
0.00%
0.39
605
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [62] (contd.)
Net Assets, i.e., total assets minus
total liabilities
Share in profit or (loss)
Name of the entity
As % of
consolidated
Amount
(*crore)
net assets
As % of
consolidated
profit or loss
Share in Other comprehensive
income
As % of
consolidated
4.61
Other
comprehensive
income
0.01%
Larsen & Toubro (East Asia) Sdn.
Larsen & Toubro Saudi Arabia LLC
0.55%
455.00
0.51%
44.38
19.67%
64.78
1.21%
109.16
Larsen & Toubro T&D SA
(Proprietary) Limited
0.00%
3.73
0.00%
0.13
0.06%
0.21
0.01%
0.34
Bhd.
(2.89)
1.18%
106.08
10.29
(0.02%)
(1.48)
(0.04%)
(0.14)
(0.02%)
(1.62)
Nielsen+Partner
0.01%
Unternehmensberater AG
3.20
(0.01%)
(0.50)
0.07%
0.22
(0.00%)
(0.28)
Nielsen+Partner Pte Limited
0.00%
Unternehmensberater GmbH
Nielsen+Partner
6.01
(0.02%)
(1.39)
Syncordis Limited
(0.04%)
(24.91)
(0.08%)
(6.99)
0.12%
0.40
(0.07%)
(6.59)
Syncordis PSF S.A.
0.01%
9.03
0.07%
6.23
(0.07%)
(0.22)
0.07%
0.03%
27.43
(0.09%)
(7.95)
Total Joint Ventures
L&T Hydrocarbon Caspian LLC
0.02
0.00%
0.03
0.01%
(0.01)
(0.00%)
(0.04)
(0.00%)
Systems Kish PJSC
Indiran Engineering Projects &
Hydrocarbon:
1.80
0.02%
1.80
0.02%
2.00
0.00%
CFS adjustment and elimination
0.15
(39.30%)
487.32
(32375.77)
82407.66
0.28%
0.92
(0.08%)
(7.03)
Nielsen&Partner Company Limited
(0.00%)
(2.49)
(0.01%)
(0.80)
0.01%
0.04
608
8998.71
190.84
(2846.83)
(31.64%)
69.69
56.16
329.38
17.04%
121.15
(2902.99)
8669.33
(33.49%)
Total
0.05%
(1.54)
(0.02%)
0.07%
5.72
0.27%
0.89
0.07%
6.61
Larsen & Toubro Infotech GmbH
0.45%
366.93
(0.18%)
(15.97)
0.40%
1.32
(0.16%)
(14.65)
L&T Information Technology
Spain SL
0.00%
0.47
17.76
0.00%
0.02%
Larsen and Toubro Infotech South
Larsen & Toubro Infotech Canada
Limited
0.06%
49.32
0.13%
11.54
0.53%
1.74
0.15%
13.28
Larsen & Toubro Infotech LLC
0.01%
6.63
0.00%
0.25
0.07%
0.24
0.01%
0.49
Africa (Proprietary) Limited
Limited and LEA Associates South
0.16
(0.01)
4.22
0.03%
2.45
0.06%
0.19
0.03%
2.64
Syncordis S.A.
0.05%
42.13
0.11%
9.13
(0.24%)
(0.78)
0.09%
8.35
Syncordis France SARL
(0.01%)
(7.48)
0.01%
(0.00%)
L&T Infotech S. DE R.L. DE C.V.
0.00%
0.00%
0.15
Larsen & Toubro Infotech Norge
AS
0.01%
9.33
0.07%
5.67
0.04%
0.12
0.06%
5.79
Larsen & Toubro LLC
0.00%
2.95
0.00%
0.01
0.03%
0.10
0.11
207.34
0.04
405.17
(ii) Outstanding commodity price hedge instruments:
(A) Commodity forward contract:
10.04
8.37
10.04
Swedish Krona
112.90
20.34
112.90
115.83
20.87
115.83
Arab Emirates Dirham
86.29
86.29
86.29
63.43
84.58
63.43
EURO
1.62
8.78
1.62
Norwegian Krone
6.17
11.37
6.17
Danish Krone
1.95
4.86
Particulars
1.95
Copper (Tn) [1]
Aluminium (Tn) [1]
Lead (Tn)
(114.88)
(114.88) 587748.64
(489.40)
129.98
229.82 228503.75
(489.40) 743343.39
( crore)
(crore)
(*)
months
months
rate
After
twelve
twelve
Average
Nominal
amount
(crore)
(crore)
( crore)
months
months
Within
After
twelve
twelve
Average
rate
(₹)
amount
(*crore)
Nominal
Within
As at 31-3-2021
As at 31-3-2022
Nickel (Tn)
Iron Ore (Tn)
South African Rand
3.34
55.64
(crore)
After
twelve
months
months
months
months
twelve
Average
rate
Nominal
amount
rate
Within
After
twelve
twelve
Average
Nominal
amount
Particulars
Within
As at 31-3-2021
As at 31-3-2022
(C) Forward covers taken to hedge exchange rate risk and accounted as fair value hedge:
NOTE [59] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
Nielsen&Partner Pty Limited
(*)
(*crore)
(₹)
(* crore)
3.34
10.82
56.92
10.82
Australian Dollar
66.98
100.72
66.98
13.18
99.50
13.18
British Pound
3.48
58.01
99.84
3.48
60.69
4.55
Canadian Dollar
1444.18
73.26
1444.18
2262.85
76.32
2262.85
US Dollar
(a) Receivable hedges:
( crore)
(* crore)
(*crore)
4.55
25.25 12174.31
(0.76)
(11.71)
33.68
-
Asset Other financial assets
(a) Current:
Forward contracts
Particulars
(B) Fair value hedge:
NOTE [59] (contd.)
Notes forming part of the Consolidated Financial Statements (contd.)
Notes forming part of the Consolidated Financial Statements
Integrated Annual Report 2021-22
599
25.54
11.98
Liability Other financial liabilities
62.26
78.02
Asset Other financial assets
(b) Non-current:
9.78
11.04
Liability Other financial liabilities
20.38
36.77
Asset Other financial assets
(a) Current:
(ii) Option contracts
3.02
44.22
27.82
Liability Other financial liabilities
(m) Breakup of cash flow hedging reserve and cost of hedging reserve:
crore
As at 31-3-2022
25.25
Balance for which hedge accounting discontinued
(4.34)
284.77
(4.76)
318.08
Balance towards continuing hedges
reserve
reserve
reserve
reserve
hedging
hedging
Cost of
Liability Other financial liabilities
Cash flow
As at 31-3-2021
hedging
As at 31-3-2022
Cash flow
Particulars
crore
3.06
7.65
3.99
Commodity
price
exposure
exposure
Currency
Commodity
price
exposure
exposure
Currency
Cost of
hedging
-
As at 31-3-2021
627.16
Within
After
twelve
months
(crore)
(crore)
(₹)
(*crore)
months
rate
twelve
Average
Nominal
amount
Within
As at 31-3-2021
As at 31-3-2022
Particulars
(B) Commodity option contract:
[1] Negative nominal amount represents sell position (net).
143.04
48.19
48.19 142370.06
143.04 1030545.11
71.39
71.39 1346959.25
9.51
9.51 170723.79
33.68
7447.47
(23.49)
451.91
151245.62
11.78
After
Nominal
amount
(* crore)
Aluminium
twelve
(b) Non-current:
165.25
61.35
Average
329.79
29.18
383.79
Liability Other financial liabilities
664.20
117.38
Asset Other financial assets
(a) Current:
Commodity
price
exposure
As at 31-3-2021
Currency
exposure
Commodity
price
exposure
As at 31-3-2022
Currency
exposure
882.85
crore
twelve
months
months
(₹)
(*crore)
(crore)
rate
Asset Other financial assets
[1]
11.30
[1] The options contracts include a combination of calls and puts with different maturities and strike prices.
Carrying amounts of hedge instruments for which hedge accounting is followed:
(A) Cash flow hedge:
Particulars
(i) Forward contracts
11.30
Financial
Services
Technologies
No. Particulars
Sr.
Larsen &
L&T Infotech
82
81
Toubro
Infotech
Canada Limited
80
Larsen
78
77
70.00
Sr. No.
74.05
49.00
79
31-Mar-22
USD
and Toubro
Infotech
South Africa
(Proprietary)
31-Mar-22
EURO
100.00
31-Mar-22
EURO
Limited
31-Mar-22
ZAR
31-Mar-22
CAD
CAD
Larsen &
Toubro
Infotech LLC
31-Mar-22
Inc.
Spain SL
Technology
Information
Larsen &
Toubro
Infotech GmbH
L&T
Financial year ending on
Currency
75.00
(36.75)
% of share holding
9.72
(6.36)
Provision for taxation
9
(0.79)
(14.98)
1.79
3.02
43.32
Profit before taxation
8
32.19
720.26
18.29
Exchange rate on the last day of
3.71
70.00
1.44
Profit after taxation
15
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend preference
12
Interim dividend - equity
11
(2.23)
(14.98)
1.79
(0.69)
33.59
(30.39)
10
financial year
38.60
60.49
487.23
30.63
13.61
96.93
348.06
Total assets
5.83
5
487.23
30.63
13.61
96.93
348.06
Total equity and liabilities
5.83
6
Investments
426.70
(32.32)
7.95
0.25
16.41
149.12
Profit before taxation
8
17.89
168.52
618.54
22.25
350.30
355.74
Turnover
7
4
4.71
140.97
12.87
application money pending allotment)
Share capital (including share
1
01-Feb-16*
14-Jun-99*
25-Jul-12
21-Jul-09*
25-Apr-00
01-Jan-11
Acquisition
Date of incorporation/ Date of
84.22
84.22
5.23
75.79
151.23
60.49
0.00
1.05
6.98
47.03
30.82
Liabilities
3
0.70
345.21
17.55
6.63
49.90
166.01
applicable)
Other equity/Reserves and surplus (as
2
0.42
0.21
463.93
SAR
Turnover
72
71
Sr. No.
crore
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
73
LARSEN & TOUBRO
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
616
Statements
74
75
76
Technology
Information
Larsen &
Toubro
Electromech
Construction
General
Contracting
Hydrocarbon
Saudi Company
Yard LLC
Arabia LLC
Fabrication
Larsen Toubro
L&T
L&T Modular
Particulars
Sr.
No.
L&T
Larsen &
Toubro Kuwait
Note: Date of incorporation
Services
70.00
72.50
11.66
Profit after taxation
10
0.00
21.37
0.70
(0.32)
Provision for taxation
(11.64)
0.29
0.13
109.05
(0.32)
12.35
9
87.67
0.13
0.29
100.00
8
49.00
65.00
% of share holding
15
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend - preference
12
Interim dividend - equity
11
(11.64)
30.00
LLC
(Shanghai) Co.,
Company WLL
814.51
215.65
Liabilities
34569
(3.85)
31.91
1668.96
(40.28)
(286.52)
199.55
applicable)
Other equity/Reserves and surplus (as
2
1.26
(618.41)
17.41
275.40
11.45
Investments
8.86
313.10
26.28
1052.53
547.79
470.90
Total assets
8.86
313.10
26.28
1052.53
547.79
470.90
Total equity and liabilities
5.79
49.15
1.98
19.80
Exchange rate on the last day of
CNY
31-Dec-21
31-Dec-21
OMR
KWD
SAR
0.22
OMR
Currency
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
Financial year ending on
Ltd.
financial year
480.81
193.08
19.80
55.70
application money pending allotment)
Share capital (including share
1
28-Jun-13*
01-Jan-05
29-Nov-06*
08-Jul-07*
01-Jul-12*
05-Jul-06*
Acquisition
Date of incorporation/ Date of
11.70
193.08
245.75
19.80
9
84.22
39.39
01-Feb-19
01-Feb-19
01-Feb-19
01-Feb-19
01-Feb-19
15-Dec-17
1
Acquisition
54.04
2.24
55.10
81.46
3.67
84.22
Date of incorporation/ Date of
Share capital (including share
application money pending allotment)
3.37
3
(4.82)
(2.61)
32.47
0.64
0.48
0.13
applicable)
Other equity/Reserves and surplus (as
2
0.00
0.22
0.55
0.81
0.08
financial year
Exchange rate on the last day of
Pty Ltd
31-Dec-21
AUD
Nielsen&Partner
Sr. No.
74.05
74.05
74.05
74.05
98.76
74.05
% of share holding
15
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend - preference
12
89
Liabilities
90
92
Nielsen&Partner
Company
Limited
31-Dec-21
THB
CHF
31-Dec-21
AG
Nielsen+Partner Nielsen+Partner
Unternehmensberater Unternehmensberater Nielsen+Partner
Pte Ltd
31-Dec-21
SGD
31-Jan-22
EURO
31-Dec-21
EURO
Currency
Financial year ending on
GmbH
Syncordis PSF
S.A.
No. Particulars
Sr.
94
93
91
Interim dividend - equity
15.18
7.47
(3.40)
(0.78)
3.87
(1.14)
(0.06)
(0.19)
11
Profit after taxation
0.80
0.66
0.00
0.00
0.05
Provision for taxation
10
Interim dividend - equity
12
Interim dividend preference
74.05
15
74.05
GIII
74.05
74.05
74.05
74.05
% of share holding
15
Proposed dividend - preference
14
Proposed dividend - equity
13
-
9
(2.60)
(0.78)
4.53
0.83
18.68
Total assets
5
6.50
1.65
54.56
8.92
0.83
18.68
Total equity and liabilities
4
11.32
4.04
21.54
8.92
0.27
54.56
6.50
(1.14)
(0.06)
(0.14)
Profit before taxation
8
7.01
2.16
66.27
26.03
0.92
30.39
Turnover
7
Investments
6
1.65
Provision for taxation
11
3.59
NOK
Currency
31-Mar-22
Financial year ending on
AS
Syncordis
Limited
31-Mar-22
USD
Syncordis
France SARL
Larsen & L&T Infotech S.
Toubro LLC DE R.L. DE C.V.
Infotech Norge
86
85
84
83
Larsen &
Toubro
Syncordis S.A.
31-Dec-21
MXN
31-Dec-21
EURO
31-Dec-21
EURO
15-Dec-17
01-Mar-17*
02-Jan-01*
20-Nov-18*
Acquisition
Date of incorporation/ Date of
100.42
84.22
Profit before taxation
3.64
75.79
8.69
financial year
Exchange rate on the last day of
31-Dec-21
GBP
Particulars
No.
Sr.
Sr. No.
Interim dividend preference
12
Interim dividend - equity
11
0.22
(32.04)
5.64
0.25
12.03
109.73
Profit after taxation
10
(0.28)
2.31
4.38
13 Proposed dividend - equity
15-Dec-17
14
15
88
87
crore
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures
Integrated Annual Report 2021-22
617
Note: Date of incorporation
74.05
74.05
51.52
74.05
74.05
74.05
% of share holding
Proposed dividend - preference
(0.60)
15-Dec-17
Share capital (including share
5.90
Profit before taxation
8
44.73
31.55
173.82
0.02
50.32
118.18
Turnover
7
Investments
6
(19.81)
1.40
2.82
9.90
3.85
9.76
1.92
0.01
4.60
Profit after taxation
10
0.05
0.26
0.14
0.90
0.01
1.30
Provision for taxation
9
(0.55)
11.95
138.93
14.78
3.01
(8.10)
26.45
2.76
2.55
9.30
applicable)
Other equity/Reserves and surplus (as
2
0.01
0.13
0.47
0.00
0.40
0.03
application money pending allotment)
(19.82)
1
3
32.01
41.34
Total assets
5
(19.81)
11.95
138.93
14.78
3.01
41.34
Total equity and liabilities
4
19.92
112.01
12.02
0.06
Liabilities
8
Exchange rate on the last day of
financial year
101.45
0.03
applicable)
Other equity/Reserves and surplus (as
2
41.40
57.16
2521.12
43.50
629.52
0.05
money pending allotment)
Share capital (including share application
1
24-Sep-97*
30.05
(373.50)
121.86
(10.03)
191.65
119.83
3225.02
0.94
Total equity and liabilities
4
56.93
104.62
26.29
463.28
74.38
0.86
Liabilities
3
383.48
02-Feb-06*
151.75
23-Dec-05*
26-Feb-01*
Financial year ending on
Company Private
Aluminium
No. Particulars
Sr.
L&T
Currency
54
50
L&T
Raykal
crore
52
51
Sr. No.
53
INR
Infrastructure Panipat Elevated
Development Corridor Limited
Limited Projects Limited
31-Mar-22
31-Mar-22
INR
Vadodara
Bharuch Tollway
Limited
23-Feb-99*
Acquisition
Date of incorporation/ Date of
financial year
Exchange rate on the last day of
31-Mar-22
INR
INR
INR
INR
31-Mar-22
31-Mar-22
31-Mar-22
Limited
Transportation
Infrastructure
L&T Interstate
Road Corridor
Limited
21-Jul-05*
481.81
5
Total assets
51.00
75.50
% of share holding
15
14 Proposed dividend - preference
13 Proposed dividend - equity
51.00
Interim dividend preference
Interim dividend equity
11
28.89
0.48
110.17
(40.80)
12
51.00
51.00
63.86
L&T Samakhiali
Gandhidham
Tollway Limited
31-Mar-22
INR
Limited
31-Mar-22
INR
Exchange rate on the last day of
Currency
Financial year ending on
Ahmedabad-
Maliya Tollway
No. Particulars
Sr.
60
59
58
57
56
55
Sr. No.
(43.02)
(0.01)
Profit after taxation
10
Turnover
7
88.22
65.53
2.01
2.12
2384.68
Investments
6
481.81
151.75
191.65
119.83
3225.02
0.94
115.63
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
36.60
25.71
10.87
0.09
23.42
1.21
Provision for taxation
9
39.78
0.57
133.59
(40.80)
(41.81)
(0.01)
Profit before taxation
8
58.60
406.73
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
49
LARSEN & TOUBRO
5.57
30.00
money pending allotment)
Share capital (including share application
1
02-Sep-10*
566.60
02-Sep-10*
01-Jul-09*
05-May-95*
17-Jun-10*
Acquisition
Date of incorporation/ Date of
75.79
05-Apr-17*
1.00
0.01
158.85
265.22
2924.05
35.87
186.05
Liabilities
3
161.21
0.49
65.03
(2988.87)
69.30
122.07
applicable)
Other equity/Reserves and surplus (as
2
financial year
Exchange rate on the last day of
Currency
31-Mar-22
USD
L&T MBDA
Forgings Private
Steels and Heavy
Limited
L&T-Sargent &
Lundy Limited
L&T Howden
Private Limited
No. Particulars
Sr.
44
8
43
95.00
99.99
Sr. No.
% of share holding
Missile Systems Offshore Private Shipping Private
Limited
6.01
100.00
51.00
31-Mar-22
INR
31-Mar-22
INR
Limited
31-Mar-22
INR
31-Mar-22
INR
31-Mar-22
INR
Financial year ending on
Limited
L&T Sapura
L&T Sapura
L&T Special
48
47
46
45
51.00
100.00
L&T Deccan
Tollways Limited
31-Mar-22
INR
466.25
Total equity and liabilities
12
(6.00)
(6.75)
Interim dividend equity
11
(107.69)
Interim dividend preference
0.01
(183.94)
18.71
28.14
Profit after taxation
10
0.13
51.65
13 Proposed dividend - equity
14 Proposed dividend - preference
15
Statements
Statutory Financial
Reports
Discussion and Analysis Report
Integrated
Management
Corporate
Overview
614
Note: Date of incorporation
60.00
60.00
51.00
74.00
50.00
50.10
% of share holding
(0.00)
2.74
2.70
9.64
6
786.31
6.51
331.25
501.78
110.74
338.12
Total assets
5
786.31
6.51
331.25
501.78
110.74
338.12
Investments
4
65.92
Turnover
Provision for taxation
9
(107.56)
0.00
54.39
(183.94)
21.42
37.79
Profit before taxation
8
0.70
147.03
263.11
102.08
293.77
7
5.82
INR
PNG Tollway
65
Sr. No.
51.00
51.00
51.00
51.00
66
% of share holding
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend preference
12
15
67
68
69
(Proprietary)
Toubro Saudi
Toubro T&D SA
Larsen &
Larsen &
Larsen &
Toubro Qatar
LLC
Larsen &
Toubro (Oman)
LLC
Currency
Financial year ending on
Particulars
No.
Sr.
Larsen &
Larsen &
70
Interim dividend equity
Arabia LLC
11
(0.01)
38.30
0.01
318.47
809.22
104.55
(0.01)
749.68
(6.22)
13.95
0.01
42.00
110.00
20-May-99*
18-Nov-21
(169.54)
354.25
0.01
749.68
(0.31)
110.90
25.38
0.21
101.35
(0.01)
(0.10)
110.90
26.45
0.00
112.53
1.43
156.80
0.01
354.25
75.97
Toubro (East
Asia) Sdn.Bhd.
Toubro Heavy
Engineering
0.14
2619.23
Total equity and liabilities
4
107.93
75.83
2273.99
0.39
1.40
2129.47
Liabilities
3
(160.20)
3.75
1898.81
4.12
80.44
57.11
2230.13
(0.32)
1426.96
Turnover
7
Investments
6
57.11
80.44
4.12
2273.99
0.14
2619.23
Total assets
5
(0.19)
346.72
(1.67)
461.63
Date of incorporation/ Date of
193.08
18.03
5.23
19.80
20.41
193.08
31-Dec-21
OMR
31-Mar-22
MYR
ZAR
LLC
Limited
31-Mar-22
31-Dec-21
SAR
31-Dec-21
QAR
31-Dec-21
OMR
Acquisition
24-Mar-08*
29-Jan-94*
22-Jun-99*
applicable)
Other equity/Reserves and surplus (as
2
109.38
0.86
3.92
28.46
0.41
28.13
application money pending allotment)
Share capital (including share
1
07-Apr-08*
13-Jun-96*
06-Sep-10*
31-Mar-04*
08-Sep-08*
31-Mar-22
INR
LT IDPL INDVIT
Services Limited
993.29
2063.70
1886.74
1526.16
1289.01
Total assets
0.89
5
993.29
2063.70
1886.74
1526.16
1289.01
Total equity and liabilities
0.89
6
Investments
70.52
(17.40)
Profit before taxation
8
0.01
163.85
242.49
191.54
199.25
227.19
Turnover
7
0.34
48.44
152.34
73.01
4
0.01
890.63
1494.48
149.00
money pending allotment)
Share capital (including share application
1
16-Feb-09*
18-Oct-13*
30-Aug-13
20-Dec-11*
05-Feb-10*
09-Sep-08*
Acquisition
Date of incorporation/ Date of
financial year
31-Mar-22
INR
Limited
80.54
(127.53)
285.34
290.03
2285.15
2006.89
1230.30
Liabilities
3
(168.22)
(187.37)
376.62
(683.75)
(561.27)
(90.29)
applicable)
Other equity/Reserves and surplus (as
2
169.10
192.60
Kudgi L&T Sambalpur-
Transmission Rourkela Tollway
Limited
Limited
31-Mar-22
31-Mar-22
INR
(138.76)
(24.70)
Total equity and liabilities
4
Liabilities
3
Other equity/Reserves and surplus (as
applicable)
5
money pending allotment)
Share capital (including share application
1
Date of incorporation/ Date of Acquisition
Exchange rate on the last day of financial year
Currency
Financial year ending on
2
Total assets
6
Investments
64
63
Watrak
Infrastructure
Private Limited
31-Mar-22
INR
L&T Chennai-
Tada Tollway
Limited
31-Mar-22
INR
31-Mar-22
INR
Limited
62
crore
Profit after taxation
10
Provision for taxation
9
Profit before taxation
8
Turnover
7
L&T Rajkot-
Vadinar Tollway
61
Sr. No.
No. Particulars
12
Interim dividend equity
11
167.21
(24.70)
95.06
(138.79)
(127.53)
(17.40)
Profit after taxation
10
0.03
Provision for taxation
9
167.21
Interim dividend preference
95.06
13 Proposed dividend - equity
Proposed dividend - preference
Sr.
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures
Integrated Annual Report 2021-22
615
Note: Date of incorporation
37.74
51.00
51.00
52.89
51.01
51.00
% of share holding
15
14
156.80
Note: Date of incorporation
9
27-Dec-13
16-Jun-11*
30-Apr-96*
Acquisition
Date of incorporation/ Date of
INR
INR
31-Mar-22
31-Mar-22
31-Mar-22
INR
31-Mar-22
INR
INR
INR
31-Dec-12*
31-Mar-22
financial year
Exchange rate on the last day of
Currency
Financial year ending on
Limited
Hydropower
(Hyderabad)
Limited
Limited
L&T Finance
Limited
Mudit Cement
Private Limited
L&T Mutual Fund
Trustee Limited
No. Particulars
L&T Arunachal
31-Mar-22
24-Aug-10*
24-Jun-10*
1
429.23
1.03
Total equity and liabilities
4
0.18
19027.47
79680.45
0.11
184.08
0.07
Liabilities
3
(40.54)
(4108.37)
13807.21
(61.82)
226.40
0.81
applicable)
Other equity/Reserves and surplus (as
2
40.39
2439.00
2684.17
84.10
18.75
0.15
money pending allotment)
Share capital (including share application
L&T Metro Rail
L&T Financial
Sr.
24
1.20
6.89
36.25
(0.08)
Provision for taxation
9
203.33
0.01
4.78
11.00
254.43
(0.21)
Profit before taxation
8
390.68
0.03
6.50
728.93
350.46
43.08
Turnover
7
547.85
0.00
20.66
2508.07
9202.12
0.01
Investments
51.95
22.39
10
(0.13)
23
22
21
20
19
Sr. No.
66.26
66.26
66.26
66.26
66.26
74.05
% of share holding
15
Proposed dividend - preference
14
(81.96)
Proposed dividend - equity
13
Interim dividend preference
12
(251.82)
Interim dividend equity
11
151.38
0.01
3.58
4.11
218.18
Profit after taxation
96171.83
17358.10
0.03
31-Mar-22
INR
31-Mar-22
INR
INR
INR
Currency
31-Mar-22
31-Mar-22
Financial year ending on
L&T Realty
Developers
29
L&T Parel Project
Private Limited
Chennai Vision
Developers
Private Limited
Nabha Power
Limited
Development
Limited
Limited
Hydropower
No. Particulars
L&T Power
L&T Himachal
Sr.
28
27
26
25
Sr. No.
30
crore
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
31-Mar-22
INR
LARSEN & TOUBRO
Limited
31-Mar-22
Exchange rate on the last day of
Liabilities
3
112.13
206.59
(0.04)
1553.60
(604.11)
(201.14)
applicable)
Other equity/Reserves and surplus (as
2
815.46
0.01
0.01
2397.60
3112.70
200.55
money pending allotment)
Share capital (including share application
1
29-Jul-97
25-01-22*
14-Aug-08*
09-Apr-07*
12-Sep-07*
22-Jun-10*
Acquisition
Date of incorporation/ Date of
financial year
INR
6
Statements
Discussion and Analysis Report
Provision for taxation
9
0.08
(1746.21)
1091.87
(6.26)
113.06
0.04
Profit before taxation
8
456.87
11057.58
159.45
0.07
Turnover
7
9303.95
26.88
0.67
Investments
6
0.03
17358.10
96171.83
22.39
429.23
1.03
Total assets
5
45.39
Statutory Financial
Reports
283.89
10
Integrated
Management
Corporate
Overview
612
Note: Date of incorporation
100.00
81
100.00
66.26
66.26
66.26
6
66.26
% of share holding
15
Proposed dividend - preference
14
13 Proposed dividend - equity
Interim dividend preference
12
Interim dividend equity
11
0.08
(1745.85)
807.98
(6.26)
67.67
0.04
Profit after taxation
(0.36)
626.56
0.09
22.09
Share capital (including share application
1
25-Oct-19
29-Aug-19
31-May-17
15-Oct-18
15-Oct-18
15-Feb-14
Acquisition
Date of incorporation/ Date of
financial year
31-Mar-22
INR
Powerup Cloud
Technologies
Private Limited
31-Mar-22
INR
Technologies Lymbyc Solutions
India Private Private Limited
Limited
31-Mar-22
INR
31-Mar-22
INR
INR
Seastar Labs
Private Limited
Services Private
Limited
31-Mar-22
Semiconductor
Esencia
Graphene
L&T Thales
Technology
Services Private
Limited
31-Mar-22
INR
Exchange rate on the last day of
Currency
Financial year ending on
No. Particulars
Sr.
12
money pending allotment)
11
2.06
0.05
5
8.60
3.47
0.60
0.20
11.15
75.17
Total equity and liabilities
4
2.12
2.95
0.01
0.14
0.17
23.67
Liabilities
3
6.46
(0.63)
0.58
0.01
9.55
49.44
applicable)
Other equity/Reserves and surplus (as
2
0.02
1.15
0.01
1.43
Total assets
10
8
332.29
749.54
1.01
22.03
Provision for taxation
2210.60
1250.84
3010.47
3.06
70.39
(1.33)
Profit before taxation
8
10525.29
5873.68
14406.43
84.72
1211.52
48.55
Turnover
7
2552.30
Investments
11.53
0.00
0.09
4142.80
1647.37
618
557.80
9
10
(1.33)
7
Sr. No.
60.99
73.90
74.05
100.00
100.00
100.00
% of share holding
15
Proposed dividend - preference
14
(271.42)
(116.98)
(389.35)
Proposed dividend - equity
13
Interim dividend preference
12
(164.81)
(210.95)
(437.88)
Interim dividend equity
11
1652.80
918.55
2260.93
2.06
48.36
Profit after taxation
0.64
75.17
0.20
490.18
2474.04
0.01
money pending allotment)
Share capital (including share application
1
25-Apr-96*
12-Aug-11*
30-May-11*
19-Mar-13*
01-May-08*
07-Jul-21
Acquisition
Date of incorporation/ Date of
financial year
INR
31-Mar-22
31-Mar-22
INR
Management
Limited
Investment
Partners Trustee
Private Limited
L&T Investment
L&T Infra
L&T Infra
Investment
Partners
Advisory Private
Limited
31-Mar-22
INR
31-Mar-22
INR
31-Mar-22
INR
31-Mar-22
INR
L&T Finance L&T Infra Credit
Holdings Limited
Limited
Cuelogic
Technologies
Private Limited
17
5.00
16
0.10
2
9191.07
11424.02
29.06
Total assets
5
626.56
0.09
22.09
9191.07
11424.02
29.06
Total equity and liabilities
4
84.99
0.01
0.57
7850.69
152.89
15.43
Liabilities
3
289.75
(0.02)
16.52
850.20
8797.09
13.62
applicable)
Other equity/Reserves and surplus (as
251.82
11.15
15
13
13.50
Profit after taxation
10
0.00
0.37
0.08
4.70
Provision for taxation
9
1.98
(1.79)
(0.01)
(0.05)
0.22
18.20
Profit before taxation
8
9.75
91.91
Turnover
7
0.56
10.66
27.51
Investments
6
8.60
3.47
0.60
0.14
14
(0.05)
(2.16)
18
crore
Exchange rate on the last day of
Currency
Financial year ending on
Sr. No.
No. Particulars
Sr.
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures
Integrated Annual Report 2021-22
611
Note: Date of incorporation
74.05
74.05
73.90
73.90
73.90
54.69
% of share holding
15
14 Proposed dividend - preference
13 Proposed dividend - equity
Interim dividend preference
12
Interim dividend equity
11
1.97
(0.01)
3.82
Consultants
0.03
91.20
1378.83
104.41
11703.30
5708.30
8156.80
5
Total assets
91.20
1378.83
104.41
11703.30
Total equity and liabilities
5708.30
6
15
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend preference
12
(234.10)
(1.50)
Interim dividend equity
11
8156.80
9.85
4
1726.69
14-Jun-12*
02-Jul-19
1
Share capital (including share application
money pending allotment)
0.05
25.00
3.60
17.53
21.11
164.83
2
2683.37
Other equity/Reserves and surplus (as
(1.39)
262.61
43.93
8385.34
3960.50
5308.60
3
Liabilities
92.54
1091.22
56.88
3300.43
applicable)
241.02
0.00
2.00
5.89
Total assets
5
1693.62
3450.41
3.83
39.38
5.89
Total equity and liabilities
4
1308.44
1715.27
39.38
0.13
0.05
Liabilities
3
(325.42)
1501.04
3.65
(8.47)
(0.01)
5.79
applicable)
Other equity/Reserves and surplus (as
2
2.25
3.83
3450.41
1693.62
0.12
Profit after taxation
10
83.34
0.00
0.69
0.05
Provision for taxation
9
9.85
324.36
0.00
2.69
0.17
Profit before taxation
8
607.55
2310.60
20.08
Turnover
7
61.63
98.08
0.00
6.11
Investments
6
23-Dec-96*
09-Dec-98*
25-Nov-20*
01-Jan-08*
Accounts Payable
ΝΑ
Balance
outstanding as at
March 31, 2022
- [1]
Balance
outstanding as at
March 31, 2021
[1]
2
Avn Green Technologies Private
Limited
Accounts Payable
NA
- [1]
-[1]
Walls Infra Solution Private Limited
3 4 5
Accounts Payable
ΝΑ
0.01
0.01
Accounts Payable
NA
- [1]
-[1]
Shares held by struck off
company
NA
- [1]
[1]
Alert Infraprojects Private Limited
IS Earth Movers Private Limited
Victor Properties Private Limited
1
company
6025.91
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63]
(a) Notes with respect to remarks in CARO Report:
(i) The Parent Company renewed the loan of 24.66 crore to Hi-Tech Rock Product & Aggregates Limited, a subsidiary, as its business
was affected majorly due to an inverted duty structure. The subsidiary company has initiated measures to become more cost
competitive including redressal of the inverted duty structure through various forums.
(ii) The Parent Company renewed the loan of 168.48 crore to L&T Sapura Shipping Private Limited, a joint venture, as the vessel
owned by it was under major repairs since its accident in March 2020 and the joint venture company was unable to generate
revenue. The vessel is expected to be re-commissioned in 2022-23. The payment of interest of 3.50 crore on the Parent
Company's bridge loan, for repairs of the vessel, is overdue and would be settled out of insurance claim proceeds.
(iii) The payment of interest of 35.83 crore on the loan given by L&T Seawoods Limited, a subsidiary, to Asian Realty Projects LLP,
another subsidiary, is overdue. The loan would be repaid from the proceeds of the sale of inventory i.e. residential flats. Due to the
sub-optimal bookings in the project, the borrower company could not service interest on the loan. The subsidiary companies have
taken reasonable steps for regularisation of the account.
(iv) L&T Chennai Tada Tollway Limited, a subsidiary and SPV of L&T Infrastructure Development Projects Limited, a joint venture, has not
repaid the loan of 265.22 crore to banks as the company is yet to receive the dues on termination of the project as below:
(a) Under the Concession agreement, NHAI was to arrange land for conversion of 66 km of 4 lane-road to 6 lanes. The SPV could
construct 42 km and remaining 24 km could not be completed as NHAI could not make land available. Due to default by NHAI
on this condition, the SPV terminated the project in 2015 and claimed the termination dues as per the concession agreement.
(b) Pending settlement of the termination dues, SPV approached the Hon'ble Delhi High Court and obtained the directions for
NHAI to deposit toll collections from the project in the SPV's escrow account till the arbitration award.
(c) The favourable arbitration award for determination and settlement of termination dues was received in 2019. NHAI, which
hitherto was depositing the toll collections in the escrow account, discontinued the same w.e.f. November 8, 2020 and also
appealed against the award with High Court of Delhi.
(d) With toll collections not available, the SPV could not service the interest payment. The lenders filed an application before the
Debt Recovery Tribunal (DRT), Chennai seeking direction to issue recovery certificate against the SPV. As per the DRT order
dated April 13, 2022, the SPV was asked to deposit 70.00 crore in two instalments which are not due yet.
(e) The SPV has sought remedy to link the debt servicing with the receipt of termination dues from NHAI.
(v) L&T Special Steels and Heavy Forgings Private Limited (LTSSHF), a joint venture, owes a loan of 1871.61 crore to L&T. The loan falls
due in 2022-23. LTSSHF has estimated a cash shortfall to fulfil the repayment obligation and is, in discussion with its promoters,
exploring options to restructure its balance sheet.
609
Integrated Annual Report 2021-22
Notes forming part of the Consolidated Financial Statements
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
(b) Balance outstanding with struck off companies:
crore
Sr.
No.
Name of struck off company
Nature of transaction
6
710.60
Kothari Intergroup Limited
ΝΑ
crore
5
6
Sr.
No. Particulars
L&T
Products and
Aggregates
Limited
Geostructure
Private Limited
Financial year ending on
31-Mar-22
31-Mar-22
4
Infrastructure Larsen & Toubro
Engineering Infotech Limited
Limited
31-Mar-22
Mindtree Limited
Currency
INR
INR
INR
31-Mar-22
INR
31-Mar-22
INR
31-Mar-22
INR
Exchange rate on the last day of
financial year
Date of incorporation/ Date of
Acquisition
L&T Technology
Services Limited
3
L&T
Hi-Tech Rock
2
_ [1]
[1]
7
Inmech Engineering Private
Limited
Loan given to struck off
company by subsidiary
NA
- [1]
-[1]
[1] Less than 1 Lakhs
NOTE [64]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2022.
NOTE [65]
a.
For better understanding of the Group's financial performance, line items have been added to show Profit after tax from continuing
operations separately from exceptional items. This is in line with guidance available in Schedule III to the Act.
b. Figures for the previous year have been regrouped/re-classified to conform to the figures of the current year.
610
Corporate
Overview
Management
Integrated
Discussion and Analysis Report
Statutory Financial
Reports
Statements
LARSEN & TOUBRO
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013]
Sr. No.
1
Shares held by struck off
company
234.10
Relationship with
the struck off
45.60
L&T Valves
Limited
Equipment
Limited
(Chennai)
Campus
L&T Seawoods
Limited
Limited
LTR SSM Private
L&T Construction
No. Particulars
Sr.
L&T Innovation
36
Bhilai Power
Supply Company
Limited
35
33
32
31
Sr. No.
100.00
100.00
100.00
100.00
100.00
100.00
% of share holding
15
34
Financial year ending on
31-Mar-22
Currency
Other equity/Reserves and surplus (as
2
0.05
11-Jul-95*
18.00
199.14
7.44
1846.20
0.10
money pending allotment)
Share capital (including share application
1
23-Nov-61*
18-Dec-18*
12-Dec-07*
13-Mar-08*
24-Sep-18*
Acquisition
Date of incorporation/ Date of
financial year
Exchange rate on the last day of
31-Mar-22
INR
31-Mar-22
INR
31-Mar-22
INR
Limited
31-Mar-22
INR
31-Mar-22
INR
INR
Proposed dividend - preference
applicable)
14
(51.86)
Turnover
7
344.75
4.16
0.00
2508.58
Investments
6
1437.69
643.87
0.00
2512.41
2.25
0.05
5
1437.69
643.87
0.00
9977.11
2512.41
0.05
Total equity and liabilities
4
510.10
437.27
0.05
Total assets
4128.88
345.40
373.42
Interim dividend preference
12
(50.15)
Interim dividend - equity
11
146.38
59.82
(0.01)
301.82
218.93
2.43
Profit after taxation
10
26.66
32.72
2.86
0.00
Provision for taxation
9
173.04
92.53
(0.01)
301.82
221.79
2.43
Profit before taxation
8
13 Proposed dividend - equity
(0.10)
9977.11
(9.76)
L&T Power
42
41
38
37
INR
Currency
31-Mar-22
Financial year ending on
No. Particulars
Sr.
crore
Limited
40
Sr. No.
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures
Integrated Annual Report 2021-22
613
Note: Date of incorporation
99.90
100.00
100.00
18
100.00
39
811
Kesun Iron and
Steel Company
Private Limited
L&T Capital L&T - MHI Power
Company
0.01
955.14
0.05
money pending allotment)
Share capital (including share application
1
27-Dec-06*
09-Oct-06*
06-Apr-00*
16-Jan-09*
09-Mar-06*
Acquisition
L&T Aviation
Services Private
Limited
Date of incorporation/ Date of
Exchange rate on the last day of
31-Mar-22
INR
31-Mar-22
INR
INR
31-Mar-22
31-Mar-22
INR
INR
31-Mar-22
Private Limited
L&T - MHI
Power Turbine
Generators
Boilers Private
Limited
Limited
financial year
100.00
06-Nov-09*
% of share holding
8.43
541.87
Investments
6
1.11
987.45
369.81
15.85
3599.23
Total assets
5
1.11
987.45
369.81
15.85
3599.23
Total equity and liabilities
4
1.06
503.01
18.17
797.89
Liabilities
3
5.24
99.00
466.44
7
Turnover
165.43
402.41
48.14
13 Proposed dividend - equity
Interim dividend preference
12
14 Proposed dividend - preference
11
14.10
11.45
15
(0.59)
53.34
Profit after taxation
10
Interim dividend equity
85.32
8
5.73
Profit before taxation
(0.12)
11.76
19.84
971.97
Provision for taxation
31.98
0.48
0.31
9
4,40,58,020
5,000
(3.75)
90,00,000
Total No of shares
(0.85)
31-Mar-22
1.10
12.72
(8.09)
0.22
0.24
87.35
Reserves closing
0.78
0.21
0.41
10.12
44.06
9.00
Total share capital (crore)
0.39
44.73
200
50.00%
24,000
48.18
12.65
latest audited balance sheet (crore)
4.42
Net worth attributable to shareholding as per
6
Refer Note 3
consolidated
Reason why the associate/joint venture is not
5
Refer Note 1
Description of how there is significant influence
4
50.00%
39.28%
42.85%
50.00%
49.00%
14.25%
50.00%
Extent of holding % (Effective)
Refer Note 3
1,750
21,003
0.18
2
9.83
Industries
Limited
Systems Kish
PJSC
Limited
Projects and
Leather
Engineering
Engineering
Solutions
Private
Limited
Contracting
Co. WLL
31-Dec-21
31-Dec-21
31-Mar-21
31-Mar-22
Latest audited balance sheet date
1
Limited [1]
Private
Facilities LLC
Limited
Private
Qatar & HBK
3.12
L&T Camp
Magtorq
31-Mar-22
4.96
31-Mar-22 Refer Note 2
was associated or acquired
4.50
venture (crore)
Amount of investment in associates/joint
7,35,000
875
22,000
9,000
100
2,450
98,30,000
45,00,000
Number
company at the year end
Shares of associate/joint ventures held by the
3
27-Jun-91
31-Oct-09
02-Aug-10
02-Aug-10
28-Jul-04
13-Sep-07
11-Feb-05
26-Oct-94
Date on which the associate or joint venture
(3.84)
Are you satisfied with the growth strategy of the Company?
Yes
0.53
Please rate the hospitality and efficiency of the persons attending to you when
-the Registrar
-the Company
No
No
No
은은은
Timeliness of response form
- by Registrar
H.
G.
- by Company
Quality and accuracy of response to your queries and complaints:
F.
Please rate the contents and quality of Integrated Annual Report
Please rate the contents and quality of the website of the Company
Arrangements related to last year E-AGM
E.
ח ד.
D.
C.
Not aware
No
Yes
Yes
you interact with
Yes
- Investors Relation Cell
Overall quality of service provided by
India
Toubro
stamp
necessary
if posted in
No Postage
BUSINESS REPLY LETTER
paid by
addresssee
will be
Postage
Fold here
Fold here
Fold here.
Signature
Not
experienced
Good Poor*
Excellent
No
Yes
Do you have any grievance which has not been redressed
J.
Kindly let us know your experience in space provided overleaf
- the Registrar
- the Company
I.
- Office of Registrars
5.54
B.
Long Term or
M. M. CHITALE
Independent Director
Company Secretary & Compliance Officer
Membership No. FCS3939
SIVARAM NAIR A
Whole-time Director & Chief Financial Officer
(DIN 00019798)
R. SHANKAR RAMAN
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
622
3. The associate company is under liquidation process and investment is fully provided in the accounts.
2. The Incorporated joint venture is not required to be audited as per regulatory laws in Iran. Hence the management certified accounts have been considered for
consolidation.
1. Significant influence is demonstrated by holding 20% or more of the total voting power, or control of or participation in business decisions under an agreement of
the investee.
Notes:
[1] The company is associate of a subsidiary company under Companies Act, 2013.
Not considered in consolidation
(0.02)
0.10
1.80
(3.34)
15.77
(12.79)
Considered in consolidation
Profit/(Loss) for the year (crore)
7
(0.04)
(DIN 00101004)
(iii) Both
Mumbai, May 12, 2022
Fold here
(ii)
Short Term
(i)
A.
Do you perceive the Company as creating shareholder value in the:
Shareholders Satisfaction Survey Questionnaire
(please the appropriate box)
Folio No./DP ID & Client ID
E-mail ID:
Phone No: (with STD code)
Name and address of the shareholder
SHAREHOLDER'S FEEDBACK FORM
M. No. F3939
Company Secretary
Sivaram Nair A
For LARSEN & TOUBRO LIMITED
Yours faithfully,
Thanking you,
We are privileged to have you as our shareholder. It has been our constant endeavour to improve the services to our Investors
and in this pursuit, we are once again sending you this Feedback Form, which is a self addressed prepaid Inland letter. We
request you to kindly spare some time and return the same to us duly completed. We look forward to your feedback/valuable
suggestions.
Date: 11th July 2022
Dear Shareholder,
Regd. Office L&T House, Ballard Estate, Mumbai 400 001.
Tel. No.: (022) 6752 5656, Fax No.: (022) 6752 5858
Email: IGRC@Larsentoubro.com, Website: www.larsentoubro.com
CIN L99999MH1946PLC004768
LARSEN & TOUBRO LIMITED
Fold here
Seaports
(Haldia)
Financial year ending on
No. Name of associates/joint ventures
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend - preference
12
Interim dividend - equity
11
42.35
0.82
(3.33)
(1.01)
Profit after taxation
10
1.78
0.25
(0.83)
Provision for taxation
9
44.13
1.07
(4.17)
(1.01)
15
Profit before taxation
% of share holding
100.00
MYR
18.03
02-Jul-19
CNY
11.96
02-Jul-19
24-Feb-16*
Date of incorporation/ Date of Acquisition
USD
75.79
Exchange rate on the last day of financial year
Currency
31-Mar-22
31-Mar-22
31-Mar-22
Ltd
Bluefin
Solutions Sdn
Bhd
113
112
Mindtree
Software
(Shanghai) Co.
Holdings
Limited
L&T Global
Particulars
No.
Sr.
111
Sr. No.
100.00
100.00
73.90
1
8
30.44
(0.92)
(7.12)
(1.61)
1111.83
273.43
3
Liabilities
7.91
11.68
21.17
708.79
4
Total equity and liabilities
7.03
9.61
23.35
1111.83
5
Total assets
7.03
9.61
23.35
B. R. PERMIT No.: MBI GPO - 0049
Other equity/Reserves and surplus (as applicable)
146.52
2
3.79
1.36
6.46
Turnover
7
84.41
Investments
6
31-Mar-22
Currency
CAD
Exchange rate on the last day of financial year
60.49
SAR
20.20
USD
75.79
Date of incorporation/ Date of Acquisition
20-Aug-19*
30-May-19*
28-May-19*
USD
75.79
25-Sep-01*
1
Share capital (including share application money pending allotment)
0.04
5.05
129.61
L&T-Chiyoda
Share capital (including share application money pending allotment)
1.36
L&T Uttaranchal Hydropower Limited
b)
L&T Vision Ventures Limited
a)
(2) Sold:
d) L&T Hydrocarbon Engineering Limited (Merged with Larsen & Toubro Limited)
Esencia Technologies Inc. (Merged with L&T Technology Services LLC)
b) Syncordis Software Services India Private Limited (Merged with Larsen & Toubro Infotech Limited)
Ruletronics Systems Private Limited (Merged with Larsen & Toubro Infotech Limited)
a)
Names of subsidiaries which have been merged/sold/dissolved/struck-off.
(1) Merged:
B)
L&T Hydrocarbon Caspian LLC
b)
a) PT Larsen & Toubro Hydrocarbon Engineering Indonesia
A) Names of subsidiaries which are yet to commence operations:
Notes:
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Discussion and Analysis Report
(3) Liquidated/Dissolved/struck-off/ceased:
Integrated
a)
b) L&T Hydrocarbon International FZE
Sr.
Gujarat
Indiran
Magtorq
Larsen &
International
8
7
6
5
4
3
2
1
Sr. No.
Part B: "Associates/Joint ventures"
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures
Integrated Annual Report 2021-22
621
L&T Halol-Shamlaji Tollway Limited
L&T Infra Contractors Private Limited
d)
Thalest Limited
60.63
Management
620
600.82
Investments
6
0.34
1.97
601.58
Total assets
5
0.34
1.97
601.58
Total equity and liabilities
4
0.17
0.15
0.04
Liabilities
3
0.46
540.91
Other equity/Reserves and surplus (as applicable)
2
0.17
7
Corporate
Overview
Turnover
8
Note: * Date of incorporation
60.99
60.99
100.00
% of share holding
15
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend preference
12
Interim dividend - equity
11
0.09
0.09
Profit after taxation
10
Provision for taxation
9
0.09
0.09
Profit before taxation
0.47
Mumbai G.P.O.
Management
31-Mar-22
80.96
5.52
0.80
0.17
2.69
486.20
Total equity and liabilities
65.77
2.73
0.55
0.04
2.16
176.49
Liabilities
345
5
(36.10)
Total assets
2.69
Profit before taxation
8
167.66
3.07
0.58
665.58
Turnover
7
101.61
Investments
6
80.96
5.52
0.80
0.17
486.20
66.19
(1.06)
(0.04)
26-Jun-14*
Acquisition
Date of incorporation/ Date of
75.79
11.70
2.70
18.03
55.97
75.79
Exchange rate on the last day of
financial year
USD
31-Mar-22
31-Dec-21
CNY
31-Dec-21
TWD
MYR
15-Oct-18
(1.09)
15-Oct-18
06-Aug-19*
0.23
112.57
applicable)
Other equity/Reserves and surplus (as
2
51.29
3.85
1.34
0.17
0.30
197.14
application money pending allotment)
Share capital (including share
1
02-Oct-20
15-Oct-18
(0.13)
(0.02)
(0.06)
(Canada) Ltd
Larsen &
Toubro
International
L&T Valves
USA LLC
L&T Valves
Arabia
Manufacturing
Services
Technology
Particulars
No.
Sr.
L&T
110
109
108
107
Sr. No.
LLC
crore
FZE
For details of recent awards, please visit www.Larsentoubro.com
Mumbai - 400 001.
Larsen & Toubro Limited
Secretarial Department
L&T House, Ballard Estate,
Mumbai - 400 001.
Second Fold
First Fold
* In case your response to any question overleaf is "Poor", kindly share your experience and let us know the reason/
instances to enable us to investigate the matter.
In case of any queries, kindly contact our Registrar:
KFin Technologies Limited
Unit: Larsen & Toubro Limited
Selenium Tower B, Plot number 31 & 32, Financial District Gachibowli, Nanakramguda, Hyderabad, Telangana - 500 032
Tel: (040) 6716 2222 ⚫ Toll free number: 1-800-3094-001 Email: einward.ris@kfintech.com
->
Fold here
AWARDS & RECOGNITION
Every year, L&T and its people receive a number of national and international awards that
acknowledge its varied accomplishments. Presented by the media, industry associations,
independent bodies and academia, they honour the Company's contribution in various spheres
of business, technology, financial performance, growth and environmental protection.
Financial year ending on
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures
(6.34)
1.22
(0.06)
(0.02)
(0.13)
43.46
Profit after taxation
10
0.02
0.01
22.74
Provision for taxation
9
(6.32)
1.23
11
Interim dividend equity
12
Interim dividend - preference
Integrated Annual Report 2021-22
619
Note: Date of incorporation
73.90
73.90
73.90
73.90
31-Mar-22
73.90
% of share holding
15
Proposed dividend - preference
14
Proposed dividend - equity
13
Corporate
Overview
73.90
USD
31-Mar-22
SGD
31-Mar-22
3.84
0.01
0.00
application money pending allotment)
Share capital (including share
1
07-Jul-21
29-Aug-19
25-Nov-20*
17-Aug-20*
01-Feb-19
31-Mar-22
01-Feb-19
Acquisition
Date of incorporation/ Date of
0.70
75.79
0.01
Other equity/Reserves and surplus (as
4
3.91
0.45
293.58
76.00
0.06
Liabilities
3
0.92
(1.15)
18.26
13.74
1.03
(0.00)
applicable)
2
75.79
20.64
99.46
Ruletronics
Systems Inc.
Limited
No. Particulars
Ruletronics
Sr.
96
95
Sr. No.
crore
Part A: "Subsidiaries" [as per Section 2(87) of the Companies Act, 2013] (contd.)
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
LARSEN & TOUBRO
Statements
Statutory Financial
Reports
Integrated
Discussion and Analysis Report
Financial year ending on
28-Feb-22
Currency
GBP
74.34
100.70
financial year
Exchange rate on the last day of
31-Mar-22
USD
31-Mar-22
USD
31-Mar-22
AED
Total equity and liabilities
Inc.
Lymbyc
Solutions Inc.
LTI Middle
East FZ-LLC
100
99
98
97
Larsen &
Toubro
Infotech UK
Limited
31-Mar-22
GBP
31-Dec-21
USD
Cuelogic
Technologies
Currency
1.09
315.68
74.05
74.05
74.05
74.05
74.05
74.05
% of share holding
15
Proposed dividend - preference
14
Proposed dividend - equity
13
Interim dividend preference
12
Interim dividend - equity
Sr. No.
89.75
101
103
Financial year ending on
Ltd
Inc.
Orchestra
Technology,
Technology
Services
(Shanghai) Co.
Graphene Graphene
Solutions SDN.
Solutions
BHD. Taiwan Limited
Graphene
Solutions PTE
Ltd.
Services LLC
L&T
Technology
No. Particulars
Sr.
L&T
106
105
104
102
0.68
11
19.51
369.36
336.48
10.77
1.83
Turnover
7
Investments
6
4.84
315.68
89.75
1.09
Total assets
5
4.84
(0.00)
10.79
| | |
Profit before taxation
13.57
(0.59)
(0.20)
Profit after taxation
10
0.29
8
0.02
3.32
9
0.97
(0.00)
19.51
16.89
(0.58)
(0.20)
Provision for taxation
Discussion and Analysis
Corporate
Overview
Management
Statutory
Financial
LARSEN & TOUBRO
Business Environment
The global economic recovery faced significant headwinds
with new variants of COVID-19 and geopolitical situations
causing supply-chain and logistics disruptions and steep
escalation in input costs, which in turn resulted in deferred
business opportunities. Overall, the business was successful in
navigating the industry-wide domestic and global challenges
through organisation excellence initiatives. The business
succeeded in reaching out to new customers and making
inroads in new territories like Turkey, Poland, and Uzbekistan.
The business continues to face foreign competition in
domestic projects. To have a level playing field, it is proactively
working through industry associations to influence the
concerned ministries to mitigate the risks associated with the
inconsistencies in the implementation of public procurement
under 'Atmanirbhar Bharat' and also to ease / simplify certain
processes applicable under BIS & GST.
The business has observed a surge in demand for Renewable
Diesel and Bio Diesel plants (which are more eco-friendly).
Enforcement of clean fuel standards - Renewable Energy
Directive (RED) II, Renewable Fuel Standard (RFS) & Low
Carbon Fuel Standard (LCFS) in developed countries, is
providing sustainable growth in demand in this sector. Oil to
Chemicals provide additional growth momentum in the mid
to long-term in the petrochemical sector (especially in Asia)
and LNG sector (especially in USA & Middle East). On the
domestic front, the Government has approved multiple mega
projects in the refinery and petrochemicals sector and further
traction is seen in large scale private projects.
The Modification, Revamp, Upgrade (MRU) business, identified
as a Lakshya growth initiative has taken off well, both in India
and GCC countries. Increasingly, clients are opting for revamps
and deferring greenfield investment projects.
NPCIL's biggest expansion of the country's nuclear power
capacity by building 10 nuclear power reactors in 'fleet mode'
with an aim to reduce costs and speed up construction
time is underway. Most of the purchase orders for bulk
procurement of critical equipment such as Steam Generators,
Pressurisers and Reactor Headers have been placed for the
construction of the 10 proposed units of the new indigenous
700 MWe Pressurised Heavy Water Reactors (PHWRS).
Further, Fleet procurement for this strategic sector is also
expected in next 2 to 3 years and Nuclear PBU is well poised
to tap this opportunity.
Major Achievements
In the international market, the business secured
breakthrough orders for the supply of Purified Terephthalic
Acid Plant Equipment for SASA, Turkey; Ethylene Oxide
Reactors for PKN Orlean, Poland and Enter Corp / Fargana
Refinery, Uzbekistan; LNG equipment for projects in Europe
and Australia, Hydro-Processing Reactors for PEMEX, Mexico
and Rodeo Refinery, USA and FCC Reactor Systems for JGC,
Japan Basra, Iraq.
The business ensured uninterrupted customer supplies
throughout the pandemic year by dispatching six complex
and heavy Tubular Reactors to various customers in China,
six of the World's Heaviest Coke Drums to Mexico, and five
Reactors & Heavy Vessels for a Green Diesel Project in USA.
In the domestic market, the business secured breakthrough
orders for an Oxidation Reactor for IOCL Paradip PTA Project,
securing dominance in the Urea Reactor (10th Urea Reactor in
a row), Titanium Piping Spool for NRL JV Bio Refinery under
Green Initiative arena and Seismic Stopper for 1st High Speed
Rail in India.
66
Corporate
Overview
Management
Discussion and Analysis
nuclear and hydrocarbon. Its custom-made, high-quality
products are used across the industrial spectrum.
Integrated Statutory
Report
Reports
Pertamina RR Package 4
65
LARSEN & TOUBRO
Statements
WASH Tower for IOCL Paradip
| HEAVY ENGINEERING BUSINESS
Overview
L&T's Heavy Engineering business is the global leader in meeting
the supply of engineered to order hi-tech equipment needs of
Refinery, Oil & Gas, Fertiliser, Petrochemicals and Nuclear plants.
The business has been at the forefront of introducing new
techniques, products and materials in the manufacturing
sector for over eight decades.
The A. M. Naik Heavy Engineering complex at Hazira is
a globally-benchmarked state-of-the-art fully integrated,
digitally-enabled manufacturing complex. Its capability
spectrum not only covers in-house engineering, R&D
centres, and world class fabrication facilities, but also
includes a highly talented team, committed to a safe
and sustainable work culture. The business achieved
international recognition through an impeccable track
record of executing large complex projects and constantly
creating new international benchmarks.
The business is organised into following Product Business
Units (PBUS):
• Reactor & Pressure Vessels (RPV) PBU specialises in
fabrication of Hydro-Processing Reactors, Tubular Reactors,
Gasifiers, Ammonia Converters, Urea Reactors, Coke Drums,
Fluid Catalytic Cracking (FCC) Reactor - Regenerator system,
Oxidation Reactor, Titanium Cladded Equipment, LNG / Gas
Processing Pressure Vessels and Heavy Columns.
• Heat Transfer Equipment (HTE) PBU specialises in
Acrylic Acid Reactor System, Ammonia & Urea plant
exchangers, High Pressure Heat Exchangers, Methanol
Converters, PO reactors, VAM reactors and Fired-tube
Waste Heat Boiler packages.
• Process Plant Internals (PPI) PBU specialises in proprietary
process plant internals for Reactors and Ammonia
Converter baskets. A large variety of critical internals
for advanced refining processes are manufactured using
materials like Stainless Steel, Duplex/Super Duplex
Stainless Steel, Inconel, Monel, Hastelloy, Titanium, etc.
Modification, Revamp & Upgrade (MRU) PBU offers
value-added end-to-end solutions for FCC revamps, Crude
Distillation Unit/Vacuum Distillation Unit revamps, Multi-
shutdown Facility revamps, Urea Reactor Life extension, Coke
Drum repairs, Heat Exchanger revamp, Urea Energy saving
projects and emergency repairs for the process plant industry.
• Nuclear PBU specialises in key equipment for steam supply
systems for nuclear power plants. It manufactures key
components of the nuclear island like Steam Generators,
End-Shields, Pressurisers, Safety Heat Exchangers, Reactor
Header Assemblies, Calandria, End Fittings etc. It supplies
critical components for Fusion Reactors (ITER), Fast Breeder
Reactor, Handling spent fuel (Casks / Canisters) and critical
equipment for strategic programmes.
•
Special Fabrication Unit (SFU) fabricates critical Titanium
Piping Spools, complex internals for Gasification Plants,
Loop Reactor, Primary Quench Exchangers (PQE) for the
petrochemicals sector.
• The business also has one of the world's largest Forge
shops, L&T Special Steels and Heavy Forgings Private
Limited (LTSSHF), a joint venture with Nuclear Power
Corporation of India Limited. LTSSHF meets the critical
custom-made heavy forging requirements of sectors like
Integrated Annual Report 2021-22
Financial
LARSEN & TOUBRO
Statements
Financial Performance of the Segment
business and Fertiliser & Petrochemicals business. The share
of international orders increased to 51% from 35% in the
previous year with receipt of a large value international order
in the Refinery sector.
*crore
4500-
3500
Gross Revenue from Operations
3018
0.7%
3039
*crore
5000-
Order Inflow
(9.8%)
2500
1085
The business remains positive in its outlook for order prospects.
However, in view of the recent geopolitical situation, the
commodity price escalations have created cost pressures on the
awarded contracts / tenders in PSU sector due to longer bid to
award exposure. Digital and organisation excellence initiatives
will result in higher value creation on a long term basis.
sector, LTSSHF has been certified as the only indigenous
producer of large and heavy forgings and thick plates for
the prestigious strategic program. The focus of the forgings
business remains to fill the gap in the country with respect to
manufacturing of critical heavy forgings.
Ethylene Oxide Reactor weighing 1157 MT for IOCL's Paradip Refinery
LARSEN & TOUBRO
End Shield
The MRU business has seen spectacular growth in FY 2021-
22. The business has booked the largest order for a Gas
Processing Unit in the Middle East and an FCC revamp order
(IOCL Barauni). Moreover, the MRU team has executed the
most complex HPCL Revamp Project 10 days ahead of schedule
during the peak of COVID-19's 2nd wave in April/May 2021.
The nuclear business team completed the assembly of the
ITER Cryostat's (the world's largest stainless-steel, high-
vacuum pressure chamber) top lid in the site workshop
in France. This was an important milestone in the global
nuclear fusion arena as well as a moment of pride for
India. The business also created a new global benchmark
in nuclear manufacturing by delivering the four 700 MWe
steam generators for the Gorakhpur Haryana Anu Vidyut
Pariyojana (GHAVP) 1 & 2 project (6-12 months ahead of
contractual delivery date despite the COVID-19 pandemic)
and dispatched the pair of end-shields for the GHAVP 1&2
project (3 months ahead of schedule).
Significant Initiatives
Digital and organisational excellence initiatives accelerated the
journey to be the global best Heavy Engineering company.
Improving competitiveness for products like Renewable Diesel
Reactor, HP Screw Plug Heat Exchangers and Heavy Columns
& Vessels has been identified as a major initiative to increase
market share.
Notable digitalisation initiatives include loT-enabled Industry
4.0 Smart Stations in welding & overlay operations, Virtual
3D Layout Simulation and Digi-Eye - for real-time project
progress monitoring. Digitalisation in office areas includes
automation of design & procurement, supply chain
management and estimation system.
The 'Quality at Root' initiative was embarked upon by the
business to reduce the cycle time of manufacturing by
eliminating non-value-added activities. This initiative will
ensure a sustainable 'First Time Right' quality culture.
Statutory Financial
Reports
LTSSHF has focussed on upgradation of manufacturing
technology and achieved very low reject rates for Nuclear and
Hydrocarbon sectors.
FY 2022-23 is expected to provide a growth momentum in view
of an improved global economic environment. It is expected
that the investment in renewables projects, petrochemical and
LNG sectors may continue to see an uptrend. The business
expects higher investments in Renewable Fuel / Refining
projects in USA & Southeast Asia, LNG projects in USA & Middle
East and Fertiliser projects in Australia, USA & Middle East.
In the domestic segment, the business expects launch
of new projects in coal gasification, petrochemical, and
specialty chemical industries. The MRU business expects
sustainable increased demand.
In the domestic nuclear projects, the customer is evaluating
fleet procurement in lumpsum turnkey mode to speed up
the implementation process. The projects relying on the
foreign technology program continue to progress at a snail's
pace. Internationally, nuclear energy is gaining traction
based on the recent focus on net zero emission targets. The
decommissioning and decontamination business opportunity
is also picking up momentum due to retiring nuclear power
plants in Europe / USA / Japan, etc.
The demand for heavy forgings is largely dependent on the
outlook of the Nuclear, Defence, Hydrocarbon, Thermal
power, and Hydro power industry segments. In the Defence
67
Integrated Annual Report 2021-22
BOREACTOR
Outlook
Report
Discussion and Analysis
Integrated
Order Inflow
crore
2000
38.5%
Gross Revenue from Operations
crore
39.3%
6000-
LHS
5000
1500-
1360
4448
265
6%
Financial Performance of the Segment
Boiler manufacturing facility at Hazira, Gujarat
Integrated Annual Report 2021-22
63
Reports
Statements
LARSEN & TOUBRO
唱
2x660 MW Khargone Thermal Power Plant, Madhya Pradesh (India's first ultra-supercritical power plant)
Significant Initiatives
While the business is targeting the prospects in Coal
based power plants and FGDs, it is exploring into various
adjacencies such as Life-cycle Management of STG, efficiency
improvement of existing plants, manufacturing of quenchers
and absorbers, co-firing of Biomass, waste to energy etc. to
contribute towards a cleaner environment.
4000-
The business aims actively towards 'Execution par Excellence'
to improve competitiveness by continuing the journey of cost-
saving and on-time project completion. The focus to achieve
QEHS excellence remains of prime importance. It has also
accelerated usage of digital levers to increase efficiency and
productivity of operations.
Outlook
An expanding economy, population, urbanisation, and
industrialisation means that India sees the largest increase
in energy demand compared to any other country. With
the emphasis on clean energy and zero emission targets
the business continues to face temporary headwinds in
the prospects for thermal power. However, the business is
expecting to witness an increase in new thermal projects to
be tendered out with an aim to support the smooth transition
towards clean energy, while maintaining the country's energy
security amid rising demand. Several projects are expected to
be finalised in the imminent future.
Considering the CEA's projections of 267 GW thermal
power capacity by FY 2029-30 and in view of retirals of old,
inefficient, and polluting power plants, addition of new
thermal power capacity is envisaged to continue in the near
future, positively impacting the business prospects.
It is estimated that the total installed capacity of power
plants for which FGDs are to be installed is around 167 GW,
involving 440 FGD units. About 80 GW of FGDs have been
ordered till date. Tendering of balance units is expected to
gain momentum in FY 2022-23 if the current deadlines
stipulated by MOEFCC are to be adhered.
The business is also focusing on international markets for
opportunities. The inherent advantages of gas-based power
projects like fuel flexibility and fast ramp up and ramp down
capabilities, make it most suitable for grid balancing along
with renewable energy projects.
L&T-MHI Power Boiler JV and L&T-MHI Power Turbine
Generator JV are also looking forward to leveraging
upcoming spares and service opportunities in the domestic
market and will continue to explore business opportunities in
the international market for export orders.
To expand its international footprint, the business is laying
emphasis on business development activities in select
international geographies like GCC, Southeast Asia and CIS. It
has taken steps to strengthen its presence in such geographies
to capitalise on the opportunities available in this sector.
36%
128
3193
2020-21
2021-22
Domestic
■International
2020-21
2021-22
Domestic International
OPM%
The Power segment recorded an Order Inflow of 1,360 crore
for the year ending March 31, 2022, registering growth of
38.5% as compared to the previous year with the receipt of an
FGD order. Ordering activity has remained subdued during the
year largely due to deferral of limited thermal power project
opportunities and delay in tendering of FGD orders.
The segment's revenue improved y-o-y by 39.3% to
4,448 crore, with a higher execution momentum of
opening Order Book.
The operating margin decreased to 3.9% from 4.6%, mainly
due to the mix of jobs under execution.
The funds employed by the segment at ₹2,281 crore as
at March 31, 2022 registered an increase of 12.8% over
the previous year, mainly due to the delay in collection of
retention moneys, coupled with the build-up in contract
assets on account of pick-up in execution momentum.
64
Corporate
Overview
Management
0
0
3.9%
1000
982
3000
5%
1000-
148
5%
4183
9%
49
2000-
94%
1232 91%
500- 95%
95%
933
3045
4.6%
Financial
49%
19.7%
14785
83%
10000
15000
2994
17%
20000
17729
25000
30000
35000
40000
crore
Order Inflow
12354 64%
5000
0
0
74.4%
Management
Corporate
Overview
International
Domestic
2020-21
Funds employed by the segment as on March 31, 2022 at
2,167 crore increased substantially over March 2021, mainly
due to increase in contract assets in some large value
onshore projects.
The segment revenue at ₹19,265 crore for the year grew
by 13.6% y-o-y, due to pickup in execution momentum,
mainly in the Onshore vertical of the business. The share of
international revenue in FY 2021-22 was lower at 36% of
the total revenue of the segment as compared to 47% in the
previous year, with a lower opening international Order Book.
The segment's operating margin decreased to 8.7% from 9.2%,
mainly due to input cost inflation and change in job mix.
OPM%
2021-22
Domestic International
2020-21
2021-22
6559 21%
24353 79%
30912
60
53% 8945
5000-
8.7%
Integrated Annual Report 2021-22
59
There are visible opportunities in international markets
for both onshore and offshore projects. The business will
selectively target focussed geographies in GCC and Algeria
and continue to look at product based modular opportunities
in Africa and Iraq. Further, the business is building capabilities
to address opportunities arising out of new businesses like
asset management and offshore windfarms.
Gol intends to maximise production of fertilisers like urea,
phosphates, and potash, mainly based on indigenous
feedstocks and also decrease import dependency of specialty
chemicals like ammonium nitrate and nitric acid to achieve
self-sufficiency.
With an expected increase in the demand for petrochemical
products, investments in integrated Refinery-Petrochemical
as well as Oil to Chemical (02C)/ Crude-to-Chemicals (C2C)
projects are expected to be triggered. The draft LNG policy
announced by the Gol aims to create LNG regasification
capacity of about 70 MMTPA by 2030 from the current level
of 42.5 MMTPA. Further, Indian Government is planning to
invest 70,000 crore to expand the gas pipeline network
across the country. The Gol has also set up an ambitious
target to gasify 100 million tonnes of coal into value added
products like fertiliser / methanol by 2030 towards the
announced net zero targets by 2070.
India's existing refining capacity of about 250 MMTPA is
expected to reach 298 MMTPA by 2025 for which Indian
refiners have plans to invest ₹200,000 crore with an
emphasis on setting up residue upgradation facilities.
private investment in petrochemical and crude to chemicals
projects in India, which augurs well for the business.
The Government of India (Gol) has planned to spend about
750,000 crore in oil and gas infrastructure over five years.
State-owned oil companies are planning to spend about
110,000 crore in the financial year 2022-23. After a gap of
several years, there are strong indications of green shoots in
The ongoing geo-political conflict between Russia and
Ukraine is leading to rebalancing of the world economic
preferences. Consequent to the recent geo-political changes,
the commodity prices which were already on a high, have
spiralled further, resulting in a high inflationary trend across
global economies. This resulted in sharp increase in the
Brent and WTI crude oil prices. The US Energy Information
Administration (EIA) expects the crude oil price to remain
higher than USD 100 per barrel. With the rebound in oil
prices and increased focus by the Governments to ensure
energy security, Oil & Gas capex is expected to continue.
ONGC has planned a capital expenditure of 29,950 crore
during the financial year 2022-23. Development of the
Deepwater fields in the East Coast of India will continue,
which will provide opportunities for the business, in addition
to the existing products like subsea structures and pipelines.
With the hardening of global crude prices, the focus will be
on the development of small and marginal fields by private
players. This will offer Transportation & Installation (T&I)
opportunities in India and Southeast Asia.
Outlook
and modular solutions, driving localisation efforts in key
geographies where the business can have a long-term
presence and digitally-enabled operational excellence.
New 48" Crude Transit Line from North Kuwait to CMM (TL-5) Project for KOC, Kuwait
HITACHI
Statements
Reports
DOLING WAY
A rendering of the 3D Model for IOCL's 3G Ethanol Project
Aggressive competition and increasing commodity prices
are expected to continue in the near future. The business is
geared up to respond to challenges through selective bidding,
enhanced cost competitiveness and prudent management of
risks. There is an increased thrust on localisation in KSA, UAE
and Qatar and the business has taken up significant initiatives
to address localisation requirements in KSA, which is the
biggest market for the hydrocarbon business presently.
With profit-driven growth at the core, the business continues
to remain a customer-centric organisation with sustained
focus on improved competitiveness to achieve mission of
'Execution Par Excellence'.
9.2%
10000-
47%
8019
15000
16964
6911 36%
Integrated
19265
Gross Revenue from Operations
20000
25000
* crore
The Hydrocarbon segment achieved order inflows of
*30,912 crore, registering robust growth of 74.4% over the
previous year with receipt of two large value orders during the
year from Saudi Arabia, which led to the share of international
orders increasing to 79% from 17% in FY 2020-21.
Consequent to L&T Hydrocarbon Engineering Limited being
merged with the parent entity, the previous year's figures
have been regrouped, wherever necessary.
Financial Performance of the Segment
13.6%
Statutory Financial
LARSEN & TOUBRO
Discussion and Analysis
3223
1658 51%
1565 49%
2021-22
■International
The Heavy Engineering segment recorded an Order Inflow
of 3,223 crore for the year ending March 31, 2022,
lower by 9.8% as compared to the previous year, mainly
due to deferral of orders in the Nuclear Equipment System
Domestic International
The segment's gross revenue of ₹3,039 crore remained steady
compared to the previous year. The share of revenue from
international operations has reduced from 49% to 36% in
FY 2021-22 since the previous year had a higher execution of
overseas refinery orders.
The segment's operating margin declined from 19.7% to
19%, mainly due to reduced export incentives under the
revised scheme.
Funds employed by the segment as at March 31, 2022, at
1,584 crore, was lower by 8.9% over the previous year, mainly
attributed to better collections and receipt of GST refunds.
68
Integrated
Report
Discussion and Analysis
Management
Domestic
2020-21
о
1000-
1500
19.0%
51%
1526
500-
0
64%
1954
Corporate
Overview
2020-21
OPM%
4000 -
3574
3000- 35% 1234
2000 -
65%
2340
2021-22
1492
62
.
L&T-MHI Power Turbine Generators Private Limited, a
joint venture with Mitsubishi Heavy Industries (MHI), Japan
and Mitsubishi Electric Corp. (MELCO), for manufacture
of Steam Turbine Generator (STG) equipment of capacity
ranging from 660 MW to 1,000 MW. The Company is
engaged in the engineering, design, manufacture, erection
and commissioning of ultra-supercritical / supercritical
turbines and generators.
The business has the following JVs within its fold:
L&T-MHI Power Boilers Private Limited, a joint venture
with Mitsubishi Heavy Industries (MHI), Japan - The world's
leading power equipment maker, for the engineering,
designing, manufacturing, erecting and commissioning of
ultra-supercritical / supercritical boilers up to a single unit of
1,000 MW.
The facility manufactures ultra-supercritical / supercritical
boilers, turbines and generators, pulverisers, axial fans and air
preheaters, components of FGD and electrostatic precipitators.
The business has project management offices at Vadodara,
Faridabad, Dhaka, and various other project sites.
The business has an integrated manufacturing facility at Hazira,
Gujarat. It is one of the world's most advanced facilities having
a manufacturing capacity of 5,000 MW per annum.
The business has built on its core competencies and
capabilities and has emerged as a major player in
new emissions control technologies such as Flue Gas
Desulphurization (FGD) in the Indian thermal power plant
industry. It now has a sizeable presence in the FGD business.
The business executes combined cycle and cogeneration
gas-based power projects on turnkey basis. It has an excellent
track-record in implementing projects in India and overseas. It
is the first company to execute a project with 'F-technology'
gas turbine of 250 MW class.
The business has developed its own capabilities for
executing large and complex power projects, which include
engineering, state-of-the-art manufacturing facilities,
competent manpower and decades of experience earned
in executing large and complex projects within and outside
India. The business has a proven track record of delivering
complete power plant solutions with scale and sophistication
to meet India's growing energy needs.
L&T has established itself as one of the leading EPC
players in offering turnkey solutions for both Coal and
Gas based power plants encompassing every aspect of
design, engineering, manufacture, construction, and project
management. In addition to undertaking turnkey projects, it
also offers equipment and other services for power plants.
Overview
| POWER BUSINESS
400 MW Bibiyana South Combined Cycle Power Plant, Bangladesh
G51-ANK
Statements
Reports
Report
L&T Howden Private Limited, a joint venture with Howden
Holdings B.V. L&T Howden, is in the business of regenerative
air-preheaters and variable pitch axial fans (equipment, after-
market spares and services) for power plants.
L&T - Sargent & Lundy Private Limited, a joint venture
with Sargent & Lundy LLC, USA, which is engaged in the
business of providing design, engineering, and project
management services for the power sector.
61
Integrated Annual Report 2021-22
• Provisional Acceptance Certificate received from Client for
400 MW CCPP project in Bangladesh. This project has been
conferred the Award of Merit by the prestigious US-based
publication Engineering News-Record (ENR)
• Final Acceptance Certificate received from Client for 225
MW CCPP project in Bangladesh
• Received Operational Acceptance for Cooling Tower
package of 2nd Unit of a Central Utility Project in
Uttar Pradesh
• Achieved Completion of Facilities of 2nd Unit of a Central
Utility Project in Uttar Pradesh where the Supercritical
boilers were supplied by the Boiler JV
Some of the major achievements by the business during the
year include:
Major Achievements
Though there are challenges in the international markets
such as greater focus on renewables, geo-political dynamics
and uncertainty hovering around COVID-19, these markets
still offer specific opportunities, and the business is pursuing
certain targeted projects with reputed clients and OEMs.
Supply of pressure parts by Boiler JV for its maiden order
from the Ministry of Economy, Trade and Industry (METI) of
Japan to a power project in Japan
to power plants at a 'reasonably stable price', most of the 24
GW of installed/commissioned gas-based projects in India
remain underutilised.
Tenders for FGD Units were delayed and retendered due
to increase in input costs resulting in budget constraints
for Power producers. Even during this phase of subdued
tendering, the business won a FGD order of 1,000 MW from
a prestigious Central Utility.
A panel constituted by the Ministry of Power, to update
the National Electricity Policy has suggested in its
recommendations that new coal-based units can be
constructed to replace older units of similar capacities, only
after it is convincingly established that it is not viable to meet
the projected demand from alternate non-fossil sources.
The growth of the thermal power sector remained tepid in
view of the Government's increasing focus on decarbonisation
of the country's power generation mix and hampered
economic activities owing to the COVID-19 pandemic.
The Indian power sector is undergoing a significant change
and that has redefined the industry outlook. Sustained
economic growth continues to drive electricity demand in
India. The Government of India's focus on attaining 'Power
for All' has accelerated capacity addition in the country.
At the same time, it is conscious of its goal for substantive
reductions in emissions from the power sector.
Business Environment
Turbine manufacturing facility at Hazira, Gujarat
G15
Though the import and pipeline infrastructure for LNG in
India has been improving, domestic as well as imported
natural gas continue to be economically unviable for
power generation projects and hence near to mid-term
opportunities remain lackluster. While the Government has
set up a committee last year, to make natural gas available
Integrated Statutory
Report
A dedicated Warship Design Centre at Chennai is
equipped with the latest integrated 3D design, analysis,
and Product Lifecycle Management tools, and interfaced
with project management and ERP systems, in line with
global best practices.
Corporate
Overview
b) Mindtree Limited and its subsidiaries: Mindtree
provides end-to-end IT and Digital solutions for business
transformation through cloud services, data, intelligence,
and enterprise transformation & automation. L&T acquired
controlling interest in Mindtree in June 2019.
L&T Technology Services Limited and its subsidiaries
(LTTS): It is a global leader in Engineering & R&D (ER&D)
services. LTTS delivers value through Engineering &
Technology via its offerings in product engineering,
manufacturing engineering, operations engineering and
engineering consultancy. The business was incorporated in
2012 and got publicly listed in 2016.
The Boards of LTI and Mindtree have approved the scheme of
merger of the two companies subject to receipt of respective
shareholders, creditors and regulatory approvals.
Business Environment
According to NASSCOM, the Indian IT Technology industry
crossed the USD 200 Bn revenue mark in FY 2021-22 to
touch a record USD 227 Bn. Technology was the panacea
that enabled corporations to not just keep the lights on, but
also repivot their business models to an online / virtual mode,
adapt to changing market dynamics and customer needs and
enable collaboration in a distributed work model.
During the year, the industry saw USD 30 Bn of incremental
revenues and an overall growth rate of 15.5%, the fastest
since 2011. All sub-sectors of the industry recorded double-
digit growth.
The performance of the IT sector was boosted in FY 2021-22
by the rapid pace of digitalisation and higher discretionary
expenditure by enterprises. India continues to be one of
the preferred destinations for setting up Global Capability
Centres (GCCs).
India has also emerged as a global hub for digital talent
with more than 5 mn tech workers and is the largest
employer within the private sector. The industry's 'people
first employee-centric approach saw tech firms quickly
adapt to hybrid work models and scale up capability building
programmes. The industry recorded nearly 10% estimated
growth in direct employees in FY 2021-22, with the highest-
ever net addition of approximately 450,000 personnel to its
employee base.
NASSCOM further reports that the current global
pandemic has accelerated the growth of demand for digital
transformation and other software-led business journeys. This
has had a direct, positive impact on offshoring for key R&D
destinations, including India.
75
Integrated Annual Report 2021-22
1
10
Servers
Tactical UAT
3
0
Servers
LTI's state-of-the-art delivery Center in Johannesburg, South Africa
A sense of heightened immediacy, calling for rapid delivery
schedules measured in months as opposed to years earlier,
translates to a growing focus on implementing new-age
customer-centric solutions through robust, data-driven
business models. The scenario further got strengthened by
a rapid on-ground shift towards vehicle electrification, smart
manufacturing practices, digital products and solutions, state-
of-the-art healthcare options, streamlined connectivity, and a
sustainable approach to business operations. These key trends
will help shape the global ER&D ecosystem, direct investment
decisions, and define growth plans for the future.
Risks and Concerns
Client relationships are at the core of the IT Services business.
The businesses enjoy a history of high client retention and
continue to derive a significant proportion of revenue from
repeat business built on the successful execution of prior
engagements. This exposes the business to the risk of
revenue concentration with top customers. Concentrated
efforts are taken to expand the client base and geographies,
to cross-sell and up-sell to incrementally achieve broad-based
growth and increase the value-add of deliverables.
Employees remain the prime asset for any technology
business. It is critical for the organisation to attract and retain
skilled employees and manage the industry wide issue of
attrition. The concern is contained with employee friendly
policies, framework to reward high-potential employees,
innovative programmes for employee engagement, learning
& development plans and career growth options. Such
holistic approaches and interventions are implemented to
limit attrition.
Cyber Security is a major risk as businesses move to newer
areas of engagement such as social, mobile computing and
cloud computing. Hacking, ransomware, social engineering,
and other cyber-attacks represent ever present threats to
data security and system availability. Tighter measures are
put in place to ensure adherence to set policies and practices.
Cybersecurity assessment from third parties provide enhanced
confidence in cybersecurity measures. End point security
controls are deployed to ensure levels of security are not
compromised while working remotely.
Compliance & Litigation risks are a given when businesses
operate out of multiple regions and specially when the
regulations across the globe are changing and evolving
constantly. It is imperative to be compliant with these
requirements, to avoid the possibility of legal liabilities and
reputational damage. System-based controls are implemented
to keep the organisation compliant with the regulations
globally. The businesses also engage consultants across
the globe who provide support in adhering to statutory
requirements and complying with the changing regulations.
Similarly, litigation is handled by experienced in-house legal
teams along with external counsels.
The IT&TS business segment consists of:
a) Larsen & Toubro Infotech Limited and its subsidiaries
(LTI): LTI is a global IT Services company positioned at the
convergence of digital and physical worlds, with real-world
expertise and client centricity. It was founded in 1997 as
a subsidiary of Larsen & Toubro Limited and got publicly
listed in 2016.
| IT & TECHNOLOGY SERVICES
LTI Headquarters, Powai, Mumbai
565
0%
2000
8
500-
0
100%
2460
0+
2020-21
Domestic
2021-22
International
OPM%
2020-21
Domestic
Foreign Exchange risk is one of the key risks as major
revenue is denominated in foreign currency. This risk is
mitigated by a dynamic hedge management policy and
strategies that are periodically reviewed in the light of
macroeconomic changes.
2021-22
With receipt of some large value orders in the Shipbuilding
business, the Defence Engineering segment has recorded a
substantial growth by bagging orders worth 8,079 crore as
compared to 2,468 crore in the previous year.
The segment's gross revenue of 3,226 crore declined by
5.4% compared to the previous year with some large value
jobs in the portfolio viz. K9 Vajra, nearing completion in
FY 2020-21. Share of international revenues decreased to
13% from 24% in previous year with the tapering of an
international order in shipbuilding.
The operating margin declined to 20.2% from 22.2% in the
previous year, since previous year had the benefit of release
of cost savings in some key projects that got completed.
Funds employed by the segment as on March 31, 2022, at
1,115 crore decreased by 46.6% y-o-y, on account of better
collections on completion of deliveries across some key projects
and receipt of customer advance on large value new orders.
74
Corporate
Overview
Management
Integrated Statutory
Discussion and Analysis Report
Reports
Financial
Statements
LARSEN & TOUBRO
LTI
International
2468
76
Management
In USD terms, the revenue at USD 4,393 mn for FY 2021-22
reported an industry leading growth of 26% over the
previous year.
The OPM % was maintained at the previous year levels
despite increase in employee costs.
The funds employed by the segment as on March 31, 2022
at 26,441 crore increased by 12.8% compared to
Overview
Larsen & Toubro Infotech (LTI) is a global technology
consulting and digital solutions company helping more than
485 clients to succeed in a converging world. Each day across
33 countries, with workforce of over 46,000, LTI enables
clients to improve the effectiveness of their business and
technology operations and deliver value to their customers,
employees, and shareholders.
The business has a strong presence in each of the
following verticals:
Banking and Financial Services: LTI offers a full array of
digital banking services that connects to end customers
through multiple digital channels. It delivers business value
through services, such as data driven transformation, risk
and regulatory compliance, digital enablement, innovation
partnerships and NexGen ADMS services across retail
banking, payments, trade finance, capital markets,
asset/wealth management, custody and settlements.
Integrated Statutory Financial
77
Integrated Annual Report 2021-22
mosaic
automution
mosaic
LTI
Let's Solve
LTI Delivery Centre, Warsaw, Poland
Manufacturing: This sector includes Industrial
Manufacturing, Automotive and Aerospace arenas. LTI
leverages its rich domain knowledge in industrial machinery
manufacturing to help Plant Equipment and Industrial
Machinery (PEIM) companies spur innovation and reduce
time-to-market. It provides customized IT solutions for PEIM
companies in key areas, including supply chain management,
shop-floor-to-top-floor integration, productivity improvement,
serialisation and traceability, and production analytics.
Energy and Utilities: LTI is at the forefront to help the
traditional energy companies to not only improve operational
efficiencies and sustainability but also break away into the
newer green energy solutions by providing next generation
Energy Industry IT Services and Solutions across Upstream,
Midstream, Downstream and Renewables. With thorough
industry know-how and technology expertise, it has delivered
powerful real-time advanced analytics and decision support
capabilities to several global clients.
Consumer Packaged Goods (CPG), Retail and Pharma:
LTI enables CPG companies to transform their businesses
with robust IT services and solutions. By partnering with LTI,
customers can effortlessly launch targeted, omni-channel
offers and promotions for consumers, while streamlining
operations to boost profitability. LTI enables retailers to
streamline operations using technologies such as IIoT and
Cloud and derive actionable consumer and business insights
by harnessing advanced analytical tools.
Hi-Tech, Media and Entertainment: LTI has helped
high tech clients with IT solutions to realise substantial
synergies from their M&A activities by structured IT portfolio
rationalization, complex digital integration and digitisation of
core processes.
It further enables media entities to offer superior user
experiences across platforms and helps them enhance
content creation, distribution, and rights management.
By partnering with LTI, customers can leverage multiple
distribution models effectively for higher monetization of the
content. Its proven expertise in new media and strong digital
technology credentials can help achieve faster time-to-market
and establish leaner operations.
LTI has offerings across the following service lines:
Application Development & Maintenance and Testing
Enterprise Solutions
. Cloud Infrastructure & Security
• Analytics, Al & Cognitive
Enterprise Integration & Mobility
Major Achievements
LTI has been ranked 22 among the top 25 most valuable IT
services brands in the Brand Finance IT Services 25, 2022
ranking. It's brand value reached USD 1.1 Bn, an exceptional
growth of 83% since 2020.
78
The segment recorded a gross revenue of 32,474 crore
for the year ended March 31, 2022, registering a growth of
26.8% over the previous year, reflecting the improved growth
opportunities in the sector. International revenue constitutes
a steady 92% of the total revenue of the segment.
OPM = EBIDTA
OPM%
Revenue
Discussion and Analysis
Integrated
Report
Statutory Financial
LARSEN & TOUBRO
Reports
Statements
Mosaic Experience Centre, Powai, Mumbai
Financial Performance of the Segment
Gross Revenue and OPM %
26.8%
32474
March 31, 2021, mainly reflecting an increase in volumes
by way of increase in customer receivables and higher
investible surpluses.
L&T INFOTECH
Corporate
Overview
crore
35000
30000
25619
25000
20000
23.5%
23.6%
15000
10000
5000
0
2020-21
2021-22
40000-
2807
Insurance: LTI helps insurers solve complex business problems
such as digital adoption, customer experience management,
speed-to-market, underwriting profitability, operational
efficiency, distribution effectiveness and claims optimisation.
Its domain expertise spans across the insurance value chain,
including intermediaries, carriers, reinsurers, regulators, and
Independent Software Vendors (ISVS).
99%
Defence Shipbuilding
L&T's Shipbuilding business offers end-to-end solutions for
design, construction of defence ships and refit services. The
business owns and operates a greenfield mega defence
shipyard at Kattupalli, near Chennai, located across a
sprawling 980-acre complex. The Kattupalli Shipyard is
India's largest shipyard, considering just the first phase
spread across 150 acres that has been operational for
nearly a decade. The design and construction of the
yard is modelled to adapt global best practices, such as
modular fabrication, construction under covered shops,
use of a Ship-Lift with dry and wet berths, etc., to enable
simultaneous construction of different classes of vessels until
near completion on land, and then launching them on water
through the Ship-Lift. It is the only Indian shipyard with
Industry 4.0 practices embedded, enhancing construction
efficiency, cycle time and build quality.
The Kattupalli Shipyard has been largely engaged in new
builds and refits/repairs of defence ships of the Indian
Navy and Indian Coast Guard. Since 2010, the business has
designed and constructed 67 defence vessels and delivered
them ahead of schedules, these include a floating dock
for the Indian Navy, Interceptor Boats and Offshore Patrol
Vessels for the Coast Guard as well as five high speed Border
Guard boats for a friendly nation. The shipyard has also
supplied design and material kits for seven vessels to be built
there to empower that country with indigenous shipbuilding
using latest shipbuilding practices and processes. The unique
capability of the business to achieve on-time or ahead of
contractual delivery performance in all the contracts for
defence vessels is a benchmark in the Indian shipbuilding
industry. The shipyard has a track record of delivering
first-of-class OPV vessels on / ahead of schedule and with
design and construction maturity and in-built quality. A
global benchmark was attained by the Yard in the sea
acceptance trials of a 2,130 MT class offshore patrol vessel
by completing the entire acceptance trials in the maiden sea
sortie of the vessel to affirm its design and build quality.
70
Corporate
Overview
Management
Discussion and Analysis
Integrated
Report
Statutory
Financial
LARSEN & TOUBRO
Reports
Statements
11012
FDN-2: Floating Dock built for the Indian Navy
While being actively associated with the defence sector, the
business has a policy of not manufacturing any explosives
or ammunition of any kind, including cluster munitions
or anti-personnel landmines or nuclear weapons or
components for such munitions. The business also does not
customise any delivery systems for such munitions.
Business Environment
With the Government of India initiating substantive policy
reforms since past 3 years and allocating higher budgets for
indigenous procurement, the macro picture has become more
positive for the business. The determined push by the Gol
under 'Make in India' initiative and 'Atmanirbhar vision' saw
positive traction towards indigenous production by building a
robust acquisition pipeline of potential orders with preferential
categorisation in favour of indigenous acquisition by grant of
Acceptance of Necessity and accelerating issuance of RFPs.
The Defence capex budget witnessed a systematic increase
(~12% y-o-y) in the budget year FY 2022-23 over the
previous financial year and the allocation for procurement
from domestic industry has witnessed an enhancement from
58% to 68% of the total capital procurement budget
(71,000 crore in FY 2021-22 to 84,600 crore in FY 2022-
23). Also, the allocation for acquisition for the private sector
has been enhanced from 16,000 crore to 21,150 crore
(25% of domestic acquisition allocation).
A major highlight announced in the Union Budget 2022
is the opening up of Defence Research & Development
funding to the private sector, start-ups and academia with
an earmarked allocation of 25% of the total R&D budget
(1300 crore) for fresh cases. This would help create
intellectual property (IP) within the country, helping reduce
cost of indigenously developed and manufactured goods and
solutions and also facilitate exports that can unconditionally
be done with the Company's own IP. Given L&T's track record
in R&D, the business would be in a best position to exploit
this initiative and take up development of mega platform
projects with large order value potential over coming years.
The concluding part of the year witnessed widescale
turbulence across the world on account of geopolitical
challenges. However, the business has built in resilience in
its supply chain to address the risks on account of these
challenges. The 'Atmanirbhar Bharat' initiative of the
Government also aids in becoming self-reliant with Indian
resources and assets for the business.
Major Achievements
During the year, the business has achieved multiple successes
and proud moments, uniquely reaffirming L&T's positioning
as a 'nation-builder' through a series of Make-in-India
programs. These include:
• Successful delivery of multiple land and naval weapon
launch systems, engineering systems and missile systems to
the Indian Armed Forces. The 10m Short Span Bridge and
Medium Range Surface to Air System were inducted by the
Armed Forces in July 2021 and September 2021 respectively
• The business was selected as a 'Strategic Partner' to
the Indian MoD and received RFP for Construction of
.
The business also has a Joint Venture (JV) with MBDA, a
global leader in missiles and missile systems. The JV is well
positioned to indigenously offer advanced missile systems
to the Indian Armed Forces.
as well as by teaming up with the DRDO. It has also
participated in the Indian Navy's indigenisation program for
the development of a range of naval engineering systems
and weapon systems within the country. Subsequently,
L&T Defence built a wide-ranging portfolio of land-based
weapon and engineering systems for the Indian Army. To
date, the SBG has indigenously developed more than 250
defence products out of which more than 50 of them have
been delivered in serial production mode. The business
model is uniquely differentiated through its focus on in-
house technology and product development, innovation
for serial production, mature and equated partnerships
with global majors and through-life support offerings.
These enable the business to maintain its market leadership
position (in the private sector) in an environment where
the Government is aggressively pursuing the indigenisation
agenda through 'Atmanirbhar Bharat Abhiyan'.
L&T has provided critical subsystems for most of India's space missions
Integrated Annual Report 2021-22
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Management
Discussion and Analysis
Report
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LARSEN & TOUBRO
Statements
Short Span Bridging System
| DEFENCE ENGINEERING BUSINESS
Overview
With an offerings portfolio of technologies, products,
systems, platforms and solutions, the business provides
design-to-delivery solutions across chosen defence segments
with a focus on indigenous design, development and
production of naval (submarines and warships) and land
platforms (armoured systems, howitzers), weapon systems,
engineering systems, missile & space launch vehicle
subsystems, sensors, radar systems and avionics. These are
complemented by R&D and Design & Engineering Centres for
targeted platforms, systems, and solutions development.
The business operations extend across two R&D centres, three
Design & Engineering Centres, and six production centres
across India:
• Submarine hull-building facility and an armoured systems
manufacturing, integration & testing facility at L&T's A.M.
Naik Heavy Engineering Complex at Hazira, Gujarat
six P-75 (1) Submarines by collaborating with a chosen
Foreign Collaborator
•
.
•
Aerospace Manufacturing shops for India's space launch
vehicle subsystems at the Precision Manufacturing &
Systems Complex, Coimbatore
Aerospace and Missile subsystems manufacturing at the
Centre of Excellence for Advanced Composites
at Coimbatore
• Strategic Electronics Centre at Bengaluru
•
Modern shipyard at Kattupalli (near Chennai)
Besides these dedicated facilities, the business also operates
a facility at Visakhapatnam under the Government Owned
Contractor Operated (GOCO) model. These Work Centres
are complemented by R&D Centres at Powai and Bengaluru,
Design & Engineering Centres for submarines and warships at
Powai and Chennai respectively and a Design & Engineering
Centre for weapon and engineering equipment at Powai. The
business is headquartered at Powai, Mumbai.
The business is structured into two strategic
business groups (SBGs):
1. Defence & Aerospace
2. Defence Shipbuilding
Defence & Aerospace
Since its inception, the Defence and Aerospace (D&A)
business has built a portfolio of wide ranging indigenously
designed & developed products, systems, solutions,
platforms and technologies through in-house efforts
69
Strategic Systems Complex for weapon and engineering
systems and sensors at Talegaon near Pune
The shipbuilding business won the contract for
Construction of Multi-Purpose Vessels (MPV) and
conclusion of negotiations for Cadet Training Ships (CTS) as
well as Special Pontoon for DRDO, amidst stiff competition
L&T entered the strategic Defence sector in the mid-80s
leveraging its precision equipment capabilities. This was well
ahead of the opening up of the sector for private industry
participation in 2001. During the preceding one and a half
decades, L&T has been associated with the Defence Research
& Development Organisation (DRDO) and Indian Navy's
indigenisation programme.
Integrated Annual Report 2021-22
*crore
10000
8000
Order Inflow
>100%
4500
Gross Revenue from Operations
3410
8079
3500
64
1%
24%
823
2500
(5.4%)
3226
419
13%
6000-
22.2%
1500-
87%
76%
4000-
71
8015
crore
Financial Performance of the Segment
20.2%
Tactical Unmanned Aerial Vehicle
Offshore Patrol Vessel for Indian Coast Guard
L&T TUAV
41
INDIAN COAST GUARD
• Supplied 223 Medical Oxygen Generation Plants within 75
days of having been called upon to cater to the healthcare
requirements during the COVID-19 pandemic
New benchmarks set up by work centres in terms of serial
production of systems and equipment. Noteworthy ones
include delivering Combat Engineering Systems (bridging
systems, air drop platforms), Air Defence Systems, attaining
operational efficiencies through innovation in manufacture
and maintenance of safety in operations across work
centres aided by digitalisation and automation
• The R&D and Design & Engineering teams continue to
focus on emerging technologies to develop a range of
products and solutions that are intended to future proof
the business. Unmanned systems across four domains
(Under Water, Surface Warfare for Navy, Land, Air
Domains), Augmented Reality (AR) and Virtual Reality (VR)
based solutions and offerings are being emphasized to add
a significant value to the business as a differentiator
Significant Initiatives
Evolving through collaboration, the business has identified
and signed MoUs / agreements with strategic partners
to enhance business opportunities both in domestic and
international markets. R&D and innovation has been
the backbone of the defence engineering business since
inception, and the business continues to invest in R&D to
develop new-age technologies and products.
The business has been building a strong position in digital
design since the early-90s and has attained proficiency in
Industry 4.0 across its multiple R&D, Design & Engineering
Centres and Production Work Centres that extend from
equipment and systems to the building of complete platforms,
such as Warships, Submarines and Armoured Systems.
Focused digital initiatives that were innovated and
implemented during the pandemic to overcome associated
challenges were adapted to daily operations and the same
have been institutionalised to gain higher operational
efficiencies. These have also helped in achieving business
continuity and meeting key deadlines, evolution of innovative
technologies and processes that could adapt to provide
through life support, training, digital quality assurance, trial
evaluation and acceptance.
Outlook
Against the backdrop of recent global events, the
reinforcement of the importance of self-reliance in a strategic
sector like Defence has increased. This could result in
enhanced spending on the Defence sector. The Government's
series of reforms in the Defence sector to enhance
indigenisation has been given a fillip by the 'Atmanirbhar
Bharat' initiative to innovate and build differentiation in what
the Armed Forces deploy. The budget allocation for domestic
procurement has been identified by the Government and
is expected to be realised in a time-bound manner through
the acquisition of the platforms, systems, and equipment
as mentioned in the Positive Indigenisation Lists. The recent
experiences that have taken place at the country's borders
have catalysed the innovative adaption of existing weapons /
platforms for high-altitude operations as well as development
of indigenous weapons/platforms to combat adverse
environmental conditions. This has brought a renewed focus
on expeditious completion of trials of systems and their
accelerated induction into services.
The MoD has announced significant reforms at different
levels as a part of the 'Atmanirbhar Bharat' and 'Make
•
Corporate
Overview
72
The Government has announced several reforms towards
commercial exploitation of opportunities in the space sector.
The autonomous promotion and regulatory body, IN-SPACE
(Indian National Space Promotion and Authorisation), is
working towards handholding and promoting private industry
in the space sector. NSIL (New Space India Limited), a PSU
under the DOS, is also striving towards working on areas of
launch vehicles and satellite production as well as services
through private consortiums. The Space Policy is under review
by the Gol. It is designed to create a watershed moment for
facilitating the role of the private industry and opening up of
the space sector. This policy is expected to be released soon.
The business has been a trusted industry partner to India
Space Research Organisation (ISRO) and has contributed to
indigenous capability of the Indian space sector for over five
decades. The reforms announced in the space sector will
enable private sector companies - like L&T, which has built,
and enhanced their capabilities over the last few decades
- to take on the complete manufacture and integration of
launch vehicles as well as satellite bus manufacturing and
associated services.
in India' visions. At the strategic level, the revised Draft
Defence Production & Export Promotion Policy (DPEPP) has
been published and extensively deliberated to incorporate
specific inputs from industry stakeholders. This policy
focuses on eight pillars of reforms and embeds the vision
and roadmap towards achieving significant self-reliance in
the Defence sector by FY 2025-26. Over 18 programmes
have been identified for acquisition under the 'Make'
route of DAP 2020 which focuses on indigenous design,
development and realisation using Indian resources. The
development and R&D is expected to take off with the
formation of SPVs with the DRDO. The MoD also assures
grant of a level playing field in naval shipbuilding and
inflation linked escalation on long-term contracts of tenures
beyond three years. Contracts worth 500,000 crore are
expected to be placed on the Indian industry within the
next five years for the procurement of systems / platforms
covered in the Positive Indigenisation Lists.
Statements
Reports
Air Defence Fire Control Radar
Financial
Management
Discussion and Analysis
LARSEN & TOUBRO
Integrated Annual Report 2021-22
73
Integrated Statutory
Report
Mindtree is a Premier Google Partner for Google Cloud
Platform (GCP) and offers its customers a complete spectrum
of cloud services.
• Google
The business is also empanelled as a strategic vendor to
Google's 'Professional Services Organisation' (PSO) and a
part of the Google Cloud Partner Advantage Program that is
designed to provide Google Cloud customers with qualified
• Adobe
82
Mindtree is an Advanced Consulting Partner in the Amazon
Partner Network (APN) for Amazon Web Services (AWS).
Together, they have helped several enterprises to successfully
migrate to the cloud.
• AWS
Mindtree is an established premium consulting partner
of Salesforce with 17+ years of experience on the
platform. As a Platinum Partner, it specialises in Salesforce
implementation strategies to drive digital growth through
deep client engagement and offers services across the
Salesforce success value chain - ranging from Strategy
Consulting & Solution Design to Implementation and
Application Value Maintenance.
• Salesforce
Mindtree has been a Platinum-level Adobe Business Partner
for over 3 years. The partnership with Adobe and the domain
experience brings together a full suite of customer experience
transformation services to accelerate its clients' digital
transformation journey.
Healthcare
• Microsoft
To meet the rising demand, globally companies need to
innovate and invest in disruptive technologies to better
compete in the market. The technology ecosystem banks
heavily on integrative solutions, which is why it is important
for technology service providers and innovators to collaborate
to create sustainable solutions. At Mindtree, the idea of
collaboration and partnership is to deliver appropriate
technology solutions to new and existing clients which result
in better business outputs and outcomes for them.
Mindtree's key partner relationships are:
Alliances and Partnerships
Mindtree's cross-industry experience helps customers across
the health ecosystem including payers, providers, and medical
device companies to accelerate growth, deliver superior
experience to consumers, clinicians and employees, reduce
the cost of care, and run digitally optimised operations.
Mindtree also provides industry-focused platforms, value-
driven engagement constructs, innovation labs, and cohesive
partnerships built on the foundation of technology and talent.
Design Thinking Workshop, Mindtree Digital Pumpkin, New Jersey
Integrated Annual Report 2021-22
81
Data analytics and cloud modernisation expertise help
customers achieve economic discipline, lean operations, and
digitalisation to drive profitable growth.
Corporate
Overview
Travel, Transportation and Hospitality (TTH)
Mindtree partners with leading airlines, hotels, cruise lines,
travel service providers, car rental firms, and real estate
companies in their digital transformation initiatives to help
them recover from the COVID-19 pandemic and deliver
measurable business outcomes.
Mindtree helps its RCM customers become future-ready
and get to the market with better predictability and speed.
It enables some of the world's largest food, beverages,
household and personal care products, sports goods,
footwear and apparel, consumer durables, and pharma
consumer firms to drive hyper-personalisation in today's
connected world. This is done by harnessing cutting-edge
consumer-data platforms and hyper-analytics and reimagining
supply chains along with manufacturing processes. It also
helps retail customers deliver cohesive and compelling
omnichannel experiences to their 'GLOCAL' customers.
Mindtree is distinguished with the highest tier of Microsoft
Azure partnerships and is one of the exclusive 70+ Managed
Service Providers with exclusive access to all levels of
support programmes and solutions. It also collaborates
closely with Microsoft to develop next-generation cloud
solutions for clients.
Management
Mindtree and SAP have been strategic partners for more
than a decade. Mindtree is currently the only integrated
service provider in the world with expertise on the SAP
HANA platform across all three major public cloud platforms:
Amazon Web Services, Microsoft Azure and Google Cloud.
Mindtree is also one of a handful of Lighthouse Partners,
which offer customers SAP's re-imagined enterprise resource
planning solution, SAP S/4HANA via the public cloud.
Discussion and Analysis
A large global bank selected Mindtree for a multiyear
deal to provide global support to the content and event
operations of the marketing function of its asset and
wealth management unit
Retail, CPG and Manufacturing (RCM)
One of the world's largest technology companies selected
Mindtree as a preferred supplier for product engineering and
cloud professional services to enable it to scale up faster
.
Multiple annuity and multi-year large deals have been bagged
across verticals and few of them are given below:
Key deal wins
Mindtree continuously endeavours to automate and digitise
the activities embracing the advantages it carries. It employs
BOTS for performing various tasks, it has launched 'Flexor'
an internal platform for bottoms up approach for improving
project level margin, a crisis communication system is being
developed to send internal alerts and advisories and it is
automating Business Continuity Management tools.
The Future ways of working (FWOW) program is aimed at
creating flexible, more sustainable workplace and working
model centered on clients and Mindtree minds. The business
has devised F-O-R (Flexi, Office or Remote) working model
which is the core of the FMOW program. As part of 'Work of
the Future' talent strategy, tapping into tier 2 and tier 3 cities
and setting up delivery centres in Coimbatore, Warangal, etc.,
has assisted not only in terms of managing the demand, but
also in managing attrition.
deployment to client projects. Mindtree Edge, a unique learn-
and-earn program for BSc and BCA graduates continues to
progress as planned with a focus on investing in future-ready
talent.
With the increased demand for digitisation from companies
around the world, the demand for talent having requisite
skillsets has increased significantly. Campus hiring
programmes and the flagship training program for fresh
graduate hires have been rejuvenated to accelerate fresher
Significant Initiatives
Mindtree is an Elite partner of ServiceNow and was
recognised as the 2022 ServiceNow Americas Emerging
Service Provider Partner of the Year. Its dedicated ServiceNow
practice has carried out large-scale transformational
engagements. In addition to upskilling and reskilling
resources across various ServiceNow certification streams
and building competencies beyond ITSM, Mindtree has also
invested heavily in establishing a dedicated ServiceNow
engineering team and centre of excellence, developing a
broad range of custom applications and accelerators to drive
function-specific as well as enterprise ServiceNow solutions.
• ServiceNow
• SAP
partners that have demonstrated technical proficiency and
proven success in specialised solution and service areas.
Immersive Aurora, Mindtree East Campus, Bengaluru
AUTOMOTIVE SPHERE
RETAIL SPHERE
WHERE POSSIBILITIES COME ALIVE
Statements
LARSEN & TOUBRO
Statutory Financial
Reports
Report
Integrated
Mindtree helps BFSI customers to modernise their core,
reimagine their go-to-market models, adopt cloud, leverage
data and insights, and better engage with their customers
through insightful analytics, personalised marketing, and
tailored experiences. It also enables customers with their
ESG journeys by creating strategies, providing intelligence
services, managing risks, staying compliant, and generating
green alpha.
LTI launched Fosfor, the Data-to-Decisions Product Suite,
an integrated suite of products across the data-to-decisions
lifecycle signifying LTI's intensified focus into the multi-billion-
dollar Al and data products market. As Fosfor, LTI brings
together the synergies of erstwhile Mosaic and Leni products
uncovering unlimited opportunities for enterprises with next-
generation Al products.
The offerings help media firms, broadcasters, publishers,
gaming developers, advertising agencies, information service
providers, professional service firms, and educational institutions
to digitalise their content and scale their direct-to-consumer
platforms. Mindtree also enables technology software,
hardware, semiconductor, and networking companies to build
innovative and intuitive products, increasingly offered as a
service with subscription-based pricing.
LTI acquired Cuelogic Technologies, a digital engineering
and outsourced product development company with over
300 people headquartered in Pune, India. Founded in 2010,
Cuelogic has built capabilities in digital engineering and
primarily focuses on developing cloud native web and mobile
applications, modernisation, and runs an innovation lab as
a service for its clients in the USA and India. Cuelogic works
with enterprise clients on multiple facets of digitalisation such
as UX Consulting, DevOps, Al Consulting, IoT, Applications
Modernisation, Cloud Architecture & Integration.
Significant Initiatives
f) Engaged by a key Government body in the public
healthcare space to develop an eco-system and technology
infrastructure providing, storing, and improving access
to relevant public data and supporting public health
insurance programmes
e) Selected by a Global Fortune 500 consumer goods
company as their strategic partner for data and analytics
work to transform and gain insights across their most
critical business functions of manufacturing, supply chain,
marketing, and creation of a metadata hub
d) A Global Fortune 500 corporation, a leading provider of
ratings, benchmarks, analytics, and financial data, has
selected LTI as its primary partner for an engagement
involving data and digital services to integrate its data
platforms with its recent acquisition
c) Selected by a Global Fortune 500 financial services
company for an end-to-end managed services
engagement involving transformation, governance and
support for middleware and data as part of their global
technology function
b) Selected by one of the largest global veterinary care
practices and chain of North American pet clinics, a new
logo, for a managed services deal involving cyber security
and modernisation of IT infrastructure including migration
to cloud to gain operational efficiencies and transform
clinic management and support
a) Selected by a European company providing digital
marketing solutions for a global, end-to-end managed
services deal spanning across the internal IT department.
The scope includes business applications maintenance,
development and support of cloud and data platforms, as
well as end-user services
Key deal wins
Blockchain capability demonstration at Mosaic Experience Centre
LTI launched its hybrid model of working called Yin-Yang,
embracing a next-generation hybrid workplace where
Work from Home and Work from Office will coexist to help
employees benefit from both work environments.
USING BLOCKCHAIN
SOLVING BUSINESS CHALLENGES FOR OUR
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CLIENTS
LTI is now a signatory to the Ten Principles of UN Global
Compact. These principles lay down the operating
guidelines for a company to meet their fundamental
responsibilities in the areas of human rights, labour,
environment and anti-corruption.
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Communications, Media and Technology (CMT)
Mindtree partners with CMT customers to help them
reimagine their business models, optimise and automate key
processes, and fully leverage digital technologies. It enables
Communications Service Providers (CSPs) and Original
Equipment Manufacturers (OEMs) to customise, implement and
support their 5G products, IoT platforms, and edge devices.
The business enables the customers across diverse industry
sectors such as banking, capital markets, insurance,
communications, media and entertainment, technology,
education, retail, consumer packaged goods, manufacturing,
travel, hospitality, logistics, and healthcare to achieve
digital transformation.
24 countries, Mindtree is consistently recognised among the
best places to work.
Mindtree, Kolkata
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Overview
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Mindtree is a global technology consulting and services
company that enables enterprises across industries to
drive superior competitive advantage, improve customer
experiences and create positive business outcomes by
harnessing digital and cloud technologies. A digital
transformation partner to more than 270 of the world's
leading corporations, Mindtree brings extensive domain,
technology, and consulting expertise to help reimagine
business models, accelerate innovation and maximise growth.
As a socially and environmentally responsible business,
Mindtree is focused on growth as well as sustainability in
building long-term stakeholder value. Powered by more than
35,000 talented and entrepreneurial professionals across
Overview
MINDTREE
LTI also sees an increasing trend in innovation in the 5G
space, edge computing driven eco-system of connected
devices and smart products, hardware firms moving to new
business models and heightened focus on supply chain
resilience. The Media and Entertainment industry continues to
experience the influence of consumer behaviour dynamism,
mergers and acquisitions fuelled by competitive intensity and
industry reshaping due to technological innovation. The year
has also seen the emergence of the Metaverse which is likely
to see increased levels of spendings.
The consumer-packaged goods, retail and pharma sector is
likely to see continued investments in the data platforms and
digitalisation initiatives with a focus on resilient supply chains
and consumer experience led by direct-to-consumer strategies.
The spend on energy transition and sustainability could go up
even more in FY 2022-23.
The manufacturing industry is likely to continue to see an
influx of investment in automation and digital solutions that
support increased agility and better risk management. Tools
that capitalise on the use of data will also be a key.
In the Insurance sector, major initiatives will be focused
on enhancing online user experiences with an increased
emphasis on hyper-personalisation and data-driven
ecosystems as well as remote distribution networks,
augmented reality and loT.
Digital transformation continues to be a strategic priority
and key area of focus for Banking and Financial Services
firms. Technology investments are across large and medium
sized banks and across sub-verticals such as capital markets,
payments, retail banking, wealth management etc. Firms are
investing in improving customer experience by shrinking the
core and building a layer of service-oriented interfaces. This
gives them the agility to launch a new product and offer a
higher degree of straight-through processing.
FY 2022-23 growth estimates for the technology industry
reflects the optimism of FY 2021-22. According to NASSCOM
Tech CEO Survey 2022, 72% of Tech CEOs indicate 2022 tech
spend to be in line with 2021. Most respondents also expect
to maintain or grow their hiring, in line with previous year.
The industry has also set a target to touch USD 350 Bn revenues
by FY 2025-26 with an annual growth rate of 11-14%.
Outlook
Mindtree West Campus, Bengaluru
WITH IN IN IN IT IN
Banking, Financial Services and Insurance (BFSI)
Mindtree enables banks, cards and payments networks,
capital markets institutions, property and casualty (P&C)
carriers, and life and annuity insurance firms to accelerate
digital transformation.
Integrated Annual Report 2021-22
Corporate
Overview
• A leading US flagship airline signed a multiyear contract
with Mindtree. As part of the contract, Mindtree will
support core airline systems, including commercial,
operations and enterprise IT, through business verification
testing services
• A Hi-Tech 5G client selected LTTS as their strategic partner
to establish an extended product development centre for
the adoption of new-age technologies and to accelerate
time-to-market
Telecom and Hi-Tech
technologies selected LTTS as a worldwide strategic
transformation partner to implement and support its loT
initiatives. This multi-year contract includes developing
and managing its loT Condition Monitoring platform and
integrating various products
• A global manufacturer of motion and control
system for the beverage plant of a leading food and
beverage conglomerate. The sustainability-focused
initiative will reduce water wastage and ensure adherence
to local regulations
Implementing a water and wastewater management
•
Industrial Products
At LTTS' Imaging Lab, engineers develop various Innovative Al-based imaging solutions
Statements
• A leading technology company has empanelled LTTS as a
strategic engineering partner for a period of 5 years for its
product and devices portfolio
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• LTTS was empanelled by a global aircraft manufacturer as a
strategic supplier for its engineering and digital services for
5 years to help drive its next-generation programmes
• Strategic Engineering Partner for a US-based automotive Tier
1 company, to provide engineering services for its Electric
Vehicle (EV) product portfolio. As part of the programme,
LTTS is setting up an R&D centre in Krakow, Poland
• Jaunt Air Mobility (Jaunt) awarded LTTS a multi-year USD
100 million+ electric air mobility contract. LTTS will open an
Engineering and R&D Centre in Québec Province to provide
new product development engineering and design services
for the Jaunt Journey eVTOL (electric Vertical Takeoff and
Landing) air taxi
Transportation
Key deal wins
LARSEN & TOUBRO
Medical Devices
• A leading European Med-Tech company named LTTS as its
engineering provider to offer best in class hardware and
software product engineering services and help its 'build
care as a service' business model by smart-enabling
their products
Plant Engineering
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Last year, LTTS identified a set of key focus areas
Big Bets: Electric Autonomous & Connected Vehicles (EACV),
5G, Med-Tech, Al & Digital Products, Digital Manufacturing,
and Sustainability. Investments have been undertaken across
each of these key technology areas, accelerating LTTS's core
culture of innovation. New alliances are being explored to
drive and strengthen this journey, as the Company reaffirms
its commitment to becoming the partner of choice for
customers, engineering sustainable digital transformation
journeys which would make them competition-proof and
future-ready.
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the Six
LTTS is built on the twin pillars of engineering and
technology. The Company continues to strengthen this
foundation by leveraging emerging trends that it feels will
drive relevance in the marketplace for years to come.
cross-industry experience, the Company is set to strengthen
its robust growth trajectory by providing a unique proposition
to customers across industries and domains.
The Indian ER&D sector, valued at USD 31 Bn in 2019, is
well-positioned to harness the favourable conditions and
is projected to be worth over USD 63 Bn by 2025, as per
NASSCOM. As a pure-play ER&D market leader, LTTS stands
to benefit from leveraging its set of well-defined offerings.
With established credentials as an innovation leader and deep
Outlook
Project Rendezvous was initiated within the Company to
implement the learnings of the employee engagement
survey, EMPulse '21. The Project Avatar teams helped
restate the Vision, Mission, and Values of LTTS to prepare
the Company for the journey ahead
•
• LTTS is helping drive private 5G network rollouts for global
organisations to achieve seamless connectivity and unlock
business value. The Company has also unveiled a state-
of-the-art lab as a service model to address the emerging
requirements of its customers
The loT Innovation Hub in Bengaluru is where loT solutions come to life - from connected workers to smart fuel dispensers
Tars Under the O
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•The Company has unveiled eVOLTTS, a first-of-its-kind
EV technology demonstrator platform. It is also focusing
on delivering state-of-the-art telematics and connectivity
solutions, cutting-edge infotainment systems, powertrain
design services, and end-to-end design and development
of automotive components
• NeXSens Lab at the LTTS, Bengaluru Campus was
inaugurated. The lab will serve LTTS' global clientele and
is equipped with state-of-the-art high-precision tools for
catering to all sensorisation requirements
• LTTS has been selected as an engineering partner by
Mavenir and NVIDIA, to accelerate the adoption of the
industry's first converged Al-on-5G. LTTS will support
Mavenir with customisation, integration and deployment of
Al applications on NVIDIA's Al-on-5G unified platform
• LTTS released its first Sustainability Report for the year
2020-21, with a roadmap to achieve carbon and water
neutrality by 2030. As part of its commitment to building a
sustainable business, LTTS signed the Science Based Target
Initiative pledge
LTTS has continued to invest significant time and effort in
strategic initiatives that will propel its technology footprint,
engineering infrastructure and human resources, with the
objective to provide a differentiated experience to
its customers.
Significant Initiatives
• A multi-year plant engineering contract from a leading
global food processing company to provide plant
engineering design services for the client's upcoming
facilities in Europe and North America
• LTTS has been awarded a multi-year programme from
a European Oil & Gas Company to create digital twins
for all its upstream and downstream assets, to reduce
operational costs
LTTS' strength in Engineering and Technology is underscored
in the ratings by key industry analysts, including, Zinnov,
Everest, ISG, ARC, IDC and Nelson Hall, who have consistently
rated LTTS as a leader across various categories.
Headquartered at Knowledge City, Vadodara, L&T Technology Services Limited (LTTS) is a global leader in Engineering and R&D (ER&D) services.
LTTS has had several major deal wins across all verticals.
Large deal bookings touched a new high, led by a marquee
USD 100 million+ deal with Jaunt Air Mobility for an electric
air mobility program, a USD 45 million+ deal win in the EV
segment, and several USD 25 million+ engagements.
LTTS also provides pre-compliance testing and validation
support. It also helps customers with product/compliance
remediation frameworks, complaint management systems,
and regulatory documentation support. LTTS is focusing on
redefining legacy medical product design methodologies
for ensuring the widest possible compliance with diverse
regulatory regimes across territories and regions.
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Overview
CLLDS COLD
84
LTTS provides services and solutions in the areas of software
and digital engineering, embedded systems, engineering
analytics and plant engineering. The Company's customer
base includes 69 Fortune 500 companies and 57 of the
world's top ER&D companies, active across multiple segments.
Its technologists work with global firms to offer smart
solutions and services that drive new product development,
facilitate remote asset management, and enable virtual
product design and prototyping. With its multi-sectorial
engineering prowess, LTTS is continually blending and
integrating ideas and technologies to deliver differentiated
engineering solutions that are uniquely designed to address
complex business challenges.
L&T Technology Services Limited (LTTS) is a leading global
pure-play Engineering Research and Development (ER&D)
services company. It offers consultancy, design, development,
and testing services across the product and process
development life cycle.
Overview
L&T TECHNOLOGY SERVICES
mergers and acquisitions will continue to navigate the
business towards a more profitable growth path.
To support the next phase of growth, Mindtree is making
supply-side more efficient by driving a talent mindset
across the organisation and making talent an integral
part of the organisational fabric, thereby strengthening
employee value proposition. The targeted global investments
across partnerships, large deal solutioning, white space
opportunities, innovative working and delivery models, Go-
To-Talent strategy, gaining mindshare from key stakeholders,
While the COVID-19 pandemic seems to have caused
unimaginable and significant damage, the unprecedented
collective policy efforts by Governments and central banks,
paired with the resilience and innovations of private
enterprises, have helped minimise lasting economic and
physical damage across the world. The pandemic has
accelerated the pace of digitalisation, with businesses
ramping up technology and digital presence. This trend is
likely to continue and will aid in chasing newer avenues of
growth led by innovation, while enhancing efficiency.
Outlook
• A leading European producer of dairy and farming
machinery awarded Mindtree a multiyear contract to
transform, implement, and support digital workplace
services across the globe
• A leading US based managed healthcare and insurance
company selected Mindtree as a preferred partner for
digital transformation and modernisation work
The Company's innovation and cutting-edge work includes
the world's first autonomous welding robot, architecting
the smartest campus in the world, block chaining real estate
assets and solar connectivity drones, among others. The key
differentiators for LTTS' business are its value-maximising
customer-centric innovations, deep domain expertise, and a
multi-vertical presence across major industry segments:
LTTS' Creative Think Studio showcases design aspects of the product to create delightful customer experiences
Transportation
LTTS' Transportation Engineering Services enable OEMS
worldwide to develop next-generation vehicles and
LTTS helps medical device OEMs worldwide accelerate
product development cycles, reduce time to market, deliver
sustained value engineering, and ensure seamless multi-
geography compliant product launches. The Company works
closely with leading global medical device manufacturers
and healthcare providers to offer solutions around remote
medical care, regulatory compliances and approvals, in-vitro
diagnostics, patient mobility solutions, surgical services, home
healthcare, and Medical Internet of Things.
Medical Devices
The Company's digital solutions further enable manufacturers
to upgrade and integrate their legacy systems with smart
platforms to help drive state-of-the-art connectivity and
synergy for transforming business outcomes.
LTTS provides end-to-end solutions across designing,
engineering, project management, handover operations,
and delivery and maintenance of custom digital solutions.
As a leading Engineering, Procurement, and Construction
Management (EPCM) services specialist, LTTS supports all
key stages across a plant's lifecycle – from conceptualisation
to commissioning.
Plant Engineering
Electric Vehicle Lab
Cost-Competitive
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In Media & Entertainment, LTTS provides services across
product engineering, conceptualisation, design and
development, testing and certification, manufacturing
support, maintenance, and value engineering. The Company
is pursuing key partnerships with leading participants in the
emerging OTT (Over The Top) space.
LTTS partners with leading ISVs to deliver application
engineering, VLSI, cloud engineering, product uplift, platform
development and migration, product support, and testing
and certification services.
LTTS supports its semiconductor customers with a range of
services covering hardware system design, platform software
development, modem services, verification and validation,
multimedia, connectivity, and storage.
For the consumer electronics segment, LTTS provides services
in the areas of product conceptualisation, design and
development, platform software development, testing and
certification, manufacturing support, product maintenance,
and product launch.
LTTS' Telecom and Hi-Tech vertical provides engineering
services and solutions across five key domains - Telecom,
Consumer Electronics, Semiconductors, Independent
Software Vendors (ISVS), and Media & Entertainment (M&E).
Telecom & Hi-Tech
sourcing avenues in the post-pandemic global economy.
With digital manufacturing emerging as a major focus area,
LTTS is spearheading digital transformation initiatives for
customers to help unlock the true potential of emergent
technologies in the Industry 4.0 ecosystem.
The Company is also involved in supply chain optimisation
and standardisation to help customers explore alternate
LTTS leverages its deep domain expertise in software,
electronics, connectivity, mechanical engineering, industrial
networking protocols, lloT, smart industry products, test
frameworks, and enterprise control systems to support global
customers. This translates into a robust presence across
building automation, home and office product design, energy
management, process control and machinery design.
Industrial Products
In Rail Transportation, the offerings include cutting edge
signalling systems and full RAMS support for systems and
fleet management.
LTTS' Aerospace offerings cover the widest spectrum across
aero engines, aerostructures and systems, avionics, air traffic
management systems, new-age digital transformation
solutions, urban air mobility and defence.
In the Automotive sector, LTTS partners with global customers
through robust and reliable platform and solution offerings
across key emerging areas, including, Electrical Vehicle (EV)
technologies, Advanced Driver Assistance Systems (ADAS),
and Autonomous Drive (AD) frameworks. It aids customers to
meet and exceed global transport safety protocols, emission
standards, and regulations.
aircraft systems, achieve a faster time-to-market, and drive
innovation across the value chain.
Major Achievements
Corporate
Overview