TECHNOLOGY LEADERSHIP
L&T Annual Report 2015-16 Covers.indd 1-3
13/07/16 4:53 PM
71st Annual Report
2015-2016
L&T Annual Report 2015-16 Covers.indd 4-6
13/07/16 4:53 PM
A. M. Naik
Group Executive Chairman
Dear Shareholders,
The year 2015-16 saw the Indian economy charting
a measured course towards objectives set out by the
Government two years ago. While investment momentum
is still muted in some sectors, the positives to have emerged
are the incremental but important steps taken by the
Government in fi scal correction, infl ation containment,
subsidy reduction, efforts to reinvigorate tax administration
and a thrust on increased investment in key infrastructure
sectors. Private sector and industrial capex, however,
remains subdued on account of paucity of funds in the
private sector.
The global scenario offers less cause for cheer. The
world economy encountered challenges at many levels
last year. These include signifi cant volatility, Eurozone
instability, depression in crude oil and commodity prices,
currency depreciation in emerging markets, and a
lingering slowdown in China. India’s GDP growth - 7.6%
as compared to 7.2% in the previous year - and reduced
fi scal defi cit of 3.9% sends out encouraging signals for
the future.
I believe that the forthcoming year holds promise
of improvement as far as investment momentum is
concerned. The Government’s focus on a slew of recent
initiatives places your company in a favourable position.
Our capabilities in high-tech design and manufacture are
unmatched in industry. This enables us to extend the
‘Make in India’ theme to the upper end of the
technological spectrum, as well as to the strategic
sectors of defence, nuclear power and aerospace. Our
three-decade long association with national defence
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organisations ensures that we have the credentials to
partner with them in the design and manufacture of
defence equipment. We also possess in-house capabilities
to design, equip and build the habitats of the future -
Smart Cities.
Performance Overview
While new order acquisitions have been muted due to your
Company’s focus on disciplined bidding on infrastructure
projects, the fi nancial performance, as a whole, has been
encouraging and has been lauded by Capital Markets.
Order Infl ows, which are the mainstay of your Company’s
dominance in the project business, clocked in at 136,858
crores at the Group level, which represents a decline
of 12% over the corresponding infl ows of the Previous
Year. The muted infl ows were the outcome of increased
competitive price pressures in the power generation and
hydrocarbon sectors.
The unexecuted Order Book stood at an all-time high of
249,949 crores and represents a 7% growth over the
Order Book at the end of the Previous Year. This robust
Order Book position provides your Company with multi-
year forward visibility on Revenues and Margins. The
Company grew revenues in 2015-16 to 102,632 crores,
despite challenges faced in project execution in the form
of delayed clearances and tardy progress payments from
customers. This represents a 12% growth over revenues
in the Previous Year. Losses incurred on Hydrocarbon
projects in 2014-15 were largely avoided in 2015-16 and
Profi ts after Tax at the Group level grew to 5,091 crores
representing a growth of 7% over the corresponding Profi t
in 2014-15.
It gives me pleasure to announce that your Company has
recommended a Dividend of 18.25 per equity share on a
face value of 2 per share for the year. The corresponding
dividend during the previous fi scal was at 16.25 per
equity share.
Internationalisation
GCC countries, our staple international markets, are
experiencing fi scal stress due to low oil prices, and
opportunities in the hydrocarbon space have been
reduced. Core infrastructure such as power transmission
& distribution, hospitals, urban infrastructure, roads and
rail networks, however, continue to see investment and
these areas have yielded signifi cant order wins for us. We
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are also focusing on select countries in Africa and some
parts of South East Asia. We believe that the opportunity
basket that is likely to be provided to us in international
markets will still be suffi ciently large enough to enable
a healthy, geographically-diversifi ed revenue mix. The
unexecuted Order Book from international markets stood
at over 70,000 crores, which translates to 28% of the
total Order Book. This largely comprises orders from diverse
infrastructure areas such as metro rail, power transmission
& distribution, road & expressways and hydrocarbon
sectors.
Going Digital at L&T
Larsen & Toubro is implementing solutions using digital
technologies to make quantum improvements in all key
areas of work. A major step in this direction has been the
setting up of a Digital Group which will ideate, initiate and
implement solutions to deliver results to the business.
The areas where solutions are being developed and
deployed are Tracking and Monitoring performance on
all equipment deployed at construction sites by installing
sensors and gateways; improving productivity and safety of
workmen through tracking and tagging; optimising logistics
and material consumption through GPS and RFID; project
monitoring & control through data and visuals captured
in real-time, and use of modern geospatial technologies
including LiDAR and UAVs for surveys.
Another key area is Analytics that will pull in the data
from all these initiatives into an Analytics engine to deliver
trends, actionable insights and forecast scenarios for
proactive and corrective action.
As technologies and business processes evolve, the group
will continue to develop breakthrough solutions and
evangelize the digital transformation.
Talent Management
Your Company views its people as the cornerstone of
business and its Human Resources policy is geared towards
developing individuals along with the organisation. The
Company has a 7-step leadership development program
which aims to build a leadership pipeline at various levels of
management.
Sustainable Development
Your Company is committed to conserving natural
resources and enhancing social equity to achieve
sustainable progress, while creating value for stakeholders.
Signifi cant initiatives have been undertaken in the areas of
climate change and water conservation. Your Company’s
sustainability performance in energy conservation and
carbon emission intensity reduction was showcased in the
UN - Paris Climate Change Summit 2015. The Company’s
campuses in different parts of the country are focused on
becoming water-positive and zero wastewater discharge
units.
Your Company’s CSR programmes focus on health,
education, skill development and water & sanitation
interventions to contribute to a better quality of life for
the needy.
The total spends on CSR initiatives in 2015-16 by your
Company amounted to 120 crores under eligible items as
defi ned in the Companies Act which translates to 2.36%
of the average annual net profi ts of the Company over the
last 3 years.
Outlook
The thrust given by the Government on core infrastructure
and ‘Make in India’ initiatives continues to give us a healthy
basket of opportunities to tap. Increased allocations by
the Centre and States on infrastructure spending, higher
levels of outlay by cash-rich Public Sector enterprises and
signifi cant funding of infrastructure projects by
bi-lateral and multi-lateral lending agencies is propelling the
investment momentum forward. Several upcoming projects
provide us with a broad perspective of the opportunity
horizon opening up for us in 2016-17.
Segments that hold promise in FY17 include –
1) Infrastructure:
a) Roads – The new political dispensation at the helm
of affairs has kick-started investment in roads and
FY16 saw a signifi cant uptick in ordering of EPC
road contracts by the National Highways Authority
of India. We expect this impetus to continue and to
be augmented by investments in specialised bridges
and tunnels as well as highway orders in some
Middle East countries.
b) Railways – In FY16, your Company continued to
build on its success in bagging orders for the
Dedicated Freight Corridor program currently being
piloted by the Indian Railways. The balance of
orders in this program are likely to be ordered out
in FY17 and your Company will participate in those
bids as well. Some Middle East countries are also
planning investments in conventional rail networks
and your Company will participate in those
programs as and when the opportunity arises.
c) Metro Rail – Your Company has been successfully
executing Metro Rail projects in multiple cities over
the last few years. Urban development authorities
are increasingly viewing metro rail networks as the
ideal solution to urban traffi c decongestion and
our assessment is that this area is likely to see
increased spending in FY17 and beyond, through
the launch of new projects in a number of cities
across the country. Execution of 2 large metro rail
projects won in Saudi Arabia and Qatar in FY14 is
progressing well.
d) Urban Infrastructure – While private sector
investments in Urban Infra have seen lower
investments, particularly in residential real estate,
your Company continues to see a healthy pipeline
of prospects in affordable housing, hospitals, offi ce
space for IT majors and facilities for educational
institutions.
e) Smart World and Communication –
Larsen & Toubro has consistently aligned its
capabilities to national priorities. Presently, there
is a growing need for creating Digital India and
smarter, secure and intelligent solutions to enhance
quality of life. This has led to the rise of smart
cities, advanced security solutions and
communication infrastructure.
In response to this, L&T has integrated its range of
comprehensive offerings in this sector to set up a
dedicated Smart World & Communication business
vertical which offers end-to-end solutions as a
Master Systems Integrator in the areas of Security
Solutions, Communications Network and Telecom
Infrastructure and Smart Infrastructure. With
adequate data and superior analytics, these smart
world solutions will empower city leaders and
planners to make better, more informed decisions,
anticipate problems to resolve them proactively,
coordinate resources to operate more effectively
and effi ciently, thereby enhancing the overall quality
of life.
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f) Water Infrastructure – This area has seen relatively
poor investments over the last decade and such
under-investment in basic water management
resources is leading to seasonal water shortages
across the country. Recognising this critical need,
the Government has increased allocations in this
essential sector recently and your Company expects
to see a surge in revenues from the increased
spends. This will be augmented by the opening
up of fresh investment avenues in the allied
segments of Waste Water Management and Lift
Irrigation programs.
processing and associated pipeline networks in the
Middle East.
5) Defence Sector:
The current Government has made the most credible
effort so far, to indigenise the manufacture of defence
equipment. For L&T, with its long-standing association
with the Ministry of Defence, extensive R&D and
manufacturing muscle, this presents a major
opportunity. We are participating in several bids
for ships and artillery guns, among other programs.
Any order wins for naval vessels will help improve the
capacity utilisation at the Kattupalli Shipyard.
2) Thermal Power Generation:
6) Heavy Engineering:
This sector has been constrained with overcapacity in
the manufacturing of boilers and turbines, delayed
environmental clearances, dearth of fuel availability,
increased diffi culty in obtaining water linkages as well
as long-term funding. FY16, however, saw a number
of projects being ordered which your Company could
not win due to intense price competition. FY17 is likely
to witness ordering of projects aggregating around
8-10 GW and your Company is hopeful of garnering a
signifi cant share.
3) Power Transmission & Distribution:
FY16 continued to see strong ordering by Central and
State power transmission utilities as well as by
countries in the Middle East. Your Company has
secured major orders in this sector and expects the
investment momentum to continue into FY17.
4) Hydrocarbon:
Low oil prices have dampened investments in oil
production facilities. Some Government enterprises,
however, continue to invest in oil production with a
view to bolstering India’s fuel security, offering
opportunities for your Company to leverage its EPC
capabilities.
With India’s commitment made in Paris on climate
change, investment in clean fuel projects is likely to
give opportunities to the Hydrocarbon business.
We are also eyeing opportunities in the domestic
fertiliser sector, as plants opt for capacity
augmentation. On the international front, your
Company is eyeing opportunities in gas production,
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The domino effect of the fall in crude prices has led
to shrinking orders for oil & gas projects globally and
under-utilisation of manufacturing facilities for
hydrocarbon equipment. The integrated steel-making
& forging facility set up to meet the needs of the
hydrocarbon and nuclear power sectors has also been
negatively impacted. The Civil Liability for Nuclear
Damages Act has been a major roadblock and the
same is now being resolved with the formation of a
1,500 crore insurance pool, thus opening up
opportunities for establishing new nuclear power
plants in the near future, for which your Company is
well placed. This could spark a resurgence in nuclear
power investments which would augur well for your
Company’s heavy engineering business.
7) Metallurgical & Material Handling:
With global overcapacities in steel and a fall in
commodity prices, investment in the ferrous and
non-ferrous sectors in India has shrunk considerably.
This has adversely affected a business which is already
impacted by underutilisation.
Fortunately, the outlook is more positive. The green
shoots of recovery in the mining sector is expected to
provide a fi llip to the Material Handling segment. The
business expects to improve utilisation in 2016-17.
8) Electrical & Automation (E&A):
The Electrical & Automation business has registered
muted growth in 2015-16 due to sluggish demand
from the industrial, agriculture and building sectors.
The Company’s array of best-in-class low-voltage and
medium-voltage products continues to provide a
competitive edge, enabling the company to make the
most of the expected revival of domestic demand.
During the year, your Company launched a series of
contemporary Final Distribution products in the
categories of MCBs (Miniature Circuit Breakers), RCCBs
(Residual Current Circuit Breakers), Control Accessories
and Distribution Boards as well as a full programme
of Bus-bar trunking systems for modern buildings and
Intelligent Controllers for agricultural markets. With a
focus on operational excellence, the business expects
to continue delivering profi table growth
9) Realty:
This business, which was launched by your Company
a few years ago, continues to contribute to revenues
and margins through delivery of superior quality
projects. Projects under execution in Mumbai and
Navi Mumbai are progressing well and a residential
housing project launched recently in Bangalore has
been received favourably by way of advance bookings.
The business is slated to shortly launch another project
in Chennai as well as the second phase of its project in
Powai, Mumbai. With a substantial land bank for
development in hand, this business is expected to
deliver steady and profi table revenues over the next
few years.
10) Information Technology and Technology Services
(IT&TS):
The IT&TS business vertical continues to grow and
prosper and your Company intends to list these
businesses through Public Offerings in 2016-17. With
the focus on client mining and growth seen in multiple
verticals such as BFSI, Automotive, Aerospace,
Industrial Products and Process Engineering sectors,
the business is slated to register continued growth and
profi tability.
11) Financial Services:
This business, which was listed in 2011, continues to
grow and had a loan book of over 57,000 crores at
the end of FY16. The business is focusing on portfolio
rationalisation, right-sizing of manpower, and
improving the quality of assets in an effort to enhance
Return on Equity.
12) Development Projects:
Your Company currently has a portfolio of concession
assets in the areas of roads, power generation &
transmission, and a metro rail. Most of these projects
are operational and as such, the infrastructure projects
portfolio is going through a major restructuring
exercise for the Company to continue its efforts to
become more asset light. The metro rail project in
Hyderabad, which is one of the largest
‘transit-oriented-development’ projects in the country,
is progressing satisfactorily and is likely to be fully
comissioned in FY19.
13) Strategic Plans:
Your Company has recently concluded deliberations
on the strategy for the next 5 years and has fi nalised
the contours of this plan. Highlights of this plan
include:
• Focus on execution of the large Order Book in
hand, while selectively participating in new bids
• Gearing up to tap emerging opportunities in the
Defence, Railways, Mining, Smart Cities and Digital
business
• Consistently growing revenues over the plan period
• Steady reduction of Net Working Capital levels
• Exit from the General Insurance business
• Monetisation of road, port and power assets within
the plan period
These steps are expected to result in improved Free Cash
Flows, Profi t after Tax and Return on Equity.
In conclusion, I would like to thank my fellow Board
Members, L&T-ites, customers, vendors and other
stakeholders who have collectively enabled sustainable and
profi table growth of the business.
Thank You
A.M.Naik
Group Executive Chairman
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CONTENTS
Company Information
Organisation Structure
Leadership Team
L&T Nationwide Network & Global Presence
Corporate Social Responsibility
Annual Business Responsibility Report (ABRR) 2015-16
Standalone Financials - 10 Year Highlights
Consolidated Financials - 10 Year Highlights
Graphs
Route Map to the AGM Venue
AGM Notice
Directors’ Report
Management Discussion & Analysis
Auditors’ Report
Balance Sheet
Statement of Profit and Loss
Cash Flow Statement
Notes forming part of Accounts
Auditors’ Report on Consolidated Financial Statements
Consolidated Balance Sheet
Consolidated Statement of Profit and Loss
Consolidated Cash Flow Statement
Notes forming part of Consolidated Accounts
Information regarding Subsidiary Companies
Proxy Form
Shareholder’s Satisfaction Survey Form – 2016
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7
8 - 9
10
12 - 13
14 - 17
18 - 35
36
37
38 - 39
40
41 - 63
64 - 134
135 - 220
221 - 227
228
229
230 - 231
232 - 310
312 - 315
316
317
318 - 319
320 - 389
390 - 399
401 - 402
403 - 404
COMPANY INFORMATION
BOARD OF DIRECTORS
MR. A. M. NAIK
Group Executive Chairman
MR. S. N. SUBRAHMANYAN
Deputy Managing Director & President
MR. R. SHANKAR RAMAN
Whole-time Director & Chief Financial Officer
MR. SHAILENDRA ROY
Whole-time Director & Sr. Executive Vice President
(Power, Heavy Engg. & Defence)
MR. D. K. SEN
Whole-time Director & Sr. Executive Vice President
MR. M. V. SATISH
Whole-time Director & Sr. Executive Vice President
(Buildings, Minerals and Metals)
(Infrastructure)
MR. M. M. CHITALE
Independent Director
MR. SUBODH BHARGAVA
Independent Director
MR. M. DAMODARAN
Independent Director
MR. VIKRAM SINGH MEHTA
Independent Director
MR. SUSHOBHAN SARKER
Nominee of Life Insurance Corporation of India
MR. ADIL ZAINULBHAI
Independent Director
MR. AKHILESH KRISHNA GUPTA
Independent Director
MR. BAHRAM N VAKIL
Independent Director
MRS. SUNITA SHARMA
Nominee of Life Insurance Corporation of India
MR. THOMAS MATHEW T.
MR. AJAY SHANKAR
Independent Director
Independent Director
MR. SUBRAMANIAN SARMA
Non-Executive Director
MRS. NAINA LAL KIDWAI
MR. SANJEEV AGA
MR. NARAYANAN KUMAR
Company Secretary
Registered Office
Auditors
Solicitors
Independent Director
Independent Director
Independent Director
Mr. N. Hariharan
L&T House, Ballard Estate, Mumbai - 400 001
M/s. Sharp & Tannan and M/s.Deloitte Haskins & Sells LLP
M/s. Manilal Kher Ambalal & Co.
Registrar & Share Transfer Agents
Karvy Computershare Private Limited
71st ANNUAL GENERAL MEETING AT BIRLA MATUSHRI SABHAGAR, 19, MARINE LINES, MUMBAI - 400 020 ON FRIDAY, AUGUST 26, 2016 AT 3.00 P.M.
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8
9
Leadership Team
A. M. Naik
Group Executive Chairman
S. N. Subrahmanyan
Dy. Managing Director &
President
R. Shankar Raman
Chief Financial Offi cer
S. N. Roy
Sr. Executive Vice President
(Power, Heavy Engineering
& Defence)
Subramanian Sarma
CEO & Managing Director
(L&T Hydrocarbon Engineering)
D. K. Sen
Sr. Executive Vice President
(Infrastructure)
M. V. Satish
Sr. Executive Vice President
(Buildings, Minerals & Metals)
S. C. Bhargava
Sr. Vice President
(Electrical & Automation)
Hasit Joshipura
Head - Corporate Centre
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www.Larsentoubro.com
Engineering Change
Partnering Growth
L&T partners the nation, industry and people to build a newer, brighter future. In critical sectors, we provide the
technology and the engineering and construction expertise to rewrite the rules. And transform glorious vision into
glittering reality.
Technology I Engineering I Projects
Construction I Manufacturing
Regd. Offi ce: Larsen & Toubro Limited, L&T House, N. M. Marg, Ballard Estate, Mumbai - 400 001, INDIA CIN: L99999MH1946PLC004768
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Nationwide Network
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Global Presence
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Corporate Social Responsibility
Education and skill development are the foundations upon which self-sufficient livelihoods are built.
Since the Company’s inception, care
and concern for the underprivileged
communities has been a core
value at L&T. Reaching out to the
disadvantaged with a view to
positively impacting the quality
of their lives is a spontaneous
and natural process across L&T’s
establishments. Through our CSR
programmes, we contribute to the
nation’s developmental agenda as
well as align with the UN Social
Development Goals and address
the most pressing needs – water,
1414
sanitation, education, health and
skill development. For our CSR
programmes, the implementation
process is as critical as our goals
and their impact. We view our
benefi ciaries as partners on a journey
towards betterment. Developmental
plans are devised in consultation with
NGOs who understand their needs
best. Architects of their own future,
the disadvantaged are intensely
motivated to sustain our programmes
– and ensure their success.
Life is a circle, and the joy we give
others is our gift to ourselves.
The Joy of Clean Water
Many villages in India have to
struggle for water and sanitation.
The unavailability of safe drinking
water leads to increasing morbidity
and mortality rates. It also
negatively impacts educational
attainments, migration and livelihood
opportunities.
Our Integrated Community
Development Programme has
been launched in three states,
to begin with, and focuses on
holistic development in water
and sanitation, education, health
and skill development, based on
need-assessment. We are working
towards enabling water-stressed rural
communities to be self-suffi cient in
water for drinking, sanitation and
agriculture.
we have built check dams to ensure
water supply during the dry months.
Cultivating two crops a year instead
of one, the villagers now need not
migrate to cities for seasonal work.
By helping meet the basic need
for water and sanitation, we lay
the foundation for progress and
development.
The Joy of Learning
In several of Maharashtra’s
drought-prone agricultural areas,
Our social interventions covering
educational initiatives focus on
providing education, developing
infrastructure and enhancing the
learning experience.
We enrich education in primary
schools through innovative learning
methodologies. We enrich the
school environment by providing
infrastructure ranging from building
classrooms and playgrounds as
well as equipping them with digital
learning tools, benefi tting rural and
urban schools serving impoverished
communities. After-hours ‘Single
1515
Our initiatives in mother-and-child care, women’s health and skill development help empower underprivileged women.
Teacher’ schools help children
improve their learning rates. We
support pre-schools, set up computer
laboratories, provide teaching aids
and uniforms and augment teacher
capacity.
We believe that education is best
imbibed when presented in ways
that spark interest. We, therefore,
infuse joy into learning in many
small ways. Our Science-on-Wheels
van visits schools, giving children
the opportunity to experience the
thrill of hands-on experiments.
Summer camps and sports activities
help pupils develop social skills.
Extra-curricular outings help widen
children’s horizons.
The Joy of Good Health
Timely access to quality health care
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can be the core differential that
enables families to lead productive
and prosperous lives. Often,
economically backward communities
are further pushed into poverty due
to poor health and the rising costs of
medical care.
We have set up community
health centres at our facilities at
Ahmednagar, Chennai, Coimbatore,
Kansbahal, Mumbai, Surat and
Vadodara. They focus on reproductive
health, and conduct diagnostic and
clinical camps and programmes
that support maternal and child
healthcare, immunisation and health
education.
Regular health check-up camps are
held in schools and pre-schools.
L&T’s HIV/AIDS management
initiatives include awareness camps
(particularly for high-risk groups),
Anti-Retroviral Therapy, counselling
and testing.
Artifi cial kidney dialysis centres for
the underprivileged have been set up
at L&T’s Health Centres at Chennai,
Mumbai, Thane and Vadodara.
By putting smiles on the faces of
mothers and children, by preventing,
detecting and curing disease,
by educating people on matters
pertaining to health, we help
spread joy.
The Joy of Self-suffi ciency
To empower the marginalized youth
of the country with marketable skills
Learning prepares gen-next for the future.
and help the nation to reap the
benefi ts of the demographic dividend
of having a large young population,
L&T has set up vocational institutes
and has in place programmes
that impart skills in several trades
to enhance the employability of
underprivileged youth.
Our Construction Skills Training
Institutes at nine locations impart
free training to rural and urban youth
in basic construction trades. To
empower underprivileged women,
we organise vocational training
programmes in the areas of tailoring,
beautician skills, home nursing and
food processing. Trade in hand,
they are able to supplement their
family income as well as invest in
the education and health of their
families, especially the children.
Vocational training enables these
people to become self-suffi cient,
elevates their social standing and fi lls
their lives with joy.
The Joy of L&T-eering
We are proud of our employees, our
L&Teers, who contribute resources
such as time and skills for the benefi t
of the underprivileged. All across our
facilities, we have been providing
employees with more and more
opportunities to volunteer and boost
employee engagement with a social
cause.
L&Teers dedicatedly teach English
and Maths to children at Community
Learning Centres and have been
mentoring them as well, encouraging
them to realise their potential
despite the odds. Short science fi lms
have been dubbed into regional
languages so that many more
children can access quality science
education. Educational trips and
creativity workshops organised by
L&Teers are both entertaining and
educational. Blood donations and
community health camps saw the
participation of many employees.
L&T-ites passionately supported
various causes through Marathons
and melas in which items made by
the underprivileged are displayed.
Volunteering activities help our
people to relate better to each
other as well as to the organisation,
and gives them a sense of deep
satisfaction.
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ANNUAL BUSINESS RESPONSIBILITY REPORT 2015-16
Sustainability is our constant endeavour to create products, services and environs that will enable all L&T stakeholders,
society and the planet to thrive, today and tomorrow. The Company is focused on meeting the needs of the future with
the resources of the present.
This report conforms to the Business Responsibility Reporting (BRR) requirement of the Securities & Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’) and the National Voluntary
guidelines (NVG) on Social, Environmental and Economic Responsibilities of Business released by the Ministry of
Corporate Affairs, India. Furthermore, L&T publishes its sustainability performance in a Sustainability Report which is
prepared in accordance with Global Reporting Initiative (GRI) guidelines and is externally assured. All the Sustainability
Reports published till date can be accessed at www.Lntsustainability.com.
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
1. Corporate Identity Number (CIN) of the Company: L99999MH1946PLC004768
2. Name of the Company: Larsen & Toubro Limited
3. Registered address: L&T House, Ballard Estate, Mumbai 400 001, India
4. Website: www.Larsentoubro.com
5. E-mail id: sustainability-ehs@Larsentoubro.com
6. Financial Year reported: 1st April 2015 - 31st March 2016
7. Sector(s) that the Company is engaged in (industrial activity code-wise):
Group Class
Sub-Class Description
271
2710
27104 Manufacture of electric motors, generators, transformers and electricity distribution and
control apparatus
282
2824 28246
Manufacture of parts and accessories for machinery / equipment used by construction and
mining industries
301
3011 30111
Building of commercial vessels, passenger vessels, ferry boats, cargo ships, tankers, tugs,
hovercraft (except recreation type hovercraft), etc.
30112
30114
Building of warships and scientifi c investigation ships, etc.
Construction of fl oating or submersible drilling platforms
410
421
4100 41001
Construction of buildings carried out on own-account basis or on a fee or contract basis
4210 42101
Construction and maintenance of motorways, streets, roads, other vehicular and pedestrian
ways, highways, bridges, tunnels and subways.
42102
Construction and maintenance of railways and rail-bridges
422
4220 42201
Construction and maintenance of power plants
42202
42901
Construction / erection and maintenance of power, telecommunication and transmission lines
Construction and maintenance of industrial facilities such as refi neries, chemical plants, etc.
4659 46594
Wholesale of construction and civil engineering machinery and equipment
6810 68100
Real estate activities with own or leased property
7110 71100
Architectural and engineering activities and related technical consultancy
465
681
711
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8. List three key products/services that the Company manufactures/provides (as in balance sheet)
1. Construction and project-related activity
2. Manufacturing and trading activity
3. Engineering services
9. Total number of locations where business activity is undertaken by the Company
i. Number of International Locations: 35
ii. Number of National Locations: 100
10. Markets served by the Company – Local/State/National/International/: All
SECTION B: FINANCIAL DETAILS OF THE COMPANY
1. Paid up Capital (INR) : 186.295 Crores
2. Total Turnover : 60415 Crores
3. Profit after taxes : 5311.46 Crores
4. Total Spending on CSR as a % of Profit after tax (%): 2.25%.
5. List of activities in which expenditure in point 4 above has been incurred:
i. Health
ii. Education
iii. Skill Development
iv. Water & Sanitation
SECTION C: OTHER DETAILS
1. Does the Company have any Subsidiary Company/ Companies?
Yes.
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate
the number of such subsidiary company(s):
Yes. The Business Responsibility (BR) initiatives of the Company are extended to the Subsidiary/Associate
Companies and they are also encouraged to carry out various activities independently. Major subsidiaries
such as Larsen & Toubro Infotech Limited, L&T Hydrocarbon Engineering Limited participate in our Business
Responsibility initiatives.
3. Do any other entity/entities (e.g. suppliers, distributors, etc.) that the Company does business with participate in the
BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities. [Less than 30%, 30-60%,
More than 60%]:
Yes. The Company promotes BR initiatives in its value chain. At present, less than 30% of its suppliers/
distributors participate in BR initiatives.
19
SECTION D: BR INFORMATION
1. Details of Director/Directors responsible for BR
a) Details of the Director/Directors responsible for implementation of the BR policy/policies
• DIN Number: NA
• Name: Dr. Hasit Joshipura
• Designation: Head - Corporate Centre & Member of the Executive Management Committee (EMC)
b) Details of the BR head
S. No
Particulars
1
2
3
4
5
DIN Number (If applicable)
Name
Designation
Telephone Number
Email ID
Details
Not Applicable
Major General Gautam Kar (Retd.)
Head Corporate Infrastructure & Administrative Services
+91-22-67052447
sustainability-ehs@Larsentoubro.com
2a. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)
Name of principles:
P1 – Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
P2 – Businesses should provide goods and services that are safe and contribute to sustainability throughout their
life cycle
P3 – Businesses should promote the well-being of all employees
P4 – Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who
are disadvantaged, vulnerable and marginalized
P5 – Businesses should respect and promote human rights
P6 – Businesses should respect, protect, and make efforts to restore the environment
P7 – Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
P8 – Businesses should support inclusive growth and equitable development
P9 – Businesses should engage with and provide value to their customers and consumers in a responsible manner
S. No
(A) Details of Compliances
(Reply in Yes/No)
P1
P2
P3
P4
P5
P6
P7
P8
P9
Do you have a policy/policies for
Has the policy been formulated in
consultation with the relevant
stakeholders?
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Does the policy conform to any national/
international standards? If yes, specify.
(50 words)
Yes. The policies are aligned with the principles of NVG guidelines and
conform to international standards of ISO 9001, ISO 14001, OHSAS 18001
and ILO principles.
Has the policy been approved by the
Board?
Yes.
Has it been signed by MD/Owner/CEO/
Appropriate Board Director?
Signed by the Group Executive
Chairman
Y
Y
Y
Y
Y
Y
Y
Y
Y
1
2
3
4
20
S. No
Questions
5
6
7
8
9
Does the Company have a specifi ed
committee of the Board/ Director/Offi cial
to oversee the implementation of the
policy? Yes.
Indicate the link for the policy to be
viewed online?
Has the policy been formally
communicated to all relevant internal and
external stakeholders?
Does the Company have in-house struc-
ture to implement the policy/policies?
Does the Company have a grievance
redressal mechanism related to the policy/
policies to address stakeholders’ griev-
ances related to the policy/policies?
10
Has the Company carried out independ-
ent audit/evaluation of the working of this
policy by an internal or external agency?
P1
Y
P2
Y
P3
Y
P4
Y
P5
Y
P6
Y
P7
Y
P8
Y
P9
Y
www.Lntsustainability.com
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
2b. If answer to question at Serial No. 1 against any principle, is ‘No’, please explain why.
(Tick up to 2 options)
S. No
Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
1
2.
3.
4.
5.
6.
The Company has not understood the
principles
The Company is not at a stage where
it fi nds itself in a position to formulate
and implement the policies on specifi ed
principles
The Company does not have fi nancial or
manpower resources available for the task
It is planned to be done within next 6
months
It is planned to be done within the next
1 year
Any other reason (please specify)
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
3. Governance related to BR
(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO meet to assess the
BR performance of the Company: Within 3 months, 3-6 months, Annually, More than 1 year:
Annually
(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How
frequently it is published?
Yes, the Company has been publishing its Sustainability Report annually as per the Global Reporting
Initiative (GRI) framework since 2008. The sustainability reports are externally assured. We are
following GRI – G4 (Fourth Generation) guidelines and the 2015 report is ‘In Accordance – Comprehensive’
report. The reports can be accessed at www.Lntsustainability.com
21
SECTION E:
PRINCIPLE 1: BUSINESSES
SHOULD CONDUCT AND
GOVERN THEMSELVES WITH
ETHICS, TRANSPARENCY
AND ACCOUNTABILITY
L&T is a professionally managed
Indian multinational, committed
to total customer satisfaction and
enhancing value for all stakeholders.
The Company’s philosophy on
corporate governance is built on a
rich legacy of fair and transparent
governance and disclosure
practices. This includes respect for
human values, individual dignity
and adherence to honest, ethical
and professional conduct. Our
commitment to these values is
articulated through the Company’s
Vision and policies, which are
extended to the operations of
all subsidiaries and associate
companies.
L&T-ites are guided by the Code of
Conduct (CoC), which is featured on
the Company’s Intranet. Every new
employee is introduced to the CoC
through a detailed online module of
the Company’s Any Time Learning
(ATL) System. The critical areas of
the CoC are also included in the HR
Orientation Training. In a unique
initiative, each individual employee
of the Company is required to
confirm his/her acceptance of
the Code of Conduct, Corporate
Governance policies and guidelines
in writing or online. This is a ‘once
a year’ requirement, which creates
awareness on the CoC, policies
and guidelines, and encourages
employees to take responsibility for
their actions.
22
The Board members and senior
management complies with the
CoC. The Group Executive Chairman
makes an Annual Declaration to the
shareholders on compliance with
the Company’s CoC by the senior
management.
The CoC Apex Committee,
constituted by the Executive
Management Committee (EMC) of
the Company, functions as the Apex
Body to interact, inform, advise
and coordinate with the EMC on
all issues relating to the CoC. It
consists of a minimum of five senior
members and is required to meet at
least twice a year. The Compliance
Officer acts as the Ex-Officio
Secretary of the Apex Committee.
The key function of the Committee
is to ensure implementation of the
CoC across the Company and deal
with instances of non-compliance,
apart from overseeing the
functioning of the unit-level CoC
Committees and advising the EMC.
Unit-level CoC Committees consist
of at least four members, headed
by the Unit Head, along with Head
of Accounts, Head of HR and a
senior member from Operations.
The Unit-level Committees are
required to meet at least once in a
quarter. The role of the Committee
is to create awareness of the CoC,
motivate employees to follow it,
monitor compliance and investigate
instances of non-compliance.
Codified policies publicly
affirm the organisation’s
commitment, govern
actions and provide clarity
of direction.
The Company’s Whistle Blower
Policy encourages and enables
employees to report, without fear,
any wrongdoings or unethical
or improper practice which may
adversely impact the image and/
or the financials of the Company,
through a written report to
Whistle Blowing Investigation
Committee’s address. The Company
has established a vigil mechanism
for employees and directors to
report concerns about unethical
behaviour, actual or suspected fraud
or violation of the Company’s CoC
or ethics policy. The management
assures maintaining anonymity of
the whistleblower at all times. The
policy also provides for access to the
Chairman of the Audit Committee.
The Company has formulated an
‘Environmental & Social Code of
Conduct for Suppliers’ covering
specific clauses on Ethics and
Transparency. More than 400
Suppliers are signatory to this code.
Details relating to stakeholder
complaints are included in the
Director’s Report Section of this
Annual Report.
The Larsen & Toubro Group of
Companies has set benchmarks
in implementing good Corporate
Governance practices. Imbibed
by its employees as a way of life,
these practices have created a high
governance culture in the Company.
PRINCIPLE 2: BUSINESSES
SHOULD PROVIDE GOODS
AND SERVICES THAT ARE
SAFE AND CONTRIBUTE
TO SUSTAINABILITY
THROUGHOUT THEIR LIFE
CYCLE
Our portfolio includes products
and services for the Infrastructure,
Power, Heavy Engineering, Electrical
& Automation (E&A), Metallurgical
& Material Handling (MMH),
Hydrocarbon, IT & Technology
Services and Financial Services
segments. In all our businesses, it is
our endeavour to extend safe goods
and services that contribute to
sustainability throughout their life-
cycle. We ensure that sustainability
aspects, risks and opportunities are
integrated into our engineering and
design.
Our construction and infrastructure
projects ensure minimal
environmental impact and safe
operations. All our campuses
work towards reducing our
environmental footprint, building
a culture of safety and enhancing
community value. We have 15
Green Buildings, one Green
Factory, 8 water-positive campuses,
and all 28 major campuses
have achieved zero waste-water
discharge status. Energy-efficiency
and carbon footprint reduction
are given substantial importance
during the course of production.
All the products and projects are
accompanied by adequate labels
and signage systems as well as
Operation & Maintenance manuals.
The Company offers comprehensive
training to customer personnel as
well.
Sustainability begins at home. Our facility at Kattupalli is one of the many LEED (Leadership in
Energy and Environmental Design) certified green buildings across L&T’s campuses.
23
Apart from these initiatives, the
Company has a dedicated and
expanding green products and
services portfolio which is aimed
at helping its customers ‘Go
Green’. The portfolio covers Green
Buildings, Mass Rapid Transit
Systems like metro and mono rail,
solar power plants built on EPC
basis, fuel switch projects, coal
gasifiers, supercritical thermal
power plants & equipment,
power transmission & distribution
systems, energy-saving electrical
& automation solutions, etc. The
Company’s construction business
builds Green Buildings, sourcing
most construction material locally,
and helps customers to reduce
energy and water consumption, and
utilise recycled material.
Energy-efficient products and
systems from the Company’s
Electrical & Automation business
include Power Management
Systems, AC drives, smart metering
systems, etc. The Heavy Engineering
business manufactures coal
gasifiers, utilising coal efficiently.
With the aim of extending our
sustainability practices to our
value chain, we have formulated
an Environment and Social Code
of Conduct for our suppliers. It
advocates environmental footprint
reduction, occupational health
and safety and socially-responsible
business practices. The Company
conducted an environmental and
social assessment of selected
suppliers to help them identify
energy, water and resource-saving
opportunities. It also conducts
capacity-building programmes for
vendors and sub-contractors, and
provides training and technical
expertise to improve operational
efficiency.
In an effort to enhance local
sourcing, around 80% of the
Company’s requirements are met
by local suppliers. It evaluates
various options for cost-effective
and sustainable transportation
of products and services, and
has initiated the capture of
carbon emission from material
transportation. The Company
works with its vendors and sub-
contractors to improve and build
their capacity and capability in
manufacturing complex products
L&T’s range of AC Drives helps industries maximize energy-efficiency.
24
and equipment. Introducing
sustainability practices in the
supply chain is a key step towards
improving their environmental
and social performance. This year,
the Company’s Heavy Engineering
business initiated a business-wide
environmental and social supplier
assessment programme.
The Company promotes recycling
and the use of alternative materials.
Our products are ‘engineered to
order’ based on specific customer
requirements, limiting the scope
for material recycling. We utilise
alternative materials such as fly ash,
crushed sand and blast furnace
slag. Steel scrap, zinc waste, etc.,
are reclaimed as well. As a part of
our sustainability roadmap, we are
increasing recycling of products and
industrial waste at campuses and
project sites.
PRINCIPLE 3: BUSINESS
SHOULD PROMOTE THE
WELL-BEING OF EMPLOYEES
Our employees are the force
powering the Company’s growth
engines. It is the creative energy
of our people that powers the
Company, and we nurture our
people with a continuous loop of
training, motivation, leadership
development, and growth. The
Company’s Corporate Human
Resource Policy has a robust
framework which inspires
innovation and creativity. Apart
from this, we have the Corporate
Environment, Health & Safety (EHS)
Policy, Whistle Blower Policy, Policy
for Protection of Women’s Rights
at the Workplace and Code of
Conduct covering human rights
protection.
The Leadership Development Academy at Lonavala near Mumbai is one of the few institutions of
its kind in India. It provides the springboard for Team L&T to attain the next level of professional
growth.
Safety techniques need to be scientifically
disseminated. L&T has set up a one-of-a-
kind Safety Innovation School in Hazira.
The Company is a merit-based
organisation, and believes in an
inclusive approach to employment.
No discrimination is made on the
basis of caste, religion, region,
gender or physical disability.
The Company complies with the
principles of the United Nations
Global Compact, and human rights
clauses are also included in the
contracts with vendors and partners.
The Company directly employs
93 differently-abled persons.
The value chain also employs 31
differently-abled persons. The
Company recognises Employee
Unions and associations affiliated
with different trade unions at its
manufacturing facilities. 8.34% of
permanent employees are covered
under this category. During the
year, no complaints were received
relating to child labour, forced
labour, involuntary labour or sexual
harassment at the workplace.
L&T
employees
Number of
permanent
women
employees
Contract
workmen
Refer “Standalone
fi nancials – 10-year
Highlights” section
of Annual Report
2,036
3,01,311
Total workforce
We provide employees with
continuous training in functional
and behavioural areas to groom
them for the challenges of
tomorrow and help realize
leadership potential. Our Leadership
Development Academy (LDA)
at Lonavala, a unique corporate
university in India, collaborates with
the world’s most reputed institutions
to provide a global perspective for
L&T’s multi-tier leadership process.
Apart from this, a wide range of
technical, functional as well as
managerial training programmes are
held for the employees at Technical
Training Centres in Mumbai (Madh,
Mahape) and Mysuru, and at Project
Management Institutes (Vadodara
and Chennai).
Safety is a thrust area for the
Company. Regular safety training,
tool-box talks, mock drills and
specific safety interventions help
build a safe work culture within
the organisation. New employees
are given training in multiple
disciplines including environment,
health and safety, human rights,
climate change and sustainable
development. All contract workmen
receive mandatory safety training
before commencing work. Over
2.77 million man-hours of training
was provided in FY 2015-16 to the
permanent employees. The safety
performance of the Company is
reviewed by Board of the Company
on a quarterly basis.
Our ‘Working on Wellness’
programme is targeted at employee
health interventions in six critical
areas – cancer, diabetes, cardiac
disease, obesity, ergonomic issues
and stress. Through counselling,
awareness sessions, diagnostic
camps and workshops across
locations we increase awareness
on these topics. The Health Risk
Index questionnaire is an important
tool used to assess employees’
perspective and design preventive
healthcare interventions. The
Company constantly innovates to
be an employee-friendly brand, and,
last year, was ranked among the top
companies to work for by a Business
Today survey.
PRINCIPLE 4: BUSINESSES
SHOULD RESPECT THE
INTERESTS OF, AND BE
RESPONSIVE TOWARDS
ALL STAKEHOLDERS,
ESPECIALLY THOSE WHO
ARE DISADVANTAGED,
VULNERABLE AND
MARGINALIZED
25
As one of India’s most widely
held companies with diverse
and transparent shareholding,
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 processes. The
Company engages with its identified
stakeholders on an ongoing basis
through business-level engagements
and structured stakeholder
engagement programmes. We
maintain our focus on delivering
value to all our stakeholders,
especially the disadvantaged
communities.
The CSR programmes run by
the Company are focused
primarily on those sections of
the local communities which are
disadvantaged, vulnerable and
marginalized. We are conscious of
the impact of our operations on
the communities around and strive
to contribute positively to improve
their standard of living;
through our interventions in water
& sanitation, heath, education and
skill development.
Further details of our CSR
programmes and approach are listed
in Principle 8.
The Company has a dedicated
Corporate Brand Management &
Communications department which
facilitates an on-going dialogue
between the organisation and
its stakeholders. Communication
channels include:
26
For External
Stakeholders
For Internal
Stakeholders
Stakeholder-
engagement
sessions
Employee-
satisfaction
surveys
Employee
engagement
surveys for further
improvement
in employee-
engagement
processes
Circulars,
messages from
Corporate and
Line Management
Corporate Social
initiatives
Welfare initiatives
for employees
and their families
Online News
Bulletins to
convey topical
developments
A large bouquet
of print and
on-line in-house
magazines -
Some location-
specifi c, some
business-specifi c,
a CSR programme
newsletter.
L&T Helpdesk,
toll-free number
Client-
satisfaction
surveys
Regular
business
interaction,
supplier, dealer
and stockist
meets
Periodic
feedback
mechanism
Press Releases,
Infodesk - an
online service,
dedicated email
id for investor
grievances
AGM
(Shareholders
interaction)
Investors meet
and shareholder
visits to works
A corporate
website that
presents an
updated picture
of capabilities &
activities
Access to the
business media
to provide
information
and respond to
queries
PRINCIPLE 5: BUSINESSES
SHOULD RESPECT AND
PROMOTE HUMAN RIGHTS
The Corporate Human Resource
Policy of the Company is in line with
the Universal Declaration of Human
Rights, the ILO Core Conventions
on Labour Standards and the UN
Global Compact.
The Policy for Protection of
Women’s Rights at the Workplace
sets out objectives, applicability and
structure of committees and process
to redress complaints.
The Company is also a member
of the Global Compact Network
India and is committed to
honouring human rights within
its operations. Apart from this,
the Company complies with the
applicable local laws and regulatory
requirements,such as the Factories
Act 1948, The Building & Other
Construction Workers (Regulation
of Employment & Conditions of
Service) Act 1996, the Central Rules
1998 and the Industrial Disputes Act
1947.
We ensure that human rights
clauses (including those that deal
with child or forced labour) are
extended to our sub-contractors as
part of their contract documents,
and are strictly adhered to within
our Subsidiary and Associate
companies. Employees are sensitized
on human rights through induction
training programmes, interactive
sessions, intranet, policy manuals
and posters.
We propagate our values across
the supply chain through our
‘Environmental & Social Code of
Conduct’ for our suppliers. The
assessment of our key suppliers
based on their environmental
and social performance helps in
identification of various resource-
saving opportunities, in addition
to compliance with applicable
environmental and social regulatory
requirements.
There were no reported complaints
related to human rights violations
during the year.
PRINCIPLE 6: BUSINESS
SHOULD RESPECT,
PROTECT, AND MAKE
EFFORTS TO RESTORE THE
ENVIRONMENT
The Company recognises the
importance of bringing about an
equitable future which is in greater
harmony with the environment. Our
Corporate Environment Health and
Safety policy spells our commitment
to conserve the environment
in all areas of our operations.
The Company has established a
comprehensive system to identify
and assess potential environmental
risks and opportunities in its
operations and that of its Subsidiary
and Associate Companies. Its key
suppliers are also encouraged to
follow its practices.
We are committed to the eight
missions of the National Action
Plan on Climate Change (NAPCC)
instituted by the Government
of India. Progressively, we have
been investing in products and
processes that promote sustainable
growth - enhancing energy security,
developing low-carbon technologies
for building infrastructure,
spreading sustainability knowledge
and increasing our green cover.
The Company is focused on
maximising energy-efficiency and
reducing greenhouse gas (GHG)
emission intensity. Our pursuit of
renewable energy solutions has
helped us to reduce our carbon
footprint across businesses. Our
other environment preservation
initiatives are promotion of green
building construction, enhancement
of green cover, provision of solar
and renewable energy solutions to
customers and capacity-building
for environmental management.
Since 2009, the Company has
been annually reporting its carbon
emissions to the Carbon Disclosure
Project.
The Company adheres to all
pollution control standards set by
regulatory bodies like Central and
State Pollution Control Boards.
Environmental regulatory approvals
are sought prior to commencement
of operations at units and project
sites. Regular checks are
conducted by internal and
independent auditors / assessors
to ensure compliance with relevant
environmental regulations, and
compliance reports are submitted
to Central Pollution Control Board
(CPCB) / State Pollution Control
Boards (SPCB) whereever applicable.
The Company has more than 25
Bureau of Energy Efficiency (BEE)
Certified energy managers and
energy auditors to conduct energy
audits at its units.
The Company’s Board of
Directors has complete access
to the information within the
organisation. This includes reports
on effluents or pollution issues. All
manufacturing units and service
sites are encouraged to develop and
maintain a management system
based on ISO 14001 and OHSAS
18001. During the financial year,
there are no pending show cause/
legal notices from CPCB/SPCB.
As a part of a Company-wide effort
to protect the environment, and in
accordance with the circular issued
by the Ministry of Corporate Affairs,
L&T’s solar solutions help harness the unlimited power of the sun.
27
intensity has declined steadily over
the years. Across all the Company’s
manufacturing locations, various
water management initiatives are
in place, such as water auditing
& footprint mapping, rainwater
harvesting, industrial and domestic
wastewater treatment and reuse.
Eight of the Company’s campuses
have been certified as ‘Water
Positive’ by an independent
assurance provider. All 28 major
units continue to be zero-
wastewater-discharge units.
The Company’s efforts in water
conservation are supplemented by
its CSR programmes and the Larsen
& Toubro Public Charitable Trust
by focusing on water management
projects in tribal and drought-
prone regions of India. Over 200
check dams were constructed in
the Dahanu and Talasari blocks
of Maharashtra, in collaboration
with voluntary organisations. The
Company’s Integrated Community
Development (ICD) Programmes
identified water-stressed locations
in Rajasthan, Maharashtra and
Tamil Nadu, and initiated watershed
development activities in over 30
villages to provide access to drinking
water and sanitation for the
impacted communities.
Fostering Biodiversity
This year, the Company planted
3.09 lakh trees across its campuses
and project sites, taking its tally
to 1.5 million trees in the last five
years. The Company has released
a guidance document on tree
plantation and maintenance for
its campuses and project sites.
The Company understands the
importance of biodiversity and
need to protect nature’s precious
resources. Studies conducted at
six campuses showed that 1565
tonnes of carbon per year are
sequestered at these campuses.
Several initiatives have been taken
to protect biodiversity in and around
units, with emphasis on growing
native tree species.
PRINCIPLE 7: RESPONSIBLE
PUBLIC ADVOCACY
The Company actively participates
in industrial forums and professional
bodies to put forth the larger
interest of industry. The senior
leadership team offers their
expertise and insights during public
Government of India, shareholders
have been given the option of
receiving documents related to
general meetings, Audited Financial
Statements, etc., through e-mail
instead of printed copies.
Salient features of the Company’s
green initiatives include:
Increasing use of renewable
energy
Power Purchase Agreements at
our Powai, Hazira and Chennai
campuses are in place with
Renewable Energy Power Producers
to draw renewable energy as a
substitute to fossil-fuel-generated
electricity.
Carbon footprint mapping and
reduction
Life cycle assessment - from cradle
to gate - has been conducted
for products manufactured by
the Heavy Engineering business,
Powai. Results show that 40%
of the total carbon footprint is
generated during the in-house
fabrication process. The rest
is caused by activities outside
Company premises. Initiatives
taken at the Powai campus include:
investments in renewable energy,
reduction in material consumption
and enhancing the product’s energy
efficiency.
The Company plans to conduct
similar studies for the green
buildings constructed by its
construction business, and plans
to extend it to other products and
services. In addition to reducing
its own carbon footprint, it offers
customers a bouquet of green
products and services. Sales of
green products and services are
contributing an increasingly larger
share to the Company’s total
revenue.
Water Conservation
The Company’s water consumption
All our campuses have a green cover.
28
policy formulation. The Company
actively partners with a number
of institutions and associations,
including:
• Association of Business
Communicators of India
• Associated Chambers of
Commerce and Industry of India
(ASSOCHAM)
• Bombay Chamber of Commerce
& Industry (BCCI)
• Bureau of Indian Standards (BIS)
• Construction Industry
Development Council (CIDC)
• Confederation of Indian Industry,
Centre of Excellence for
Sustainable Development
(CII-CESD)
• CII – Green Business Centre (GBC)
• Federation of Indian Chambers of
Commerce and Industry (FICCI)
• Indian Electrical and Electronics
Manufacturers Association
• Indian Institute of Chemical
Engineers (IIChE)
• National Safety Council (NSC)
• National Fire Protection Institution
(NFPI)
The Company also interacts
regularly with the Indian Institute
of Corporate Affairs (IICA) on
CSR-related aspects and with the
the Confederation of Indian Industry
Centre of Excellence for Sustainable
Development on sustainability
policies and regulations. We are also
part of the working teams on the
Environmental & Recycling Council
of CII, BCCI - Environment, Health
& Safety (EHS) Committee.
PRINCIPLE 8: SUPPORT
INCLUSIVE GROWTH
The Company’s CSR policies
are structured around the
theme ‘Building India’s Social
Infrastructure’ with the objective
of maximising their impact. Our
Integrated Community Development
(ICD) Programme is aligned with
the UN’s Sustainable Development
Goals, and addresses the most
pressing needs – water, sanitation,
education, health and skill
development.
The inclusive growth and
development of communities
around us are integral to our
Corporate Social Responsibility
Policy.The Company has identified
the following thrust areas:
• Health
• Education
• Skill Development
• Water & Sanitation
CSR projects are identified and
implemented by unit-level CSR
teams, area/branch offices and
project sites, with guidance of the
CSR Committee of L&T Board.
The Ladies Clubs, formed by
the wives of L&T Employees and
Employee volunteers known
as ‘L&Teers’ participate in the
implementation of the Company’s
CSR projects. The Company
collaborates with NGOs and
society at large to identify the
requirements of local communities
before initiating any social welfare
programme. Periodic impact-
assessment helps monitor the
benefits received by the community,
and leads to augmentation of
the CSR project. The Community
Development Programmes are
either fully adopted or supported
by the Company as per the need,
on a case-to-case basis. Capacity-
building programmes for local
administrations are also conducted
to successfully run the programmes.
Our CSR Snapshot
Water & Sanitation
The unavailability of safe drinking
water results in increasing
morbidity and mortality rates. It
also negatively impacts educational
attainments, migration and
livelihood opportunities. For our
ICD programmes, locations for
interventions were identified as
water-stressed on the basis of water
availability, quality and uncertainty.
Further access to sanitation, health,
education, availability of drinking
water and Human Development
Index (HDI) were also taken into
consideration.
To begin with, districts and tehsils
were identified in the States of Tamil
Nadu, Maharashtra and Rajasthan.
In these States, ICD Programmes
were launched. Replicable and
indigenous methods for augmenting
water supply are being adopted,
such as building check dams,
field bunds, and soil and water
conservation interventions. In
addition, through the Larsen &
Toubro Public Charitable Trust, we
have constructed 200 check dams,
which help in irrigation and ground
water recharge at Talasari Block near
Mumbai. The programme will also
enable the community to build and
utilise sanitation facilities.
Education
Our educational initiatives focus
on providing primary education,
developing infrastructure and
enhancing the learning experience
in the vicinity of our units across
India.
We enrich education in primary
schools through innovative learning
methodologies. We provide
infrastructure support to schools.
After-hours ‘Single Teacher’ schools
help children improve their learning
levels. We support pre-schools, set
up computer laboratories, provide
teaching aids and uniforms and
augment teacher capacity.
Our Science-on-Wheels van
visits schools, giving children the
opportunity to experience the
hands-on experiments. Summer
camps and sports activities
help pupils develop social skills.
29
The social infrastructure we seek to build covers a wide spectrum - water, sanitation, education, health and skill development.
Extra-curricular outings help
widen children’s horizons. The
distribution of colorful school kits
is one more step in ensuring that
children have resources to study
at home. Employees volunteer
their time and talent to mentor
these children. Currently, the
Company is supporting over 250
schools across India and reaching
out to over 2 lakh underprivileged
children - in addition to undertaking
interventions in over 100 balwadis
and anganwadis.
Health
To help the economically weak
stay healthy despite the high cost
of healthcare, the Company has
launched initiatives to provide
affordable health and welfare.
The Company has set up seven
Community Health Centres near
its key campuses. They focus on
reproductive health and conduct
diagnostic and clinical camps to
enhance health-seeking behavior of
the community.
30
Regular health check-up camps are
held in schools and pre-schools.
The Company’s HIV/AIDS
management initiatives include
awareness camps (particularly for
high-risk groups), Anti-Retroviral
Therapy, counselling and testing.
Artificial kidney dialysis centres
for the underprivileged have been
set up at the Company’s three
Health Centres. Our Community
Health Centres reach out to over
3 lakh beneficiaries annually. At
13 locations we cater their needs
through mobile health vans.
Skill Development
The Company has set up
Construction Skills Training Institutes
(CSTIs) at eight locations to impart
free training to rural and urban
youth in basic construction trades.
In addition, the Company has set
up vocational institutes and has in
place programmes that impart skills
in several trades to enhance the
employability of underprivileged
youth.
Currently, the Company runs CSTIs
on its own, and has collaborated
with 27 ITIs. The CSTIs provide free
training in construction skills to rural
and urban youth in various trades,
such as bar-bending, formwork,
carpentry, masonry, scaffolding
and welding, etc. This training
improves the skill sets of the
underprivileged youth and enhances
their employability. Units set up
in collaboration with ITI impart
industry-oriented training.
Vocational training programmes
in tailoring, beautician’s courses,
home nursing and food processing
for women are enabling them to
become self-reliant. Through the
CSTIs and other vocational training
programmes, we have reached out
to over 45,000 youth and women
from underprivileged backgrounds
and have provided them with viable
skills.
The Company spent a sum of
119.89 Crores in FY 2015-16
towards CSR as per the Companies
Act, 2013.
Organization for Standardization
and the International
Electro-technical Commission.
An established system of addressing
customer complaints, comments
and suggestions ensures regular
personal interaction with clients.
The system consists of regular
customer meets, customer
satisfaction surveys, training
programmes for customer
representatives and market-based
research.
All our channel partners, i.e.
stockists and dealers, are briefed
about new product features and
components. The high percentage
of repeat orders is a reliable
indication of customer satisfaction
and confidence in L&T’s products,
projects and services.
All norms, standards and voluntary
codes and guidelines related to
marketing communication are
adhered to. The brand management
guidelines institutionalised by L&T’s
Corporate Brand Management
& Communications department
authenticate communications
and help customers identify and
distinguish the Company’s products.
Regarding unfair trade practices,
irresponsible advertising and or
anti-competitive behavior, no
stakeholder has filed a case against
the Company in the last five years,
and there are no pending cases as
on 31st March 2016.
Our R&D efforts focus on meeting customer requirements.
31
PRINCIPLE 9: ENGAGE WITH
AND PROVIDE VALUE TO
CUSTOMERS
We believe our leadership position
in most of our major businesses
rests on our ability to consistently
improve the value we offer to our
customers. We engage with our
clients to understand requirements,
and anticipate needs. We invest
in R&D, design facilities, superior
manufacturing and testing
processes, and set up training
centres for our own personnel as
well as those of our customers.
Health and safety concerns are
integrated at the product design
stage. Our products carry suitable
labeling and are accompanied
by Operation & Maintenance
manuals in line with relevant
codes and specifications. Similar
clarity is maintained across all our
projects. Products are tested and
benchmarked against stringent
national and international
standards such as the Bureau of
Indian Standards, the International
ANNEXURE: MAPPING TO THE SEBI FRAMEWORK
Question
Reference
Section
Page Number
Section A : General Information about the Company
1. Corporate Identity Number (CIN) of the Company
2. Name of the Company
3.
Registered Address
4. Website
Email id
5.
Financial Year Reported
6.
Sector(s) that the Company is engaged in (industrial activity code-wise)
7.
List three key products/services that the Company manufactures/provides
8.
(as in balance sheet)
9.
Total number of locations where business activity is undertaken by the Company
i. Number of International Locations (Provide details of major 5
ii. Number of National Locations
Markets served by the Company – Local/State/National/International
Section B: Financial Details of the Company
1.
2.
3.
Paid up Capital (INR)
Total Turnover (INR)
Total profi t after taxes (INR)
4. Total spending on Corporate Social Responsibility (CSR) as percentage of profi t
after tax (%)
5. List of activities in which expenditure in 4 above has been incurred: -
Section C : Other Details
1. Does the Company have any Subsidiary Company/ Companies?
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the
parent company? If yes, then indicate the number of such subsidiary
company(s)
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does
business with, participate in the BR initiatives of the Company? If yes, then indicate
the percentage of such entity/entities.
[Less than 30%, 30-60%, More than 60%]
Section D: BR Information
1. Details of Director/Directors responsible for BR
a) Details of the Director/Director the BR policy/policies
• DIN Number
• Name
• Designation
b) Details of the BR head
• DIN Number (if applicable)
• Name
• Designation
• Telephone number
• e-mail ID
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
18
18
18
18
18
19
19
19
19
19
19
19
19
19
19
AR
20
3. Governance Related to BR
Indicate the frequency with which the Board of Directors, Committee of the Board or
CEO to assess the BR performance of the Company. Within 3 months, 3-6 months,
Annually, More than 1 year
AR
21
32
Question
Does the Company publish a BR or a Sustainability Report? What is the Hyperlink for
viewing this report? How frequently it is published?
Section E : Principle-wise Performance
Principle1: Ethics, Transparency and Accountability
Reference
Section
AR
Page Number
21
Does the policy relating to ethics, bribery and corruption cover only the company?
Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others?
AR
22-23
How many stakeholder complaints have been received in the past fi nancial year and
what percentage was satisfactorily resolved by the management?
Principle 2 : Sustainable Products and Services
List up to 3 of your products or services whose design has incorporated social or
environmental concerns, risks and/or opportunities.
For each such product, provide the following details in respect of resource use
(energy, water, raw material etc.) per unit of product (optional):
Does the company have procedures in place for sustainable sourcing
(including transportation)?
Has the company taken any steps to procure goods and services from local & small
producers, including communities surrounding their place of work?
If yes, what steps have been taken to improve their capacity and capability of local and
small vendors?
Does the company have a mechanism to recycle products and waste? If yes what is the
percentage of recycling of products and waste (separately as <5%, 5-10%, >10%).
Also, provide details thereof, in about 50 words or so.
The details related to
stakeholder complaints
are included in the
Director’s Report
Section of this Annual
Report
AR
AR
AR
AR
AR
Green buildings
constructed by the
Building & Factories
business part of
Construction Business
help customers to
reduce energy and
water consumption,
utilize recycled material
and locally source
most of construction
material. The
Company is a leading
EPC solution provider
for Solar Photo
Voltaic (PV) based
power plants helping
customers save on
the energy bills and
contribute to reduction
of GHG emissions
from consumption of
indirect energy.
23-24
23-24
23-24
23-24
23-24
23-24
33
Principle 3: Employee Well Being
Question
Total number of employees.
Total number of employees hired on temporary/contractual/casual basis.
Number of permanent women employees.
Number of permanent employees with disabilities
Do you have an employee association that is recognized by management?
What percentage of your permanent employees is members of this recognized employee
association?
Please indicate the Number of complaints relating to child labour, forced labour,
involuntary labour, sexual harassment in the last fi nancial year and pending, as on the
end of the fi nancial year.
What percentage of your undermentioned employees were given safety and
skill upgradation training in the last year?
Principle 4: Valuing Marginalized Stakeholders
Has the company mapped its internal and external stakeholders?
Out of the above, has the company identifi ed the disadvantaged, vulnerable &
marginalized stakeholders?
Are there any special initiatives taken by the company to engage with the
disadvantaged, vulnerable and marginalized stakeholders?
Principle 5: Human Rights
Does the policy of the company on human rights cover only the company or extend to
the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?
How many stakeholder complaints have been received in the past fi nancial year and
what percent was satisfactorily resolved by the management?
Principle 6: Environment
Does the policy related to Principle 6 cover only the company or extends to the Group/
Joint Ventures/Suppliers/Contractors/NGOs/others?
Does the company have strategies/ initiatives to address global environmental issues
such as climate change, global warming, etc?
Does the company identify and assess potential environmental risks?
Does the company have any project related to Clean Development
Mechanism?
Has the company undertaken any other initiatives on – clean technology,
energy effi ciency, renewable energy, etc.? Y/N.
Are the Emissions/Waste generated by the company within the permissible limits given
by CPCB/SPCB for the fi nancial year being reported?
(cid:49)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:75)(cid:82)(cid:90)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:18)(cid:3)(cid:79)(cid:72)(cid:74)(cid:68)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:38)(cid:51)(cid:38)(cid:37)(cid:18)(cid:54)(cid:51)(cid:38)(cid:37)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:11)(cid:76)(cid:17)(cid:72)(cid:17)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:86)(cid:82)(cid:79)(cid:89)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:68)(cid:87)(cid:76)(cid:86)(cid:73)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:12)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:60)(cid:72)(cid:68)(cid:85)(cid:17)
34
Reference
Section
Page Number
AR
25
AR
AR
AR
AR
AR
AR
AR
AR
AR
No
AR
AR
25
25
26
26
26
26-27
27
27
27
-
28
28
Principle 7: Policy Advocacy
Question
Is your company a member of any trade and chamber or association? If Yes, Name only
those major ones that your business deals with:
Have you advocated/lobbied through above associations for the advancement or
improvement of public good?
Principle 8: Inclusive Growth
Does the company have specifi ed programmes/initiatives/projects in
pursuit of the policy related to Principle 8?
Are the programmes/projects undertaken through in-house team/own foundation/
external NGO/government structures/any other organisation?
Have you done any impact assessment of your initiative?
What is your company’s direct contribution to community development
projects - Amount in INR and the details of the projects undertaken.
(cid:43)(cid:68)(cid:89)(cid:72)(cid:3)(cid:92)(cid:82)(cid:88)(cid:3)(cid:87)(cid:68)(cid:78)(cid:72)(cid:81)(cid:3)(cid:86)(cid:87)(cid:72)(cid:83)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:81)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:88)(cid:81)(cid:76)(cid:87)(cid:92)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)
(cid:86)(cid:88)(cid:70)(cid:70)(cid:72)(cid:86)(cid:86)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3)(cid:68)(cid:71)(cid:82)(cid:83)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:88)(cid:81)(cid:76)(cid:87)(cid:92)(cid:34)
Principle 9: Customer Welfare
What percentage of customer complaints/consumer cases are pending as on the end of
fi nancial year.
Reference
Section
Page Number
AR
AR
AR
AR
AR
AR
29
29
29
29-30
31
29-30
The details related to
stakeholder complaints
are included in the
Director’s Report
Section of this
Annual Report.
Does the company display product information on the product label, over and above
what is mandated as per local laws?
Is there any case fi led by any stakeholder against the company regarding unfair trade
practices, irresponsible advertising and/or anti-competitive behavior during the last fi ve
years and pending as of end of fi nancial year?
AR
AR
31
31
35
STANDALONE FINANCIALS-10 YEAR HIGHLIGHTS
Description
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
$$
crore
Statement of Profit and Loss
Gross revenue from operations
PBDIT^^
Profit after tax (excluding
60415
6171
57558
57164
52196
53738
44296
37356
34337
25342
17938
6488
6667
5473
6283
5640
4816
3922
2969
1784
extraordinary/exceptional items)
4766
4699
4905
4169
4413
3676
3185
2709
2099
1385
Profit after tax (including
extraordinary/exceptional items)
5311
5056
5493
4384
4457
3958
4376
3482
2173
1403
Balance Sheet
Net worth
Deferred tax liability (net)
Loan funds
Capital employed
Ratios and statistics
PBDIT as % of net revenue from
operations @
PAT as % of net revenue from
operations $
RONW % *
Gross Debt: Equity ratio
Dividend per equity share ( ) ##
Basic earnings per equity share ( ) #
40718
37085
33662
29291
25223
21846
18312
12460
9555
5768
203
13609
54530
363
410
12936
11459
290
8478
133
9896
263
7161
77
48
61
6801
6556
3584
50384
45531
38059
35252
29270
25190
19064
13200
40
2078
7886
10.32
11.38
11.78
10.60
11.82
12.84
13.00
11.56
11.87
10.14
8.89
8.87
9.71
8.50
8.38
9.01
11.82
10.26
8.69
7.97
13.66
0.33:1
18.25
57.07
14.30
17.46
16.06
18.95
19.73
28.49
31.71
29.21
27.19
0.35:1
0.34:1
0.29:1
0.39:1
0.33:1
0.37:1
0.53:1
0.38:1
0.36:1
16.25
54.46
14.25
59.36
12.33
53.33
11.00
48.61
9.67
8.33
7.00
5.67
43.55
49.18
39.67
25.20
4.33
16.74
67.43
Book value per equity share ( ) ##
436.97
398.78
362.95
317.09
274.35
238.96
202.46
141.54
108.63
No. of equity shareholders
10,28,541
8,53,824
8,32,831
8,54,151
9,26,719
8,53,485
8,14,678
9,31,362
5,78,177
4,28,504
No. of employees
43,354
44,081
54,579
50,592
48,754
45,117
38,785
37,357
31,941
27,191
^^
@
$
*
#
Profit before depreciation, interest and tax (PBDIT) is excluding extraordinary/exceptional items and other income
PBDIT as % of net revenue from operations = [(PBDIT)/(gross revenue from operations less excise duty)]
Profit After Tax (PAT) as % of net revenue from operations = [(PAT including extraordinary/exceptional items)/(gross revenue from operations less excise duty)]
RONW [(PAT including extraordinary/exceptional items)/(average net worth excluding revaluation reserve and miscellaneous expenditure)]
Basic earnings per equity share have been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares/restructuring
during the respective years
## After considering issue of bonus shares/restructuring during the respective years
$$
Figures for the year 2006-07 to 2011-12 include Hydrocarbon business which has been transferred w.e.f April 1, 2013 to a wholly owned subsidiary
36
CONSOLIDATED FINANCIALS-10 YEAR HIGHLIGHTS
Description
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
crore
Statement of Profit and Loss
Gross revenue from operation
103522
92762
85889
75195
64960
52470
44310
40932
29819
20877
PBDIT^^
12343
11258
10730
9929
8884
7677
6423
5024
3706
2615
Profit attributable to shareholders of Parent Company
4748
4470
4547
4911
4649
4238
3796
3007
2304
1810
(excluding extraordinary/exceptional items)
Profit attributable to shareholders of Parent Company
5091
4765
4902
5206
4694
4456
5451
3789
2325
2240
(including extraordinary/exceptional items)
Balance Sheet
Net worth
Minority Interest
Deferred tax liability (net)
(392)
(185)
337
184
82
311
153
131
43992
40909
37712
33860
29387
25051
20991
13988
10831
6922
6769
4999
3179
2653
1753
1026
1087
1059
923
122
646
107
Loan funds
Capital employed
Ratios and statistics
101307
90571
80330
62672
47150
32798
22656
18400
12120
6200
151676
136294
121558
99369
78372
59186
44887
33578
23996
13875
PBDIT as % of net revenue from operations @
12.03
12.24
12.60
13.33
13.81
14.75
14.61
12.40
12.58
12.75
PAT as % of net revenue from operations $
4.96
5.18
5.76
6.99
7.30
8.56
12.40
9.35
7.89
10.92
RONW % **
12.00
12.13
13.71
16.47
17.26
19.38
31.23
30.64
26.92
38.01
Gross debt:equity ratio
2.30:1
2.21:1
2.13:1
1.85:1
1.61:1
1.31:1
1.08:1
1.32:1
1.12:1
0.90:1
Basic earnings per equity share ( ) #
54.69
51.33
52.97
56.53
51.21
49.04
61.27
43.17
26.96
26.73
Book value per equity share ( ) ##
472.12
439.93
406.65
366.59
319.64
273.97
232.04
158.84
122.87
80.92
Dividend per equity share ( ) ##
18.25
16.25
14.25
12.33
11.00
9.67
8.33
7.00
5.67
4.33
^^ Profit before depreciation, interest and tax [PBDIT] is excluding extraordinary/exceptional items and other income.
@
$
** RONW [(profit available for appropriation including extraordinary/exceptional items)/(average net worth excluding revaluation reserve and miscellaneous
PBDIT as % of net revenue from operation = [(PBDIT/(gross revenue from operation less excise duty)].
PAT as % of net revenue from operation = [(PAT including extraordinary/exceptional items)/(gross revenue from operation less excise duty)].
#
expenditure)].
Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares/
restructing during the respective years.
## After considering issue of bonus shares/restructuring during the respective years.
37
L&T CONSOLIDATED - ORDER INFLOW
L&T CONSOLIDATED - GROSS REVENUE
FROM OPERATIONS AND PAT
155367
7.3
136858
7.6
2014-15
2015-16
Order Inflow
India GDP growth
L&T CONSOLIDATED - ORDER BOOK
232649
7%
249949
170000 –
150000 –
130000 –
110000 –
90000 –
70000 –
50000 –
e
r
o
r
c
30000 –
–
260000 –
240000 –
220000 –
200000 –
e
r
o
r
c
180000 –
160000 –
140000 –
120000 –
100000 –
80000 –
60000 –
–
– 9.0
– 8.5
– 8.0
– 7.5
– 7.0
– 6.5
– 6.0
–
e
g
a
t
n
e
c
r
e
P
106000 –
104000 –
102000 –
100000 –
e
r
o
r
c
98000 –
96000 –
94000 –
92000 –
90000 –
88000 –
86000 –
–
103522
5091
92762
4765
2014-15
2015-16
– 5500
– 5400
– 5300
– 5200
– 5100
– 5000
– 4900
– 4800
– 4700
– 4600
–
e
r
o
r
c
Gross revenue from operations
PAT including exceptional and extraordinary items
L&T CONSOLIDATED - PBDIT AS % OF NET REVENUE
FROM OPERATIONS
11258
12.2
12343
12.0
e
r
o
r
c
13000 –
12000 –
11000 –
10000 –
9000 –
8000 –
7000 –
6000 –
5000 –
4000 –
3000 –
–
– 16.0
– 14.0
– 12.0
– 10.0
– 8.0
– 6.0
e
g
a
t
n
e
c
r
e
P
– 4.0
–
2014-15
2015-16
–
2014-15
2015-16
PBDIT
PBDIT as % of net revenue from operations
Net revenue from operations and PBDIT exclude exceptional/extraordinary items
L&T CONSOLIDATED - SEGMENT-WISE ORDER INFLOW 2015-16
L&T CONSOLIDATED - SEGMENT-WISE REVENUE 2015-16
6128
4%
5137
4%
84817
62%
7540
5%
8956
6%
10447
8%
5175
4%
2295
2%
3661
3%
2702
2%
crore
Infrastructure
Power
Metallurgical &
Material Handling
Heavy Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
6813
7%
5137
5%
48797
47%
7540
7%
8956
9%
8787
8%
4961
5%
3124
3%
2415
2%
6993
7%
Total segment wise order inflow 136858 crore
Total segment wise revenue 103522 crore
crore
Infrastructure
Power
Metallurgical &
Material Handling
Heavy Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
38
L&T CONSOLIDATED - SEGMENT-WISE ORDER BOOK 2015-16
L&T CONSOLIDATED - SEGMENT-WISE ORDER BOOK 2014-15
15622
6%
6772
3%
3055
1%
187373
75%
7507
3%
10368
4%
19252
8%
crore
Infrastructure
Power
Metallurgical &
Material Handling
Heavy Engineering
Electrical &
Automation
Hydrocarbon
Others
13684
6%
7200
3%
3096
1%
166120
71%
8387
4%
10690
5%
23472
10%
crore
Infrastructure
Power
Metallurgical &
Material Handling
Heavy Engineering
Electrical &
Automation
Hydrocarbon
Others
Total segment wise order book 249949 crore
Total segment wise order book 232649 crore
L&T CONSOLIDATED - SEGMENT-WISE RESULT 2015-16
L&T CONSOLIDATED - SEGMENT-WISE EBIDTA MARGINS*
5274
(49%)
6000 –
5000 –
4000 –
3000 –
2000 –
1000 –
e
r
o
r
c
0 –
581
(5%)
40
499
(5%)
1698
(16%)
1028
(10%)
622
(6%)
1130
(11%)
– – – – – – – – – – –
-1000 –
r
e
w
o
P
e
r
u
t
c
u
r
t
s
a
r
f
n
I
-15
n
o
b
r
a
c
o
r
d
y
H
&
l
a
c
i
r
t
c
e
l
E
n
o
i
t
a
m
o
t
u
A
(-2%)
-192
g
n
i
r
e
e
n
g
n
E
i
y
v
a
e
H
&
l
a
c
i
g
r
u
l
l
a
t
e
M
g
n
i
l
d
n
a
H
l
a
i
r
e
t
a
M
s
e
c
i
v
r
e
S
l
y
g
o
o
n
h
c
e
T
&
T
I
s
e
c
i
v
r
e
S
l
a
i
c
n
a
n
i
F
s
r
e
h
t
O
s
t
c
e
o
r
P
j
l
a
t
n
e
m
p
o
e
v
e
D
l
Total segment wise result 10665 crore
Figures in brackets represent percentage of segment result to total segment result
L&T CONSOLIDATED - SEGMENT-WISE CAPITAL EMPLOYED
50 –
40 –
30 –
20 –
10 –
e
g
a
t
n
e
c
r
e
P
2014-15
2015-16
41.7
16.1
11.1 11.7
11.6 10.5
12.3
14.8 13.9
5.5
2.3
20.421.6
15.4 15.2
26.6
22.9
20.7
0 –
– – – – – – – – – – –
-0.7
-10 –
-20 –
r
e
w
o
P
e
r
u
t
c
u
r
t
s
a
r
f
n
I
&
l
a
c
i
g
r
u
l
l
a
t
e
M
g
n
i
l
d
n
a
H
l
a
i
r
e
t
a
M
g
n
i
r
e
e
n
g
n
E
i
y
v
a
e
H
-15.4
n
o
b
r
a
c
o
r
d
y
H
&
l
a
c
i
r
t
c
e
l
E
n
o
i
t
a
m
o
t
u
A
s
e
c
i
v
r
e
S
l
y
g
o
o
n
h
c
e
T
&
T
I
s
e
c
i
v
r
e
S
l
a
i
c
n
a
n
i
F
s
r
e
h
t
O
s
t
c
e
o
r
P
j
l
a
t
n
e
m
p
o
e
v
e
D
l
* Earnings before interest, tax, depreciation and amortisation as percentage of net segment revenue
L&T STANDALONE - GROSS REVENUE
FROM OPERATIONS AND PAT
35000 –
30000 –
25000 –
20000 –
e
r
o
r
c
15000 –
10000 –
5000 –
31.03.2015
31.03.2016
0
6
0
1
3
6
4
0
7
2
1
0
1
8
1
5
4
1
4
1
5
8
7
0
1
3
2
4
9
e
r
o
r
c
8
3
1
8
0
4
7
7
8
2
2
3
1
9
1
3
4
1
1
4
0
3
2
3
9
4
0
2
1
0
8
2
6
8
8
2
6
5
8
2
0
7
2
2
7
3
0
2
7
7
3
3
2
4
1
3
65000 –
55000 –
45000 –
57558
5056
– 5500
60415
5311
– 5200
e
r
o
r
c
– 4900
0 –
– – – – – – – – – – –
r
e
w
o
P
e
r
u
t
c
u
r
t
s
a
r
f
n
I
&
l
a
c
i
g
r
u
l
l
a
t
e
M
g
n
i
l
d
n
a
H
l
a
i
r
e
t
a
M
g
n
i
r
e
e
n
g
n
E
i
y
v
a
e
H
&
l
a
c
i
r
t
c
e
l
E
n
o
i
t
a
m
o
t
u
A
n
o
b
r
a
c
o
r
d
y
H
s
r
e
h
t
s
e
c
i
v
r
e
S
l
y
g
o
o
n
h
c
e
T
&
T
I
s
e
c
i
v
r
e
S
l
a
i
c
n
a
n
i
F
s
t
c
e
o
r
P
j
l
a
t
n
e
m
p
o
e
v
e
D
l
O
35000 –
–
Total segment wise capital employed as at 31.03.2015 86430 crore and as at 31.03.2016 92346 crore
2014-15
2015-16
– 4600
–
Gross revenue from operations
PAT including exceptional and extraordinary items
39
i p a l
c
M u n i
LARSEN & TOUBRO LIMITED
Regd. Office : L&T House, Ballard Estate, Mumbai 400 001.
CIN : L99999MH1946PLC004768
Email : Igrc@larsentoubro.com • Website: www.larsentoubro.com
Tel.: 022-67525656 • Fax : 022-67525893
Notice
NOTICE IS HEREBY GIVEN THAT
the Seventy First Annual General
Meeting of LARSEN & TOUBRO
LIMITED will be held at Birla
Matushri Sabhagar, 19, Marine
Lines, Mumbai - 400 020 on
Friday, August 26, 2016 at 3.00
P.M. to transact the following
business :-
1) To consider and adopt the
audited financial statements
of the Company for the year
ended March 31, 2016 and
the Reports of the Board of
Directors and Auditors thereon
and the audited consolidated
financial statements of the
Company and the Reports of
the Auditors thereon for the
year ended March 31, 2016;
2) To declare a dividend on equity
shares;
3) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT Ms. Sunita
Sharma (DIN: 02949529) who
was appointed as a Director
in casual vacancy and holds
office upto the date of this
Annual General Meeting of
the Company, is eligible for
appointment and in respect
of whom the Company has
received a notice in writing
from a member under the
provisions of Section 160 of
the Companies Act, 2013
proposing her candidature
for the office of Director, be
and is hereby appointed as a
Director.”
4) To appoint a Director in place
of Mr. S.N. Subrahmanyan
(DIN: 02255382), who retires
by rotation and is eligible for
re-appointment;
5) To appoint a Director in place of
Mr. A.M Naik (DIN: 00001514),
who retires by rotation and is
eligible for re-appointment;
6) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT Mr. D.K
Sen (DIN: 03554707) who was
appointed as an Additional
Director and holds office upto
the date of this Annual General
Meeting of the Company, is
eligible for appointment and in
respect of whom the Company
has received a Notice in writing
from a member under the
provisions of Section 160 of
the Companies Act, 2013
proposing his candidature
for the office of Director, be
and is hereby appointed as a
Director.”
7) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT Mr. M.V
Satish (DIN: 06393156) who
was appointed as an Additional
Director and holds office upto
the date of this Annual General
Meeting of the Company, is
eligible for appointment and in
respect of whom the Company
has received a Notice in writing
from a member under the
provisions of Section 160 of
the Companies Act, 2013
proposing his candidature
for the office of Director, be
and is hereby appointed as a
Director.”
8) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT Ms. Naina
Lal Kidwai (DIN: 00017806)
who was appointed as an
Additional Director and holds
office up to the date of this
Annual General Meeting of
the Company, is eligible for
appointment, and in respect
of whom the Company has
received a notice in writing
from the Director under the
provisions of Section 160 of
the Companies Act, 2013
proposing her candidature for
the office of Director, be and is
hereby appointed as a Director.
41
RESOLVED FURTHER THAT
Ms. Naina Lal Kidwai be and
is hereby appointed as an
Independent Director of the
Company to hold office upto
February 28, 2021 with effect
from March 1, 2016.”
9) To consider and, if thought
fit, to pass with or without
modification(s), 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 appointment of Mr.
S.N Subrahmanyan (DIN:
02255382) as the Deputy
Managing Director and
President of the Company with
effect from October 1, 2015
upto and including September
30, 2020.
RESOLVED FURTHER THAT
Mr. S.N Subrahmanyan in
his capacity as the Deputy
Managing Director and
President, 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.”
10) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT pursuant
to Sections 196,197, 203 and
other applicable provisions, if
42
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
appointment of Mr. D.K Sen
(DIN: 03554707) as the Whole-
time Director of the Company
with effect from October
1, 2015 upto and including
September 30, 2020.
RESOLVED FURTHER THAT
Mr. D.K Sen in his capacity
as Whole-time 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) To consider and, if thought
fit, to pass with or without
modification(s), 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 appointment of Mr. M.V
Satish (DIN: 06393156) as the
Whole-time Director of the
Company with effect from
January 29, 2016 upto and
including January 28, 2021.
RESOLVED FURTHER THAT
Mr. M.V Satish in his capacity
as Whole-time 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.”
12) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT pursuant to
the provisions of Sections 197,
198 and all other applicable
provisions, if any, of the
Companies Act, 2013 and
the Companies (Appointment
and Remuneration of
Managerial Personnel) Rules,
2014 (including any statutory
modification and re-enactment
thereof, for the time being in
force) and in supersession of
the resolution no. 11 passed
by the Members at the 68th
Annual General Meeting of
the Company held on August
22, 2013, consent of the
Company be and is hereby
accorded to pay commission
with effect from April 1, 2016
to the Executive Chairman,
Chief Executive Officer &
Managing Director, if any,
Deputy Managing Director and
the Whole-time Directors of
the Company which together
with other remuneration will
be within the overall limit of
10% of the net profits of the
Company.
RESOLVED FURTHER THAT
the Board of Directors of the
Company be and is hereby
authorized to approve and fix/
revise suitably the commission
payable to the Executive
Chairman, Chief Executive
Officer & Managing Director, if
any, Deputy Managing Director
and the Whole-time Directors
of the Company within the
aforesaid limits fixed by the
shareholders.”
13) To consider and, if thought
fit, to pass with or without
modification(s), 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. R. Shankar Raman (DIN:
00019798) as the Whole-time
Director of the Company with
effect from October 1, 2016
upto and including September
30, 2021.
RESOLVED FURTHER THAT
Mr. R. Shankar Raman in
his capacity as Whole-time
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.”
14) To consider and, if thought
fit, to pass with or without
modification(s), 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.
Shailendra Roy (DIN: 02144836)
as the Whole-time Director
of the Company with effect
from March 9, 2017 upto and
including July 7, 2020.
RESOLVED FURTHER THAT
Mr. Shailendra Roy in his
capacity as Whole-time
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.”
15) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT Mr. Sanjeev
Aga (DIN: 00022065) who was
appointed as an Additional
Director and holds office up to
the date of this Annual General
Meeting of the Company,
is eligible for appointment,
and in respect of whom the
Company has received a notice
in writing from the Director
under the provisions of Section
160 of the Companies Act,
2013 proposing his candidature
for the office of a Director, be
and is hereby appointed as a
Director.
RESOLVED FURTHER THAT
Mr. Sanjeev Aga be and
is hereby appointed as an
Independent Director of the
Company to hold office upto
May 24, 2021 with effect from
May 25, 2016.”
16) To consider and, if thought
fit, to pass with or without
modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT Mr.
Narayanan Kumar (DIN:
00007848) who was appointed
as an Additional Director and
holds office up to the date of
this Annual General Meeting
of the Company, is eligible for
appointment, and in respect
of whom the Company has
received a notice in writing
from the Director under the
provisions of Section 160 of
the Companies Act, 2013
proposing his candidature for
the office of a Director, be
and is hereby appointed as a
Director.
RESOLVED FURTHER THAT
Mr. Narayanan Kumar be and
is hereby appointed as an
Independent Director of the
Company to hold office upto
May 26, 2021 with effect from
May 27, 2016.”
17) To consider and, if thought
fit, to pass with or without
modification(s), as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT in
supersession of the resolution
no. 13 passed by the Members
at the 70th Annual General
Meeting of the Company held
on September 9, 2015 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
43
of Capital and Disclosure
Requirements) Regulations,
2009 (‘SEBI Regulations’),
SEBI (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
44
Funds, Individuals or otherwise,
whether shareholders of the
Company or not, through an
issue of convertible bonds
and/or equity shares through
depository receipts including
by way of Qualified Institutions
Placement (‘QIP’), to Qualified
Institutional Buyers (‘QIB’) in
terms of Chapter VIII 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 issue of the Securities
shall not exceed INR 3600
Crore (Rupees Three Thousand
Six Hundred Crore) or US $600
Mn (US Dollars Six Hundred
Million), if higher.
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
deems 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).
RESOLVED FURTHER THAT
in case of QIP issue it shall be
completed within 12 months
from the date of passing of this
resolution.
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 -
i)
ii)
in case of allotment of
equity shares, the date
of Meeting in which the
Board decides to open the
proposed issue
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.
RESOLVED FURTHER THAT
the Equity Shares so issued
shall rank pari passu with the
existing Equity Shares of the
Company in all respects.
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,
deems fit.
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 the BSE
Limited and/or National Stock
Exchange of India Limited or
any other Stock Exchange(s).
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 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.”
18) To consider and, if thought
fit, to pass with or without
modification(s), as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT pursuant
to the provisions of Sections
42, 71 and all other applicable
provisions of the Companies
Act, 2013 read with the
Companies (Prospectus and
Allotment of Securities) Rules,
2014, SEBI (Issue and Listing of
Debt Securities) Regulations,
2008, SEBI (Listing Obligations
and Disclosure Requirements)
Regulations, 2015 (including
any statutory modification(s)
or re-enactment thereof, for
the time being in force), and
subject to the provisions of
the Articles of Association
of the Company, approval
of the members be and is
hereby accorded to authorize
the Board of Directors of the
Company to offer or invite
subscriptions for listed/unlisted
secured/unsecured redeemable
non-convertible debentures, in
one or more series/tranches/
currencies, aggregating up
to 6000 crore (Rupees Six
Thousand Crore only), on
private placement basis, on
such terms and conditions as
the Board of Directors of the
Company may, from time to
time, determine and consider
proper and most beneficial to
the Company including as to
when the said Debentures be
issued, the consideration for
the issue, utilization of the
issue proceeds and all matters
connected with or incidental
thereto;
RESOLVED FURTHER THAT
the Board of Directors of the
Company be and is hereby
authorised to do all acts
and take all such steps as
may be necessary, proper or
expedient to give effect to this
resolution.”
19) To ratify the appointment
of M/s. Sharp & Tannan, as
Statutory Auditors and fix
their remuneration and for
that purpose to pass with or
without modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT pursuant
to the provisions of Section
139 and all other applicable
provisions of the Companies
Act, 2013 read with the
Companies (Audit and
45
Auditors) Rules, 2014 (including
any statutory modifications
or re-enactment thereof for
the time being in force) and
pursuant to the resolution
passed by the members at the
70th Annual General Meeting
(AGM) of the Company held on
September 9, 2015 in respect
of the appointment of the
auditors, M/s. Sharp & Tannan,
Chartered Accountants, ICAI
Registration No. 109982W
(S&T), till the conclusion of
the 72nd AGM, the Company
hereby ratifies and confirms
the appointment of S&T as the
Joint Statutory Auditors of the
Company, to hold office from
the conclusion of the 71st AGM
till the conclusion of the 72nd
AGM and to be jointly and
severally responsible with M/s.
Deloitte Haskins & Sells LLP
during the said period.
RESOLVED FURTHER THAT
the Board of Directors or the
Audit Committee thereof, be
and are hereby authorized to
decide and finalise the terms
and conditions of appointment,
including remuneration of the
Statutory Auditors.”
20) To ratify the appointment of
M/s. Deloitte Haskins & Sells
LLP, as Statutory Auditors and
fix their remuneration and for
that purpose to pass with or
without modification(s), as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT pursuant
to the provisions of Section
139 and all other applicable
provisions of the Companies
Act, 2013 read with the
Companies (Audit and
Auditors) Rules, 2014 (including
any statutory modifications
46
or re-enactment thereof for
the time being in force) and
pursuant to the resolution
passed by the Members of
the Company at the 70th
Annual General Meeting
(AGM) held on September
9, 2015 in respect of the
appointment of M/s. Deloitte
Haskins & Sells, Chartered
Accountants, ICAI Registration
No. 117366W/W-100018 (DHS)
till the conclusion of the 75th
AGM, the Company hereby
ratifies the appointment of DHS
as the Joint Statutory Auditors
of the Company, to hold office
from the conclusion of the 71st
AGM till the conclusion of the
72nd AGM and to be jointly and
severally responsible with M/s.
Sharp & Tannan during the said
period.
RESOLVED FURTHER THAT
the Board of Directors or the
Audit Committee thereof, be
and are hereby authorized to
decide and finalise the terms
and conditions of appointment,
including remuneration of the
Statutory Auditors. ”
21) To consider and ratify the
remuneration payable to
Cost Auditors and for that
purpose to pass with or
without modification(s), 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 11 lakh plus
applicable service tax and out
of pocket expenses at actuals
for travelling and boarding/
lodging for the financial year
ended March 31, 2017 to
M/s R. Nanabhoy & Co. Cost
Accountants (Regn. No. 00010),
who are appointed as Cost
Auditors to conduct the audit
of cost records maintained by
the Company for the Financial
Year 2016-17.”
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
N. HARIHARAN
COMPANY SECRETARY
M.NO – A3471
Mumbai, May 25, 2016
Notes:
[a] 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 of
the Companies Act, 2013, in
respect of the business under
items 3, 6 to 18 and 21 set out
above are annexed hereto.
[b] A MEMBER ENTITLED TO
ATTEND AND VOTE IS ENTITLED
TO APPOINT A PROXY, TO
ATTEND AND VOTE INSTEAD
OF HIMSELF, AND THAT
A PROXY NEED NOT BE A
MEMBER. Pursuant to Section
105 of the Companies Act,
2013 and Rule 19 of the
Companies (Management &
Administration) Rules, 2014,
a person can act as a proxy
on behalf of members not
exceeding 50 and holding in
the aggregate not more than
10% of the total share capital
of the Company carrying
voting rights. In case a proxy is
proposed to be appointed by
a member holding more than
10% of the total share capital
of the Company carrying voting
rights, then such proxy shall
not act as a proxy for any other
person or shareholder.
Proxies, in order to be
effective, must be received at
the Registered office of the
Company at L&T House, Ballard
Estate, Mumbai 400 001, not
later than forty-eight hours
before the commencement of
the AGM i.e. by 3.00 p.m. on
August 24, 2016.
[c] The Register of Members and
Transfer Books of the Company
will be closed from Saturday,
August 20, 2016 to Friday,
August 26, 2016 (both days
inclusive).
[d] Members are requested to
furnish bank details, Email
address, change of address
etc. to Karvy Computershare
Private Limited, Karvy
Selenium, Tower B, Plot 31-32,
Gachibowli, Financial District,
Nanakramguda, Hyderabad 500
032, who are the Company’s
Registrar and Share Transfer
Agents so as to reach them
latest by Friday, August 19,
2016, 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 at the earliest.
[e]
In order to receive copies of
Annual Reports and other
communication through e-mail,
Members are requested to
register their e-mail addresses
with the Company by sending
an e-mail to Lntgogreen@
Larsentoubro.com.
[f] All documents referred to in the
accompanying Notice and the
Explanatory Statement are open
for inspection at the Registered
Office of the Company on all
working days [except Saturdays]
between 11.00 a.m. and 1.00
p.m. up to the date of the
Annual General Meeting.
[g] Members/Proxies should bring
their attendance slips duly
completed for attending the
Meeting.
[h] Pursuant to Section 205A(5)
of the Companies Act, 1956,
the unpaid dividends that are
due for transfer to the Investor
Education and Protection Fund
are as follows:
Dividend
No.
Date of
Declaration
For the
year ended
Due for
Transfer on
80
81
82
83
84
85
86
28.08.2009 31.03.2009 04.10.2016
26.08.2010 31.03.2010 02.10.2017
26.08.2011 31.03.2011 02.10.2018
24.08.2012 31.03.2012 29.09.2019
22.08.2013 31.03.2013 27.09.2020
22.08.2014 31.03.2014 27.09.2021
09.09.2015 31.03.2015 15.10.2022
Members who have not
encashed their dividend
warrants pertaining to
the aforesaid years may
approach the Company/
its Registrar, for obtaining
payments thereof atleast 20
days before they are due for
transfer to the said fund.
[i]
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.
[j] E-voting
The businesses as set out in
the 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, Secretarial Standard
2 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, as
an alternate, to all its Members
to enable them to cast their
votes electronically. The facility
of casting the votes by the
members using an electronic
voting system from a place
other than venue of the AGM
(remote e-voting) will be
provided by National Securities
Depository Limited (NSDL).
The facility for voting shall
be made available at the
AGM and the Members
attending the Meeting who
have not cast their vote
through remote e-voting
shall be able to exercise their
right at the Meeting. Please
note that the voting through
electronic means is optional for
shareholders.
47
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 Friday, August
19, 2016 shall be entitled to
avail the facility of remote
e-voting or voting at the AGM.
Persons who are not members
as on the cut-off date should
treat this notice for information
purposes only.
The Notice will be displayed on
the website of the Company
www.larsentoubro.com and on
the website of NSDL.
The members who have cast
their vote through remote
e-voting prior to the AGM may
also attend the AGM but shall
not be entitled to cast their
vote again.
The remote e-voting period
commences on August 23,
2016 at 9.00 A.M and ends on
August 25, 2016 at 5.00 P.M.
During this period, members
of the Company holding
shares either in physical or
dematerialised form, as on
the cut-off date of Friday,
August 19, 2016 may cast their
vote by remote e-voting. The
remote e-voting module shall
be disabled by NSDL for voting
thereafter.
The Members, whose names
appear in the Register of
Members/list of Beneficial
Owners as on August 19,
2016, i.e. the date prior to
the commencement of book
closure date are entitled to vote
on the Resolutions set forth in
this Notice. Eligible members
who have acquired shares after
the despatch of the Annual
Report and holding shares as
on the cut-off date i.e Friday,
August 19, 2016 may approach
the Company for issuance of
the User ID and Password for
exercising their right to vote by
electronic means.
However, members who
are already registered with
NSDL for remote e-voting
can use their existing user
ID and password for casting
their vote. In case they don’t
remember their password,
they can reset their password
by using “Forgot User Details/
Password” option available on
www.evoting.nsdl.com
The Company has appointed
Mr. S. N. Ananthasubramanian,
Practicing Company Secretary,
(Membership No. 4206)
or failing him Mrs. Aparna
Gadgil, Practicing Company
Secretary, (Membership No.
8430), to act as the Scrutinizer
for conducting the voting and
remote e-voting process in a
fair and transparent manner.
Members are requested to
follow the instructions below
to cast their vote through
e-voting:
A.
In case a Member receives
an e-mail from NSDL (for
Members whose e-mail
addresses are registered
with the Company/
Depository Participants):
i. Open the e-mail and
also open PDF file
namely “L&T remote
e-voting.pdf” with
your Client ID or Folio
No. as password. The
said PDF file contains
your user ID and
password for remote
e-voting. Please note
48
that the password is
an initial password.
ii. Open the internet
browser and type the
following URL: https://
www.evoting.nsdl.
com.
iii. Click on Shareholder
- Login.
iv.
v.
If you are already
registered with NSDL
for e-voting then you
can use your existing
user ID and password.
If you are logging
in for the first time,
please enter the user
ID and password
provided in the PDF
file attached with
the e-mail as initial
password. Click Login.
vi. The Password Change
Menu will appear on
your screen. Change
to a new password of
your choice, making
sure that it contains a
minimum of 8 digits
or characters or a
combination of both.
Please take utmost
care to keep your
password confidential.
vii. Once the remote
e-voting home page
opens, click on
Active Voting Cycles.
viii. Select “EVEN”
(E-Voting Event
Number) of Larsen &
Toubro Limited. Now
you are ready for
e-voting as Cast Vote
page opens.
ix. Cast your vote by
selecting appropriate
option and click on
“Submit” and also
“Confirm” when,
prompted.
x. Upon confirmation,
the message “Vote
cast successfully” will
be displayed.
xi. Once the vote on the
resolution is cast, the
Member shall not be
allowed to change it
subsequently.
xii. 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.
xiii. In case of any queries,
you may refer the
Frequently Asked
Questions (FAQs)
- Shareholders and
remote e-voting user
manual - Shareholders,
available at the
downloads section of
www.evoting.nsdl.
com.
B.
In case a Member receives
physical copy of the Notice
of AGM (for Members
whose email addresses
are not registered with
the Company/Depository
Participants):
i.
Initial password, is
provided as below,
in the enclosed
attendance slip:
User ID
Password
EVEN
(E-Voting
Event
Number)
ii. Please follow all steps
from SI. No. (ii) to SI.
No. (xiii) above, to cast
vote.
Based on the report received from
the scrutinizer the Company will
submit within 48 hours of the
conclusion of the Meeting 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.
A Member can opt for only one
mode of voting i.e. either through
remote e-voting or at the Meeting.
If a Member casts votes by both
modes, then voting done through
remote e-voting shall prevail.
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.
The results declared alongwith the
Scrutinizer’s report, will be posted
on the website of the Company
www.larsentoubro.com and on
the website of NSDL 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 will be communicated to the
Stock Exchanges.
EXPLANATORY STATEMENT
As required by Section 102 of
the Companies Act, 2013, the
following Explanatory Statement
sets out material facts relating to
the business under items 3, 6 to 18
and 21 of the accompanying Notice
dated May 25, 2016.
Item No. 3:
On the recommendation of the
Nomination & Remuneration
Committee, Ms. Sunita Sharma
(DIN: 02949529) was appointed
as a Director in casual vacancy
caused due to the resignation
of Mr. N. Mohanraj. Pursuant to
Section 161(4) of the Companies
Act, 2013 Ms. Sunita Sharma will
hold office up to the date of this
Annual General Meeting. The
Company has received a notice in
writing from a member alongwith
deposit of requisite amount under
the provisions of Section 160 of the
Companies Act, 2013 proposing the
candidature of Ms. Sunita Sharma
as Director.
Except Ms. Sharma, 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. 3.
The Directors recommend the
Resolution for approval of the
shareholders.
Item No. 6 & 10:
On the recommendation of the
Nomination & Remuneration
Committee, the Board of Directors
appointed Mr. D.K Sen (DIN:
03554707) as an Additional Director
49
with effect from October 1, 2015.
In terms of Section 161(1) of the
Companies Act, 2013, Mr. Sen holds
office as Additional Director upto
the date of this Annual General
Meeting. The Company has received
a notice in writing from a member
alongwith deposit of requisite
amount under Section 160 of the
Companies Act, 2013, proposing
his candidature for the office of
Director of the Company.
The Board of Directors, on the
recommendation of the Nomination
& Remuneration Committee,
appointed Mr. D.K Sen as a Whole-
time Director of the Company
with effect from October 1, 2015
upto and including September 30,
2020, subject to the approval of
the members in the Annual General
Meeting.
Mr. Sen is Senior Executive Vice
President – Infrastructure. Mr. Sen
started his tenure at L&T in 1989 as
Senior Manager (Civil & Structural
Design) in EDRC Kolkata. He is also
responsible for the activities of
the Transportation Infrastructure
business, Heavy Civil Infrastructure
business and L&T Geo Structure LLP.
He holds a degree in Civil
Engineering from IIT Kharagpur
and a Post Graduate degree in
Business Management from XLRI,
Jamshedpur.
Prior to joining L&T, Mr. Sen
worked for 12 years for a
clutch of companies like M/s.
Tata Steel, Jamshedpur, M/s.
Development Consultants, Kolkata
and was involved in a turnkey
EPC Transmission line project in
Malaysia.
His significant contributions are in
the Railways sector by securing the
CTP 1 & 2 & EMP 4 packages of the
Dedicated Freight Corridor.
50
Part III, of Schedule V of the
Companies Act, 2013 read with
the Secretarial Standard 2 on
General Meetings provides that the
appointment and remuneration of
Managing Directors and Whole-time
Directors in accordance with Part I
and Part II of the Schedule V shall
be subject to approval by resolution
of the shareholders in a General
Meeting.
At the Annual General Meeting
of the Company held on August
26, 2011 and August 22, 2013
the shareholders had fixed the
maximum limits within which the
Board was delegated authority
to decide the remuneration of
the Whole-time Director of the
Company. Pursuant to this, the
Board has fixed the remuneration
payable to Mr. D.K Sen during his
tenure as Whole-time Director.
The Company has entered into
an Agreement with Mr. D.K Sen
appointing him as a Whole-time
Director for the period from October
1, 2015 to September 30, 2020.
During the period of this agreement
and so long as the Whole-time
Director performs his services as per
the terms and conditions provided
by this agreement, he shall be
entitled to the following:
Salary : 7,25,000 (Rupees Seven
Lakh Twenty Five Thousand only) per
month in the scale of 6,50,000 -
75,000 - 10,25,000 - 1,00,000
- 15,25,000 with the annual
increment due on April 1 every year.
Commission : Upto 0.1% per
annum of the operating net profits
after tax of the Company from the
year 2015-16. The Commission for
2015-16 will be on a pro-rata basis.
Such Commission will be excluding
extraordinary/exceptional profits or
losses arising from sale of business/
assets, sale of shares in Subsidiary
& Associate Companies/Special
Purpose Vehicles/Joint Ventures
and also from sale of strategic
investments/ adjustment in valuation
of strategic investments.
The actual commission will be
decided based on parameters set
periodically by the Nomination &
Remuneration Committee/Board.
Perquisites : 12 lakh per
annum excluding free furnished
accommodation.
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.
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.
The agreement entered into by
the Company with Mr. D.K Sen,
in respect of his appointment as
Whole-time Director, contains
the terms and conditions of
his appointment including
remuneration.
The Agreement entered into
with Mr. D.K Sen will be open
for inspection by members at the
Registered Office of the Company
on all working days [except
Saturdays] between 11.00 a.m. and
1.00 p.m. up to the date of the
Annual General Meeting.
Except Mr. Sen, 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 &
10.
The Directors recommend the
Resolutions for approval of the
shareholders.
Item No. 7 & 11:
On the recommendation of the
Nomination & Remuneration
Committee, the Board of Directors
appointed Mr. M.V Satish (DIN:
06393156) as an Additional Director
with effect from January 29, 2016.
In terms of Section 161(1) of the
Companies Act, 2013, Mr. M.V
Satish holds office as Additional
Director upto the date of this
Annual General Meeting. The
Company has received a notice in
writing from a member alongwith
deposit of requisite amount under
Section 160 of the Companies Act,
2013, proposing his candidature
for the office of Director of the
Company.
The Board of Directors, on the
recommendation of Nomination
& Remuneration Committee,
appointed Mr. M.V Satish as
a Whole-time Director of the
Company with effect from January
29, 2016 upto and including
January 28, 2021, subject to the
approval of the members in the
Annual General Meeting.
Mr. M.V Satish is Senior Executive
Vice President – Buildings, Minerals
and Metals. Mr. M.V Satish started
his career in L&T as Junior Engineer.
He holds a degree in Civil
engineering from Bangalore
University and has completed a
Senior Executive programme from
London Business School.
Mr. M.V Satish has played a vital
role in establishing L&T’s credentials
in the GCC region, especially
Oman having served as first Chief
Executive of L&T Oman LLC. He
is credited for having successfully
executed the Salalah greenfield
airport project and the NMC
Hospital in Abu Dhabi.
Part III, of Schedule V of the
Companies Act, 2013 read with
Secretarial Standard 2 on General
Meetings provides that the
appointment and remuneration of
Managing Directors and Whole-time
Directors in accordance with Part I
and Part II of the Schedule V shall
be subject to approval by resolution
of the shareholders in a General
Meeting.
At the Annual General Meeting
of the Company held on August
26, 2011 and August 22, 2013
the shareholders had fixed the
maximum limits within which the
Board was delegated authority
to decide the remuneration of
the Whole-time Director of the
Company. Pursuant to this, the
Board has fixed the remuneration
payable to Mr. M.V Satish during his
tenure as Whole-time Director.
The Company has entered into an
Agreement with Mr. M.V Satish
appointing him as a Whole-time
Director for the period from January
29, 2016 to January 28, 2021.
During the period of this agreement
and so long as the Whole-time
Director performs his services as per
the terms and conditions provided
by this agreement, he shall be
entitled to the following:
Salary : 7,25,000 (Rupees Seven
Lakh Twenty Five Thousand only) per
month in the scale of 6,50,000 -
75,000 - 10,25,000 - 1,00,000
- 15,25,000 with the annual
increment due on April 1 every year.
Commission : Upto 0.1% per
annum of the operating net profits
after tax of the Company from the
year 2015-16. The Commission for
2015-16 will be on a pro-rata basis.
Such Commission will be excluding
extraordinary/exceptional profits or
losses arising from sale of business/
assets, sale of shares in Subsidiary
& Associate Companies/Special
Purpose Vehicles/Joint Ventures
and also from sale of strategic
investments/adjustment in valuation
of strategic investments.
The actual commission will be
decided based on parameters set
periodically by the Nomination &
Remuneration Committee/Board.
Perquisites : 12 lakh per
annum excluding free furnished
accommodation.
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.
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.
The agreement entered into by
the Company with Mr. M.V Satish,
in respect of his appointment as
Whole-time Director, contains
the terms and conditions of
his appointment including
remuneration.
The Agreement entered into with
Mr. M.V Satish will be open for
inspection by members at the
Registered Office of the Company
on all working days [except
Saturdays] between 11.00 a.m. and
51
1.00 p.m. up to the date of the
Annual General Meeting.
Except Mr. M.V Satish, 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. 7 &
11.
The Directors recommend the
Resolutions for approval of the
shareholders.
Item No. 8:
On the recommendation of the
Nomination & Remuneration
Committee, Ms. Naina Lal Kidwai
(DIN: 00017806) was appointed
as an Additional Director of the
Company with effect from March
1, 2016. In terms of Section 161(1)
of the Companies Act, 2013, Ms.
Kidwai holds office as Additional
Director upto the date of this
Annual General Meeting. The
Company has received a notice in
writing from the Director alongwith
deposit of requisite amount under
Section 160 of the Companies Act,
2013, proposing her candidature
for the office of Director of the
Company. In terms of Section 149
and any other applicable provisions
of the Companies Act, 2013, Ms.
Kidwai is proposed to be appointed
as an Independent Director up to
February 28, 2021, for a period
of 5 years from the date of her
appointment. Pursuant to the
provisions of the Companies Act,
2013 and Reg. 25(2) of the SEBI
(Listing Obligations and Disclosure
Requirements) Regulations, 2015
(LODR Regulations), she is eligible
for re-appointment after February
28, 2021.
In the opinion of the Board,
Ms. Kidwai fulfils the conditions
specified in the Companies Act,
2013 and rules made thereunder
52
and LODR Regulations for her
appointment as an Independent
Director of the Company and is
independent of the management.
The copy of the letter of
appointment of Ms. Kidwai as an
Independent Director setting out
the terms and conditions would
be available for inspection without
any fee by the members at the
Registered Office of the Company
on all working days [except
Saturdays] between 11.00 a.m. and
1.00 p.m. up to the date of the
Annual General Meeting.
The Board considers that her
association would be of immense
benefit to the Company and it is
desirable to avail services of Ms.
Kidwai as an Independent Director.
Accordingly, the Board recommends
the resolution in relation to
appointment of Ms. Kidwai as
an Independent Director, for the
approval by the shareholders of the
Company.
Except Ms. Kidwai, 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. 8.
Item No. 9 :
Shareholders had approved
the appointment of Mr. S.N
Subrahmanyan (DIN: 02255382)
as Whole-time Director of the
Company for a period of five years,
with effect from July 1, 2011 upto
and including June 30, 2016.
On the recommendation of the
Nomination & Remuneration
Committee, the Board of Directors
of the Company at its Meeting held
on September 21, 2015, appointed
Mr. S. N. Subrahmanyan, as Deputy
Managing Director & President
of the Company with effect from
October 1, 2015 upto and including
September 30, 2020, subject to
the approval of the members in the
Annual General Meeting.
Mr. S. N. Subrahmanyan, 55,
is a civil engineer with post
graduate qualifications in business
management. He joined L&T in
1984 starting off as project planning
engineer, and was soon handpicked
for senior responsibilities.
The Buildings & Factories business
has grown rapidly under Mr.
Subrahmanyan’s leadership, and
has executed many prestigious
jobs such as construction of ICICI
Bank, National Stock Exchange
Buildings and Tidel Park. He is also
responsible for the activities of other
businesses like Power Transmission
and Distribution, Water, Smart
World and Communication,
Metallurgical and Material Handling
and Shipbuilding. Additionally he
is responsible for overseeing the IT
and Technology Services business
of L&T and common staff functions
across the Construction business.
Mr. Subrahmanyan’s notable
achievements include playing
a pivotal role in securing and
managing EPC contracts for
construction of four major
international airports in India at
Bengaluru, Hyderabad, Delhi and
Mumbai.
Part III, of Schedule V of the
Companies Act, 2013 read
with Secretarial Standards 2 on
General Meetings provide that the
appointment and remuneration of
Managing Directors and Whole-time
Directors in accordance with Part I
and Part II of the Schedule V shall
be subject to approval by resolution
of the shareholders in a General
Meeting.
At the Annual General Meeting
of the Company held on August
26, 2011 and August 22, 2013
the shareholders had fixed the
maximum limits within which the
Board was delegated authority to
decide the remuneration of the
Deputy Managing Director of the
Company. Pursuant to this, the
Board has fixed the remuneration
payable to Mr. S. N. Subrahmanyan
during his tenure as Deputy
Managing Director and President.
The Company has entered into
an Agreement with Mr. S.N.
Subrahmanyan appointing him
as the Deputy Managing Director
& President for the period from
October 1, 2015 to September
30, 2020. During the period of
this agreement and so long as the
Deputy Managing Director and
President performs his services
as per the terms and conditions
provided by this agreement, he shall
be entitled to the following:
Salary : 12,50,000 (Rupees Twelve
Lakh Fifty Thousand only) per
month in the scale of 10,00,000
- 1,25,000 – 16,25,000 with the
annual increment due on April 1
every year.
Commission : Upto 0.25% per
annum of the operating net profits
after tax of the Company from
October 1, 2015. The commission
for 2015-16 will be on a pro-rata
basis. Such commission will be
excluding extraordinary/exceptional
profits or losses arising from sale
of business/assets, sale of shares in
Subsidiary & Associate Companies/
Special Purpose Vehicles/Joint
Ventures and also from sale of
strategic investments/ adjustment in
valuation of strategic investments.
The actual commission will be
decided, based on parameters set
periodically, by the Nomination &
Remuneration Committee/Board.
Perquisites : 18 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.
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.
The agreement entered into by
the Company with Mr. S. N.
Subrahmanyan, in respect of his
appointment as Deputy Managing
Director & President, contains terms
and conditions of his appointment
including remuneration.
Accordingly, the Resolution at Item
No. 9 is proposed for approval of
the members for appointment of
Mr. S. N. Subrahmanyan, as the
Deputy Managing Director and
President 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
at the Registered Office of the
Company on all working days
[except Saturdays] between 11.00
a.m. and 1.00 p.m. up to the date
of the Annual General Meeting.
The Board recommends approval of
the appointment and remuneration
of Mr. S. N. Subrahmanyan, as
Deputy Managing Director and
President of the Company.
Except Mr. 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. 9.
Item No. 12:
At the Annual General Meeting
of the Company held on August
26, 2011 the shareholders had
approved the overall limit for
payment of remuneration to
Chairman & Managing Director,
Chief Executive Officer & Managing
Director, if any, Deputy Managing
Director, if any, and Whole-time
Directors of the Company within the
limits and subject to the terms and
conditions set out in the resolution
passed at that Meeting read with
the explanatory statement.
At the Annual General Meeting
of the Company held on August
22, 2013 the Shareholders had
approved revision in payment of
commission payable to the Executive
Chairman, Chief Executive Officer
and Managing Director, if any,
Deputy Managing Director, if any,
and Whole-time Directors.
The Company has planned for
a consistent profitable growth
based on an identified strategy
and strategic initiatives, including
detailed assessment of portfolios,
entity and capital structure.
Significant opportunities across
all business segments have been
identified. During the strategic plan
for the period 2016-2021 (Lakshya
2021) there will be transition of
leadership. The Company needs to
attract and retain competent leaders
for sustained growth.
The Nomination & Remuneration
Committee revises the commission
payable to the Executive Chairman,
Chief Executive Officer & Managing
53
Director, if any, Deputy Managing
Director and Whole-time Directors
based on overall performance
of the Company, the concerned
business and the performance of
the individual director.
Considering the above, it is
proposed to give flexibility and
authority to the Board to fix/
revise the amount of commission
payable to Executive Chairman,
Chief Executive Officer & Managing
Director, if any, Deputy Managing
Director and Whole-time Directors
of the Company.
The commission payable will,
however, continue to be subject
to the condition that the total
managerial remuneration shall
not exceed 5% of the net profits
of the Company for each of the
Managing/Whole-time Directors of
the Company and 10% of the net
profits of the Company for all the
Managing/Whole-time Directors of
the Company.
The Board of Directors of the
Company appoints/re-appoints the
Executive Chairman, Chief Executive
Officer & Managing Director, if any,
Deputy Managing Director and
Whole-time Directors on the Board
after receiving recommendation
from the Nomination &
Remuneration Committee, subject
to the approval of the members in
General Meeting.
Specific approval of the members
will be sought for appointment/
re-appointment and other
remuneration of the Executive
Chairman/Chief Executive Officer
& Managing Director/Deputy
Managing Director/Whole-time
Directors individually in General
Meetings.
In order to fix/revise appropriately
the remuneration payable to the
54
Executive Chairman, Chief Executive
Officer & Managing Director, if
any, Deputy Managing Director
and Whole-time Directors from
time to time, the Board of Directors
recommend passing a Resolution to
authorize the Board to approve and
fix/revise suitably the commission
payable to the Executive Chairman,
Chief Executive Officer & Managing
Director, if any, Deputy Managing
Director and Whole-time Directors
from time to time.
In the event of loss or inadequacy
of profits in any financial year,
the remuneration payable to the
Executive Chairman, Chief Executive
Officer & Managing Director, if
any, Deputy Managing Director
and Whole-time Directors shall
not exceed the maximum limits
prescribed under Schedule V of the
Companies Act, 2013.
The Board recommends passing of
the Ordinary Resolution set out at
Item No. 12 of the Notice convening
the Meeting.
Mr. A.M. Naik, Group Executive
Chairman of the Company,
Mr. S. N. Subrahmanyan, Deputy
Managing Director & President, Mr.
R. Shankar Raman, Mr. Shailendra
Roy, Mr. D.K Sen and Mr. M.V Satish
who are the Whole-time Directors
of the Company, may be deemed
to be concerned or interested in the
resolution at Item No. 12 insofar as
it relates to commission payable to
them.
Item No. 13:
On the recommendation of the
Nomination & Remuneration
Committee and the Board of
Directors of the Company, it is
proposed to re-appoint Mr. R.
Shankar Raman (DIN: 00019798),
as a Whole-time Director of the
Company with effect from October
1, 2016 upto and including
September 30, 2021, subject to
the approval of the members in the
Annual General Meeting.
Mr. R. Shankar Raman is a
Commerce graduate from the
University of Madras, Chennai. He
qualified as a Chartered Accountant
in May 1983 and became a
Graduate of the Institute of Cost
& Works Accountants of India in
1986. Over the past 33 years of
professional work experience, Mr.
R. Shankar Raman has worked for
leading listed corporations in varied
capacities in the field of Finance.
Mr. R. Shankar Raman joined L&T
Group in 1994 for setting up L&T
Finance Limited, a subsidiary of
Larsen & Toubro Limited (L&T).
After six successful years with L&T
Finance Limited, he was inducted
into mainstream L&T to oversee the
Finance & Accounting functions.
Mr. R. Shankar Raman is on the
Board of several companies within
the L&T Group. He is a member
of National CFO Council of
Confederation of Indian Industries.
He had participated and presented
papers in several conventions/
seminars both in India and abroad.
Part III, of Schedule V of the
Companies Act, 2013 read with
Secretarial Standard 2 on General
Meetings provides that the
appointment and remuneration of
Managing Directors and Whole-time
Directors in accordance with Part I
and Part II of the Schedule V shall
be subject to approval by resolution
of the shareholders in a General
Meeting.
At the Annual General Meetings
of the Company held on August
26, 2011 and August 22, 2013,
the shareholders have fixed the
maximum limits within which the
Board was delegated authority to
decide the remuneration of Whole-
time Directors of the Company.
The Company will enter into an
Agreement with Mr. R. Shankar
Raman re-appointing him as a
Whole-time Director for the period
from October 1, 2016 to September
30, 2021. During the period of the
above agreement and so long as
the Whole-time Director performs
his services as per the terms
and conditions provided by this
agreement, he shall be entitled to
the following:
Salary : 11,25,000 (Rupees Eleven
Lakh Twenty Five Thousand only) per
month in the scale of 6,50,000 -
75,000 - 10,25,000 - 1,00,000
- 15,25,000 with the annual
increment due on April 1 every year.
Commission : Upon the resolution
in item no. 12 coming into effect,
the commission will be paid as fixed
by the Nomination & Remuneration
Committee and the Board of
Directors within the overall limits
approved by the shareholders of the
Company.
Perquisites : 12 lakh per
annum excluding free furnished
accommodation or house rent
allowance 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.
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.
The agreement to be entered
into by the Company with Mr.
R. Shankar Raman, in respect of
his appointment as Whole-time
Director, will contain the terms
and conditions of his appointment
including remuneration.
The draft Agreement to be entered
into with Mr. R. Shankar Raman
will be open for inspection by
members at the Registered Office of
the Company on all working days
[except Saturdays] between 11.00
a.m. and 1.00 p.m. up to the date
of the Annual General Meeting.
The Board recommends approval of
the appointment and remuneration
of Mr. R. Shankar Raman, as Whole-
time Director of the Company.
Except Mr. Shankar Raman, 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. 13.
Item No. 14 :
On the recommendation of the
Nomination & Remuneration
Committee and the Board of
Directors of the Company, it
is proposed to re-appoint Mr.
Shailendra Roy (DIN: 02144836),
as a Whole-time Director of the
Company with effect from March
9, 2017 upto and including July 7,
2020, subject to the approval of
the members in the Annual General
Meeting.
Mr. Roy is Senior Executive
Vice President – Power, Heavy
Engineering and Defence. He holds
a Bachelor of Technology degree
and started his career in 1975 as
an Engineer with Bharat Heavy
Electricals Limited’s manufacturing
unit at Hardwar.
Mr. Roy’s notable contribution in the
Company includes the Company’s
entry into Railway business, Power
Development and growth of new
business ventures.
Part III, of Schedule V of the
Companies Act, 2013 read with
Secretarial Standard 2 on General
Meetings provides that the
appointment and remuneration of
Managing Directors and Whole-time
Directors in accordance with Part I
and Part II of the Schedule V shall
be subject to approval by resolution
of the shareholders in a General
Meeting.
At the Annual General Meeting
of the Company held on August
26, 2011 and August 22, 2013,
the shareholders have fixed the
maximum limits within which the
Board was delegated authority to
decide the remuneration of Whole-
time Directors of the Company.
The Company will enter into an
Agreement with Mr. Shailendra Roy
appointing him as a Whole-time
Director for the period from March
9, 2017 to July 7, 2020. During the
period of the above agreement and
so long as the Whole-time Director
performs his services as per the
terms and conditions provided by
this agreement, he shall be entitled
to the following:
Salary : 10,25,000 (Rupees Ten
Lakh Twenty Five Thousand only) per
month in the scale of 6,50,000 -
75,000 - 10,25,000 - 1,00,000
- 15,25,000 with the annual
increment due on April 1 every year.
Commission : Upon the resolution
in item no. 12 coming into effect,
the commission will be paid as fixed
by the Nomination & Remuneration
Committee and the Board of
Directors within the overall limits
approved by the shareholders of the
Company.
55
Perquisites : 12 lakh per
annum excluding free furnished
accommodation.
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.
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.
The agreement to be entered into
by the Company with Mr. Shailendra
Roy, in respect of his appointment
as Whole-time Director, will
contain the terms and conditions
of his appointment including
remuneration.
The draft Agreement to be entered
into with Mr. Shailendra Roy will
be open for inspection by members
at the Registered Office of the
Company on all working days
[except Saturdays] between 11.00
a.m. and 1.00 p.m. up to the date
of the Annual General Meeting.
The Board recommends approval of
the appointment and remuneration
of Mr. Shailendra Roy, as Whole-
time Director of the Company.
Except Mr. Roy, 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. 14
Item No. 15:
On the recommendation of the
Nomination & Remuneration
Committee, Mr. Sanjeev Aga (DIN:
56
00022065) was appointed as an
Additional Director of the Company
with effect from May 25, 2016.
In terms of Section 161(1) of the
Companies Act, 2013, Mr. Aga
holds office as Additional Director
upto the date of this Annual
General Meeting. The Company has
received a notice in writing from
the Director alongwith deposit of
requisite amount under Section
160 of the Companies Act, 2013,
proposing his candidature for the
office of Director of the Company.
In terms of Section 149 and any
other applicable provisions of the
Companies Act, 2013, Mr. Aga is
proposed to be appointed as an
Independent Director for a term
up to May 24, 2021, for a period
of 5 years from the date of his
appointment. Pursuant to the
provisions of the Companies Act,
2013 and Reg. 25(2) of the SEBI
(Listing Obligations and Disclosure
Requirements) Regulations, 2015
(LODR Regulations), he is eligible for
re-appointment after May 24, 2021.
In the opinion of the Board, Mr.
Aga fulfils the conditions specified
in the Companies Act, 2013 and
rules made thereunder and LODR
Regulations for his appointment
as an Independent Director of the
Company and is independent of
the management. The copy of the
letter of appointment of Mr. Aga
as an Independent Director setting
out the terms and conditions would
be available for inspection without
any fee by the members at the
Registered Office of the Company
on all working days [except
Saturdays] between 11.00 a.m. and
1.00 p.m. up to the date of the
Annual General Meeting.
The Board considers that his
association would be of immense
benefit to the Company and
it is desirable to avail services
of Mr. Aga as an Independent
Director. Accordingly, the Board
recommends the resolution in
relation to appointment of Mr. Aga
as an Independent Director, for the
approval by the shareholders of the
Company.
Except Mr. Aga, 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. 15.
Item No. 16:
On the recommendation of the
Nomination & Remuneration
Committee, Mr. Narayanan Kumar
(DIN: 00007848) was appointed
as an Additional Director of the
Company with effect from May 27,
2016. In terms of Section 161(1)
of the Companies Act, 2013, Mr.
Kumar holds office as Additional
Director upto the date of this
Annual General Meeting. The
Company has received a notice in
writing from the Director alongwith
deposit of requisite amount under
Section 160 of the Companies Act,
2013, proposing his candidature
for the office of Director of the
Company. In terms of Section 149
and any other applicable provisions
of the Companies Act, 2013, Mr.
Kumar is proposed to be appointed
as an Independent Director for a
term up to May 26, 2021, for a
period of 5 years from the date of
his appointment. Pursuant to the
provisions of the Companies Act,
2013 and Reg. 25(2) of the SEBI
(Listing Obligations and Disclosure
Requirements) Regulations, 2015
(LODR Regulations), he is eligible for
re-appointment after May 26, 2021.
In the opinion of the Board,
Mr. Kumar fulfils the conditions
specified in the Companies Act,
2013 and rules made thereunder
and LODR Regulations for his
appointment as an Independent
Director of the Company and is
independent of the management.
The copy of the letter of
appointment of Mr. Kumar as an
Independent Director setting out
the terms and conditions would
be available for inspection without
any fee by the members at the
Registered Office of the Company
on all working days [except
Saturdays] between 11.00 a.m. and
1.00 p.m. up to the date of the
Annual General Meeting.
The Board considers that his
association would be of immense
benefit to the Company and it is
desirable to avail services of Mr.
Kumar as an Independent Director.
Accordingly, the Board recommends
the resolution in relation to
appointment of Mr. Kumar as
an Independent Director, for the
approval by the shareholders of the
Company.
Except Mr. Kumar, 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. 16.
Item No. 17:
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 and
debt raising would be another
source of funds, it is prudent for
the Company to have 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. The SEBI
(Listing Obligations and Disclosure
Requirements) Regulations, 2015
also provide 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 VIII of the
Securities and Exchange Board of
India (Issue of Capital and Disclosure
Requirements) Regulations, 2009
(‘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 VIII 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
57
depository receipts the price will
be determined on the basis of the
current market price and other
relevant guidelines.
The “relevant date” for the above
purpose, shall be -
i)
ii)
in case of allotment of equity
shares, the date of Meeting
in which the Board decides to
open the proposed issue
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.
The Stock Exchange for the same
purpose is the BSE Limited / National
Stock Exchange of India Limited.
The Shareholders through a
resolution passed at their Meeting
held on September 9, 2015, had
approved issue of Securities for
an aggregate sum up to US$600
Million or INR 3600 Crore, if
higher. However, Shareholders’
resolution for QIP issuance is valid
for a period of 12 months from the
date of passing of the resolution.
Accordingly, the Shareholders’
approval is sought for the same.
The Directors recommend this
Resolution for approval of the
Shareholders.
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. 17.
Item No. 18:
The Company is into the business
interalia of manufacturing of
58
industrial goods, heavy engineering,
infrastructure projects and other
activities which require a sizeable
investment and continuous
expenditure. The Company intends
to explore different avenues for
garnering this financing requirement
including by way of issuance of debt
instruments.
Section 42 of the Companies
Act, 2013 read with Rule 14 of
the Companies (Prospectus and
Allotment of Securities) Rules, 2014
deals with private placement of
securities by a company. Sub-rule
(2) of the said Rule 14 states that
in case of an offer or invitation for
subscription to non-convertible
debentures on private placement
basis, the Company shall obtain
prior approval of its shareholders
by means of a special resolution
only once in a year for all the offers
or invitations for such debentures
during the year.
In order to meet the financial needs
of business in a prudent manner
the Company may offer or invite
subscription for secured/unsecured/
redeemable/non-convertible
debentures, in one or more series/
tranches/currencies on private
placement, issuable / redeemable at
par or otherwise.
The shareholders through a
resolution passed at their Meeting
held on September 9, 2015,
approved issue of debentures upto
an amount not exceeding 6000
crore in aggregate. However, such
resolution is valid only for a period
of 12 months from the date on
which the approval is granted by
the shareholders. Accordingly, the
Shareholders’ approval is sought for
the period of next 12 months from
the date of passing this resolution.
This resolution is an enabling
resolution and authorizes the
Board of Directors of the Company
to offer or invite subscription for
non-convertible debentures, as may
be required by the Company, from
time to time for a year from the
date of passing this resolution.
The Directors recommend this
Resolution for approval of the
Shareholders.
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. 18.
Item No. 21:
In accordance with the provisions of
Section 148 of the Companies Act,
2013 (‘the Act’) and the Companies
(Audit and Auditors) Rules, 2014
and the Companies (Cost Records
and Audit) Amendment 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
Accountants, [Regn. No. 00010] as
the Cost Auditors of the Company
to conduct audit of cost records
maintained by the Company for
the Financial Year 2016-17, at a
remuneration of 11 lakhs plus
applicable service tax and out of
pocket expenses at actuals for
travelling and boarding/lodging.
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.
Accordingly, consent of the
members is sought for the aforesaid
purpose.
The Directors recommend this
resolution for approval of the
shareholders.
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. 21.
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED,
N. HARIHARAN
COMPANY SECRETARY
M.NO – A3471
Mumbai, May 25, 2016
The route map for the venue of the Annual General Meeting of the Company is given on page 40 of this Annual Report 2015-16
59
(ANNEXURE TO NOTICE DATED MAY 25, 2016)
DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT AT THE FORTHCOMING
ANNUAL GENERAL MEETING
[Pursuant to Regulation 36(3) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015
and Secretarial Standard 2 on General Meetings]
Name of the Director Ms. Sunita Sharma
Date of Birth
Date of Appointment
on the Board
Qualifications
Expertise
March 9, 1959
April 1, 2015
Masters
Vast Experience in Insurance and
Housing Finance
1. LIC Housing Finance Limited
LIC Nomura Mutual Fund
2.
AMC Ltd.
LICHFL Asset Management
Company Limited
LICHFL Financial Services
Limited
4.
3.
Mr. A. M. Naik
June 9, 1942
November 23, 1989
Mr. D. K. Sen
March 19, 1956
October 1, 2015
Mr. M. V. Satish
February 12, 1957
January 29, 2016
B.E (Mech.)
Diverse and vast experience
in general management,
Technology and Engineering &
Construction
1.
2.
Larsen & Toubro Infotech
Limited
L&T Technology Services
Limited
3. L&T Realty Limited
B.Sc Engg. (Civil), MBA (Finance) BE (Civil)
Vast experience in Design
and Engineering, Business
Development, Tendering and
construction
Vast experience in Construction,
Business Development,
Contracts Management and
Property Development in India
and GCC region
Nil
L&T Infrastructure Engineering
Limited
5. LICHFL Care Homes Limited
6. Bhushan Steel Limited
Chairperson
Audit Committee
LICHFL Care Homes Limited
Stakeholders Relationship
Committee
Larsen & Toubro Limited
Corporate Social
Responsibility Committee
LICHFL Care Homes Limited
Member
Nomination & Remuneration
Committee
LIC Nomura Mutual Fund AMC
Limited
Stakeholders Relationship
Committee
LIC Housing Finance Limited
Corporate Social
Responsibility Committee
LIC Housing Finance Limited
7 of 9
Member
Corporate Social
Responsibility Committee
Larsen & Toubro Limited
Nil
Member
Nomination & Remuneration
Committee
1. Larsen & Toubro Limited
Larsen & Toubro Infotech
2.
Limited
L&T Technology Services
Limited
3.
9 of 9
2 of 2
2 of 2
100*
Nil
Not Applicable
Not Applicable
Not Applicable
Nil
Nil
Nil
Directorships held
in other public
companies including
private companies
which are subsidiaries
of public companies
(excluding foreign
companies)
Memberships/
Chairmanships of
committees across all
companies
Number of Meetings
attended during the
year
Shareholding of Non-
Executive Directors
Relationships
between directors
inter-se
* Jointly with LIC
60
(ANNEXURE TO NOTICE DATED MAY 25, 2016)
DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT AT THE FORTHCOMING
ANNUAL GENERAL MEETING
[Pursuant to Regulation 36(3) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015
and Secretarial Standard 2 on General Meetings]
Mr. S. N. Subrahmanyan
March 16, 1960
July 1, 2011
Mr. R. Shankar Raman
December 20, 1958
October 1, 2011
Mr. Shailendra Roy
September 18, 1952
March 9, 2012
Name of the Director Ms. Naina Lal Kidwai
Date of Birth
Date of Appointment
on the Board
Qualifications
April 16, 1957
March 1, 2016
Bachelor’s in Economics,
Chartered Accountant and MBA
Vast Experience in the area of
Banking
1. Cipla Limited
2. Max Financial Services
Limited
B.Sc, Engg. (Civil) & MBA
Finance
Vast Experience in Design
and Build (D&B) contracts,
PPP Projects, Engineering and
Construction Industry
1. Larsen & Toubro Infotech
Limited
2. L&T Technology Services
3. Shakti Sustainable Energy
Limited
Foundation
3. L&T Metro Rail (Hyderabad)
4. Altico Capital India Private
Limited
Limited
Expertise
Directorships held
in other public
companies including
private companies
which are subsidiaries
of public companies
(excluding foreign
companies)
Memberships/
Chairmanships of
committees across all
companies
Member
Audit Committee
1. Cipla Limited
2. Altico Capital India Private
Limited
Nomination & Remuneration
Committee
1. Max Financial Services
Limited
2. Altico Capital India Private
Limited
Stakeholders Relationship
Committee
Cipla Limited
Chairman
Stakeholders Relationship
Committee
Larsen & Toubro Infotech
Limited
Corporate Social
Responsibility Committee
Larsen & Toubro Infotech
Limited
Member
Audit Committee
Larsen & Toubro Infotech
Limited
Nomination & Remuneration
Committee
Larsen & Toubro Infotech
Limited
B.Com, ACA and Grad. CWA
B. Tech
Vast experience in the Finance,
Taxation, Risk Management,
Legal and Investor Relations
Vast experience in Thermal
Power, Heavy Engineering,
Defence & Aerospace Industry
1.
2.
3.
4.
5.
6.
7.
8.
9.
L&T Infrastructure
Development Projects
Limited
L&T General Insurance
Company Limited
L&T Finance Holdings
Limited
L&T Investment
Management Limited
Larsen & Toubro Infotech
Limited
L&T Hydrocarbon
Engineering Limited
L&T Seawoods Limited
L&T Realty Limited
L&T Metro Rail (Hyderabad)
Limited
Member
Audit Committee
1.
3.
4.
2.
L&T Finance Holdings
Limited
L&T General Insurance
Company Limited
L&T Infrastructure
Development Projects
Limited
L&T Investment
Management Limited
5.
L&T Realty Limited
6. L&T Seawoods Limited
Nomination & Remuneration
Committee
1. L&T Seawoods Limited
2. L&T Realty Limited
L&T Investment
3.
Management Limited
L&T Infrastructure
Development Projects
Limited
4.
Stakeholder Relationship
Committee
L&T Finance Holdings Limited
1.
2.
3.
4.
5.
6.
7.
L&T Power Development
Limited
L&T-Sargent & Lundy Limited
Nabha Power Limited
L&T-MHPS Boilers Private
Limited
L&T-MHPS Turbine
Generators Private Limited
Raykal Aluminium Company
Private Limited
L&T Special Steels and
Heavy Forgings Private
Limited
L&T-Howden Private Limited
8.
9. L&T Power Limited
Member
Nomination & Remuneration
Committee
1. L&T-Sargent & Lundy Limited
2.
L&T-MHPS Turbine
Generators Private Limited
L&T-MHPS Boilers Private
Limited
L&T Power Development
Limited
3.
4.
5. Nabha Power Limited
6.
L&T Special Steels and
Heavy Forgings Private
Limited
7. L&T Howden Private Limited
Stakeholders Relationship
Committee
Larsen & Toubro Limited
Corporate Social
Responsibility Committee
L&T Power Development Limited
61
Name of the Director Ms. Naina Lal Kidwai
Mr. S. N. Subrahmanyan
Mr. R. Shankar Raman
Corporate Social
Responsibility Committee
1. Larsen & Toubro Limited
2. L&T Seawoods Limited
L&T Investment
3.
Management Limited
L&T Infrastructure
Development Projects
4.
Limited
9 of 9
Mr. Shailendra Roy
9 of 9
Not Applicable
8 of 9
100
Nil
Not Applicable
Not Applicable
Not Applicable
Nil
Nil
Nil
Number of Meetings
attended during the
year
Shareholding of Non-
Executive Directors
Relationships
between directors
inter-se
62
(ANNEXURE TO NOTICE DATED MAY 25, 2016)
DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT AT THE FORTHCOMING
ANNUAL GENERAL MEETING
[Pursuant to Regulation 36(3) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015
and Secretarial Standard 2 on General Meetings]
Name of the Director
Date of Birth
Date of Appointment on
the Board
Qualifications
Expertise
Directorships held in
other public companies
including private
companies which are
subsidiaries of public
companies (excluding
foreign companies)
Mr. Sanjeev Aga
February 1, 1952
May 25, 2016
B.SC (Hons. In Physics), MBA
Vast Experience in Telecom Sector
1. UFO Moviez India Limited
2. Pidilite Industries Limited
3. Idea Cellular Limited
4. Mahindra Holidays & Resorts Limited
5. Manjushree Technopak Limited
6. Subex Limited
7. Mahindra Logistics Limited
Memberships/
Chairmanships of
committees across all
companies
Chairman
Shareholders Grievance Committee
1. Pidilite Industries Limited
2. Idea Cellular Limited
3. Subex Limited
Audit Committee
1. Subex Limited
2. Mahindra Holidays & Resorts Limited
3. Mahindra Logistics Limited
Nomination & Remuneration Committee
1. Subex Limited
2. Mahindra Logistics Limited
Number of Meetings
attended during the year
Shareholding of Non-
Executive Directors
Relationships between
directors inter-se
* Acquired on 10th June, 2016
Not Applicable
3000
Nil
Mr. Narayanan Kumar
January 28, 1950
May 27, 2016
B.E (Electronics)
Industrailist
1. Bharati Infratel Limited
2. Entertainment Network (India) Limited
3. Times Innovative Media Limited
4. MRF Limited
5. Take Solutions Limited
6. Mphasis Limited
7. eG Innovations Private Limited
8. Madhura Kumar Properties Private Limited
9. N.K Trading and Consultancy Private Limited
10. Madhuram Narayanan Centre for Exceptional
Children
11. Cubbon Road Properties Private Limited
12. Nani Palkhivala Arbitration Centre
13. Singapore India Partnership Foundation
14. Aegon Life Insurance Company Limited
Chairman
Audit Committee
1. Mphasis Limited
2. Entertainment Network (India) Limited
Nomination & Remuneration Committee
1. Bharati Infratel limited
2. Entertainment Network (India) Limited
Corporate Social Responsibility Committee
Bharati Infratel Limited
Shareholders/Investors Grievance Committee
Take Solutions Limited
Member
Audit Committee
1. Times Innovative Media Limited
2. Aegon Life Insurance Company Limited
Nomination & Remuneration Committee
1. Times Innovative Media Limited
2. Aegon Life Insurance Company Limited
Not Applicable
1000*
Nil
63
Board Report
Dear Members,
The Directors have pleasure in presenting their 71st Annual
Report and Audited Financial Statements for the year
ended March 31, 2016.
FINANCIAL RESULTS
Particulars
Profit before depreciation,
exceptional and extra ordinary
items & tax
Less: Depreciation, amortisation,
2015-16
crore
2014-15
crore
7127.71
7352.21
impairment and obsolescence
998.88
1009.74
Add: Transfer from Revaluation
Reserve
Profit before exceptional and
extraordinary items and tax
Add: Exceptional Items
Profit before tax
Less: Provision for tax
Profit for the period carried to
6128.83
6342.47
–
1.59
6128.83
560.28
6689.11
1377.65
6344.06
357.16
6701.22
1645.04
Balance Sheet
5311.46
5056.18
3429.11
333.45
2.15
6.14
2.20
86.28
CAPITAL & FINANCE
During the year under review, the Company allotted
19,16,784 equity shares of 2/- each upon exercise
of stock options by the eligible employees under the
Employee Stock Option Schemes.
The Company issued Non-Convertible Debentures (NCDs)
worth 1,000 crore. At maturity, repayment of NCDs
worth 600 crore was also made. The Company tied up
a long-term foreign currency loan of USD 25 million, and
also completed part repayment of a foreign currency long
term debt of USD 5.83 million as per schedule. In addition,
the Company prepaid foreign currency loans worth USD
50 million.
CAPITAL EXPENDITURE
As at March 31, 2016 the gross tangible and intangible
assets including leased Assets, stood at 13,297.13 crore
and the net tangible and intangible assets, including
leased assets, at 7,668.59 crore. Capital Expenditure
during the year amounted to 776 crore.
DEPOSITS
The Company does not have any unclaimed deposits as
of date. All unclaimed deposits have been transferred to
Investor Education & Protection Fund.
DEPOSITORY SYSTEM
As the members are aware, the Company’s shares are
compulsorily tradable in electronic form. As on March
31, 2016, 97.90% of the Company’s total paid up capital
representing 91,18,73,781 shares are in dematerialized
form. In view of the numerous advantages offered by the
Depository system as well as to avoid frauds, members
holding shares in physical mode are advised to avail of the
facility of dematerialization from either of the depositories.
2.13
8734.41
29.33
5330.48
TRANSFER TO INVESTOR EDUCATION AND
PROTECTION FUND
156.50
1699.95
140.88
1997.33
6737.08
1699.95
256.50
1510.54
134.33
1901.37
3429.11
1510.54
The Company sends letters to all shareholders, whose
dividends are unclaimed so as to ensure that they receive
their rightful dues.
During the year, the Company has transferred a sum of
1,51,31,245 to Investor Education & Protection Fund,
the amount which was due & payable and remained
unclaimed and unpaid for a period of seven years as
provided in Section 205C(2) of the Companies Act, 1956.
Despite the reminder letters sent to each shareholder, this
amount remained unclaimed and hence was transferred.
Cumulatively, the amount transferred to the said fund was
14,56,60,404 as on March 31, 2016.
Add: Balance brought forward
from previous year
Less: Dividend paid for the
previous year (Including
dividend distribution tax)
Less: Depreciation charged against
retained earnings
Add: Reversal of deferred tax on
depreciation charged against
retained earnings
Balance available for disposal
(which the directors
appropriate as follows)
Debenture Redemption Reserve
Proposed dividend
Dividend Tax
Balance to be carried forward
Dividend
The Directors recommend
payment of final dividend of
18.25 per share of 2/- each on
93,14,78,845 shares.
64
SUBSIDIARY/ASSOCIATE/JOINT VENTURE COMPANIES
During the year under review, the Company subscribed
to/acquired equity/preference shares in various subsidiary/
associate/joint venture companies. These subsidiaries
include companies in general insurance, power, real estate,
infrastructure and manufacturing sectors. The details of
investments in subsidiary companies during the year are as
under:
A) Shares subscribed/acquired during the year:
Name of the Company
L&T-Valdel Engineering Limited
Larsen & Toubro International FZE, United Arab
Emirates
PNG Tollway Limited
JSK Electricals Limited
L&T-Chiyoda Limited
Name of the company
Type of Shares No. of shares
Rishi Consfab Private Limited
L&T General Insurance Company
Limited
Equity
L&T Global Holdings Limited,
United Arab Emirates
Equity
8,50,00,000
Salzer Electronics Limited
1,000
Number of
shares
11,79,000
1,829
2,15,43,340
21,20,040
45,00,000
27,04,000
26,79,808
L&T Hydrocarbon Engineering
Limited
L&T Metro Rail (Hyderabad)
Limited
Preference
26,00,00,000
Equity
4,92,643
L&T Power Development Limited Equity
38,34,00,000
L&T Realty Limited
Preference
64,83,00,000
L&T Seawoods Limited
Preference
13,22,50,000
L&T Shipbuilding Limited
Preference
133,18,60,000
Preference
60,47,50,000
L&T Uttaranchal Hydropower
Limited
LTH Milcom Limited
Larsen & Toubro Saudi Arabia
LLC, Saudi Arabia
Equity
Equity
Marine Infrastructure Developer
Private Limited
Equity
1,13,340
625
9,990
B) Equity shares sold/transferred during the year:
The Company has formulated a policy on the identification
of material subsidiaries and the same is placed on the
website at http://investors.larsentoubro.com/Listing-
Compliance.aspx. The Company does not have any
material subsidiaries.
C)
Performance and Financial Position of each
subsidiary/associate and joint venture companies:
A statement containing the salient features of the financial
statement of subsidiary/associate/joint venture companies
is provided on pages 390 to 399 of this Annual Report.
PARTICULARS OF LOANS GIVEN, INVESTMENTS
MADE, GUARANTEES GIVEN OR SECURITY PROVIDED
BY THE COMPANY
The Company has disclosed the full particulars of the loans
given, investments made or guarantees given or security
provided on pages 263 to 265 of this Annual Report.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS
WITH RELATED PARTIES
The Audit Committee and the Board of Directors have
approved the Related Party Transactions Policy and the
same has been uploaded on the Company’s website http://
investors.larsentoubro.com/Listing-Compliance.aspx.
Name of the Company
L&T Finance Holdings Limited
L&T Infocity Limited
L&T Natural Resources Limited
L&T Powergen Limited
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T Solar Limited
L&T-Gulf Private Limited
Number of
shares
The Company has a process in place to periodically review
and monitor Related Party Transactions.
8,52,26,706
2,40,30,000
50,000
50,000
6,000
9,53,11,850
50,000
40,00,016
All the related party transactions were in the ordinary
course of business and at arm’s length. The Audit
Committee has approved all related party transactions
for the FY 2015-16 and estimated transactions for FY
2016-17.
There were no material transactions with related parties
during the year.
STATE OF COMPANY AFFAIRS
The gross sales and other income for the financial
year under review were 62,821 crore as against
65
59,841 crore for the previous financial year registering
an increase of 5%. The profit before tax from continuing
operations including extraordinary and exceptional items
was 6,689 crore for the financial year under review
as against 6,701 crore for the previous financial year,
registering a decrease of 0.18%. The profit after tax
from continuing operations including extraordinary and
exceptional items of 5,311 crore for the financial year
under review as against 5,056 crore for the previous
financial year, registering an increase of 5%.
AMOUNT TO BE CARRIED TO RESERVE
The Company has not transferred any amount to the
reserves during the current financial year.
DIVIDEND
The Directors recommend payment of dividend of 18.25
(912.50%) per equity share of 2/- each on the share
capital.
MATERIAL CHANGES AND COMMITMENTS AFFECTING
THE FINANCIAL POSITION OF THE COMPANY,
BETWEEN THE END OF THE FINANCIAL YEAR AND THE
DATE OF THE 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
Information as required to be given under Section 134(3)
(m) read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 is provided in Annexure ‘A’ forming part of
this Board Report.
RISK MANAGEMENT POLICY
The Risk Management Committee comprises of Mr. A. M.
Naik, Mr. S. N. Subrahmanyan and Mr. R. Shankar Raman.
Mr. A. M. Naik is the Chairman of the Committee.
The Company has formulated a risk management policy
and has in place a mechanism to inform the Board
Members about risk assessment and minimization
procedures and periodical review to ensure that executive
management controls risk by means of a properly designed
framework.
A detailed note on risk management is given
under financial review section of the Management
Discussion and Analysis on pages 217 to 219 of this
Annual Report.
CORPORATE SOCIAL RESPONSIBILITY
The Corporate Social Responsibility Committee comprises
of Mr. Vikram Singh Mehta, Mr. D. K. Sen and Mr. R.
Shankar Raman as the Members. Mr. Vikram Singh Mehta
is the Chairman of the Committee.
The details of the various projects and programs
which can be undertaken by the Company as a part
of its CSR policy framework is available on its website
http://investors.larsentoubro.com/Listing-Compliance.aspx.
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.
DETAILS OF DIRECTORS AND KEY MANAGERIAL
PERSONNEL APPOINTED/RESIGNED DURING THE YEAR
Mr. K. Venkataramanan retired as the Chief Executive
Officer and Managing Director of the Company on
September 30, 2015 pursuant to his superannuation
from the services of the Company. The Board places on
record its appreciation of the immense contribution by
Mr. K. Venkataramanan as the Chief Executive Officer and
Managing Director of the Company.
Mr. M. V. Kotwal retired as the Whole-time Director
of the Company on August 26, 2015 pursuant to his
superannuation from the services of the Company. The
Board places on record its appreciation of the immense
contribution by Mr. M. V. Kotwal as a Whole-time Director
of the Company.
Mr. Swapan Dasgupta resigned as Nominee Director of the
Company on May 15, 2016. The Board places on record its
appreciation of the immense contribution by Mr. Swapan
Dasgupta as Director of the Company.
The Board has appointed Mr. Subramanian Sarma as a
Non-Executive Director of the Company w.e.f. August 19,
2015.
During the year the Board has appointed Mr. S. N.
Subrahmanyan as Deputy Managing Director and President
of the Company w.e.f October 1, 2015 for a period of 5
years, subject to approval of the shareholders.
The Board has appointed Mr. D. K. Sen as a Whole-time
Director w.e.f. October 1, 2015 for a period of 5 years,
subject to approval of the shareholders.
The Board has appointed Mr. M. V. Satish as a Whole-
time Director of the Company w.e.f. January 29, 2016
66
for a period of five years, subject to approval of the
shareholders.
The Board has appointed Ms. Naina Lal Kidwai as an
Independent Director of the Company from March 1,
2016 to February 28, 2021, subject to the approval of
the shareholders. Ms. Naina Lal Kidwai, appointed as an
Additional Director, will hold office till the ensuing AGM
and is eligible for appointment.
The Board has appointed Mr. Sanjeev Aga as an
Independent Director of the Company from May 25, 2016
to May 24, 2021, subject to the approval of shareholders.
Mr. Sanjeev Aga, appointed as Additional Director,
will hold office till the ensuing AGM and is eligible for
appointment.
The Board has appointed Mr. Narayanan Kumar as an
Independent Director of the Company at its Meeting
dated May 25, 2016 with effect from May 27, 2016 to
May 26, 2021, subject to the approval of shareholders.
Mr. Narayanan Kumar, appointed as Additional Director,
will hold office till the ensuing AGM and is eligible for
appointment.
Mr. S. N. Subrahmanyan and Mr. A.M Naik retire by
rotation at the ensuing AGM and being eligible offers
themselves for re-appointment. Mrs. Sunita Sharma who
was appointed as a Director in casual vacancy caused due
to the resignation of Mr. N. Mohanraj holds office till the
conclusion of the ensuing AGM and being eligible offers
herself for re-appointment.
It is proposed to re-appoint Mr. R. Shankar Raman as
a Whole-time Director of the Company for a period of
5 years from October 1, 2016 to September 30, 2021,
subject to the approval of the shareholders.
It is proposed to re-appoint Mr. Shailendra Roy as a
Whole-time Director of the Company for the period March
9, 2017 to July 7, 2020, subject to the approval of the
shareholders.
The notice convening the AGM includes the proposal for
appointment/re-appointment of Directors.
The terms and conditions of appointment of the
Independent Directors are placed on the website of
the Company http://investors.larsentoubro.com/Listing-
Compliance.aspx.
responsibilities in the Company and the nature of the
industry in which the Company operates, the business
model of the Company, etc.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
This information is given in Annexure ‘B’ - Report on
Corporate Governance forming part of this Board Report.
Members are requested to refer to page 79 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 & 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 81 to 83 of this Annual Report.
COMPANY POLICY ON DIRECTORS APPOINTMENT
AND REMUNERATION
The Company has in place a Nomination & 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 &
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 83 to 85 of this
Annual Report.
The Committee has formulated a policy on Director’s
appointment and remuneration including recommendation
of remuneration of the key managerial personnel
and other employees, composition and the criteria
for determining qualifications, positive attributes
and independence of a Director. The Committee has
formulated a policy on board diversity.
DECLARATION OF INDEPENDENCE
The Company has received Declarations of Independence
as stipulated under Section 149(7) of the Companies
Act, 2013 from Independent Directors confirming that
he/she is not disqualified from appointing/continuing as
Independent Director. The same are also displayed on the
website of the Company www.larsentoubro.com
The Company has also disclosed on its website
http://investors.larsentoubro.com/Listing-Compliance.aspx
details of the familiarization programs formulated to
educate the Directors regarding their roles, rights and
EXTRACT OF ANNUAL RETURN
As per the provisions of Section 92(3) of the Companies
Act, 2013, an extract of the Annual Return in Form MGT-9
is attached as Annexure ‘F’ to this Board Report.
67
DIRECTORS‘ RESPONSIBILITY STATEMENT
The Board of Directors of the Company confirms:
evaluation of the performance of the Board, Committees,
Chairman and individual directors has to be made.
a)
In the preparation of Annual Accounts, the applicable
accounting standards have been followed along with
proper explanation relating to material departures;
b) The Directors have selected such accounting policies
and applied them consistently and made judgments
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;
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;
d) The Directors have prepared the Annual Accounts on
a going concern basis;
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;
f)
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.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
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 March
31, 2016, 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
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.
PERFORMANCE EVALUATION OF THE BOARD, ITS
COMMITTEES AND DIRECTORS
The Nomination & Remuneration Committee and the
Board have laid down the manner in which formal annual
It includes circulation of questionnaires to all Directors
for evaluation of the Board and its Committees, Board
composition and its structure, its culture, its effectiveness,
its functioning, information availability, etc. These
questionnaires also cover specific criteria and the grounds
on which all Directors in their individual capacity will be
evaluated.
The Individual Directors’ responses on the questionnaire on
the performance of the Board, Committee(s), Directors and
Chairman were analyzed by an independent consultant, to
arrive at unbiased conclusions.
The inputs given by all the Directors were discussed in the
meeting of the Independent Directors held on April 11,
2016, as per Schedule IV of the Companies Act, 2013.
The performance evaluation of the Board, Committees,
Chairman and Directors was also reviewed by the
Nomination & Remuneration Committee and the Board.
DISCLOSURE OF REMUNERATION
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.
The details of employees receiving remuneration
exceeding 5 lakh per month or 60 lakh per annum is
provided in Annexure ‘G’ forming part of this report. In
terms of Section 136(1) of the Act 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. None of the
employees listed in the said Annexure is related to any
Director of the Company.
COMPLIANCE WITH SECRETARIAL STANDARDS ON
BOARD AND ANNUAL GENERAL MEETINGS
The Company has complied with Secretarial Standards
issued by the Institute of Company Secretaries of India on
Board Meetings and Annual General Meetings.
PROTECTION OF WOMEN AT WORKPLACE
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. This has been widely
disseminated. There were no cases of sexual harassment
received by the Company in 2015-16.
68
OTHER DISCLOSURES
There has been no material change in the Employee
Stock Option Schemes (ESOP Schemes) during the current
financial year. The ESOP Schemes are in compliance with
SEBI (Share Based Employee Benefits) Regulations, 2014.
the Act. The policy provides for adequate safeguards
against victimisation of persons who avail the same
and 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.
The disclosures relating to ESOPs required to be made
under the provisions of the Companies Act, 2013 and
the rules made thereunder and the SEBI (Share Based
Employee Benefits) Regulations, 2014 are provided on the
website of the Company www.larsentoubro.com.
The Company has disclosed information about the
establishment of the Whistle Blower Policy on its website
http://investors.larsentoubro.com/corporategovernance.aspx.
During the year, no personnel has been declined access to
the Audit Committee, wherever desired.
A certificate obtained from the Statutory Auditors,
confirming compliance with the Companies Act, 2013 and
the above Regulations is reproduced below :
AUDITORS’ CERTIFICATE ON EMPLOYEE STOCK
OPTION SCHEMES
We have examined the books of account and other relevant
records and based on the information and explanations
given to us, certify that in our opinion, the Company has
implemented the Employees Stock Option Schemes in
accordance with Securities and Exchange Board of India
(Share Based Employee Benefits) Regulations, 2014 and the
resolutions of the Company in general meetings held on 26
August 1999, 22 August 2003 and 25 August 2006.
SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No.38332
Mumbai, May 25, 2016
Pursuant to the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015, a Report on Corporate
Governance and a certificate obtained from the Statutory
Auditors confirming compliance, is provided in Annexure
‘B’ forming part of this Board Report.
VIGIL MECHANISM
As per the provisions of Section 177(9) of the Companies
Act, 2013 (‘Act’), the Company is required to establish an
effective Vigil Mechanism for directors and employees to
report genuine concerns.
The Company has a Whistle-blower Policy in place since
2004 to encourage and facilitate employees to report
concerns about unethical behaviour, actual/suspected
frauds and violation of Company’s Code of Conduct
or Ethics Policy. The Policy has been suitably modified
to meet the requirements of Vigil Mechanism under
BUSINESS RESPONSIBILITY REPORTING
The Company has been one of the first engineering and
construction companies in India to publish its report on
Corporate Sustainability.
As per Regulation 34 of the SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015, a separate
section on Business Responsibility Report forms a part of
this Annual Report (refer pages 18 to 35).
The detailed Corporate Sustainability Report
is also available on the Company’s website
http://www.larsentoubro.com/corporate/sustainability.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS
PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS
During the year under review, there were no material
and significant orders passed by the regulators or courts
or tribunals impacting the going concern status and the
Company’s operations in future.
CONSOLIDATED FINANCIAL STATEMENTS
Your Directors have pleasure in attaching the Consolidated
Financial Statements pursuant to Section 129(3) of
the Companies Act, 2013 and Regulation 34 of the
SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 and prepared in accordance with
the Accounting Standards prescribed by the Institute of
Chartered Accountants of India (ICAI), in this regard.
The Auditors report to the shareholders does not contain
any qualification, observation or adverse comment.
SECRETARIAL AUDIT REPORT
The Secretarial Audit Report issued by M/s. S. N.
Ananthasubramanian & Co., Practicing Company
Secretaries is attached as Annexure ‘E’ to this Board
Report.
The Secretarial Auditor’s report to the shareholders does
not contain any qualification.
69
STATUTORY AUDITORS
REPORTING OF FRAUD
The Company’s auditors M/s. Sharp & Tannan, (firm
registration number 109982W) have already completed
more than ten years as Statutory Auditors of the
Company.
In accordance with provisions of Section 139 of the
Companies Act, 2013 and the Companies (Audit and
Auditors) Rules, 2014, the Company had appointed them
for a period of two years from conclusion of 70th Annual
General Meeting till the conclusion of 72nd Annual General
Meeting. A proposal for ratifying their appointment from
the conclusion of the 71st AGM till the conclusion of the
72nd AGM has been included in the Notice of the ensuing
AGM.
In view of the mandatory rotation of auditor requirement
and to ensure smooth transition during this period,
M/s. Deloitte Haskins & Sells LLP [ICAI Registration No.
117366W/W-100018] was appointed as Statutory Auditors
for a period of 5 continuous years from the conclusion of
70th Annual General Meeting till the conclusion of 75th
Annual General Meeting of the Company. A proposal for
ratifying their appointment from the conclusion of the
71st AGM till the conclusion of the 72nd AGM has been
included in the Notice of the ensuing AGM.
Both the Auditors will be jointly and severally responsible
during the financial year 2016-17.
Sharp & Tannan and Deloitte Haskins & Sells LLP, have
informed the Company that their appointment if made
would be within the limits prescribed under Section 141 of
the Companies Act, 2013.
The Auditors have confirmed that they have subjected
themselves to the peer review process of ICAI and hold
valid certificate issued by the Peer Review Board of the
ICAI.
The Auditors have also furnished a declaration confirming
their independence as well as their arm’s length
relationship with the Company as well as declaring
that they have not taken up any prohibited non-audit
assignments for the Company.
The Auditors of the Company have not reported any fraud
as specified under Section 143(12) of the Companies Act,
2013.
COST AUDITORS
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 its meeting held on May 25, 2016, has
approved the appointment of M/s R. Nanabhoy & Co.,
Cost Accountants as the Cost Auditors for the Company
for the financial year ending March 31, 2017 at a
remuneration of 11 lakhs.
The Report of the Cost Auditors for the financial year
ended March 31, 2016 is under finalization and will be
filed with the MCA within the prescribed period.
A proposal for ratification of remuneration of the Cost
Auditor for financial year 2016-17 is placed before the
shareholders.
ACKNOWLEDGEMENT
Your Directors take this opportunity to thank the
customers, supply chain partners, employees, Financial
Institutions, Banks, Central and State Government
authorities, Regulatory authorities, Stock Exchanges and all
the various 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.
For and on behalf of the Board
A. M. Naik
Group Executive Chairman
(DIN: 00001514)
Mumbai, May 25, 2016
70
Annexure ‘A’ to the Board Report
Information as required to be given under Section 134(3)
(m) read with Rule 8(3) of the Companies (Accounts)
Rules, 2014.
[A] CONSERVATION OF ENERGY:
(i) Steps taken or impact on conservation of energy:
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Maintaining Plant power factor at more than
99% using Automatic Power Factor Correction
Unit to get incentive on Energy bill.
Replacement of Memco diode based welding
machines with zuper arc inverter welding
machines at Kancheepuram factory.
Automation of shop floor, gangway, street lights
to prevent energy wastages.
Process cooling tower fan operation converted
from manual mode to Automatic mode operation
through low cost automation.
Compressed air optimization through “Tag your
Leak” survey.
Installation of dedicated portable compressor
at under-carriage shop & detachment of air
connection from central compressor to save air
consumption.
Conducting awareness campaign, observing
‘Walk-to-Work’ day on 2nd Saturday of every
month at Kansbahal works.
(cid:3)(cid:122)
Reactive power compensation to maintain Power
Factor at Unity.
(cid:3)(cid:122) Maximizing 3rd shift Utilization.
(cid:3)(cid:122)
Auto switching of Plating tanks heaters to
eliminate practice of keeping heaters ’ON‘ in 3rd
shift.
(cid:3)(cid:122) Movement/presence detectors at shop floor.
(cid:3)(cid:122)
VFD Installation for Air Compressor
(cid:3)(cid:122)
Replacement of conventional MH Lamps by LED
lamps in working areas at projects as well as for
street lights
(cid:3)(cid:122)
Optimizing Working hours reduced from 17 hrs
to 9 hrs
(cid:3)(cid:122)
Installation of HVLS Fan
(cid:3)(cid:122)
(cid:3)(cid:122)
Auto Timer for Mechanical presses to avoid idle
running
Use of Flood light LED instead of Halogen in
campuses
(cid:3)(cid:122)
Retrofitting of LED fixtures in place of CFL Fixtures
(cid:3)(cid:122)
(cid:3)(cid:122)
Use of Power Management System for
monitoring & control
Close monitoring of lighting system by providing
dedicated team to avoid unwanted lighting
power.
(cid:3)(cid:122)
Use of natural cooling during winter
(cid:3)(cid:122)
Synchronization of lifts for effective use
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Optimization of Air Compressor operation by
connecting 200 cfm Air Compressor exclusively
for Shot Blasting Operation.
Replacing existing aged inefficient Split AC units
with energy efficient units
Utilization of Chiller for HVAC System – Campus
FMD initiated and control the chiller running hour
for HVAC need during holidays and extended
working hours
Automation in Galvanizing Furnace in order to
maintain constant Air-Fuel Ratio & Maintain
working Temperature
Providing Magnetic Resonators in order to
increase the combustion Efficiency of Fuel (LPG).
Replacement of 20 years old Acid Fumes Blowers
(100HPx2Nos.) with Energy Efficient Blowers of
50HPx2Nos with improved suction of Fumes.
Replacement of rotor resistance controlled starter
to Drive controller starter for EOT cranes resulting
smooth operation and energy saving.
(cid:3)(cid:122)
Introduction of VSD based compressor
(cid:3)(cid:122)
(cid:3)(cid:122)
Conversion of Process cooling tower fan
operation from manual mode to automatic mode
operation through low cost automation.
Installation of diffusers and blowers in waste
water treatment plants instead of conventional
surface aerators, which will lead to energy
savings by 12 - 15%.
71
(cid:3)(cid:122)
Use of photo electric sensors for lighting control
in Integrated Urban Utility Projects/Industrial
Township Projects.
(cid:3)(cid:122)
To replace old welding machines with new
machines with inverter technology to reduce no
load loss and overall consumption
(cid:3)(cid:122)
Installation of solar street lighting in Integrated
Urban Utility Projects/Industrial Township Projects.
[B] TECHNOLOGY ABSORPTION:
(i) Efforts made towards technology absorption:
(cid:3)(cid:122) Water conserved compared to previous year &
(cid:3)(cid:122)
power saved
Various models of semi-mobile skid mounted
crushing unit (with Feeder Breaker, Roll Crusher &
Impactor) have been developed to meet specific
applications for crushing.
(cid:3)(cid:122)
Separation of Sand by air classifier.
(cid:3)(cid:122)
Adaptation of mobile crushing technology.
(cid:3)(cid:122)
Development of new, cost-optimized meter
platforms that offer better features, development
and integration of modules to facilitate remote
communication of meter data over Radio/GSM.
(cid:3)(cid:122)
Development of Pre-Paid Meters, Smart Meters,
Protective Relays and Panel Meters.
(cid:3)(cid:122)
Local RMU manufacturing.
(cid:3)(cid:122)
(cid:3)(cid:122)
Tie-up with Italian company for L&T branded
Solar inverter.
Strategic alignment with IOmniscient (Australian
company) for its video analytics speciality.
(cid:3)(cid:122)
Introduction of “SMART Comm” solution.
(cid:3)(cid:122)
Introduction of 52”Hydraulic Tire Curing Press,
45” Tire Curing Press (TCP), 104” Tire Curing
Press and 42” Bladder Curing Press.
(cid:3)(cid:122)
Tyre building machines for Off the road tyres.
(cid:3)(cid:122)
Large Truck radial Multi stage tire building
(cid:3)(cid:122)
Tyre plant Automation Systems.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Development of newer variants of Wheel Loader
and Compactors designed for ease of use, simpler
handling and easier maintenance.
Development of 5.5 M Sensor Asphalt Paver
Development.
Development of Pneumatic Tire Roller & Skid
Steer Loaders.
Indigenization of various components for Rubber
Processing Machinery by designing, developing
specifications and adapting to international
conditions.
(cid:3)(cid:122)
Use of Small Solar Generating sets for area and
security post lighting. Also few weigh bridges are
powered by solar electric generation sets.
(cid:3)(cid:122)
Use of Hybrid Lighting Masts thereby saving on
fuel and energy.
(ii) Steps taken by the Company for utilizing
alternate sources of energy:
(cid:3)(cid:122)
Shift towards usage of windmill power in the
place of State Electricity Board at Kancheepuram
factory
(cid:3)(cid:122)
Installing Solar panels on Rooftop
(cid:3)(cid:122)
Solar street at ESE campus
(cid:3)(cid:122)
Use of natural lights in cafeteria.
(cid:3)(cid:122)
Solar Panels installed at project sites.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Power generation through Solar Roof top PV
installation.
Annual Power Generation through 1.5 KW solar
system (KWHR) & Solar Stand-alone system
Shift towards usage of power generated through
windmill power
(iii) Capital investment on energy conservation
equipments:
(cid:3)(cid:122)
(cid:3)(cid:122)
Energy conservation initiatives to be taken in
water circulating pumps
Explore the opportunities for installation of
“Stand by Loss” Automation arrangement for
critical plant and machinery
(cid:3)(cid:122)
Energy conservation in Air handling units
Spread awareness campaign for water
conservation in line with Energy conservation
Proposal for replacing all lamps with LED for High
mast towers
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
72
Installation of Astronomical intelligent controller
for light mast towers
(cid:3)(cid:122) Mechanistic and volumetric evaluation of asphalt
layers of major highway projects in India.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Development of cement grouted bituminous
macadam for high speed corridors, expressways,
aprons and ports.
Development of emulsion based cold mixes with
recycled aggregates for base and binder courses
in highway projects.
Industrial scale production of stockpile, all
weather cold pot-hole mix for infra project sites.
Development of special testing facility for
preformed fillers in rigid pavements.
Development of alternate curing techniques for
conventional concrete.
Development air cured, no cement Geo-polymer
concrete for structural applications.
Development of high strength (M100) Self-
Consolidating Concrete.
Development of low cement and impermeable
Plastic concrete for Dam structures.
Development of special testing facility for water
proofing sealants.
(cid:3)(cid:122)
Development of dry mortar for buildings.
(cid:3)(cid:122)
Development of indigenous cementitious grout
for precast application.
(cid:3)(cid:122) Mechanical Studies on light weight concrete for
structural application.
(cid:3)(cid:122)
Development of polymer modified mortar for
multilevel carparks.
(cid:3)(cid:122) Mechanical studies on Grouted bar coupler
systems.
(cid:3)(cid:122) Mechanical studies on special Macalloy and FRP
Rebars.
(cid:3)(cid:122)
Development of SCC piles for solar power fields
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Development of smart measuring system for
application in construction sites.
Development of precast sandwich panels for
buildings
Seismic qualification tests on different types of
horizontal connections of precast shear wall
panels using splice sleeve coupler and corrugated
GI dowel tubes.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Horizontal connection system with stretchable
PVC hose for horizontal connection of shear wall
panels.
Project scale production and application of
pumpable dry cement mortar at New Delhi.
Use of special economical mix design of cold mix
with RAP as a substitute of conventional DBM
layer in Odisha Project.
Use of in-house developed cold pot-hole mix
instead of proprietary products for pavement
rectification works in the CMRL project site after
the Chennai Floods.
Use of in-house developed self-compacting
concrete in pile foundations of major 3 solar
power projects of Tamil Nadu and Andhra
Pradesh.
Use of impermeable plastic concrete in Dam
project, Andhra Pradesh.
Release of a comprehensive handbook on precast
construction for buildings to promote mass
buildings with latest, time and cost effective
precast concrete technology.
Rectification of distressed concrete structure due
to chemical fumes through special SCC.
Application of light weight concrete in
institutional buildings.
Combustion air Blower control through Drive
at Galvanizing by replacing the starter with
drive control (VFD) so as to adjust motor speed
according to the requirements.
(cid:3)(cid:122) Magnetic resonators – for Streamlining LPG flow
and reducing the consumption (at galvanizing)
through Installation of Magnetic resonators in
order to increase the combustion Efficiency of
Fuel (LPG).
(cid:3)(cid:122)
(cid:3)(cid:122)
Testing of a tower of height 101.3 metres and
voltage rating of 380kV for a utility client in Saudi
Arabia which stands as the tallest tower tested in
India as on date.
Installation of Pressure Transducer in Airline
through Pressure Transducer and VFD control
Air Pressure by modifying the electrical circuit,
utilizing feedback of Transducer to control the
RPM of Motor through VFD and maintaining
73
constant line pressure of 6 bar in Airline by
controlling the Motor RPM.
(cid:3)(cid:122)
Automatic air fuel ratio & temperature control
of galvanizing furnace through Human
Machine Interface (HMI) system which comprise
automatic LPG flow control valve, VFD controlled
Combustion Air Blower, VFD controlled Flue Gas
Blower & Temperature sensors
(cid:3)(cid:122)
Developing in-house design of 70m high
reinforced earth wall for Kannur International
Airport project.
(cid:3)(cid:122) Mechanization of track laying implemented for
faster progress of work and better quality with
reduced workforce
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
In-house Ballast less track design being
successfully implemented.
Simulation in Design through initiated adoption
of the e-trax Simulation Software for design,
analysis, optimization, operation & automation of
AC railway traction power systems
In-house 3D modelling of Traction Power System
using AutoCAD software for electrical clearance
study of traction system
Automatic Generation of OHE Construction &
Traction Supply Control Post Drawing and Bill of
Material using Bentley-Power Rail V8i software
thereby reduction of 50% of man-days as
compared to conventional method and achieving
100% accuracy.
Use of renewable energy for powering CCTV
cameras, on pilot basis, by integration of solar
photovoltaic modules with junction poles at
Mumbai City Surveillance Project.
Development of an Innovative Test Lab as part of
a larger Center of Excellence for testing software
applications at Mumbai.
Development of printed circuit switch board
for CNC Gas cutting machine & assembly of
components done in-house.
Indigenous development of rewinding process for
High frequency grinders for AG7 Model of Fein &
Bosch makes.
Servicing of Chopper assembly which is a major
spare in Hypertherm power source imported
from Germany by replacing alternate indigenous
spares.
74
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Introduction of Automatic loading system of 12m
ISMC channels in Section shearing machine.
Introduction of Common Heater arrangement
and single stage regulator in CO2 gas manifold
system to reduce the gas consumption.
Implementation of Electrically adjustable inverter
feed drive instead of mechanical variation system
Installation of Impregnate Painting System for
Timber Beam
Development of De-coiling machine unloading
rack opening automation.
Development of Prima 12R & Prima 13 Plus
machine fixed blade modified with split type to
reduce the cost and material.
(cid:3)(cid:122) Modification and fixing angular plates through
use of triangular and rectangular rings to avoid
damage.
(cid:3)(cid:122) Water consumption reduced to arrest the leakage
and unwanted usage. (E,g. we reduce the water
consumption 1,32,000 litres per month compare
to previous year)
(cid:3)(cid:122) Modified the Prima 12 R machine Bending
gear intermediate gear to avoid the frequent
breakdown and also reduced cost.
(cid:3)(cid:122)
Development of Boom Cylinder locking system
in Pick and Carry crane to avoid the frequent
breakdown and oil leakage.
(cid:3)(cid:122)
Use of Modular Construction Technology in
Nuclear Power Plant Construction
(cid:3)(cid:122) Modular construction technology is being
adopted for the erection of 6mm thick carbon
steel liner panels for IC wall and top dome lining
for Kakrapar Nuclear Power Plant in Gujarat. This
technology reduced the project duration leading
to early commissioning.
(cid:3)(cid:122)
(cid:3)(cid:122)
Development and use of Hinged Launching Girder
in metro rail project.
A segmental bridge launching girder with hinge
mechanism has been developed and adopted
in metro construction projects. This Launching
girder is capable of erecting bridges in congested
urban environment with sharp radius of curvature
(radius up to 130m) without need for ground
supports and thus leading to efficient design and
construction with least disturbance to existing
traffic flow.
pavement related issues like rutting, pot holes,
cracking, etc.
(ii)
Benefits derived like product improvement, cost
reduction, product development or import substitution:
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Development of new range of products (Sand
Plant) to meet specific application requirement for
crushing.
Development of printed circuit switch board
for CNC Gas cutting machine & assembly of
components done in-house.
Indigenous development of rewinding process for
High frequency grinders for AG7 Model of Fein &
Bosch makes.
Introduction of new products like New 1-phase
Meter with IrDA, 3-Phase Meter with IrDA,
1-Phase Pre-Paid Meter (Taurus), 3-phase Pre-Paid
Meter (Atria), 1-Phase Smart Meter (Aurora),
3-Phase Smart Meter (Regor), 3-Phase Digital
Panel Meter (Nova) , New Trip Supervision Relay
(TCS01-nX) & Motor Protection Relay (MPR200).
Introduction of L&T’s Outdoor Compact
substation- N-Qube following Franchisee model.
Introduction of a new variant to the GIS (Gas
insulated switchgear) family.
Continuous product development in the
switchgear business at its various Department
of Scientific & Industrial Research, Ministry of
Science & Technology accredited R&D facilities
in India and filing 114 Patent, 12 Trademark, 37
Design and 1 Copyright applications in India and
2 foreign patent applications.
Expansion of switchgear product range and
offerings to the infrastructure sector.
Identification of major causes of pre-mature
failure of asphalt layers of pavements and
suggesting suitable preventive and rectification
techniques.
Development of in-house developed stockpile,
all weather cold pot-hole mix which was 25%
cheaper than any proprietary product available in
the market.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Use of Emulsion based cold mixes with Reclaimed
Asphalt Pavement materials as they are more
environmental friendly over conventional
bituminous mixes.
Use of alternate curing techniques to reduce/
eliminate the usage of water for concrete curing.
Use of Geo polymer concrete which ensures
elimination of cement from construction
activities.
Use of the high strength self-consolidation
concrete is very essential for high rise building
and congested reinforced section especially in
girders and segment of metro rail projects.
Use of in-house developed pumpable dry
mortar which is found to be 40% cheaper than
proprietary products.
Use of economical indigenous developed testing
gadgets as worthy substitutes for costly foreign
imports.
Economical and cost effective piles in solar
projects thus saving time.
Alternate and economical connection systems
connections of precast shear wall panels
Stretchable PVC hose for horizontal connection
of shear wall panels is cost effective and
construction friendly
Use of Fixed-Bed Biofilm Activated Sludge (FBAS)
in Bhatpara Wastewater Treatment Plant, West
Bengal. The plant has better aesthetics as the
reactor is covered by the plant racks. The plant
also has smaller carbon foot print and lower
operating cost.
Implementation of Ultra Violet (UV) disinfection
system for secondary treated wastewater. This
is preferred over the conventional chlorination
system which has harmful side effects due to the
presence of carcinogens in residual chlorine.
(cid:3)(cid:122)
Use of Vortex Grit Removal in Sewage Treatment
Plant which is preferred over the conventional grit
removal system for its high grit
(cid:3)(cid:122)
Use of Cement grouted bituminous macadam
as a cost effective and durable solution to many
(cid:3)(cid:122)
Stopping the loading & unloading function of Air
Compressor.
75
(iii) Information regarding technology imported
(iv) Expenditure incurred on Research & Development:
during the last 3 years:
S.
No.
Technology
Imported
Year of
Import
Status of absorption
& reasons for non-
absorption, if any
a)
Cone Crusher
from ARD (UK)
b)
Dry Sand
Making
Systems,
Air Screens,
Vertical Shaft
Impactors
(VSI) and Jaw
Crushers (STJ)
from KEMCO,
Japan.
2015-16 Under absorption - The
technology transfer
for manufacturing and
application of cone
crusher is underway.
Cone crushers as per
ARD technology are to
be manufactured and
put into operation for
testing and experiment.
2013-14 Manufacturing
Technology of Sand
Plant has been
absorbed. Application
technology is in the
process of absorption.
Sand manufacturing
plant is under
manufacturing now.
It is to be installed
and operation is to
be studied for Indian
crusher dust.
Capital
Recurring
Total
Total R&D expenditure as a percentage
of total turnover
crore
2015-16
53.93
149.62
203.55
0.34%
[C] FOREIGN EXCHANGE EARNINGS AND OUTGO:
Foreign Exchange earned
Foreign Exchange saved/deemed
exports
Total
Foreign Exchange used
crore
2015-16
11089.03
916.28
12005.31
11284.10
76
Annexure ‘B’ to the Directors’ Report
A. CORPORATE GOVERNANCE
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. Corporate Governance enables an organization to perform efficiently and ethically generate long term wealth
and create value for all its stakeholders.
The Company believes that sound Corporate Governance is critical for enhancing and retaining investor trust
and your Company 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 has 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.
B. COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY
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.
C. THE GOVERNANCE STRUCTURE
The Company has four tiers of Corporate Governance structure, viz.:
(i) Strategic Supervision – by the Board of Directors comprising the Executive Directors, Non-Executive Directors
and Independent Directors.
(ii) Executive Management – by the Corporate Management comprising of the Group Executive Chairman, the
Deputy Managing Director, 4 Executive Directors, 1 Non-Executive Director, 3 Senior Managerial Personnel and
one Advisor to the Chairman.
(iii) Strategy & Operational Management – by the Independent Company Boards of each Independent Company
(IC) comprising of representatives from the Company Board, Senior Executives from the IC and independent
members.
(iv) Operational Management – by the Business Unit (BU) Heads.
The four-tier governance structure, besides ensuring greater management accountability and credibility, facilitates
increased autonomy to businesses, performance discipline and development of business leaders, leading to
increased public confidence.
D. ROLES OF VARIOUS CONSTITUENTS OF CORPORATE GOVERNANCE IN THE COMPANY
a. Board of Directors (the Board):
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 reviews and
approves management’s strategic plan & business objectives and monitors the Company’s strategic direction.
b. Executive Management Committee (EMC):
The EMC plays an important role in maintaining the linkage between IC’s and the Company’s Board as well as
in realizing inter-IC synergies and benefits across ICs. The key responsibilities of the EMC include approval of
policies cutting across IC’s and also at Corporate level, covering capital investments, expansions, customer and
supplier synergy, Corporate Social Responsibility (CSR) and reviewing the consolidated financials and budgets
before they are presented to the Company Board.
77
c. Group Executive Chairman (GEC):
The GEC is the Chairman of the Board and the Executive Management Committee. His primary role is to
provide leadership to the Board and the Corporate Management for realizing the approved strategic plan and
business objectives. He presides over the Board and the Shareholders’ meetings. The GEC provides leadership
and devotes his full attention to certain core actions which include, inter alia, focus on restructuring, mentoring
of senior executives, succession planning and corporate governance. He is the interface for critical Government
entities and major customers of the Company and Group Companies. He also provides support to the Company
and its Group Companies, wherever necessary.
d. Executive Directors (ED)/Senior Management Personnel:
The Executive Directors, as members of the Board, along with the Senior Management Personnel in the
Executive Management 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.
e. Non-Executive Directors (NED)/Independent Directors:
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,
etc., besides providing the Board with valuable inputs.
f.
Independent Company Board (IC Board):
As a part of Lakshya 2016, the Company developed an Organisation Structure to include Hybrid Holding
Company. Accordingly, 10 Independent Companies (ICs) (not legal entities) were created. These ICs are
managed by their internal “Board” comprising of Senior Executives, Non-Executive Director/Independent
Director of the Company’s Board and 2-3 Independent external Members. This structure has enabled the
Company to empower people and achieve substantial growth in the business.
Looking to the opportunities in International market, especially in GCC countries, Company took an additional
initiative of developing the structure, processes and leadership specifically in GCC countries.
E. BOARD OF DIRECTORS
a. Composition of the Board:
The Company’s policy is to have an appropriate mix of Executive, Non-Executive & Independent Directors.
As on March 31, 2016, the Board comprised of the Group Executive Chairman, the Deputy Managing
Director & President, 4 Executive Directors, 4 Non-Executive Directors (3 representing financial institutions)
and 10 Independent Directors. The composition of the Board, as on 31st March, 2016, is in conformity with
the provisions of the Companies Act, 2013 and Regulation 17 of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015 in this respect.
b. Meetings of the Board:
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 also if necessary, in locations, where the Company operates. 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, 9 meetings were held on April 3, 2015, April 4, 2015, May
2, 2015, May 30, 2015, May 31, 2015, July 31, 2015, September 21, 2015, October 30, 2015 and January 29,
2016.
The Independent Directors held two meetings during the financial year on July 30, 2015 and September 21,
2015 primarily to discuss succession planning and functioning of the ICs and the IC Boards.
The Independent Directors also met on April 11, 2016 to discuss the performance evaluation of the Board,
Committees, Chairman and the individual Directors.
The Company Secretary prepares the agenda and the explanatory notes, in consultation with the Group
Executive Chairman and circulates the same in advance to the Directors. Every Director is free to suggest
78
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, when necessary. Presentations are made on business operations to the
Board by Independent Company/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 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 Group Executive Chairman. Thereafter the minutes are signed by the
Chairman of the Board at the next meeting.
The following is the composition of the Board of Directors as on March 31, 2016. Their attendance at the
Meetings during the year and at the last Annual General Meeting is as under:
Name of Director
Category
Meetings held
during the year
Mr. A. M. Naik
Mr. K. Venkataramanan @
Mr. M. V. Kotwal #
Mr. S. N. Subrahmanyan*
Mr. R. Shankar Raman
Mr. Shailendra Roy
Mr. D. K. Sen $
Mr. M. V. Satish %
Mr. M. M. Chitale
Mr. Subodh Bhargava
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Sushobhan Sarker (Note 1)
Mr. Adil Zainulbhai
Mr. Akhilesh Gupta
Mr. Bahram Vakil
Mr. Swapan Dasgupta (Note 2)!
Mrs. Sunita Sharma (Note 1)
Mr. Thomas Mathew T.
Mr. Ajay Shankar
Mr. Subramanian Sarma &
Ms.Naina Lal Kidwai^
Meetings held during the year are expressed as number of meetings eligible to attend.
Note: 1. Representing equity interest of LIC
GEC
CEO & MD
ED
DMD
ED
ED
ED
ED
ID
ID
ID
ID
NED
ID
ID
ID
NED
NED
ID
ID
NED
ID
9
7
6
9
9
9
2
1
9
9
9
9
9
9
9
9
9
9
9
5
3
–
No of Board
Meetings
attended
9
6
6
8
9
9
2
1
9
9
8
8
8
8
8
4
9
7
9
5
3
–
Attendance at
last AGM
YES
YES
YES
NO
YES
YES
NA
NA
YES
NO
NO
YES
YES
YES
NO
NO
NO
YES
YES
YES
NO
NA
2. Representing equity interest of SUUTI
& appointed as a Director w.e.f. 19.08.2015
@ retired as a director w.e.f. 30.09.2015
$ appointed as a Director w.e.f. 01.10.2015
^ appointed as a Director w.e.f. 01.03.2016
GEC – Group Executive Chairman
ED – Executive Director
NED – Non-Executive Director
1. None of the above Directors are related inter-se.
# retired as a director w.e.f. 26.08.2015
* Whole-time Director upto 30.09.2015 and appointed as
DMD w.e.f. 01.10.2015
% appointed as a Director w.e.f. 29.01.2016
! ceased to be a Director w.e.f 15.05.2016
DMD - Deputy Managing Director & President
CEO & MD – Chief Executive Officer and Managing Director
ID – Independent Director
2. None of the Directors hold the office of director in more than the permissible number of companies under
the Companies Act, 2013 or Regulation 25 of the SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015.
79
As on March 31, 2016, the number of other Directorships & Memberships/Chairmanships of Committees of the
Board of Directors are as follows:
Name of Director
Mr. A. M. Naik
Mr. S. N. Subrahmanyan
Mr. R. Shankar Raman
Mr. Shailendra Roy
Mr. D. K. Sen
Mr. M. V. Satish
Mr. M. M. Chitale
Mr. Subodh Bhargava
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Sushobhan Sarker
Mr. Adil Zainulbhai
Mr. Akhilesh Gupta
Mr. Bahram Vakil
Mr. Swapan Dasgupta@
Mrs. Sunita Sharma
Mr. Thomas Mathew T.
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
No of other company
Directorships
3
3
9
9
1
–
9
7
4
6
2
7
1
5
1
6
4
1
1
2
No. of Committee
Membership
–
–
7
3
–
–
3
3
5
1
2
2
–
4
1
1
2
1
–
2
No. of Committee
Chairmanship
–
–
–
–
–
–
4
1
2
–
–
2
–
–
–
2
–
–
–
–
@ ceased to be a Director w.e.f May 15, 2016
(cid:122)
Committee memberships include memberships of Audit Committee and Stakeholders’ Relationship
Committee in all public limited companies (whether listed or not) and excludes private limited companies,
foreign companies and Section 8 companies.
(cid:122)
The Committee Chairmanships/Memberships are within the limits laid down in Regulation 26 of the SEBI
(Listing Obligations & Disclosure Requirements) Regulations, 2015.
c.
Information to the Board:
The Board of Directors has complete access to the information within the Company, which inter alia includes -
(cid:122)
Annual revenue budgets and capital expenditure plans
(cid:122)
Quarterly results and results of operations of ICs and business segments
(cid:122)
Financing plans of the Company
(cid:122) Minutes of meeting of Board of Directors, Audit Committee, Nomination & Remuneration Committee,
Stakeholders Relationship Committee, Corporate Social Responsibility Committee and Risk Management
Committee
(cid:122)
Details of any joint venture, acquisitions of companies or collaboration agreement
(cid:122)
(cid:122)
(cid:122)
Quarterly report on fatal or serious accidents or dangerous occurrences, any material effluent or pollution
problems
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
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
80
(cid:3)(cid:122)
Developments in respect of human resources
(cid:3)(cid:122)
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
d.
Post-meeting internal communication
system:
The important decisions taken at the Board/
Committee meetings are communicated to the
concerned departments/ICs promptly. An Action
Taken Report is presented to the Board.
F. BOARD COMMITTEES
The Board currently has 5 Committees: 1) Audit
Committee, 2) Nomination & Remuneration
Committee, 3) Stakeholders’ Relationship Committee,
4) Corporate Social Responsibility Committee and
5) Risk Management Committee. The terms of
reference of the Board Committees are governed
by relevant legislation and/or determined 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
Chairman. The role and composition of these
Committees, including the number of meetings held
during the financial year and the related attendance
are provided below.
1) Audit Committee
i) Terms of reference:
The role of the Audit Committee includes the
following:
(cid:3)(cid:122)
(cid:3)(cid:122)
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.
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.
(cid:3)(cid:122)
Approval of payment to statutory
auditors for any other services rendered
by the statutory auditors.
(cid:3)(cid:122)
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
concern.
(cid:3)(cid:122)
Reviewing, with the management, the
annual financial statements and the
audit report before submission to the
board for approval, with particular
reference to:
1. Matters required to be included
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
2. Changes, if any, in accounting
policies and practices and reasons
for the same
3. Major accounting entries involving
estimates based on the exercise of
judgment by management
4. Significant adjustments made in the
financial statements arising out of
audit findings
5. Compliance with listing and other
legal requirements relating to
financial statements
6. Disclosure of any related party
transactions
7. Qualifications in the draft audit
report.
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 monitoring
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.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Reviewing, with the management,
performance of statutory and internal
81
auditors, and adequacy of the internal
control systems.
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, frequency and
performance of internal audit.
Discussion with internal auditors about
any significant findings and follow up
there on.
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.
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.
To review the functioning of the Whistle
Blower Mechanism.
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 & background, etc. of the
candidate.
Carrying out any other function as is
mentioned in the terms of reference of
the Audit Committee.
The recommendation for appointment,
remuneration and terms of appointment
of cost auditors of the company.
Review and monitor the auditor’s
independence and performance, and
effectiveness of audit process.
Review the management discussion and
analysis of financial condition and results
of operations.
Approval or any subsequent modification
of transactions of the company with
related parties.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Scrutiny of inter-corporate loans and
investments.
Valuation of undertakings or assets of
the company, wherever necessary.
Evaluation of internal financial controls
and risk management systems.
(cid:3)(cid:122) Monitoring the end use of funds raised
through public offers and related
matters.
Minutes of the Audit Committee Meetings
are circulated to the Board of Directors and
discussed, if necessary.
ii) Composition:
The Audit Committee of the Board of
Directors was formed in 1986 and as
on March 31, 2016 comprised three
Independent Directors and 1 Non-Executive
Director.
iii) Meetings:
During the year ended March 31, 2016, 8
meetings of the Audit Committee were held
on April 11, 2015, May 29, 2015, July 31,
2015, October 29, 2015, November 7, 2015,
January 28, 2016, February 15, 2016 and
March 18, 2016.
In addition to the above, the members of
the Audit Committee also meet without the
presence of management.
The attendance of Members at the Meetings
was as follows:
Name
Status
Chairperson
Mr. M. M. Chitale
Member
Mr. M. Damodaran
Mr. Akhilesh Gupta #
Member
Mr. Sushobhan Sarker Member
Member
Mr. Bahram Vakil @
No. of
meetings
during
the year
8
8
3
8
5
No. of
Meetings
Attended
8
8
2
6
0
Meetings held during the year are expressed
as number of meetings eligible to attend.
# ceased to be a member w.e.f. 31.07.2015
@ appointed as a member w.e.f.31.07.2015
All the members of the Audit Committee are
financially literate and have accounting or
related financial management expertise.
82
The Whole-time Director & Chief Financial
Officer and Internal Auditor are permanent
invitees to the Meetings of the Audit
Committee. The Company Secretary is the
Secretary to the Committee.
iv) Internal Audit:
The Company has an internal corporate
audit team consisting of Chartered
Accountants, Cost Accountants and
Engineers. Over a period of time, the
Corporate Audit department has acquired
in-depth knowledge about the Company,
its businesses, its systems & procedures,
which knowledge is now institutionalized.
The Company’s Internal Audit function is ISO
9001:2008 certified. The Head of Corporate
Audit Services is responsible to the Audit
Committee. The staff of Corporate Audit
department is rotated periodically.
From time to time, the Company’s systems
of internal controls covering financial,
operational, compliance, IT applications,
etc. are reviewed by external experts.
Presentations are made to the Audit
Committee on the findings of such reviews.
2) Nomination & Remuneration Committee (NRC)
i) Terms of reference:
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Identify persons who are qualified to
become directors and who may be
appointed in senior management in
accordance with the criteria laid down
by the Committee;
Recommend to the Board appointment
and removal of such persons;
Formulate criteria for determining
qualifications, positive attributes and
independence of a director;
(cid:3)(cid:122)
Devise a policy on Board diversity;
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Formulation of criteria for evaluation
of directors, Board and the Board
Committees;
Carry out evaluation of the Board and
directors;
Recommend to the Board a policy,
relating to remuneration for the
directors and key managerial personnel
(KMP);
(cid:3)(cid:122)
Administration of Employee Stock
Option Scheme (ESOS).
ii) Composition:
The Committee has been in place since
1999. As at March 31, 2016, the Committee
comprised of 3 Independent Directors and
the Group Executive Chairman.
iii) Meetings:
During the year ended March 31, 2016, 7
meetings of the Nomination & Remuneration
Committee were held on April 3, 2015, May
30, 2015, July 31, 2015, September 21,
2015, October 30, 2015, January 29, 2016
and February 23, 2016.
The attendance of Members at the Meetings
was as follows:
Name
Status
No. of
Meetings
Attended
No. of
meetings
during
the year
Mr. Subodh Bhargava
Chairperson
Mr. A. M. Naik
Member
Mr. Adil Zainulbhai
Member
Mr. Thomas Mathew
T. $
Member
7
7
7
6
7
7
6
6
Meetings held during the year are expressed
as number of meetings eligible to attend.
$ appointed as a member w.e.f. 03.04.2015
iv) Board Membership Criteria:
While screening, selecting and
recommending to the Board new members,
the NRC ensures that the Board is objective,
there is absence of conflict of interest,
ensures availability of diverse perspectives,
business experience, legal, financial &
other expertise, integrity, managerial
qualities, practical wisdom, ability to
read & understand financial statements,
commitment to ethical standards and values
of the Company and ensure healthy debates
& sound decisions.
While evaluating the suitability of a
Director for re-appointment, besides the
above criteria, the NRC considers the past
performance, attendance & participation
83
in and contribution to the activities of the
Board by the Director.
The Independent Directors comply with the
definition of Independent Directors as given
under Section 149(6) of the Companies
Act, 2013 and Regulation 16(1)(b) of
the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015. While
appointing/re-appointing any Independent
Directors/Non-Executive Directors on the
Board, the NRC considers the criteria as
laid down in the Companies Act, 2013
and Regulation 16(1)(b) of the SEBI (Listing
Obligations & Disclosure Requirements)
Regulations, 2015.
All the Independent Directors give a
certificate confirming that they meet the
“independence criteria” as mentioned in
Section 149(6) of the Companies Act, 2013
and SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015.
These certificates have been placed on the
website of the Company.
v) Remuneration Policy
The remuneration of the Board members
is based on the Company’s size & global
presence, its economic & financial position,
industrial trends, compensation paid by the
peer companies, etc. Compensation reflects
each Board member’s responsibility and
performance. The level of compensation
to Executive Directors is designed to be
competitive in the market for highly qualified
executives.
The Company pays remuneration to
Executive Directors by way of salary,
perquisites & retirement benefits (fixed
components) & commission (variable
component), based on recommendation
of the NRC, approval of the Board and the
shareholders. The commission payable is
based on the 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.
The Independent Directors/Non-Executive
Directors are paid remuneration by way of
commission & sitting fees. The Company
pays sitting fees of 50,000 per meeting of
the Board and 25,000 per meeting of the
Committee to the Independent Directors/
Non-Executive Directors for attending the
meetings of the Board & Committees. The
commission is paid subject to a limit not
exceeding 1% p.a. of the profits of the
Company as approved by shareholders
(computed in accordance with Section 197
of the Companies Act, 2013).
The commission to 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.
In the case of nominees of Financial
Institutions, the commission is paid to the
Financial Institutions.
As required by the provisions of Regulation
46 of the SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015,
the criteria for payment to Independent
Directors/Non-Executive Directors is made
available on the investor page of our
corporate website www.larsentoubro.com
Performance Evaluation Criteria for IDs:
The performance evaluation questionnaire
covers specific criteria with respect to the
Board & Committee composition, structure,
culture, effectiveness of the Board and
Committees, functioning of the Board and
Committees, information availability, etc. It
also contains specific criteria for evaluating
the Chairman and individual Directors.
vi) Details of remuneration paid/payable to
Directors for the year ended March 31,
2016:
(a) Executive Directors:
The details of remuneration paid/payable
to the Executive Directors is as follows:
Names
Salary Perquisites Retirement
Mr. A. M. Naik
3.58
Mr. K. Venkataramanan@ 14.73
38.85
2.77
Benefits
5.75
22.43
crore
Commission
17.96
3.37
84
Names
Salary Perquisites Retirement
Mr. M. V. Kotwal#
Mr. S. N. Subrahmanyan
Mr. R. Shankar Raman
Mr. Shailendra N. Roy
Mr. D. K. Sen$*
Mr. M. V. Satish%*
8.58
1.63
1.38
1.15
0.44
0.15
Benefits
15.35
3.06
2.18
1.47
0.69
0.24
0.84
7.53
3.23
3.03
0.06
0.05
crore
Commission
1.82
9.90
6.90
4.40
2.11
0.73
The above amounts include gratuity, leave encashment, perquisite
on ESOP allotment and tax on ESOPs borne by employer
# retired as a director w.e.f. 26.08.2015
@ retired as a director w.e.f. 30.09.2015
$ appointed as a Director w.e.f. 01.10.2015
% appointed as a Director w.e.f. 29.01.2016
* remuneration after assuming office as Director
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Notice period for termination of
appointment of Deputy Managing
Director and other Whole-time Directors
is six months on either side.
No severance pay is payable on
termination of appointment.
Details of Options granted under
Employee Stock Option Schemes
are provided on the website of the
Company www.larsentoubro.com.
(b) Non-Executive Directors:
The details of remuneration paid/payable
to the Non-Executive Directors is as
follows:
Names
Sitting
Fees for
Board
Meeting
0.045
Mr. M. M. Chitale
0.045
Mr. Subodh Bhargava
0.040
Mr. M. Damodaran
Mr. Vikram Singh Mehta 0.040
0.040
Mr. Sushobhan Sarker
0.040
Mr. Adil Zainulbhai
0.040
Mr. Akhilesh Gupta
0.020
Mr. Bahram Vakil
Mr. Swapan Dasgupta@ 0.045
0.035*
Ms. Sunita Sharma
0.045
Mr. Thomas Mathew T.
0.025
Mr. Ajay Shankar
NIL
Mr. Subramanian Sarma
–
Ms. Naina Lal Kidwai
Sitting
Fees for
Committee
Meeting
0.020
0.017
0.020
0.010
0.015
0.015
0.005
NIL
–
0.005*
0.015
0.005
NIL
–
Commission
crore
Total
0.455
0.555
0.375
0.352
0.229*
0.435
0.198
0.067
0.150*
0.127*
0.320
0.205
NIL
–
0.520
0.618
0.435
0.402
0.284
0.490
0.243
0.087
0.195
0.167
0.380
0.235
NIL
–
* Payable to respective Institutions they represent.
@ ceased to be a Director w.e.f May 15, 2016
Details of shares and convertible
instruments held by the Independent
Directors/Non-Executive Directors as on
March 31, 2016 are as follows:
Names
Mr. M. M. Chitale
Mr. Subodh Bhargava
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Sushobhan Sarker *
Mr. Adil Zainulbhai
Mr. Akhilesh Gupta
Mr. Bahram Vakil
Mr. Thomas Mathew T.
Mr. Subramanian Sarma$
Mr. Swapan Dasgupta *@
Ms. Sunita Sharma *
Mr. Ajay Shankar
Ms. Naina Lal Kidwai
No. of Shares held
1,629
750
150
885
150
100
200
4,441
100
100
100
100
100
100
* held jointly with the Institution they represent
$ 84,000 stock options were granted during the year
@ ceased to be a Director w.e.f May 15, 2016
3) Stakeholders’ Relationship Committee (SRC):
i) Terms of reference:
The terms of reference of the Stakeholders’
Relationship Committee are as follows:
(cid:3)(cid:122)
(cid:3)(cid:122)
Redressal of Shareholders’/Investors’
complaints
Allotment, transfer & transmission
of Shares/Debentures or any other
securities and issue of duplicate
certificates and new certificates on
split/consolidation/renewal etc. as may
be referred to it by the Share Transfer
Committee.
ii) Composition:
As on March 31, 2016, the Stakeholders’
Relationship Committee comprised of 1 Non-
Executive Director, 1 Independent Director
and 1 Executive Director.
iii) Meetings:
During the year ended March 31, 2016, 4
meetings of the Stakeholders’ Relationship
Committee were held on May 30, 2015, July
31, 2015, October 30, 2015 and January 29,
2016.
85
The attendance of Members at the Meetings
was as follows-
meetings during the year and approved the
transfer of shares lodged with the Company.
Name
Status
Chairperson
Ms. Sunita Sharma
Member
Mr. Ajay Shankar #
Member
Mr. Shailendra Roy
Mr. S. N. Subrahmanyan @ Member
No. of
meetings
during
the year
4
2
4
2
No. of
Meetings
Attended
2
2
4
2
Meetings held during the year are expressed
as number of meetings eligible to attend.
@ ceased to be a member w.e.f. 21.09.2015
# appointed as a member w.e.f. 21.09.2015
Mr. N. Hariharan, Company Secretary is the
Compliance Officer.
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.
During the year, the Company/its Registrar’s
received the following complaints from
SEBI/Stock Exchanges and queries from
shareholders, which were resolved within the
time frames laid down by SEBI.
Opening
Balance
Received Resolved Pending*
4)
Corporate Social Responsibility Committee
(CSR Committee):
i) Terms of reference:
The terms of reference of the CSR
Committee are as follows:
(a) formulate and recommend to the Board,
a Corporate Social Responsibility Policy
which shall indicate the activities to be
undertaken by the Company;
(b) recommend the amount of expenditure
to be incurred on the activities referred
to in clause (a); and
(c) monitor the Corporate Social
Responsibility Policy of the Company
from time to time.
ii) Composition:
As on March 31, 2016, the CSR Committee
comprised of 1 Independent Director and 2
Executive Directors.
iii) Meetings:
During the year ended March 31, 2016, 4
meetings of the CSR Committee were held
on April 7, 2015, June 30, 2015, December
11, 2015 and March 22, 2016.
The attendance of the Members at the
Meetings was as follows-
Particulars
Complaints:
SEBI/Stock
Exchange
Shareholder
Queries:
Dividend
Related
Transmission/
Transfer
Demat/Remat
1
50
49
2
Name
Status
No. of
meetings
during
the year
No. of
Meetings
Attended
174
7899
7632
441
22
2
988
1007
64
66
3
0
* Investor queries shown outstanding as on
March 31, 2016 have been subsequently
resolved. The substantial increase in number
of queries is on account of the Company’s
repeated reminders to shareholders regarding
unclaimed shares and dividends.
The Board has delegated the powers to
approve transfer of shares to a Share Transfer
Committee of Executives comprising of four
Senior Executives. This Committee held 48
86
Mr. Vikram Singh Mehta
Chairperson
Mr. M. V. Kotwal @
Mr. R. Shankar Raman
Mr. D. K. Sen%
Member
Member
Member
4
2
4
2
4
2
4
2
Meetings held during the year are expressed
as number of meetings eligible to attend.
@ ceased to be a member w.e.f. 26.08.2015
% appointed as a member w.e.f. 01.10.2015
G. OTHER INFORMATION
a) Directors’ Familiarisation Programme:
All our directors are aware and are also
updated as and when required, of their role,
responsibilities & liabilities.
The Company holds Board meetings at its
registered office and also if necessary, in
locations, where it operates. Site/factory visits are
organized at various locations for the Directors.
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.
This information is also available on the website
of the Company www.larsentoubro.com.
b)
Information to directors:
The Board of Directors has complete access to
the information within the Company, which inter
alia, includes items as mentioned on Pages 80 to
81 in this Annexure to the Directors‘ Report.
Presentations are made regularly to the Board/
NRC/Audit Committee (AC) (minutes of AC,
NRC, SRC 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.
Independent Directors have the freedom to
interact with the Company’s management.
Interactions happen during Board/Committee
meetings, when senior company personnel are
asked to make presentations about performance
of their Independent Company/Business Unit, to
the Board. Such interactions also happen when
these Directors meet senior management in IC
meetings and informal gatherings.
c) Risk Management Framework:
Please refer to Page 66 of the Board Report.
d) Vigil Mechanism/Whistle Blower Policy :
Please refer to Page 69 of the Board Report.
e) Statutory Auditors:
Please refer to Page 70 of the Board Report.
f) Code of Conduct:
The Company has laid down a Code of
Conduct for all Board members and senior
management personnel. The Code of Conduct
is available on the website of the Company
www.larsentourbo.com. The declaration of Group
Executive Chairman is given below:
To the Shareholders of Larsen & Toubro Limited
Sub: Compliance with Code of Conduct
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.
A. M. Naik
Group Executive Chairman
Date: May 25, 2016
Place: Mumbai
g) General Body Meetings:
The last three Annual General Meetings of the
Company were held at Birla Matushri Sabhagar,
Mumbai as under:
Financial Year
Date
Time
2014-2015
September 9, 2015
3.00 p.m.
2013-2014
August 22, 2014
3.00 p.m.
2012-2013
August 22, 2013
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 September 9,
2015:
(cid:3)(cid:122)
To approve raising of capital through QIP’s
by issue of shares/convertible debentures/
securities upto an amount of USD 600
million or 3600 crore.
(cid:3)(cid:122)
To approve raising of debentures upto
6000 crore.
Annual General Meeting held on August 22,
2014:
(cid:3)(cid:122)
No special resolutions were listed in the
agenda for the meeting.
Annual General Meeting held on August 22,
2013:
(cid:3)(cid:122)
To approve raising of capital through QIP’s
by issue of shares/convertible debentures/
securities upto an amount of USD 600
million or 3200 crore.
(cid:3)(cid:122)
To approve appointment of Statutory
Auditors and remuneration payable to them.
87
h) Disclosures:
Website
1. During the year, there were no transactions
of material nature with the Directors or
the Management or relatives or the related
parties that had potential conflict with the
interests of the Company.
2. Details of all related party transactions form
a part of the accounts as required under AS
18 and the same are given on pages 274 to
287 of the Annual Report.
3. The Company has followed all relevant
Accounting Standards notified by the
Companies (Accounting Standards)
Rules, 2006 while preparing the Financial
Statements.
4. The Company makes presentations to
Institutional Investors & Equity Analysts on
the Company’s performance on a quarterly
basis. The same is also available on our
website www.larsentoubro.com.
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.
6. The policy for determining material
subsidiaries and related party transactions is
available on our website www.larsentoubro.
com.
7. Details of risk management including
foreign exchange risk, commodity price risk
and hedging activities form a part of the
Management Discussion & Analysis. Please
refer to pages 217 to 219 of the Annual
Report.
i) Means of communication:
Financial
Results
Quarterly & Annual Results are
published in prominent daily
newspapers viz. The Financial
Express, The Hindu Business Line &
Loksatta. The results are also posted
on the Company’s website: www.
larsentoubro.com.
News Releases Official news releases are sent
to stock exchanges as well as
displayed on the Company’s website:
www.larsentoubro.com.
88
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
and Accounts of the Company
and subsidiaries are available in
downloadable formats. The entire
Annual Report and Accounts of
the Company will also be made
available on the websites of the Stock
Exchanges.
Filing with
Stock
Exchanges
Information to Stock Exchanges is now
being also filed online on NEAPS for
NSE and BSE Online for BSE.
Annual Report Annual Report is circulated to all the
members and all others like auditors,
debenture trustee, secretarial auditor,
equity analysts, etc.
Management
Discussion &
Analysis
This forms a part of the Annual Report
which is mailed to the shareholders of
the Company.
Presentations
made to
Institutional
Investors and
Analysts
The schedule of analyst/institutional
investor meets and presentations
made to them on a quarterly basis are
displayed on the website.
B. UNCLAIMED SHARES
The Company does not have any unclaimed shares
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 (Listing
Obligations & Disclosure Requirements) Regulations,
2015, the Company has already sent reminders in
the past to the shareholders to claim these shares.
These share certificates are regularly released on
requests received from the eligible shareholders
after due verification. The balance unclaimed share
certificates will be transferred to the Unclaimed
Suspense Account as required under the SEBI (Listing
Obligations & Disclosure Requirements) Regulations,
2015 shortly.
The eligible shareholders are entitled to claim the
shares from the said account upon giving necessary
documents.
C. GENERAL SHAREHOLDERS’ INFORMATION
a) Annual General Meeting:
The Annual General Meeting of the Company has
been convened on Friday, August 26, 2016 at
Birla Matushri Sabhagar, Marine Lines, Mumbai –
400 020 at 3.00 p.m.
b) Financial calendar:
1. Annual Results of
May 25, 2016
2015-16
2. Mailing of Annual
Third week of July, 2016
Reports
3. First Quarter Results
g) Stock Code/Symbol:
The Company’s equity shares/GDRs are listed on
the following Stock Exchanges and admitted for
trading in London Stock Exchange:
BSE Limited (BSE)
: Scrip Code - 500510
National Stock Exchange of India
Limited (NSE)
: Scrip Code - LT
ISIN
Reuters RIC
:
:
INE018A01030
LART.BO
Luxembourg Exchange Stock Code
: 005428157
London Exchange Stock Code
: LTOD
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.
During the last week of
July 2016 *
h) Stock market data for the year 2015-2016:
4. Annual General
August 26, 2016
Meeting
5. Payment of Dividend
August 30, 2016
6. Second Quarter results During last week of
7. Third Quarter results
October 2016 *
During last week of
January 2017 *
* Tentative
c) Book Closure:
The dates of Book Closure are from Saturday,
August 20, 2016 to Friday, August 26, 2016
(both days inclusive) to determine the members
entitled to the dividend for 2015-2016.
d)
Listing of equity shares/shares underlying
GDRs on Stock Exchanges:
The shares of the Company are listed on BSE
Limited (BSE) and the National Stock Exchange of
India Limited (NSE).
GDRs are listed on Luxembourg Stock Exchange
and traded on London Stock Exchange.
e) Listing Fees to Stock Exchanges:
The Company has paid the Listing Fees for the
year 2016-2017 to the above Stock Exchanges.
f) Custodial Fees to Depositories:
The Company has paid custodial fees for the
year 2016-2017 to National Securities Depository
Limited (NSDL) and Central Depository Services
(India) Limited (CDSL).
Month
L&T BSE Price ( )
High
Low Month
Close
BSE SENSEX
High
Low Month
Close
2015
April
May
June
July
1820.00
1626.75
1632.50 29094.61 26897.54 27011.31
1668.35
1545.35
1655.35 28071.16 26423.99 27828.44
1816.90
1642.10
1782.75 27968.75 26307.07 27780.83
1886.25
1741.05
1789.55 28578.33 27416.39 28114.56
August
1844.15
1575.00
1605.30 28417.59 25298.42 26283.09
September
1630.00
1413.15
1466.70 26471.82 24833.54 26154.83
October
1610.40
1400.00
1411.15 27618.14 26168.71 26656.83
November
1404.00
1325.55
1374.05 26824.30 25451.42 26145.67
December
1383.00
1265.50
1275.65 26256.42 24867.73 26117.54
2016
January
1291.25
1070.00
1102.20 26197.27 23839.76 24870.69
February
1174.65
1016.60
1079.25 25002.32 22494.61 23002.00
March
1248.15
1081.00
1216.20 25479.62 23133.18 25341.86
)
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Stock Performance
L&T BSE ( ) BSE SENSEX
Apr
15
May
15
Jun
15
Jul
15
Sep
15
Nov
Aug
15
15
Daily Closing Price
Oct
15
Dec
15
Jan
16
Feb
16
Mar
16
32000
31000
30000
29000
28000
27000
26000
25000
24000
23000
22000
21000
X
E
S
N
E
S
E
S
B
89
Month
2015
April
May
June
July
August
September
October
November
December
2016
January
February
March
)
(
E
S
N
-
T
&
L
2000
1900
1800
1700
1600
1500
1400
1300
1200
1100
1000
L&T NSE Price ( )
High
Low Month
Close
NIFTY
High
Low Month
Close
1819.95
1669.75
1817.00
1888.00
1844.20
1629.60
1610.00
1404.00
1382.90
1625.60
1543.60
1643.00
1737.85
1575.00
1412.35
1400.00
1326.00
1264.50
1631.30
1654.45
1782.80
1791.25
1602.90
1466.25
1410.75
1374.60
1275.45
8844.80
8489.55
8467.15
8654.75
8621.55
8055.00
8336.30
8116.10
7979.30
8144.75
7997.15
7940.30
8315.40
7667.25
7539.50
7930.65
7714.15
7551.05
1291.00
1174.95
1249.00
7972.55
7600.45
7777.60
1069.10
1016.05
1081.00
1101.65
1076.00
1216.70
Stock Performance
L&T NSE ( ) NSE NIFTY
7241.50
6825.80
7035.10
Apr
15
May
15
Jun
15
Jul
15
Sep
15
Nov
Aug
15
15
Daily Closing Price
Oct
15
Dec
15
Jan
16
Feb
16
Mar
16
8181.50
8433.65
8368.50
8532.85
7971.30
7948.90
8065.80
7935.25
7946.35
7563.55
6987.05
7738.40
9500
9000
8500
8000
7500
7000
6500
6000
Y
T
F
I
N
E
S
N
i) Registrar and Share Transfer Agents (RTA):
Till 31st May 2016:
Sharepro Services (India) Private Limited,
Unit : Larsen & Toubro Limited
Samhita Warehousing Complex,
Bldg. No.13 A B, 2nd Floor,
Off Sakinaka Telephone Exchange Lane,
Andheri – Kurla Road, Sakinaka,
Mumbai – 400 072.
From 1st June 2016:
Karvy Computershare Pvt. Ltd.
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Financial District, Nanakramguda,
Hyderabad, Telengana - 500 032
j) Share Transfer System:
The share transfer activities under physical mode
are carried out by the RTA. Shares in physical
mode which are lodged for transfer are processed
and returned within the stipulated time. The
share related information is available online.
90
Physical shares received for dematerialization
are processed and completed within a period of
21 days from the date of receipt. Bad deliveries
are promptly returned to Depository Participants
(DP’s) under advice to the shareholders.
As required under Regulation 40 of the SEBI
(Listing Obligations & Disclosure Requirements)
Regulations, 2015, a certificate on half 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.
k)
Distribution of Shareholding as on March 31,
2016:
No. of Shares
Shareholders
Number
9,53,125
41,339
18,779
5,857
2,468
1,540
2,851
2,581
%
92.67
4.02
1.83
0.57
0.24
0.15
0.28
0.25
Shareholding
Number
7,58,02,734
2,93,65,987
2,64,24,188
1,45,49,239
86,04,177
69,57,960
1,98,17,891
74,99,56,669
%
8.14
3.15
2.84
1.56
0.92
0.75
2.13
80.51
Upto 500
501 – 1000
1001 – 2000
2001 – 3000
3001 – 4000
4001 – 5000
5001 – 10000
10001 &
ABOVE
TOTAL
10,28,540 100.00 93,14,78,845
100.00
l) Categories of Shareholders is as under:
Category
Financial Institutions
Foreign Institutional
Investors
Shares underlying
GDRs
Mutual Funds
Bodies Corporate
Directors & Relatives
L&T Employees
Welfare Foundation
General Public
TOTAL
31.03.2016
No. of
Shares
27,55,72,334
15,13,62,292
%
31.03.2015
No. of
Shares
29.58 28,00,34,611
16.25 15,61,72,982
%
30.12
16.80
1,92,13,684
2.06
2,12,66,473
2.29
7,67,74,808
6,50,66,088
14,49,515
11,47,52,281
5,44,05,173
8.24
7,29,24,831
6.99
0.16
25,11,947
12.32 11,16,06,174
5.85
7.85
0.27
12.01
22,72,87,843
24.81
93,14,78,845 100.00 92,95,62,061 100.00
24.40 23,06,39,870
Categories of Shareholders
as on March 31, 2016
General Public
24.40%
L&T Employees
Welfare
Foundation
12.32%
Directors & Relatives
0.16%
Bodies Corporate
6.99%
Financial
Institutions
29.58%
Foreign Institutional
Investors
16.25%
Mutual Funds
8.24%
Shares underlying GDRs
2.06%
m) Dematerialization of shares & Liquidity:
The Company’s Shares are required to be
compulsorily traded in the Stock Exchanges
in dematerialized form. The Company had
sent letters to shareholders holding shares
in physical form emphasizing the benefits of
dematerialization.
The number of shares held in dematerialized and
physical mode is as under:
No. of shares
% of
total
capital
issued
93.63
4.27
2.10
93,14,78,845 100.00
87,20,91,818
3,97,81,963
1,96,05,064
Held in dematerialized form in NSDL
Held in dematerialized form in CDSL
Physical
Total
Shares held in Demat / Physical Form
as on March 31, 2016
CDSL
3,97,81,963
4.27%
Physical
1,96,05,064
2.10%
NSDL
87,20,91,818
93.63%
n)
Except for 11,47,52,281 shares which are held
by L&T Employees Welfare Foundation, the
remaining shares are freely tradeable in the
market.
Outstanding GDRs/ADRs/Warrants or any
Convertible Instruments, conversion date
and likely impact on equity:
The outstanding GDRs are backed up by
underlying equity shares which are part of the
existing paid-up capital.
The Company has the following Foreign Currency
Convertible Bonds outstanding as on March 31,
2016:
0.675% USD 200 million Foreign Currency
Convertible Bonds due 2019
(i)
(ii)
(iii)
(iv)
(v)
Principal Value of the Bonds issued
Principal Value of Bonds converted to
GDRs since issue.
Principal Value of Bonds outstanding
as at March 31, 2016
Underlying Equity Shares/GDR’s issued
pursuant to conversion as per (ii)
above
Underlying Equity Shares/GDR’s that
may be issued pursuant to conversion
notices in respect of (iii) above
USD 200 million
NIL
USD 200 million
NIL
63,46,986
shares
These Convertible Bonds are listed on the
Singapore Exchange Securities Trading Limited.
o) Listing of Debt Securities:
The redeemable Non-Convertible debentures
issued by the Company are listed on the
Wholesale Debt Market (WDM) of National
Stock Exchange of India Limited (NSE) and/or BSE
Limited (BSE).
p)
Debenture Trustees (for privately placed
debentures)
IDBI Trusteeship Services Limited
Ground Floor, Asian Building,
17, R. Kamani Marg,
Ballard Estate, Mumbai - 400 001.
q) Plant Locations:
The L&T Group’s facilities for design, engineering,
manufacture, modular fabrication and production
are based at multiple locations within India
including Ahmednagar, Ankleshwar, Bengaluru,
Chennai, Coimbatore, Faridabad, Hazira (Surat),
Kattupalli (near Chennai), Kanchipuram, Mumbai,
Navi Mumbai, Mysuru, Pithampur, Puducherry,
Rajpura, Kansbahal (Rourkela), Talegaon and
Vadodara. L&T’s international manufacturing
footprint covers the Gulf (Oman, Saudi Arabia,
U.A.E), South East Asia (Malaysia and Indonesia)
and the U.K. The L&T Group also has an extensive
network of offices in India and around the globe.
r) Address for correspondence:
Larsen & Toubro Limited
L&T House, Ballard Estate, Mumbai - 400 001.
Tel. No. (022) 6752 5656,
Fax No. (022) 6752 5893
Shareholder correspondence may be directed
to the Company’s Registrar and Share Transfer
Agent, whose address is given below:
Till May 31, 2016:
1. Sharepro Services (India) Private Limited
Unit : Larsen & Toubro Limited
Samhita Warehousing Complex,
Bldg. No.13 A B, 2nd Floor,
Off Sakinaka Telephone Exchange Lane,
Andheri – Kurla Road, Sakinaka,
Mumbai – 400 072.
Tel No. : (022) 6772 0300/6772 0400
Fax No. (022) 2859 1568/2850 8927
E-Mail : Lnt@shareproservices.com;
Sharepro@shareproservices.com
91
2. Sharepro Services (India) Private Limited
Unit : Larsen & Toubro Limited
912, Raheja Centre, Free Press Journal Road,
Nariman Point, Mumbai 400 021.
Tel : (022) 6613 4700
Fax : (022) 2282 5484
From June 1, 2016:
1. Karvy Computershare Pvt. Ltd.
Unit : Larsen & Toubro Limited
Karvy Selenium Tower B,
Plot 31-32, Gachibowli,
Financial District, Nanakramguda,
Hyderabad, Telengana-500 032
Tel : (040) 6716 2222
Toll free number : 1-800-3454-001
Fax : (040) 2342 0814
E-Mail : einward.ris@karvy.com
Website : www.karvycomputershare.com
2. Karvy Computershare Pvt. Ltd.
Unit : Larsen & Toubro Limited
24-B, Raja Bahadur Mansion,
Ground Floor, Ambalal Doshi Marg,
Behind BSE Limited, Fort,
Mumbai - 400 023.
Tel : (022) 6623 5454/5412/5427
s)
Investor Grievances:
The Company has designated an exclusive e-mail
id viz. IGRC@LARSENTOUBRO.COM to enable
investors to register their complaints, if any. The
Company strives to reply to the complaints within
a period of 3 working days.
t) Securities Dealing Code:
Pursuant to the SEBI (Prohibition of Insider
Trading) Regulations, 2015, the Company has
suitably modified its Securities Dealing Code
for prevention of insider trading with effect
from May 15, 2015. The objective of the Code
is to prevent purchase and/or sale of shares
of the Company by an Insider on the basis of
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, permission of Compliance Officer
is also required. All the Designated Employees
are also required to disclose related information
periodically as defined in the Code. Directors and
designated employees who buy and sell shares of
the Company are prohibited from entering into
an opposite transaction i.e sell or buy any shares
of the Company during the next six months
following the prior transactions. Directors and
designated employees are also prohibited from
taking positions in the derivatives segment of the
Company’s shares.
Mr. N. Hariharan, Company Secretary has been
designated as the Compliance Officer.
u)
The Company has appointed Mr. Arnob Mondal,
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 www.larsentoubro.com.
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 had 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 & Redressal) Act, 2013,
SEBI Insider Trading Regulations, etc. Workshops
were conducted during the last year to create
a batch of trainers across various businesses.
These trainers have in turn conducted training/
awareness sessions within their business and
covered more than 41,000 employees in
supervisory and above cadre since last year. A
similar session was also conducted for senior
management by external experts on Compliance
& Governance.
The Company will continue to conduct such
workshops/sessions on a regular basis.
v)
ISO 9001:2008 Certification:
The Company’s Secretarial Department which
provides secretarial services and investor services
for the Company and its Subsidiary and Associate
Companies, is ISO 9001:2008 certified.
w) Secretarial 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) and the total
92
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.
The Company also has adequate software and
systems to monitor compliance.
93
To the Board of Directors of Larsen & Toubro Limited
Dear Sirs,
Sub: CEO/CFO Certificate
[Issued in accordance with provisions of Regulation 17(8) of
SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015]
We have reviewed the consolidated financial statements, read with the consolidated cash flow statement of Larsen &
Toubro Limited for the year ended March 31, 2016 and that to the best of our knowledge and belief, we state that;
(i) these statements do not contain any materially untrue statement or omit any material fact or contain
(a)
statements that may be misleading;
(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.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year
which are fraudulent, illegal or in violation of the Company’s code of conduct.
(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.
(d) We have indicated to the Auditors and the Audit Committee:
that there were no significant changes in internal controls over financial reporting during the year; and
(i)
(ii) that there were no significant changes in accounting policies made during the year; and
(ii) that there were no instances of significant fraud of which we have become aware.
Yours sincerely,
R. Shankar Raman
Chief Financial Officer
A. M. Naik
Group Executive Chairman
Place: Mumbai
Date: May 25, 2016
Auditors Certificate on Compliance of Conditions of Corporate Governance
To the members of Larsen & Toubro Limited
We have examined the compliance of conditions of corporate governance by Larsen & Toubro Limited for the year ended
31 March 2016 as stipulated in Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements)
Regulations 2015 (‘the Regulations’).
The compliance of conditions of corporate governance is the responsibility of the management. Our examination
was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the
conditions of corporate governance. It is neither an audit nor an expression of opinion on the financial statements of the
Company.
In our opinion and to the best of our information and according to the explanation given to us, we certify that the
Company has complied in all material respects with the conditions of corporate governance as stipulated in the
Regulations.
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.
Mumbai, May 25, 2016
94
SHARP AND TANNAN
Chartered Accountants
Firm’s Registration No. 109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 38332
Annexure ‘C’ to the Board Report
website of the Company. Please see the link
http://investors.larsentoubro.com/Listing-Compliance.aspx
CSR ACTIVITIES FOR 2015-16
1. A brief outline of the Company’s CSR policy,
including overview of projects or programs
proposed to be undertaken and a reference to
the web-link to the CSR policy and projects or
programs.
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.
The Company will primarily focus on ‘Building India’s
Social Infrastructure’ as part of its CSR programme
which will include, amongst others, the following
areas, viz.
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
(cid:3)(cid:122)
Water & Sanitation – may include but not limited
to watershed development -making clean
drinking water available, promoting rain water
harvesting , soil and moisture conservation,
enhancing ground water levels by facilitating
community management of water resources
for improving conditions related to sanitation,
health ,education and livelihoods of communities
through an integrated approach .
Education - may include but not limited to
education infrastructure support to educational
Institutions, educational programs & nurturing
talent at various levels.
Health - may include 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.
Skill Development - may include but not limited
to vocational training such as skill building,
computer training, women empowerment,
support to ITI’s, support to specially abled
(infrastructure support & vocational training),
Construction Skills Training Centres and providing
employability skills to women and youth.
Governance, Technology and Innovation would be the
Key enabling factors across all these verticals.
The detailed CSR Policy Framework is
given in the Governance section on the
2. Composition of the CSR Committee.
The CSR Committee of the Board was re-constituted
on September 21, 2015 on account of the vacancy
arising due to retirement of Mr M.V. Kotwal and
Mr. D.K. Sen was appointed in his place. It comprises
of one Independent Director and two Executive
Directors. The Company Secretary acts as Secretary to
the Committee.
The present Committee comprises of Mr. Vikram
Singh Mehta as Chairman, Mr. R. Shankar Raman and
Mr. D.K. Sen as members and Mr. N. Hariharan as the
Secretary of the Committee.
3.
Average net profit of the Company for the last
three financial years.
The average net profit of the Company for the last
three financial years is 5073 crore.
4.
Prescribed CSR expenditure (two percent of the
amount as in item 3 above).
The Company was required to spend an amount
of 101.46 crore as CSR expenditure during the
financial year 2015-16.
5. Details of CSR spent during the financial year:
a.
Total amount to be spent for the financial year:
The Company was required to spend
101.46 crore during the financial year 2015-16.
As against this mandate, the Company spent
119.89 crore towards various activities for
the benefit of the community. This exceeds the
required spend by 18.43 crore. The CSR spend
for FY 2015-16 is 2.36% of the average net profit
under Section 198 of the Companies Act, 2013.
In addition to the above spend, a contribution of
3.78 crore was made by the Company towards
the Prime Minister’s National Relief Fund towards
earthquake relief efforts at Nepal.
b. Amount unspent, if any:
Nil
c.
Manner in which the amount was spent in
the financial year is detailed below:
As per table enclosed
6.
Reasons for not spending the amount during the
financial year.
NA
95
7. CSR Committee Responsibility Statement:
(cid:3)(cid:122)
The activities undertaken by the Company as
well as the implementation and monitoring
mechanisms are in compliance with its CSR
objectives and CSR policy.
S. N. SUBRAHMANYAN
VIKRAM SINGH MEHTA
Deputy Managing Director
Chairman – CSR
Committee
The CSR Committee hereby affirms that:
(cid:3)(cid:122)
The Company has duly formulated a CSR Policy
Framework which includes formulation of a CSR
Theme, CSR budget and roles and responsibilities
of the Committee as well as the various internal
committees formed for implementation of the
CSR policy;
(cid:3)(cid:122)
The Company has constituted a mechanism to
monitor and report on the progress of the CSR
programs;
96
S. No. CSR Project or activity identified
1
2
3
4
School support programme-
Enhancing the quality of
education and learning levels
in government schools/ schools
running for children from
underprivileged backgrounds
(teachers training, play way
methods, support for English
and Mathematics, capacity
building, promoting extra
curricular activities)
Community based
programmes-Study Centres/
balwadis/anganwadis run
for developing pre school
foundation, promoting healthy
and hygienic environment for
education, developing the
learning levels of children at
par with their mainstream
grades and providing nutritional
supplements
Providing infrastructre
support for education
(drinking water and sanitation
facilities,renovation of
classrooms, water proofing
of school buildings, providing
furnitures and light fittings,
donation of computers,
upgradation of libraries,
playground development)"
Education
Education
Providing educational aids to
children- books, stationary,
sports equipments, uniforms,
school bags, shoes, wollen
clothes, raincoats etc"
Sector in
which the
project is
covered
Education
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Gujarat (Surat, Vadodara),
Karnataka (Bangalore, Mysore,
Bijapur), Maharashtra (Mumbai,
Thane), Faridabad,
Odisha (Kansbhal, Sundergarh,
Rayagada), Tamil Nadu (Coimbatore,
Cuddalore, Nilgiris), Uttar Pradesh
(Mirzapur)
Amount
outlay
(budget)
project or
programe
wise ( In
Lakh)
Direct
expenditure
on
projects or
programs
( In Lakh)
Overhead
( In Lakh)
Cumulative
expenditure
upto the
reporting
period ( In
Lakh)
Amount
spent: direct
or through
implementing
agency
513.94
495.11
64.76
559.88 Implementing
agencies
Education
Karnataka (Bangalore), West Bengal
(Kolkata), Maharashtra (Mumbai,
Thane, Pune), Tamil Nadu (Chennai),
Assam (Guwahati)
155.76
154.29
20.46
174.75 Implementing
agencies
374.54
333.22
43.72
376.94 Direct
63.72
31.42
4.48
35.90 Direct
Andhra Pradesh (Hyderabad,
Visakahapatnam, Anantapur), Bihar
(Patna), Gujarat (Surat, Ahmedabad,
Mahesana, Surendranagar),
Jharkhand (Jamshedpur), Karnataka
(Mysore, Ramanagar), Kerala
(Ernakulam), Madhya Pradesh
(Bhopal, Raisen), Maharashtra
(Ahmednagar, Pune, Raigad)
New Delhi, Odisha (Bhubaneswar),
Puducherry, Rajasthan (Jaipur,
Jaiselmer, Banswara, Pali, Sojat,
Jhunjhunu, Churu, Udaipur),
Tamil Nadu (Noombal, Dindigul,
Pudukkottai, Katpadi, Tiruchirappalli,
Thoothukudi), Uttar Pradesh
(Lucknow), West Bengal (Birbhum,
North 24 Parganas)
Andhra Pradesh(Hyderabad,
Visakahapatnam), Bihar (Purnia),
Chandigarh, Himachal Pradesh
(Solan), Gujarat (Vadodara, Vyara,
Kutch), Jharkhand (Sahibganj,
Jamshedpur), Karnataka (Magadi),
Kerala (Ernakulam), Madhya
Pradesh (Khandwa), Maharashtra
(Pune, Mumbai, Nagpur, Palghar),
New Delhi, Odisha (Angul, Jajpur,
Sambalpur), Punjab (Ludhiana),
Rajasthan (Banswara, Jaipur,
Chittorgarh), Tamil Nadu
(Viluppuram, Kancheepuram,
Chennai), Uttar Pradesh (Lucknow),
West Bengal (Kolkata, Sultanpur)
97
S. No. CSR Project or activity identified
5
6
7
8
Awareness programmes (health
and hygiene, road safety,
career guidance, personality
development)
Community Health Centres
(running multi-specialty center
offering diagnostic services
including family planning,
gynecological, pediatric,
immunization, chest & TB,
ophthalmic consultation, dialysis
services, HIV/AIDS awareness,
detection, treatment, counseling
services at free / nominal cost to
the community)
Health Camps (general, eye,
dental, vaccinations) and health
awareness
Health
Health Camps (general, eye,
dental, vaccinations) and health
awareness
Health
9
Blood donation camps
Health
Sector in
which the
project is
covered
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Overhead
( In Lakh)
Amount
outlay
(budget)
project or
programe
wise ( In
Lakh)
Direct
expenditure
on
projects or
programs
( In Lakh)
Education
Maharashtra (Pune), Kerala (Kannur)
3.50
0.18
0.41
Cumulative
expenditure
upto the
reporting
period ( In
Lakh)
Amount
spent: direct
or through
implementing
agency
0.59 Implementing
agencies
Health
Maharashtra (Mumbai,
Ahmednagar), Gujarat (Surat, Dang)
333.60
298.95
39.26
338.21 Direct
80.92
56.07
7.69
63.76 Direct
69.58
49.52
6.84
56.36 Implementing
agencies
7.40
6.35
1.23
7.57 Implementing
agencies
Andhra Pradesh (Hyderabad,
Visakahapatnam), Chhattisgarh
(Raigarh), Gujarat (Vadodara,
Ahmedabad), Jharkhand (East
Singbhum, Jamshedpur), Karnataka
(Bengaluru), Madhya Pradesh (Sidhi,
Khandwa), Maharashtra (Mumbai,
Nagpur, Ahmednagar), New Delhi
(Faridabad), Orissa (Bhubaneswar),
Rajasthan (Jaipur, Banswara, Churu,
Udaipur), Tamil Nadu (Coimbatore,
Vellore, Thoothukudi), Uttar Pradesh
(Lucknow, Lalitpur), West Bengal
(Kolkata)
Andhra Pradesh (Hyderabad,
Visakahapatnam), Chandigarh
(Mohali), Gujarat (Surat), Karnataka
(Bangalore), Kerala (Kochi), Madhya
Pradesh (Bhopal), Maharashtra
(Mumbai, Pune, Palghar), New
Delhi, Orissa (Kansbhal), Rajasthan
(Jaipur), Tamil Nadu (Chennai,
Kancheepuram), West Bengal
(Kolkata)
Andhra Pradesh (Hyderabad,
Visakahapatnam), Chandigarh
(Chandigarh), Gujarat (Baroda),
Jharkhand (Jamshedpur), Karnataka
(Bangalore), Madhya Pradesh
(Bhopal, Udaipura), Maharashtra
(Ahmednagar, Pune, Thane, Nagpur),
Orissa (Bhubaneswar), Tamil Nadu
(Chennai, Coimbatore), Uttar
Pradesh (Lucknow), West Bengal
(Kolkata)
10
Infrastructure support to
medical centres
Health
New Delhi, Maharashtra
(Ahmednagar), Kerala (Kannur)
16.50
16.05
2.49
18.54 Direct
98
S. No. CSR Project or activity identified
11
Construction Skill Training
Institute - CSTI
Sector in
which the
project is
covered
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Amount
outlay
(budget)
project or
programe
wise ( In
Lakh)
Direct
expenditure
on
projects or
programs
( In Lakh)
Overhead
( In Lakh)
Cumulative
expenditure
upto the
reporting
period ( In
Lakh)
Amount
spent: direct
or through
implementing
agency
Skill Building Andhara Pradesh (Hyderabad),
3456.12
2530.49
446.48
2976.97 Direct
Gujarat (Ahmedabad), Maharashtra
(Panvel), Karnataka (Bangalore),
Orissa (Cuttack), Tamil Nadu
(Kanchipuram, Pulicat), Delhi
(Pilkhuwa), West Bengal (Kona,
Srirampore)
12
Computer training for youth
Skill Building Andhara Pradesh (Visakahapatnam),
29.00
28.16
4.06
Gujarat (Surat)
32.22 Implementing
agencies
13
Vocational Training
Skill Building Gujarat (Vadodara), Madhya
91.79
91.37
12.28
103.64 Implementing
Pradesh (Malwa), Rajasthan (Jaipur),
Tamil Nadu (Chennai, Nilgiri), Uttar
Pradesh (Lucknow), West Bengal
(Kolkata)
Skill Building Andhra Pradesh (Hyderabad),
11.35
9.58
1.65
67.39
61.07
8.34
agencies
11.23 Implementing
agencies
69.41 Implementing
agencies
14
Women empowerment through
vocational training
15
Skill building for differntly abled
Persons with
disabilities
16
Basic infrastructure support in
the community (Water, Health,
Sanitation, roads etc.)
Community
Development
**Integrated Community
Development Programme
Community
Development
17
18
Gujarat (Vadodara), Faridabad,
Orissa (Kansbhal, Sundagarh)
Andhra Pradesh (Visakahapatnam),
Gujarat (Surat), Faridabad,
Jharkhand (East Singbhum,
Serikela, Kharswan), Karnataka
(Bangalore), Kerala (Ernakulam),
Madhya Pradesh (Khandwa), New
Delhi (Faridabad), Orissa (Kansbhal,
Puri), Rajasthan (Jaipur), Tamil
Nadu (Chennai, Coimbatore), Uttar
Pradesh (Lucknow), West Bengal
(Kolkata)
Andhra Pradesh (Visakahapatnam),
Gujarat (Kutch, Vadodara,
Surendranagar), Jharkhand
(Jamshedpur), Karnataka
(Benguluru), Maharashtra
(Ahmednagar, Nagpur), Orissa
(Jharsuguda), Rajasthan, Tamil
Nadu (Dindigul, Thoothukudi),
Uttarakhand (Rudra Prayag,
Neemuch)
Rajasthan (Rajsamand, Udaipur),
Maharashtra (Ahmednagar), Tamil
Nadu (Coimbatore)
134.42
114.99
15.35
130.34 Direct
651.00
643.98
83.46
727.44 Implementing
agencies
Development of gardens and
maintenance of public spaces
Environment
Karnataka (Bangalore), Maharashtra
(Ahmednagar, Nashik, Mumbai,
Thane), Gujarat (Surat, Vadodara)
319.55
159.26
21.10
180.36 Direct
99
Amount
outlay
(budget)
project or
programe
wise ( In
Lakh)
Direct
expenditure
on
projects or
programs
( In Lakh)
Overhead
( In Lakh)
Cumulative
expenditure
upto the
reporting
period ( In
Lakh)
Amount
spent: direct
or through
implementing
agency
75.78
62.67
8.55
71.22 Direct
S. No. CSR Project or activity identified
Sector in
which the
project is
covered
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
19
Tree plantation and environment
protection
Environment
Andhra Pradesh
(Hyderabad,Visakahapatnam),
Gujarat (Narmada, Kutch,
Surendranagar, Jamnagar,
Ahmedabad), Karnataka
(Bangalore), Kerala (Ernakulam),
Madhya Pradesh (Udaipura,
Khandwa, Bhopal), Maharashtra
(Mumbai, Ahmednagar, Palgarh,
Pune, Nagpur), New Delhi, Orissa
(Bhubaneswar), Rajasthan (Jaipur,
Baran), Tamil Nadu (Kalpakkam,
Chennai, Cuddalore), Uttar Pradesh
(Lucknow)
20
Awareness programmes-
environment, energy
conservation,road safety
Environment
Jharkhand (East Singbhum, Serikela,
Kharswan), Tamil Nadu (Chennai),
Maharashtra (Nagpur)
1.15
1.04
0.54
1.58 Implementing
agencies
21
Employee Volunteering
Employee
volunteering
PAN India
47.31
45.58
6.33
51.90 Direct
22
Donation to Prime Minister’s
Fund for Swachh Bharat Abhiyan
6000.00
6000.00
0
6000.00
Total
12504.32 11189.35
799.46
11988.81
100
Annexure ‘D’ to the Board Report
A)
Ratio of the remuneration of each director to the median remuneration of the employees of the company
for the financial year 2015-16, the percentage increase in remuneration of each Director & Company
Secretary during the financial year 2015-16 and comparison of the remuneration of each of the Key
Managerial Personnel against the performance of the company
Name of the Director/
KMP
Designation
Total
Remuneration
2015-16
Ratio of
remuneration
of director to
the median
remuneration $
1004.77
657.70
403.89
336.04
208.01
152.66
50.01
17.74
7.90
9.39
6.61
6.11
4.31
7.44
3.69
1.32
2.96
2.54
66.14
43.30
26.59
22.12
13.69
10.05
3.29
1.17
0.52
0.62
0.44
0.40
0.28
0.49
0.24
0.09
0.20
0.17
crore
Percentage
increase in
Remuneration
Comparison of the
Remuneration of the KMP
against the performance of
the Company
142.14
#
##
72.44
32.12
27.26
*
**
15.56
16.98
2.33
(16.67)
(9.68)
40.00
14.29
###
####
####
Profit before tax decreased
by 0.2% and Profit after tax
increased by 5.0% in the
financial year 2015-16
The siting fees were
50,000/- for Board
meetings and 25,000/- for
Committee meetings during
the year. The remuneration
policy is given in Annexure
‘B’ of this Board Report.
Please refer to page 84 of
the Annual Report.
A M Naik
K Venkataramanan
M V Kotwal
S N Subrahmanyan
R Shankar Raman
Shailendra N Roy
D K Sen
M V Satish
M M Chitale
Subhodh Bhargava
M Damodaran
Vikram Singh Mehta
Sushobhan Sarker^
Adil Zainulbhai
Akhilesh Gupta
Bahram N Vakil
Swapan Dasgupta
Sunita Sharma^
Group Executive Chairman
Chief Executive Office & Managing
Director
Whole-time Director & President
(Heavy Engineering)
Deputy Managing Director &
President
Whole-time Director & Chief
Financial Officer
Whole-time Director & Senior
Executive Vice President (Power,
Heavy Engineering & Defence)
Whole-time Director & Senior
Executive Vice President
(Infrastructure)
Whole-time Director & Senior
Executive Vice President (Buildings,
Minerals & Metals)
Independent Director
Independent Director
Independent Director
Independent Director
Nominee of Life Insurance
Corporation of India
Independent Director
Independent Director
Independent Director
Non-Executive Director
Nominee of Life Insurance
Corporation of India
Independent Director
Independent Director
Non-Executive Director
Independent Director
Company Secretary
Thomas Mathew T
Ajay Shankar
Subramanian Sarma
Naina Lal Kidwai
N Hariharan
$
0.38
0.23
NIL
NIL
0.98
Ratio of remuneration of director to the median remuneration is calculated on pro-rata basis for those directors who served for only part of
the financial year 2015-16.
Details not given as K Venkataramanan was a Director for only part of the financial year 2015-16 i.e. upto 30.09.2015.
5.77
3.57
NIL
NIL
N.A.
@
@@
9.66
#
## Details not given as M V Kotwal was a Director for only part of the financial year 2015-16 i.e. upto 26.08.2015.
### Details not given as Bahram N Vakil was a Director only from 16.03.2015.
#### Details not given as Swapan Dasgupta and Sunita Sharma was a Director from 01.04.2015.
@
@@ Details not given as Ajay Shankar was a Director for only part of the financial year 2015-16 i.e. w.e.f. 30.05.2015.
^
*
** Details not given as M V Satish was a Director for only part of the financial year 2015-16 i.e. w.e.f. 29.01.2016.
Part of the remuneration has been paid to the financial institution he/she represents.
Details not given as D K Sen was a Director for only part of the financial year 2015-16 i.e. w.e.f. 01.10.2015.
Details not given as Thomas Mathew T was a Director for only part of the financial year 2015-16 i.e. w.e.f. 03.04.2015.
101
B) Percentage increase in the median remuneration of all employees in the financial year 2015-16:
The median remuneration of employees of the Company during the financial year was 6.58 lakh. In the financial
year, there was an increase of 9.35% in the median remuneration of employees;
C) Number of permanent employees on the rolls of Company as on 31st March 2016
There were 43354 permanent employees on the rolls of Company as on March 31, 2016;
D) Explanation on the relationship between average increase in remuneration and company performance
The average increase in remuneration per employee was 7.2%.The Profit after Tax for the year 2015-16 increased
by 5.0%.The average increase in remuneration per employee is in line with normal pay revisions and variable
component forming integral part of remuneration which is linked to individual performance apart from Company’s
performance.
E)
F)
Comparison of the remuneration of the Key Managerial Personnel against the performance of the
Company
The remuneration of Key Managerial Personnel for the year increased by 93.6% and the Profit after Tax increased by
5.0%.The remuneration to Key Managerial Personnel is designed to be competitive in the market for highly qualified
executives.
Variations in the market capitalisation of the company, price earnings ratio as at the closing date of the
current financial year and previous financial year and percentage increase over decrease in the market
quotations of the shares of the company in comparison to the rate at which the company came out with
the last public offer in case of listed companies
The market capitalisation as on 31st March, 2016 was 1,11,097 crore ( 1,59,791 crore as on 31st March, 2015).
The price earnings ratio of the Company was 21.31 as at 31st March, 2016 and was 31.56 as at 31st March, 2015.
The Company had made a public issue of fully convertible debentures in November 1989 @ 300 per debenture.
These debentures were fully converted into 5 equity share of 10 each in tranches in 1992. Taking into
consideration the adjustments for the demerger of the cement business in June 2004, bonus issues in 1:1 ratio in
October 2006 and October 2008 and bonus issue in 1:2 ratio in July 2013, the closing share price of the Company
at BSE Limited on 31st March 2016, at 1216.20 per equity share of face value 2 each is 243 times the price of
the share issued in 1992.
G)
Average percentile increase already 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 thereof and point out if there are any exceptional circumstances for increase
in managerial remuneration
Average percentage increase made in the salaries of employees other than the managerial personnel for the year
2015-16 was 7.5% whereas there is increase in the managerial remuneration by 93.6% because a substantial
portion of managerial remuneration is linked to Company performance during the financial year 2015-16 and also
includes perquisite value of employee stock options exercised during the year. As stated above, the Profit after Tax
for the year 2015-16 increased by 5.0% directly impacting the variable component of managerial remuneration.
H) The key parameters for any variable component of remuneration availed by the directors
The key parameters for the variable component of remuneration availed by the Key Management Personnel are
(a) profit after tax of the Company and (b) profit after tax of the respective business divisions (including subsidiary
and associate companies of those business divisions) and (c) leadership initiatives undertaken during the year.
The variable component of remuneration also includes perquisite value of employee stock options granted by the
company (including subsidiary companies).
These parameters are approved by the Board of Directors based on the recommendations of the Nomination &
Remuneration Committee and resolution passed by Annual General Meeting as per the Remuneration Policy for
Key Management Personnel. The variable component of remuneration of Key Management Personnel is subject to
maximum limit approved by the shareholders in the Annual General Meeting.
The non-executive directors are paid remuneration by way of commission & sitting fees. The Company pays sitting
fees of 50,000 per meeting of the Board and 25,000 per meeting of the Committee to the non-executive
directors for attending the meetings of the Board & Committees. The commission is paid as per limits approved by
shareholders, subject to a limit not exceeding 1% p.a. of the profits of the Company (computed in accordance with
Section 198 of the Companies Act, 2013). The commission to 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 meetings of the business divisions. In the case of nominees of Financial Institutions,the commission
is paid to the Financial Institutions.
102
Annexure ‘E’ to the Board Report
To,
The Members,
Larsen & Toubro Limited
CIN L99999MH1946PLC004768
L& T House,
Ballard Estate,
Mumbai –400 001.
Our Secretarial Audit Report of even date is to be read along with this letter.
Management’s Responsibility
1.
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.
Auditor’s Responsibility
2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the
Company with respect to secretarial compliances.
3. We believe that audit evidence and information obtained from the Company’s management is adequate and
appropriate for us to provide a basis for our opinion.
4. Wherever required, we have obtained the management’s representation about the compliance of laws, rules and
regulations and happening of events etc.
Disclaimer
5. 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.
For S. N. ANANTHASUBRAMANIAN & CO.
Company Secretaries
Firm Registration No.P1991MH040400
S. N. ANANTHASUBRAMANIAN
Partner
C.P No: 1774
Date: May 12, 2016
Place: Thane
103
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2016
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Larsen & Toubro Limited
CIN: L99999MH1946PLC004768
L& T House,
Ballard Estate,
Mumbai –400 001
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 2016, 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:
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
2016 according to the provisions of:
i.
The Companies Act, 2013 (the Act) and the rules
made thereunder and the applicable provisions of
Companies Act, 1956;
ii. The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and the rules made thereunder;
iii. The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
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;
v.
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’):-
a. The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
b. The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 1992
upto 14th May 2015/Securities and Exchange
Board of India (Prohibition of Insider Trading)
Regulations, 2015 (effective 15th May 2015);
c. The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2009 - Not Applicable as the
Company has not issued further capital
during the financial year under review;
d. The Securities and Exchange Board of India (Share
Based Employee Benefits) Regulations, 2014;
e. The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
f.
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;
g. The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009
- Not applicable as the Company has not
delisted/proposed to delist its equity shares
from any Stock Exchange during the financial
year under review;
104
h. The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998 - Not
applicable as the Company has not bought
back/proposed to buy-back any of its
securities during the financial year under
review.
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:
(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 and made effective 1st July 2015;
(ii) The Listing Agreements entered into by the Company
with National Stock Exchange of India Limited and BSE
Limited and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 made effective 1st
December 2015.
During the period under review the Company has
complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned above.
We further report that: -
(cid:3)(cid:122)
The Board of Directors of the Company is duly
constituted with proper balance of Executive
Directors, Non-Executive Directors and Independent
Directors. The changes in the composition of the
Board of Directors that took place during the period
under review were carried out in compliance with the
provisions of the Act.
a system exists for seeking and obtaining further
information and clarifications on the agenda items
before the meeting and for meaningful participation
at the meeting.
(cid:3)(cid:122)
Unanimous decision is carried through hence there
are no dissenting members’ views to be captured and
recorded as part of the minutes.
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: -
(cid:3)(cid:122)
As informed, the Company has responded to notices
for demands, claims, penalties etc., levied by various
statutory/regulatory authorities and initiated actions
for corrective measures, wherever found necessary.
We further report that the Company has on 24th
September 2015, issued and allotted 10,000 Unsecured
Non-Convertible Debentures aggregating to 1000 crore.
For S. N. ANANTHASUBRAMANIAN & CO.
Company Secretaries
Firm Registration No.P1991MH040400
S. N. ANANTHASUBRAMANIAN
Partner
C.P No: 1774
(cid:3)(cid:122)
Adequate notice is given to all Directors to schedule
the Board Meetings, agenda and detailed notes on
agenda were sent atleast seven days in advance, and
Date: May 12, 2016
Place: Thane
105
Annexure ‘F’ to the Board Report
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on March 31, 2016
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and
Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN
ii) Registration Date
iii) Name of the Company
iv) Category
v)
vi)
Sub-Category of the Company
Address of the Registered office and contact
details
vii) Whether listed company
viii) Name, Address and Contact details of
Registrar and Transfer Agent, if any
L99999MH1946PLC004768
February 7, 1946
LARSEN & TOUBRO LIMITED
PUBLIC LIMITED COMPANY
L&T HOUSE, N. M. MARG, BALLARD ESTATE, MUMBAI - 400 001
TEL : 022-6752 5656 FAX: 022-6752 5893
LISTED
SHAREPRO SERVICES (INDIA) PRIVATE LIMITED;
UNIT-LARSEN & TOUBRO LIMITED,
SAMHITA WAREHOUSING COMPLEX, BLDG. NO. 13 A B, 2ND FLOOR,
OFF SAKINAKA TELEPHONE EXCHANGE LANE,
ANDHERI KURLA ROAD, SAKI NAKA, MUMBAI - 400 072.
TEL : 022-6772 0300/6772 0400 FAX: 022-2859 1568/2850 08927
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
Sl.
No.
1
2
3
Name and Description of main products/
services
Construction of Buildings
Construction of Roads and Railways
Construction of Utility Projects
NIC Code of the Product/
service
410
421
422
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –
% to total turnover of
the company
S. No Name of the
Address of the Company
CIN/GLN
U74899DL1995PLC070704
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
99.90 Section 2(87)(ii)
U70101TN2008PTC068877
SUBSIDIARY
100.00 Section 2(87)(ii)
U67120DL2001PLC199088
SUBSIDIARY
66.71 Section 2(87)(ii)
U74999MH1962PLC012315
SUBSIDIARY
100.00 Section 2(87)(ii)
1
2
3
4
Company
BHILAI POWER
SUPPLY COMPANY
LIMITED
CHENNAI VISION
DEVELOPERS
PRIVATE LIMITED
9TH FLOOR, AMBADEEP
BUILDING, 14, KASTURBA
GANDHI MARG, CONNAUGHT
PLACE, NEW DELHI-110001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
CONSUMER
FINANCIAL SERVICES
LIMITED
UNIT NO.505 & 506, DLF TOWER
B, DISTRICT CENTRE, JASOLA,
NEW DELHI-110025
EWAC ALLOYS
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
106
S. No Name of the
Address of the Company
CIN/GLN
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Company
FAMILY CREDIT
LIMITED
TECHNOPOLIS, 7TH FLOOR,
A- WING, PLOT NO. - 4, BLOCK
- BP, SECTOR - V, SALT LAKE,
KOLKATA-700091
GDA TECHNOLOGIES
LIMITED
NO.9-A, CHINTHAMANI
NAGAR, K.K. PUDUR,
COIMBATORE-641038
HENIKWON
CORPORATION SDN.
BHD
2A-03-2, LORONG BATU NILAM
4A, BANDAR BUKIT TINGGI,
41200, KLANG, SELANGOR,
MALAYSIA
HI-TECH ROCK
PRODUCTS &
AGGREGATE LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
KANA CONTROLS
GENERAL TRADING
& CONTRACTING
COMPANY WLL
KESUN IRON AND
STEEL COMPANY
PRIVATE LIMITED
KUDGI
TRANSMISSION
LIMITED
L&T - GULF PRIVATE
LIMITED
L&T ACCESS
DISTRIBUTION
SERVICES LIMITED
L&T AHMEDABAD-
MALIYA TOLLWAY
LIMITED
L&T ARUNACHAL
HYDROPOWER
LIMITED
L&T AVIATION
SERVICES PRIVATE
LIMITED
L&T BPP TOLLWAY
LIMITED
L&T CAPITAL
COMPANY LIMITED
L&T CAPITAL
MARKETS LIMITED
L&T CASSIDIAN
LIMITED
L&T CHENNAI TADA
TOLLWAYS LIMITED
OFFICE NO. 14, 5TH FLOOR,
AL-FARWANIYA, BLOCK NO. 44,
BLDG. NO. 6, GHASHAM FAHED
AL-BASMAN, KUWAIT
L&T ENERGY CENTRE, NEAR
CHHANI JAKAT NAKA,
VADODARA, GUJARAT - 390002
BUILDING NO. 3, 2ND FLOOR,
SUDEEP PLAZA, MLU SECTOR-II,
POCKET 4, DWARKA, NEW
DELHI - 110075
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
Holding/
Subsidiary/
Associate
% of Shares
held
Applicable Section
U65910WB1993FLC060810
SUBSIDIARY
66.71 Section 2(87)(ii)
U72200TZ1997PLC008145
SUBSIDIARY
94.96 Section 2(87)(ii)
161535-W
SUBSIDIARY
100.00 Section 2(87)(ii)
U14290TN2008PLC065900
SUBSIDIARY
100.00 Section 2(87)(ii)
10292
SUBSIDIARY
49.00 Section 2(87)(i)
U27100GJ2009PTC055901
SUBSIDIARY
95.00 Section 2(87)(ii)
U40106DL2012GOI245339
SUBSIDIARY
97.45 Section 2(87)(ii)
U74140MH2008PTC177765
SUBSIDIARY
50.0002 Section 2(87)(ii)
U65100TN2011PLC083348
SUBSIDIARY
66.71 Section 2(87)(ii)
U45203TN2008PLC069211
SUBSIDIARY
97.45 Section 2(87)(ii)
U40300MH2010PLC204778
SUBSIDIARY
100.00 Section 2(87)(ii)
U62100MH2009PTC196917
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2011PLC080786
SUBSIDIARY
97.45 Section 2(87)(ii)
U67190MH2000PLC125653
SUBSIDIARY
100.00 Section 2(87)(ii)
U67190MH2013PLC240261
SUBSIDIARY
66.71 Section 2(87)(ii)
U29253MH2011PLC216258
SUBSIDIARY
74.00 Section 2(87)(ii)
U45309TN2008PLC066938
SUBSIDIARY
97.45 Section 2(87)(ii)
107
S. No Name of the
Address of the Company
CIN/GLN
Holding/
Subsidiary/
Associate
% of Shares
held
Applicable Section
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
U29119MH1997PLC109700
SUBSIDIARY
100.00 Section 2(87)(ii)
U28920MH1952PLC008893
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2011PLC083661
SUBSIDIARY
97.45 Section 2(87)(ii)
U45203TN2010PLC075491
SUBSIDIARY
97.45 Section 2(87)(ii)
WAREHOUSE NO. FZS2ABO5
262158, JEBEL ALI FREE ZONE,
DUBAI, UNITED ARAB EMIRATES
107673
SUBSIDIARY
100.00 Section 2(87)(ii)
Company
L&T CONSTRUCTION
EQUIPMENT LIMITED
L&T CUTTING TOOLS
LIMITED
L&T DECCAN
TOLLWAYS LIMITED
L&T DEVIHALLI
HASSAN TOLLWAY
LIMITED
L&T ELECTRICAL &
AUTOMATION FZE
L&T ELECTRICAL AND
AUTOMATION SAUDI
ARABIA COMPANY
LIMITED LLC
L&T ELECTRICALS
AND AUTOMATION
LIMITED
L&T FINANCE
HOLDINGS LIMITED
L&T FINANCE
LIMITED
L&T FINCORP
LIMITED
MH-4, PLOT NO. 17+19, IIND
INDUSTRIAL CITY, DAMMAM,
P.O. BOX 77186, AL KHOBAR
31952, KINGDOM OF SAUDI
ARABIA
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T GENERAL
INSURANCE
COMPANY LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HALOL-
SHAMLAJI TOLLWAY
LIMITED
L&T HIMACHAL
HYDROPOWER
LIMITED
L&T HOUSING
FINANCE LIMITED
L&T HOWDEN
PRIVATE LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
RAMA COTTAGE, KANLOG,
SHIMLA-171001
UNIT NO.505 & 506, DLF TOWER
B, DISTRICT CENTRE, JASOLA,
NEW DELHI-110025
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HYDROCARBON
ENGINEERING
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T IDPL TRUSTEE
MANAGER PTE. LTD.
8 CROSS STREET, #10-00, PWC
BUILDING, SINGAPRE (048424)
L&T INFORMATION
TECHNOLOGY
SERVICES
(SHANGHAI) CO.,
LTD.
ROOM 1100, BUILDING 2,
NO.1388, XINGXIAN ROAD,
JIADING DISTRICT, SHANGHAI
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
108
2050051589
SUBSIDIARY
75.00 Section 2(87)(ii)
U31501MH2007PLC176667
SUBSIDIARY
100.00 Section 2(87)(ii)
L67120MH2008PLC181833
SUBSIDIARY
66.71 Section 2(87)(ii)
U65990MH1994PLC083147
SUBSIDIARY
66.71 Section 2(87)(ii)
U65910MH1997PLC108179
SUBSIDIARY
66.71 Section 2(87)(ii)
U66030MH2007PLC177117
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2008PLC069210
SUBSIDIARY
97.45 Section 2(87)(ii)
U40102HP2010PLC031697
SUBSIDIARY
100.00 Section 2(87)(ii)
U45200DL1994PLC198639
SUBSIDIARY
66.71 Section 2(87)(ii)
U31401MH2010PTC204403
SUBSIDIARY
50.10 Section 2(87)(ii)
U11200MH2009PLC191426
SUBSIDIARY
100.00 Section 2(87)(ii)
201326418G
SUBSIDIARY
97.45 Section 2(87)(ii)
310000400714060 (JIADING)
SUBSIDIARY
94.96 Section 2(87)(ii)
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
S. No Name of the
Address of the Company
CIN/GLN
Company
L&T INFOTECH
FINANCIAL SERVICES
TECHNOLOGIES INC
2810, MATHESON BLVD EAST
SUITE 500, MISSISSAUGA,
ONL4W 4X7 CANADA
770556-5
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
94.96 Section 2(87)(ii)
L&T INFRA DEBT
FUND LIMITED
3B, LAXMI TOWERS, C - 25,
‘G’ BLOCK, BANDRA - KURLA
COMPLEX, BANDRA (EAST),
MUMBAI-400051
L&T INFRA
INVESTMENT
PARTNERS ADVISORY
PRIVATE LIMITED
3B, LAXMI TOWERS, C - 25,
‘G’ BLOCK, BANDRA - KURLA
COMPLEX, BANDRA (EAST),
MUMBAI-400051
L&T INFRA
INVESTMENT
PARTNERS TRUSTEE
PRIVATE LIMITED
3B, LAXMI TOWERS, C - 25,
‘G’ BLOCK, BANDRA - KURLA
COMPLEX, BANDRA (EAST),
MUMBAI-400051
L&T
INFRASTRUCTURE
DEVELOPMENT
PROJECTS LANKA
(PRIVATE) LIMITED
L&T
INFRASTRUCTURE
DEVELOPMENT
PROJECTS LIMITED
L&T
INFRASTRUCTURE
ENGINEERING
LIMITED
NO.5 – 4/1, 19TH LANE,
COLOMBO - 03, SRI LANKA
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T
INFRASTRUCTURE
FINANCE COMPANY
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T INTERSTATE
ROAD CORRIDOR
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T INVESTMENT
MANAGEMENT
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T KOBELCO
MACHINERY PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T KRISHNAGIRI
THOPUR TOLL ROAD
LIMITED
L&T KRISHNAGIRI
WALAJAHPET
TOLLWAY LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T METRO RAIL
(HYDERABAD)
LIMITED
1-Q4-A1, CYBER TOWER, HITEC
CITY, MADHAPUR, HYDERABAD,
ANDHRA PRADESH-500081
L&T MODULAR
FABRICATION YARD
LLC
PO BOX 236, P.C 322, FALAZ
AL QABAIL, SOHAR, SULTANATE
OF OMAN
L&T MUTUAL FUND
TRUSTEE LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U67100MH2013PLC241104
SUBSIDIARY
66.71 Section 2(87)(ii)
U67190MH2011PTC218046
SUBSIDIARY
66.71 Section 2(87)(ii)
U65900MH2011PTC220896
SUBSIDIARY
66.71 Section 2(87)(ii)
N(PVS)45877
SUBSIDIARY
93.44 Section 2(87)(ii)
U65993TN2001PLC046691
SUBSIDIARY
97.45 Section 2(87)(ii)
U74140TN1998PLC039864
SUBSIDIARY
100.00 Section 2(87)(ii)
U67190TN2006PLC059527
SUBSIDIARY
66.71 Section 2(87)(ii)
U45203TN2006PLC058735
SUBSIDIARY
97.45 Section 2(87)(ii)
U65991MH1996PLC229572
SUBSIDIARY
66.71 Section 2(87)(ii)
U29253MH2010PTC210325
SUBSIDIARY
51.00 Section 2(87)(ii)
U45203TN2005PLC057930
SUBSIDIARY
97.45 Section 2(87)(ii)
U45203TN2010PLC075446
SUBSIDIARY
97.45 Section 2(87)(ii)
U45300AP2010PLC070121
SUBSIDIARY
97.48 Section 2(87)(ii)
1001910
SUBSIDIARY
65.00 Section 2(87)(ii)
U65993MH1996PLC211198
SUBSIDIARY
66.71 Section 2(87)(ii)
109
S. No Name of the
Address of the Company
CIN/GLN
Company
L&T OVERSEAS
PROJECTS NIGERIA
LIMITED
252E, MURI OKUNOLA STREET,
VICTORIA ISLAND, LAGOS,
NIGERIA
601723
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
56
57
58
59
L&T PANIPAT
ELEVATED CORRIDOR
LIMITED
L&T PORT
KACHCHIGARH
LIMITED
L&T POWER
DEVELOPMENT
LIMITED
60
L&T POWER LIMITED
61
L&T RAJKOT-
VADINAR TOLLWAY
LIMITED
62
L&T REALTY FZE
63
L&T REALTY LIMITED
64
65
66
67
68
69
L&T SAMAKHIALI
GANDHIDHAM
TOLLWAY LIMITED
L&T SAMBALPUR -
ROURKELA TOLLWAY
LIMITED
L&T SAPURA
OFFSHORE PRIVATE
LIMITED
L&T SAPURA
SHIPPING PRIVATE
LIMITED
L&T SEAWOODS
LIMITED
L&T SHIPBUILDING
LIMITED
70
L&T SOLAR LIMITED
71
L&T SOUTH CITY
PROJECTS LIMITED
110
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
EXECUTIVE SUITE, P.O.BOX
121576, SAIF ZONE,SHARJAH,
U.A.E.
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
GROUND FLOOR, TC-1
BUILDING, L&T CONSTRUCTION
CAMPUS, MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
U45203TN2005PLC056999
SUBSIDIARY
97.45 Section 2(87)(ii)
U45203TN2008PLC067551
SUBSIDIARY
97.45 Section 2(87)(ii)
U40101MH2007PLC174071
SUBSIDIARY
100.00 Section 2(87)(ii)
U40100MH2006PLC160413
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2008PLC069184
SUBSIDIARY
97.45 Section 2(87)(ii)
02 - 01 - 05714
SUBSIDIARY
100.00 Section 2(87)(ii)
U74200MH2007PLC176358
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2010PLC074501
SUBSIDIARY
97.45 Section 2(87)(ii)
U45206TN2013PLC093395
SUBSIDIARY
97.45 Section 2(87)(ii)
U11200TN2010PTC077214
SUBSIDIARY
60.00 Section 2(87)(ii)
U61100TN2010PTC077217
SUBSIDIARY
60.00 Section 2(87)(ii)
U45203MH2008PLC180029
SUBSIDIARY
100.00 Section 2(87)(ii)
U74900TN2007PLC065356
SUBSIDIARY
97.00 Section 2(87)(ii)
U40109MH2010PLC205058
SUBSIDIARY
100.00 Section 2(87)(ii)
U70101TN2006PLC058866
SUBSIDIARY
51.00 Section 2(87)(ii)
S. No Name of the
Address of the Company
CIN/GLN
72
73
74
75
76
77
78
79
Company
L&T SPECIAL
STEELS AND HEAVY
FORGINGS PRIVATE
LIMITED
L&T TECHNOLOGY
SERVICES LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T TECHNOLOGY
SERVICES LLC
200, WEST ADAMS STREET,
CHICAGO, ILLINOIS-60606
L&T THALES
TECHNOLOGY
SERVICES PRIVATE
LIMITED
L&T
TRANSPORTATION
INFRASTRUCTURE
LIMITED
RR V TOWER, 6TH FLOOR, 33A,
DEVELOPED PLOTS, SIDCO
INDUSTRIAL ESTATE, GUINDY,
CHENNAI-600032
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T TRUSTEE
COMPANY PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T UTTARANCHAL
HYDROPOWER
LIMITED
VILLAGE BEDUBAGAR, P.O.
AUGUSTMUNI, RUDRAPRAYAG,
UTTARAKHAND - 246421
L&T VADODARA
BHARUCH TOLLWAYS
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
80
L&T VALVES LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
81
82
83
84
85
86
87
88
L&T VISION
VENTURES LIMITED
L&T VRINDAVAN
PROPERTIES LIMITED
L&T WESTERN
ANDHRA TOLLWAYS
LIMITED
L&T WESTERN INDIA
TOLLBRIDGE LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T-MHPS BOILERS
PRIVATE LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T-MHPS TURBINE
GENERATORS
PRIVATE LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T-SARGENT &
LUNDY LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T-VALDEL
ENGINEERING
LIMITED
NO 19, PRIMROSE ROAD,
BANGALORE,
KARNATAKA 560025
Holding/
Subsidiary/
Associate
% of Shares
held
Applicable Section
U27109MH2009PTC193699
SUBSIDIARY
74.00 Section 2(87)(ii)
U72900MH2012PLC232169
SUBSIDIARY
100.00 Section 2(87)(ii)
0479598-9
SUBSIDIARY
100.00 Section 2(87)(ii)
U72200TN2006PTC059421
SUBSIDIARY
74.00 Section 2(87)(ii)
U45203TN1997PLC039102
SUBSIDIARY
98.12 Section 2(87)(ii)
U74990MH2009PTC193936
SUBSIDIARY
100.00 Section 2(87)(ii)
U31401UR2006PLC032329
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2005PLC058417
SUBSIDIARY
97.45 Section 2(87)(ii)
U74999MH1961PLC012188
SUBSIDIARY
100.00 Section 2(87)(ii)
U74210TN2006PLC061845
SUBSIDIARY
68.00 Section 2(87)(ii)
U70200TN2011PLC081100
SUBSIDIARY
66.71 Section 2(87)(ii)
U45203TN2005PLC057931
SUBSIDIARY
97.45 Section 2(87)(ii)
U45203TN1999PLC042518
SUBSIDIARY
97.45 Section 2(87)(ii)
U29119MH2006PTC165102
SUBSIDIARY
51.00 Section 2(87)(ii)
U31101MH2006PTC166541
SUBSIDIARY
51.00 Section 2(87)(ii)
U74210MH1995PLC088099
SUBSIDIARY
50.0001 Section 2(87)(ii)
U74210KA2004PLC035094
SUBSIDIARY
100.00 Section 2(87)(ii)
111
S. No Name of the
Address of the Company
CIN/GLN
390357-T
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
30.00 Section 2(87)(i)
Company
LARSEN & TOUBRO
(EAST ASIA) SDN.
BHD
LARSEN & TOUBRO
ATCO SAUDIA LLC
SUITE 702, 7TH FLOOR, WISMA
HANGSAM, JALAN HANG
LEKIR, 50000 KUALA LUMPUR,
MALAYSIA
AL-TURKI BUILDING, KING
KHALED STREET, P.O. BOX 91,
DAMMAM
LARSEN & TOUBRO
ELECTROMECH LLC
P.O. BOX 1999, RUWI, POSTAL
CODE 112, MUSCAT
LARSEN & TOUBRO
HEAVY ENGINEERING
LLC
P.O. BOX 281, POSTAL CODE
325, W LIWA, SULTANATE OF
OMAN
LARSEN & TOUBRO
HYDROCARBON
INTERNATIONAL
LIMITED LLC
P.O. BOX 6391, AL KHOBAR
34423, KINGDOM OF SAUDI
ARABIA
LARSEN & TOUBRO
INFOTECH CANADA
LIMITED
2810, MATHESON BLVD EAST
SUITE 500, MISSISSAUGA,
ONL4W 4X7 CANADA
LARSEN & TOUBRO
INFOTECH GMBH
LARSEN & TOUBRO
INFOTECH LIMITED
EURO-ASIA BUSINESS CENTRE,
MESSE-ALLEE 2, D-04356,
LEIPZIG, GERMANY
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
89
90
91
92
93
94
95
96
97
98
99
2050055625
SUBSIDIARY
75.00 Section 2(87)(ii)
1/04445/1
1042928
SUBSIDIARY
65.00 Section 2(87)(ii)
SUBSIDIARY
70.00 Section 2(87)(ii)
2051053464
SUBSIDIARY
100.00 Section 2(87)(ii)
1415026
SUBSIDIARY
94.96 Section 2(87)(ii)
HRB15958
SUBSIDIARY
94.96 Section 2(87)(ii)
U72900MH1996PLC104693
SUBSIDIARY
94.96 Section 2(87)(ii)
LARSEN & TOUBRO
INFOTECH LLC
1220, N. MARKET ST., SUITE 806,
WILMINGTON, DE 19801, USA
270596763
SUBSIDIARY
94.96 Section 2(87)(ii)
LARSEN & TOUBRO
INTERNATIONAL FZE
OFFICE LOB 16 G 08, POST
BOX 41558, HAMRIYAH FREE
ZONE, SHARJAH, UNITED ARAB
EMIRATES
0067
SUBSIDIARY
100.00 Section 2(87)(ii)
PLOT NO. 3, BUILDING NO.1,
SHARQ, KUWAIT
117668
SUBSIDIARY
49.00 Section 2(87)(i)
LARSEN &
TOUBRO KUWAIT
CONSTRUCTION
GENERAL
CONTRACTING
COMPANY, WITH
LIMITED LIABILITY
100
LARSEN & TOUBRO
LLC
101
102
103
LARSEN & TOUBRO
OMAN LLC
LARSEN & TOUBRO
QATAR LLC
LARSEN & TOUBRO
READYMIX AND
ASPHALT CONCRETE
INDUSTRIES LLC
113, BARKSDALE PROFESSIONAL
CENTRE, NEWARK CITY,
COUNTRY OF NEW CASTLE, G56
ZIP CODE-19711, U.S.A
P.O. BOX 1127, RUWI, POSTAL
CODE 112, SULTANATE OF
OMAN
P.O. BOX 24399, SH. THAMOUR
BLDG., MEZZANINE FLOOR,
AL-HANDASA AREA, NEAR
JAIDAH FLYOVER, B RING ROAD,
DOHA, QATAR
6 DEL.C 18-101
SUBSIDIARY
100.00 Section 2(87)(ii)
1/40304/4
SUBSIDIARY
65.00 Section 2(87)(ii)
27454
SUBSIDIARY
49.00 Section 2(87)(i)
JEBEL ALI INDUSTRIAL AREA,
JEBEL ALI, DUBAI
583119
SUBSIDIARY
49.00 Section 2(87)(i)
104
LARSEN & TOUBRO
SAUDI ARABIA LLC
P.O. BOX NO.20, RIYADH 11351,
KINGDOM OF SAUDI ARABIA
11351
1010154437
SUBSIDIARY
100.00 Section 2(87)(ii)
112
S. No Name of the
Address of the Company
CIN/GLN
Company
2010/018159/07
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
72.50 Section 2(87)(ii)
105
106
107
108
109
110
112
113
114
115
116
117
LARSEN & TOUBRO
TANDD SA (PTY)
LIMITED
2ND FLOOR, 4 PENCARROW
CRESCENT, LA LUCIA RIDGE
OFFICE ESTATE,
SOUTH AFRICA 4019
LARSEN AND
TOUBRO INFOTECH
SOUTH AFRICA (PTY)
LIMITED
6TH FLOOR, 119 HERTZOG
BOULEVARD, FORESHORE,
CAPETOWN,
SOUTH AFRICA 8001
LARSEN TOUBRO
ARABIA LLC
MUDIT CEMENT
PRIVATE LIMITED
NABHA POWER
LIMITED
PNG TOLLWAY
LIMITED
111
PT TAMCO
INDONESIA
PT. LARSEN
& TOUBRO
HYDROCARBON
ENGINEERING
INDONESIA
ALMADA TOWER, PRINCE TURKI
STREET, AL KHOBAR, SAUDI
ARABIA
UNIT NO.505 & 506, DLF TOWER
B, DISTRICT CENTRE, JASOLA,
NEW DELHI-110025
PO BOX NO-28, NEAR VILLAGE
NALASH, RAJPURA, PATIALA,
PUNJAB-140401
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
JALAN RAYA PASAR SERANG,
NO. 15, KANDANG RODA,
CIKARANG BEKASI 17330,
INDONESIA
THE CITY TOWER, 12TH FLOOR,
UNIT 1-N, J1.MH., THAMRIN
NO.81, CENTRAL JAKARTA,
INDONESIA 10310
RAYKAL ALUMINIUM
COMPANY PRIVATE
LIMITED
ANNAPURNA COMPLEX, 559,
LEWIS ROAD, BHUBANESWAR,
ODIHSA-751014
SERVOWATCH
SYSTEMS LIMITED
THE WOODROPE BUILDING,
WOODROLFE ROAD,
TOLLESBURY, MALDONESSEX
CM9 8SE, UNITED KINGDOM
SPECTRUM
INFOTECH PRIVATE
LIMITED
L&T HOUSE, 38, CUBBON
ROAD, BANGALORE,
KARNATAKA-560001
TAMCO ELECTRICAL
INDUSTRIES
AUSTRALIA PTY LTD
31, KITCHEN ROAD,
DANDENONG, VICTORIA 3175,
AUSTRALIA
TAMCO SWITCHGEAR
(MALAYSIA) SDN BHD
118
THALEST LIMITED
119
L&T GLOBAL
HOLDINGS LIMITED
UNIT C508, BLOCK C, KELANA
SQUARE, JALAN SS7/26, KELANA
JAYA 47301, PETALING JAYA
SELANGOR DAR UL EHSAN,
MALAYSIA
ENDEAVOUR HOUSE, BENTALLS
INDUSTRIAL ESTATE, HOLLOWAY
ROAD, MALDON, ESSEX, C9 4ER,
UNITED KINGDOM
UNIT 7, LEVEL 3, GATE
PRECINCT, BUILDING 2, DUBAI
INTERNATIONAL FINANCIAL
CENTRE, P.O BOX 63671, DUBAI,
UAE
2011/007226/07
SUBSIDIARY
71.12 Section 2(87)(ii)
2051049523
SUBSIDIARY
75.00 Section 2(87)(ii)
U26942DL1990PTC041941
SUBSIDIARY
66.71 Section 2(87)(ii)
U40102PB2007PLC031039
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2009PLC070741
SUBSIDIARY
72.77 Section 2(87)(ii)
C2-18.177.HT.01.01.HT 94
SUBSIDIARY
100.00 Section 2(87)(ii)
AHU-0110258.AH.01.09
SUBSIDIARY
95.00 Section 2(87)(ii)
U13203OR1999PTC005673
SUBSIDIARY
75.50 Section 2(87)(ii)
2159287
SUBSIDIARY
100.00 Section 2(87)(ii)
U72200KA1995PTC018112
SUBSIDIARY
100.00 Section 2(87)(ii)
ACN006140512
SUBSIDIARY
100.00 Section 2(87)(ii)
775268-H
SUBSIDIARY
100.00 Section 2(87)(ii)
01201246
SUBSIDIARY
100.00 Section 2(87)(ii)
CL2106
SUBSIDIARY
100.00 Section 2(87)(ii)
113
S. No Name of the
Address of the Company
CIN/GLN
Holding/
Subsidiary/
Associate
% of Shares
held
Applicable Section
Company
MARINE
INFRASTRUCTURE
DEVELOPER PRIVATE
LIMITED
L&T INFORMATION
TECHNOLOGY SPAIN
SOCIEDAD LIMITADA
L&T NATURAL
RESOURCES LIMITED
L&T POWERGEN
LIMITED
L&T INFOTECH
AUSTRIA GMBH LLC
FEEDBACK
INFRAPRIVATE
LIMITED
GROUND FLOOR, TC 1 BUILDING,
L&T CONSTRUCTION COMPLEX,
MOUNT POONAMALLE ROAD,
MANAPAKKAM,
CHENNAI - 600089
C/JOSE ABASCAL, 56 2ND
FLOOR, MADRID
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
c/o, OBERHAMMER,
RECHTSANWALTE GMBH,
KARLSPLATZ, 3/1, VIENNA
311, 3RD FLOOR,VARDHAMAN
PLAZA, POCKET 7, PLOT NO. 6,
SECTOR 12, DWARKA , NEW
DELHI -110078
GUJARAT LEATHER
INDUSTRIES LIMITED
NO 3001, GIDC INDUSTRIAL
ESTATE, ANKLESHWAR, GUJARAT
INDIRAN
ENGINEERING
PROJECTS AND
SYSTEMS KISH (LLC)
POST BOX 1267, NEHA
APARTMENT, BAZAAR-E-
DANOOS, KISH ISLAND, IRAN
INTERNATIONAL
SEAPORTS (HALDIA)
PRIVATE LIMITED
FLAT NO. 27, 5TH FLOOR,
KOHINOOR BUILDING, 105, PARK
STREET, KOLKATA 700016
U74999TN2016PTC103769
SUBSIDIARY
100.00 Section 2(87)(ii)
B87472072
SUBSIDIARY
94.96 Section 2(87)(ii)
U74900MH2008PLC182601
SUBSIDIARY
100.00 Section 2(87)(ii)
U40103MH2010PLC209313
SUBSIDIARY
100.00 Section 2(87)(ii)
FN435491D
SUBSIDIARY
94.96 Section 2(87)(ii)
U74899DL1990PTC040630
ASSOCIATE
16.89 Section 2(6)
U18104GJ1978SGC003134
ASSOCIATE
50.00 Section 2(6)
3744
ASSOCIATE
50.00 Section 2(6)
U45205WB1999PTC090733
ASSOCIATE
21.74 Section 2(6)
L&T CAMP FACILITIES
LLC
P. O. BOX 44357, DUBAI, UNITED
ARAB EMIRATES
600640
ASSOCIATE
49.00 Section 2(6)
L&T-CHIYODA
LIMITED
LARSEN & TOUBRO
QATAR & HBK
CONTRACTING LLC
MAGTORQ PRIVATE
LIMITED
GRAMEEN CAPITAL
INDIA PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U28920MH1994PLC083035
ASSOCIATE
50.00 Section 2(6)
P. O. BOX 1362, DOHA, QATAR
28634
ASSOCIATE
24.50 Section 2(6)
NO. 58-C, SIPCOT INDUSTRIAL
COMPLEX, HOSUR, TAMIL NADU
635126
402, 36 TURNER ROAD,BANDRA
WEST, MUMBAI - 400050
U02520TZ1989PTC002458
ASSOCIATE
42.85 Section 2(6)
U65923MH2007PTC168721
ASSOCIATE
23.87 Section 2(6)
120
121
122
123
124
1
2
3
4
5
6
7
8
9
114
IV. SHARE HOLDING PATTERN
i) Category-wise Share Holding
Category of Shareholders
No. of Shares held at the beginning of the year
No. of Shares held at the end of the year
Demat
Physical
Total % of Total
Shares
Demat
Physical
Total % of Total
Shares
% Change
during the
year
A. Promoters
(1) Indian
a)
Individual/HUF
b) Central Govt
c)
State Govt (s)
d) Bodies Corp.
e) Banks/FI
f) Any Other….
Sub-total (A)(1):-
(2) Foreign
a) NRIs -Individuals
b) Other –Individuals
c) Bodies Corp.
d) Banks/FI
e) Any Other….
Sub-total (A)(2):-
Total shareholding of
Promoter (A) =(A)(1)+(A)(2)
B. Public Shareholding
1.
Institutions
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
a) Mutual Funds
54,399,863
5,310
54,405,173
5.85
76,771,070
3,738
76,774,808
b) Banks/FI
237,695,842
43,205 237,739,047
25.58 237,142,389
41,177 237,183,566
c) Central Govt
d) State Govt(s)
e) Venture Capital Funds
609,148
0
0
f)
Insurance Companies
42,708,526
0
0
0
0
609,148
0
0
42,708,526
0.07
0.00
0.00
4.59
1,314,715
0
0
41,071,676
0
0
0
0
1,314,715
0
0
41,071,676
g) FIIs
156,132,914
40,068 156,172,982
16.80 101,334,166
40,068 101,374,234
h)
Foreign Venture
Capital Funds
0
0
0
0.00
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8.24
25.46
0.14
0.00
0.00
4.41
10.88
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.17
-0.43
0.08
0.00
0.00
-0.19
-5.92
0.00
Sub-total (B)(1):-
491,546,293
88,583 491,634,876
52.89 457,634,016
84,983 457,718,999
49.14
-3.75
2. Non-Institutions
a) Bodies Corp.
i)
Indian
ii) Overseas
b)
Individuals
i)
Individual
shareholders
holding nominal
share capital upto
1 lakh
74,346,035
304,497
74,650,532
0
3,432
3,432
8.03
0.00
65,995,102
305,763
66,300,865
0
3,432
3,432
7.12
0.00
-0.91
0.00
163,550,672
19,885,971 183,436,643
19.73 182,938,555
18,745,440 201,683,995
21.65
1.92
115
Category of Shareholders
No. of Shares held at the beginning of the year
No. of Shares held at the end of the year
Demat
Physical
Total % of Total
Shares
Demat
Physical
Total % of Total
Shares
% Change
during the
year
13,911,234
0
13,911,234
1.50
11,172,991
0
11,172,991
1.20
-0.30
ii)
Individual
shareholders
holding nominal
share capital in
excess of
1 lakh
c) Others (specify)
i)
Directors &
Relatives
2,509,799
2,148
2,511,947
0.27
1,449,165
350
1,449,515
ii)
Foreign Nationals
364,782
20,826
385,608
iii)
Foreign Portfolio
Investors
22,419,444
0
22,419,444
0.04
2.41
392,713
20,826
413,539
49,988,226
0
49,988,226
iv) Non-Residents
7,288,071
447,627
7,735,698
0.83
8,354,814
426,504
8,781,318
v)
Trust
111,588,408
17,766 111,606,174
12.01 114,734,515
17,766 114,752,281
vi)
Qualified Foreign
Investor
0
0
0
0.00
0
0
0
Sub-total (B)(2):-
395,978,445
20,682,267 416,660,712
44.82 435,026,081
19,520,081 454,546,162
887,524,738
20,770,850 908,295,588
97.71 892,660,097
19,605,064 912,265,161
0.16
0.04
5.37
0.94
12.32
0.00
48.80
97.94
-0.11
0.00
2.95
0.11
0.31
0.00
3.97
0.23
21,266,473
0
21,266,473
2.29
19,213,684
0
19,213,684
2.06
-0.23
Total Public Shareholding
(B)=(B)(1)+ (B)(2)
C.
Shares held by
Custodian for GDRs &
ADRs
Grand Total (A+B+C)
908,791,211
20,770,850 929,562,061
100.00 911,873,781
19,605,064 931,478,845
100.00
0.00
(ii) Shareholding of Promoters
Sl
Shareholders Name
Shareholding at the beginning of the year
%of Shares
No. of Shares
Pledged/
encumbered
to total
shares
% of total
Shares of
the company
Shareholding at the end of the year
No. of Shares
% of total
Shares of
the company
%of Shares
Pledged/
encumbered
to total
shares
% change
in share
holding
during the
year
1
2
3
4
Total
NIL
NIL
NIL
NIL
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
Sl.
No.
Shareholding at the beginning of the
year
Cumulative Shareholding during the
year
No. of shares % of total shares
of the Company
No. of shares % of total shares
of the Company
At the beginning of the year
Date wise Increase/Decrease in
Promoters Share holding during
the year specifying the reasons for
increase/decrease (e.g. allotment/
transfer/bonus/sweat equity etc):
At the End of the year
NIL
NIL
NIL
NIL
116
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs
and ADRs):
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
1
LIFE INSURANCE
CORPORATION OF INDIA
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
2
3
L&T EMPLOYEES WELFARE
FOUNDATION
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
ADMINISTRATOR OF THE
SPECIFIED UNDERTAKING
OFTHE UNIT TRUST OF
INDIA
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
At the beginning
of the year
10.04.2015
17.04.2015
22.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
30.06.2015
10.07.2015
17.07.2015
31.03.2016
At the end of the
year
At the beginning
of the year
29.01.2016
31.03.2016
At the end of the
year
At the beginning
of the year
10.04.2015
17.04.2015
22.05.2015
29.05.2015
05.06.2015
31.03.2016
At the end of the
year
No. of shares
155522285
% of total
Shares of the
Company
16.73
In crease /
Decrease in
shareholding
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
No. of shares
% of total
Shares of the
Company
(280000)
(127466)
(60000)
(75000)
(163000)
(393141)
(303305)
(584014)
(114510)
(138774)
(111068)
155242285
155114819
155054819
154979819
154816819
154423678
154120373
153536359
153421849
153283075
153172007
153172007
153172007
3146107
114752281
114752281
16.69
16.68
16.67
16.66
16.64
16.60
16.57
16.50
16.49
16.48
16.46
16.44
16.44
12.32
12.32
111606174
12.01
75925962
8.17
114752281
12.32
600
(600)
600
(500)
500
75926562
75925962
75926562
75926062
75926562
75926562
75926562
8.17
8.16
8.16
8.16
8.16
8.15
8.15
117
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
No. of shares
19251170
% of total
Shares of the
Company
2.07
In crease /
Decrease in
shareholding
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
No. of shares
% of total
Shares of the
Company
4
HDFC TRUSTEE COMPANY
LIMITED-HDFC EQUITY FUND
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
At the beginning
of the year
10.04.2015
17.04.2015
24.04.2015
01.05.2015
08.05.2015
15.05.2015
22.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
30.06.2015
10.07.2015
17.07.2015
24.07.2015
31.07.2015
07.08.2015
14.08.2015
28.08.2015
04.09.2015
11.09.2015
18.09.2015
25.09.2015
30.09.2015
09.10.2015
16.10.2015
23.10.2015
30.10.2015
06.11.2015
13.11.2015
20.11.2015
27.11.2015
04.12.2015
11.12.2015
18.12.2015
25.12.2015
31.12.2015
08.01.2016
118
376784
(50000)
2165
296592
20000
159990
1073
1883
28
25865
1957
31864
15000
15058
(174125)
(96058)
(50000)
(6906)
(36625)
(1279)
20352
144729
2298
36
187625
(96194)
(4906)
9915
157151
69500
1444
3912
295
829
9156
127326
301606
85112
34661
19627954
19577954
19580119
19876711
19896711
20056701
20057774
20059657
20059685
20085550
20087507
20119371
20134371
20149429
19975304
19879246
19829246
19822340
19785715
19784436
19804788
19949517
19951815
19951851
20139476
20043282
20038376
20048291
20205442
20274942
20276386
20280298
20280593
20281422
20290578
20417904
20719510
20804622
20839283
2.11
2.11
2.11
2.14
2.14
2.16
2.16
2.16
2.16
2.16
2.16
2.16
2.16
2.17
2.15
2.14
2.13
2.13
2.13
2.13
2.13
2.14
2.14
2.14
2.16
2.15
2.15
2.15
2.17
2.18
2.18
2.18
2.18
2.18
2.18
2.19
2.22
2.23
2.24
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
15.01.2016
22.01.2016
29.01.2016
05.02.2016
12.02.2016
19.02.2016
26.02.2016
04.03.2016
11.03.2016
18.03.2016
25.03.2016
31.03.2016
31.03.2016
At the end of the
year
At the beginning
of the year
12.06.2015
19.06.2015
26.06.2015
16.10.2015
23.10.2015
12.02.2016
19.02.2016
26.02.2016
04.03.2016
11.03.2016
18.03.2016
25.03.2016
31.03.2016
31.03.2016
At the end of the
year
At the beginning
of the year
10.04.2015
17.04.2015
24.04.2015
01.05.2015
08.05.2015
15.05.2015
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
5
GENERAL INSURANCE
CORPORATION OF INDIA
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
6
ICICI PRUDENTIAL VALUE
DISCOVERY FUND
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
No. of shares
% of total
Shares of the
Company
17481186
1.88
6318799
0.68
In crease /
Decrease in
shareholding
(228538)
25339
1090
(280181)
171640
(176723)
381
173803
1866
(49531)
(6769)
1397
(2000)
(50000)
(48000)
(31186)
(30000)
101930
43751
25000
(10681)
(150000)
(110000)
(60000)
(40000)
(318995)
(100000)
(52718)
25261
329611
35004
No. of shares
20610745
20636084
20637174
20356993
20528633
20351910
20352291
20526094
20527960
20478429
20471660
20473057
20473057
20473057
17479186
17429186
17381186
17350000
17320000
17421930
17465681
17490681
17480000
17330000
17220000
17160000
17120000
17120000
17120000
5999804
5899804
5847086
5872347
6201958
6236962
% of total
Shares of the
Company
2.21
2.22
2.22
2.19
2.20
2.18
2.18
2.20
2.20
2.20
2.20
2.20
2.20
2.20
1.88
1.87
1.87
1.86
1.86
1.87
1.88
1.88
1.88
1.86
1.85
1.84
1.84
1.84
1.84
0.65
0.63
0.63
0.63
0.67
0.67
119
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
22.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
30.06.2015
10.07.2015
17.07.2015
31.07.2015
07.08.2015
14.08.2015
21.08.2015
28.08.2015
04.09.2015
11.09.2015
18.09.2015
25.09.2015
30.09.2015
09.10.2015
16.10.2015
23.10.2015
30.10.2015
06.11.2015
13.11.2015
20.11.2015
27.11.2015
04.12.2015
11.12.2015
18.12.2015
25.12.2015
31.12.2015
08.01.2016
15.01.2016
22.01.2016
29.01.2016
05.02.2016
12.02.2016
19.02.2016
26.02.2016
04.03.2016
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
120
No. of shares
% of total
Shares of the
Company
In crease /
Decrease in
shareholding
871
41062
(40844)
(15994)
(481943)
(153248)
(76826)
(40751)
(118)
(67000)
27303
(379677)
(102926)
116122
351730
48564
507302
500714
700157
184262
58230
(65288)
191738
2074733
717308
588967
57259
166163
481718
1059589
442
489361
437209
1184520
1147196
(137443)
(609839)
42273
190378
(193838)
13095
No. of shares
6237833
6278895
6238051
6222057
5740114
5586866
5510040
5469289
5469171
5402171
5429474
5049797
4946871
5062993
5414723
5463287
5970589
6471303
7171460
7355722
7413952
7348664
7540402
9615135
10332443
10921410
10978669
11144832
11626550
12686139
12686581
13175942
13613151
14797671
15944867
15807424
15197585
15239858
15430236
15236398
15249493
% of total
Shares of the
Company
0.67
0.68
0.67
0.67
0.62
0.60
0.59
0.59
0.59
0.58
0.58
0.54
0.53
0.54
0.58
0.59
0.64
0.70
0.77
0.79
0.80
0.79
0.81
1.03
1.11
1.17
1.18
1.20
1.25
1.36
1.36
1.41
1.46
1.59
1.71
1.70
1.63
1.64
1.66
1.64
1.64
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
11.03.2016
18.03.2016
25.03.2016
31.03.2016
31.03.2016
7
ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LTD
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
At the end of the
year
At the beginning
of the year
10.04.2015
17.04.2015
24.04.2015
01.05.2015
08.05.2015
15.05.2015
22.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
30.06.2015
10.07.2015
17.07.2015
24.07.2015
07.08.2015
14.08.2015
21.08.2015
28.08.2015
04.09.2015
11.09.2015
18.09.2015
25.09.2015
30.09.2015
09.10.2015
16.10.2015
23.10.2015
30.10.2015
06.11.2015
13.11.2015
No. of shares
% of total
Shares of the
Company
In crease /
Decrease in
shareholding
(25772)
(318361)
(299806)
28251
12360295
1.33
84735
77739
46581
(80396)
280765
589488
33054
(87326)
(240718)
(138719)
68799
(59918)
(74925)
85054
(617204)
(281269)
19921
10732
13240
205050
(442863)
117200
(279020)
(117400)
(14746)
(47713)
(256168)
(8555)
35401
(5158)
15639
No. of shares
15223721
14905360
14605554
14633805
14633805
14633805
12445030
12522769
12569350
12488954
12769719
13359207
13392261
13304935
13064217
12925498
12994297
12934379
12859454
12944508
12327304
12046035
12065956
12076688
12089928
12294978
11852115
11969315
11690295
11572895
11558149
11510436
11254268
11245713
11281114
11275956
11291595
% of total
Shares of the
Company
1.63
1.60
1.57
1.57
1.57
1.57
1.34
1.35
1.35
1.34
1.37
1.44
1.44
1.43
1.40
1.39
1.40
1.39
1.38
1.39
1.33
1.29
1.30
1.30
1.30
1.32
1.27
1.29
1.26
1.24
1.24
1.24
1.21
1.21
1.21
1.21
1.21
121
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
8
GOVERNMENT OF
SINGAPORE
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
20.11.2015
27.11.2015
04.12.2015
11.12.2015
18.12.2015
25.12.2015
31.12.2015
08.01.2016
15.01.2016
22.01.2016
29.01.2016
05.02.2016
12.02.2016
19.02.2016
26.02.2016
04.03.2016
11.03.2016
18.03.2016
25.03.2016
31.03.2016
At the end of the
year
At the beginning
of the year
10.04.2015
24.04.2015
01.05.2015
08.05.2015
05.06.2015
12.06.2015
10.07.2015
24.07.2015
31.07.2015
07.08.2015
21.08.2015
28.08.2015
04.09.2015
11.09.2015
30.09.2015
09.10.2015
23.10.2015
122
No. of shares
% of total
Shares of the
Company
12951043
1.39
In crease /
Decrease in
shareholding
(18582)
87324
57791
(125)
186257
(6071)
99439
(54512)
(16389)
218520
75309
269028
929351
584132
39292
15091
56906
4140
178629
27276
45835
(3880)
(128461)
(58351)
51385
(6411)
220852
(36919)
(128114)
127183
(14349)
231981
340697
(136564)
79455
285710
(4814)
No. of shares
11273013
11360337
11418128
11418003
11604260
11598189
11697628
11643116
11626727
11845247
11920556
12189584
13118935
13703067
13742359
13757450
13814356
13818496
13997125
14024401
14024401
12996878
12992998
12864537
12806186
12857571
12851160
13072012
13035093
12906979
13034162
13019813
13251794
13592491
13455927
13535382
13821092
13816278
% of total
Shares of the
Company
1.21
1.22
1.23
1.23
1.25
1.25
1.26
1.25
1.25
1.27
1.28
1.31
1.41
1.47
1.48
1.48
1.48
1.48
1.50
1.51
1.51
1.40
1.40
1.38
1.38
1.38
1.38
1.41
1.40
1.39
1.40
1.40
1.42
1.46
1.45
1.45
1.49
1.49
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
9
ABU DHAABI INVESTMENT
AUTHORITY -BEHAVE
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
30.10.2015
06.11.2015
13.11.2015
20.11.2015
27.11.2015
04.12.2015
11.12.2015
18.12.2015
31.12.2015
08.01.2016
15.01.2016
22.01.2016
29.01.2016
05.02.2016
12.02.2016
19.02.2016
04.03.2016
11.03.2016
31.03.2016
31.03.2016
At the end of the
year
At the beginning
of the year
10.04.2015
24.04.2015
22.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
10.07.2015
17.07.2015
24.07.2015
31.07.2015
14.08.2015
28.08.2015
04.09.2015
18.09.2015
25.09.2015
No. of shares
% of total
Shares of the
Company
10181638
1.10
In crease /
Decrease in
shareholding
(387807)
(10678)
239574
(7614)
(145344)
32751
(21093)
(247683)
(25647)
80472
(4649)
113894
290947
338508
(51506)
(132591)
(77996)
(63994)
40645
7500
201200
(42900)
(312595)
(144326)
90991
8385
(7696)
73899
55058
13391
(112500)
46178
(38397)
(124561)
(37435)
(510974)
No. of shares
13428471
13417793
13657367
13649753
13504409
13537160
13516067
13268384
13242737
13323209
13318560
13432454
13723401
14061909
14010403
13877812
13799816
13735822
13776467
13776467
13776467
10189138
10390338
10347438
10034843
9890517
9981508
9989893
9982197
10056096
10111154
10124545
10012045
10058223
10019826
9895265
9857830
9346856
% of total
Shares of the
Company
1.44
1.44
1.47
1.47
1.45
1.46
1.45
1.43
1.42
1.43
1.43
1.44
1.48
1.51
1.51
1.49
1.48
1.48
1.48
1.48
1.48
1.10
1.12
1.11
1.08
1.06
1.07
1.07
1.07
1.08
1.09
1.09
1.08
1.08
1.08
1.06
1.06
1.00
123
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
10
THE NEW INDIA ASSURANCE
COMPANY LIMITED
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
16.10.2015
30.10.2015
13.11.2015
20.11.2015
27.11.2015
04.12.2015
15.01.2016
22.01.2016
29.01.2016
05.02.2016
26.02.2016
04.03.2016
18.03.2016
25.03.2016
31.03.2016
At the end of the
year
At the beginning
of the year
17.04.2015
22.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
30.06.2015
10.07.2015
24.07.2015
31.07.2015
07.08.2015
14.08.2015
21.08.2015
11.09.2015
18.09.2015
13.11.2015
20.11.2015
27.11.2015
04.12.2015
11.12.2015
31.12.2015
124
No. of shares
% of total
Shares of the
Company
9012316
0.97
In crease /
Decrease in
shareholding
(69991)
59334
(32076)
(20520)
(324689)
(119632)
10166
78043
(795000)
(158500)
(19788)
(30245)
526742
612015
(5000)
(35000)
(36000)
(44691)
(11809)
(67500)
(70000)
(25000)
(40000)
(2500)
(2894)
(24900)
(18833)
(12500)
(20000)
(36903)
25000
28000
11234
7500
28266
12500
No. of shares
9276865
9336199
9304123
9283603
8958914
8839282
8849448
8927491
8132491
7973991
7954203
7923958
8450700
9062715
9062715
9062715
9007316
8972316
8936316
8891625
8879816
8812316
8742316
8717316
8677316
8674816
8671922
8647022
8628189
8615689
8595689
8558786
8583786
8611786
8623020
8630520
8658786
8671286
% of total
Shares of the
Company
1.00
1.00
1.00
1.00
0.96
0.95
0.95
0.96
0.87
0.86
0.85
0.85
0.91
0.97
0.97
0.97
0.97
0.96
0.96
0.96
0.95
0.95
0.94
0.94
0.93
0.93
0.93
0.93
0.93
0.93
0.92
0.92
0.92
0.92
0.93
0.93
0.93
0.93
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
08.01.2016
15.01.2016
22.01.2016
29.01.2016
31.03.2016
No. of shares
% of total
Shares of the
Company
In crease /
Decrease in
shareholding
30000
24601
25000
7899
11
HDFC STANDARD LIFE
INSURANCE COMPANY
LIMITED
At the end of the
year
At the beginning
of the year
7838382
0.84
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
10.04.2015
17.04.2015
24.04.2015
01.05.2015
08.05.2015
15.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
30.06.2015
10.07.2015
17.07.2015
24.07.2015
31.07.2015
07.08.2015
14.08.2015
21.08.2015
28.08.2015
04.09.2015
11.09.2015
18.09.2015
25.09.2015
30.09.2015
09.10.2015
16.10.2015
23.10.2015
30.10.2015
06.11.2015
4471
20092
(43560)
67355
(8829)
33058
16775
(67647)
(26044)
25830
(5722)
(50859)
(89098)
53000
10644
20840
(184897)
(54891)
34988
32748
(20742)
33535
(4865)
(95154)
(61640)
(9214)
56
(3040)
(19855)
(67234)
No. of shares
8701286
8725887
8750887
8758786
8758786
8758786
7842853
7862945
7819385
7886740
7877911
7910969
7927744
7860097
7834053
7859883
7854161
7803302
7714204
7767204
7777848
7798688
7613791
7558900
7593888
7626636
7605894
7639429
7634564
7539410
7477770
7468556
7468612
7465572
7445717
7378483
% of total
Shares of the
Company
0.93
0.94
0.94
0.94
0.94
0.94
0.84
0.85
0.84
0.85
0.85
0.85
0.85
0.84
0.84
0.84
0.84
0.84
0.83
0.83
0.84
0.84
0.82
0.81
0.82
0.82
0.82
0.82
0.82
0.81
0.80
0.80
0.80
0.80
0.80
0.79
125
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
12
SBI LIFE INSURANCE CO.
LTD
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
13.11.2015
20.11.2015
04.12.2015
11.12.2015
18.12.2015
25.12.2015
31.12.2015
08.01.2016
15.01.2016
22.01.2016
29.01.2016
05.02.2016
12.02.2016
19.02.2016
26.02.2016
04.03.2016
11.03.2016
18.03.2016
25.03.2016
31.03.2016
31.03.2016
At the end of the
year
At the beginning
of the year
10.04.2015
17.04.2015
24.04.2015
01.05.2015
08.05.2015
15.05.2015
22.05.2015
29.05.2015
05.06.2015
12.06.2015
19.06.2015
26.06.2015
30.06.2015
10.07.2015
17.07.2015
24.07.2015
126
No. of shares
% of total
Shares of the
Company
6831696
0.73
In crease /
Decrease in
shareholding
(105351)
15792
231
(54096)
(562878)
(220151)
200118
(300689)
39809
(10738)
(20000)
344
(64519)
(71196)
(312608)
(128085)
(34597)
20901
396
(20000)
33273
(356178)
(85263)
(185554)
(240790)
(63089)
24013
(118377)
245159
50015
(2731)
7321
(22)
(22044)
(64160)
(123031)
No. of shares
7273132
7288924
7289155
7235059
6672181
6452030
6652148
6351459
6391268
6380530
6360530
6360874
6296355
6225159
5912551
5784466
5749869
5770770
5771166
5751166
5751166
5751166
6864969
6508791
6423528
6237974
5997184
5934095
5958108
5839731
6084890
6134905
6132174
6139495
6139473
6117429
6053269
5930238
% of total
Shares of the
Company
0.78
0.78
0.78
0.78
0.72
0.69
0.71
0.68
0.69
0.69
0.68
0.68
0.68
0.67
0.63
0.62
0.62
0.62
0.62
0.62
0.62
0.62
0.74
0.70
0.69
0.67
0.64
0.64
0.64
0.63
0.65
0.66
0.66
0.66
0.66
0.66
0.65
0.64
Name of shareholer
Sl.
No.
Date of
transaction
Shareholding at the
beginning (01.04.2015) / end
of the year 31.03.2016
Cumulative Shareholding
during the year (01.04.2015
to 31.03.2016)
No. of shares
% of total
Shares of the
Company
Date wise Increase / Decrease
in Share holding during the
year specifying the reasons
for increase / decrease (e.g.
allotment /transfer/ bonus/
sweat etc.)
31.07.2015
07.08.2015
14.08.2015
21.08.2015
28.08.2015
04.09.2015
11.09.2015
18.09.2015
25.09.2015
30.09.2015
09.10.2015
16.10.2015
23.10.2015
30.10.2015
06.11.2015
13.11.2015
20.11.2015
27.11.2015
04.12.2015
11.12.2015
18.12.2015
25.12.2015
31.12.2015
08.01.2016
15.01.2016
22.01.2016
29.01.2016
05.02.2016
12.02.2016
19.02.2016
26.02.2016
04.03.2016
11.03.2016
18.03.2016
25.03.2016
31.03.2016
31.03.2016
At the end of the
year
In crease /
Decrease in
shareholding
(118251)
(91140)
(10108)
(40615)
44033
(33394)
(259021)
(22432)
(162674)
(5617)
128475
25360
127706
(44914)
(123086)
207729
59996
101350
(36061)
(24205)
66873
1582
9155
11606
111300
214513
148777
(284906)
(310004)
(59582)
(112230)
(76907)
(94109)
(84251)
2411
(126238)
No. of shares
5811987
5720847
5710739
5670124
5714157
5680763
5421742
5399310
5236636
5231019
5359494
5384854
5512560
5467646
5344560
5552289
5612285
5713635
5677574
5653369
5720242
5721824
5730979
5742585
5853885
6068398
6217175
5932269
5622265
5562683
5450453
5373546
5279437
5195186
5197597
5071359
5071359
5071359
% of total
Shares of the
Company
0.62
0.62
0.61
0.61
0.61
0.61
0.58
0.58
0.56
0.56
0.58
0.58
0.59
0.59
0.57
0.60
0.60
0.61
0.61
0.61
0.62
0.62
0.62
0.62
0.63
0.65
0.67
0.64
0.60
0.60
0.59
0.58
0.57
0.56
0.56
0.55
0.54
0.54
127
(v) Shareholding of Directors and Key Managerial Personnel:
Shareholding at the
beginning of the year
No. of
shares
At the Beginning of the year
1,025,000
% of total
Shares
of the
Company
0.11
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
At the end of the year
At the beginning of the year
27.08.2015 (ESOP Exercise)
37,056
35,000
1,025,000
72,056
0.00
0.00
At the End of the year
At the beginning of the year
27.08.2015 (ESOP Exercise)
159,000
15,000
0.02
0.00
At the End of the year
At the beginning of the year
27.08.2015 (ESOP Exercise)
45,350
10,000
0.00
0.00
72,056
174,000
174,000
55,350
0.11
0.01
0.01
0.02
0.02
0.01
Sl.
No.
1
2
3
4
For Each of the top 10
shareholders
A. M. NAIK
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
S. N. SUBRAHMANYAN
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
R. SHANKAR RAMAN
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
SHAILENDRA N. ROY
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
5
D. K. SEN
At the End of the year
As on date of appointment
as Director
30,703
0.00
55,350
0.01
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
6
M. V. SATISH
At the End of the year
As on date of appointment
as Director
42,875
0.00
30,703
0.00
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
128
At the End of the year
42,875
0.00
Sl.
No.
7
8
9
10
11
12
For Each of the top 10
shareholders
M. M. CHITALE
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
SUBODH BHARGAVA
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
M. DAMODARAN
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
VIKRAM SINGH MEHTA
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
SUSHOBHAN SARKER
jointly with Life Insurance
Corporation of India
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
ADIL ZAINULBHAI
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
1,629
% of total
Shares
of the
Company
0.00
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
At the End of the year
At the beginning of the year
750
0.00
1,629
0.00
At the End of the year
At the beginning of the year
150
0.00
750
0.00
At the End of the year
At the beginning of the year
885
0.00
150
0.00
At the End of the year
At the beginning of the year
150
0.00
885
0.00
At the End of the year
At the beginning of the year
100
0.00
150
0.00
-
At the End of the year
100
0.00
129
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
200
% of total
Shares
of the
Company
0.00
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
-
At the End of the year
At the beginning of the year
29.05.2015
3,640
700
0.00
0.00
200
4,340
0.00
0.00
11.11.2015
At the End of the year
As on date of appointment
as Director
15.05.2015
101
-
100
0.00
0.00
0.00
4,441
4,441
0.00
0.00
100
0.00
At the End of the year
100
0.00
As on date of appointment
as Director
-
0.00
15.05.2015
100
0.00
100
0.00
Sl.
No.
13
14
15
16
For Each of the top 10
shareholders
AKHILESH GUPTA
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
BAHRAM VAKIL
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
SWAPAN DASGUPTA jointly
with specified undertaking
of the Unit Trust of India @
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
@ ceased to be a Director
w.e.f May 15, 2016
SUNITA SHARMA jointly
with Life Insurance
Corporation of India
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
17
THOMAS MATHEW T.
At the End of the year
As on date of appointment
as Director
100
0.00
100
0.00
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
130
At the End of the year
100
0.00
No. of
shares
-
100
-
100
-
100
As on date of appointment
as Director
10.07.2015 (Market
Purchase)
At the End of the year
As on date of appointment
as Director
07.10.2015 (Market
Purchase)
At the End of the year
As on date of appointment
as Director
25.03.2016 (Market
Purchase)
Shareholding at the
beginning of the year
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
% of total
Shares
of the
Company
0.00
0.00
100
0.00
0.00
0.00
0.00
0.00
100
0.00
100
0.00
100
0.00
100
0.00
At the End of the year
At the beginning of the year
23,140
0.00
100
0.00
Sl.
No.
For Each of the top 10
shareholders
18
AJAY SHANKAR
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
19
SUBRAMANIAN SARMA
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
20
NAINA LAL KIDWAI
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
N. HARIHARAN
Date wise Increase/Decrease
in Promoters Share holding
during the year specifying the
reasons for increase/decrease
(e.g. allotment/transfer/bonus/
sweat equity etc):
21
V.
INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
At the End of the year
23,140
0.00
Secured Loans
excluding
deposits
Unsecured
Loans
Deposits
crore
Total
Indebtedness
Indebtedness at the beginning of the
financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii)
664.04
12272.55
–
8.62
672.66
–
149.46
12422.01
–
–
–
–
12936.59
–
158.08
13094.67
131
Change in Indebtedness during the
financial year
Addition
Reduction
Exchange gain/(loss)
Interest accrued but not due
Net Change
Indebtedness at the end of the
financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii)
Secured Loans
excluding
deposits
Unsecured
Loans
Deposits
crore
Total
Indebtedness
8417.70
8572.52
(11.32)
0.08
(143.42)
520.54
–
8.70
529.24
19621.89
19270.17
(463.48)
38.57
853.77
13087.75
–
188.03
13275.78
–
–
–
–
–
–
–
–
–
28039.59
27842.69
(474.80)
38.65
710.35
13608.29
–
196.73
13805.02
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND/OR MANAGER:
Sl.
no.
1
2
3
4
5
Particulars of
Remuneration
Gross salary
(a) Salary as per
provisions
contained in
section 17(1) of
the Income-tax
Act, 1961
(b) Value of
perquisites
u/s 17(2)
Income-tax Act,
1961
(c) Profits in lieu
of salary under
section 17(3)
Income tax Act,
1961
Stock Option
Sweat Equity
Commission
- as % of profit
- others, specify…
Others
(Contribution to
Provident Fund &
Superannuation
Fund)
Total (A)
Ceiling as per
the Act
A M NAIK
K VENKATARAMANAN*
M V
KOTWAL^
S N
SUBRAHMANYAN
R SHANKAR
RAMAN
SHAILENDRA
ROY
D K SEN@ M V SATISH#
Name of MD/WTD/Manager
Crore
Total
Amount
3.58
14.73
8.58
1.63
1.38
1.15
0.44
0.15
31.64
38.85
2.77
0.84
7.53
3.23
3.03
0.06
0.05
56.36
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
17.96
5.75
0.00
0.00
0.00
0.00
3.37
1.82
22.43
15.35
0.00
0.00
9.90
3.06
0.00
0.00
6.90
2.18
0.00
0.00
4.40
1.47
0.00
0.00
2.11
0.69
0.00
0.00
0.00
0.00
0.73
47.19
0.24
51.17
66.14
43.30
26.59
22.12
13.69
10.05
3.29
1.17 186.35
615.88
* Retired as a Director on September 30, 2015
^ Retired as a Director on August 26, 2015
@ Appointed as a Director w.e.f October 1, 2015
# Appointed as a Director w.e.f January 29, 2016
132
B. REMUNERATION TO OTHER DIRECTORS
Sl. no.
Particulars of Remuneration
Name of Directors
Crore
Total Amount
1
2
Independent Directors
Fee for attending board/
committee meetings
Commission
Others, please specify
Total (1)
Other Non-Executive Directors
Fee for attending board/
committee meetings
Commission *
Others, please specify
Total (2)
Total (B)=(1+2)
M M
CHITALE
SUBODH
BHARGAVA
M
DAMODARAN
0.065
0.455
0.063
0.555
0.060
0.375
VIKRAM
SINGH
MEHTA
0.050
0.352
SUSHOBHAN
SARKER*
ADIL
ZAINULBHAI
AKHILESH
GUPTA
0.055
0.435
0.045
0.198
0.338
2.370
0.520
0.618
0.435
0.402
0.490
0.243
2.708
0.520
0.618
0.435
0.402
0.055
0.229
0.284
0.284
0.490
0.243
0.055
0.229
0.284
2.992
Crore
Sl. no.
Particulars of Remuneration
Name of Directors
Total Amount
BAHRAM
VAKIL
SWAPAN
DASGUPTA* !
SUNITA
SHARMA*
THOMAS
MATHEW T@
AJAY
SHANKAR#
SUBRMANIAN
SARMA$
NAINA LAL
KIDWAI^
0.060
0.320
0.030
0.205
0.000
0.000
0.110
0.592
0.380
0.235
0.000
0.702
0.045
0.150
0.195
0.195
0.040
0.127
0.167
0.167
0.380
0.235
0.000
0.000
0.000
0.000
0.000
0.085
0.277
0.362
1.064
190.406
677.48
1
2
Independent Directors
Fee for attending board/
committee meetings
Commission
Others, please specify
Total (1)
Other Non-Executive Directors
Fee for attending board/
committee meetings
Commission *
Others, please specify
Total (2)
Total (B)=(1+2)
Total Managerial
Remuneration (A) + (B)
Overall Ceiling as per the Act
0.020
0.067
0.087
0.087
@ Appointed as a Director w.e.f. April 3, 2015
# Appointed as a Director w.e.f. May 30, 2015
$ Appointed as a Director w.e.f. August 19, 2015
^ Appointed as a Director w.e.f March 1, 2016
* Commission is payable to the respective Institutions they represent
! Ceased to be a Director w.e.f May 15, 2016
133
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Particulars of Remuneration
Key Managerial Personnel
CEO
Company
Secretary
(N. Hariharan)
Crore
CFO
Total
Sl.
no.
1
2
3
4
5
Gross salary
(a)
Salary as per provisions
contained in section 17(1) of the
Income-tax Act, 1961
Value of perquisites u/s 17(2)
Income-tax Act, 1961
Profits in lieu of salary under
section 17(3) Income tax Act,
1961
(b)
(c)
Not Applicable
Stock Option
Sweat Equity
Commission
- as % of profit
- others, specify…
Others (Contribution to Provident
Fund & Superannuation Fund)
Total
VII. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:
Type
Section of the
Companies Act
Brief
Description
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTORS
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
134
0.905
0.008
–
–
–
–
0.063
0.976
Not Applicable
0.905
0.008
–
–
–
–
0.063
0.976
Details of
Penalty/
Punishment/
Compounding
fees imposed
Authority [RD/
NCLT/COURT]
Appeal made,
if any (give
Details)
NIL
NIL
NIL
Management Discussion and Analysis 2015-16
Overview of World Economy:
World economic output is
recovering at a slow pace with
the expectations of achieving sub
3% growth in calendar year 2016.
Though emerging economies from
Asia could continue to drive growth,
there is a potential downside risk in
terms of continued slow growth in
China, weak domestic consumption
in Japan, volatile currency
movements and sustained level of
low commodity prices. There is an
uncertainty over the future growth
prospects of commodity driven
economies like Brazil and Russia.
GCC countries are also facing fiscal
weakening from low crude oil
prices.
The world economy is witnessing
subdued corporate profits and
investments, sluggish exports
and manufacturing activities, and
lower commodity prices. Credit
growth is tepid and accommodative
policies adopted by central
bankers have not yet yielded the
desired outcome. Prevailing fragile
business sentiment is also adversely
impacted by geopolitical tensions,
protectionist policies adopted by
some of the countries and climate &
environmental concerns.
Overview of Indian Economy:
Amidst the low global growth
environment, the Indian economy
showed resilience and grew by
7.6% for the year 2015-16, driven
mainly by the service sector.
Agriculture, Forestry and Fishing
sector, which employs more than
50% of labour force of the country
grew by 1.2%. Despite a muted
agricultural growth occasioned by
poor monsoons, India’s domestic
consumption remains strong on the
back of favorable demographics.
India has been a beneficiary of
low oil prices which has helped
to improve the Government’s
fiscal position and has improved
the profitability of PSU oil & gas
marketing companies. Decline in the
oil prices also underpinned lower
Inflation by offsetting higher food
inflation caused by poor monsoon
in the previous year. Consequently,
RBI has reduced interest rates by
75 basis points during 2015-16
as compared to 50 basis points in
2014-15. The INR has depreciated
against the US Dollar by around
6.5% (from a level of 62 to a level
of 66) during 2015-16. FII flows
were net negative in Debt & Equity
markets in 2015-16 echoing the
anticipation of interest rate hikes
by the US Fed. China’s currency
devaluation stance added to
weakness of the INR.
The fall in commodity prices has
also had a negative impact on the
Indian economy in terms of reduced
profitability of metal and mining
companies leading to financial
stress of several businesses. This
has resulted in a curtailment of
fresh capital investments and
some defaults in servicing debt
obligations.
Capital investment spending in
India has been muted. There is a
strong intent from the Government
to push investments and growth.
However, policy implementation is
progressing at a measured pace.
2016-17 appears more promising
mainly due to the expectations
of a good monsoon and revival
of the investment cycle led by
favorable government policies such
as increased budgetary allocations
on infrastructure projects, pushing
investment through cash rich
PSUs, thrust on ‘Make In India’,
increased drive on building a strong
domestic manufacturing base for
Defence equipment, emphasis on
increasing investments in nuclear
power, initiatives to revive weak
state power distribution utilities
through the ‘UDAY’ scheme, focus
on build out of Smart Cities, ‘Power
for All’ programs and robust plans
to increase investments in metro
rails and roads. It is also expected
that the GST Bill will be passed in
parliament in 2016-17.
Business Scenario:
The Company sees good prospects
in the domestic economy with
the thrust on infrastructure
development. The Company
has invested in building up the
capacities over the years and
has also mapped the emerging
opportunities with the internal
capabilities. Increase in the pace of
implementation of various initiatives
by the government and revival
of the investment cycle would be
135
conducive for achieving the growth
aspirations of the Company.
The Company has identified key
focus areas and strategic initiatives
to make the most out of the
upcoming opportunities. Major
thrust areas are enumerated below:
Key performance themes and
focus areas for 2016-17.
• Cost competitiveness through
operational efficiency:
The Company is analysing all
the aspects of its operations
to improve efficiency and
competitiveness on an ongoing
basis. Operational Excellence
programs are underway for
identified areas of cost reduction
and productivity improvements
without compromising on
quality of products and services.
Employees and subcontractors
play a very vital role in Company’s
endeavor on performance
improvements and are well
sensitised, motivated and
connected through a collaborative
approach.
• Working capital reduction:
Working capital requirements
have been on the rise given the
tight liquidity position and tepid
business environment. Special
efforts are being taken to release
cash blocked in working capital.
The aim is to make each project
cash positive and self-funded
during the execution cycle. The
focus will be on faster collections
from the customers.
• Maximise benefits to the
stakeholders through
business value unlocking:
The Company has invested in
building capacities in nuclear
power forgings, shipbuilding as
well as in some business segments
having longer gestation periods
such as power plants, ports and
roads concessions. It also has
created a significant scale in
service businesses in the areas of
financial services and information
technology. All these businesses
have a potential to generate
promising returns as the growth
cycle of Indian economy picks
up. The company is continuously
exploring opportunities to unlock
value from these businesses
to maximise returns to its
stakeholders.
• Project execution within
time schedule and costs: The
Company has a large order book
of close to 2500 billion to
be executed over the next few
years. On-going projects are led
by proficient project managers,
project directors and sponsors,
ensuring timely project execution
within targeted costs. Improved
monitoring of projects under
execution for achieving profitable
growth is one of the major thrust
areas.
136
Infrastructure Business
Terminal 2, Mumbai International Airport - an iconic structure which integrates world-class design, architecture and operational efficiency. L&T has built several
airports in India and in the Middle East.
Infrastructure Business Scenario
- India:
The Indian E&C sector continues to
remain highly pro-cyclical. On an
aggregate level, some improvements
have been witnessed after many
quarters of stagnant or negative
growth however, interest cost
remains high. Government-led
CAPEX has just started to pick
up through disbursement of new
orders. The construction industry
appears to be at the far end of
the recovery curve with delays for
Government investments to trickle
down as revenue.
Going forward, there is a strong
possibility of the CAPEX cycle
recovering within 2-3 quarters.
Competitive Landscape: Many
companies have resorted to the sale
of assets to tide over debt obligations.
Overall, the industry CAPEX upturn
continued to be elusive, given the
existing overcapacity and inability to
invest further. Overall competition
among existing players has become
more intensive.
Companies with strong balance
sheet and execution capabilities are
likely to sail through the current
scenario.
Middle East:
Middle East economies are
posting lower growth figures. The
sustained low and falling oil prices
137
have affected their economies
adversely and continue to pose
a challenging scenario. Almost
all GCC countries are resorting
to fiscal consolidation measures,
trying to diversify the economy
and increase their revenue streams.
With oil fiscal breakeven point for
balance budget for GCC countries
like Saudi Arabia, Oman and UAE
hovering around $90~$100/bbl,
and Qatar and Kuwait between
$50~ $55/bbl, most of the Middle
East countries are raising debt from
domestic and international sources
while preserving their currency peg.
Geopolitical uncertainties continue
to be the worry spot. However,
most of the GCC players including
Qatar, UAE, and Oman continue
to pursue long term infrastructure
development programs which
augers well for the construction
industry.
DLF Mall of India, near Delhi.
Global:
Current trend shows that the
global Construction Industry could
continue to perform modestly. There
have been marked cancellations
of a number of projects in the
Middle East owing to lower oil
revenues. Global contractors are
focusing outside home markets
and consequently flocking to select
growth markets, resulting in fierce
138
competition. MENA order awards
have seen only a moderate pick-up
during Q1 of calendar 2016 Y-o-Y
and some sluggishness remains.
Impact of Digital technologies:
Digital technologies have the
potential to create new business
models, dramatically alter
business processes and improve
operations. While this has been
demonstrated and visible in
many consumer facing sectors,
the opportunities in construction
projects and manufacturing are also
significant.
L&T proposes to implement digital
technology solutions to make
significant improvements in the
key areas of work. The ‘Digital
Group’ has been formed which
will extensively focus on conceiving,
initiating and implementing
digital solutions to facilitate
desired business results. Digital
solutions are being developed
for better project monitoring and
controls by installing sensors and
gateways on all the equipment
deployed at project sites for
tracking and monitoring the
performance. Other major areas
where digital solutions would be
implemented are improvement in
workmen productivity and safety
through tagging and tracking,
use of GPS and RFID for tracking
to optimise logistics and material
consumption, capturing of
real-time data and visuals from
the project sites through the use
of mobile application and modern
geospatial technologies including
LiDAR & UAVs for surveys, analysis
of data pulled in from all the
initiatives into digital engine to
deliver trend, actionable insights
and forecast scenarios. The
Group will continue to develop
breakthrough solutions for
business transformation with the
evolving technologies and business
processes.
BUILDINGS AND
FACTORIES
Overview:
L&T’s Buildings & Factories (B&F)
is a business vertical that has the
requisite expertise to undertake
Engineering, Procurement and
Construction (EPC) of airports, IT
parks, office buildings, institutional
spaces, hospitals, stadiums, hotels,
elite residential buildings, high rise
structures, mass housing complexes,
factory structures, cement plants
and industrial warehouses. The
business is pioneer in offering Total
engineering solutions right from
concept to commissioning across all
the business lines cited above.
The competitive advantages of
the business include dedicated
engineering design centres,
competency cells, advanced
formwork systems, mechanised
project execution, wide network of
consultants and vendors, digitised
project control and a talented pool
of employees.
Business Environment:
Year 2015-16 continued to be
challenging for the construction
industry. Many of the customers
of the business deferred their
investment plans due to the liquidity
crunch and low demand in the
realty sector. In the international
arena, the dip in crude oil prices
had a major impact on investments
in GCC region. The slowdown in
China due to excess inventory has
awards from The Royal Society For
Prevention of Accidents (RoSPA).
Four projects secured awards from
the British Safety Council. Ten
projects secured awards from the
National Safety Council, India.
Two projects secured awards from
the Indian Concrete Institute. Two
projects secured the Construction
Week Smart Project of the Year
award.
Major Orders Secured and Under
Execution:
The business has secured prestigious
projects in almost all their business
lines like IT parks, office buildings,
residential, factories, etc.
Leadership has been maintained
in the construction of IT parks
and office spaces in the country.
Major projects were secured in the
northern and southern parts of
India.
Major orders were secured from
its esteemed customers for the
construction of elite high rise
residential towers in western and
southern India.
Some of the key projects
commissioned by the business
all stakeholders on hazardous
project activities and corresponding
preventive measures. A safety
innovation school was set up to
impart the EHS related training. This
school is the first-of-its-kind by any
construction company in India.
A team of experts has been formed
to study futuristic businesses and
formulate suitable strategies for a
competitive edge.
The projects executed by the
business continued to bag various
awards and recognitions during
2015-16. Four projects secured
The 1600-bed multi-specialty Safdarjung Hospital, Delhi.
impacted the manufacturing sector
in India. Initiatives like ‘Make in
India’ and ‘Housing for All’ have led
to major investment plans. However,
the pace of development has been
far from satisfactory.
Against all odds, Buildings
& Factories has registered a
steady growth and has continued
to maintain its leadership position
in the industry and have also
expanded footprint in the Middle
East to diversify the business
portfolio.
Significant Initiatives:
The business implemented
operational excellence initiatives
across all levels to enhance
profitability, like the introduction
of value engineering techniques
to cut down costs and improve
productivity. Project cycle times
were brought down by embracing
technology and mechanised
execution. The organisation was
strengthened to improve the
operational efficiency.
Safety is imbibed as a ‘way of
life‘ and implemented across all
projects to educate and sensitise
Cognizant Technology Solutions, Chennai.
139
this year are IT facilities and
campuses for IT companies,
international airports at Chandigarh
and Cochin, hospitals and medical
colleges for ESIC, NMC and the
Government of West Bengal, high
rise residential towers in various
parts of the country and cement
plants for Orient and Wonder
Cement.
Outlook:
The GoI has a deep focus
towards improving the country’s
infrastructure and has taken some
good measures for improving the
country’s economy. The business
is upbeat on this scenario and
well positioned to capture the
momentum. A few positive factors
are as follows:
• The realty sector will stimulate
growth in view of easing out of
interest rates, relaxation in FDI
norms and revival of investor
sentiments.
• ‘Housing for all‘ coupled with
rapid urbanisation and a rising
middle class will drive demand for
affordable houses.
• The ‘Make in India‘ initiative
is expected to bolster the
manufacturing industry.
• Rising healthcare quality and
awareness are expected to
generate more investments.
• Strong IT & BPO industry growth
will drive commercial space
requirements.
In the international arena, though
falling oil prices may have some
impact on the Middle East economy,
the business is hopeful that
infrastructure spending will continue
140
Oberoi Sky City at Borivali, Mumbai. L&T builds elite, mass and affordable housing complexes
on a turnkey basis.
for stadiums, metro systems and
healthcare related projects.
The business is poised for sustained
growth in the forthcoming years
against the backdrop of a reviving
economy, an improving business
climate, a healthy order book, a
wide customer network, a strong
organisational setup, an efficient
supply chain management, requisite
resources and a skilled workforce.
Larsen & Toubro Oman LLC (LTO):
Subsidiary Company
LTO, set up in collaboration with
Zubair Corporation LLC, has been
providing engineering, construction
and contracting services for nearly
a decade in the Sultanate of Oman.
The Company has an excellent track
record in civil projects and continues
to enjoy customer preference in the
country. L&T, through its wholly-
owned subsidiary L&T International
FZE, holds a 65% stake in the
Company.
Against stiff competition from
international players, LTO
successfully secured a major airport
project.
The Oil price impact has limited
the investment plans in the
country. LTO is witnessing limited
business prospects in segments like
hospitals and commercial buildings.
However, considering company’s
past performance, it is confident of
maintaining the business portfolio in
the region.
HEAVY CIVIL
INFRASTRUCTURE
Overview:
Heavy Civil Infrastructure business
undertakes Design, Engineering,
and Construction of projects in
the Metro, Nuclear, Hydel, Ports,
Special Bridges, Tunnels and
Defence segments. The goal of
the business is to become a total
infrastructure solutions provider, not
just in India, but overseas as well.
The in-house design strength and
unique Construction Methodology
Cell gives the business an edge over
its competitors and help it serve the
customers needs from concept to
commissioning.
infrastructure industry did not show
robust growth due to decline in oil
prices. Moreover, GCC is promoting
participation of the private sector
via PPPs to compensate for the
deficit. Bhutan and Bangladesh have
proved promising for the Hydro
Power and Special Bridge segments.
Metro Rail and Defence Sectors:
Metro rail projects in India are
booming rapidly, especially in Tier
2 cities, but the environment is
becoming more challenging due to
commoditisation of the elevated
metro projects. This has influenced
the strategic outlook towards the
business resulting in enhanced
focus towards underground metro
projects.
The Chennai Elevated Metro, the
Delhi – Badarpur to Faridabad
Corridor and the Hyderabad Metro
Stage 2 have been successfully
handed over.
Riyadh and Doha Metro projects
which are being operated with
a JV structure are progressing
reasonably.
The Indian Defence industry is a
strategically important sector. The
current profile of infrastructure
L&T’s construction expertise has been offered for the elevated and underground sections of
the Chennai Metro, including ballastless track work and a massive depot.
One of the goals of the business
as part of the new medium term
business plan is to revitalise
and reinforce core construction
operations. Being adaptable
to meet market shifts, the
business has established a sound
construction work system to raise
productivity levels. The business
plans to leverage the development
of an automated system in the
construction sector. This will
reinforce the competitive advantage
of the business and expand the
portfolio.
In the International market – more
particularly in the Middle East – the
Business Environment:
The current year witnessed a mixed
performance by the business.
Revenue and order book remained
strong regardless of a low-spirited
market. Margins have improved
overall, driven by strong cost
cutting, restructuring and efficiency
improvement initiatives.
Despite the GoI’s attempts to boost
growth through several measures
in the infrastructure segment,
there was a slump faced primarily
due to distressed demand from
the infrastructure sector. However,
major orders materialised in the
third and fourth quarter with the
GoI’s boost on foreign funding.
The business increased its market
share in both the Metros and Special
Bridges segments. The business
grew faster than its competitors
in the sector. A major order from
the Bihar State Road Development
Corporation Limited (BSRDCL) for
the Design & Construction of a
Greenfield Six-Lane extra-dosed
cable bridge over the river Ganga
near Kachchi Dargah (Bihar) was a
crowning achievement.
Tunnel-boring on the Doha Metro.
Tunnel on the Beawar-Pali-Pindwara road
project.
141
held by the Indian Armed Forces
suggests the Government needs
to make serious efforts towards
upgrading defence resources, by
the modernisation, upgradation and
maintenance of the existing setup
and that has helped the business to
see immense opportunities. With
massive investments planned by the
Ministry of Defence, opportunities
are abundant and the business
is well placed and well equipped
to offer turnkey design and build
proposals for the entire Defence
sector. The business has recently
bagged an order for a project to
resurface and extend the Air force
runway at Hyderabad.
Nuclear and Special Bridges:
India is fast-tracking its shift
towards nuclear power. The
Government of India has planned to
source 25 percent of its electricity
from nuclear reactors by 2050. The
nuclear business of the company
has seen some potential orders
- IGCAR for the construction of a
Fast Reactor Fuel Cycle Facility at
Kalpakkam.
There have been developments
on the tie-ups of the business
with global players since India’s
nuclear power agency has cleared
a long-delayed nuclear policy for
reactors, marking a significant leap
in the country’s ambitious plans
to become one of the world’s top
nuclear power generators.
The bridge over the river Ganga in
Patna, Bihar, once constructed, will
be the longest extra-dosed bridge
in India. The business has entered
the international market by winning
the contract for the construction
of the Rupsha Bridge in Khulna,
Bangladesh.
In the coming years, this segment
is poised for further growth. Many
bridge projects are expected across
India.
Hydel, Ports & Tunnels sector:
Hydel: Domestic Hydro projects
are stuck at various levels due
to pending clearances and
local protests. However, some
opportunities pertaining to
construction of barrages are
expected in Telangana. A conducive
working environment is available at
Bhutan where existing projects are
progressing well. In Nepal, public
sector undertakings and private
players are showing interest for the
development of Hydro Projects.
Tunnels: The GoI is focusing on
developing strategic and all weather
tunnels. Opportunities may also
arise for Underground Storage
Caverns for crude oil storage and
“Under Sea Tunnels”. Opportunities
also exist in the Middle East region
but low oil prices may delay these
projects.
Ports: The GoI has launched the
‘Sagar Mala Project‘ initiative and
is focusing on the upgradation
and development of new ports.
Opportunities are expected for
Marine Infrastructure projects
involving Dry-docks, Marine intake
structures and Defence Naval Base
projects as well.
The majestic 9.76-km Kachi Dargah Bridge across the mighty Ganga
in Bihar will be India’s longest extradosed bridge.
The barrage being built on the Kharkai river in Eastern India.
142
certification courses for Project
Heads, NEBOSH certification
courses for Project EHS In-charges
and online EHS certification
courses for all technical
employees.
• EHS Risk Management is
an integral part of the EHS
management system and the
business has revamped the
IMS procedure and introduced
monthly EHS Risk Management
audits to facilitate and monitor
implementation across all its
projects.
• Precast elements lifting strategy
was launched with inputs
from all stakeholders and
training workshops were held
at relevant projects to facilitate
implementation.
Many EHS awards and honours
are received at different levels
and categories from national
and internationally renowned
organisations.
Workmen Management Centre:
During 2015-16, the business
trained 8045 subcontractors’
workmen at various sites through
‘On Job Training’ (OJT) programs
on form work, bar bending and
masonry by experienced trainers to
enhance their skill level for speedy
and effective execution of jobs while
emphasising on safety, quality and
productivity.
Quality Department: The business
aims for excellence in quality,
increasing the satisfaction of
customers and other stakeholders
through effective goal deployment,
cost reduction and process
improvements.
143
L&T is building the Kakrapar Nuclear Power Plant in Gujarat - the latest in its 5-decade
association with India’s nuclear power programme.
Significant Initiatives
During the year, IC has taken several
initiatives to improve operational
efficiency as a prime focus as under:
Engineering Design and
Research Centre: On the
Engineering front, the business
undertook key initiatives towards
digitisation, automation and
adoption of modular techniques for
construction. Building Information
Modelling (BIM) and design
automation are being implemented
across business segments to
provide optimal solutions. Modular
construction techniques were
successfully implemented in Nuclear
Power Plant construction resulting
in significant time optimisation.
Risk Management: The business
emphasises on achieving the
corporate strategic objectives by
following best practices in Risk
Management.
A paradigm shift has occurred in
the way the business views risk
management and the trend has
moved towards a holistic view of
risk management. The business
has developed an efficient Conflict
Management System which
expedites resolution of issues
with clients. The business has also
initiated an analysis of mitigated
activities depending on project
specifics and disputes. The business
believes in the re-evaluation of
the project status when significant
changes occur (scope, delivery
method and schedule).
Environment Health & Safety
(EHS): Striving to achieve a goal
of ‘zero harm‘, the business has
launched the Corporate EHS
Strategic Plan 2015-16 with
key EHS deliverables that have
been implemented across all its
operations. As part of the EHS
Strategy, the following significant
initiatives were taken up during
2015-16:
• Successful recertification of EHS
Integrated Management Systems
conforming to international
standards: OHSAS 18001 & ISO
14001.
• Key EHS training initiatives
include IOSH Managing Safely
The business has started the Quality
Management System transition to
ISO 9001: 2015, which allows the
implementation of best practices
in the industry. Monthly direct
customer feedback on product
quality from projects has been its
praxis.
A new product of polycarbonate-
based admixture for water
conservation in concreting, in-house
resistance heating techniques for
preheating of pipe joints of massive
sizes and the use of semiautomatic
welding processes in nuclear
projects such as GMAW (Gas Metal
Arc Welding) were added into its
standard practices.
Training is a necessary parameter
for growth and the business has
prioritised the training of its staff on
the latest QMS. Also, the setting up
of an in-house facility for welder’s
qualification instead of testing
by external providers has been
initiated.
People Power: Growth in
operations is helping the business
to grow people internally and
moving towards a role-based
organisation. All talent investments
are focused on increasing
productivity, efficiencies, building
a robust leadership pipeline and
an orientation towards mega
projects. The Frontline Supervisor
Trainees program has taken root
and continues to add value to the
business.
The Ganga riverfront project in Bihar.
future-ready business. 65 employees
have been identified as part of
the leadership building initiative
for tackling mega projects. Year
2016-17 will be the Year of the
People with special focus on
engagement and building the
leadership pipeline.
Outlook
The international market has
truncated, particularly in the Middle
East, which continues to face its
adverse impact because of declining
oil prices. Unless the GCC countries
revamp their business strategies,
the construction sector might do a
volte-face on its growth plan.
On the domestic front, the Union
Budget 2016 indicated a positive
outlook towards the Infrastructure
sector. The budget included the
formation of a National Investment
and Infrastructure Fund with an
annual allocation of USD 3.25 bn.
The Organisation Transformation
initiative through OD Labs continues
and till date, the business has
covered around 500 employees.
The business has also started
the Institution-building initiative
‘THIRD-i‘, which aims to build a
The Indian nuclear market has
picked up pace both in the
implementation of Indigenous
PHWR and imported LWR
programs. The special bridges
market continues to boom. Good
business prospects are seen in
144
the Western and Eastern parts
of India. The elevated metros
market has become commoditised.
Though the business sees ample
opportunities in Tier-II cities, its
participation will be very selective
on large size orders. Underground
Metros will be the main playing
field of the business. The thrust
of the Government of India on
Defence spending continues
and there is an expectation that
prospects will materialise. The
prospects of hydropower market
on the domestic front continues to
be bleak with growing concerns
of environmental issues, land
acquisition problems and local
agitations. The underground space
is going to be the key market for
the business in the years to come.
The business expects increased
domestic investments for “All
Weather Tunnels”.
The business is focusing on
increased diversity in man power.
Diversity is the key to increased
involvement, commitment, and a
better understanding of the needs
of clients and society.
The business is confident of
achieving the revenue targets for
Bulk Terminal Ltd, plastic cut-off
wall for Polavaram dam, Andhra
Pradesh (secured by Bauer-L&T Geo
JV), LNG marine facilities at Ennore
for IOCL and General Cargo berth II
at Ennore, Tamilnadu.
International Infrastructure. It has
sustained growth over the past
years by securing some prestigious
orders in the Roads & Railways
sectors despite a slightly sluggish
domestic economic growth.
2016-17 backed by a strong order
book. The business is resilient on
efficiency and cost control which
remain key drivers of profit and
performance.
Major Subsidiary Company
L&T Geostructure LLP (LTGS):
L&T GeoStructure LLP (LTGS) is a
subsidiary entity - a Joint Venture
with Transworld Infraprojects
Private Limited. The Company
has a strong and professional
foundation specialist team
with the knowledge of design,
equipment and methods to execute
and supervise sophisticated works.
L&T Geostructure was formed
in 2012-13 to focus on marine
foundations, deep foundation-
supported bridges, deep shafts and
other ground-related business. LTGS
also has expertise in the areas of
large diameter piling, diaphragm
walls, cut-off walls, secant pile
walls, sheet piles, intake structures,
ground improvement, hard-rock
boring and water retaining
structures.
Major orders secured in 2015-16 by
LTGS include Multi-cargo berth at
Ennore for Chettinad International
LTGS has achieved 4.5 million
safe man-hours during 2015-16.
The business has executed
first-of-its-kind multi chamber
cellular intake well for the river
linking using diaphragm wall
technology in Pattisam project
in Andhra Pradesh. Successful
installation of 80 T reinforcement
cage was done for a diaphragm
wall which is first-of-its-kind in the
country. The business also executed
shore protection works for a length
of 2.2 Km using sheet piles for the
river Tapti.
TRANSPORTATION
INFRASTRUCTURE
Overview:
Transportation Infrastructure
business comprises Roads,
Runways (Airside Infrastructure) &
Elevated Corridors (RREC), Railways
Construction, Railways Systems &
The business has vast experience in
Project Management, Engineering
Design and Construction
Management which gives it
a competitive edge over its
competitors. The business has a
pan India presence and also in GCC
countries. It has multiple projects,
Engineering Design Centres in
Mumbai, Faridabad and Chennai
and an Offshore Engineering Centre
in Mumbai to cater to international
projects besides Area Offices in
India/GCC countries. In addition,
it has a Competency Development
centre at Kanchipuram, and also
undertakes training of workmen at
CSTI, Ahmedabad.
Business environment:
The Road business (RREC) has been
successful in expanding its customer
base during the year by securing
various orders for the construction
of highways.
Major orders received by the road
business are:
• From Kanyakumari to Mukkola
(length 87 Km).
• 4-Lane road from Yadgiri to
Warangal (length 96 Km).
• Addahole to Bantawal road
project (length 63 Km).
• Development of road
infrastructure for Dholera smart
city.
145
Artist’s impression of the Al Wakrah Bypass Road in Qatar.
The Railway Business has been
awarded a major order by DFCCIL
(Dedicated Freight Corridor
Corporation of India Limited) for
laying of tracks from Iqbalgarh to
Vadodara, a total of 725 TKm (CTP
3R project) and electrification of
897 Tkm from Vadodara to JNPT,
Mumbai (EMP 16 project). The
Railways business has also secured
a major order from DFCCIL for
signalling and telecommunications
works from Vadodara to JNPT (STP
17) for a length of 897 Tkm.
On International front, the Railway
Business Group has secured the first
external order of Riyadh Metro Line
1&2 Track works for 152 TKm.
The projects successfully completed
during the year include Hosur-
Krishnagiri Road Project (60 Km,
6 Lane Highway in Tamil Nadu),
Kandla-Mundra Road Project (71
Km, 4 Lane highway in Gujarat),
Samakhiali-Gandhidham Road
Project (56 Km, 6 Lane Highway in
Gujarat), Manmad-Rahuri - Daund
Railway Electrification Project (334
TKm), Rajpura composite works
Project (48 TKm), DMRC CE07 Line
2 & 6 OHE (37 Km), KMDA 4 ROBs
and Flyover (1.1 Km) in Kolkata and
Chennai Metro Stage 1 Track works
(38 Km).
The new track construction machine is capable of laying 2 km of tracks per day, setting a
benchmark in high-speed rail construction on the Western Dedicated Freight Corridor project.
During the year, the business
secured 8 International Safety
awards - 2 RoSPA Gold, 2 RoSPA
Silver, 4 British Safety Council
awards and 2 prestigious safety
awards from National Safety Council
(NSC), India.
Significant Initiatives:
The thrust on operational excellence
continued through digitalisation
of equipment for quality
improvement, timely completion,
cost optimisation, efficient resource
utilisation and enhancement of
safety measures by adopting
improved engineering models like
Inclinometers, Compactometers,
GPS system and LIDAR surveys etc.
On the international front, the
business is exploring new markets
such as East Africa and Kuwait
through business tie-ups with
local partners. Special focus is
being given to the selection of
international consortium partners to
be pre-qualified for mega projects in
the GCC countries. Various strategic
initiatives have been undertaken
in the international business to
strengthen procurement, asset
management & cost control teams
to provide immediate onshore
support to projects.
Outlook:
With signs of a recovery in the
Roads sector, new projects are being
awarded. On the domestic front, the
prospects for pipeline looks bright.
The Government has given a thrust
to accelerate the development
of infrastructure. Lower oil prices
have fulled the growth of the
domestic market. The rate of road
construction has been targeted to
increase from the current rate of
A flyover built by L&T.
Metro electrification & signaling project.
146
17 Km per day currently to 40 Km
per day and the Government has
plans of awarding 1,00,000 Km of
National Highways which is a 20%
rise over last year.
The Ministry of Road Transport &
Highways has taken up a detailed
review to improve road connectivity
to coastal / border areas, backward
areas, religious places and tourist
places under ‘Bharat Mala’ program.
In addition, there are Connectivity
Improvement Programs for Char-
Dham (Kedarnath, Badrinath,
Yamunothri and Gangothri in
Uttarakhand). Prospects of Navi
Mumbai, MoPA Goa and Dholera
are also on the horizon.
In the Railway Budget, the capital
expenditure for 2016-17 has been
pegged at 1.21 Lakh crore.
The Railway Budget has announced
fast tracking of projects like track
laying (new/doubling/tripling
projects), Railway Electrification
projects, gauge conversion, last
miles connectivity projects and
emphasis on decongesting existing
routes mainly targeting port
connectivity. Commissioning of the
2,600 Km of Broad Gauge track and
2,000 Km of Railway Electrification
is also proposed in 2016-17. Three
more new freight corridors (North
–South, East – West and East coast)
totalling about 5,700 Km with an
estimated value of 2.7 Lakh crore
have been proposed in the Railway
Budget.
Metro Rail Projects in Tier 2
cities and high speed railway
lines between Ahmedabad and
Mumbai will provide more business
opportunities for this segment.
On the International front, drop
in oil prices has affected the
construction business. However, it is
expected that Qatar and Kuwait will
continue to invest in infrastructure
development and GCC will invest
in rail infrastructure such as long
distance rail projects.
POWER TRANSMISSION
& DISTRIBUTION
Overview:
L&T’s Power Transmission and
Distribution business is a leading
EPC player in the field of Power
Transmission and Distribution
and Solar businesses, offering
integrated solutions and end-to-end
services ranging from design,
manufacturing, supply, installation
and commissioning of Transmission
Lines, Substations, Underground
Cable Networks (both Power and
Control), Distribution Networks,
Infrastructure Electric Projects, Solar
PV plants in both domestic and
international markets.
Extra High Voltage Substation
Systems & Power Distribution
Business Unit focuses on providing
turnkey solutions for Extra High
Voltage Air Insulated / Gas Insulated
Substations for Utilities and Power
Plants, EHV Cable Networks, and
Utility Power Distribution and
Power Quality Improvement works,
complete Electrical, Instrumentation
& Communication (EI&C) solutions
for various infrastructure projects
such as airports, metros, OFC
networks, etc.
Transmission Line business offers
turnkey EPC solutions in Overhead
lines for Power Evacuation
and Transmission, bolstered
by its state-of-the-art tower
manufacturing units at Puducherry
and Pithampur supplying over 1.3
lakh tones of tower components
annually. Further capacity
enhancement is envisaged at
Kanchipuram which is expected to
be operationalised by mid of 2016-
17. The Testing and Research station
at Kanchipuram accredited by NABL
is one of the largest in Asia and
is also amongst renowned testing
centre in the world. (NABL: National
Accreditation Board for Testing and
Calibration Laboratories)
Solar business provides single point
EPC turnkey solution for solar PV
related projects. Experience spans
across all terrains (sandy, rocky,
etc.), all technologies (Thin Film
Frameless and Framed, Crystalline,
Tracker, etc.) and various contract
structures including Turnkey EPC,
Integrated Lump sum Turnkey
(iLSTK) and Balance of Systems
(BoS) Contracts. The business unit
provides the Optimised Power Plant
Design and are channel partners of
MNRE with the highest Rating in the
System Integrator and Renewable
Energy Service Company (RESCO)
categories.
The international units of the
business in Middle East, Africa and
ASEAN offer complete solutions in
the field of Power Transmission and
Distribution including High Voltage
Substations, Power Transmission
Lines, Extra High Voltage Cabling
and Electrical, Instrumentation
and Controls (EI&C) works for
Infrastructure projects such as
Airports, Oil & Gas Industries etc. in
UAE, Qatar, Kuwait, Oman, Saudi
Arabia, Bahrain, Algeria, Kenya,
Ethiopia, Malaysia and Thailand.
147
Business Environment:
In 2015-16, the distribution sector
in India maintained the momentum
it gained during the past two years
backed by several governmental
initiatives. Supported by central
funding agencies, state utilities have
laid emphasis on strengthening their
respective distribution networks for
better efficiency, accountability and
management. The business did well
to capitalise on these opportunities
and was successful in maintaining
its leadership position.
The EHV substation related
opportunities in 400kV & 765kV
GIS/AIS segments were steady as
central and select state utilities were
concentrating on Power System
Strengthening Schemes to meet
their demands. Though there were
positive signs on the policy front,
the general lack of investments in
conventional power generation and
industry segments continued.
The interest shown by major
players in transmission corridors
awarded through the Tariff based
Competitive Bidding (TBCB) process
marks the advent of changing
clientele from utility-based to
investor-based. State Utilities are
increasingly concentrating on
strengthening the transmission
network aided by funding from
multilateral agencies.
Transmission line projects have
been executed for the Central
Transmission Utilities like PGCIL,
NHPC, etc. and for various State
Transmission Utilities like those in
Uttar Pradesh, Chhattisgarh, West
Bengal, Punjab, Tamil Nadu, etc.
The business has dedicated and
experienced construction teams to
148
India’s first 1200 kV Air-insulated Substation at Bina in Madhya Pradesh.
take up projects at various voltage
levels and is presently executing
various projects at 765kV AC,
400kV AC & 800kV HVDC levels
across the country.
Sub-Saharan region, with the
business establishing its presence in
Algeria, Kenya, Malawi and Ethiopia
and selectively pursuing identified
focus countries.
In the Middle East, though the
macro economic and political
scenarios were mixed during
2015-16, the business witnessed
significant investments aided by
FIFA 2022 related investments in
Qatar, Expo 2020 related plans in
UAE and stable T&D investment
plans by Kuwait and Oman. Key
focus on Saudi Arabia has resulted
in substantial growth for its T&D
business as its central power
utility has gone ahead with its
vast expansion plans so as to meet
its demand forecast. Spend cuts
induced by the oil price drop and
continuing unrest in neighbouring
regions caused a sense of anxiety in
the business climate. However, the
business secured 51 substations,
633 Km of overhead lines and
624 Km of cabling projects in the
year.
The African market has started
opening up in northern and
The efforts by the business in
the ASEAN market for T&D
business yielded results providing
breakthrough orders in Malaysia
and Thailand. The ASEAN market is
steadily opening up opportunities
for the business with new power
generation and evacuation schemes
to meet the electricity demands in
the region.
The large scale investments made
in improving the T&D network in
Odisha providing opportunities
for major orders for the domestic
segment of the business. It could
secure several packages in different
phases of the Odisha Distribution
System strengthening project
related works. The urban and rural
electrification orders from Uttar
Pradesh, West Bengal and Odisha
under the erstwhile Restructured
Accelerated Power Development
and Reforms Program (RAPDRP) and
Rajiv Gandhi Grameen Vidyutikaran
Yojna (RGGVY) schemes too are
noteworthy. Apart from securing
the 765kV Aligarh GIS order, the
business also secured a STATCOM
order which is a breakthrough
project in terms of technology.
In the Transmission Line business,
major orders have been secured
from the private sector in
Chattisgarh and Telangana regions.
Another major order from KPTCL
for the 400kV D/C Quad line in the
Bellary region also involves design
and testing of towers. An order has
been secured from the Tamil Nadu
Transmission Corporation Limited
(TANTRANSCO) for a 107Km long
400kV D/C Quad line from Kamudhi
to Karaikudi. The Kanchipuram
Testing centre has been booking
orders from reputed global
customers like Dominion Virginia
Power from USA, Rohas from
Malaysia, etc. Having secured orders
from Power Grid Corporation of
India Limited (PGCIL) and the state
utilities of Bihar, Madhya Pradesh
and West Bengal, the business
has emerged as one of the largest
market share holders in 2015-16.
The Middle East business sustained
its winning streak by securing major
EHV GI substation orders in Qatar
including 3 packages from its key
customer, KAHRAMAA. Another
significant order was for design
and build of 5 substations with
associated cabling from Lusail. The
business has also secured several
Substation and Transmission Line
projects at the 132kV level in Saudi
Arabia. EHV GIS orders from private
customers were secured in UAE.
The business continues to make
good strides in its Africa initiative.
The business received two major
substation orders in the East African
market: one for constructing a
400kV AI Substation (AIS) in Addis
Ababa, the capital city of Ethiopia
from Ethiopian Electric Power and
the other for a 400kV Substation at
Lilongwe in Malawi from Millenium
Challenge Account, an organisation
funded by US Government.
There were breakthroughs in
the ASEAN market through four
major orders. In Malaysia, a 500kV
Transmission Line order from Tenaga
Nasional Berhad (TNB) and two
275kV GI & AI substations from
Sarawak Energy Berhad (SEB) were
secured. In Thailand, a 500kV
Transmission Line order from
Electricity Generating Authority of
Thailand (EGAT) was received.
The business is proud to have
been given an opportunity to
light up thousands of households
in economically backward areas
and electrify hundreds of villages.
In a large number of towns, it
has improved the power quality
230 kV double-circuit transmission line at Abu Ali, Saudi Arabia. L&T is the industry leader in turnkey construction of power transmission and
distribution systems in India and the Middle East.
149
One of the many 400 kV Gas-insulated Substations installed by L&T.
and significantly reduced AT&C
losses through distribution reform
projects. The key substation
projects commissioned include
major EHV substations viz. 765kV
GIS at Varanasi, 400kV GIS at
Nagapattinam and Narendra for
PGCIL; 400 kV AIS at Karamadai
and Karavalur for TANTRANSCO;
220kV GIS for HPPTCL.
In the Transmission Line business,
a major portion of India’s first
+/-800kV HVDC corridor project
viz. 800kV HVDC TL from
Biswanath Chariyali to Tangla was
commissioned. 400 kV D/C RAPP
- Sujalpur Transmission Line for
Sterlite Power Grid Ventures Limited
(202Km) was commissioned well
ahead of schedule. Other projects
commissioned include 765kV
Gwalior to Jaipur Transmission Line
(TL) of PGCIL (128Kms), 400kV
D/C (Quad) Barh - Gorakhpur TL of
PGCIL (178Km), 400kV D/C (Quad)
Kurukshetra – Jalandhar TL of
150
PGCIL (133Km), 400kV D/C Kutta-
Kozhikode TL of PGCIL (99Km)
over an extremely hilly and difficult
terrain, 220kV D/C Varahi - Kavoor
TL of PGCIL (117Km), 220kV Gadag-
Bagalkot TL of KPTCL (102Km)
and 220 kV & 132kV Lines for
MPPTCL (225Km). The TLTRS facility
at Kanchipuram achieved a major
milestone by successfully testing the
Saudi Electricity Company’s tower
measuring 101.3m high, the tallest
tower ever to be tested.
The Solar business commissioned
200 MWp – a rare feat to be
accomplished by an EPC in a year. It
commissioned India’s largest tracker
based solar PV plant in Tamil Nadu.
In the International market, the
Middle East business commissioned
18 substations, 2 cable projects
and an Overhead Transmission Line.
Having qualified for the highest
voltage levels in its lines of business,
it also added five new customers.
Significant Initiatives:
Having identified Digitalisation as
a key enabler, the business rolled
out mobility device based project
monitoring tools in its Saudi Arabia
projects. Several operational
excellence initiatives in the areas
of on-time delivery, profitability
enhancement, effectiveness checks
of process implementation, working
capital management and risk
management were pursued. The
domestic back office for engineering
and design to cater to international
projects has been strengthened.
A new Transmission Line Tower
manufacturing facility is also
proposed.
To enhance safety in its operations,
the initiatives undertaken include
upgrading Safe Operating
Procedures (SOPs) for Transmission
Lines, EHV Substations and
Distribution projects to reflect
changing work methods and
mechanisation, adoption of Sagging
Power Transmission & Distribution
business. The improving financial
health of State Utilities thanks
to the Ujwal DISCOM Assurance
Yojana will mean increased
distribution opportunities through
Integrated Power Development
Scheme (IPDS) and Deen Dayal
Upadhyaya Gram Jyoti Yojana
(DDUGJY) schemes. To reduce AT&C
losses in general and especially
in cyclone affected areas, there
is continued focus on converting
overhead lines to underground
cables. Further, the business expects
continued investments in the Extra
High Voltage substation segment
from PGCIL and select state utilities
especially in 765kV & 400 kV levels
with thrust on GIS. Some of the
states are planning EHV cable links
too. Power quality improvement
projects such as STATCOM, new
clientele out of TBCB players,
state utilities strengthening their
networks with funding from
multilateral funding agencies etc.
are expected to provide much
needed impetus.
However, GoI’s push towards
mobilisation of major equipment
and material for distribution projects
in a centralised manner may
significantly reduce the package size
available for the EPCs and increase
the physical scatter of work scope
for a given package size.
In the Transmission Business, while
the state and central utilities will
continue to award routine packages
for grid strengthening, major
transmission packages shall also
be witnessed through Tariff based
Competitive Bidding.
While intensified competition,
strategic median packaging
151
India’s first 765 kV Gas-insulated Substation, at Pune.
Bridge (Stringing Working Platform)
technique and the use of motorised
winch machines in place of tractors,
in final sag activities and enhanced
training on Behavior-based Safety,
Safety Audit and Training the
trainers.
The Solar business rolled out tracker
technology on a large scale in one
of its projects. It also tested other
technological advancements such
as Seasonal Tilt technology and E-W
technology.
As part of its internationalisation
strategy to expand into key African
and ASEAN economies, the business
has strengthened its talent base to
execute ongoing jobs, vigorously
pursuing emerging potential and
creating corporate brand awareness
and preference. The business
intends to develop long-term
relationships with its customers
and fosters strategic partnerships
and alliances with key vendors and
OEMs.
Such initiatives promptly earned
awards and recognitions for the
business during the year. These
include:
• Utkrishtata Puraskar award from
PGCIL.
• Earth Care Award for Innovations
in Climate change from JSW - TOI.
• Plaque of Honor for successful
completion and appreciation
certificate for implementation
of safety norms from Bengal
Aerotropolis Projects Limited
(BAPL).
• Appreciation Certificate for
quality from Karnataka Power
Transmission Corporation Limited
(KPTCL).
• Best Infrastructure Project of the
Year Award from Dossier Awards
Oman 2015.
• RoSPA Safety Awards for 9
projects.
• British Safety Council Awards for
6 projects.
Outlook:
The focus of the Central
government on visible results in
key programs such as ‘Electricity
for All’, ‘Make in India’, etc.,
augur well for the growth for
and reverse auction in PGCIL
projects may become a dampener,
Transmission Lines for solar
parks and lift irrigation schemes,
reconductoring packages and multi
circuit lines with High Transmission
Low Sag (HTLS) conductors
are expected to provide new
opportunities. Statutory changes in
land acquisition will have an impact
on the Right of Way clearances
in transmission line projects.
Commodity prices having bottomed
out late in 2015-16, the emerging
upward trend may exert pressure on
costs.
With its experience and expertise,
the business is in an ideal position
to exploit opportunities in both
transmission and distribution.
The business is poised to pursue
opportune prospects in Solar PV
plants in the backdrop of GWs of
planned solar capacity addition,
solar parks being created by states
like Telangana and Karnataka,
favourable policy changes through
Renewable Energy Act, etc.
In the Middle East, the business is
cautiously optimistic in its outlook.
The slow recovery of the oil price is
not expected to hamper investments
in the T&D sector though there
may be policy measures like
taxation and currency de-pegging.
Infrastructure development will
continue as part of diversifying the
economy and aided by events like
FIFA 2022. GCC grid formation,
upgradation to higher voltage
levels, integration of renewable
energy sources to the existing
power grid and interconnections
of transmission networks are
expected to fuel growth in
power distribution throughout
the Middle East. New investment
152
opportunities may unfold with
Aramco’s stock divestment plans.
Though the de-subsidising of oil
prices may increase the input costs
in medium term, such expectation
hastens decision making on project
awards to take advantage of
lower commodity prices. While
competition from European players
may intensify, the established
credentials of the business in terms
of prequalification and project
delivery will help maintain its
leadership position.
Africa’s economic growth has
been impressive and is predicted
to remain robust. To sustain and
support high growth rates expected
for sub-Saharan Africa through
economic diversification and
industrial development, closing the
current gap in power infrastructure
will be crucial. Regional integration,
such as power pools, system
strengthening projects and
promotion of renewable generation
could shape the energy landscape in
sub-Saharan Africa. There are visible
commitments from Governments
to expand installation capacity and
increase electrification access rates
substantially. The eagerness from
multilateral funding institutions to
sponsor infrastructure projects either
directly through utilities or through
infrastructure developers bodes
well. The business has established
its presence in some of the key
growth economies of Africa and is
currently executing Transmission and
Distribution projects. The business is
concentrating on key economies of
Africa that have a clear road map to
build Substations and Transmission
Lines to meet increasing demand.
Power Infrastructure is being
ramped up by the ASEAN countries
driven by growth prospects
attributable to regional economic
integration and strategic location.
The rising power demand paves
the way for significant investments
in grid interconnections, grid
development and strengthening
in countries such as Malaysia,
Thailand, Myanmar and Indonesia.
The overall outlook for the PT&D
sector remains promising on both
the domestic and international
fronts. The business looks forward
to consolidate its position in
established markets and gain
significantly in new growth areas;
ably supported by its initiatives on
cost leadership and smart delivery.
L&T’s rural electrification expertise has brought electricity to over 24,000 Indian villages.
L&T’s capability in executing projects for power distribution includes switchyards.
Major Subsidiary Company:
Larsen & Toubro Oman LLC (LTO)
LTO, set up in collaboration with
Muscat Trading Company (Zubair
Corporation Group), provides
engineering, construction and
contracting services in the Sultanate
of Oman. LTO made its maiden
venture into Oman in 1994 and
has completed 22 years, emerging
as one of the leading construction
companies. During the past year,
the Company managed to bag a
slew of projects including a major
400kV cabling and OHL project and
maintained a healthy order inflow.
The business expects a stable
political and economic scenario in
Oman with growing opportunities in
the T&D segment.
Larsen & Toubro Saudi Arabia
LLC (LTSA)
LTSA is a wholly-owned subsidiary
providing engineering, construction
and contracting services in the
sphere of T&D in the Kingdom of
Saudi Arabia. During the past year,
the Company had secured orders
for a sizeable number of projects
involving 15 Substations and 2
Overhead Lines from SEC.
With a stable political environment
and the continuing need for
strengthening of Transmission
& Distribution network, LTSA is
well poised to garner sizeable
opportunities in the coming year.
WATER & EFFLUENT
TREATMENT
Overview:
The Water & Effluent Treatment
(WET) business caters to turnkey
infrastructure projects including
water supply and distribution,
desalination plants, water
management systems, wastewater
networks, water and wastewater
treatment plants, industrial and
large water systems, lift irrigation
and canal rehabilitation.
Over 20 million people in India
have benefited from L&T’s water
infrastructure projects. With
an experience of constructing
over 51,000 Kms of water and
wastewater pipeline networks and
more than 4,000 MLD of water,
wastewater and effluent treatment
plants, the business is India’s largest
water infrastructure organisation.
Business Environment:
The per capita water availability in
the country is rapidly decreasing
due to increase in population and
consumption.
The GoI has plans to prevent the
contamination of surface water
bodies by stopping the untreated
wastewater flowing into it. It also
plans to adopt modern irrigation
techniques so that the dependency
on monsoon can be reduced.
Industries are planning to recycle
and reuse their effluents by
adopting advanced treatment
153
Water pre-treatment plant for a power plant in Sagardighi, West Bengal.
technologies thereby reducing
the consumption of fresh water
requirement for their day to day
processes.
Projects Commissioned and
Orders Received: The Water &
Effluent Treatment business has
commissioned several important
water projects in 2015-16. These
include Vellore Combined Water
Supply Scheme -(Pkg I) with a
181 MLD Water Treatment Plant
for Vellore Corporation which
will provide drinking water to 24
lakh people in Vellore District,
Jawai Cluster Project comprising
water supply from five offtakes
which will benefit 5 lakh people;
State-of-the-art STP at the President
Estate of The President of India for
re-use of 20 lakh litres of water for
horticulture works, upgradation
and rehabilitation of Bhagirathi
Treatment Plant (500 MLD) at Delhi;
Storm Water Project at Varanasi
and Mathura for Uttar Pradesh Jal
154
Nigam Limited, Raw Water Intake
& Pipeline Package for JaiPrakash
Power Ventures Ltd, and the 241
MLD Doha South Sewage Treatment
Plant, Qatar for Public Works
Authority (ASHGHAL).
The business has also been
successful in securing orders from
various domains like lift irrigation,
drinking water supply, plant
water systems, common effluent
treatment plants, municipal
wastewater collection and treatment
and integrated urban infrastructure.
On the International front, the
business has secured orders in Qatar
and Oman.
Significant Initiatives:
With huge opportunities in
integrated water supply prospects,
lift irrigation, sewage and effluent
treatment space, significant
initiatives have been taken to
ensure that the business continues
to be ahead of the competition,
both in terms of market share
and profitability. Some of these
initiatives are:-
Thermal desalination plant.
Hanamapur Lift Irrigation Project, Karnataka.
creation, distribution, management,
field application and extension
activities. The Delhi - Mumbai
Industrial Corridor (DMIC) is India’s
most ambitious infrastructure
program aiming to develop new
industrial cities as ‘Smart Cities’
and converging next generation
technologies across infrastructure
sectors. The program envisages
the development of infrastructure
linkages like power plants, assured
water supply, high capacity
transportation and logistics facilities.
In the International market,
opportunities have been identified
for desalination and sewage
treatment plants in GCC. FIFA 2022
in Qatar and Expo 2020 in UAE
are triggering water infrastructure
prospects in the Middle East. Similar
water infrastructure prospects are
also visible in KSA, Kuwait and
African countries.
SMART WORLD &
COMMUNICATION
(SWC)
Overview:
The world is seeking smarter, more
secure and intelligent solutions
to enhance quality of life. This
has led to the rise of smart cities,
advanced security solutions and
communication infrastructure in
several advanced economies. India
is also rapidly gearing up to create
smart infrastructure that will soon
be the backbone of the economy.
The Smart World & Communication
business provides turnkey services
and Operations & Maintenance as
a Master Systems Integrator in the
areas of city surveillance, intelligent
traffic management systems,
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Water-treatment plant for Vellore Water Supply Scheme, Tamil Nadu.
• Foray into Specialised WTP &
Desalination with Technology
Partnerships.
• Participation in Mega Lift
Irrigation System tenders, in
which water is not transported
by natural flow but is lifted with
pumps or by other means.
• Focus on Zero Liquid Discharge
(ZLD) process as along with
combined effluent treatment
packages in various states and
industries across India.
• Upcoming medium to large scale
STP tenders will improve the
quality of urban life.
Outlook:
Large investments have been
proposed by multi-lateral funding
agencies for irrigation, integrated
urban utilities and CETPs in India.
The GoI is committed to accord
high priority to water conservation
and its management. Nearly 500
cities and towns are expected
to be covered under the Atal
Mission for Rejuvenation and
Urban Transformation (AMRUT)
for the development of urban
infrastructure. Coming to
irrigation, mega projects have
been proposed across major states
along with proposals to connect
rivers with 15,000 Km of canals.
The government has already set
in motion an integrated Ganga
conservation plan - ‘Namami
Gange’ which envisages investments
for sewage infrastructure across
several urban habitations along
the river. Stringent implementation
of pollution norms is in place to
encourage setting up of common
effluent treatment plants. To
this effect Pradhan Mantri Krishi
Sinchayee Yojana (PMKSY) has
been formulated with the vision of
extending the coverage of irrigation
‘Har Khet ko Pani’ and improving
water use efficiency ‘More Crop
per Drop’ in a focused manner with
end-to-end solutions for source
To create smart cities, L&T offers integrated capabilities from L&T Construction, L&T Electrical & Automation, L&T Infotech and L&T Technology
Services.
transport & logistics, border
security, communication networks,
telecom infrastructure, building
management systems, smart grids
and smart city development.
Business Environment:
Security Solutions Business
The various solutions offered
by this business includes City
Surveillance Systems, Intelligent
Traffic Management Systems (ITMS),
Border/Coastal Security Systems,
Security and Management Systems
for Critical Infrastructure - ports,
airports, metros, IT parks and public
buildings.
Several of these systems have been
executed by the infrastructure
business in various projects across
the country.
The business commissioned the
prestigious project for the Home
Department, Gujarat by installing
156
City Surveillance & Intelligent
Traffic Management Systems
for three cities – Ahmedabad,
Gandhinagar and Vadodara.
The business also executed a
unique project facilitating better
surveillance and management of
critical infrastructure at Sabarmati
Jail in Gujarat. The business is
currently executing India’s largest
city surveillance project comprising
6,000 cameras at over 1,500
locations in Mumbai City.
The Security Solutions business
segment has secured the largest
surveillance project in respect to
camera installation for Hyderabad
and Cyberabad City. The project is
city’s first step towards a Safe Smart
City.
It has also secured the
first standalone Intelligent
Traffic Management Project
implementation for Hyderabad.
Communication Network &
Telecom Infrastructure Business:
This business offers total solutions
in areas of Wired and Wireless
Networks including OFC, Emergency
Response Systems, Fixed Broad
Band, Satellite and Microwave
RF Links, ICT / Data Centre
Infrastructure, Emergency Response
Systems including Dial-100, Early
Warning Dissemination System and
Communication Network for Metro
Rails.
The business has huge experience
in optical fiber cabling projects
and enjoys excellent track record
of installation of telecom towers
and other associated works on a
turnkey basis. The business has
proven expertise in providing
state-of-the-art IT & communication
systems for airports, metros, power
plants and factories. The business is
currently executing the first-of-its-
kind communication network at a
Communication Network &
Telecom Infrastructure Business:
The Bharat Net program plans to
connect 2.52 lakh Gram Panchayats
across the country through high
speed digital network. Seven states
have offered to come up with a
State or SPV approach to take this
initiative forward.
Apart from this, the plan outlay
for the Department of Telecom for
2016-17 includes funds for an OFC
based network for the Defence
services. This, together with other
initiatives of various government
departments will provide future
opportunities.
The Union Budget has a healthy
allocation for Metro projects
where the business has made
an entry with the LMRC project
here. The focus here is on
communication systems such as
Radio equipment, FOTS, PA&PIDS,
Clock and other surveillance
equipment. The business will be
active in this segment. Allied to
the communication elements is the
‘Automatic Fare Collection system‘
that requires tie-ups with a few
technology players. Metro projects
are funded by agencies such as JICA
and DMRC, which improves the
level of safety in undertaking these
jobs.
Smart Infrastructure Business:
The Plan outlay in the Union
Budget 2016 of the Ministry of
Urban Development is 21100
crore which includes 7205
crore for Smart Cities and Atal
Mission for Rejuvenation & Urban
Transformation (AMRUT).
The Government has already
unveiled the list of cities under the
157
High-technology surveillance systems ensure 24x7 security.
pan India level for IAF connecting
131 Air Force locations.
This business segment secured
the comprehensive Metro
communication package for
the Lucknow Metro and is also
executing the TETRA communication
network for the Delhi Metro.
Smart Infrastructure Business:
This business segment, as a Master
Systems Integrator, offers both
infrastructure creating expertise,
backed by state-of-the-art IT
capabilities. The business has
executed many projects that include
most of the sub systems of the
SMART city offerings like CCTV
systems, VMS, Video Analytics,
Access Control Systems, Telecom
Systems and Command Control
Centre Systems. These projects,
which were being executed
independently, have now been
brought under one umbrella to
create smart infrastructure.
The business commissioned India’s
First Smart City Project – Jaipur
Smart City with Wi-Fi, Cameras,
Interactive Kiosks, REGS and Parking
Information Systems at selected
locations with a central command
and control centre.
Outlook:
Year 2016-17 looks promising
for the business, as the new
Government has provided a fillip
to safe and smart cities and other
digital initiatives.
Security Solutions Business:
The trigger for the surveillance
business, will essentially come
from the initiatives taken by State
Police Departments and State
Industrial Development Authorities
given that the safety of people is a
State subject. Central Government
assistance is also committed by MoH
to those state governments which
take up the ‘safe‘ initiative. Good
inroads have been made into this
segment in the last three years.
‘Smart Cities Mission‘. Apart from
the Government’s Smart Cities
Mission, many cities like Naya
Raipur and different SEZ corridors
have plans for implementation of
smart elements. Some of these cities
are focusing on pilot smart city
projects to secure a qualification.
Countries like USA, Japan, Germany
and France are eager to provide
investments and technological
support for the development of
many of these smart cities across
India.
Leveraging the diversity and depth
of L&T Construction’s expertise in
water supply, wastewater, solar,
etc., the Smart Infrastructure
business plans to get into new
areas like solid waste management
and all other smart elements like
parking systems, intelligent traffic
management systems, etc.
The business is well positioned
to collaborate with State
level municipal corporations
and governments to share its
experiences in Jaipur which include
the safe city initiative and dedicated
surveillance projects.
158
Power Business
2x800 MW supercritical thermal power plant at Krishnapatam, Andhra Pradesh. L&T has manufactured critical equipment for supercritical power plants across India.
Overview:
Power business provides integrated
concept-to-commissioning of coal
and gas-based power plants on
turnkey basis.
The business has project
management centres in Vadodara,
Faridabad and Chennai along with
state-of-the-art manufacturing
facilities in Hazira for ultra-
supercritical / supercritical Boilers,
Turbines & Generators, Axial Fans,
Air-Preheaters and Electrostatic
Precipitators. These factories,
coupled with talented staff and
decades of unparalleled experience
in executing complex projects,
are its competitive advantage in
building the best-in-class power
assets in India and abroad.
During the year, capacity worth
2,228 MW built by the business
achieved commercial operation. The
business has also made significant
headway in Bangladesh by winning
three prestigious projects for
gas-based plants, one each in the
last three years.
Business Environment:
The business environment was a
mixed bag during the year with
promising as well as challenging
developments.
The domestic market witnessed a
sharp increase in tendering activity
159
in 2015-16. Projects worth 21 GW
were decided either through
bidding or nomination route. Out of
this, close to 10 GW were awarded
out, with formal orders for the rest
yet to be placed. This increased
activity was, however, marred by
severe competitive pressures with
aggressive pricing by competitors.
The year also saw the rise of a trend
of multiple state-owned utilities
placing orders on nomination
basis (Close to 6 GW) bypassing
the established norm of inviting
competitive bids.
During the year, the business
fully established its footprint in
Bangladesh by securing its third
EPC order in as many years for
BPDB 400 MW Bibiyana CCPP. In
the previous years, it won orders for
NWPGCL 360 MW Bheramara CCPP
and BPDB 225 MW Sikalbaha CCPP
in Bangladesh.
The execution of the current coal
and gas-based projects on hand
also progressed satisfactorily in
2015-16, with internal execution
records being surpassed in terms of
time taken for achievement of major
project milestones like erection of
boiler structures and ceiling girder
jack-up.
Significant Initiatives:
The business has recently drawn
up Lakshya 2021 – its 5 year
strategic plan. Under this exercise,
major strategic initiatives have
been identified which will lead the
business to greater success under
the plan period. These initiatives
have been drawn up after detailed
deliberations and reviews both
internally as well as with external
consultants to maximise the benefits
to the company.
160
Natural-gas-fired combined-cycle power plant built by L&T at Vemagiri in Andhra Pradesh.
An aggressive cost reduction
exercise has been initiated under
this plan, to improve the profitability
of its current project portfolio and
improve its competitiveness for
future bids.
Exports – of products, services
and projects – have been selected
as another major focus area. The
business has made significant
progress in cultivating overseas
customers for its engineering wing
as well as supply of boiler and
turbine components.
During the year, the business also
initiated groundwork for firming
up technology partnerships in new
areas like Flue Gas Desulphurisation
(FGD) and Selective Catalytic
Reduction (SCR) and is well placed
to take advantage of emerging
opportunities.
to the sector. On the other hand,
the increasing focus on nuclear
power and renewables like solar
can fundamentally alter the power
source mix in the nation.
Notwithstanding the emergence
of these alternative sources, coal
will remain the mainstay of the
domestic power sector. The primary
concern, however, will continue to
be the supply glut in the coal power
segment. There are prospects worth
~7 GW in the domestic coal market
for 2016-17, against the annual
domestic manufacturing capacity
of 24 GW. While this overcapacity
will continue to keep prices under
pressure, the business expects the
irrational pricing to finally ebb, as
competitors may bid responsibly
because of the mounting financial
distress evident from their books in
2015-16.
Outlook:
The power sector in the country
is in a state of flux today. The
country’s growth and proactive
government policies are expected
to provide much needed boost
For 2016-17, the situation is
expected to improve on policy and
economic fronts. On the policy
side, the Government has issued
rules on environmental protection
relating to curbing the emissions
hanger tubes used in super heater
and reheater coils of boilers.
The Company further strengthened
its position in export market with
prestigious orders from MHPS, Japan
for supplying pulverizers, proving its
cost competitiveness while matching
global quality standards. LMB is
committed to execute the current
jobs within schedule and is also
focusing on increasing exports jobs
for pulverizers and pressure parts.
L&T-MHPS TURBINE GENERATORS
PRIVATE LIMITED (LMTG):
LMTG is a joint venture incorporated
in India of L&T and Mitsubishi
Hitachi Power Systems Limited
(MHPS), Japan and Mitsubishi
Electric Corp. (MELCO). L&T has a
51% stake in the joint venture, with
MHPS holding 39% and MELCO
holding 10% stake. The company
has a state-of-the-art manufacturing
facility at Hazira, Gujarat for the
manufacture of STG equipment
of capacity ranging from 500 MW
to 1000 MW. The company is
engaged in the engineering,
design, manufacture, erection and
commissioning of ultra-supercritical/
supercritical turbines and generators
in India.
The year saw satisfactory execution
progress as planned for the
projects on hand – both domestic
and exports. The company has
made consistent efforts to reduce
costs, product improvisation of
bringing in more efficient models,
indigenization and optimization
of facilities. Today the company is
much better equipped to meet the
competitive market.
Export has become a thrust area for
the Company with its high quality
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Supercritical turbine being assembled at L&T’s Hazira Campus.
of coal-based power plants. These
are expected to open up new
high-value business opportunities
for FGD and SCR. The company is
getting geared to offer these as
part of its product portfolio. The
Ujjwal Discom Assurance Yojana
(UDAY) implemented by the Central
Government is also expected to
provide relief to the sector by
de-stressing the discom balance
sheets and reviving demand. The
Government also plans to bid out
at least two UMPPs during 2016-17
to developers. This will generate
sizeable market for the business in
subsequent periods.
The domestic gas-based power
plant market is not expected to
revive in the near future considering
the already stranded commissioned
capacity. However, the South
East Asian market is expected to
generate opportunities for gas
based plants in the coming year.
With the good experience of
three Bangladesh projects under
execution, the company is preparing
to enter these new markets in South
East Asia.
Major Subsidiary Companies:
L&T-MHPS BOILERS PRIVATE
LIMITED (LMB):
LMB is a joint venture incorporated
in India of L&T, with a 51% stake
and Mitsubishi Hitachi Power
Systems Limited (MHPS) Japan, with
49% stake, for the engineering,
design, manufacture, erection and
commissioning of ultra-supercritical/
supercritical boilers in India. The
manufacturing hub of LMB is
at Hazira, Gujarat; while it has
established design and engineering
centers at Faridabad and Chennai.
The company can manufacture
ultra-supercritical/supercritical
boilers up to a single unit of 1000
MW at its Hazira complex.
Projects under execution have
achieved several milestones with
stamp of quality and performance
this year.
The manufacturing facility at Hazira
has installed and commissioned
its first robotic system for boiler
component welding. The robotic
system is being used to manufacture
standards and competitiveness
being appreciated. The Company
has also been on the lookout for
additional revenue streams like
spares and services, which is bearing
fruit and is well-poised to grow in
future.
L&T-SARGENT & LUNDY LIMITED
(LTSL):
The Company is a joint venture of
L&T and Sargent & Lundy LLC, USA
(S&L), a global consulting firm in
power industry. L&T’s stake is just
over 50% in the joint venture. LTSL’s
main Design Centres are located in
Vadodara and Faridabad.
LTSL offers the complete gamut
of Power Plant Engineering and
Consultancy services - from concept
to commissioning. Its experience
list includes overseas projects in
USA, Middle East, Africa, and
South East Asia. Besides having
considerable expertise in gas-based
and sub-critical coal based power
projects, LTSL is also involved in
engineering of ultra-supercritical/
supercritical coal-based projects
and forms the engineering base for
L&T’s thrust on turnkey execution
of ultra-supercritical/supercritical
technology. As of now, it has
engineered around 21,000 MW of
generation capacity of gas-turbine
based power plants and around
22,000 MW of generation capacity
of coal-based power plants across
the globe.
New customers added to its
client list this year included a
well-known IPP based in Singapore,
S. Korean EPC contractor, Turkish
EPC contractor, a major European
institutional investor, a power
investor based in Singapore, two
cement manufacturers based
in Saudi Arabia and a major
Infrastructure player based in Japan.
Breakthrough orders were received
in new areas of business in
international Lender’s Engineering
Assignment funded by IFC,
Transmission & Distribution,
Substation Engineering and
Renewables (Solar) and R&M
segments.
L&T HOWDEN PRIVATE LIMITED
(LTH):
The Company is a joint venture
of L&T and Howden Group, UK.
L&T has 50.1% stake in the joint
venture. The company supplies high
end fans and air pre-heaters for
thermal power plants. The Company
has a state-of-the-art facility
for manufacture of fans and air
pre-heaters at Hazira, Gujarat along
with a fan testing facility. It also has
a design and engineering center at
Faridabad.
In addition to LMB orders, the
Company has bagged major orders
from other Boiler OEMs. The
Company will continue to pursue
fresh equipment prospects from
boiler OEMs as well as aftermarket
orders from utilities. The recent
environmental rules requiring FGDs
will further boost demand for the
Company’s axial fans.
162
Metallurgical & Material Handling Business
Integrated Steel Plant, Kalinganagar, Odisha.
Overview:
Metallurgical and Material
Handling (MMH) business provides
EPC (Engineering, Procurement
& Construction) solutions for
ferrous (beneficiation, iron & steel
making), non-ferrous (aluminium,
copper, lead and zinc) as well as
bulk material handling systems in
the power, port, steel and mining
sectors. The business also offers
specialised conveying systems
and Ash Handling Plant (AHP)
solutions to the power plants
sector. It has comprehensive and
robust design and engineering
capabilities to cater to EPC needs
across all disciplines. It also has
in-house facilities which design,
manufacture and supply large range
of products like surface miners,
crushing systems, apron feeders
and sand manufacturing plants.
It also undertakes customised
manufacturing of critical machinery
for the steel, power, mining and
other industrial sectors. These
manufacturing facilities are
located at Kansbahal (Odisha) and
Kanchipuram (Tamil Nadu).
Business Environment:
Stagnant growth in demand,
coupled with the onslaught of
cheap imports from China and East
Europe had highly stressed profit
margins for Indian steel producers in
spite of the low raw material prices.
Debt serviceability had been a major
163
concern in the year 2015-16 for
a majority of the steel and power
companies. All these factors have
impacted investments in new
projects with no major steel and
power plant expansions announced
by companies.
Recent Government initiatives like
Safe Guard Duty (SGD), Minimum
Import Price (MIP) and bringing
transparency in mining allocation,
coupled with an upward trend in
global steel prices have brought
some hope for the steel and power
sectors and investments in the
mining sector have commenced.
However, there are risks associated
with the positive sentiment on steel
which include raw material and steel
price volatility, removal of regulatory
support by the Government under
the pressure from WTO, significant
rise in domestic utilisation rates and
weak demand which can all play
spoil sport.
Coal India has been able to achieve
the production of 536 million MT
in 2015-16. The Coal Ministry plans
to become self-sufficient in power
plant fuel in next two to three years.
Major investments in Coal Handling
and Washery are likely in the near
future by CIL, SCCL, MDOs, etc.
India’s iron ore production is
expected to reach 199 million MT
by 2020, opening opportunities in
beneficiation and material handling
sectors. Investments are planned for
iron ore handling and beneficiation
plants by the operators of captive
mines namely SAIL and TATA.
The emphasis of all steelmakers
will be on improving operational
efficiencies. This is expected to
164
L&T offers eco-friendly sand-making machinery and systems in consortium with Japanese
major Kemco.
lead to investments in rebuilds and
de-bottlenecking.
A thrust on ordering Ultra Mega
Power Projects (UMPPs) of 6000-
8000 MW is expected in 2016-17.
This will provide opportunities to
MMH for Coal Handling Plants
(CHPs) and AHPs.
Major orders booked and
executed during the year: The
business managed to stay ahead
of its competitors in major bids in
2015-16 which include Beneficiation
Plant for SK Mines near Udaipur,
Large Tank Package for Emirates
Global Aluminium at Abu Dhabi,
AHP for NTPC at Tanda and Petcoke
handling package for IOCL Paradip
and ORPIC Oman.
The business is currently executing
major metallurgical projects for Tata
Steel Limited at Jamshedpur, for
SAIL at Rourkela and Bokaro and
for SK Mines near Udaipur. Material
Handling packages for RRVUNL at
Chhabra, NTPC Khargone, NTPC
Tanda, MPPGCL Malwa, Reliance
Jamnagar, for Adani at Kandla and
Mundra, Northern and Mahanadi
Coal field jobs at Nighai, Khadia
and Lingaraj and 10 other packages
are concurrently under execution
for various other customers. GCC
projects under execution cover
customers like ORPIC, EGA, joint
venture by SENAAT & JFE and
others.
Plants commissioned across
various business units during the
year 2015-16 are Blast Furnace,
Coke Oven Battery, Sinter Plant,
Steel Melt Shop, Hot Strip Mill,
Material Handling Package and
Power Distribution System for Tata
Steel at Kalinganagar; Material
Handling Package for Tata Steel
at Jamshedpur; Sinter Plant for
SAIL at Bhilai, Emirates Steel HSM
storage at Abu Dhabi; Drywall
Gypsum Board plant for USG and
Zawawi Minerals at Oman, NCL at
Block-B; Bucket Wheel Excavators
at Neyveli, CHP for NTPL-Tuticorin,
UPRVUNL-Anpara, GCEL-Raikheda
and BIDCO-Lalitpur.
The Product business is fully
equipped to manufacture high-
end equipment involving heavy
fabrication, precision machining and
critical assembly and testing.
In the year 2015-16, Kansbahal
received a repeat order from Rio
Tinto for a 1600 TPH rotary breaker
type crusher for Mount Thorley
Mines at Singleton, Australia.
This was based on satisfactory
performance of the first machine
supplied in 2014-15. Another
prestigious international order
from Awam Minerals, Oman for
custom-built skid mounted gypsum
crushing plant was successfully
commissioned.
L&T Kansbahal introduced the very
first surface miners in Northern
Coalfields Limited (NCL) coal mines
in 2015-16. It also continued to
maintain its dominance in supplying
Limestone Crushing plants to major
cement plants in India.
The fabrication shop at
Kanchipuram continues to provide
the support and strength of critical
and heavy fabrication and assembly
works for Material Handling
Equipment like Stackers, Reclaimers
and a host of other mid precision
level equipment catering to the
Steel, Mining, Power and other
process plants.
Significant Initiatives:
The business has made strategic
alliances with leading global
technologists as a part of its
business line diversification across
various segments.
The ferrous business has taken
strategic initiatives in certain parts
of the value chain to develop
in-house technology capabilities and
position itself as a LSTK player for
those process plants. The non-
ferrous sector has started to expand
its portfolio into by-product plants
for Zinc and Copper.
As part of a business augmentation
drive, MMH has envisaged
opportunities in Ash Handling,
EPC support for MDO (Mining,
Development and Operation) and
Material Handling systems.
Kansbahal’s manufacturing facility
is strategically planning to further
augment its product portfolio with
the introduction of new products
like advanced sand manufacturing
plants, cone crushers and mobile
crushers.
During the year, the business
completed the restructuring of its
operations by closing cluster offices.
The business aggressively pursued
optimisation of resources like staff,
equipment, materials and formwork
along with cost reduction measures
to create a lean organisation and
improve operational performance.
Operational excellence initiatives
continued to enhance productivity.
Key success factors for the
business are customer satisfaction,
operational efficiency and consistent
performance. The business has also
established offices in the Gulf (UAE,
Oman and KSA), Africa and South
East Asia to address international
customer needs and further increase
its business potential.
Human Resources: During the year,
the business continued its thrust to
bring in Operation excellence in the
areas of site execution and supply
chain management. Interventions
for advancing the skill levels of
the employees were implemented
through a string of strategic training
programs, both technical and
behavioural at various project sites.
Going forward, these initiatives will
enhance organisational capabilities
for meeting emerging challenges on
all fronts.
Outlook:
The Steel sector is currently facing
sectoral challenges with global
steel prices yet to stabilize and
a high level of industry debt
across steel players. Some of the
positive regulatory interventions
such as allocation of coal mines
and imposition of SGD and MIP
on steel have, however, started
to show signs of improvement
in the domestic steel sector. The
Introduction of the 5:25 refinancing
scheme has given some confidence
and given a breather to the steel
industry. All these factors have
raised hopes of an improving
profitability trajectory for Indian
steel players in Q3 and Q4 of
2016-17.
Focus on capacity utilisation,
improving efficiency, securing
raw material availability and
environmental factors are exerting
a positive pressure on the steel
companies, triggering investment
in steel sector (rebuilds and
de-bottlenecking). As Zinc has
traditionally followed steel, the
165
prospects in Zinc will follow steel
investments. Coal under the
purview of the environmental
concerns, efficiency improvement
pressures and mining clearances
is going to see investments in
2016-17. Mining clearances and
environmental concerns will pave
way for Alumina refineries in
2016-17.
The Power sector has an investment
potential of more than USD 200 Bn.
in the next five years. 35-45 GW
coal based thermal power capacity
order finalisation is expected by
2021. Retrofits and replacement
of old sub-critical units by super-
critical units are also planned by
various power producers. Stringent
environmental norms will provide
opportunities for the material
handling sector. All these initiatives
are expected to provide a lot of
opportunities for MMH business.
The business envisages
opportunities overseas in material
handling and downstream metal in
the near future.
166
Heavy Engineering Business
A coal-gasifier being transported. L&T has built the world’s largest coal-gasifier, for export to China.
Overview:
The Heavy Engineering (HE) business
designs, fabricates and integrates
custom designed, engineered
critical equipment and systems
to core sector industries like
Fertiliser, Refinery, Petrochemical,
Chemical, Oil & Gas, Thermal &
Nuclear Power, Aerospace and for
Defence applications. The business
has a track record of executing
large size and complex projects
with capabilities that include
in-house engineering, equipped
fabrication facilities, R&D centres,
an experienced project team and a
safe work culture.
The business is structured into two
Strategic Business Groups (SBGs):
• Process Plant Equipment and
Nuclear
• Defence and Aerospace
The Process Plant Equipment and
Nuclear (PP&N) SBG is involved in
the manufacture of large complex
equipment such as hydro-processing
reactors and high-pressure heat
exchangers for process plants and
equipment for the nuclear power
sector. Heavy manufacturing is
undertaken at work centres located
in Mumbai, Hazira and Sohar in
Oman. Precision fabrication in
stainless steel and titanium on the
process plant side is handled by the
167
Vadodara manufacturing facility.
During the year, the business of
fabricating critical piping spools for
applications in the power, refinery,
petrochemical, fertiliser and
chemical sectors (for high-pressure,
temperature and corrosive services)
was brought within the purview
of the Heavy Engineering business,
while it was earlier within the
purview of Power business. The
Piping business unit has a track
record of export of piping spools to
USA and Canada and forecasts good
opportunities in supplies to EPCs in
USA, Canada, Japan and Europe.
The Defence and Aerospace
(D&A) SBG is involved in design,
development and realisation of
Naval Platforms, Artillery systems,
Land & Naval Weapon systems, Fire
Control systems, Naval equipment
and systems, Engineering systems
for Land and Marine forces, Military
Bridging systems, Communication
systems, Missile sub systems and
Rocket Motors for Space launch
vehicles. The SBG’s operations span
three dedicated work-centres at
Talegaon near Pune, Coimbatore
and Bengaluru besides production
facilities at Hazira for manufacture
of critical units for the strategic
program, Ranoli for Advanced
Composites and Powai for prototype
development and testing, besides
the site at Vishakhapatnam
operated as a GOCO model for a
strategic program.
Business Environment:
During the year 2015-16, the
Process Plant Equipment segment
has been impacted by a weak
global economic scenario triggered
by slump in the oil prices, falling
commodity prices, depreciation
of emerging markets’ currencies
168
End shields for a nuclear power plant being fabricated at L&T’s Hazira facility.
vis-à-vis USD, financial market
uncertainty, deferred capital
investment plans, geo-political
situations and delayed policy
implementation in India. The
sudden and steep drop in oil prices
has resulted in the cancellation,
suspension and deferment of
capital expenditure projects
of oil-producing countries.
Competitors having idle capacities
offered very aggressive pricing in a
shrunk market. Localisation policies,
preference to local suppliers and
mandatory requirement of sourcing
equipment from the Export
Credit Agencies (ECA) financing
countries by EPCs also impacted the
Process Plant Equipment business.
International sanctions on Russia
and Iran deprived the SBG of
business opportunities. The nuclear
business was affected by the delay
in matters related to nuclear liability
and insurance as per The Indian
Civil Liability for Nuclear Damage
Act. PP&N SBG’s order inflow and
revenues were therefore adversely
impacted. This caused under-
utilisation of facilities resulting in
under-recovery of fixed expenses. In
addition cost over-runs on certain
jobs also impacted the profitability
of the SBG.
Defence and Aerospace is a
strategic segment, and Government
of India’s (GoI) procurement in
this segment follow the Defence
Procurement Procedure (DPP). With
an aim to achieve self-reliance as
well as boost in defence exports in
the medium and long term, the GoI
has driven several initiatives in fiscal
year 2015-16 aimed at attracting
investments from both foreign and
Indian companies and creating a
level playing field for Indian private
sector companies in defence.
Through structured and detailed
consultations with all stakeholders,
a simplified DPP 2016 has been
released in March 2016, which
addresses the requirements of the
Ministry of Defence and Industry.
Considering the long procurement
cycle time, the benefits of the
impact of the new DPP would be
realised from the year 2017-18
onwards. In fiscal year 2015-16,
the continuing linkage to earlier
procedures and resultant slower
pace of decision making resulted in
deferment of repeat orders for Very
Low Frequency (VLF) Transmitter
project, Pinaka Artillery Systems and
Weapons and Equipment package
for Indian Navy’s warships, thus
resulting in reduced order inflow.
However, significant progress has
been achieved in certain other
programs, orders for which are
likely to be concluded in the near
term. During the year, the SBG also
embarked upon a drive for reducing
capital employed in operations
with added focus on productivity
improvement and efficient execution
to shorten the order to cash cycle,
resulting in better cash generation.
Significant Initiatives:
In order to maintain leadership
position in the Process Plant
and Defence sectors, focussed
team initiatives are taken under
Organisational Excellence (OE).
The OE team facilitates the
implementation of identified
improvement programs across
Heavy Engineering. Initiatives
like Productivity Management,
Total Productive Maintenance of
machines, Six Sigma for process
improvements, Workplace
Management Systems, Knowledge
Management, creation and update
of Standards and Procedures and
Cost Control measures harness
the technical and business acumen
of the business. The culture of
continuous improvements in
operations helps the business
attain global benchmarks. In-house
competency and leadership
development are undertaken
through Employee Engagement and
Talent Development Programmes.
Sustainability and CSR is enshrined
in the Vision of the business and
has long been a part of its way of
giving back to society at large. The
sustainability and CSR initiatives
are undertaken at each of the units
of the business based on the local
needs. Developmental programs
are identified in keeping with its
thrust areas like global warming,
conservation of electricity, fuels,
water and reuse and recycle of
material and resources.
More than 50,000 people from
underprivileged and economically
backward communities have been
benefitted through health check-up
campaigns and medical care.
Over 20,000 children have gained
from its education promotion
programs by way of building
school infrastructure and providing
educational aids. Environment,
Health and Safety policies and
programs help in increasing
awareness amongst employees,
community and its stakeholders.
Product & Technology Development
Centres, within Heavy Engineering,
focus on new product development
and development of improved
The inclined Brahmos missile launcher adds another dimension to the country’s fire power. L&T has developed several launchers and weapons
systems.
169
manufacturing technology.
These Centres are engaged in
deploying technologies related to
process industries, manufacturing,
mechanical systems, defence
electronics and submarine designs.
The Centres focus specifically
on the following technology
domains -welding and metallurgy,
composite material, heat transfer,
hydrodynamics, computational fluid
dynamics, stress analysis, drives,
microwave and RF, embedded
systems, high availability systems
and military communication. The
steering group, comprising the top
management of the business, plans,
oversees and monitors all these
initiatives through regular review
meetings.
For the D&A segment, the Product
& Technology Development
Centres focus on development
of niche products and solutions
either for internal development
projects or through participation
in opportunities presented under
‘Make’ & ‘Buy & Make Indian’
category programs. The SBG
has also successfully partnered
with foreign Original Equipment
Manufacturers for engineering,
development and realisation of
artillery gun systems customised for
the requirement of Indian Army.
In the Defence segment, the
business has collaborated with
national laboratories such as DRDO
and ISRO as technology partners for
indigenous technology development
for the various defence and space
launch programs, besides in-house
programs such as the Autonomous
Underwater Vehicle. The business
is also a partner to defence public
sector undertakings such as Bharat
Electronics Limited, Bharat Dynamics
Limited, Mazgaon Docks Limited,
170
K 9 Vajra T 155/52-calibre self propelled howitzer, designed for all terrains.
Garden Reach Shipbuilders and
Engineers Limited etc. for detailed
engineering & production of various
weapon delivery & engineering
systems. This augurs well for the
business in future, as it aligns with
the GoI’s ‘Make in India’ initiative.
Outlook:
The business outlook for Process
Plant sector looks challenging
due to uncertain macro-economic
environment coupled with dropping
oil prices and cut on capital
expenditure across the sector. The
overall investment climate remains
cautious with the overhang of
excess capacity. However, the recent
financial distress of Korean and
Chinese fabricators may force EPCs
to explore other low-cost countries
including India. Given its execution
capabilities and proven track
record, the PP&N SBG is prepared
to harness business prospects as
they emerge and stay focused on
profitable execution.
In the refinery space, oil supply
has outpaced oil demand growth
in 2015-16, putting significant
pressure on oil prices. The declining
trajectory seems likely to continue
in 2016-17 and will gradually
rebalance boosting demand and
dampening supply. The majority
of the investments are likely to be
in Asia and Middle East region.
However, opportunities are seen
in the medium term due to
implementation of clean fuel norms
in India– Bharat IV by 2017, Bharat
VI by 2020 and announcement
to set-up new greenfield refinery
by PSU oil majors. Overseas
opportunities include KNPC-Al Zour
Refinery Project in Kuwait, Dangote
Refinery Project in Nigeria, Hengli
Refinery Project in China, PMB
Hengyi Refinery Project in Brunei,
TAKREER Refinery Project in the
UAE, BAPCO Refinery Project in
Bahrain, PEMEX Refinery projects in
Mexico, etc.
In the petrochemical sector, the
uncertainty in the investment is
prevailing due to fall in oil prices.
US Shale gas has the advantage
of lower and shorter investment
cycles compared to conventional
oil, which makes US shale more
responsive to oil prices. Availability
of cheap LNG and US shale gas as a
feedstock will boost investment in
the petrochemical sectors (ethylene
capacity additions).
In the Fertiliser space, global
fertiliser demand is forecasted to
expand marginally in fiscal year
2016-17. Greenfield and brownfield
projects are expected in USA,
Saudi Arabia, Indonesia, Nigeria,
Algeria and Russia. Expected
domestic greenfield and brownfield
investments in the fertiliser sector
shall provide business opportunities.
Also, opportunities to export for
upgradation projects in Iran seem to
be opening up.
In the Nuclear space, the Indian
Nuclear Insurance Pool (INIP)
launched in June 2015 and the draft
Operator’s Policy and Supplier’s
Special Contingency Policy (against
‘Right of Recourse’) is being
reviewed by the concerned parties
(including foreign technology
providers). Further, the government
approved the Nuclear Liability Fund
of 2000 crore which is an addition
to INIP. The Company has entered
into strategic teaming agreement
/ MoU with the concerned foreign
technology suppliers and can look
forward to a global presence in this
industry. Due to stiff competition
in international markets, foreign
OEMs are looking at cost effective
solutions through plant upgrades
and de-bottlenecking, and this
opens up opportunities for the
business. In view of the same,
procurement process (re-tendering)
for critical equipment is expected to
begin in 2016-17.
A track record spanning three
decades of the D&A SBG with
emphasis on indigenous technology
development distinctly positions the
Company as a market leader, on
its own steam and in the forefront
in the defence and aerospace
sector. With the DPP 2016 coming
into effect from 1st April, Defence
procurement is expected to gain
traction and programs worth
200000 crore are expected to
be ordered with preference to the
Indian industry. The preference
to buy Indigenously Designed
Developed and Manufactured
(IDDM) products will also result in
opportunities in newer domains.
With FDI at 49%, competition in the
form of foreign OEMs with Indian
industry is likely to be increased.
Over the next 2 to 3 years,
significant opportunities are
envisaged in programs for new-
build naval platforms, refit of
conventional submarines, artillery
and air defence guns, close-in-
weapon system, military bridging
systems, missile programs and sub-
systems for space launch vehicles.
The business is future-ready to play
a proactive role towards self-reliance
of our nation through a successful
‘Make in India’ initiative.
Major Subsidiary Companies
L&T SPECIAL STEELS AND HEAVY
FORGINGS PRIVATE LIMITED
(LTSSHF):
L&T Special Steels and Heavy
Forgings Private Limited (LTSSHF)
is a joint venture (JV) of Larsen &
Toubro Limited (L&T) and Nuclear
Power Corporation of India Limited
(NCPIL), with L&T and NPCIL holding
74% and 26% stakes respectively.
The JV was formed to set up a fully
integrated forging facility (from
steel scrap to finished forgings of
alloy steels, carbon steel & stainless
steels) with a capacity to produce
a single piece ingot up to 300 MT
and forgings up to 120 MT in the
first phase. These are required for
critical equipment in nuclear power
and hydrocarbon industry, for
rotors in power industry, blocks for
oil & gas segment and for general
engineering applications. The JV
is a major strategic step towards
achieving India’s independence
from imports of heavy forgings for
hydrocarbon industry and ensuring
timely supply of heavy forgings for
nuclear power plants.
Business Scenario:
The demand for heavy forgings
is a derived demand dependent
on the outlook of the end use
segments comprising refineries,
petrochemicals, thermal and nuclear
power, wind and hydro power
and other industries like steel. The
Company has been witnessing fierce
competition from global established
players having excess capacities.
This has been aggravated post the
Fukushima nuclear disaster. Due to
very low crude oil prices, the forging
demand from oil & gas sector has
also diminished.
The Company has been successful in
getting approvals and qualifications
from many key customers. This
opens a window of opportunities
going forward in various
segments. The Company has been
successful in manufacturing of
high quality Stainless Steel grade
forgings required for International
Thermonuclear Experimental
Reactor (ITER). In yet other major
milestone, the Company has
successfully manufactured most
of the heavy forgings for steam
generators, pressurizers of 700 MW
PHWR reactors for NPCIL designed
nuclear plants.
The Company has also made heavy
forgings – shells, tube sheets,
dished ends required for refineries,
171
fertiliser plants and heavy shafts for
the mining segment. The Company
has made successful supplies of
Blow out Preventers (BOP) and
forged blocks required for oil & gas
segment.
The Company is focusing on
stabilising the production processes
and improve manufacturing
efficiencies so as to remain
competitive in the market. A series
of initiatives have been initiated
in the area of cost control and
improving process efficiencies. A
total focus on reduction of fixed
costs has brought down the fixed
costs by over 30%.
The Company has embarked on
establishment of Quality Systems
in the new facility, complying with
ISO 9001. The Company has been
accredited by NABL certification for
laboratories and also received the
U, U2 stamps from ASME, USA. This
will help company in getting shop
approvals from prospective reputed
customers.
The strategic focus of the Company,
in line with its vision, is to fill
the technological and resultant
manufacturing gap in the country
for critical heavy forgings for
the nuclear and other strategic
sectors like defence. The Company
has demonstrated its capability
to manufacture critical forgings
for the Indian Pressurized Heavy
Water Reactor (PHWR) plants. It
has also taken up the development
of the critical forgings for the
next generation IPWR - nuclear
plants. Discussions are at an
advanced stage with foreign
technology partners for possible
development of forgings to meet
their specifications for future Indian
nuclear installations.
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L&T’s nuclear-grade forge shop at Hazira (near Surat), one of Asia’s largest. It offers a wide
range of finished forgings for the nuclear, hydrocarbon and power sectors.
SPECTRUM INFOTECH PRIVATE
LIMITED (SIPL):
SIPL is a wholly-owned subsidiary
of Larsen & Toubro Limited. SIPL
undertakes technology development
and manufacture of avionics Line
Replaceable Units (LRUs) for military
applications. SIPL concentrates
largely on product development
in embedded solutions, sensors,
control and signal processing. SIPL
is certified by Centre for Military
Airworthiness and Certification
(CEMILAC) of the Ministry of
Defence, India for the same. SIPL
has obtained AS9100 Rev C, ISO
9001 and ISO 27001 certifications.
SIPL is developing a Frequency-
Modulated Continuous-Wave
(FMCW) based radar system, which
can be utilised in a variety of military
and land security applications.
The company continues to work
with the Ministry of Defence and
Hindustan Aeronautics Limited to
jointly develop new products.
The announcement of new
programs in the aircrafts and
helicopter domains have opened
new business opportunities in
avionics. However, increased
competition from smaller firms and
entry of new players have resulted
in a very challenging business
environment.
LARSEN & TOUBRO HEAVY
ENGINEERING LLC:
Larsen & Toubro Heavy Engineering
LLC is a Joint Venture with Zubair
Corporation, established in Sohar,
Sultanate of Oman. L&T, through
its wholly-owned subsidiary
Larsen & Toubro International FZE,
holds 70% in the Company. The
heavy engineering facility was
commissioned in October 2009. The
Company focuses on business in the
Middle East, mainly GCC countries
and supplements manufacturing
and fabrication facilities located
in India. The company seeks
to leverage the geographical
advantage with Oman Government’s
in-country-value requirements,
Oman’s expected large value
investments in the hydrocarbon
sector, and revamp prospects in
certain ageing refinery projects
offer good potential for the facility
which has already established itself
by producing a variety of complex
equipment.
Electrical & Automation Business
L&T offers India’s widest range of switchgear to a variety of sectors - agricultural, industrial, building and commercial.
Overview:
The Electrical & Automation (E&A)
business of Larsen & Toubro Limited
offers a wide range of products and
solutions for electricity distribution
and control in industries, utilities,
infrastructure, buildings and
agriculture sectors. Its basket of
offerings includes Low and Medium
Voltage Switchgear components,
Electrical Systems, Marine
Switchgear systems, Industrial &
Building Automation Solutions,
Surveillance Systems, Energy Meters
and Protection Relays.
The business is supported by its
five decades of experience in
in-house design and development
that facilitates the introduction of
contemporary products and a high
precision tool manufacturing facility
which is a pre-requisite for high
quality manufacturing. The business
runs six Switchgear Training Centres
across the country that impart
training and learning on good
electrical practices to engineers,
consultants, contractors, technicians
and electricians.
Currently, E&A has manufacturing
facilities at Navi Mumbai (Mahape
and Rabale), Ahmednagar,
Vadodara, Coimbatore and Mysuru
in India as well as in Saudi Arabia,
Jebel Ali (UAE), Kuwait, Malaysia,
Indonesia and the UK.
173
The constituents of E&A business
are two Strategic Business Groups
(SBGs) and designated subsidiaries.
In India both the SBGs have under
them two Business Units(BUs)
each. The Products SBG includes
Electrical Standard Products (ESP)
and Metering & Protection System
(MPS) business units while Projects
SBG comprises Electrical Systems
& Equipment (ESE) and Control &
Automation (C&A) business units
respectively.
Business Environment:
During the year global economic
growth has slowed down from
3.4% to 3.1% on the back of
slowdown in China, meltdown
of oil prices across globe and
concerns of European market still
continuing. However,India’s GDP
grew by 7.6% notwithstanding
the contraction of global exports
and two consecutive years of a
deficient monsoon on the back of
an excellent performance by the
services sector.
New initiatives like Dindayal
Upadhyaya Gram Jyoti Yojana,
UDAY, Smart Cities, Smart Grid,
Pradhan Mantri Krishi Sinchai Yojana
& increased focus on renewable
energy taken by government show
a promising future. But these
initiatives will take time to take
root and start generating business
for E&A. These initiatives will see
incremental revenue for coming five
years.
The LV switchgear market has
been growing at slow pace
over the last two years due to a
muted investment cycle, weak
macroeconomic environment, and
a downward trend in the industry
and restricted investments in
infrastructure and utility projects.
174
L&T’s U-Power Omega ACB range offers enhanced protection in a compact package.
The LV Switchgear market is
expected to grow at CAGR of
6.5%and is expected to reach
7600 crore in 2020.
been stalled or cancelled). This has
inturn affected the price-realisations
for whatever opportunities existed
in these markets.
Rising investment in alternative
sources of energy is expected to
contribute to the growth of MV and
LV switchgear used for switching
and general protection. Moreover,
this application area will also trigger
demand for Miniature Circuit
Breakers (MCBs) and Molded Case
Circuit Breakers (MCCBs).
In the International market,huge
Infrastructure opportunities
are seen in the ASEAN region
especially in Indonesia and
Thailand. Major investments are
seen in Infrastructure development.
Also there are opportunities in
Infrastructure segment in the Qatar,
Saudi Arabia and UAE (metros,
airports and hospitals) in the wake
of FIFA 2022 (Qatar) and EXPO 2020
(UAE).
The infrastructure sector sees a
gradual growth over the coming
years, however, the impact of lower
oil prices is seen on future OPEX
plans cancelled by all oil-producing
nations (Middle East projects have
Significant Initiatives:
The business continued to devote
its resources and capabilities
to Research & Developmental
endeavors, which is one of its core
strengths. Its in-house design &
development capabilities are rated
among the best in the industry.
The facilities at Powai–Mumbai,
Ahmednagar, Mysuru, Mahape and
Coimbatore are approved by the
Department of Scientific & Industrial
Research, Ministry of Science &
Technology. These centers network
with international labs, testing
centers and academic institutions
to keep abreast of new technology
trends and introduce them to
customers in different segments.
During the year, E&A filed
application for as many as 114
patents, 12 trademarks, 37 designs
and 1 copyright in India, as well as
2 foreign patent applications (PCT
National Phase applications – in
Europe and China). This was the
9th consecutive year of filing more
than 100 patent applications. Also
the business won the prestigious
National IP Award 2015 in the
category ‘Top Organizations for
Designs‘, from the Department of
Industrial Policy & Promotion and
Intellectual Property Office, Govt.
of India, in association with CII.
The honor recognises and rewards
organisations across India for their
contribution in harnessing the
country’s intellectual capital and
creating an eco-system that boosts
creativity and innovation.
During the year, Electrical Standard
Products Business put its thrust
on ramping up its capabilities to
increase the production of its new
products such as its new range of
modular products and other MCCBs.
The two major developments for
the year were introduction of AHF
(Automatic Harmonic Filter) and the
‘Smart Comm’ solution (powered
by iVisionmax – Indigenous
automation software). Smart Comm
is a unified software platform for
supporting all the products of
the business including meters,
MCCBs, MCBs, relays, releases, ac
drives, soft starters, IO modules
and building automation products,
communicating to a control
room through Ethernet, Modbus
TCP/IP, IEC 61850 and BACNet.
Smart Comm is scalable to meet
requirements of all sizes of facilities
and plants and it allows integration
of third party devices on open
standard protocols.
In 2015-16, the Metering &
Protection System business
introduced new products like New
1-phase Meter with IrDA, 3-Phase
Meter with IrDA, 1-Phase Pre-Paid
Meter (Taurus), 3-Phase Pre-Paid
Meter (Atria), 1-Phase Smart Meter
(Aurora), 3-Phase Smart Meter
(Regor), 3-Phase Digital Panel Meter
(Nova), New Trip Supervision Relay
(TCS01-nX) & Motor Protection
Relay (MPR200). The introduction
of the Smart and Prepaid meter will
show results in the coming years
as India is implementing ‘Smart
Cities’ a key initiative taken by the
Government.
During the year, the Control and
Automation business made an entry
into the Solar business with help of
a tie-up with an Italian Company
for L&T-branded Solar inverter
completing the portfolio for solar
solution. Also, Electrical System
and Equipment business developed
L&Ts Outdoor Compact substation
– N-Qube which will cater to the
rapidly growing infrastructure
sector.
Outlook:
Even with the new reforms initiated
by the government, the core sectors
continue to show no signs of
pickup. However, with the launch
of schemes like DDUGJY and IPDS
which target central procurement
of meters throughout the country,
there is a hope for a movement
toward premium products like AMR,
Prepaid and Smart Meters in the
coming years. Also, Scheme UDAY
will improve health of DISCOMS and
will lead to higher investment by the
utilities.
The overall market will remain
competitive as liquidity with major
customers continues to be a cause
of worry. The business has also
witnessed a financial crunch at
major industrial houses due to
which new plants/expansion are
not being announced. Overall the
industrial sector shows a muted
trend. However, the business sees an
upward trend in the infrastructure
sector (Metro, Airports, Railways,
etc.) and is optimistic that its
efforts in launching products for
infrastructure sector in 2015-16 will
yield result although the margins in
infrastructure sector are negligible
due to competition from local
players.
The business also sees an
improvement in demand from agro
/ food processing industries. The
Marine business sees a positive
sentiment through the ‘Make
in India’ initiative taken by the
government which emphasises
on indigenous content, giving
the business an edge over foreign
suppliers. Also the Indian Navy has
reckoned the company as a strategic
partner resulting in thrust on setting
up Life Cycle Support facilities in its
Navi Mumbai factory.
With continuous low oil prices,
the business sentiments are being
affected on the international front.
Projects are expected to be deferred
or delayed further. However, social
infrastructure projects like hospitals
and metros are expected to
continue as planned and new high
end infrastructure projects are being
announced in the Dubai market for
Expo 2020 and the Qatar market for
FIFA 2022. The dedicated focus of
the business on GCC metro projects
is expected to yield results in
2016-17. Also,pursuant to unrest in
the Middle East and Africa regions,
respective government priorities
are shifting toward defence related
initiatives.
The South East Asia market looks
attractive as major investments
are seen in the building sector in
Indonesia and the power sector in
Bangladesh.
175
Major Subsidiary Companies
TAMCO GROUP OF COMPANIES:
TAMCO is the leading manufacturer
of Medium Voltage switchgear in
South East Asia with manufacturing
facilities in Malaysia and Indonesia.
Its products are widely used in the
power, oil & gas, construction and
manufacturing industries. Through
extensive R&D and advanced
manufacturing technology, TAMCO
has been able to deliver high
quality, safe, reliable and cost
effective products and solutions.
Its strength lies in the flexibility to
develop and adapt products to meet
customers’ needs and, therefore, it
has a high reference list across the
globe.
The business environment in
2015-16 was tough with the steep
fall in oil prices as TAMCO’s main
markets are in oil producing nations.
Even the Malaysian market was
badly affected with projects getting
delayed and the government cutting
its OPEX budget. Jobs were few
and this affected the price levels
too. However, the depreciation of
the local currency (Ringgit) gave
the company an advantage in the
global market and it could protect
its market share and margins.
The Chairman of Saudi Electricity
Company visited the company
and encouraged it to build the
switchgears in KSA. Consequently
TAMCO invested 25% stake in
LTEASA and have completed type
tests to get its products approved.
Also UK approved for the E&A
business to opening doors to utility
market in the UK. The company’s
Australian operations were not
able to generate business and
were making losses over the last
two years. Accordingly, operations
in Australia were stopped and
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Switchboard installation at a power plant. L&T provides power distribution and control
solutions across the value chain, from generation to end user.
separation of all employees was
carried out except the service
engineers.
The Malaysian economy is showing
signs of recovery. The local utility
is coming out with a few tenders
in the coming year and the
Company expects to benefit from
this opportunity. Also the outlook
for Indonesian economy looks
encouraging and a large numbers
of infrastructure and power projects
are seen in the pipeline. With
projects drying up in core markets
like UAE, Qatar and Malaysia, the
Company saw a need to develop
a retrofit solution for these
geographies where its product and
solution population is high. With
some concrete efforts, the Company
has developed retrofit solutions
to cater to these requirements.
Another key strategy for TAMCO
would be to foray into European
markets, Iran and other South-
East Asia countries like Vietnam
following an OEM model.
L&T ELECTRICAL & AUTOMATION
FZE (LTEAFZE):
L&T Electrical & Automation FZE
(LTEAFZE) is a 100% subsidiary of
L&T International FZE based in UAE.
The company provides Systems
Integration solutions in the Oil
& Gas, Power, Water and Waste
Water and Infrastructure space like
Airports, Hospitals, Stadiums and
Transportation segment like Metro
and Rail. The solutions are centered
around Process Automation and
Telecommunication applications
catering to customers / contractors
in the Middle East, Africa, CIS and
Turkey markets. It has a state-of-
the-art integration facility in Jebel
Ali Free Zone and is accredited with
ISO 9001, 18001, 27001 and TUV
for functional safety.
With the period 2015-16 seeing
a steady decline in oil revenues
continue to get implemented
across industries. LTEAFZE is fast
aligning with the new A&T arena
with delivery capability as Main
Automation or Telecom Contractor,
and is poised to leap forward into
the next league.
L&T ELECTRICALS AND
AUTOMATION SAUDI ARABIA
COMPANY LIMITED, LLC
(LTEASA):
L&T Electrical & Automation Saudi
Arabia Company Limited was
established in 2006 as Limited
Liability Company, where, 75%
of shares are held by Larsen &
Toubro International FZE and 25%
by TAMCO Switchgear Malaysia
Sdn. Bhd. It manufactures of LV/
MV switchgear/control gear
panels of all sorts and undertakes
installation and commissioning
of these products along with
associated products viz., PLCs,
Drives, Transformers, cables, etc.,
to offer a one window solution
to customers. The company been
approved by almost all major end
users in the Kingdom eg SABIC and
Saudi Aramco.
The Company had a bad year in
terms of achievements. During the
year 2015-16, LTEASA saw lower
order inflow in view of deferment
and cancellation of projects which
lead to drying up of the order
book and lower sales, leading to a
negative bottom line.
The Saudi economy is expected to
grow slowly at 1.9 % in calendar
year 2016 down from 3.4% in
calendar year 2015. The non-oil
private sector will continue to grow
albeit at a slower pace, as reduced
government spending will most
likely have a negative impact on
177
L&T powers Mumbai International Airport’s Network Operations Centre.
leading to shortfalls in budgeted
incomes for all oil economies in
the region compounded with
heightened security concerns due to
increased political disturbance in the
region, there is a general slowdown
in pace of O&G project investment.
Nevertheless, O&G investments
continued in Kuwait and Oman,
while Qatar and KSA governments
primarily are committed to
improving their infrastructure.
Airport, Metro / Railway, Hospital
related investment continued to
gain importance.
The Company has had a bad year
in terms of achievements. The
costs surpassed the estimation on
the projects, leading to a negative
bottom line. With increasing
number of System Integration
companies in the market, the
markets have become extremely
competitive. As a result, LTEAFZE
saw drop in Process Automation
project opportunities from the O&G
and Utility industries. However,
it saw considerable scope for
Infrastructure Automation with
Building Management System
along with Extra Low Voltage
(ELV), Electronic Security (ESS)
and Telecommunication (TCom)
Systems. The Automation Product
OEMs continue to lobby with end
clients / consultants for restricting
competition to limited participants
through direct OEM bidder
nomination or novation.
Healthcare, Transport, Power
Generation and key event driven
development viz. FIFA 2022 in Qatar
and EXPO 2020 in Dubai would
continue to generate business
opportunities through 2016-17.
While some countries like UAE
show some investment slowdown
in energy and infrastructure
sector, others like Qatar and
Kuwait continue to move forward
with earlier announced projects
finalised in 2015 and 2016 and
have announced new projects that
will give opportunities to LTEAFZE
in 2017. Projects focused on any
process Improvement, Security,
Surveillance and / or Environment
friendly practices will generally
business activity. However, growth
in all sectors in the non-oil private
economy will remain positive.
The fiscal year 2016-17 will be a
tough year for LTEASA. The key
focus areas for LTEASA during the
year would be getting LV and MV
approvals from SEC, Aramco and
other consultants in KSA, providing
better reach in Saudi market. As
major growth opportunities will be
generated from non-oil markets,
the key focus area would be the
infrastructure sector, especially
mega metro and airport projects.
HENIKWON CORPORATION SDN
BHD, MALAYSIA:
Established in 1982, Henikwon
Corporation is leading manufacturer
of Low Voltage (LV) & Medium
Voltage (MV) bus duct systems.
The Henikwon acquisition brought
strong customer base of large
corporations to E&A’s business
and complements its portfolio to
make comprehensive offerings for
the building and infrastructure
segments. It further enhances L&T’s
presence in South East Asia, India
and Middle East markets. Henikwon
offers high quality products that
comply with international quality
standards. The 12,300 sq.mt.
manufacturing unit is located in
Selangor state of Malaysia.
The overall business environment
and market sentiment is cautious.
Most of the regional economies are
yet to get into higher growth orbit
and are presently in the band of
4-5% GDP growth. Significant local
opportunities are seen in oil & gas
and metro segment. The Company
is working on a few metro projects
locally as well as within India (Delhi,
Chennai) and international markets
(Doha, Riyadh).
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The Company is working to stabilise
‘S-line’ range of bus duct systems,
and has initiated marketing efforts
in select countries. Further,it
is working on development of
non- segregated variants, for the LV
segment, which is being specified by
the oil & gas industry. Qatar remains
in focus due to less dependency on
oil and the FIFA World Cup 2022.
The Company will continue to focus
on its existing range (SCM) and
strengthen its ADDC and SEWA
segment projects.
SERVOWATCH SYSTEMS LTD, UK
Servowatch is marine automation
company based in Maldon Essex
UK, acquired by L&T in April 2012.
Servowatch is recognized as a
world leading system integrator for
modern naval platforms, super yacht
installations and commercial marine
operators. its unique software
design allows integration of
third-party software into a common
operator platform environment.
‘Task Orientation’ for specific
user profiles with portability from
station to station creates a highly
redundant multifunctional operating
environment. Typical applications
include machinery, navigation,
radar, electronic charting, internal
and external communications,
tactical sensors, auxiliary ship
systems, camera networks, mission
logging and playback functionality.
The highly trained and professional
teams at Servowatch offer an
extensive range of services.
Servowatch partners with leading
manufacturers of hardware and
software to allow flexibility in
meeting project requirements, and
providing full through life product
support capability.
During the year, Servowatch
successfully completed FAT
for MARS Project (Tankers for
Re-fuelling UK Royal Navy built
by DSME in South Korea) using
indigenous software Winmon 9.
The projects included a total of four
vessels, first of which underwent
sea trials. Successful commission of
the first vessel will give Servowatch
a huge reference for large naval
vessel systems and open doors to
other markets.
Going into the new financial year,
the business is set to consolidate
on the financial position achieved
during previous year. The business
is planning to restructure its
sales team to focus on select
geographies. Also a permanent
business development professional
is deployed in its major market
of South Korea and the Far East.
Products have been aligned/
introduced and priced to meet the
market requirements for all sectors.
Kana Controls General & Trading
Contracting Company W.L.L.,
Kuwait
LTEAFZE acquired the Kuwait-based
Kana Controls General Control &
Trading Company in September
2013. Kana Controls established
in 1990,offers systems for all
type of automation including
Field Instruments & Sensors,
Flame Detection & Combustion,
Termination & Wiring devices, Panel
Mounted Instruments & devices,
Interface devices, Power Supplies,
Panels & Enclosures.
Kana Controls is approved with
most customers in Kuwait and
provides a good platform to serve
the control and automation business
opportunities in Kuwait.
Hydrocarbon Business
Mumbai High North (MHN) complex of ONGC, executed on EPCI basis. The massive complex comprises a process platform (26,500 MT topside + 13,500 MT jacket)
a living quarters platform (6,500 MT topside + 13,500 MT jacket), two flare platforms and four bridges.
Overview:
The Hydrocarbon business
provides ‘design to build‘ turnkey
engineering, procurement and
construction solutions for the global
Oil & Gas Industry including oil &
gas extraction, petroleum refining,
chemicals & petrochemicals,
fertiliser sectors and cross country
pipelines. The existing in-house
capabilities enable it to deliver
complete end-to-end solutions
from front end design through
detail engineering, procurement,
fabrication, project management,
construction and installation up
to commissioning services. The
hydrocarbon business is primarily
housed in a wholly owned
subsidiary, L&T Hydrocarbon
Engineering Limited (LTHE)
The business has repeatedly
delivered, large, critical and complex
projects, globally, by virtue of its
experienced and highly skilled
project execution team, world-
class HSE practices and culture
of excellence. The business has a
fully integrated capability chain
including in-house engineering, R&D
centre, engineering joint ventures,
world class modular fabrication
facilities and offshore installation
capabilities. The principles of
Company’s business philosophy are
striving for excellence in corporate
governance, safety standards and
quality standards, state-of-the-art IT
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security practices,on-time delivery
and cost competitiveness.
The geographic reach of the
business spans across Asia,covering
Middle-East and South-East Asia.
Major facilities in India include
Engineering & Project Management
Centres at Mumbai, Vadodara,
Chennai and Faridabad and
Fabrication Yards at Hazira (Surat)
and Kattupalli (Chennai).Overseas
facilities are located across the
Middle East including in UAE
(Sharjah), Saudi Arabia (Al-Khobar),
Kuwait, Oman (Muscat) and Qatar
(Doha). The business also has a
major Modular Fabrication Facility
at Sohar in Oman held through a
subsidiary.
The business caters to clients
across the hydrocarbon value-chain
through its following business
verticals:
• Hydrocarbon Offshore
• Hydrocarbon Onshore
• Hydrocarbon Construction
Services
• Hydrocarbon Modular Fabrication
Services
• Hydrocarbon Engineering Services
Hydrocarbon Offshore:
The business offers turnkey
solutions to the Global Offshore Oil
& Gas industry encompassing well-
head platforms, process platforms
and modules, subsea pipelines,
brown field developments,
jack-up rig refurbishment, floating
production storage & off-loading
(FPSO) topsides and subsea projects.
For more than two decades the
business has been successfully
executing large offshore platforms
and pipeline projects in east and
west coasts of India, the Middle
East, South East Asia and Africa, for
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Upgrade project executed on an EPC basis for export gas compression facilities of Dolphin
Energy, Qatar.
global companies such as ONGC,
GSPC, British Gas, ADMA OPCO,
Bunduq, Qatar Petroleum, Maersk
Oil Qatar, PTTEP, Petronas and
Songas.
The joint ventures with Sapura
Crest Petroleum Bhd., Malaysia,
viz., L&T Sapura Shipping Private
Limited,owns and operates a Heavy
Lift Pipe Lay Vessel, and L&T Sapura
Offshore Private Limited provides
offshore installation services. LTHE’s
wholly owned subsidiary, L&T-Valdel
Engineering Limited, Bengaluru,
renders dedicated engineering
services for offshore projects.
The business has made a foray into
the deepwater segment with a long
term co-operation agreement with
McDermott International to develop
cost-effective solutions for subsea
projects off the east coast of India.
The Consortium of McDermott
and LTHE bagged an offshore
contract for development of ONGC’s
Vashishta and S1 deepwater fields
involving supply and installation of
subsea structures in the seabed at
water depths ranging from 200 to
700 metres.
During the year, the business also
secured an EPCI contract from
ONGC involving new process
platform, well head platform,
topside modifications, associated
subsea pipelines and a living
quarters platform in Bassein Field
off India’s west coast. In consortium
with EMAS AMC, a Singapore based
installation contractor, the Company
has signed a six year Long Term
Agreement with Saudi Aramco,
under which the consortium
will execute offshore projects in
Kingdom of Saudi Arabia. This will
enable the Company to tap the
large value opportunities in Saudi
Arabia over the medium term.
Hydrocarbon Onshore:
The business provides EPC solutions
for a wide range of hydrocarbon
projects covering Refining,
Petrochemical, Fertiliser (ammonia
& urea complexes), On-shore Oil
& Gas Processing plants, and cross
country pipelines.
FCC reactor regenerator section for IOCL at its Paradip Refinery.
The business has a track record of
successful simultaneous execution
of multiple mega projects having
diverse technologies from process
licensors like UOP, Axens, Haldor
Topsoe, CB&I Lummus, Black &
Veatch, Ortloff, ExxonMobil, BOC
Parsons, Invista & Davy Process
Technologies. The vertical’s in-house
Engineering Centres along with joint
venture companies – L&T-Chiyoda
Limited for onshore engineering and
L&T-Gulf Private Limited for Pipeline
engineering enable the vertical to
offer complete spectrum of FEED,
process and detailed engineering to
clients. The Company’s subsidiary
Larsen Toubro Arabia is registered as
In-Kingdom EPC (‘IK-EPC’) company
in Saudi Arabia and addresses
onshore In-Kingdom opportunities.
The business has executed Lump-
Sum Turnkey(LSTK) projects in
on-shore Oil & Gas Processing,
Refinery & Petrochemical
applications for various Indian oil
majors like IOCL, MRPL, ONGC,
OMPL, BPCL, HPCL, Reliance
Industries etc., as well as fertiliser
companies like NFL, GNFC, RCF and
others. In recent years, the business
has also diversified into related areas
like Cryogenic Terminal projects,
LNG tanks and Regasification plants.
central Oman, to overcome pressure
depletion and maintain potential to
sustain production.
Internationally, the business group is
prequalified by major international
oil & gas producers such as Saudi
Aramco, Kuwait Oil Company
(KOC), Kuwait National Petroleum
Company (KNPC), SOCAR,
PETRONAS, CNPC, Dragon Oil in
Turkmenistan, Lukoil in Uzbekistan
and Sonatrach in Algeria. It has a
successful track record of project
execution with international
bellwethers like Abu Dhabi Gas
Industries (GASCO), Petroleum
Development Oman (PDO),
Petronas, Chemanol, KNPC, etc.
During the year, the business has
received an EPC contract from
Gujarat State Fertilisers & Chemicals
Limited for setting up 40k MTA
Melamine Plant at Vadodara using
process technology from Casale
SA. Internationally, the business
has bagged twin EPC orders from
Petroleum Development Oman LLC
(PDO) i.e. Saih Nihayadah Depletion
Compression Phase 2 & Kauther
Depletion Compression Phase 2 in
Hydrocarbon Construction
Services:
The vertical renders turnkey
construction services for refineries,
petrochemicals, chemical plants,
fertilizers, gas gathering stations,
crude oil & gas terminals and
underground cavern storage
systems for LPG and cross country
oil & gas pipelines.
The vertical’s major capabilities
include heavy lift competency,
advanced welding technologies
and Quality systems. The business
has also invested in strategic
construction equipment, a range
of pipeline spread equipment,
automatic welding machines and
other plant and machinery for
electro-mechanical construction
works. The business has executed
projects for major private sector
customers like Cairn Energy,
Reliance Industries, HPCL Mittal
Energy as well as major oil PSUs
like BPCL, IOCL, ONGC and
international customers like
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Abu Dhabi Company for Onshore
Oil Operations (ADCO), Abu Dhabi
Oil Refining Company (TAKREER).
The Company’s country specific
joint ventures with local partners
render construction support to
international onshore projects –
Larsen & Toubro Electromech LLC
in Oman, Larsen & Toubro ATCO
Saudia LLC in Saudi Arabia, Larsen &
Toubro Kuwait Construction General
Contracting WLL in Kuwait.
During the year, the business
received an order for construction of
onshore Gas Pipelines & Associated
facilities including Pipe-laying works
in western part of India.
Hydrocarbon Modular
Fabrication Services:
The Modular Fabrication Services
vertical offers comprehensive
Engineering, Procurement,
Fabrication (EPF) modular
solutions primarily in oil & gas and
petrochemical sectors, and renders
fabrication support to offshore and
onshore verticals. The vertical’s two
strategically located state-of-the-art
fabrication facilities in India, ensure
round the year delivery of process
platforms, wellhead platforms,
modular structures, heavy jackets
and oil rigs. The Hazira yard near
Surat caters to the west coast
of India and Kattupalli yard near
Chennai caters to the east coast
of India and South East Asia. The
Company’s Oman subsidiary caters
to opportunities in Middle East
arising from UAE, Oman, Qatar
and Saudi Arabia. The three yards
altogether have a total fabrication
capacity of about 150000 MT per
year.
During the year, the business has
received a number of orders for
fabrication and supply of Piping
systems, Manifold Skids, etc. for
supply to international locations
ranging from Middle East to the
Americas.
Hydrocarbon Engineering
Services:
The Engineering Services vertical
offers comprehensive solutions
covering the entire spectrum of
engineering across the oil & gas
value chain, from two Centres
of Excellence within India: the
Technology Centre in Mumbai and
the Engineering Centre at Faridabad
near Delhi within the National
Capital Region (NCR).The Mumbai
Centre primarily focuses on Front
End Engineering Design (FEED),
advanced engineering solutions,
specialised studies and engineering
for special applications (such as
reformers, cryogenic systems
and modular solutions) while the
Faridabad Centre specialises in a
broad range of detailed engineering
and project management functions.
3-D CAD model of a petrochemical complex executed by L&T Hydrocarbon Engineering.
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The Engineering Services vertical
has a large resource pool of over
3.5 million engineering man hours.
A large portfolio of industry-
standard software tools, robust
IT infrastructure and in-house
R&D facility further augment
its capabilities. Benchmarked
through leading certification
and accreditation systems, the
engineering work processes offer
consistent product quality with
on-time delivery. Backed by decades
of experience and rich domain
knowledge, the team is geared to
provide value-added services to
customers across the hydrocarbon
sector.
Business Environment:
The volatility and sharp fall
in crude oil prices during the
year created an environment of
investment uncertainty for the
entire hydrocarbon industry, with
international offshore segment
being affected the most. New field
development plans were deferred
and most of the private sector
players announced reduction
in capex spends. This shrinkage
of market opportunities is less
pronounced in the Middle East.
Gas-based projects have been
relatively less affected by the
decline in oil prices and national
oil companies continue to tender
these type of projects. However,
there is an increasing thrust on
local ‘in-country’ value add by
governments and national oil
companies.
In the domestic sector, the
government announced a new
Hydrocarbon Exploration &
Licencing Policy (HELP) providing
for unified open acreage licensing
policy, i.e. allowing producers
to exploit conventional and
unconventional hydrocarbons (CBM/
shale/hydrates) under a single
license. Simultaneously, a new gas
pricing formula was announced
providing for market linked prices
for deepwater & Ultra deepwater
fields to incentivise exploration
activity. During the year, ONGC
continued its capex projects
notwithstanding the fall in crude
prices. However, predatory pricing
was seen from a few South East
Asian players with idle capacity.
On the flip side, lower crude prices
have led to a boost in refining and
petrochemical expansion plans.
Reduced naphtha and gas prices
have also led to the revival of LNG
Re-gasification Terminal projects &
fertiliser projects, primarily, in the
nature of upgradation and energy
efficiency.
In light of the above challenging
external environment and multiple
headwinds, the business has done
well to maintain order inflow at
previous year levels of approx.
10000 crore.
Significant Initiatives:
Fiscal year 2015-16 has been a year
of transformation and turnaround
for the hydrocarbon business. There
were several top leadership changes
starting with appointment of
Mr. Subramanian Sarma, a veteran
in global oil & gas contracting
industry, as the CEO & MD of L&T
Hydrocarbon Engineering Limited.
A business re-organisation and
transformation plan was unveiled
during the year with a view to
avoid silos, reduce costs, improve
competitiveness and aid profitable
execution.
The entire hydrocarbon business
operations have been re-grouped
as five business verticals with
targeted revenue streams, catering
to global opportunities across
the hydrocarbon value chain,
including creation of two new
verticals, viz., Modular Fabrication
Services & Engineering Services to
provide growth impetus for the
future. Consolidation of erstwhile
geographically dispersed operations
into India-centric verticals has been
accomplished. A new risk/reward
sharing model has been adopted
to create better alignment amongst
verticals and rationalisation of profit
centers. Tie-ups with global majors
are under negotiation to address
Indian deepwater projects, subsea
manifolds, engineering services,
augment utilisation of yards, etc.
Manpower rationalisation and
relocation initiatives are expected
to result in annualised savings of
over 200 crore from 2016-17
onwards. The business development
set-up has been consolidated with
distinct focus groups for product as
well as geographies. The proposal
and estimation group has been
centralised and the estimation
process has been streamlined to
improve bid-win ratio. Initiatives
have also been undertaken for
consolidating key resources to
create centres of excellence
and identifying and addressing
leadership gaps. As a result of these
initiatives, the hydrocarbon segment
is poised to improve its bottom-line
significantly from 2016-17 onwards.
Risk Management & Internal
Controls:
Pro-active Risk Management has
been identified as a key strategic
initiative to ensure sustainable
183
growth. Risk Management is
an integral part of the overall
governance process to identify,
segregate, mitigate, control and
monitor various risks at business,
individual bid and operational
levels. The risk management policy
and guidelines incorporates global
best practices and procedures
which enables building the ability
to anticipate challenges and
opportunities for achieving strategic
objectives.
The major risks such as limited
investments due to falling oil
prices, onerous contract terms by
client, tight schedule, stringent
localization requirements, forex
exposure, etc. are mitigated through
specific actions like operational
excellence initiatives, alliances,
cost optimisation, improved
customer relationship, compliance
with stringent HSE standards,
proactive forex hedging, strong
contract & claims management and
identification of key personnel and
talent at the pre-bid stage.
All projects undergo a structured
pre-bid risk review by the Apex Risk
Management Committee (ARMC)
at business and at corporate level
as per well-defined authorisation
limits. This process involves a
detailed assessment of risks and
deliberation on mitigation measures
by the ARMC. Periodically risk
reviews are conducted for ongoing
projects. Project managers/
selected project team members
undergo a certified Risk Induction
Programme conducted by ECRI
(Engineering & Construction Risk
Institute) on a continuous basis to
become acquainted with industry’s
best practices.During the year,
a dedicated Business Assurance
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Group has been established to
institutionalise execution risk
management on a pro-active basis.
multiple in-house IT capabilities for
managing various ‘Hire to Retire’
processes.
A strong Internal Control
framework is an important part
of operations and corporate
governance. The management
has established internal control
systems commensurate with the
size and complexity of the business.
The internal control manual
provides a structured approach
for identification, rectification,
monitoring and reporting of gaps
in the internal control systems and
processes. The Group follows well
documented Standard Operating
Procedures (SOPs) and the operating
effectiveness of various controls is
periodically tested and deficiencies,
if any, are promptly rectified.
During the year, an in-depth
exercise for evaluating the adequacy
of Internal Financial Controls and
their Operating Effectiveness was
undertaken, as per the provisions
of Companies Act 2013. This
activity included understanding and
testing of Internal Financial Controls
and evaluating its operating
effectiveness based on the assessed
risk factors.
Human Resource Development:
The Group has a set of unique
mix of experienced professionals
and young dynamic passionate
individuals working in various
disciplines. HR efforts are targeted
to ensure that the right talent is
sourced, selected, trained and are
deployed across the organisation.
In line with the business
transformation, HR has also initiated
its transformation exercise. The
Group leverages on technology
and automation by using SAP &
The specially designed ‘Seven Step
Leadership Development Programs’
for high potential employees
strengthen the leadership pipeline
of the organisation at various
levels. The Group utilises various
state-of-art training infrastructure
and resources like L&T Leadership
Development Academy, Institute
of Project Management and
Technical training centres to train its
employees on Project management
skills, functional and leadership
competencies. The business also has
tie ups with premier institutes like
IIMs, XLRI and IITs for conducting
‘Core Development Programs’,
EMBA, M. Tech and e-learning
programmes (Harvard, DDI and
other certification programme) at
regular intervals.
The Group continues to foster
a high performance culture
by recognising and rewarding
good performers, and providing
them with career development
opportunities. The CEO &
MD periodically interacts with
employees through various forums
like ‘Town Hall’, webcast, video
conferencing and emails. Various
other interventions and initiatives
like ICONS, Long Service Awards,
Team Building Workshops, non-
monetary recognition events, etc.
are periodically undertaken to
enhance employee motivation.
Health Safety Environment (HSE) &
Sustainability:
Health, Safety & Environment is the
cornerstone of the Group’s business
philosophy. The business strives
for continuous improvement for
the protection and development of
health, safety, and environmental
assets of its employees and
stakeholders. During the year, five
projects were safely commissioned
without any significant incidents.
The business actively participated in
Global HSE Conference and Golden
Jubilee celebration of Directorate
General, Factory Advice Service and
Labour Institutes (DGFASLI).
During the year, as a part of
Corporate HSE Plan, cross-functional
HSE audits were initiated across
all business units. All HSE Systems
and procedures were IT enabled
to make them more user friendly.
Senior Management involvement
and visibility was reinforced through
systematic senior management
site safety observation. To spread
safety awareness, various theme
based campaigns were observed
on various important dates during
the year. Lessons learnt during
project execution were shared
throughout the organisation by
way of well documented HSE
Learnings and HSE alerts. Various
HSE training programs were held,
and motivational schemes were
instituted.
The Company has released its
Sustainability Report – “Journey
Begins” in December 2015 which
covers various initiatives taken
across the Company and highlights
need to enhance performance
across all sustainability parameters
– safety, energy, water conservation
and productivity. As a responsible
Corporate Citizen, the Group is
aware of its responsibility towards
social upliftment which is an integral
part of the corporate culture. The
Group’s CSR Framework lays down
the principles and programs for the
community at large, in accordance
with section 135 of the Companies
Act 2013. In-line with Group’s
theme “Building India’s Social
Infrastructure” L&T Hydrocarbon is
committed to implementing projects
that will contribute to the quality of
life, including schools, hospitals, skill
training institutes, water supply and
distribution and sanitation facilities.
During the year, the business won
several national and international
accolades from eminent institutions
and clients like National Safety
Council – Maharashtra Chapter,
British Gas, Petronas Carigali
Myanmar, Frost and Sullivan (F&S)
& The Economic Times India
Manufacturing Excellence Award
(IMEA).
Outlook:
Oil prices are expected to hover
in the range of USD 40 to 50 per
barrel in the near future. In the
900 TPD Ammonia plant modernisation project for National Fertilizers Limited - one of many onshore projects executed on a License+EPC basis.
185
domestic offshore sector, ONGC has
indicated that it will be investing
close to USD 5 billion in next 4 years
on development of its deepwater
field KG/98-2 on the east coast of
India. This will provide significant
opportunities to the Group’s
offshore and fabrication verticals
over the medium term, given its
strategically located Kattupalli yard
on the east coast and the recent
tie-up with McDermott to develop
cost effective subsea solutions.
The Long Term Agreement signed
with Saudi Aramco is expected to
provide large offshore project wins
in Middle East in the near future.
The Indian Government has
recently announced that Bharat
Stage-VI (BS-VI) emission norms
would be enforced from April 2020
which is a year earlier than the
planned roll-out target of 2021.
The Government has decided to
altogether skip Stage-V and directly
adopt BS-VI which are equivalent
to Euro 6 norms. To meet these
norms, the Public Sector refineries
will need to spend an estimated
68000 crore on upgradation
projects, providing visibility of order
prospects for the next 2 years. The
Government has also cleared a
comprehensive Urea Policy 2015
which will incentivize indigenous
production of urea and promote
energy efficiency by encouraging
units to adopt the latest technology.
Under the policy, the Government
has also announced revival of closed
Public Sector urea units having
capacity of 26 lakh tonnes located
across the country like Talcher,
Ramagundam, Barauni, Gorakhpur,
etc. Private sector companies are
also expected to initiate brownfield
expansion projects which will
provide opportunities over medium
term.
In the Middle East, gas processing
projects are expected to be awarded
in UAE, Oman and Saudi Arabia.
Large value cross country crude
oil & gas pipeline prospects are
expected in Saudi Arabia, Kuwait
and Oman. Mega Integrated
Refining cum Petrochemical Projects
are expected in Saudi Arabia, and
fertiliser projects in Oman. Further,
with the prospective moderation of
sanctions, Iran is expected to offer
good growth opportunities.
Habshan-Ruwais-Shuweihat gas pipeline project built on an EPC basis for GASCO, Abu Dhabi.
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Information Technology Business
L&T Infotech’s global headquarters in Mumbai. The Company’s solutions focus on the convergence of the physical and digital worlds, improving efficiencies for its clients.
Overview:
The Group’s Information Technology
business housed in L&T Infotech
Limited (‘L&T Infotech‘) forms part
of the IT & Technology Services
segment of Larsen & Toubro.
L&T Infotech is one of India’s
global IT services and solutions
companies. In 2015, NASSCOM
ranked the Company as the sixth
largest Indian IT services company
in terms of export revenues. The
company was amongst the top 20
IT service providers globally in 2015
according to the Everest Group’s
PEAK Matrix for IT service providers.
Its clients comprise some of the
world’s largest and well-known
organisations, including 49 of the
Fortune Global 500 companies.
L&T Infotech offers an extensive
range of IT services to its clients
in diverse industries such as
banking and financial services,
insurance, energy and process,
consumer packaged goods, retail
and pharmaceuticals, media
and entertainment, hi-tech
and consumer electronics and
automotive and aerospace. Its range
of services includes application
development, maintenance and
outsourcing, enterprise solutions,
infrastructure management
services, testing, digital solutions
and platform-based solutions.
The company serves its clients
across these industries, leveraging
187
its domain expertise, diverse
technological capabilities, wide
geographical reach, an efficient
global delivery model, thought
partnership and ‘new age‘ digital
offerings.
L&T Infotech was incorporated
in 1996 and is headquartered
in Mumbai, India. It leverages
the strengths and heritage of
its promoter. The L&T Group
provides access to professionals
with deep industry knowledge in
the sectors in which the Company
does business. L&T Infotech has
also inherited from L&T group its
corporate and business culture and
corporate governance practices,
which places the Company in good
stead in relation to its business.
In addition, it benefits from the
commonality of business verticals
with its promoter.
The Company’s growth has been
marked by significant expansion of
business verticals and geographies
in which it does business. Besides
India, it provides services globally
from North America, Europe, Asia
Pacific and the rest of the world. As
of March 31, 2016, the Company
has 22 Delivery Centres and 44 sales
offices globally.
The Company serves clients across
verticals such as BFS, Insurance,
Energy, CPG, Retail & Pharma,
Hi-Tec, Media and Entertainment
and Audit Aero & Others.
Business Environment:
The Global IT-BPM Market as noted
by NASSCOM saw increasing
number of firms using custom
application development as a means
to enhance customer service with
tailored solutions. The need to
differentiate their company and
188
competitors and the need to comply
with regulations and industry
mandates are driving growth in
the segment. CADM services are
using cloud computing and mobility
considered as a strategic tool to
enhance business processes and
improve customer satisfaction and
acquisition. SMAC adoption across
industries became all pervasive
driving growth in IT services.
The year was marked by spinoffs,
buyouts, divestitures and focused
acquisitions among service providers
which helped bolster the bottom
line for the vendors and their
customers. Technology M&A deals
in volume registered a record
high of USD 713 Bn. in 2015 on a
global basis. Driven by increased
competition, some other firms took
the restructuring of businesses route
to improve profits and reduce costs.
Significant Initiatives:
• Focus on emerging technologies:
L&T Infotech has established
business relationships with
a number of players in the
digital space and, in addition
to its existing capabilities, such
relationships will further enable
it to develop sophisticated
ecosystems along with its partners
as a value-added proposition to its
clients. Further, it plans to invest
seed capital in startups, which will
allow them to benefit from their
innovation capabilities and digital
offerings. The Company believes
this will help them enhance their
digital offerings and in turn, give
a platform and opportunity to
scale up to startups. In addition,
as part of its strategic focus in
India, it is inter alia positioning
itself to cater to ’Smart Cities‘
opportunities that it has identified
therein.
L&T Infotech regularly tracks new
technologies, industry segments
and market trends in the IT
solutions market and believes
that digitalisation will increasingly
become systematically critical in
the future. It looks to assist its
clients to ‘engage the future’
through its focus on emerging
technologies. The Company
invests in new technologies
and tracks new business trends,
and believes that every industry
will increasingly adopt digital
as a key component of its
overall IT solutions and services
expenditure. It defines digital
business as solutions and services
offered to clients through the
fusion of ‘new age’ technologies
for disruptive business
transformations, including as
part of its Thought Partnership®
program. Such transformations
are enabled by creating innovative
business models leading to
enhancing client experiences and
greater operational efficiencies.
Over the past few years, the
Company has aligned its areas
of expertise and have created
focused initiatives in developing
capabilities in emerging
technologies, which it eventually
intends to offer under a specific
brand. The Company’s investment
in the digital practice is focused
on providing its clients with
a competitive edge, as well
as giving them a competitive
advantage in the market. Its
digital assets have received
multiple industry recognitions.
• Focus on a targeted client
portfolio and higher total contract
values: L&T Infotech continues
building long-term sustainable
clients inter alia using application
development, maintenance,
support and testing services,
which collectively help its
clients automate their business
processes through customised
service delivery plans that are
aligned with their business
needs and objectives. Similar
to its approach in relation to
emerging technologies, the
Company has agreements with
a number of players in delivering
its IMS service offerings in a
technologically-agnostic way.
This approach is beneficial to
clients and helps establish its
credibility with them with a view
to eventually becoming their
thought partners and long-term
service providers. In addition, the
Company is currently looking for
strategic acquisition opportunities
in relation to its IMS business. It
is specifically looking to acquire
a complementary business,
technology, service or product
that can provide it with access to
new markets, capabilities or assets
in relation thereto.
• Expand geographical presence:
L&T Infotech markets and
distributes its solutions directly
through its global delivery model.
It has historically been dependent
on North America and Europe
for most of its revenues. While it
intends to continue expanding its
presence in the United States and
Europe, it also plans to expand
its geographical reach in other
markets that it has identified
as having potential, including
Australia, Singapore, Japan, South
Africa, India and the Middle East.
It is in the process of augmenting
its teams in these markets to
189
L&T Infotech’s facility in Bengaluru.
business relationships with
its clients to generate greater
revenues. This involves inter
alia increasing the scope of
engagements with its existing
clients; selling additional services
to them; deploying project
managers, delivery specialists and
other professionals to provide
value-added business solutions;
and eventually become a thought
partner with them in terms of
their existing and future business
needs by identifying priority
solutions in consultation with
industry experts.It has a track
record of high client retention
and as its client relationships
matures and deepens, it seeks
to expand the scope of services
offered to those clients to achieve
incremental revenue growth. Its
ability to establish and strengthen
client relationships and expand
the scope of services it offers to
clients will help grow its revenues
and profits.
The Company is targeting clients
who have the potential to offer
opportunities with large total
contract values. It intends to
originate large engagements by
either identifying opportunities
with its client accounts or by
targeting new clients whose
existing engagements with IT
vendors will be up for renewal.
It plans to achieve a higher
value client portfolio by focusing
on annuity applications and
infrastructure management
service deals, which tend to be
long-term in nature.
• Expand focus on infrastructure
management service (IMS)
offerings:
L&T Infotech’s IMS service
practice offers a wide spectrum
of end-to-end services covering
IT infrastructure consulting,
design, managed services,
migration services, operational
support, desktop support, and
Cloud enablement, hosting and
migration. It aims to leverage
its ‘Business 1st™’ approach
with respect to IMS, which
provides extensive services to
further explore the opportunities
therein.
With respect to the Company’s
operations in South Africa, the
Nordic region and the Middle
East, the Company views these
regions as gateways to the rest
of Africa, Eastern Europe/the
Baltic region and the Middle East/
North Africa region, respectively.
As such, it intends to allocate
resources to these markets
not only for pure-play market
opportunities therein, but also
as stepping-stones to other
client opportunities that it can
identify through greater regional
experience, expertise and client
referrals. viz., in South Africa, it
recruits local nationals to assist
in market penetration efforts, in
addition to complying with local
regulatory requirements. In the
Middle East, the Company intends
to leverage the strong presence of
the L&T Group, which is engaged
in the oil and gas, construction
and transportation sectors.
The Company has identified
Germany, France and the
Nordic region as important
markets going forward and
it would like to enhance its
capabilities and address gaps
in language capability, industry
expertise, technical expertise and
geographic coverage in these
countries. As such, it is also
currently contemplating pursuing
strategic acquisitions in these
markets.
It believes that the foregoing
initiatives will allow them to move
up the value chain with respect to
services offered.
• Focus on greater internal
operational efficiency:
L&T Infotech plans to continue
developing and investing in
frameworks, accelerators,
in-house proprietary solutions and
customised software processes to
drive efficiencies internally. It also
plans to increase its profitability
by streamlining cost structure
with a focus on high employee
utilisation and optimising resource
mix. To this end, business process
digitalisation is important in
streamlining cost structure to
make them more operationally
efficient. It plans to automate
various project delivery processes
as well as internal IT service
processes to enhance human
productivity and once various
tools are developed in relation
thereto, it plans to institutionalise
their usage across its business
units, which will provide them
with the appropriate business
platform to be more efficient.
The company also plans to
introduce specific business
process digitalisation initiatives in
relation to its business verticals
and service lines for them to
realise operational cost savings.
Outlook
Enterprise applications are becoming
increasingly consumer oriented with
mobile and ‘on-the-go’ applications’
delivery mechanism shifting
to cloud-based environment.
Demand for migration, porting
and re-platforming of traditional
on premise application to SaaS
from both clients and ISVs provide
significant opportunity. Agile testing
is growing in acceptance even
though it is yet to fully mature.
Crowd-sourced testing is gaining
popularity and testing automation
as well as data management are
adapting to the new technology
demands. Key drivers for third party
and GICs are cloud based testing,
IP-led testing, testing-as-a-service,
automated testing and testing in
domain-specific niche services along
with transformational programs
using SMAC and IoT.
(Source: NASSCOM Report)
With the appropriate mix of
initiatives in emerging technologies,
client focus and geography
expansion, L&T Infotech is optimistic
of its prospects in the near to
medium term.
190
Technology Services Business
Headquartered at Knowledge City, Vadodara, L&T Technology Services has delivery centres in Europe, USA and India. It helps clients gain the competitive edge by
building smart products, enabling smart manufacturing and offering smart services.
Overview:
A leading player in the global
Engineering, Research and
Development (‘ER&D’) space, L&T
Technology Services Limited (LTTS)
is a wholly-owned subsidiary of
Larsen & Toubro Limited and forms
part of Group’s IT & Technology
Services business segment. With
L&T’s engineering heritage, the
Company provides, ‘one-stop
shop‘ to its customers across the
product engineering life cycle from
product conceptualisation, design
and engineering to prototype and
certification support services. It has
long term engagements with a large
number of marquee clients across
multiple industry segments like
Industrial Products, Medical Devices,
Transportation, Telecom and Hi-Tech
Computing and Product Software
and Process industries. It also has
differentiated offerings in the
Plant Engineering and Sustenance
Services which is unique when
compared with the other Indian
ER&D service providers.
The Company is investing
significantly in new age
technologies like Engineering
Analytics, Digital Engineering and
Internet of Things (IoT). A well-
defined Digital Engineering strategy
leverages its unique strengths along
with best-of-breed partners and
delivers differentiated solutions
for building Smart Products, Smart
191
Manufacturing and enabling
Smart Services. As part of this,
the Company has developed IP led
solutions like UBIQWeise, i-BEMS
that have been launched in the
global market. The Company has
also filed around 260 patents,
some owned by itself and some
co-authored with its customers.
L&T Technology Services has a
global reach to its customers
through its 12 delivery centers and
25 sales offices. It also has set up
domain specific labs that replicates
customer’s work environment and
works closely with the customer
R&D wings on product innovation
through technology infusion. Its
global delivery model of Offshore,
Nearshore, Onshore and Client
Proximity centres, combined with
these labs, provides customers with
high quality solutions in reduced
timeframes that deliver operating
efficiencies and better value for its
shareholders.
With around 19% CAGR (Financial
year 2012 to 2016) and over 170
global customers, the company
added 17 new clients to its portfolio
while maintaining focus on
expanding business among existing
clients. Of its total client base, 53
clients are Fortune 500 companies.
In the Global R&D Service Providers
Rating 2015, Zinnov Consulting
has placed L&T Technology Services
in the leadership zone in eleven
categories. The Zinnov survey also
placed eight of the Company’s
verticals in the leadership
zone – Automotive, Aerospace,
Telecommunication, Energy &
Utilities, Industrial Automation,
Transport, Construction & Heavy
Machinery and Medical Industries in
192
addition to technology horizontals
like Mechanical Engineering Services
and Embedded Systems.
Business Environment:
India as an engineering services
destination has witnessed
enormous growth and has
become the global hub for
outsourced engineering services.
As per NASSCOM, the Engineering
Research & Development spend
has seen a double-digit growth
in recent times and is expected
to touch total spends worth
USD 850-900 Bn. with exports
worth USD 30-38 Bn. by 2020.
Further, the addressable market for
ER&D Globalisation and Services
is expected to increase at a CAGR
of 4.3% till 2020. Engineering
innovation in digitisation, product
life-cycle management, and value-
engineering services is creating a
plethora of new opportunities and
business models across industries.
As technologies converge and find
applications across industries, some
mega-trends in the ER&D space
have emerged. These include:
• Smart Services, Smart Products &
Smart Manufacturing - Condition
based Monitoring, Remote
Guided Services and Smart
Wearables, Smart Home Products,
Connected Vehicle, Industrial IoT,
Augmented Reality and Smart
Supply Chain and Logistics.
• Energy & Efficiency - Power
Electronics, Energy Management
and WAGES (Water, Air, Gas,
Electric, Steam) Engineering.
• Imaging & video - Imaging
Algorithms, Edge Detection, Video
Surveillance and ADAS (Advanced
Driver Assistance Systems).
Significant initiatives:
The Company has been agile in
adopting new technology trends
and addressing business challenges
of customers. This has resulted in a
faster growth trajectory compared
to peers in the engineering services
industry. Investment in new
technologies and labs, account
mining, operation improvement
programs, global delivery models
and continued focus on the multi-
vertical strategy have proven to be a
great success.
LTTS is addressing opportunities
in the marketplace through a
multi-vertical strategy. Key initiatives
include:
• Expanding Services footprint:
While the Company is focused on
growth verticals like Automotive
and Consumer Electronics, it is
creating competencies in next-gen
Computing and ISV which will
give it a scalable growth. It is
tapping the enormous market
potential in digital engineering
and green energy that are driving
usage of new age technologies
across industries.
• Investing in new Lab facilities:
In line with its philosophy to
invest in state-of-the-art for
concept design and innovation,
the Company has set up a number
of cutting edge labs including
Smart Manufacturing Lab, Global
Internet of Things (IoT) Solutions
Centre and Material Testing Lab at
its facilities.
• Expansion to new geographies
and investments in
Infrastructure: The Company
has established new onshore and
nearshore delivery centres in the
US and the Middle East.
Engineering services that enhance efficiency, while reducing time-to-market and costs.
Key HR initiatives: Employees
are at the heart of L&T Technology
Services’ success. The Company has
partnered with the Great Place to
Work ™ institute to transform the
workplace and create the perfect
culture in which big ideas flourish.
The Company has also initiated
’Techleap’ a technical career path
program for encouraging in-house
engineering talent.
With the belief system that reflects
‘People are our greatest assets’, HR
practices are focused on creating
performance driven environment
where innovation and collaboration
is encouraged, performance is
recognised and employees are
motivated to realise their potential.
HR is at the core of the Company,
influencing change, building culture
and developing capabilities. The HR
processes are continuously evolving
and aligning with the changing
business requirements. The HR team
is structured into specialised units to
respond quickly to the needs of the
organisation.
The employee strength of the
Company has grown from 9327
employees in fiscal year 2015 to
9406 employees in 2016. The
Company has one of the lowest
attrition rate in the industry at
around 12%.
In the area of talent retention,
there is a relentless effort towards
developing competencies in
technology, domain and processes
aligned to customer requirements
that helps the Company’s employees
to stay relevant and realise their
potential. Continuous learning
initiatives include an Online
Learning Portal and Leadership
Development Programs to groom
potential leaders right from
operational to strategic levels. The
state-of-the-art learning centre at
Lonavala specialises in personal
leadership, building organisational
knowledge and ethical business
practices. This has created a rich
leadership pipeline that supports the
fast paced business growth of the
company.
Awards and Accolades in 2015 – 16:
• IT: EMC Transformation Award
and ‘Dataquest Business
Technology award‘.
• The Golden Globe Tigers Award
for Excellence in Training &
Development.
193
• Recognised by Gartner among
‘Key vendors in the IoT Embedded
Space‘.
• ‘Certificate of Excellence’ from
NASSCOM.
• Quality Excellence for Product
development at the World Quality
Congress.
• Wins Supplier of the Year Award
from UTC Aerospace Systems;
also wins ÚTC Supplier Gold title.
• Celebrates a decade of strong
partnership with Danaher.
• “LTTS’ testing framework is
a unique offering to test the
interoperability of multiple
systems”: IDC.
• Zinnov says, ‘most important
aspect of LTTS’ success story
is nurturing curiosity towards
technology innovation within
the organisation and among
customers‘.
• Company has ‘very diversified
portfolios among the service
providers in terms of industry
verticals, service offerings and
geographical spread‘: ARC
Advisory.
Outlook:
With growth of ‘IoT’ in both product
and plant segments, the market
offers huge opportunities for Smart
Products, Smart Manufacturing
and Smart Services. This market
is to set to reach USD 1.7 Tn. by
2020 according to research firm
IDC. With the investments LTTS is
making in this space, it is all set to
tap and capture this market and
be one of the leading engineering
service providers globally. With its
marquee client base across industry
segments, the Company is confident
of continuing to grow at a robust
pace and increasing its market share
across geography and industry
segments.
194
Financial Services Business
L&T Financial Services’ offerings span the geo-socio-economic spectrum and comprise four core business groups – Retail Finance, Wholesale Finance, Investment
Management and Wealth Management.
The Financial Services business
segment comprise retail and
corporate finance, housing finance,
infrastructure finance, investment
and wealth management business
carried through the subsidiaries
of L&T Finance Holdings Limited.
The Financial Services business
also includes general insurance
which is housed in a wholly-owned
subsidiary, L&T General Insurance
Company Limited.
L&T Finance Holdings
L&T Finance Holdings’ business
organised under verticals structured
as the Retail and Wholesale
Platform, Investment Management
and Wealth Management business,
is carried out through its wholly-
owned subsidiaries.
The Management’s focus is to
achieve a healthy return on equity
(ROE) on a sustainable basis. It has
been a conscious decision of the
Management to have diversified
businesses to protect the overall
profitability from the cyclicality
of individual businesses. Hence,
the Company has focused on
comprehensive product offerings.
Some of these products have been
developed as flagship products.
While creating the product-mix,
three parameters are taken into
account: profitability, scalability
and the Company’s ability to
have clear market advantage in a
195
particular product segment. These
three parameters influence the
ultimate choice of the Company’s
product offerings, for which it has
earned admiration in the wider
marketplace.
Business Environment
Retail Platform – Retail,
Corporate & Housing Finance
Business:
The business of the retail platform
including retail, corporate and
housing finance businesses is
carried out by the Company’s
wholly-owned subsidiaries, L&T
Finance Limited, Family Credit
Limited and L&T Housing Finance
Limited. These comprise loans
for income generation as well
as for the purchase of consumer
assets, working capital loans for
SMEs, term loans for medium
and large companies, loans under
micro-finance, loans for purchase of
homes and loans against property.
The product portfolio under the
Retail Platform includes:
Mid and
Large
Corporations
Loans and
leases
Loan against
securities
Housing
Finance
Microfinance
Home loans
Joint liability
loans
Micro
individual
loans
Loan
against
property
Loans for
construction
Consumer
and Auto
Loans
Farm
equipment
loans
Two-wheeler
loans
Small
& Light
Commercial
Vehicles’
loans
(S&LCV)
Car loans
Small and
Medium
Enterprises
Supply
chain
finance
Term loans
Warehouse
Receipt
Finance
Commercial
assets (CE &
CV) loans
The Company has been realigning
its portfolio towards B2C businesses
as compared to B2B businesses. The
Company believes that through this
196
shift, it will increase yields while at
the same time dispersing the risk
that is inherent in B2B businesses of
being lumpy.
100% –
80% –
41%
36%
60% –
40% –
40%
42%
27%
40%
8%
5%
35%
34%
16%
39%
4%
11%
2%
12%
9%
8%
10%
24%
19%
17%
1%
11%
3%
2%
1%
16% 19% 19% 23% 25%
1%
20% –
0% –
–
–
–
– –
–
–
FY11
FY12
FY13
FY14
FY15
FY16
Rural Products
MFI
Housing
Mid-Market+SME
2W/Cars
CE/CV
During the year 2015-16, with
deficient monsoons and mounting
delinquencies, the tractor market
posed severe challenge to growth.
Although the tractor market shrank
by 11%, the Company’s market
share decreased by 3%. Despite
a strong tie-up with notable
manufacturers, the slowdown in the
tractor market let to this decline in
market share. To counteract this,
the Company focussed on financing
pre-owned tractors and refinancing
opportunities. This constituted more
than 15% of disbursements during
the year. In the area of two-wheeler
loans, while the industry volume
increased by 3% during 2015-16,
the Company’s volumes grew by
14%, leading to an increase in its
market share. This performance was
facilitated by better penetration
in existing locations and active
efforts to extend reach to new
markets. In a strategic move, the
Company de-emphasised its focus
on S&LCV and car loans. Given the
extant mismatch in the risk-return
paradigm of these products, the
Company believes that they are not
suited to management’s vision of
delivering superior return on equity
to shareholders.
The SME segment, especially the
supply chain segment, has been
fast emerging as another flagship
segment for the Company. During
the year under review, the Company
undertook appropriate investment
in technology for this business to
L&T Housing Finance fulfills the desire for home ownership in 44 markets across the country.
and financing structure. The FAS
Group, which has been consistently
stepping up the range and depth
of offerings to clients, works in
close coordination with the Debt
Capital Market (DCM) Desk. The
latter provides structured funding
solutions to select clients in the
form of innovatively structured Non
Convertible Debentures (NCDs)/
Bonds that are initially subscribed
in full by one or more entities
within the Wholesale Platform and
subsequently sold down in smaller
tranches to eligible investors. During
the year, the FAS Group and DCM
Desk together generated an income
of 100 crore by way of fees and
capital gains.
The Wholesale Platform team,
which possesses the requisite skill
set and experience, has over the
years, honed its project appraisal
skills such that it has emerged as a
preferred choice for mid-sized infra
players – particularly those setting
up solar and wind power projects.
Its robust, internally developed
risk assessment framework
enables the Platform to offer to
underwrite entire term debt needs
of meritorious renewable power
projects. Given that implementation
timelines for such projects are rather
fine, this offering of one-stop-debt
funding solution – with suitably
structured tenors, reflective of
realistic assessment cash-flows –
enables the developers compress
their project gestation periods
and thus enhance their equity
returns. Similarly, under L&T IDF’s
lead, successfully operating road
projects are offered optimally priced
refinance packages – often having
extended tenures that are based
on conservative estimates of the
(residual) economic life of projects.
197
Our micro-finance business has uplifted and empowered over 8,00,000 rural women.
be able to deliver an enhanced
customer experience. It has already
considerably advanced its credit
delivery processes by developing
parameterised lending models that
ensure a fast turnaround time.
In the mid and large corporate
segment, the Company adopted a
selective strategy for its corporate
loans and leases and offered credit
only to well-rated companies with
tight monitoring of loan usage.
In the Housing Finance
segment, the Company has
undertaken several initiatives with
an objective to diversify distribution
channels, improve customer
experience and overall focus on
process improvement. It also scaled
up the business by increasing
geographical spread as well as
by increasing its market share in
existing markets.
The Microfinance segment is
another flagship business of the
Company. Robust risk control
processes and the ability to
raise liabilities to match growth
aspirations in a timely manner, gives
the Company a unique market
advantage in this segment.
Wholesale Platform:
The Wholesale Platform of the
Company comprises infrastructure
financing and non-infra wholesale
financing through three lending
entities viz. L&T Infrastructure
Finance Company Limited (L&T
Infra Finance), L&T FinCorp
Limited and L&T Infra Debt Fund
Limited (L&T IDF). The Company’s
Wholesale Platform offers both
fund based and fee based products
and services. They are designed to
efficiently meet term finance needs
of infrastructure and industrial
projects/ players in India. The
Financial Advisory Services (FAS)
Group provides advisory services to
customers enabling the raising of
debt and equity capital from market
sources. The team also provides
financial structuring solutions to
customers to optimise their capital
On the assets quality front, the
Wholesale Platform’s management
has remained pro-active in dealing
with the stressed assets portfolio.
However, given the rather slow
economic revival coupled with
the highly leveraged position
of promoters/ borrowers, the
challenges being faced by all
lenders are not expected to abate
in the near term. Nevertheless,
the Wholesale Platform’s on-going
strategy of pursuing resolutions
through closer co-ordination with
both promoters and co-lenders –
such that credit costs are brought
down – will be continued.
The Wholesale Platform has evolved
from being a corporate lender to
a specialised project financier and
focused on operating projects
to balance the overall risk of the
portfolio.
100% –
5%
4%
2%
5%
3%
17%
18%
3%
22%
28%
32%
37%
32%
29%
29%
26%
35%
31%
37%
47%
61%
80% –
60% –
40% –
20% –
0% –
–
48%
27%
21%
–
–
– –
–
–
FY11
FY12
FY13
FY14
FY15
FY16
Operational Projects
Corporate
U / C Projects
Equity & Investments
Investment Management
Business:
The Investment Management
business of the Company is carried
out through L&T Investment
Management Limited (L&TIM), a
wholly-owned subsidiary. During
the period under review, average
assets under management (AAUM)
grew by 15% to 25945 crore for
the quarter ended March, 2016
as compared to 22497 crore for
the corresponding period in the
previous year. This was achieved
through a combination of consistent
fund performance, building scale
in existing product offerings and
improving acceptance in various
distribution channels.
During 2015-16, the Investment
Management business of
the Company continued the
momentum from 2014-15 and
managed to grow at a better
pace than the industry. The
growth was contributed by equity
assets which grew 21% over the
previous year while debt assets grew
at an encouraging 13%.The equity
mix for the company increased to
44% (Equity and Arbitrage) this
year from 42% in the previous
year thereby leading to an increase
in equity market share to 2.59%
from 2.4%. The asset growth and
increase in market share was a
result of strong gross and net sales,
acceptance amongst the investor
community as well as quality fund
performance. The company closed
2015-16 with an overall market
share of 2.01%.
During the year, the Company’s
strategy of building scale in
core funds, both on the equity
and debt side paid rich dividends as
the number of funds with AUM of
more than 1000 crore (ex-Liquid
and Ultra) increased to 7 (5 equity
and 2 debt) from 3 in the previous
year.
Mutual fund investments are subject
to market risks, read all scheme related
documents carefully.
Wealth Management Business:
The Company’s Wealth
Management business is carried
L&T Infra Finance has emerged as one of
India’s leading financiers in key sectors,
including renewable energy.
Consequently, renewable
energy, annuity and toll road and
transmission projects – which
constitute the Wholesale Platform’s
niche business areas – accounted for
a major part of the disbursements
made during 2015-16. Further, the
focus has been on ensuring that
operational projects comprise a
significantly high proportion of total
loan assets so as to contain well the
element of underlying risk in the
portfolio.
Of particular note is the level of new
business done by the L&T IDF during
the year. Its book has recorded a
sharp growth wherein the business
assets as at March 31, 2016
crossed the 2350 crore mark as
compared to a modest 350 crore
as the end of previous year. This
was attributable inter alia to
more number of operational PPP
projects now becoming eligible
to seek assistance from L&T
IDF – consequent to RBI’s decision
to include additional sectors that
can be financed by L&T IDF without
execution of a tripartite agreement.
Notwithstanding this liberalised
regulation, it would be L&T IDF’s
endeavour to ensure an optimal
blend of operational PPP projects
in its portfolio so as to preserve its
AAA rating.
198
out through L&T Capital Markets
Limited – it’s wholly-owned
subsidiary, offering services to
Ultra High Net worth (UHNI) and
High Net Worth Individual (HNI).
The Company is present in eight
locations in India and one in Dubai.
85 experienced and high skilled
relationship managers service clients
on their investment needs across
asset classes and the spectrum of
products in local and international
markets.
The business has been progressing
well led by a robust model built on
the fundamental tenets of client
centricity, intellectual property and
execution efficiency. Average assets
under service for the quarter ended
March 2016 grew to 9315 crore,
accounting for an increase of
33% from 6996 crore for the
corresponding period in the previous
year. The Wealth Management
business has a client base of over
4600 and is operational in Mumbai,
Delhi, Bengalure, Chennai, Kolkata,
Hyderabad, Ludhiana, Ahmedabad,
and Dubai. The Dubai Financial
Services Authority (‘DFSA’) granted
an upgrade from a Representative
Office License to a Category 4
license whereby, L&T Capital
L&T Mutual Fund offers investments
for every kind of customer through a
well-differentiated range of equity
and debt funds.
Markets Limited, DIFC Branch will
be regulated by DFSA to offer
Wealth Management Solutions by
way of arranging deals in credit
and investments, providing advice
on financial products and services,
including equities, debt, structured
products, investments in alternate
asset classes etc., to the High Net
Worth Individuals based in the UAE
and the neighbouring countries.
Significant Initiatives:
During the year 2015-16, the
Company undertook several
initiatives with an objective to
enhance market reach and customer
centricity, build scalability, manage
risks effectively, attain process
excellence, business continuity, aid
cost flexibility and result in providing
shareholder their fair returns.
• Mobility solutions: Loan
origination and collection
in the Consumer and Auto
Finance as well as Microfinance
business are completely based
on mobility solutions. Loan
origination is carried out
through Android based tablets/
mobile handsets that aim to
drive sales effectiveness through
use of technology for reducing
turnaround time. Collections
are carried out through mobile
phones coupled with thermal
Bluetooth printers to issue
receipts.
• A mobile based rule engine, with
a predictable and steady approval
rate, has been developed to
improve TAT. Minimising human
handoff reduces the chances of
error based on minimum human
underwriting interventions.
Productivity, maximising
cost efficiency and customer
convenience as central themes were
embedded into routine business as
well as new initiatives during the
year. Back-office operations are
now consolidated into two hubs
viz. Mumbai and Chennai through
extensive workflow automation and
centralisation to make the branches
hub for sales and service.
Outlook:
Indian rural economy is dependent
on monsoon to a large extent.
With the expectation of a good
monsoon, consensus outlook on
the farm industry remains positive
for the year 2016-17. There is
also a growing trend in the levels
of rural income and therefore,
demand for ownership of personal
vehicles is also rising. The Company
is confident of capitalising the
expectation of growth in rural
economy for its three key retail
products – farm equipment
finance, two-wheeler finance and
microfinance. In the infrastructure
space, GOI has taken several steps
to speed up decision making and
fast-tracked project clearances.
Nevertheless, concerns on the asset
quality still remain which may take
several quarters to resolve.
As the norms for recognition of
Non-Performing Assets in the
coming year gets advanced to 120
days of delinquency as against
150 days of delinquency as per RBI
norms, credit costs may remain
elevated in the coming year.
The Financial Service businesses
have implemented a strategy
called ‘Transform. Focus.
Deliver’. The crux of the strategy
is to transform the portfolio by
focussing on key businesses in
order to deliver superior returns on
equity (RoE). The entire portfolio
199
Fire and Engineering) contributed
14% and 23% of the total GWP
respectively. L&T General Insurance
has a pan India presence with 28
branches.
efficiencies resulted in a better
productivity levels for the Company.
This will further help the Company
to optimise its operating costs in
future.
Business Environment:
General insurance industry
(excluding specialised insurers such
as AIC and ECGC) has reported a
growth of 13.63% in the top line
from 80584 crore in 2014-15
to 91564 crore in 2015-16. The
growth in premium has improved
from 9.83% to 13.12% in 2015-16
for private players and from 10.3%
to 12.1% in 2015-16 for PSUs.
The market share of private players
increased marginally from 47%
to 48% in 2015-16. All lines of
the business except Marine and
Fire have shown improvement
in the growth rate compared to
the previous year. Health, PA and
Liability have grown at a higher
rate than the market growth rate.
The motor segment continues to
dominate the market with a 46%
share in the overall premium and
the share of Health has increased
from 25% to 27%. While the
top line grew, profitability of the
industry was negatively impacted by
the devastating floods in Tamilnadu.
Significant Initiatives:
The Company entered into
certain significant arrangements
which will help it in augmenting
the business in the Motor
segment. It also succeeded in
improving the portfolio mix for
Motor and Health.
The extensive use of the robust
technology platform coupled
with the improvement in process
Outlook:
With increase in the permissible
FDI under the Insurance
Laws (Amendment) Act 2015, this
year saw many foreign partners
increasing their stake in their
joint ventures, thereby showing
commitment to expand their
presence in India. IRDAI has
issued several regulations
including some revisions aimed
at driving the transparency,
improving accountability,
increasing penetration and
creating a favourable ecosystem
for all the stakeholders. These
regulations amongst others
include regulations on corporate
agency, point of sale person,
insurance marketing firms,
expenses of management,
surveyor and loss assessor,
dismantling of the declined pool,
implementation of Indian accounting
standards etc.
Improving macro parameters,
legislative reforms along with
above normal rainfall this year
are expected to drive the industry
growth in 2016-17. With Motor
and Health lending support to the
current growth drivers, L&T General
Insurance is poised to leverage the
opportunities on the back of its
operational efficiencies supported
by its state-of-the-art technology
platform.
More than 55,000 consumer and auto
finance loans originated through tablets.
of products was critically studied
on parameters of industry
attractiveness and our ability to
create a distinctive position. As
a result, three businesses have
been identified as the key growth
drivers – rural finance (farm
equipment finance, two-wheeler
finance and microfinance), housing
finance (home loans, loans
against property and developer
finance) and wholesale finance
(infrastructure finance and
structured corporate lending). The
other products in the portfolio
would be de-emphasised. With
this strategy, the Financial Services
business is expected to deliver
top-quartile RoE to shareholders by
the year 2019-20.
L&T General Insurance
Overview:
L&T General Insurance’s Gross
Written Premium (GWP) grew
from 344 crore in 2014-15 to
483 crore in 2015-16, thereby
registering a growth of 40%
over the previous year. Motor
remains the largest contributor
to the GWP with a share of 63%.
Health and other Commercial
lines of the business (primarily
200
Developmental Projects Business
The Hyderabad Metro Rail Project - the world’s largest public-private project in the urban transportation sector extends 71 km across three corridors.
Developmental Projects business
segment comprises (a) Infrastructure
projects executed through L&T
Infrastructure Development Limited
and its subsidiaries and associates
(L&T IDPL Group); (b) Power
Development Projects executed
through L&T Power Development
Limited and its subsidiaries (L&T
PDL Group) and (c) Kattupalli Port
operations of L&T Shipbuilding
Limited.
The operations of developmental
projects business segment primarily
involves development, operation
and maintenance of basic
infrastructure projects in the Public
Private Partnership (PPP) format, toll
collection including annuity based
road projects, power development
and power transmission,
development and operation of
port facilities and providing related
advisory services. Significant cash
generating assets have been created
under the current business model
which are being explored for
monetisation on a continuous basis
in order to maximise value creation
for the benefits of stakeholders.
L&T IDPL Group:
Overview:
L&T Infrastructure Development
Projects Limited (L&T IDPL) is a
major player in the Public-Private
Partnership projects in India with
201
business interests across Roads
and Bridges, Ports, Metro Rail,
Wind energy and emerging sectors
such as Power Transmission Lines.
As of March 2016, L&T IDPL has
a portfolio of 17 projects with
7,800 Km at an estimated project
cost of over 186 Bn.
L&T IDPL’s portfolio of infrastructure
assets also includes the Hyderabad
Metro Rail project, a transmission
line project in Karnataka, a port
berth in Haldia and windmills in
Tamil Nadu.
Roads & Bridges:
: 17
: 7,800 Km
186 Bn
:
No. of Projects
Lane Km
Total Project Cost
12 Operational Projects
2 Implementing Projects
3 Projects under Termination
Metro:
: 1
: 71 Km
:
No. of Projects
Length of Rail Line
Total Project Cost
Development of Metro Rail and Transit
Oriented Development in Hyderabad
Port:
170 Bn
No. of Projects
Capacity
Total Project Cost
: 1
: 4.5 MTPA
1 Bn
:
LTIDPL is having 21% stake in Berth No. 4A
of Haldia
202
Transmission Line:
: 1
: 2,400 MW
14 Bn
:
No. of Projects
Capacity
Total Project Cost
Transmission System for Power evacuation
from NTPC Kudgi (3x800 MW) to Madhugiri
in Karnataka
3 sections comprising a total length - 470 Km
Total No. of Projects
Estimated Project Cost : 371 Bn
: 20
Business Environment
The high economic growth
witnessed by India during the
last decade was accompanied by
realisation of the need for enhanced
investment in infrastructure.
Rapid urbanisation and industrial
growth led to demand for basic
infrastructure such as water supply
and sanitation, transportation
and energy. Rapid growth in
purchasing power in the rural areas
simultaneously meant a need for
improving connectivity and services
for attaining a seamlessly integrated
network of logistics and facilities. In
order to augment economic growth,
the government initiated several
policies and enabling measures to
support the creation of high-quality
infrastructure and efficient delivery
of services to its citizens.
The recent slowdown of PPP
projects could be attributed to a
combination of events, namely
the global economic slowdown,
weak regulatory and institutional
frameworks, delay in issue of
clearances by authorities, financing
issues (over-leveraged debt and
paucity of equity), acquisition
of land, aggressive bidding by
developers, contractual issues,
including long drawn out dispute
resolution arising in a maturing PPP
landscape, inadequate diligence
and appraisal by lenders, and
lack of flexibility in contractual
arrangements.
Road Sector
L&T BPP Tollway Limited (BPP)>
The Beawar - Pali - Pindwara road
in Rajasthan is a mega highway
project covering a stretch of
244.12 Km traversing three districts
in Rajasthan. It provides crucial
connectivity between North India
and Gujarat. BPP achieved COD
on June 11, 2015 for the entire
length. L&T Devihalli Hassan Tollway
Limited (DHTL) has obtained COD
for the residual 2.976 km vide letter
dated October 6, 2015 from the
independent engineer. With this,
the total project length of 77.228
kms is now fully operational and
tolled.
Construction is in full swing on
Deccan Tollways Limited (DTL) in
Telangana and Sambalpur Rourkela
(SRTL) in Odisha. The two road
projects are expected to commence
tolling in the financial year 2017-18.
L&T Metro Rail (Hyderabad)
Limited
L&T Metro Rail (Hyderabad) Limited
(L&T MRHL) was incorporated on
24th August, 2010 as a special
purpose vehicle to undertake the
business to construct, operate and
maintain the Metro Rail System
including the Transit Oriented
Development in Hyderabad under
Public-Private Partnership model
on Design, Build, Finance, Operate
and Transfer (DBFOT) basis. The
Company entered into a Concession
Agreement with the erstwhile
Government of Andhra Pradesh on
4th September, 2010.
The Metro Rail system is being
constructed on three elevated
corridors from Miyapur to L.B.Nagar,
Jubilee Bus Station to Falaknuma
and from Nagole to Shilparamam
covering a total distance of
71.16 Km. The concession period of
the project is for 35 years including
the initial construction period of
5 years. The concession period is
extendable for a further period of
25 years subject to the fulfillment of
certain conditions by the Company
as set out in the Concession
Agreement.
The estimated project cost is
16375 crore which includes the
cost of rail system and 6 million
Transit Oriented Development (TOD)
which is to be funded by a term
loan of 11478 crore, equity share
capital of 3439 crore and Viability
Gap Fund from Government
of 1458 crore. The Company
has tied up the entire debt and
achieved financial closure on
1st March, 2011.
In terms of the Concession
Agreement, both the Government
of Telangana (State Govt) and
L&T MRHL are required to comply
with certain conditions precedent
for the occurrence of appointed
date which shall be the date for
commencement of concession
period. The State Govt has declared
the appointed date as 5th July,
2012 upon fulfillment of the
condition precedents (CP) from
both the parties i.e., L&T Metro Rail
(Hyderabad) Limited and the State
Govt.
The Company has achieved its
4th Project milestone as per the
Concession Agreement and has
expended 50% of the project
cost by 5th July, 2015. The
Company is executing the project
covering a total distance of 71.16
Km in three different corridors.
This entire distance is further
sub-divided into six stages for
ease of implementation. CMRS
(Commissioner of Metro Rail Safety)
approval has been obtained for
Stage 1 of the project and is fully
ready for commissioning. Stage 2
is expected to be ready by October
2016. The overall physical progress
of the project as at 31st March,
2016 is 61%. Construction works in
Stages 3, 4 and 5 are going on at a
brisk pace.
During the year 2015-16, the
Company successfully obtained
two tranches of Viability Grant
of Funding (VGF) amounting to
around 660 crore from the Central
Kudgi Transmission Limited (a subsidiary of L&T IDPL) is developing the transmission assets required to evacuate power from NTPC’s Kudgi
Thermal Power plant in Karnataka.
203
Government. This confirms the
certainty of Central Government
participating in the project in the
form of VGF.
There is an encouraging
environment for commercial real
estate with a few major IT and IT
enabled companies announcing big
plans during past few months to set
up shops or expand their business
plans. This would help the project
to market its real estate products in
retail and office segments at better
prices.
Significant initiatives:
To provide a safe highway to
users and to reduce maintenance
costs due to overloaded vehicles,
Weigh-in-Motion (WIM) system
was implemented during December
2015 at L&T BPP Tollway Limited.
This calculates the load of each axle
of the vehicle which moves on the
platform. A penalty is charged at
Pay Axis (Toll Booth) if the vehicle is
found to be overloaded.
Pursuant to the Investment
Agreement of June 2014, the
Canada Pension Plan Investment
Board (CPPIB) made an initial
investment of 1000 crore in L&T
IDPL in December 16, 2014 and
the second tranche of 1000 crore
was made in December 15, 2015 by
way of subscription to compulsorily
convertible preference shares.
The Company has entered into
a Share Purchase Agreement on
April 4, 2016 for sale of its stake
in L&T Infrastructure Development
Projects Lanka (Private) Limited.
The divestment was completed in
May 2016 and has received the sale
proceeds.
204
Outlook:
The recovery in the sector is likely
to be gradual as most players
are still burdened with leveraged
balance sheets even as the volume
of stalled or slow moving projects
remains sizeable. In addition,
aggressive bidding in the past and
inability or limited ability to raise
equity for Build-Operate-Transfer
(BOT) projects have impacted the
viability of infrastructure projects
and reduced the risk appetite
of developers for new projects.
Further, structural constraints like
uncertainty in land acquisition,
delays in approvals and inadequacy
of long-term funding avenues, if
not tackled expeditiously, can slow
down recovery in the infrastructure
sector. The pace of recovery in
the construction sector is likely
to be slow and will be linked to
the ground impact of the policy
measures taken as well as the
availability of funds.
The Group is expecting to improve
toll revenues by replacing the old
tolling system in some of the plazas
with more robust systems and by
implementation of weight-based
tolling in a few more projects.
Improvement in traffic is also
expected on account of the revival
in the economy. However, WPI has
been in the negative territory in
the second year which has led to
reduction in toll rates in some of
the projects. The negative trend in
WPI is expected to partially offset
the benefits accrued from traffic
growth and lower interest costs.
The Company will also actively
participate in policy advocacy to
improve and strengthen the PPP
sector. The Company will continue
to look for opportunity to churn its
portfolio and would refinance some
of the road projects during the year.
Once the termination matters are
resolved, the Company is expected
to participate in the bids coming up
in the road and transmission line
sectors.
L&T Power Development Group
Overview:
L&T Power Development
Limited (L&T PDL), a wholly
owned subsidiary of L&T, has
been incorporated as its Power
Development arm with an
objective of developing, investing,
operating and maintaining power
generation projects. Currently, L&T
PDL portfolio comprises projects
in thermal and hydel power
generation.
Hydel Power Projects
Hydel projects with an aggregate
capacity of 870 MW are in various
stages of development. A brief
status is depicted below:
Name of
Project
Singoli-
Bhatwari
Hydro
Electric
Project
Tagurshit
Hydro
Electric
Project
Sach-Khas
Hydro
Electric
Project
Reoli-Dugli
Hydro
Electric
Project
Total
State
Capacity
(MW)
Name of
Subsidiary
Current
Status
Advanced
stage of
construction
Detailed
Project
Report
submitted
99 Uttarakhand L&T
Uttaranchal
Hydropower
Limited
L&T
Arunachal
Hydropower
Limited
L&T
Himachal
Hydropower
Limited
L&T
Himachal
Hydropower
Limited
74 Arunachal
Pradesh
267 Himachal
Pradesh
430 Himachal
Pradesh
870
Thermal Power Projects – Nabha
Power Limited (NPL)
NPL is a 2X700 MW supercritical
thermal power plant at Rajpura,
Punjab. This is the first development
project and the first power plant to
be owned and operated by L&T. All
the power generated from this plant
is contracted with Punjab State
Power Corporation Limited (PSPCL)
for a period of 25 years under a
Power Purchase Agreement (PPA).
The plant is built on super critical
technology of Mitsubishi, Japan. It is
the first ‘Made in India’ supercritical
power plant to be commissioned
and operational in India.
The plant sources its fuel from
South Eastern Coalfields Ltd.
(Subsidiary of CIL - Coal India
Limited) under a 20 year Fuel Supply
Agreement (FSA). The Company also
secured approvals to arrange coal
from alternative sources to make
up for any shortage in supply of
coal under the FSA. Bhakra-Nangal
distributary is the perennial source
of water for the plant under an
allocation by the state irrigation.
The plant is operated by an in-house
experienced team of operations and
maintenance professionals.
The power plant has been running
successfully for over two years
with a technical plant availability of
over 90%. NPL has been the most
reliable source of power for the
state of Punjab and has supported
the state with an uninterrupted
supply during peak season. NPL
also happens to be the lowest cost
power producer in Punjab with
benchmark operational efficiency
which is amongst the best in the
country.
Business Environment:
Fiscal year 2015-16 witnessed
muted growth in demand for power
with an all India plant load factor
at around 62%. Punjab state also
registered a modest growth in
demand. PSPCL undertook power
banking transactions creating an
additional demand during lean
seasons. Punjab joined ‘Ujwal
DISCOM Assurance Yojana’
scheme of the Central Government
during the year. UDAY scheme is
aimed at operational and financial
turnaround of the DISCOMs.
Coal India Limited ended the
financial year with an output of
536.5 million tonnes, 8.6% higher
than preceding year. However,
the output was short of targeted
production by 2.4%. SECL, which
supplies coal to NPL, registered a
production of 135.6 million tonnes
with a growth of 5.8%. Availability
of railway rakes for transportation
of coal from SECL to NPL’s plant in
Punjab improved during the year.
Regulatory environment continued
to pose challenges to the IPPs
(Independent power producers)
particularly in tariff related areas.
Significant Milestones &
Initiatives:
• 91.79% availability achieved
• Railway siding operational on 4th
February, 2016
• Operational efficiency measures
implemented and monitored to
improve efficiency
• Unit start-up procedure optimised
to reduce the time and cost
• ISO 9001, 14001 and 18001
certification awarded
The 56.17-km six-lane stretch of NH 8A between Samakhiali and Gandhidham in Gujarat connects the important port towns of Kandla and
Mundra to north India.
205
• Achieved 87% materialization of
linkage coal during large part of
2015-16
• NIL availability loss on account of
shortage of coal
• 99% of dry fly ash disposal
achieved
• Effective financing strategies and
refinancing iterations helped to
maintain Interest costs at sub 9%
• CSR initiatives in the area
of development of village
infrastructure, education, skill
building, gender equality,
health and environment were
implemented during the year.
Outlook:
Increased private participation in
the power sector is expected to
play an important role in future
capacity additions. Lower per capita
consumption continues to promise
robust long term demand. On the
fuel side coal production capacity
is expected to further increase in
2016-17 up to around 600 million
tonnes registering 11% growth over
the preceding year.
Punjab is expected to witness a flat
growth of around 5% in demand
for electricity during 2016-17. NPL
is likely to remain the lowest cost
power producer amongst the IPPs in
the state which will translate into a
higher plant load factor in fiscal year
2016-17 at around 70%.
Major focus areas for NPL in
coming year are maximising plant
availability, improving operational
efficiency, enhancing fuel quality
and settling the regulatory issues.
Focus area for the hydel business
would be expediting construction
activities at its Singoli-Bhatwari
hydel project.
L&T Shipbuilding Limited:
Kattupalli Port Operations
L&T Shipbuilding Limited is a joint
venture between L&T and Tamil
Nadu Industrial Development
and Corporation Limited (TIDCO)
wherein L&T holds 97% and TIDCO
holds 3% in the Company to
develop shipyard-cum-minor port
complex. Both the shipyard and the
port have SEZ status. Kattupalli port
at Chennai has a container terminal
with two container berths.
During the year 2015-16, the
Company entered into an
agreement with Adani Group (a
port operator) to demerge the port
business and divest the stake in
the resulting company. Pending
formalities of the demerger process,
the operations of the port have
been handed over to the operator
for a fixed share in revenue. It is
planned to complete the transfer
of the port ownership in entirety
during financial year 2016-17.
206
20.1% y-o-y, as the investment climate remained subdued
during the year. While capital spending by private sector
was muted on account of lower commodity prices,
weak demand and large excess capacities, investments
in infrastructure development picked up in the second
half of the year. The International segment grew 12.4%
y-o-y and contributed 32.1% of total order wins during
the year as compared to 25.2% in previous year. Order
inflows of Power, Metallurgical & Material Handling and
Heavy Engineering businesses were adversely affected.
Infrastructure segment contributed 62% of total order
inflow during the year at 84817 crore, marginally lower
by 1.1% as compared to the previous year.
The Group has a robust order book of 249949 crore as at
March 31, 2016, at 2.4 times of current revenue providing
revenue visibility for next few years. Infrastructure
segment contributed 75% of the consolidated order
book, comprising mainly Buildings & Factories 22.7%,
Transportation Infrastructure 15.8%, Heavy Civil
Infrastructure 15.3%, Power Transmission & Distribution
12.3% and Water, Smart World & Communication 8.9%.
The order book grew by 7.4% over the previous year.
International orders constitute 28.3% of the order book as
at March 31, 2016 as compared to 26.2% in the previous
year.
Financial Review 2015-16
I. L&T CONSOLIDATED
A. PERFORMANCE REVIEW
The Company’s performance during the year has been
satisfactory driven by revenue growth with stable margins
despite testing business conditions characterised by global
slowdown, declining commodity prices, volatile currency
movements and geopolitical uncertainties. Indian economy
though growing at relatively faster pace did not witness
pick up in investment cycle.
The Company has been focusing on conversion of
order book and achieving operational excellence, cash
conservation and monetising Company’s non-core assets
to maximise shareholder value.
As at March 31, 2016, L&T Group comprises of 125
subsidiaries, 8 associates and 22 joint venture companies.
Most of the group companies are strategic extensions
of the project and product businesses of L&T. Majority
of the subsidiaries support L&T’s core businesses and
enable access to new geographies, products and business
segments. While certain distinct service businesses
such as Information Technology, Technology Services,
Developmental Projects and Financial Services are housed
in separate subsidiary and associate companies of L&T,
project business catering to the hydrocarbon sector is also
housed in a separate group of companies to provide the
sector specific focus.
Order Inflow & Order Book
L&T group secured new orders worth 136858 crore
for the year 2015-16, reflecting a decline of 11.9% over
the previous year. Domestic order inflow was lower by
Revenue from Operations
The Group revenue rose by 11.6% y-o-y to 103522 crore
during the year 2015-16. The growth was largely
contributed by Infrastructure and Power segments on
the back of project execution from opening order book.
Financial Services, L&T Infotech and L&T Technology
Services recorded healthy y-o-y increase in the Revenue.
International revenue contributed 32.2% to revenue as
compared to 27.9% in the previous year.
207
Sales, Administration & Other expenses increased by
12.7% y-o-y to 6138 crore mainly due to higher
provisions towards doubtful debts and non-performing
assets (NPAs) and expenses on account of increased
international business.
The Group operating profit (PBDIT) grew by 9.6% y-o-y at
12343 crore for the year 2015-16, while the operating
margin for the year declined by 20 basis points to 12.0%.
Depreciation & Amortisation charge
Depreciation & Amortisation charge for the year 2015-16
higher by 5.1% at 2756 crore as compared to 2623
crore in the previous year on account of amortisation
on newly commissioned road projects during the year.
The Depreciation & Amortisation charge for the year
also includes impairment charge on the terminated road
project.
Operating Cost and PBDIT
Other Income
Manufacturing, Construction and Operating (MCO)
expenses increased by 11.5% y-o-y at 74946 crore, in
line with revenue growth. These expenses mainly comprise
cost of construction material and other raw materials,
subcontracting expenses, manpower costs and interest
expenses. On a relative basis, the MCO expenses reduced
marginally from 73.1% to 73.0% of net revenue led by
softer commodity prices during the year.
Staff expenses for the year 2015-16 at 9205 crore
increased by 14.2% as compared to the previous year
mainly on account of annual pay revisions and headcount
additions especially in international operations.
208
Other income for the year 2015-16 amounting to
1183 crore grew by 10.1% over 1075 crore of the
previous year. This consists largely of the profit on sale
of liquid investments, interest and dividend income from
treasury investments.
Finance cost
The interest expense for the year 2015-16 at 3041 crore
was higher by 7.1% in comparison to 2840 crore for
the previous year with increase in the level of borrowings
and cessation of capitalisation of borrowing costs on
certain road projects becoming operational. The average
borrowing cost for the year 2015-16 was contained at
9.8% p.a. through effective refinancing and judicious
selection of type & tenor of the fresh borrowings.
Exceptional Items
Exceptional items of 343 crore in the Statement of Profit
and Loss in current year mainly represent gain on sale of
(a) part stake in L&T Finance Holdings Limited, (b) stake in
Salzer Electronics Limited and (c) gain on sale of Foundry
business.
Profit after Tax
Consolidated Profit after Tax (PAT) at 5091 crore for the
year 2015-16 rose by 6.8% over the previous year.
Earnings per share
Consolidated Earnings per share (EPS) including
exceptional and extraordinary items for the year 2015-16
at 54.69 recorded an increase of 6.5% over the previous
year.
Fund Flow Statement
Particulars
Capital expenditure (net)
(Purchase)/Sale of other investments
Dividend paid
Interest paid
crore
FY 15-16
FY 14-15
(5058)
(6095)
(124)
(1878)
(3678)
(966)
(1603)
(3926)
(Increase)/Decrease in cash balance
(128)
(1759)
Utilisation of Funds
(10866)
(14349)
*This includes (acquisition)/divestment of businesses,
consideration received on disposal of subsidiaries/Joint
ventures and net cash flows on loans/deposits made with
associate companies & third parties.
The total borrowings as at March 31, 2016 stood at
101307 crore as compared to 90571 crore. The gross
Debt Equity ratio is 2.30:1 as at March 31, 2016 as
compared to 2.21:1 at March 31, 2015.
B. SEGMENT WISE PERFORMANCE (GROUP)
1. Infrastructure Segment
Infrastructure segment bagged fresh orders worth
84817 crore for the year 2015-16 reflecting marginal
drop of 1.1% over the previous year. International order
wins led by Power Transmission & Distribution business
constituted 28.5% of the total order inflow during the
year up from 21.5% in the previous year.
The order inflow declined marginally as certain anticipated
domestic project awards in Heavy Civil and Transportation
Infrastructure were deferred. Buildings & Factories
business, though witnessed muted prospects, constituted
major portion of the order intake of the Infrastructure
segment.
Net Worth, Capital employed and Returns
The Net Worth of the shareholders at 43992 crore as at
March 31, 2016 increased by 3083 crore as compared to
the position as at March 31, 2015. Return on Net Worth
(RONW) for the year 2015-16 was stable at 12%. Capital
employed increased to 92331 crore as compared to
86407 crore as at March 31, 2015.
Liquidity and Gearing
Stronger underlying business performance contributed
higher cash from business operations at 7003 crore. Net
borrowings during the year stood at 1159 crore, mainly
attributable to Developmental projects business. L&T IDPL
raised additional 1000 crore by issuance of compulsorily
convertible preference shares to Canada Pension Plan
Investment Board (CPPIB) during December 2015. Stake
sales in subsidiary companies have also contributed
424 crore largely attributable to divestment of CSJ
infrastructure Limited & L&T Infocity Limited. Dividend and
treasury income rose to 627 crore during the year owing
to efficient treasury management.
The Group incurred capital expenditure of 5058 crore
during the year 2015-16 vis-à-vis 6095 crore in the
previous year, mainly due to lower spend in L&T Hyderabad
Metro Rail project. There has been a net increase of
128 crore in the cash balances as at March 31, 2016 as
compared to the beginning of the year.
Fund Flow Statement
Particulars
Operating activities
Borrowings (net of repayments)
Net (investment)/ divestment *
Payment (to)/from minority interest (net)
Treasury and dividend income
Others
Sources of Funds
crore
FY 15-16
7003
1159
424
1583
627
70
10866
FY 14-15
5619
4478
1811
1871
471
99
14349
209
Infrastructure segment clocked gross revenue of
50387 crore for the year 2015-16 registering 12.3%
growth over the previous year. Revenue growth was driven
by Transportation Infrastructure, Power Transmission &
Distribution and Water, Smart World & Communication
businesses on the back of the execution of the jobs from
the opening order book. Revenue from international
operations constituted 28.8% of the total revenues of the
segment during the year as compared to 24.1% in the
previous year.
Infrastructure Segment operating profit was higher by
18.6% y-o-y at 5684 crore for 2015-16. Operating
margins improved by 60 basis points at 11.7% during the
year 2015-16 owing to improved project execution and
settlement of variation claims.
The Funds employed by the segment at 18101 crore
as at March 31, 2016 increased by 28.0% vis-à-vis
March 31, 2015, largely representing net working capital.
2. Power Segment
Power segment bagged orders worth 2702 crore as
compared to 15125 crore in the previous year. The
segment was challenged by intense competition for rather
limited opportunities.
210
Segment revenue grew 47.4% y-o-y at 7011 crore, as
the jobs under execution achieved substantial progress
during the year. Revenue from International projects at
1870 crore represented 26.7% of total revenue.
Operating profit margins declined 450 basis points
to 11.6% during the year ended March 31, 2016 as
compared to 16.1% in 2014-15. Drop in margins reflects
changing job mix and the relative status of the stage of
completion of the projects.
The Funds employed by Power segment remains elevated
at 2801 crore as at March 31, 2016 higher by 36.7%
as compared to the position as at March 31, 2015.
This is mainly due to the increase in the construction
work-in-progress, pending completion of contractual
billing milestones.
3. Metallurgical and Material Handling Segment (MMH)
Funds employed by the segment at 3191 crore as at
March 31, 2016 remained at elevated levels due to delay
in collecting milestone payments from customers.
4. Heavy Engineering Segment (HE)
Heavy Engineering segment recorded order inflow of
2295 crore during 2015-16 reflecting a reduction
of 54% y-o-y as domestic order prospects in Process,
Plant & Nuclear (PP&N) and Defence & Aerospace (D&A)
businesses did not materialise. International orders
constituted 62% of the total order inflow.
Order Inflow of 3661 crore for the year was lower
by 40.3% y-o-y due to sluggish domestic business
environment. The soft commodity prices that prevailed
through 2015-16 impacted the Capex outlay of MMH
segment.
MMH segment recorded gross revenue of 2837 crore for
the year ended March 31, 2016, a decline of 17.2% over
the previous year, due to depleted order book and slower
implementation of projects by customers.
The Group Segment operating margins for the year
declined sharply by 500 basis points to 5.5% due to under
recoveries, slower project execution and cost overruns in
certain projects.
211
Reflecting depleted order book, the segment gross revenue
of 3323 crore fell 8.3% compared to the previous year.
Revenue from international operations constituted 42.6%
of the total revenue.
The segment incurred operating loss of 21 crore for
the year against an operating profit of 418 crore in
the previous year, due to cost & time overruns in certain
jobs in PP&N business, provision for debts doubtful of
realisation and continued under-recoveries in Forgings joint
venture.
Segment operating profit for the year fell 9% y-o-y to
646 crore. Consequently operating profit margins
declined by 90 basis points y-o-y to 13.9%. Group’s
profitability was adversely impacted by competitive
pressures on pricing and losses incurred by Middle East
subsidiary companies.
Funds employed by the segment decreased by 21.5% y-o-y
at 3230 crore as at March 31, 2016 aided by growth in
customer advances and higher vendor credit.
5. Electrical & Automation Segment (E&A)
E&A segment recorded gross revenue of 5446 crore for
2015-16. Stable top line in conditions of weak demand,
tight liquidity and deferment of projects underscored the
market acceptability of the products suite. Revenue from
international operations continued to be around 31.1%
of the total revenue of the segment, same as compared to
31.8% in the previous year.
Funds employed by the E&A segment at 2856 crore were
contained at previous year’s levels.
6. Hydrocarbon Segment
Hydrocarbon segment secured fresh orders aggregating to
10447 crore during the year maintaining the level similar
to that of the previous year. Low oil prices, geopolitical
uncertainties and currency volatility created a challenging
business environment in which capex investments by oil
producing companies were either slashed or deferred.
Consequently, International orders accounted for 32.8%
of total order inflow for 2015-16 as compared to 64.0% in
the previous year. Big ticket orders for fertilizer plant and
offshore oil field development helped domestic order flows
during the year.
212
Manpower strength was reduced to 9406 as compared
to 9596 as at March 31, 2015, however, utilisation had
improved.
The Segment Operating profit rose by 25.2% y-o-y to
1938 crore for the year 2015-16 with operating margin
improvement of 120 basis points on account of higher
manpower utilisation and favorable currency movement.
Segment revenue grew by 18.9% y-o-y at 8840 crore for
the year as jobs under execution progressed on expected
lines. International revenue contributed 47% of the total
revenue of the segment as compared to 51% in the
previous year.
The segment posted an operating profit of 197 crore as
compared to operating loss of 1128 crore in the previous
year. Close-out costs in international projects coupled with
under-recoveries contained the margin improvement.
Funds employed by the segment at 2037 crore as at
March 31, 2016 decreased by 10.3% as compared to
March 31, 2015. The reduction was aided by lower
working capital.
7. IT & Technology Services (IT & TS)
IT & TS segment comprises L&T Infotech group of
companies and L&T Technology Services group of
companies. Segment recorded gross revenue of
9117 crore for the year ended March 31, 2016 with
robust growth of 19.1% over the previous year. Most
of the revenues of the segment are from international
customers.
L&T Infotech group recorded gross revenue of 6075 crore
during the year ended March 31, 2016, registering 19.9%
growth over the previous year. The revenue in USD terms
increased by 9.5%. Geographical composition of the
revenue includes 69% from North America, 17% from
Europe, 8% from India & Asia and 6% from rest of the
world. Total manpower as at March 31, 2016 stood at
20072 vis-à-vis 19479 as at March 31, 2015.
L&T Technology Services group achieved growth of
17.5% in revenue for 2015-16 at 3042 crore mainly in
industrial products and process engineering vertical group.
In USD terms the revenue recorded a y-o-y growth of
9.5%. About 62% of revenue are contributed by North
America region as compared to 57% in the previous year.
The Funds employed by the segment at 3142 crore
as at March 31, 2016 is lower by 6.9% as compared to
March 31, 2015 at 3377 crore.
8. Financial Services (FS)
Financial Services segment comprises of asset financing,
mutual funds and asset management businesses housed
in L&T Finance Holdings Limited and its subsidiaries.
The segment also includes general insurance business.
Segment revenue grew 17.8% y-o-y at 7541 crore
during the year ended March 31, 2016 aided by good
momentum across various businesses.
Loan book of Finance business expanded by 22.4% y-o-y
to 57831 crore as at March 31, 2016, driven by healthy
disbursements in operational projects in renewable energy
213
and roads and retail products. Net interest margins at
5.67% remained stable.
Asset management business increased 16.7% y-o-y aided
by growth in equity assets with Assets Under Management
of 24772 crore as at March 31, 2016.
The General Insurance business reported Gross Written
Premium (GWP) of 483 crore up by 40% as compared to
the previous year.
port operations are housed in L&T Shipbuilding Limited,
a subsidiary company & other projects are developed by
L&T Infrastructure Development Projects Limited. The
total estimated cost of projects pegged at 53050 crore
as at March 31, 2016, requiring equity commitment of
12976 crore of which equity infusion of 9543 crore
was done as at March 2016.
The segment recorded revenue of 5146 crore for the
year ended March 31, 2016 as compared to 5155 crore
in the previous year. Lower toll collections and loss of
Dhamra Port revenues (business sold in 2014-15) was
compensated by higher revenue from Rajpura power plant.
The segment clocked operating profit at 1367 crore for
the year 2015-16 declining by 36.3% y-o-y due to lower
toll collections as also Dhamra Port divestment gains
counted in the previous year.
Disbursal of fresh loans and advances of 41765 crore
during 2015-16, recorded a growth of 29% over the
previous year. Gross Non-performing Assets (GNPA) of the
segment at 3.05% of loan assets as at March 31, 2016
improved marginally over March 31, 2015.
The Funds employed by the DP segment increased by
14.8% y-o-y at 31060 crore as at March 31, 2016
owing to higher capex outlay for Hyderabad Metro Rail,
Transmission and Road projects.
L&T IDPL raised 1000 crore by way of compulsorily
convertible preference shares subscribed by Canada
Pension Plan Investment Board (CPPIB) during December
2015 taking the total investment by CPPIB to 2000 crore.
10. Others Segment
Other Segment covers Realty, Shipbuilding, Construction &
Mining equipment and Industrial Machinery businesses.
Realty business recorded growth of 3.5% in revenue at
1997 crore for the year 2015-16 and achieved operating
profit of 1130 crore.
Shipbuilding business recorded revenue of 820 crore
for the year. The business suffered operating loss of
328 crore for 2015-16 as against operating loss of
208 crore in the previous year as performance was
9. Developmental Projects (DP)
The Group has acquired concessions through competitive
bidding process for the development of Power projects,
Roads, Bridges, Hyderabad Metro Rail, Ports and Power
Transmission Lines. Total portfolio of the group consists of
5 power projects, 14 roads & bridges projects (excluding
projects under termination), 2 ports, 1 transmission
line project & 1 metro rail project. Power projects are
developed by L&T Power Development Limited, Kattupalli
214
severely affected by time/cost overruns and under-recovery
of overheads due to low capacity utilisation.
Construction & Mining equipment and Industrial
Machinery businesses recorded growth of 9.7%
in revenue at 4318 crore for the year 2015-16.
Operating profit declined marginally to 551 crore due
to unfavorable product mix, sluggish demand & cost
pressures.
Segment funds employed reduced by 12.6% to
9423 crore due to improved customer realisation in
Realty business and customer advances in Shipbuilding
business.
II. L&T STANDALONE
PERFORMANCE REVIEW
The Company’s standalone financials capture performance
of Infrastructure, Power, Heavy Engineering, Electrical
& Automation, Metallurgical and Material Handling,
Construction & Mining equipment and Industrial
Machinery and a part of Shipbuilding and Realty
businesses.
As the headwinds continued to slow economic revival
in the country and in most major global markets, the
Company focused on profitable execution, optimising
working capital and monetisation of non-core assets.
Order Inflow & Order Book
Order wins during 2015-16 were 85052 crore recording
a decline of 22.5% y-o-y, as domestic opportunities
have delayed/deferred. Order inflow during the year is
mainly contributed by Infrastructure segment at 82.7%
as compared to 70.6% in the previous year. Power,
Metallurgical & Metal Handling and Heavy Engineering
businesses saw significant drop in order intake during the
year. International business clocked growth of over 22%
with the order inflow at 18693 crore aided by success
in commercial buildings space and power transmission &
distribution projects. International orders are at 22% of
the total order inflow for 2015-16.
Order Book as at March 31, 2016 stood at 199040 crore,
78.5% of which is contributed by Infrastructure segment.
International orders constituted 16% of the current order
book. Order book to revenue ratio at 3.29, gives a good
revenue visibility over the next few years.
Revenue from Operations
The Company achieved Revenue of 60415 crore vis-à-vis
57558 crore in the previous year. Revenue growth was
delivered by Power segment and Infrastructure segment
inspite of challenging execution conditions and delays in
customer clearances. Other major traditional businesses
such as Heavy Engineering and Metallurgical and Material
Handling had significant decline in the revenue as order
book depleted. Electrical & Automation business witnessed
sluggish industrial demand and has reported marginal
growth in revenue for 2015-16 over the previous year.
Operating Cost and PBDIT
Manufacturing, Construction and Operating (MCO)
expenses comprising cost of construction material,
manufacturing materials, components and subcontracting
expenses amounted to 46629 crore registering an
215
increase of 5.1%. These costs represent 78% of revenue,
an increase of 20 basis points over the previous year.
The Staff expenses for the year at 4480 crore increased
by 7.6% y-o-y due to annual pay revisions, manpower
additions and increased international operations. The
Company’s manpower strength stood at 43354 as
compared to 44081 as at March 31, 2015.
Sales, Administration & Other expenses for the year at
2500 crore increased by 25.9% y-o-y due to increased
provision for doubtful debts and advances, outlay on
operational excellence initiatives and higher spend on CSR
activities.
The operating profit margin for the year at 10.3%
declined by 110 basis y-o-y. Consequently, Profit before
depreciation, interest and tax (PBDIT) stood at 6171 crore
for the year, lower by 4.9% over the previous year.
Depreciation & Amortisation charge
Depreciation & Amortisation charge for the year 2015-16
at 999 crore was broadly in line with the previous year
charge of 1008 crore.
Other Income
Other income for the year 2015-16 amounted to
2406 crore as against 2283 crore for the previous
year. It consists of dividend from group companies
1008 crore (previous year: 851 crore), interest on
temporary investments in government securities and bonds
198 crore (previous year: 212 crore), interest on inter-
corporate deposit given to group companies 268 crore
(previous year: 293 crore), profit on sale of long term
investments 249 crore (previous year: Nil) and cost
recoveries from group companies 323 crore (previous
year: 301 crore).
Finance cost
The interest expenses for the year at 1449 crore were
higher by 2.1% vis-à-vis 1420 crore for the previous
year. The increase in the interest expenses is attributable
216
to incremental borrowings during the year to finance the
working capital needs of the businesses. The average
borrowing cost for the year 2015-16 was lower by 50
basis points at 9.0% p.a. led by refinancing of loans and
efficient cash management.
Exceptional Item
Exceptional items of 560 crore in the Statement of
Profit and Loss for the current year mainly includes gain
on part stake-sale in L&T Finance Holdings Limited,
gain on transfer of the Company’s stake in a few
subsidiary companies to its wholly-owned subsidiary L&T
Hydrocarbon Engineering Ltd as a part of restructuring,
gain on divestment of stake in associate Company and
gain on sale of Foundry business.
The Company has impaired its investment in its subsidiary
engaged in the general insurance business.
Profit after Tax
Profit after Tax (PAT), including exceptional items, for the
year 2015-16 grew by 5% to 5311 crore as compared
to 5056 crore in the previous year, contributed by higher
divestment gains.
Earnings per share
The Earnings per share (EPS) for the year 2015-16 at
57.07 grew by 4.8% over the previous year.
Funds Employed and Returns
Funds Employed by the Company at 54530 crore as at
March 31, 2016 increased by 4146 crore during the year.
The Company incurred 643 crore (net) towards capital
expenditure during the year, largely on procurement of
plant and equipment for the Infrastructure segment.
At the segment aggregate level, net working capital as
on March 31, 2016 at 16870 crore increased to 27.9%
of revenue as compared to 14938 crore at 26.0% of
revenue as on March 31, 2015. Higher net working capital
is mainly on account of unbilled construction work-in-
progress, pending completion of contractual milestones
and delay in realising customer receivables.
During the year, investments in and loans to subsidiary
and associate companies increased by 2218 crore (net
of proceeds from divestment). Major investments have
been made in subsidiary companies operating in Power
Development, Heavy Engineering and Shipbuilding
businesses to support the operations of group companies.
Return on Net Worth (RONW) including the extraordinary
items for the year 2015-16 is 13.7% as against 14.3%
for the previous year. Return on Capital Employed (ROCE)
for the year 2015-16 at 11.9% is lower compared to
12.5% of the previous year. The funds deployed in the
group companies in capital intensive businesses in the last
few years have not yet started yielding adequate returns,
resulting in decline in ROCE and RONW.
Liquidity and Gearing
Business operations generated cash flows of 3256 crore
during the year higher than 3118 crore in the previous
year. Borrowings during the year (net of repayments)
were 233 crore. Dividend and treasury income flows
contributed 1551 crore to the cash along with
divestment proceeds of 789 crore.
Fund Flow Statement
crore
Particulars
Operating activities
Borrowings (net of repayments)/
(Repayments)
Dividend from group companies and
Treasury income
Sale / (purchase) of investments
Others
Sources of Funds
2015-16
2014-15
3256
233
3118
1015
1551
1413
789
70
5898
(916)
99
4729
Fund Flow Statement
crore
Particulars
Capital Expenditure
Investments in Group Cos. (net of
divestment)
Interest paid
Dividend paid
(Increase) / decrease in cash balance
Utilisation of Funds
2015-16
2014-15
(643)
(2218)
(1223)
(1647)
(166)
(5898)
(901)
(1480)
(1150)
(1401)
203
(4729)
The total borrowings as at March 31, 2016 stood at
13608 crore as compared to 12937 crore in the
previous year. The loan portfolio of the Company
comprises a mix of domestic and suitably hedged foreign
currency loans. The gross debt equity ratio marginally
decreased to 0.33:1 as at March 31, 2016 from 0.35:1 as
at March 31, 2015. The Company has a healthy net debt
equity ratio of 0.18:1 as at March 31, 2016 after excluding
short term investments in liquid funds from debt.
III. RISK MANAGEMENT
L&T has a comprehensive Enterprise Risk Management
(ERM) framework in place for identification, assessment,
treatment and reporting of risks. The Company’s risk
management processes ensure that the Company accepts
risks as per the boundary conditions based on the risk
appetite of the organisation. The Audit Committee of
the Board oversees the efficacy of the risk management
processes. Business level risks and the mitigation plans for
each vertical are reviewed periodically by the respective
top management/Boards. The Corporate Risk Management
Committee appraises critical risks impacting the Company
and ensures adherence to policies.
The Company is predominantly in project business and
has developed robust project risk management processes.
The key processes include country clearance for entry
into a new country, Pre-bid risk reviews, Execution risk
reviews and project close out risk reviews. Pre-bid reviews
are carried out based on a bid authorisation matrix
as determined by the Risk Management Committees.
Execution risk reviews of the projects are held at regular
intervals for tracking the project performance, movement
of risks in the project and effectiveness of mitigation
measures. Close out risk reviews are held to capture key
learnings from the projects and what went right/wrong
analysis which helps in factoring the learnings in future
bids.
The Company has been conferred the prestigious ‘Golden
Peacock Award for Risk Management’ for 2015 by the
217
Institute of Directors (IoD) in the ‘Diversified’ category.
The Company emphasises on continuous learning and
has initiated several knowledge based initiatives to
improve risk awareness across the organization. One such
initiative is launching of an e-learning training program
on Enterprise Risk Management (ERM) for employees to
enhance capabilities on risk management which will lead
to better business performance. It covers topics related
to basics of risk management, global risk management
frameworks, processes in L&T, case studies on risk
management etc. Periodic workshops on risk management
are also held across the company to spread awareness &
share learnings.
The top Enterprise level risks for the Company and the
mitigation measures being implemented are:
1. Slow recovery of key sectors: Growth in some of
the sectors like Power, Metals & Minerals etc. has
been hampered by a number of constraints like fuel
shortages, environmental clearances, restrictions on
mining etc. Being a diversified conglomerate helps
mitigate the risk of such slowdown in some sectors as
we see compensating growth in certain other sectors.
Government initiatives like Project UDAY, Make in
India, revised Defence Procurement Policy (DPP),
renewed impetus to Infrastructure sector namely
roads and railways provide growth opportunities in
the near future.
2. Fall in oil price: It has resulted in budget constraints
in Middle Eastern Countries leading to decline/delay in
investment with some projects being put on hold. The
Company has started focusing on domestic business
and selectively foraying into new markets like Africa &
South East Asia.
3. Reputation and Brand: Corporate Governance and
Compliance policy is in place mandating adherence
to Code of conduct and Internal Controls. Regular
knowledge sharing across the organisation and review
& upgradation of appropriate controls ensure the
same.
4. Competition: It has been observed that competition
from foreign and domestic players has considerably
increased in the past few years. The Company’s
engineering, procurement, and construction business
derives its competitive strength from its excellence
in executing projects of varying sizes, reputation for
quality, technology, cost-effectiveness and project
management expertise. This helps in gaining an edge
over competition.
218
5. Other Operational Risks:
a. Execution challenges: Company faces execution
challenges like geological developments,
availability of work front, land acquisition & right
of way (ROW), pending approvals and clearances
from Government agencies, working in difficult/
harsh weather conditions/terrains, skilled
manpower availability etc. The Company closely
tracks the key risks for each project to effect
timely mitigation.
b. Partner risks: Company partners with
different contractors (Joint Venture/consortium
projects) across businesses based on technical
requirements/local market conditions. Partner’s
performance and financial strength is crucial for
project success. Learnings from the past projects
are incorporated in the inter-se agreement with
the partners and clauses on liability of each
partner are carefully drafted after a legal due
diligence.
c. Working capital challenges: Project delays
and adverse contractual payment terms lead
to increased working capital requirements.
Company has strengthened the process for close
monitoring of cash flows at the project level.
Company ensures regular follow up for delay
in payments by client. Improvement in working
capital is a key lever for achieving better ROE.
d. Claims management: Company maintains a
strong documentation and follow up with clients/
sub-contractors/vendors for claims that are
submitted. Legal teams and insurance teams are
constantly consulted to ensure a robust process
of claims management.
e. Talent Management: It is critical to fill
leadership roles in every project being executed
by the Company. Proper processes are in place
across the Company for hiring the best talent
across the Company and suitable retention
policies are constantly reviewed to minimise
attrition.
The Company has institutionalised the risk
management processes to map and monitor the
risks across the businesses and respond effectively to
achieve the strategic objectives. The Company has
been successful in tapping the opportunities both in
domestic and international markets. The Company
sees risk management as a business enabler and
believes that risk is an integral part of every business
and promotes a culture of building the ability to
anticipate and manage risks effectively and converting
them into opportunities.
FINANCIAL RISKS
Capital Structure, Liquidity and Interest Rate Risks
The Company continues its policy of maintaining a
conservative capital structure which has ensured that it
retains the highest credit rating even amidst an adverse
economic environment. Low gearing levels also equip the
Company with the ability 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. Given the continuing tough economic
conditions in 2015-16, there has been an increase in the
working capital levels of the Company. The Company has
been investing capital into subsidiaries as scheduled and in
some cases to provide for deficits caused by the economic/
business/performance downturn, and also to optimise
overall Group interest rate risks and costs. The Company
continues to maintain adequate liquidity to deal with
economic cycles.
The Company judiciously deploys its periodical surplus
funds in short term investments in line with the corporate
treasury policy. The Company constantly monitors the
liquidity levels, economic and capital market conditions
and maintains access to the lowest cost of sourcing
liquidity through banking lines, trade finance and capital
markets. In line with above, the Company continued to
use a mix of short term and long term funding sources
for its working capital funding. The Company further
optimised the cost of debt by using subsidised export
financing scheme of RBI and issuing more of short dated
CPs. The Company dynamically manages interest rate
risks through a mix of fund raising products, investment
products and derivative products across maturity
profiles and currencies within a robust risk management
framework.
Foreign Exchange and Commodity Price Risks
The various 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. The business
related financial risks, especially involving commodity
prices, by and large, are managed contractually through
price variation clauses, while the foreign exchange
and residual commodity price risks are managed by an
appropriate choice of treasury products for balancing risks
and at the same time optimising the hedging costs.
The financial year 2015-16 was characterised by a
strong USD against most of the asset classes (currency /
commodities) as well as increased volatility on account
of sharp movements in commodity prices and Asian
currencies including more particularly the Chinese Yuan.
The rupee moved from 62.50 to 68.80 per US Dollar
during the year though it ended the year at 66.25. In spite
of the two way exchange rate volatility, the impact on the
Company was, however, muted given the robust financial
risk management process in place. Benign commodity
prices along with the analytical risk management
framework has benefited the Company.
IV. INTERNAL CONTROLS
The Company continued its efforts in providing an
effective internal control environment where ethical
behavior, accountability, controls and assurance are
practiced. The Company has a robust framework for
Internal Controls, commensurate with the size and
complexity of its business. There is a system of periodically
apprising the senior management and the Audit
Committee of the Board on the internal processes of
the Company with respect to Internal Financial Controls,
Statutory Compliances and Assurance. Employees are
guided by the Company’s ‘Code of Conduct’. The
Company’s ‘Whistle Blower’ policy enables the employees
to have direct access to the members of the Board of
Directors without interference from management.
Increasing focus on control and compliance requirements
under the Companies Act, 2013 and the new SEBI (Listing
Obligations & Disclosure Requirements) Regulations, 2015
have led to reviewing the control design and effectiveness
across the organisation. The Company has laid down
Internal Financial Controls as detailed in the Companies
Act, 2013. These have been established at the entity and
process levels and are designed to ensure compliance
to internal control requirements, regulatory compliance
and appropriate recording of financial and operational
information. The Company has reviewed and ensured
sustained effectiveness of internal financial controls by
adopting a systematic approach to assess design and
operating effectiveness.
Heads of businesses and support functions are primarily
responsible for design, establishment of internal controls
and its operating effectiveness in their respective areas.
Operating framework and procedures are in place in
individual businesses of the Company in the form of
Internal Control Manuals, Standard Operating Procedures,
Accounting Guidelines and Authorisation Matrix for
financial transactions including regular management
reporting and monitoring thereof. Policies and procedures
219
are reviewed periodically and updated to factor in changes
in business processes as well as improvements necessitated
to strengthen the internal control systems.
Internal Control department at the corporate formulates
procedures and guidelines for areas of weaknesses
which are identified during internal audit or as triggered
by process owners or management based on internal
or external risk factors. The Company also periodically
engages independent professional firms to carry out
review of effectiveness of various control processes in
businesses and support functions.
The assurance function is carried out by the Corporate
Audit Services (CAS) which makes independent assessment
by conducting audit of all units of the Company and its
major subsidiaries at regular intervals. The audit inter alia
covers assessment of financial and operational efficiency
as part of the process. Further, it conducts operating
effectiveness testing of the internal financial controls with
the objective of providing an independent and reasonable
assurance to the Audit Committee and the Board of
Directors. The entire process is reviewed periodically by
the senior management and the Audit Committee which
oversees the internal audit function.
The Company continually aligns to the best practices in the
areas of control and compliance, to ensure high standards
of governance in both domestic and international
businesses.
V. INFORMATION TECHNOLOGY
The Company recognises the strategic imperative of
Information Technology (IT) for efficient conduct of its
business operations. The Company leverages IT as a key
enabler to improve productivity through collaboration
and integrate internal controls with business processes.
The Company implemented Enterprise Resource Planning
(ERP) and other solutions to run the various business
processes. Niche bolt on systems are being deployed for
Vendor Invoice Management, CRM on cloud, Advance
Planning and Optimisation to provide edge to Business.
Simultaneously, IT infra is continuously upgraded to deploy
the latest and best in class IT assets and technology. The
Company has initiated various ‘Digital & IoT’ projects, in
the areas of risk mitigation and manufacturing to make its
business processes LEAN and contribute to the Company’s
bottom line in today’s ever challenging business scenario.
L&T’s dedicated Cloud infrastructure, created a few years
ago, is widely deployed across the Group companies. The
Company has taken steps to embrace ‘Public Cloud’, and
the latest office automation and collaboration applications
are being rolled out.
The Company has Disaster Recovery (DR) systems which
rescued the businesses from disruptions during the heavy
rains in Chennai in December 2015.
The Company has a program to do a comprehensive
review of its security systems and processes to address
growing IT/cyber security threats. The corporate IT function
of the Company has acquired Certification of ISO 27001
for Information Security Management. ISO 27001 (formally
known as ISO/IEC 27001:2005) is a specification for an
information security management system (ISMS). An ISMS
is a framework of policies and procedures that includes
all legal, physical and technical controls involved in an
organisation’s information risk management processes.
220
DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Indiabulls Finance Centre, Tower 3
27th – 32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
Mumbai 400013.
SHARP & TANNAN
Chartered Accountants
Ravindra Annexe
194, Churchgate Reclamation
Dinshaw Vachha Road
Mumbai 400 020.
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF LARSEN & TOUBRO LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Larsen & Toubro Limited (the “Company”), which comprise
the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory information.
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 and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the
Accounting Standards prescribed under section 133 of the Act, as applicable.
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 financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the Rules made thereunder and the Order under section 143 (11) of the
Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements.
The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditors’ considers internal financial control
relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its profit and its
cash flows for the year ended on that date.
Other Matters
Standalone financial statements include the financial statements/information of 9 jointly controlled entities whose financial statements/
financial information reflect the Company’s share in net assets of 474.73 crore as at March 31, 2016 and share in profit (net)
221.15 crore for the year ended on that date. The financial statements/information of these jointly controlled entities have been
audited by the auditors of jointly controlled entities whose reports have been furnished to us, and our opinion in so far as it relates
to the amounts and disclosures included in respect of these jointly controlled entities, is based solely on the report of such auditors of
jointly controlled entities.
221
Standalone financial statements include the financial statements/information of 7 jointly controlled entities whose financial statements/
financial information reflect the Company’s share in net assets of 296.62 crore as at March 31, 2016 and share in profit (net)
24.79 crore for the year ended on that date. These financial statements/information have been furnished to us by management and our
opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of these jointly
controlled entities is based solely on such financial statements/information certified by management. In our opinion and according to the
information and explanations given to us by the management, these financial statements are not material to the Company. Our opinion is
not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
a)
b)
c)
d)
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.
In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement
with the books of account.
In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under section
133 of the Act, as applicable.
e) On the basis of the written representations received from the directors as on March 31, 2016 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section
164 (2) of the Act.
f) 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.
g) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i.
ii.
The Company has disclosed the impact of pending litigations on its financial position in its financial statements - refer
notes (I) , note (II) in Q(14) and Q(15) to the 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-refer note C(II), D(IV) and Q(6)(a) to the
financial statements; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“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 Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 25, 2016
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ 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 & Toubro Limited (the “Company”) as of
March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
222
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. 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 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting 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 Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section
143(10) of the Companies Act, 2013, 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 auditors’ 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 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, 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, 2016, 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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 25, 2016
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
223
ANNEXURE “B” TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
(i)
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets 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 fixed assets were physically verified by the Management during the year. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination
of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising
all the immovable properties of land and buildings (including land whose title deed have been pledged as security against
debentures issued by the Company), are held in the name of the Company as at the balance sheet date, except the following:
crore
Type of asset
Total no. of
cases
Leasehold /
freehold
Gross block as at
March 31, 2016
Net block as at
March 31, 2016
Remarks
Land
Buildings
2
16
Freehold
Freehold
0.27
3.94
0.27
1.43
Conveyance deed pending
to be executed.
Conveyance deed pending
to be executed.
In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in
the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the
agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no
material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies,
firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act,
2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company’s interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal
amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the balance sheet date.
(iv)
In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of
Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and
securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year and hence
reporting under clause (v) of CARO 2016 is not applicable to the Company.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013.
We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit)
Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013,
and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not
made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has been generally regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State
Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory
dues applicable to it to the appropriate authorities.
224
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax, Sales
Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at
March 31, 2016 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been
deposited as on March 31, 2016 on account of disputes are given below:
Name of
Statute
Nature of Dues
Central Sales
Tax Act, Local
Sales Tax Acts
and Works
Contract Tax
Act
Taxability of sub-contractor turnover,
rate of tax for declared goods,
inter-state sales and non-submission
of forms
Dispute regarding question of
law, non-submission of forms,
classification dispute, tax deducted
at source at lower rate, sales in
transit, high seas sales, labour
turnover, local VAT, rate of tax on
declared goods and other matters.
Non-submission of forms,
classification disputes, disallowance
of sales occasioning import, arbitrary
demand raised, sub-contractors
turnover disallowed, pumping and
freight charges, inter-state sales
turnover, tax deducted at source
disallowed, rates of tax of declared
goods, classification dispute,
disallowance of Entry tax and other
matters.
Dispute regarding question of
law, non-submission of forms,
classification dispute, disallowance
of setoff, sales in transit and high
seas sales, and other matters.
Non Submission of Forms and other
matters.
Dispute regarding question of
law, non-submission of forms,
classification dispute and
disallowances made for credit notes
and occasioning imports, Input
credit reversals, sales in transit, high
seas sales, deficiency in documents,
local VAT, rate of tax on declared
goods and other matters.
Non-submission of forms, additional
demands for pending forms, rate of
tax dispute, disallowance of branch
transfer, sub-contractors turnover,
considering supply agreement as
Works Contract Tax, disallowance
of sales in transit, stock transfer and
other matters.
Forum where
Dispute is
Pending
Supreme Court
High Court
Period to which
Amount Relates
1991-92, 1995-96,
1997-98, 1999-00 to
2006-07
1986-87 to 1999-00,
2005-06 to 2010-11,
2012-13
Amount
Involved
( crore)
15.53
Amount
Unpaid
( crore)
3.19
65.23
48.51
Sales Tax/ VAT
Tribunal
1989-90 to 2012-13
373.09
326.54
Commissioner
(Appeal)
Commissioner
Additional/
Assistant
Commissioner
Joint
Commissioner
Deputy
Commissioner
(Appeal)
2003-04 to 2011-12
16.42
15.77
2008-09, 2010-11,
2011-12
7.01
4.57
1995-96 to 2012-13
16.32
15.11
1994-95 to 2013-14
139.92
91.71
1996-97 to 2013-14
1,541.53
1,493.20
225
Forum where
Dispute is
Pending
Assessing/
Commercial
Tax Officer
Period to which
Amount Relates
1999-00 to 2015-16
Amount
Involved
( crore)
486.02
Amount
Unpaid
( crore)
484.76
Supreme Court
1997-98
0.97
0.27
High Court
2003-04, Oct 2005 to
Aug 2007
42.48
42.48
CESTAT
1991-92 to 2014-15
611.84
608.98
Commissioner
(Appeal)
Additional/
Assistant
Commissioner
Commissioner
(Appeal)
ITAT
2006-07 to 2014-15
2015-16
4.73
0.14
4.55
0.14
2003-04 to 2011-12
3.94
3.80
2002-03, 2003-04,
2006-07 to 2010-11
1,462.11
833.77
Name of
Statute
Nature of Dues
The Central
Excise Act,
1944, Service
Tax under
Finance Act,
1994
Income-tax
Act, 1961
Non-submission of forms,
disallowance of sales occasioning
imports, rate of tax dispute,
deficiency in documents, sales in
transit, high seas sales and other
matters.
Excise Duty dispute on site mix
concrete & PSC grinder.
Export rebate claim, service tax on
commercial construction services,
service tax liability against rate
change and penalty imposed for
wrong availment of CENVAT credit.
Demand of excise duty on
Fabrication of Cable tray supports/
ED exemption/ Export rebate
disallowance / Service Tax on
Business Auxiliary Services/ Valuation
Dispute pertaining to Excise/ Duty
on Supply of Bolts & nuts/ GTA
services, site jobs, export rebate
disallowance, MRP valuation
disputes, CENVAT credit availed,
non-maintenance of separate
records, and other matters.
Disallowance of CENVAT credit,
excise duty refund, excise duty
on site jobs, short payment of
service tax, service tax rate dispute,
valuation dispute and other matters.
Disallowance of CENVAT Credit.
Assessment under section 143(3),
Assessment under section 143(3)
read with section 147, Assessment
under section 143(3) read with
section 144C(13) and demand of
tax deducted at source on Internet
Charges, Reimbursement of Data
card expenses and Bank Guarantee
Charges.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of
loans or borrowings to financial institutions, banks and government and dues to debenture holders.
(ix)
In our opinion and according to the information and explanations given to us, the Company has not raised money by way of initial
public offer or further public offer (including debt instruments) and money raised by way of the term loans have been applied by
the Company during the year for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no
material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi)
In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial
remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Companies Act, 2013.
226
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 188 and
177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, during the year the Company has not made any preferential allotment
or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not
applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into
any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies
Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 25, 2016
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
227
Balance Sheet as at March 31, 2016
EQUITY AND LIABILITIES:
Shareholders’ funds
Share capital
Reserves and surplus
Non-current liabilities
Long term borrowings
Deferred tax liabilities (net)
Other long term liabilities
Long term provisions
Current liabilities
Short term borrowings
Current maturities of long term borrowings
Trade payables
Due to micro enterprises and small enterprises
Due to others
Other current liabilities
Short term provisions
TOTAL
ASSETS:
Non-current assets
Fixed Assets
Tangible assets
Intangible assets
Capital work-in-progress
Intangible assets under development
Non-current investments
Long term loans and advances
Cash and bank balances
Other non-current assets
Current assets
Current investments
Inventories
Trade receivables
Cash and bank balances
Short term loans and advances
Other current assets
TOTAL
CONTINGENT LIABILITIES
COMMITMENTS (Capital and others)
OTHER NOTES FORMING PART OF THE ACCOUNTS
SIGNIFICANT ACCOUNTING POLICIES
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm’s Registration No.117366W/W-100018
by the hand of
P. R. RAMESH
Partner
Membership No. 70928
For SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 038332
Mumbai, May 25, 2016
228
As at 31-3-2016
As at 31-3-2015
Note
crore
crore
crore
crore
A
B
186.30
40532.03
185.91
36898.67
40718.33
37084.58
8339.27
203.36
152.54
370.23
3881.87
1387.15
134.32
21984.48
17204.54
2693.62
7120.59
138.40
250.69
158.91
4670.98
1888.00
26309.19
1680.91
10205.15
21529.33
8508.60
362.99
119.62
344.83
9065.40
9336.04
3791.08
636.91
117.05
18733.55
14681.55
2523.00
47285.98
97069.71
40483.14
86903.76
7668.59
19897.94
3031.73
74.77
113.12
7981.40
17672.82
3825.30
75.43
65.97
7402.20
85.16
304.54
189.50
5380.08
2270.72
23051.11
1515.80
6490.97
18574.16
66283.56
97069.71
57282.84
86903.76
C(I)
Q(13)
C(II)
C(III)
D(I)
D(II)
D(III)
D(IV)
D(V)
E(I)
E(II)
E(I)
E(II)
F
G(I)
G(II)
G(III)
H(I)
H(II)
H(III)
H(IV)
H(V)
H(VI)
I
J
Q
R
A. M. NAIK
Group Executive Chairman (DIN 00001514)
R. SHANKAR RAMAN
M. M. CHITALE
Chief Financial Officer & Whole-time Director (DIN 00101004)
(DIN 00019798)
VIKRAM SINGH MEHTA
(DIN 00041197)
SUSHOBHAN SARKER
(DIN 00088276)
N. HARIHARAN
Company Secretary
M. No. A3471
SUNITA SHARMA
(DIN 02949529)
Directors
Statement of Profit and Loss for the year ended March 31, 2016
2015-16
2014-15
Note
crore
crore
crore
crore
60415.00
635.39
57558.07
540.66
59779.61
2405.97
62185.58
57017.41
2283.37
59300.78
REVENUE:
Revenue from operations (gross)
Less: Excise duty
Revenue from operations (net)
Other income
Total revenue
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 and
stock-in-trade
Other manufacturing, construction and operating expenses
Employee benefits expense
Sales, administration and other expenses
Finance costs
Depreciation, amortisation, impairment and obsolescence
Less: Transfer from revaluation reserve
Less: Overheads charged to fixed assets
Total expenses
Profit before exceptional and extraordinary items and tax
Exceptional items
Profit before extraordinary items and tax
Extraordinary items
Profit before tax
Tax expenses
Current tax
Deferred tax
Profit for the period carried to Balance Sheet
K
L
M
N
O
P
Q(3)
7396.35
17805.37
1129.18
1448.90
14066.80
114.98
4667.51
998.88
–
Q(5)
Q(13)
1551.19
(173.54)
Basic earnings per equity share before extraordinary items ( )
Diluted earnings per equity share before extraordinary items ( )
Basic earnings per equity share after extraordinary items ( )
Diluted earnings per equity share after extraordinary items ( )
Face value per equity share ( )
OTHER NOTES FORMING PART OF THE ACCOUNTS
SIGNIFICANT ACCOUNTING POLICIES
}
Q(12)
Q
R
5496.79
18426.83
1296.75
1831.46
13240.77
(215.61)
4303.44
1009.74
1.59
1628.74
16.30
46629.09
4480.20
2505.07
1449.04
998.88
56062.28
5.53
56056.75
6128.83
560.28
6689.11
–
6689.11
1377.65
5311.46
57.07
56.80
57.07
56.80
2.00
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm’s Registration No.117366W/W-100018
by the hand of
P. R. RAMESH
Partner
Membership No. 70928
For SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 038332
Mumbai, May 25, 2016
A. M. NAIK
Group Executive Chairman (DIN 00001514)
R. SHANKAR RAMAN
M. M. CHITALE
Chief Financial Officer & Whole-time Director (DIN 00101004)
(DIN 00019798)
VIKRAM SINGH MEHTA
(DIN 00041197)
SUSHOBHAN SARKER
(DIN 00088276)
N. HARIHARAN
Company Secretary
M. No. A3471
SUNITA SHARMA
(DIN 02949529)
Directors
44380.43
4162.46
2000.99
1419.65
1008.15
52971.68
14.96
52956.72
6344.06
357.16
6701.22
–
6701.22
1645.04
5056.18
54.46
54.10
54.46
54.10
2.00
229
Cash Flow Statement for the year ended March 31, 2016
A. Cash flow from operating activities:
Profit before tax (excluding extraordinary and exceptional items)
6128.83
6344.06
2015-16
crore
2014-15
crore
Adjustments for:
Dividend received
Depreciation, amortisation, impairment and obsolescence (net)
Exchange difference on items grouped under financing/investing activities
Effect of exchange rate changes on cash and cash equivalents
Interest expense
Interest income
Profit on sale of fixed assets (net)
Profit on sale of investments (net)
Employee stock option-discount forming part of staff expenses
Provision/(reversal) for diminution in value of investments
Operating profit before working capital changes
Adjustments for:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
Increase/(decrease) in trade payables and customer advances
Cash (used in)/generated from operations
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 ventures
Divestment of stake in subsidiaries, associates and joint ventures
Sale of long term investments
(Purchase)/Sale of current investments (net)
Deposits/Loans (given)-subsidiaries, associates, joint venture companies and third parties
Deposits/Loans repaid-subsidiaries, associates, joint venture companies and third parties
Advance towards equity commitment (addition)
Advance towards equity commitment refund
Interest received
Dividend received from subsidiaries
Dividend received from other investments
Consideration received on transfer of Foundry Business unit
Cash received on transfer of Integrated Engineering Services business
Cash (used in)/from investing activities
(1121.35)
998.88
71.80
2.00
1449.04
(513.32)
(83.97)
(232.49)
54.67
10.15
6764.24
(8082.09)
355.14
5867.62
4904.91
(1649.19)
3255.72
(775.85)
132.46
(2943.20)
2289.43
106.65
681.89
(12498.99)
9790.42
(5.25)
1070.15
429.18
1007.91
113.44
79.70
–
(522.06)
(854.19)
1008.15
59.80
(1.48)
1419.65
(565.91)
(29.19)
(406.63)
51.67
(11.72)
7014.21
(5124.36)
(288.17)
3241.35
4843.03
(1725.05)
3117.98
(952.90)
51.75
(2581.79)
434.55
–
(915.51)
(5084.44)
5980.74
(866.03)
87.56
558.31
850.70
3.49
–
549.49
(1884.08)
230
Cash Flow Statement for the year ended March 31, 2016 (contd.)
C. Cash flow from financing activities:
Proceeds from fresh issue of share capital
Proceeds from long term borrowings
Repayment of long term borrowings
(Repayments)/Proceeds from other borrowings (net)
Dividends paid
Additional tax on dividend
Interest paid (including cash flows from interest rate swaps)
Net cash (used in)/ from financing activities
Net (decrease)/increase in cash and cash equivalents (A + B + C)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
2015-16
crore
70.19
1589.22
(1420.79)
64.66
(1512.33)
(134.69)
(1223.47)
(2567.21)
166.45
1591.46
1757.91
2014-15
crore
98.89
5109.83
(3929.44)
(164.97)
(1322.73)
(78.12)
(1150.01)
(1436.55)
(202.65)
1794.12
1591.46
Notes:
1. Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard (AS) 3: “Cash Flow Statements” as specified
in the Companies (Accounting Standards) Rules, 2006.
2. Purchase of fixed assets includes movement of capital work-in-progress during the year.
3. For cash and cash equivalents not available for immediate use as on the Balance Sheet date, see Note G(II)(a).
4. Cash and cash equivalents included in the Cash Flow Statement comprise the following:
(a) Cash and cash equivalents disclosed under current assets [Note H(IV)]
(b) Cash and cash equivalents disclosed under non-current assets [Note G(II)]
Total cash and cash equivalents as per Balance Sheet
(c) Unrealised exchange (gain)/loss on cash and cash equivalents
Total cash and cash equivalents as per Cash Flow Statement
5. Previous year’s figures have been regrouped/reclassified wherever applicable.
2015-16
crore
1680.91
74.77
1755.68
2.23
1757.91
2014-15
crore
1515.80
75.43
1591.23
0.23
1591.46
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm’s Registration No.117366W/W-100018
by the hand of
P. R. RAMESH
Partner
Membership No. 70928
For SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 038332
Mumbai, May 25, 2016
A. M. NAIK
Group Executive Chairman (DIN 00001514)
M. M. CHITALE
R. SHANKAR RAMAN
Chief Financial Officer & Whole-time Director (DIN 00101004)
(DIN 00019798)
VIKRAM SINGH MEHTA
(DIN 00041197)
SUSHOBHAN SARKER
(DIN 00088276)
N. HARIHARAN
Company Secretary
M. No. A3471
SUNITA SHARMA
(DIN 02949529)
Directors
231
Notes forming part of the Accounts
NOTE [A]
Share capital
A(I) Share capital authorised, issued, subscribed and paid up:
Particulars
Authorised:
Equity shares of 2 each
Issued, subscribed and fully paid up:
Equity shares of 2 each
As at 31-3-2016
As at 31-3-2015
Number of
shares
crore
Number of
shares
crore
1,62,50,00,000
325.00 1,62,50,00,000
325.00
93,14,78,845
186.30
92,95,62,061
185.91
A(II) Reconciliation of the number of equity shares and share capital:
Particulars
2015-16
2014-15
Number of
shares
crore
Number of
shares
crore
Issued, subscribed and fully paid up equity shares outstanding
at the beginning of the year
92,95,62,061
185.91
92,69,12,658
185.38
Add: Shares issued on exercise of employee stock options
during the year
Issued, subscribed and fully paid up equity shares outstanding
19,16,784
0.39
26,49,403
0.53
at the end of the year
93,14,78,845
186.30
92,95,62,061
185.91
A(III) Terms/rights attached to equity shares:
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.
A(IV) Shareholders holding more than 5% of equity shares as at the end of the year:
Name of the shareholders
Life Insurance Corporation of India
L&T Employees Welfare Foundation
Administrator of the Specified Undertaking of the Unit Trust
As at 31-3-2016
As at 31-3-2015
Number of
shares
14,64,19,088
11,47,52,281
Shareholding
%
15.72
12.32
Number of
shares
15,55,22,285
11,16,06,174
Shareholding
%
16.73
12.01
of India
7,59,26,462
8.15
7,59,25,962
8.17
A(V) Shares reserved for issue under options outstanding as at the end of the year on un-issued share capital:
Particulars
Employee stock options granted and outstanding #
0.675% 5 years & 1 day US$ denominated foreign currency
convertible bonds (FCCB) ##
As at 31-3-2016
As at 31-3-2015
Number of
equity shares to
be issued as
fully paid
57,93,042
crore
(At face value)
1.16 *
Number of
equity shares to
be issued as
fully paid
77,08,842
crore
(At face value)
1.54 *
63,46,986
1.27 **
63,46,986
1.27 **
*
The equity shares will be issued at a premium of 203.97 crore (previous year: 278.09 crore)
** The equity shares will be issued at a premium of 1215.13 crore (previous year: 1215.13 crore) on the exercise of options
by the bond holders
#
Note A(VIII) for terms of employee stock option schemes
## Note C(I)(b) for terms of foreign currency convertible bonds
232
Notes forming part of the Accounts (contd.)
A(VI) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended
March 31, 2016 are 30,82,94,576 (previous period of five years ended March 31, 2015: 30,82,94,576 shares)
A(VII) 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, 2016: Nil (previous period of five years ended March 31, 2015: Nil)
A(VIII) Stock option schemes
a)
Terms:
i.
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.
ii. 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.
b)
The details of the grants under the aforesaid schemes under various series are summarised below:
Sr.
no.
Series reference
2000
2002 (A)
2002 (B)
2003 (A)
2003 (B)
2006
2006 (A)
2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15
1
2
3
4
5
6
7
8
9
Grant price (
)
Grant dates
Vesting commences on
Options granted and outstanding
at the beginning of the year
Options lapsed during the year
Options granted during the year
Options exercised during the year
Options granted and outstanding
at the end of the year
Of which
Options vested
Options yet to vest
Weighted average remaining
contractual life of options (in years)
2.30
2.30
2.30
2.30
2.30
2.30
11.70
11.70
11.70
11.70 400.70 400.70 400.70 400.70
1-6-2000
1-6-2001
19-4-2002
19-4-2003
19-4-2002
19-4-2003
23-5-2003 onwards 23-5-2003 onwards
1-9-2006 onwards
1-7-2007 onwards
23-5-2004 onwards 23-5-2004 onwards
1-9-2007 onwards
1-7-2008 onwards
25200
25200
32250
32250
59550
59550
47178
47178 585284 499543 304656 510181 6654724 8692214
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
40611
68450
11270
35625 442400 676786
– 150400 337800
–
– 344865 935190
– 168154 183609
36020 169900 1712610 2295894
25200
25200
32250
32250
59550
59550
47178
47178 526919 585284 257366 304656 4844579 6654724
25200
25200
32250
32250
59550
59550
47178
47178
96458 100390 257366 304656 2334008 2663571
–
Nil
–
Nil
–
Nil
–
Nil
–
Nil
–
Nil
–
Nil
– 430461 484894
Nil
5.16
5.38
–
Nil
– 2510571 3991153
0.03
2.18
3.95
c)
The number and weighted average exercise price of stock options are as follows:
Particulars
2015-16
2014-15
No. of stock
options
Weighted
average
exercise price
( )
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
(iii) Options allotted during the year
(iv) Options lapsed during the year
(v) Options granted and outstanding at the end of the year
(vi) Options exercisable at the end of the year out of (v) supra
77,08,842
4,95,265
19,16,784
4,94,281
57,93,042
28,52,010
362.74
282.57
366.57
368.74
354.10
364.76
98,66,116
12,72,990
26,49,403
7,80,861
77,08,842
32,32,795
374.42
297.48
373.74
366.60
362.74
368.52
233
Notes forming part of the Accounts (contd.)
d) Weighted average share price at the date of exercise for stock options exercised during the year is 1543.13 (previous year:
1554.71) per share.
e)
(i)
In respect of stock options granted pursuant to the Company’s stock options schemes, the intrinsic value of the options
(excess of market price of the share over the exercise price of the option) is treated as discount and accounted as
employee compensation over the vesting period.
(ii) Expense on Employee Stock Option Schemes debited to the Statement of Profit and Loss during 2015-16 is 53.51 crore
(previous year: 49.11 crore) net of recoveries of 1.16 crore (previous year: 2.56 crore) from its group companies
towards the stock options granted to deputed employees, pursuant to the employee stock option schemes (Note N). The
entire amount pertains to equity-settled employee share-based payment plans.
f) During the year, the Company has recovered 11.75 crore (previous year: 14.60 crore) from its subsidiary companies
towards the stock options granted to their employees, pursuant to the employee stock option schemes.
g) Had fair value method been adopted for expensing the compensation arising from employee share-based payment plans:
(i)
The employee compensation charge debited to the Statement of Profit and Loss for the year 2015-16 would have been
higher by 6.13 crore (previous year: 9.10 crore) [excluding 2.61 crore (previous year: 2.05 crore) on account of
grants to employees of subsidiary companies]
(ii) Basic EPS before extraordinary items would have decreased from 57.07 (previous year: 54.46) per share to 57.00
(previous year: 54.37) per share
(iii) Basic EPS after extraordinary items would have decreased from 57.07 (previous year: 54.46) per share to 57.00
(previous year: 54.37) per share
(iv) Diluted EPS before extraordinary items would have decreased from 56.80 (previous year: 54.10) per share to 56.72
(previous year: 54.00) per share
(v) Diluted EPS after extraordinary items would have decreased from 56.80 (previous year: 54.10) per share to 56.72
(previous year: 54.00) per share
h) Weighted average fair values of options granted during the year is 965.39 (previous year: 1190.22) per option
i)
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:
Particulars
Sr.
no.
(i) Weighted average risk-free interest rate
(ii) Weighted average expected life of options
(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
2015-16
2014-15
7.66%
3.86 years
30.52%
62.69 per option
1211.45 per option
282.57 per share
8.57%
4.01 years
33.92%
57.18 per option
1444.51 per option
313.49 per share
Expected volatility is based on the historical
volatility of the Company’s share price applicable
to the total expected life of each option.
j)
The balance in share option outstanding account as on March 31, 2016 is 200.28 crore (net) (previous year: 252.56
crore), including 125.92 crore (previous year: 135.98 crore) for which the options have been vested to employees as on
March 31, 2016.
A(IX) The Directors recommend payment of final dividend of 18.25 per equity share of 2 each on the number of shares outstanding
as on the record date.
Provision for final dividend has been made in the books of account for 93,14,78,845 equity shares outstanding as at
March 31, 2016 amounting to 1699.95 crore.
234
Notes forming part of the Accounts (contd.)
NOTE [B]
Reserves and surplus
Particulars
Capital reserve
Securities premium account [Note Q(5)(b)]
As per last Balance Sheet
Addition during the period
Less: Share/bond issue expenses (net of tax)
Premium on inflation linked debentures (net of tax)
Debenture redemption reserve:
As per last Balance Sheet
Add: Transferred from Surplus Statement of Profit and Loss
Less: Transferred to general reserve
Revaluation reserve:
As per last Balance Sheet
Less: Transferred to Statement of Profit and Loss
Less: Transferred to general reserve
Share options outstanding account:
Employee stock options outstanding:
As per last Balance Sheet
Addition during the year
Transferred to general reserve
Deduction during the year
Deferred employee compensation expense:
As per last Balance Sheet
Addition during the year
Deduction during the year
crore
7944.99
181.28
8126.27
0.87
(0.62)
400.01
156.50
150.00
15.57
–
0.39
378.18
46.00
9.84
114.12
(125.62)
(46.00)
71.68
Hedging reserve (net of tax): [Note Q(13)]
As per last Balance Sheet
Transfer pursuant to scheme of arrangement/business transfer
agreement
Addition/(deduction) during the year (net)
(198.25)
–
30.30
General reserve:
As per last Balance Sheet
Add: Transferred from Revaluation reserve
Add: Transferred from ESOP Outstanding
Add: Transferred from debenture redemption reserve
25044.16
0.39
9.84
150.00
Carried forward
As at 31-3-2016
As at 31-3-2015
crore
10.52
crore
crore
10.52
7737.80
225.23
7963.03
15.13
2.91
8126.02
7944.99
143.51
256.50
–
406.51
400.01
19.25
1.59
2.09
15.18
15.57
459.23
86.74
11.60
156.19
300.22
378.18
(135.53)
(86.74)
96.65
(99.94)
(125.62)
(122.25)
79.25
(155.25)
(167.95)
(198.25)
25030.47
2.09
11.60
–
25204.39
33794.95
25044.16
33469.56
235
Notes forming part of the Accounts (contd.)
NOTE [B]
Reserves and surplus (contd.)
Particulars
Brought forward
Surplus Statement of Profit and Loss
As per last Balance Sheet
Depreciation charged against retained earnings
Reversal of deferred tax on depreciation charged against
retained earnings
Profit for the year
Less: Dividends paid for previous year
Additional tax on dividend paid for previous year
Transfer to debenture redemption reserve
Proposed dividend [Note A(IX)]
Additional tax on dividend
As at 31-3-2016
As at 31-3-2015
crore
crore
33794.95
crore
crore
33469.56
3429.11
(6.14)
2.13
5311.46
8736.56
1.79
0.36
156.50
1699.95
140.88
1999.48
333.45
(86.28)
29.33
5056.18
5332.68
1.88
0.32
256.50
1510.54
134.33
1903.57
6737.08
40532.03
3429.11
36898.67
NOTE[C(I)]
Long term borrowings
Particulars
Note
Secured
Unsecured
Total *
Secured
Unsecured
Total *
As at 31-3-2016
As at 31-3-2015
Redeemable non-convertible fixed rate debentures
Redeemable non-convertible inflation linked debentures
0.675% Foreign currency convertible bonds
Term loans from banks
Sales tax deferment loan
C(I)(a)(i) & (ii)
C(I)(a)(iii)
C(I)(b)
C(I)(c)
C(I)(d)
crore
400.00
–
–
–
–
crore
2050.00
108.81
1325.10
4455.08
0.28
crore
2450.00
108.81
1325.10
4455.08
0.28
crore
400.00
–
–
–
–
crore
1600.00
109.76
1250.00
5148.22
0.62
crore
2000.00
109.76
1250.00
5148.22
0.62
400.00
7939.27
8339.27
400.00
8108.60
8508.60
* Loans guaranteed by directors or others
Nil (previous year: Nil)
C(I)(a)
(i)
Secured redeemable non-convertible fixed rate debentures (privately placed):
Sr.
no.
1
Face value per
debenture ( )
Date of
allotment
31-3-2016
crore
31-3-2015
crore
Interest for the
year 2015-16
Terms of repayment for debentures
outstanding as on 31-3-2016
10,00,000
January 5,
2009
400
400
9.15% p.a.
payable annually
Redeemable at face value at the
end of 10th year from the date of
allotment.
Total
400
400
Security: The debentures are secured by way of a first charge having pari passu rights on the immovable property at
certain locations and part of a movable property of a business division, both present and future.
236
Notes forming part of the Accounts (contd.)
C(I)(a) (contd.)
(ii) Unsecured redeemable non-convertible fixed rate debentures (privately placed):
Date of
allotment
31-3-2016
crore
31-3-2015
crore
Interest for the
year 2015-16
Face
value per
debenture ( )
10,00,000
10,00,000
10,00,000
10,00,000
April 10,
2012
May 26,
2010
May 11,
2010
April 13,
2010
10,00,000
August 21,
2014
10,00,000
10,00,000
10,00,000
10,00,000
August 22,
2014
December
11, 2014
February 2,
2015
September
24, 2015
Sr.
no.
1
2
3
4
5
6
7
8
9
Total
Less:
Terms of repayment for
debentures outstanding as on
31-3-2016
Redeemable at face value at the
end of 10th year from the date
of allotment.
Redeemable at face value at the
end of 10th year from the date
of allotment.
Redeemable at face value at the
end of 10th year from the date
of allotment.
Redeemable at face value at the
end of 10th year from the date
of allotment.
1250 Bonds redeemable at face
value at the end 712th day from
date of allotment & 750 bonds
redeemable at face value at
the end 731st day from date of
allotment.
Redeemable at face value at the
end of 2nd year from the date of
allotment.
Redeemable at face value at the
end of 368th day from the date
of allotment.
Redeemable at face value at the
end of 366th day from the date
of allotment.
Redeemable at face value at the
end of 5th year from the date of
allotment.
250
300
300
200
200
250 9.75% p.a.
payable annually
300 8.95% p.a.
payable annually
300 9.15% p.a.
payable annually
200 8.80% p.a.
payable annually
200 9.20% p.a.
payable annually
350
350 9.15% p.a.
payable annually
300 8.42% p.a.
payable annually
300 7.80% p.a.
payable annually
– 8.40% p.a.
payable annually
2200
–
–
1000
2600
550
2050
600 Current portion of long term borrowings [Note D(II)]
1600 Long term borrowings as disclosed in [Note C(I)]
(iii) Unsecured redeemable non-convertible inflation linked debentures:
Sr.
no.
1
Face value per
debenture ( )
10,00,000
Date of
allotment
May
23,2013
31-3-2016
crore
108.81*
31-3-2015
crore
Interest for the
year 2015-16
109.76 # 1.65% p.a.
payable on
inflation adjusted
principal as
on the date of
coupon payment
Terms of repayment for debentures
outstanding as on 31-3-2016
Redeemable at the end of 10th year
from the date of allotment.
Redemption value will be calculated
as per the following formula:
[{Average reference WPI $ (on
Maturity Date)/Average reference
WPI (on Issue Date)} * Face Value]
with Floor Rate as 3% and Cap
Rate as 12%.
$ WPI here refers to Wholesale
Price Index
*
#
The principal amount has been calculated as [{Average reference WPI (as at 31-3-2016)/Average reference WPI (as
at 23-5-2013)} * Face Value]
The principal amount has been calculated as [{Average reference WPI (as at 31-3-2015)/Average reference WPI (as
at 23-5-2013)} * Face Value]
237
Notes forming part of the Accounts (contd.)
C(I)(b) Foreign currency convertible bonds:
0.675% US$ denominated 5 years & 1 day Foreign Currency Convertible Bonds (FCCB) carried at 1325.10 crore as on
March 31, 2016 (previous year: 1250 crore) represent 1000 bonds of US$ 2,00,000 each. The bonds are convertible into the
Company’s fully paid equity shares of 2 each at a conversion price of 1916.50 per share at the option of the bond holders
at any time on and after December 1, 2014 up to October 15, 2019. The bonds are redeemable, subject to fulfillment of
certain conditions, in whole but not in part, at the option of the Company, on or at any time after October 22, 2017 but not
less than seven business days prior to the maturity date, at the principal amount together with accrued interest (calculated up
to but excluding the date of redemption) on the date fixed for redemption, unless the bonds have been previously redeemed,
converted or purchased and cancelled.
C(I)(c) Details of term loans (unsecured): foreign currency loans:
Sr.
no.
31-3-2016
crore
31-3-2015
crore
Rate of interest
Terms of repayment of term loan outstanding as on 31-3-2016
1
2
3
4
5
6
7
8
9
10
11
12
13
Total
Less:
1325.10
1250.00
USD LIBOR +
Spread
Repayment due on October 21, 2019
662.55
625.00
USD LIBOR +
Spread
Repayable in 3 installments on (i) November 3, 2018 (ii) November 3, 2019 and
(iii) November 3, 2020
331.28
312.50
132.51
125.00
165.64
156.25
USD LIBOR +
Spread
USD LIBOR +
Spread
USD LIBOR +
Spread
Repayment due on July 2, 2018
Repayment due on September 27, 2017
Repayable on July 14, 2017
292.94
276.34
USD LIBOR +
Spread
Repayable in 3 installments on (i) August 30, 2016 (ii) August 30, 2017 and (iii)
June 28, 2018
404.44
381.52
USD LIBOR +
Spread
Repayable in 3 installments on (i) August 30, 2016 (ii) August 30, 2017 and (iii)
June 28, 2018
662.55
625.00
USD LIBOR +
Spread
Repayable in 3 installments on (i) August 30, 2016 (ii) August 30, 2017 and (iii)
June 28, 2018
662.55
625.00
USD LIBOR +
Spread
Repayable in 3 installments on (i) August 30, 2016 (ii) August 30, 2017 and (iii)
June 28, 2018
370.75
349.74
USD LIBOR +
Spread
–
312.50 Fixed Interest Rate
Repayable in 2 installments on (i) August 30, 2016 and (ii) August 30, 2017
115.95
145.83
USD LIBOR +
Spread
Repayable in 6 equal installments payable annually from September 18, 2013 to
September 18, 2017 with the final installment due on June 18, 2018
165.63
–
USD LIBOR +
Spread
Repayable on October 19, 2018
5291.89
5184.68
836.81
36.46 Current portion of long term borrowings [Note D(II)]
4455.08
5148.22 Long term borrowings as disclosed in [Note C(I)]
238
Notes forming part of the Accounts (contd.)
C(I)(d)
Sales tax deferment loan (unsecured):
Sr.
no.
As at 31-3-2016
crore
As at 31-3-2015
crore
Rate of
interest
Terms of repayment as on March 31, 2016
1
2
3
4
Total
Less:
0.24
0.24
0.14
–
0.62
0.34
0.28
0.33
0.36
0.28
0.10
1.07
0.45
0.62
Repayable in 3 annual installments of 0.08 crore ending
April 26, 2018
Interest Free
Repayable in 2 annual installments of 0.12 crore ending
April 26, 2017
Repayable in 1 annual installment of 0.14 crore on
April 26, 2016
Current portion of long term borrowings [Note D(II)]
Long term borrowings as disclosed in [Note C(I)]
NOTE [C(II)]
Other long term liabilities
Forward contract payable
Others
NOTE [C(III)]
Long term provisions
Particulars
Particulars
Provision for employee benefits:
Employee pension scheme [Note Q(8)(ii)(a)]
Post-retirement medical benefits plan [Note Q(8)(ii)(a)]
Interest rate guarantee-provident fund [Note Q(8)(ii)(a)]
As at 31-3-2016
As at 31-3-2015
crore
125.15
27.39
152.54
crore
86.07
33.55
119.62
As at 31-3-2016
As at 31-3-2015
crore
crore
226.78
143.45
–
370.23
202.08
137.89
4.86
344.83
239
Notes forming part of the Accounts (contd.)
NOTE [D(I)]
Short term borrowings
Particulars
Secured Unsecured
Total*
Secured Unsecured
Total*
As at 31-3-2016
As at 31-3-2015
Loans repayable on demand from banks [Note D(I)(a)]
Short term loans and advances from banks [Note D(I)(a)]
Commercial Paper
Loans from related parties (subsidiary companies)
crore
120.54
–
–
–
crore
crore
–
3252.54
499.54
9.25
120.54
3252.54
499.54
9.25
crore
57.79
206.25
–
–
crore
crore
–
2484.04
985.75
57.25
57.79
2690.29
985.75
57.25
120.54
3761.33
3881.87
264.04
3527.04
3791.08
* Loans guaranteed by directors or others Nil (previous year: Nil)
D(I)(a)
Loans repayable on demand from banks include fund based working capital facilities viz. cash credits and demand loans. The
secured portion of loans repayable on demand from banks of 120.54 crore (previous year: 57.79 crore), short term loans
and advances from the banks of Nil (previous year: 206.25 crore), working capital facilities and other non-fund based
facilities viz. bank guarantees and letters of credit, are secured by hypothecation of inventories, book debts and receivables.
NOTE [D(II)]
Current maturities of long term borrowings
Particulars
Unsecured:
Redeemable non-convertible fixed rate debentures [Note C(I)(a)(ii)]
Term loan from banks [Note C(I)(c)]
Sales tax deferment loan [Note C(I)(d)]
* Loans guaranteed by directors or others Nil (previous year: Nil)
NOTE [D(III)]
Trade payables
Particulars
Due to micro enterprises and small enterprises [Note Q(22)]
Due to others
Acceptances
Due to related parties:
Subsidiary companies
Associate companies
Joint venture companies
Due to others
240
As at 31-3-2016
As at 31-3-2015
crore*
550.00
836.81
0.34
1387.15
crore*
600.00
36.46
0.45
636.91
As at 31-3-2016
As at 31-3-2015
crore
crore
134.32
crore
crore
117.05
660.83
2256.57
5.35
36.81
19024.92
928.48
1782.16
22.81
81.37
15918.73
21984.48
22118.80
18733.55
18850.60
Notes forming part of the Accounts (contd.)
NOTE [D(IV)]
Other current liabilities
Particulars
Interest accrued but not due on borrowings
Unclaimed dividend
Due to customers (construction related activity)
Due to customers (property development projects)
Advances from customers
Forward contract payable
Other payables (including sales tax, service tax, excise duty and others) [Note D(IV)(a)]
As at 31-3-2016
As at 31-3-2015
crore
196.73
39.33
4795.33
222.18
10712.22
369.37
869.38
17204.54
crore
158.08
33.59
4008.46
365.27
9054.19
347.75
714.21
14681.55
D(IV)(a) Other payables include due to directors 47.83 crore (previous year: 50.61 crore).
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
NOTE [D(V)]
Short term provisions
Provision for employee benefits:
Gratuity [Note Q(8)(ii)(a)]
Compensated absences
Employee pension scheme [Note Q(8)(ii)(a)]
Post-retirement medical benefits plan [Note Q(8)(ii)(a)]
Others:
Current tax [Net of payment made 1529.13 crore]
Proposed equity dividend
Additional tax on dividend
Other provisions (AS 29 related) [Note Q(15)]
44.27
502.10
16.82
11.30
2.07
1699.95
140.88
276.23
34.01
486.02
13.26
10.04
574.49
543.33
75.69
1510.54
134.33
259.11
2119.13
2693.62
1979.67
2523.00
241
Notes forming part of the Accounts (contd.)
NOTE [E(I)]
Tangible assets
Class of assets
As at
Land
Freehold
Leasehold
Sub total -Land
Buildings
Owned
Leased out
Sub total -Buildings
Plant and equipment
Owned
Leased out
Sub total- Plant &
equipment
Computers
Owned
Taken on lease
Sub total- Computers
Office equipment
Owned
Sub total - Office
equipment
Furniture and fixtures
Owned
Sub total - Furniture &
fixtures
Vehicles
Owned
Sub total-Vehicles
Other assets
Owned
Railway sidings
Ships
Sub total-Other assets
Lease Adjustment
Total
Cost/valuation
Depreciation
As at
31-3-2016
Up to
31-3-2015
For the
year* Deductions
Up to
31-3-2016
crore
Impairment
As at
31-3-2016
Book value
As at
31-3-2016
As at
31-3-2015
1-4-2015 Additions Deductions
404.99
90.67
495.66
0.65
0.73
1.38
2839.67
124.31
2963.98
68.29
2.28
70.57
4.10
–
4.10
49.96
–
49.96
7337.57 550.63
–
550.63
22.93
7360.50
178.79
–
178.79
493.22
0.08
493.30
223.38
223.38
87.05
–
87.05
27.97
27.97
25.08
0.08
25.16
5.78
5.78
401.54
91.40
492.94
2858.00
126.59
2984.59
7709.41
22.93
7732.34
555.19
–
555.19
245.57
245.57
–
7.14
7.14
–
1.49
1.49
–
–
–
–
8.63
8.63
505.74 103.25
4.15
13.39
107.40
519.13
11.63
–
11.63
597.36
17.54
614.90
–
–
–
–
–
–
3331.17 687.49
1.16
688.65
9.67
3340.84
103.99
–
103.99
3914.67
10.83
3925.50
–
6.93 #
6.93
345.65
0.08
345.73
159.13
159.13
75.34
–
75.34
31.34
31.34
22.11
0.08
22.19
4.92
4.92
398.88
–
398.88
185.55
185.55
238.23
238.23
23.81
23.81
8.14
8.14
253.90
253.90
132.16
132.16
22.53
22.53
7.44
7.44
147.25
147.25
218.36
218.36
46.40
46.40
24.19
24.19
240.57
240.57
115.10
115.10
28.71
28.71
16.91
16.91
126.90
126.90
0.25
68.41
68.66
–
12062.07
–
–
–
–
807.81
–
–
–
–
296.12
0.25
68.41
68.66
–
12573.76
0.25
30.39
30.64
–
4649.87
–
4.92
4.92
–
960.38
–
–
–
–
167.08
0.25
35.31
35.56
–
5443.17
401.54
82.77
484.31
2260.64
109.05
2369.69
3794.74
5.17
3799.91
156.31
–
156.31
60.02
60.02
404.99
83.53
488.52
2333.93
110.92
2444.85
4006.40
6.33
4012.73
147.57
–
147.57
64.25
64.25
106.65
106.65
106.07
106.07
113.67
113.67
103.26
103.26
–
33.10
33.10
(3.07)
7120.59
–
38.02
38.02
(3.07)
7402.20
250.69
7371.28
304.54
7706.74
–
–
–
–
–
–
–
–
–
–
–
–
–
6.93
6.93
Previous year
11403.58 1010.37
351.88 12062.07
3832.77 1036.54
219.44
4649.87
Add: Capital work-in-progress
# Impairment up to 31-3-2016
* Includes
6.93 crore. During the year
Nil
6.14 crore transferred to Retained Earnings pursuant to Schedule II of Companies Act, 2013
1. Cost/valuation of freehold land includes 0.27 crore for which conveyance is yet to be completed.
2. Cost/valuation of buildings includes ownership accommodation:
(i)
(a)
in various co-operative societies, shop-owners’ associations and non-trading corporations 99.84 crore, including 2,570
shares of 50 each, 232 shares of 100 each and 1 share of 250 each.
(b)
in various apartments 11.20 crore.
(c)
in various co-operative societies 12.88 crore for which share certificates are yet to be issued.
(d)
in proposed co-operative societies 0.53 crore.
242
Notes forming part of the Accounts (contd.)
NOTE [E(I)] (contd.)
(ii) of 3.94 crore in respect of which the deed of conveyance is yet to be executed.
(iii) of 8.45 crore representing undivided share in properties at various locations.
3. Additions during the year and capital work-in-progress include 5.91 crore (previous year: 18.50 crore) being borrowing cost
capitalised in accordance with Accounting Standard (AS) 16 on “Borrowing Costs”. Asset wise break-up of borrowing costs
capitalised is as follows:
Class of assets
Building (owned)
Plant & equipment (owned)
Office equipment (owned)
Furniture and fixtures (owned)
Capital work-in-progress
Total
2015-16
3.13
–
–
–
2.78
5.91
crore
2014-15
26.30
0.30
0.02
0.03
(8.15)
18.50
4. Depreciation for the year includes obsolescence amounting to 10.45 crore (previous year: 30.68 crore).
5.
Own assets given on operating lease have been presented separately in the schedule as per Accounting Standard (AS) 19 on
”Leases”.
6. Cost/valuation as at April 1, 2015 of individual assets has been reclassified wherever necessary.
7. Out of its lease hold land at Hazira, the Company has given certain portion of land for the use of its subsidiary company. The lease
deed in respect of leasehold land given to the subsidiary company is under execution.
8.
In respect of asset components, whose useful life has expired as on April 1, 2015, the carrying amount of 6.14 crore before tax
( 4.01 crore net of tax of 2.13 crore) has been adjusted against retained earnings as on April 1, 2015.
9. Details of assets where useful life is different from that specified in Schedule II:
Category of assets
Sub-category of assets
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
Sr.
no.
1.
2.
3.
4.
5.
6.
7.
8
Sr.
no.
1.
2.
Non-factory buildings (RCC Frame
Structure)
Non-factory buildings (other than
RCC Frame Structure)
Ownership flats
Office equipment
Air conditioning and refrigeration
equipment
Laboratory equipment
Canteen equipment
Motor vehicles
Building portion - RCC Frame Structure
Multifunctional devices
Assets used in Heavy Engineering and Shipbuilding business:
Category of assets
Sub-category of assets
Factory buildings
Plant & equipment general
Boring/Rolling/Drilling/Milling machines
Modular Furnace
Other Furnaces
Horizontal Autoclaves
Load bearing structures
Cranes
Carpeted Roads-other than RCC
3.
Roads
60
30
60
5
15
10
15
8
20-60
10-30
50
4
12
8
8
7
Useful life as per
Schedule II (in years)
30
15
5
Useful life adopted
(in years)
15-50
10-30
5-15
5-30
10-30
50
10-30
5-15
243
Notes forming part of the Accounts (contd.)
NOTE [E(I)] (contd.)
Assets used in Electrical & Automation business:
Sr.
no.
1.
Category of assets
Sub-category of assets
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
Plant & equipment general
Specialised machine tools, dies, jigs,
fixtures, gauges for electrical business
DG sets above 30 kva
15
15
5
12
Assets used in Construction business:
Sr.
no.
1.
2.
Category of assets
Sub-category of assets
Plant and equipment used in civil
construction
Photographic equipment
Minor plant & equipment of
construction activity
Assets used in Metallurgical & Material Handling business:
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
12
15
5
5
Sr.
no.
1.
2.
3.
4.
Category of assets
Sub-category of assets
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
Plant and equipment used in civil
construction
Office equipment
Air conditioning and refrigeration
equipment
Photographic equipment
Minor plant & equipment of
construction activity
Office equipment - deployed at project
sites
Air conditioning and refrigeration
equipment - deployed at project sites
Photographic equipment - deployed at
project sites
12
5
15
15
5
3
3
3
Assets used in Power business:
Sr.
no.
1.
Category of assets
Sub-category of assets
Plant and equipment
Site facilities
Useful life as per
Schedule II (in years)
15
Useful life adopted
(in years)
4
NOTE [E(II)]
Intangible assets
Class of assets
As at
Cost/valuation
1-4-2015 Additions Deductions
2.08
17.51
–
3.94
166.24
19.09
As at
31-3-2016
181.67
23.03
Up to
31-3-2015
116.54
15.41
Amortisation
For the
period Deductions
1.95
18.85
–
1.38
Book value
As at
31-3-2016
Up to
31-3-2016
133.44
16.79
48.23
6.24
As at
31-3-2015
49.70
3.68
crore
42.96
228.29
66.11
87.56
–
2.08
109.07
313.77
11.18
143.13
13.96
34.19
–
1.95
25.14
175.37
83.93
138.40
31.78
85.16
Specialised softwares
Technical knowhow
New product design and
development
Total
Previous year
259.63
37.33
68.67
228.29
145.64
27.64
30.15
143.13
Add: Intangible assets under development
# Impairment during the year
Nil (previous year: 1.16 crore)
158.91 #
297.31
189.50
274.66
244
Notes forming part of the Accounts (contd.)
NOTE [F]
Non-current investments (at cost unless otherwise specified)
Particulars
Long term investments
(Trade Investments unless otherwise specified)
(A) Investment in equity instruments
(a) Subsidiary companies
(b) Associate companies
(c) Other investments
Less: Provision for diminution in value
(B) Investment in preference shares of subsidiary companies
5403.16
(C) Investment in integrated joint ventures
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
13802.91
4.98
20.00
151.46
14769.69
30.63
43.00
16.46
2426.00
13676.43
5403.16
818.35
19897.94
14826.86
2426.00
419.96
17672.82
Non-current investments (at cost unless otherwise specified)
Particulars
Trade investments (unless otherwise specified)
(A) Investments in fully paid equity instruments
(a) Subsidiary companies:
L&T Valves Limited
Bhilai Power Supply Company Limited
EWAC Alloys Limited
Hi-Tech Rock Products & Aggregates Limited
Kesun Iron & Steel Company Private Limited
Larsen & Toubro Consultoria E Projeto Ltda
L&T-Gulf Private Limited
L&T Ahmedabad-Maliya Tollway Limited [
L&T Aviation Services Private Limited
L&T Capital Company Limited (Capital reduction and face value reduced
1000 (previous year: 1000)]
from 4,400 to 10 per share)
L&T Cassidian Limited
L&T Finance Holdings Limited (quoted)
L&T Chennai-TADA Tollway Limited [
L&T Construction Equipment Limited
L&T Devihalli Hassan Tollway Limited [
L&T General Insurance Company Limited
L&T Halol-Shamlaji Tollway Limited [
L&T Howden Private Limited
L&T Infocity Limited
L&T Metro Rail (Hyderabad) Limited
L&T Infrastructure Development Projects Limited
Carried forward
1000 (previous year: 1000)]
1000 (previous year: 1000)]
1000 (previous year: 1000)]
Face value
per unit
Number of units
As at
31-3-2016
As at
31-3-2016
crore
As at
31-3-2015
crore
100
10
100
10
10
R$ 1
10
10
10
18,00,000
49,950
8,29,440
50,000
9,500
–
–
100
4,56,00,000
10
10
10
10
10
10
10
10
10
10
10
10
50,000
37,000
1,16,97,09,304
100
12,00,00,000
100
70,50,00,000
100
1,50,30,000
–
2,03,06,623
31,28,69,096
201.54
0.05
150.24
0.05
0.01
–
–
–
45.60
0.05
0.04
1468.18
–
84.32
–
705.00
–
15.03
–
20.31
2696.48
5386.90
201.54
0.05
150.24
0.05
0.01
0.27
4.00
–
45.60
22.00
0.04
1575.15
–
84.32
–
620.00
–
15.03
16.02
19.82
2696.48
5450.62
245
Notes forming part of the Accounts (contd.)
NOTE [F]
Non-current investments (at cost unless otherwise specified) (contd.)
26000 (previous year: 26000)]
1000 (previous year: 1000)]
Particulars
(a) Subsidiary companies (contd.)
Brought forward
L&T Kobelco Machinery Private Limited
L&T Krishnagiri Walajahpet Tollway Limited [
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Natural Resources Limited
L&T Power Development Limited
L&T Power Limited
L&T Powergen Limited
L&T Rajkot-Vadinar Tollway Limited [
L&T Realty Limited
L&T Samakhiali Gandhidham Tollway Limited
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T Seawoods Limited
L&T Shipbuilding Limited
L&T Solar Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T Electricals and Automation Limited
L&T Transportation Infrastructure Limited
L&T-Sargent & Lundy Limited
L&T Hydrocarbon Engineering Limited
L&T Technology Services Limited* (see page 249)
L&T-Valdel Engineering Limited
Larsen & Toubro Infotech Limited
Larsen & Toubro International FZE
Larsen & Toubro Arabia LLC
Larsen & Toubro Hydrocarbon International Limited LLC
Larsen & Toubro LLC
Larsen & Toubro (Saudi Arabia) LLC
PNG Tollway Limited
Raykal Aluminum Company Private Limited
Spectrum Infotech Private Limited
L&T Infrastructure Engineering Limited
L&T Cutting Tools Limited
L&T Global Holdings Limited
Marine Infrastructure Developer Private Limited
LTH Milcom Private Limited
Less: Provision for diminution in value
246
Face value
per unit
Number of units
As at
31-3-2016
As at
31-3-2016
crore
As at
31-3-2015
crore
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
40
10
1
AED
550500
SAR 1000
SAR 1000
USD 1
SAR 1000
10
10
10
10
1000
USD 100
10
10
2,55,00,000
2,600
11,93,91,000
36,24,06,000
–
3,11,27,00,000
51,157
–
100
4,71,60,700
13,000
–
–
1,99,95,50,000
81,86,80,000
–
41,92,84,000
50,000
1,08,64,000
27,82,736
1,00,00,50,000
7,50,00,000
–
16,12,50,000
–
7,500
450
50,000
625
2,24,22,660
37,750
4,40,000
36,00,000
68,000
1,000
9,900
1,13,340
5386.90
25.50
–
119.39
362.41
–
3112.70
0.05
–
–
47.16
0.01
–
–
1999.55
818.68
–
419.28
0.05
10.86
0.82
1000.05
300.00
–
134.25
–
11.08
0.68
0.23
1.06
22.42
0.04
6.80
21.85
0.30
0.67
0.01
0.11
13802.91
135.00
13667.91
5450.62
25.50
–
119.39
362.41
0.05
2729.30
0.05
0.05
–
47.16
0.01
0.01
95.31
1999.55
818.68
0.05
419.28
0.05
10.86
0.82
1000.05
300.00
23.89
134.25
1147.40
11.08
0.68
0.23
–
43.97
0.04
6.80
21.85
0.30
–
–
–
14769.69
–
14769.69
Notes forming part of the Accounts (contd.)
NOTE [F]
Non-current investments (at cost unless otherwise specified) (contd.)
Particulars
(b) Associate companies:
Gujarat Leather Industries Limited
JSK Electricals Private Limited
L&T-Chiyoda Limited
Magtorq Private Limited
Rishi Consfab Private Limited
Salzer Electronics Limited (quoted)
Less: Provision for diminution in value
(c) Other investments:
International Seaport Dredging Limited
Tidel Park Limited
Astra Microwave Products Limited (quoted)
BBT Elevated Road Private Limited
Utmal Multi purpose Service Co-operative Society Limited (B Class)
(non-trade investments) [
30,000 (previous year: 30,000)]
Less: Provision for diminution in value
Total - (A) = (a)+(b)+(c)
(B) Investments in preference shares of subsidiary companies
L&T Shipbuilding Limited -12% Cumulative redeemable preference shares,
October 22, 2028
L&T Shipbuilding Limited -12% Non-convertible cumulative redeemable preference
shares, June 24, 2029
L&T Shipbuilding Limited -12% Non-convertible cumulative redeemable at par preference
shares, April 16, 2030
L&T Shipbuilding Limited -9% Non-convertible non-cumulative redeemable at par
preference shares, May 28, 2030
L&T Shipbuilding Limited -9% Non-convertible non-cumulative redeemable at par
preference shares, August 10, 2030
L&T Shipbuilding Limited -9% Non-convertible non-cumulative redeemable at par
preference shares, September 29, 2030
L&T Shipbuilding Limited -9% Non-convertible non-cumulative redeemable at par
preference shares, December 8, 2030
L&T Shipbuilding Limited -9% Non-convertible non-cumulative redeemable at par
preference shares, February 4, 2031
L&T Technology Services Limited -10% Non-convertible non-cumulative redeemable
preference shares, February 14, 2024
L&T Technology Services Limited -10% Non-convertible non-cumulative redeemable
preference shares, September 21, 2024
Carried forward
Face value
per unit
Number of units
As at
31-3-2016
As at
31-3-2016
crore
As at
31-3-2015
crore
10
10
10
100
10
10
7,35,000
–
–
9,000
–
–
10000
10
2
10
100
15,899
40,00,000
–
1,00,000
300
0.56
–
–
4.42
–
–
4.98
0.56
4.42
15.90
4.00
–
0.10
0.00
0.56
2.12
4.50
4.42
2.70
16.33
30.63
0.56
30.07
15.90
4.00
23.00
0.10
0.00
20.00
15.90
4.10
13676.43
43.00
15.90
27.10
14826.86
10
9,00,00,000
90.00
90.00
10
5,00,00,000
50.00
50.00
10
11,00,00,000
110.00
10
42,18,60,000
421.86
10
25,00,00,000
250.00
10
7,50,00,000
75.00
10
25,90,00,000
259.00
10
21,60,00,000
216.00
–
–
–
–
–
–
10
40,00,00,000
400.00
400.00
10
35,00,00,000
350.00
2221.86
350.00
890.00
247
Notes forming part of the Accounts (contd.)
NOTE [F]
Non-current investments (at cost unless otherwise specified) (contd.)
Particulars
(B) Investments in preference shares of subsidiary companies (contd.)
Brought forward
L&T Seawoods Limited -10% Convertible non-cumulative and redeemable preference
shares, March 30, 2022
L&T Seawoods Limited -10% Non-cumulative optionally convertible redeemable at par
preference shares, May 12, 2022
L&T Seawoods Limited -10% Non-cumulative optionally convertible redeemable at par
preference shares, July 14, 2022
L&T Seawoods Limited -10% Non-cumulative optionally convertible redeemable at par
preference shares, September 3, 2022
L&T Hydrocarbon Engineering Limited -10% Non-convertible non-cumulative redeemable
Number of units
As at
31-3-2016
Face value
per unit
v
As at
31-3-2016
v crore
As at
31-3-2015
v crore
2221.86
890.00
2
1,03,60,00,000
1,036.00
1036.00
2
2
2
4,80,00,000
48.00
4,22,50,000
42.25
4,20,00,000
42.00
–
–
–
preference shares, February 6, 2029
10
50,00,00,000
500.00
500.00
L&T Hydrocarbon Engineering Limited -12% Non-cumulative optionally convertible
redeemable preference shares, October 19, 2030
L&T Hydrocarbon Engineering Limited -12% Non-cumulative optionally convertible
redeemable preference shares, March 30, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally convertible
redeemable at par preference shares, May 10, 2030
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally convertible
redeemable at par preference shares, June 8, 2030
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally convertible
redeemable at par preference shares, July 21, 2030
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally convertible
redeemable at par preference shares, October 16, 2030
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally convertible
redeemable at par preference shares, January 10, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally convertible
redeemable at par preference shares, March 17, 2031
10
13,00,00,000
130.00
10
13,00,00,000
130.00
2
52,30,00,000
523.00
2
2
2
2
2
1,65,00,000
16.50
70,00,000
7.00
3,20,00,000
32.00
70,00,000
7.00
1,92,50,000
19.25
L&T Realty Limited - 12% Non-convertible non-cumulative redeemable at par preference
shares, May 26, 2025
10
64,83,00,000
648.30
–
–
–
–
–
–
–
–
–
Less: Provision for diminution in value
Total (B)
(C) Investments in integrated joint ventures
Desbuild-L&T Joint Venture
HCC-L&T Purulia Joint Venture
International Metro Civil Contractors Joint Venture
L&T-Eastern Joint Venture
L&T-AM Tapovan Joint Venture
L&T-Hochtief Seabird Joint Venture
L&T Shanghai Urban Construction (Group) Corporation Joint Venture
Metro Tunneling Group
Carried forward
248
5403.16
2426.00
–
–
5403.16
2426.00
0.05
0.28
7.18
5.51
0.07
0.28
9.24
5.21
106.74
107.72
23.72
13.46
15.49
172.43
23.72
13.27
14.90
174.41
Notes forming part of the Accounts (contd.)
NOTE [F]
Non-current investments (at cost unless otherwise specified) (contd.)
Particulars
Face value
per unit
Number of units
As at
31-3-2016
(C) Investments in integrated joint ventures (contd.)
Brought forward
Metro Tunneling Delhi - L&T Shanghai Urban Construction (Group) Corporation Joint
Venture
L&T-Shanghai Urban Construction (Group) Corporation Joint Venture CC 27 Delhi
Metro Tunneling Chennai - L&T Shanghai Urban Construction (Group) Corporation Joint
Venture
Larsen & Toubro Limited - Shapoorji Pallonji & Co. Limited Joint Venture
Civil Works Joint Venture
L&T Delma Mafraq Joint Venture
Larsen & Toubro & NCC Limited
L&T–AL-Sraiya LRDP 6 Joint Venture
Total (C)
Total Non-current Investments (A+B+C)
As at
31-3-2016
crore
As at
31-3-2015
crore
172.43
174.41
37.15
119.10
23.23
28.32
267.79
144.76
14.28
11.29
56.58
65.26
44.95
21.64
57.12
–
–
–
818.35
419.96
19897.94
17672.82
* Pursuant to the Scheme of Arrangement approved by the Hon’ble High Court of Bombay vide order dated April 1, 2016, the face value per equity share has
been reduced to
2 each from
40 each.
Details of quoted/unquoted investments:
Particulars
(a) Aggregate amount of quoted investments and market value thereof;
Book Value
Market Value
(b) Aggregate amount of unquoted investments;
Book Value
(c) Aggregate provision for diminution in value of investments is 151.46 crore (previous year: 16.46 crore)
As at
31-3-2016
crore
As at
31-3-2015
crore
1468.18
7468.59
1614.48
8060.92
18429.76
16058.34
249
Notes forming part of the Accounts (contd.)
NOTE [G(I)]
Long term loans and advances
Particulars
Secured considered good:
Loans against mortgage of house property
Capital advances
Inter-corporate deposits-others
Other loans and advances (KMPs)
Unsecured considered good:
Capital advances
Loans and advances to related parties:
Subsidiary companies:
Advances towards equity commitment
Inter-corporate deposits [Note Q(1)(a)]
Joint venture companies:
Others
Other loans and advances:
Security deposits
Earnest money deposits
Advances recoverable in cash or in kind
NOTE [G(II)]
Cash and bank balances
Particulars
Cash and cash equivalents:
Cash and bank balances not available for immediate use
[Note G(II)(a)]
As at 31-3-2016
As at 31-3-2015
crore
crore
1.24
1.15
–
–
36.01
5.25
779.72
11.87
90.02
0.63
2105.84
3031.73
2.36
1.63
3.00
0.01
57.46
1986.84
43.97
12.01
68.75
0.46
1648.81
3825.30
As at 31-3-2016
As at 31-3-2015
crore
74.77
74.77
crore
75.43
75.43
crore
G(II)(a) Particulars of cash and bank balances not available for immediate use
Particulars
1
2
3
Amount received (including interest accrued thereon) from customers of Property
Development business – to be handed over to housing society on its formation.
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.
Other bank balances (including interest accrued thereon) not available for immediate
use being in the nature of security offered for bids submitted, loans availed etc.
Total
Less: Amount reflected under current assets [Note H(IV)]
Amount reflected under non-current assets [Note G(II)]
As at
31-3-2016
As at
31-3-2015
21.50
20.72
20.79
16.73
159.58
201.87
127.10
74.77
160.54
197.99
122.56
75.43
250
Notes forming part of the Accounts (contd.)
NOTE [G(III)]
Other non-current assets
Particulars
Unamortised expenses
Interest accrued on inter-corporate deposits
NOTE [H(I)]
Current investments
Particulars
Current investments
(1) Government and trust securities
Less: Provision for diminution in value
(2) Debentures and bonds
(a) Subsidiary companies
(b) Others
Less: Provision for diminution in value
(3) Mutual funds
Less: Provision for diminution in value
As at 31-3-2016
As at 31-3-2015
crore
26.28
86.84
113.12
crore
52.43
13.54
65.97
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
1068.61
2.58
22.75
930.67
10.34
2662.67
0.80
1484.77
2.53
1066.03
1482.24
22.95
838.31
0.84
943.08
860.42
3037.62
0.20
2661.87
4670.98
3037.42
5380.08
Other particulars in respect of current investment mentioned in H(I) are as follows:
Particulars
Current investments:
(1) Government and trust securities:
8.28% Government of India Bonds 2032 (quoted)
7.16% Government of India Bond 2023 (quoted)
8.15% Government of India Bonds 2022 (quoted)
8.15% Government of India Bond 2022 (quoted)
8.33% Government of India Bonds 2026 (quoted)
8.28% Government of India Bond 2027 (quoted)
8.28% Government of India Bond 2027 (quoted)
9.20% Government of India Bond 2030 (quoted)
8.32% Government of India Bond 2032 (quoted)
6.90% Oil Marketing Companies GOI Special Bonds 2026
9.23% Government of India Bond 2043 (quoted)
Carried forward
Face value
per unit
Number of units
As at
31-3-2016
As at
31-3-2016
crore
As at
31-3-2015
crore
100
100
100
100
100
100
100
100
100
100
100
5,00,000
–
–
20,00,000
75,00,000
–
1,24,00,000
4,22,84,000
15,00,000
13,00,000
3,00,00,000
5.14
–
–
20.36
79.77
–
128.03
466.27
15.48
12.04
341.52
1068.61
4.91
81.56
20.29
–
79.77
103.75
–
290.10
15.63
–
–
596.01
251
Notes forming part of the Accounts (contd.)
NOTE [H(I)]
Current investments (contd.)
Particulars
Face value
per unit
Number of units
As at
31-3-2016
(1) Government and trust securities: (contd.)
Brought forward
8.83% Government of India Bond 2023 (quoted)
6.90% Oil Marketing Companies GOI Special Bonds 2026 (quoted)
9.23% Government of India Bond 2043 (quoted)
8.17% Government of India Bond 2044 (quoted)
8.27% Government of India Bond 2020 (quoted)
Less: Provision for diminution in value
Government and trust securities -Total
(2) Debentures and bonds:
(a) Subsidiary companies:
100
100
100
100
100
–
–
–
–
–
As at
31-3-2016
crore
As at
31-3-2015
crore
1068.61
–
–
–
–
–
1068.61
2.58
1066.03
596.01
238.70
12.04
346.02
31.26
260.74
1484.77
2.53
1482.24
L&T Finance Limited - 10.24% Secured Redeemable Non Convertible Debenture
September 17, 2019 (quoted)
1,000
2,15,770
22.75
22.95
Less: Provision for diminution in value
Subsidiary companies-Total
(b) Other debentures and bonds:
6.86% IIFCL Tax Free Bonds Mar 26, 2023 (quoted)
7.18% IRFC Ltd. Tax Free Bonds Feb 19, 2023 (quoted)
10.75% The Tata Power Co. Ltd. NCD Aug 21, 2072 (quoted)
8.00% Indian Overseas Bank Bonds Mar 13, 2016 (quoted)
8.20% PFC Ltd. Tax Free Bonds Feb 01, 2022 (quoted)
8.20% PFC Ltd. Tax Free Bonds Feb 01, 2022
8.46% PFC Ltd. Tax Free Bonds Aug 30, 2028
8.46% PFC Ltd. Tax Free Bonds Aug 30, 2028 (quoted)
1.44% Inflation Indexed Bonds Jun 05, 2023 (quoted)
10.05% HDB Financial Services Ltd. Bonds SR-I/1/5 Dec 20, 2023 (quoted)
10.20% HDB Financial Services Ltd. Bonds Aug 09, 2022 (quoted)
8.41% NTPC Ltd. Tax Free Bonds SR-1A Dec 16, 2023 (quoted)
8.46% REC Ltd. Tax Free Bonds SR-3B Aug 29, 2028 (quoted)
ECL Finance Ltd. NCD SR-J5K403 Nov 04, 2015 (quoted)
ECL Finance Ltd. NCD SR-L5L402 Dec 15, 2015 (quoted)
Edelweiss Finance & Investments Ltd. NCD SR-A6A501 Jan 06, 2016
Edelweiss Finance & Investments Ltd. NCD SR-A6A502 Jan 08, 2016
Edelweiss Finance & Investments Ltd. NCD SR-A6A503 Jan 11, 2016
Edelweiss Finance & Investments Ltd. NCD SR-K5L401 Dec 17, 2015 (quoted)
8.70% PNB Housing Finance Ltd. Bonds SR-III Nov 24, 2024 (quoted)
7.40% Syndicate Bank TI-2 SR-8 NCD Apr 20, 2015 (quoted)
ECL Finance Ltd. NCD SR-D6D502A-Apr 26, 2016
ECL Finance Ltd. NCD SR-E6E501A - May 11, 2016
ECL Finance Ltd. NCD SR-C7C601A Mar 22, 2017
1,000
1,000
1,000,000
1,000,000
1,000
1,000
1,000,000
1,000,000
100
1,000,000
1,000,000
1,000
1,000,000
10,000,000
10,000,000
10,000,000
10,000,000
10,000,000
10,000,000
1,000,000
1,000,000
10,000,000
10,000,000
10,000,000
–
–
1,037
–
–
6,04,355
227
–
50,00,000
–
–
79,162
370
–
–
–
–
–
–
–
–
25
25
25
Carried forward
252
22.75
0.27
22.48
–
–
109.07
–
–
64.89
25.33
–
41.79
–
–
8.54
41.56
–
–
–
–
–
–
–
–
32.56
28.90
25.00
377.64
22.95
–
22.95
25.00
304.28
109.08
4.51
64.89
–
–
25.32
41.79
28.04
2.27
8.54
41.56
25.00
26.28
29.69
29.85
27.20
26.86
15.16
2.99
–
–
–
838.31
Notes forming part of the Accounts (contd.)
NOTE [H(I)]
Current investments (contd.)
Particulars
(b) Other debentures and bonds: (contd.)
Brought forward
ECL Finance Ltd. NCD SR-C7C601B Mar 22, 2017
ECL Finance Ltd. NCD SR-C7C601C Mar 22, 2017
ECL Finance Ltd. NCD SR-C7C601D Mar 22, 2017
ECL Finance Ltd. NCD SR-C7C601E Mar 22, 2017
ECL Finance Ltd. NCD SR-C7C601F Mar 22, 2017
Edelweiss Finance & Investments Ltd.NCD K6K501A Nov 04, 2016
Edelweiss Finance & Investments Ltd. NCD SR-K6K502A Nov 14
ECL Finance Ltd. NCD SR-B7B601A Feb 15, 2017
ECL Finance Ltd. NCD SR-B7B601B Feb 15, 2017
6.86% IIFCL Tax Free Bonds Mar 26, 2023
7.18% IRFC Ltd. Tax Free Bonds Feb 19, 2023
Less: Provision for diminution in value
Other debentures and bonds-Total
Debentures & bonds-Total
(3) Mutual funds:
DWS Short Maturity Fund - Direct Plan - Annual Bonus
JM Money Manager Fund - Super Plus Plan - Bonus -Bonus Units
DWS Treasury Fund - Investment Plan - Direct Plan - Bonus
HDFC Liquid Fund - Growth
IDFC Cash Fund - Reg - Growth
L&T Floating Rate Fund Direct Plan - Growth
L&T Liquid Fund - Growth
SBI Premier Liquid Fund - Regular Plan - Growth
DWS Ultra Short Term Fund - Direct Plan - Annual Bonus
Principal Cash Mgmt Fund - Regular Plan - Growth
Birla Sun Life Cash Plus - Regular Plan - Growth
Pramerica Liquid Fund - Growth
L&T Emerging Businesses Fund - Direct Plan - Growth
JM Arbitrage Advantage Fund - Direct Plan - Bonus
L&T Business Cycles Fund - Direct Plan - Growth
DSP BlackRock India Tiger Fund - Reg - Growth
IDFC Sterling Equity Fund - Regular Plan - Growth
JPMorgan India Liquid Fund - Super IP - Growth
BNP Paribas Overnight Fund - Growth
DWS Treasury Fund - Cash - Reg - Growth
Reliance Liquid Fund - TP - Growth
Taurus Liquid Fund - Super IP - Growth
UTI Liquid Fund - Cash Plan - IP - Growth
LIC Nomura MF Liquid Fund - Growth
Carried forward
Face value
per unit
Number of units
As at
31-3-2016
As at
31-3-2016
crore
As at
31-3-2015
crore
10,000,000
10,000,000
10,000,000
10,000,000
10,000,000
10,000,000
2,500,000
10,000,000
10,000,000
1,000
1,000
25
25
25
25
25
25
95
25
25
2,50,000
30,00,000
10
10
10
10
1,000
10
1,000
1,000
10
1,000
100
1,000
10
10
10
10
10
10
1,000
10
1,000
1,000
1,000
1,000
–
–
–
–
–
–
14,47,599
4,21,417
–
–
82,46,063
–
1,00,00,000
–
–
–
–
–
–
–
10,86,336
–
–
–
377.64
25.00
25.00
25.00
25.00
25.00
25.00
23.75
25.00
25.00
25.00
304.28
930.67
10.07
920.60
943.08
–
–
–
–
–
–
300.00
100.00
–
–
200.00
–
13.71
–
–
–
–
–
–
–
400.00
–
–
–
1013.71
838.31
–
–
–
–
–
–
–
–
–
–
–
838.31
0.84
837.47
860.42
118.26
360.12
21.43
50.00
200.00
25.54
581.09
100.00
37.49
20.00
100.00
20.00
13.71
487.31
12.44
5.23
10.41
50.00
100.00
50.00
100.00
100.00
100.00
50.00
2713.03
253
Face value
per unit
Number of units
As at
31-3-2016
As at
31-3-2016
crore
As at
31-3-2015
crore
10
10
1,000
10
10
10
10
1,000
1,000
10
10
10
10
10
–
–
–
–
1,22,80,335
–
–
12,09,623
7,68,317
1,03,83,438
47,90,04,370
40,95,42,385
14,38,03,762
99,99,700
1013.71
–
–
–
–
31.73
–
–
300.00
130.00
10.76
499.29
453.68
211.50
12.00
2662.67
0.80
2661.87
4670.98
2713.03
50.00
100.00
100.00
10.19
33.00
21.26
10.14
–
–
–
–
–
–
–
3037.62
0.20
3037.42
5380.08
As at
31-3-2016
As at
31-3-2015
crore
crore
2009.10
2092.35
2255.94
2342.93
2661.88
3124.14
Notes forming part of the Accounts (contd.)
NOTE [H(I)]
Current investments (contd.)
Particulars
(3) Mutual funds: (contd.)
Brought forward
DWS Ultra Short Term Fund - Direct Plan - Growth
ICICI Prudential Money Market Fund - Regular Plan - Growth
HSBC Cash Fund - Growth
L&T Resurgent India Corporate Bond Fund - Direct Plan-Growth
HDFC Small & Midcap Fund - Growth
L&T Arbitrage Opportunities Fund - Growth
Birla Sun Life Manufacturing Equity Fund - Direct - Dividend
Kotak Floater - ST - Growth
UTI Money Market - IP - Growth
L&T Resurgent India Corporate Bond Fund - Dividend
JM Arbitrage Adv Fund - Ann Bonus - Principal - Direct
JM Balanced Fund - Quarterly Dividend Payout
JM Equity Fund Half Yearly Dividend Payout
L&T Business Cycles Fund - Direct Plan - Dividend Payout
Less: Provision for diminution in value
Mutual funds-Total
Total current investments
Details of quoted/unquoted investments:
Particulars
(a) Aggregate amount of quoted current investments and market value thereof;
Book Value
Market Value
(b) Aggregate amount of unquoted current investments;
Book Value
(c) Aggregate provision for diminution in value of current investments is 13.72 crore
(previous year: 3.57 crore)
254
Notes forming part of the Accounts (contd.)
NOTE [H(II)]
Inventories (at cost or net realisable value whichever is lower)
Particulars
Raw materials
[Includes goods-in-transit 7.10 crore (previous year: 21.59 crore)]
Components
[Includes goods-in-transit 7.98 crore (previous year: 17.73 crore)]
Construction material
[Includes goods-in-transit 111.96 crore (previous year: 72.87 crore)]
Manufacturing work-in-progress [Note Q(24)(e)]
Finished goods
Stock-in-trade (in respect of goods acquired for trading)
[Includes goods-in-transit 34.80 crore (previous year: 35.95 crore)]
Stores and spares
[Includes goods-in-transit 2.69 crore (previous year: 6.34 crore)]
Loose tools
Property development related work-in-progress [Note Q(6)(b)]
As at 31-3-2016
As at 31-3-2015
crore
356.63
304.27
116.39
372.18
161.68
159.77
104.41
7.84
304.83
1888.00
crore
448.71
394.34
74.80
582.78
261.20
161.13
140.07
6.66
201.03
2270.72
NOTE [H(III)]
Trade receivables
Particulars
Secured:
Debts outstanding for more than 6 months:
Considered good
Unsecured:
Debts outstanding for more than 6 months:
Considered good
Considered doubtful
Other debts [Note H(III)(a)]:
Considered good
Considered doubtful
Less: Allowance for doubtful debts
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
0.51
4.71
3283.99
844.89
4128.88
23024.69
3.85
27157.42
848.74
2235.07
565.93
2801.00
20811.33
0.46
23612.79
566.39
26308.68
26309.19
23046.40
23051.11
H(III)(a) Other debts includes 17698.43 crore (previous year: 15105.86 crore) contractually not due.
255
Notes forming part of the Accounts (contd.)
NOTE [H(IV)]
Cash and bank balances
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
Cash and cash equivalents:
Balance with banks
Cheques and drafts on hand
Cash on hand
Fixed deposits with banks (maturity less than 3 months)
Other bank balances:
Fixed deposits with banks (including interest accrued thereon)
4.64
[including Nil of bank deposits with more than 12 months
maturity (previous year: Nil)]
Earmarked balances with banks-unclaimed dividend
Margin money deposits
Cash and bank balances not available for immediate use
[Note G(II)(a)]
39.33
4.66
127.10
1029.18
446.82
2.28
26.90
921.66
159.74
90.52
175.04
3.00
33.59
9.69
122.56
175.73
1680.91
168.84
1515.80
NOTE [H(V)]
Short term loans and advances
Particulars
Secured considered good:
Loans against mortgage of house property
Inter-corporate deposits-others
Loans and advances to related parties:
Subsidiary companies:
Inter-corporate deposits [Note Q(1)(a)]
Others
Associate companies:
Advances recoverable
Joint Ventures:
Others
Others considered good:
Security deposits
Earnest money deposits
Advances recoverable in cash or in kind
Balances with customs, port trust etc.
Carried forward
256
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
0.79
73.00
3696.03
1544.22
5.82
45.11
286.89
50.79
4411.30
91.20
10205.15
0.89
70.00
1723.21
1036.06
3.65
69.33
259.85
63.12
3178.11
86.75
6490.97
Notes forming part of the Accounts (contd.)
NOTE [H(V)]
Short term loans and advances (contd.)
Particulars
Brought forward
Considered doubtful:
Deferred credit against sale of ships
Security deposits
Other loan and advances
Less: Allowance for doubtful loan and advances
NOTE [H(VI)]
Other current assets
Other current assets:
Particulars
Due from customers (construction and project related activity)
Due from customers (property development activity) [Note Q(6)(b)]
Interest accrued on investments
Interest accrued on inter-corporate deposits
Unamortised expenses
NOTE [I]
Contingent liabilities
Particulars
(a) Claims against the Company not acknowledged as debts
(b) Sales tax liability that may arise in respect of matters in appeal
(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
(d) Income tax liability (including penalty) that may arise in respect
of which the Company is in appeal
(e) Corporate guarantees for debt given on behalf of subsidiary
companies
(f) Corporate and bank guarantees for performance given on
behalf of subsidiary companies
As at 31-3-2016
As at 31-3-2015
crore
crore
10205.15
crore
crore
6490.97
27.55
36.09
104.45
25.99
4.55
140.26
168.09
10373.24
168.09
10205.15
170.80
6661.77
170.80
6490.97
As at 31-3-2016
As at 31-3-2015
crore
21233.74
10.21
30.57
230.48
24.33
21529.33
crore
18250.65
48.68
46.83
203.37
24.63
18574.16
As at 31-3-2016
As at 31-3-2015
crore
1025.52
156.72
60.73
531.84
7327.31
8847.53
crore
883.06
132.13
55.41
826.44
8723.55
9201.96
257
Notes forming part of the Accounts (contd.)
NOTE [I]
Contingent liabilities (contd.)
Notes:
1.
2.
3.
4.
The Company does not expect any reimbursements in respect of the above contingent liabilities.
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 Company has determined that the possibility of such levy is remote.
In respect of matters at (e), the cash outflows, if any, could generally occur up to eleven 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 at any time during the
subsistence of the borrowing to which the guarantees relate.
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.
5. Contingent liability with respect to interest in joint ventures [Note Q(14)]
NOTE [J]
Commitments
Particulars
(a) Estimated amount of contracts remaining to be executed on capital account (net of advances)
(b) Estimated amount of committed funding by way of equity/loans to subsidiary companies
NOTE [K]
Revenue from operations
As at
31-3-2016
As at
31-3-2015
crore
196.60
1281.00
crore
294.40
2738.00
Particulars
Note
2015-16
2014-15
crore
crore
crore
crore
Sales & service:
Construction and project related activity
Manufacturing and trading activity
Property development activity
Engineering and service fees
Servicing
Commission
Q(6)(a), Q(24)(a)(iii)
Q24(a)(i)
Q(6)(b), Q(24)(a)(ii)
Q(24)(a)(vi)
Q(24)(a)(iv)
Q(24)(a)(v)
52022.74
5995.07
843.64
44.74
473.64
137.30
Other operational revenue:
Income from hire of plant and equipment
Technical fees
Company’s share in profit of integrated joint
ventures
Lease rentals
Income from services to the Group companies
Premium earned (net) on related forward
exchange contract
Miscellaneous income
Q(14)(b)
77.57
0.36
252.64
71.85
205.77
145.35
144.33
49480.38
5743.51
946.94
3.59
507.93
108.78
59517.13
56791.13
33.39
–
59.78
76.91
292.75
103.24
200.87
897.87
60415.00
766.94
57558.07
258
Notes forming part of the Accounts (contd.)
NOTE K (I)
Revenue from sales & service include:
(a)
544.04 crore (previous year: 1443.57 crore) for price variations net of liquidated damages in terms of contracts with the
customers.
(b) Shipbuilding subsidy Nil (previous year: Nil) and reversal of shipbuilding subsidy of 4.16 crore (previous year: Nil)
NOTE [L]
Other Income
Particulars
2015-16
2014-15
crore
crore
crore
crore
Interest income:
From current investments:
Subsidiary companies
Others
From others:
Subsidiary and associate companies
Others
Dividend income:
From long term investments:
Subsidiary companies
Associate companies
Other trade investments
From current investments
Net gain/(loss) on sale of investments:
Long term investments (net)
Current investments (net)
Net gain/(loss) on sale of fixed assets
Lease rental
Miscellaneous income (net of expenses)
2.22
198.20
268.24
44.66
1007.91
0.38
2.15
1010.44
110.91
248.53
(16.04)
3.00
212.44
292.74
57.73
513.32
565.91
850.70
0.58
2.07
853.35
0.84
1121.35
854.19
–
406.63
232.49
83.97
39.90
414.94
2405.97
406.63
29.19
51.57
375.88
2283.37
259
Notes forming part of the Accounts (contd.)
NOTE [M]
Manufacturing, construction and operating expenses
Particulars
Materials consumed:
Raw materials and components [Note Q(24)(b)]
Less: Scrap sales
Construction materials
Purchase of stock-in-trade [Note Q(24)(c)]
Value of stock-in-trade transferred on sale of business
Stores, spares and tools consumed
Sub-contracting charges
Changes in inventories of finished goods, work-in-progress and
stock-in-trade and property development:
Closing stock:
Finished goods
Stock-in-trade
Work-in-progress
Less: Opening stock:
Finished goods
Stock-in-trade
Work-in-progress
Other manufacturing, construction and operating expenses:
Excise duty
Power and fuel [Note O(I)]
Royalty and technical know-how fees
Packing and forwarding [Note O(I)]
Hire charges - plant & equipment and others
Engineering, technical and consultancy fees
Insurance [Note O(I)]
Rent [Note O(I)]
Rates and taxes [Note O(I)]
Travelling and conveyance [Note O(I)]
Repairs to plant and equipment
Repairs to buildings [Note O(I)]
General repairs and maintenance [Note O(I)]
Bank guarantee charges
Miscellaneous expenses [Note O(I)]
260
2015-16
2014-15
crore
crore
crore
crore
7453.84
57.49
1145.67
(16.49)
161.68
159.77
3167.65
3489.10
261.20
161.13
3181.75
3604.08
(4.91)
831.98
20.62
310.78
573.16
474.91
148.18
395.78
290.51
759.95
49.50
8.08
263.17
123.68
422.12
5496.79
18426.83
1296.75
1831.46
13240.77
7396.35
17805.37
1129.18
1448.90
14066.80
5601.40
104.61
1296.75
–
261.20
161.13
3181.75
3604.08
203.17
117.21
3068.09
3388.47
114.98
(215.61)
10.35
631.14
6.39
338.41
575.38
499.98
149.53
332.42
217.72
652.14
52.42
7.19
221.89
106.93
501.55
4667.51
46629.09
4303.44
44380.43
Notes forming part of the Accounts (contd.)
NOTE [N]
Employee benefits expense
Particulars
Salaries, wages and bonus
Contribution to and provision for:
Provident funds and pension fund
Superannuation/employee pension schemes
Gratuity funds [Note Q(8)(b)]
Expenses on Employee Stock Option Schemes [Note A(VIII)(e)(ii)]
Insurance expenses-medical and others [Note O(I)]
Staff welfare expenses
Recoveries on account of deputation charges
NOTE [O]
Sales, administration and other expenses
Particulars
Power and fuel [Note O(I)]
Packing and forwarding [Note O(I)]
Professional fees
Audit fees [Note Q(17)]
Insurance [Note O(I)]
Rent [Note O(I)]
Rates and taxes [Note O(I)]
Travelling and conveyance [Note O(I)]
Repairs to buildings [Note O(I)]
General repairs and maintenance [Note O(I)]
Directors’ fees
Telephone, postage and telegrams
Advertising and publicity
Stationery and printing
Commission:
Distributors and agents
Others
Bank charges
Contribution to political parties [Note Q(25)]
Miscellaneous expenses [Note O(I)]
Carried forward
2015-16
2014-15
crore
crore
crore
116.96
36.86
49.04
116.79
11.83
57.30
3863.60
202.86
54.67
70.49
527.66
(239.08)
4480.20
crore
3423.41
185.92
51.67
41.43
508.96
(48.93)
4162.46
2015-16
2014-15
crore
crore
crore
crore
65.83
104.02
289.40
4.38
38.67
147.38
46.37
261.36
8.95
210.98
0.59
96.03
45.72
40.60
28.33
2.75
18.17
3.09
31.08
59.17
–
392.46
1842.99
54.46
99.59
184.37
3.80
40.54
123.55
34.80
229.13
17.68
205.25
0.52
90.63
52.60
40.33
21.26
52.89
11.00
382.15
1644.55
261
Notes forming part of the Accounts (contd.)
NOTE [O]
Sales, administration and other expenses (contd.)
2015-16
2014-15
Particulars
Brought forward
Bad debts and advances written off
Less: Allowance for doubtful debts and advances written back
crore
121.19
12.96
Company’s share in loss of integrated joint ventures [Note (14)(b)]
Discount on sales
Allowance for doubtful debts and advances (net)
Provision/(reversal) for foreseeable losses on construction contracts
Provision/(reversal) for diminution in value of investments (net)
Exchange (gain)/loss (net)
Other provisions [Note (15)(a)]
crore
10.58
4.08
crore
1842.99
108.23
25.05
45.01
293.07
9.85
10.15
151.36
19.36
2505.07
crore
1644.55
6.50
35.81
75.77
114.02
13.99
(11.72)
116.61
5.46
2000.99
NOTE [O(I)]
Aggregation of expenses disclosed vide notes M, N and O in respect of specific items as mentioned in schedule III to the
Companies Act, 2013, are as follows:
Sr. no.
Nature of expenses
Power and fuel
Packing and forwarding
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to building
General repairs and maintenance
1
2
3
4
5
6
7
8
9 Miscellaneous expenses
Total
NOTE [P]
Finance costs
Note M
831.98
310.78
148.18
395.78
290.51
759.95
8.08
263.17
422.12
3430.55
2015-16
2014-15
Note N
–
–
70.49
–
–
–
–
–
–
70.49
Note O
65.83
104.02
38.67
147.38
46.37
261.36
8.95
210.98
392.46
1276.02
Total
897.81
414.80
257.34
543.16
336.88
1021.31
17.03
474.15
814.58
4777.06
Note M
631.14
338.41
149.53
332.42
217.72
652.14
7.19
221.89
501.55
3051.99
Note N
–
–
41.43
–
–
–
–
–
–
41.43
Note O
54.46
99.59
40.54
123.55
34.80
229.13
17.68
205.25
382.15
1187.15
Particulars
Interest expenses
Other borrowing costs
Exchange loss (attributable to finance costs)
262
2015-16
crore
1291.65
27.74
129.65
1449.04
crore
Total
685.60
438.00
231.50
455.97
252.52
881.27
24.87
427.14
883.70
4280.57
2014-15
crore
1289.70
22.08
107.87
1419.65
Notes forming part of the Accounts (contd.)
NOTE [Q]
Q(1) Particulars in respect of loans and advances in the nature of loans as required by the listing agreement:
Name of the company
(a)
Loans and advances in the nature of loans given to
subsidiaries:
1
L&T Seawoods Limited
2 L&T Infrastructure Development Projects Limited
3 L&T Realty Limited
4 L&T Finance Holdings Limited
5 L&T Shipbuilding Limited
6 L&T Special Steels & Heavy Forgings Private Limited
7 PNG Tollway Limited
8 EWAC Alloys Limited
9 L&T Hydrocarbon Engineering Limited
10 L&T Technology Services Limited
11 L&T Valves Limited
12 Nabha Power Limited
13 L&T Power Development Limited
14 L&T-MHPS Turbine Generator Private Limited
Balance as at
Maximum outstanding during
31-3-2016
31-3-2015#
2015-16
2014-15
crore
656.63
524.04
807.36
200.00
371.00
515.20
43.97
5.50
189.00
–
–
–
246.00
–
185.24
563.41
563.41
–
–
–
1921.00
371.00
2588.00
779.72
–
16.00
506.18
–
–
515.20
43.97
–
779.72
43.97
16.00
148.60
2158.33
1253.23
–
–
107.50
15.00
15.00
60.00
878.61
110.00
3225.76
1549.70
–
–
–
–
–
41.50
179.00
–
Total
4475.75 *
1767.18*
(b)
Loans and advances in the nature of loans where repayment
schedule is not specified/is beyond 7 years:
PNG Tollway Limited
Total
–
–
57.51
57.51
–
43.97
*Long term loans and advances [Note G(I)] – 779.72 crore (previous year: 43.97 crore) and short term loans and advances
[Note H(V)]- 3696.03 crore (previous year: 1723.21 crore).
# Previous year figures have been regrouped for interest accrued on inter-corporate deposits and shown under other non-current
assets 13.54 crore and other current assets 203.37 crore as separate line items.
Note: 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.
263
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(2) Disclosure pursuant to section 186 of the Companies Act, 2013:
Sr.
no.
Nature of the transaction (loans given/investment made/
guarantee given/security provided)
Purpose for which the loan/
guarantee/security is proposed to be
utilised by the recipient
As at
31-3-2016
Loan and advances: *
(i)
Subsidiary companies:
L&T Realty Limited
L&T Seawoods Limited
L&T Shipbuilding Limited
L&T Special Steels & Heavy Forgings Private Limited
PNG Tollway Limited
EWAC Alloys Limited
L&T Hydrocarbon Engineering Limited
Nabha Power Limited
L&T Valves Limited
Project funding
Project funding
Working capital and project funding
Working capital and project funding
Project funding
Short term funding
Working capital
Project funding
Short term funding
(ii) Others:
Boyance Infrastructure Private Limited
General corporate purpose
Total (i+ii)
* Loans & advances represent Inter-corporate deposits
(principal amount).
Other advances:
Subsidiary companies:
L&T Power Development Limited
L&T Realty Limited
L&T Shipbuilding Limited
L&T Uttaranchal Hydropower Limited
Larsen & Toubro (Saudi Arabia) LLC
Guarantees:
Subsidiary companies:
L&T Aviation Services Private Limited
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Shipbuilding Limited
Nabha Power Limited
Larsen & Toubro ATCO Saudia LLC
Larsen & Toubro Arabia LLC
Towards capital contribution
Towards capital contribution
Towards capital contribution
Towards capital contribution
Towards capital contribution
Corporate guarantee given for
subsidiary’s debt
Corporate guarantee given for
subsidiary’s debt
Corporate guarantee given for
subsidiary’s debt
Corporate guarantee given for
subsidiary’s debt
Corporate guarantee given for
subsidiary’s debt
Corporate guarantee for subsidiary’s
project performance
Corporate guarantee for subsidiary’s
project performance
57.01
64.54
233.97
261.21
548.32
516.80
1331.00
2881.00
5157.00
5000.00
909.51
752.30
1013.25
923.31
crore
As at
31-3-2015
563.41
–
371.00
515.20
43.97
–
148.60
110.00
15.00
1767.18
73.00
1840.18
379.40#
648.29#
421.86#
523.00#
14.29
1986.84
185.24
189.00
1921.00
779.72
–
16.00
506.18
878.61
–
4475.75
73.00
4548.75
–
–
–
5.25#
–
5.25
1
2
3
264
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Sr.
no.
Nature of the transaction (loans given/investment made/
guarantee given/security provided)
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Electrical & Automation FZE
Larsen & Toubro Heavy Engineering LLC
Larsen & Toubro (Saudi Arabia) LLC
Spectrum Infotech Private Limited
L&T Hydrocarbon Engineering Limited
L&T-MHPS Boilers Private Limited
4
Investments in fully paid equity instruments and current
investments
# the shares since allotted
Q(3) Exceptional Items [Note R(4)]:
Purpose for which the loan/
guarantee/security is proposed to be
utilised by the recipient
Corporate guarantee for subsidiary’s
project performance
Corporate guarantee for subsidiary’s
project performance (It includes
corporate guarantee given for L&T
Technology Services LLC)
Corporate guarantee for subsidiary’s
project performance
Corporate guarantee for subsidiary’s
project performance
Corporate guarantee for subsidiary’s
project performance
Corporate guarantee for subsidiary’s
project performance
Corporate guarantee for subsidiary’s
project performance
Guarantees issued by bank out of
the Company’s sanctioned limits to
customer of subsidiary for project
performance
As at
31-3-2016
crore
As at
31-3-2015
238.68
231.18
589.79
522.09
19.75
42.06
1197.86
1004.97
2693.04
1339.22
2.90
2.90
2173.23
4374.65
9.52
9.28
16174.84
17925.51
[Note F and Note H(I)]
(a) Exceptional items for the year ended March 31, 2016 include the following:
(i) Gain of 540.90 crore on sale of the Company’s stake in subsidiary companies viz. L&T-Valdel Engineering Limited –
36.59 crore, L&T-Gulf Private Limited – 6.74 crore, L&T Sapura Shipping Private Limited– 9.18 crore and on sale of
the Company’s part stake in L&T Finance Holdings Limited – 488.39 crore;
(ii) Gain of 105.86 crore on sale of the Company’s stake in associate companies viz. Salzer Electronics Limited -
57.46 crore and L&T-Chiyoda Limited - 48.40 crore;
(iii) Gain of 48.52 crore on sale of the Company’s Foundry Business unit and
(iv) Provision for impairment of investment in L&T General Insurance Company Limited - 135.00 crore.
(b) Exceptional items for the year ended March 31, 2015 included gain of 357.16 crore on sale of the Company’s part stake in
L&T Finance Holdings Limited, a subsidiary company.
Q(4) The expenditure on research and development activities recognised as expense in the Statement of Profit and Loss is 149.62 crore
(previous year: 139.44 crore). Further, the company has incurred capital expenditure on research and development activities as
follows:
(a) on tangible assets of 5.19 crore (previous year: 6.50 crore);
(b) on intangible assets being expenditure on new product development of 48.19 crore (previous year: 56.93 crore) [Note R(5)
(b)]; and
(c) on other intangible assets of 0.55 crore (previous year: 0.69 crore).
Q(5) (a) Provision for current tax includes
(i)
(ii)
6.09 crore (previous year: Nil) in respect of income tax payable outside India.
13.77 crore (previous year: Nil) in respect of income tax for earlier years.
265
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
(b) Tax effect of 0.13 crore (previous year: 9.29 crore) on account of debenture/share/foreign currency convertible bond issue
expenses and premium on inflation linked debenture has been credited to securities premium account.
Q(6) (a) Disclosures pursuant to Accounting Standard (AS) 7 (Revised) “Construction Contracts”:
Particulars
i)
ii)
Contract revenue recognised for the financial year [Note (K)]
Aggregate amount of contract costs incurred and recognised profits (less recognised
losses) as at the end of the financial year for all contracts in progress as at that date
iii) Amount of customer advances outstanding for contracts in progress as at the end of
iv)
the financial year
Retention amount by customers for contracts in progress as at the end of the financial
year
* includes provision for foreseeable loss: 108.82 crore (previous year: 117.64 crore)
crore
2015-16
52022.74
2014-15
49480.38
202884.53 * 180512.61 *
9888.46
8338.91
6459.87
5761.50
(b) Disclosures pursuant to Guidance Note on Accounting for Real Estate Transactions (Revised 2012) issued by the Institute of
Chartered Accountants of India:
Particulars
i)
ii)
Amount of project revenue recognised for the financial year [Note (K)]
Aggregate amount of costs incurred and profits recognised as at the end of the financial
year
iii) Amount of advances received
iv) Amount of work-in-progress and the value of inventories [Note (H(II)]
v)
Excess of revenue recognised over actual bills raised (unbilled revenue) [Note (H(VI)]
2015-16
843.64
2228.77
15.73
304.83
10.21
crore
2014-15
946.94
1464.96
31.40
201.03
48.68
(c) As part of the periodic review of estimates used in determining the cost of completion of projects, the Company revised
certain estimates used in civil construction jobs under execution as on March 31, 2016. As a result, the revenue and profit
before tax for the year increased by 395.73 crore.
Q(7) Disclosures pursuant to Accounting Standard (AS) 13 “Accounting for Investments”
1.
The Company has given, inter alia, the following undertakings in respect of its investments:
a.
Jointly with L&T Infrastructure Development Projects Limited (a subsidiary of the Company), to the term lenders of its
subsidiary companies L&T Transportation Infrastructure Limited (LTTIL):
i.
ii.
not to reduce their joint shareholding in LTTIL below 51% until the financial assistance received from the term
lenders is repaid in full by LTTIL and
to jointly meet the shortfall in the working capital requirements of LTTIL until the financial assistance received from
the term lenders is repaid in full by LTTIL .
b.
To the lenders of L&T Krishnagiri Thopur Toll Road Limited (KTTL), not to dilute Company’s shareholding in L&T
Infrastructure Development Projects Limited below 51% until the borrowings received from the lenders is repaid in full
by KTTL.
c.
To Gujarat State Road Development Corporation Limited:
i.
to hold in L&T Ahmedabad-Maliya Tollway Limited, L&T Halol-Shamlaji Tollway Limited and L&T Rajkot-Vadinar
Tollway Limited alongwith L&T Infrastructure Development Projects Limited:
(cid:122)
(cid:122)
100% stake during the construction period;
51% stake for 5 years from the date of commercial operation or end of construction of the project, whichever
is later; and
(cid:122)
51% stake during operational period.
ii.
not to divest the stake in L&T Infrastructure Development Projects Limited until the aforesaid undertakings are valid.
d.
To National Highway Authority of India, to hold along with its associates minimum 51% stake in L&T Samakhiali
Gandhidham Tollway Limited for a period of 2 years after the construction period.
266
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
e.
f.
g.
To National Highway Authority of India, that L&T Infrastructure Development Projects Limited will remain as associate of
the Company for the entire duration of the Concession Agreement with respect to the six laning of Pimpalgaon-Nasik-
Gone section of NH 3 project.
To National Highway Authority of India, to hold together with its associates in L&T Devihalli Hassan Tollway Limited,
minimum 51% equity stake for a period of 2 years after construction period.
To National Highway Authority of India, to hold together with its associates in L&T Krishnagiri Walajahpet Tollway
Limited:
(i) minimum 51% equity stake during the construction period;
(ii) minimum 33% stake for 3 years from project completion date and
(iii) minimum 26% or such lower stake as may be permitted by National Highway Authority of India during remaining
concession period.
h.
To the Security Trustee of:
(i)
(ii)
(iii)
(iv)
the lenders of PNG Tollway Limited, to hold along with L&T Infrastructure Development Projects Limited and Ashoka
Buildcon Limited minimum 51% equity stake in PNG Tollway Limited, until the financial assistance received from the
term lenders is repaid in full by PNG Tollway Limited. The aforesaid minimum stake can, however, be disposed off
before final settlement date with prior approval of lenders;
the lenders of L&T Krishnagiri Walajahpet Tollway Limited, to hold along with L&T Infrastructure Development
Projects Limited minimum 51% equity stake in L&T Krishnagiri Walajahpet Tollway Limited, until the financial
assistance received from the term lenders is repaid in full. The aforesaid minimum stake can, however, be disposed
off before final settlement date with prior approval of lenders;
the lenders of L&T Samakhiali Gandhidham Tollway Limited, to hold along with L&T Infrastructure Development
Projects Limited minimum 51% equity stake in L&T Samakhiali Gandhidham Tollway Limited, until the financial
assistance received from the term lenders is repaid in full by L&T Samakhiali Gandhidham Tollway Limited. The
aforesaid minimum stake can, however, be disposed off before final settlement date with prior approval of lenders;
the lenders of L&T Metro Rail (Hyderabad) Limited, to hold along with L&T Infrastructure Development Projects
Limited minimum 51% equity stake and retain management control in L&T Metro Rail (Hyderabad) Limited until the
financial assistance received from the term lenders is repaid in full. The aforesaid minimum stake can, however, be
disposed off before final settlement date with prior approval of lenders;
(v)
L&T Aviation Services Private Limited, to hold atleast 51% stake, directly or indirectly, in L&T Aviation Services
Private Limited, until any amount is outstanding under the credit facility agreement.
i.
To the Government of Telangana (erstwhile Government of Andhra Pradesh) with respect to shareholding in L&T Metro
Rail (Hyderabad) Limited, to hold and maintain along with L&T Infrastructure Development Projects Limited –
(i)
51% stake till the second anniversary of the commercial operation date (COD) of the project;
(ii) 33% stake till the third anniversary of the COD of the project and
(iii) 26% stake or such lower proportion as may be permitted by the Government of Telangana (erstwhile Government
of Andhra Pradesh), till the remaining concession period.
j.
k.
l.
To hold certain minimum stake in its subsidiary companies namely, L&T-MHPS Boilers Private Limited and L&T-MHPS
Turbine Generators Private Limited. These undertakings have been given to the customers/potential customers of the
Company and customers/potential customers of L&T-MHPS Boilers Private Limited. The undertakings will remain valid till
the end of defect liability period or till such period as prescribed in the related bid documents/contracts.
To City and Industrial Development Corporation of Maharashtra Limited (CIDCO) that it shall continue to hold not less
than 51% stake in L&T Seawoods Limited (LTSL) until CIDCO executes the lease deed for land in favour of L&T seawoods
Limited.
To the debenture trustee of L&T Shipbuilding Limited, to maintain atleast 26% stake in L&T Shipbuilding Limited, until
any amount is outstanding towards the debentures.
m. To the lender of L&T Shipbuilding Limited, to maintain minimum 76% stake in L&T Shipbuilding Limited, until any
amount is outstanding towards the working capital loan.
n.
To the Joint Venture partner in L&T Howden Private Limited, to not sell, transfer or dispose off any stake in L&T Howden
Private Limited till December 17, 2017 (90 months from date of incorporation).
267
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(8). Disclosure pursuant to Accounting Standard (AS) 15 (Revised) “Employee Benefits”.
i.
Defined contribution plans: [Note R(6)(b)(i)] Amount of 102.98 crore (previous year: 82.64 crore) is recognised as an
expense and included in “employee benefits expense” (Note N) in the Statement of Profit and Loss.
ii. Defined benefit plans: [Note R(6)(b)(ii)]
a)
The amounts recognised in Balance Sheet are as follows:
Particulars
A) Present value of defined benefit
obligation
– Wholly funded
– Wholly unfunded
Less: Fair value of plan assets
Less: Unrecognised asset
Less: Unrecognised past service costs
Amount to be recognised as liability or
(asset)
B) Amounts reflected in the Balance Sheet
Liabilities
Assets
Net liability/(asset)
Net liability/(asset) - Current
Net liability/(asset) - Non-current
Gratuity plan
Post-retirement
medical benefit plan
Company pension plan
Trust-managed
provident fund plan
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
crore
415.70
44.27
459.97
385.85
–
–
74.12
74.12
–
74.12
74.12
–
422.41
34.01
456.42
364.71
(2.08)
–
93.79
93.79
–
93.79
93.79
–
–
155.57
155.57
–
–
0.82
154.75
154.75
–
154.75
11.30
143.45
–
148.90
148.90
–
–
0.97
147.93
147.93
–
147.93
10.04
137.89
–
283.25
283.25
–
–
39.65
243.60
243.60
–
243.60
16.82
226.78
– 1986.97
215.64
9.87
215.64 1996.84
– 1990.14
–
–
–
0.30
6.70
215.34
1856.97
27.78
1884.75
1857.15
–
–
27.60
27.61
–
27.61
215.34 22.29
–
–
215.34 22.29
13.26 22.29 # 22.75 #
–
202.08
4.86
b)
The amounts recognised in Statement of Profit and Loss are as follows:
crore
Gratuity plan
Company pension
plan
Post-retirement
medical benefit plan
Trust-managed
provident fund plan
2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15
83.66
134.54
(134.54)
(23.97)
–
–
72.66
154.87
– (154.87)
(28.46)
–
–
35.04
30.52
(21.98)
25.26
–
2.08
48.63
32.55
(25.15)
(5.15)
–
–
6.29
9.49
–
39.74
0.14
–
10.00
12.05
–
(7.88)
0.14
–
4.45
16.44
–
12.46
10.23
–
28.67
0.11
–
1.45
16.40
–
50.88
49.04
1.61
–
70.92
57.30
13.41
–
14.31
1.21
13.09
–
55.66
17.46
38.20
–
43.58
26.13
17.45
–
46.63
0.36
45.12
28.46
72.66
72.66
–
1.28
60.97
83.66
(22.69)
0.11
0.02
0.01
–
–
–
–
–
0.12
50.88
31.95
0.19
70.92
53.69
–
14.31
–
–
55.66
–
–
43.58
–
1.15
46.63
–
–
72.66
165.42
–
60.97
140.60
1
2
3
4
5
6
7
I
II
III
IV
Particulars
Current service cost
Interest cost
Expected (return) on plan assets
Actuarial losses/(gains)
Past service cost
Amount not recognised as an asset
Actuarial gain/(loss) not recognised
in books
Total (1 to 7)
Amount included in “employee
benefits expense”
Amount included as part of “interest”
Amount capitalised on new product
development
Amount recovered from S&A
Companies
Total (I+II+III+IV)
Actual return on plan assets
268
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
c)
The changes in the present value of defined benefit obligation representing reconciliation of opening and closing
balances thereof are as follows:
crore
Particulars
Gratuity plan
Post-retirement
medical benefit plan
Company pension
plan
Trust-managed
provident fund plan
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
Opening balance of the present value of
defined benefit obligation
Add: Current service cost
Add: Interest cost
Add: Contribution by plan participants
Employer
i)
ii)
Employee
iii) Transfer-in/(out)~
Add/(Less): Actuarial losses/(gains)
Less: Benefits paid
Add: Past service cost
Closing balance of the present value of
defined benefit obligation
456.42
48.63
32.55
–
–
–
1.65
(79.28)
–
376.15
35.04
30.52
–
–
(12.20)
56.97
(30.06)
–
148.90
10.00
12.05
103.57
6.29
9.49
–
–
–
(7.88)
(7.50)
–
–
–
(3.75)
39.74
(6.44)
–
215.64
4.45
16.44
–
–
–
12.47
(15.33)
49.58
184.25 1884.75
72.66
154.87
1.45
16.40
1791.21
83.66
134.54
–
–
–
28.66
(15.12)
–
–
174.70
5.61
(17.91)
(277.84)
–
–
174.50
–
(17.91)
(281.25)
–
459.97
456.42
155.57
148.90
283.25
215.64 1996.84
1884.75
d) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as
follows:
Particulars
Opening balance of the fair value of the plan assets
Add: Expected return on plan assets*
Add/(Less): Actuarial gains/(losses)
Add: Contribution by the employer
Add/(Less): Transfer in/(out)~
Add: Contribution by plan participants
Less: Benefits paid
Closing balance of the plan assets
Gratuity plan
crore
Trust-managed provident
fund plan
As at 31-3-2016 As at 31-3-2015 As at 31-3-2016 As at 31-3-2015
1784.96
134.54
6.06
63.39
–
149.45
(281.25)
1857.15
364.71
25.15
6.80
68.47
–
–
(79.28 )
385.85
1857.15
154.87
10.55
66.22
5.61
173.58
(277.84)
1990.14
323.91
21.98
31.71
29.37
(12.20)
–
(30.06)
364.71
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.
*
Basis used to determine the overall expected return:
The trust formed by the Company manages the investments of provident funds and gratuity fund. Expected return on
plan assets is determined based on the assessment made at the beginning of the year on the return expected on its
existing portfolio, along with the estimated increment to the plan assets and expected yield on the respective assets in
the portfolio during the year. [Note Q(8)(ii)(f)(7)] infra.
The Company expects to fund 32.31 crore (previous year: 60.06 crore) towards its gratuity plan and 79.93 crore
(previous year: 67.07 crore) towards its trust-managed provident fund plan during the year 2015-16.
#
~
Employer’s contribution due towards provident fund
Amount transferred pursuant to transfer of Integrated Engineering Services Business employees to wholly owned
subsidiary L&T Technology Services Limited
269
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
e)
The major categories of plan assets as a percentage of total plan assets are as follows:
Particulars
Government of India securities
State government securities
Corporate bonds
Equity shares of listed companies
Fixed deposits under special deposit scheme framed by
central government for provident funds
Insurer managed funds
Public sector unit bonds
Others
Gratuity plan
As at
31-3-2016
23%
18%
34%
2%
As at
31-3-2015
31%
11%
30%
2%
Trust-managed provident
fund plan
As at
31-3-2016
25%
16%
9%
–
As at
31-3-2015
24%
15%
8%
–
–
–
14%
9%
–
1%
17%
8%
10%
–
39%
1%
10%
–
42%
1%
f)
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
1.
2.
3.
4.
Post-retirement medical benefit plan
Discount rate:
a) Gratuity plan
b) Company pension plan
c)
Expected return on plan assets
Annual increase in healthcare costs (see Note 8 infra)
Salary growth rate:
a) Gratuity plan
b) Company pension plan
5. Attrition rate:
As at
31-3-2016
As at
31-3-2015
7.79%
7.79%
7.79%
7.50%
5.00%
5.00%
6.00%
7.83%
7.83%
7.83%
7.50%
5.00%
5.00%
6.00%
a)
For post-retirement medical benefit plan & Company pension plan, the attrition rate varies from 2% to 8%
(previous year: 2% to 8%) for various age groups.
b)
For gratuity plan, the attrition rate varies from 1% to 6% (previous year: 1% to 6%) for various age groups.
6.
7.
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.
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 as actuarial losses.
8.
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 above, has been assumed to
increase at 5% p.a.
9. A one percentage point change in assumed healthcare cost trend rates would have the following effects on the
aggregate of the service cost and interest cost and defined benefit obligation:
Particulars
Effect of 1% increase
Effect of 1% decrease
2015-16
2014-15
2015-16
2014-15
Effect on the aggregate of the service cost and
interest cost
Effect on defined benefit obligation
4.09
19.61
4.01
18.35
(3.15)
(15.54)
(3.04)
(14.57)
crore
270
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
g)
The amounts pertaining to defined benefit plans are as follows:
Particulars
As at
31-3-2016
As at
31-3-2015
As at
31-3-2014
As at
31-3-2013
As at
31-3-2012
crore
1
Post-retirement medical benefit plan (unfunded)
Defined benefit obligation
Experience adjustment plan liabilities
2
Gratuity plan (funded/unfunded)
Defined benefit obligation
Plan assets
Less: Amount not recognised as an asset
Surplus/(deficit)
Experience adjustment plan liabilities
Experience adjustment plan assets
3
Post-retirement pension plan (unfunded)
Defined benefit obligation
Experience adjustment plan liabilities
4
Trust-managed provident fund plan (funded)
154.75
(6.14)
459.97
385.85
–
(74.12)
0.45
6.80
243.60
11.45
147.93
13.58
102.46
14.10
105.31
1.62
87.01
(6.60)
456.42
364.71
(2.08)
(93.79)
22.73
31.29
351.44
323.91
–
(27.53)
5.49
(8.72)
364.45
311.80
–
(52.65)
26.26
13.01
341.07
291.66
–
(49.41)
30.52
(0.45)
215.34
5.45
188.52
(0.22)
198.36
(2.79)
184.03
23.21
Defined benefit obligation
Plan assets
Surplus/(deficit)
1996.84
1990.14
(6.70)
1884.75
1857.15
(27.60)
1791.21
1784.96
(6.25)
1675.94
1648.23
(27.71)
1544.72
1507.47
(37.25)
h) General descriptions of defined benefit plans:
1. Gratuity plan:
The Company operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent
to fifteen days salary last 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. A small part of the gratuity
plan, which is not material is unfunded and managed within the Company. The unfunded obligation towards
gratuity also includes gratuity payable to employees outside India under the applicable local laws.
2.
Post-retirement medical benefit plan:
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.
3. Company’s pension plan:
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.
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 envisages contribution
by employer and employees and 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 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 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. Further, the provision of 4.86 crore as on March 31, 2015 based on
actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan has
been reversed in the current year as the balance in surplus account of the fund is higher than the interest obligation
of 9.87 crore as on March 31, 2016.
271
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(9) Disclosures pursuant to Accounting Standard (AS) 17 “Segment Reporting”
a)
Primary segments (business segments):
Particulars
Revenue - including excise duty
Infrastructure
Power
Metallurgical & Material Handling
Heavy Engineering
Electrical & Automation
Others
Elimination
Total
Result
Infrastructure
Power
Metallurgical & Material Handling
Heavy Engineering
Electrical & Automation
Others
Total
Inter-segment margin on capital jobs
Unallocated corporate income/(expenditure) (net)
Operating Profit (PBIT)
Interest expense
Interest income
Profit before tax (PBT)
Provision for current tax
Provision for deferred tax
Profit after tax (before extraordinary items)
Profit from extraordinary items
Profit after tax (after extraordinary items)
Other information
Infrastructure
Power
Metallurgical & Material Handling
Heavy Engineering
Electrical & Automation
Others
Total
Unallocable corporate assets/liabilities
Total assets/liabilities
For the year ended 31-3-2016
Inter-segment
External
For the year ended 31-3-2015
Total
External Inter-segment
Total
crore
40113.41
4452.23
3070.91
3254.08
3871.95
2795.49
–
57558.07
538.55
6.72
231.82
45.18
257.47
32.45
(1112.19)
–
41765.78
6449.96
2379.06
2778.54
3919.67
3121.99
–
60415.00
409.50
1.32
377.43
156.32
308.69
32.82
(1286.08)
–
42175.28
6451.29
2756.49
2934.86
4228.36
3154.80
(1286.08)
60415.00
5036.61
231.42
42.40
(74.60)
501.01
555.80
6292.64
(11.02)
6281.62
1343.21
7624.83
(1449.04)
513.32
6689.11
(1551.19)
173.54
5311.46
–
5311.46
40651.96
4458.95
3302.73
3299.26
4129.42
2827.94
(1112.19)
57558.07
4443.00
201.49
238.78
336.11
503.87
653.36
6376.61
(3.04)
6373.57
1181.39
7554.96
(1419.65)
565.91
6701.22
(1628.74)
(16.30)
5056.18
–
5056.18
crore
Segment assets
Segment liabilities
As at
31-3-2016
40544.47
7267.54
5141.14
4943.50
3015.81
2874.76
63787.22
33282.49
97069.71
As at
31-3-2015
33963.23
6020.23
4927.07
4931.39
3081.41
2795.71
55719.04
31184.72
86903.76
As at
31-3-2016
24099.06
6992.16
1972.31
3294.36
1314.13
1730.31
39402.34
16949.04
56351.38
As at
31-3-2015
21010.27
5796.29
1723.93
2510.35
1385.19
1338.97
33765.00
16054.18
49819.18
272
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Other Information
Infrastructure
Power
Metallurgical & Material Handling
Heavy Engineering
Electrical & Automation
Others
b)
Secondary segments (geographical segments):
Capital expenditure
For the year
ended
31-3-2016
471.45
36.80
10.45
55.85
142.95
12.38
For the year
ended
31-3-2015
419.25
35.13
64.39
80.30
222.35
31.92
Depreciation,
Amortisation, Impairment
& Obsolescence included
in segment expense
For the year
ended
31-3-2016
431.94
58.31
88.91
110.84
123.10
62.24
For the year
ended
31-3-2015
415.06
53.88
92.90
124.33
136.33
61.17
crore
Non-cash expenses
other than depreciation
included in segment
expense
For the year
ended
31-3-2016
19.22
2.65
3.19
2.64
4.09
1.74
For the year
ended
31-3-2015
21.52
3.95
4.05
3.18
4.41
2.13
crore
Particulars
External revenue by location of customers
Carrying amount of segment assets by location
Domestic
Overseas
Total
For the year
ended
31-3-2016
49691.58
For the year
ended
31-3-2015
48300.19
For the year
ended
31-3-2016
10723.42
For the year
ended
31-3-2015
9257.88
For the year
ended
31-3-2016
60415.00
For the year
ended
31-3-2015
57558.07
of assets
53549.47
47861.60
10237.75
7857.44
63787.22
55719.04
Cost incurred on acquisition of tangible and
intangible fixed assets
641.58
776.98
88.30
76.36
729.88
853.34
c)
Segment reporting: segment identification, reportable segments and definition of each reportable segment:
i)
Primary/secondary segment reporting format:
[a] The risk-return profile of the Company’s business is determined predominantly by the nature of its products
and services. Accordingly, the business segments constitute the primary segments for disclosure of segment
information.
[b]
In respect of secondary segment information, the Company has identified its geographical segments as (i) domestic
and (ii) overseas. The secondary segment information has been disclosed accordingly.
ii)
Segment identification:
Business segments have been identified on the basis of the nature of products/services, the risk-return profile of
individual businesses, the organisational structure and the internal reporting system of the Company.
iii) Reportable segments:
Reportable segments have been identified as per the criteria specified in Accounting Standard (AS) 17 “Segment
Reporting”.
iv) Segment composition:
•
•
Infrastructure segment comprises engineering and construction of building and factories, transportation
infrastructure, heavy civil infrastructure, power transmission & distribution, water & effluent treatment and smart
world & communication projects.
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.
• Metallurgical & Material Handling segment comprises turnkey solutions for ferrous (iron & steel making) and
non-ferrous (aluminium, copper, lead & zinc) metal industries, bulk material & ash handling systems in power, port,
steel and mining sector including manufacture and sale of industrial machinery and equipment.
273
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
•
•
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, Thermal
& Nuclear Power, Aerospace and Defence.
Electrical & Automation segment 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.
• Others segment includes realty, shipbuilding, marketing and servicing of construction & mining machinery and
parts thereof, manufacture and sale of rubber processing machinery & castings (up to the date of sale).
Q(10) Disclosure of related parties/related party transactions pursuant to Accounting Standard (AS) 18 “Related Party Disclosures”
i.
List of related parties over which control exists and status of transactions entered during the year
Name of the related party
Relationship
Sr.
no.
L&T Cutting Tools Limited
1
Bhilai Power Supply Company Limited
2
L&T-Sargent & Lundy Limited
3
Spectrum Infotech Private Limited
4
L&T-Valdel Engineering Limited @
5
L&T Shipbuilding Limited
6
7
L&T Electricals and Automation Limited
8 Hi-Tech Rock Products & Aggregates Limited
9
10
11
12
13
14
15
16
Wholly owned subsidiary
Subsidiary*
Subsidiary*
Wholly owned subsidiary
Wholly owned subsidiary of L&T Hydrocarbon Engineering Limited
Subsidiary*
Wholly owned subsidiary
Wholly owned subsidiary
Wholly owned subsidiary
Subsidiary of L&T Hydrocarbon Engineering Limited
Subsidiary*
Subsidiary*
Subsidiary*
L&T Seawoods Limited
L&T-Gulf Private Limited @
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Raykal Aluminium Company Private Limited
L&T Natural Resources Limited ^ [Note Q(27)(a)] Wholly owned subsidiary of L&T Capital Company Limited
L&T Hydrocarbon Engineering Limited
L&T Special Steels and Heavy Forgings Private
Wholly owned subsidiary
Subsidiary*
Transaction
entered
during the
year (Yes/No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Limited
17
18
19
20
21
22
23
PNG Tollway Limited### [Note Q(27)(c)]
L&T Rajkot-Vadinar Tollway Limited
Kesun Iron & Steel Company Private Limited
L&T Howden Private Limited
L&T Solar Limited ^ [Note Q(27)(a)]
L&T Sapura Shipping Private Limited @
L&T Sapura Offshore Private Limited @
[Note Q(27)(b)]
L&T Powergen Limited ^ [Note Q(27)(a)]
EWAC Alloys Limited
L&T Kobelco Machinery Private Limited
L&T Realty Limited
L&T Asian Realty Project LLP
L&T Parel Project LLP
24
25
26
27
28
29
30 Chennai Vision Developers Private Limited
31
32
33
L&T Thales Technology Services Private Limited
L&T South City Projects Limited
L&T Vision Ventures Limited
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary*
Subsidiary*
Wholly owned subsidiary of L&T Capital Company Limited
Subsidiary of L&T Hydrocarbon Engineering Limited
Subsidiary of L&T Hydrocarbon Engineering Limited
Wholly owned subsidiary of L&T Capital Company Limited
Wholly owned subsidiary
Subsidiary*
Wholly owned subsidiary
Subsidiary of L&T Realty Limited **
Subsidiary of L&T Realty Limited **
Wholly owned subsidiary of L&T Realty Limited
Subsidiary of L&T Technology Services Limited
Subsidiary of L&T Realty Limited #
Subsidiary of L&T Realty Limited #
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
274
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Name of the related party
Relationship
Sr.
no.
L&T Infrastructure Engineering Limited
34
35 CSJ Infrastructure Private Limited $
36
Information Systems Resource Centre Private
Wholly owned subsidiary
Wholly owned subsidiary of L&T Realty Limited*
Wholly owned subsidiary of Larsen & Toubro Infotech Limited*
Limited ^^
L&T Power Limited
L&T Cassidian Limited
L&T General Insurance Company Limited
L&T Aviation Services Private Limited
L&T Infocity Limited @@
L&T Hitech City Limited @@@
37
38
39
40
41
42
43 Hyderabad International Trade Expositions
Limited @@@
Subsidiary*
Subsidiary*
Wholly owned subsidiary
Wholly owned subsidiary
Subsidiary
Subsidiary of L&T Infocity Limited #
Subsidiary of L&T Infocity Limited #
Larsen & Toubro Infotech Limited
44
45 GDA Technologies Limited
46
47
48
49
50
51
52
L&T Finance Holdings Limited
L&T Finance Limited
L&T Investment Management Limited
L&T Mutual Fund Trustee Limited
L&T FinCorp Limited
L&T Infrastructure Finance Company Limited
L&T Infra Investment Partners Advisory Private
Limited
53
L&T Infra Investment Partners Trustee Private
Limited
L&T Vrindavan Properties Limited
L&T Access Distribution Services Limited
L&T Capital Company Limited
L&T Trustee Company Private Limited
L&T Power Development Limited
L&T Uttaranchal Hydropower Limited
L&T Arunachal Hydropower Limited
L&T Himachal Hydropower Limited
54
55
56
57
58
59
60
61
62 Nabha Power Limited
63
64
L&T Infrastructure Development Projects Limited
L&T Panipat Elevated Corridor Limited
65
L&T Krishnagiri Thopur Toll Road Limited
66
L&T Western Andhra Tollways Limited
67
L&T Vadodara Bharuch Tollway Limited
68
69
L&T Transportation Infrastructure Limited
L&T Western India Tollbridge Limited
Subsidiary*
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
Subsidiary*
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Infrastructure Finance Company
Limited
Wholly owned subsidiary of L&T Infrastructure Finance Company
Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary
Wholly owned subsidiary of L&T Capital Company Limited
Wholly owned subsidiary
Wholly owned subsidiary of L&T Power Development Limited
Wholly owned subsidiary of L&T Power Development Limited
Wholly owned subsidiary of L&T Power Development Limited
Wholly owned subsidiary of L&T Power Development Limited
Subsidiary*
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Subsidiary of L&T Infrastructure Development Projects Limited #
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Transaction
entered
during the
year (Yes/No)
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
275
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Name of the related party
Relationship
Sr.
no.
70
L&T Interstate Road Corridor Limited
71
L&T Port Kachchigarh Limited
72
73
74
75
76
77
78
L&T Ahmedabad-Maliya Tollway Limited
L&T Halol-Shamlaji Tollway Limited
L&T Krishnagiri Walajahpet Tollway Limited
L&T Devihalli Hassan Tollway Limited
L&T Metro Rail (Hyderabad) Limited
L&T Chennai-Tada Tollway Limited
L&T BPP Tollway Limited
79
L&T Deccan Tollways Limited
80
81
82
83
84
85
86
87
L&T Samakhiali Gandhidham Tollway Limited
Larsen & Toubro LLC
Larsen & Toubro Infotech, GmbH
Larsen & Toubro Infotech Canada Limited
Larsen & Toubro Infotech LLC
L&T Infotech Financial Services Technologies Inc.
L&T Technology Services LLC
L&T Infrastructure Development Projects Lanka
(Private) Limited
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary of L&T Infrastructure Development Projects Limited #
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Subsidiary of L&T Infrastructure Development Projects Limited #
Subsidiary*
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
Wholly owned subsidiary of L&T Technology Services Limited
Subsidiary of L&T Infrastructure Development Projects Limited
88
PT Larsen & Toubro Hydrocarbon Engineering
Subsidiary*
Indonesia
89
L&T IDPL Trustee Manager Pte Ltd.
90
Kana Controls General Trading & Contracting
Company W.L.L.
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Subsidiary of L&T Electrical & Automation FZE ##
91
L&T Information Technology Services (Shanghai)
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
92
93
94
95
96
97
98
99
100
Co. Ltd.
L&T Realty FZE
Larsen & Toubro International FZE
Larsen & Toubro (Oman) LLC
Larsen & Toubro Electromech LLC
L&T Modular Fabrication Yard LLC
Larsen & Toubro (East Asia) SDN.BHD
Larsen & Toubro Qatar LLC
L&T Overseas Projects Nigeria Limited
L&T Electricals & Automation Saudi Arabia
Company LLC
Wholly owned subsidiary of L&T Realty Limited
Wholly owned subsidiary of L&T Global Holdings Limited
Subsidiary of Larsen & Toubro International FZE #
Subsidiary of Larsen & Toubro International FZE #
Subsidiary of Larsen & Toubro International FZE #
Subsidiary ##
Subsidiary of Larsen & Toubro International FZE ##
Wholly owned subsidiary of Larsen & Toubro International FZE
Subsidiary of Larsen & Toubro International FZE #
101
Larsen & Toubro Kuwait Construction General
Subsidiary of Larsen & Toubro International FZE ##
Contracting Company, W.L.L.
102
Larsen & Toubro (Qingdao) Rubber Machinery
Wholly owned subsidiary of Larsen & Toubro International FZE
Company Limited $$
103
Larsen & Toubro Readymix and Asphalt Concrete
Subsidiary of Larsen & Toubro International FZE ##
Industries LLC
104
105
Larsen & Toubro Saudi Arabia LLC
Larsen & Toubro ATCO Saudia LLC
Subsidiary of Larsen & Toubro International FZE ##
Subsidiary of Larsen & Toubro International FZE
Transaction
entered
during the
year (Yes/No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
No
No
Yes
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
276
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Name of the related party
Relationship
Sr.
no.
Tamco Switchgear (Malaysia) SDN. BHD
106
Tamco Electrical Industries Australia Pty Ltd.
107
PT Tamco Indonesia
108
Larsen & Toubro Heavy Engineering LLC
109
L&T Electrical & Automation FZE
110
Larsen & Toubro Consultoria E Projeto Ltda $$$
111
Larsen & Toubro T&D SA Proprietary Limited
112
Servowatch System Limited
113
L&T Geostructure LLP
114
115
Larsen & Toubro Arabia LLC
116 Henikwon Corporation SDN. BHD
L&T Housing Finance Limited
117
L&T Valves Limited
118
L&T Technology Services Limited
119
120 Consumer Finance Services Limited
121
122
123
124 Mudit Cement Private Limited
125
Family Credit Limited
L&T Capital Markets Limited
L&T Infra Debt Fund Limited
Larsen & Toubro Infotech South Africa (PTY)
Limited
Thalest Limited
L&T Hydrocarbon International LLC
L&T Construction Equipment Limited
Kudgi Transmission Limited
126
127
128
129
130
L&T Sambhalpur Rourkela Tollway Limited
Wholly owned subsidiary of Larsen & Toubro International FZE
Wholly owned subsidiary of Larsen & Toubro International FZE
Subsidiary of Larsen & Toubro International FZE #
Subsidiary of Larsen & Toubro International FZE #
Wholly owned subsidiary of Larsen & Toubro International FZE
Subsidiary of Larsen & Toubro International FZE
Subsidiary of Larsen & Toubro International FZE #
Wholly owned subsidiary of Thalest Limited
Subsidiary***
Subsidiary*
Wholly owned subsidiary of Tamco Switchgear (Malaysia) SDN. BHD
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary
Wholly owned subsidiary
Wholly owned subsidiary of L&T Housing Finance Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Vrindavan Properties Limited
Subsidiary of Larsen & Toubro Infotech Limited
Wholly owned subsidiary of Larsen & Toubro International FZE
Subsidiary*
Wholly owned subsidiary
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Wholly owned subsidiary of L&T Infrastructure Development Projects
Limited
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
Wholly owned subsidiary
Wholly owned subsidiary
Subsidiary*
Wholly owned subsidiary of Larsen & Toubro Infotech Limited
No
Yes
Yes
Yes
No
L&T Infotech Austria GmbH LLC
L&T Global Holdings Limited
LTH Milcom Private Limited
L&T Information Technology Spain SL
The Company holds more than one-half in nominal value of the equity share capital
The Company, together with its subsidiaries holds more than one-half in nominal value of the equity share capital
The Company controls the composition of board of directors or governing body as the case may be
The stake has been sold to wholly owned subsidiary
The Company has sold its stake on March 31, 2016
131
132
133 Marine Infrastructure Developer Private Limited
134
135
*
**
***
@
@@
@@@ The Company has sold its stake on March 31, 2016 in its subsidiary and consequently the stake in sub-subsidiary also does not exist
#
##
###
^
^^
$
$$
$$$
The Company’s subsidiary/wholly owned subsidiary holds more than one-half in nominal value of the equity share capital
The Company, together with its subsidiaries controls the composition of the Board of Directors
The Company has sold part stake to a subsidiary
Companies merged with L&T Capital Company Limited with effect from April 1, 2015
Subsidiary is merged with Larsen & Toubro Infotech Limited with retrospective effect from October 17, 2014
The company has sold its stake on November 16, 2015
The company is dissolved w.e.f. June 9, 2015
The Company is dissolved w.e.f. November 6, 2015
Transaction
entered
during the
year (Yes/No)
Yes
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
Yes
Yes
Yes
277
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
ii
(a) Names of the associates and joint ventures with whom transactions were carried out during the year:
Associate companies:
1
3
5
L&T-Chiyoda Limited @
Feedback Infra Private Limited
JSK Electricals Private Limited @@@
Joint ventures (other than associates):
Metro Tunneling Group
Desbuild-L&T Joint Venture
L&T-AM Tapovan Joint Venture
L&T ASTCC JV-Doha
1
3
5
7
9
2
4
2
4
6
8
Salzer Electronics Limited @@
Magtorq Private Limited
L&T Hochtief Seabird Joint Venture
Metro Tunneling Chennai-L&T-Shanghai Urban
Construction (Group) Corporation Joint Venture
HCC-L&T Purulia Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation
L&T-Shanghai Urban Construction (Group)
Corporation Joint Venture CC27 Delhi
Joint Venture
10
L&T-Eastern Joint Venture $
11
Larsen & Toubro Limited-Shapoorji Pallonji & Co.
12
Metro Tunneling Delhi-L&T Shanghai Urban Construction
Limited Joint Venture
(Group) Corporation Joint Venture
13
15
International Metro Civil Contractors Joint Venture
Aktor-Larsen & Toubro-Yapi Merkezi-stfa-Al Jaber
14
16
Civil Works Joint Venture
L&T-Delma Mafraq Joint Venture
Engineering
17
Larsen & Toubro Limited and NCC Limited Joint
Venture
@ The Company has sold its stake on October 19, 2015 to a wholly owned subsidiary
@@ The Company has sold its stake in July and August, 2015
@@@ The Company has sold its stake on March 29, 2016
$ The Joint Venture is in the process of dissolution
ii
(b) Names of the key management personnel and their relatives with whom transactions were carried out during the year:
Key management personnel & their relatives:
1 Mr. A. M. Naik (Group Executive Chairman)
2 Mr. K. Venkataramanan (CEO & Managing Director) *
Mrs. Jyothi Venkataramanan (wife)
3 Mr. M. V. Kotwal (Whole-time Director) **
4 Mr. R. Shankar Raman (CFO & Whole-time Director)
5 Mr. S. N. Subrahmanyan (Whole-time Director)
6 Mr. S. N. Roy (Whole-time Director)
7 Mr. D. K. Sen (Whole-time Director) #
8 Mr. M. V. Satish (Whole-time Director) ##
* Retired on September 30, 2015
** Retired on August 26, 2015
# Appointed w.e.f. October 1, 2015
## Appointed w.e.f. January 29, 2016
278
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
iii. Disclosure of related party transactions:
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
1 Purchase of goods & services (including commission paid)
Subsidiaries, including:
2760.99
2340.85
2015-16
2014-15
crore
L&T-MHPS Turbine Generators Private Limited
L&T-MHPS Boilers Private Limited
Associates & joint ventures, including:
Salzer Electronics Limited
JSK Electricals Private Limited
536.02
1256.68
74.54
153.46
37.33
27.99
Total
2835.53
2494.31
2 Sale of goods/contract revenue & services
Subsidiaries, including:
4771.41
5623.44
L&T Metro Rail (Hyderabad) Limited
Nabha Power Limited
Larsen and Toubro Saudi Arabia LLC
L&T Deccan Tollways Limited
L&T Infrastructure Development Projects Limited
L&T Seawoods Limited
1395.17
–
628.73
533.50
653.99
477.15
Associates & joint ventures, including:
93.18
86.91
Civil Works Joint Venture
L&T- Shanghai Urban Construction (Group) Corporation
Joint Venture CC27 Delhi
Metro Tunneling Chennai - L&T-Shanghai Urban
Construction (Group) Corporation Joint Venture
Metro Tunneling Delhi - L&T-Shanghai Urban Construction
(Group) Joint Venture
Larsen & Toubro Limited and NCC Limited Joint Venture
4.51
34.00
33.41
10.50
10.64
Total
3 Purchase/lease of fixed assets
Subsidiaries, including:
L&T Construction Equipment Limited
Tamco Switchgear (Malaysia) SDN. BHD
L&T Technology Services Limited
Henikwon Corporation SDN. BHD
Larsen and Toubro Infotech Limited
Associates & joint ventures:
L&T-Chiyoda Limited
Total
4864.59
5710.35
15.49
11.03
–
–
–
–
12.49
–
–
15.49
0.11
11.14
484.72
1105.64
123.81
24.04
2080.94
661.06
618.03
–
–
–
50.12
19.09
9.58
–
–
1.37
3.29
2.15
1.55
–
0.11
279
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
2015-16
2014-15
crore
4 Sale of fixed assets
Subsidiaries, including:
Larsen and Toubro Infotech Limited
L&T-MHPS Turbine Generators Private Limited
Larsen and Toubro (Oman) LLC
Key management personnel
K. Venkataramanan *
M. V. Kotwal **
Total
5 Sale of Receivables
Subsidiary:
L&T Finance Limited
Total
6 Subscription to equity and preference shares (including application
money paid)
Subsidiaries, including:
L&T Seawoods Limited
L&T Power Development Limited
L&T Technology Services Limited
L&T Shipbuilding Limited
L&T Realty Limited
L&T Uttaranchal Hydropower Limited
2.01
15.78
–
0.26
1.07
8.85
0.44
44.83
–
15.78
276.16
276.16
9.29
11.30
44.83
44.83
3461.13
2428.61
–
383.40
–
1331.86
648.30
604.75
Total
3461.13
2428.61
7 Investment in Integrated joint ventures [Note (R)(21)]
Increase in investment, including:
442.60
164.43
Metro Tunneling Delhi - L&T-Shanghai Urban Construction
(Group) Corporation Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation
Joint Venture CC 27 Delhi
Civil Works Joint Venture
L&T-Delma Mafraq Joint Venture
–
53.84
210.67
144.76
Total
442.60
164.43
10.34
–
–
–
–
276.16
1529.55
–
547.50
–
–
–
37.48
52.60
57.12
–
280
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
2015-16
2014-15
crore
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
Decrease in investment, including:
44.21
31.30
Metro Tunneling Chennai - L&T-Shanghai Urban
Construction (Group) Corporation Joint Venture
Larsen & Toubro Limited - Shapoorji Pallonji & Co. Limited
Joint Venture
Metro Tunneling Delhi - L&T-Shanghai Urban Construction
(Group) Corporation Joint Venture
21.72
–
19.43
12.89
17.18
–
Total
8 Purchase of investments from
Subsidiary, including:
44.21
31.30
4234.01
4280.66
L&T Capital Company Limited
4233.64
4280.66
Total
9 Sale of investments to
Subsidiaries, including:
L&T Capital Company Limited
L&T Global Holdings Limited
4234.01
4280.66
5542.28
4277.56
4232.03
1147.40
4277.56
–
Total
5542.28
4277.56
10 Charges paid for miscellaneous services
Subsidiaries, including:
152.49
89.94
Larsen & Toubro Infotech Limited
L&T Aviation Services Private Limited
L&T Technology Services Limited
Associates & joint ventures, including:
2.48
Feedback Infra Private Limited
L&T-Chiyoda Limited
Civil Works Joint Venture
84.93
23.91
16.49
–
0.59
1.89
1.04
Total
154.97
90.98
11 Rent paid, including lease rentals under leasing/hire purchase
arrangements
Subsidiaries, including:
L&T Electrical & Automation FZE
L&T Infocity Limited
PT Tamco Indonesia
Key management personnel
K. Venkataramanan * & Mrs. Jyothi Venkataramanan
Total
1.68
1.82
0.86
0.37
0.23
0.01
0.01
1.69
0.01
1.83
33.71
27.37
–
0.77
0.23
–
0.98
0.35
0.30
0.01
281
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
2015-16
2014-15
crore
12 (a) Charges incurred for deputation of employees from related
parties
Subsidiaries, including:
L&T Hydrocarbon Engineering Limited
L&T Electricals and Automation Saudi Arabia Company
LLC
L&T Electrical and Automation FZE
Larsen and Toubro Infotech Limited
Larsen and Toubro (Oman) LLC
PT Tamco Indonesia
Total
12 (b) Charges recovered for deputation of employees to related
parties
Subsidiary, including:
L&T Parel Project LLP
Associates & joint ventures, including:
L&T-Chiyoda Limited
Aktor- Larsen & Toubro-Yapi Merkezi-stfa-Al Jaber
Engineering Joint Venture
Civil Works Joint Venture
L&T-Delma Mafraq Joint Venture
Total
13 Dividend received
Subsidiaries, including:
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Finance Holdings Limited
13.70
11.19
2.18
2.18
4.43
2.59
–
–
25.35
–
32.30
132.21
69.20
526.48
302.00
–
13.70
79.49
252.91
332.40
1007.91
11.19
77.99
21.12
99.11
850.70
Associates & joint ventures, including:
0.38
0.58
Salzer Electronics Limited
Magtorq Private Limited
0.38
–
Total
1008.29
851.28
14 Commission received, including those under agency arrangements
Subsidiaries, including:
L&T Kobelco Machinery Private Limited
L&T Construction Equipment Limited
Total
7.49
7.49
2.64
4.84
3.73
3.73
1.84
1.27
3.48
–
1.28
1.20
22.15
21.06
–
–
–
480.52
219.93
96.68
0.40
0.18
2.24
1.49
282
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
15 Rent received, overheads recovered and miscellaneous income
Subsidiaries, including:
547.14
510.18
2015-16
2014-15
crore
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Hydrocarbon Engineering Limited
Associates & joint ventures, including:
Aktor-Larsen & Toubro-Yapi Merkezi-stfa-Al Jaber
Engineering Joint Venture
Civil Works Joint Venture
L&T-Delma Mafraq Joint Venture
L&T-Chiyoda Limited
Total
16 Guarantee charges recovered from
Subsidiaries, including:
Nabha Power Limited
Larsen and Toubro Saudi Arabia LLC
L&T Hydrocarbon Engineering Limited
Total
17 Interest received from
Subsidiaries, including:
L&T Hydrocarbon Engineering Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T Realty Limited
L&T Shipbuilding Limited
Nabha Power Limited
Associates & joint ventures:
The Dhamra Port Company Limited
Total
18 Interest paid to
Subsidiaries, including:
L&T Hydrocarbon Engineering Limited
L&T Construction Equipment Limited
L&T Infrastructure Development Projects Limited
L&T Realty Limited
Nabha Power Limited
L&T Cutting Tools Limited
77.23
69.89
96.83
6.66
139.45
553.81
18.18
5.60
–
–
1.06
9.90
–
6.02
649.63
9.12
18.18
9.12
270.46
286.42
–
270.46
17.76
–
52.58
69.94
90.62
31.50
–
6.31
1.98
3.89
–
4.70
–
9.32
295.74
14.67
Total
17.76
14.67
84.71
68.64
105.86
28.57
72.63
32.02
–
6.36
1.21
1.06
76.00
33.57
104.48
–
–
9.32
–
4.11
2.35
1.54
4.76
1.72
283
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
2015-16
2014-15
crore
19 Amount provided for bad debts
Subsidiary:
Larsen and Toubro (Qingdao) Rubber Machinery Company
Limited
Total
20 Transfer of business to
Subsidiary:
L&T Technology Services Limited
Total
–
–
–
–
21 Payment of salaries/perquisites (other than commission)
36.19
Key management personnel
A. M. Naik
K. Venkataramanan *^$
M. V. Kotwal**^^
S. N. Subrahmanyan
R. Shankar Raman
S. N. Roy
D. K. Sen #
M. V. Satish ##
Total
22 Commission to directors @
Key management personnel
A. M. Naik
K. Venkataramanan *
M. V. Kotwal **
S. N. Subrahmanyan
R. Shankar Raman
S. N. Roy
D. K. Sen #
M. V. Satish ##
Total
23 Capital reduction by
Subsidiary:
L&T Capital Company Limited
Total
36.19
59.93
59.93
21.95
21.95
–
–
4.52
15.19
9.60
2.02
1.70
2.31
0.61
0.24
22.81
4.28
2.31
12.57
8.76
5.59
2.68
0.93
21.95
3.09
3.09
549.49
549.49
16.98
16.98
64.27
64.27
–
–
3.09
549.49
4.22
4.20
3.01
1.74
1.59
2.22
–
–
23.10
9.38
6.24
11.09
8.78
5.68
–
–
–
* Retired on September 30, 2015
# Appointed w. e. f. October 1, 2015
^ Includes leave encashment payment on retirement of 13.53 crore
$ Out of the above, the company has recovered Nil (previous year: 0.75 crore) from L&T Hydrocarbon Engineering Limited which has
** Retired on August 26, 2015
## Appointed w. e. f. January 29, 2016
^^ Includes leave encashment payment on retirement of 7.89 crore
been included in Note Q(10)(iii)(15) supra
284
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
@ Commission to director comprises:
Sr. Particulars
no.
1 Commission
2 Contribution to provident fund
3 Contribution to superannuation fund on commission
Total
2015-16
47.81
5.04
7.08
59.93
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during
respective period.
iv. Amount due to/from related parties:
crore
2014-15
50.61
6.07
7.59
64.27
crore
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
As at 31-3-2016
As at 31-3-2015
1 Accounts receivable
Subsidiaries, including:
Nabha Power Limited
L&T Metro Rail (Hyderabad) Limited
Larsen and Toubro Saudi Arabia LLC
1462.54
1443.50
–
297.98
202.25
Associates & joint ventures, including:
128.95
–
Metro Tunneling Chennai - L&T-Shanghai Urban
Construction (Group) Corporation Joint Venture
Metro Tunneling Delhi - L&T-Shanghai Urban
Construction (Group) Corporation Joint Venture
Civil Works Joint Venture
36.82
18.91
57.64
Total
1591.49
1443.50
2 Accounts payable (including acceptance & interest accrued)
Subsidiaries, including:
2256.57
1782.16
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
1042.25
555.34
Associates & joint ventures, including:
42.16
104.19
Metro Tunneling Chennai - L&T-Shanghai Urban
Construction (Group) Corporation Joint Venture
Metro Tunneling Delhi - L&T-Shanghai Urban
Construction (Group) Corporation Joint Venture
Larsen & Toubro Limited and NCC Limited Joint
Venture
Salzer Electronics Limited
L&T-Shanghai Urban Construction (Group) Corporation
Joint Venture
Total
–
–
27.73
–
5.56
2298.73
1886.35
256.39
–
253.41
–
–
–
830.70
547.20
31.77
18.78
25.20
18.54
–
285
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
As at 31-3-2016
As at 31-3-2015
crore
3 Investment in debt securities
Subsidiary:
L&T Finance Limited
Total
4 Loans & advances recoverable (including interest accrued)
Subsidiaries, including:
L&T-MHPS Boilers Private Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T Shipbuilding Limited
L&T Realty Limited
Nabha Power Limited
Associates & joint ventures, including:
62.80
L&T-AM Tapovan Joint Venture
Larsen & Toubro Limited - Shapoorji Pallonji & Co.
Limited Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation
Joint Venture CC27 Delhi
L&T-Delma Mafraq Joint Venture
Key management personnel
K. Venkataramanan * & Mrs. Jyothi Venkataramanan
Total
5 Advances against equity contribution
Subsidiaries, including:
L&T Shipbuilding Limited
L&T Realty Limited
L&T Power Development Limited
L&T Uttaranchal Hydropower Limited
Total
6 Unsecured loans (including lease finance)
Subsidiaries, including:
L&T Construction Equipment Limited
L&T Cutting Tools Limited
Total
286
22.75
22.75
22.75
22.95
22.95
22.95
6339.66
3021.29
–
877.47
2275.23
–
918.15
11.87
–
–
43.48
84.99
–
0.01
6402.46
5.25
5.25
9.25
9.25
–
–
–
–
5.25
–
9.25
3106.29
1986.84
1986.84
57.25
57.25
304.77
564.02
400.18
710.90
–
12.01
23.39
27.94
14.96
0.01
421.86
648.29
379.40
523.00
45.00
12.25
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
As at 31-3-2016
As at 31-3-2015
crore
Nature of transaction/relationship/major parties
Sr.
no.
Amount Amounts for
major parties
Amount Amounts for
major parties
7 Advances received in the capacity of supplier of goods/services
classified as “advances from customers” in the Balance Sheet
Subsidiaries, including:
266.75
586.12
L&T Metro Rail (Hyderabad) Limited
L&T Seawoods Limited
L&T Deccan Tollways Limited
L&T Infrastructure Development Projects Limited
Total
8 Due to Whole-time Directors
Key management personnel
A. M. Naik
K. Venkataramanan *
M. V. Kotwal **
S. N. Subrahmanyan
R. Shankar Raman
S. N. Roy
D. K. Sen #
M. V. Satish ##
266.75
47.83
129.40
–
36.97
68.84
17.96
3.77
2.04
9.90
6.90
4.40
2.13
0.73
586.12
50.61
223.24
82.95
96.03
122.24
18.19
7.39
4.91
8.73
6.91
4.48
–
–
Total
47.83
50.61
* Retired on September 30, 2015
** Retired on August 26, 2015
# Appointed w. e. f. October 1, 2015
## Appointed w. e. f. January 29, 2016
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during
respective period.
v. Notes to related party transactions:
The Company has a marketing and selling arrangement with L&T Construction Equipment Limited, a subsidiary company. As
per the terms of the arrangement, the Company is an agent of L&T Construction Equipment Limited to market construction
equipment and hydraulic equipment & parts manufactured by L&T Construction Equipment Limited and to provide after sales
product support for construction equipment. Pursuant to the aforesaid arrangement, L&T Construction Equipment Limited is
required to pay commission to the Company at specified rates on the sales effected by the Company.
The financial impact of the aforesaid arrangement has been included in/disclosed vide Note Q(10)(iii) supra.
287
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(11) Disclosure in respect of leases pursuant to Accounting Standard (AS) 19 “Leases”:
(i) Where the Company is a lessee:
Operating leases:
i.
The Company had taken various commercial premises and plant & equipment under cancellable operating leases. Those
lease agreements were normally renewed on expiry.
ii.
a.
The Company had taken certain assets like cars, technology assets, etc. on non-cancellable operating leases, the
future minimum lease payments in respect of which were as follows:
Particulars
1.
2.
3.
Payable not later than 1 year
Payable later than 1 year and not later than 5 years
Payable later than 5 years
Total
crore
Minimum lease payments
As at
31-3-2016
As at
31-3-2015
17.60
19.93
–
12.56
8.99
–
37.53
21.55
b.
The lease agreements provided for an option to the Company to renew the lease period at the end of the non-
cancellable period. There were no exceptional/restrictive covenants in the lease agreements.
iii.
Lease rental expense in respect of operating leases: 76.97 crore (previous year: 87.14 crore).
iv. Contingent rent recognised in the Statement of Profit and Loss: Nil (previous year: Nil).
Q(12) Basic and diluted earnings per share [EPS] computed in accordance with Accounting Standard (AS) 20 “Earnings per Share”.
Particulars
Before extraordinary items
After extraordinary items
2015-16
2014-15
2015-16
2014-15
Basic
Profit after tax as per accounts ( crore)
Weighted average number of shares outstanding
Basic EPS ( )
Diluted
Profit after tax as per accounts ( crore)
Weighted average number of shares outstanding
Add: Weighted average number of potential equity
shares on account of employee stock options
Weighted average number of shares outstanding
for diluted EPS
Diluted EPS ( )
Face value per share ( )
A
B
A/B
A
B
C
5311.46
5056.18
93,07,61,648 92,83,48,310 93,07,61,648 92,83,48,310
54.46
5056.18
5311.46
54.46
57.07
57.07
5311.46
5056.18
93,07,61,648 92,83,48,310 93,07,61,648 92,83,48,310
5056.18
5311.46
43,62,080
62,19,750
43,62,080
62,19,750
D=B+C 93,51,23,728 93,45,68,060 93,51,23,728 93,45,68,060
54.10
54.10
2
2
56.80
2
56.80
2
A/D
Note: Potential equity shares that could arise on conversion of FCCBs are not resulting into dilution of EPS. Hence, they have not
been considered in working of diluted EPS in accordance with Accounting Standard (AS) 20 “Earnings per share”.
288
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(13) Major components of deferred tax liabilities and deferred tax assets pursuant to Accounting Standard (AS) 22 “Accounting for
Taxes on Income”:
Particulars
Deferred tax
liabilities/
(assets) as at
31-3-2015
Less:
Transfer
out*
Charge/
(credit) to
Statement of
Profit & Loss
Charge/
(credit) to
opening
reserves $
Charge/
(credit) to
hedging
reserve**
Deferred tax
liabilities/
(assets) as at
31-3-2016
crore
Deferred tax liabilities:
Difference between book and tax depreciation
607.31
Gain on derivative transactions to be offered for tax
purposes in the year of transfer to the Statement
of Profit and Loss
Disputed statutory liabilities paid and claimed as
deduction for tax purposes but not debited to the
Statement of Profit and Loss
Other items giving rise to timing differences
Total
Deferred tax (assets):
Provision for doubtful debts and advances debited to
the Statement of Profit and Loss
Loss on derivative transactions to be claimed for tax
purposes in the year of transfer to the Statement
of Profit and Loss
Unpaid statutory liabilities/provision for compensated
absences debited to the Statement of Profit and
Loss
Other items giving rise to timing differences
Total
Net deferred tax liability/(assets)
Previous year
4.71
100.48
233.54
946.04
(236.39)
(109.63)
(173.52)
(63.51)
(583.05)
362.99
409.92
–
–
–
–
–
–
–
–
–
–
–
(48.88)
(17.89)
(2.13)
–
587.29
–
13.17
(61.18)
(65.90)
(108.72)
–
(23.82)
24.90
(107.64)
(173.54)
16.30
–
–
–
(4.19)
0.52
–
–
113.65
172.36
873.82
(2.13)
(4.19)
–
–
–
–
–
(2.13)
(29.33)
–
(345.11)
20.23
(89.40)
–
–
20.23
16.04
(82.78)
(197.34)
(38.61)
(670.46)
203.36
362.99
*
Net deferred tax assets of 48.88 crore was transferred pursuant to transfer of business to wholly owned subsidiaries in
previous year.
** The amount of (167.95 crore) [previous year: (198.25 crore)] represents net gains/(losses) on effective hedges recognised
in hedge reserve, applying the principles of hedge accounting set out in the Accounting Standard (AS) 30 “Financial
Instruments: Recognition and Measurement”. The amount is after considering the net deferred tax liability of 16.04 crore
(previous year net deferred tax asset: 82.78 crore).
$
Reversal of deferred tax on depreciation charged against opening reserves as on April 1, 2015, pursuant to Schedule II of
Companies Act, 2013, 2.13 crore [previous year: (29.33 crore)].
Q(14) Disclosures in respect of joint ventures pursuant to Accounting Standard (AS) 27 “Financial Reporting of Interests in Joint Ventures”
a)
List of Joint Ventures
Sr.
no.
1
2
3
Name of Joint Venture
Description of interest
Proportion
of ownership
interest %
Country
of
residence
L&T-Hochtief Seabird Joint Venture
Jointly Controlled Entity (Construction of
breakwater, Karwar)
International Metro Civil
Contractors Joint Venture
Jointly Controlled Entity (Construction of Delhi
Metro Corridor-Phase I Tunnel Project)
HCC-L&T Purulia Joint Venture
Jointly Controlled Entity (Construction of Pumped
Storage Project)
90
26
43
India
India
India
289
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Sr.
no.
Name of Joint Venture
Description of interest
Proportion
of ownership
interest %
Country
of
residence
4
5
6
7
8
9
Desbuild-L&T Joint Venture
Metro Tunneling Group
L&T-AM Tapovan Joint Venture
Jointly Controlled Entity (Renovation of US
Consulate, Chennai)
Jointly Controlled Entity (Construction of Delhi
Metro Corridor-Phase II Tunnel Project)
Jointly Controlled Entity (Construction of Head Race
Tunnel for Tapovan Vishnugad Hydro Electric project
in Uttaranchal state)
L&T-Shanghai Urban Construction
(Group) Corporation Joint Venture
L&T-Eastern Joint Venture
Metro Tunneling Chennai-L&T-
Shanghai Urban Construction
(Group) Corporation Joint Venture
(CMRL)
Jointly Controlled Entity (Construction of Twin
Tunnel between IGI Airport and Sector 21 for
DMRC)
Jointly Controlled Entity (Construction and
maintenance of 295 Residential Units at Dubai)
Jointly Controlled Entity (Construction of UG
Stations at Nehru Park, KMC and Pachiyappas
College and associated tunnels for CMRL)
10 Metro Tunneling Delhi-L&T-Shanghai
Urban Construction (Group)
Corporation Joint Venture
Jointly Controlled Entity (Construction of Delhi
Metro Corridor- Tunnel Project-Phase-CC5)
11
12
Larsen &Toubro-Shapoorji Pallonji &
Co. Limited Joint Venture
Jointly Controlled Entity (Design & Build work for
Construction of TCS SEZ at Kolkata, West Bengal)
L&T-Shanghai Urban Construction
(Group) Corporation Joint venture-
CC27 Delhi
Jointly Controlled Entity (Design and Construction
of Tunnel for Delhi MRTS Project of Phase-III)
13
Civil Works Joint Venture
14
Aktor-Larsen & Toubro-Yapi
Merkezi-stfa-Al Jaber Engineering
Joint Venture
15
L&T Delma Mafraq Joint Venture
16
17
18
Larsen & Toubro Limited-Scomi
Engineering BHD Consortium-
Residual Joint Works-Joint Venture
Larsen & Toubro Limited-Scomi
Engineering BHD Consortium-O&M
Joint Venture
Larsen & Toubro Limited and NCC
Limited Joint Venture
19
L&T-AL-Sraiya LRDP 6 Joint Venture
Jointly Controlled Entity (Contract for Detail Design,
Construction and Commissioning of Package 2 of
The Riyadh Metro Project)
Jointly Controlled Entity (Contract for Design &
Build Package 3, Gold Line Underground, a part of
the construction of the Qatar integrated Railway
Project)
Jointly Controlled Entity (Improvement of Mafraq to
AL Ghwaifat Border Post Highway Section No.4A)
Jointly Controlled Entity (Implementation of residual
joint works for monorail system in Mumbai)
Jointly Controlled Entity (Operation and
Maintenance of monorail system)
Jointly Controlled Entity (Supply and construction
of 2 parallel 2100 mm diameter steel gravity mains
conduit pipes from Palra to Bhureka)
Execution of the Roads and Infrastructure in Doha
Industrial Area
49
26
65
51
65
75
@
50
@
29
22
60
60
50
55
75
India
India
India
India
UAE
India
India
India
India
Saudi
Arabia
Qatar
UAE
India
India
India
Qatar
290
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Sr.
no.
20
Name of Joint Venture
Description of interest
PESB and Larsen & Toubro Joint
Venture
Execution of 500 KV Transmission Line Tender in
Malaysia
Proportion
of ownership
interest %
Country
of
residence
82.30
Malaysia
21
Daewoo and L&T UJV
22
L&T Sojitz Consortium
23
L&T-KBL (UJV) Hyderabad
24
Patel-L&T Consortium
25
L&T-SVEC Joint Venture
26
L&T-KBL-MAYTAS UJV
27
28
Larsen & Toubro Limited & Bharat
Rail Automation Pvt Limited Joint
Venture (package II)
Larsen & Toubro Limited & Bharat
Rail Automation Pvt Limited Joint
Venture (package III)
29
IIS-L&T Consortium
50
–
–
–
–
–
–
India
India
India
India
India
India
India
–
India
–
India
EPC for construction of Greenfield six-Lane
Extradosed Cable Bridge over Ganga River
Design and construction of special bridge across
narmada river structure for Dedicated Freight
Corridor Corporation
Jointly Controlled Operations (Investigation, Design,
Supply and Erection of necessary lift systems with
all electrical and mechanical components including
surge protection systems)
Jointly Controlled Operations (Parbati Hydro Electric
Project)
Jointly Controlled Operations (Lift Irrigation Project
at Hyderabad)
Jointly Controlled Operations (Transmission of 735
Mld treated water associated with all Civil, Electrical
& Mechanical works at Hyderabad)
Jointly Controlled Operations (design, supply,
erection, testing & commissioning of 25 KV, 50HZ,
single phase, traction over-head Equipment,
switching stations, SCADA and other associated
works, in the state of Karnataka and Andhra
Pradesh, India)
Jointly Controlled Operations (design, supply,
erection, testing & commissioning of 25 KV, 50HZ,
single phase, traction over-head equipment,
switching stations, and other associated works, in
the state of Karnataka and Andhra Pradesh, India)
Design & Construction of 8 Special Steel Bridges
over water main and railways and across creek &
rivers including ulhas damanganga, par & tapi rivers,
involving bridge structure, approaches in formation
in embankments with 1 major bridge, 3 minor
bridges and 1 RUB, guide bunds and protection
works including testing and commissioning on
design-build lumpsum price basis for JNPT Vadodara
section of western dedicated freight corridor
(Phase-2)
30
L&T and Scomi Engineering BHD
Joint Venture
Jointly Controlled Operations (Implementation of
monorail system in Mumbai)
–
India
291
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
b)
Financial interest in jointly controlled entities (to the extent of the Company’s share)
Sr.
no.
Name of Integrated
Joint Ventures/Jointly
Controlled Entities
As at March 31, 2016
Assets
Liabilities
Company’s share
For the Year 2015–16
Tax
Expenses
Net profit
(Note K)
Income
–
(–)
0.14
(–) $
47.75
(47.75)
2.55
(3.82)
7.55
(7.30)
5.49
(5.12)
1.08
(1.12)
0.62
(0.45)
–
(0.22)
0.17
(1.26)
2.69
(2.69)
38.87
(40.96)
{(0.01)}
((0.3))
13.04
(12.57)
87.69
–
(–)
0.30
(0.23)
106.44
(64.67) (216.66)
0.01
(0.01)
0.08
(0.11)
0.03
((*))
0.35
(0.29)
0.01
(–)
0.89
(1.26)
– ^
(–) Ω
–
(0.54)
117.51
(221.20)
71.47
(71.47)
9.73
(13.06)
23.04
(22.20)
18.95
(18.39)
2.98
(2.98)
145.61
(148.68)
0.04
(0.04)
18.55
(17.79)
110.91
(109.62)
104.53
(128.51)
67.39
104.28
(71.94) (140.44)
104.57
(141.69)
49.27
(75.16)
20.96
(53.51)
31.85
(82.55)
36.82
(96.94)
209.23
(261.99)
90.13
191.07
(196.73) (383.54)
189.22
(384.73)
694.85
(553.11)
694.85 1005.85
1005.85
(553.11)
(–)
(–)
2091.26
(1799.47)
321.01
(125.92)
1823.47
(1742.36)
176.25
1568.47
(57.10)
380.15
(125.92) (106.78)
1363.96
(–)
349.92
(106.78)
–
(–)
0.09
(–)
0.41
(0.36)
0.08
(0.05)
–
(–)
–
(–)
–
((0.02))
–
(–)
0.87
((0.40))
–
(–)
–
(–)
–
(–)
–
(–)
–
(–)
–
(–)
1
2
3
4
5
6
7
8
L&T-Hochtief Seabird
Joint Venture
International Metro
Civil Contractors Joint
Venture
Metro Tunneling Group
L&T-Shanghai Urban
Construction (Group)
Corporation Joint
Venture
HCC-L&T Purulia Joint
Venture
L&T-AM Tapovan Joint
Venture
Desbuild-L&T Joint
Venture
L&T-Eastern Joint
Venture
9
11
Metro Tunneling Chennai
-L&T-Shanghai Urban
Construction (Group)
Corporation Joint
Venture-CMRL
10 Metro Tunneling Delhi
-L&T Shanghai Urban
Construction (Group)
Corporation Joint
Venture
Larsen & Toubro Limited-
Shapoorji Pallonji & Co.
Ltd Joint Venture
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
13
12
14
15
L&T Delma Mafraq Joint
Venture
292
crore
Net loss
(Note O)
0.01
(0.01)
0.03
(0.11)
–
(–)
–
(–)
0.01
(–)
0.72
(–)
– #
(–)
–
(0.31)
11.94
(4.14)
–
(–)
–
(–)
0.64
(0.76)
0.19
(0.11)
–
(0.22)
–
(–)
–
(0.02)
0.30
(–)
–
(–)
–
(–)
0.29
(1.25)
–
(–)
4.97
(14.39)
1.85
(–)
–
(1.19)
–
(–)
204.51
(57.10)
30.23
(–)
–
(–)
–
(–)
–
(–)
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Sr.
no.
Name of Integrated
Joint Ventures/Jointly
Controlled Entities
16
17
18
19
20
21
L&T Scomi Monorail
Joint Venture-Main
L&T Scomi Monorail
Joint Venture-O&M
Larsen & Toubro Limited
& NCC Limited Joint
Venture
Larsen & Toubro Limited
and Al Sraiya Trading &
Contracting Company
Joint Venture
PESB and Larsen &
Toubro Joint Venture
Daewoo-L&T Joint
Venture
Total
Entities Share of
Net Assets in Jointly
Controlled entities
Company’s share
As at March 31, 2016
Assets
Liabilities
Income
For the Year 2015–16
Tax
Expenses
Net profit
(Note K)
3.50
(2.14)
8.76
(7.60)
97.62
(72.10)
7.45
(27.56)
7.80
(7.11)
158.15
(41.35)
6.81
(25.45)
14.83
(21.52)
143.87
(41.35)
165.71
(–)
24.29
(–)
24.34
(–)
–
(–)
–
(–)
3354.26
–
(–)
–
(–)
3588.11
(3009.99) (1066.37)
–
(–)
–
(–)
3359.07
(1041.87)
–
(0.54)
–
(–)
–
(–)
–
(–)
–
(–)
–
(–)
1.45
(0.53)
3.50
(2.14)
8.76
(7.60)
111.90
(72.10)
177.00
(–)
–
(–)
–
(–)
4172.59
(3430.23)
818.33
(420.24)
crore
Net loss
(Note O)
–
(–)
7.03
(14.41)
–
(–)
0.64
(1.57)
–
(–)
14.28
(–)
–
(–)
0.05
(–)
–
(–)
–
(–)
252.64
(59.78)
–
(–)
–
(–)
25.05
(35.81)
Amounts less than
0.01 Crore:
8416, #
Current year: ^
Previous year: * 2634, $ 3352, Ω 8258
8416,
@: On scope of respective activities under the contract as mutually agreed between Joint Venture partners
Notes:
i.
Figures in brackets ( ) relate to previous year, figures in (( )) represents negative amounts in previous year, figures in {( )}
represents negative amounts in the current year
ii. Contingent liabilities, if any, incurred in relation to interest in Joint Ventures as at March 31, 2016 is 4170.76
crore (previous year: 3248.49 crore) and share in contingent liabilities incurred jointly with other ventures as at
March 31, 2016 is Nil (previous year: Nil)
iii. Share in contingent liabilities of Joint Ventures themselves for which the company is contingently liable as at
March 31, 2016 is 58.18 crore (previous year: 80.13 crore)
iv. Contingent liabilities in respect of liabilities of other ventures’ of Joint Ventures as at March 31, 2016 is 8006.19 crore
(previous year: 10840.81 crore)
v. Capital commitments, if any, in relation to interest in Joint Ventures as at March 31, 2016 is Nil (previous year: Nil)
vi. Share in capital commitments of Joint Ventures themselves for which the Company is contingently liable as at
March 31, 2016 is 2.61 crore (previous year: 159.34 crore)
293
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(15) Disclosures pursuant to Accounting Standard (AS) 29 “Provisions, Contingent Liabilities and Contingent Assets”:
a) Movement in provisions:
Sr.
no.
1
2
3
4
Particulars
Balance as at 1-4-2015
Additional provision during the year
Provision used/reversed during the year # &
Balance as at 31-3-2016 (4=1+2-3)
Class of Provisions
Product
warranties
10.72
10.25
(10.35)
10.62
Expected
tax liability
in respect
of indirect
taxes
93.42
39.33
(1.15)
131.60
Litigation
related
obligations
8.27
–
–
8.27
Contractual
rectification
cost -
construction
contracts
146.70
121.21
(142.16)
125.75
crore
Total
259.11
170.79
(153.66)
276.23
#
&
includes provision used during the year 1.84 crore (previous year: 4.58 crore)
includes sale of foundry business 0.39 crore (previous year: Nil)
b) Nature of provisions:
i.
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, 2016 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 two to five years from the date of Balance Sheet.
ii.
Expected tax liability in respect of indirect taxes represents mainly the differential sales tax liability on account of
non-collection of declaration forms.
iii. Provision for litigation related obligations represents liabilities that are expected to materialise in respect of matters in
appeal.
iv. 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 Accounting Standard (AS) 7
(Revised) “Construction Contracts”.
c) Disclosure in respect of contingent liabilities is given as part of Note (I) to the Balance Sheet.
Q(16) In line with the Company’s risk management policy, the various financial risks mainly relating to changes in the exchange rates,
interest rates and commodity prices are hedged by using a combination of forward contracts, swaps and other derivative contracts,
besides the natural hedges.
a)
The particulars of derivative contracts entered into for hedging purposes outstanding as at March 31, 2016 are as under:
Category of Derivative Instruments
i) For hedging foreign currency risks and interest rate risks
a) Forward contracts for receivables including firm commitments and highly probable
forecasted transactions
b) Forward contracts for payables including firm commitments and highly probable
forecasted transactions
c) Currency and interest rate swaps
d) Option contracts
ii) For hedging commodity price risks
a) Commodity futures
iii) For hedging Investment in mutual fund and bonds
a) Stock market index futures
b) Interest rate swaps
294
crore
Amount of exposures hedged
As at
31-3-2016
As at
31-3-2015
5067.38
4501.34
14922.13
2848.01
–
10825.77
2958.95
204.23
457.38
242.52
671.58
900.00
–
200.00
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
b) Unhedged foreign currency exposures as at March 31, 2016 are as under:
Unhedged Foreign Currency Exposures
crore
As at
31-3-2016
As at
31-3-2015
i) Receivables including firm commitments and highly probable forecasted transactions
39082.98
27042.70
ii) Payables including firm commitments and highly probable forecasted transactions
32145.54
26158.82
Note: As per the Royal Monetary Authority of Bhutan, Bhutan’s national currency is pegged to the Indian rupee at parity.
Accordingly, the unhedged foreign currency exposures reported above excludes exposures [(Receivables amounting to
2385.28 crore (previous year: 1646.07 crore) and payables amounting to 1801.09 crore (previous year: 1142.08 crore)]
with respect to currencies such as Bhutan Ngultrum (BTN).
Q(17) Auditors’ remuneration (excluding service tax):
Particulars
a. For Audit fees
b. For Taxation matters
c.
For Company law matters
d. For Other services:
(i) Limited review of standalone and consolidated financial statements on a quarterly basis
(ii) Other services including certification work
e. For reimbursement of expenses
crore
2015-16 2014-15
1.70
0.48
0.25
1.30
0.51
0.14
1.25
0.30
–
1.25
0.88 *
0.20
* Note: The above figures include fees paid for FCCB issue amounting to Nil (previous year: 0.08 crore) charged to securities
premium account during the year.
Q(18) Value of imports (on C.I.F. basis):
Particulars
Particulars
Raw materials
Construction material
Components and spare parts
Capital goods
Q(19) Expenditure in foreign currency:
On overseas contracts
Royalty and technical know-how fees
Interest
Professional/consultation fees
Other matters
crore
2015-16
2014-15
473.56
1262.50
1178.96
120.88
2015-16
7562.21
32.90
104.75
127.52
385.10
643.38
769.47
1074.52
219.69
crore
2014-15
6224.63
5.67
126.97
170.32
408.68
295
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(20) Dividends remitted in foreign currency:
Dividend for the year ended March 31, 2015 to:
Particulars
i.
11 non-resident shareholders on 20,826 shares held by them (previous year: 11 non-
residents on 20,826 shares) on September 2, 2015
ii.
Custodian of global depositary receipts on 2,19,62,105 shares (previous year: 2,10,12,316
shares) on September 2, 2015
Q(21) Earnings in foreign exchange:
Particulars
crore
2015-16
2014-15
0.03
0.03
35.69
29.94
crore
2015-16 2014-15
Export of goods [including 846.77 crore on FOB basis (previous year: 672.93 crore)]
878.06
687.45
Construction and project related activities
Export of services
Commission
Interest received
Other receipts
* 9652
9693.94 8431.36
129.33
128.71
8.61
0.87
5.69
0.00 *
378.22
187.51
Q(22) The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED
Act] as at March 31, 2016. The disclosure pursuant to the said Act is as under:
Principal amount due to suppliers under MSMED Act
Particulars
crore
2015-16
2014-15
121.14
106.94
Interest accrued, due to suppliers under MSMED Act on the above amount and unpaid
2.90
4.17
Payment made to suppliers (other than interest) beyond the appointed day during the year
264.03
193.61
Interest paid to suppliers under MSMED Act (other than Section 16)
Interest paid to suppliers under MSMED Act (Section 16)
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
–
0.01
7.83
13.16
1.20
–
0.45
2.52
4.03
–
Q(23) There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2016.
296
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(24) Details of sales, raw materials and components consumed, manufacturing work-in-progress and purchase of stock-in-trade:
a)
Sales:
(i) Manufacturing and trading activity:
Class of goods
Switchgear, all types
Earthmoving and agriculture machinery and spares
Industrial machinery
Electricity meters
Rubber processing machinery and accessories
Chemical plant & machinery, including pharmaceutical, dyestuff, distillery, brewery, solvent
extraction plants, evaporator and crystallizer plants and pollution control equipment in
aggregate
Industrial electronic control panels
Steel structural fabrication
Plant & equipment and modules for nuclear power projects, heavy water projects, nuclear
and space research and allied projects, including items for chemical, oil & gas, etc.
industries
Defence equipment, all types
Parts and accessories for prime movers, boilers, steam generating plants and nuclear
reactors
Transmission line tower
Design, development and manufacturing of airborne assemblies, system and equipment for
aircrafts, helicopters & unmanned aerial vehicles and equipment for the aviation sector
Ship auxiliaries and components of mechanised sailing vessels
Nuclear purpose equipment, de-aerators, ultra high pressure vessels including multiwall
vessels, high pressure heat exchangers and high pressure heaters in aggregate
Power plant & machinery components
Others
Total
(ii) Property development activity
(iii) Construction and project related activity:
Civil/infrastructure/mechanical/electrical construction
Thermal/hydro/gas based power plants
Plant & equipment and modules for nuclear power projects, heavy water projects, nuclear
and space research and allied projects, including items for chemical, oil & gas, etc.
industries
Chemical plant & machinery, including pharmaceutical, dyestuff, distillery, brewery, solvent
extraction plants, evaporator and crystallizer plants and pollution control equipment in
aggregate
Defence equipment, all types
Nuclear purpose equipment, de-aerators, ultra high pressure vessels including multiwall
vessels, high pressure heat exchangers and high pressure heaters in aggregate
Design, development and manufacturing of airborne assemblies, system and equipment for
aircrafts, helicopters & unmanned aerial vehicles and equipment for the aviation sector
Parts and accessories for prime movers, boilers, steam generating plants and nuclear
reactors
Ship auxiliaries and components of mechanised sailing vessels
Commercial ships
Others
Total
(iv) Servicing
(v) Commission
(vi) Engineering and service fees
Total sales & service (i) to (vi)-[Note K]
2015-16
crore
2434.48
876.22
323.51
427.99
310.85
27.17
66.78
80.48
12.94
7.79
134.68
180.68
1.81
14.05
1.01
88.81
1005.82
5995.07
843.64
2014-15
crore
2446.26
807.55
353.08
416.28
193.96
35.92
77.20
33.55
21.65
110.92
107.63
73.86
–
–
1.94
–
1063.71
5743.51
946.94
42754.40
6211.82
41930.17
4264.89
1018.48
1212.37
281.53
645.18
25.68
1.13
–
33.73
113.82
936.97
559.82
517.37
117.89
–
6.78
–
–
871.09
52022.74
49480.38
473.64
137.30
44.74
507.93
108.78
3.59
59517.13
56791.13
297
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
b) Raw materials and components consumed:
i)
Class of goods:
Class of goods
Power plant & machinery components
Chemical plant components
Nuclear equipment components, including items for oil & gas etc., industries, in aggregate
Steel
Switchgear components
Electronic devices, test & measuring instruments and industrial electronic control
panel components
Non-ferrous metals
Metering & protection systems and medical equipment and components
Industrial machinery components
Others
Sub-total
Less: Sale value of scrap
Total [Note M]
ii) Classification of goods:
2015-16
crore
4033.91
102.37
12.46
831.09
687.10
40.89
175.49
384.24
35.01
1151.28
7453.84
57.49
7396.35
2014-15
crore
2196.20
147.04
19.70
891.25
708.52
33.60
195.73
386.41
64.07
958.88
5601.40
104.61
5496.79
Classification of goods
Imported (including through canalising agencies)
Indigenous
Total
2015-16
2014-15
% to total
consumption
19
81
100
crore
1422.32
5974.03
7396.35
% to total
consumption
25
75
100
crore
1390.20
4106.58
5496.79
c)
Purchases of stock-in-trade:
Class of goods
2015-16
2014-15
Electronic, medical & other instruments, accessories and spares
Earthmoving & agricultural machinery and spares
Industrial machinery
Others
Sub-total
Less: Value of stock-in-trade transferred on sale of business
Total [Note M]
d)
Stores and spare parts consumed:
Classification of goods
Imported (including through canalising agencies)
Indigenous
Total
298
crore
733.27
355.49
16.12
40.79
1145.67
16.49
1129.18
crore
828.61
354.20
11.22
102.72
1296.75
–
1296.75
2015-16
2014-15
% to total
consumption
16
84
crore
189.12
987.01
% to total
consumption
18
82
crore
258.17
1189.99
100
1176.13
100
1448.16
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
e) Details of manufacturing work-in-progress:
Class of goods
2015-16
2014-15
Industrial machinery
Defence equipment, all types
Steel structural fabrication
Switchgear, all types
Transmission line tower
Chemical plant & machinery, including pharmaceutical, dyestuff, distillery, brewery, solvent
extraction plants, evaporator and crystallizer plants and pollution control equipment in
aggregate
Low voltage and medium voltage switchboards and panels
Plant & equipment and modules for nuclear power projects, heavy water projects, nuclear
and space research and allied projects, including items for chemical, oil & gas, etc.
industries
Casting products
Rubber processing machinery and accessories
Nuclear purpose equipment, de-aerators, ultra high pressure vessels including multiwall
vessels, high pressure heat exchangers and high pressure heaters in aggregate
Ship auxiliaries and components of mechanised sailing vessels
Servicing of construction machinery
AC drives, DC drives, programmable logic controllers
Meters and protection systems
Others
crore
58.43
6.95
51.31
41.44
57.25
0.82
65.69
–
29.76
11.20
–
6.44
13.17
2.96
0.63
26.13
crore
43.52
42.96
34.25
46.87
73.88
6.50
100.41
16.62
20.51
21.48
7.46
111.41
12.28
2.79
0.47
41.37
Total [Note H(II)]
372.18
582.78
Q(25) Contribution to political parties include:
Contribution to political parties aggregating to Nil (Previous year: 11.00 crore made during the year as follows: Indian National
Congress: 5.00 crore, Bharatiya Janata Party: 5.00 crore and Shiv Sena: 1.00 crore).
Q(26) a) Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year:
101.46 crore.
b)
The amount recognised as expense in the Statement of Profit and Loss on CSR related activities is 119.89 crore, which
comprises of:
Particulars
Sr.
no.
Disclosed
under
2015-16
2014-15
In Cash Yet to be
paid in
cash
Total
In Cash Yet to be
paid in
cash
crore
Total
i)
ii)
Construction/acquisition of assets
charged to the Statement of
Profit and Loss
For purposes other than (i) above
Total
Note O
5.53
0.33
5.86
10.71
2.43
13.14
Note O
Note N
95.71
14.09
115.33
4.01
0.22
4.56
99.72
14.31
40.68
15.76
119.89
67.15
6.96
–
9.39
47.64
15.76
76.54
299
Notes forming part of the Accounts (contd.)
NOTE [Q] (contd.)
Q(27) During the year, the Company transferred at book value the equity investments held by it:
a)
to facilitate the merger with wholly owned subsidiary company viz. L&T Capital Company Limited:
Sr.
no.
1
2
3
Name of the company
L&T Natural Resources Limited
L&T Powergen Limited
L&T Solar Limited
Details of investments
No. of shares
Face value per share
( )
Book value
( crore)
50,000
50,000
50,000
10
10
10
0.05
0.05
0.05
b)
to a wholly owned subsidiary company viz. L&T Hydrocarbon Engineering Limited:
Name of the company
Details of investments
No. of shares
Face value per share
( )
L&T Sapura Offshore Private Limited
6,000
10
Sr.
no.
1
Book value
( crore)
0.01
c)
to a subsidiary company viz. L&T Infrastructure Development Projects Limited:
Details of investments
Sr.
no.
1
Name of the company
PNG Tollway Limited
No. of shares
Face value per share
( )
2,15,43,340
10
Book value
( crore)
21.54
Q(28) Figures for the previous year have been regrouped/reclassified wherever necessary.
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES
1. Basis of accounting
The Company maintains its accounts on accrual basis following the historical cost convention, except for the revaluation of certain
fixed assets, in accordance with generally accepted accounting principles [“GAAP”] in compliance with the provisions of the
Companies Act, 2013 and the Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006 read with
Rule 7(1) of the Companies (Accounts) Rules, 2014 issued by the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI)
are also considered, wherever applicable except to the extent where compliance with other statutory promulgations override the
same requiring a different treatment.
The preparation of financial statements in conformity with GAAP 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. Examples of such estimates
include the useful lives of tangible and intangible fixed assets, allowance for doubtful debts/advances, future obligations in respect
of retirement benefit plans, etc. difference, if any, between the actual results and estimates is recognised in the period in which
the results are known.
2. Presentation of financial statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III
to the Companies Act, 2013 (“the Act”). The Cash Flow Statement has been prepared and presented as per the requirements of
Accounting Standard (AS) 3 “Cash Flow Statements”. The disclosure requirements 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 accounts
along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
300
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
Amounts in the financial statements are presented in Indian Rupees in crore [1 crore = 10 million] rounded off to two decimal
places in line with the requirements of Schedule III. Per share data are presented in Indian Rupees to two decimals places.
3. Revenue recognition
Revenue is recognised based on nature of activity when consideration can be reasonably measured and there exists reasonable
certainty of its recovery.
A. Revenue from operations
a.
Sales & Service
i.
ii.
Sales and service include excise duty and adjustments made towards liquidated damages and price variation,
wherever applicable. Escalation and other claims, which are not ascertainable/acknowledged by customers, are not
taken into account.
Revenue from sale of manufactured and traded goods is recognised when the substantial risks and rewards of
ownership are transferred to the buyer under the terms of the contract.
iii. Revenue from property development activity which are in substance similar to delivery of goods is recognised when
all significant risks and rewards of ownership in the land and/or building are transferred to the customer and a
reasonable expectation of collection of the sale consideration from the customer exists.
Revenue from those property development activities which have the same economic substance as that of a
construction contract is recognised based on the ‘Percentage of completion method’ (POC) when the outcome of a
real estate project can be estimated reliably upon fulfillment of all the following conditions:
a. All critical approvals necessary for commencement of the project have been obtained;
b. When the stage of completion of the project reaches a reasonable level of development i.e., contract costs
for work performed bears a reasonable proportion to the estimated total contract costs. For this purpose,
a reasonable level of development is treated as achieved only if the cost incurred (excluding cost of land/
developmental rights and borrowing cost) is atleast 25% of the total of such cost;
c. Atleast 25% of the saleable project area is secured by contracts or agreements with buyers;
d. Atleast 10% of the total revenue as per the agreements of sale or any other legally enforceable documents are
realised at the reporting date in respect of each of the contracts and it is reasonable to expect that the parties
to such contracts will comply with the payment terms as defined in the contracts.
The costs incurred on property development activities are carried as “Inventories” till such time the outcome of the
project cannot be estimated reliably and all the aforesaid conditions are fulfilled. When the outcome of the project
can be ascertained reliably and all the aforesaid conditions are fulfilled, revenue from property development activity
is recognised at cost incurred plus proportionate margin, using percentage of completion method. Percentage of
completion is determined based on the proportion of actual cost incurred to the total estimated cost of the project.
For this purpose, actual cost includes cost of land and developmental rights but excludes borrowing cost.
Expected loss, if any, on the project is recognised as an expense in the period in which it is foreseen, irrespective of
the stage of completion of the contract.
iv. Revenue from construction/project related activity and contracts for supply/commissioning of complex plant &
equipment is recognised as follows:
a. Cost plus contracts: Contract revenue is determined by adding the aggregate cost plus proportionate margin
as agreed with the customer.
b.
Fixed price contracts: Contract revenue is recognised only to the extent of cost incurred till such time the
outcome of the job cannot be ascertained reliably. When the outcome of the contract is ascertained reliably,
contract revenue is recognised at 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.
301
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
Government grants in the nature of subsidy related to customer contracts are recognised as revenue from
operations in the Statement of Profit and Loss, on a prudent basis, in proportion to work completed when
there is reasonable assurance that the conditions for the grant of subsidy will be fulfilled.
Expected loss, if any, on the construction/project related activity is recognised as an expense in the period in
which it is foreseen, irrespective of the stage of completion of the contract. While determining the amount of
foreseeable loss, all elements of costs and related incidental income not included in contract revenue are taken
into consideration.
v.
Revenue from contracts for the rendering of engineering design services and other services which are directly
related to the construction of an asset is recognised on similar basis as stated in (iv) supra.
vi. Revenues from construction/project related activity and contracts executed in joint ventures under work-sharing
arrangement [being jointly controlled operations, in terms of Accounting Standard (AS) 27 “Financial Reporting of
Interests in Joint Ventures”], is recognised on the same basis as similar contracts independently executed by the
Company.
vii. Revenue from service related activities is recognised using the proportionate completion method.
viii. Commission income is recognised as and when the terms of the contract are fulfilled.
ix. Revenue from engineering and service fees is recognised as per the terms of the contract.
x.
Profit/loss on contracts executed by Integrated Joint Ventures under profit-sharing arrangement [being Jointly
Controlled Entities, in terms of Accounting Standard (AS) 27 “Financial Reporting of Interests in Joint Ventures”] is
accounted as and when the same is determined by the joint venture. Revenue from services rendered to such joint
ventures is accounted on accrual basis.
b. Other operational revenue
Other operational revenue represents income earned from the activities incidental to the business and is recognised
when the right to receive the income is established as per the terms of the contract.
B. Other Income
a.
Interest income is accrued at applicable interest rate.
b. Dividend income is accounted in the period in which the right to receive the same is established.
c. Other Government grants, which are revenue in nature and are towards compensation for the related costs, are
recognised as income in the Statement of Profit and Loss in the period in which the matching costs are incurred.
d. Other items of income are accounted as and when the right to receive arises.
4. Extraordinary and exceptional Items
Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any
external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item
and disclosed as such.
On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the
Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is
classified as an exceptional item and accordingly disclosed in the notes to accounts.
5. Research and development
a.
Revenue expenditure on research is expensed under respective heads of account in the period in which it is incurred.
b. Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:
i.
The technical feasibility of completing the intangible asset so that it will be available for use or sale
302
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
ii.
The Company has intention to complete the intangible asset and use or sell it
iii. The Company has ability to use or sell the intangible asset
iv.
v.
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
vi. The Company has ability to measure the expenditure attributable to the intangible asset during its development reliably.
The development expenditure capitalised as intangible asset is amortised over its useful life.
Other development costs that do not meet above criteria are expensed in the period in which they are incurred.
6. Employee benefits
a.
Short term employee benefits:
All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee
benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia
are recognised in the period in which the employee renders the related service.
b.
Post-employment benefits:
i.
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 related service.
ii. Defined benefit plans: The employees’ gratuity fund schemes, post-retirement medical care scheme, pension scheme and
provident fund scheme managed by trust are the Company’s defined benefit plans. The present value of the obligation
under such defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method.
The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining
the present value of the obligation under defined benefit plans, is based on the market yield on government securities of a
maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.
Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.
The interest element in the actuarial valuation of defined benefit plans, which comprises the implicit interest cost and the
impact of changes in discount rate, is classified under finance cost. The balance charge is recognised as employee benefit
expenses in the Statement of Profit and Loss.
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.
Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or
settlement occurs. Past service cost is recognised as expense on a straight-line basis over the average period until the benefits
become vested.
c.
Long term employee benefits:
The obligation for long term employee benefits such as long term compensated absences, long service award etc. is
recognised in the similar manner as in the case of defined benefit plans as mentioned in (b)(ii) supra.
d.
Termination benefits:
Termination benefits such as compensation under Voluntary Retirement cum Pension Scheme are recognised as expense in the
period in which they are incurred.
303
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
7. Tangible fixed assets
Tangible fixed assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and cumulative
impairment and those which were revalued as on October 1,1984 are stated at the values determined by the valuers less
accumulated depreciation and cumulative impairment. Assets acquired on hire purchase basis are stated at their cash values.
Specific know-how fees paid, if any, relating to plant & equipment is treated as part of cost thereof.
Administrative and other general overhead expenses that are specifically attributable to construction or acquisition of fixed assets
or bringing the fixed assets to working condition are allocated and capitalised as a part of the cost of the fixed assets.
Own manufactured assets are capitalised at cost including an appropriate share of overheads.
Tangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”. (Also
refer to policy on leases, borrowing costs, impairment of assets and foreign currency transactions infra.)
8.
Leases
The determination of whether an agreement is, or contains, a lease is based on the substance of the agreement at the date of
inception.
a.
Lease transactions entered into prior to April 1, 2001:
Assets leased out are stated at original cost. Lease equalisation adjustment is the difference between capital recovery included
in the lease rentals and depreciation provided in the books.
Lease rentals in respect of assets acquired under leases are charged to Statement of Profit and Loss.
b.
Lease transactions entered into on or after April 1, 2001:
Finance leases:
i.
Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified
as finance leases. Such assets are capitalised at the inception of the lease at the lower of the fair value or the present
value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated
between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability
for each period.
ii. Assets given under a finance lease are recognised as a receivable at an amount equal to the net investment in the lease.
Lease income is recognised over the period of the lease so as to yield a constant rate of return on the net investment in
the lease.
iii.
Initial direct costs relating to assets given on finance leases are charged to Statement of Profit and Loss.
Operating leases:
i.
Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Lease rentals are charged to the Statement of Profit and Loss on accrual basis.
ii. Assets leased out under operating leases are capitalised. Rental income is recognised on accrual basis over the lease
term.
(Also refer to policy on depreciation, infra)
9. Depreciation
a. Owned assets:
i.
Revalued assets:
Depreciation on assets carried at revalued amount i.e., values determined by valuers is provided on straight line method
on the basis of useful life as specified in Schedule II to the Companies Act, 2013 except in respect of certain assets
where the useful life was determined by technical evaluation.
With effect from April 1, 2015 the difference between depreciation provided on revalued amount and on historical cost
is transferred from revaluation reserve to general reserve.
304
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
ii. Assets carried at historical cost:
Depreciation on assets carried at historical costs is provided on straight line method on the basis of useful life as
specified in Schedule II to the Companies Act, 2013 except in respect of certain assets where the useful life was
determined by technical evaluation. The carrying amount of the assets as on April 1, 2014 is depreciated over the
remaining useful life. Where the useful life of the asset has expired, the carrying amount as on April 1, 2014 has been
charged to the retained earnings as on April 1, 2014.
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. In respect of asset components, whose useful life has
expired as on April 1, 2015, the carrying amount as on April 1, 2015 has been charged to the retained earnings as on
April 1, 2015.
iii. Depreciation for additions to/deductions from, owned assets is calculated pro rata. Extra shift depreciation is provided on
a location basis.
iv. 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.
b.
Leased assets:
i.
Lease transactions entered into prior to April 1, 2001:
Lease charge comprising statutory depreciation and lease equalisation charge is provided for assets given on lease
over the primary period of the lease equal to recovery of net investment in the lease. Accordingly, while the statutory
depreciation on such assets is provided for on straight line method as per Schedule II to the Companies Act, 2013, the
difference is adjusted through lease equalisation and lease adjustment account.
ii.
Lease transactions entered into on or after April 1, 2001:
Assets acquired under finance leases are depreciated on a straight line basis over the lease term. Where there is
reasonable certainty that the Company shall obtain ownership of the assets at the end of the lease term, such assets are
depreciated based on the useful life prescribed under Schedule II to the Companies Act, 2013 or based on the useful life
adopted by the Company for similar assets.
iii.
Leasehold land
Land acquired under long term lease is classified under “tangible assets” and is depreciated over the period of lease.
10. Intangible assets and amortisation
Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative
impairment. 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 amortised over their useful
life as follows:
a.
Specialised software: over a period of six years.
b.
Technical know-how: over a period of six years in case of foreign technology and three years in the case of indigenous
technology.
c. Development costs for new products: over a period of five years.
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.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “intangible assets under
development”. Amortisation on impaired assets is provided by adjusting the amortisation charges in the remaining periods so as to
allocate the asset’s revised carrying amount over its remaining useful life.
305
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
11. Impairment of assets
As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:
a.
the provision for impairment loss, if any; and
b.
the reversal of impairment loss recognised in previous periods, if any.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is
determined:
a.
in the case of an individual asset, at the higher of the net selling price and the value in use;
b.
in the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of
the cash generating unit’s net selling price and the value in use.
(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its
disposal at the end of its useful life).
12. Investment
Trade investments comprise investments in subsidiary companies, joint ventures, associate companies and in the entities in which
the Company has strategic business interest.
Investments, which are readily realisable and are intended to be held for not more than one year from the date of acquisition, are
classified as current investments. All other investments are classified as long term investments.
Long term investments including trade investments are carried at cost, after providing for any diminution in value, if such
diminution is other than temporary in nature. Investments in integrated joint ventures are carried at cost net of adjustments for
Company’s share in profits or losses as recognised.
Current investments are carried at lower of cost and fair value. The determination of carrying amount of such investments is done
on the basis of weighted average cost of each individual investment.
Purchase and sale of investments are recognised based on the trade date accounting.
13. Inventories
Inventories are valued after providing for obsolescence, as under:
a.
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.
b. 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.
c.
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 related overheads and excise duty paid/ payable on such goods.
d. Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically
identifiable cost or net realisable value.
14. Cash and bank balances
Cash and bank balances also 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 not free from more than insignificant risk
of change in value, are not included as part of cash and cash equivalents.
15. Securities premium account
a.
Securities premium includes:
i.
The difference between the market value and the consideration received in respect of shares issued pursuant to Stock
Appreciation Rights Scheme
306
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
ii.
The discount allowed, if any, in respect of shares allotted pursuant to Stock Options Scheme
b.
The following expenses are written off against securities premium account:
i.
Expenses incurred on issue of shares
ii.
Expenses (net of tax) incurred on issue of debentures/bonds
iii. Premium (net of tax) on redemption of debentures/bonds
16. Borrowing Costs
Borrowing costs include interest, commitment charges, amortisation of ancillary costs, amortisation of discounts/premium related
to borrowings, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign
currency borrowings, to the extent they are regarded as an adjustment to interest costs.
Borrowing costs 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 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
as an expense in the period in which they are incurred.
17. Employee stock ownership schemes
In respect of stock options granted pursuant to the Company’s Stock Options Scheme, the intrinsic value of the options (excess of
market price of the share over the exercise price of the option) is treated as discount and accounted as employee compensation
cost over the vesting period. The amount recognised as expense 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.
18. Foreign currency transactions, foreign operations, forward contracts and derivatives
a.
b.
The reporting currency of the Company is Indian rupee.
Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date
of the transaction. At each Balance Sheet date, foreign currency monetary items are reported using the closing rate.
Non-monetary items, carried at historical cost denominated in a foreign currency, are reported using the exchange rate at the
date of the transaction.
Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet
date at the closing rate are:
i.
ii.
adjusted in the cost of fixed assets specifically financed by the borrowings contracted up to March 31, 2004 to which
the exchange differences relate
adjusted in the cost of fixed assets specifically financed by borrowings contracted between the period April 1, 2004 to
March 31, 2007 and to which the exchange differences relate, provided the assets are acquired from outside India
iii.
recognised as income or expense in the period in which they arise, in cases other than (i) and (ii) supra.
c.
Financial statements of foreign operations comprising jobs contracted prior to April 1, 2004, are translated as follows:
i.
ii.
Closing inventories at rates prevailing at the end of the year.
Fixed assets as at April 1, 1991 at rates prevailing at the end of the year in which the additions were made. Subsequent
additions are at rates prevailing on the dates of the additions. Depreciation is accounted at the same rate at which the
assets are translated.
iii. Other assets and liabilities at rates prevailing at the end of the year.
iv. Net revenues at the average rate for the year.
d.
Financial statements of foreign operations comprising jobs contracted on or after April 1, 2004, are treated as integral
operations and translated as in the same manner as foreign currency transactions, as described above. Exchange differences
arising on such translation are recognised as income or expense of the period in which they arise.
307
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
e.
Forward contracts, other than those entered into to hedge foreign currency risk on unexecuted firm commitments or highly
probable forecast transactions, are treated as foreign currency transactions and accounted accordingly as per Accounting
Standard (AS) 11 “The Effects of Changes in Foreign Exchange Rates”. Exchange differences arising on such contracts are
recognised in the period in which they arise.
Gains and losses arising on account of roll over/cancellation of such forward contracts are recognised as income /expense of
the period in which such roll over/cancellation takes place.
f. All the other derivative contracts, including forward contracts entered into to hedge foreign currency risks on unexecuted
firm commitments and highly probable forecast transactions, are recognised in the financial statements at fair value as on
the Balance Sheet date, in pursuance of the announcement of the Institute of Chartered Accountants of India (ICAI) dated
March 29, 2008 on accounting of derivatives. In addition, the derivative arrangements embedded in the contracts entered in
the course of business are accounted separately if the economic characteristics and risks of the embedded derivatives are not
closely related to economic characteristics and risks of the host contract.
The Company has adopted Accounting Standard (AS) 30 “Financial Instruments: Recognition and Measurement” for
accounting of such derivative contracts, not covered under Accounting Standard (AS) 11 “The Effects of Changes in Foreign
Exchange Rates”, as mandated by the ICAI in the aforesaid announcement.
Accordingly, the resultant gains or losses on fair valuation/settlement of the derivative contracts (including embedded
derivatives) covered under Accounting Standard (AS) 30 “Financial Instruments: Recognition and Measurement” are
recognised in the Statement of Profit and Loss or Balance Sheet as the case may be after applying the test of hedge
effectiveness. Where the hedge in respect of off-balance sheet items is effective, the gains or losses are recognised in the
“hedging reserve” which forms part of “reserves and surplus” in the Balance Sheet. The amount recognised in the “hedging
reserve” is transferred to the Statement of Profit and Loss in the period in which the underlying hedged item affects the
Statement of Profit and Loss. Gains or losses in respect of ineffective hedges are recognised in the Statement of Profit and
Loss in the period in which such gains or losses are incurred.
g.
The premium paid/received on a foreign currency forward contract is accounted as expense/income over the life of the
contract.
19. Segment accounting
a.
Segment accounting policies
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:
i.
ii.
iii.
iv.
v.
Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment
including inter segment revenue.
Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result.
Expenses which relate to the Company as a whole and not allocable to segments are included under “unallocable
corporate expenditure“.
Income which relates to the Company as a whole and not allocable to segments is included in “unallocable corporate
income”.
Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of
the Company.
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 and not allocable to any
segment.
vi. Segment non-cash expenses forming part of segment expenses includes the intrinsic value of the employee stock options
which is accounted as employee compensation cost [see Note R(17)] and is allocated to the segment.
b.
Inter-segment transfer pricing
Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed
between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated basis.
308
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
20. Taxes on Income
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 based on the expected outcome of assessments/appeals.
Deferred tax is recognised on timing differences between the income accounted in financial statements and the taxable income for
the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and
carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realised.
Other deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realised.
21. Accounting for interests in Joint Ventures
Interests in joint ventures are accounted as follows:
Type of joint venture
Accounting treatment
Jointly controlled operations
Company’s share of revenues, common expenses, assets and liabilities are included in revenues,
expenses, assets and liabilities respectively.
Jointly controlled assets
Share of the assets, according to nature of the assets, and share of the liabilities are shown as
part of gross block and liabilities respectively. Share of expenses incurred on maintenance of the
assets is accounted as expense.
Monetary benefits, if any, from use of the assets are reflected as income.
Jointly controlled entities
a.
Integrated joint ventures:
i.
ii.
Company’s share in profits or losses of integrated joint ventures is accounted on
determination of the profits or losses by the joint ventures.
Investments in integrated joint ventures are carried at cost net of Company’s share in
recognised profits or losses.
b.
Incorporated jointly controlled entities:
i.
ii.
Income on investments in incorporated jointly controlled entities is recognised when
the right to receive the same is established.
Investment in such joint ventures is carried at cost after providing for any diminution in
value which is other than temporary in nature.
Joint venture interests accounted as above, other than investments in incorporated jointly controlled entities, are included in the
segments to which they relate.
22. Provisions, contingent liabilities and contingent assets
Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if
a.
b.
c.
the Company has a present obligation as a result of a past event
a probable outflow of resources is expected to settle the obligation and
the amount of the obligation can be reliably estimated.
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
a.
b.
c.
a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle
the obligation
a present obligation arising from past events, when no reliable estimate is possible
a possible obligation arising from past events where the probability of outflow of resources is not remote. Contingent assets
are neither recognised, nor disclosed.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
309
Notes forming part of the Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
23. Commitments
Commitments are future liabilities for contractual expenditure. Commitments are classified and disclosed as follows:
a.
Estimated amount of contracts remaining to be executed on capital account and not provided for,
b. Uncalled liability on shares and other investments partly paid,
c.
Funding related commitment to subsidiary, associate and joint venture companies and,
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.
24. Operating cycle for current and non-current classification
Operating cycle for the business activities of the Company covers the duration of the specific project/contract/product line/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.
25. Cash Flow Statement
Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:
i.
ii.
transactions of a non-cash nature,
any deferrals or accruals of past or future operating cash receipts or payments and,
iii.
items of income or expense associated with investing or financing cash flows.
Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash
equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a
specific disclosure.
310
NOTES
311
Consolidated Financial Statements 2015-16
DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Indiabulls Finance Centre, Tower 3
27th – 32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
Mumbai 400013.
SHARP & TANNAN
Chartered Accountants
Ravindra Annexe
194, Churchgate Reclamation
Dinshaw Vachha Road
Mumbai 400 020.
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF LARSEN & TOUBRO LIMITED
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of LARSEN & TOUBRO LIMITED (hereinafter referred to as the
“Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as the “Group”), its associates
and jointly controlled entities, comprising of the Consolidated Balance Sheet as at 31st March, 2016, the Consolidated Statement of
Profit and Loss, the Consolidated Cash Flow Statement for the year then ended, and a summary of the significant accounting policies
and other explanatory information (hereinafter referred to as the “consolidated financial statements”).
Management’s Responsibility for the Consolidated Financial Statements
The Holding Company’s Board of Directors is responsible for the preparation of these consolidated financial statements in terms of
the requirements of the Companies Act, 2013 (hereinafter referred to as the “Act”) that give a true and fair view of the consolidated
financial position, consolidated financial performance and consolidated cash flows of the Group including its associates and jointly
controlled entities in accordance with the accounting principles generally accepted in India, including the Accounting Standards
prescribed under Section 133 of the Act, as applicable. The respective Boards of Directors of the companies included in the Group and
of its associates and jointly controlled entities are responsible for maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; the
selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and
the 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 Holding Company, as aforesaid.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. While conducting the audit,
we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement
of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
financial control relevant to the Holding Company’s preparation of the consolidated financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s Board of Directors, as
well as evaluating the overall presentation of the consolidated financial statements.
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 sub-paragraph (a) of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit
opinion on the consolidated financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial
statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the
312
accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associates and jointly controlled
entities as at 31st March, 2016, and their consolidated profit and their consolidated cash flows for the year ended on that date.
Other Matters
(a) The consolidated financial statements include the financial statements of 66 subsidiaries, and 9 jointly controlled entities,
whose financial statements reflect total assets of 39,471.90 crore as at 31st March, 2016, total revenues of 14,391.76
crore and net cash flows amounting to 746.23 crore for the year ended on that date which have not been audited by us. The
consolidated financial statements also include the Group’s share of net profit of 7.93 crore for the year ended 31st March,
2016, as considered in the consolidated financial statements, in respect of 7 associates, whose financial statements have not
been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by
the 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, jointly controlled entities and associates, is based solely on the reports of the other
auditors.
(b) The consolidated financial statements include the financial statements / financial information of 5 subsidiaries and 8 jointly
controlled entities, whose financial statements / financial information reflect total assets of 766.86 crore as at 31st March, 2016,
total revenues of 437.92 crore and net cash flows amounting to 148.54 crore for the year ended on that date which have
not been audited by us. The consolidated financial statements also include the Group’s share of net loss of 0.27 crore for the
year ended 31st March, 2016, as considered in the consolidated financial statements, in respect of 4 associates, whose financial
statements / financial information have not been audited by us. These financial statements / financial information are unaudited
and have been furnished to us by the 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, jointly controlled entities and associates, is based solely
on such unaudited financial statements / financial information. In our opinion and according to the information and explanations
given to us by the Management, these financial statements / financial information are not material to the Group.
Our opinion on the consolidated financial statements, 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 statements / financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, 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 of the aforesaid consolidated financial statements.
b)
c)
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, and the Consolidated Cash Flow Statement
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.
d)
In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards prescribed under
Section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors of the Holding Company as on 31st March, 2016,
taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary
companies, associate companies and jointly controlled entities incorporated in India, none of the directors of the Group
companies, its associate companies and jointly controlled entities incorporated in India is disqualified as on 31st March, 2016,
from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such
controls, refer to our Report in “Annexure A”, which is based on the auditors’ reports of the Holding Company, subsidiary
companies, associate companies and jointly controlled entities incorporated in India. Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Holding Company’s, subsidiary companies’, associate companies’,
jointly controlled entities’ incorporated in India, internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit
and Auditor’s) Rules, 2014, 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 jointly controlled entities - refer notes I, Q(15)(VI), Q(16) and Q(21) to the consolidated
financial statements;
313
ii.
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 - refer notes C(II),
D(IV), Q(7)(a) to the consolidated financial statements; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Holding Company and its subsidiary companies, associate companies and jointly controlled entities
incorporated in India.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 25, 2016
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph “f” under ‘Report on Other Legal and Regulatory Requirements’ 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, 2016,
we have audited the internal financial controls over financial reporting of Larsen & Toubro Limited (hereinafter referred to as the
“Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates
and jointly controlled entities incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Holding Company, its subsidiaries, its associates and jointly controlled entities incorporated in
India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting
criteria established by the Group 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. 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 group’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.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting 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 Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under Section
143(10) of the Companies Act, 2013, 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 auditors’ 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 auditors of the subsidiaries,
associates and joint controlled entities, incorporated in India, in terms of their reports referred to in the Other Matters paragraph below,
314
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, the Holding Company, its subsidiaries,
its associates and jointly controlled entities 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, 2016, 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.
Other Matters
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 24 subsidiaries and 3 associates incorporated in India, is based on the corresponding
reports of the other 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 insofar as it relates to 1 subsidiary and 2 associates incorporated in India, whose financial statements / financial
information are unaudited and our opinion on the adequacy and operating effectiveness of the internal financial controls over financial
reporting of the Group is not affected as these financial statements / financial information are not material to the Group.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 25, 2016
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
315
Consolidated Balance Sheet as at March 31, 2016
As at 31-3-2016
As at 31-3-2015
Note
crore
crore
crore
crore
A
B
186.30
43805.43
C(I)
Q(20)
Q(13)
C(II)
C(III)
73753.71
10839.86
411.15
1615.98
788.32
D(I)
17007.98
Q(20)
D(II)
D(III)
D(IV)
D(V)
210.50
10544.91
166.33
29224.64
28510.79
3690.04
43991.73
6768.78
40909.07
4998.62
185.91
40723.16
65537.18
2931.58
539.56
1276.11
574.38
87409.02
70858.81
16729.39
127.23
8304.17
151.86
24497.78
23684.89
3543.81
89355.19
227524.72
77039.13
193805.63
17385.08
23724.84
6486.21
11003.72
18810.53
13712.53
4883.03
10109.75
58599.85
2171.67
1974.36
802.96
4517.99
53441.03
101.58
460.36
47515.84
2215.00
1646.80
724.20
3525.78
43932.02
99.31
369.41
8105.67
5361.95
35989.94
5901.59
9383.19
12368.41
28344.17
7965.32
6508.40
30089.37
5756.21
7679.22
11434.85
24343.90
105454.92
227524.72
93777.27
193805.63
E(I)
E(II)
E(I)
E(II)
E(III)
F
Q(13)
G(I)(a)
G(I)(b)
G(II)
G(III)
H(I)
H(II)
H(III)
H(IV)
H(V)
H(V)(a)
H(VI)
I
J
Q
R
A. M. NAIK
Group Executive Chairman (DIN 00001514)
R. SHANKAR RAMAN
Chief Financial Officer & Whole-time Director (DIN 00101004)
(DIN 00019798)
M.M.CHITALE
VIKRAM SINGH MEHTA
(DIN 00041197)
SUSHOBHAN SARKER
(DIN 00088276)
EQUITY AND LIABILITIES:
Shareholders’ funds
Share capital
Reserves and surplus
Minority interest
Non-current liabilities
Long term borrowings
Deferred payment liabilities for acquisition of fixed assets
Deferred tax liabilities (net)
Other long term liabilities
Long term provisions
Current liabilities
Short term borrowings
Current maturities of deferred payment liabilities for acquisition
of fixed assets
Current maturities of long term borrowings
Trade payables
Due to micro enterprises and small enterprises
Due to others
Other current liabilities
Short term provisions
TOTAL
ASSETS:
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Capital work-in-progress
Intangible assets under development
Current assets
Goodwill on consolidation
Non-current investments
Deferred tax assets (net)
Long term loans and advances
Long term loans and advances towards financing activities
Cash and cash equivalents
Other non-current assets
Current investments
Inventories
Trade receivables
Cash and cash equivalents
Short term loans and advances
Short term loans and advances towards financing activities
Other current assets
TOTAL
CONTINGENT LIABILITIES
COMMITMENTS (capital and others)
OTHER NOTES FORMING PART OF THE ACCOUNTS
SIGNIFICANT ACCOUNTING POLICIES
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm’s Registration No.117366W/W-100018
by the hand of
P. R. RAMESH
Partner
Membership No. 70928
For SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 038332
Mumbai, May 25, 2016
316
N.HARIHARAN
Company Secretary
M. No. A3471
SUNITA SHARMA
(DIN 02949529)
Directors
Consolidated Statement of Profit and Loss for the year ended March 31, 2016
Note
crore
crore
crore
crore
2015-16
2014-15
103522.23
890.54
92761.66
757.08
102631.69
1183.03
103814.72
92004.58
1074.74
93079.32
REVENUE:
Revenue from operations (gross)
Less: Excise duty
Revenue from operations (net)
Other income
Total revenue
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
and stock-in-trade
Other manufacturing, construction and operating expenses
Finance cost of financial services business and finance lease activity
Staff expenses for software development business
Employee benefits expense
Sales, administration and other expenses
Finance costs
Depreciation, amortisation, impairment and obsolescence
Less: Transfer from revaluation reserve
Less: Overheads charged to fixed assets
Total expenses
Profit before exceptional and extraordinary items and tax
Exceptional items
Profit before extraordinary items and tax
Extraordinary items
Profit before tax
Tax expense:
Current tax
Deferred tax (net)
K
L
M
N
O
P
Q(4)
10451.17
20091.51
1426.56
2501.80
17426.16
(712.68)
8026.38
4158.13
3871.42
2624.54
1.59
13546.91
20036.82
1333.44
1935.55
19565.57
862.98
8224.78
4828.91
4611.32
2755.99
–
74946.28
9204.84
6146.68
3041.22
2755.99
96095.01
8.84
96086.17
7728.55
358.10
8086.65
–
8086.65
Q(6)
Q(13)
2764.19
(215.71)
2661.91
(408.67)
Profit after tax
Less: Additional tax on dividend distributed/proposed by subsidiary companies
Add: Share in profit/(loss) (net) of associate companies
Add/(less): Minority interest in (income)/losses
Profit for the year attributable to the shareholders of the Company
Basic earnings per equity share before extraordinary items ( )
Diluted earnings per equity share before extraordinary items ( )
Basic earnings per equity share after extraordinary items ( )
Diluted earnings per equity share after extraordinary items ( )
Face value per equity share ( )
OTHER NOTES FORMING PART OF ACCOUNTS
SIGNIFICANT ACCOUNTING POLICIES
}
Q(12)
Q
R
2548.48
5538.17
0.18
5537.99
(2.51)
5535.48
(444.95)
5090.53
54.69
54.44
54.69
54.44
2.00
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm’s Registration No.117366W/W-100018
by the hand of
P. R. RAMESH
Partner
Membership No. 70928
For SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 038332
Mumbai, May 25, 2016
A. M. NAIK
Group Executive Chairman (DIN 00001514)
R. SHANKAR RAMAN
Chief Financial Officer & Whole-time Director (DIN 00101004)
(DIN 00019798)
M.M.CHITALE
VIKRAM SINGH MEHTA
(DIN 00041197)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary
M. No. A3471
SUNITA SHARMA
(DIN 02949529)
Directors
67240.45
8059.89
5471.40
2840.05
2622.95
86234.74
24.96
86209.78
6869.54
347.70
7217.24
–
7217.24
2253.24
4964.00
–
4964.00
2.14
4966.14
(201.32)
4764.82
51.33
50.98
51.33
50.98
2.00
317
Consolidated Cash Flow Statement for the year ended March 31, 2016
A. Cash flow from operating activities:
Profit before tax (excluding minority interest, exceptional and extraordinary items)
Adjustments for:
Dividend received
Depreciation (including obsolescence), amortisation and impairment
Exchange difference on items grouped under financing/investing activities
Effect of exchange rate changes on cash and cash equivalents
Interest expense
Interest income
(Profit)/loss on sale of fixed assets (net)
(Profit)/loss on sale of investments (net)
(Profit)/loss on sale of stake in subsidiary and joint venture companies of Developmental
Projects and Realty Segments
Employee stock option-discount forming part of staff expenses
Provision/(reversal) for diminution in value of investments
Operating profit before working capital changes
Adjustments for:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
Increase/(decrease) in trade payables and customer advances
Cash generated from operations before financing activities
(Increase)/decrease in loans and advances towards financing activities
Cash generated from operations
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
Purchase of long term investments
Sale of long term investments
(Purchase)/sale of current investments (net)
Loans/deposits made with associate companies and third parties (net)
Interest received
Dividend received from associates
Dividend received from other investments
Consideration received on transfer of Foundry Business Unit
Consideration received on disposal of subsidiaries (including advance received)
Consideration received on disposal of joint venture
Consideration paid on acquisition of subsidiaries
Cash & cash equivalents acquired pursuant to acquisition of subsidiaries
Cash & cash equivalents discharged pursuant to disposal of subsidiaries/joint ventures
Net cash (used in)/from investing activities (after extraordinary items)
318
2015-16
crore
2014-15
crore
7728.55
6869.54
(198.86)
2755.99
194.31
(20.07)
3041.22
(418.24)
(62.79)
(386.52)
(276.69)
51.69
77.92
12486.51
(11810.90)
117.58
9528.52
10321.71
(10232.34)
89.37
(3318.27)
(3228.90)
(5264.11)
205.89
(525.57)
333.28
68.05
(0.58)
422.06
5.63
198.86
79.70
410.30
–
(32.36)
–
(33.14)
(4131.99)
(79.56)
2622.95
51.92
39.06
2840.05
(404.74)
(19.58)
(444.23)
(1381.76)
68.47
35.39
10197.51
(9736.74)
(982.56)
9119.69
8597.90
(6984.04)
1613.86
(2979.24)
(1365.38)
(6252.46)
157.80
(830.03)
841.41
(976.96)
579.53
387.07
4.24
79.56
–
220.80
1120.51
(106.78)
8.76
(11.60)
(4778.15)
Consolidated Cash Flow Statement for the year ended March 31, 2016 (contd.)
C. Cash flow from financing activities:
Proceeds from issue of share capital
Proceeds from long term borrowings
Repayment of long term borrowings
Proceeds from other borrowings (net)
Payment (to)/from minority interest (net)- including sale proceeds on divestment of part stake in
subsidiary companies and issue of preference shares by subsidiary companies to external parties
Dividends paid
Additional tax on dividend
Interest paid (including cash flows on account of interest rate swaps)
Net cash (used in)/from financing activities
Net (decrease)/increase in cash and cash equivalents (A + B + C)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
2015-16
crore
70.19
32721.06
(21445.82)
116.19
1582.68
(1512.33)
(365.25)
(3678.25)
7488.47
127.58
5845.90
5973.48
2014-15
crore
98.89
29480.30
(20836.14)
2817.68
1871.10
(1322.73)
(280.10)
(3926.14)
7902.86
1759.33
4086.57
5845.90
Notes:
1. Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard (AS) 3 “Cash Flow
Statements” as specified in the Companies (Accounting Standards) Rules, 2006.
2. Purchase of fixed assets includes movement of capital work-in-progress during the year.
3. For cash and cash equivalents not available for immediate use as on the Balance Sheet date, see Note G(II) and H(IV).
4. Cash and cash equivalents are reflected in the Balance Sheet as follows:
(a) Cash and cash equivalents disclosed under current assets [Note H(IV)]
Cash and bank balances available for immediate use
Others
(b) Cash and cash equivalents disclosed under non-current assets [Note G(II)]
Cash and bank balances not available for immediate use
Total cash and cash equivalents as per Balance Sheet
(c) Unrealised exchange loss/(gain) on cash and cash equivalents
Total cash and cash equivalents as per Cash Flow Statement
5. Previous year’s figures have been regrouped/reclassified wherever applicable.
2015-16
crore
5745.99
155.60
5901.59
101.58
6003.17
(29.69)
5973.48
2014-15
crore
5607.12
149.09
5756.21
99.31
5855.52
(9.62)
5845.90
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm’s Registration No.117366W/W-100018
by the hand of
P. R. RAMESH
Partner
Membership No. 70928
For SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 038332
Mumbai, May 25, 2016
A. M. NAIK
Group Executive Chairman (DIN 00001514)
R. SHANKAR RAMAN
Chief Financial Officer & Whole-time Director (DIN 00101004)
(DIN 00019798)
M.M.CHITALE
VIKRAM SINGH MEHTA
(DIN 00041197)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary
M. No. A3471
SUNITA SHARMA
(DIN 02949529)
Directors
319
Notes forming part of the Consolidated Accounts
NOTE [A]
Share capital
A(I) Share capital authorised, issued, subscribed and paid up:
Particulars
Authorised:
Equity shares of 2 each
Issued, subscribed and fully paid up:
Equity shares of 2 each
As at 31-3-2016
As at 31-3-2015
Number of
shares
crore
Number of
shares
crore
1,62,50,00,000
325.00 1,62,50,00,000
325.00
93,14,78,845
186.30
92,95,62,061
185.91
A(II) Reconciliation of the number of equity shares and share capital:
Particulars
2015-16
2014-15
Number of
shares
crore
Number of
shares
crore
Issued, subscribed and fully paid up equity shares outstanding
at the beginning of the year
92,95,62,061
185.91
92,69,12,658
185.38
Add: Shares issued on exercise of employee stock options
during the year
19,16,784
0.39
26,49,403
0.53
Issued, subscribed and fully paid up equity shares outstanding
at the end of the year
93,14,78,845
186.30
92,95,62,061
185.91
A(III) Terms/rights attached to equity shares:
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.
A(IV) Shareholders holding more than 5% of equity shares as at the end of the year:
Name of the shareholder
Life Insurance Corporation of India
L&T Employees Welfare Foundation
Administrator of the Specified Undertaking of the Unit Trust
As at 31-3-2016
As at 31-3-2015
Number of
shares
14,64,19,088
11,47,52,281
Shareholding
%
15.72
12.32
Number of
shares
15,55,22,285
11,16,06,174
Shareholding
%
16.73
12.01
of India
7,59,26,462
8.15
7,59,25,962
8.17
A(V) Shares reserved for issue under options outstanding as at the end of the year on un-issued share capital:
Particulars
Employee stock options granted and outstanding #
0.675% 5 years & 1 day US$ denominated Foreign Currency
As at 31-3-2016
As at 31-3-2015
Number of
equity shares to
be issued as
fully paid
57,93,042
crore
(At face value)
1.16 *
Number of
equity shares to
be issued as
fully paid
77,08,842
crore
(At face value)
1.54 *
Convertible Bonds (FCCB)
63,46,986
1.27 **
63,46,986
1.27 **
*
The equity shares will be issued at a premium of 203.97 crore (previous year: 278.09 crore)
** The equity shares will be issued at a premium of 1215.13 crore (previous year: 1215.13 crore) on the exercise of options
by the bond holders
# Note A(VIII) for terms of employee stock option schemes
320
Notes forming part of the Consolidated Accounts (contd.)
A(VI) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended
March 31, 2016 are 30,82,94,576 (previous period of five years ended March 31, 2015: 30,82,94,576 shares)
A(VII) 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, 2016 – Nil (previous period of five years ended March 31, 2015: Nil)
A(VIII) Stock option schemes of Parent Company:-
a)
Terms:
i.
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 case of series 2006(A)], subject to
the discretion of the management and fulfillment of certain conditions.
ii. 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.
b)
The details of the grants under the aforesaid schemes under various series are summarised below:
Sr.
No.
Series reference
2000
2002 (A)
2002 (B)
2003 (A)
2003 (B)
2006
2006 (A)
2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15
1
2
3
4
5
6
7
8
9
Grant price -
Grant dates
Vesting commences on
Options granted and
outstanding at the beginning
of the year
Options lapsed during the
year
Options granted during
the year
Options exercised during
the year
Options granted and
outstanding at the end of
the year
Of which
Options vested
Options yet to vest
Weighted average remaining
contractual life of options
(in years)
2.30
2.30
2.30
2.30
2.30
2.30
11.70
11.70
11.70
11.70 400.70 400.70 400.70 400.70
1-6-2000
1-6-2001
19-4-2002
19-4-2003
19-4-2002
19-4-2003
23-5-2003 onwards 23-5-2003 onwards 1-9-2006 onwards
1-7-2007 onwards
23-5-2004 onwards 23-5-2004 onwards 1-9-2007 onwards
1-7-2008 onwards
25200
25200
32250
32250
59550
59550
47178
47178 585284 499543 304656 510181 6654724 8692214
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
40611
68450
11270
35625 442400 676786
– 150400 337800
–
– 344865 935190
– 168154 183609
36020 169900 1712610 2295894
25200
25200
32250
32250
59550
59550
47178
47178 526919 585284 257366 304656 4844579 6654724
25200
25200
32250
32250
59550
59550
47178
47178
96458 100390 257366 304656 2334008 2663571
–
–
–
–
–
–
–
– 430461 484894
–
– 2510571 3991153
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
5.16
5.38
Nil
0.03
2.18
3.95
c)
The number and weighted average exercise price of stock options are as follows:
Particulars
(i) Options granted and outstanding at the beginning of the year
(ii) Options granted during the year
(iii) Options allotted during the year
(iv) Options lapsed during the year
(v) Options granted and outstanding at the end of the year
(vi) Options exercisable at the end of the year out of (v) supra
2015-16
2014-15
No. of stock
options
77,08,842
4,95,265
19,16,784
4,94,281
57,93,042
28,52,010
Weighted
average
exercise price
( )
362.74
282.57
366.57
368.74
354.10
364.76
No. of stock
options
98,66,116
12,72,990
26,49,403
7,80,861
77,08,842
32,32,795
Weighted
average
exercise price
( )
374.42
297.48
373.74
366.60
362.74
368.52
d) Weighted average share price at the date of exercise for stock options exercised during the year is 1543.13 (previous year:
1554.71) per share.
321
Notes forming part of the Consolidated Accounts (contd.)
e)
In respect of stock options granted pursuant to the Company’s stock options schemes, the intrinsic value of the options
(excess of market price of the share over the exercise price of the option) is treated as discount and accounted as employee
compensation over the vesting period.
f) Weighted average fair value of options granted during the year is 965.39 (previous year: 1190.22) per option.
g)
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:
Particulars
Sr.
No.
(i) Weighted average risk-free interest rate
(ii) Weighted average expected life of options
(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
2015-16
2014-15
7.66%
3.86 years
30.52%
62.69 per option
1211.45 per option
282.57 per share
8.57%
4.01 years
33.92%
57.18 per option
1444.51 per option
313.49 per share
Expected volatility is based on the historical
volatility of the Company’s share price applicable
to the total expected life of each option.
h)
The balance in share option outstanding account as on March 31, 2016 is 200.28 crore (net) (previous year: 252.56 crore),
including 125.92 crore (previous year: 135.98 crore) for which the options have been vested to employees as on
March 31, 2016.
A(IX) The Directors recommend payment of final dividend of 18.25 per equity share of 2 each on the number of shares outstanding
as on the record date.
Provision for final dividend has been made in the books of accounts for 93,14,78,845 equity shares outstanding as at
March 31, 2016 amounting to 1699.95 crore.
A(X) Stock ownership schemes of subsidiary companies:
1.
Larsen & Toubro Infotech Limited
a)
Employee Stock Ownership Scheme (‘ESOS Plan’)
Under the Employee Stock Ownership Scheme (ESOS), 24,32,766 options are outstanding as at March 31, 2016. The grant
of options to the employees under ESOS is on the basis of their performance and other eligibility criteria. Each option entitles
the holder to exercise the right to apply for and seek allotment of one equity share of 1 each.
All vested options can be exercised on the First Exercise Date. The Nomination & Remuneration Committee had decided
September 28, 2015 as the First Exercise Date. The details of the grants under the aforesaid scheme are summarised below:
Sr.
No.
ESOP Series
1
Face value ( )
2 Grant price ( )
3 Options granted and outstanding at the beginning of the year
4 Options reinstated during the year *
5 Options granted during the year
6 Options cancelled/lapsed during the year
7 Options exercised and shares allotted during the year
8 Options granted and outstanding at the end of the year
of which
Options vested
Options yet to vest
I,II & III
IV – XXI
2015-16
1
5
19,65,015
3,500
–
34,000
18,51,855
82,660
2014-15
5
25
3,93,003
–
–
–
–
3,93,003
2015-16
1
2
93,67,335
4,54,580
–
10,64,326
64,07,483
23,50,106
2014-15
5
10
18,80,484
–
–
7,017
–
18,73,467
82,660
–
3,93,003
–
3,40,666
20,09,440
9,70,917
9,02,550
*
The subsidiary had lapsed unvested options with the employees who had resigned from the company. Based on legal
advice, the subsidiary has exercised its discretion in determining that the former employees in the United States will
322
Notes forming part of the Consolidated Accounts (contd.)
be allowed to exercise their deferred options and accordingly, 2,58,080 options at face value of 1 (erstwhile 51,616
options at face value of 5) exercisable by such former employees have been reinstated and vested.
*
The subsidiary had erroneously lapsed 2,00,000 options at face value of 1 (erstwhile 40,000 options at face value of
5). Subsequently, the subsidiary has decided that these options be restored and vested.
b)
Employees Stock Ownership Scheme – 2006 U.S. Stock Option Sub-Plan (‘Sub-Plan’)
The subsidiary had instituted the Employees Stock Ownership Scheme – 2006 U.S. Stock Option Sub-Plan (‘Sub-Plan’) for the
employees and Directors of its subsidiary, GDA Technologies, Inc, USA. The grant of options to the employees under this Sub-
Plan is on the basis of their performance and other eligibility criteria. The term of options shall be 5 years from the date of
grant. The options are vested over a period of five years, subject to fulfillment of certain conditions specified in the respective
option agreement. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of
1 each at an exercise price of USD 2.4 per share. Under the said plan, options granted and outstanding as at the end of the
year are 1,43,650, all vested.
Employees Stock Options granted and outstanding as at the end of the year on unissued share capital represent options
25,76,416 (previous year: 1,17,82,850) at face value of 1 each.
2.
L&T Finance Holdings Limited
Stock option scheme (ESOP 2010 & ESOP 2013)
The subsidiary has formulated Employee Stock Option Schemes 2010 (ESOP Scheme-2010), 2010-A (ESOP Scheme 2010-A)
and 2013 (ESOP Scheme 2013). The grant of options to the employee under the Stock Options scheme is on the basis of their
performance and other eligibility criteria. The options are vested over a period of 4 years, in ratio of 15%, 20%, 30% and 35%
respectively from the date of grant, subject to the discretion of the management and fulfillment of certain conditions. Options can
be exercised within a period of 7 years from the date of grant for schemes 2010 and 2010A. The options granted under scheme
2013 can be exercised within a period of 8 years from the date of grant and would be settled by way of equity. Management has
discretion to modify the exercise period.
The details of the grants under the aforesaid schemes are summarised below:
Sr.
No.
Series reference
2010 - 2010-A
2013
2015-16
2014-15
2015-16
2014-15
1 Grant price ( )
44.20
67.85
2 Options granted and outstanding at the beginning of the year
68,02,519
91,06,625 2,63,50,000
–
3 Options granted during the year
9,00,000
2,50,000
– 2,63,50,000
4 Options cancelled/lapsed during the year
3,17,841
7,17,181
28,00,000
5 Options exercised and shares allotted during the year
12,75,680
18,36,925
–
–
–
6 Options granted and outstanding at the end of the year
61,08,998
68,02,519 2,35,50,000 2,63,50,000
of which
Options vested
Options yet to vest
40,95,548
43,39,694
–
–
20,13,450
24,62,825 2,35,50,000 2,63,50,000
7 Weighted average remaining contractual life of options (in years)
5.40
5.95
6.56
6.57
Weighted average fair value of options granted during the year is 32.02 (previous year: 25.40) per option.
323
Notes forming part of the Consolidated Accounts (contd.)
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
2015-16
2014-15
a) Weighted average risk-free interest rate
b) Weighted average expected life of options
c) Weighted average expected volatility
d) Weighted average expected dividends
e) Weighted average share price
f) Weighted average exercise price
g) Method used to determine expected volatility
7.52%
7.90%
3.68 years
4.34 years
31.78%
33.15%
2.94 per option
3.47 per option
65.73 per option 67.84 per option
44.20 per option
67.63 per option
Expected volatility is based on the
historical volatility of the subsidiary’s
shares price applicable to the expected
life of each option.
The balance in share option outstanding account as on March 31, 2016 is 6.20 crore (net) (previous year: 6.31 crore), including
4.16 crore (previous year: 4.16 crore) for which the options have been vested to employees as on March 31, 2016.
A(XI) Had fair value method been adopted for expensing the compensation arising from employee share-based payment plans:
(i)
The employee compensation charge debited to the Statement of Profit and Loss for the year 2015-16 would have been
higher by 30.31 crore (previous year: 11.15 crore)
(ii) Basic EPS before extraordinary items would have decreased from 54.69 (previous year: 51.33) per share to 54.37
(previous year: 51.21) per share
(iii) Basic EPS after extraordinary items would have decreased from 54.69 (previous year: 51.33) per share to 54.37 (previous
year: 51.21) per share
(iv) Diluted EPS before extraordinary items would have decreased from 54.44 (previous year: 50.98) per share to 54.10
(previous year: 50.86) per share
(v) Diluted EPS after extraordinary items would have decreased from 54.44 (previous year: 50.98) per share to 54.10
(previous year: 50.86) per share
324
Notes forming part of the Consolidated Accounts (contd.)
NOTE [B]
Reserves and surplus
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
Capital reserve
As per last Balance Sheet
Addition during the year (net)
Capital reserve on consolidation
As per last Balance Sheet
Addition during the year
Deduction during the year
Capital redemption reserve
As per last Balance Sheet
Securities premium account [Note Q(6)(b)]
As per last Balance Sheet
Addition during the year
Less: Share/bond issue expenses (net of tax)
Premium on inflation linked debentures (net of tax)
Debenture redemption reserve
As per last Balance Sheet
Less: Transferred to retained earnings
Add: Transferred from retained earnings
Revaluation reserve
As per last Balance Sheet
Less: Transferred to Statement of Profit and Loss
Less: Transferred to retained earnings
Share options outstanding account
Employee share options outstanding account
As per last Balance Sheet
Addition during the year
Less: Transferred to retained earnings
Deduction during the year
Deferred employee compensation expense
As per last Balance Sheet
Addition during the year
Deduction during the year
Reserve u/s 45 IC of the Reserve Bank of India Act, 1934
As per last Balance Sheet
Add: Transferred from retained earnings
Carried forward
967.00
(19.49)
270.63
0.41
1.07
3.27
7944.99
181.28
8126.27
0.87
(0.62)
876.08
175.37
456.97
15.57
–
0.39
432.54
48.34
10.17
155.38
(127.44)
(47.94)
73.17
863.28
359.21
964.89
2.11
947.51
967.00
270.57
0.06
–
269.97
270.63
3.27
3.27
3.27
7737.80
225.23
7963.03
15.13
2.91
8126.02
7944.99
521.38
–
354.70
1157.68
876.08
19.25
1.59
2.09
15.18
15.57
514.83
87.77
11.66
158.40
315.33
432.54
(138.04)
(87.77)
98.37
(102.21)
(127.44)
722.52
140.76
1222.49
11955.24
863.28
11245.92
325
Notes forming part of the Consolidated Accounts (contd.)
NOTE [B]
Reserves and surplus (contd.)
Particulars
Brought forward
Reserve u/s 29C of National Housing Bank Act, 1987
As per last Balance Sheet
Add: Transferred from retained earnings
Tonnage tax reserve
As per last Balance Sheet
Add: Transferred from retained earnings
Foreign currency translation reserve
As per last Balance Sheet
Addition during the year (net)
Add/(less): Transferred to Statement of Profit and Loss on
dissolution of stake in subsidiaries
Reserve u/s 36(1)(viii) of Income Tax Act, 1961
As per last Balance Sheet
Add: Transferred from retained earnings
Hedging reserve (net of tax) [Note Q(13)]
As per last Balance Sheet
Addition/(deduction) during the year (net)
Retained earnings
As per last Balance Sheet
Depreciation charged against retained earnings
Reversal of deferred tax on depreciation charged against
retained earnings
Profit for the year
Add/(less): Transferred from/(to):
Debenture redemption reserve
Revaluation reserve
Employee share options outstanding account
Reserve u/s 45 IC of the Reserve Bank of India
Act, 1934
Reserve u/s 29C of National Housing Bank
Act, 1987
Tonnage tax reserve
Reserve u/s 36(1)(viii) of Income Tax Act, 1961
Other appropriation:
Dividend paid for previous year
Additional tax on dividend paid for previous year
Proposed dividend
Additional dividend tax [Note Q(19)]
Less:
326
As at 31-3-2016
As at 31-3-2015
crore
20.39
11.61
11.75
4.52
489.83
65.77
(6.26)
251.50
113.13
(382.27)
(101.15)
29086.04
(6.14)
2.13
5090.53
34172.56
(281.60)
0.39
10.17
(359.21)
(11.61)
(4.52)
(113.13)
1.79
0.36
1699.95
339.58
crore
11955.24
crore
crore
11245.92
32.00
6.89
13.50
9.98
1.77
20.39
16.27
11.75
571.42
(81.53)
(0.06)
549.34
489.83
203.52
47.98
364.63
251.50
(631.10)
248.83
(483.42)
(382.27)
26749.05
(115.58)
38.54
4764.82
31436.83
(354.70)
2.09
11.66
(140.76)
(13.50)
(1.77)
(47.98)
1.88
0.32
1510.54
293.09
31371.37
43805.43
29086.04
40723.16
Notes forming part of the Consolidated Accounts (contd.)
NOTE [C(I)]
Long term borrowings
Particulars
Secured Unsecured
Total *
Secured Unsecured
Total *
As at 31-3-2016
As at 31-3-2015
Redeemable non-convertible fixed rate debentures
Redeemable non-convertible floating rate debentures
Redeemable non-convertible inflation indexed debentures
0.675% Foreign currency convertible bonds
Term loans from banks
Term loans from others
Loans from financial institutions
Long term maturities of finance lease obligations
Sales tax deferment loan
Perpetual debts
crore
14834.47
220.00
–
–
31607.64
337.22
216.95
–
–
–
crore
11218.50
–
108.81
1325.10
13376.72
57.85
250.00
0.17
0.28
200.00
crore
26052.97
220.00
108.81
1325.10
44984.36
395.07
466.95
0.17
0.28
200.00
crore
crore
14847.58
190.00
–
–
crore
8540.00 23387.58
190.00
–
109.76
109.76
1250.00
1250.00
28366.05 10888.72 39254.77
409.78
734.39
0.28
0.62
200.00
72.53
250.00
0.28
0.62
200.00
337.25
484.39
–
–
–
47216.28
26537.43
73753.71
44225.27 21311.91 65537.18
* Loans guaranteed by Directors or others Nil (previous year: Nil)
NOTE [C(II)]
Other long term liabilities
Forward contract payable
Interest accrued but not due
Others [Note C(II)(a)]
Particulars
As at 31-3-2016
As at 31-3-2015
crore
279.95
749.86
586.17
1615.98
crore
205.47
573.01
497.63
1276.11
C(II)(a) Other long term liabilities – others include
Advance of 14.30 crore received from M/s. Sical Logistics Limited (SLL) against sale of 1,43,00,000 equity shares of 10/- each in
M/s Sical Iron Ore Terminals Limited (SIOTL) at cost to SLL vide Agreement for Share Sale and Purchase dated December 17, 2008.
The sale is subject to the condition that it can be completed only after three years from the date of commencement of commercial
operations by SIOTL as per clause 18.2.2 (i) (d) of the License Agreement dated September 23, 2006 between SIOTL and M/s. Ennore
Port Limited (EPL). SIOTL has not been able to commence commercial operation as of March 31, 2016 due to the ban of export of
iron ore from the State of Karnataka. SIOTL has sought necessary approvals from EPL and Government of India for handling alternate
commodities.
NOTE [C(III)]
Long term provisions
Particulars
Provision for employee benefits:
Employee pension schemes [Note Q(8)(ii)(a)]
Post-retirement medical benefit plan [Note Q(8)(ii)(a)]
Interest rate guaranteed-provident fund [Note Q(8)(ii)(a)]
Others
Others:
Periodic major maintenance [Note Q(16)]
As at 31-3-2016
As at 31-3-2015
crore
231.08
175.27
0.61
11.53
369.83
788.32
crore
207.70
165.53
10.43
4.67
186.05
574.38
327
Notes forming part of the Consolidated Accounts (contd.)
NOTE [D(I)]
Short term borrowings
Particulars
Secured Unsecured
Total*
Secured Unsecured
Total*
crore
crore
crore
crore
crore
crore
As at 31-3-2016
As at 31-3-2015
Loans repayable on demand:
From banks
Loans from related parties
Other loans and advances:
1897.70
–
176.24
30.00
2073.94
30.00
1731.08
–
234.79
30.00
1965.87
30.00
From banks
Commercial paper
Redeemable non-convertible fixed rate debentures
From others
1231.13
–
–
–
4564.31
7819.10
1200.00
89.50
5795.44
7819.10
1200.00
89.50
1490.96
–
–
–
3716.93
8958.40
500.00
67.23
5207.89
8958.40
500.00
67.23
3128.83
13879.15
17007.98
3222.04 13507.35 16729.39
* Loans guaranteed by Directors or others Nil (previous year: Nil)
NOTE [D(II)]
Current maturities of long term borrowings
Particulars
Secured Unsecured
Total*
Secured Unsecured
Total*
As at 31-3-2016
As at 31-3-2015
Redeemable non-convertible fixed rate debentures
Term loans from banks
Term loans from others
Loans from financial institutions
Finance lease obligation [Note Q(11)(ii)(a)(ii)]
Sales tax deferment loan
crore
crore
crore
crore
crore
crore
4794.24
3886.64
–
40.71
–
–
550.00
1142.36
130.51
–
0.11
0.34
5344.24
5029.00
130.51
40.71
0.11
0.34
2318.46
5100.52
–
67.10
–
–
600.00
217.48
–
–
0.16
0.45
2918.46
5318.00
–
67.10
0.16
0.45
8721.59
1823.32
10544.91
7486.08
818.09
8304.17
* Loans guaranteed by Directors or others Nil (previous year: Nil)
NOTE [D(III)]
Trade payables
Particulars
Due to micro enterprises and small enterprises
Due to others:
Acceptances
Due to related parties:
Associate companies
Due to others
328
As at 31-3-2016
As at 31-3-2015
crore
crore
166.33
crore
crore
151.86
951.46
15.19
28257.99
1447.42
31.88
23018.48
29224.64
29390.97
24497.78
24649.64
Notes forming part of the Consolidated Accounts (contd.)
NOTE [D(IV)]
Other current liabilities
Particulars
Interest accrued but not due on borrowings
Interest accrued and due on borrowings
Unclaimed dividend
Unclaimed interest on debentures
Due to customers (construction and project related activity)
Due to customers (property development projects)
Advances from customers
Forward contract payable
Other payables (including sales tax, service tax, excise duty and others)
[Note D(IV)(a)]
D(IV)(a) Other current liabilities - other payables include
Due to Directors 47.83 crore (previous year: 50.61 crore)
NOTE [D(V)]
Short term provisions
Particulars
Provision for employee benefits:
Gratuity [Note Q(8)(ii)(a)]
Compensated absences
Employee pension schemes [Note Q(8)(ii)(a)]
Post-retirement medical benefit plan [Note Q(8)(ii)(a)]
Provision for interest rate guarantee
Others:
Current taxes [net of payments made 2152.52 crore
(previous year: 2057.49 crore)]
Proposed dividend [Note A(IX)]
Additional tax on dividend
Reserve for unexpired risks
Other provisions [Note Q(16)]
As at 31-3-2016
As at 31-3-2015
crore
1977.68
40.96
39.33
17.22
5776.24
768.58
15413.21
669.02
3808.55
28510.79
crore
1300.16
6.93
33.59
10.31
4497.65
637.70
13366.26
731.10
3101.19
23684.89
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
145.00
864.54
16.82
17.22
–
91.15
1699.95
172.46
222.42
460.48
143.90
819.06
13.47
14.59
0.13
1043.58
991.15
260.84
1510.54
148.35
155.64
477.29
2646.46
3690.04
2552.66
3543.81
329
Notes forming part of the Consolidated Accounts (contd.)
NOTE [E(I)]
Tangible assets
Particulars
Land
Freehold
Leasehold
Sub total - Land
Buildings
Owned
Leased out
Sub total - Buildings
Plant & equipment
Owned
Leased out
Sub total - Plant &
equipment
Computers
Owned
Leased out
Taken on lease
Sub total - Computers
Office equipment
Owned
Leased out
Sub total - Office equipment
Furniture and fixtures
Owned
Leased out
Sub total - Furniture &
fixtures
Vehicles
Owned
Leased out
Sub total - Vehicles
Other assets
Owned
Railway sidings
Aircraft
Ships
Dredged channel
Breakwater structures
Leasehold Improvements
Sub total - Other assets
Lease adjustment
Total
As at
1-4-2015
1058.85
763.00
1821.85
5231.26
687.13
5918.39
13603.92
524.96
14128.88
1111.37
18.27
2.47
1132.11
511.78
2.78
514.56
630.73
18.98
649.71
517.88
213.77
731.65
0.25
119.08
787.11
1641.73
637.72
23.53
3209.42
–
28106.57
Cost/valuation
Depreciation
Impairment
Book value
crore
Pursuant to
acquisition
of
subsidiaries
Foreign
currency
Additions
fluctuation Deductions
Pursuant to
acquisition
of
subsidiaries
As at
31-3-2016
Up to
31-3-2015
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1.29
7.29
8.58
396.18
20.16
416.34
1044.49
4.88
1049.37
179.31
1.92
–
181.23
75.09
–
75.09
71.06
4.01
75.07
85.49
24.89
110.38
–
–
–
–
0.84
53.54
54.38
–
1970.44
1.40
1.36
2.76
22.78
–
22.78
56.42
–
56.42
2.10
–
–
2.10
3.95
–
3.95
6.79
–
6.79
9.46
–
9.46
406.08
–
406.08
196.65
533.11
729.76
655.46
771.65
1427.11
5453.57
174.18
5627.75
–
52.04
52.04
865.21
48.80
914.01
694.02 14010.81
529.42
694.44 14540.23
0.42
5533.18
224.36
5757.54
51.76
–
2.34
54.10
32.45
0.86
33.31
65.73
4.30
70.03
1241.02
20.19
0.13
1261.34
558.37
1.92
560.29
642.85
18.69
661.54
804.29
18.07
2.44
824.80
359.11
0.84
359.95
329.72
6.63
336.35
50.86
60.99
111.85
561.97
177.67
739.64
296.66
76.55
373.21
–
–
–
–
–
–
–
–
104.26
–
–
–
–
–
5.38
5.38
–
2104.95
0.25
119.08
787.11
1641.73
638.56
71.69
3258.42
–
28076.32
0.25
26.32
195.78
173.58
46.22
8.49
450.64
–
9068.54
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Foreign
currency
fluctuation Deductions
Up to
31-3-2016
As at
31-3-2016
As at
31-3-2016
As at
31-3-2015
–
0.71
0.71
7.86
–
7.86
–
–
–
–
66.41
66.41
28.68
36.82
65.50
1053.65
24.44
1078.09
25.04
–
25.04
267.13
0.22
267.35
6365.36
235.14
6600.50
1.48
–
–
1.48
3.66
–
3.66
3.49
–
3.49
6.97
–
6.97
–
–
–
–
–
–
–
–
49.21
47.40
–
2.34
49.74
29.39
0.19
29.58
48.67
0.23
48.90
927.45
18.65
0.13
946.23
407.59
1.10
408.69
355.02
8.22
363.24
36.26
30.06
66.32
326.40
74.26
400.66
–
–
–
–
–
4.10
4.10
–
0.25
32.99
236.03
239.46
59.78
31.07
599.58
–
531.49 10463.40
6.58
–
6.58
–
–
–
–
6.93
6.93
–
–
–
–
–
–
–
–
–
–
–
–
–
648.88 1052.64
705.24
710.96
1354.12 1763.60
4399.92 4366.05
638.33
149.74
4549.66 5004.38
7645.45 8070.74
287.35
293.67
7932.80 8364.41
313.57
1.54
–
315.11
307.08
0.20
0.03
307.31
150.78
0.82
151.60
152.66
1.94
154.60
287.83
10.47
298.30
301.01
12.35
313.36
235.57
103.41
338.98
221.22
137.22
358.44
–
–
–
–
–
–
–
–
–
–
92.76
86.09
551.08
591.33
1402.27 1468.15
591.50
578.78
15.04
40.62
2658.84 2758.78
(239.36) (239.36)
13.51 # 17360.05 18785.52
For the
period @
–
13.66
13.66
209.26
12.46
221.72
1074.27
11.00
1085.27
169.08
0.58
0.03
169.69
74.21
0.45
74.66
70.48
1.82
72.30
59.03
27.77
86.80
–
6.67
40.25
65.88
13.56
26.68
153.04
–
1877.14
Previous year
28562.37
25.55 1837.60
50.45 2369.41 28106.56 7508.26
21.53 2181.97
12.52
655.75 9068.53
13.15
Add: Asset held for sale
Add: Capital work-in-progress
25.03
25.01
17385.08 18810.53
6486.21 4883.03
23871.29 23693.56
@ Includes
# Impairment upto 31-3-2016
6.14 crore transferred to retained earnings pursuant to Schedule II of Companies Act, 2013.
13.51 crore,
0.37 crore pertains to foreign currency translation adjustments,
0.01 crore deductions during the year.
330
Notes forming part of the Consolidated Accounts (contd.)
NOTE [E(II)]
Intangible assets
Particulars
Specialised softwares
Technical knowhow
New product design and
Development
Customer contracts and
relationship
Toll collection rights
Utility right to use
Total
Pursuant to
acquisition
of
subsidiaries
–
–
As at
1-4-2015
990.32
127.84
Cost/valuation
Foreign
currency
Additions
99.39
13.26
fluctuation Deductions
3.35
–
13.76
0.10
Pursuant to
acquisition
of
subsidiaries
–
–
As at
31-3-2016
1100.12
141.20
Up to
31-3-2015
577.16
68.08
86.60
–
77.89
0.74
0.45
164.78
30.24
131.24
14051.17
1.53
15388.70
–
–
– 10698.95
–
–
10889.49
–
6.33
–
–
20.93
–
137.57
7.18 24742.94
1.53
26288.14
–
10.98
44.34
955.97
0.38
1676.17
–
–
–
–
–
Amortisation
Impairment
Book value
crore
Foreign
currency
fluctuation Deductions
3.13
–
7.45
0.10
For the
period
163.27
24.88
Up to
31-3-2016
744.75
93.06
As at
31-3-2016#
–
–
As at
31-3-2016
As at
31-3-2015
355.37 413.16
59.76
48.14
18.84
0.23
0.40
48.91
–
115.87
56.36
14.85
445.86
0.15
667.85
2.26
–
–
10.04
–
1.53
–
5.06
61.45
1400.30
0.53
2349.00
–
214.30
–
214.30
76.12
86.90
23128.34 13095.20
1.15
23724.84 13712.53
1.00
Previous year
10729.61
11.92 4751.01
(60.14)
43.70 15388.70 1312.76
10.45
408.04
(17.96)
37.12 1676.17
–
Add: Intangible assets under development
11003.72 10109.75
34728.56 23822.28
# Impairment upto 31-3-2016
214.30 crore, during the year
214.30 crore.
NOTE [E(III)]
Goodwill on consolidation
Particulars
Goodwill on consolidation
Previous year
As at
1-4-2015
2263.10
2184.27
Additions
25.32
108.56
Cost/valuation
Foreign
currency
fluctuation
5.10
(29.73)
Impairment
Book value
crore
Deductions
73.75
–
As at
31-3-2016*
2219.77
2263.10
As at
31-3-2016
48.10 #
48.10
As at
31-3-2016
2171.67
2215.00
As at
31-3-2015*
2215.00
2136.17
# Impairment upto 31-03-2016
48.10 crore, during the year
Nil.
* Goodwill represents consideration paid in excess of share in net worth of subsidiaries acquired during the year. It also includes goodwill purchased on acquisition of business of
60.30 crore (previous year: 39.61 crore).
Notes:
1 Cost/valuation of:
(i)
Freehold land includes:
(a)
1.17 crore for which conveyance is yet to be completed.
(ii)
Leasehold land includes:
(a)
414.54 crore representing 1148.40 acres of land taken on lease from M/s Tamilnadu Industrial Development
Corporation Limited (TIDCO) on various dates for development of port and shipyard.
(b)
0.47 crore representing 4.728 hectares of forest land in dist. Rudryaprayag, State of Uttarakhand, taken on lease for
30 years w.e.f. 10.09.2007.
(c)
0.77 crore representing 34.341 hectares of forest land in dist. Rudryaprayag, State of Uttarakhand, taken on lease for
30 years w.e.f. 24.09.2009.
(d)
73.92 crore added during the year in respect of which lease agreements are yet to be executed.
331
Notes forming part of the Consolidated Accounts (contd.)
2 Cost/valuation of buildings includes ownership accommodation:
(i)
(a)
in various co-operative societies and apartments and shop-owners’ associations: 127.58 crore, including 2595 shares
of 50 each, 232 shares of 100 each and 1 share of 250 each.
(b)
in various apartments: 11.20 crore.
(c)
in proposed co-operative societies: 0.53 crore.
(d)
in various co-operative societies and apartments and shop-owners’ associations: 14.60 crore, for which share
certificate are yet to be issued.
(ii)
of 4.07 crore in respect of which the deed of conveyance is yet to be executed.
(iii) of 8.48 crore representing undivided share in a property at a certain location.
3 Depreciation, amortisation, impairment and obsolescence for the year on fixed assets includes 13.26 crore (previous year:
30.27 crore) on account of obsolescence and 214.30 crore (previous year: 138.60 crore) on account of impairment.
4 Owned assets given on operating lease have been presented separately under tangible assets [Note E(I)] as per Accounting
Standard (AS) 19 “Leases”.
5 Cost/valuation as at April 1, 2015 of individual assets has been reclassified, wherever necessary.
6
7
In respect of asset components, whose useful life has expired as on April 1, 2015, the carrying amount of 6.14 crore before tax
( 4.01 crore net of tax of 2.13 crore) has been adjusted against retained earnings as on April 1, 2015.
Additions during the year and capital work-in-progress/intangible assets under development include 1089.69 crore (previous
year: 1352.98 crore) being borrowing cost capitalised in accordance with Accounting Standard (AS) 16 ”Borrowing Costs” as
specified under Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014.
Asset wise break-up of borowing costs capitalised is as follows:
Asset Class
Tangible
Building owned
Plant & equipment owned
Office equipment owned
Furniture and fixture owned
Toll collection rights
Capital work-in-progress
Intangible assets under development
Total
2015-16
3.13
–
–
–
13.20
318.20
755.16
1089.69
crore
2014-15
26.30
0.30
0.02
0.03
3.65
505.84
816.84
1352.98
332
Notes forming part of the Consolidated Accounts (contd.)
NOTE [F]
Non-current investments (at cost unless otherwise specified)
Particulars
Long term investments:
Trade investments:
Investments in equity instruments
Investments in associates: [Note F(I)]
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
Fully paid equity shares of associate companies
67.81
Add/(less):
Accumulated share in profit/(loss) of the associate
companies at the beginning of the year
Adjustment pursuant to an associate becoming
subsidiary
Adjustment pursuant to divestment of stake in
associates
Add/(less):
Share in profit/(loss) (net) of associate companies-
during the period
Share in depreciation, net of deferred tax, charged
against accumulated profits
Share in non-statutory reserves of associate
companies-during the period
Commitment to fresh infusion of equity
Dividend received from associate companies during
the period
Unrealised profits in respect of transactions with
associate companies
Provision for diminution in value
Investments in others:
Fully paid equity shares
Less: Provision for diminution in value
Other investments:
Investments in equity instruments
Less: Provision for diminution in value
Investments in cumulative redeemable preference shares
Investments in Government and trust securities
Less: Provision for diminution in value
Investments in debentures and bonds
Less: Provision for diminution in value
Investments in mutual funds
Investments in security receipt
Investment in units of fund
61.87
–
(11.55)
118.13
(2.51)
–
(3.32)
3.82
(5.63)
–
(0.56)
20.00
15.90
296.35
0.61
214.01
0.03
861.52
54.96
85.05
74.57
(14.43)
4.50
149.69
2.14
(0.64)
–
2.73
(4.24)
(1.33)
(0.56)
43.00
15.90
67.80
28.32
180.00
0.02
772.72
–
109.93
4.10
295.74
71.72
213.98
806.56
13.32
237.96
221.05
1974.36
147.79
27.10
39.48
93.75
179.98
772.72
1.70
245.85
138.43
1646.80
333
Notes forming part of the Consolidated Accounts (contd.)
F(I)
Investments in associates include goodwill of 23.90 crore (previous year: 23.95 crore) and is further net of capital reserve of
Nil (previous year: 0.25 crore).
NOTE [G(I)(a)]
Long term loans and advances
Particulars
Secured considered good:
Loans against mortgage of house property
Capital advances
Inter-corporate deposits including interest accrued
Other loans and advances (KMPs)
Unsecured considered good:
Capital advances
Loan and advances to related parties:
Associate companies:
Advances recoverable
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
1.24
31.50
–
–
226.08
2.37
30.97
3.00
0.01
267.97
18.79
17.73
18.79
17.73
Other loans and advances:
Security deposits
Earnest money deposits
Advances recoverable in cash or in kind
Income tax receivable of current year [net of provision for tax
of 637.21 crore (previous year: 426.42 crore)]
Minimum Alternate Tax (MAT) credit entitlement
Considered doubtful:
Other loans and advances
Less: Allowance for doubtful loans and advances
323.63
4.79
2915.28
604.50
392.18
0.34
4240.72
0.34
254.24
3.95
2472.17
261.17
212.20
3.01
3206.74
3.01
NOTE [G(I)(b)]
Long term loans and advances towards financing activities
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
4240.38
4517.99
3203.73
3525.78
Secured loans:
Considered good:
Term loans
Finance lease
Debentures
Considered doubtful:
Term loans [Note G(I)(b)(i)]
Less: Allowance for non-performing assets
Less: Contingent provisions against standard assets
Less: Provision for standard assets
Carried forward
334
37655.64
32.46
3873.05
528.13
42089.28
528.13
60.88
369.85
30487.13
68.31
2514.08
386.22
33455.74
386.22
119.02
290.79
41130.42
41130.42
32659.71
32659.71
Notes forming part of the Consolidated Accounts (contd.)
NOTE [G(I)(b)]
Long term loans and advances towards financing activities (contd.)
Particulars
Brought forward
Unsecured loans:
Considered good:
Term loans
Finance lease
Debentures
Considered doubtful:
Term loans [Note G(I)(b)(i)]
Less: Allowance for non-performing assets
Less: Contingent provisions against standard assets
Less: Provision for standard assets
As at 31-3-2016
As at 31-3-2015
crore
crore
41130.42
crore
crore
32659.71
2073.91
9805.89
440.20
31.09
12351.09
31.09
9.39
–
1341.10
9645.00
293.22
54.34
11333.66
54.34
4.08
2.93
12310.61
53441.03
11272.31
43932.02
G(I)(b)(i) Loans and advances towards financing activities are classified as doubtful to the extent of provision made following prudential
norms for provisioning of assets prescribed by the Reserve Bank of India.
NOTE [G(II)]
Cash and bank balances
Particulars
Cash and cash equivalents:
Cash and bank balances not available for immediate use
NOTE [G(III)]
Other non-current assets
Particulars
Interest accrued on investments and others
Unamortised expenses
Others
NOTE [H(I)]
Current investments
Particulars
(a) Current investments:
Fully paid equity shares
Less: Provision for diminution in value
Carried forward
As at 31-3-2016
As at 31-3-2015
crore
101.58
101.58
crore
99.31
99.31
As at 31-3-2016
As at 31-3-2015
crore
358.13
79.89
22.34
460.36
crore
263.56
97.20
8.65
369.41
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
81.79
72.57
73.15
31.60
9.22
9.22
41.55
41.55
335
Notes forming part of the Consolidated Accounts (contd.)
NOTE [H(I)]
Current investments (contd.)
Particulars
Brought forward
Government and trust securities
Less: Provision for diminution in value
Debentures and bonds
Less: Provision for diminution in value
Mutual funds
Less: Provision for diminution in value
Other investments
Share application money
(b) Current portion of long term investments:
Preference shares
Investment property
NOTE [H(II)]
Inventories (at cost or net realisable value whichever is lower)
Particulars
Raw materials
[including goods-in-transit 46.10 crore (previous year: 45.26 crore)]
Components
[including goods-in-transit 15.84 crore (previous year: 24.10 crore)]
Construction materials
[including goods-in-transit 113.43 crore (previous year: 75.60 crore)]
Manufacturing work-in-progress
Finished goods
[including goods-in-transit 0.04 crore (previous year: Nil)]
Stock-in-trade (in respect of goods acquired for trading)
[including goods-in-transit 34.82 crore (previous year: 36.02 crore)]
Stores and spares
[including goods-in-transit 3.54 crore (previous year: 7.66 crore)]
Loose tools
[including goods-in-transit 0.04 crore (previous year: 0.05 crore)]
Property development projects (including land) [Note Q(7)(c)]
Completed property [Note Q(7)(c)]
336
As at 31-3-2016
As at 31-3-2015
crore
1069.13
2.62
1371.58
10.07
5609.71
0.80
–
7.56
crore
1485.30
2.57
1263.22
0.84
5104.89
0.20
34.00
14.38
crore
9.22
1066.51
1361.51
5608.91
18.49
33.47
7.56
8105.67
crore
41.55
1482.73
1262.38
5104.69
23.19
2.40
48.38
7965.32
As at 31-3-2016
As at 31-3-2015
crore
1069.64
637.79
374.71
912.55
295.11
179.99
347.34
18.41
1526.41
–
5361.95
crore
1151.48
639.22
344.70
1145.74
403.80
178.02
327.87
14.37
2211.39
91.81
6508.40
Notes forming part of the Consolidated Accounts (contd.)
NOTE [H(III)]
Trade receivables
Trade receivables
Secured:
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
Debts outstanding for more than 6 months:
Considered good
Other debts:
Considered good
Unsecured:
Debts outstanding for more than 6 months:
Considered good
Considered doubtful
Other debts:
Considered good
Considered doubtful
Less: Allowance for doubtful debts
0.51
4.60
5223.68
1044.09
6267.77
30761.15
4.55
37033.47
1048.64
4.71
8.85
5.11
13.56
3509.03
673.49
4182.52
26566.78
0.46
30749.76
673.95
35984.83
35989.94
30075.81
30089.37
NOTE [H(IV)]
Cash and bank balances
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
Cash and cash equivalents:
Balance with banks
Cheques and drafts on hand
Cash on hand
Fixed deposits with banks (maturity less than 3 months)
Other bank balances:
4161.01
544.40
46.79
439.72
3526.15
272.27
119.60
850.44
Fixed deposits with banks including interest accured thereon
[includes 5.91 crore (previous year: 3.40 crore) of bank
deposit with more than 12 months maturity]
Earmarked balances with banks-unclaimed dividend
Earmarked balances with banks-others
Cash and bank balances not available for immediate use
including margin money deposits
497.28
39.39
17.40
155.60
794.48
33.59
10.59
149.09
709.67
5901.59
987.75
5756.21
337
Notes forming part of the Consolidated Accounts (contd.)
NOTE [H(V)]
Short term loans and advances
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
0.86
73.00
0.90
70.00
73.86
70.90
7.45
0.32
0.35
0.67
523.01
52.52
8548.50
176.51
27.55
36.31
152.12
9516.52
215.98
6.37
0.83
3.17
–
8.79
10.37
434.92
64.71
6879.51
218.81
25.99
4.58
186.62
7815.14
217.19
9300.54
9383.19
7597.95
7679.22
Secured considered good:
Loans against mortgage of house property:
Others
Inter-corporate deposits including interest accrued
Unsecured:
Loans and advances to related parties:
Considered good:
Associates:
Advance recoverable
Others
Joint ventures:
Advance recoverable
Advances to suppliers
Others:
Considered good:
Security deposits
Earnest money deposit
Advances recoverable in cash or in kind
Balance with customs,port trust, etc.
Considered doubtful:
Deferred credit against sale of ships
Security deposits
Other loans and advances
Less: Allowance for doubtful loans and advances
338
Notes forming part of the Consolidated Accounts (contd.)
NOTE [H(V)(a)]
Short term loans and advances towards financing activities
Particulars
As at 31-3-2016
As at 31-3-2015
crore
crore
crore
crore
Secured loans:
Considered good:
Term loans
Finance lease
Debentures
Less: Contingent provision against standard assets
Unsecured loans:
Considered good:
Term loans
Finance lease
Debentures
Less: Contingent provision against standard assets
NOTE [H(VI)]
Other current assets
Particulars
Due from customers (construction and project related activity)
Due from customers (property development activity) [Note Q(7)(c)]
Interest accrued on investments and others
Interest accrued on inter-corporate deposit
Unbilled revenue
Unamortised expenses
Accrual of fee income
Billed interest and other receivable
Others
7625.67
45.48
123.73
7794.88
132.53
4369.76
345.08
18.23
4733.07
27.01
7830.08
63.66
59.78
7953.52
32.53
7662.35
7920.99
3189.63
295.75
40.00
3525.38
11.52
4706.06
12368.41
3513.86
11434.85
As at 31-3-2016
As at 31-3-2015
crore
26526.43
178.64
778.28
2.62
545.09
69.21
1.71
118.80
123.39
crore
22854.72
129.88
711.89
–
325.75
66.02
2.13
147.85
105.66
28344.17
24343.90
339
Notes forming part of the Consolidated Accounts (contd.)
NOTE [I]
Contingent liabilities
Particulars
(a) Claims against the Company not acknowledged as debts
(b) Sales tax liability that may arise in respect of matters in appeal
(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 Company in Writ
(d) Income tax liability (including penalty) that may arise in respect
of which the Company is in appeal
As at 31-3-2016
As at 31-3-2015
crore
2462.02
222.34
881.16
767.85
crore
1596.25
217.42
227.24
1170.01
Notes:
1
2
3
The Company expects reimbursements of 27.09 crore in respect of the above contingent liabilities.
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 Company has determined that the possibility of such levy is remote.
Particulars of contingent liabilities in respect of joint ventures is given in Note Q(15).
NOTE [J]
Commitments
Particulars
Estimated amount of contracts remaining to be executed on capital
account (net of advances) *
As at 31-3-2016
As at 31-3-2015
crore
9041.92
crore
23044.13
* Particulars of capital commitments in respect of joint ventures are given in Note Q(15).
NOTE [K]
Revenue from operations
Particulars
2015-16
2014-15
crore
crore
crore
crore
Sales & service:
Construction and project related activity [Note Q(7)(a)]
Manufacturing and trading activity
Engineering and service fees
Software development products and services
Income from financing activity/annuity based projects and finance
income from lease of power plant
Property development activity [Note Q(7)(c)]
Toll collection and related activity
Servicing
Commission
Income from port services
Charter hire income
Investment/portfolio management and trusteeship fees
Fees for operation and maintenance of power plant
Premium earned (net)
68620.17
10091.25
3017.55
5824.66
8081.97
1444.76
1477.65
626.66
155.00
88.54
199.39
340.80
1960.36
297.83
60702.03
9514.69
2592.42
4941.83
7050.69
1559.17
1006.41
693.01
140.10
100.15
169.16
139.17
1531.79
206.14
Carried forward
340
102226.59
102226.59
90346.76
90346.76
Notes forming part of the Consolidated Accounts (contd.)
NOTE [K]
Revenue from operations (contd.)
Particulars
Brought forward
Other operational revenue:
2015-16
crore
crore
102226.59
2014-15
crore
crore
90346.76
Income from hire of plant & equipment
Lease rentals
Property maintenance recoveries
Facility management income
Premium earned (net) on related forward exchange contract
Profit on sale of SPVs of Developmental Projects and Realty Business
Miscellaneous income
27.34
191.92
14.23
34.54
401.97
276.69
348.95
0.45
242.22
14.02
47.86
262.11
1381.76
466.48
1295.64
103522.23
2414.90
92761.66
K(I) Revenue from sales and service includes 403.61 crore (previous year: 1324.37 crore) for price variations net of liquidated
damages in terms of contracts with the customers.
NOTE [L]
Other income
Interest income:
Particulars
2015-16
2014-15
crore
crore
crore
crore
Interest income on long term investments
Interest income on current investments
Interest income on others:
Joint venture & associate companies
Others
Dividend income:
Trade investments
Others
From current investments
Net gain/(loss) on sale of investments:
Long term investments (net)
Current investments (net)
Net gain/(loss) on sale of fixed assets (net)
Lease rental
Miscellaneous income (net of expenses)
44.97
199.36
10.05
163.86
2.15
82.54
84.69
114.17
86.44
300.08
34.88
212.41
10.33
147.12
418.24
404.74
2.07
74.74
76.81
2.75
198.86
79.56
(0.47)
444.70
386.52
62.79
2.18
114.44
1183.03
444.23
19.58
0.62
126.01
1074.74
341
Notes forming part of the Consolidated Accounts (contd.)
NOTE [M]
Manufacturing, construction and operating expenses
Particulars
Materials consumed:
Raw materials and components
Less: Scrap sales
Construction materials consumed
Purchase of stock-in-trade
Value of stock-in-trade transferred on sale of business
Stores, spares and tools consumed
Sub-contracting charges
Change in inventories of finished goods, work-in-progress and
stock-in-trade:
Closing stock:
Finished goods
Stock-in-trade
Work-in-progress
Cost of built up space and property development land:
Work-in-progress
Completed property
Property development land
Less: Opening stock:
Finished goods
Stock-in-trade
Work-in-progress
Cost of built up space and property development land:
Work-in-progress
Completed property
Property development land
Other manufacturing, construction and operating expenses:
Excise duty
Power and fuel [Note O(I)]
Royalty and technical know-how fees
Packing and forwarding [Note O(I)]
Hire charges-plant & equipment and others
Bank guarantee charges
Insurance claim incurred (net)
Engineering, professional, technical and consultancy fees
Insurance [Note O(I)]
Carried forward
342
2015-16
2014-15
crore
crore
crore
crore
13644.22
97.31
1349.93
(16.49)
295.11
179.99
4586.33
1196.93
–
323.73
6582.09
403.80
178.02
4560.05
1901.16
91.81
310.23
7445.07
(1.40)
1212.81
48.58
388.41
999.78
134.33
218.96
1268.75
200.48
10451.17
20091.51
1426.56
2501.80
17426.16
13546.91
20036.82
1333.44
1935.55
19565.57
10596.92
145.75
1426.56
–
403.80
178.02
4560.05
1901.16
91.81
310.23
7445.07
349.31
126.67
4193.05
1658.63
120.11
284.62
6732.39
862.98
(712.68)
18.72
968.23
22.14
414.65
1116.73
146.47
147.65
1149.76
237.76
4470.70
57281.27
4222.11
51184.52
Notes forming part of the Consolidated Accounts (contd.)
NOTE [M]
Manufacturing, construction and operating expenses (contd.)
Particulars
Brought forward
Rent [Note O(I)]
Rates and taxes [Note O(I)]
Travelling and conveyance [Note O(I)]
Repairs to plant & equipment
Repairs to buildings [Note O(I)]
General repairs and maintenance [Note O(I)]
Port operation expenses
Operating cost of shipping business
Miscellaneous expenses [Note O(I)]
crore
51184.52
2015-16
2014-15
crore
4470.70
517.81
347.28
1075.47
91.25
21.52
376.03
12.62
51.14
1260.96
crore
57281.27
crore
4222.11
408.08
254.37
967.49
18.14
26.15
352.05
41.28
59.37
1677.34
Finance cost of financial services business and finance lease activity:
Interest and other financing charges [Note O(I)]
4828.91
4158.13
8224.78
8026.38
Staff expenses for software development business:[Note O(I)]
Salaries, wages and bonus
Contribution to and provision for:
Provident fund and pension fund
Superannuation/employee pension schemes
Gratuity funds [Note Q(8)(ii)(b)]
Expenses on employee stock option scheme [Note A(VIII)(e)]
Staff welfare expenses
4828.91
4158.13
4356.11
3634.90
53.77
5.21
14.54
(10.98)
192.67
47.94
4.47
19.61
4.29
160.21
4611.32
74946.28
3871.42
67240.45
343
Notes forming part of the Consolidated Accounts (contd.)
NOTE [N]
Employee benefits expense
Particulars
Salaries, wages and bonus
Contribution to and provision for:
Provident fund and pension fund
Superannuation/employee pension schemes
Gratuity funds [Note Q(8)(ii)(b)]
Expenses on employee stock option scheme [Note A(VIII)(e)]
Employee medical & other insurance premium expenses [Note O(I)]
Staff welfare expenses
Recoveries on account of deputation charge
NOTE [O]
Sales, administration and other expenses
Particulars
Power and fuel [Note O(I)]
Packing and forwarding [Note O(I)]
Insurance [Note O(I)]
Rent [Note O(I)]
Rates and taxes [Note O(I)]
Travelling and conveyance [Note O(I)]
Repairs to buildings [Note O(I)]
General repairs and maintenance [Note O(I)]
Professional fees
Directors’ fees
Telephone, postage and telegrams
Advertising and publicity
Stationery and printing
Commission:
Distributors and agents
Employees and others
Bank charges
Discount on sales
Miscellaneous expenses [Note O(I)]
Bad debts and advances written off
Less: Allowances for doubtful debts and advances written back
Receivable discounting charges-non-recourse
Allowances for doubtful debts, advances and non-performing assets (net)
Provision/(reversal) for foreseeable losses on construction contracts
Provision/(reversal) for diminution in value of investments (net)
Exchange (gain)/loss
Provision/(reversal) for standard assets
Other provisions [Note Q(16)(a)]
344
2015-16
crore
crore
8006.37
2014-15
crore
crore
6822.42
186.65
57.45
101.75
178.06
26.15
105.40
2015-16
crore
235.90
6.49
394.03
14.86
345.85
62.67
109.90
839.72
(159.67)
9204.84
crore
123.06
186.56
109.45
520.22
160.16
631.25
21.50
417.63
586.46
3.21
218.10
187.96
75.36
242.39
128.73
45.29
686.62
379.17
12.63
778.91
77.82
77.92
170.24
97.29
208.75
6146.68
2014-15
crore
119.74
15.10
392.17
8.78
309.61
64.18
70.64
841.97
(48.93)
8059.89
crore
106.25
193.14
128.83
449.98
143.09
556.10
22.04
399.47
598.59
2.43
202.44
179.60
72.73
134.84
121.13
75.78
766.08
383.39
5.84
433.97
(19.34)
35.39
175.39
56.57
247.67
5471.40
Notes forming part of the Consolidated Accounts (contd.)
NOTE [O(I)] Aggregation of expenses disclosed vide notes M, N , O and P in respect of specific items is as follows:
Nature of expenses
2015-16
2014-15
Note M
Note N
Note O
Note P
Total
Note M Note N
Note O
Note P
Total
crore
Power and fuel
1212.81
Packing and forwarding
388.41
–
–
123.06
186.56
200.48
109.90
109.45
Insurance
Rent
Rates and taxes
517.81
347.28
Travelling and conveyance
1075.47
Repairs to buildings
21.52
–
–
–
–
–
–
–
1335.87
968.23
574.97
414.65
–
–
106.25
193.14
419.83
237.76
70.64
128.83
1038.03
408.08
507.44
254.37
1706.72
967.49
43.02
26.15
–
–
–
–
449.98
143.09
556.10
–
1074.48
–
–
–
–
607.79
437.23
858.06
397.46
–
1523.59
22.04
–
48.19
General repairs and
maintenance
376.03
–
417.63
–
793.66
352.05
–
399.47
–
751.52
Sr.
No.
1
2
3
4
5
6
7
8
–
–
–
–
520.22
160.16
631.25
21.50
–
–
–
13706.26
3871.42
7989.25
–
– 11860.67
3041.22
7870.13
4158.13
686.62
–
1947.58
1677.34
–
–
–
2840.05
6998.18
766.08
–
2443.42
9
Employee benefit expenses
4611.32
9094.94
10
Finance costs
4828.91
11 Miscellaneous expenses
1260.96
–
–
NOTE [P]
Finance costs
Particulars
Interest expenses
Other borrowing costs
Exchange loss (attributable to finance costs)
NOTE [Q]
Q(1) Basis of preparation
2015-16
crore
2841.98
33.00
166.24
3041.22
2014-15
crore
2664.40
25.59
150.06
2840.05
a)
The Consolidated Financial Statements (CFS) are prepared in accordance with Accounting Standard (AS) 21 “Consolidated
Financial Statements”, Accounting Standard (AS) 23 “Accounting for Investments in Associates in Consolidated Financial
Statements” and Accounting Standard (AS) 27 “Financial Reporting of Interests in Joint Ventures”, as specified in the
Companies (Accounting Standards) Rules, 2006 [Note R(1)]. The CFS comprises the financial statements of Larsen & Toubro
Limited (L&T), its subsidiaries, associates and joint ventures. Reference in these notes to L&T, Company, Parent Company,
Companies or Group shall mean to include Larsen & Toubro Limited or any of its subsidiaries, associates and joint ventures,
unless otherwise stated.
b)
The notes including significant policies to the CFS are intended to serve as a guide for better understanding of the Group’s
position. In this respect, the Company has disclosed such notes and policies which represent the required disclosure.
345
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Q(2) The list of subsidiaries, associates and joint ventures included in the Consolidated Financial Statements are as under:-
Name of subsidiary company
Sr.
No.
As at 31-3-2016
As at 31-3-2015
Country of
incorporation
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Domestic Subsidiaries
L&T Cutting Tools Limited
Bhilai Power Supply Company Limited
L&T-Sargent & Lundy Limited
Spectrum Infotech Private Limited
L&T-Valdel Engineering Limited
L&T Shipbuilding Limited
L&T Electricals and Automation Limited
Hi-Tech Rock Products & Aggregates Limited
L&T Seawoods Limited
L&T-Gulf Private Limited
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Raykal Aluminium Company Private Limited
L&T Natural Resources Limited @@
L&T Hydrocarbon Engineering Limited
L&T Special Steels and Heavy Forgings Private Limited
PNG Tollway Limited
Kesun Iron & Steel Company Private Limited
L&T Howden Private Limited
L&T Solar Limited @@
L&T Sapura Shipping Private Limited
L&T Sapura Offshore Private Limited
L&T PowerGen Limited @@
Ewac Alloys Limited
L&T Kobelco Machinery Private Limited
L&T Geostructure LLP
L&T Valves Limited
L&T Realty Limited
L&T Asian Realty Project LLP
L&T Parel Project LLP
Chennai Vision Developers Private Limited
L&T South City Projects Limited
L&T Vision Ventures Limited
CSJ Infrastructure Private Limited *
L&T Power Limited
L&T Cassidian Limited
L&T General Insurance Company Limited
L&T Aviation Services Private Limited
L&T Infocity Limited **
L&T Hitech City Limited **
Hyderabad International Trade Expositions Limited **
Larsen & Toubro Infotech Limited
GDA Technologies Limited
L&T Finance Holdings Limited
L&T Housing Finance Limited
Consumer Financial Services Limited
Family Credit Limited
L&T Finance Limited
L&T Capital Markets Limited
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
346
100.00
99.90
50.0001
100.00
100.00
97.00
100.00
100.00
100.00
50.0002
51.00
51.00
75.50
–
100.00
74.00
72.11
95.00
50.10
–
60.00
60.00
–
100.00
51.00
74.00
100.00
100.00
100.00
100.00
100.00
51.00
68.00
–
99.99
74.00
100.00
100.00
–
–
–
94.96
94.96
66.71
66.71
66.71
66.71
66.71
66.71
100.00
99.90
50.0001
100.00
100.00
97.00
100.00
100.00
100.00
50.0002
51.00
51.00
75.50
–
100.00
74.00
72.11
95.00
50.10
–
60.00
60.00
–
100.00
51.00
74.00
100.00
100.00
100.00
100.00
100.00
51.00
68.00
–
99.99
74.00
100.00
100.00
–
–
–
94.96
94.96
66.71
66.71
66.71
66.71
66.71
66.71
100.00
99.90
50.0001
100.00
100.00
97.00
100.00
100.00
100.00
50.0002
51.00
51.00
75.50
100.00
100.00
74.00
72.77
95.00
50.10
100.00
60.00
60.00
100.00
100.00
51.00
74.00
100.00
100.00
50.00
100.00
100.00
51.00
68.00
100.00
99.99
74.00
100.00
100.00
89.00
65.86
51.72
100.00
100.00
72.95
72.95
72.95
72.95
72.95
72.95
100.00
99.90
50.0001
100.00
100.00
97.00
100.00
100.00
100.00
50.0002
51.00
51.00
75.50
100.00
100.00
74.00
72.77
95.00
50.10
100.00
60.00
60.00
100.00
100.00
51.00
74.00
100.00
100.00
55.00
100.00
100.00
51.00
68.00
100.00
99.99
74.00
100.00
100.00
89.00
65.86
51.72
100.00
100.00
72.95
72.95
72.95
72.95
72.95
72.95
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of subsidiary company
Sr.
No.
Country of
incorporation
L&T Investment Management Limited
L&T Mutual Fund Trustee Limited
L&T FinCorp Limited
L&T Infrastructure Finance Company Limited
L&T Infra Debt Fund Limited
L&T Infra Investment Partners Advisory Private Limited
L&T Infra Investment Partners Trustee Private Limited
L&T Vrindavan Properties Limited
L&T Access Distribution Services Limited
50
51
52
53
54
55
56
57
58
59 Mudit Cement Private Limited
L&T Capital Company Limited
60
L&T Trustee Company Private Limited
61
L&T Power Development Limited
62
L&T Uttaranchal Hydropower Limited
63
L&T Arunachal Hydropower Limited
64
L&T Himachal Hydropower Limited
65
Nabha Power Limited
66
L&T Infrastructure Development Projects Limited
67
L&T Panipat Elevated Corridor Limited
68
L&T Krishnagiri Thopur Toll Road Limited
69
L&T Western Andhra Tollways Limited
70
L&T Vadodara Bharuch Tollway Limited
71
L&T Transportation Infrastructure Limited
72
L&T Western India Tollbridge Limited
73
L&T Interstate Road Corridor Limited
74
L&T Port Kachchigarh Limited
75
L&T Ahmedabad-Maliya Tollway Limited
76
L&T Halol-Shamlaji Tollway Limited
77
L&T Krishnagiri Walajahpet Tollway Limited
78
L&T Devihalli Hassan Tollway Limited
79
L&T Metro Rail (Hyderabad) Limited
80
L&T Chennai-Tada Tollway Limited
81
L&T BPP Tollway Limited
82
L&T Rajkot-Vadinar Tollway Limited
83
L&T Deccan Tollways Limited
84
L&T Samakhiali Gandhidham Tollway Limited
85
Kudgi Transmission Limited
86
L&T Sambalpur-Rourkela Tollway Limited
87
L&T Technology Services Limited
88
L&T Construction Equipment Limited
89
L&T Infrastructure Engineering Limited
90
L&T Thales Technology Services Private Limited
91
92
Information Systems Resource Centre Private Limited @
93 Marine Infrastructure Developer Private Limited ^
94
* The Group sold its stake on November 16, 2015
** The Group sold its stake on March 31, 2016
@ The subsidiary is merged with Larsen & Toubro Infotech Limited w.e.f. October 17, 2014
@@ The subsidiary is merged with L&T Capital Company Limited w.e.f. April 1, 2015
^ The company is incorporated on January 22, 2016
^^ The company is incorporated on August 17, 2015
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
LTH Milcom Private Limited ^^
As at 31-3-2016
As at 31-3-2015
Proportion
of ownership
interest (%)
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.45
97.45
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.48
97.45
97.45
97.45
97.45
97.45
97.45
97.45
100.00
100.00
100.00
74.00
–
100.00
56.67
Proportion of
voting power
held (%)
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.45
97.45
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.48
97.45
97.45
97.45
97.45
97.45
97.45
97.45
100.00
100.00
100.00
74.00
–
100.00
56.67
Proportion
of ownership
interest (%)
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.45
97.45
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.48
97.45
97.45
97.45
97.45
97.45
97.45
97.45
100.00
100.00
100.00
74.00
100.00
–
–
Proportion of
voting power
held (%)
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.45
97.45
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.48
97.45
97.45
97.45
97.45
97.45
97.45
97.45
100.00
100.00
100.00
74.00
100.00
–
–
347
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of subsidiary company
Sr.
No.
As at 31-3-2016
As at 31-3-2015
Country of
incorporation
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Foreign subsidiaries
Larsen & Toubro LLC
Larsen & Toubro Infotech GmbH
Larsen & Toubro Infotech Canada Limited
Larsen & Toubro Infotech LLC
L&T Infotech Financial Services Technologies Inc.
USA
Germany
Canada
USA
Canada
Larsen & Toubro Infotech South Africa (PTY) Limited
South Africa
L&T Information Technology Services (Shanghai) Co. Ltd.
China
L&T Infrastructure Development Projects Lanka (Private)
Sri Lanka
Limited
L&T IDPL Trustee Manager Pte Ltd.
L&T Realty FZE
Larsen & Toubro International FZE
Larsen & Toubro Hydrocarbon International Limited LLC
Thalest Limited
Servowatch Systems Limited
Larsen & Toubro (Oman) LLC
16
Larsen & Toubro Electromech LLC
17
L&T Modular Fabrication Yard LLC
Larsen & Toubro (East Asia) Sdn.Bhd. ##
Larsen & Toubro Qatar LLC ##
L&T Overseas Projects Nigeria Limited
Singapore
UAE
UAE
Kindgom of Saudi
Arabia
UK
UK
Sultanate of
Oman
Sultanate of
Oman
Sultanate of
Oman
Malaysia
Qatar
Nigeria
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
18
19
20
21
22
100.00
100.00
94.96
94.96
94.96
94.96
71.12
94.96
93.48
97.45
100.00
100.00
100.00
100.00
100.00
65.00
65.00
65.00
30.00
49.00
100.00
95.00
100.00
94.96
94.96
94.96
94.96
71.12
94.96
93.48
97.45
100.00
100.00
100.00
100.00
100.00
65.00
65.00
65.00
100.00
100.00
100.00
95.00
100.00
100.00
100.00
100.00
100.00
100.00
74.90
100.00
93.47
97.45
100.00
100.00
100.00
100.00
100.00
65.00
100.00
100.00
100.00
100.00
100.00
74.90
100.00
93.47
97.45
100.00
100.00
100.00
100.00
100.00
65.00
65.00
65.00
65.00
65.00
30.00
49.00
100.00
95.00
75.00
100.00
100.00
100.00
95.00
75.00
PT Larsen & Toubro Hydrocarbon Engineering Indonesia
Indonesia
L&T Electricals & Automation Saudi Arabia Company LLC
Kindgom of Saudi
Arabia
23
Larsen & Toubro Kuwait Construction General Contracting
Kuwait
49.00
75.00
49.00
75.00
Company, WLL ##
24
Larsen & Toubro Readymix & Asphalt Concrete Industries
UAE
49.00
100.00
49.00
100.00
LLC ##
25
Larsen & Toubro Saudi Arabia LLC
26
Larsen Toubro Arabia LLC
27
Larsen & Toubro ATCO Saudia LLC ##
28
29
30
Tamco Switchgear (Malaysia) Sdn. Bhd.
Henikwon Corporation Sdn. Bhd.
Tamco Electrical Industries Australia Pty Ltd.
348
Kindgom of Saudi
Arabia
Kindgom of Saudi
Arabia
Kindgom of Saudi
Arabia
Malaysia
Malaysia
Australia
100.00
100.00
100.00
100.00
75.00
75.00
100.00
100.00
100.00
75.00
75.00
100.00
100.00
100.00
75.00
75.00
75.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Sr.
No.
31
32
33
34
35
36
37
38
39
40
41
Name of subsidiary company
PT Tamco Indonesia
Larsen & Toubro Heavy Engineering LLC
L&T Electrical & Automation FZE
Kana Controls General Trading & Contracting Company
W.L.L. ##
Larsen & Toubro Consultoria E Projeto Ltda *
Larsen & Toubro T&D SA (Proprietary) Limited
L&T Technology Services LLC
Larsen &Toubro (Qingdao) Rubber Machinery Company
Limited **
L&T Infotech Austria GmbH LLC ^
L&T Global Holdings Limited ^^
L&T Information Technology Spain SL $
Country of
incorporation
Indonesia
Sultanate of
Oman
UAE
Kuwait
Brazil
South Africa
USA
Peoples Republic
of China
Austria
UAE
Spain
As at 31-3-2016
As at 31-3-2015
Proportion
of ownership
interest (%)
100.00
Proportion of
voting power
held (%)
100.00
Proportion
of ownership
interest (%)
100.00
Proportion of
voting power
held (%)
100.00
70.00
70.00
70.00
70.00
100.00
49.00
–
72.50
100.00
–
94.96
100.00
94.96
100.00
100.00
–
72.50
100.00
–
94.96
100.00
94.96
100.00
49.00
100.00
72.50
100.00
100.00
–
–
–
100.00
100.00
100.00
72.50
100.00
100.00
–
–
–
## The Parent Company, together with its subsidiaries controls the composition of Board of Directors
* The company is dissolved on November 6, 2015
** The company is dissolved on June 9, 2015
^ The company is incorporated on June 18, 2015
^^ The company is incorporated on February 24, 2016
$ The company is incorporated on February 1, 2016
Name of associate company
Sr.
No.
Country of
incorporation
L&T-Chiyoda Limited
Gujarat Leather Industries Limited @
International Seaports (Haldia) Private Limited
Vizag IT Park Limited *
Salzer Electronics Limited **
Larsen & Toubro Qatar & HBK Contracting LLC
L&T Camp Facilities LLC
Feedback Infra Private Limited
JSK Electricals Private Limited #
Rishi Consfab Private Limited $
1
2
3
4
5
6
7
8
9
10
11 Magtorq Private Limited
12
Grameen Capital India Limited ^
India
India
India
India
India
Qatar
UAE
India
India
India
India
India
As at 31-3-2016
As at 31-3-2015
Proportion
of ownership
interest (%)
50.00
50.00
21.74
–
–
50.00
49.00
15.74
–
–
42.85
23.87
Proportion of
voting power
held (%)
50.00
50.00
21.74
–
–
50.00
49.00
15.74
–
–
42.85
23.87
Proportion
of ownership
interest (%)
50.00
50.00
21.74
23.14
26.06
50.00
49.00
16.89
26.00
26.00
42.85
–
Proportion of
voting power
held (%)
50.00
50.00
21.74
23.14
26.06
50.00
49.00
16.89
26.00
26.00
42.85
–
@ The company is under liquidation
^ The group has acquired stake in July, 2015. Investment in the associate company has been accounted in accordance with Accounting Standard (AS)
13, “Accounting for Investments” and not as per Accounting Standard (AS) 23, “Accounting for Investments in Associates in Consolidated Financial
Statements”, as the associate company operates under severe long term restrictions that significantly impair its ability to transfer funds to the
Company.
* The Group has sold its stake on March 31, 2016
** The Group has sold its stake in July and August 2015
# The Group has sold its stake on March 29, 2016
$ The Group has sold its stake on December 21, 2015
349
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of joint venture
Sr.
No.
Country of
incorporation
As at 31-3-2016
Proportion
of ownership
interest (%)
As at 31-3-2015
Proportion of
ownership
interest (%)
65.00
26.00
49.00
43.00
26.00
90.00
51.00
75.00
60.00
50.00
68.00
60.00
50.00
55.00
50.00
50.00
65.00
50.00
29.00
22.00
60.00
75.00
82.30
65.00
26.00
49.00
43.00
26.00
90.00
51.00
75.00
60.00
50.00
68.00
60.00
50.00
55.00
–
–
65.00
50.00
29.00
22.00
60.00
–
–
1
2
3
4
5
6
7
8
9
10
11
12 a)
12 b)
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Jointly controlled entities - Indian joint ventures
L&T-AM Tapovan Joint Venture
International Metro Civil Contractors Joint Venture
Desbuild-L&T Joint Venture
HCC-L&T Purulia Joint Venture
Metro Tunneling Group
L&T-Hochtief Seabird Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation Joint Venture
Metro Tunneling Chennai-L&T Shanghai Urban Construction (Group) Corporation
Joint Venture
Metro Tunneling Delhi-L&T Shanghai Urban Construction (Group) Corporation Joint
Venture
Larsen and Toubro Limited-Shapoorji Pallonji & Co. Ltd. Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation Joint Venture CC27 Delhi
Larsen and Toubro Limited-Scomi Engineering BHD Consortium-Residual Joint Works
Joint Venture
Larsen and Toubro Limited-Scomi Engineering BHD Consortium-O&M Joint Venture
Larsen & Toubro Limited & NCC Limited Joint Venture
Bauer-L&T Geo Joint Venture *
DAEWOO and L&T Joint Venture **
Jointly controlled entities - Foreign joint ventures
L&T-Eastern Joint Venture @
Indiran Engineering Projects and Systems Kish PJSC
Civil Works Joint Venture
Aktor- Larsen & Toubro-Yapi Merkezi-STFA-Al Jaber Engineering Joint Venture
L&T-Delma Mafraq Joint Venture
L&T-AL-Sraiya LRDP 6 Joint Venture $
PESB and Larsen & Toubro Joint Venture $$
Jointly controlled operations - Indian joint ventures
L&T Sojitz Consortium
L&T-KBL (UJV) Hyderabad
Patel–L&T Consortium
L&T-SVEC Joint Venture
L&T–KBL – MAYTAS Joint Venture
Larsen and Toubro Limited & Bharat Rail Automation Pvt. Ltd. Joint Venture (part 2)
Larsen and Toubro Limited & Bharat Rail Automation Pvt. Ltd. Joint Venture (part 3)
IIS - L&T Consortium
L&T and Scomi Engineering BHD. Joint Venture
Consortium of L&T Hydrocarbon Engineering Limited & Toyo Engineering Company
Consortium of L&T Hydrocarbon Engineering Limited and Pipavav Defence &
Offshore Engineering Company
@ The joint venture is in process of liquidation
* The joint venture has been entered into on January 16, 2015
** The joint venture has been entered into on November 7, 2015
$ The joint venture has been entered into on August 30, 2015
$$ The joint venture has been entered into on April 29, 2015
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
UAE
Iran
Kingdom of Saudi
Arabia
Qatar
UAE
Qatar
Malaysia
India
India
India
India
India
India
India
India
India
India
Q(3) Reserves and Surplus shown in the Consolidated Balance Sheet include the Group’s share in the respective reserves of subsidiaries
and proportionate reserves of joint ventures. Reserves attributable to minority stakeholders are reported as part of minority interest
in the Consolidated Balance Sheet. Retained earnings comprise Group’s share in general reserve and Statement of Profit and Loss.
350
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Q(4) Exceptional items [Note R(5)]:
a.
b.
c.
d.
Profit on divestment of the Group’s part stake in a subsidiary 263.89 crore (previous year: 203.81 crore)
Profit on divestment of the Group’s stake in an associate company 45.69 crore (previous year: Nil)
Profit on sale of Foundry Business Unit 48.52 crore (previous year: Nil)
Exceptional items for the previous year ended March 31, 2015 included profit on sale of shares held as equity investment by a
subsidiary 143.89 crore
Q(5) The expenditure on research and development activities recognised as expense in the Statement of Profit and Loss is 187.33 crore
(previous year: 165.07 crore). Further, the Company has incurred capital expenditure on research and development activities as
follows:
a)
on tangible assets 5.68 crore (previous year: 7.41 crore)
b) on intangible assets being expenditure on new product development 48.19 (previous year: 56.93 crore) [Note R(6)(b)] and
c)
on other intangible assets 6.80 crore (previous year: 5.79 crore)
Q(6) a)
Provision for current tax includes:
i)
Provision for income tax in respect of earlier years 48.98 crore (net loss) [previous year: 0.06 crore (net gain)]
ii) Credit for Minimum Alternate Tax (MAT) entitlement 198.25 crore (previous year: 96.76 crore) under section 115JB
of the Income Tax Act, 1961
iii) Translation effect on account of non-integral foreign operation 0.66 crore (net gain) [previous year: 0.10 crore (net
loss)]
b)
Tax effect of 0.13 crore (previous year: 9.29 crore) on account of debenture/share/foreign currency convertible bond issue
expenses and premium on inflation linked debentures has been credited to securities premium account.
Q(7) (a) Disclosures pursuant to Accounting Standard (AS) 7 (Revised) “Construction Contracts”:
Particulars
i)
ii)
iii)
Contract revenue recognised for the financial year [Note K]
Aggregate amount of contract costs incurred and recognised profits (less recognised
losses*) as at the end of the financial year for all contracts in progress as at that date
Amount of customer advances outstanding for contracts in progress as at the end of the
financial year
iv)
Retention amounts by customers for contracts in progress as at the end of the financial year
*Includes provision for foreseeable loss - 288.89 crore (previous year: 212.32 crore)
2015-16
68620.17
crore
2014-15
60702.03
256239.21
222933.58
26600.83
9206.14
12432.59
6431.24
(b) As part of periodic review of estimates used in determining cost of completion of projects, the Company revised certain
estimates used in civil construction jobs under execution as on March 31, 2016. As a result, the revenue and profit before tax
for the year increased by 395.73 crore.
(c) Disclosures pursuant to Guidance Note on Accounting for Real Estate Transactions (Revised 2012) issued by the Institute of
Chartered Accountants of India
Particulars
i)
ii)
iii)
iv)
v)
Amount of project revenue recognised for the financial year [Note K]
Aggregate amount of costs incurred and profits recognised as at the end of the financial year
Amount of customer advances received
Amount of work-in-progress and the value of inventories [Note H(II)]
Excess of revenue recognised over actual bills raised (unbilled revenue) [Note H(VI)]
2015-16
1444.76
4005.78
60.27
1526.41
178.64
crore
2014-15
1559.17
2510.94
62.86
2303.20
129.88
Q(8) Disclosure pursuant to Accounting Standard (AS) 15 (Revised) “Employee Benefits”
i.
Defined contribution plans: [Note R(7)(b)(i)] Amount of 158.25 crore (previous year: 110.69 crore) is recognised as an
expense. Out of above, 156.49 crore (previous year: 109.27 crore) is included in “employee benefits expense” [Note N] in
the Statement of Profit and Loss and 1.76 crore (previous year: 1.42 crore) is included in capital work-in-progress.
351
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
ii. Defined benefit plans: [Note R(7)(b)(ii)]
a)
The amounts recognised in Balance Sheet are as follows:
crore
Particulars
Gratuity plan
Post-retirement
medical benefit plan
Company pension
plan
Trust-managed
provident fund plan
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
A) Present value of defined benefit
obligation
– Wholly funded
– Wholly unfunded
Less: Fair value of plan assets
Less: Unrecognised past service costs
Add: Amount not recognised as an
asset (limit in para 59(b))
Amount to be recognised as liability
or (asset)
Amounts reflected in the Balance
Sheet
B)
626.08
145.00
771.08
572.93
–
4.76
595.41
143.90
739.31
518.60
–
4.33
–
193.31
193.31
–
0.82
–
–
181.08
181.08
–
0.96
–
–
287.56
287.56
–
39.66
–
– 3083.59
221.47
12.19
221.47 3095.78
– 3102.10
–
10.48
0.30
–
2799.77
30.89
2830.66
2811.65
–
–
202.91
225.04
192.49
180.12
247.90
221.17
4.16
19.01
Liabilities
Assets
Net liability/(asset)
Net liability/(asset) - current
Net liability/(asset) - non-current
202.91
–
202.91
202.91
–
225.04
–
225.04
225.04
–
192.49
–
192.49
17.22
175.27
180.12
–
180.12
14.59
165.53
247.90
–
247.90
16.82
231.08
221.17
–
221.17
13.47
207.70
4.16
–
4.16
3.55
0.61
b)
The amounts recognised in Statement of Profit and Loss are as follows:
19.01
–
19.01
8.58
10.43
crore
Particulars
Gratuity plan
Post-retirement medical
benefit plan
Company pension plan
Trust-managed provident
fund plan
Current service cost
Interest cost
Expected (return) on plan assets
Actuarial losses/(gains)
Past service cost
Effect of any curtailment or settlement
Adjustment for earlier years
Business Combination
Actuarial gain/(loss) not recognised in books
1
2
3
4
5
6
7
8
9
10 Translation adjustments
11 Amount capitalised out of the above
I
II
Total (1 to 11)
Amount included in “employee benefits
expense”
Amount included as part of “manufacturing
construction and operating expenses”
Amount included as part of “finance cost”
III
IV Amount capitalised on new product
development
Total (I+II+III+IV)
Actual return on plan assets
352
31-3-2016 31-3-2015 31-3-2016 31-3-2015 31-3-2016 31-3-2015 31-3-2016 31-3-2015
180.76$
201.44
(202.50)
(24.99)
–
–
–
–
0.10
–
–
154.81
88.08
131.96
237.71
(239.08)
(34.37)
–
–
–
–
35.43
–
–
131.65
105.94
85.42
44.58
(33.00)
36.39
0.53
–
–
(0.89)
2.14
(0.30)
(0.60)
134.27
105.40
111.43
48.16
(36.63)
(2.83)
0.06
–
(0.16)
(0.53)
0.53
(0.34)
(0.93)
118.76
101.75
10.42
12.20
–
38.80
0.14
–
–
–
–
–
–
61.56
23.18
1.58
16.83
–
29.25
0.11
–
–
–
–
–
–
47.77
1.82
14.86
14.91
–
(9.30)
0.14
–
–
–
–
–
–
20.61
4.56
4.61
16.90
–
10.33
10.22
–
–
–
–
–
–
42.06
26.15
14.54
19.61
–
–
–
–
25.71
19.00
2.36
0.11
9.25
0.01
118.76
48.99
134.27
66.00
16.05
–
20.61
–
38.38
–
61.56
–
15.91
–
42.06
–
45.95
–
47.77
–
–
–
47.73
–
131.65
258.42
154.81
210.50
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
c) The changes in the present value of defined benefit obligation representing reconciliation of opening and closing
balances thereof are as follows:
Particulars
Opening balance of the present value of
defined benefit obligation
Add: Current service cost
Add: Interest cost
Add: Contribution by plan participants
i)
ii)
iii)
Employer
Employee
Transfer-in/(out)
Add/(less): Actuarial losses/(gains)
Less: Benefits paid
Add: Past service cost
Add: Liabilities assumed on transfer of
employees
Add: Business combination/acquisition
Add: Adjustment for earlier years
Add/(less): Translation adjustments
Closing balance of the present value of
defined benefit obligation
Gratuity plan
Post-retirement
medical benefit plan
Company pension
plan
Trust-managed
provident fund plan
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
As at
31-3-2016
As at
31-3-2015
crore
739.31
111.43
48.16
583.41
85.42
44.58
181.09
14.86
14.91
126.93
10.42
12.19
221.47
4.61
16.90
188.93 2830.66
2465.71
1.58 131.96 $ 180.76 $
201.44
16.82 237.71
–
–
–
9.54
(143.75)
0.16
–
–
–
69.27
(45.28)
0.53
0.51
(1.19)
1.40
5.51
0.39
0.33
–
0.66
–
–
–
(9.30)
(8.25)
–
–
–
–
–
–
–
–
38.80
(7.12)
–
(0.14)
–
–
–
–
–
–
10.33
(15.32)
49.57
–
–
– 313.24
–
–
29.25 (17.60)
(15.11) (388.17)
–
–
–
350.52
–
(22.25)
(343.40)
–
–
–
–
–
– (11.19)
–
–
(0.83)
–
–
–
(2.12)
–
–
–
771.08
739.31
193.31
181.08
287.56
221.47 3095.78
2830.66
d) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as
follows:
crore
Particulars
Gratuity plan
As at
31-3-2016
518.60
36.63
12.36
147.93
–
–
(143.75)
(0.20)
1.36
572.93
As at
31-3-2015
456.76
33.00
32.99
36.94
–
–
(42.14)
0.82
0.23
518.60
Trust-managed provident
fund plan
As at
31-3-2016
2811.65
239.08
19.34
124.91
–
309.27
(396.03)
12.05
(18.17)
3102.10
As at
31-3-2015
2444.74
202.50
8.00
158.75
–
322.15
(324.49)
–
–
2811.65
Opening balance of the fair value of the plan assets
Add: Expected return on plan assets*
Add/(Less): Actuarial gains/(losses)
Add: Contribution by the employer
Add/(less): Transfer in/(out)
Add: Contribution by plan participants
Less: Benefits paid
Add: Business combination/disposal (net)
Add: Adjustment for earlier years
Closing balance of the plan assets
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.
*
Basis used to determine the overall expected return:
The trust formed by the Company manages the investments of provident funds and gratuity fund. Expected return
on plan assets is determined based on the assessment made at the beginning of the year on the return expected
on its existing portfolio, along with the estimated increment to the plan assets and expected yield on the respective
assets in the portfolio during the year. [Note 10(ii)(f)(7)] infra.
The Company expects to fund 66.85 crore (previous year: 91.43 crore) towards its gratuity plan and
145.15 crore (previous year: 198.84 crore) towards its trust-managed provident fund plan during the year
2015-16.
Employer’s and employees’ contribution paid in advance
Employer’s contribution to provident fund
#
$
353
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
e)
The major categories of plan assets as a percentage of total plan assets are as follows:
Particulars
Government of India securities
State government securities
Corporate bonds
Equity shares of listed companies
Fixed deposits under special deposit scheme framed by
central government for provident funds
Insurer managed funds
Public sector unit bonds
Others
Gratuity plan
Trust-managed provident fund
plan
As at
31-3-2016
23%
18%
34%
2%
As at
31-3-2015
31%
11%
30%
2%
As at
31-3-2016
25%
16%
9%
–
As at
31-3-2015
24%
15%
8%
–
–
–
14%
9%
–
1%
17%
8%
9%
–
39%
1%
10%
–
42%
1%
f)
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
1
2
3
4
Discount rate:
a) Gratuity plan
b) Company pension plan
c) Post-retirement medical benefit plan
Expected return on plan assets:
Annual increase in healthcare costs (see Note 8 below)
Salary Growth rate:
a) Gratuity plan
b) Company pension plan
5. Attrition Rate:
As at
31-3-2016
As at
31-3-2015
7.79%
7.79%
7.79%
7.50%
5.00%
5.00%
6.00%
7.83%
7.83%
7.83%
7.50%
5.00%
5.00%
6.00%
a)
For post-retirement medical benefit plan & Company pension plan, the attrition rate varies from 2% to 8%
(previous year: 2% to 8%) for various age groups.
b)
For gratuity plan the attrition rate varies from 1% to 6% (previous year: 1% to 6%) 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 the employment market.
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 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 above, has been assumed to
increase at 5% p.a.
6.
7.
8.
9. A one percentage point change in assumed healthcare cost trend rates would have the following effects on the
aggregate of the service cost and interest cost and defined benefit obligation:
Particulars
Effect of 1% increase
Effect of 1% decrease
2015-16
2014-15
2015-16
2014-15
Effect on the aggregate of the service cost and
interest cost
Effect on defined benefit obligation
5.83
25.94
5.54
23.88
(4.30)
(19.61)
(4.27)
(18.94)
crore
354
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
g)
The amounts pertaining to defined benefit plans are as follows:
1
2
3
4
Particulars
As at
31-3-2016
As at
31-3-2015
As at
31-3-2014
As at
31-3-2013
As at
31-3-2012
Post-retirement medical benefit plan (unfunded)
Defined benefit obligation
Experience adjustment plan liabilities
192.49
(6.69)
180.12
12.60
125.82
14.76
117.70
0.69
92.64
(6.62)
crore
Gratuity plan (funded/unfunded)
Defined benefit obligation
Plan assets
Surplus/(deficit)
Experience adjustment plan liabilities
Experience adjustment plan assets
Post-retirement pension plan (unfunded)
Defined benefit obligation
Experience adjustment plan liabilities
Trust managed provident fund plan (funded)
Defined benefit obligation
Plan assets
Surplus/(deficit)
771.08
572.93
(198.15)
4.18
7.11
739.31
518.60
(220.71)
19.88
34.41
558.11
456.76
(101.35)
1.42
(8.11)
512.49
382.83
(133.64)
26.18
(13.96)
432.29
322.04
(110.39)
30.18
(0.19)
247.90
11.45
221.17
5.13
188.52
(0.22)
198.36
(2.79)
184.03
23.21
3095.78
3102.10
(4.16)
2830.66
2811.65
(19.01)
2465.71
2444.74
(20.97)
2058.91
2027.93
(30.98)
1833.45
1791.04
(42.41)
h) General descriptions of defined benefit plans:
1. Gratuity plan:
The Company operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent
to fifteen days salary last 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 favourable as compared to the obligation under Payment of Gratuity Act, 1972. A small part of the gratuity
plan, which is not material is unfunded and managed within the Company. The unfunded obligation towards
gratuity also includes gratuity payable to employees outside India under the applicable local laws.
2.
Post-retirement medical care plan:
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.
3. Company’s pension plan:
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.
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 Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by employer
and employees and 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 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 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. Further, an amount of 9.87 crore (previous year: provision of 28.80 crore)
has been reversed based on actuarial valuation towards the future obligation arising out of interest rate guarantee
associated with the plan.
355
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Q(9) Disclosure pursuant to Accounting Standard (AS) 17 ‘’Segment Reporting’’
a)
Primary segments (business segments)
Particulars
REVENUE
Infrastructure
Power
Metallurgical and Material Handling
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Elimination
Total Revenue
RESULT
Infrastructure
Power
Metallurgical and Material Handling
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Total Segment
Inter segment margin on capital jobs
Unallocated corporate income/(expenditure)(net)
Operating Profit (PBIT)
Interest expenses
Interest income
Profit before tax(PBT) (before extraordinary
items)
Profit from extra ordinary items
Profit before tax(PBT) (after extraordinary
items)
Provision for current tax
Provision for deferred tax
Profit after tax
Additional tax on dividend distributed/proposed by
subsidiary companies
Share in profit/(loss) of associate companies
Minority interest in (income)/losses
Profit after tax, minority interest and share
in profit of associates
356
For the year ended 31-3-2016
Inter-segment
External
For the year ended 31-3-2015
Total
External Inter-segment
Total
crore
48797.10
6992.85
2414.66
3123.80
4960.84
8786.55
8955.92
7540.08
5137.32
6813.11
–
103522.23
1589.77
17.83
422.33
199.40
485.48
53.23
160.70
1.08
8.78
321.61
(3260.21)
–
50386.87
7010.68
2836.99
3323.20
5446.32
8839.78
9116.62
7541.16
5146.10
7134.72
(3260.21)
103522.23
43426.31
4738.49
3181.77
3459.34
5060.81
7351.41
7588.63
6393.07
5148.03
6413.80
–
92761.66
1428.10
17.43
244.73
164.44
398.81
80.11
65.78
7.43
7.38
251.14
(2665.35)
–
5274.05
580.58
40.11
(192.03)
498.90
(15.43)
1698.25
1028.46
621.88
1130.08
10664.85
(68.86)
10595.99
113.64
10709.63
(3041.22)
418.24
8086.65
–
8086.65
(2764.19)
215.71
5538.17
(0.18)
(2.51)
(444.95)
5090.53
44854.41
4755.92
3426.50
3623.78
5459.62
7431.52
7654.41
6400.50
5155.41
6664.94
(2665.35)
92761.66
4247.26
539.48
238.98
227.00
549.23
(1342.80)
1316.46
1015.84
1674.40
1192.13
9657.98
(63.07)
9594.91
57.65
9652.56
(2840.05)
404.73
7217.24
–
7217.24
(2661.91)
408.67
4964.00
–
2.14
(201.32)
4764.82
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Other information
Infrastructure
Power
Metallurgical & Material Handling
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Unallocable corporate assets/liabilities
Total assets/liabilities
Other information
Infrastructure
Power
Metallurgical & Material Handling
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
(b) Secondary segments (geographical segments)
Segment assets
Segment liabilities
crore
As at
31-3-2016
48366.19
9905.93
5227.02
6960.42
4607.25
6609.29
4926.99
63365.38
52972.79
14274.37
217215.63
10309.09
227524.72
As at
31-3-2015
39552.78
8329.70
4966.66
6986.53
4792.55
6670.56
4660.58
52561.84
40436.86
14951.80
183909.86
9895.77
193805.63
As at
31-3-2016
30265.13
7105.18
2035.53
3730.87
1750.93
4572.61
1784.74
55227.64
21912.37
4851.72
133236.72
43527.49
176764.21
As at
31-3-2015
25407.53
6280.23
1738.63
2872.09
1906.94
4400.50
1284.04
44822.09
13390.88
4166.86
106269.79
41628.15
147897.94
crore
Capital Expenditure
For the year
ended
31-3-2016
874.55
96.72
10.45
73.23
187.98
41.01
256.70
137.04
12142.03
1408.22
For the year
ended
31-3-2015
439.27
68.23
64.38
127.93
269.28
129.29
281.20
117.00
5202.18
615.71
Depreciation,
amortisation, impairment
& obsolescence included
in segment expenses
For the year
ended
31-3-2016
479.28
230.78
89.72
171.17
146.93
212.88
239.71
114.21
744.93
223.37
For the year
ended
31-3-2015
607.22
218.72
93.01
191.04
160.77
214.62
231.66
110.00
472.51
223.21
Non-cash expenses
other than depreciation
included in segment
expenses
For the year
ended
31-3-2016
19.22
4.92
3.19
2.79
4.09
4.18
–
1.33
–
1.83
For the year
ended
31-3-2015
21.52
7.14
4.05
3.35
4.37
5.73
–
0.92
–
2.09
crore
Particulars
External revenue by location of customers
Carrying amount of segment assets by location
of assets
Domestic
Overseas
Total
For the year
ended
31-3-2016
70220.17
192306.88
For the year
ended
31-3-2015
66835.47
164851.54
For the year
ended
31-3-2016
33302.06
24908.75
For the year
ended
31-3-2015
25926.19
19058.32
For the year
ended
31-3-2016
103522.23
217215.63
For the year
ended
31-3-2015
92761.66
183909.86
Cost incurred on acquisition of tangible and
14668.27
6733.23
559.67
581.25
15227.94
7314.48
intangible fixed assets
357
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
(c) Segment reporting: segment identification, reportable segments and definition of each reportable segment:
i)
Primary/secondary segment reporting format:
a]
The risk-return profile of the Company’s business is determined predominantly by the nature of its products
and services. Accordingly, the business segments constitute the primary segments for disclosure of segment
information.
b]
In respect of secondary segment information, the Company has identified its geographical segments as (i) domestic
and (ii) overseas. The secondary segment information has been disclosed accordingly.
ii)
Segment identification
Business segments have been identified on the basis of the nature of products/services, the risk-return profile of
individual businesses, the organisational structure and the internal reporting system of the Company.
ii) Reportable segments
Reportable segments have been identified as per the criteria specified in Accounting Standard (AS) 17 “Segment
Reporting”.
iv) Segment composition
•
•
Infrastructure segment comprises engineering and construction of building and factories, transportation
infrastructure, heavy civil infrastructure, power transmission & distribution and water, smart world and
communication projects.
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.
• Metallurgical & Material Handling segment comprises turnkey solutions for ferrous (iron & steel making) and
non-ferrous (aluminium, copper, lead & zinc) metal industries, bulk material & ash handling systems in power, port,
steel and mining sector including manufacture and sale of industrial machinery and equipment.
•
•
•
•
•
•
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, thermal &
nuclear power, aerospace and defence.
Electrical & Automation segment comprises manufacture and sale of low and medium voltage switchgear
components, custom built low and medium voltage switchboards, electronic energy meters/protection (relays)
systems, control & automation products. Electrical & Automation also included medical equipment business in the
previous year (upto the date of sale).
Hydrocarbon segment comprises complete EPC solutions for the global Oil & Gas Industry from front-end design
through detailed engineering, modular fabrication, procurement, project management, construction, installation
and commissioning.
IT & Technology Services segment comprises information technology and integrated engineering services.
Financial Services segment comprises retail and corporate finance, housing finance, infrastructure finance,
general insurance, asset management of mutual fund schemes and related advisory services.
Developmental projects segment comprises development, operation and maintenance of basic infrastructure
projects, toll collection including annuity based projects, power development, development and operation of port
facilities and providing related advisory services.
• Others segment includes realty, shipbuilding, manufacture and sale of industrial valves, welding and cutting
equipment, 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 & castings,
ready-mix concrete, asphalt & paving materials, mining and aviation.
358
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Q(10) Disclosure of related parties/related party transactions pursuant to Accounting Standard (AS) 18 ‘’Related Party Disclosures’’:
i.
Names of the related parties with whom transactions were carried out during the year and description of relationship:
Associate companies:
1 L&T-Chiyoda Limited
3 Magtorq Private Limited
5 Vizag IT Park Limited **
7 International Seaports (Haldia) Private Limited
9 Rishi Consfab Private Limited@@
2 Salzer Electronics Limited *
4 JSK Electricals Private Limited @
6 Feedback Infra Private Limited
8 L&T Camp Facilities LLC
* The Group has sold its stake on July and August 2015.
@ The Group has sold its stake on March 29, 2016.
** The Group has sold its stake on March 31, 2016.
@@ The Group has sold its stake on December 21, 2015
Joint ventures:
1 Metro Tunneling Group
3 Desbuild-L&T Joint Venture
5 L&T-AM Tapovan Joint Venture
7 L&T ASTCC Joint Venture – Doha$$
9 Metro Tunneling Chennai - L&T Shanghai Urban
Construction (Group) Corporation Joint venture
11 Larsen & Toubro Limited - Shapoorji Pallonji & Co.
Limited Joint Venture
13 International Metro Civil Contractors Joint Venture
15 Aktor- Larsen & Toubro-Yapi Merkezi-stfa-Al Jaber
Engineering Joint Venture
2 L&T-Hochtief Seabird Joint Venture
4 L&T-Shanghai Urban Construction (Group) Corporation
Joint Venture
6 HCC-L&T Purulia Joint Venture
8 Metro Tunneling Delhi - L&T Shanghai Urban
Construction (Group) Corporation Joint Venture
10 L&T-Eastern Joint Venture $
12 L&T Shanghai Urban Construction (Group) Corporation
Joint Venture CC27 Delhi
14 Civil Works Joint Venture
16 L&T-Delma Mafraq Joint Venture
17 Larsen & Toubro Limited and NCC Limited Joint Venture
18 Indiran Engineering Projects and Systems Kish PJSC
$ The Joint Venture is in the process of dissolution
$$ The Joint Venture has been entered into on August 30, 2015
Key management personnel & their relatives:
1 Mr. A. M. Naik (Group Executive Chairman)
2 Mr. K. Venkataramanan (CEO & Managing Director) *
Mrs. Jyothi Venkataramanan (wife)
3 Mr. M. V. Kotwal (Whole-time Director) **
5 Mr. S. N. Subrahmanyan [Deputy Managing Director and
4 Mr. R. Shankar Raman (CFO & Whole-time Director)
6 Mr. S. N. Roy (Whole-time Director )
President]
7 Mr. D. K. Sen (Whole-time Director) #
8 Mr. M. V. Satish (Whole-time Director) ##
* Retired on September 30, 2015.
# Appointed as DMD w. e. f. October 1, 2015.
** Retired on August 26, 2015.
## Appointed w. e. f. January 29, 2016.
ii. Disclosure of related party transactions:
Sr.
No.
1
Nature of transaction/relationship/major parties
Purchase of goods & services (including commission paid)
Associates & joint ventures, including:
L&T- Chiyoda Limited
JSK Electricals Private Limited
Salzer Electronics Limited
Magtorq Private Limited
Total
99.29
187.56
2015-16
2014-15
Amount Amounts for
major parties
Amount Amounts for
major parties
crore
99.29
187.56
16.96
27.99
37.33
10.16
23.42
24.04
123.81
–
359
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
2015-16
2014-15
Amount Amounts for
major parties
Amount Amounts for
major parties
crore
93.18
87.33
Sr.
No.
2
Nature of transaction/relationship/major parties
Sale of goods/contract revenue & services
Associates & joint ventures, including:
Larsen & Toubro Limited and NCC Limited Joint Venture
Civil Work Joint Venture
Metro Tunneling Delhi - L&T Shanghai Urban
Construction (Group) Joint Venture
L&T- Shanghai Urban Construction (Group)
Joint Venture CC27 Delhi
Metro Tunneling Chennai - L&T Shanghai Urban
Construction (Group) Corporation Joint Venture
10.64
–
10.50
34.00
33.41
Total
93.18
87.33
3
4
5
Purchase/lease of fixed assets
Associates & joint ventures, including:
L&T- Chiyoda Limited
Total
Sale of fixed assets
Key management personnel
K. Venkataramanan *
M. V. Kotwal **
Total
Receiving of services from related parties
Associates & joint ventures, including:
L&T-Chiyoda Limited
Feedback Infra Private Limited
Civil Work Joint Venture
Total
6
Charges paid for miscellaneous services
7
8
Feedback Infra Private Limited
L&T-Chiyoda Limited
Civil Work Joint Venture
Total
Rent paid
Key management personnel
K. Venkataramanan * & Mrs. Jyothi Venkataramanan
Total
Charges for deputation of employees to related parties
Associates & joint ventures, including:
L&T-Chiyoda Limited
Aktor- Larsen & Toubro-Yapi Merkezi-stfa-Al Jaber
Engineering Joint Venture
Civil Work Joint Venture
L&T-Delma Mafraq Joint Venture
–
–
9.29
9.29
8.49
8.49
2.48
2.48
0.01
0.01
–
8.85
0.44
6.60
–
1.89
–
0.59
1.89
0.01
0.11
0.11
–
–
3.01
3.01
1.04
1.04
0.01
0.01
252.91
21.12
–
32.30
132.31
69.20
Total
252.91
21.12
360
–
50.12
19.09
–
9.58
0.11
–
–
2.21
0.77
–
0.77
0.23
–
0.01
21.06
–
–
–
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Sr.
No.
9
Nature of transaction/relationship/major parties
Dividend received
Associates & joint ventures, including:
International Seaports (Haldia) Private Limited
Feedback Infra Private Limited
Vizag IT Park Limited
Salzer Electronics Limited
Total
10
Rent received, overheads recovered and miscellaneous income
Associates & joint ventures, including:
L&T-Chiyoda Limited
Civil Work Joint Venture
L&T Delma Mafraq Joint Venture
Aktor-Larsen&Toubro-Yapi Merkezi-stfa-AL Jaber
Engineering Joint Venture
Total
11
Interest Received
Associates & joint ventures, including:
The Dhamra Port Company Limited
Feedback Infra Private Limited
Total
12
Payment of salaries/perquisites (other than commission)
Key management personnel:
13
A.M. Naik
K. Venkataramanan *^
M.V. Kotwal **^^
S.N. Subrahmanyan
R. Shankar Raman
S. N. Roy
D. K. Sen #
M. V. Satish ##
Total
Commission to directors @
Key management personnel:
A.M. Naik
K. Venkataramanan *
M.V. Kotwal **
S.N. Subrahmanyan
R. Shankar Raman
S. N. Roy
D. K. Sen #
M. V. Satish ##
Total
2015-16
2014-15
Amount Amounts for
major parties
Amount Amounts for
major parties
crore
5.63
4.24
5.63
9.45
9.45
7.69
7.69
36.19
36.19
59.93
4.24
143.21
143.21
15.67
15.67
16.98
16.98
64.27
2.46
0.57
2.22
–
3.85
–
–
5.60
–
7.69
4.52
15.19
9.60
2.02
1.70
2.31
0.61
0.24
22.81
4.28
2.31
12.57
8.76
5.59
2.68
0.93
1.97
0.76
0.94
0.40
8.78
72.63
32.02
28.57
9.32
6.32
4.22
4.20
3.01
1.74
1.59
2.22
–
–
23.10
9.38
6.24
11.09
8.78
5.68
–
–
59.93
64.27
* Retired on September 30, 2015.
# Appointed w. e. f. October 1, 2015.
^
Includes leave encashment payment 13.53 cr.
** Retired on August 26, 2015.
## Appointed w. e. f. January 29, 2016.
^^
Includes leave encashment payment 7.89 cr.
361
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
@ Commision to Directors comprises :
Sr.
No.
1 Commission
2 Contribution to provident fund
3 Contribution to superannuation fund on commission
Particulars
Total
2015-16
47.81
5.04
7.08
59.93
2014-15
50.61
6.07
7.59
64.27
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective period.
iii. Amount due to/from related parties
Sr.
No.
1
Nature of transaction/relationship/major parties
Accounts Receivable
Associates & joint ventures, including:
Metro Tunneling Chennai - L&T Shanghai Urban
Construction (Group) Corporation Joint Venture
Metro Tunneling Delhi - L&T Shanghai Urban
Construction ( Group) Corporation Joint Venture
Civil Work Joint Venture
Feedback Infra Private Limited
Total
2
Accounts Payable (including acceptance & interest accrued)
Associates & joint ventures, including:
L&T- Chiyoda Limited
Magtorq Private Limited
Salzer Electronics Limited
Total
3
Unsecured loan
Joint ventures:
Metro Tunneling Group
Total
2015-16
2014-15
Amount Amounts for
major parties
Amount Amounts for
major parties
crore
128.95
40.00
36.82
18.91
57.64
–
6.42
7.79
–
30.00
128.95
15.19
31.87
30.00
30.00
40.00
31.87
31.87
30.00
30.00
–
–
–
40.00
8.19
–
18.54
30.00
17.92
6.73
–
0.01
4
Loans & advances recoverable (Including loans and advances
towards financing activities)
Associates & joint ventures, including:
87.58
28.10
L&T Camp Facilities LLC
L&T- Chiyoda Limited
Feedback Infra Private Limited
Key management personnel
K. Venkataramanan * & Mrs. Jyothi Venkataramanan
Total
19.18
–
60.00
0.01
0.01
87.59
0.01
28.11
362
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Sr.
No.
5
Nature of transaction/relationship/major parties
Due to Whole-time Directors
(Key Management Personnel)
A.M. Naik
K. Venkataramanan *
M.V. Kotwal **
S.N. Subrahmanyan
R. Shankar Raman
S.N. Roy
D. K. Sen #
M. V. Satish ##
Total
* Retired on September 30, 2015.
# Appointed w. e. f. October 1, 2015.
2015-16
2014-15
Amount Amounts for
major parties
Amount Amounts for
major parties
crore
47.83
50.61
17.96
3.77
2.04
9.90
6.90
4.40
2.13
0.73
18.19
7.39
4.91
8.73
6.91
4.48
–
–
47.83
50.61
** Retired on August 26, 2015.
## Appointed w. e. f. January 29, 2016.
“Major parties” denote entities who account for 10% or more of the aggregate for that category of transaction during
respective period.
Q(11) Disclosure in respect of Leases pursuant to Accounting Standard (AS) 19 ‘’Leases’’:
i. Where the Company is a Lessor:
(a) Finance leases:
i)
ii)
The Company has given certain assets on finance leases. The leases have a primary period that is fixed and non-
cancellable and a secondary period. There are no exceptional/restrictive covenants in the lease agreement.
The total gross investment in these leases as on March 31, 2016 and the present value of minimum lease payments
receivable as on March 31, 2016 is as under:
Particulars
1. Receivable not later than 1 year
2. Receivable later than 1 year and not later than 5 years
3. Receivable later than 5 years
Gross investment in lease (1+2+3)
Less: Unearned finance income
Present value of minimum lease payments receivable
crore
As at
31-3-2016
As at
31-3-2015
1505.22
6644.52
973.64
6994.20
19696.08
20390.00
27845.82
28357.84
18319.95
19065.23
9525.87
9292.61
363
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
(b) Operating leases:
i)
The Company has given assets under non-cancellable operating lease, the future minimum lease payments
receivable in respect of which, as at March 31, 2016 are as follows:
Particulars
1. Receivable not later than 1 year
2. Receivable later than 1 year and not later than 5 years
3. Receivable later than 5 years
Total
ii. Where the Company is a Lessee:
(a) Finance leases:
crore
As at
31-3-2016
As at
31-3-2015
58.62
74.66
9.68
142.96
74.49
100.53
13.99
189.01
i)
Assets acquired on finance lease comprises of motor vehicles. The leases have a primary period, which is fixed
and non-cancellable. The Company has an option to renew the lease for a secondary period. The agreements
provide for revision of lease rentals in the event of changes in (a) taxes, if any, leviable on the lease rentals (b) rates
of depreciation under the Income Tax Act, 1961 and (c) change in the lessor’s cost of borrowings. There are no
exceptional/restrictive covenants in the lease agreements.
ii)
The minimum lease rentals as at March 31, 2016 and the present value as at March 31, 2016 of minimum lease
payments in respect of assets acquired under finance leases are as follows:
Particulars
1. Payable not later than 1 year
2. Payable later than 1 year and not later than 5 years
3. Payable later than 5 years
Total
Less: Future finance charges
Present value of minimum lease payments
(b) Operating leases:
crore
Present value of minimum
lease payments
As at
31-3-2016
0.11
0.17
–
0.28
As at
31-3-2015
0.16
0.28
–
0.44
Minimum lease payments
As at
31-3-2016
0.12
0.19
–
0.31
0.03
0.28
As at
31-3-2015
0.18
0.31
–
0.49
0.05
0.44
i)
The Company has taken various commercial premises and plant & equipment under cancellable operating leases.
These lease agreements are normally renewed on expiry.
ii)
[a] The Company has taken certain assets on non-cancellable operating leases, the future minimum lease
payments in respect of which, as at March 31, 2016 are as follows:
Particulars
1.
2.
3.
Payable not later than 1 year
Payable later than 1 year and not later than 5 years
Payable later than 5 years
Total
crore
As at
31-3-2016
As at
31-3-2015
69.89
171.30
94.07
335.26
91.00
190.11
115.43
396.54
[b] The lease agreements provide for an option to the Company to renew the lease period at the end of the
non-cancellable period. There are no exceptional/restrictive covenants in the lease agreements.
iii)
Lease rental expense in respect of operating leases: 262.54 crore (previous year: 173.78 crore)
iv) Contingent rent recognised in the Statement of Profit and Loss: 0.60 crore (previous year: 0.30 crore)
364
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Q(12) Basic and Diluted Earnings per share [EPS] computed in accordance with Accounting Standard (AS) 20 “Earnings per Share’’:
Particulars
Before extraordinary items
After extraordinary items
2015-16
2014-15
2015-16
2014-15
Basic
Profit after tax as per accounts ( crore)
Weighted average number of shares outstanding
Basic EPS ( )
Diluted
Profit after tax as per accounts ( crore)
Weighted average number of shares outstanding
Add: Weighted average number of potential equity
shares on account of employee stock options
A
B
A/B
A
B
C
5090.53
4764.82
5090.53
4764.82
93,07,61,648 92,83,48,310 93,07,61,648 92,83,48,310
54.69
51.33
54.69
51.33
5090.53
4764.82
5090.53
4764.82
93,07,61,648 92,83,48,310 93,07,61,648 92,83,48,310
43,62,080
62,19,750
43,62,080
62,19,750
Weighted average number of shares outstanding for
D=B+C 93,51,23,728 93,45,68,060 93,51,23,728 93,45,68,060
diluted EPS
Diluted EPS ( )
Face value per share ( )
A/D
54.44
50.98
54.44
50.98
2
2
2
2
Note: Potential equity shares that could arise on conversion of FCCBs are not resulting into dilution of EPS in the current year.
Hence, they have not been considered in workings of diluted EPS in accordance with Accounting Standard (AS) 20 ‘’Earnings
per Share’’.
Q(13) Major components of deferred tax liabilities and deferred tax assets pursuant to Accounting Standard (AS) 22 ‘’Accounting for
Taxes on Income‘’:
Particulars
Deferred tax liabilities:
Deferred tax
liabilities/
(assets) as at
31-3-2015
Charge/
(credit) to
Statement of
Profit and Loss
Effect due to
acquisition/
disposal
Charge/
(credit) to
opening
retained
earnings*
crore
Charge/(credit) to reserves Deferred tax
liabilities/
(assets) as at
31-3-2016
Hedging
reserve**
Foreign
currency
translation
reserve
Difference between book and tax depreciation
1210.79
371.22
(2.13)
(85.77)
Gain on derivative transactions to be offered for tax
purposes in the year of transfer to Statement of
Profit and Loss
Disputed statutory liabilities paid and claimed as
deduction for tax purposes but not debited to
Statement of Profit and Loss
Other items giving rise to timing differences
Total
38.49
10.06
102.11
346.00
1697.39
14.00
(10.08)
385.20
–
–
–
–
–
2.34
(2.13)
(83.43)
–
–
–
1.21
1.21
–
1494.11
(8.83)
39.72
–
–
116.11
339.47
(8.83)
1989.41
365
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Particulars
Deferred tax
liabilities/
(assets) as at
31-3-2015
Charge/
(credit) to
Statement of
Profit and Loss
Effect due to
acquisition/
disposal
Charge/
(credit) to
opening
retained
earnings*
Deferred tax (assets):
Provision for doubtful debts, advances and
non-performing assets debited to Statement of
Profit and Loss
Loss on derivative transactions to be claimed for tax
purposes in the year of transfer to Statement of
Profit and Loss
Unpaid statutory liabilities/provision for
compensated absences debited to Statement of
Profit and Loss
Unabsorbed depreciation/brought forward business
losses
Difference between book and tax depreciation
Other items giving rise to timing differences
Total
(512.24)
(236.57)
(223.41)
(0.01)
(237.60)
(35.07)
(781.12)
(333.64)
(10.31)
(117.35)
3.61
0.77
(1882.03)
(600.91)
–
–
–
–
–
–
–
0.71
–
0.05
17.88
–
–
18.64
Net deferred tax liability/(assets)
(184.64)
(215.71)
(2.13)
(64.79)
Charge/(credit) to reserves Deferred tax
liabilities/
(assets) as at
31-3-2016
Hedging
reserve**
Foreign
currency
translation
reserve
–
–
–
–
–
(1.68)
(1.68)
(0.47)
–
(748.10)
84.76
(138.66)
–
–
–
–
(272.62)
(1096.88)
(6.70)
(118.26)
84.76
(2381.22)
75.93
(391.81)
Previous year
337.46
(408.67)
(39.39)
(8.33)
(0.85)
(64.86)
(184.64)
*Represents reversal of deferred tax on depreciation charged against opening retained earnings as on April 1, 2015, pursuant to Schedule II of Companies Act 2013.
** The amount of 483.42 crore (previous year: 382.27 crore) representing net losses on effective hedges is recognised in hedge reserve, applying the principles
of hedge accounting set out in Accounting Standard (AS) 30 ‘’Financial Instruments: Recognition and Measurement’’. The amount is after considering the net
deferred tax liability of 75.93 crore during the year (previous year: deferred tax asset (net) 64.86 crore).
Q(14) The effect of acquisitions (including newly incorporated subsidiaries) and disposals during the year on the Consolidated Financial
Statements is as under:
a) Acquisitions (including newly incorporated entities):
Sr.
No.
1
2
3
4
5
Name of company
L&T Infotech Austria GMBH LLC
Marine Infrastructure Developer Private Limited
L&T Global Holdings Limited
LTH Milcom Private Limited
L&T Information Technology Spain SL
Total
Effect on Group profit/(loss)
after minority interest for the
year ended March 31, 2016
Net Assets/
(liabilities) as at
March 31, 2016
crore
(0.05)
–
(0.51)
(0.05)
(0.06)
(0.67)
0.21
0.01
0.15
0.11
0.30
0.78
366
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
b) Disposals:
Sr.
No.
1
2
3
4
5
6
Name of company
CSJ Infrastructure Private Limited
Larsen &Toubro (Qingdao) Rubber
Machinery Company Limited
Larsen & Toubro Consultoria E Projeto
Ltda
L&T Infocity Limited
L&T Hitech City Limited
Hyderabad International Trade
Expositions Limited
Total
Effect on Group profit/(loss) after
minority interest for the year
ended March 31
2015-16
(2.25)
(1.77)
2014-15
16.61
(6.11)
–
7.20
2.22
5.38
10.78
0.09
5.29
(1.41)
1.82
16.29
Net Assets/
(liabilities) as at the
date of disposal
(during 2015-16)
crore
Net assets
as at March
31, 2015
245.11
0.23
247.36
2.00
(0.05)
(0.05)
143.62
57.48
38.41
135.53
54.11
28.01
484.80
466.96
Q(15) The Company’s share in respect of the assets, liabilities, reserves, income and expenses, related to its interests in the jointly
controlled entities, incorporated in the Consolidated Financial Statements are:
I
Assets
Particulars
1
Non-current assets
Fixed Assets
(a) Tangible assets
(b) Intangible assets
(c) Capital work-in-progress
2 Deferred tax assets (net)
3
Long term loans and advances
Current assets
1 Current investments
2
3
4 Cash and bank balances
5
6 Other current assets
Inventories
Trade receivables
Short term loans and advances
II
Liabilities
Non-current liabilities
1
Long term borrowings
2 Other long term liabilities
Current liabilities
Short term borrowings
Trade payables
1
2 Current maturities of long term borrowings
3
4 Other current liabilities
5
1
2 Hedging reserve
3
1
2 Other income
Short term provisions
Foreign currency translation reserve
Retained earnings
Revenue from operations
III
Reserves
IV
Income
31-3-2016
crore
31-3-2015
448.91
0.18
1.20
–
0.02
7.56
67.12
657.11
1831.10
543.47
691.37
9.88
115.14
346.04
33.84
1202.78
2183.90
0.24
7.42
0.17
348.25
3593.69
21.04
205.25
–
81.19
0.45
–
14.38
12.44
376.19
1437.16
583.58
710.34
–
1.39
247.39
–
732.88
2317.57
0.02
1.10
(0.25)
105.62
1987.80
6.78
367
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
V
Expenses
VI
Contingent
Liability
Particulars
1 Operating expenses
Staff expenses
2
Sales, administration and other expenses
3
4
Interest expense
5 Depreciation
6
1 Contingent liabilities, if any, incurred in relation to interests in joint
Provision for tax
2
ventures
Share in contingent liabilities of joint ventures themselves for which
the Company is contingently liable
31-3-2016
2774.59
422.17
178.39
11.76
(1.48)
1.53
4170.76
crore
31-3-2015
1463.90
196.90
107.13
53.64
165.96
(0.88)
3248.49
58.18
80.13
3 Contingent liabilities in respect of liabilities of other venturers of joint
8006.19
10840.81
ventures
VII Capital
Commitments
1 Capital commitments, if any, in relation to interests in joint ventures
Share in capital commitments of joint ventures themselves for which
2
the Company is contingently liable
–
2.61
–
159.34
Q(16) Disclosures pursuant to Accounting Standard (AS) 29 “Provisions, Contingent Liabilities and Contingent Assets”:
a) Movement in provisions:
Sr.
No.
1
2
3
4
5
Particulars
Balance as at 01-04-2015
Additional provision during the year
Provision used/reversed during the year #
Translation adjustments
Balance as on 31-03-2016 (5=1+2-3+4)
Product
warranties/
liquidated
damages
Expected tax
liability in
respect of
indirect taxes
140.99
97.31
(116.58)
0.30
122.02
111.73
46.52
(1.30)
–
156.95
Class of provisions
Litigation
related
obligations
Periodic
major
maintenance
10.35
–
(0.36)
0.04
10.03
213.72
182.65
(22.94)
–
373.43
Contractual
rectification
cost -
construction
contracts
186.55
148.49
(167.30)
0.14
167.88
# includes provision used during the year 42.26 crore (previous year: 171.36 crore)
b) Nature of provisions:
crore
Total
663.34
474.97
(308.48)
0.48
830.31
i.
Product warranties/liquidated damages: 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,
2016 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 five years from the date of Balance Sheet. Liquidated damages
represent the estimated cost the Company is likely to incur due to delay in delivery as per its contract obligations and
accrued on the basis of advice from distributors/customers.
ii.
Expected tax liability in respect of indirect taxes represents mainly the differential sales tax liability on account of
non-collection of declaration forms for the period prior to five years.
iii. Provision for litigation related obligations represents liabilities that are expected to materialise in respect of matters in
appeal.
iv.
Periodic major maintenance represents provision made for resurfacing obligations in accordance with the terms of
concession agreement with National Highway Authority of India (NHAI).
368
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
v. 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 Accounting Standard (AS) 7
(Revised) “Construction Contracts”.
c) Disclosures in respect of contingent liabilities are given as part of Note [I] to the Balance Sheet.
Q(17) In line with the Company’s risk management policy, the various financial risks mainly relating to changes in the exchange rates,
interest rates and commodity prices are hedged by using a combination of forward contracts, swaps and other derivative contracts,
besides the natural hedges.
a)
The particulars of derivative contracts entered into for hedging purposes outstanding as at March 31, 2016 are as under:
Category of derivative instruments
i)
For hedging foreign currency and interest rate risks:
a)
Forward contracts for receivables including firm commitments and highly probable
forecasted transactions
Forward contracts for payables including firm commitments and highly probable
forecasted transactions
b)
c) Currency and interest rate swaps
d) Option contracts
For hedging commodity price risks:
Commodity futures
ii)
iii) For hedging investment in mutual fund and bonds:
a) Stock market index futures
b)
Interest rate swaps
b) Unhedged foreign currency exposures as at March 31, 2016 are as under:
Unhedged foreign currency exposures
i)
Receivables, including firm commitments and highly probable forecasted transactions
ii) Payables, including firm commitments and highly probable forecasted transactions
crore
Amount of exposures hedged
As at
31-3-2016
As at
31-3-2015
16813.93
16665.89
19381.84
15338.11
3528.69
285.36
3931.51
578.48
486.90
289.36
671.58
900.00
–
200.00
As at
31-3-2016
62936.93
53132.13
crore
As at
31-3-2015
43427.97
40724.60
Note: As per Royal Monetary Authority of Bhutan, Bhutan’s national currency is pegged to the Indian rupee at parity.
Accordingly, the unhedged foreign currency exposures reported above excludes exposures [Receivables amounting to
2385.28 crore (previous year: 1646.07 crore) and payables amounting to 1801.09 crore (previous year: 1142.08 crore)]
with respect to currencies such as Bhutan Ngultrum (BTN).
Q(18) a) The Group has undertaken various projects on Design-Build-Finance-Operate-Transfer (DBFOT)/Build-Operate-Transfer (BOT)
basis as per the concession agreements with the government authorities. Under the agreements, the concession period for
toll collection or annuity payments ranges from 15 to 35 years. At the end of the said concession period, the entire facilities
are transferred to the concerned government authorities.
b)
c)
The aggregate amount of revenues and profits before tax (net) recognised during the year in respect of construction services
related to BOT/DBFOT projects is 1741.44 crore (previous year: 2659.37 crore) and 174.61 crore (previous year:
324.20 crore) respectively [Note R(3)(A)(a)(ix)].
Long term loans and advances towards financing activities include 293.43 crore (previous year: 305.05 crore) being
cumulative construction costs incurred including related margins in respect of annuity based Build-Operate-Transfer (BOT)
projects.
369
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
d)
Short term Loans and advances towards financing activities include 41.28 crore (previous year: 75.48 crore) being
cumulative construction costs incurred including related margins in respect of annuity based Build-Operate-Transfer (BOT)
projects.
Q(19) In terms of provisions of sub-section 1A of section 115O of the Income Tax Act 1961, dividend distribution tax payable by
the Parent Company of 140.88 crore, is net of dividend distribution tax paid by its subsidiary companies amounting to
198.70 crore, relating to dividend of 1007.91 crore declared by them.
Q(20) Deferred payment liability of 11050.36 crore (previous year: 3058.82 crore) represents:
(a) Negative grant/additional concession fee of 11017.96 crore (previous year: 2999.47 crore) payable to National Highway
Authority of India (NHAI), as per the concession agreement entered into with NHAI.
(b) Commitment payable to National Housing Development Authority (NHDA) amounting to 32.40 crore (previous year:
34.40 crore) as per the joint venture agreement entered into with NHDA.
(c) Deferred conversion fee liability of Nil (previous year: 24.94 crore) towards conversion of land from Industrial to
commercial use as per the approval from Chandigarh Housing Board (CHB).
(d)
In respect of the total amount of 11050.36 crore, an amount of 210.50 crore (previous year: 127.23 crore) is payable
within a period of one year.
Q(21) One of the subsidiaries, which has been awarded a Build-Operate-Transfer (BOT) project for construction of a bypass toll
road and a bridge over the River Noyyal in Coimbatore District of Tamil Nadu State, under the Concession Agreement dated
October 3, 1997, had received a termination notice from the Ministry of Road Transport and Highways, Government of India,
(MORTH). The ground of termination was Government of India’s subsequent intention to go for four-laning of the existing
two lane road. The subsidiary had obtained injunction from Delhi High Court against the said notice of the Government and
is accordingly continuing to collect the toll. The tolling rights of the subsidiary are protected under the aforesaid concession
agreement.
The subsidiary had also filed an application opting for arbitration for resolution of disputes and an Arbitral Tribunal had been
constituted as provided in the concession agreement. The Arbitral Tribunal has pronounced the award on December 12, 2014 in
favour of the Company. The Tribunal has also awarded, interalia, compensation to be paid to the Company for loss of revenue at
Athupalam Bridge and suitable extension of the concession period.
The MORTH has challenged the award of March 12, 2015 seeking stay of the aforesaid Tribunal award before the Delhi High
Court. Since the matter is sub-judice, the compensation has not been recognised in the financial statements.
Q(22) There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2016.
Q(23) Additional information pursuant to Schedule III to the Companies Act, 2013
Name of the entity
Larsen and Toubro Limited
Indian Subsidiaries
Infrastructure:
Hi-Tech Rock Products & Aggregates Limited
L&T Geostructure LLP
L&T Infrastructure Engineering Limited
Power:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Howden Private Limited
L&T-Sargent & Lundy Limited
370
Net Assets, i.e., total assets minus
total liabilities
As % of
consolidated
net assets
92.56%
Amount
( crore)
40718.33
0.01%
0.00%
0.08%
1.71%
0.46%
0.08%
0.13%
5.01
1.98
35.01
754.08
201.65
36.33
57.03
Share in profit or loss
As % of
consolidated
profit or loss
104.34%
0.05%
0.95%
0.02%
5.06%
(1.70%)
0.32%
0.33%
Amount
( crore)
5311.46
2.38
48.37
0.87
257.53
(86.67)
16.16
16.69
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of the entity
Heavy Engineering:
L&T Cassidian Limited
L&T Special Steels and Heavy Forgings Private Limited
Spectrum Infotech Private Limited
LTH Milcom Private Limited
Marine Infrastructure Developer Private Limited
Hydrocarbon:
L&T Hydrocarbon Engineering Limited
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T-Gulf Private Limited
L&T-Valdel Engineering Limited
IT & Technology Services:
GDA Technologies Limited
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Thales Technology Services Private Limited
Financial Services:
Consumer Financial Services Limited
Family Credit Limited
L&T Access Distribution Services Limited
L&T Capital Company Limited
L&T Capital Markets Limited
L&T Finance Holdings Limited
L&T Finance Limited
L&T FinCorp Limited
L&T General Insurance Company Limited
L&T Housing Finance Limited
L&T Infra Debt Fund Limited
L&T Infra Investment Partners Advisory Private Limited
L&T Infra Investment Partners Trustee Private Limited
L&T Infrastructure Finance Company Limited
L&T Investment Management Limited
L&T Mutual Fund Trustee Limited
L&T Trustee Company Private Limited
L&T Vrindavan Properties Limited
Mudit Cement Private Limited
Developmental projects:
Kudgi Transmission Limited
L&T Ahmedabad-Maliya Tollway Limited
L&T BPP Tollway Limited
L&T Chennai-Tada Tollway Limited
Net Assets, i.e., total assets minus
total liabilities
As % of
consolidated
net assets
Amount
( crore)
0.00%
(1.16%)
0.04%
0.00%
0.00%
2.90%
0.00%
0.45%
0.05%
0.16%
0.08%
4.24%
2.54%
(0.01%)
0.00%
1.44%
(0.03%)
0.01%
0.02%
11.79%
4.85%
2.32%
0.32%
1.35%
1.64%
0.02%
0.00%
6.51%
1.11%
0.00%
–
0.21%
(0.02%)
0.43%
0.14%
0.44%
0.10%
0.04
(508.17)
17.79
0.11
0.01
1275.87
0.87
198.41
22.68
71.41
37.08
1863.27
1116.25
(3.16)
0.39
631.97
(11.24)
6.40
6.96
5187.34
2134.87
1019.47
142.29
594.40
721.50
8.18
0.05
2863.36
490.45
1.57
–
90.34
(8.15)
190.45
62.80
195.75
41.81
Share in profit or loss
As % of
consolidated
profit or loss
–
(5.58%)
0.02%
(0.00%)
–
1.70%
0.02%
0.43%
0.04%
0.22%
0.04%
18.43%
8.53%
(0.04%)
–
1.72%
(0.09%)
0.08%
(0.47%)
7.43%
4.07%
3.60%
(2.00%)
1.14%
0.77%
0.12%
0.00%
4.72%
(1.02%)
0.00%
–
(0.48%)
(0.11%)
(0.01%)
(1.06%)
(0.94%)
–
Amount
( crore)
–
(284.27)
1.26
(0.09)
–
86.47
0.96
22.05
1.99
11.36
1.84
938.13
434.24
(1.85)
–
87.40
(4.65)
4.17
(23.73)
378.04
207.22
183.37
(102.02)
58.04
39.29
5.91
0.01
240.04
(51.90)
0.03
–
(24.30)
(5.66)
(0.60)
(54.01)
(47.66)
–
371
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of the entity
L&T Deccan Tollways Limited
L&T Devihalli Hassan Tollway Limited
L&T Halol-Shamlaji Tollway Limited
L&T Infrastructure Development Projects Limited
L&T Interstate Road Corridor Limited
L&T Krishnagiri Thopur Toll Road Limited
L&T Krishnagiri Walajahpet Tollway Limited
L&T Metro Rail (Hyderabad) Limited
L&T Panipat Elevated Corridor Limited
L&T Port Kachchigarh Limited
L&T Rajkot-Vadinar Tollway Limited
L&T Samakhiali Gandhidham Tollway Limited
L&T Sambalpur-Rourkela Tollway limited
L&T Transportation Infrastructure Limited
L&T Vadodara Bharuch Tollway Limited
L&T Western Andhra Tollways Limited
L&T Western India Tollbridge Limited
PNG Tollway Limited
Power Develoment:
L&T Arunachal Hydropower Limited
L&T Himachal Hydropower Limited
L&T Power Development Limited
L&T Uttaranchal Hydropower Limited
Nabha Power Limited
Realty:
Chennai Vision Developers Private Limited
CSJ Infrastructure Private Limited
Hyderabad International Trade Expositions Limited
L&T Asian Realty Project LLP
L&T Hitech City Limited
L&T Infocity Limited
L&T Parel Project LLP
L&T Realty Limited
L&T Seawoods Limited
L&T South City Projects Limited
L&T Vision Ventures Limited
Construction Equipment and Others (Valves and
Welding Equipment):
L&T Construction Equipment Limited
L&T Cutting Tools Limited
L&T Kobelco Machinery Private Limited
372
Amount
( crore)
Net Assets, i.e., total assets minus
total liabilities
As % of
consolidated
net assets
0.34%
0.54%
0.06%
11.34%
0.15%
(0.05%)
0.18%
4.60%
(0.50%)
(0.00%)
(0.09%)
0.15%
0.49%
0.36%
(0.65%)
(0.04%)
0.07%
(0.17%)
150.30
238.63
24.23
4987.01
67.03
(23.64)
78.18
2024.18
(219.69)
(0.44)
(41.74)
63.80
213.40
156.57
(285.22)
(17.43)
32.78
(76.92)
0.09%
0.45%
7.08%
1.75%
6.73%
(0.00%)
(0.01%)
0.02%
(0.00%)
0.01%
0.02%
0.25%
1.70%
7.23%
0.30%
(0.01%)
0.54%
0.08%
0.08%
40.21
195.81
3115.71
772.04
2959.29
(0.01)
(2.25)
10.40
(1.49)
3.37
8.09
110.30
747.27
3178.96
134.06
(4.60)
235.88
36.87
33.21
Share in profit or loss
As % of
consolidated
profit or loss
(0.02%)
(0.29%)
(1.90%)
(10.98%)
(0.35%)
0.21%
(0.10%)
(0.14%)
(0.57%)
(0.00%)
(1.11%)
(1.15%)
(0.02%)
0.40%
0.15%
(0.06%)
0.04%
(2.84%)
–
(0.01%)
0.02%
0.01%
3.85%
0.00%
(0.04%)
0.20%
(0.01%)
0.07%
0.16%
1.60%
5.54%
0.22%
0.11%
(0.00%)
0.01%
0.33%
0.07%
Amount
( crore)
(1.13)
(14.66)
(96.91)
(558.94)
(17.67)
10.55
(4.85)
(7.14)
(29.06)
(0.03)
(56.64)
(58.64)
(1.08)
20.27
7.85
(2.94)
1.95
(144.67)
–
(0.26)
0.80
0.69
196.21
0.01
(2.25)
10.40
(0.26)
3.37
8.09
81.50
282.06
11.41
5.70
(0.02)
0.59
16.55
3.63
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of the entity
L&T Valves Limited
Ewac Alloys Limited
Shipbuilding:
L&T Shipbuilding Limited
Others:
Bhilai Power Supply Company Limited
L&T Electricals and Automation Limited
L&T Power Limited
Kesun Iron & Steel Company Private Limited
L&T Aviation Services Private Limited
Raykal Aluminium Company Private Limited
Foreign Subsidiaries
Infrastructure:
Larsen & Toubro (Oman) LLC
Larsen & Toubro Qatar LLC
Larsen & Toubro Saudi Arabia LLC
Larsen & Toubro T&D SA (Proprietary) Limited
Heavy Engineering:
Net Assets, i.e., total assets minus
total liabilities
As % of
consolidated
net assets
1.18%
0.22%
520.64
95.88
Amount
( crore)
Share in profit or loss
As % of
consolidated
profit or loss
2.71%
0.68%
Amount
( crore)
137.91
34.40
0.23%
100.32
(13.54%)
(689.08)
0.00%
0.00%
0.01%
(0.00%)
0.10%
0.00%
0.84%
0.00%
(0.04%)
0.01%
0.05
0.03
4.64
(0.25)
44.17
0.41
369.11
0.28
(19.16)
2.29
–
–
0.00%
–
0.00%
(0.00%)
1.48%
(0.01%)
2.40%
(0.00%)
–
–
0.21
–
0.09
(0.03)
75.13
(0.33)
122.22
(0.03)
Larsen & Toubro Heavy Engineering LLC
(0.05%)
(20.15)
(0.18%)
(9.03)
Hydrocarbon:
Larsen & Toubro Hydrocarbon International Limited LLC
L&T Modular Fabrication Yard LLC
L&T Overseas Projects Nigeria Limited
Larsen Toubro Arabia LLC
Larsen & Toubro ATCO Saudia LLC
Larsen & Toubro Electromech LLC
Larsen & Toubro Kuwait Construction General Contracting
Company, WLL
PT Larsen & Toubro Hydrocarbon Engineering Indonesia
IT & Technology Services:
L&T Information Technology Services (Shanghai) Co. Ltd.
L&T Infotech Financial Services Technologies Inc.
Larsen & Toubro Infotech Canada Limited
Larsen & Toubro Infotech LLC
Larsen & Toubro Infotech South Africa (PTY) Limited
Larsen & Toubro Infotech GmbH LLC
L&T Infotech Austria GmbH
L&T Information Technology Spain SL
Larsen & Toubro LLC
L&T Technology Services LLC
(0.00%)
(0.23%)
0.00%
(0.39%)
(1.10%)
(0.29%)
(0.00%)
–
0.00%
0.74%
0.02%
0.03%
0.00%
0.06%
0.00%
0.00%
0.01%
(0.05%)
(0.24)
(102.16)
0.05
(169.63)
(484.12)
(126.37)
(0.94)
–
0.52
327.10
10.03
11.26
2.07
28.18
0.21
0.30
2.43
(22.07)
(0.01%)
(0.63%)
(0.00%)
(2.95%)
(2.53%)
(1.20%)
(0.09%)
–
0.01%
0.38%
0.06%
0.02%
0.01%
0.11%
(0.00%)
(0.00%)
0.00%
(0.33%)
(0.36)
(31.87)
(0.01)
(149.95)
(128.96)
(61.01)
(4.54)
–
0.29
19.35
3.08
1.25
0.52
5.68
(0.05)
(0.06)
0.06
(16.74)
373
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of the entity
Developmental projects:
L&T IDPL Trustee Manager Pte Ltd.
L&T Infrastructure Development Projects Lanka (Private)
Limited
Realty:
L&T Realty FZE
Construction Equipment and Others
(Valves and Welding Equipment):
Larsen &Toubro (Qingdao) Rubber Machinery Company
Limited
Electrical & Automation:
Henikwon Corporation Sdn. Bhd.
Kana Controls General Trading & Contracting Company
W.L.L.
L&T Electrical & Automation FZE
L&T Electricals & Automation Saudi Arabia Company LLC
PT Tamco Indonesia
Servowatch Systems Limited
Tamco Electrical Industries Australia Pty Ltd.
Tamco Switchgear (Malaysia) Sdn. Bhd.
Thalest Limited
Others:
Larsen & Toubro (East Asia) Sdn.Bhd.
Larsen & Toubro Consultoria E Projeto Ltda
Larsen & Toubro International FZE
L&T Global Holdings Limited
Larsen & Toubro Readymix & Asphalt Concrete Industries
LLC
Total Subsidiaries
Minority interests in all subsidiaries
Indian Associates
L&T-Chiyoda Limited
Gujarat Leather Industries Limited
International Seaports (Haldia) Private Limited
Vizag IT Park Limited
Feedback Infra Private Limited
JSK Electricals Private Limited
Salzer Electronics Limited
Rishi Consfab Private Limited
Magtorq Private Limited
Grameen Capital India Limited
Foreign Associates
Larsen & Toubro Qatar & HBK Contracting LLC
L&T Camp Facilities LLC
Total Associates
374
Net Assets, i.e., total assets minus
total liabilities
As % of
consolidated
net assets
Amount
( crore)
Share in profit or loss
As % of
consolidated
profit or loss
Amount
( crore)
0.89
(0.02%)
(0.80)
67.54
–
–
9.55
(0.00%)
(0.10)
0.00%
0.15%
0.02%
(0.00%)
(0.02%)
(0.00%)
0.31%
0.01%
(0.10%)
(0.01%)
0.03%
1.31%
0.02%
0.00%
–
1.91%
0.00%
(0.04%)
(1.77)
(9.88)
(1.27)
138.48
5.83
(45.70)
(5.99)
13.49
574.41
8.13
0.63
–
838.75
0.15
(16.02)
(15.39%)
40650.76
(6768.78)
0.10%
–
0.03%
–
0.09%
–
–
–
0.01%
0.01%
–
0.00%
42.31
–
14.67
–
38.96
–
–
–
5.88
6.00
–
2.11
109.93
(0.03%)
0.06%
(0.04%)
(1.00%)
(0.46%)
(0.11%)
0.03%
(0.22%)
1.32%
(0.01%)
(0.00%)
–
(7.95%)
(0.01%)
0.01%
(8.74%)
(0.20%)
–
(0.00%)
0.01%
0.02%
0.00%
0.04%
(0.00%)
0.00%
–
0.01%
0.07%
(1.77)
2.94
(2.14)
(50.74)
(23.27)
(5.79)
1.49
(11.25)
67.18
(0.30)
(0.02)
–
(404.82)
(0.51)
0.69
899.82
(444.95)
(10.16)
–
(0.25)
0.52
0.96
0.22
2.27
(0.24)
0.09
–
0.31
3.77
(2.51)
Notes forming part of the Consolidated Accounts (contd.)
NOTE [Q] (contd.)
Name of the entity
Jointly controlled entities - Indian joint ventures
L&T-AM Tapovan Joint Venture
International Metro Civil Contractors Joint Venture
Desbuild-L&T Joint Venture
HCC-L&T Purulia Joint Venture
Metro Tunneling Group
L&T-Hochtief Seabird Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation Joint
Venture
Metro Tunneling Chennai - L&T Shanghai Urban Construction
(Group) Corporation Joint Venture
Metro Tunneling Delhi - L&T Shanghai Urban Construction
(Group) Corporation Joint Venture
Larsen and Toubro Limited - Shapoorji Pallonji & Co. Ltd.
Net Assets, i.e., total assets minus
total liabilities
As % of
consolidated
net assets
Amount
( crore)
(0.09%)
(0.00%)
0.00%
0.01%
0.04%
0.17%
0.02%
0.01%
0.00%
(38.84)
(0.09)
0.69
3.89
16.20
74.84
7.90
2.62
0.78
Share in profit or loss
As % of
consolidated
profit or loss
(0.01%)
(0.00%)
–
(0.00%)
0.01%
(0.00%)
0.00%
Amount
( crore)
(0.72)
(0.03)
–
(0.01)
0.64
(0.01)
0.19
(0.23%)
(11.94)
(0.01%)
Joint Venture
(0.03%)
(15.05)
(0.10%)
L&T-Shanghai Urban Construction (Group) Corporation
Joint Venture CC27 Delhi
Larsen and Toubro Limited-Scomi Engineering BHD
Consortium-Residual Joint works Joint Venture
Larsen and Toubro Limited-Scomi Engineering BHD
Consortium-O&M Joint Venture
Larsen & Toubro Limited & NCC Limited Joint Venture
DAEWOO and L&T Joint Venture
Bauer-L&T Geo Joint Venture
Jointly controlled entities - Foreign joint ventures
L&T-Eastern Joint Venture
Civil Works Joint Venture
Aktor- Larsen & Toubro-Yapi Merkezi-stfa-Al Jaber
Engineering Joint Venture
L&T-Delma Mafraq Joint Venture
L&T-AL-Sraiya LRDP 6 Joint Venture
PESB and Larsen & Toubro Joint Venture
Indiran Engineering Projects and Systems Kish PJSC
Total Joint Ventures
CFS adjustment and elimination
Total
0.01%
0.01%
(0.05%)
0.03%
–
0.00%
0.01%
0.61%
–
0.07%
(0.00%)
–
(0.00%)
(70.64%)
4.56
2.21
(21.44)
14.28
–
0.15
5.51
267.60
–
30.60
(0.05)
–
(0.13)
356.23
(31074.74)
43991.73
0.04%
0.01%
(0.14%)
0.28%
–
0.00%
0.01%
4.02%
–
0.59%
(0.00%)
–
0.00%
(17.70%)
(0.29)
(4.96)
1.84
0.64
(7.03)
14.28
–
0.15
0.30
204.52
–
30.23
(0.05)
–
0.02
227.77
(901.06)
5090.53
Q(24) Figures for the previous year have been regrouped/reclassified wherever necessary.
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES
1. Basis of accounting
The Company maintains its accounts on accrual basis following the historical cost convention, except for the revaluation of certain
fixed assets, in accordance with generally accepted accounting principles [“GAAP”] in compliance with the provisions of the
Companies Act, 2013 and the Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006 read with
Rule 7(1) of the Companies (Accounts) Rules, 2014 issued by the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI)
are also considered, wherever applicable except to the extent where compliance with other statutory promulgations override the
same requiring a different treatment.
375
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
The preparation of financial statements in conformity with GAAP 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. Examples of such estimates
include the useful lives of tangible and intangible fixed assets, allowance for doubtful debts/advances, future obligations in respect
of retirement benefit plans, etc. Difference, if any, between the actual results and estimates is recognised in the period in which
the results are known.
The accounts of Indian subsidiaries, joint ventures and associates have been prepared in compliance with the Accounting Standards
as specified in the Companies (Accounting Standards) Rules, 2006 read with Rule 7(1) of the Companies (Accounts) Rules, 2014,
prescribed by the Central Government, and those of the foreign subsidiaries, joint ventures and associates have been prepared
in compliance with the local laws and applicable Accounting Standards. Necessary adjustments for differences in the accounting
policies, wherever applicable, have been made in the Consolidated Financial Statements.
2. Presentation of financial statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III
to the Companies Act, 2013 (“the Act”). The Cash Flow Statement has been prepared and presented as per the requirements of
Accounting Standard (AS) 3 “Cash Flow Statements”. The disclosure requirements 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 accounts
along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015.
Amounts in the financial statements are presented in Indian Rupees in crore [1 crore = 10 million] rounded off to two decimal
places in line with the requirements of Schedule III. Per share data are presented in Indian Rupees to two decimal places.
3. Revenue recognition
Revenue is recognised based on nature of activity when consideration can be reasonably measured and there exists reasonable
certainty of its recovery.
A. Revenue from operations
a.
Sales & service
i.
ii.
iii.
Sales and service include excise duty and adjustments made towards liquidated damages and price variation,
wherever applicable. Escalation and other claims, which are not ascertainable/acknowledged by customers, are not
taken into account.
Revenue from sale of manufactured and traded goods is recognised when the substantial risks and rewards of
ownership are transferred to the buyer under the terms of the contract.
Revenue from property development activity which are in substance similar to delivery of goods, is recognised
when all significant risks and rewards of ownership in the land and/or building are transferred to the customer and
a reasonable expectation of collection of the sale consideration from the customer exists.
Revenue from those property development activities which have the same economic substance as construction
contract is recognised based on the ‘Percentage of Completion method’ (POC) when the outcome of a real estate
project can be estimated reliably upon fulfillment of all the following conditions:
a.
All critical approvals necessary for commencement of the project have been obtained;
b.
When the stage of completion of the project reaches a reasonable level of development i.e. contract costs
for work performed bears a reasonable proportion to the estimated total contract costs. For this purpose,
a reasonable level of development is treated as achieved only if the cost incurred (excluding cost of land/
developmental rights and borrowing cost) is atleast 25% of the total of such cost;
c.
Atleast 25% of the saleable project area is secured by contracts or agreements with buyers;
d.
Atleast 10% of the total revenue as per the agreements of sale or any other legally enforceable documents
are realised at the reporting date in respect of each of the contracts and it is reasonable to expect that the
parties to such contracts will comply with the payment terms as defined in the contracts.
376
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
The costs incurred on property development activities are carried as “Inventories” till such time the outcome of the
project cannot be estimated reliably and all the aforesaid conditions are fulfilled. When the outcome of the project
can be ascertained reliably and all the aforesaid conditions are fulfilled, revenue from property development activity
is recognised at cost incurred plus proportionate margin, using percentage of completion method. Percentage of
completion is determined based on the proportion of actual cost incurred to the total estimated cost of the project.
For this purpose, actual cost includes cost of land and developmental rights but excludes borrowing cost.
Expected loss, if any, on the project is recognised as an expense in the period in which it is foreseen, irrespective of
the stage of completion of the contract.
iv. Revenue from construction/project related activity and contracts for supply/commissioning of complex plant &
equipment is recognised as follows:
a.
b.
Cost plus contracts: Contract revenue is determined by adding the aggregate cost plus proportionate margin
as agreed with the customer.
Fixed price contracts: Contract revenue is recognised only to the extent of cost incurred till such time the
outcome of the job cannot be ascertained reliably. When the outcome of the contract is ascertained reliably
contract revenue is recognised at 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.
Government grants in the nature of subsidy related to customer contracts are recognised as revenue from
operations in the Statement of Profit and Loss, on a prudent basis, in proportion to work completed when
there is reasonable assurance that the conditions for the grant of subsidy will be fulfilled. Expected loss, if any,
on the construction/project related activity is recognised as an expense in the period in which it is foreseen,
irrespective of the stage of completion of the contract. While determining the amount of foreseeable loss, all
elements of costs and related incidental income not included in contract revenue are taken into consideration.
v.
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 similar basis as stated in (iv) supra.
vi. Revenue from construction/project related activity and contracts executed in joint ventures under work-sharing
arrangement [being jointly controlled operations, in terms of Accounting Standard (AS) 27 “Financial Reporting of
Interests in Joint Ventures”], is recognised on the same basis as similar contracts independently executed by the
Company.
vii. Revenue from software development is recognised based on software developed or time spent in person hours or
person weeks, and billed to customers as per the terms of specific contracts. Unbilled revenue represents value of
services performed in accordance with the contract terms but not billed.
viii. Income from hire purchase and lease transactions is accounted on accrual basis, pro-rata for the period, at the
rates implicit in the transaction. Income from bill discounting, advisory and syndication services and other financing
activities is accounted on accrual basis. Income from interest-bearing assets is recognised on accrual basis over
the life of the asset based on the constant effective yield. Loan origination income i.e. processing fees and other
charges collected upfront, are recognised at the inception of the loan. Income including interest or any other
charges on non-performing asset is recognised only when realised. Any such income recognised before the asset
became non-performing and remaining unrealised is reversed.
ix. Revenue relatable to 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 relatable to toll collections of such projects from users of
facilities are accounted when the amount is due and recovery is certain. Licence fees for way-side amenities are
accounted on accrual basis. Revenue from annuity based projects is recognised in the Statement of Profit and Loss
over the concession period of the respective projects based on the implicit rate of return embedded in the projected
cash flows. Such income is duly adjusted for any variation in the amount and timing of the cash flows in the period
in which such variation occurs.
377
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
x.
In respect of information technology (IT) and technology services, revenue from contracts awarded on time and
material basis is recognised when services are rendered and related costs are incurred. Revenue from fixed price
contracts is recognised using the proportionate completion method.
xi. Commission income is recognised as and when the terms of the contract are fulfilled.
xii. Revenue from engineering and service fees is recognised as per the terms of the contract.
xiii. Income from investment management fees is recognised in accordance with the Investment Management
Agreement and 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 Portfolio Management Agreement entered with respective clients over the period
of the agreement in terms of which the services are rendered. Trusteeship fees are accounted on an accrual basis
in accordance with the Trust Deed and are dependent on the net asset value as recorded by the respective mutual
fund schemes.
xiv. Revenue from port operation services is recognised on completion of respective services.
xv. Revenue from charter hire is recognised based on the terms of the time charter agreement.
xvi Revenue from operation and maintenance services of power plant receivable under the Power Purchase Agreement
is recognised on accrual basis.
xvii. Insurance premium (net of service tax) is recognised as income over the contract period or period of risk, as
appropriate, after adjusting for unearned premium (unexpired risk) and premium deficiency, if any. Premium
deficiency, if any, is recognised if the sum of expected claim costs and related claim management costs exceed
related reserve for unexpired risk for every line of business. Reserve for unexpired risk is recognised net of
reinsurance ceded and represents premium written that is attributable and to be allocated to succeeding
accounting periods for risks to be borne by the Company under contractual obligations on a contract period basis
or risk period basis, whichever is appropriate. It is calculated on a daily pro-rata basis, written on policies during
the twelve months preceding the Balance Sheet date for fire, marine cargo and miscellaneous business (excluding
project related engineering insurance contracts) and 100% for marine hull business, on all unexpired policies at
Balance Sheet date, in accordance with Section 64 V(1)(ii)(b) of the Insurance Act, 1938. The reserve for unexpired
risk is computed for project related engineering insurance contract through the usage of Cubic Curve Method. A
reserve for unexpired risks is recorded at 50% of the net premium retro-ceded to the Company from India Motor
Third Party Insurance Pool (IMTPIP) during the year. Reinsurance premium ceded is accounted in the year in which
the risk commences and over the period of risk in accordance with the treaty arrangements with the reinsurers.
Reinsurance premium ceded on unearned premium is carried forward to the period of risk and is set off against
related unearned premium. Premium on excess of loss reinsurance cover is accounted as per the terms of the
reinsurance arrangements.
Commission on reinsurance ceded is recognised as income on ceding of reinsurance premium.
Profit commission under reinsurance treaties, wherever applicable, is recognised in the year of final determination
of the profits.
Claims incurred comprise claims paid, estimated liability for outstanding claims made following a loss occurrence
reported and estimated liability for claims Incurred But Not Reported (‘IBNR’) and claims Incurred But Not Enough
Reported (‘IBNER’). Further, claims incurred also include specific claim settlement costs such as survey/legal fees and
other directly attributable costs.
Claims (net of amounts receivable from reinsurers/co-insurers) are recognised on the date of intimation based on
estimates from surveyors/insured in the respective revenue accounts. Estimated liability for outstanding claims at
Balance Sheet date is recorded net of claims recoverable from/payable to co-insurers/reinsurers and salvage to the
extent there is certainty of realisation. Estimated liability for outstanding claims is determined by management on
the basis of ultimate amounts likely to be paid on each claim based on the past experience. These estimates are
progressively revalidated on availability of further information. IBNR represents that amount of claims that may have
been incurred during the accounting period but have not been reported or claimed. IBNR provision also includes
378
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
provision, if any, required for claims IBNER. Estimated liability for claims Incurred But Not Reported (‘IBNR’) and
claims Incurred But Not Enough Reported (‘IBNER’) is based on actuarial estimate duly certified by the appointed
actuary of the Company. IBNR/IBNER has been created on reinsurance accepted from Indian Motor Third Party
Insurance Pool (IMTPIP) based on actuarial estimates received from the IMTPIP.
b. Other operational revenue
Other operational revenue represents income earned from the activities incidental to the business and is recognised
when the right to receive the income is established as per the terms of the contract.
B. Other income
a.
Interest income is accrued at applicable interest rate.
b. Dividend income is accounted in the period in which the right to receive the same is established.
c. Other Government grants, which are revenue in nature and are towards compensation for the related costs, are
recognised as income in the Statement of Profit and Loss in the period in which the matching costs are incurred.
d. Other items of income are accounted as and when the right to receive arises.
4. Principles of consolidation
a. The financial statements of the Parent Company and its subsidiaries have been consolidated on a line-by-line basis by adding
together the book values of the like items of assets, liabilities, income and expenses, after eliminating intra-group balances
and the unrealised profits/losses on intra-group transactions, and are presented to the extent possible, in the same manner as
the Parent Company’s independent financial statements.
b.
Investments in associate companies have been accounted for, by using equity method whereby investment is initially recorded
at cost and the carrying amount is adjusted thereafter for post-acquisition change in the Company’s share of net assets
of the associate. The carrying amount of investment in associate companies is reduced to recognise any decline which is
other than temporary in nature and such determination of decline in value, if any, is made for each investment individually.
The unrealised profits/losses on transactions with associate companies are eliminated by reducing the carrying amount of
investment.
c. Goodwill on consolidation represents the difference between the Group’s share in the net worth of a subsidiary, an
associate or a joint venture, and the cost of acquisition at each point of time of making the investment in the subsidiary, the
associate or the joint venture as per Accounting Standard (AS) 21 “Consolidated Financial Statements”. For this purpose,
the Group’s share of net worth is determined on the basis of the latest financial statements, prior to the acquisition, after
making necessary adjustments for material events between the date of such financial statements and the date of respective
acquisition. Capital reserve on consolidation represents negative goodwill arising on consolidation. Goodwill arising on
consolidation as per Accounting Standard (AS) 21 ”Consolidated Financial Statements“ is not amortised, however, it is tested
for impairment. In the event of cessation of operations of a subsidiary, associate or joint venture, the unimpaired goodwill is
written off fully.
d. Minority interest represents that part of the net profit or loss and net assets of subsidiaries attributable to interests which
are not owned, directly or indirectly, by the Group. Further, Preference shares issued by the subsidiaries to stakeholders
outside the Group together with dividend accruals thereon also form part of minority interest in the Consolidated Financial
Statements.
e. The gains/losses in respect of part dilution of stake in subsidiary companies pursuant to issue of additional shares to minority
shareholders are recognised directly in capital reserve under reserves and surplus in the Balance Sheet. The gains/losses in
respect of part divestment of stake in subsidiary companies pursuant to sale of shares by the holding company are recognised
in the Statement of Profit and Loss.
379
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
f.
The Company’s interests in joint ventures are consolidated as follows:
Type of joint venture
Jointly controlled operations
Jointly controlled assets
Jointly controlled entities
Accounting treatment
Company’s share of revenues, common expenses, assets and liabilities are included in
revenues, expenses, assets and liabilities respectively.
Share of the assets, according to nature of the assets, and share of the liabilities are shown
as part of gross block and liabilities respectively. Share of expenses incurred on maintenance
of the assets is accounted as expense. Monetary benefits, if any, from use of the assets are
reflected as income.
The Company’s interest in jointly controlled entities are proportionately consolidated on
a line-by-line basis by adding together the book values of assets, liabilities, income and
expenses, after eliminating the unrealised profits/losses on intra-group transactions.
Joint venture interests accounted as above are included in the segments to which they relate.
5. Extraordinary and exceptional items
Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any
external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item
and disclosed as such.
On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the
Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is
classified as an exceptional item and accordingly disclosed in the notes to accounts.
6. Research and development
a. Revenue expenditure on research is expensed under respective heads of account in the period in which it is incurred.
b. Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:
i.
The technical feasibility of completing the intangible asset so that it will be available for use or sale
ii. The Company has intention to complete the intangible asset and use or sell it
iii. The Company has ability to use or sell the intangible asset
iv. 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
v. The availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset and
vi. The Company has ability to measure the expenditure attributable to the intangible asset during its development reliably
The development expenditure capitalised as intangible asset is amortised over its useful life.
Other development costs that do not meet above criteria are expensed in the period in which they are incurred.
7. Employee benefits
a. Short term employee benefits:
All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee
benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia
are recognised in the period in which the employee renders the related service.
b. Post-employment benefits:
i. 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 related service.
380
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
ii.
Defined benefit plans: The employees’ gratuity fund schemes, post-retirement medical care scheme, pension scheme
and provident fund scheme managed by trust are the Company’s defined benefit plans. The present value of the
obligation under such defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit
Method.
The obligation is measured at the present value of the estimated future cash flows. The discount rate used for
determining the present value of the obligation under defined benefit plans, is based on the market yield on government
securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the
Balance Sheet date. Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.
The interest element in the actuarial valuation of defined benefit plans, which comprises the implicit interest cost and
the impact of changes in discount rate, is classified under finance cost and balance charge is recognised as employee
benefit expenses in the Statement of Profit and Loss. 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.
Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or
settlement occurs. Past service cost is recognised as expense on a straight line basis over the average period until the
benefits become vested.
c.
Long term employee benefits:
The obligation for long term employee benefits such as long term compensated absences, long service award etc. is
recognised in the similar manner as in the case of defined benefit plans as mentioned in (b)(ii) supra.
d. Termination benefits:
Termination benefits such as compensation under voluntary retirement cum pension scheme are recognised as expense in the
period in which they are incurred.
8. Tangible fixed assets
Tangible fixed assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and cumulative
impairment and those which were revalued as on October 1,1984 are stated at the values determined by the valuers less
accumulated depreciation and cumulative impairment. Assets acquired on hire purchase basis are stated at their cash values.
Specific know-how fees paid, if any, relating to plant & equipment is treated as part of cost thereof.
Administrative and other general overhead expenses that are specifically attributable to construction or acquisition of fixed assets
or bringing the fixed assets to working condition are allocated and capitalised as a part of the cost of the fixed assets.
Own manufactured assets are capitalised at cost including an appropriate share of overheads.
Tangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”.
(Also refer to policy on leases, borrowing costs, impairment of assets and foreign currency transactions infra).
9. Leases
The determination of whether an agreement is, or contains, a lease is based on the substance of the agreement at the date of
inception.
a. Lease transactions entered into prior to April 1, 2001:
Assets leased out are stated at original cost. Lease equalisation adjustment is the difference between capital recovery included
in the lease rentals and depreciation provided in the books of account. Lease rentals in respect of assets acquired under leases
are charged to the Statement of Profit and Loss.
b. Lease transactions entered into on or after April 1, 2001:
Finance leases:
i. Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified
as finance leases. Such assets are capitalised at the inception of the lease at the lower of the fair value or the present
value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated
381
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability
for each period.
ii. Assets given under leases where the Company has transferred substantially all the risks and rewards of ownership to
lessee, are classified as finance leases. Where under a contract, the Company 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, such arrangement is also accounted as finance lease.
iii. Assets given under a finance lease are recognised as a receivable at an amount equal to the net investment in the lease.
Wherever the asset is manufactured/constructed by the Company, the fair value of the asset, representing the net
investment in the lease, is recognised as sales revenue in accordance with the Company’s revenue recognition policy.
Lease income is recognised over the period of the lease so as to yield a constant rate of return on the net investment in
the lease.
iv.
Initial direct costs relating to assets given on finance leases are charged to the Statement of Profit and Loss.
Operating leases:
i. Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Lease rentals are charged to the Statement of Profit and Loss on accrual basis.
ii. Assets leased out under operating leases are capitalised. Rental income is recognised on accrual basis over the lease
term.
(Also refer to policy on depreciation infra).
10. Depreciation
A.
Indian companies
a.
Owned assets
i.
Revalued assets:
Depreciation on assets carried at revalued amount i.e., values determined by valuers is provided on straight line
method on the basis of useful life as specified in Schedule II to the Companies Act, 2013 except in respect of
certain assets where the useful life was determined by technical evaluation.
With effect from April 1, 2015, the difference between depreciation provided on revalued amount and on historical
cost is transferred from revaluation reserve to retained earnings.
ii. Assets carried at historical cost:
Depreciation on assets carried at historical cost is provided on straight line method on the basis of useful life as
specified in Schedule II to the Companies Act, 2013 except in respect of certain assets where the useful life was
determined by technical evaluation. The carrying amount of the assets as on April 1, 2014 is depreciated over the
remaining useful life. Where the useful life of the asset has expired, the carrying amount as on April 1, 2014 has
been charged to the retained earnings as on April 1, 2014.
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. In respect of asset components,
whose useful life has expired as on April 1, 2015, the carrying amount as on April 1, 2015 has been charged to the
retained earnings as on April 1, 2015.
iii. Depreciation for additions to/deductions from owned assets is calculated pro-rata. Extra shift depreciation is
provided on a location basis.
iv. 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.
382
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
b.
Leased assets
i.
Lease transactions entered into prior to April 1, 2001:
Lease charge comprising statutory depreciation and lease equalisation charge is provided for assets given on
lease over the primary period of the lease equal to recovery of net investment in the lease. Accordingly, while the
statutory depreciation on such assets is provided for on straight line method as per Schedule II to the Companies
Act, 2013, the difference is adjusted through lease equalisation and lease adjustment account.
ii.
Lease transactions entered into on or after April 1, 2001:
Assets acquired under finance leases are depreciated on a straight line basis over the lease term. Where there is
reasonable certainty that the Company shall obtain ownership of the assets at the end of the lease term, such
assets are depreciated based on the useful life prescribed under Schedule II to the Companies Act, 2013 or based
on the useful life adopted by the Company for similar assets.
iii.
Leasehold improvements:
Leasehold improvements are amortised over the period of lease.
iv.
Leasehold land:
Land acquired under long term lease is classified under “tangible assets” and is depreciated over the period of
lease.
B. Foreign companies
Depreciation has been provided on methods and at the rates required/permissible by the local laws so as to write off the
assets over their useful lives.
11. Intangible assets and amortisation
Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative
impairment. 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 amortised as follows:
a. Specialised software: over a period of three to ten years;
b.
Technical know-how: over a period of three to seven years;
c. Development costs for new products: over a period five years;
d. Customer contracts and relationships: over a period of seven to ten years;
e. 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) projects undertaken by the Group. Toll collection
rights are capitalised as intangible asset upon completion of the project at the cumulative construction costs including
related margins (refer to policy on revenue recognition supra) plus obligation towards negative grants payable to National
Highway Authority of India (NHAI), if any. Till the completion of the project, the same is recognised as intangible assets under
development. The revenue towards collection of toll/other income during the period of construction is reduced from the cost
of intangible asset under development.
Toll collection rights in respect of road projects are amortised over the period of concession using the revenue based
amortisation method prescribed under Schedule II to the Companies Act, 2013. Under the revenue based amortisation
method, amortisation is provided based on proportion of actual revenue earned till the end of the year to the total projected
revenue from the intangible assets expected to be earned over the concession period. Total projected revenue is reviewed at
the end of each financial year and is adjusted to reflect changes in earlier estimate vis-à-vis the actual revenue earned till the
end of the year so that the whole of the cost of the intangible asset is amortised over the concession period.
f.
Exploration and evaluation expenditure incurred for potential mineral reserves is recognised and reported as part of
“intangible assets under development” under “intangible assets” when such costs are expected to be either recouped in
383
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
full through successful exploration and development of the area of interest or alternatively, by its sale; or when exploration
and evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the
existence or otherwise of economically available reserves and active and significant operations in relation to the area are
continuing or are planned for the future. Exploration assets are re-assessed on a regular basis and these costs are carried
forward provided that at least one of the conditions outlined above is met. All other exploration and evaluation expenditure is
recognised as expense in the period in which it is incurred.
g. Utility right to use costs are amortised over the period of ’agreement to use‘, but not exceeding 10 years.
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.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “intangible assets under
development”.
Amortisation on impaired assets is provided by adjusting the amortisation charges in the remaining periods so as to allocate
the assets‘ revised carrying amount over its remaining useful life.
12. Impairment of assets
As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:
a.
the provision for impairment loss, if any; and
b.
the reversal of impairment loss recognised in previous periods, if any.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.
Recoverable amount is determined:
a.
in the case of an individual asset, at the higher of the net selling price and the value in use;
b.
in the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of
the cash generating unit’s net selling price and the value in use.
(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its
disposal at the end of its useful life).
13. Investments
Trade investments comprise investments in entities in which the Company has strategic business interest.
Investments, which are readily realisable and are intended to be held for not more than one year from the date of acquisition, are
classified as current investments. All other investments are classified as long term investments.
Long term investments (other than associates) including trade investments are carried at cost, after providing for any diminution in
value, if such diminution is other than temporary in nature.
Current investments are carried at lower of cost and fair value. The determination of carrying amount of such investments is done
on the basis of weighted average cost of each individual investment.
Investment in associate companies is accounted using “equity method” [Note R(4)(b)]. Purchase and sale of investments are
recognised based on the trade date accounting.
14. Inventories
Inventories are valued after providing for obsolescence, as under:
a. Raw materials, components, construction materials, stores, spares and loose tools at lower of cost or net realisable value.
However, these items are considered to be realisable at cost if the finished goods in which they will be used, are expected to
be sold at or above cost;
384
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
b. Manufacturing work-in-progress at lower of cost including related overheads or net realisable value. In some cases,
manufacturing work-in-progress is 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;
c.
Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of cost or net realisable value. Cost
includes related overheads and excise duty paid/payable on such goods; and
d. Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically
identifiable cost or net realisable value.
Cost of inventories is computed either on a weighted average or on First-in-First-out (FIFO) basis.
15. Cash and bank balances
Cash and bank balances also 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 not free from more than insignificant risk
of change in value, are not included as part of cash and cash equivalents.
16. Government grant of capital nature
Grants received/receivable from NHAI in the nature of “promoter contribution” are credited to “capital reserve”.
17. Securities premium account
a.
Securities premium includes:
i.
The difference between the market value and the consideration received in respect of shares issued pursuant to Stock
Appreciation Rights Scheme; and
ii.
The discount allowed, if any, in respect of shares allotted pursuant to Stock Options Scheme.
b. The following expenses are written off against securities premium account:
i.
Expenses incurred on issue of shares;
ii.
Expenses (net of tax) incurred on issue of debentures/bonds; and
iii.
Premium (net of tax) on redemption of debentures/bonds.
18. Borrowing costs
Borrowing costs include interest, commitment charges, amortisation of ancillary costs, amortisation of discounts/premium related
to borrowings, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign
currency borrowings, to the extent they are regarded as an adjustment to interest costs.
Borrowing costs 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 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
as an expense in the period in which they are incurred.
19. Employee stock ownership schemes
In respect of stock options granted pursuant to the Company’s Stock Options Scheme, the intrinsic value of the options (excess of
market price of the share over the exercise price of the option) is treated as discount and accounted as employee compensation
cost over the vesting period. The amount recognised as expense 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.
20. Foreign currency transactions, foreign operations, forward contracts and derivatives
a. The reporting currency of the Company is Indian Rupee.
b. Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date
of the transaction. At each Balance Sheet date, foreign currency monetary items are reported using the closing rate.
385
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
Non-monetary items, carried at historical cost denominated in a foreign currency, are reported using the exchange rate at the
date of the transaction.
Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet
date at the closing rate are:
i.
adjusted in the cost of fixed assets specifically financed by the borrowings contracted upto March 31, 2004 to which the
exchange differences relate;
ii. adjusted in the cost of fixed assets specifically financed by borrowings contracted between the period April 1, 2004 to
March 31, 2007 and to which the exchange differences relate, provided the assets are acquired from outside India;
iii.
recognised as income or expense in the period in which they arise, in cases other than (i) and (ii) supra.
c.
Financial statements of foreign operations comprising jobs contracted prior to April 1, 2004, are translated as follows:
i. Closing inventories at rates prevailing at the end of the year.
ii.
Fixed assets as at April 1, 1991 at rates prevailing at the end of the year in which the additions were made. Subsequent
additions are at rates prevailing on the dates of the additions. Depreciation is accounted at the same rate at which the
assets are translated.
iii. Other assets and liabilities at rates prevailing at the end of the year.
iv. Net revenues at the average rate for the year.
d. Financial statements of foreign operations comprising jobs contracted on or after April 1, 2004, are treated as integral
operations and translated as in the same manner as foreign currency transactions, as described supra. Exchange differences
arising on such translation are recognised as income or expense of the period in which they arise.
e. Financial statements of overseas non-integral operations are translated as under:
i. Assets and liabilities at the rate prevailing at the end of the year. Depreciation and amortisation is accounted at the same
rate at which assets are converted.
ii.
Revenues and expenses at yearly average exchange rates prevailing during the year.
Exchange differences arising on translation of non-integral foreign operations are accumulated in the foreign currency
translation reserve until the disposal of such operations.
f.
Forward contracts, other than those entered into to hedge foreign currency risk on unexecuted firm commitments or highly
probable forecasted transactions, are treated as foreign currency transactions and accounted accordingly as per Accounting
Standard (AS) 11 “The Effects of Changes in Foreign Exchange Rates”. Exchange differences arising on such contracts are
recognised in the period in which they arise.
Gains and losses arising on account of roll over/cancellation of forward contracts are recognised as income/expense of the
period in which such roll over/cancellation takes place.
g. All the other derivative contracts, including forward contracts entered into to hedge foreign currency risks on unexecuted firm
commitments and highly probable forecasted transactions, are recognised in the financial statements at fair value as on the
Balance Sheet date, in pursuance of the announcement of the ICAI dated March 29, 2008 on accounting of derivatives. In
addition, the derivative arrangements embedded in the contracts entered in the course of business are accounted separately
if the economic characteristics and risks of the embedded derivatives are not closely related to economic characteristics and
risks of the host contract.
The Company has adopted Accounting Standard (AS) 30 “Financial Instruments: Recognition and Measurement” for
accounting of such derivative contracts, not covered under Accounting Standard (AS) 11 “The Effects of Changes in Foreign
Exchange Rates”, as mandated by the ICAI in the aforesaid announcement.
Accordingly, the resultant gains or losses on fair valuation/settlement of the derivative contracts (including embedded
derivatives) covered under Accounting Standard (AS) 30 “Financial Instruments: Recognition and Measurement” are
recognised in the Statement of Profit and Loss or Balance Sheet as the case may be after applying the test of hedge
386
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
effectiveness. Where the hedge in respect of off-balance sheet items is effective, the gains or losses are recognised in the
“hedging reserve” which forms part of “reserves and surplus” in the Balance Sheet. The amount recognised in the “hedging
reserve” is transferred to the Statement of Profit and Loss in the period in which the underlying hedged item affects the
Statement of Profit and Loss. Gains and losses in respect of ineffective hedges are recognised in the Statement of Profit and
Loss in the period in which such gains or losses are incurred.
h. The premium paid/received on a foreign currency forward contract is accounted as expense/income over the life of the
contract.
21. Segment accounting
a.
Segment accounting policies
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:
i.
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.
ii. 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) certain projects under Developmental Projects segment viz. power
generation projects & power transmission system projects which are classified as finance lease and annuity based
road projects, the interest expenses on borrowings are accounted as segment expenses. Expenses which relate to the
Company as a whole and not allocable to segments are included under “unallocable corporate expenditure”.
iii.
Income which relates to the Company as a whole and not allocable to segments is included in “unallocable corporate
income”.
iv. Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of
the Company.
v. Segment assets and liabilities include those directly identifiable with the respective segments. In respect of (a) financial
services segment, and (b) certain projects under developmental projects segment viz. power generation projects & power
transmission system projects which are classified as finance lease and annuity based road projects, segment liabilities
include borrowings as the interest expenses on borrowings are accounted as segment expenses in respect of the
segment and projects.
Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and
not allocable to any segment.
vi. Segment non-cash expenses forming part of segment expenses include the intrinsic value of the employee stock options
which is accounted as employee compensation cost [Note R(19)] and is allocated to the segment.
b.
Inter-segment transfer pricing
Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed
between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated basis.
22. Taxes on income
a.
Indian companies:
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 based on the expected outcome of assessments/appeals.
Deferred tax is recognised on timing differences between the income accounted in financial statements and the taxable
income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet
date.
387
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised
and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realised.
Other deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
b.
Foreign companies:
Foreign companies recognise tax liabilities and assets in accordance with the applicable local laws.
23. Provisions, contingent liabilities and contingent assets
Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if
a.
the Company has a present obligation as a result of a past event
b. a probable outflow of resources is expected to settle the obligation and
c.
the amount of the obligation can be reliably estimated
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
a.
a present obligation arising from past events, when it is not probable that an outflow of resources will be required to
settle the obligation
b. a present obligation arising from past events, when no reliable estimate is possible
c. a possible obligation arising from past events, where the probability of outflow of resources is not remote
Contingent assets are neither recognised, nor disclosed.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
24. Commitments
Commitments are future liabilities for contractual expenditure.
Commitments are classified and disclosed as follows:
a. Estimated amount of contracts remaining to be executed on capital account and not provided for
b. Uncalled liability on shares and other investments partly paid
c.
Funding related commitments to associate and joint venture companies and
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.
25. Operating cycle for current and non-current classification
Operating cycle for the business activities of the Company covers the duration of the specific project/contract/product line/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.
26. Deferred payment liabilities
The obligation towards additional concession fee payable to NHAI is recognised as deferred payment liability when the Company,
in its capacity of Concessionaire, becomes entitled to exercise the right and collect toll in accordance with the terms of the
concession agreement on Commercial Operations Date.
388
Notes forming part of the Consolidated Accounts (contd.)
NOTE [R] SIGNIFICANT ACCOUNTING POLICIES (contd.)
27. Cash flow statement
Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:
a.
transactions of a non-cash nature
b.
any deferrals or accruals of past or future operating cash receipts or payments and
c.
items of income or expense associated with investing or financing cash flows
Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash
equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a
specific disclosure.
389
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries”
crore
Sr. no.
Particulars
Sr.
no.
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
% of share holding
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Sr. no.
Particulars
Sr.
no.
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
% of share holding
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
390
1
L&T Cutting
Tools
Limited
31-Mar-16
2
Bhilai
Power
Supply
Company
Limited
31-Mar-16
3
L&T-Sargent
& Lundy
Limited
4
Spectrum
Infotech
Private
Limited
5
L&T-Valdel
Engineering
Limited
6
L&T
Shipbuilding
Limited
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
7
L&T
Electricals
and
Automation
Limited
31-Mar-16
8
Hi-Tech
Rock
Products &
Aggregates
Limited
31-Mar-16
–
–
–
–
–
–
–
–
6.80
0.05
5.57
0.44
1.18
2315.86
0.05
0.05
30.07
44.82
81.69
81.69
0.01
159.00
20.52
3.97
16.55
(14.28)
–
–
–
100.00
–
8.81
8.86
8.86
–
–
–
–
–
–
–
–
–
99.90
51.47
72.58
129.62
129.62
64.90
131.29
24.14
7.45
16.69
(19.16)
–
–
–
50.0001
17.35
13.31
31.10
31.10
–
17.04
1.89
0.63
1.26
–
–
–
–
100.00
70.23
27.14
98.55
98.55
0.35
123.23
18.34
6.90
11.44
–
–
–
–
100.00
9
L&T
Seawoods
Limited
10
L&T-Gulf
Private
Limited
11
L&T-MHPS
Boilers
Private
Limited
12
L&T-MHPS
Turbine
Generators
Private
Limited
13
Raykal
Aluminium
Company
Private
Limited
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
(2215.54)
4873.58
4973.90
4973.90
8.39
548.05
(689.08)
–
(689.08)
–
–
–
–
97.00
14
L&T Special
Steels and
Heavy
Forgings
Private
Limited
31-Mar-16
(0.02)
0.03
0.06
0.06
–
–
–
–
–
–
–
–
–
100.00
15
PNG
Tollway
Limited
4.27
43.85
48.17
48.17
–
145.87
3.33
1.27
2.06
–
–
–
–
100.00
16
Kesun Iron
& Steel
Company
Private
Limited
31-Mar-16
31-Mar-16
–
–
–
–
–
–
–
–
2233.20
8.00
234.10
710.60
0.05
566.60
292.22
0.01
945.76
383.18
3562.14
3562.14
0.64
229.21
14.51
3.10
11.41
–
–
–
–
100.00
14.68
6.12
28.80
28.80
0.39
19.33
3.04
1.05
1.99
–
–
–
–
50.0002
519.98
2669.02
3423.10
3423.10
457.34
1711.70
362.86
105.33
257.53
–
–
–
–
51.00
(508.95)
2440.45
2642.10
2642.10
–
718.27
(86.98)
(0.31)
(86.67)
–
–
–
–
51.00
0.36
0.53
0.94
0.94
–
–
(0.03)
–
(0.03)
–
–
–
–
75.50
(1074.77)
2119.99
1611.82
1611.82
–
94.63
(284.27)
–
(284.27)
–
–
–
–
74.00
(369.14)
1737.75
1660.83
1660.83
0.09
84.90
(144.67)
–
(144.67)
–
–
–
–
72.11
(0.26)
0.26
0.01
0.01
–
–
–
–
–
–
–
–
–
95.00
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” (contd.)
crore
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
17
L&T Howden
Private
Limited
18
L&T Sapura
Shipping
Private
Limited
19
L&T Sapura
Offshore
Private
Limited
20
Ewac Alloys
Limited
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
21
L&T
Kobelco
Machinery
Private
Limited
31-Mar-16
22
L&T Valves
Limited
23
L&T Realty
Limited
31-Mar-16
31-Mar-16
24
Chennai
Vision
Developers
Private
Limited
31-Mar-16
–
–
–
–
–
–
–
–
30.00
158.85
0.01
8.29
50.00
18.00
695.46
0.01
6.33
126.10
162.43
162.43
–
137.98
27.53
11.37
16.16
–
–
–
–
50.10
39.56
491.27
689.68
689.68
–
198.93
22.57
0.52
22.05
–
–
–
–
60.00
0.86
13.76
14.63
14.63
–
6.28
1.22
0.26
0.96
–
–
–
–
60.00
87.59
74.88
170.76
170.76
20.42
220.64
52.41
18.01
34.40
(25.05)
–
–
–
100.00
(16.79)
58.57
91.78
91.78
2.00
100.08
3.64
0.01
3.63
–
–
–
–
51.00
502.64
739.18
1259.82
1259.82
–
1465.32
208.75
70.84
137.91
–
–
–
–
100.00
51.81
297.76
1045.03
1045.03
80.25
294.85
328.17
46.11
282.06
–
–
–
–
100.00
(0.02)
0.02
0.01
0.01
–
–
0.01
–
0.01
–
–
–
–
100.00
25
L&T South
City Projects
Limited
26
L&T Vision
Ventures
Limited
27
L&T Power
Limited
28
L&T
Cassidian
Limited
29
L&T General
Insurance
Company
Limited
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
30
L&T
Aviation
Services
Private
Limited
31-Mar-16
31
Larsen
& Toubro
Infotech
Limited
32
GDA
Technologies
Limited
31-Mar-16
31-Mar-16
–
–
–
–
–
–
–
–
56.48
0.05
0.05
0.05
705.00
45.60
16.98
0.17
77.58
208.92
342.98
342.98
–
0.74
(5.55)
(11.25)
5.70
–
–
–
–
51.00
(4.65)
10.84
6.24
6.24
–
–
(0.02)
–
(0.02)
–
–
–
–
68.00
4.59
0.07
4.71
4.71
4.69
–
0.21
–
0.21
–
–
–
–
99.99
(0.01)
–
0.04
0.04
–
–
–
–
–
–
–
–
–
74.00
(562.71)
581.23
723.52
723.52
595.11
288.69
(102.02)
–
(102.02)
–
–
–
–
100.00
(1.43)
62.65
106.82
106.82
–
27.58
0.03
(0.06)
0.09
–
–
–
–
100.00
1846.29
1374.76
3238.03
3238.03
322.36
5569.52
1153.17
215.04
938.13
(546.73)
–
(44.15)
–
94.96
36.91
0.01
37.09
37.09
36.19
–
1.91
0.07
1.84
–
–
–
–
94.96
391
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” (contd.)
crore
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
392
33
L&T Finance
Holdings
Limited
34
L&T Housing
Finance
Limited
31-Mar-16
31-Mar-16
35
Consumer
Financial
Services
Limited
31-Mar-16
36
Family
Credit
Limited
37
L&T Finance
Limited
38
L&T Capital
Markets
Limited
31-Mar-16
31-Mar-16
31-Mar-16
39
L&T
Investment
Management
Limited
31-Mar-16
40
L&T Mutual
Fund Trustee
Limited
31-Mar-16
–
–
–
–
–
–
–
–
3084.86
121.40
1.00
204.31
238.42
47.75
251.82
0.15
2102.47
767.52
5954.85
5954.85
5571.01
348.50
368.09
(9.95)
378.04
(0.06)
(162.07)
(140.27)
–
66.71
473.00
6987.03
7581.43
7581.43
638.83
657.85
89.29
31.25
58.04
–
–
–
–
66.71
(0.61)
–
0.39
0.39
–
0.01
–
–
–
–
–
–
–
66.71
427.66
4771.56
5403.53
5403.53
43.61
776.22
134.32
46.92
87.40
–
–
–
–
66.71
1896.45
13107.21
15242.08
15242.08
143.07
2338.45
317.59
110.37
207.22
(301.98)
–
–
–
66.71
41
L&T FinCorp
Limited
42
L&T
Infrastructure
Finance
Company
Limited
43
L&T Infra
Debt Fund
Limited
31-Mar-16
31-Mar-16
31-Mar-16
44
L&T Infra
Investment
Partners
Advisory
Private
Limited
31-Mar-16
45
L&T infra
Investment
Partners
Trustee
Private
Limited
31-Mar-16
(40.79)
7.59
14.55
14.55
5.28
28.97
(23.73)
–
(23.73)
–
–
–
–
66.71
238.63
30.78
521.23
521.23
79.37
245.19
(51.90)
–
(51.90)
–
–
–
–
66.71
46
L&T
Vrindavan
Properties
Limited
47
L&T Access
Distribution
Services
Limited
1.42
0.03
1.60
1.60
1.34
0.05
0.04
0.01
0.03
–
–
–
–
66.71
48
Mudit
Cement
Private
Limited
31-Mar-16
31-Mar-16
31-Mar-16
–
–
–
–
–
–
–
–
272.97
846.25
570.97
5.00
0.10
18.75
6.00
2.10
746.50
6398.38
7417.85
7417.85
325.26
773.19
279.06
95.69
183.37
–
–
–
–
66.71
2017.11
21367.89
24231.25
24231.25
2037.34
2382.00
353.51
113.47
240.04
–
–
–
–
66.71
150.53
1896.03
2617.53
2617.53
181.75
81.47
39.29
–
39.29
–
–
–
(5.02)
66.71
3.18
2.55
10.73
10.73
8.59
11.88
8.56
2.65
5.91
–
–
–
–
66.71
(0.05)
0.02
0.07
0.07
0.07
0.03
0.01
–
0.01
–
–
–
–
66.71
71.59
411.15
501.49
501.49
19.10
10.87
(21.70)
2.60
(24.30)
–
–
–
–
66.71
(17.24)
15.77
4.53
4.53
–
4.87
(0.41)
4.24
(4.65)
–
–
–
–
66.71
(10.25)
44.58
36.43
36.43
–
–
(3.95)
1.71
(5.66)
–
–
–
–
66.71
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” (contd.)
crore
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
49
L&T Capital
Company
Limited
50
L&T Trustee
Company
Private
Limited
51
L&T Power
Development
Limited
52
L&T
Uttaranchal
Hydropower
Limited
53
L&T
Arunachal
Hydropower
Limited
54
L&T
Himachal
Hydropower
Limited
55
Nabha
Power
Limited
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
56
L&T
Infrastructure
Development
Projects
Limited
31-Mar-16
–
–
–
–
–
–
–
–
0.05
0.01
3112.70
287.25
40.01
196.08
2397.60
2321.06
6.35
6.57
12.97
12.97
5.56
2.97
5.23
1.06
4.17
–
–
–
–
100.00
(0.01)
–
–
–
–
–
–
–
–
–
–
–
–
100.00
3.01
1.92
3117.63
3117.63
3105.40
11.41
1.27
0.47
0.80
–
–
–
–
100.00
484.79
31.23
803.27
803.27
1.51
–
0.75
0.06
0.69
–
–
–
–
100.00
0.20
0.54
40.75
40.75
0.05
–
–
–
–
–
–
–
–
100.00
(0.27)
0.97
196.78
196.78
0.06
–
(0.26)
–
(0.26)
–
–
–
–
100.00
561.69
8406.51
11365.80
11365.80
–
3298.35
250.64
54.43
196.21
–
–
–
–
100.00
2665.95
1174.33
6161.34
6161.34
4652.83
1013.50
(557.01)
1.93
(558.94)
–
–
–
–
97.45
57
L&T Panipat
Elevated
Corridor
Limited
31-Mar-16
58
L&T
Krishnagiri
Thopur Toll
Road Limited
31-Mar-16
59
L&T Western
Andhra
Tollways
Limited
31-Mar-16
60
L&T Vadodara
Bharuch
Tollway
Limited
31-Mar-16
61
L&T
Transportation
Infrastructure
Limited
31-Mar-16
62
L&T Western
India
Tollbridge
Limited
31-Mar-16
63
L&T
Interstate
Road Corridor
Limited
31-Mar-16
64
L&T Port
Kachchigarh
Limited
31-Mar-16
–
–
–
–
–
–
–
–
84.30
78.75
56.50
43.50
41.40
13.95
57.16
4.16
(303.99)
659.03
439.34
439.34
14.96
59.07
(29.06)
–
(29.06)
–
–
–
–
97.45
(102.39)
573.85
550.21
550.21
29.05
128.19
13.41
2.86
10.55
–
–
–
–
97.45
(73.93)
258.21
240.78
240.78
27.88
63.25
(2.94)
–
(2.94)
–
–
–
–
97.45
(328.72)
1028.22
743.00
743.00
44.37
282.13
9.86
2.01
7.85
–
–
–
–
97.45
115.17
106.54
263.11
263.11
5.30
25.78
17.93
(2.34)
20.27
–
–
–
–
98.12
18.83
0.15
32.93
32.93
0.50
–
2.49
0.54
1.95
–
–
–
–
97.45
9.87
408.86
475.89
475.89
72.93
86.42
(17.44)
0.23
(17.67)
–
–
–
–
97.45
(4.60)
0.44
–
–
–
–
(0.03)
–
(0.03)
–
–
–
–
97.45
393
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” (contd.)
crore
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. no.
Particulars
Sr.
no.
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
% of share holding
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
394
65
L&T
Ahmedabad
-Maliya
Tollway
Limited
31-Mar-16
66
L&T Halol
-Shamlaji
Tollway
Limited
31-Mar-16
67
L&T
Krishnagiri
Walajahpet
Tollway
Limited
31-Mar-16
68
L&T
Devihalli
Hassan
Tollway
Limited
31-Mar-16
69
L&T
Metro Rail
(Hyderabad)
Limited
70
L&T Chennai
-Tada Tollway
Limited
71
L&T BPP
Tollway
Limited
72
L&T Rajkot
-Vadinar
Tollway
Limited
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
–
–
–
–
–
–
–
–
346.32
389.52
90.00
90.00
2030.66
42.00
247.20
228.04
(283.52)
1375.99
1438.79
1438.79
40.19
152.84
(53.98)
0.03
(54.01)
–
–
–
–
97.45
(365.29)
1208.75
1232.98
1232.98
–
74.80
(96.91)
–
(96.91)
–
–
–
–
97.45
(11.82)
1046.58
1124.76
1124.76
4.80
124.28
(4.85)
–
(4.85)
–
–
–
–
97.45
148.63
317.25
555.88
555.88
1.80
37.68
(14.64)
0.02
(14.66)
–
–
–
–
97.45
(6.48)
8080.89
10105.07
10105.07
29.26
–
(7.14)
–
(7.14)
–
–
–
–
97.48
(0.19)
390.80
432.61
432.61
–
–
–
–
–
–
–
–
–
97.45
(51.45)
10381.57
10577.32
10577.32
26.72
242.37
(47.66)
–
(47.66)
–
–
–
–
97.45
73
L&T Deccan
Tollways
Limited
31-Mar-16
74
L&T
Samakhiali
Gandhidham
Tollway
Limited
31-Mar-16
75
Kudgi
Transmission
Limited
31-Mar-16
76
L&T
Sambalpur-
Rourkela
Tollway
Limited
31-Mar-16
77
L&T
Technology
Services
Limited
78
L&T
Construction
Equipment
Limited
79
L&T
Infrastructure
Engineering
Limited
31-Mar-16
31-Mar-16
31-Mar-16
(269.78)
1036.98
995.24
995.24
1.21
91.76
(56.64)
–
(56.64)
–
–
–
–
97.45
80
L&T Thales
Technology
Services
Private
Limited
31-Mar-16
–
–
–
–
–
–
–
–
152.50
126.03
192.60
215.85
1050.00
120.00
3.60
2.05
(2.20)
652.93
803.23
803.23
7.05
–
(1.13)
–
(1.13)
–
–
–
–
97.45
(62.23)
3423.18
3486.98
3486.98
0.14
110.68
(58.64)
–
(58.64)
–
–
–
–
97.45
(2.15)
1155.71
1346.16
1346.16
7.47
–
(0.59)
0.01
(0.60)
–
–
–
–
97.45
(2.45)
466.33
679.73
679.73
2.63
–
(1.08)
–
(1.08)
–
–
–
–
97.45
66.25
706.48
1822.73
1822.73
61.63
2894.04
552.01
117.77
434.24
(227.00)
(75.00)
–
–
100.00
115.88
293.31
529.19
529.19
35.30
460.51
1.02
0.43
0.59
–
–
–
–
100.00
31.41
20.74
55.75
55.75
–
39.79
1.37
0.54
0.83
–
–
–
–
100.00
(5.21)
28.88
25.72
25.72
–
36.75
(1.82)
–
(1.82)
–
–
–
–
74.00
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” (contd.)
crore
Sr. no.
Particulars
Sr.
no.
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
% of share holding
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
82
Larsen &
Toubro LLC
81
L&T
Hydrocarbon
Engineering
Limited
83
Larsen
& Toubro
Infotech
GmbH
84
Larsen
& Toubro
Infotech
Canada
Limited
85
Larsen
& Toubro
Infotech LLC
86
L&T Infotech
Financial
Services
Technologies
Inc.
87
Larsen
& Toubro
Infotech
South Africa
(PTY) Limited
31-Mar-16
–
31-Dec-15
USD
66.16
31-Mar-16
EURO
75.37
31-Mar-16
CAD
51.22
31-Mar-16
USD
66.25
31-Mar-16
CAD
51.22
31-Mar-16
ZAR
4.49
88
L&T
Information
Technology
Services
(Shanghai)
Co. Ltd.
31-Dec-15
CNY
10.23
1760.05
0.35
0.11
–
–
280.00
0.27
1.10
(484.17)
4350.46
5626.34
5626.34
228.74
7111.24
127.02
40.55
86.47
–
–
–
–
100.00
89
L&T
Infrastructure
Development
Projects Lanka
(Private)
Limited
31-Mar-16
LKR
0.46
2.07
0.52
2.94
2.94
–
7.95
0.25
0.05
0.20
–
–
–
–
100.00
28.07
10.50
38.68
38.68
–
93.41
6.50
0.82
5.68
–
–
–
–
94.96
10.04
5.23
15.27
15.27
–
67.56
4.06
0.98
3.08
–
–
–
–
94.96
11.26
0.54
11.80
11.80
–
13.35
1.25
–
1.25
–
–
–
–
94.96
91
L&T Realty
FZE
90
L&T IDPL
Trustee
Manager Pte
Ltd.
92
Larsen &
Toubro
International
FZE
93
Larsen &
Toubro
Hydrocarbon
International
Limited LLC
47.11
26.44
353.55
353.55
–
235.50
27.09
7.74
19.35
–
–
–
–
94.96
94
Thalest
Limited
1.80
22.26
24.33
24.33
–
56.41
0.79
0.27
0.52
–
–
–
–
71.12
(0.60)
1.91
2.41
2.41
–
4.19
0.22
–
0.22
–
–
–
–
94.96
95
Servowatch
Systems
Limited
96
Larsen &
Toubro
(Oman) LLC
31-Mar-16
SGD
49.24
31-Dec-15
AED
18.01
31-Mar-16
USD
66.25
31-Dec-15
SAR
17.64
31-Mar-16
GBP
95.45
31-Mar-16
GBP
95.45
31-Dec-15
OMR
171.83
70.25
6.16
16.21
1817.50
0.88
1.28
24.34
25.04
(2.71)
26.89
94.43
94.43
–
–
1.18
0.06
1.12
–
–
–
–
93.48
(5.28)
0.04
0.92
0.92
–
–
(0.80)
–
(0.80)
–
–
–
–
97.45
(6.20)
0.13
10.14
10.14
–
–
0.34
–
0.34
–
–
–
–
100.00
(981.99)
461.43
1296.94
1296.94
382.29
–
(389.88)
–
(389.88)
–
–
–
–
100.00
(0.93)
5.98
5.93
5.93
–
–
(0.51)
–
(0.51)
–
–
–
–
100.00
6.85
0.06
8.19
8.19
–
–
(0.24)
0.06
(0.30)
–
–
–
–
100.00
(30.33)
48.86
42.87
42.87
–
87.67
1.49
–
1.49
–
–
–
–
100.00
313.47
2436.57
2775.08
2775.08
–
2930.84
3.81
2.04
1.77
–
–
–
–
65.00
395
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” (contd.)
crore
Sr. no.
Particulars
Sr.
no.
1
Financial year ending on
Currency
Exchange rate on the last day of financial year
Share capital (including share application money pending
allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. no.
Particulars
Sr.
no.
104
Larsen &
Toubro
Readymix
& Asphalt
Concrete
Industries
LLC
97
Larsen &
Toubro
Electromech
LLC
98
L&T Modular
Fabrication
Yard LLC
99
Larsen &
Toubro (East
Asia) Sdn.
Bhd.
100
Larsen &
Toubro Qatar
LLC
101
L&T Overseas
Projects
Nigeria
Limited
102
L&T
Electricals &
Automation
Saudi Arabia
Company LLC
31-Dec-15
OMR
171.83
5.15
31-Dec-15
OMR
171.83
49.57
31-Mar-15
MYR
16.88
1.27
31-Dec-15
QAR
18.17
0.36
31-Dec-15
NGN
0.34
0.34
31-Mar-16
SAR
17.66
31.78
(95.93)
366.63
275.85
275.85
–
479.05
(16.31)
0.16
(16.47)
–
–
–
–
65.00
(155.68)
361.55
255.44
255.44
–
342.24
(36.97)
–
(36.97)
–
–
–
–
65.00
(0.64)
4.91
5.54
5.54
–
2.31
(0.39)
–
(0.39)
–
–
–
–
30.00
0.32
0.78
1.46
1.46
–
0.65
0.02
–
0.02
–
–
–
–
49.00
(0.29)
0.03
0.08
0.08
–
–
–
–
–
–
–
–
–
100.00
(25.95)
126.61
132.44
132.44
–
72.23
(21.23)
–
(21.23)
–
–
–
–
100.00
103
Larsen &
Toubro Kuwait
Construction
General
Contracting
Company,
WLL
31-Dec-15
KWD
217.54
43.51
(43.77)
33.91
33.65
33.65
–
–
(6.66)
–
(6.66)
–
–
–
–
49.00
105
Larsen
& Toubro
Saudi
Arabia LLC
106
Larsen
Toubro
Arabia LLC
107
Larsen
& Toubro
ATCO
Saudia LLC
108
Tamco
Switchgear
(Malaysia)
Sdn. Bhd.
109
Henikwon
Corporation
Sdn. Bhd.
110
Tamco
Electrical
Industries
Australia
Pty Ltd.
111
PT Tamco
Indonesia
112
Larsen
& Toubro
Heavy
Engineering
LLC
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
396
31-Mar-16 31-Dec-15 31-Dec-15 31-Dec-15 31-Mar-16 31-Mar-16 31-Mar-16 31-Dec-15 31-Dec-15
OMR
171.83
AUD
50.95
MYR
16.99
SAR
17.64
MYR
16.99
SAR
17.64
SAR
17.64
AED
18.03
IDR
0.01
1.80
25.36
17.64
1.76
169.87
10.96
83.92
0.25
97.34
(17.66)
106.73
90.87
90.87
–
115.85
0.85
–
0.85
–
–
–
–
49.00
(162.78)
969.47
832.05
832.05
–
1621.27
11.79
2.77
9.02
–
–
–
–
100.00
(71.11)
493.89
440.42
440.42
–
775.61
(45.82)
–
(45.82)
–
–
–
–
75.00
(437.33)
723.77
288.20
288.20
–
312.89
217.96
–
217.96
–
–
–
–
75.00
404.53
323.89
898.29
898.29
–
787.50
76.62
9.44
67.18
–
–
–
–
100.00
(20.84)
29.16
19.28
19.28
–
55.49
2.96
0.02
2.94
–
–
–
–
100.00
(70.43)
4.40
17.89
17.89
–
10.89
(11.25)
–
(11.25)
–
–
–
–
100.00
(43.58)
102.68
59.35
59.35
–
52.56
4.95
0.12
4.83
–
–
–
–
100.00
(117.32)
464.63
444.65
444.65
–
266.72
(13.72)
1.49
(15.21)
–
–
–
–
70.00
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” (contd.)
crore
Sr. no.
Particulars
Sr.
no.
113
L&T Electrical
& Automation
FZE
115
Larsen &
Toubro
T&D SA
(Proprietary)
Limited
114
Kana
Controls
General
Trading &
Contracting
Company
W.L.L.
116
L&T
Technology
Services LLC
117
L&T Infotech
Austria
GMBH LLC
118
Marine
Infrastructure
Developer
Private
Limited
119
L&T Global
Holdings
Limited
120
LTH Milcom
Private
Limited
121
L&T
Information
Technology
Spain SL
1
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Share capital (including share application
money pending allotment)
Reserves
Liabilities
Total liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - Preference
Proposed dividend - equity
Proposed dividend - preference
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
31-Mar-16 31-Mar-16 31-Mar-16 31-Mar-16 31-Mar-16 31-Mar-16 31-Mar-16 31-Mar-16 31-Mar-16
EURO
75.37
KWD
219.31
USD
66.25
EURO
75.37
USD
66.25
AED
18.03
ZAR
4.49
–
–
1.80
2.19
3.37
0.07
0.26
0.01
0.66
0.20
0.37
136.24
240.08
378.12
378.12
–
275.43
(50.84)
–
(50.84)
–
–
–
–
100.00
(3.47)
21.36
20.08
20.08
–
20.62
(2.14)
–
(2.14)
–
–
–
–
49.00
(1.08)
0.40
2.69
2.69
–
–
(0.03)
–
(0.03)
–
–
–
–
72.50
(22.13)
124.06
102.00
102.00
–
184.86
(15.93)
0.81
(16.74)
–
–
–
–
100.00
(0.05)
0.04
0.25
0.25
–
–
(0.04)
0.01
(0.05)
–
–
–
–
94.96
–
–
0.01
0.01
–
–
–
–
–
–
–
–
–
100.00
(0.51)
1159.59
1159.74
1159.74
1136.29
–
(0.51)
–
(0.51)
–
–
–
–
100.00
(0.09)
0.09
0.20
0.20
–
–
(0.09)
–
(0.09)
–
–
–
–
56.67
(0.06)
0.11
0.42
0.42
–
–
(0.08)
(0.02)
(0.06)
–
–
–
–
94.96
397
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part B: ”Associates/Joint ventures”
Sr. no.
1
2
3
4
5
6
7
Name of Associates/Joint ventures
Sr.
no.
Feedback
Infra Private
Limited
L&T-Chiyoda
Limited
L&T Camp
Facilities LLC
International
Seaports
(Haldia)
Private
Limited
Rishi
Consfab
Private
Limited
Vizag IT Park
Limited
JSK Electicals
Private
Limited
Latest audited Balance Sheet date
31-Mar-16
31-Mar-16
31-Mar-15
31-Dec-15
31-Mar-15
31-Mar-16
31-Mar-15
Shares of Associate/Joint Ventures held by the
company at the year end
Number
37,90,000
45,00,000
98,30,000
Amount of Investment in Associates/Joint
Venture (
Crore)
37.90
4.50
9.83
2,450
4.42
–
–
–
–
–
–
Total No of shares
Extent of Holding %
Description of how there is significant
influence
Reason why the Associate/Joint Venture is not
consolidated
Networth attributable to Shareholding as per
latest audited Balance Sheet (
Crore)
Profit/Loss for the year (
Crore)
1,63,61,704
90,00,000
4,40,58,020
5,000
1,04,00,000
90,00,000
81,54,000
15.74%
50.00%
21.74%
49.00%
–
–
–
Refer Note 1
Refer Note 5
Refer Note 5
Refer Note 5
11.88
41.63
15.32
1.70
–
–
–
Considered in Consolidation
12.60
(20.33)
Not Considered in Consolidation
–
–
3.26
–
5.85
(0.92)
–
–
3.75
–
0.94
–
1
2
3
4
5
6
398
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part B: ”Associates/Joint ventures” (contd.)
Sr. no.
8
9
10
11
12
13
Name of Associates/Joint ventures
Sr.
no.
Larsen & Toubro
Qatar & HBK
Contracting LLC
Salzer
Electronics
Limited
Magtorq
Private Limited
Gujarat Leather
Industries
Limited
Grameen
Capital India
Limited
Indiran
Engineering
Projects and
Systems Kish
PJSC
1
2
3
4
5
6
Latest audited Balance Sheet date
31-Dec-15
31-Mar-15
31-Mar-16
31-Mar-15
31-Mar-16
Shares of Associate/Joint Ventures held by the
company at the year end
Number
Amount of Investment in Associates/Joint
Venture (
Crore)
100
0.18
–
–
9,000
4.42
7,35,000
21,26,000
0.56
2.13
Total No of shares
Extent of Holding %
200
1,02,83,737
21,003
Refer Note 4
81,77,887
50.00%
–
42.85%
50.00%
23.87%
875
0.39
1,750
50.00%
Description of how there is significant
influence
Reason why the Associate/Joint Venture is not
consolidated
Networth attributable to Shareholding as per
latest audited Balance Sheet (
Crore)
Profit/Loss for the year (
Crore)
Considered in Consolidation
Not Considered in Consolidation
Refer Note 1
Refer Note 5
Refer Note 4
Refer Note 3
Refer Note 2
(3.59)
–
4.58
0.30
–
5.66
–
0.21
–
–
–
–
–
–
(0.26)
(0.30)
(0.54)
–
Notes:
1. Significant influence is demonstrated by holding 20% or more of the voting power of the investee (Para 4 of AS 23 - Accounting for Investments in Associates)
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
2.
consolidation.
The associate company operates under severe long term restrictions that significantly impair its ability to transfer funds to the company and hence the same has not
been considered for consolidation.
3.
4. The associate company is under liquidation process and investment is fully provided in the accounts.
5. The Group has sold its stake in the associate companies during FY 2015-16.
A. M. NAIK
Group Executive Chairman (DIN 00001514)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
M.M.CHITALE
(DIN 00101004)
VIKRAM SINGH MEHTA
(DIN 00041197)
SUSHOBHAN SARKER
(DIN 00088276)
SUNITA SHARMA
(DIN 02949529)
Directors
399
Mumbai, May 25, 2016
N.HARIHARAN
Company Secretary
M. No. A3471
NOTES
400
PROXY FORM
[Pursuant to Section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules 2014]
LARSEN & TOUBRO LIMITED
CIN : L99999MH1946PLC004768
Regd. Office : L&T House, Ballard Estate, Mumbai 400 001.
Tel. No.: (022) 6752 5656, Fax No.: (022) 6752 5893
Email: Igrc@larsentoubro.com, Website: www.larsentoubro.com
Name of the member(s)
Registered Address
Email ID
Folio No./Client ID
DP ID
I/We, being the member(s) of ___________ shares of LARSEN & TOUBRO LIMITED, hereby appoint:
1)
2)
3)
of
of
of
having e-mail id
having e-mail id
having e-mail id
or failing him
or failing him
and whose signature(s) are appended below as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Seventy First
Annual General Meeting of the Company, to be held at Birla Matushri Sabhagar, 19, Marine Lines, Mumbai - 400 020 on Friday, August 26,
2016 at 3.00 p.m. and at any adjournment thereof in respect of such resolutions as are indicated below:
** I wish my above Proxy to vote in the manner as indicated in the box below:
Item No.
Resolutions
For
Against
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Adoption of audited financial statements for the year ended March 31, 2016 and the Reports of the Board
of Directors and Auditors thereon and the audited consolidated financial statements of the Company and the
reports of the auditors thereon for the year ended March 31, 2016.
Dividend on equity shares for the financial year 2015-16.
Appoint Ms. Sunita Sharma (DIN: 02949529) as a Director liable to retire by rotation.
Appoint Mr. S. N. Subrahmanyan (DIN: 02255382) as a Director liable to retire by rotation.
Appoint Mr. A. M. Naik (DIN: 00001514) as a Director liable to retire by rotation.
Appoint Mr. D. K. Sen (DIN: 03554707) as a Director liable to retire by rotation.
Appoint Mr. M. V. Satish (DIN: 06393156) as a Director liable to retire by rotation.
Appoint Ms. Naina Lal Kidwai (DIN: 00017806) as an Independent Director.
Appoint Mr. S. N. Subrahmanyan (DIN: 02255382) as the Deputy Managing Director & President of the Company.
Appoint Mr. D. K. Sen (DIN: 03554707) as a Whole-time Director of the Company.
Appoint Mr. M. V. Satish (DIN: 06393156) as a Whole-time Director of the Company.
Payment of commission to the Executive Chairman, Chief Executive Officer and Managing Director, if any, Deputy
Managing Director and Whole-time Directors.
Appoint Mr. R. Shankar Raman (DIN: 00019798) as a Whole-time Director of the Company.
Appoint Mr. Shailendra N. Roy (DIN: 02144836) as a Whole-time Director of the Company.
Appoint Mr. Sanjeev Aga (DIN: 00022065) as an Independent Director.
Item No.
Resolutions
For
Against
16
17
18
19
20
21
Appoint Mr. Narayanan Kumar (DIN: 00007848) as an Independent Director.
Raise funds through issue of convertible bonds and/or equity shares through depository receipts and including
by way of Qualified Institution Placement (‘QIP’), to Qualified Institutional Buyers (‘QIB’) for an amount not
exceeding 3600 crore or US $ 600 million, whichever is higher.
Issue listed/unlisted secured/unsecured redeemable non-convertible debentures, in one or more series/tranches/
currencies, aggregating up to 6000 crore.
Ratification of appointment of M/s. Sharp & Tannan as Joint Statutory Auditors of the Company.
Ratification of appointment of M/s. Deloitte Haskins & Sells LLP as Joint Statutory Auditors of the Company.
Ratification of remuneration payable to M/s R. Nanabhoy & Co. Cost Accountants (Regn. No. 00010) for the
financial year 2016-17.
Signed this ........................ day of ............... 2016
Signature of shareholder : ..........................................
Revenue
Stamp
Affix a
1 Rupee
Signature of proxy holder(s)
Note:
(1)
(2)
(3)
This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company
not less than 48 hours before the commencement of the meeting.
A Proxy need not be a member of the Company.
A person can act as a proxy on behalf of members not exceeding fifty and holding in the aggregate not more than 10% of the total share
capital of the Company carrying voting rights. A member holding more than 10% of the total share capital of the Company carrying
voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other person or shareholder.
**(4)
This is only optional. Please put a ‘X’ in the appropriate column against the resolutions indicated in the Box. If you leave the ‘For’ or
‘Against’ column blank against any or all the resolutions, your Proxy will be entitled to vote in the manner as he/she thinks appropriate.
(5)
(6)
Appointing a proxy does not prevent a member from attending the meeting in person if he/she so wishes.
In the case of jointholders, the signature of any one holder will be sufficient, but names of all the jointholders should be stated.
LARSEN & TOUBRO LIMITED
Regd. Office : L&T House, Ballard Estate, Mumbai 400 001.
CIN: L99999MH1946PLC004768
Shareholder’s Satisfaction Survey Form – 2016
Dear Shareholders,
It has been our constant endeavor to provide best of the services to our valuable shareholders and maintain
highest level of Corporate Governance in this Company. In order to further improve shareholder service
standards, we seek your inputs through this survey.
We would be grateful, if you could spare your valuable time to fill the questionnaire given below and send it
back to us at the Registered Office address mentioned above. Alternatively, a softcopy of the questionnaire
can be downloaded from the Investors section on our website www.Larsentoubro.com. The duly filled in
questionnaire can be sent by e-mail to IGRC@Larsentoubro.com.
Thank You,
N. Hariharan
Company Secretary
M. No. A3471
Name & Address of the
Shareholder
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Folio No. / DP ID / Client ID ________________________________________________________________________
Kindly put a tick in relevant columns below.
ATTRIBUTES
Please indicate your satisfaction level
Delighted
Satisfi ed
Dissatisfi ed
Transfer/Transmission/Demat/Remat of Shares
Issue of Duplicate Share Certifi cates
Issue of shares – on demerger/bonus – 2004,
2006, 2008 & 2013
403
ATTRIBUTES
Please indicate your satisfaction level
Delighted
Satisfi ed
Dissatisfi ed
Issue of duplicate dividend warrants
Dividend through ECS/ Warrants/
Demand Drafts
Responses to queries/complaints
Interaction with Company/
R&T Agent personnel
Presentation of information on
Company’s website
Quality and Contents of Annual Report
2015-16
Please give your overall rating of our investor
service (1 to 5 where 1 = highly dissatisfi ed and
5 = highly statisfi ed)
Did you fi nd the e-mail id IGRC@Larsentoubro.
com for redressal of Investors’ Grievances
useful?
Give details of outstanding
grievances, if any
Any suggestions ?
Date :
YES / NO
Disclaimer: L&T will keep the information provided by you as confi dential and it will not be used in any way that
is detrimental to you.
____________________
Signature
404
NOTES
405
www.Larsentoubro.com
Pursuing Dreams
Partnering Growth
L&T partners the nation, industry and people to build a newer, brighter future. We offer talented young people the
opportunity to grow professionally and augment our engineering and construction offerings to critical sectors,
transforming glorious vision into glittering reality.
Technology I Engineering I Projects
Construction I Manufacturing
Regd. Offi ce: Larsen & Toubro Limited, L&T House, N. M. Marg, Ballard Estate, Mumbai - 400 001, INDIA CIN: L99999MH1946PLC004768
www.Larsentoubro.com
Developing Smarter Technology
Partnering Growth
L&T partners the nation, industry and people to build a newer, brighter future. As India’s largest producer of
low-tension switchgear, we develop smarter solutions to meet emerging needs. And transform glorious vision into
glittering reality.
Technology I Engineering I Projects
Construction I Manufacturing
Regd. Offi ce: Larsen & Toubro Limited, L&T House, N. M. Marg, Ballard Estate, Mumbai - 400 001, INDIA CIN: L99999MH1946PLC004768
NOTES
408
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, fi nancial performance, growth and environmental protection.
For details of recent awards, please visit www.Larsentoubro.com
L&T Annual Report 2015-16 Covers.indd 4-6
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L&T Annual Report 2015-16 Covers.indd 1-3
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