Against this backdrop, the projected
GDP growth of India at around
7% is encouraging, despite
being temporarily impacted by
demonetisation. I believe that the
medium term prospects in India are
favourable and that the structural
reform process will continue over
the next few years, culminating
in an uptick in the investment
momentum.
The Government’s increased
emphasis on infrastructure
development through a number
of flagship programmes has been
widely welcomed. Infrastructure
spends have a multiplier effect,
enabling pan-industry growth, while
contributing to an enhanced quality
of life. Your Company is uniquely
positioned to respond to these
initiatives of the Government. Our
capabilities in turnkey execution
of large scale infrastructure are
virtually unmatched, and we look
forward to the speedy transition of
these publicly-announced proposals
into implementation mode.
We also await progress in
the Government’s Smart City
programme. Our integrated
capabilities, covering all aspects
of security, mobility, intelligent
infrastructure, etc., will help in
maximizing the benefits of this
initiative and ensure accelerated
execution. Another significant
area of interest for your Company
is ‘Make-in-India’. We aim to
leverage our proven manufacturing
capabilities at the upper end of
the technological spectrum, to
manufacture complex equipment
and systems in sectors such as
defence, aerospace and thermal
and nuclear power.
Performance Overview
The Company has performed well
in all key performance parameters
during 2016-17. Despite facing
delays in bidding and award
processes, the Company bagged
fresh orders of ` 142,995 crore
recording a growth of 5%. Group
Revenues at ` 110,011 crore
grew by 8% during 2016-17
despite impediments due to
demonetisation, tardy realisations
from customers in some projects
and delays in obtaining clearances
and work-front availability. The
Order Book of the Company stands
at a robust level of ` 261,241 crore,
providing good revenue visibility for
2017-18. The Company recorded
an impressive growth of 43% in the
Group Profit After Tax for the year
at ` 6,041 crore.
The Company successfully listed
two of its subsidiaries, L&T Infotech
Limited (LTI) and L&T Technology
Services Limited (LTTS) during
2016-17 in its pursuit of creation
and unlocking of value for the
shareholders of the Company. It
gives me immense pleasure to share
with you that the Board of Directors
of your Company has recommended
a bonus issue in the ratio of 1:2
and a pre-bonus dividend of ` 21
per share. The corresponding
dividend in the previous year was
` 18.25 per share.
Internationalisation
The Company continues to pursue
international business opportunities
in select geographies with a
view to diversify geographical
concentration risks. The Company
has an established presence in
GCC countries, predominantly in
the Infrastructure and Hydrocarbon
sectors. While capex spends in
1
A. M. Naik
Group Executive Chairman
Dear Shareholders,
The Indian economy across the last
year, has demonstrated a high order
of resilience and remains an island
of stability amidst global volatility.
Meanwhile, setting its sights on the
future, the Government has initiated
a number of structural reforms
whose positive outcomes should be
tangible in long term growth.
The global scenario is being
coloured by protectionist policies
in various hues adopted by a few
developed countries. While such
populist measures tend to impede
trade and discourage revival of
the investment cycle, it is up to
international industry to address
these challenges by reconfiguring
its offerings and recasting its
operations. In the Middle East,
relatively low oil prices and
consequent fiscal pressure has led
to contraction of developmental
spends.
the Middle East have generally
contracted, some areas in
hydrocarbon and core infrastructure
are still witnessing investments
and these provide a favourable
opportunity basket for your
Company’s growth in the region.
Apart from the GCC region, we
are looking at selective prospects
in North Africa, East Africa and
some countries to the east like
Myanmar, Malaysia and Vietnam.
The unexecuted Order Book from
international markets stood at
` 69,757 crore, which translates
to 27% of the total Order Book.
Digital Trends
Digital technologies are
fundamentally changing the way
the world lives and works. While
these trends may be less visible
in the engineering, construction
and manufacturing sectors, the
Company has decided to move
forward in this space. Digitalization
has been identified as a core
theme in our Strategic Plan, and
a major program to digitize
processes is already underway in our
Construction business. These will be
progressively extended across the
Company, with the aim of achieving
higher efficiencies with the resultant
favourable impacts on revenues and
profitability.
Our Technology companies, LTI and
LTTS are significant partners in this
Digitalization journey for the Group
and are participating in developing
solutions and implementing them.
Talent Management and
Succession Planning
Your Company views its people as
central to the success of its journey
of value creation. Accordingly, our
Human Resources policy focuses on
2
creating a vibrant work environment
to attract and retain talent across
the organisation. The Company has
a 7-step Leadership Development
Program which aims to build a
leadership pipeline at various levels
of management. Senior executives
at different levels nurture second
lines of leadership.
As a firm believer in leading through
example, I have put in place a
succession plan at the apex level
of your Company. I have actively
mentored the Chief Executive
Officer & Managing Director (CEO
& MD) designate of L&T, which has
resulted in seamless transition.
Sustainable Development
Sustainability and Social
Responsibility are an integral
part of the Company’s business
strategy. Your Company believes
in sustainable utilisation of
natural resources and enhancing
social equity to realise its growth
objectives, while creating value
for stakeholders. Significant
initiatives have been undertaken in
reducing carbon emissions, water
management and waste water
discharge. Your Company’s CSR
programmes also focus on health,
education and skill-building to
contribute to a better quality of life
for the needy sections of society.
Total spends on CSR initiatives
in 2016-17 by your Company
amounted to ` 101 crore under
eligible items as defined in the
Companies Act which translate
to 2% of the average annual net
profits of the Company over the last
3 years.
Outlook
The Government is committed
to introducing structural
reforms to revive the investment
cycle, boosting tax revenues
through widening of the tax
base, strengthening indigenous
manufacturing and bringing about
infrastructure development in rural
and urban areas. Implementation
of GST is expected to have far
reaching effects by inducting large
parts of the informal economy
into the formal system, ultimately
leading to increased tax revenues.
Introduction of GST is considered as
progressive and a step in the right
direction. Your Company does not
see any adverse impact due to GST
implementation.
The domestic economy is
expected to steadily improve in
the current year on the back of
structural reforms and supportive
monetary policy. The Government
has reiterated its emphasis on
infrastructure build-out in the areas
of transportation, augmentation of
water resources, power, affordable
housing and smart cities. Increased
private sector participation in the
Defence business affords strong
business opportunities for your
Company. Various upcoming
projects provide the Company
with a broad perspective of the
opportunity basket opening up
in 2017-18. Segments within the
group that hold promise in the
current year include –
1) Infrastructure
a) Roads – The Government has
kick-started major road projects
and has committed significant
budgetary allocations for roads and
highways development in 2017-18.
The Company expects this impetus
to gain strength, aided by increased
investments in specialised bridges
and tunnels.
b) Railways – Your Company
has been a major partner in the
Dedicated Freight Corridor program
currently being piloted by the
Indian Railways. The Indian Railways
has planned high levels of outlay
over the next few years on track
modernisation, new railway lines
and supporting infrastructure.
Your Company will participate in
those programs as and when the
opportunities arise.
c) Metro Rail – Your Company has
been successfully executing Metro
Rail projects in multiple cities in
India over the last few years and is
also executing two such projects in
the Middle East. The Government
looks at Metro Rail networks as the
ideal solution to decongest urban
traffic. Metro Rail projects have
been planned in a number of metro
and non-metro cities in India as part
of the urban development program
and should provide a steady stream
of growth opportunities for your
Company.
d) Urban Infrastructure – Building
robust urban infrastructure and
providing affordable housing are
major thrust areas identified by
the Government. Your Company
is well placed to capitalise on
major opportunities in the areas of
affordable housing, hospitals, office
space and facilities for educational
institutions. Building Smart Cities
and Digital India is a major theme
pursued by the Government and
your Company has been at the
forefront of nation building by
aligning its capabilities to meet
changing needs. Your Company sees
emerging business opportunities
in the areas of city surveillance,
intelligent traffic management
systems, smart governance
systems, transport & logistics and
optical fibre cabling – all of which
constitute different components
of smart city infrastructure. Your
Company has the unique advantage
of in-house domain expertise across
business verticals to provide end-to-
end offerings to customers and can
assume the role of a Master System
Integrator for the customer.
e) Water Infrastructure –
The Government is actively
pursuing plans to improve water
management systems across the
country in view of falling water
tables and widespread water
shortages. This is giving rise to
large business opportunities which
your Company is well positioned
to exploit. Areas of focus
include water storage and supply
management, effluent treatment,
sewage treatment, lift irrigation and
emerging opportunities in inland
waterways infrastructure.
2) Thermal Power Generation
The thermal power sector has been
facing multiple challenges in the
last few years, which is aggravated
by under-utilisation of capacity,
particularly in manufacturing of
turbines. Strong focus on power
from renewables has also led to
muted awards in the thermal
power space. While the Company
has state-of-the-art facilities for
equipment manufacturing and
excellent project management
capabilities, it continues to face
competition for projects bid out by
central and state utilities. Though
some of the Company’s market
share has been lost to competition
on aggressive pricing, the Company
continues to sight reasonably large
business opportunities from state
and central utilities in 2017-18.
The Company is also attempting
to increase manufacturing capacity
utilisation by engaging with our
joint venture partners for increased
international business.
3) Power Transmission
& Distribution
Domestic power distribution
sector holds significant business
opportunities with the thrust of the
Government on augmenting and
strengthening grid infrastructure
at both centre and state levels. The
Company is also well established
in transmission & distribution
projects in Middle East countries
and continues to see traction in
that region. The year 2017-18 holds
good prospects in the area of power
transmission & distribution.
4) Hydrocarbon
Despite contraction of spends
in the Middle East due to lower
oil prices, your Company is still
seeing opportunities in the areas
of gas production and downstream
petrochemical projects. Strong
customer connect with a few
selected clients in the region has
yielded some significant order wins
and the outlook for the business in
the region is positive. The domestic
market is also seeing business
potential in the areas of offshore
capex, refinery upgradation and
expansion, new fertilizer plants,
LNG re-gasification terminals and
cross country pipeline jobs. The
Hydrocarbon business has turned
around in the year 2016-17 on the
back of close-out of challenging
international legacy projects,
profitable execution of on-going
3
orders on hand and increased
operational excellence measures
undertaken by the business.
The Company has built up a good
Order Book and has capabilities in
harnessing upcoming prospects.
5) Defence Sector
Thrust on import substitution
through indigenisation of defence
equipment manufacture and
the Make-in-India initiative is
opening up the Defence sector
to significantly enhanced private
sector participation, facilitated by
conducive policy measures. Multiple
programs earmarked for domestic
private sector players are being
kick-started in all branches of the
armed forces. Your Company is
a leading player in collaborating
with the Ministry of Defence in
building up indigenous expertise
on various defence platforms for
the past many years. The Company
collaborates with technology
partners wherever required and is
currently well poised to participate
in some large programs being
launched for augmentation of
defence equipment for the Army
and the Navy. In 2016-17, the
Company also received a large order
for manufacture of tracked artillery
guns, the largest such order given
to the private sector till date. The
Company’s shipyard at Kattupalli
augments the ability of the Group
to bid for large naval orders.
Defence is a major focus area for
the Company and the business
expects large prospects in the
coming years.
6) Heavy Engineering
The Heavy Engineering business has
been facing shrinking prospects due
to muted oil prices, coupled with
4
global over-capacity in the process
plant equipment segment. Nuclear
power sector is still grappling with
the aftermath of the Fukushima
accident, though India remains
committed to the expansion of
nuclear power installed capacity
for developing a clean source of
energy. The issues of Civil Liability
for Nuclear Damages are now being
resolved and would pave the way
for establishing new nuclear power
plants in the near future.
The Company is well placed to
harness the opportunities when
they come up.
7) Electrical & Automation (E&A)
The Electrical & Automation
business recorded stable
performance in 2016-17 despite
sluggish industrial demand,
challenges posed by liquidity crunch
and aggressive competition. The
Company presents an array of best-
in-class low-voltage and medium-
voltage products which provide a
competitive edge in the domestic
market. The Electrical business has
launched new products to cater to
the theme of Smart Cities. It focuses
on renewable and alternative energy
generation by introduction of smart/
premium meters, solar solutions, a
new range of Moulded Case and
Modular Circuit Breakers, and a
contemporary range of Bus Bar
trunking solutions. With investment
in R&D efforts, a number of
patents to its name, a country-wide
network of distributors, presence
in the Middle East region through
subsidiary companies and focus on
operational excellence, the business
expects to continue delivering
profitable growth.
8) Realty
This business, launched by your
Company a few years ago,
continues to deliver steady revenues
and profits despite the sector being
impacted by excess inventory, flat
realisations and lower absorption
rates. The Company’s Realty
portfolio comprises residential and
commercial real estate development
activity, mainly centred in Mumbai
and development of own land
parcels in Powai, Bangalore and
Chennai. Demonetisation led to
a major slowdown in retail real
estate sales during 2016-17. The
real estate segment is gradually
recovering from this downturn and
sale of apartments is nearly back
to pre-demonetisation levels. The
Company managed to close two
major transactions of divestment
from a residential project at Chennai
and a retail mall at the Company’s
Seawoods project in Navi Mumbai.
The Government has recently
introduced legislation aimed at
regulating the sector which augurs
well for the business.
9) Information Technology and
Technology Services (IT&TS)
As mentioned earlier, the Company
has successfully completed Initial
Public Offerings of Larsen & Toubro
Infotech Limited (LTI) and L&T
Technology Services Limited (LTTS)
during the year 2016-17. The
exceptional gains of ` 1,709 crore
from divestment of the Company’s
part stakes in these subsidiaries
have accrued to the shareholders’
funds. With the focus on client
mining, talent management,
enhanced utilisation of resources
and superior service offering, these
listed subsidiaries are geared to face
global headwinds and increasing
protectionist policies in developed
world markets while maintaining
healthy shareholder returns.
10) Financial Services
This business, which was listed in
2011, continues to grow and had
a loan book of ` 64,500 crore at
the end of FY17. The business
has adopted prudential norms for
provisioning of the non-performing
assets and is taking efforts to
reduce the cost-to-income ratio. It is
focusing on portfolio rationalisation,
right-sizing of manpower, and
improving the quality of assets in an
effort to enhance Return on Equity.
11) Development Projects
Your Company currently has a
portfolio of concession assets in the
areas of roads, power generation &
transmission, a container port and
a metro rail. While the container
port, a thermal power plant and
most of the road projects are
operational, the metro rail project
at Hyderabad is under construction.
This is the largest ‘transit-oriented-
development’ project in the country
and execution is progressing
satisfactorily. The project is likely
to be fully commissioned in FY19.
As a part of its Lakshya objectives,
the Company is evaluating
various options of divestment
and restructuring of the road
concessions business.
Strategic Plan
Your Company has embarked on
its five year strategic plan (Lakshya)
for achieving improvement in key
performance parameters leading
to enhanced Return on Equity over
the plan period. The strategic plan
lays emphasis on profitable growth,
harnessing emerging opportunities
in defence, nuclear power and smart
cities, productivity improvements
through digitalisation, reduction in
working capital levels and unlocking
of shareholder value through
divestments of non-core businesses.
The Company completed the first
year of its Lakshya Plan in 2016-17
and is on course to achieving
various objectives of the plan.
The Company divested its General
Insurance business during 2016-17
in line with its stated objective
of exiting non-core businesses.
Apart from recording improved
profitability, the Company has
achieved higher Return on Equity
also aided by reduction of net
working capital levels.
Over the next few months,
I will be handing over my executive
charge to the CEO & MD designate
Mr. S.N.Subrahmanyan and will
continue as Chairman of the Group.
Before I conclude, I would like to
acknowledge the contributions
made by team L&T and thank our
customers, vendors and other
stakeholders who made it possible
for the Company to maintain its
growth momentum and improve
financial performance. I also take
this opportunity to thank my fellow
Board Members for their steadfast
support and the confidence they
have reposed in our pursuit of
delivering high quality, sustainable
growth.
Thank You
A.M.Naik
Group Executive Chairman
5
Contents
Company Information
Organisation Structure
Leadership Team
L&T Nationwide Network & Global Presence
Corporate Social Responsibility
Annual Business Responsibility Report (ABRR) 2016-17
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
Statement of changes in Equity
Cash Flow Statement
Notes forming part of the Financial Statements
Auditors’ Report on Consolidated Financial Statements
Consolidated Balance Sheet
Consolidated Statement of Profit and Loss
Consolidated Statement of changes in Equity
Consolidated Cash Flow Statement
7
8 - 9
10
12 - 13
14 - 18
19 - 35
36
37
38 - 39
40
41 - 56
57 - 135
136 - 228
229 - 235
236 - 237
238 - 239
240
241 - 242
243 - 341
343 - 347
348 - 349
350 - 351
352 - 353
354 - 355
Notes forming part of the Consolidated Financial Statements
356 - 468
Information regarding Subsidiary Companies
Proxy Form
Shareholder’s Satisfaction Survey Form – 2017
471 - 480
481 - 482
483 - 484
6
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 NARAIN ROY
Whole-time Director & Senior Executive Vice President
(Power, Heavy Engg. & Defence)
MR. D.K. SEN
MR. M.V. SATISH
Whole-time Director & Sr. Executive Vice President
(Infrastructure)
Whole-Time Director & Sr. Executive Vice President
(Buildings, Minerals & Metals)
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 LIC
MR. ADIL SIRAJ ZAINULBHAI
Independent Director
MR. AKHILESH KRISHNA GUPTA
Independent Director
MRS. SUNITA SHARMA
Nominee of Life Insurance Corporation of India
MR. THOMAS MATHEW T.
Independent Director
MR. AJAY SHANKAR
Independent Director
MR. SUBRAMANIAN SARMA
Non-Executive Director
MRS. NAINA LAL KIDWAI
Independent Director
MR. SANJEEV AGA
Independent Director
MR. N. KUMAR
Independent Director
Company Secretary
Registered Office
Auditors
Mr. N. Hariharan
L&T House, Ballard Estate, Mumbai - 400 001
M/s. Sharp & Tannan and M/s.Deloitte Haskins & Sells LLP
Registrar & Share Transfer Agents
Karvy Computershare Private Limited
“72nd ANNUAL GENERAL MEETING AT ST. ANDREW’S AUDITORIUM, SAINT DOMNIC ROAD, BANDRA WEST, MUMBAI - 400 050 ON TUESDAY, AUGUST 22, 2017 AT 3.00 P.M.”
7
88
9
Leadership Team
A. M. Naik
Group Executive Chairman
S. N. Subrahmanyan
CEO & Managing Director
R. Shankar Raman
Chief Financial Offi cer
S. N. Roy
Sr. Executive Vice President
(Power, Heavy Engineering
& Nuclear)
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)
J. D. Patil
Sr. Executive Vice President
(Defence)
10
As on 1st July, 2017
S. C. Bhargava
Sr. Vice President
(Electrical & Automation)
Hasit Joshipura
Head - Corporate Centre
www.Larsentoubro.com
Technology Leadership
Smart Cities
L&T partners the nation, industry and people to build a newer, brighter future. In critical sectors, such as security and
surveillance, we provide the technology as well as the engineering and construction expertise to transform vision into 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
Nationwide Network
12
Global Presence
13
CORPORATE
SOCIAL
RESPONSIBILITY
Creating a Better
Tomorrow
L&T is an engineering and
construction conglomerate with a
heart. One that resonates with the
philosophy that growth is the means
to achieve the greater good of the
greatest number.
At L&T, the imperative of balancing
financial, environmental and social
interests predates industrywide
acceptance of concepts such
as ‘CSR’ and ‘Sustainability
Reporting’. Building on over seven
decades of social responsibility
activities, the Company
contributes to inclusive growth
by empowering communities
and accelerating development
through interventions in water &
sanitation, health, education and
skill development. L&T-eering, a
structured volunteering programme,
encourages and enables employee
volunteers or L&T-eers to contribute
their spare time to community
development programmes
supported by the Company, thereby
enhancing social impact even
further.
14
Enhancing impact
The Companies Act 2013 provided
a unique opportunity for L&T
to realign its CSR initiatives
with the nation’s developmental
requirements and create more
impactful community-development
programmes. Weaving together
the company’s business vision and
communities in a phased manner
for the next 5 years to improve
the overall quality of life. This is
closely linked with the UN’s Global
Sustainable Development Goals
(SDGs). These areas of activity yield
returns with cascading benefits that
have a ripple effect on dependents
and associates.
Water & Sanitation
- meeting the bare necessities
Launching its Integrated Community
Development Programme in FY
2014-15, L&T identified locations
as ‘water-stressed’ on the basis of
availability, quality and uncertainty
Water & Sanitation
1,07,253 Beneficiaries
Health
9,93,878 Beneficiaries
Education
3,32,013 Beneficiaries
Skill Development
34,696 Beneficiaries
its responsibility towards the social
sector, the CSR theme of ‘Building
India’s Social Infrastructure’ was
chosen.
Towards this end, L&T began
working for the development of
water-stressed rural communities.
It undertakes community-based
interventions to make water
available for drinking, sanitation
and agriculture. Using an integrated
approach, interventions in
education, health and skill building
have been planned in the same rural
At the grassroot level, L&T’s CSR
activities are aligned to specific
Governmental welfare programmes
and projects, strengthening the
execution of projects in progress
and avoiding needless duplication
of effort. This ensures the judicious
allocation and use of resources
such as money, time and talent.
L&T executes CSR projects directly
or partners with Non-Government
Organisations (NGOs).
of supply to enable these locations
to become water-sufficient for
drinking, sanitation and agriculture.
L&T envisages these communities
leading better quality lives through
an integrated and holistic approach
which will provide access to
improved healthcare, education
and higher income levels. To begin
with, L&T, in consultation with
external domain experts, identified
water-stressed village clusters
that were not beneficiaries of
any previous interventions in four
15
states – Rajasthan, Tamil Nadu,
Maharashtra and Gujarat. This
covers 11006 households across an
area of 9337 hectares.
Key deliverables
• Watershed interventions such
as construction of check dams,
anicuts, contour trenches, farm
bunds, farm ponds, and well
restoration to increase ground
water levels and soil moisture
content
• Drudgery-free access to clean
drinking water ensuring improved
health and sanitation
• Availability of fodder for livestock
• Empowerment of communities
and sustaining programme
benefits through self-help groups
with women’s participation
Key highlights so far:
• Project formulation through
extensive community participation
using Participatory Rural Appraisal
• A strong feeling of ownership
and involvement instilled within
community members
• Increase in ground water level,
conversion of land from fallow
to cultivable, and checking of soil
erosion through various
watershed interventions
• Creation of community-level
organisations like Village
Development Committee (VDC),
Self Help Groups (SHGs) and User
groups for project sustainability.
VDCs have been formed in all 30
villages under our coverage
16
• 30-50% of participants in all VDC
and watershed interventions are
women, ensuring their
participation in project planning
and execution.
• Sanitation awareness drives
among the community members
and community-based monitoring
committees will ensure that these
villages are well on their way to
becoming free of open defecation.
Health
– the wellspring of joy
Good health is the cornerstone of
social well-being. L&T is helping
create healthier communities by
providing the underprivileged with
affordable healthcare services in
various areas – with a focus on
mother-and-child care.
chest and TB) ophthalmology,
orthopaedics, nephrology,
psychiatry, ENT, dermatology and
dentistry. Immunisation and dialysis
services are also provided.
Emerging lifestyle diseases, such
as diabetes and cardiac problems
are also addressed at these centres.
The HIV/AIDS issue is addressed
through diagnostic and counselling
facilities, as well as distribution of
the Government’s free anti-retroviral
therapy at L&T’s Mumbai Health
Centre. Counselling services are
offered in the areas of mother-and-
child care, as well as problems faced
by teenagers.
Mobile Clinics: The mobile clinics
operated by L&T penetrate deep
into rural and tribal areas, bringing
the benefits of basic health facilities
and modern health technology to
these marginalised communities.
L&T’s healthcare initiatives focus on mother and child care among the disadvantaged sections
of society.
Health Centres: L&T has set up
multi-specialty health centres which
provide diagnostic, curative and
preventive services in the areas of
general medicine, gynaecology,
paediatrics, pulmonology (including
Health Camps: L&T organises
diagnostic, clinical and awareness
health camps. Diagnostic and
clinical camps are held pertaining
to general medicine as well as
specialties such as ophthalmology,
dentistry, gynaecology and TB
detection. Diagnostic camps are
also held for specific groups, such
as women and school children.
Awareness camps disseminate
information on critical issues such
as hygienic practices and HIV/
AIDS prevention. Blood donation
camps are held, usually at L&T’s
establishments, in partnership with
hospitals or blood banks.
Dialysis Centres: L&T has set up
Artificial Kidney Dialysis Centres at
its health centres for benefit of the
underprivileged.
Education
– the mainstay of progress
L&T’s social interventions covering
educational initiatives are focused
on providing primary education,
infrastructure development and
enhancing the learning experience
for children in several schools in the
vicinity of its facilities across India.
Education infrastructure: L&T
provides infrastructure support
to Government schools. It
provides furniture, sets up and
equips laboratories, libraries and
playgrounds, refurbishes and
digitises classrooms and builds
toilet blocks for rural schools. All
these lay the foundation for good
education.
Learning enrichment
Learning enrichment programmes
are conducted in schools through
NGO partners, with a focus on
science, language and maths.
‘Science on Wheels’ vans visit
schools to provide young,
enquiring minds with exciting
opportunities to perform hands-on
science experiments and fire their
imagination.
their academic performance as they
progress from one standard to the
next.
A toy van for children – ‘Nanha
Munna Express’ – makes learning
fun for children, and helps develop
motor, cognitive and social skills.
After-school support is provided
to children in community learning
centres by trained community
teachers. These centres help
children to cope with their school
curriculum, thereby reducing school
drop-out rates, and enhancing
Preschools or Balwadis are run
in low-income communities to
lay a strong foundation for many
vulnerable children and facilitate
enrolment in neighbourhood
schools.
Children from underprivileged
backgrounds are also provided
with basic computer education, to
prepare them for a digitalised world.
From community learning centres to computer labs, L&T helps spread education in rural areas
and around its facilities.
17
Skill-building
– creating a world of possibilities
skilled, self-reliant young men, ready
to join the workforce and support
themselves and their families.
Construction skills: India’s
infrastructural demands call
for quality workmanship and
deployment of the latest techniques
in construction methodology.
L&T has set up and runs eight
Construction Skills Training
Institutes (CSTIs) across the country.
These Institutes provide formal, free
vocational training in construction
skills for the largely unorganised
workforce in this sector. School
dropouts and illiterate village youth
are taught skills like bar-bending,
formwork carpentry, masonry,
scaffolding and welding. A stipend,
hostel facility and Certificate of
Proficiency on completion, give
participants an added incentive to
complete the course. These short
courses – ranging from three to six
months – transform these once-
unemployable youth into certified,
Industry-oriented training:
L&T has collaborated with 27
Industrial Training Institutes
(ITIs) across the country to impart
industry-oriented training.
Empowering the differently-
abled: L&T’s ‘Project Neev’ initiative
enriches the lives of the differently-
abled by offering specially-designed
training programmes that enable
them to obtain gainful employment
and enhance their sense of
self-worth.
Vocational training for women:
To make underprivileged women
self-reliant, L&T has introduced
vocational training programmes
in the areas of tailoring, beautician
skills, home-nursing and food
processing.
What it all adds up to in the
year gone by:
• Over 1 million beneficiaries
• 2.5 lakh students in 250 schools
– better infrastructure, fewer
dropouts, better grades
• 7000 youth from underprivileged
backgrounds made employable
through CSTIs
• 32 water-stressed villages in 4
states benefited from ‘Integrated
Community Development’ - water,
sanitation, health education and
improved standard of living
Over one million people benefitted from
L&T’s social interventions in 2016-17 alone.
Vocational training in skills like tailoring help boost both confidence and independence among women in rural areas.
18
ANNUAL BUSINESS RESPONSIBILITY REPORT 2016-17
At L&T we believe Sustainability is an important element of the way we work. We continue to be resource efficient
and put efforts towards better environment management. People are our assets and their safety and well-being is of
prime importance. Through our projects, products and services, we aim to build a better society, while maintaining that
delicate ecosystem balance and helping communities prosper.
This report conforms to Business Responsibility Reporting (BRR) requirement of Securities & Exchange Board of
India (SEBI) based on the National Voluntary Guidelines (NVG) released by the Ministry of Corporate Affairs, India.
Furthermore, L&T publishes comprehensive sustainability performance in it’s Sustainability Report, which is prepared in
accordance with Global Reporting Initiative (GRI) guidelines and is externally assured.
L&T’s Sustainability Reports 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 2016 - 31st March 2017
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.
465
681
711
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
19
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: ` 186.59 Crores
2. Total Turnover: ` 66301.35 Crores
3. Total Profit After Taxes: ` 5453.74 Crores
4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax: 1.85 %.
As per the Section 135 of The Companies Act 2013, the CSR spend is 2.04% of average Net Profit
of the previous three financial years
5. List of activities in which expenditure in 4 above has been incurred:
Our focus areas in Corporate Social Responsibility are as follows:
i. Water & Sanitation
ii. Health
iii. Education
iv. Skill Development
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 including major subsidiaries like L&T Hydrocarbon Engineering. In addition, these subsidiaries are
also encouraged to take various other initiatives. L&T Infotech made its stock market debut on July 21, 2016
at the National Stock Exchange in Mumbai and its shares have been listed on NSE and BSE. Since 2016-17 L&T
Infotech will have a separate Business Responsibility Report as part of its annual report.
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.
20
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: Not Applicable, being an EMC member
• 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
1
2
3
4
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
21
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 independent
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 Standard and 2016 report is ‘In Accordance – Comprehensive’ report. The reports can be accessed
at www.lntsustainability.com and sustainabilityreport.larsentoubro.com
22
SECTION E
PRINCIPLE 1: BUSINESSES SHOULD
CONDUCT AND GOVERN THEMSELVES
WITH ETHICS, TRANSPARENCY AND
ACCOUNTABILITY
Larsen and Toubro stands on a strong base built
by our founders and continues a rich legacy of
fair & transparent governance system, disclosure
practices and integrity. L&T is a professionally
managed Indian multinational, committed to total
customer satisfaction & enhancing stakeholders’
value. The Company’s Vision and Policies extend
to its commitment to fair practices. These are
applicable to all our operations, subsidiaries and
associate companies.
All our employees are guided by the L&T Code
of Conduct, including the Board Members
and Senior Management. The Group Executive
Chairman makes an Annual Declaration to the
shareholders on compliance with the Company’s
CoC by the senior management. L&T is committed
to the philosophy of conducting business in an
ethical manner with respect for human values,
individual dignity and professional conduct. The
Code of Conduct is featured on the Company’s
website – www.larsentoubro.com and Intranet.
New employees are introduced and trained on
the Code of Conduct through a detailed online
module of the Company’s Any Time Learning
(ATL) System. The critical areas of the Code of
Conduct are also included in the HR Orientation
Training – Swagat and Prayag for GET/PGET. In a
unique initiative, each employee of the Company is
required to confirm their acceptance of the ‘Code
of Conduct’ through a web-portal, this ‘once a
year’ mandatory requirement creates awareness on
the Code of Conduct, policies and guidelines and
imbibes a sense of responsibility in employees for
their actions.
The Code of Conduct (CoC) Apex Committee has
the responsibility to ensure implementation of the
Code of Conduct across the Company, deals with
the instances of non-compliance, and oversees the
functioning of the Unit Level CoC Committees.
This committee also functions as the Apex Body
to interact, inform, advice and coordinate with
the Executive Management Committee (EMC)
on all issues relating to the Code of Conduct.
The committee constitutes of a minimum of five
senior members and meets at least twice a year.
The Compliance officer acts as the Ex-Officio
Secretary of the Apex Committee. At the unit level
we have Unit Level CoC Committee consisting of
at least four members, headed by the Unit Head
with Head of Accounts, Head of HR and a senior
person from Operations. The Unit Level Committee
meets at least once in a quarter. The Role of the
Committee is creating awareness, motivating
employees to follow Code of Conduct, monitoring
compliance of Code of Conduct and investigating
instances of non-compliance.
Codified policies publicly affirm the organisation’s commitment,
govern actions and provide clarity of direction
23
suppliers are required to follow the same. Since
2016 the Company has initiated the environment
assessment of suppliers along with organizing
awareness sessions on sustainability for suppliers
and transporters. The Company conducts
capacity-building programmes for vendors and
sub-contractors and provides training on safety,
business efficiency and sustainability.
The brand L&T has been built by implementing
good Corporate Governance practices; which are
imbibed by our employees as a way of life and
create an elevated governance culture.
PRINCIPLE 2: BUSINESSES SHOULD
PROVIDE GOODS AND SERVICES
THAT ARE SAFE AND CONTRIBUTE TO
SUSTAINABILITY THROUGHOUT THEIR
LIFE CYCLE
At L&T, in all our businesses, it is our constant
endeavour to extend safe goods and services that
contribute to sustainability throughout their Life
cycle. Our portfolio includes projects, products and
services covering Infrastructure projects, Power
projects, Heavy Engineering products, Electrical
& Automation (E&A) products, Metallurgical &
Material Handling (MMH) products and services,
Hydrocarbon Projects, IT & Technological
Services, and Financial Services. We ensure that
sustainability aspects, risks and opportunities
are integrated into our engineering and design.
L&T also offers comprehensive training to our
customer’s personnel.
Our construction & infrastructure projects
along with our campuses ensure minimal
environmental footprint and safe operations
and enhance community value. At our campuses
we currently have 17 green buildings including
one Green Factory, all our 24 campuses are now
water positive and have achieved zero waste
water discharge status. Energy efficiency and
carbon footprint reduction are given substantial
importance during the course of production.
Artist’s impression of football stadium being built in Qatar, incorporating
design and processes to minimize environmental impact
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 code of
conduct or ethics policy. The Whistle Blower Policy
facilitates 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 to Whistle Blowing
Investigation Committee. The management assures
maintaining anonymity of the whistle-blower at
all times. During the year 2016-17 a total of 15
complaints were received, 100% of these were
investigated and dealt with in accordance with the
Company’s protocol and none are under review.
Details relating to stakeholder complaints are
included in the Director’s Report Section of this
Annual Report.
In line with the Company’s Green Supply Chain
Policy, we formulated an ‘Environmental &
Social Code of Conduct for Suppliers’ covering
specific clauses on environmental management
and compliance, human rights, labour practices,
prohibition of child labour, freedom of association
& collective bargaining, prohibition of forced &
compulsory labour, ethics and transparency, and
impact on society. This was applicable during the
period 2012-16, since 2016-17 the ‘Environmental
& Social Code of Conduct for Suppliers’ has been
integrated with the business code of conduct
for suppliers. All new and existing vendors/
24
Apart from these initiatives, the Company offers
products and services focused on sustainability
and infrastructure with low environmental impact.
These include technology solutions with lower
carbon emissions, less water consumption, lesser
air pollution, energy efficiency improvement,
clean energy and resource conservation. These
products help reduce the customers environmental
impact. The portfolio covers Green Buildings,
Mass Rapid Transit Systems like metro and mono
rails, Solar power plants built on EPC basis, fuel
switch projects, coal gasifiers, super critical thermal
power plant & equipment, power transmission
& distribution systems, energy saving electrical &
automation solutions etc. Energy efficient products
and systems from the Electrical & Automation
business cover Power Management Systems, AC
drives, smart metering systems etc.
The Company promotes recycling and use of
alternate materials. As a part of sustainability
roadmap of increasing recycling of products and
industrial waste are practiced at our campuses and
project sites. We utilize alternate materials such
as fly ash, crushed sand, blast furnace slag, steel
scrap, zinc waste etc. Our products are ‘engineered
to order’ based on specific customer requirements,
limiting the scope for material recycling.
Terminal 2 - Mumbai Airport built by L&T has won numerous awards for
user-friendliness, sustainability and innovative construction techniques.
PRINCIPLE 3: BUSINESS SHOULD
PROMOTE WELL-BEING OF
EMPLOYEES
Our people are the key to truly leveraging
the potential of the Company’s growth.
The continuous zeal and commitment of our
people powers L&T and we nurture this with
training, motivation, leadership development and
performance rewards. The Company’s Corporate
Human Resource Policy sets a robust framework
for people management. Apart from this, we
have the Corporate Environment, Health & Safety
(EHS) Policy, Whistle Blower Policy, Protection of
Women’s Rights at Workplace Policy, and code
of conduct for protection of human rights.
L&T is a merit-based organisation and
discrimination of any form based on caste,
religion, region, gender or physical disability is not
permitted. We remain committed to the United
Nations Global Compact principles and Human
Rights clauses are also included in the contracts
with vendors and partners, extending these to
our supply chain. L&T directly employs 85 persons
with disabilities. The value chain also employs 48
persons with disabilities. The Company recognizes
employee unions and associations affiliated with
different trade unions at its manufacturing facilities
and 7.82% of permanent employees are covered
under this category. No complaints were received
during the year, relating to child labour, forced
labour, involuntary labour or sexual harassment
at the workplace.
L&T
employees
Refer “Standalone fi nancials –
10-year Highlights” section of
Annual Report
Number of
permanent
women
employees
Contract
workmen
2,029
282,311
25
training before commencing work. More than 3.7
million man hours of safety training was provided
in FY 2016-17 to our workforce. The safety
performance of the Company is reviewed by the
L&T Board during the quarterly Board meetings.
Working on Wellness is our exclusive platform
through which we offer programs, counselling,
awareness sessions, diagnostic camps, workshops,
activities targeted at employee health and wellness
at office. The interventions are grouped in six
critical areas – cancer, diabetes, cardiac disease,
obesity, ergonomic issues and stress.
PRINCIPLE 4: BUSINESSES SHOULD
RESPECT THE INTERESTS OF, AND
BE RESPONSIVE TOWARDS ALL
STAKEHOLDERS, ESPECIALLY THOSE
WHO ARE DISADVANTAGED,
VULNERABLE AND MARGINALIZED
The Company has mapped its internal and external
stakeholders along with the disadvantaged,
vulnerable & marginalized stakeholders. This
mapping gives us an understanding that our
stakeholders form a vast and heterogeneous
community with wide-ranging expectations. It
is our constant endeavor to match these. Our
stakeholders are at the core of our decision-making
process and the Company engages with them
regularly through various engagement programs.
At L&T we conduct business professionally to
create value for all stakeholders ensuring that we
are a responsible partner that serves the wider
interests of society. The Company has a dedicated
Corporate Brand Management & Communications
department which facilitates an on-going dialogue
between the organization and its stakeholders.
We run specific programs under our “Corporate
Social Responsibility (CSR)” umbrella focused on
benefitting the disadvantaged, vulnerable and
marginalized communities. Our CSR projects not
only run around our operations, but are extended
much beyond that. One of our key focus areas
is the ‘Integrated Community Development’
L&T’s Learning & Development Academy is a one of its kind destination,
designed to power corporate training at various levels.
At L&T regular training and exposure to the
challenges of tomorrow are important elements
of an employee’s career graph. Employees are
provided with adequate continuous trainings
on functional and behavioural areas. L&T offers
its employees with opportunities to pursue
higher education through corporate tie-ups and
sponsorships with reputed colleges.
L&T’s Leadership Development Academy (LDA)
at Lonavala is recognised as a unique corporate
university in India, collaborating with the world’s
most reputed institutions to provide a global
exposure. Apart from this, a wide range of
technical, functional as well as managerial training
is imparted to the employees through Technical
training centres at Mumbai (Madh, Mahape)
& Project Management Institute (Vadodara &
Chennai).
Safety is another area of significance and we
work towards continuous improvement for
Zero Harm. With ‘Zero Harm’ we aim to build
a workplace environment which supports the
health and safety of our people and minimises
the impact our business has on the environment.
Zero harm means no harm to anyone, anytime,
anyone associated with us. Regular safety training,
tool box talks, mock drills and specific safety
interventions are undertaken to build a safe work
culture within the organization. New employees
are introduced on the aspects of safety and all
contract workmen receive mandatory safety
26
programme in which we are working to improve
the overall quality of life of the people living in
the most water stressed regions of India. We work
on providing clean drinking water, sanitation,
education, health and skill building. L&T is a
pioneer in launching an anti-depression help-line
for its employees in India, in collaboration with
TISS.
External Stakeholders
Stakeholders
Engagement Modes
Shareholders
and investors
Press Releases, Info desk - an
online service, dedicated Email
Id for investor grievances,
Quarterly Results, Annual
Reports, Sustainability Reports,
AGM (Shareholders interaction),
Investors meet and shareholder
visit to works, corporate website.
Suppliers/
Contractors
Regular supplier, dealer and
stockiest meets
Media
Press Releases, Quarterly Results,
Annual Reports, Sustainability
Reports, AGM (Shareholders
interaction), Access information
& respond to queries
Community
Periodic feedback mechanism
Customers
Government
Regular business interactions,
Client satisfaction surveys
Press Releases, Quarterly Results,
Annual Reports, Sustainability
Reports
Workforce taking the Safety Pledge at one of L&T’s campuses.
For Internal Stakeholders
Employees
Employee satisfaction surveys
Employee engagement surveys
for further improvement in
employees' engagement process
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 program
newsletter.
L&T Helpdesk, toll free number
PRINCIPLE 5: BUSINESSES SHOULD
RESPECT AND PROMOTE HUMAN
RIGHTS
With global activities and customers in over 30
countries around the world, L&T will inevitably
be confronted with human rights issues. The
Company is a member of the Global Compact
Network India and commits to honor human rights
within its operations. Further, the Human Rights
policies are extended and strictly adhered to within
our Subsidiary and Associate companies.
Human rights are an important part of the Code
of Conduct and Corporate Human Resource Policy
of the Company. Human Rights cover the issues
of prohibition of child labour, prohibition of forced
& compulsory labour, nondiscrimination, freedom
of association and collective bargaining. We also
have the Policy on Protection of Women’s Rights
at workplace for addressing sexual harassment at
workplace. We follow the Universal Declaration
of Human Rights, the ILO Core Conventions on
Labour Standards and the UN Global Compact.
27
We ensure that employees are sensitized to
human rights clauses through training programs,
interactive sessions, Intranet, policy manuals and
posters. Apart from this, the Company complies
with the applicable local laws and regulatory
requirements such as the Factories Act 1948,
Building & Other Construction Workers (Regulation
of Employment &Conditions of Service) Act 1996,
Central Rules 1998 and Industrial Disputes Act
1947. There were no reported complaints related
to human rights violations during the year.
We propagate our human rights values across the
supply chain through our ‘Environmental & Social
Code of Conduct’ for our suppliers and extend
the same to our sub-contractors as part of their
contract documents.
PRINCIPLE 6: BUSINESS SHOULD
RESPECT, PROTECT, AND MAKE
EFFORTS TO RESTORE THE
ENVIRONMENT
L&T recognizes the importance of environment
preservation. Our Corporate Environment, Health
and Safety (EHS) Policy plays a vital role in defining
the choices we make. Since 2009, we have been
setting measurable targets and developing action
plans for successive three-year Sustainability
Roadmaps covering efforts to mitigate our impact.
The Company identifies potential environmental
risks and opportunities in its operations and its
Subsidiary and Associate Companies and acts
towards these. Key suppliers are also encouraged
to follow our practices.
With all our efforts across the years, we are able
to achieve a ‘Water Positive’ Status for all 24
campuses of L&T in India. Water Assessment was
conducted for all campuses, rain water harvesting
structures, and community based water harvesting
structures covering check dams and other water
storage structures. We were able to demonstrate
significant water conservation efforts at campuses
along with well-planned and implemented
community water harvesting, benefitting society.
28
Also, all our campuses continue to be
zero wastewater discharge units since 2014.
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 green
cover. The Company annually reports its carbon
emissions to the Carbon Disclosure Project since
2009.
The Company works in compliance with
applicable laws. Regular checks are conducted by
independent auditors to ensure compliance with
environmental regulations and compliance reports
are submitted to Central Pollution Control Board
(CPCB) / State Pollution Control Boards (SPCB) as
applicable. During the financial year, there are no
pending or unresolved show cause/legal notices
from CPCB/SPCB.
We strive to increase the share of renewable
energy in our overall energy mix. Three campuses
are sourcing wind energy from external suppliers,
while 18 campuses are generating renewable
energy on-site.
At L&T, we understand the importance of
biodiversity. Every year we plant trees at our
L&T is leading the way in renewable energy as India’s largest
solar power systems integrator
campuses and engage with organisations to
conduct plantation at National Parks within the
Country. This year we have planted more than
1.85 lakh trees across L&T’s campuses and project
sites, taking the tally to 5 lakh trees in last five
years. Also, the Company has embarked on a
journey towards creating self-sustaining forests
through the Miyakwaki Technique and has planted
its first forest.
PRINCIPLE 7: RESPONSIBLE PUBLIC
ADVOCACY
L&T actively participates in industrial forums
and professional bodies to engage in proactive
dialogue and have an understanding of policies
and expectations of stakeholders. The senior
leadership team offers their expertise and insights
during public policy formulation. Following are
some of the Institutes and industrial forums where
L&T actively participates.
• Association of Business Communicators of India
• Associated Chambers of Commerce and
Industry of India (ASSOCHAM)
Tree-planting is an ongoing activity at L&T - from VIP visitors
to community and mass plantation initiatives.
The Company also interacts regularly with Indian
Institute of Corporate Affairs (IICA) for CSR related
aspects, Confederation of Indian Industry Centre of
Excellence for Sustainable Development (CII-CESD)
on Sustainability policies and regulations. We are
also part of the working teams on Environmental &
recycling council of CII, CII – Green Business Centre
(GBC), Environment, Health & Safety (EHS), energy
conservation and Corporate Social Responsibility
(CSR).
• Bombay Chamber of Commerce & Industry
(BCCI)
PRINCIPLE 8: SUPPORT INCLUSIVE
GROWTH
• Bureau of Indian Standards
• Construction Industry Development Council
(CIDC)
• Confederation of Indian Industry (CII), Centre of
Excellence for Sustainable Development (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
• National Fire Protection Institution
L&T has the following corporate policies
that support inclusive growth and equitable
development:
• Sustainability Policy
• Corporate Environment, Health & Safety (EHS)
Policy
• Corporate Social Responsibility (CSR) Policy
• Corporate Human Resource Policy
• Code of Conduct
It is an integral part of L&T’s business model to
plough back a portion of the wealth generated
into the society. The Company’s CSR Programs
are derived from the theme ‘Building India’s Social
Infrastructure’ with an objective to contribute to
society and make a meaningful, sustainable and
positive impact. We work in 4 thrust areas: water
& sanitation, education, health and skill-building.
29
Water & Sanitation
• Efforts to provide access to safe drinking water
• Working in water-stressed communities of Tamil
Nadu, Maharashtra and Rajasthan.
• Integrated Community Development
Programme
• Building check dams, field bunds, and soil and
water conservation structures.
• Enabling the community to build and utilize
sanitation facilities.
Education
• Providing primary education
• Developing infrastructure
• Enhancing learning experience & learning rates
• Innovative learning methodologies, computer
laboratories, teaching aids and build teacher
capacity.
• Science-on-Wheels van
• Summer camps, sports activities & Extra
Health
• Affordable community health centres
• Focus on reproductive health, diagnostic and
clinical camps, maternal and child health care,
immunization and health education, HIV/AIDS
management
• Artificial kidney dialysis centres
• Mobile health vans.
Skill Development
• Free training to rural and urban youth
• Construction Skills Training Institutes (CSTIs)
• Collaboration with ITIs.
• Vocational institutes programs for women:
Tailoring, beautician’s courses, home nursing
and food processing
Thrust area-wise CSR beneficiaries are
as follows,
curricular outings to widen children’s horizons.
Water & Sanitation: 1,07,253
• Employee volunteering
Health: 9,93,878
Education: 3,32,013
Skill Development (Including CSTI, vocational
training and Neev): 34,696
Total 14,67,840
The Company contributed ` 100.77 crores in
2016-17 towards social development as per
The Company’s Act 2013.
L&T helps build India’s Social Infrastructure through health,
education and skill-building initiatives.
30
PRINCIPLE 9: ENGAGE WITH AND
PROVIDE VALUE TO CUSTOMERS
At L&T, we constantly innovate to offer the latest
engineering, technological and service solutions,
to provide value to our customers. Our offerings
diversify with the changing market trends and we
keep abreast with the way world moves through
investment in R&D, training, design facilities,
superior manufacturing and testing processes.
Health & Safety concerns are integral throughout
product /services life cycle. Our products carry
suitable labeling and are accompanied by
operation and maintenance manuals in line with
relevant codes and specifications. Similar clarity is
maintained across all our projects through signage
systems. Products are tested and benchmarked
against stringent national and international
standards such as Bureau of Indian Standards,
International Organization for Standardization
and International Electro Technical Commission.
L&T’s green products and services portfolio helps
customer to reduce their energy and water
consumption and help then to follow low carbon
approach.
We engage with customers through regular
customer meets, customer satisfaction surveys,
training programs for customer representatives
and market based research. Customer complaints,
comments and suggestions are systematically
addressed. The high percentage of our 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 institutionalized by L&T’s Corporate
Brand Management & Communications (CBMC)
department authenticate communications and help
customers identify and distinguish the Company’s
products.
From engineering design to high-tech testing facilities, L&T offers
end-to-end solutions that create value for our customers.
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, 2017.
31
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
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
AR
21
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
22
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
22
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
23-24
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.
24-25
24-25
24-25
24-25
24-25
24-25
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?
Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e.
not resolved to satisfaction) as on end of Financial Year.
34
Reference
Section
Page Number
AR
25-26
AR
AR
AR
AR
AR
AR
AR
AR
AR
No
AR
AR
25-26
25-26
26-27
26-27
27-28
27-28
28-29
28-29
28-29
-
28-29
28-29
Reference
Section
Page Number
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.
Have you taken steps to ensure that this community development initiative is
successfully adopted by the community?
Principle 9: Customer Welfare
What percentage of customer complaints/consumer cases are pending as on the end of
fi nancial year.
AR
AR
AR
AR
AR
AR
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
29
29
30
30
30
30
31
31
35
STANDALONE FINANCIALS-10 YEAR HIGHLIGHTS
Description
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
Ind AS
IGAAP
` crore
2009-10
$$
2008-09
2007-08
Statement of Profit and Loss
Gross revenue from operations
66301
63813
57558
57164
52196
53738
44296
37356
34337
25342
PBDIT^^
6425
5829
6488
6667
5473
6283
5640
4816
3922
2969
Profit after tax (excluding
extraordinary/exceptional items)
4560
4454
4699
4905
4169
4413
3676
3185
2709
2099
Profit after tax (including
extraordinary/exceptional items)
5454
5000
5056
5493
4384
4457
3958
4376
3482
2173
Balance Sheet
Net worth
Deferred tax liability/(asset) [net]
Loan funds
Capital employed
Ratios and statistics
PBDIT as % of net revenue from
operations @
PAT as % of net revenue from
operations $
RONW % *
46013
(285)
10581
56309
42135
37085
33662
29291
25223
21846
18312
12460
9555
(156)
13924
55903
363
410
12936
11459
290
8478
133
9896
263
7161
77
48
61
6801
6556
3584
50384
45531
38059
35252
29270
25190
19064
13200
9.78
9.23
11.38
11.78
10.60
11.82
12.84
13.00
11.56
11.87
8.30
12.37
7.91
12.39
8.87
14.30
9.71
17.46
8.50
16.06
8.38
18.95
9.01
11.82
10.26
8.69
19.73
28.49
31.71
29.21
Gross Debt: Equity ratio
0.23:1
0.33:1
0.35:1
0.34:1
0.29:1
0.39:1
0.33:1
0.37:1
0.53:1
0.38:1
Basic earnings per equity share (`) #^
58.49
53.71
54.46
59.36
53.33
48.61
43.55
49.18
39.67
25.20
Book value per equity share (`) ##^
Dividend per equity share (`) ##^
493.19
452.35
398.78
362.95
317.09
274.35
238.96
202.46
141.54
108.63
21.00
18.25
16.25
14.25
12.33
11.00
9.67
8.33
7.00
5.67
No. of equity shareholders
923628
10,28,541
8,53,824
832,831
854,151
926,719
8,53,485
8,14,678
9,31,362
5,78,177
No. of employees
41,466
43,354
44,081
54,579
50,592
48,754
45,117
38,785
37,357
31,941
Figures for 2016-17 & 2015-16 are as per Ind AS and for earlier periods as per IGAAP and hence not directly comparable
^^ Profit before depreciation, interest and tax (PBDIT) is excluding extraordinary/exceptional items wherever applicable 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 extraordinay /exceptional items )/(gross revenue from opertions 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 adjustments for issue of bonus shares/restructuring during the respective years upto 2015-16.
$$
^
Figures for the year 2007-08 to 2011-12 include Hydrocarbon business which has been transferred w.e.f April 1, 2013 to a wholly owned subsidiary.
The Board of Directors has recommended for the approval of shareholders, the issue of bonus equity shares in the ratio of 1:2 (one bonus equity share
of ` 2 each for every two equity shares of ` 2 each held). Accordingly, the figures for 2016-17 are based on number of equity shares before the proposed
bonus issue.
36
CONSOLIDATED FINANCIALS-10 YEAR HIGHLIGHTS
Particulars
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
Ind AS
IGAAP
` crore
Statement of Profit and Loss
Gross revenue from operations
110011
101975
92762
85889
75195
64960
52470
44310
40932
29819
PBDIT^^
11075
10463
11258
10730
9929
8884
7677
6423
5024
3706
Profit attributable to Group shareholders (excluding
5920
4154
4470
4547
4911
4649
4238
3796
3007
2304
extraordinary/exceptional items)
Profit attributable to Group shareholders (including
6041
4233
4765
4902
5206
4694
4456
5451
3789
2325
extraordinary/exceptional items)
Balance Sheet
Net worth
50217
44180
40909
37712
33860
29387
25051
20991
13988
10831
Non-controlling interest
3564
2893
4999
3179
2653
1753
1026
1087
1059
Deferred tax liability/(asset) [net]
(1125)
(736)
(185)
337
184
82
311
153
131
923
122
Loan funds
Capital employed
Ratios and statistics
93976
88135
90571
80330
62672
47150
32798
22656
18400
12120
146632
134472
136294
121558
99369
78372
59186
44887
33578
23996
PBDIT as % of net revenue from operations @
10.13
10.35
12.24
12.60
13.33
13.81
14.75
14.61
12.40
12.58
PAT as % of net revenue from operations $
5.53
4.19
5.18
5.76
6.99
7.30
8.56
12.40
9.35
7.89
RONW % **
12.80
9.91
12.13
13.71
16.47
17.26
19.38
31.23
30.64
26.92
Gross Debt: Equity ratio
1.75:1
1.87:1
2.21:1
2.13:1
1.85:1
1.61:1
1.31:1
1.08:1
1.32:1
1.12:1
Basic earnings per equity share (`) # ^
Book value per equity share (`) ## ^
Dividend per equity share (`) ## ^
64.80
45.48
51.33
52.97
56.53
51.21
49.04
61.27
43.17
26.96
538.25
474.30
439.93
406.65
366.59
319.64
273.97
232.04
158.84
122.87
21.00
18.25
16.25
14.25
12.33
11.00
9.67
8.33
7.00
5.67
Figures for 2016-17 & 2015-16 are as per Ind AS and for earlier periods as per IGAAP and hence not directly comparable
^^ Profit before depreciation, interest and tax [PBDIT] is excluding extraordinary/exceptional items wherever applicable and other income.
@
$
** RONW [(profit attributable to group shareholders including extraordinary/exceptional items)/(average net worth excluding revaluation reserve and
PBDIT as % of net revenue from operations =[PBDIT/gross revenue from operations less excise duty].
PAT as % of net revenue from operations = [PAT including extraordinary/exceptional items/gross revenue from operations less excise duty].
#
miscellaneous 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 upto 2015-16.
^
The Board of Directors has recommended for the approval of shareholders, the issue of bonus equity shares in the ratio of 1:2 (one bonus equity share
of ` 2 each for every two equity shares of ` 2 each held). Accordingly, the figures for 2016-17 are based on number of equity shares before the proposed
bonus issue.
37
L&T CONSOLIDATED - ORDER INFLOW
L&T CONSOLIDATED - GROSS REVENUE
FROM OPERATIONS AND PAT
– 9.0
– 8.5
– 8.0
– 7.5
– 7.0
– 6.5
e
g
a
t
n
e
c
r
e
P
– 6.0
–
136035
7.6
142995
7.1
2015-16
2016-17
Order Inflow
India GDP growth
L&T CONSOLIDATED - ORDER BOOK
249017
5%
261341
115000 –
110000 –
105000 –
100000 –
95000 –
90000 –
85000 –
80000 –
–
e
r
o
r
c
`
101975
4233
110011
6041
– 7000
– 6500
– 6000
– 5500
e
r
o
r
c
– 5000
`
– 4500
– 4000
– 3500
–
2015-16
2016-17
Gross revenue from operations
PAT including exceptional items
(attributable to owners of the Company)
L&T CONSOLIDATED - PBDIT AS % OF NET REVENUE
FROM OPERATIONS
e
r
o
r
c
`
12000 –
11000 –
10000 –
9000 –
8000 –
7000 –
6000 –
5000 –
4000 –
3000 –
–
10463
11075
– 16.0
– 14.0
10.3
10.1
2015-16
2016-17
– 12.0
– 10.0
e
g
a
t
n
e
c
r
e
P
– 8.0
– 6.0
– 4.0
–
e
r
o
r
c
`
150000 –
130000 –
110000 –
90000 –
70000 –
50000 –
30000 –
–
310000 –
260000 –
210000 –
e
r
o
r
c
`
160000 –
110000 –
60000 –
–
As at 31-3-2016
As at 31-3-2017
–
PBDIT
PBDIT as % of net revenue from operations
Net revenue from operations and PBDIT exclude exceptional items
L&T CONSOLIDATED - SEGMENT-WISE ORDER INFLOW 2016-17
L&T CONSOLIDATED - SEGMENT-WISE REVENUE 2016-17
7128
5%
4028
3%
8545
6%
78492
55%
` crore
Infrastructure
Power
Heavy Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
10125
9%
4028
4%
8545
8%
9731
9%
9602
9%
7861
5%
2866
2%
Total order inflow: ` 142995 crore
4969
4%
3149
3%
6939
6%
Total revenue: ` 110011 crore
52923
48%
` crore
Infrastructure
Power
Heavy Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
9731
7%
18525
13%
5818
4%
38
L&T CONSOLIDATED - SEGMENT-WISE ORDER BOOK AS AT 31-3-2017
L&T CONSOLIDATED - SEGMENT-WISE ORDER BOOK AS AT 31-3-2016
14159
5%
24823
10%
2741
1%
11997
5%
13824
5%
` crore
Infrastructure
Power
193796
74%
Heavy Engineering
Electrical &
Automation
Hydrocarbon
Others
17153
7%
15503
6%
3059
1%
7449
3%
18499
8%
` crore
Infrastructure
Power
187354
75%
Heavy Engineering
Electrical &
Automation
Hydrocarbon
Others
Total order book: ` 261341 crore
Total order book: ` 249017 crore
L&T CONSOLIDATED - SEGMENT-WISE RESULT 2016-17
L&T CONSOLIDATED - SEGMENT-WISE EBIDTA MARGINS*
4723
(50%)
1826
(19%)
201
(2%)
499
(5%)
550
(6%)
508
(5%)
786
(8%)
415
(4%)
32
(0.3%)
5000 –
4500 –
4000 –
3500 –
3000 –
2500 –
2000 –
1500 –
1000 –
500 –
0 –
e
r
o
r
c
`
– – – – – – – – – –
n
o
b
r
a
c
o
r
d
y
H
n
o
i
t
a
m
o
t
u
A
g
n
i
r
e
e
n
g
n
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r
u
t
c
u
r
t
s
a
r
f
n
s
e
c
i
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r
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S
s
e
c
i
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e
T
&
T
I
i
c
n
a
n
i
F
y
v
a
e
H
Total segment wise result: ` 9539 crore
Figures in brackets represent percentage of segment result to total segment result
25 –
20 –
15 –
10 –
5 –
e
g
a
t
n
e
c
r
e
P
2015-16
2016-17
20.5 21.2
18.4
19.9
15.1
12.5
11.2
10.2
6.8
2.7 3.5
0.6
0.6
14.6
10.9
10.1
6.8
2.3
0 –
– – – – – – – – – –
r
e
w
o
P
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* Earnings before interest, depreciation, tax and amortisation as percentage of net segment revenue
L&T CONSOLIDATED - SEGMENT-WISE TOTAL ASSETS
L&T CONSOLIDATED - SEGMENT-WISE TOTAL LIABILITIES
80000 –
70000 –
60000 –
50000 –
40000 –
e
r
o
r
c
`
30000 –
20000 –
10000 –
31.03.2016
31.03.2017
2
4
8
1
3 7
1
2
4
6
1
2
0
0
5
8
8
6
6
4
1
4
2
8
2
5
1
3
5
2
1
6
3
9
1
9
5
4
8
1
4
6
9
7
7
4
8
6
0
5
4
5
2
1
1
5
2
7
4
4
4
6
3
4
4
4
1
6
9
2
7
6
6
8
0
6
7
0
3
4
0 –
– – – – – – – – – –
n
o
b
r
a
c
o
r
d
y
H
n
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t
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m
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h
c
e
T
&
T
I
i
c
n
a
n
i
F
y
v
a
e
H
Total segment wise Assets as at 31.03.2016: ` 183914 crore and as at 31.03.2017: ` 197701 crore
70000 –
60000 –
50000 –
40000 –
31.03.2016
31.03.2017
1
4
3
4
6
5
5
9
6
5
3
1
9
3
3
0
4
2
0
3
e
r
o
r
c
`
30000 –
20000 –
10000 –
2
8
3
7
2
6
3
6
9
8
7
3
6
1
8
3
8
6
5
4
0
9
5
5
4
7
7
1
6
3
9
1
7
0
6
1
3
1
8
1
8
4
5
8
1
3
9
8
0
8
8
6
5
4
8
6
0 –
– – – – – – – – – –
n
o
b
r
a
c
o
r
d
y
H
n
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i
t
a
m
o
t
u
A
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e
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t
s
a
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f
n
s
e
c
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S
s
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S
s
t
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e
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r
P
a
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i
r
t
c
e
r
e
w
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P
s
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e
h
t
O
&
E
a
l
l
l
i
l
j
I
a
t
n
e
m
p
o
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v
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D
l
l
y
g
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h
c
e
T
&
T
I
i
c
n
a
n
i
F
y
v
a
e
H
Total segment wise Liabilities as at 31.03.2016: ` 121743 crore and as at 31.03.2017: ` 133547 crore
Total liabilities for Financial Services and Developmental Projects predominantly comprises of
borrowings
39
AGM Venue :
St. Andrews Auditorium,
St. Dominic Road,
Bandra (West), Mumbai - 400050
LARSEN & TOUBRO LIMITED
Regd. Office : L&T House, Ballard Estate, Mumbai 400 001.
CIN : L99999MH1946PLC004768
Email: Igrc@Larsentoubro.com • Website: www.Larsentoubro.com
Tel. No.: 022-67525656 • Fax No.: 022-67525893
Notice
NOTICE IS HEREBY GIVEN
THAT the Seventy Second Annual
General Meeting of LARSEN &
TOUBRO LIMITED will be held
at St. Andrews Auditorium, St.
Dominic Road, Bandra (West),
Mumbai - 400050 on Tuesday,
August 22, 2017 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, 2017 and
the Reports of the Board of
Directors and Auditors thereon
and the audited consolidated
financial statements of the
Company and the report of the
auditors thereon for the year
ended March 31, 2017;
2) To declare a dividend on equity
shares;
3) To appoint a Director in place
of Mr. Sushobhan Sarker (DIN:
00088276), who retires by
rotation and is eligible for
re-appointment;
4) To appoint a Director in place
of Mr. Shailendra Roy (DIN:
02144836), who retires by
rotation and is eligible for
re-appointment;
5) To appoint a Director in place
of Mr. R. Shankar Raman
(DIN: 00019798), 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 a SPECIAL
RESOLUTION the following:
“RESOLVED THAT pursuant to
the provisions of Sections 149,
152 and any other applicable
provisions of the Companies
Act, 2013 and the rules
made thereunder read with
Schedule IV to the Companies
Act, 2013 (including any
statutory modification(s) or
re-enactment(s) thereof for
the time being in force) and
SEBI (Listing Obligations and
Disclosure Requirements)
Regulations, 2015 and based
on the recommendation of the
Nomination and Remuneration
Committee and approval
of the Board of Directors,
Mr. Subodh Bhargava (DIN:
00035672) who was appointed
as an Independent Director
of the Company for a term
upto March 29, 2017 by the
shareholders and in respect
of whom the Company has
received a notice in writing
from the Director under Section
160 of the Companies Act,
2013 proposing his candidature
for the office of a Director be
and is hereby re-appointed as
an Independent Director of the
Company for a term of five
years with effect from March
30, 2017 to March 29, 2022“
7) To consider and, if thought
fit, to pass with or without
modification(s) as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT pursuant
to Section 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 Chief
Executive Officer and Managing
Director of the Company with
effect from July 1, 2017 to June
30, 2022.
RESOLVED FURTHER THAT
Mr. S.N. Subrahmanyan in his
capacity as Chief Executive
Officer and Managing Director,
be paid remuneration as may
be fixed by the Board, from
time to time, as prescribed
under the Companies Act, 2013
and within the limits approved
by the members as per the
details given in the explanatory
statement.”
8) To consider and, if thought
fit, to pass with or without
modification(s) as an
ORDINARY RESOLUTION the
following:
41
“RESOLVED THAT Mr. Jayant
Damodar Patil (DIN: 01252184)
who was appointed as an
Additional Director with effect
from July 1, 2017 and holds
office upto the date of this
Annual General Meeting of
the Company, and 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.”
9) To consider and, if thought
fit, to pass with or without
modification(s) as an
ORDINARY RESOLUTION the
following:
“RESOLVED THAT Mr. Arvind
Gupta (DIN: 00090360) who
was appointed as an Additional
Director with effect from July
1, 2017 and holds office upto
the date of this Annual General
Meeting of the Company,and
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.”
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. Jayant
Damodar Patil (DIN: 01252184)
as the Whole-time Director of
the Company with effect from
July 1, 2017 upto and including
June 30, 2022.
RESOLVED FURTHER THAT
Mr. Jayant Damodar Patil 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 a SPECIAL
RESOLUTION the following:
“RESOLVED THAT in
supersession of the resolution
no. 17 passed by the Members
at the 71st Annual General
Meeting of the Company held
on August 26, 2016 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 modification(s)
or re-enactment(s) thereof
for the time being in force) as
amended from time to time,
Foreign Exchange Management
Act, 1999, Securities and
Exchange Board of India (Issue
of Capital and Disclosure
Requirements) Regulations,
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
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 ` 4000 Crore
(Rupees Four Thousand 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 National Stock Exchange of
India Limited or any other Stock
Exchange(s).
43
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.”
12) 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(s) thereof,
for the time being in force),
and subject to the provisions
of the Articles of Association
44
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), 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.”
13) To ratify the appointment of
M/s. Deloitte Haskins & Sells
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 modification(s)
or re-enactment(s) 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 Statutory
Auditors of the Company, to
hold office from the conclusion
of the 72nd Annual General
Meeting till the conclusion
of the 73rd Annual General
Meeting.
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.”
14) 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 ` 11.75
lakhs plus applicable service
tax and out of pocket expenses
at actuals for travelling and
boarding/lodging for the
financial year ending on March
31, 2018 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 2017-18.”
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
N. HARIHARAN
COMPANY SECRETARY
M.NO – A3471
Mumbai, May 29, 2017
Notes:
[a] The information required
to be provided under the
SEBI (Listing Obligations and
Disclosure Requirements)
Regulations, 2015 and the
Secretarial Standard 2 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 6 to 12 and 14 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
Sunday, August 20, 2017.
[c] The Register of Members
and Transfer Books of the
Company will be closed from
Wednesday, August 16, 2017
to Tuesday, August 22, 2017
(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 Monday, August
14, 2017, 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 holding shares in
physical form 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 124 of
the Companies Act, 2013 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
81
82
83
84
85
86
87
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
26.08.2016 31.03.2016 02.10.2023
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
45
days before they are due for
transfer to the said fund.
electronic means is optional for
shareholders.
[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
46
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 Monday,
August 14, 2017 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 Saturday,
August 19, 2017 at 9.00 A.M
and ends on Monday, August
21, 2017 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
Monday, August 14, 2017
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 Monday,
August 14, 2017, i.e. the
commencement of the 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 Monday, August 14, 2017
may approach the Company
for issuance of the User ID
and Password for exercising
their right to vote by electronic
means.
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. 14713),
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
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 remote
e-voting> 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 scrutiniser 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
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.
47
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.
The Company proposes to live
webcast the proceedings of the
AGM in collaboration with NSDL.
The shareholder may view the
same by logging into the link
www.evoting.nsdl.com using their
e-voting credentials. Questions may
be raised on this platform, which
will be answered appropriately.
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 6 to 12 and 14
of the accompanying Notice dated
May 29, 2017.
Item No. 6:
Mr. Subodh Bhargava (DIN:
00035672) was appointed as
an Independent Director of the
Company with effect from April 1,
2014 to March 29, 2017. As per the
then prevailing listing agreement
and on account of his prior term
with the Company, Mr. Bhargava
was re-appointed for only one term.
However, the amendment to the
listing agreement/listing regulations
which are in line with the
Companies Act, 2013 provides two
terms for all Independent Directors.
Hence it is proposed to appoint Mr.
Subodh Bhargava for one more term
of five years.
48
The Board of Directors at its meeting
held on January 28, 2017 on the
recommendation of the Nomination
and Remuneration Committee,
approved the re-appointment
of Mr. Bhargava as Independent
Director of the Company for a
second and final term of five years
with effect from March 30, 2017 to
March 29, 2022 based on his skills,
experience, knowledge and report
of his performance evaluation. His
re-appointment is subject to the
approval of the shareholders at this
Annual General Meeting by way of
a Special Resolution.
Pursuant to the provisions
of the Companies Act, 2013
and SEBI(Listing Obligations
and Disclosure Requirements)
Regulations, 2015, (“LODR
Regulations”) an Independent
Director shall hold office for a term
upto five consecutive years on the
Board of the Company and shall
be eligible for re-appointment on
passing of a Special Resolution by
the Company and disclosure of such
appointment in the Board Report.
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 Independent Director of the
Company.
In the opinion of the Board, Mr.
Bhargava fulfils the conditions
specified in the Companies Act,
2013 and rules made thereunder
and LODR Regulations for his
re-appointment as an Independent
Director of the Company and is
independent of the management.
The copy of the letter for
appointment of Mr. Bhargava 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.
The Board considers that his
association would be of immense
benefit to the Company as it has
been beneficial in the past and
it is desirable to avail services of
Mr. Bhargava as an Independent
Director. Accordingly, the Board
recommends the resolution in
relation to appointment of Mr.
Bhargava as an Independent
Director, for the approval by the
shareholders of the Company.
Except Mr. Subodh Bhargava, 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.
Item No. 7:
Shareholders had approved
the appointment of Mr. S.N
Subrahmanyan (DIN: 02255382)
as Deputy Managing Director and
President of the Company for a
period of five years, with effect from
October 1, 2015 upto and including
September 30, 2020.
On the recommendation of the
Nomination & Remuneration
Committee, the Board of Directors
of the Company at its Meeting held
on April 7, 2017, appointed Mr. S.
N. Subrahmanyan (DIN: 02255382),
as Chief Executive Officer and
the Managing Director of the
Company with effect from July 1,
2017 upto and including June 30,
2022, subject to the approval of
the members in the Annual General
Meeting.
Mr. S. N. Subrahmanyan, 57,
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.
He successfully set up the Ready
Mix Concrete business for the first
time in India. Apart from completing
several challenging infrastructure
projects across verticals over the
years, he has played a crucial role
in securing and managing EPC
contracts for the construction of
four major international airports
in India at Bengaluru, Hyderabad,
Delhi and Mumbai. Among his
list of accomplishments are the
mandates to build the tallest statue
in the world – the Statue of Unity -
and the development of dedicated
freight corridors that will realign
the dynamics of freight movement
in the country. The construction
division is among the top 30 global
contractors and by far the largest
construction organisation in the
country.
Largely responsible for establishing
L&T Construction as a significant
EPC player in the Middle East, Mr.
Subrahmanyan has spearheaded
and won several large projects in
Oman, Qatar, Abu Dhabi and Saudi
Arabia like the Salalah Airport in
Oman and a big interchange and
road project in UAE. The Riyadh
Metro project is one of the largest
international orders bagged by L&T
thus far; while the Doha Metro, the
AL-Wakrah Road Project both in
Qatar and the Abu Dhabi Airport
airside works have been won
in the face of stiff international
competition. He has also led
the spread into Africa and L&T
Construction is already making its
presence felt especially in North and
East Africa.
He brought to the fore the expertise
of ‘Design and Build’ construction
solutions on an EPC (Engineer
Procure Construct) basis and is one
of the first exponents of aluminum
formwork systems and an early
adopter of precast technology for
housing projects.
Mr. Subrahmanyan is the Non-
Executive Vice Chairman of Larsen
& Toubro Infotech Limited and L&T
Technology Services Limited and
the Non-Executive Chairman of L&T
Metro Rail (Hyderabad) Limited.
Part III, of Schedule V of the
Companies Act, 2013 and
Secretarial Standard 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, August 22, 2013 and August
26, 2016 the shareholders had fixed
the maximum limits within which
the Board was delegated authority
to decide the remuneration of
the Chief Executive Officer and
Managing Director of the Company.
Pursuant to this, the Board has fixed
the remuneration payable to Mr. S.
N. Subrahmanyan during his tenure
as Chief Executive Officer and
Managing Director.
The Company has entered into
an Agreement with Mr. S.N.
Subrahmanyan appointing him
as a Chief Executive Officer and
Managing Director for the period of
five years from July 1, 2017 to June
30, 2022. During the period of this
agreement and so long as the Chief
Executive Officer and Managing
Director performs his services as per
the terms and conditions provided
by this agreement, he shall be
entitled to the following:
Salary : ` 18,40,000 (Rupees
Eighteen Lac Forty Thousand
only) per month in the scale
of ` 12,00,000 - ` 1,60,000
- ` 21,60,000 with the annual
increment due on April 1 every year.
Commission : The commission
will be paid as per the parameters
fixed by the Nomination and
Remuneration Committee and the
Board of Directors within the overall
limits approved by the shareholders
of the Company.
Perquisites : ` 20 lakh per
annum excluding free furnished
accommodation or house rent in
lieu thereof.
The above perquisites will exclude
value of Stock Option benefits, if
any, computed as per Income Tax
Act/Rules, tax on which will be
borne by the Company.
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 Chief Executive
Officer and Managing Director,
contains terms and conditions
of his appointment including
remuneration.
Accordingly, the Resolution at Item
No. 7 is proposed for approval
of the members for appointment
49
of Mr. S. N. Subrahmanyan, as
the Chief Executive Officer and
Managing Director as contemplated
by Part III of Schedule V of the
Companies Act, 2013 and other
applicable provisions, if any.
Pursuant to Article 136(C) of the
Articles of Association of the
Company, Mr. S. N. Subrahmanyan
in his capacity as Chief Executive
Officer and Managing Director will
not be liable to retire by rotation.
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 Saturday] 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 Chief
Executive Officer and Managing
Director of the Company.
Except Mr. S.N. Subrahmanyan,
being the appointee, none of the
Directors and Key Managerial
Personnel of the Company and
their relatives are concerned or
interested, in the resolution set out
at Item No. 7.
Item No. 8 & 10:
On the recommendation of the
Nomination & Remuneration
Committee, the Board of Directors
appointed Mr. Jayant Damodar Patil
(DIN: 01252184) as an Additional
Director with effect from July 1,
2017. In terms of Section 161(1) of
the Companies Act, 2013, Mr. Patil
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
50
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. Jayant Damodar Patil
(DIN: 01252184) as a Whole-time
Director of the Company with
effect from July 1, 2017 upto and
including June 30, 2022, subject to
the approval of the members in the
Annual General Meeting.
Mr. Patil graduated in Mechanical
Engineering from Nagpur University
in 1976 with top Honours. He
chose to pursue higher studies at
the Indian Institute of Technology
Mumbai & attained the Top rank
in M Tech Mechanical Engineering,
before joining L&T in 1978.
Mr. Patil has a nearly four decade
long career in L&T during which
he was instrumental in growing
the nascent Technology and
Product Development Group
of L&T’s corporate R&D with a
focus on Top end interdisciplinary
Product Development. Mr. Patil
actively pursued L&T’s foreys
into the Defence sector since
late 80’s. Over these years L&T,
under his leadership, built a
portfolio of indigenous products
and technologies by teaming
up with DRDO and with Indian
Navy. Currently, Mr. Patil heads
Defence and Aerospace Strategic
Business Sectors for L&T with
focus on Naval and Land Weapon
Launch & Engineering Systems,
Submarines, Guns, Missiles
& Armoured Systems, Radar
Systems, Military Communication
Systems, Avionics. He also oversees
Technology Development Centers
for the Defence & Aerospace Sector,
Prototype Development center
at Powai & Bangalore as well as
Defence Production Centers at
Talegaon (near Pune), Coimbatore
and Visakhapatnam, besides specific
work centers at L&T’s Powai, Hazira
and Vadodara manufacturing
complexes.
Part III, of Schedule V of the
Companies Act, 2013 and
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, August 22, 2013 and August
26, 2016 the shareholders had fixed
the maximum limits within which
the Board was delegated authority
to decide the remuneration of
the Whole-time Directors of the
Company. Pursuant to this, the
Board has fixed the remuneration
payable to Mr. Jayant Damodar Patil
during his tenure as Whole-time
Director.
The Company will enter into
an Agreement with Mr. Jayant
Damodar Patil appointing him as a
Whole-time Director for the period
from July 1, 2017 to June 30, 2022.
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 : ` 8,00,000 (Rupees Eight
Lac 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.
as Whole-time Director of the
Company.
Commission : The commission
will be paid as per the parameters
fixed by the Nomination and
Remuneration Committee and the
Board of Directors within the overall
limits approved by the shareholders
of the Company.
Perquisites : ` 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 draft agreement to be entered
into by the Company with Mr.
Jayant Damodar Patil, in respect
of his appointment as Whole-time
Director, contains the terms and
conditions of his appointment
including remuneration.
The draft agreement to be entered
into with Mr. Jayant Damodar
Patil will be open for inspection by
members at the Registered Office of
the Company on all working days
[except Saturday] 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. Jayant Damodar Patil,
Except Mr. Patil, 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 &
10.
Item No. 9:
On the recommendation of the
Nomination & Remuneration
Committee, Mr. Arvind Gupta
(DIN: 00090360), a nominee of
the administrator of the Specified
Undertaking of the Unit Trust of
India (SUUTI), was appointed as an
Additional Director of the Company
with effect from July 1, 2017. In
terms of Section 161(1) of the
Companies Act, 2013, Mr. Gupta
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.
Mr. Gupta has over 24 years of
experience in diverse sectors in
variety of leadership, policy and
entrepreneurial profiles in India
and Silicon Valley, USA. He has
been on the Global FinTech top
100 list of Influencers and also
the Member of World Economic
Forum’s Global Futures Council on
Digital Economy and Society. He is
the head and co-founder of Digital
India Foundation, a policy think
tank working in the areas of Digital
Inclusion, Smart Cities, Internet
Governance, Cyber Security,
Electronics Manufacturing and
Indian Software Products.
The Board considers that his
association would be of immense
benefit to the Company and it is
desirable to avail services of Mr.
Gupta as an Director.
Accordingly, the Board recommends
the resolution in relation to
appointment of Mr. Gupta as a
Director, for the approval by the
shareholders of the Company.
Except Mr. Arvind Gupta, being an
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. 11:
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 thought
prudent for the Company to have
enabling approvals to raise a part
of the funding requirements for the
said purposes as well as for such
other corporate purposes as may
be permitted under applicable laws
through the issue of appropriate
securities as defined in the
resolution, in Indian or international
markets.
The fund raising may be through
a mix of equity/equity-linked
instruments, as may be appropriate.
Members’ approval is sought
for the issue of equity shares,
securities linked to or convertible
into Equity Shares or depository
receipts of the Company. The SEBI
(Listing Obligations and Disclosure
Requirements) Regulations, 2015
also provide that the Company
51
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 securities 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
52
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
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)
in case of allotment of equity
shares, the date of meeting
in which the Board decides to
open the proposed issue
ii)
in case of allotment of eligible
convertible securities, either the
date of the meeting in which
the Board decides to open
the issue of such convertible
securities 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 August 26, 2016, had
approved issue of Securities for
an aggregate sum up to US$600
Million or ` 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 this proposal.
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. 11.
Item No. 12:
The Company is into the business
interalia of manufacturing of
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 August 26, 2016, 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. 12.
Item No. 14:
In accordance with the provisions
of Section 148 of the Companies
Act, 2013 (“the Act”) and the
Companies (Audit and Auditors)
Rules, 2014 (“the Rules”) the
Company is required to appoint
a cost auditor to audit the cost
records of the Company, for
products and services, as specified
under the Companies (Cost Record
and Audit) Rules, 2014. 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 2017-18, at a
remuneration of ` 11.75 lakhs
plus applicable service tax and out
of pocket expenses at actuals for
travelling and boarding/lodging for
both the years.
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
proposal.
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. 14.
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
N. HARIHARAN
COMPANY SECRETARY
M.NO – A3471
Mumbai, May 29, 2017
The route map for the venue of the Annual General Meeting of the Company is given on page 40 of this Annual Report 2016-17
53
(ANNEXURE TO NOTICE DATED MAY 29, 2017)
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
Mr. Sushobhan Sarker
Mr. Shailendra Roy
Mr. R. Shankar Raman
Mr. Subodh Bhargava
Date of Birth
March 29, 1954
September 18, 1952
December 20, 1958
Date of Appointment
on the Board
Qualifications
Expertise
December 15, 2012
March 9, 2012
October 1, 2011
B.Sc Diploma in Management
Studies, Masters in Financial
Management
Vast Experience in Insurance and
Housing Finance
B. Tech
B.Com, ACA and Grad. CWA
Vast experience in Thermal Power,
Heavy Engineering, Defence &
Aerospace Industry
Vast experience in Finance,
Taxation, Risk Management, Legal
and Investor Relations
March 30, 1942
July 3, 2007
Mechanical Engineering
[University of Roorkee]
He has held and continues to hold
many important positions with
various government committees
and in the field of education with
close association in technical and
management education in India.
1.
L&T Infrastructure
Development Projects Limited
2. Corporation Bank
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
Larsen & Toubro Limited
Stakeholders Relationship
Committee
Corporation Bank
54
1. L&T Power Development
1. L&T Infrastructure
1. Glaxo Smithkline Consumer
Limited
2. L&T-Sargent & Lundy Limited
3. Nabha Power Limited
4. L&T-MHPS Boilers Private
Development Projects Limited
2. L&T Finance Holdings Limited
3. L&T Investment Management
Healthcare Limited
2. Batliboi Limited
3. Nicco Parks and Resorts
Limited
Limited
International Institute of CSR
Foundation
Limited
4. Larsen & Toubro Infotech
4.
5. L&T-MHPS Turbine Generators
Limited
Private Limited
5. L&T Hydrocarbon Engineering
6. Raykal Aluminium Company
Limited
Private Limited
7. L&T Special Steels and Heavy
Forgings Private Limited
8. L&T-Howden Private Limited
9. L&T Power Limited
6. L&T Seawoods Limited
7. L&T Realty Limited
8. L&T Metro Rail (Hyderabad)
Limited
Member
Nomination and
Remuneration Committee
1. L&T-Sargent & Lundy Limited
2. L&T-MHPS Turbine Generators
Private Limited
Member
Audit Committee
1. L&T Finance Holdings Limited
2. L&T Infrastructure
Development Projects Limited
3. L&T Investment Management
3. L&T-MHPS Boilers Private
Limited
Limited
4. L&T Power Development
Limited
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
4. L&T Realty Limited
5. L&T Seawoods Limited
6. L&T Metro Rail (Hyderabad)
Limited
Nomination & Remuneration
Committee
1. L&T Seawoods Limited
2. L&T Realty Limited
3.
L&T Investment Management
Limited
Chairman
Nomination and
Remuneration Committee
Larsen & Toubro Limited
Member
Audit Committee
Batliboi Limited
Nomination and
Remuneration Committee
1. Batliboi Limited
2.
Glaxo Smithkline Consumer
Healthcare Limited
Name of the Director
Mr. Sushobhan Sarker
Mr. Shailendra Roy
Mr. R. Shankar Raman
Mr. Subodh Bhargava
Corporate Social
Responsibility Committee
L&T Power Development Limited
4.
L&T Infrastructure
Development Projects Limited
Stakeholder Relationship
Committee
L&T Finance Holdings Limited
Corporate Social
Responsibility Committee
1. Larsen & Toubro Limited
2. L&T Seawoods Limited
3. L&T Investment Management
Limited
4. L&T Infrastructure
Development Projects Limited
5. L&T Realty Limited
6. L&T Finance Holdings Limited
9 out of 10
10 out of 10
10 out of 10
9 out of 10
150*
Not Applicable
Not Applicable
Number of Meetings
attended during the
year
Shareholding of
Non-Executive
Directors
Relationships between
directors inter-se
Nil
* Jointly with LIC
Nil
Nil
750
Nil
55
(ANNEXURE TO NOTICE DATED MAY 29, 2017)
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 Mr. S.N Subrahmanyan
Mr. Arvind Gupta
Mr. Jayant Damodar Patil
Date of Birth
March 16, 1960
Date of Appointment
on the Board
July 1, 2011
March 24, 1970
July 1, 2017
December 16, 1954
July 1, 2017
Qualifications
B.Sc., Engg. (Civil) & MBA Finance
B.Tech, Masters of Computer Science, MBA
B.Tech (Mech.) M. Tech (Prod.)
Expertise
Vast Experience in Design and Build (D&B)
contracts, PPP Projects, Engineering and
Construction Industry
Considerable experience in the field of
Consumer Internet, Digital Payment,
Payment System, Big Data and Analytics
Vast Experience in Defence and Aerospace
Industry
1. Larsen & Toubro Infotech Limited
1. State Trading Corporation of India
1. L&T Cassidian Limited
2. L&T Technology Services Limited
3. L&T Metro Rail (Hyderabad) Limited
Limited
2. Truevalue Opinions and Advisors Private
Limited
3. Aryan Brothers Private Limited
4. Safeway Enterprises Private Limited
2. L&T Shipbuilding Limited
3. L&T Special Steels and Heavy Forgings
Private Limited
4. Spectrum Infotech Private Limited
5. L&T MBDA Missile Systems Limited
Chairman
Chairman
Nil
Stakeholders Relationship Committee
Larsen & Toubro Infotech Limited
Nomination and Remuneration
Committee
State Trading Corporation of India Limited
Corporate Social Responsibility
Committee
State Trading Corporation of India Limited
Corporate Social Responsibility
Committee
Larsen & Toubro Infotech Limited
Member
Audit Committee
1. Larsen & Toubro Infotech Limited
2. L&T Technology Services Limited
Nomination and Remuneration
Committee
Larsen & Toubro Infotech Limited
10 out of 10
Not Applicable
Not Applicable
Not Applicable
Nil
Nil
Not Applicable
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
Nil
56
Board Report
Dear Members,
The Directors have pleasure in presenting their 72nd
Annual Report and Audited Financial Statements for the
year ended March 31, 2017.
FINANCIAL RESULTS:
Particulars
2016-17
` crore
2015-16
` crore
Profit Before Depreciation, exceptional
items & tax
7079.06
6692.74
Less: Depreciation, amortization,
impairment and obsolescence
1215.19
997.40
Profit before exceptional items and tax
5863.87
5695.34
CRISIL Limited has assigned AAA (Stable) rating for L&T’s
long-term debt facilities. In addition, ICRA Limited also has
assigned AAA (Stable) rating for certain borrowings of the
Company.
HIVE-OFF OF COIMBATORE UNDERATKING:
Subsequent to the year under review, on April 20, 2017
the Company has received order of National Company
Law Tribunal for hive-off of its Coimbatore undertaking
engaged in valves manufacturing through a scheme of
Arrangement between Larsen & Toubro Limited and L&T
Valves Limited, a wholly-owned subsidiary of the Company
and their respective shareholders and creditors under the
provisions of section 230 to 232 of the Companies Act,
2013. The appointed date of the scheme was April 1,
2016 and the effective date of the scheme was April 22,
2017.
Add: Exceptional Items
Profit before tax
Less: Provision for tax
893.97
560.28
BONUS:
6757.84
6255.62
1304.10
1256.04
Profit for the period carried to Balance
Sheet
5453.74
4999.58
Add: Balance brought forward from
previous year
7710.27
4522.65
Less: Dividend paid during the year
(Including dividend distribution
tax)
Add: Gain/(loss) on remeasurement of
the net defined benefit plans
1842.71
1647.02
(8.02)
(8.44)
Balance available for disposal
11313.28
7866.77
(which the Directors appropriate as
follows)
Debenture Redemption Reserve
87.75
156.50
The Board of Directors of your Company at its Meeting
held on May 29, 2017, has recommended for approval of
the shareholders issue of bonus shares to the holders of
the equity shares of the Company in the ratio of 1: 2 (i.e
1 (One) Bonus Equity Share of ` 2/- for every 2 (Two) fully
paid-up Equity Shares of ` 2/- each held) by capitalisation
of its Reserves. The approval of the shareholders will be
sought through Postal Ballot.
CAPITAL EXPENDITURE:
As at March 31, 2017 the gross property, plant and
equipment, investment property and other intangible
assets including leased assets, stood at ` 9820.17 crore
and the net property, plant and equipment, investment
property and other intangible assets, including leased
assets, at ` 7548.37 crore. Capital Expenditure during the
year amounted to ` 749.02 crore.
Balance to be carried forward
11225.53
7710.27
DEPOSITS:
The Directors recommend payment of final dividend of ` 21 per
share of ` 2/- each on 93,29,65,803 shares.
CAPITAL & FINANCE:
During the year under review, the Company allotted
14,86,958 equity shares of ` 2/- each upon exercise
of stock options by the eligible employees under the
Employee Stock Option Schemes.
The Company reduced long-term borrowings during
the year under review by way of repayment of Non-
Convertible Debentures (NCD) worth ` 550 crore and
External Commercial Borrowings (ECB) worth US$126
million on scheduled due dates. The Company did not
raise any long-term borrowings during FY2016-17.
The Company has not accepted deposits from the public
falling within the ambit of Section 73 of the Companies
Act, 2013. 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, 2017, 98% of the Company’s total paid up capital
representing 91,42,69,231 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.
57
TRANSFER TO INVESTOR EDUCATION AND
PROTECTION FUND:
The Company sends letters to all shareholders, whose
dividends are unclaimed so as to ensure that they receive
their rightful dues. Efforts are also made in co-ordination
with the Registrar to locate the shareholders who have not
claimed their dues.
During the year, the Company has transferred a sum of
` 2,59,71,351 to Investor Education & Protection Fund
(IEPF), the amount which was due & payable and remained
unclaimed and unpaid for a period of seven years as
provided in section 125 of the Companies Act, 2013 and
the rules made thereunder. 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 ` 17,16,31,755 as on
March 31, 2017.
In accordance with the provisions of the Section 124(6)
and Rule 6(3)(a) of the Investor Education and Protection
Fund Authority (Accounting, Audit, Transfer and Refund)
Rules, 2016, (IEPF Rules), the Company is required to
transfer 12,13,804 equity shares of ` 2 each held by
11,057 shareholders to IEPF. The said shares correspond to
the dividend which has remained unclaimed for a period of
seven consecutive years from the financial year 2008-09.
However, the equity shares wherein, disputes are pending
and Court Order(s) are available with the Company,
shall be retained by the Company. All the remaining
shares, as mentioned above, shall be transferred to IEPF.
Subsequent to the transfer, the concerned shareholders
can claim the said shares along with the dividend(s) from
IEPF in accordance with the prescribed procedure and on
submission of such documents as prescribed under the
IEPF Rules.
The Company has already sent a specific communication
to the concerned shareholders at their address registered
with the Company and also published notice in Financial
Express and Loksatta providing the details of the shares
due for transfer and to enable shareholders to take
appropriate action. The Company is awaiting further
directions on the transfer formalities from the Ministry of
Corporate Affairs in terms of the amendment to the IEPF
Rules dated 28th February, 2017. In the meantime, the
concerned shareholders can approach the Company or
its Registrar & Transfer Agent with necessary documents
supporting their claims.
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
and infrastructure sectors. The details of investments/
divestments in subsidiary companies during the year are as
under:
A) Shares acquired during the year:
Name of the Company
Type of Shares
No. of shares
L&T General Insurance Company
Limited
Equity
L&T Global Holdings Limited
L&T Metro Rail (Hyderabad)
Limited
Equity
Equity
4,70,00,000
79,000
2,04,18,86,554
L&T Technology Services Limited
Equity
2,66,90,392
Marine Infrastructure Developer
Private Limited (Note 1)
Equity
38,80,00,000
Seawoods Realty Private Limited
Equity
Seawoods Retail Private Limited
Equity
10,000
10,000
L&T Shipbuilding Limited (Note 1)
Preference
38,80,00,000
L&T Uttaranchal Hydropower
Limited
L&T Electrical & Automation
Limited (Note 5)
Preference
9,65,00,000
Equity
73,88,796
B) Equity shares sold/transferred during the year:
Name of the Company
Larsen & Toubro Infotech Limited (Note 2)
L&T Technology Services Limited (Note 3)
L&T General Insurance Company Limited
(Note 4)
No. of shares
1,75,00,000
1,04,00,000
75,20,00,000
Larsen Toubro Arabia LLC
7,500
Note:
1. Pursuant to the Scheme of Demerger approved
by National Company Law Tribunal (NCLT), the
existing share capital of Marine Infrastructure
Developer Limited held by L&T Shipbuilding Limited
stands cancelled. The Company has now acquired
38,80,00,000 equity shares of Marine Infrastructure
Developer Limited for a consideration of ` 388 crore
from L&T Shipbuilding Limited. The acquisition has
been completed on 31st March, 2017. Further,
38,80,00,000 equity shares of L&T Shipbuilding
Limited held by the Company have been extinguished
and 38,80,00,000, 9% non-cumulative, optionally
convertible and redeemable preference shares of ` 10
58
each have been issued to the Company in lieu of the
same on 29th March, 2017.
2. The Company has sold its 10.30% stake in Larsen &
Toubro Infotech Limited (LTI), a subsidiary, through an
Initial Public offering of LTI equity shares. LTI got listed
on July 21, 2016.
3. The Company has sold its 10.23% stake in L&T
Technology Services Limited (LTTS), a subsidiary,
through an Initial Public offering of LTTS equity shares.
LTTS got listed on 23rd September, 2016.
4. The Company has sold its entire stake in L&T General
Insurance Company Limited, a wholly-owned
subsidiary, to HDFC ERGO General Insurance
Company Limited.
5. The scheme of arrangement between L&T Valves
Limited and L&T Electrical & Automation Limited was
approved by National Company Law Tribunal on April
27, 2017 with appointed date as November 1, 2016.
Pursuant to the scheme L&T Electrical & Automation
Limited issued 73,88,796 shares to Larsen & Toubro
Limited as a consideration towards transfer of certain
assets by L&T Valves Limited. Accordingly the value of
investment in L&T Electrical and Automation Limited
was increased by ` 40.31 crore and reduced in L&T
Valves Limited by ` 40.31 crore during the year
2016-17.
The Company has formulated a policy on identification
of material subsidiaries in line with Regulation 16(c) of
the SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 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 471 to 480 of this Annual Report.
SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 in Note 37 and 38 forming part of the
financial statements
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.
The Company has a process in place to periodically review
and monitor Related Party Transactions.
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 2016-17 and estimated transactions for FY
2017-18.
There were no materially significant related party
transactions that may have conflict with the interest of the
Company.
STATE OF COMPANY AFFAIRS:
The total income for the financial year under review
was ` 68,273 crore as against ` 66,154 crore for the
previous financial year registering an increase of 3%. The
profit before tax from continuing operations including
exceptional items was ` 6,758 crore for the financial year
under review as against ` 6,256 crore for the previous
financial year, registering a increase of 8%. The profit
after tax from continuing operations including exceptional
items was ` 5,454 crore for the financial year under review
as against ` 5,000 crore for the previous financial year,
registering an increase of 9%.
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 ` 21
(1050%) per equity share of ` 2/- each on the pre-bonus
share capital which works out to ` 14 per equity share
post issue of bonus shares.
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 as required under Section 186 of the Companies
Act, 2013 and Regulation 34(3) and Schedule V of the
The Board of Directors of the Company has approved the
Dividend Distribution Policy on 22nd November, 2016 in
line with regulation 43A of the SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015. The Policy is
provided in Annexure ‘G‘ forming part of this Board Report
and also uploaded on the Company’s website at http://
investors.larsentoubro.com/Listing-Compliance.aspx.
59
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 Apex 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 225 to 227 of this Annual Report.
CORPORATE SOCIAL RESPONSIBILITY:
The Corporate Social Responsibility Committee comprises
of Mr. Vikram Singh Mehta, Mr. R. Shankar Raman and Mr.
D. K. Sen 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. Bahram Navroz Vakil resigned as Director of the
Company on 1st August, 2016. The Board places on
record its appreciation of the contribution by Mr. Vakil as
Director of the Company.
Mr. Subodh Bhargava was appointed as an Independent
Director of the Company with effect from April 1, 2014
to March 29, 2017. Pursuant to the recommendation of
Nomination and Remuneration Committee, the Board
at its Meeting held on January 28, 2017 has approved
the re-appointment of Mr. Subodh Bhargava as an
Independent Director for a further term of 5 years from
March 30, 2017 to March 29, 2022, subject to the
approval of the shareholders, since the Board was of the
opinion that his association would be of immense benefit
to the Company and it was desirable to avail services of
Mr. Bhargava as an Independent Director.
The Board has appointed Mr. Arvind Gupta as an
Additional Director representing Administrator of the
Specified Undertaking of the Unit Trust of India with
effect from July 1, 2017. Mr. Gupta will hold office till the
ensuing Annual General Meeting (AGM) and is eligible for
appointment.
The Board has appointed Mr. J. D. Patil as an Additional
Director of the Company at its Meeting dated 29th May,
2017 with effect from 1st July, 2017. Mr. Patil will hold
office till the ensuing AGM and is eligible for appointment.
The Board has also appointed him as the Whole-time
Director of the Company with effect from 1st July, 2017,
for a period of five years subject to approval of the
shareholders.
Mr. Sushobhan Sarker, Mr. R. Shankar Raman and Mr.
Shailendra Roy retire by rotation at the ensuing AGM and
being eligible offer themselves for re-appointment.
The current term of Mr. A. M. Naik as Group Executive
Chairman ends on September 30, 2017. Your Board
of Directors had requested Mr. Naik to provide advice,
guidance and mentorship to the Company’s executive
management in the capacity of Non-Executive Chairman.
Mr. Naik has acceded to the Board’s request and shall
continue as Non-Executive Chairman with effect from
October 1, 2017 for a period of three years.
The Board has appointed Mr. S.N. Subrahmanyan as
Chief Executive Officer and Managing Director with effect
from 1st July, 2017, for a period of five years subject to
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
60
of the Company http://investors.larsentoubro.com/Listing-
Compliance.aspx.
website of the Company http://investors.larsentoubro.com/
Listing-Compliance.aspx.
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 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 Report.
Members are requested to refer to pages 74 and 75 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 the Board Report. Members are requested
to refer to pages 77 to 79 of this Annual Report.
COMPANY POLICY ON DIRECTORS APPOINTMENT
AND REMUNERATION:
The Company has in place a Nomination and
Remuneration Committee in accordance with the
requirements of the Companies Act, 2013 read with
the rules made thereunder and Regulation 19 of the
SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015. The details relating to the same are
given in Annexure ‘B’ - Report on Corporate Governance
forming part of the Board Report. Members are requested
to refer to pages 79 to 81 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, board diversity, composition and the
criteria for determining qualifications, positive attributes
and independence of a Director. The Committee has also
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
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 Report.
DIRECTORS RESPONSIBILITY STATEMENT:
The Board of Directors of the Company confirms:
a)
In the preparation of Annual Accounts, the applicable
accounting standards have been followed along with
proper explanation relating to material departures;
b) The Directors have selected such accounting policies
and applied them consistently and made judgements
and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of
the profit of the Company for that period;
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 control 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, 2017, 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.
61
PERFORMANCE EVALUATION OF THE BOARD, ITS
COMMITTEES AND DIRECTORS:
The Nomination and Remuneration Committee and the
Board have laid down the manner in which formal annual
evaluation of the performance of the Board, committees
and individual directors has to be made.
All Directors responded through a structured questionnaire
giving feedback about the performance of the Board, its
Committees, Individual directors and the Chairman. The
questionnaire included inputs on composition, culture,
functioning, information availability, compliance and
governance, effectiveness etc. Questionnaire also covered,
in the case of individual directors, qualitative assessment
and in the case of Chairman additional criteria like
leadership qualities and other key aspects of his role.
The Individual Directors’ responses to 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, including areas of improvement, given by
all the directors were discussed in the meeting of the
Independent Directors held on April 6, 2017 and in the
subsequent Meetings of Nomination and Remuneration
Committee and the Board. The Group Executive Chairman
had a discussion with all the Directors individually.
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 information in respect of employees of the Company
required pursuant to Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, as amended from time to time,
is provided in Annexure ‘H’ 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
complaints received by the Company in the financial year
2016-17.
OTHER DISCLOSURES:
ESOP 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 Securities
and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014 (“SBEB Regulations”).
The disclosures relating to ESOPs required to be made
under the provisions of the Companies Act, 2013 and
the rules made thereunder and the SBEB Regulations
together with a certificate obtained from the Statutory
Auditors, confirming compliance, is provided on the
website of the Company http://investors.larsentoubro.
com/Listing-Compliance.aspx.
A certificate obtained from the Statutory Auditors,
confirming compliance with the Companies Act, 2013
and the SBEB Regulations is provided in Annexure ‘B’
forming part of this Report.
Corporate Governance: Pursuant to Regulation
34 of 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 Report.
No disclosure is required under Section 67(3)(c)
of the Companies Act, 2013, in respect of voting
rights not exercised directly by the employees of the
Company as the provisions of the said section are not
applicable.
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
62
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
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 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 person has been declined access to the
Audit Committee, wherever desired.
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 Reporting forms a part
of this Annual Report (refer pages 19 to 35).
The detailed Corporate Sustainability Report is also
available on the Company’s website
http://www.larsentoubro.com/corporate/sustainability.aspx.
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.
The Secretarial Auditor’s report to the shareholders does
not contain any qualification.
AUDITORS:
In accordance with provisions of Section 139 of the
Companies Act, 2013 and the Companies (Audit and
Auditors) Rules, 2014, Sharp & Tannan (firm registration
number 109982W) will complete their term as Statutory
Auditors of the Company at the conclusion of the
forthcoming Annual General Meeting. The Board places on
record its appreciation for the services rendered by Sharp &
Tannan as the Statutory Auditors of the Company.
In view of the mandatory rotation of auditor requirement
and in accordance with the provisions of Companies
Act, 2013, Deloitte Haskins & Sells LLP were 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 72nd AGM till the conclusion of the
73rd AGM has been included in the Notice of the ensuing
AGM.
Deloitte Haskins & Sells LLP, have informed the Company
that their appointment 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 Institute of
Chartered Accountants of India (ICAI) and hold valid
certificate issued by the Peer Review Board of the ICAI.
The Audit Committee reviews the independence and
objectivity of the Auditors and the effectiveness of the
Audit process.
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 applicable Accounting Standards prescribed by the
Institute of Chartered Accountants of India, in this regard.
The Auditors’ report to the shareholders does not contain
any qualification, observation or adverse comment.
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.
REPORTING OF FRAUD:
The Auditors of the Company have not reported any
instances of fraud committed against the Company by its
officers or employees as specified under Section 143(12) of
the Companies Act, 2013.
SECRETARIAL AUDIT REPORT:
The Secretarial Audit Report issued by S. N.
Ananthasubramanian & Co., Company Secretaries is
attached as Annexure ‘E’ to this Annual Report.
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
63
thereof, the Board, on the recommendation of the Audit
Committee, at its meeting held on May 29, 2017, has
approved the appointment of R. Nanabhoy & Co., Cost
Accountants as the Cost Auditors for the Company for the
financial year ending March 31, 2018 at a remuneration of
` 11.75 lakhs.
The Report of the Cost Auditors for the financial year
ended March 31, 2017 is under finalization and shall be
filed with the MCA within the prescribed period.
A proposal for ratification of remuneration of the Cost
Auditor for the financial year 2017-18 is placed before the
shareholders.
DISCLOSURE ON SPECIFIED BANK NOTES:
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)
The information is covered in Note 59 forming part of the
Financial Statements forming part of this Annual Report.
Mumbai, May 29, 2017
64
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:
Use of Induction lamps in place of mercury vapor
lamps for bay lighting at Kancheepuram factory
Replacement of electrical heating coil vaporizer
used in the galvanizing plant to vaporize the
liquefied LPG from cylinders with heater less hot
water vaporizer at Puducherry factory
Conversion of DOL Starter to Variable Frequency
Drives (VFD) for Admin Building Chiller Primary
pumps
Use of automatic switching off 50% Streetlights
during night
Installation of L&T VFD for moulding machine
Implementation of ISO 50001 across ESP MFG
Plants
Energy audit and Energy training provided at
Ahmednagar Switchgear Works
Replacement of Natural gas heating with
electrical heating for heat treatment of jobs
Optimization of DG set capacity in Furnace
Process cooling tower Fan operation converted
from manual mode to Automatic mode operation
through low cost automation
Upgradation of coolant system of Asquith
machine to eliminate 8 no’s of motor along with
VFD installation
Replacement of conventional MH Lamps and
fluorescent tube lights by LED lamps in working
areas at projects as well as for street lights
Installation of HVLS Fan
Use of Flood light LED and power efficient Metal
Halide lamps instead of Halogen in campuses
Retrofitting of LED fixtures in place of CFL Fixtures
Cooling Tower Pump Energy Optimization
Conducted “Save Electricity” campaign on
campus
Installation of motion sensors at floor areas to
reduce the overall electricity consumption
Installation of auto water level controller for
domestic pumps
Use of Eco Fuel, which is a direct substitute to
High Speed Diesel in Hot Mix Plant
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
Clubbing of charges in furnace during rolling
process to improve loading factor
Replacement of rotor resistance controlled starter
to Drive controller starter for EOT cranes resulting
smooth operation and energy saving
Introduction of VSD based compressor
Compressed air optimization
Installation of diffusers and blowers in waste
water treatment plants instead of conventional
surface aerators, which will lead to energy
savings by 12 - 15%
Use of photo electric sensors for lighting control
in Integrated Urban Utility Projects / Industrial
Township Projects
Use of Hybrid Lighting Masts
Use of Recycled water from STP for sanitation and
gardening
Use of Motion sensors and RTC timers fixed at
paint booth blowers, HVAC, clock room, Rest
Rooms, Garden lights and Food courts
Introduced RTC timer for Domestic Water pump
to avoid high pressure leakages in the existing
system
Dedicated team for monitoring the lighting
system and staff trained for preventing excessive
usage of power
Use of VFDs with auto monitoring of pressure
and temperature for compressor and blower
65
Implementation of Cold phosphating pre-
treatment process (Oxsilan process) in the paint
shop
Usage of Variable Speed Drive for better
efficiency
Installation of PLC controlled “Auto Mode” Plant
and Office Lighting
Use of CNG for Bitumen Heating as a substitute
to High Speed Diesel in Hot Mix Plant at Delhi
Agra Road Project
Usage of EB power supply instead of DG for
construction power supply
Installation of Digital gateways at various P&M
assets which enables us to monitor power
consumption and reduce maintenance cost
Installation of Fuel sensors to monitor the fuel
consumption and optimize its usage
Annual energy Savings in Kansbhal Factory,
Odisha is 8.19 Lacs KWH
Replacement of Air Cooled Chiller with Water
Cooled Chiller
(ii) Steps taken by the Company for utilizing
alternate sources of energy:
Shift towards usage of windmill power in the
place of State Electricity Board at Kancheepuram
factory
Installing Solar panels on rooftop
Solar street at ESE campus
Use of solar energy and natural lights in cafeteria
Purchase of Green Power from third party wind
farm to reduce carbon footprint
Solar Panels installed at project sites
Power generation through Solar Roof top PV
installation at campus
Shift towards usage of power generated through
windmill power
Use of high velocity burners in place of low
velocity burners
Implementation of hoods for the pre heating
Conversion of weld edge preparation process
from planning to milling operation
Re-design impeller of industrial blower from
backward curve to airfoil curve
In-house development of remote operated scissor
arm for shifting and aligning the hot plate into
rolling machine
Improvement is NUB design done to reduce weld
deposition
(iii) Capital investment on energy conservation
equipments:
Energy conservation in Air handling units
Replacement of old welding machines with new
machines with inverter technology to reduce no
load loss and overall consumption
Use of 100 kVA UPS for furnace to reduce diesel
consumption of DG set for uninterrupted power
supply
Replacement of existing 400W MH lamps with
137W LED lamps for highbay lighting in HE East
& West shops
Migrating from HPSV to LED light for BOT (Build
Operate Transfer) projects with ESCOs (Energy
Saving Companies) for energy conservation in
Peripheral Lighting
PLC installation in heating process of LSR to have
precise control and saving in NG consumption
Purchase of green power (Hydropower) for HE
East & West
Use of grid supply for LSR to replace DG set
hiring and running cost thereby saving diesel
consumption
Feasibility for infrared heating to be explored and
implemented for heating operation
IOT projects for ESSC, SAW and nozzle welding
process to save energy and reduce cycle time
The measures taken have resulted in savings in cost of
production, power consumption and processing time
at all locations.
[B] TECHNOLOGY ABSORPTION:
(i) Efforts made towards technology absorption:
Introduction of Digital Interfaces to monitor
progress & cost of work through ERP System
Development M20 and M40 structural grades of
concrete with Recycled concrete aggregate (RCA)
66
for residential, commercial and infrastructure
construction
Development of IoT techniques for embankment
structures near sea coast for continuous
monitoring
Re-commissioning of State of art testing and
analysis equipment for rebar, strands, concrete,
soil, rock and asphalt after Chennai floods
In-house developed self-compacting concrete was
used in pile foundations of HEP Chitapur Solar
power project in Karnataka
Development of evaluation and qualification
of physical and mechanical properties of
Embankment materials for SOU project
Implementation of specially designed cement
modified WMM mix in the internal roads of
Apollo Proton Therapy and Cancer Treatment
Hospital Project site which shall help to move
heavy duty medical equipment into the hospital
building
Development of A2O process at the 318
MLD Waste Water Treatment Plant (WWTP)
at Coronation Pillar, New Delhi, wherein the
Nitrogen & Phosphorus content in wastewater is
treated to desirable limits
Installation of Biomethanation of sewage sludge
in the 318 MLD WWTP at Coronation Pillar, New
Delhi which produces biogas used to generate
electricity and run the WWTP facility
Installation of Micro-filtration (MF) system at
Raichur power Plant which is designed to treat
the river water without any conventional pre-
treatment to give filtered water
Implementation of Virtual reality (VR) / Mixed
reality (MR) digital technologies for projects
which will enable the engineers from different
disciplines to view their design as its final product
and visualise the structure in real time scale
Implementation of HTC Vive technology in
projects which creates a virtual reality headset
designed to utilize “room scale” technology
to turn a room into 3D space via sensors, with
the virtual world allowing the user to navigate
naturally
Implementation of Microsoft HoloLens which
embraces virtual reality and augmented reality to
create a mixed reality
In-house development of MIS Dashboard to
monitor project costs, departmental overheads,
inventory and vendor payables
Development of 3D model of components
of ship, in off shore patrol vessels, to have
better clash free interface between design and
production
Adoption of Modular Construction Technology
for the erection of 6mm thick carbon steel
liner panels for IC wall and top dome lining for
Kakrapar Nuclear Power Plant in Gujarat
Designed Bridge builder to erect precast
segments by cantilever construction method
for straight spans and curved spans upto 128m
radius of curvature
Developed segmental bridge launching girder
with hinge mechanism and adopted in metro
construction projects
Implementing BIM at EDRC – Metros which aims
at mapping on a GIS platform, the various aspects
and features of Metro Rail with their associated
information
Launched emergency response mobile
surveillance control and command centre vehicle
in Mumbai, first of its kind in India which is
capable of recording & transmitting live feed to
the police control room
Implemented BIM for road project on pilot basis
for a 5 Km stretch
Utilisation of Digital technology for topographic
surveys such as vehicle based LIDAR survey
Implemented the 2D Grade Control system on
few motor graders in Delhi Agra Road Project
Manufacturing latest technology products in
material handling equipment namely Tandem
Tippler & Side Arm Charger, High Capacity
Stacker cum Reclaimer, Underslung Paddle Feeder,
Drag Plough for Coke Oven, Bin Extractors
Introduced New Product Intensity (NPI) index
which measures the sales of products introduced
in the market in last five years to the total sales in
the financial year
67
Development of various new products in the
power distribution and motor control sector
namely AU range of final distribution products,
sub-main Distribution boards, new ratings in
Omega range of Air Circuit Breakers and Busbar
Trunking systems
Launched submersible pump controllers for
agriculture market and DC contactors in telecom
applications
Launched comprehensive product portfolio to
provide solution for Power Quality Management
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
and development of Pre-Paid Meters, Smart
Meters, Protective Relays and Panel Meters
Developed Smart and Pre-paid meter where each
and every instance in power distribution will be
recorded
Launch MV drives thus completing LV & MV drive
range
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
Introduction of “SMART Comm” solution
Introduction of 67”Hydraulic Tire Curing Press,
750 T Bladder Press and Mixing mill
Introduction of New state-of-the-art Loader
for Off The Road (OTR) Tire Curing Presses and
automatic Mold Height Adjustment for OTR
Presses
Development of newer variants of Power Packs &
Tipper Wet Kit
Development of Paver, Pneumatic Tired Roller &
Skid Steer Loaders
Introduction of 56.5” -2 position PCI for
Domestic order
Introduction of 64” -2 Position PCI with safety
fence
Indigenization of various components for Rubber
Processing Machinery by designing, developing
specifications and adapting to international
conditions
68
Development of cement grouted bituminous
macadam for high speed corridors, expressways,
aprons and ports
Development of NABL accredited testing facility
for geotextiles and geo-synthetics used in sub soil
strengthening
Industrial scale production of stockpile, all
weather cold pot-hole mix for infra project sites
Development of low cement and impermeable
Plastic concrete for Dam structures
Mechanical Studies on light weight concrete
for structural application and specially designed
double blend structural grade
Development of polymer modified repair mortar
for multilevel carparks
Execution of Technology Licensing & Assistance
(TLA) Agreement with Chiyoda Corporation for
Flue Gas Desulphurization Technology
Development of Armored vehicle mobility
simulation capability, Laser based optics
simulation capability, Intelligent Collaborative
Robotics System, Unmanned / Autonomous
Platforms & Systems, Waterjet Propulsion
Systems, Field & Air Defence Gun Systems, Laser
based Beam directing, tracking and pointing
system, Trisonic Wind Tunnel Systems and other
technics in the HED Sector
Introduction of portable flux recycler at welding
point to avoid ovens
Development of EFNARC and RILEM
methodologies in energy absorption of shotcrete
panels.
Triple blend shotcrete mix M40 has been used in
Special projects for tunnels
Optimized concrete mix design solutions were
implemented in PTD–IC
Development of pre-packed concrete for remote
site and inaccessible areas
Development of NABL accredited testing facility
for fineness by Blaine, Alkali Silica aggregates,
Non Destructive Tests on concrete
Development of NABL test facilities for evaluating
sealents used in expansion joints of structures
Mechanical studies on water barrier disc tie rods
Development of test facilities for MIG and
TIG welded specimens for Fatigue and tensile
strength on bronze alloy sculpture specimens
Creep studies on M65 grade self-compacting
concrete
Development of NABL testing facility for
Bituminous Emulsions used in flexible pavement
construction
Development of High volume fly-ash concrete for
mass foundations
Development of lime and fly-ash stabilized mixes
with recycled concrete aggregates for base and
sub-base layers for light, medium and heavy
traffic pavements
Development of high flexural strength PQC with
alternate materials for durable rigid pavements
Development of comprehensive online
geotechnical databank as an effective tool for
designers and contract teams across ICs
Development of standard concrete mixes for cold
weather concreting at sub-zero temperature
Development of Surface Technologies like
Alodine, Chromic acid anodization and Electroless
Nickel Plating to meet International standards
Establishment of Facility & Development of
Painting process to meet International Military
standards with precise thickness and gloss
requirements
In-house Development of Form Rolling process
with combination of Metallic and Non-metallic
Rollers
Development of Manufacturing process of High
precision Gears with our Business partners
Development of precision mechanical &
electronics integration, testing & tuning of Fin
Actuation Systems
Introduction of HIL (Hardware-in-the-loop)
Simulation & Equipment validation - Equipment’s
testing under various environmental & load
conditions
Development of High Wear resistance process
of Hard anodizing with Teflon impregnation for
Aluminium Parts with business partners
In-house Development of Resistance spot welding
of Thin Stainless Steel Sheet metal sections
In-house Process development for manufacturing
of Precision Thin Section Aero Structural parts
Development of Low Hydrogen Embrittlement
Cadmium Plating process of Carbon Steels
Development of Hot Bending Process for
Fabrication of Titanium Sections for HSTDV
program
Development of Micro-electronics assembly &
testing for TGET Fuses
Completed Airworthiness Qualification of
Integrated Life Support System - On-board
Oxygen Generation System for fighter aircrafts
Completed development and qualification of
Oxygen System for Military Helicopters
L&T – HE IC has entered into technology transfer
agreement with a leading Global technology
provider for Titanium Clad equipment
Buildup capability in static and dynamic stability
of amphibious tracked vehicle
Development of plasma welding of Maraging
steel and Titanium
Launch of Automatic Tube and Tubesheet welding
for Urea applications
Development of weld overlay procedures for
super duplex stainless steels, alloys 825 and alloy
C-276
Development of Ultra Narrow gap GTAW process
for closing seams of process plant equipment
Development of Flux-less Arc Spot Welding with
mixed gases for Nuclear export orders
Development of Auto-TIG Overlay on Gasket Face
and Split Ring for heat exchangers
Development of Robotic FCAW of trunnions for
Trans Nuclear projects
Development of Automated High Sagita Nozzle
Welding System
Development of Trisonic Wind Tunnel Systems,
Thermal Management system for high pressure
and high temperature flow environment
69
Development of Underwater Weapon Launch
Systems and Ka Band Feed using additive
manufacturing techniques
Development of Driver Vision Enhancement for
Armoured Vehicles
Development of Railless Helo Traversing Systems
Environment Protection measures introduced
through Process change in bridging system
Painting at Talegaon i.e BLT, Sarvatra, SSBS
and Modular Bridge were changed from Zinc
Chromate primer to Zinc Phosphate primer
Changed the design of pins using stainless steel
material to reduce the rework/rejection at site
due to corrosion of pins in Bridging projects
Development of 3D Printing for design and
development of Micro wave guide component for
Ka band telemetry through Metal 3D printing
Adoption of bend plates and negotiating with
Mills for supply of extended length of plates
for reducing welding in the Tilt beam of TCT-5
production order
Automated Welding process established for 7.5m
long RT quality Aluminum Butt joint
Development of Laser cutting process using Diode
Laser machine for HSLA Steel & Aluminum
Developed in-house SPM for Hinge boring of BLT
In-house development by modification in IGM
Robot, Gantry & Gulco trolley
Development of Hydro-squeezing fixture
development in HDP for riveting operation.
Developed U & Z extrusion cutting, slot milling &
drilling fixtures for HDP
Development of remote controlled motorized
fixture for hot plate handling on rolling machine
Development of internal T-ring (Web to Flange)
welding station using Auto GMAW and laser
based seam tracking system
Process development for long seam welding and
overlay using mechanized system for Coke Drum
repairs
Import substitution for hydrostatic expansion
process of tube to tube-sheet joints in Heat
Exchangers and EO Reactors
Indigenous development of twin head Auto
GMAW station with TAB based wireless control
and seam tracking mechanism for welding of
tube to ring joints in TWC project
Indigenous development of SCADA based system
for Hydro Pressure Test Automation
Development of Military Communication Products
namely network simulation and emulation for
Tactical applications, network Management
System for TCS, user services fall back on TDM
Network, Desk Access Unit, Radio Relay Modules,
manet based Wireless Node points, Radio
Gateway for CNR Radios, legacy system interface
and NEWN system interface for VLF
Development of India’s first indigenous chemical
agent monitoring system in association with
DRDE, Gwalior viz. Portable Chemical Agent
Detector (PCAD) and Fixed Chemical Agent
Detector (FCAD) which can be used by the Army,
Navy, Air Force, and NDMA, Para-military forces,
SPG and other security agencies
Development for Network simulation and
emulation for Battlefield Management System
applications
Indigenously developed RF modules like Up
Converter, Down Converter, High Power
Amplifier, Power Monitor and Switched Filter
Bank Modules
Developed a complete rugged field deployable
Network Interface Unit (NIU) along with its
Technology Partner used for Ethernet to Fiber
Optic Media conversion
Developed man-portable communication
gateway unit for Indian Navy called Interoperable
Communication System FAK which can be
used for joint operations with foreign navy and
humanitarian aid – disaster relief activities
Developed Capabilities in High-end Finite Element
Analysis including advanced FEA, Explicit Dynamic
Simulation and Non-Linear Analysis
Developed capability for CFD simulation in areas
such as two-phase flow analysis for boiling
applications
Development of Technology for Simulation of
Manufacturing processes such as, simulation of
Welding process and it’s application for various
projects such as fabrication of ITER Cryostat
70
vessel and fabrication of various Chemical
Equipment
Development of improved High Temperature Heat
Recovery (HTHR) for Ethylene Production plants
Development of improved design of Feed Water
Heaters for Supercritical Power Plants
Development of Shell & Tube type LNG Vaporizers
for land based LNG Regasification terminals
Development of end to end Sales & Procurement
cycles through Centralized ERP Server
Introduction of advanced features like Click
to Call, Click to Chat on Website, Portal for
Customer interaction
(ii) Benefits derived like product improvement,
cost reduction, product development or import
substitution:
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 101 Patent, 3 Trademark, 4
Design in India and 2 foreign patent applications
and 18 foreign trade mark applications
Expansion of switchgear product range and
offerings to the infrastructure sector
Strategic alignment with IOmniscient (Australian
company) for its video analytics specialty
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
Economical and cost effective piles in solar
projects thus saving time
The use of clean water for producing aggregates
(fine and coarse) drops the price of aggregates by
50% as compared to virgin aggregates use
The recycling process can make the aggregate
crushers self –sufficient
The high flexural strength PQC with alternate
materials reduces the crust thicknesses of
rigid pavements and inturn reduces the overall
construction cost of rigid pavements
The enhancement in NABL accredited testing
facility with geotextile, geosynthetic, bitumen
emulsion, sealants, ASR, fineness by Blaines and
NDT tests will improve the Company’s brand
image and give competitive advantage over its
peers
Development of pre-packed dry concrete is a
ready solution for quick concreting in remote
project sites and it minimizes manual labour
along with improvement in the speed of
construction
The special fatigue and tensile tests on bronze
alloy specimens were the major criteria for
material qualification for prestigious SOU project
The IoT based monitoring system developed for
solar trackers, cooling tower remote units, special
coastal structures will automate critical data
collection and its analysis
Positioning for Futuristic Programs for Indian MoD
under ‘Make’ and ‘IDDM’ category
10% reduction in welding in the Tilt beam of
TCT-5 production order due to adopting bend
plates and extended length of plates pallet
and lower costs due to in-house machining of
sub-assemblies
QRSAM first prototype on-time delivery by taking
constraints under control in-house pallet
Increased self-reliance and savings in Foreign
Exchange in process plant and power plant
equipment sector
71
Improvement in manufacturing processes
resulting in reduction in production cycle time,
cost and rework
(iii) Information regarding technology imported
S.
No.
Technology
Imported
Year of
Import
Status of absorption
& reasons for non-
absorption, if any
It is the first of its kind
to be installed in India
for sewage application.
It operates on VORTEX
Principle where the grit
removal happens by
tangential Centrifugal
force. Grit removal
efficiency is about 95
%. The major advantage
of this system is that
they occupy less area
and thus leads to easy
maintenance.
This is preferred over
the conventional grit
removal system for
its high grit removal
efficiency and
compactness.
(iv) Expenditure incurred on Research &
Development:
Capital
Recurring
Total
Total R&D expenditure as a percentage
of total turnover
` crore
2016-17
53.53
145.98
199.51
0.30%
[C] FOREIGN EXCHANGE EARNINGS AND OUTGO:
Foreign Exchange earned
Foreign Exchange saved / deemed
exports
Total
Foreign Exchange used
` crore
2016-17
16133.05
999.00
17132.05
15588.43
during the last 3 years:
S.
No.
Technology
Imported
Year of
Import
a)
Flue Gas
Desulphurization
2016
b)
UV disinfection
system
2015
2016
c)
Vortex Grit
Removal
in Sewage
Treatment Plant
2015
2016
Status of absorption
& reasons for non-
absorption, if any
Absorption has been
initiated in FY 2016-17.
Its completion is linked
with the completion of
the first project where
L&T Power would install
FGDs.
Absorbed successfully
in the 2 MLD President
estate STP.
Implementing for the
India’s largest gravity
channel UV disinfection
system in 120 MLD
Varanasi STP.
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.
Absorbed successfully
in the 2 MLD STP at
President’s Estate, New
Delhi.
Works for the 5 new
pumping stations of
Greater Colombo
project is in progress.
72
Annexure ‘B’ to the Board 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 crucial 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, Non-Executive Directors and
Independent Directors.
(ii) Executive Management – by the Corporate Management comprising of Group Executive Chairman, the
Deputy Managing Director & President, 4 Executive Directors, 1 Non-Executive Director and 3 Senior Managerial
Personnel.
(iii) Strategy & Operational Management – by the Independent Company Boards of each Independent Company
(IC) (not legal entities) 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.
73
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 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 judgement 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 decided to have Hybrid Holdco Structure. Accordingly, 10
Independent Companies (ICs) were created. During the process of evolving Lakshya 2021, the structure was
reviewed and it was decided to continue with the IC Boards with certain modifications. The modified mandate
of ICs have been implemented/ is under implementation. Needless to mention that the IC structure has enabled
the Company to empower people and achieve substantial growth in their businesses.
Since 1999, developing and implementing five-year strategy plan is a regular process followed by the Company.
This process called Lakshya has helped the Company to achieve its growth aspirations and created value for
all stakeholders. During the year, the strategic plan for the period 2016 – 2021 named Lakshya 2021 was
developed and approved by the Board. Necessary processes and review mechanism have been established to
ensure implementation of the plan.
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, 2017, the Board comprises of the Group Executive Chairman, the Deputy Managing Director
& President, 4 Executive Directors, 3 Non-Executive Directors (including 2 representing financial institutions),
and 11 Independent Directors. The composition of the Board, as on 31st March, 2017, is in conformity with
the provisions of the Companies Act, 2013 and Regulation 17 of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015.
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, 10 meetings were held on April 11, 2016, April 12, 2016, May 25,
2016, May 26, 2016, May 27, 2016, May 28, 2016, July 29, 2016, November 7, 2016, November 22, 2016 and
January 28, 2017.
The Independent Directors met on April 6, 2017 to discuss, interalia, the performance evaluation of the Board,
Committees, Chairman and the individual Directors.
74
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
inclusion of items on the agenda. The Board meets at least once every quarter, inter alia, to review the quarterly
results. The Company also provides Video Conference facility, if required, for participation of the Directors at
the Board/Committee Meetings. 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 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, 2017. 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. 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)!
Ms. Sunita Sharma (Note 1)
Mr. Thomas Mathew T.
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga $
Mr. Narayanan Kumar@
Meetings held during the year are expressed as number of meetings eligible to attend.
Note: 1. Representing equity interest of LIC
GEC
DMD
ED
ED
ED
ED
ID
ID
ID
ID
NED
ID
ID
ID
NED
NED
ID
ID
NED
ID
ID
ID
10
10
10
10
10
10
10
10
10
10
10
10
10
7
2
10
10
10
10
10
8
6
No of Board
Meetings
attended
10
10
10
10
10
10
10
9
7
9
9
9
10
7
2
7
10
10
10
10
7
5
Attendance at
last AGM
YES
YES
YES
YES
YES
YES
YES
YES
NO
YES
NO
YES
YES
NA
NA
NO
YES
YES
YES
YES
YES
YES
2. Representing equity interest of SUUTI
@ appointed as a Director w.e.f. 27.5.2016
* ceased to be a Director w.e.f 1.8.2016
GEC – Group Executive Chairman
ED – Executive Director
ID – Independent Director
1. None of the above Directors are related inter-se.
$ appointed as a Director w.e.f. 25.5.2016
! ceased to be a Director w.e.f 15.5.2016
DMD – Deputy Managing Director & President
NED – Non-Executive 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.
75
As on March 31, 2017, 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
Ms. Sunita Sharma
Mr. Thomas Mathew T.
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga
Mr. Narayanan Kumar
No. of other Company
Directorships
3
3
8
9
1
0
7
3
4
7
2
7
0
6
4
1
1
3
7
8
No. of Committee
Memberships
0
2
7
1
0
0
3
1
5
1
2
2
0
1
3
2
0
3
5
2
No. of Committee
Chairmanships
0
1
0
0
0
0
4
0
2
0
1
5
0
2
0
0
0
0
1
4
Other Company Directorships includes directorships in all entities whose securities are listed and excludes
unlisted private limited companies, foreign companies and Section 8 companies.
The details of Committee Chairmanships / Memberships are disclosed as per 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 -
Annual revenue budgets and capital expenditure plans
Quarterly results and results of operations of ICs and business segments
Financing plans of the Company
Minutes of meeting of Board of Directors, Audit Committee, Nomination & Remuneration Committee,
Stakeholders Relationship Committee and Corporate Social Responsibility Committee
Details of any joint venture, acquisitions of companies or collaboration agreement
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
76
Developments in respect of human resources
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 and 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 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:
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;
Approval of payment to statutory
auditors for any other services rendered
by the statutory auditors;
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;
Reviewing, with the management, the
annual financial statements and the
audit report before submission to the
board for approval, with particular
reference to:
1.
2.
3.
4.
5.
6.
7.
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
Changes, if any, in accounting
policies and practices and reasons
for the same
Major accounting entries involving
estimates based on the exercise of
judgement by management
Significant adjustments made in the
financial statements arising out of
audit findings
Compliance with listing and other
legal requirements relating to
financial statements
Disclosure of any related party
transactions
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;
Reviewing, with the management,
performance of statutory and internal
77
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 and frequency of
internal audit;
Discussion with internal auditors about
any significant findings and follow up
thereon;
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;
Scrutiny of inter-corporate loans and
investments;
Valuation of undertakings or assets of
the Company, wherever it is necessary;
Evaluation of internal financial controls
and risk management systems;
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, 2017 comprised 3 Independent
Directors and 1 Non-Executive Director.
iii) Meetings:
During the year ended March 31, 2017, 9
meetings of the Audit Committee were held
on April 23, 2016, May 13, 2016, May 24,
2016, July 28, 2016, September 28, 2016,
November 7, 2016, November 21, 2016,
January 27, 2017 and February 20, 2017.
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
No. of
Meetings
Attended
No. of
Meetings
during
the year
Mr. M. M. Chitale
Chairman
Mr. M. Damodaran
Member
Mr. Sushobhan Sarker Member
Mr. Bahram Vakil @
Member
Mr. Sanjeev Aga #
Member
9
9
9
4
4
9
9
6
2
4
Meetings held during the year are expressed as number of
meetings eligible to attend.
# appointed as a Member w.e.f. 4.10.2016
@ ceased to be a Member w.e.f 1.8.2016
All the members of the Audit Committee are
financially literate and have accounting or
related financial management expertise.
78
The Whole-time Director & Chief Financial
Officer and Head - Corporate Audit Services
are permanent invitees to the Meetings
of the Audit Committee. The Company
Secretary is the Secretary to the Committee.
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:
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;
Devise a policy on Board diversity;
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);
Administration of Employee Stock
Option Scheme (ESOS).
ii) Composition:
The Committee has been in place since
1999. As at March 31, 2017, the Committee
comprised of 3 Independent Directors and
the Group Executive Chairman.
iii) Meetings:
During the year ended March 31, 2017, 6
meetings of the Nomination & Remuneration
Committee were held on April 12, 2016,
May 19, 2016, May 28, 2016, July 29, 2016,
November 22, 2016 and January 28, 2017.
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
Chairman
Mr. A. M. Naik
Member
Mr. Adil Zainulbhai
Member
Mr. Thomas Mathew T. Member
6
6
6
6
6
6
5
6
Meetings held during the year are expressed as number of
meetings eligible to attend.
iv) Board Membership Criteria:
While screening, selecting and
recommending to the Board new members,
the Committee 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
in and contribution to the activities of the
Board by the Director.
The Independent Directors comply with the
definition of Independent Directors as given
79
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 http://investors.
larsentoubro.com/corporategovernance.aspx.
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
80
commission & sitting fees. The Company was
paying 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. Since
November 22, 2016, the sitting fees were
revised to ` 75,000 for Board meetings
and ` 40,000 for Audit Committee and
Nomination and Remuneration Committee
meetings during the year. The sitting fees
for the other committees remain the same.
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 http://investors.
larsentoubro.com/Listing-Compliance.aspx.
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.
Members are requested to refer to page 62
of this Annual Report.
vi) Details of remuneration paid / payable
to Directors for the year ended March 31,
2017:
(a) Executive Directors:
The details of remuneration paid /
payable to the Executive Directors is as
follows:
Names
Salary
Perquisites Retirement
Mr. A. M. Naik
Mr. S. N. Subrahmanyan
Mr. R. Shankar Raman
Mr. Shailendra N. Roy
Mr. D. K. Sen
Mr. M. V. Satish
3.36
1.73
1.41
1.29
1.01
1.01
19.27*
7.18
3.15
2.98
0.37
0.63
Benefits
38.04**
3.51
2.38
1.93
1.57
1.44
` crore
Commission
18.24
11.29
7.41
5.84
4.82
4.32
The above amounts also include perquisite on exercise of ESOPs
and tax on ESOPs borne by employer
* Perquisites include perquisite value related to employee stock
options exercised during the year in respect of stock options
granted over the past several years by a subsidiary company -
` 19.01 crore.
** Retirement Benefits include encashment of accumulated past
service leave ` 32.21 crore
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
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 *
Sitting
Fees for
Board
Meeting
0.055
0.050
0.040
0.050
0.050
0.048
0.055
0.035
Sitting
Fees for
Committee
Meeting
0.026
0.017
0.026
0.010
0.017
0.014
–
0.005
Commission
` crore
Total
0.380 0.461
0.495 0.562
0.339 0.405
0.322 0.382
0.223# 0.290
0.342 0.404
0.150 0.205
0.165 0.205
Names
Sitting
Fees for
Board
Meeting
Mr. Swapan Dasgupta% 0.010
0.035
Ms. Sunita Sharma
0.055
Mr. Thomas Mathew T.
0.055
Mr. Ajay Shankar
NIL
Mr. Subramanian Sarma
0.055
Ms. Naina Lal Kidwai
0.040
Mr. Sanjeev Aga $
0.028
Mr. Narayanan Kumar@
Sitting
Fees for
Committee
Meeting
–
0.003
0.017
0.010
NIL
–
0.013
–
Commission
` crore
Total
0.050# 0.060
0.108# 0.146
0.310 0.382
0.220 0.285
NIL
0.150 0.205
0.191 0.244
0.104 0.132
NIL
$ appointed as a Director w.e.f. 25.5.2016
@ appointed as a Director w.e.f. 27.5.2016
* ceased to be a Director w.e.f. 1.8.2016
% ceased to be a Director w.e.f. 15.5.2016
# Payable to respective Institutions they represent.
Details of shares and convertible
instruments held by the Independent
Directors / Non-Executive Directors as on
March 31, 2017 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
Ms. Sunita Sharma *
Mr. Thomas Mathew T.
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga
Mr. Narayanan Kumar
No. of Shares held
1629
750
150
885
150
100
200
100
100
100
21100
100
3000
1000
* held jointly with the Institution they represent.
3) Stakeholders’ Relationship Committee:
i) Terms of reference:
The terms of reference of the Stakeholders’
Relationship Committee are as follows:
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
81
be referred to it by the Share Transfer
Committee.
ii) Composition:
As on March 31, 2017 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, 2017, 4
meetings of the Stakeholders’ Relationship
Committee were held on May 25, 2016, July
29, 2016, November 22, 2016 and January
28, 2017.
The attendance of Members at the Meetings
was as follows-
Name
Status
No. of
Meetings
Attended
No. of
Meetings
during
the year
4
4
4
Chairperson
Ms. Sunita Sharma
Member
Mr. Ajay Shankar
Member
Mr. Shailendra Roy
Meetings held during the year are expressed as number of
meetings eligible to attend.
1
4
4
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.
Particulars
Opening
Balance
Received Resolved Pending*
* Investor queries shown outstanding as on
March 31, 2017 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 41
meetings during the year and approved the
transfer of shares lodged with the Company.
4) Corporate Social Responsibility Committee:
i) Terms of reference:
The terms of reference of the CSR
Committee are as follows:
(a)
(b)
(c)
formulate and recommend to the Board,
a Corporate Social Responsibility Policy
which shall indicate the activities to be
undertaken by the Company;
recommend the amount of expenditure
to be incurred on the activities referred
to in clause (a); and
monitor the Corporate Social
Responsibility Policy of the Company
from time to time.
ii) Composition:
As on March 31, 2017 the CSR Committee
comprised of 1 Independent Director and 2
Executive Directors.
iii) Meetings:
During the year ended March 31, 2017,
4 meetings of the CSR Committee were
held on July 19, 2016, August 11, 2016,
November 17, 2016 and March 14, 2017.
The attendace of Members at the Meetings
was as follows:
Complaints:
SEBI / Stock
Exchange
Shareholder
Queries:
Dividend
Related
Transmission /
Transfer
Demat / Remat
2
60
58
4
Name
Status
No. of
Meetings
during
the year
No. of
Meetings
Attended
441
6988
6943
486
3
0
2055
1987
347
320
71
27
Mr. Vikram Singh Mehta
Chairman
Mr. R. Shankar Raman
Mr. D. K. Sen
Member
Member
4
4
4
4
4
4
Meetings held during the year are expressed as number of
meetings eligible to attend.
82
G. OTHER INFORMATION
e) Statutory Auditors:
a) Directors’ Familiarisation Programme:
Please refer to Page 63 of the Board Report.
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 http://investors.larsentoubro.
com/Listing-Compliance.aspx.
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 76 and 77
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 60 of the Board Report.
d) Vigil Mechanism / Whistle-Blower Policy :
Please refer to Pages 62 and 63 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.larsentoubro.
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 29, 2017
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
2015-2016
August 26, 2016
3.00 p.m.
2014-2015
September 9, 2015
3.00 p.m.
2013-2014
August 22, 2014
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 August 26,
2016:
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.
To approve raising of debentures upto
` 6000 crore.
Annual General Meeting held on September 9,
2015:
To approve raising of capital through QIP’s
by issue of shares / convertible debentures
83
/ securities upto an amount of USD 600
million or ` 3600 crore.
To approve raising of debentures upto `
6000 crore.
Annual General Meeting held on August 22,
2014:
No special resolutions were listed in the
agenda for the meeting.
A meeting of the equity shareholders of the
Company was convened on March 14, 2017
as per the directions of National Company Law
Tribunal at Mumbai to approve the Scheme of
Arrangement between the Company and L&T
Valves Limited and their respective shareholders
and creditors.
h) Postal Ballot:
During the year, no matters were transacted
through postal ballot.
Approval of the Members has been sought vide
Postal Ballot Notice dated May 29, 2017, under
Section 110 of the Act to issue Bonus Shares in
the ratio 1:2 (that is 1 (One) Bonus Equity Share
of ` 2/- for every 2 (Two) fully paid-up Equity
Shares of ` 2/- each held) by capitalisation of its
Reserves.
The E-voting facility will also be made
available to the Members. The Board of
Directors of the Company, appointed Mr. S.
N. Ananthasubramanian, Practicing Company
Secretary, (M. No: FCS 4206) and failing him Ms.
Aparna Gadgil, Practicing Company Secretary
(M.No: ACS 8430), as Scrutinizer for conducting
the Postal Ballot in a fair and transparent manner.
The results of the Postal Ballot will be announced
on July 5, 2017 at the Registered Office of the
Company as per the Scrutinizer’s Report.
i) Disclosures:
1. During the year, there were no transactions
of material nature with the Directors or the
Management or relatives or the subsidiaries
that had potential conflict with the interests
of the Company.
2. Details of all related party transactions form
a part of the accounts as required under
IND AS 24 and the same is given in Note 51
forming part of the financial statements.
3. The Company has followed all relevant
Accounting Standards notified by the
Companies (Accounting Standards) Rules,
84
2006/ Companies (Indian Accounting
Standards) Rules, 2015 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 http://investors.larsentoubro.com/
Announcements.aspx.
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 http://investors.
larsentoubro.com/Listing-Compliance.aspx.
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 225 to 227 of this Annual
Report.
j) 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.
Website
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
and Annual
General
Meeting
Annual Report is circulated to all the
members and all others like auditors,
equity analysts, etc. In order to enable
a larger participation of shareholders
for the Annual General Meeting, the
Company provided Webinar facility
of its 71st Annual General Meeting
in co-ordination with NSDL. The
Company suitably responded to the
queries raised by the shareholders
through the webinar.
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
lying with it from any public issue. However certain
shares resulting out of the bonus shares issued by
the Company are unclaimed by the shareholders. As
required under Regulation 39(4) of the SEBI (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.
All corporate benefits on such shares viz. bonus
shares, etc. shall be transferred in accordance with the
provisions of Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer, and Refund)
Rules, 2016 (IEPF Rules) read with Section 124(6) of
the Companies Act, 2013. The eligible shareholders
are requested to note the same and take action for
claiming 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 Tuesday, August 22, 2017 at
St. Andrews Auditorium, St. Dominic Road,
Bandra (West), Mumbai – 400050 at 3.00 p.m.
b) Financial calendar:
1.
2.
3.
4.
5.
6.
7.
May 29, 2017
Annual Results of
2016-17
Mailing of Annual
Reports
First Quarter Results During the last week of
Third week of July, 2017
July, 2017 *
August 22, 2017
Annual General
Meeting
Payment of Dividend August 24, 2017
Second Quarter
results
Third Quarter results During last week of
During first week of
November, 2017*
January, 2018 *
* Tentative
c) Book Closure:
The dates of Book Closure are from Wednesday,
August 16, 2017 to Tuesday, August 22, 2017
(both days inclusive) to determine the members
entitled to the dividend for financial year
2016-2017.
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 2017-2018 to the above Stock Exchanges.
f) Custodial Fees to Depositories:
The Company has paid custodial fees for the
year 2017-2018 to National Securities Depository
Limited (NSDL) and Central Depository Services
(India) Limited (CDSL).
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)
National Stock Exchange of India
Limited (NSE)
: Scrip Code - 500510
: Scrip Code - LT
ISIN
Reuters RIC
:
:
INE018A01030
LART.BO
Luxembourg Exchange Stock Code
: 005428157
London Exchange Stock Code
:
LTOD
85
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.
Month
L&T NSE Price (`)
NIFTY
October
1520.00
1431.30
1475.25
8806.95
8506.15
8625.70
h) Stock market data for the year 2016-2017:
November
1481.05
1295.10
1382.75
8598.45
7916.40
8224.50
Month
2016
April
May
June
July
L&T BSE Price (`)
High
Low Month
Close
BSE SENSEX
High
Low Month
Close
1288.00
1177.00
1253.55 26100.54 24523.20 25606.62
December
1402.50
1302.50
1349.10
8274.95
7893.80
8185.80
2017
January
1470.25
1349.15
1446.25
8672.70
8223.70
8561.30
1495.00
1224.00
1474.30
26837.20 25057.93 26667.96
February
1511.00
1446.30
1469.20
8982.15
8685.80
8879.60
1515.00
1401.40
1496.20
27105.41 25911.33 26999.72
1615.00
1499.00
1558.00
28240.20 27034.14 28051.86
March
1593.65
1460.00
1574.90
9218.40
8891.95
9173.75
August
1584.95
1420.00
1513.85
28532.25 27627.97 28452.17
September 1545.75
1412.55
1431.65
29077.28 27716.78 27865.96
October
1520.00
1432.20
1476.65
28477.65 27488.30 27930.21
November 1480.15
1295.30
1382.55
28029.80 25717.93 26652.81
December 1401.00
1302.00
1349.40
26803.76 25753.74 26626.46
2017
January
1469.70
1350.00
1444.75
27980.39 26447.06 27655.96
February
1510.00
1444.75
1470.25
29065.31 27590.10 28743.32
March
1593.00
1460.25
1577.60
29824.62 28716.21 29620.50
2000
1900
1800
1700
)
`
(
1600
E
S
N
-
T
&
L
1500
1400
1300
1200
1100
1000
Stock Performance
L&T NSE (`) NSE NIFTY
Apr
16
May
16
Jun
16
Jul
16
Oct
16
Sep
16
Nov
Aug
16
16
Daily Closing Price
Dec
16
Jan
17
Feb
17
Mar
17
9500
9000
8500
8000
7500
7000
6500
6000
Y
T
F
I
N
E
S
N
)
`
(
E
S
B
-
T
&
L
2000
1900
1800
1700
1600
1500
1400
1300
1200
1100
1000
900
800
700
600
Stock Performance
L&T BSE (`) BSE SENSEX
Apr
16
May
16
Jun
16
Jul
16
Oct
16
Sep
16
Nov
Aug
16
16
Daily Closing Price
Dec
16
Jan
17
Feb
17
Mar
17
32000
31000
30000
29000
28000
27000
26000
25000
24000
23000
22000
21000
X
E
S
N
E
S
E
S
B
Month
L&T NSE Price (`)
NIFTY
2016
April
May
June
July
High
Low Month
Close
High
Low Month
Close
1288.75
1177.80
1254.60
7992.00
7516.85
7849.80
1496.45
1223.30
1473.55
8213.60
7678.35
8160.10
1517.00
1401.00
1496.50
8308.15
7927.05
8287.75
1615.00
1500.70
1558.85
8674.70
8287.55
8638.50
August
1586.00
1419.20
1512.95
8819.20
8540.05
8786.20
September
1545.95
1411.50
1433.15
8968.70
8555.20
8611.15
86
i) Registrar and Share Transfer Agents (RTA):
Karvy Computershare Pvt. Ltd.
Unit: Larsen & Toubro Limited
Karvy Selenium Tower B, Plot number 31 & 32,
Financial District, Gachibowli, Nankramguda,
Hyderabad, Telangana - 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.
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,
2017:
The number of shares held in dematerialized and
physical mode is as under:
No. of Shares
Shareholders
Shareholding
Number
%
Number
Upto 500
501 – 1000
1001 – 2000
2001 – 3000
3001 – 4000
4001 – 5000
5001 – 10000
10001 & Above
8,52,118
92.26
38,971
17,959
5,560
2,351
1,505
2,690
2,474
4.22
1.94
0.60
0.25
0.16
0.29
0.27
6,92,23,095
2,76,73,608
2,53,31,424
1,38,08,145
82,06,168
67,96,977
1,87,50,380
%
7.42
2.97
2.72
1.48
0.88
0.73
2.01
76,31,76,006
81.80
TOTAL
9,23,628 100.00 93,29,65,803
100.00
l) Categories of Shareholders is as under:
Category
31.03.2017
31.03.2016
No. of
Shares
%
No. of
Shares
%
Financial Institutions
25,04,43,440
26.84 27,55,72,334
29.58
Foreign Institutional
Investors
Shares underlying
GDRs
16,11,32,756
17.27 15,13,62,292
16.25
1,76,21,579
1.89
1,92,13,684
2.06
Mutual Funds
10,32,87,263
11.07
7,67,74,808
Bodies Corporate
6,43,39,638
Directors & Relatives
15,09,274
6.90
0.16
6,50,66,088
14,49,515
8.24
6.99
0.16
L&T Employees
Welfare Foundation
11,47,52,281
12.30 11,47,52,281
12.32
General Public
21,98,79,572
23.57 22,72,87,843
24.40
TOTAL
93,29,65,803 100.00 93,14,78,845 100.00
Categories of Shareholders
as on March 31, 2017
General Public
23.57%
L&T Employees
Welfare
Foundation
12.30%
Directors & Relatives
0.16%
Bodies Corporate
6.90%
Financial
Institutions
26.84%
Foreign Institutional
Investors
17.27%
Mutual Funds
11.07%
Shares underlying GDRs
1.89%
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.
No. of shares
% of
total
capital
issued
94.15
3.85
2.00
93,29,65,803 100.00
87,83,82,994
3,58,86,237
1,86,96,572
Held in dematerialized form in NSDL
Held in dematerialized form in CDSL
Physical
Total
Shares held in Demat / Physical Form
as on March 31, 2017
CDSL
3,58,86,237
3.85%
Physical
1,86,96,572
2.00%
NSDL
87,83,82,994
94.15%
n)
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,
2017:
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, 2017
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).
87
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, Mysore, 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.
The presence of these offices appear on pages 12
and 13 of this Annual Report.
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:
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
Email: 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
88
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 (SEBI Insider Trading
Regulations), 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.
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 http://investors.larsentoubro.
com/Listing-Compliance.aspx.
u)
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 almost all 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
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.
x) Secretarial Audit as per Companies Act, 2013:
Pursuant to the provisions of section
204(1) of the Companies Act, 2013, S.
N. Ananthasubramanian & Co., Company
Secretaries, conducts the secretarial audit of the
compliance of applicable statutory provisions and
the adherence of good corporate practices by the
Company.
89
To the Board of Directors of Larsen & Toubro Limited
Dear Sirs,
Sub: CEO / CFO Certificate
{Issue 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, 2017 and that to the best of our knowledge and belief, we state that;
(a)
(i) These statements do not contain any materially untrue statement or omit any material fact or contain
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 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 propose to be taken for rectifying these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee:
(i) that there were no significant changes in internal controls over financial reporting during the year; and
(ii) the significant changes in accounting policies made during the year pursuant to adoption of accounting
standards prescribed vide Companies (indian Accounting Standards) Rules, 2015 and
(iii) 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 29, 2017
90
Independent Auditors’ certificate on Employee Stock Option Schemes
1. We have examined Employees Stock Option Schemes (“the Schemes”) of Larsen & Toubro Limited (“the Company”),
books of accounts and other relevant records to determine whether the Schemes are in accordance with the rules
specified under the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (as
amended) (“the Regulations”) and in accordance with the resolutions passed in the general meetings held on 26
August 1999, 22 August 2003 and 25 August 2006 (“the General Meetings).
Management’s responsibility
2. Management is responsible for maintaining the information and documents, which are required to be kept and
maintained under the relevant laws and regulations and implementing the Schemes in accordance with the
Regulations and the resolutions passed at the General Meetings.
Auditors’ responsibility
3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company
for ensuring implementation of the Schemes in accordance with the Regulations and the resolutions passed at the
General Meetings. It is neither audit nor expression of opinion on the financial statements of the Company.
4. We have examined the books of accounts and other relevant records and documents maintained by the Company for
the purpose of providing reasonable assurance on the implementation of the Schemes by the Company in accordance
with the Regulations and the resolutions passed at the General Meetings.
5. We have carried out an examination of the schemes, books of accounts and other relevant records of the Company
in accordance with the Guidance Note on Reports or Certificates for Special Purpose (Revised 2016) issued by the
Institute of Chartered Accountants of India (“the ICAI”), which requires that we comply with the ethical requirements
of the Code of Ethics issued by the ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and
related services engagements.
Opinion
7. Based on our examination of the relevant records and according to the information and explanation provided to
us and representations provided by management, we certify that the Company has implemented the Schemes in
accordance with the Regulations and the resolutions passed at the General Meetings.
Restriction on use
8. The certificate is issued solely for the purpose of complying with the Regulations and may not be suitable for any
other purpose.
Mumbai, 29 May 2017
SHARP & TANNAN
Chartered Accountants
Firm’s Registration No.109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No.038332
91
Independent Auditors’ certificate on corporate governance
To the members of Larsen & Toubro Limited
1.
We have examined the compliance of conditions of corporate governance by Larsen & Toubro Limited (“the
Company”), for the year ended on 31 March 2017, as stipulated in regulation 17 to 27 and clause (b) to (i) of
regulation 46(2) and paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).
Management’s responsibility
2.
The compliance of conditions of corporate governance is the responsibility of management. This responsibility
includes the design, implementation and maintenance of internal control and procedures to ensure compliance with
the conditions of corporate governance stipulated in the SEBI Listing Regulations.
Auditors’ responsibility
3.
4.
5.
Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for
ensuring the compliance of the conditions of the corporate governance. It is neither audit nor expression of opinion
on the financial statements of the Company.
We have examined the books of accounts and other relevant records and documents maintained by the Company
for the purpose of providing reasonable assurance on the compliance with corporate governance requirements by
the Company.
We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note
on Certification of Corporate Governance issued by the Institute of Chartered Accountants of India (“the ICAI”), the
Standards on Auditing specified under Section 143(10) of the Companies Act, 2013, in so far as applicable for the
purpose of this certificate and as per the Guidance Note on Reports or Certificates for Special Purpose issued by the
ICAI which requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
6.
We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and
Related Services Engagements.
Opinion
7.
Based on our examination of the relevant records and according to the information and explanation provided to us
and representations provided by management, we certify that the Company has complied with the conditions of
corporate governance as specified in regulation 17 to 27, clause (b) to (i) of regulation 46(2) and paragraphs C, D
and E of Schedule V of the SEBI Listing Regulations, as applicable during the year ended 31 March 2017.
8.
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.
Restriction on use
9.
The certificate is issued solely for the purpose of complying with the aforesaid SEBI Listing Regulations and may not
be suitable for any other purpose.
SHARP AND TANNAN
Chartered Accountants
Firm’s Registration No. 109982W
by the hand of
FIRDOSH D. BUCHIA
Partner
Membership No. 038332
Mumbai, 29 May 2017
92
Annexure ‘C’ to the Board Report
CSR ACTIVITIES FOR 2016-17
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 CSR projects of the Company are focused on
communities that are disadvantaged, vulnerable
and marginalized. We strive to contribute positively
to improve their standard of living; through our
interventions in water & sanitation, heath, education
and skill development.
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.
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 website of the Company.
Please see the link http://investors.larsentoubro.com/
Listing-Compliance.aspx.
2. Composition of the CSR Committee.
The CSR Committee of the Board 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 ` 4948.63 crore.
4.
Prescribed CSR expenditure (two percent of the
amount as in item 3 above).
The Company was required to spend an amount of
` 98.97 crore as CSR expenditure during the financial
year 2016-17.
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 ` 98.97
crore during the financial year 2016-17. As
against this mandate, the Company spent
` 100.77 crore towards various activities for
the benefit of the community. This exceeds the
required spend by ` 1.8 crore. The CSR spend for
FY 2016-17 is 2.04% of the average net profit
under Section 135 of the Companies Act, 2013.
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
93
6.
Reasons for not spending the amount during the
financial year.
NA
7. CSR Committee Responsibility Statement:
The CSR Committee hereby affirms that:
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;
The Company has constituted a mechanism to
monitor and report on the progress of the CSR
programs;
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
& President
DIN: 02255382
Chairman – CSR
Committee
DIN: 00041197
94
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, innovative
teaching methodology ,
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 infrastructure
support for education
(drinking water and sanitation
facilities,renovation of
classrooms, water proofing
of school buildings,
providing furniture and light
fittings, e-learning facilities,
upgradation of libraries,
playground development)
Education
Education
Providing educational aids to
children- books,
stationery, sports equipments,
uniforms, school bags, shoes,
wollen clothes, raincoats etc
Amount
outlay
(budget)
project or
Program-
wise (` In
Lakh)
Overhead
(` In
Lakh)
Direct
expenditure
on projects
or programs
(` In Lakh)
Cumulative
expenditure
upto to the
reporting
period (` In
Lakh)
Amount spent:
direct or through
implementing
agency*
721.86
706.69
48.43
755.12
Implementing
agencies
Sector in
which the
project is
covered
Education
Projects or Programs
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Punjab & Haryana (Chandigarh,
Faridabad), Gujarat (Surat,
Vadodara, Ahmedabad), Karnataka
(Bangalore, Mysore), Maharashtra
(Pune, Mumbai), New Delhi,
Orissa (Kansbhal, Sundargarh),
Tamil Nadu (Coimbatore,
Kancheepuram, Chennai), Uttar
Pradesh (Lucknow), West Bengal
(Kolkata)
Education
Maharashtra (Mumbai), Orissa
(Raygada), Uttar Pradesh
(Bulandshahr)
167.27
158.33
15.89
174.22
Implementing
agencies
Telangana (Ranga Reddy,
Medak), Andhra Pradesh
(Visakahapatnam), Assam
(Guwahati), Bihar (Patna),
Gujarat (Surat, Jamnagar,
Surendranagar), Punjab &
Haryana (Faridabad, Chandigarh),
Jharkhand (East Singhbhum),
Karnataka (Bangalore), Kerala
(Kochi), Madhya Pradesh (Bhopal,
Khandwa), Maharashtra (Mumbai,
Ahmednagar, Nagpur, Talegaon),
New Delhi, Orissa (Rourkela,
Sundargarh, Bhubaneshwar,
Sambalpur, Cuttack), Rajasthan
(Jaipur,Barmer, Pali), Tamil Nadu
(Coimbatore, Chennai, Cadalore,
Dindugul, Pudukottai),Uttar
Pradesh (Lucknow, Allahabad,
Chandoli, Rampur), West Bengal
(Kolkata, Darjeeling, Murshidabad,
North 24 parganas, South 24
parganas)
Andra Pradesh (Hyderabad),
Gujarat (Vadodara), Karnataka
(Bangalore), Madhya Pradesh
(Khargone), Maharashtra (Nagpur,
Talegaon), Orissa (Sundargarh),
Rajasthan (Pali), Tamil Nadu
(Coimbatore, Chennai), Uttar
Pradesh (Lucknow) Chattisgarh
(Janjgir Champa), West Bengal
(Kolkata)
504.36
467.52
19.52
487.04 Direct
28.65
26.35
1.46
27.81 Direct
95
S. No. CSR Project or activity identified
5
6
7
Community Health Centres
(running multi-specialty
centers offering diagnostic
services including family
planning, gynecological,
pediatric, immunization, chest
& TB, ophthalmic consultation,
dialysis services, HIV/
AIDS awareness, detection,
treatment, counseling services
to the community)
Health Camps (general, eye,
dental, vaccinations) and
health awareness
Community Health Initiatives
(Support for preventive ,
diagnostic and curative
services, awareness & camps)
Health
Health
8
Blood donation camps
Health
9
Infrastructure support to
medical centres
Health
Sector in
which the
project is
covered
Projects or Programs
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Health
Maharashtra (Ahmednagar,
Mumbai, Thane), Gujarat (Surat)
Amount
outlay
(budget)
project or
Program-
wise (` In
Lakh)
Overhead
(` In
Lakh)
Direct
expenditure
on projects
or programs
(` In Lakh)
Cumulative
expenditure
upto to the
reporting
period (` In
Lakh)
Amount spent:
direct or through
implementing
agency*
452.37
410.16
31.82
441.98 Direct
6.50
8.04
0.49
8.53 Direct
220.68
204.67
17.75
222.42
Implementing
agencies
3.60
3.35
0.22
3.57
Implementing
agencies
981.00
975.68
75.00
1,050.68 Direct
Jharkhand (Jamshedpur), Madhya
Pradesh (Bhopal), Maharashtra
(Nagpur), New Delhi, Orissa
(Bhubaneswar), West Bengal
(Kolkata)
Andhra Pradesh
(Vishakhapatnam), Gujarat (Surat,
Ranoli, Vadodara), Haryana
(Faridabad), Jharkhand (Ranchi),
Karnataka (Bangalore), Madhya
Pradesh (Singrauli), Maharashtra
(Mumbai, Ahmednagar,
Talegaon), Orissa (Kansbahal,
Rayagada), Rajasthan (Chhabra,
Banswara, Nagaur), Tamil Nadu
(Kancheepuram, Chennai), West
Bengal (Kolkata)
Andhra Pradesh (Hyderabad),
Gujarat (Vadodara), Jharkhand
(Jamshedpur, Ranchi), Kerala
(Kochi), Madhya Pradesh (Bhopal),
Maharashtra (Nagpur, Pune),
Rajasthan (Jaipur, Banswara,
Nagur) Tamil Nadu (Coimbatore,
Chennai), Uttar Pradesh
(Lucknow), West Bengal (Kolkata)
Telangana (Ranga Reddy),
Gujrat (Karamsad), Haryana
(Faridabad), Karnataka (Kudgi),
West Bengal (Kolkata), Madhya
Pradesh (Malwa, Jabalpur), Tamil
Nadu (Chennai), Uttarakhand
(Rudraprayag), West Bengal
(Kolkata)
10
Construction Skill Training
Institute - CSTI
Skill Building Andhra Pradesh (Hyderabad),
3,536.90
3,510.61
60.94
3,571.55 Direct
Gujarat (Ahmedabad),
Maharashtra (Panvel), Karnataka
(Bangalore), Orissa (Cuttack),
Tamil Nadu (Kanchipuram,
Pulicat), Delhi (Pilkhuwa), West
Bengal (Srirampore)
11
Computer training for youth
Skill Building Gujarat (Surat)
47.00
46.89
1.14
48.03
Implementing
agencies
96
S. No. CSR Project or activity identified
Sector in
which the
project is
covered
Projects or Programs
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Amount
outlay
(budget)
project or
Program-
wise (` In
Lakh)
Overhead
(` In
Lakh)
Direct
expenditure
on projects
or programs
(` In Lakh)
Cumulative
expenditure
upto to the
reporting
period (` In
Lakh)
Amount spent:
direct or through
implementing
agency*
12
Vocational Training
Skill Building Gujarat (Vadodara), Madhya
137.95
128.13
15.53
143.66
Pradesh (Malwa), Maharashtra
(Mumbai), Rajasthan (Chhabra),
Tamil Nadu (Coimbatore,
Chennai), Uttar Pradesh
(Lucknow)
Skill Building Orissa (Raygada), Rajasthan
17.89
16.33
1.59
17.92
43.09
43.74
3.69
47.43
Implementing
agencies
Implementing
agencies
Implementing
agencies
13
14
15
Women empowerment
through vocational training
Skill building for differently
abled
Persons with
disabilities
Basic infrastructure support in
the community (Water, Health,
Sanitation, roads etc.)
Community
Development
16
Integrated Community
Development Programme
Community
Development
(Jaipur), Tamil Nadu (Chennai),
West Bengal (Kolkata)
Andhra Pradesh
(Vishakhapatnam), Gujarat
(Surat), Madhya Pradesh (Bhopal),
Maharashtra (Nagpur, Pune), New
Delhi, Orissa (Bhubaneswar), Tamil
Nadu (Coimbatore, Chennai), West
Bengal (Kolkata)
Gujarat (Surat), Jharkhand
(Bokaro, Jamshedpur, Ranchi),
Madhya Pradesh (Khargone),
Maharashtra (Thane, Talegaon),
Orissa (Kansbhal, Balangir),
Rajasthan (Jodhpur, Barmer), Uttar
Pradesh (Lucknow), Uttarakhand
(Rudra Prayag)
Maharashtra (Ahmednagar),
Rajasthan (Rajsamand, Udaipur),
Tamil Nadu (Coimbatore)
937.49
924.88
48.45
973.33 Direct
1,329.71
1,115.70
86.70
1,202.40
Implementing
agencies
17
Greening of public spaces
Environment Maharashtra (Mumbai, Nasik,
638.54
596.37
55.07
651.44 Direct
18
Tree plantation and
environment protection
Ahmednagar, Talegaon), Gujarat
(Vadodara), Tamil nadu (Chennai)
Environment Andhra Pradesh (Hyderabad,
42.70
42.62
1.59
44.21 Direct
Vishakhapatnam), Haryana
(Chandigarh), Gujarat
(Surat, Vadodara, Jamnagar,
Surendranagar), Jharkhand
(Jamshedpur, Ranchi), Kerla
(Kochi), Madhya Pradesh (Bhopal),
Maharashtra (Talegaon), New
Delhi, Orissa (Rourkela, Cuttack,
Sundergarh, Salepur), Rajasthan
(Naguar, Jaipur, Banswara,
Jaisalmer ), Tamil Nadu (Chennai,
Cuddalore), Uttar Pradesh
(Lucknow)
19
Awareness
programmes- environment,
energy conservation,road
safety
Environment Maharashtra (Nagpur,
Ahmednagar), Andhra
Pradesh (Vishakhapatnam),
Gujarat (Vadodara), Rajasthan
(Jhunjhunun)
10.63
8.08
0.54
8.62
Implementing
agencies
97
S. No. CSR Project or activity identified
Sector in
which the
project is
covered
Projects or Programs
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
20
Employee led community
initiatives
Employee
Volunteering
Andhra Pradesh (Hyderabad,
Vishakhapatnam), Maharashtra
(Mumbai, Pune, Ahmednagar,
Nagpur) Gujarat (Surat, Vadodara),
Orrisa (Sundergarh), Karnataka
(Bangalore), Tamil Nadu
(Chennai), West Bengal (Kolkata),
Jharkhand (Jamshedpur)
Total
Amount
outlay
(budget)
project or
Program-
wise (` In
Lakh)
Overhead
(` In
Lakh)
Direct
expenditure
on projects
or programs
(` In Lakh)
Cumulative
expenditure
upto to the
reporting
period (` In
Lakh)
Amount spent:
direct or through
implementing
agency*
193.81
182.86
14.18
197.04 Direct
10,022.00
9,577.00
500.00
10,077.00
Key Implementing Agencies
Arpan Seva Sansthan , Seva Mandir, Watershed Organisation Trust , National Agro Foundation, Pratham Education Foundation, Save the Children , NavNirmiti
Eduquality, Angel Xpress Foundation , Children Toy Foundation ,Prayas Trust , St Jude India Childcare Centre, Swami Vivekananda Rural Development Society ,
Balamandir Kamraj Trust , Environmentalist Foundation of India ,Deaf enabled foundation of India , Tanker foundation ,Swami Vivekananda Youth Movement, Sankara
Nethralaya Medical Research Foundation , Deendayal Foundation , Womens India Association ( Adyar Cancer Institute), Charutar Arogya Mandal.
98
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 2016-17, the percentage increase in remuneration of each Director & Company
Secretary during the financial year 2016-17:
Name of the Director/KMP
Designation
2016-17
Total
Remuneration
78.91~
23.71
14.35
12.04
7.77
7.40
Ratio of remuneration
of director to the
median remuneration
$
1101.12
330.85
200.32
168.00
108.36
103.23
` crore
Percentage increase
in Remuneration
19.29
7.17
4.83
19.80
@
@
A. M. Naik
S. N. Subrahmanyan
R. Shankar Raman
Shailendra Roy
D. K. Sen
M. V. Satish
Group Executive Chairman
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
Independent Director
Non-Executive Director
Independent Director
Nominee of Life Insurance Corporation of India
Independent Director
Independent Director
Non-Executive Director
Independent Director
Company Secretary
0.46
0.56
0.41
0.38
0.29
0.40
0.21
0.13
0.21
0.06
0.24
0.15
0.38
0.29
NIL
0.21
1.11
M. M. Chitale
Subodh Bhargava
M. Damodaran
Vikram Singh Mehta
Sushobhan Sarker ^
Adil Zainulbhai
Akhilesh Gupta
Narayanan Kumar
Bahram Vakil
Swapan Dasgupta
Sanjeev Aga
Sunita Sharma^
Thomas Mathew T.
Ajay Shankar
Subramanian Sarma
Naina Lal Kidwai
N. Hariharan
$
(11.44)
(9.07)
(6.92)
(5.00)
1.83
(17.76)
(15.74)
*
#
##
**
(13.02)
@
@
NIL
@
14.23
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 2016-17
Part of the remuneration has been paid to the financial institution he/she represents
Details not given as Mr. D. K. Sen, Mr. M. V. Satish, Mr. Thomas Mathew T., Mr. Ajay Shankar and Ms. Naina Lal Kidwai were Directors for
only part of the financial year 2015-16
#
Details not given as Mr. Bahram Vakil was a Director for only a part of the financial year 2016-17 i.e. upto August 1, 2016
## Details not given as Mr. Swapan Dasgupta was a Director for only a part of the financial year 2016-17 i.e. upto May 15, 2016
*
** Details not given as Mr. Sanjeev Aga was a director only from 25th May, 2016
~
Includes encashment of accumulated past service leave ` 32.21 crore and perquisite value related to employee stock options exercised
during the year in respect of stock options granted over the past several years by a subsidiary company - ` 19.01 crore.
6.43
7.84
5.65
5.32
4.04
5.63
2.86
1.84
2.86
0.84
3.41
2.02
5.32
3.98
NIL
2.86
15.56
Details not given as Mr. Narayanan Kumar was a director only from 27th May, 2016
^
@
B) Percentage increase in the median remuneration of all employees in the financial year 2016-17:
The median remuneration of employees of the Company during the financial year was ` 7.17 lakh. In the financial
year, there was an increase of 8.85% in the median remuneration of employees;
99
C) Number of permanent employees on the rolls of Company as on March 31, 2017:
There were 41,466 permanent employees on the rolls of Company as on March 31, 2017;
D)
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
2016-17 was 4.54% whereas there is increase in the managerial remuneration by 11.6% because a substantial
portion of managerial remuneration is linked to Company performance during the financial year 2016-17. The
Profit after Tax for the year 2016-17 increased by 9% directly impacting the variable component of managerial
remuneration. Further, the managerial remuneration for this purpose also includes perquisite value of employee
stock options exercised during the year and the encashment of accumulated past service leave but excludes gratuity
and leave encashment benefits payable on retirement;
E) Affirmation that the remuneration is as per the remuneration policy of the Company:
It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial
Personnel and other Employees.
100
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 for the Financial Year ended 31st March, 2017, 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.
6. We have not verified the correctness and appropriateness of financial records and books of accounts of the
Company.
For S. N. ANANTHASUBRAMANIAN & CO.
Company Secretaries
S. N. ANANTHASUBRAMANIAN
PARTNER
C.P No: 1774
Date: May 18, 2017
Place: Thane.
101
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2017
[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 2017, 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 2017 according to the provisions of:
i.
The Companies Act, 2013 (the Act), the Companies
Act, 1956 and the rules made thereunder;
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;
102
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,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;
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
which is commensurate with the size and operations of
the Company to monitor and ensure compliance with
applicable laws, rules, regulations and guidelines: -
Board of Directors (SS-1) and General Meetings (SS-2)
issued by The Institute of Company Secretaries of
India;
(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.
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: -
The Board of Directors of the Company is duly
constituted with proper balance of Executive
Directors, Non-Executive Directors including
Independent Directors and Women Directors. The
changes in the composition of the Board of Directors
which took place during the period under review were
carried out in compliance with the provisions of the
Act.
Adequate notice is given to all Directors to schedule
the Board Meetings, agenda and detailed notes on
agenda were sent atleast seven days in advance, and
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.
All decisions of Board and Committee meetings were
carried with requisite majority.
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
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 during the audit period
The shareholders at the General Meeting convened
by National Company Law Tribunal, Mumbai Bench
(“NCLT”) on 14th March 2017, approved a Scheme of
Arrangement (“Scheme”) between the Company
and L&T Valves Limited and their respective
shareholders and Creditors for transfer of
Coimbatore Undertaking (as defined in the Scheme)
of the Company as a going concern to L&T Valves
Limited for a consideration ` 43.79 Crore, by way
of a Resolution requiring requisite majority. The NCLT
approved the said Scheme vide their Order dated 20th
April 2017.
The Board of Directors at its meeting held on
28th January 2017 have approved a Scheme of
Amalgamation between the Company and
Spectrum Infotech Private Limited (a Wholly
owned subsidiary of the Company) and their
respective shareholders and Creditors. The Company
is in the process of seeking necessary statutory and
regulatory approvals.
For S. N. ANANTHASUBRAMANIAN & CO.
Company Secretaries
S. N. ANANTHASUBRAMANIAN
PARTNER
C.P No: 1774
Date: May 18, 2017
Place: Thane
103
Annexure ‘F’ to the Board Report
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on March 31, 2017
[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
L99999MH1946PLC004768
ii) Registration Date
iii) Name of the Company
iv) Category
v) Sub-Category of the Company
vi)
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
February 7, 1946
LARSEN & TOUBRO LIMITED
PUBLIC LIMITED COMPANY
COMPANY HAVING SHARE CAPITAL
L&T HOUSE, N. M. MARG, BALLARD ESTATE, MUMBAI - 400 001
TEL : 022-67525656 FAX: 022-67525893
LISTED
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
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:-
Name and Description of main products /
services
Construction of Buildings
Construction of Roads and Railways
Construction of Utility Projects
Sl.
No.
1
2
3
# On the basis of Gross Turnover
NIC Code of the Product/
service
410
421
422
% to total turnover of
the Company#
17.04%
24.89%
38.49%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sl.
No
Name of the
Company
Address of the Company
CIN/GLN
U74899DL1995PLC070704
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
99.90 Section 2(87)(ii)
1
2
3
4
BHILAI POWER
SUPPLY COMPANY
LIMITED
CHENNAI VISION
DEVELOPERS
PRIVATE LIMITED
EWAC ALLOYS
LIMITED
HENIKWON
CORPORATION SDN.
BHD
9TH FLOOR, AMBADEEP
BUILDING, 14, KASTURBA
GANDHI MARG, CONNAUGHT
PLACE, NEW DELHI-110001
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
L&T HOUSE, BALLARD ESTATE,
N. M. MARG, MUMBAI,
MAHARASHTRA - 400001
2A-03-2, LORONG BATU NILAM
4A, BANDAR BUKIT TINGGI,
41200, KLANG, SELANGOR,
MALAYSIA
104
U70101TN2008PTC068877
SUBSIDIARY
100.00 Section 2(87)(ii)
U74999MH1962PLC012315
SUBSIDIARY
100.00 Section 2(87)(ii)
161535-W
SUBSIDIARY
100.00 Section 2(87)(ii)
Sl.
No
Name of the
Company
Address of the Company
CIN/GLN
U14290TN2008PLC065900
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
HI-TECH ROCK
PRODUCTS &
AGGREGATE LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
KANA CONTROLS
GENERAL TRADING
& CONTRACTING
COMPANY WLL
OFFICE NO. 14, 5TH FLOOR,
AL-FARWANIYA, BLOCK NO. 44,
BLDG. NO. 6, GHASHAM FAHED
AL-BASMAN, KUWAIT
KESUN IRON AND
STEEL COMPANY
PRIVATE LIMITED
L&T ENERGY CENTRE, NEAR
CHHANI JAKAT NAKA,
VADODARA, GUJARAT-390002
KUDGI
TRANSMISSION
LIMITED
L&T - GULF PRIVATE
LIMITED
L&T ACCESS
DISTRIBUTION
SERVICES LIMITED
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
TOLLWAY LIMITED
L&T CONSTRUCTION
EQUIPMENT LIMITED
L&T CUTTING TOOLS
LIMITED
L&T DECCAN
TOLLWAYS LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
PLOT NO. 177, CTS NO.
6970, 6972, VIDYANAGAR
MARG, CST ROAD, KALINA,
SANTACRUZ (EAST), MUMBAI,
MAHARASHTRA - 400 098
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
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
10292
SUBSIDIARY
49.00 Section 2(87)(i)
U27100GJ2009PTC055901
SUBSIDIARY
95.00 Section 2(87)(ii)
U40106TN2012GOI111122
SUBSIDIARY
97.45 Section 2(87)(ii)
U74140MH2008PTC177765
SUBSIDIARY
50.0002 Section 2(87)(ii)
U65100MH2011PLC284632
SUBSIDIARY
66.62 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
66.62 Section 2(87)(ii)
U29253MH2011PLC216258
SUBSIDIARY
74.00 Section 2(87)(ii)
U45309TN2008PLC066938
SUBSIDIARY
97.45 Section 2(87)(ii)
U29119MH1997PLC109700
SUBSIDIARY
100.00 Section 2(87)(ii)
U28920MH1952PLC008893
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2011PLC083661
SUBSIDIARY
97.45 Section 2(87)(ii)
105
Sl.
No
22
Name of the
Company
DEVIHALLI HASSAN
TOLLWAY LIMITED
Address of the Company
CIN/GLN
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
U45203TN2010PLC075491
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
97.45 Section 2(87)(ii)
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
L&T ELECTRICAL &
AUTOMATION FZE
WAREHOUSE NO. FZS2ABO5
262158, JEBEL ALI FREE ZONE,
DUBAI, UNITED ARAB EMIRATES
107673
SUBSIDIARY
100.00 Section 2(87)(ii)
L&T ELECTRICAL AND
AUTOMATION SAUDI
ARABIA COMPANY
LIMITED LLC
MH-4, PLOT NO. 17+19, IIND
INDUSTRIAL CITY, DAMMAM,
P.O. BOX 77186, AL KHOBAR
31952, KINGDOM OF SAUDI
ARABIA
L&T ELECTRICALS
AND AUTOMATION
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T FINANCE
HOLDINGS LIMITED
L&T FINANCE
LIMITED
L&T HALOL-
SHAMLAJI TOLLWAY
LIMITED
L&T HIMACHAL
HYDROPOWER
LIMITED
L&T HOUSING
FINANCE LIMITED
L&T HOWDEN
PRIVATE LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
TECHNOPOLIS, 7TH FLOOR, A
WING, PLOT NO. 4, BLOCK-BP,
SECTOR-C, SALT LAKE, KOLKATA,
WEST BENGAL - 700 091
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
RAMA COTTAGE, KANLOG,
SHIMLA-171001
L&T HOUSE, NAROTTAM
MORARJI MARG BALLARD
ESTATE MUMBAI 400001
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
2050051589
SUBSIDIARY
100.00 Section 2(87)(ii)
U31501MH2007PLC176667
SUBSIDIARY
100.00 Section 2(87)(ii)
L67120MH2008PLC181833
SUBSIDIARY
66.62 Section 2(87)(ii)
U65910WB1993FLC060810
SUBSIDIARY
66.62 Section 2(87)(ii)
U45203TN2008PLC069210
SUBSIDIARY
47.75 Section 2(87)(ii)
U40102HP2010PLC031697
SUBSIDIARY
100.00 Section 2(87)(ii)
U45200MH1994PLC259630
SUBSIDIARY
66.62 Section 2(87)(ii)
U31401MH2010PTC204403
SUBSIDIARY
50.10 Section 2(87)(ii)
U11200MH2009PLC191426
SUBSIDIARY
100.00 Section 2(87)(ii)
L&T IDPL TRUSTEE
MANAGER PTE. LTD.
8 CROSS STREET, #10-00, PWC
BUILDING, SINGAPORE (048424)
201326418G
SUBSIDIARY
97.45 Section 2(87)(ii)
L&T INFORMATION
TECHNOLOGY
SERVICES
(SHANGHAI) CO.,
LTD.
ROOM 1100, BUILDING 2,
NO.1388, XINGXIAN ROAD,
JIADING DISTRICT, SHANGHAI
L&T INFOTECH
FINANCIAL SERVICES
TECHNOLOGIES INC
2810, MATHESON BLVD EAST
SUITE 500, MISSISSAUGA,
ONL4W 4X7 CANADA
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
PLOT NO. 177, CTS NO.
6970, 6971, VIDYANAGARI
MARG, CST ROAD, KALINA,
SANTACRUZ (EAST), MUMBAI,
MAHARASHTRA - 400 098
310000400714060 (JIADING)
SUBSIDIARY
84.28 Section 2(87)(ii)
770556-5
SUBSIDIARY
84.28 Section 2(87)(ii)
U67100MH2013PLC241104
SUBSIDIARY
66.62 Section 2(87)(ii)
U67190MH2011PTC218046
SUBSIDIARY
66.62 Section 2(87)(ii)
U65900MH2011PTC220896
SUBSIDIARY
66.62 Section 2(87)(ii)
106
Sl.
No
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Address of the Company
CIN/GLN
U65993TN2001PLC046691
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
97.45 Section 2(87)(ii)
U74140TN1998PLC039864
SUBSIDIARY
100.00 Section 2(87)(ii)
Name of the
Company
L&T
INFRASTRUCTURE
DEVELOPMENT
PROJECTS LIMITED
L&T
INFRASTRUCTURE
ENGINEERING
LIMITED
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
KRISHNAGIRI
THOPUR TOLL ROAD
LIMITED
KRISHNAGIRI
WALAJAHPET
TOLLWAY LIMITED
L&T METRO RAIL
(HYDERABAD)
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
HYDERABAD METRO RAIL
ADMINISTRATIVE BUILDING,
UPPAL MAIN ROAD, HYDERABAD
- 500 039, TELANGANA
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 ESTATES,
P.O. BOX 278, MUMBAI 400001
U67190TN2006PLC059527
SUBSIDIARY
66.62 Section 2(87)(ii)
U45203TN2006PLC058735
SUBSIDIARY
97.45 Section 2(87)(ii)
U65991MH1996PLC229572
SUBSIDIARY
66.62 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)
U45300TG2010PLC070121
SUBSIDIARY
100.00 Section 2(87)(ii)
1001910
SUBSIDIARY
65.00 Section 2(87)(ii)
U65993MH1996PLC211198
SUBSIDIARY
66.62 Section 2(87)(ii)
L&T OVERSEAS
PROJECTS NIGERIA
LIMITED
252E, MURI OKUNOLA STREET,
VICTORIA ISLAND, LAGOS,
NIGERIA
601723
SUBSIDIARY
100.00 Section 2(87)(ii)
PANIPAT ELEVATED
CORRIDOR LIMITED
L&T PORT
KACHCHIGARH
LIMITED
L&T POWER
DEVELOPMENT
LIMITED
54
L&T POWER LIMITED
55
L&T RAJKOT-
VADINAR TOLLWAY
LIMITED
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
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
99.99 Section 2(87)(ii)
U45203TN2008PLC069184
SUBSIDIARY
97.45 Section 2(87)(ii)
107
Address of the Company
CIN/GLN
02 - 01 - 05714
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
Sl.
No
Name of the
Company
56
L&T REALTY FZE
57
L&T REALTY LIMITED
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
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
2035, LINCOLN HIGHWAY, SUITE
# 3002, EDISON, SQUARE WEST,
EDISON, NJ - 08817
RR V TOWER, 7TH FLOOR, 33A,
DEVELOPED PLOTS, SIDCO
INDUSTRIAL ESTATE, GUINDY,
CHENNAI-600032
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
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
L&T SPECIAL
STEELS AND HEAVY
FORGINGS PRIVATE
LIMITED
L&T TECHNOLOGY
SERVICES LIMITED
L&T TECHNOLOGY
SERVICES LLC
L&T THALES
TECHNOLOGY
SERVICES PRIVATE
LIMITED
L&T
TRANSPORTATION
INFRASTRUCTURE
LIMITED
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)
U27109MH2009PTC193699
SUBSIDIARY
74.00 Section 2(87)(ii)
U72900MH2012PLC232169
SUBSIDIARY
89.77 Section 2(87)(ii)
0479598-9
SUBSIDIARY
89.77 Section 2(87)(ii)
U72200TN2006PTC059421
SUBSIDIARY
66.43 Section 2(87)(ii)
U45203TN1997PLC039102
SUBSIDIARY
98.12 Section 2(87)(ii)
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
Rudra Prayag UR 246421
VADODARA
BHARUCH
TOLLWAYS LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
U74990MH2009PTC193936
SUBSIDIARY
100.00 Section 2(87)(ii)
U31401UR2006PLC032329
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2005PLC058417
SUBSIDIARY
97.45 Section 2(87)(ii)
58
59
60
61
62
63
64
65
66
67
68
69
70
71
108
Sl.
No
Name of the
Company
Address of the Company
CIN/GLN
Holding/
Subsidiary/
Associate
% of Shares
held
Applicable Section
72
L&T VALVES LIMITED L&T HOUSE, BALLARD ESTATE,
U74999MH1961PLC012188
SUBSIDIARY
100.00 Section 2(87)(ii)
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
L&T VISION
VENTURES LIMITED
L&T FINANCIAL
CONSULTANTS
LIMITED
WESTERN ANDHRA
TOLLWAYS LIMITED
L&T WESTERN INDIA
TOLLBRIDGE LIMITED
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-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
LARSEN & TOUBRO
(EAST ASIA) SDN.
BHD
LARSEN & TOUBRO
ATCO SAUDIA LLC
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
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
LARSEN & TOUBRO
HYDROCARBON
INTERNATIONAL
LIMITED LLC
P.O. BOX 281, POSTAL CODE
325, W LIWA, SULTANATE OF
OMAN
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
LARSEN & TOUBRO
INFOTECH LLC
LARSEN & TOUBRO
INTERNATIONAL FZE
EURO-ASIA BUSINESS CENTRE,
MESSE-ALLEE 2, D-04356,
LEIPZIG, GERMANY
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
1220, N. MARKET ST., SUITE
806, WILMINGTON, DE 19801,
USA
OFFICE LOB 16 G 08, POST
BOX 41558, HAMRIYAH FREE
ZONE, SHARJAH, UNITED ARAB
EMIRATES
U74210TN2006PLC061845
SUBSIDIARY
68.00 Section 2(87)(ii)
U65100TN2011PLC081100
SUBSIDIARY
66.62 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)
390357-T
SUBSIDIARY
30.00 Section 2(87)(i)
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
84.28 Section 2(87)(ii)
HRB15958
SUBSIDIARY
84.28 Section 2(87)(ii)
U72900MH1996PLC104693
SUBSIDIARY
84.28 Section 2(87)(ii)
270596763
SUBSIDIARY
84.28 Section 2(87)(ii)
0067
SUBSIDIARY
100.00 Section 2(87)(ii)
109
Name of the
Company
LARSEN &
TOUBRO KUWAIT
CONSTRUCTION
GENERAL
CONTRACTING
COMPANY, WITH
LIMITED LIABILITY
LARSEN & TOUBRO
LLC
LARSEN & TOUBRO
OMAN LLC
LARSEN & TOUBRO
QATAR LLC
LARSEN & TOUBRO
READYMIX AND
ASPHALT CONCRETE
INDUSTRIES LLC
LARSEN & TOUBRO
SAUDI ARABIA LLC
LARSEN & TOUBRO
TANDD SA (PTY)
LIMITED
Address of the Company
CIN/GLN
PLOT NO. 3, BUILDING NO.1,
SHARQ, KUWAIT
117668
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
49.00 Section 2(87)(i)
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)
P.O. BOX NO.20, RIYADH
11351, KINGDOM OF SAUDI
ARABIA 11351
2ND FLOOR, 4 PENCARROW
CRESCENT, LA LUCIA RIDGE
OFFICE ESTATE, SOUTH AFRICA
4019
1010154437
SUBSIDIARY
100.00 Section 2(87)(ii)
2010/018159/07
SUBSIDIARY
72.50 Section 2(87)(ii)
LARSEN AND
TOUBRO INFOTECH
SOUTH AFRICA (PTY)
LIMITED
6TH FLOOR, 119 HERTZOG
BOULEVARD, FORESHORE,
CAPETOWN, SOUTH AFRICA
8001
2011/007226/07
SUBSIDIARY
63.12 Section 2(87)(ii)
LARSEN TOUBRO
ARABIA LLC
MUDIT CEMENT
PRIVATE LIMITED
100
101
NABHA POWER
LIMITED
PNG TOLLWAY
LIMITED
102
PT TAMCO
INDONESIA
PT. LARSEN
& TOUBRO
HYDROCARBON
ENGINEERING
INDONESIA
ALMADA TOWER, PRINCE TURKI
STREET, AL KHOBAR, SAUDI
ARABIA
5TH FLOOR, DCM BUILDING,
16, BARAKHAMBA ROAD,
CANNAUGHT PLACE, NEW
DELHI-110001
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
2051049523
SUBSIDIARY
75.00 Section 2(87)(ii)
U26942DL1990PTC041941
SUBSIDIARY
66.62 Section 2(87)(ii)
U40102PB2007PLC031039
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2009PLC070741
SUBSIDIARY
72.11 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)
RAYKAL ALUMINIUM
COMPANY PRIVATE
LIMITED
ANNAPURNA COMPLEX, 559,
LEWIS ROAD, BHUBANESWAR,
KHORDHA-751014
U13203OR1999PTC005673
SUBSIDIARY
75.50 Section 2(87)(ii)
Sl.
No
90
91
92
93
94
95
96
97
98
99
103
104
110
Sl.
No
105
106
107
108
111
112
113
114
116
117
118
119
120
TAMCO
SWITCHGEAR
(MALAYSIA) SDN
BHD
109
THALEST LIMITED
110
L&T GLOBAL
HOLDINGS LIMITED
MARINE
INFRASTRUCTURE
DEVELOPER PRIVATE
LIMITED
L&T INFORMATION
TECHNOLOGY SPAIN
SOCIEDAD LIMITADA
AUGMENT IQ DATA
SCIENCES PRIVATE
LIMITED
115
L&T INFOTECH S. DE.
RL.C.V
SAHIBGANJ GANGES
BRIDGE-COMPANY
PRIVATE LIMITED
L&T INFRA
CONTRACTORS
PRIVATE COMPANY
LIMITED
Name of the
Company
SERVOWATCH
SYSTEMS LIMITED
Address of the Company
CIN/GLN
THE WOODROPE BUILDING,
WOODROLFE ROAD,
TOLLESBURY, MALDONESSEX
CM9 8SE, UNITED KINGDOM
2159287
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
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
U72200KA1995PTC018112
SUBSIDIARY
100.00 Section 2(87)(ii)
ACN006140512
SUBSIDIARY
100.00 Section 2(87)(ii)
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
GROUND FLOOR, TC 1
BUILDING, L&T CONSTRUCTION
COMPLEX, MOUNT
POONAMALLE ROAD,
MANAPAKKAM, CHENNAI
- 600089
C/JOSE ABASCAL, 56 2ND
FLOOR, MADRID
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)
U74999TN2016PTC103769
SUBSIDIARY
97.00 Section 2(87)(ii)
B87472072
SUBSIDIARY
84.28 Section 2(87)(ii)
LARSEN & TOUBRO
INFOTECH AUSTRIA
GMBH
c/o, OBERHAMMER,
RECHTSANWALTE GMBH,
KARLSPLATZ, 3/1, VIENNA
FN435491D
SUBSIDIARY
84.28 Section 2(87)(ii)
GODREJ ETERNIA A, 5TH
FLOOR, MUMBAI PUNE
ROAD, SHIVAJINAGAR, PUNE,
MAHARASHTRA - 400005
BOSQUE DE CIRUELOS 180,
SUITE PP 101, COL.BOSQUES
DE LAS LOMAS, 11700 MEXICO
CITY, MEXICO
L&T HOUSE BALLARD ESTATE
MUMBAI 400001
L&T HOUSE, BALLARD ESTATE, N
M MARG, MUMBAI 400001
U72200PN2012PTC145539
SUBSIDIARY
84.28 Section 2(87)(ii)
N2017020633
SUBSIDIARY
84.28 Section 2(87)(ii)
U45309MH2016PTC283661
SUBSIDIARY
100.00 Section 2(87)(ii)
U45400MH2017PTC292586
SUBSIDIARY
100.00 Section 2(87)(ii)
LTH MILCOM
PRIVATE LIMITED
L & T HOUSE, BALLARD ESTATE,
MUMBAI 400001
SEAWOODS REALTY
PRIVATE LIMITED
SEAWOODS RETAIL
PRIVATE LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U74999MH2015PTC267502
SUBSIDIARY
56.67 Section 2(87)(ii)
U70109MH2016PTC285064
SUBSIDIARY
100.00 Section 2(87)(ii)
U70103MH2016PTC285466
SUBSIDIARY
100.00 Section 2(87)(ii)
111
Sl.
No
Name of the
Company
Address of the Company
CIN/GLN
Holding/
Subsidiary/
Associate
% of Shares
held
Applicable Section
1
2
3
4
5
6
7
8
9
FEEDBACK
INFRAPRIVATE
LIMITED
311, 3rd Floor,Vardhaman Plaza,
Pocket 7, Plot No. 6, Sector 12,
Dwarka , New Delhi -110078
GUJARAT LEATHER
INDUSTRIES LIMITED
INDIRAN
ENGINEERING
PROJECTS AND
SYSTEMS KISH (LLC)
NO 3001, GIDC INDUSTRIAL
ESTATE, ANKLESHWAR,
GUJARAT
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
U74899DL1990PTC040630
ASSOCIATE
15.42 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
50.00 Section 2(6)
L& T-CHIYODA
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U28920MH1994PLC083035
ASSOCIATE
50.00 Section 2(6)
LARSEN & TOUBRO
QATAR & HBK
CONTRACTING LLC
MAGTORQ PRIVATE
LIMITED
P. O. BOX 1362, DOHA, QATAR
28634
ASSOCIATE
50.00 Section 2(6)
NO. 58-C, SIPCOT INDUSTRIAL
COMPLEX, HOSUR, TAMIL NADU
635126
U02520TZ1989PTC002458
ASSOCIATE
42.85 Section 2(6)
Grameen Capital
India Private Limited
402, 36 TURNER ROAD,BANDRA
WEST, MUMBAI - 400050
U65923MH2007PTC168721
ASSOCIATE
23.84 Section 2(6)
112
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
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
3.26
-18.27
0.06
0.00
0.00
15.44
-8.65
0.00
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
a) MutualFunds
b) Banks / FI
c) Central Govt
d) State Govt(s)
e)
Venture Capital Funds
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
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
76,771,070
3,738
76,774,808
8.24
107,273,904
12,822
107,286,726
11.50
237,142,389
41,177
237,183,566
25.46
67,089,940
31,933
67,121,873
1,314,715
0
0
0
0
0
0
1,314,715
0
0
41,071,676
0.14
0.00
0.00
4.41
1,874,190
0
0
0
0
0
1,874,190
0
0
185,203,662
450
185,204,112
f)
Insurance Companies
41,071,676
g) FIIs
101,334,166
40,068
101,374,234
10.88
20,810,053
h)
Foreign Venture Capital
Funds
0
0
0
0.00
0
0
0
20,810,053
0
7.19
0.20
0.00
0.00
19.85
2.23
0.00
Sub-total (B)(1):-
457,634,016
84,983 457,718,999
49.14 382,251,749
45,205 382,296,954
40.98
-8.16
2. Non-Institutions
a) Bodies Corp.
i)
Indian
ii) Overseas
b)
Individuals
i)
Individual
shareholders
holding nominal
share capital upto
` 1 lakh
65,995,102
305,763
66,300,865
0
3,432
3,432
7.12
0.00
66,318,379
341,383
66,634,899
280,167
23,431
303,598
7.14
0.03
182,938,555
18,745,440
201,683,995
21.65
163,335,385
17,670,044
181,005,429
19.40
0.02
0.03
0.00
-2.25
113
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
11,172,991
0
11,172,991
1.20
19,459,126
218,526
19,677,652
2.11
0.91
ii)
Individual
shareholders
holding nominal
share capital in
excess of ` 2 lakh
c) Others (specify)
i)
Directors &
Relatives
Total Public Shareholding
(B)=(B)(1)+ (B)(2)
C.
Shares held
byCustodian for GDRs
& ADRs
1,449,165
350
1,449,515
0.16
1,509,024
250
1,509,274
ii)
Foreign Nationals
392,713
20,826
413,539
iii) Foreign Portfolio
49,988,226
0
49,988,226
0.04
5.37
372,138
14,470
386,608
140,322,703
0
140,322,703
Investors
iv) Non- Residents
8,354,814
426,504
8,781,318
0.94
8,064,466
390,360
8,454,826
v) Trust
114,734,515
17,766
114,752,281
12.32
114,734,515
17,766
114,752,281
vi)
Qualified Foreign
Investor
0
0
0
0.00
0
0
0
Sub-total (B)(2):-
435,026,081
19,520,081 454,546,162
48.80 514,395,903
18,676,230 533,047,270
892,660,097
19,605,064 912,265,161
97.94 896,647,652
18,721,435 915,344,224
19,213,684
0
19,213,684
2.06
17,621,579
0
17,621,579
1.89
0.16
0.04
15.04
0.91
12.30
0.00
57.13
98.11
0.00
0.00
0.00
9.67
-0.03
-0.02
0.00
8.33
0.17
-0.17
Grand Total (A+B+C)
911,873,781
19,605,064 931,478,845
100.00 914,269,231
18,721,435 932,965,803
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
Total
NIL
NIL
NIL
NIL
(iii) Change in Promoters’ Shareholding (please specify, if there is no change):
Sl.
No.
1
2
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):
3
At the End of the year
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
NIL
NIL
NIL
NIL
114
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs
and ADRs):
Reason
Increase/
Decrease
in share
holding
5850 Transfer
-5850 Transfer
Cumulative Shareholding
during the Year
No of
Shares
153172007
153177857
153172007
153172007
114752281
114752281
% of total
shares
of the
Company
16.44
16.43
16.43
16.42
12.32
12.30
Shareholding at the
beginning of the Year
26/08/2016
26/08/2016
At the end of the year
Shareholding at the
beginning of the Year
At the end of the year
Shareholding at the
beginning of the Year
75926562
8.15
11/11/2016
-14823702 Transfer
61102860
6.55
Name of the Share Holder
Date
Sl.
No.
1
2
3
LIFE INSURANCE CORPORATION
OF INDIA
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
L&T EMPLOYEES WELFARE
FOUNDATION
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
ADMINISTRATOR OF THE
SPECIFIED UNDERTAKING OF
THE UNIT TRUST OF INDIA
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
4
HDFC TRUSTEE COMPANY
LIMITED - HDFC EQUITY FUND
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
At the end of the year
Shareholding at the
beginning of the Year
08/04/2016
08/04/2016
15/04/2016
22/04/2016
22/04/2016
29/04/2016
29/04/2016
06/05/2016
06/05/2016
13/05/2016
13/05/2016
20/05/2016
20/05/2016
27/05/2016
92449 Transfer
-110 Transfer
183 Transfer
180100 Transfer
-2066 Transfer
1415 Transfer
-336 Transfer
288 Transfer
-162 Transfer
100218 Transfer
-80806 Transfer
35413 Transfer
-88 Transfer
-1501 Transfer
61102860
20473057
20565506
20565396
20565579
20745679
20743613
20745028
20744692
20744980
20744818
20845036
20764230
20799643
20799555
20798054
6.55
2.20
2.21
2.21
2.21
2.23
2.23
2.23
2.23
2.23
2.23
2.24
2.23
2.23
2.23
2.23
115
Name of the Share Holder
Date
Sl.
No.
03/06/2016
03/06/2016
10/06/2016
10/06/2016
17/06/2016
17/06/2016
24/06/2016
24/06/2016
30/06/2016
30/06/2016
08/07/2016
08/07/2016
15/07/2016
15/07/2016
22/07/2016
22/07/2016
29/07/2016
29/07/2016
05/08/2016
12/08/2016
12/08/2016
19/08/2016
19/08/2016
26/08/2016
02/09/2016
02/09/2016
09/09/2016
09/09/2016
16/09/2016
16/09/2016
23/09/2016
23/09/2016
30/09/2016
30/09/2016
07/10/2016
14/10/2016
14/10/2016
21/10/2016
21/10/2016
28/10/2016
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
116
Reason
Increase/
Decrease
in share
holding
550689 Transfer
-119 Transfer
35707 Transfer
-50202 Transfer
188356 Transfer
-46771 Transfer
10773 Transfer
-505 Transfer
4445 Transfer
-600 Transfer
150255 Transfer
-100215 Transfer
150090 Transfer
-51180 Transfer
116900 Transfer
-237 Transfer
205100 Transfer
-128 Transfer
180 Transfer
193880 Transfer
-176 Transfer
283000 Transfer
-160 Transfer
-145 Transfer
466134 Transfer
-99627 Transfer
293060 Transfer
-6469 Transfer
113890 Transfer
-239 Transfer
159609 Transfer
-407 Transfer
164100 Transfer
-1299 Transfer
403311 Transfer
128 Transfer
-25380 Transfer
70219 Transfer
-27500 Transfer
271877 Transfer
Cumulative Shareholding
during the Year
No of
Shares
21348743
21348624
21384331
21334129
21522485
21475714
21486487
21485982
21490427
21489827
21640082
21539867
21689957
21638777
21755677
21755440
21960540
21960412
21960592
22154472
22154296
22437296
22437136
22436991
22903125
22803498
23096558
23090089
23203979
23203740
23363349
23362942
23527042
23525743
23929054
23929182
23903802
23974021
23946521
24218398
% of total
shares
of the
Company
2.29
2.29
2.29
2.29
2.31
2.30
2.31
2.31
2.31
2.31
2.32
2.31
2.33
2.32
2.33
2.33
2.36
2.36
2.36
2.38
2.38
2.41
2.41
2.41
2.46
2.45
2.48
2.48
2.49
2.49
2.51
2.51
2.52
2.52
2.57
2.57
2.56
2.57
2.57
2.60
Cumulative Shareholding
during the Year
Name of the Share Holder
Date
Sl.
No.
Reason
Increase/
Decrease
in share
holding
No of
Shares
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
04/11/2016
04/11/2016
11/11/2016
18/11/2016
25/11/2016
25/11/2016
02/12/2016
02/12/2016
09/12/2016
09/12/2016
16/12/2016
16/12/2016
23/12/2016
23/12/2016
30/12/2016
06/01/2017
13/01/2017
13/01/2017
20/01/2017
20/01/2017
27/01/2017
27/01/2017
03/02/2017
03/02/2017
10/02/2017
10/02/2017
17/02/2017
17/02/2017
24/02/2017
24/02/2017
03/03/2017
03/03/2017
10/03/2017
10/03/2017
17/03/2017
17/03/2017
24/03/2017
24/03/2017
31/03/2017
31/03/2017
At the end of the year
550 Transfer
-8284 Transfer
1811057 Transfer
1076874 Transfer
1114106 Transfer
-54500 Transfer
847325 Transfer
-100 Transfer
100717 Transfer
-29000 Transfer
338 Transfer
-6067 Transfer
406 Transfer
-65500 Transfer
267621 Transfer
162602 Transfer
224532 Transfer
-894 Transfer
24196 Transfer
-10413 Transfer
196482 Transfer
-14000 Transfer
212950 Transfer
-11819 Transfer
1598 Transfer
-340 Transfer
100134 Transfer
-77 Transfer
39022 Transfer
-61 Transfer
55243 Transfer
-673 Transfer
31740 Transfer
-31045 Transfer
390465 Transfer
-213 Transfer
38140 Transfer
-2409 Transfer
25807 Transfer
-150 Transfer
24218948
24210664
26021721
27098595
28212701
28158201
29005526
29005426
29106143
29077143
29077481
29071414
29071820
29006320
29273941
29436543
29661075
29660181
29684377
29673964
29870446
29856446
30069396
30057577
30059175
30058835
30158969
30158892
30197914
30197853
30253096
30252423
30284163
30253118
30643583
30643370
30681510
30679101
30704908
30704758
30704758
% of total
shares
of the
Company
2.60
2.60
2.79
2.91
3.03
3.02
3.11
3.11
3.12
3.12
3.12
3.12
3.12
3.11
3.14
3.16
3.18
3.18
3.18
3.18
3.20
3.20
3.22
3.22
3.22
3.22
3.23
3.23
3.24
3.24
3.24
3.24
3.25
3.24
3.28
3.28
3.29
3.29
3.29
3.29
3.29
117
Name of the Share Holder
Date
Sl.
No.
5
GENERAL INSURANCE
CORPORATION OF INDIA
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
6
ICICI PRUDENTIAL CAPITAL
PROTECTION ORIENTED FUND
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
Shareholding at the
beginning of the Year
27/05/2016
03/06/2016
11/11/2016
13/01/2017
20/01/2017
03/02/2017
10/02/2017
17/02/2017
03/03/2017
10/03/2017
17/03/2017
24/03/2017
31/03/2017
At the end of the year
Shareholding at the
beginning of the Year
08/04/2016
08/04/2016
15/04/2016
22/04/2016
22/04/2016
29/04/2016
06/05/2016
13/05/2016
13/05/2016
20/05/2016
27/05/2016
27/05/2016
03/06/2016
03/06/2016
10/06/2016
17/06/2016
24/06/2016
24/06/2016
30/06/2016
30/06/2016
01/07/2016
Reason
Increase/
Decrease
in share
holding
-25000 Transfer
-25000 Transfer
798124 Transfer
-83000 Transfer
-117000 Transfer
-80000 Transfer
-100500 Transfer
-19500 Transfer
-100000 Transfer
-120000 Transfer
-130000 Transfer
-235000 Transfer
-65000 Transfer
4493 Transfer
-78869 Transfer
52800 Transfer
675744 Transfer
-1069213 Transfer
307 Transfer
-3447 Transfer
575753 Transfer
-847395 Transfer
-4688 Transfer
1448 Transfer
-653243 Transfer
363804 Transfer
-576970 Transfer
224 Transfer
1580 Transfer
339 Transfer
-18 Transfer
678 Transfer
-517654 Transfer
-652 Transfer
Cumulative Shareholding
during the Year
No of
Shares
17120000
17095000
17070000
17868124
17785124
17668124
17588124
17487624
17468124
17368124
17248124
17118124
16883124
16818124
16818124
14633805
14638298
14559429
14612229
15287973
14218760
14219067
14215620
14791373
13943978
13939290
13940738
13287495
13651299
13074329
13074553
13076133
13076472
13076454
13077132
12559478
12558826
% of total
shares
of the
Company
1.84
1.83
1.83
1.92
1.91
1.89
1.89
1.87
1.87
1.86
1.85
1.83
1.81
1.80
1.80
1.57
1.57
1.56
1.57
1.64
1.53
1.53
1.53
1.59
1.50
1.50
1.50
1.43
1.46
1.40
1.40
1.40
1.40
1.40
1.40
1.35
1.35
118
Cumulative Shareholding
during the Year
Name of the Share Holder
Date
Sl.
No.
Reason
Increase/
Decrease
in share
holding
No of
Shares
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
08/07/2016
08/07/2016
15/07/2016
22/07/2016
22/07/2016
29/07/2016
29/07/2016
05/08/2016
05/08/2016
12/08/2016
19/08/2016
26/08/2016
02/09/2016
02/09/2016
09/09/2016
16/09/2016
16/09/2016
23/09/2016
23/09/2016
30/09/2016
30/09/2016
07/10/2016
07/10/2016
14/10/2016
21/10/2016
28/10/2016
28/10/2016
04/11/2016
11/11/2016
18/11/2016
25/11/2016
02/12/2016
02/12/2016
09/12/2016
09/12/2016
16/12/2016
16/12/2016
23/12/2016
30/12/2016
586 Transfer
-15000 Transfer
-19581 Transfer
2147 Transfer
-840889 Transfer
904 Transfer
-976591 Transfer
1810 Transfer
-41388 Transfer
-8701 Transfer
678 Transfer
3164 Transfer
802 Transfer
-153 Transfer
-1695 Transfer
1808 Transfer
-6138 Transfer
904 Transfer
-15 Transfer
186598 Transfer
-27 Transfer
126735 Transfer
-8 Transfer
215689 Transfer
538314 Transfer
86391 Transfer
-216000 Transfer
209266 Transfer
3806248 Transfer
533085 Transfer
367426 Transfer
16228 Transfer
-22 Transfer
265753 Transfer
-4000 Transfer
153048 Transfer
-90000 Transfer
126008 Transfer
419213 Transfer
12559412
12544412
12524831
12526978
11686089
11686993
10710402
10712212
10670824
10662123
10662801
10665965
10666767
10666614
10664919
10666727
10660589
10661493
10661478
10848076
10848049
10974784
10974776
11190465
11728779
11815170
11599170
11808436
15614684
16147769
16515195
16531423
16531401
16797154
16793154
16946202
16856202
16982210
17401423
% of total
shares
of the
Company
1.35
1.35
1.34
1.34
1.25
1.25
1.15
1.15
1.14
1.14
1.14
1.14
1.14
1.14
1.14
1.14
1.14
1.14
1.14
1.16
1.16
1.18
1.18
1.20
1.26
1.27
1.24
1.27
1.67
1.73
1.77
1.77
1.77
1.80
1.80
1.82
1.81
1.82
1.87
119
Name of the Share Holder
Date
Sl.
No.
06/01/2017
06/01/2017
13/01/2017
13/01/2017
20/01/2017
27/01/2017
03/02/2017
03/02/2017
10/02/2017
10/02/2017
17/02/2017
17/02/2017
24/02/2017
24/02/2017
03/03/2017
03/03/2017
10/03/2017
10/03/2017
17/03/2017
17/03/2017
24/03/2017
24/03/2017
31/03/2017
At the end of the year
Shareholding at the
beginning of the Year
08/04/2016
15/04/2016
22/04/2016
29/04/2016
06/05/2016
13/05/2016
20/05/2016
27/05/2016
03/06/2016
10/06/2016
17/06/2016
24/06/2016
30/06/2016
30/06/2016
08/07/2016
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
7
ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LIMITED
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
120
Reason
Increase/
Decrease
in share
holding
39982 Transfer
-452 Transfer
266695 Transfer
-306015 Transfer
4845 Transfer
175816 Transfer
156544 Transfer
-6346 Transfer
230564 Transfer
-2983 Transfer
8488 Transfer
-810 Transfer
5537 Transfer
-86 Transfer
250121 Transfer
-4606 Transfer
360850 Transfer
-1554 Transfer
1027 Transfer
-206002 Transfer
9464196 Transfer
-9263023 Transfer
24619 Transfer
33527 Transfer
63264 Transfer
422921 Transfer
94145 Transfer
236121 Transfer
-110338 Transfer
617 Transfer
140914 Transfer
80751 Transfer
82074 Transfer
37443 Transfer
157302 Transfer
93636 Transfer
-47044 Transfer
263395 Transfer
Cumulative Shareholding
during the Year
No of
Shares
17441405
17440953
17707648
17401633
17406478
17582294
17738838
17732492
17963056
17960073
17968561
17967751
17973288
17973202
18223323
18218717
18579567
18578013
18579040
18373038
27837234
18574211
18598830
18598830
14024401
14057928
14121192
14544113
14638258
14874379
14764041
14764658
14905572
14986323
15068397
15105840
15263142
15356778
15309734
15573129
% of total
shares
of the
Company
1.87
1.87
1.90
1.87
1.87
1.89
1.90
1.90
1.93
1.93
1.93
1.93
1.93
1.93
1.95
1.95
1.99
1.99
1.99
1.97
2.98
1.99
1.99
1.99
1.51
1.51
1.52
1.56
1.57
1.60
1.58
1.58
1.60
1.61
1.62
1.62
1.64
1.65
1.64
1.67
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
15/07/2016
22/07/2016
29/07/2016
05/08/2016
12/08/2016
19/08/2016
26/08/2016
02/09/2016
09/09/2016
16/09/2016
23/09/2016
30/09/2016
07/10/2016
14/10/2016
21/10/2016
28/10/2016
04/11/2016
11/11/2016
18/11/2016
25/11/2016
02/12/2016
09/12/2016
16/12/2016
23/12/2016
30/12/2016
06/01/2017
13/01/2017
20/01/2017
27/01/2017
03/02/2017
03/02/2017
10/02/2017
17/02/2017
17/02/2017
24/02/2017
03/03/2017
10/03/2017
17/03/2017
24/03/2017
31/03/2017
At the end of the year
Reason
Increase/
Decrease
in share
holding
-33947 Transfer
145138 Transfer
86609 Transfer
19346 Transfer
38335 Transfer
49027 Transfer
-204120 Transfer
-47693 Transfer
302571 Transfer
-167266 Transfer
-82275 Transfer
59307 Transfer
171238 Transfer
68326 Transfer
550645 Transfer
68 Transfer
68064 Transfer
-320258 Transfer
339794 Transfer
127690 Transfer
53124 Transfer
201 Transfer
100030 Transfer
37268 Transfer
233675 Transfer
373055 Transfer
68228 Transfer
-35601 Transfer
6963 Transfer
423396 Transfer
-88250 Transfer
55326 Transfer
18036741 Transfer
-17971143 Transfer
154232 Transfer
60073 Transfer
37959 Transfer
-728 Transfer
60049 Transfer
-21748 Transfer
Cumulative Shareholding
during the Year
No of
Shares
15539182
15684320
15770929
15790275
15828610
15877637
15673517
15625824
15928395
15761129
15678854
15738161
15909399
15977725
16528370
16528438
16596502
16276244
16616038
16743728
16796852
16797053
16897083
16934351
17168026
17541081
17609309
17573708
17580671
18004067
17915817
17971143
36007884
18036741
18190973
18251046
18289005
18288277
18348326
18326578
18326578
% of total
shares
of the
Company
1.67
1.68
1.69
1.69
1.70
1.70
1.68
1.68
1.71
1.69
1.68
1.69
1.71
1.71
1.77
1.77
1.78
1.75
1.78
1.80
1.80
1.80
1.81
1.82
1.84
1.88
1.89
1.88
1.88
1.93
1.92
1.93
3.86
1.93
1.95
1.96
1.96
1.96
1.97
1.96
1.96
121
Cumulative Shareholding
during the Year
Name of the Share Holder
Date
Sl.
No.
Reason
Increase/
Decrease
in share
holding
No of
Shares
8
GOVERNMENT OF SINGAPORE
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
9
RELIANCE CAPITAL TRUSTEE
COMPANY LIMITED
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
122
Shareholding at the
beginning of the Year
08/04/2016
22/04/2016
29/04/2016
06/05/2016
03/06/2016
10/06/2016
08/07/2016
22/07/2016
29/07/2016
05/08/2016
12/08/2016
19/08/2016
02/09/2016
09/09/2016
07/10/2016
04/11/2016
11/11/2016
02/12/2016
30/12/2016
06/01/2017
03/02/2017
10/02/2017
03/03/2017
10/03/2017
17/03/2017
24/03/2017
31/03/2017
At the end of the year
Shareholding at the
beginning of the Year
08/04/2016
08/04/2016
15/04/2016
22/04/2016
22/04/2016
29/04/2016
29/04/2016
06/05/2016
-97901 Transfer
-157796 Transfer
-110191 Transfer
-133937 Transfer
146632 Transfer
112383 Transfer
-86734 Transfer
-7303 Transfer
-63838 Transfer
-102391 Transfer
-34130 Transfer
-2342 Transfer
77298 Transfer
63943 Transfer
293609 Transfer
-11194 Transfer
-10745 Transfer
108758 Transfer
34173 Transfer
31884 Transfer
56562 Transfer
-66029 Transfer
-24708 Transfer
9304 Transfer
344901 Transfer
105243 Transfer
-96359 Transfer
180000 Transfer
-433 Transfer
270000 Transfer
90000 Transfer
-442 Transfer
2413869 Transfer
-2371714 Transfer
90000 Transfer
13776467
13678566
13520770
13410579
13276642
13423274
13535657
13448923
13441620
13377782
13275391
13241261
13238919
13316217
13380160
13673769
13662575
13651830
13760588
13794761
13826645
13883207
13817178
13792470
13801774
14146675
14251918
14155559
14155559
10982876
11162876
11162443
11432443
11522443
11522001
13935870
11564156
11654156
% of total
shares
of the
Company
1.48
1.47
1.45
1.44
1.42
1.44
1.45
1.44
1.44
1.44
1.42
1.42
1.42
1.43
1.44
1.47
1.47
1.46
1.48
1.48
1.48
1.49
1.48
1.48
1.48
1.52
1.53
1.52
1.52
1.18
1.20
1.20
1.23
1.24
1.24
1.50
1.24
1.25
Cumulative Shareholding
during the Year
Name of the Share Holder
Date
Sl.
No.
Reason
Increase/
Decrease
in share
holding
No of
Shares
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
06/05/2016
13/05/2016
13/05/2016
20/05/2016
20/05/2016
27/05/2016
03/06/2016
03/06/2016
10/06/2016
10/06/2016
17/06/2016
24/06/2016
24/06/2016
30/06/2016
30/06/2016
01/07/2016
08/07/2016
08/07/2016
15/07/2016
22/07/2016
22/07/2016
29/07/2016
29/07/2016
05/08/2016
05/08/2016
12/08/2016
12/08/2016
19/08/2016
19/08/2016
26/08/2016
02/09/2016
02/09/2016
09/09/2016
09/09/2016
16/09/2016
16/09/2016
23/09/2016
23/09/2016
30/09/2016
-230 Transfer
192 Transfer
-135000 Transfer
4200 Transfer
-90115 Transfer
-90000 Transfer
60000 Transfer
-20919 Transfer
16800 Transfer
-59747 Transfer
-51170 Transfer
37 Transfer
-48224 Transfer
200 Transfer
-9800 Transfer
90000 Transfer
90046 Transfer
-57876 Transfer
-50512 Transfer
63091 Transfer
-180049 Transfer
11500 Transfer
-1945 Transfer
231500 Transfer
-150650 Transfer
471 Transfer
-275 Transfer
4615 Transfer
-65 Transfer
187500 Transfer
838495 Transfer
-19154 Transfer
75005 Transfer
-6785 Transfer
216500 Transfer
-10256 Transfer
232000 Transfer
-680 Transfer
123000 Transfer
11653926
11654118
11519118
11523318
11433203
11343203
11403203
11382284
11399084
11339337
11288167
11288204
11239980
11240180
11230380
11320380
11410426
11352550
11302038
11365129
11185080
11196580
11194635
11426135
11275485
11275956
11275681
11280296
11280231
11467731
12306226
12287072
12362077
12355292
12571792
12561536
12793536
12792856
12915856
% of total
shares
of the
Company
1.25
1.25
1.24
1.24
1.23
1.22
1.22
1.22
1.22
1.22
1.21
1.21
1.21
1.21
1.20
1.21
1.22
1.22
1.21
1.22
1.20
1.20
1.20
1.23
1.21
1.21
1.21
1.21
1.21
1.23
1.32
1.32
1.33
1.33
1.35
1.35
1.37
1.37
1.39
123
Name of the Share Holder
Date
Sl.
No.
30/09/2016
07/10/2016
07/10/2016
14/10/2016
14/10/2016
21/10/2016
21/10/2016
28/10/2016
28/10/2016
04/11/2016
04/11/2016
11/11/2016
11/11/2016
18/11/2016
18/11/2016
25/11/2016
25/11/2016
02/12/2016
02/12/2016
09/12/2016
16/12/2016
23/12/2016
23/12/2016
30/12/2016
30/12/2016
06/01/2017
06/01/2017
13/01/2017
13/01/2017
20/01/2017
20/01/2017
27/01/2017
27/01/2017
03/02/2017
10/02/2017
10/02/2017
17/02/2017
17/02/2017
24/02/2017
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
124
Reason
Increase/
Decrease
in share
holding
-220454 Transfer
82503 Transfer
-155704 Transfer
7500 Transfer
-277964 Transfer
80916 Transfer
-369500 Transfer
4254 Transfer
-75000 Transfer
58198 Transfer
-6000 Transfer
513603 Transfer
-8490 Transfer
30415 Transfer
-8840 Transfer
26181 Transfer
-49 Transfer
160045 Transfer
-2964 Transfer
-193767 Transfer
-99788 Transfer
143162 Transfer
-3654 Transfer
230064 Transfer
-175 Transfer
39004 Transfer
-114 Transfer
136000 Transfer
-74001 Transfer
211500 Transfer
-810456 Transfer
135000 Transfer
-943300 Transfer
-209705 Transfer
100834 Transfer
-325551 Transfer
180000 Transfer
-249121 Transfer
17549 Transfer
Cumulative Shareholding
during the Year
No of
Shares
12695402
12777905
12622201
12629701
12351737
12432653
12063153
12067407
11992407
12050605
12044605
12558208
12549718
12580133
12571293
12597474
12597425
12757470
12754506
12560739
12460951
12604113
12600459
12830523
12830348
12869352
12869238
13005238
12931237
13142737
12332281
12467281
11523981
11314276
11415110
11089559
11269559
11020438
11037987
% of total
shares
of the
Company
1.36
1.37
1.35
1.35
1.32
1.33
1.29
1.29
1.29
1.29
1.29
1.35
1.35
1.35
1.35
1.35
1.35
1.37
1.37
1.35
1.34
1.35
1.35
1.38
1.38
1.38
1.38
1.39
1.39
1.41
1.32
1.34
1.24
1.21
1.22
1.19
1.21
1.18
1.18
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
10
SBI MAGNUM EQUITY FUND
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
24/02/2017
03/03/2017
03/03/2017
10/03/2017
10/03/2017
17/03/2017
17/03/2017
24/03/2017
31/03/2017
At the end of the year
Shareholding at the
beginning of the Year
08/04/2016
08/04/2016
15/04/2016
22/04/2016
29/04/2016
29/04/2016
06/05/2016
13/05/2016
13/05/2016
20/05/2016
27/05/2016
03/06/2016
10/06/2016
10/06/2016
17/06/2016
24/06/2016
30/06/2016
30/06/2016
01/07/2016
01/07/2016
08/07/2016
15/07/2016
15/07/2016
22/07/2016
22/07/2016
29/07/2016
Reason
Increase/
Decrease
in share
holding
-438145 Transfer
34753 Transfer
-410548 Transfer
286 Transfer
-52912 Transfer
48435 Transfer
-463101 Transfer
-645440 Transfer
-97980 Transfer
113173 Transfer
-4665 Transfer
2374 Transfer
21410 Transfer
18654 Transfer
-3871 Transfer
7950 Transfer
1690 Transfer
-12860 Transfer
26274 Transfer
176408 Transfer
42472 Transfer
3696 Transfer
-16162 Transfer
61956 Transfer
111722 Transfer
175758 Transfer
-110 Transfer
144 Transfer
-7615 Transfer
14355 Transfer
578 Transfer
-297 Transfer
5644 Transfer
-1211 Transfer
21606 Transfer
Cumulative Shareholding
during the Year
No of
Shares
10599842
10634595
10224047
10224333
10171421
10219856
9756755
9111315
9013335
9013335
4716815
% of total
shares
of the
Company
1.14
1.14
1.10
1.10
1.09
1.10
1.05
0.98
0.97
0.97
0.51
4829988
4825323
4827697
4849107
4867761
4863890
4871840
4873530
4860670
4886944
5063352
5105824
5109520
5093358
5155314
5267036
5442794
5442684
5442828
5435213
5449568
5450146
5449849
5455493
5454282
5475888
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.54
0.55
0.55
0.55
0.55
0.57
0.58
0.58
0.58
0.58
0.58
0.58
0.58
0.59
0.59
0.59
125
Name of the Share Holder
Date
Sl.
No.
05/08/2016
12/08/2016
19/08/2016
26/08/2016
26/08/2016
02/09/2016
09/09/2016
16/09/2016
23/09/2016
23/09/2016
30/09/2016
30/09/2016
07/10/2016
14/10/2016
21/10/2016
28/10/2016
04/11/2016
11/11/2016
18/11/2016
18/11/2016
25/11/2016
02/12/2016
09/12/2016
09/12/2016
16/12/2016
23/12/2016
30/12/2016
06/01/2017
06/01/2017
13/01/2017
20/01/2017
20/01/2017
27/01/2017
03/02/2017
03/02/2017
10/02/2017
10/02/2017
17/02/2017
24/02/2017
03/03/2017
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
126
Reason
Increase/
Decrease
in share
holding
17140 Transfer
15398 Transfer
7226 Transfer
51168 Transfer
-212 Transfer
90347 Transfer
65528 Transfer
81430 Transfer
63313 Transfer
-3 Transfer
52882 Transfer
-3 Transfer
266010 Transfer
14357 Transfer
265731 Transfer
50788 Transfer
20453 Transfer
166394 Transfer
148356 Transfer
-7400 Transfer
151330 Transfer
161931 Transfer
78939 Transfer
-8240 Transfer
146194 Transfer
300692 Transfer
294025 Transfer
633331 Transfer
-1091 Transfer
93818 Transfer
249920 Transfer
-14001 Transfer
45581 Transfer
109339 Transfer
-3592 Transfer
152485 Transfer
-254 Transfer
127874 Transfer
321331 Transfer
167275 Transfer
Cumulative Shareholding
during the Year
No of
Shares
5493028
5508426
5515652
5566820
5566608
5656955
5722483
5803913
5867226
5867223
5920105
5920102
6186112
6200469
6466200
6516988
6537441
6703835
6852191
6844791
6996121
7158052
7236991
7228751
7374945
7675637
7969662
8602993
8601902
8695720
8945640
8931639
8977220
9086559
9082967
9235452
9235198
9363072
9684403
9851678
% of total
shares
of the
Company
0.59
0.59
0.59
0.60
0.60
0.61
0.61
0.62
0.63
0.63
0.63
0.63
0.66
0.67
0.69
0.70
0.70
0.72
0.73
0.73
0.75
0.77
0.78
0.78
0.79
0.82
0.85
0.92
0.92
0.93
0.96
0.96
0.96
0.97
0.97
0.99
0.99
1.00
1.04
1.06
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
11
THE NEW INDIA ASSURANCE
COMPANY LIMITED
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat equity etc.)
10/03/2017
10/03/2017
17/03/2017
24/03/2017
24/03/2017
31/03/2017
31/03/2017
At the end of the year
Shareholding at the
beginning of the Year
08/04/2016
15/04/2016
11/11/2016
17/02/2017
24/02/2017
03/03/2017
10/03/2017
17/03/2017
24/03/2017
31/03/2017
At the end of the year
Reason
Increase/
Decrease
in share
holding
50960 Transfer
-15 Transfer
669838 Transfer
609 Transfer
-233997 Transfer
99555 Transfer
-9581 Transfer
19217 Transfer
27500 Transfer
880000 Transfer
-31129 Transfer
-45217 Transfer
-66233 Transfer
-36669 Transfer
-117734 Transfer
-56000 Transfer
-51476 Transfer
(v) Shareholding of Directors and Key Managerial Personnel:
Shareholding at the
beginning of the year
No. of
shares
At the Beginning of the year
10-Feb-17
1,025,000
(25000)
% of total
Shares
of the
Company
0.11
Cumulative Shareholding
during the Year
No of
Shares
9902638
9902623
10572461
10573070
10339073
10438628
10429047
10429047
8758786
8778003
8805503
9685503
9654374
9609157
9542924
9506255
9388521
9332521
9281045
9281045
% of total
shares
of the
Company
1.06
1.06
1.13
1.13
1.11
1.12
1.12
1.12
0.94
0.94
0.95
1.04
1.03
1.03
1.02
1.02
1.01
1.00
0.99
0.99
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
Sl.
No.
1
2
Name of Director / KMP
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):
At the end of the year
At the beginning of the year
26-Aug-16 (ESOP Exercise)
72,056
35,000
0.01
1,000,000
0.11
At the End of the year
107,056
0.01
127
Sl.
No.
Name of Director / KMP
3
4
5
6
7
8
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):
D. K. SEN
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. V. SATISH
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. 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):
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
26-Aug-16 (ESOP Exercise)
174,000
15,000
% of total
Shares
of the
Company
0.02
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
26-Aug-16 (ESOP Exercise)
55,350
10,000
0.01
189,000
0.02
At the End of the year
At the beginning of the year
30,703
0.00
65,350
0.01
At the End of the year
At the beginning of the year
42,875
0.00
30,703
0.00
At the End of the year
At the beginning of the year
1,629
0.00
42,875
0.00
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
750
0.00
128
Sl.
No.
9
10
11
12
13
14
Name of Director / KMP
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):
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):
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):
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
150
% 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
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
At the End of the year
At the beginning of the year
200
0.00
0.00
0.00
150
–
100
–
At the End of the year
At the beginning of the year
100
0.00
200
0.00
At the End of the year
100
0.00
129
Sl.
No.
15
16
17
18
Name of Director / KMP
THOMAS MATHEW T.
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):
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):
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):
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):
19
NARAYANAN KUMAR
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
SANJEEV AGA
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
100
% 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
100
0.00
100
0.00
At the End of the year
At the beginning of the year
03-Feb-17
100
21000
0.00
100
0.00
At the End of the year
At the beginning of the year
100
0.00
21,100
0.00
At the End of the year
As on date of appointment
as Director
17-Jun-16
–
1,000
100
0.00
At the End of the year
As on date of appointment
as Director
13-May-16
3000
1,000
0.00
At the End of the year
3,000
0.00
130
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
23,140
% of total
Shares
of the
Company
0.00
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
Sl.
No.
21
Name of Director / KMP
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):
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)
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)
822.40
13102.08
–
–
–
–
822.40
13102.08
5595.91
5572.36
–
–
23.55
845.95
–
–
845.95
7984.64
11272.18
(79.80)
–
(3367.33)
9734.75
–
–
9734.75
–
–
–
–
–
–
–
–
–
–
–
–
–
13924.48
–
–
13924.48
13580.55
16844.54
(79.80)
–
(3343.79)
10580.70
–
–
10580.70
* Principal amount mentioned includes interest due but not paid and interest acrrued but not due. Note 60 [C] & Note 60 [J]
^ Addition during the financial year includes interest accrued but not due
131
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:
A. REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND / OR MANAGER:
Particulars of Remuneration
A M NAIK
S N
SUBRAHMANYAN
Name of MD / WTD / Manager
SHAILENDRA
ROY
R SHANKAR
RAMAN
D. K. SEN
M.V SATISH
` crore
Total
Amount
Gross salary
(a) Salary as per provisions
contained in section 17(1)
of the Income-tax Act, 1961
3.36
1.73
1.41
1.29
1.01
1.01
9.81
(b) Value of perquisites u/s
19.27~
7.18
3.15
2.98
0.37
0.63
14.57
–
–
–
18.24
–
38.04~
–
–
–
11.29
–
3.51
–
–
–
7.41
–
2.38
–
–
–
5.84
–
1.93
–
–
–
4.82
–
1.57
–
–
–
–
–
–
4.32
–
1.44
51.92
–
48.87
Sl.
no.
1
2
3
4
5
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 (Retirement benefits,
Contribution to Provident Fund
& Superannuation Fund)
Total (A)
Ceiling as per the Act
144.18
598.09
~ Includes encashment of accumulated past service leave ` 32.21 crore and perquisite value related to employee stock options exercised
23.71
14.35
12.04
78.91
7.77
7.40
during the year in respect of stock options granted over the past several years by a subsidiary company - ` 19.01 crore.
B. REMUNERATION TO OTHER DIRECTORS
Sl.
no.
Particulars of
Remuneration
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
M M
Chitale
Subodh
Bhargava
M
Damodaran
Vikram
Singh
Mehta
Sushobhan
Sarker
Adil
Zainulbhai
Akhilesh
Gupta
Bahram
Vakil *
Swapan
Dasgupta
%
Sunita
Sharma
Thomas
Mathew T
Ajay
Shankar
Subrmanian
Sarma
Naina Lal
Kidwai
Sanjeev
Aga $
Narayanan
Kumar @
Name of Directors
` crore
Total
Amount
0.081
0.067
0.066
0.060
0.062
0.055
0.040
0.380
0.495
0.339
0.322
0.342
0.150
0.165
0.072
0.065
0.310
0.220
NIL
NIL
0.055
0.053
0.028
0.704
0.150
0.191
0.104
0.461
0.562
0.405
0.382
0.404
0.205
0.205
0.382
0.285
NIL
0.205
0.244
0.132
0.067
0.223
0.290
0.290
0.404
0.205
0.205
0.010
0.038
0.050
0.108
0.060
0.060
0.146
0.146
0.461
0.562
0.405
0.382
0.382
0.285
0.000
NIL
0.000
0.244
0.000
0.132
0.205
3.168
0.000
3.872
0.115
0.381
0.000
0.496
4.368
148.548
657.90
$ appointed as a Director w.e.f. 25.5.2016
% ceased to be a Director w.e.f. 15.5.2016
@ appointed as a Director w.e.f. 27.5.2016
# Payable to respective Institutions they represent.
* ceased to be a Director w.e.f. 1.8.2016
132
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD / MANAGER / WTD
Sl.
no.
1
2
3
4
5
Particulars of Remuneration
Key Managerial Personnel
CEO
Company
Secretary
(N. Hariharan)
CFO
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
Not Applicable
0.99
0.05
–
–
–
–
–
0.07
1.11
Not Applicable
` crore
Total
0.99
0.05
–
–
–
–
–
0.07
1.11
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type
Section of the
Companies Act
Brief
Description
Details of
Penalty/
Punishment/
Compounding
fees imposed
Authority [RD/
NCLT/COURT]
Appeal made,
if any (give
Details)
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTORS
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
NIL
NIL
NIL
133
Annexure ‘G’ to the Board Report
DIVIDEND DISTRIBUTION POLICY
INTRODUCTION
As per Regulation 43A of the Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, prescribed Listed
Companies are required to frame a Dividend Distribution
Policy.
PURPOSE
The purpose of this Policy is to regulate the process of
dividend declaration and its pay-out by the Company
which would ensure a regular dividend income for the
shareholders and long term capital appreciation for all
stakeholders of the Company.
AUTHORITY
This Policy has been adopted by the Board of Directors of
Larsen & Toubro Limited (‘the Company’) at its Meeting
held on 22nd November, 2016. The Policy shall also be
displayed in the annual reports and also on the website of
the Company.
FORMS OF DIVIDENDS
The Companies Act provides for two forms of Dividend:
•
Final Dividend
The final dividend is paid once for the financial
year after the annual accounts are prepared. The
Board of Directors of the Company has the power
to recommend the payment of final dividend to the
shareholders for their approval at the general meeting
of the Company. The declaration of final dividend
shall be included in the ordinary business items that
are required to be transacted at the Annual General
Meeting.
•
Interim Dividend
This form of dividend can be declared by the Board of
Directors one or more times in a financial year as may
be deemed fit by it. The Board of Directors shall have
the absolute power to declare interim dividend during
the financial year, in line with this policy. The Board
should consider declaring an interim dividend after
finalization of quarterly/ half yearly financial results.
This would be in order to supplement the annual
dividend or to reward shareholders in exceptional
circumstances.
QUANTUM OF DIVIDEND AND DISTRIBUTION
Dividend payout in a particular year shall be determined
after considering the operating and financial performance
134
of the Company and the cash requirement for financing
the Company’s future growth. In line with the past
practice, the payout ratio is expected to grow in
accordance with the profitable growth of the Company
under normal circumstances.
DECLARATION OF DIVIDEND
Dividend shall be declared or paid only out of-
1) Current financial year’s profit:
a) after providing for depreciation in accordance
with law;
b) after transferring to reserves such amount as may
be prescribed or as may be otherwise considered
appropriate by the Board at its discretion
2) The profits for any previous financial year(s) after
providing for depreciation in accordance with law and
remaining undistributed; or
3) out of 1) & 2) both.
The circumstances under which shareholders may not
expect dividend/or when the dividend could not be
declared by the Company shall include, but are not limited
to, the following:
a. Due to operation of any other law in force;
b. Due to losses incurred by the Company and the Board
considers it appropriate not to declare dividend for
any particular year;
c. Due to any restrictions and covenants contained in
any agreement as may be entered with the Lenders
and
d. Due to any default on part of the company.
FACTORS AFFECTING DIVIDEND DECLARATION:
The Dividend pay-out decision of any company, depends
upon certain external and internal factors-
External Factors:
•
Legal/ Statutory Provisions and Regulatory concern:
The Board should keep in mind the restrictions
imposed by Companies Act, any other applicable
laws with regard to declaration and distribution
of dividend. Further, any restrictions on payment
of dividends by virtue of any regulation as may be
applicable to the Company may also impact the
declaration of dividend.
•
State of Economy: The Board will endeavor to retain
larger part of profits to build up reserves to absorb
future shocks in case of uncertain or recessionary
economic conditions and in situation where the policy
decisions of the Government have a bearing on or
affect the business of the Company.
•
• Nature of Industry: The nature of industry in which
a company is operating, influences the dividend
decision. Like the industries with stable demand
throughout the year are in a position to have stable
earnings and thus declare stable dividends.
•
Taxation Policy: The tax policy of a country also
influences the dividend policy of a company. The
rate of tax directly influences the amount of profits
available to the company for declaring dividends.
• Capital Markets: In case of unfavorable market
conditions, Board may resort to a conservative
dividend pay-out in order to conserve cash outflows
and reduce the cost of raising funds through alternate
resources.
Internal Factors:
Apart from the various external factors, the Board shall
take into account various internal factors including the
financial parameters while declaring dividend, which inter
alia will include -
• Magnitude and Stability of Earnings: The extent of
stability and magnitude of company’s earnings will
directly influence the dividend declaration. Thus, the
dividend is directly linked with the availability of the
earnings (including accumulated earnings) with the
company.
•
Liquidity Position: A company’s liquidity position also
determines the level of dividend. If a company does
not have sufficient cash resources to make dividend
payment, then it may reduce the amount of dividend
pay-out.
Future Requirements: If a company foresees some
profitable investment opportunities in near future
including but not limited to Brand/ Business
Acquisitions, Expansion / Modernization of existing
businesses, Additional investments in subsidiaries/
associates of the Company, Fresh investments into
external businesses, then it may decide for lower
dividend payout and vice-versa.
•
Leverage profile and liabilities of the Company.
• Any other factor as deemed fit by the Board.
RETAINED EARNINGS
The portion of profits not distributed among the
shareholders but retained and used in business are termed
as retained earnings. It is also referred to as ploughing
back of profit. The Company should ensure to strike
the right balance between the quantum of dividend
paid and amount of profits retained in the business for
various purposes. These earnings may be utilized for
internal financing of its various projects and for fixed as
well as working capital. Thus the retained earnings shall
be utilized for carrying out the main objectives of the
company and maintaining adequate liquidity levels.
PARAMETERS THAT SHALL BE ADOPTED WITH
REGARD TO VARIOUS CLASSES OF SHARE
The Company does not have different classes of shares
and follows the ‘one share, one vote’ principle.
REVIEW & AMENDMENT
The Policy shall be reviewed as and when required
to ensure that it meets the objectives of the relevant
legislation and remains effective. The Executive
Management Committee has the right to change/amend
the policy as may be expedient taking into account the law
for the time being in force.
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MANAGEMENT
DISCUSSION AND
ANALYSIS
Overview of World Economy:
In 2016 the global economy witnessed slow
pace of growth and uncertainties with developed
countries adopting protectionist policies. The
current year is showing signs of revival of
investment climate as the capital markets gain
buoyancy, signs of recovery in manufacturing and
trade, likely upside in the economic activity in
Japan driven by healthy net exports and European
countries witnessing traction in domestic demand
paving way for growth. Advanced economies are
expected to make small step-ups while growth in
emerging economies continue to drive the global
growth projections. China is expected to showcase
favourable growth with strong policy support. Oil
prices have shown traction in the recent months
and are expected to be range bound thus bringing
down the level of budget deficits in Middle East,
allowing the Governments to have additional fiscal
space to increase investments.
However protectionist policies by the US and
geopolitical risks persist that may pose impediment
in the global economic recovery. The advanced
economies are facing persistent structural
problems such as low productivity growth and
high income inequality. Against this backdrop,
economic policies have an important role to play
in staving off downside risks and securing the
recovery.
Overview of Indian Economy:
Amidst the global backdrop, Indian economy
stood steadfast on its growth trajectory. In the
framework of robust macro-economic stability,
the year 2016-17 was marked by a few but robust
policy developments such as passage of bankruptcy
code, constitutional amendments paving way for
GST and demonetization of notes in the pursuit
of enhancing formalization of various segments of
the economy. The GDP growth for the year 2016-
17 at 7.1% was lower as compared to the previous
year on account of weak investment sentiments
even though Government enhanced spending and
exports rose over the last few months of the year.
Demonetization had a temporary adverse impact,
as labour- intensive construction sector contracted.
Growth in gross fixed capital formation slowed
sharply in FY17 to 27.1% from 29.3% a year ago.
In the fiscal year 2017-18 India is expected to
grow to around 7.2% provided macroeconomic
parameters are favourable. There is an uptick in
India’s exports based on global economic activity.
Consumption is also expected to witness traction
as the economy catches up after demonetization
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and cheaper borrowing cost. Emphasis of the
budget proposals on growth simulation through
infrastructure development, focus on affordable
housing, digitalization of the economy, Make in
India campaign are expected to start showing
positive results in the later part of the current year.
Introduction of GST will create a common market,
improve tax compliance and governance, thereby
boost investment and growth.
Certain downside risks do persist, especially on
the banking sector front. High levels of NPAs
and strained balance sheets of the banks pose
constraints to funding for new investments.
Structural reforms for debottlenecking the
economic growth, bringing fiscal prudence in the
state budgets and faster implementation of various
development programmes of the Government are
very important for speedy revival of investment
climate.
Business Scenario:
The performance in the current year 2017-18 lays
reliance on significant pick-up in Government led
expenditure on development of rural and urban
infrastructure, fast tracking of some defence orders
and revival of domestic manufacturing sector.
Select international markets continue to hold
importance for business prospects of Hydrocarbon
and Infrastructure segment.
The Company has identified certain key thrust
areas and strategies to focus on the upcoming
opportunities.
• Strengthening execution and operational
efficiency: The Company is focused on bringing
about cost & operational efficiencies for
achieving profitable growth in the competitive
business environment. The emphasis is on better
contract and project management. The endeavor
is to lower costs while maintaining quality and
managing complexity.
• Business value unlocking: The Company
reviews its portfolio and looks for opportunities
to divest from non-core businesses for unlocking
value. The Company is focused on shareholder
value creation and enhancing returns through
monetization of some of the road concessions
and the port assets as a part of its strategic plan.
• Emphasis on improving Working capital
level: The Company will continue to focus on
reducing the working capital levels by emphasis
on speedy customer collections, accelerating
invoicing of work completed and reducing
inventory levels.
• Digitalization: The Company has identified
digitalization as a key driver to enhance its
global competitiveness. Various digitalization
initiatives are under way to aid project
monitoring and enhancing efficiencies. The
Company is threading in various digital strategies
into the business model and also simultaneously
building relevant capabilities to harness the true
power of digital assets.
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Infrastructure Business
For FIFA 2022, L&T is building the Al Rayyan Stadium, using environmentally-friendly building materials and practices. L&T has been
associated with several prominent stadiums in India and abroad.
Infrastructure Business Scenario
Indian Construction Sector: A major push from
the Government on the roads, railways, and urban
infrastructure segments has helped construction
companies improve their order book position.
The sector’s pace of recovery is, however, likely
to be modest and will be linked to the on-ground
impact of the policy measures including the release
of 75% arbitral award as well as the availability
of funds for project development. Short term
demonetisation will have a negative impact on
construction activities; however, the impact should
subside and the situation is expected to normalize
from Q1 of FY 2017-18 onwards. Significant
improvements in the liquidity profile and credit
metrics of construction companies will take time
and will be contingent on an improvement in the
working capital cycle and in the pace of execution,
besides their ability to deleverage by raising
long-term funds through stake sale or equity
placements. Revival of private sector participation
will be key to faster infrastructure development.
Railways will be one of the biggest drivers of
infrastructure capex over the medium term.
Global Construction Sector: The story is more
mixed. Investments are projected to increase
through 2018, in line with a projected rise in oil
prices, but overall spending levels will remain far
below the historic highs of 2012 and 2013. Market
consolidation will rebound, larger firms that
survived the last few years now face pressure from
shareholders, analysts, and other stakeholders to
continue creating value. Construction players in
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rapidly growing economies have spent the past
decade focusing on their home markets, steadily
building up cash positions and internal expertise.
Now, as growth eases in their home markets, they
are expanding outward and seeking to compete
against established global players.
Digital in Construction
L&T Construction is re-inventing its core business
operations by leveraging Digital technologies.
A range of solutions targeted at reducing
operating costs, improving productivity, enhancing
safety, and reducing execution time are being
implemented.
Real time monitoring and analysis of Plant and
Machinery operations powered by Internet of
Things have started providing actionable data and
insights that enable improvement in equipment
utilization and productivity.
Project monitoring enabled by mobile technologies
and advanced analytics are being rolled out across
multiple project sites targeted at delivering the
right insights to operations personnel to improve
project progress.
Digital engineering and design have been set in
motion with Building Information Management,
The 1600-bed multi-speciality Safdarjung Hospital in Delhi.
Augmented and Virtual Reality based solutions.
3D scanning technologies such as LiDAR,
Photogrammetry, satellite remote sensing are
enabling accurate surveys in different terrains,
resulting in better quantity estimations.
Immersive safety training powered by Virtual
Reality is being developed. RFID technologies are
being used for designing solutions for material
tracking and management, and worker safety.
In our endeavor to improve the workmen
management system, linking of workmen database
with their Aadhar and bank accounts is also being
implemented.
All these digital solutions are throwing up a
breadth of rich data at a high velocity. Big data
analytics is the way forward for analyzing this data.
L&T Construction is setting up an Analytics center
of excellence with the right infrastructure and
experienced data scientists.
Implementation of these exciting solutions require
a highly engaged work force and L&T Construction
has been an early mover in this space. With 30,000
plus users and 2000 active groups, Workplace by
Facebook has been a new and successful platform
for collaboration and engagement since August
2016.
Digital is imperative for attaining competitive
advantage in today’s world of business. L&T
Construction will continue to focus on Digital for
building impactful solutions that fuel business
growth.
BUILDINGS AND
FACTORIES
Overview:
L&T’s Buildings & Factories (B&F) business vertical
is a market leader in the arena of Engineering,
Procurement and Construction (EPC) of airports,
hospitals, stadiums, hotels, institutional spaces,
IT parks, office buildings, elite residential
buildings, high rise structures, mass housing
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complexes, factory structures, cement plants and
industrial warehouses. B&F has the expertise to
offer ‘turnkey solutions’ right from ‘concept to
commissioning’ across all the business lines cited
above.
B&F’s competitive advantages include dedicated
engineering design centers, competency cells,
advanced formwork systems, mechanized project
execution, wide network of consultants & vendors,
digitized project control and a talented pool of
employees.
Business Environment Review
The previous calendar year was challenging for the
construction industry. Many of B&F’s customers,
specifically the private sector, deferred investment
plans due to uncertainties caused by various
economic developments. The liquidity crunch
that already existed was further aggravated by
demonetization and low-demand in the reality
sector induced longer gestation period for various
housing projects. In the international arena, the
dip in crude oil prices continued to have a major
impact on investments in the GCC sector. Most
of the anticipated Airport projects have been
deferred to the coming year. The results of the US
Presidential elections & Brexit created uncertainty
in the IT sector in India. The development of major
hospitals and other institutional buildings have
been deferred due to delays in budget allocations.
L&T builds a wide range of residential projects, from elite
towers to mass-housing complexes across the country.
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On the whole, the business scenario has been just
about reasonable.
Significant Initiatives
B&F has embraced the digital way to effectively
control and monitor various aspects of operations
to cut down costs and improve productivity.
Value engineering, operational excellence,
mechanized execution and composite construction
methodologies have improved project cycle times,
enhanced profitability and delivered quality. Latest
technologies like Robotics in construction and 3D
printing are being explored.
Safety is imbibed as a ‘way of culture’ and is
being implemented across all projects to educate
and sensitize all on hazardous project activities
and corresponding preventive measures. A Safety
Innovation School, the first of its kind by any
construction company in India, has been set up
to impart safety training. A team of experts has
been formed to study futuristic businesses and
formulate suitable strategies to gain a competitive
edge.
Awards & Recognitions:
1.
Two Projects were awarded the prestigious
‘British Sword of Honor’ from The Royal
Society For Prevention of Accidents (RoSPA)
2.
Nine Projects bagged the Gold Awards from
The Royal Society For Prevention of Accidents
(RoSPA)
3.
Five Awards won from the Indian Concrete
Institute
4.
Three Projects bagged the Construction Week
Awards
5.
Certificate of appreciation for Excellence in
quality from Federation Of India Chamber Of
Commerce & Industry (FICCI)
Major Orders Secured and Under Execution
B&F has secured landmark projects from
prestigious clients, especially from various
State Governments of India. Leadership has
been maintained in the construction of various
commercial and residential buildings in the
country.
Major orders were secured from esteemed
customers for the construction of high rise
residential towers in western part of India.
Some of the key projects commissioned by B&F this
year are:
• Offices for IT companies
Technology Centre for a global oil major in Bangalore.
Outlook
To improve the country’s infrastructure and to
boost the economy, the Government has taken
several good steps and B&F is optimistic and
buoyant to capture the momentum. A few positive
factors are furnished below:
• “Housing for all” coupled with the Government’s
credit linked subsidy schemes and a rising middle
class will drive demand for affordable houses
• The GST reform should help in streamlining the
• Airport at Cochin
manufacturing sector
• Safdarjung Hospital and medical colleges for the
• Budget allocation for various AIIMS, IITs and
Govt. of Odisha.
other national institutions
• Secretariat for the Govt. of Andhra Pradesh
• Rise in medical tourism is expected to generate
• High rise residential towers in various parts of
the country
• Cement Plants
more investments
• Rising internet usage has increased the
requirement for data centers
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B&F is poised for steady growth in the forthcoming
years against the backdrop of a reviving economy,
improving business climate, healthy order book,
wide customer network, strong organizational
setup, efficient supply chain management,
digitized work culture, requisite resources and a
skilled workforce.
Larsen & Toubro Oman LLC (LTO): Subsidiary
Company
LTO, a JV 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 65% in the Company.
The oil price impact has limited the investment
plans in the country.
TRANSPORTATION
INFRASTRUCTURE
Overview:
The Transportation Infrastructure business vertical
is well-diversified in terms of its product range
and geography of operations, spread across
India and various GCC countries. The business
offers its services in the fields of Roads, Runways
(Airside Infrastructure) & Elevated Corridors
(RREC), Railways Construction, Railways Systems &
International Infrastructure.
The business leverages its vast experience in Project
Management, Engineering Design & Construction
Management to achieve operational efficiency.
It has Engineering Design Centers in Mumbai,
Faridabad and Chennai and an Offshore
Engineering Centre in Mumbai, besides Area
Offices in India and GCC countries. In addition, the
business has a competency development center at
Kanchipuram, and undertakes workmen training at
CSTI, Ahmedabad.
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L&T has deployed a new track construction machine capable
of laying 2 km of tracks per day - setting a benchmark in
high-speed rail construction.
Business environment
Transportation Business is keen to continue
building a robust order book which includes orders
in both Road and Railway sectors.
The Railway Business has been awarded the
largest ever composite package in the history of
the Indian Railways by DFCCIL (Dedicated Freight
Corridor Corporation of India Limited) for track
laying, electrification and associated S&T works
from Dadri - Rewari for 322 TKms (CTP 14) and
electrification of 881 TKms from Mughal Sarai to
New Bhaupur Section, Uttar Pradesh for Package
CP 204.
The Road business has secured various orders for
the construction of highways during the year.
On the International front, the business
secured the extension of the Tripoli Road and
Improvements of the Algeria Road project in UAE.
The major roads orders received in India are:
the rehabilitation and upgradation of the
Veer (Wadpale) to Bhogaon Khurd section of
NH-17 from PWD and the rehabilitation and
augmentation of the Helwak to Karad section of
NH-166E to 2-lane for a length of 48 Kms from
MORTH.
Projects completed during the year include:
• Gr.149 Barauni - Katihar Railway Electrification
Project (437 TKM).
• Bina-Ganj Basoda 3rd Line project: Composite
Railway Project (52 RKM).
• Villupuram - Vriddhachalam Doubling project:
Composite Railway Project (54 RKM).
• Vriddhachalam - Ariyalur Doubling project:
Composite Railway Project (52 RKM).
A few other projects which are in the final stage of
completion include:
• Development of the Unnao Lucknow expressway
63 Km, 6 Lane Expressway in Uttar Pradesh.
• Kanaktora Jharsuguda Road Project 66.9 Km,
2 Lane Highway in Odisha.
• Maharashtra/Karnataka Border to Sangareddy
Road Project 142 Km, 4 Lane Highway in
Telangana and Karnataka
• Sambalpur Rourkela Road Project 162 Km,
4 Lane Highway in Odisha.
• Airside works at Kannur international Airport
– 3.4 Km Runway and Airside Development in
Kerala
During the year, Transportation Infrastructure
business bagged 12 International Safety awards
and 4 prestigious safety awards from National
Safety Council (NSC), India.
Digital Initiatives
Technology is the key to achieve operational
excellence and digital technologies are the
most promising to support business to optimize
its functions. A lot of thrust has been put on
developing and implementing digital solutions
for better visibility and superior decision making.
A host of solutions are being developed and
are being implemented for asset management,
project monitoring, material & resource
management; advanced sensors are being added
to automate equipment operations to achieve
better productivity and specialized P&M are
being added to the fleet to improve execution
process and quality. The 2D control system is
being implemented on Motor Graders in a few of
our projects. This system helps in controlling the
blade movement so as to significantly improve the
accuracy in grading while reducing the time and
effort.
Outlook
For Roads, Runways, (Airside Infrastructure) &
Elevated Corridors (RREC) Business
In the road sector, the budget allocation for
National Highways has been increased by 14% and
stepped up to ` 67,000 crore in 2017-18.
Around 2000 km of coastal roads have been
identified for construction which will help
accelerate the development of Coastal Economic
Zones.
The Ministry has targeted constructing 15,000 km
of national highways during 2017-18 that
translates into 41 km of road construction daily.
For Railway Business
Indian Railways are reportedly planning its
highest outlay of ` 1.31 lakh crore for FY 2017-18,
One of the many flyovers built by L&T in India.
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an increase over last year outlay of ` 1.21 lakh
crore.
balancing around USD 50 per barrel, the spending
cuts should be less impacted.
The opportunities for Railways SBG on the
mainline Railways will essentially come from the
tenders floated by RVNL and Zonal Railways which
are of significant size and high value and will be
on EPC mode with internationally accepted FIDIC
conditions.
Increased infrastructure investment, particularly in
the UAE, Qatar & Kuwait, should further support
the recovery in non-oil activity this year. Both
UAE and Qatar have firm deadlines by which they
need to deliver world class events that require
substantial new infrastructure.
The Railway SBG will focus on the remaining
packages of the Eastern DFC which includes 3
packages for systems and one package for Civil
and Track. Three more New Freight corridors
totaling 5773 RKM with investment of
` 3.74 lakh crore have been announced in the
Budget and are likely to fructify in next 5 years.
Indian Railways’ initiative Mission Electrification
envisages electrification of nearly 25,000 RKM
in 5yrs (2016-21). During the current year,
opportunities are expected to the tune of
` 20,000 crore for capacity augmentation in
2017-18 backed by innovative institutional
funding. In the electrification space, the business
intends to participate in ‘large value projects’ and
‘projects in EPC mode’.
High speed Rail Project connecting Mumbai –
Ahmedabad is emerging opportunity for this
business. Our Railway business has opportunities
in Track, Electrification and Signalling &
Telecommunication (S&T) works. Upcoming metros
projects will provide more business opportunities
for this segment.
The business is also targeting integrated systems
projects in various countries while exploring
opportunities in some select African countries.
Emphasis on integrated projects are in line with
the long term vision of the business which is to
become a full range system integrator in Railway
Projects.
For International business
The growth projection and development in Middle
East countries is mostly driven by the oil prices.
Looking at the recent prices of crude oil which is
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HEAVY CIVIL
INFRASTRUCTURE
Overview:
The Heavy Civil Infrastructure business vertical of
L&T Construction undertakes design, engineering
and construction of projects in several segments
that are crucial to the economy: Metros, Nuclear,
Hydel, Ports, Special Bridges, Tunnels and Defence.
The business has strong presence in India, the
Middle East, Bhutan and Bangladesh. In-house
design strengths and unique construction
methodology cells provide competent concept-
to-commissioning solutions to meet customers’
requirements.
Business environment
Infrastructure is a powerful lever for economic
growth, with both a positive short and long-term
impact. In the short-term, investment in
Lucknow Metro, one of the fastest completed metro rail
projects in india
infrastructure stimulates economic demand and
creates jobs. Over the medium and longer-terms,
well-designed infrastructure projects drive
productivity by deepening markets and making
economies more competitive.
Heavy Civil Infrastructure was able to report
organic growth of 25% YoY for the 5th
consecutive year, even though the general market
situation remained challenging. Due to challenging
markets, improving profitability, productivity
and flexibility became business’s core focus
areas in 2016. Actions were initiated to improve
cost efficiency, productivity and strengthen its
future competitiveness by, among other things,
re-structuring operations. The results of these
actions are expected to be visible in 2017.
Businesses of Heavy Civil Infrastructure are the
foundation of a modern economy and vital for
socio-economic development. The cornerstone
of Heavy Civil Infrastructure’s strategy relies on
strong focus for leaner construction practices and
commitment to customer satisfaction with the aim
to optimize the value chain of its customers and to
improve their competitiveness through increased
productivity and reliability.
Metros
The Heavy Civil Infrastructure business possesses
expertise in end-to-end engineering and
construction of elevated and underground metros
using sophisticated tunnelling techniques. It
ventured into metro rail construction in 2001 with
the prestigious Delhi Metro project. Since then,
L&T has emerged as the leading builder of metro
systems in the country, executing as many as 17
ongoing projects across 8 cities in India. L&T is also
involved in building major portions of the Riyadh
and Doha Metros. The business also specializes in
delivering metro projects on turnkey basis.
Areas of expertise:
• Elevated viaduct construction using segmental,
U-trough, I-girder methods and balanced
cantilever construction
• Underground tunnel construction using NATM,
cut and cover and TBM methods
Dome erection at the Kakrapar Atomic Power project, Gujarat
• Underground station construction using
top-down and bottom-up approaches
• Elevated metro stations with expertise in spine
beam concept (lean).
Defence
L&T Construction, is well geared with
comprehensive range of Engineering and
Construction Services to meet the specialized
needs of the Defence sector. With massive
investments planned by the Ministry of Defence for
developing world class systems, opportunities are
aplenty for L&T Construction, which is well placed
and equipped for execution.
The specialty of L&T Construction is to offer EPC
(Engineering Procurement Construction) solutions
with single-source responsibility for execution of
mega projects from concept to commissioning
under the realms of Infrastructure facilities for
Defence bases, underground facilities, niche
technologies, security & surveillance and training
facilities.
Nuclear Power
L&T is a leader in the Indian nuclear sector by
constructing the majority of the country’s nuclear
power plants. The business has developed
expertise in both Pressurised Heavy Water (PHWR)
and Light Water (LWR) reactor technologies with a
145
kind. The Company has pioneered several new
technologies for the construction of bridges such
as incremental launching, segmental construction,
cable stayed, precast, prestressed concrete, steel
and concrete composite construction. Apart from a
pan-India projects scape, the business has presence
in Malaysia, Dubai, Oman, Jordan and Bangladesh.
L&T has built the longest Extra dosed bridge in
India across river Narmada at Bharuch, Gujarat.
Currently L&T is building the longest extra dosed
bridge in the world at Patna, Bihar in a Joint
Venture with Daewoo and is undertaking 3 other
Iconic bridges across India and a major railway
bridge project at Khulna, Bangladesh.
Hydroelectric Power Plants
L&T’s Hydro Business is one of the most significant
players in the development of Hydroelectric Power
Plants and offers a comprehensive ‘Water to Wire’
range of services that facilitate the execution
of Hydroelectric Power Projects on an Engineer-
Procure-Construct basis in tough mountainous
terrains.
Areas of expertise:
• Diversion weirs, Barrages, Concrete / Earthen /
Rockfill Dams, including RCC (Roller-Compacted
Concrete) dams
• Underground tunnels of various geometry and
diameter (both concrete lined and steel lined)
• Open and Underground De-silting Chambers
• Large underground power and surface power
houses
• Pressure Shafts, Drop Shafts and Surge Shafts /
Surge Chambers
• Hydro-mechanical components such as gates,
penstocks, etc., including erection of
electro-mechanical equipment
• Specialised underground structures
An underground section of the Chennai Metro.
market share of 64%. With its proficiency, L&T is
attracting the global companies in the field of LWR
as tie-up partners to set up new plants in India.
It is currently executing civil works for a mega
order of 2 X 1000MW from NPCIL at Kudankulam
Nuclear Power Project (LWR), one of the largest
projects in India’s nuclear industry.
With such impeccable credentials, L&T is emerging
as a pioneer in supporting India’s plan of supplying
25% of electricity from nuclear power by 2050.
Areas of expertise:
• EPC solutions in civil, mechanical, electrical &
instrumentation in PHWR projects
• Expanding Engineering, Procurement and
Construction capability by venturing in to EPC
contracts in LWR
• Design capacity for end to end civil works
including seismic qualification, procurement and
construction services
• Expertise in Modular Construction Technology
Special Bridges
L&T has built some of the finest bridges across
challenging terrains, incorporating design features
that are among the most complex of their
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Ports
The L&T Ports Business unit has been a part
of building marine infrastructure that has
given a great fillip to marine and waterway
transportation. It is also one of the pioneers in
the EPC construction of ports in India since 1950s
thanks to which L&T’s expertise in marine works is
demonstrated all along India’s coastline.
L&T has significantly contributed to the
development of Ports by designing and executing
7000m berthing structures including Liquid
Jetties, Container Terminals, Multipurpose Berths
and Ferry Terminals. The company is proud to
have built 14000m breakwaters and handled
Armour rock of size 20T, Accropod – Max size 6.3
cum, the deepest breakwater (~18m) which is a
state-of-the-art construction having adopted the
innovative concept of partial replacement of rock
core with dredged sand in the construction of
breakwater. It has also executed other maritime
structures like Shipyards, Caissons, Long Span
Approach Trestles, Intake Structures which are
unique in nature.
L&T Geostructure
L&T GeoStructure is a unique entity, focusing
on deep foundations and ground engineering
business, with a fleet of sophisticated foundation
equipment. It has expertise in the areas of river
linking, marine structures and deep foundation-
supported bridges, basement & underground
structures, and deep shafts.
The gamut of unique activities include execution
of large diameter deep piles, marine piles, deep
diaphragm walls, secant pile walls, plastic concrete
cut-off walls, sheet piling, ground improvement,
foundation testing and geotechnical investigation.
Marquee Projects Commissioned
• CC17-Metros
New Orders
• Construction of Hydro Technical Structures for
Ph-2 of KKNPP at Kudankulam, Tamil Nadu
• 2 X 1,000 MW Kudankulam Nuclear Power
Project 3&4 Kudankulam, Tamil Nadu
• Construction of barrage across Godavari river
near Medigadda, Mahadevpur Karimnagar
District, Telangana
• Cable stayed Bridge across Durgam Cheruvu
Lake at Madhapur in Hyderabad in EPC.
• Ahmedabad Metro – UG PKG 2
Track Record
• 2.65 km of Cable Stay bridges completed,
11.82 km of Cable Stay bridges under
construction
• 2.16 km of Railway Bridges completed, 13.89 km
of Railway Bridges under construction
• Part of commissioned India’s first 1,000 MWe
nuclear power plant
• 8,080 MW of reactor containment structures
• 306 km of metro (including ongoing projects)
Across River Mandovi in Goa, L&T is building one of India’s
longest cable-stayed bridges.
• 8,315 MW of clean and green power
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• 90 km of tunnelling in difficult Himalayan
terrains
• 12 dams / barrages / weirs
• 7 Powerhouses including both underground and
surface structures
• LPG underground storage cavern 200 m below
ground level – one of the largest of its kind, and
the first of its kind in South Asia
Digital Initiatives
In order to optimise the cost and enhance
productivity, Heavy Civil Infrastructure has
implemented several digital initiatives including
P&M tracking and Monitoring, Project monitoring
& Control using mobile based applications, use of
E-Measurement books, Workmen tracking using
RFID, etc. BIM (Building Information Modelling) is
being extensively used in Metro projects for Design
and progress monitoring during execution. The
Business is exploring the possibility of using Drones
for survey for various projects.
Outlook
The Union budget 2017-18 has given a major
boost to the infrastructure sector. In the FY18
budget, the government has allocated a record
` 3.96 lakh crore to the infrastructure sector
which should spur economic activity. A majority
of this allocation has been ear-marked to build
Metros, Bridges, Hydro Power Projects and Tunnels,
which form the core expertise of the Heavy Civil
Infrastructure business. The Government intends
to build an effective infrastructure system to make
domestic economy more competitive as compared
to those of other emerging countries. With macros
improving, and measures to revive infrastructure
sector through new forms of awarding (Hybrid
Annuity Model/Swiss Challenge Mode) and new
forms of financing (REITs and InVITs), it is believed
there will be a revival of stranded projects and
easing of cash flows which will provide long
term growth visibility. Also, as ever Heavy Civil
Infrastructure business is focused towards EPC
projects.
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POWER TRANSMISSION &
DISTRIBUTION
Overview:
L&T’s Power Transmission and Distribution business
vertical is a leading EPC player in the field of power
transmission and distribution and solar energy.
It offers integrated solutions and end-to-end
services ranging from design, manufacture, supply,
installation and commissioning of Transmission
lines, Substations, Underground cable networks,
Distribution networks, Power quality improvement
projects, Infrastructure electrification, Solar PV
plants, Battery energy storage system and Mini/
micro grid projects. Besides being a dominant
player in the Indian market, the business enjoys
significant share and a strong reputation in the
Middle East, Africa and ASEAN 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 & Communication
backbone networks, Utility Power Distribution
and Power Quality Improvement works, complete
Electrical & Instrumentation solutions for various
infrastructure projects such as airports, metros, etc.
The Transmission Line business offers turnkey EPC
solutions in Overhead lines for Power Evacuation
India’s first 1200 kV Air-insulated Substation at Bina in
Madhya Pradesh.
and Transmission, bolstered by its state-of-the-
art tower manufacturing units at Puducherry,
Pithampur and Kanchipuram supplying over 1.3
lakh tones of tower components annually. The
Testing and Research station at Kanchipuram
accredited by NABL is one of the largest in Asia
and is also amongst the most renowned testing
centres in the world. (NABL: National Accreditation
Board for Testing and Calibration Laboratories).
The Solar business provides single point EPC
turnkey solution for solar PV related projects along
with Energy Storage Solutions. Its experience spans
across from flat to highly undulated as well as to
landfill topologies with specialized technologies
including designing & executing contours following
solar PV power plants. The solar business has
in-house capabilities of different module mounting
structure types such as Fixed Tilt, Seasonal Tilt
and HSAT to choose from for most optimal
solutions. As grid stability and power conditioning
requirements gain significance in the wake of large
scale renewable integration, standalone and PV
integrated storage solutions are being offered.
The international units of the business in the
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, Malawi, Botswana,
Malaysia and Thailand.
Business Environment
In 2016 – 17 too, the distribution sector in India
maintained the momentum it had gained during
the past years backed by several governmental
initiatives such as UDAY scheme. Supported by
central funding agencies, state utilities have
laid emphasis on strengthening their respective
distribution networks for better efficiency,
accountability and management. The business
continued to capitalize on these opportunities
and successfully maintained its leadership position
765 kV Gas-insulated Substation, Varanasi.
by securing urban and rural electrification orders
from West Bengal, Odisha, Bihar, Uttar Pradesh
and Karnataka under the Integrated Power
Development Scheme (IPDS) and Deen Dayal
Upadhyay Gram Jyoti Yojana (DDUGJY) scheme.
The business is privileged to be partner with the
central and state governments in illuminating
thousands of households in the economically
backward areas and electrify hundreds of villages.
In a large number of towns, it has significantly
improved the quality of power and reduced AT&C
losses through distribution reformation projects.
The EHV substation related opportunities in 400kV
& 765kV GIS/AIS segments were steady as central
and select state utilities concentrated 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. Gas and Air Insulated
Substation orders were received from PGCIL and
state utilities including a major substation for solar
power evacuation in the state of Karnataka. The
key substation projects commissioned include
765kV GIS at Srikakulam and the receiving
substation for Lucknow metro.
Transmission line projects have been executed for
PGCIL as well as major state transmission utilities
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230 kV double circuit transmission line at Abu Ali, Saudi Arabia.
viz. that of Uttar Pradesh, Chhattisgarh, West
Bengal, Punjab, Tamil Nadu, Bihar, Karnataka
etc. Major projects are also being executed for
private players. With its specialized transmission
line construction crew experienced in challenging
terrain & weather conditions and fast track
projects, the business is presently executing several
projects at 765kV AC, 400kV AC & ±800kV HVDC
levels across the country.
A prestigious order has been received from
Medinipur - Jeerat Transmission Limited which is
an SPV formed by Powergrid for the execution of
the Eastern Region Strengthening Scheme-XVIII.
Many orders have been received from Power Grid
Corporation of India Limited across states. Two
significant orders were bagged from Madhya
Pradesh Power Transmission Company Limited
for constructing a transmission corridor from
Malwa to Badnawar through Pithampur. System
strengthening schemes from Jharkhand Urja
Sanchar Nigam Limited have been secured. The
Testing Station continues to attract orders from its
global customers including from USA, KSA, China
and Malaysia.
The Transmission Line business has commissioned
about 20 transmission corridors of 2400KM
length in FY16-17. The projects commissioned
include India’s first longest 765kV D/C Kudgi TL
(380 km) and 400kV Quad Moose D/C Madhugiri
to Bidadi Transmission Line (94km). Yet another
HVDC transmission line 800kV HVDC Champa-
Kurukshetra Pkg-6 (208km) was commissioned
for PGCIL. At 765kV level, Varanasi – Kanpur
Transmission Line (281km), 765kV S/C Lalitpur-
Agra UP line-Ckt-I & Ckt-II (234km), ERE03 &
ERE04 Srikakulam Vemagiri TL(168km) are among
the major projects commissioned. Besides the
400kV Multicircuit Karamadai - Coimbatore
Transmission Line, a fast track project viz. 400kV
D/C Quad line-Kamudhi-Karaikudi Transmission
Line (112km) was completed for Tamilnadu
Transmission Corporation Limited. In Andhra
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Pradesh & Telengana 400 kV D/C Jammalmadugu
– Urvakonda & 400kV QDMC line Tungabhadra-
Yemmiganoor (150km) and 400kV Veltoor SS
to Tungabhadra (73km) were commissioned. A
major project for Maharashtra State Electricity
Transmission Co. Ltd (125km) for strengthening
Mumbai Metro was completed.
Buoyed by the ambitious capacity addition plans
and faced with declining tariff trends, the Solar
business was selective and has bagged over
300MW projects in 2016-17.
In the Middle East, though the macro economic
scenario was mixed during 2016-17, 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 KSA and Oman. High voltage transmission
lines and substations to improve power reliability
were entrusted upon the business by Saudi
Arabian customers. Despite spend cuts induced
by the oil price causing a sense of anxiety in the
business climate, the business has secured a major
order from KAHRAMAA involving 30 substations
and 560KM of EHV cabling for the expansion of
the electricity transmission network in Qatar. It
continued to play a vital role in the 400kV Grid
Substation network in Oman by securing another
order. In UAE, the business could garner orders for
constructing a number of 132kV GIS Substations
from DEWA and reputed private customers in
UAE. The business commissioned 36 substations
including two 400kV Grid Stations in Oman, 2
cable projects and an Overhead Transmission Line.
Having qualified for the highest voltage levels in its
lines of business, the business has also added new
private customers.
The business has established strong presence in
select focus countries of Northern and Eastern
African countries. The 400kV substation project
in Algeria has been completed. The substation
projects in Ethiopia and Malawi, and the
Kenya-Ethiopia electrical highway are progressing
at the desired pace. The business has secured
400kV Substation and Transmission Line orders
from utilities in East Africa.
The business has gained a significant foothold and
recognition in the ASEAN market. The ongoing
substation and transmission line projects in
Malaysia and Thailand including South East Asia’s
largest gas insulated substation is on track. Though
new prospects in the ASEAN countries witnessed
certain delays in bid finalization due to low oil
prices, currency volatility and leadership changes
etc., they have gained traction of late.
Significant Initiatives
With major thrust on Digitalisation as a key
enabler, the business rolled out several initiatives
including deployment of drones for project
progress monitoring, connecting plant &
machinery for asset monitoring, using geospatial
technologies for surveys, etc. It has deployed
mobility device based project monitoring tools
across all its active Transmission Line projects.
The workmen related processes are being linked
through unique identification. Several operational
excellence initiatives in the areas of on-time
delivery, profitability enhancement, effectiveness
checks of process implementation, working capital
management and risk management are being
pursued.
Apart from expanding the capacity of the existing
Pithampur factory, a new Transmission Line Tower
manufacturing facility is also on the anvil.
One of the many 400 kV Gas-insulated Substations installed
by L&T.
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Initiatives undertaken to enhance safety in
operations include e-learning modules, improvised
safety cards for reporting unsafe acts/conditions,
virtual reality based training, upgrading Safe
Operating Procedures (SOPs) to reflect changing
work methods and mechanization, adoption of
Sagging Bridge (Stringing Working Platform)
technique and the use of motorized 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 and is currently executing more than
200MW of tracker based projects. Through a first
of its kind distributed generation project in Bihar,
the solar business has entered into energy storage
providing solar power to 200 villages.
The business has strengthened its talent base to
execute ongoing jobs in the ASEAN and African
markets, vigorously pursuing emerging potential
and creating corporate brand awareness and
preference. The business continues to develop
long-term relationships with its customers and
foster strategic partnerships and alliances with key
vendors and OEMs.
As a part of its localization and diversity
enhancement strategy, the business expanded
60 MWp Solar Tracker Plant, Tamil Nadu
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its Graduate Engineering Trainee programme
to educational institutions in KSA and recruited
young Saudi nationals as budding engineers.
Such initiatives promptly earned awards and
recognition for the business during the year. These
include:
• Transmission Line business received ‘Best Safety
Practice Award’ from PGCIL for 800KV HVDC
Champa - Kurukshetra TL
• Solar business bagged prestigious awards from
Dun & Bradstreet, Construction Times, India
Solar Week 2016 and Solar Today Award 2016
• Two Substation projects in Oman secured ASSE
GCC HSE Excellence Awards
• Projects in Saudi Arabia received the highest
number of awards bagged by a single contractor
from National Grid – Saudi Arabia.
• Prestigious National Safety Council of India
award received for R-APDRP Varanasi Project
• RoSPA , British Safety Council awards for safety
performance for multiple projects
Outlook
In the power distribution front, the centrally
driven schemes viz. Deen Dayal Upadhyaya Gram
Jyoti Yojana (DDUGJY) and Integrated Power
Development Scheme (IPDS) continue to offer
substantial opportunities for rural electrification
and power quality improvement projects. The
increasing cost of land and acquisition related
delays have led Power Grid/ State utilities to
increasingly opt for GIS Substations due to
the less footprint they occupy. As the power
transmission / transformation capacities increase
to cater to the growing demand of urban centres,
new opportunities will arise for EHV (Extra
High Voltage) cabling projects in large cities
keeping in view of the right of way, aesthetics
and Operation & Maintenance aspects. Power
quality improvement projects such as STATCOM,
new clientele out of TBCB players, state utilities
strengthening their networks with funding from
brought down the tariff rates. With over 12 GW
of solar projects yet to be installed in India, going
forward, the momentum on projects execution
is expected to remain upbeat. FY 2017-18 is
predicted to gain further in terms of yearly
addition compared to 5.5GW of installations in FY
2016-17 with some forecasts expecting close to
10GW. Energy storage integration into solar plants
will see a rise due to grid stability requirements.
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 such as taxation and currency
de-pegging. Infrastructure development will
continue as part of diversifying the economy and
will be aided by events such as 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.
The revival of UAE market fueled by infrastructure
growth related demand is a positive sign. In KSA
(Kingdom of Saudi Arabia), continued Investment
in basic infrastructure such as Housing, Roads
etc. is fueling the Associated Power infrastructure
projects. Power system capacity expansion to cater
to infrastructure growth is proceeding as per plans
in Qatar. Similarly, continued investments ensure
steady growth in Oman. Input costs are bound
to increase with introduction of VAT and removal
of subsidies on fuel, power and water. However,
these will have a similar impact on all the players.
Prioritization of spending / budgetary allocation
and related delays in project finalization are
potential risks.
Africa’s economic growth has been impressive
and is predicted to remain robust. To sustain and
support high growth rates as expected for Africa
through economic diversification and industrial
development, closing the current gap in power
infrastructure will be crucial. The eagerness
of multilateral funding institutions to sponsor
infrastructure projects either directly through
utilities or through infrastructure developers bodes
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L&T’s capability in executing projects for power distribution
includes switchyards.
multilateral funding agencies, etc. are expected
to provide a much-needed impetus. However,
coal based power generation is yet to revive and
hence associated evacuation substations are
yet to resurface. The financial health of state
utilities, the political situation in several states
and the availability of funding will remain key
determinants.
System strengthening in state utilities will provide
major impetus to transmission line prospects.
Several interstate and intrastate transmission
lines are expected to go through the Tariff Based
Competitive Bidding route. In certain states,
the capacity enhancement using the already
existing corridor may provide opportunities as it
eliminates the need for fresh acquisition of right
of way thereby reducing costs and saving time.
Substantial activity with many prospects is evident
in the SAARC countries viz. Bangladesh and Nepal,
as they are coming up with several high value
prospects.
The solar power market is poised to pursue its
upward growth trajectory. PV module and finance
costs have fallen for solar projects, this in turn has
well for the business. The business is concentrating
on key African economies that have a clear road
map to build Substations and Transmission Lines
to meet increasing demand. The next phase of
grid strengthening in Botswana and Kenya will
offer further prospects. Rural Electrification,
Regional Interconnection and Grid Strengthening
opportunities are being pursued in Northern and
Eastern African countries.
Power Infrastructure is being steadily 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. Also, a significant part of such
investments is funded by multilateral agencies
opening doors for participation of global players.
With each ASEAN country representing a different
aspect of the electricity sector needs, the business
sees immediate prospects in Malaysia, Thailand
and Myanmar.
The overall outlook for the PT&D sector remains
promising on both the domestic and the
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.
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 23
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 Grid Station project.
The business expects a stable political and
economic scenario in Oman with growing
opportunities in the T&D segment.
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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
secured orders for a sizeable number of projects
involving High Voltage Substations and Overhead
Transmission Lines.
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:
Water is life. Growing pressure on water resources
due to rise in population, economic growth,
climate change, pollution and other challenges
have had a major impact on our social, economic
and environmental well-being. Many of our most
important aquifers are being over-pumped, causing
widespread declines in groundwater levels.
Sensing the huge potential in this arena, L&T
Construction’s Water & Effluent Treatment
181 MLD water treatment plant for Vellore Water Supply
scheme.
business segment has quickly enhanced its process
knowhow and detailed engineering capabilities
across all streams of Water and Wastewater
business in India, Sri Lanka, Middle East and Africa.
The formidable in-house engineering capabilities
coupled with impeccable project management
skills have put this segment much ahead of
competition.
The business has built over 2600 MLD of water
treatment plants; laid over 31,000 km of water
and wastewater pipeline; In addition the business
has also laid pipeline networks to bring more than
1 lac hectare of land into cultivation.
Projects Commissioned & Orders Received
The Water & Effluent Treatment Business has
commissioned several important water projects in
2016-17. These include:
a) Bankura Water Supply Scheme in West Bengal
b) 52 MGD Water Treatment Plant at South 24
Parganas in West Bengal
c) Water Supply Scheme in Pudukottai &
Cuddalore in Tamil Nadu
d) Plant Water Systems at Raichur for RPCL in
Karnataka which is recognized as Asia’s largest
Micro-filtration plant
e)
Lift Irrigation Scheme in Hanamapur in
Karnataka
f)
Sauni Yojana Link 3 Package 3 in Gujarat
g) Ganga River Front Development Project in
Patna, Bihar
The Business has also been successful in securing
orders from various business domains like lift
irrigation, drinking water supply, common effluent
treatment plants, municipal waste water collection
& treatment and integrated urban infrastructure.
Some of these include:
a) NC-35, NC-36, NC-37 Water Supply Scheme,
Gujarat b) Sikar, Alwar & Bhiwadi Wastewater
Scheme, Rajasthan c) Construction of Water
Hanamapur lift irrigation project, Karnataka.
Storage Reservoir at Vizag Steel Plant, Andhra
Pradesh d) Bansujara Lift Irrigation Scheme,
Madhya Pradesh e) 30 MLD CETP at Ahmedabad,
Gujarat f) Comprehensive Storm Water Drainage
Scheme at Vijayawada, Andhra Pradesh
g) Providing 24x7 Water Supply to Tumakuru
city, Karnataka h) Sewerage integration work
and sewage treatment at Barrackpore, West
Bengal i) Improvement of Water Supply to Greater
Berhampur, Odisha j) Chaigaonmakhan Lift
Irrigation Scheme, Madhya Pradesh k)Integrated
Wastewater Scheme at Sri Ganganagar, Rajasthan
l) Lift Irrigation Scheme at Clusters IX & XII,
Odisha m) Alirajpur Lift Irrigation Scheme, Madhya
Pradesh n) Nandawadagi Lift Irrigation Scheme,
Karnataka o) Sauni Yojana Link-2 Package-4,
Gujarat.
On the International front, the Business has
secured a project in Sri Lanka for Provision of New
Gravity Sewer, Force Mains and Pump Stations and
another project in Tanzania involving extension of
water transmission pipeline from the Lake Victoria
Water Supply Scheme to Tabora, Nzega and Igunga
towns.
Business Environment
The per capita water availability in the country is
rapidly decreasing due to an increase in population
and its consumption. The average annual per
capita availability of water in India was 5177 cubic
meters in 1915, which decreased to 1500 cubic
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meters as per the 2011 census. It was estimated
that by 2015, the per capita availability would go
down further to 1100 cubic meters.
The Government of India has plans to prevent the
contamination of surface water bodies by stopping
untreated wastewater flowing into these bodies. 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 effluent by adopting advanced treatment
technologies thereby reducing the consumption
of fresh water requirement for their day to day
processes.
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 WET business
of L&T continues to be ahead of competition, both
in terms of market share and profitability. Some of
these initiatives are:-
• Foray into Specialized WTP & Desalination with
technology partnerships.
• Participation in Mega Lift Irrigation System
tenders, in which water is not transported by a
natural flow but is lifted with pumps
• Focus on Zero Liquid Discharge (ZLD) process
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.
• The business has provided water infrastructure
facilities, solar powered treatment plants, desks
and important aids to visually challenged and
differently abled children which has resulted in
bringing down the number of school dropouts
and increasing enrollment in schools.
Digital Initiatives
WET business has implemented several digital
initiatives like a) Online prospects tracker
b) Linking workmen database with Aadhaar and
bank accounts c) Online risk management portal
d) Application to monitor the progress of the
projects online. Some of the other digital initiatives
include:-
• Implementation of digital solution to track the
productivity of some of the key assets.
• Elimination of paper log/measurement books
and adoption of online work measurements.
• In geo-spatial arena, usage of LIDAR survey in
some of the wastewater projects.
• Developing design models using BIM.
Risks & Concerns
WET projects carry various risks like ROW issues,
longer O&M periods, fund constraints with client,
bulk materials shortage due to mining issues
at various projects. These risks are mitigated by
continuous follow-ups with the client, formations
of a dedicated O&M segment, detailed financial
analysis of clients during the pre-bid stage and
meticulous planning.
Outlook
There are mega government policies to drive
water infrastructure in India that include AMRUT
(Atal Mission for Rejuvenation and Urban
Transformation), Namami Gange, Pradhan Mantri
Krishi Sinchayee Yojana and Delhi Mumbai
Industrial Corridor Development. In addition, large
investments have been proposed by multi-lateral
funding agencies for water supply and sewer
projects to improve the urban quality of life.
Desalination and Water Management projects are
likely to fructify during the current year due to the
prevailing water stress conditions in most parts
of India. Mega lift irrigation projects have been
proposed across major states along with proposals
to connect rivers with 15,000 km of canals. To
this effect the 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 on source creation,
distribution, management, field application
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L&T creates smart cities by offering integrated capabilities from several of its businesses - L&T Construction, L&T Electrical &
Automation, L&T Infotech and L&T Technology Services.
and extension activities. 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. The Delhi-Mumbai
Industrial Corridor (DMIC) is India’s most ambitious
infrastructure programme aiming to develop new
industrial cities as ‘Smart Cities’ and converging
next generation technologies across infrastructure
sectors. The programme envisages 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. The business has already
set its footprint in Tanzania and Sri Lanka and
more are expected from these geographies.
SMART WORLD &
COMMUNICATION
Overview:
India is rapidly gearing up to create smart
infrastructure that will soon be the backbone
of the economy. With the mandate to build a
smart and digital India being at the top of the
Government’s priority list, this area will be abound
with huge opportunities in the near future. The
potential business opportunities are in the areas
of city surveillance, intelligent traffic management
systems, transport & logistics, OFC cabling,
communication network including backbone,
telecom infrastructure, smart governance
& education, Critical Infra and Smart City
Development.
With a successful track-record complemented
by domain knowledge across business verticals,
L&T’s Smart World & Communication Business
Unit (SW&C) is well positioned to be a key Master
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• It commissioned the India’s largest city
surveillance project comprising ~5,000 cameras
at over 1500 locations in Mumbai City in
2016-17
• It is currently executing the largest City
Surveillance & Traffic Management network for
the city of Hyderabad
• The Segment conceptualized utilization of
existing Surveillance Infrastructure successfully
and executed & commissioned city wide Wi-Fi
project for Mumbai City.
• The Security Solution segment has secured the
prestigious project of creating Command Control
Centres for 3 Cities in Rajasthan – Bharatpur,
Bikaner & Jodhpur.
Communication Network & Telecom
Infrastructure Business
For a more secure and smarter world, a robust
communication network & telecom infrastructure
is an imperative. L&T Construction has the
capability to provide end to end solutions for
a range of requirements covering - Fiber Optic
Backbone; Microwave & Satellite Communication;
Network & Telecom Infrastructure; Wi-Fi System;
Early Warning Dissemination Sys.; Emergency
Response Sys.; Metro Communication to name a
few.
2016-17 had been a year of technological
expansion for the segment. The Business segment
forayed into new areas like Wi-Fi Systems, Digital
India, Early Warning Dissemination Systems,
Connected Grids, etc.
• The segment is executing the comprehensive
metro communication package for
Lucknow Metro and is also executing TETRA
communication network for Delhi Metro
• The Business segment is also executing a project
for the implementation of an ‘Early Warning
Dissemination System’ for coastal districts. The
system is a ‘First of Its kind in India’
Hi-tech surveillance systems ensure 24X7 security at Mumbai
System Integrator (MSI) for smart city projects.
The Business Unit in L&T Construction leads all
business initiatives in this realm and collaborates
with L&T Infotech, L&T Electrical & Automation IC
and L&T Technology Services to provide end-to-end
solutions to customers.
With this unique positioning and a technology
driven portfolio, the business has been able to
attract talent from across the industry in the smart
city spectrum.
Business Environment
Security Solution Business
With safety & security an imperative for modern
life, video based surveillance has emerged as a
fundamental element of safety & law enforcement
in urban areas. L&T’s core strength lies in offering
a whole spectrum of sustainable & scalable
systems in security solutions for city surveillance
& Homeland Security systems, Intelligent Traffic
Management Systems, Critical Infrastructure across
ports, airports, metros, IT parks & public buildings.
It started with the Sabarmati Jail surveillance
project and development of surveillance and
intelligent traffic management systems for the
Gujarat government in Ahmedabad, Gandhinagar
and Vadodara.
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• Communication Business aligning with the
vision for a Digital India is executing projects
for creating communication backbone (GPON)
and providing digital connectivity (Wi-Fi) across
various locations of the country
Smart Infrastructure Business
L&T SW&C offers multi-pronged smart solutions
on a turnkey basis that are postmodern & reliable
for a whole spectrum of smart infrastructure which
covers Smart city solutions, Integrated Command
& Control; Smart Communication; Smart Mobility;
Smart Energy; Smart Lighting; Citizen Apps, etc.
The segment has successfully commissioned the
Jaipur Smart City Project – India’s First Smart City.
• In 2016-17 Smart World Communication BU
secured India’s ‘First Integrated Smart City’
project for Nagpur City in Maharashtra. The
project scope involves laying of a citywide
optical fiber network backbone, creating City
Wi-Fi hotspots at key locations, establishing
digital interactive kiosks and developing city
surveillance systems with IP based cameras.
Additionally, the city has identified a strip of
approximately 6 kms to be developed as a ‘Smart
Strip’ with state-of-the-art systems powered with
smart ICT interventions like smart parking, solid
waste management, smart lighting etc.
• The segment also secured a prestigious Smart
City project for Pune under the Smart City
Mission of the Government of India for the
development of Pune as a Smart City. The
Pune Smart Elements Project includes enabling
Wi-Fi at around 200 strategic locations,
establishing Emergency Call Boxes and Public
Address Systems, putting up Environmental
Sensors, Variable Messaging Displays, Network
Connectivity and Video analytics Integration.
The project includes a state-of-the-art Smart
City Operation Centre (SCOC) to integrate all its
services and applications on a single platform.
• The segment also secured an order to
implement Smart City Solutions for the city
of Vishakhapatnam under the Smart City
Mission. The scope of work includes citywide
Surveillance, Variable Message Boards, Public
Address Systems, Wi-Fi Access Points, Data
Centre with Disaster recovery, Command
Control Centre, Collaborative Monitoring and
Facility Management Systems. Apart from these
the Project includes implementation of Smart
Elements such as Solid Waste Management
System, Smart Transport, Smart Poles, Smart
Lighting, Environmental Sensors and Enterprise
Resource Planning.
Outlook
2017-18 looks promising for the SW&C business
given the boost the government has given for safe
and smart cities and other digital initiatives.
The union budget 2017-18 projected allocations
that cover the areas of business being pursued
by SW&C - Digital India - Bharat Net; Smart
City & AMRUT; Homeland Security and Border
Management System; Metro & Railway Surveillance
and Telecommunication; Emergency Response &
Police Modernization, etc.
Security Solution Business
The trigger for the surveillance business, will
essentially come from the initiatives taken by State
Police Departments, State Industrial development
Authorities given that safety of people is a state
subject.
Several of the tier-2 cities are planning tenders for
city surveillance & intelligent traffic management
systems to ensure safety and security of citizens.
With special thrust by Central and State Govt.
for Highway Managements Systems, the segment
envisages traction for Integrated Highway
Management System opportunities in 2017-18 &
2018-19.
Homeland Security is another area of importance
for the Govt. of India. Border Security and
Management Systems are expected to grow and
business is anticipating big opportunities in this
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space. Other areas such as Airbase and Naval base
security are in the RFI phase.
Communication Network & Telecom
Infrastructure Business
With the Government’s initiatives like Digital India
and thrust towards e-governance, the National
Optical Fiber Network (NOFN), which faced certain
delays in 2016-17, with a mandate from DoT,
will be translating to a large scale opportunity
for development of a robust and nationwide
broadband telecom infrastructure in 2017-18. The
Bharat Net program plans to connect 2.52 lakh
Gram Panchayats of the country with high speed
digital network.
The business made a breakthrough in 2016-17
in the domain of Early Warning Dissemination
Systems for Coastal districts of AP & Odisha.
Other coastal states are also coming up with
similar requirements to issue early alerts in case of
cyclones and other natural calamities.
Metro Communication packages in various cities
project a good market potential. Metro projects
for several cities are already in the pipeline and
with the experience from LMRC & DMRC projects,
the business unit is well positioned to tap these
emerging opportunities.
Smart Infrastructure Business
Under the Central Government’s Smart City
Mission for developing 109 smart cities across
India, 60 cities have already been shortlisted,
several of which are in advanced stages of RFPs
and have received Central Govt. funding. These
cities will be coming up with RFPs shortly and the
balance cities are also likely to follow in 2017-18.
SW&C is well positioned to leverage the diversified
offerings of L&T and collaborate with the State
municipal corporations and governments to create
smart infrastructure based on the experience
gained in Jaipur, Nagpur, Pune and Vizag.
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Power Business
Natural-gas-fired combined cycle power plant built by L&T at Vemagiri in Andhra Pradesh.
Overview:
Power business is one of the leading EPC players
that provides “design to commission” integrated
solutions in the field of coal and gas-fired power
projects on a Lump sum turnkey basis. The
successful completion of various projects and
continuous additions of capacity has made the
business “a proven and complete solution provider
in the Thermal Power Segment”.
L&T’s Power business has a pan-India presence
with multiple project sites, project management
centres & manufacturing facilities.
The business has a state-of-the-art facility
at Hazira in Gujarat, where it manufactures
ultra-supercritical/supercritical boilers, turbines,
generators, pulverisers, axial fans, air-preheaters
and electrostatic precipitators. It also has design
and project management centres at Vadodara,
Faridabad and Chennai that ensure international
standards of project management, quality, safety
and on-time delivery.
The business has an organization structure with
focused business units supported by competency-
based capability centres and service functions.
Business Environment:
The Power sector saw sustained momentum
across the power value chain like lower power
deficits, reforms in distribution, capacity
addition and grid augmentation during the
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On EPC basis, L&T undertook the 375 MW single-shaft combined cycle power plant project for Gujarat State Electricity Corporation
at Dhuvaran in Gujarat.
year. This makes the business optimistic and it
anticipates that there will be around 40 to 50
GW of ultra-supercritical/supercritical ordering in
coal-based projects over the next five years.
During the year, the business bagged 1.98 GW
of Boiler Island order from Neyveli Uttar Pradesh
Power Limited through competitive bidding, while
the main plant orders of 4.6 GW materialised in
2016-17.
The business continued its foray outside India
and was successful in getting export orders worth
over USD 200 million through its joint venture
companies.
Tenders for Flue Gas Desulphurisation (FGD)
and Selective Catalytic Reduction (SCR) business
started floating in the market. The Power business
is hopeful of securing sizable orders in this new
segment.
With increasing competition and shrinking market,
cost optimisation has been the focal point for the
business. It planned various initiatives to achieve
cost leadership and at the same time, continued
its focus on execution excellence and customer
delight by demonstrating high quality and safety
standards.
Business continued to raise its own standards on
‘delivery terms’ to ensure contractual commitments
and customer delight by saving time and money.
Synchronisation of the first unit of Rajasthan Rajya
Vidyut Utpadan Nigam Limited’s (RRVUNL) project
in record time of 42 months and hydro test of the
first unit of Madhya Pradesh Power Generating
Company Limited’s project, three months ahead
of the schedule bore testimony to this. It also
achieved open cycle synchronisation of its two
gas-based power projects in Bangladesh - NWPGCL
360 Bheramara CCPP & BPDB 225 Sikalbaha CCPP.
The awards from CII-EXIM Bank for business
excellence and from FICCI for quality systems
excellence are proof of the business’s belief in
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‘total quality organisation’ for sustained business
results. It also received the National Safety Award
for the ongoing Rajasthan Rajya Vidyut Utpadan
Nigam Limited’s project at Chhabra.
The business continued its focus on enhancing
competencies among its employees through Power
Training Institute to further its contribution to the
sector. Recognition of the institute by the Ministry
of Power, Government of India, is a pointer in this
direction.
Significant Initiatives:
The business formulated its business strategy with
three-pronged approach of cost optimisation,
portfolio enhancement and internationalisation.
Progress monitoring, review mechanism,
timeliness, department responsibilities and
accountability have been identified as the key areas
to ensure successful implementation of its strategy.
In its pursuit of portfolio enhancement, the
business signed long-term technology licence
agreements with Chiyoda Corporation for FGD
and with Mitsubishi Hitachi Power Systems for
SCR. The partnership with the world’s technology
leaders has provided an edge over its competitors
in the new job opportunities that are coming up
in the thermal power sector due to new emission
norms notified by the Ministry of Environment,
Forest & Climate Change, Government of India.
On the international front, the business will
continue its focus on South East Asia and Middle
East markets for gas-based power projects. For
coal-based power projects, select opportunities in
neighbouring markets are also being pursued.
The full-fledged office in Dhaka to support
execution of current projects and tap new
opportunities in the Power sector in Bangladesh is
an example of management’s foresightedness to
expand in the territory.
The business reviewed its internal controls and
ensured that the controls which are commensurate
with the size of its operations exist. It also
continued with its risk mitigation initiatives
through risk management practices and regular
reviews.
Outlook:
Looking ahead, the Power sector is expected
to unfold many positive trends in the areas of
generation, transmission & distribution. The impact
of UDAY scheme and 100% rural electrification,
etc. will also be seen in the years to come. Power
sector in the country is set to grow to meet the
increased demand which is likely to be fuelled
by the expected GDP growth of the country.
The business expects a major thrust from the
Government to boost the sector with equal focus
on thermal, nuclear and renewables like solar,
hydro, etc.
Though emergence of alternative sources in the
form of renewables is another challenge for the
business, it is believed that coal will continue to
be the mainstay of the domestic power sector for
providing reliable and robust base load.
Business potential of Flue-gas desulfurization
(FGD) systems to meet the environmental norms
has opened new opportunities and the business is
ready to capitalise on it. The business also sees the
opportunities in ‘replacement market’. Some plants
have aged and are due for retirement. These plants
run at very low PLF, less efficiency level and are
non-complaint to revised emission norms. Due to
these factors, the old plants will be replaced with
the new ultra-supercritical/supercritical technology
which is much more efficient. It is expected that
around 15 GW of ordering will happen in the next
three to four years in the replacement market
alone.
Excess capacity and aggressive pricing will continue
to haunt the EPC players and it would reflect in
the pricing and financials. The gas-based power
plants are not expected to revive in India in the
near future. However, South East Asia continues
to offer good opportunities for gas-based plants.
The business has taken various steps to enter
these markets. The target countries for gas-based
projects are Bangladesh, Sri Lanka, UAE and
Indonesia.
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grab market opportunities created post issuance
of strict environment norms in India. The company
further strengthened its position in export market
and received orders over ` 380 crore.
L&T-MHPS TURBINE GENERATORS PRIVATE
LIMITED (LMTG):
LMTG is a joint venture incorporated in India
between 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 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 major improvement in the financials
of the company on the back of good orders
on hand. The factory utilization also improved
substantially during the year. Exports continue to
be the major thrust area for the company with
global customers responding to the company’s
high-quality standards & competitiveness. The
Company has aimed to add Repairs & Services and
Spares business to its existing revenue streams to
enhance its business portfolio and at the same
time improve its factory utilization & financials.
L&T-SARGENT & LUNDY LIMITED (LTSL):
LTSL is a joint venture between 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 & Faridabad.
LTSL offers complete Power Plant Engineering
& Consultancy services - from concept to
commissioning. Besides having considerable
expertise in gas based and sub-critical coal based
power projects, the company is also involved in
engineering of ultra-supercritical/supercritical coal
based projects and forms the engineering base
for L&T’s focus on turnkey execution of ultra-
supercritical/supercritical technology.
Supercritical boiler manufactured at L&T’s state-of-the-art
manufacturing facilities at Hazira.
As we go further, the impact of GST regime on the
Power sector is another major area which needs to
be analysed and seen.
Major Subsidiary Companies:
L&T-MHPS BOILERS PRIVATE LIMITED (LMB):
LMB is a joint venture incorporated in India
between L&T, having 51% stake and Mitsubishi
Hitachi Power Systems Limited (MHPS) Japan,
having 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
centres at Faridabad and Chennai. The company
can manufacture ultra-supercritical/supercritical
boilers up to a single unit of 1000 MW at its Hazira
complex.
The company received its biggest domestic order
from NUPPL for 3X660MW Ghatampur Thermal
Power Project. It also received its biggest export
order from MHPS for supply of Pressure parts for
2X1000MW Central Java Project in Indonesia. The
Hazira factory recorded the highest production
ever since the start of the operations.
The company also signed Technology and License
agreement with MHPS for Selective Catalytic
Reduction system. This will help the company to
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The company continues to focus on major EPC
Players from Turkey, Korea, SE Asia etc., for
future business opportunities. The company was
successful in having a breakthrough in Qatar
during the year. The company was also successful
in bagging three orders from Nationalised Banks
& PSU agencies for offering project management
consultancy (PMC) services to lenders for stressed
power projects. The company also received various
other domestic and overseas orders during the
year.
The company continued its high business standards
which is demonstrated by engineering of around
24000 MW of generation capacity of gas-turbine
based power plants and around 22000 MW of
generation capacity of coal-based power plants,
across the globe.
L&T HOWDEN PRIVATE LIMITED (LTH):
LTH is a joint venture between 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 centre at Faridabad.
The company is optimistic about receiving the
orders through LMB and other Boiler OEMs.
On execution front, the company focused on
streamlining of engineering, it also focused on the
process improvements and capacity improvement.
The company achieved full load of its APH basket
production line and fan testing facility during the
year.
The recent environmental rules requiring FGDs
will further boost demand for the company’s axial
fans. Further, the company has aimed to improve
its project delivery and optimise the cost through
various initiatives to make itself more competitive.
Fabrication of a turbine for a power plant.
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Heavy Engineering Business
Eight ARDS reactors, ready for despatch to the Refinery and Petrochemical Integrated Development (RAPID) Project of Petronas,
Malaysia.
Overview:
The Heavy Engineering (HE) business designs,
fabricates and integrates custom designed,
engineered critical equipment & 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 safe work culture.
The Heavy Engineering business is structured into
two Strategic Business Groups (SBGs):
• Process Plant Equipment and Nuclear
• Defence and Aerospace
1)
Process Plant Equipment and Nuclear
(PP&N) SBG is involved in manufacture
of large complex equipment such as
hydro-processing reactors & 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 process plant side
is handled from Vadodara manufacturing
facility. Fabrication of critical piping spools
for applications in the power, refinery,
petrochemical, fertilizer and chemical sectors
is done in a separate unit located at Hazira.
During the year, PP&N SBG underwent
significant organisational changes to
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strengthen the marketing and execution
teams. It also focussed on cost control and
zero defect manufacturing, identified core
and non-core products and consolidated its
operations at Hazira.
2)
Defence and Aerospace (D&A) SBG,
having evolved from technology and
product development to serial production
of equipment and systems to platforms has
resulted in the emergence of L&T as India’s
largest private sector company in the Indian
defence sector. L&T is today engaged in
design-to-delivery of solutions across its
chosen defence segments. For over three
decades, L&T has focussed on building
indigenous products and technologies
with Defence Research and Development
Organisation, India (DRDO), as well as with its
in-house research and development.
D&A SBG has developed and produces naval
platforms, artillery systems, air-defence
systems, land and 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.
L&T is committed to “Make in India”, and
has invested in multiple work centres across
the country dedicated for defence business,
including assembly & integration facility
at Talegaon near Pune, missile sub-system
manufacturing facility at Coimbatore and
defence electronics facility at Bengaluru.
Besides these dedicated facilities, specific
work-centres are set-up at Hazira for the
strategic program, Ranoli for advanced
composites, at Powai (Mumbai) for
prototype development & testing and a site
at Vishakhapatnam operated under GOCO
model for a strategic program.
L&T continues to develop indigenous
products, systems and solutions for the
‘Indigenously Designed, Developed and
Manufactured’ (IDDM), ‘Make’ and ‘Buy
and Make Indian’ category of programs
under the Defence Procurement Policy.
It shall continue to invest in its Product &
Technology Development Centre at Powai
and Bengaluru.
Business Environment:
During the year 2016-17, in the Process Plant
and Nuclear space, the oil prices continued to
be in the range of 40-60 $/bbl resulting in lower
revenues and profits for oil companies. This led
to deferment of many investment decisions as
well as cancellation / suspension of many projects
announced earlier. Delay in procurement in the
domestic sector also impacted order inflow in
the nuclear business. Surplus capacities and
limited demand has resulted in aggressive
competition and has put extensive pressure
on pricing and deliveries. Protectionist policies
and export credit agency (ECA) financing has
further limited the opportunities. PP&N SBG
has focused on operational excellence to deal
with the challenging market scenario and regain
competitiveness.
K9 VAJRA-T, a 155mm/ 52 Cal Tracked Self Propelled (SP)
Gun, being built in collaboration with Hanwha Techwin.
Some of the major orders executed in 2016-17
were ARDS Reactors and FCC Reactor Regenerator
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Launch of India’s PSLV from SDSC SHAR. Over the last 40 years, L&T has built critical subsystems for all of
ISRO’s space launch missions.
Package for RAPID in Malaysia, K-COT Converter
Unit for Lotte Chemicals in Malaysia, Heat
Exchanger package for KNPC in Kuwait, Synthesis
Loop Waste Heat Boilers for IFFCO in India,
Steam Generators for NPCIL in India, and high
pressure piping for Greensville Power Project
at Virginia in USA. The SBG also booked orders
from international power sector players - GE and
Mitsubishi Hitachi Power systems for supercritical
thermal power projects.
In case of the D&A SBG, the Government of
India (GOI) brought about major changes and
improvements in policies in the defence sector.
These were in consonance with the ‘Make in
India’ and the ‘Ease of doing business’ agenda
of the GOI. A marked shift towards indigenous
procurement is evident from the clearances
granted (82% by share and greater than ` 3.2
lakh crore by value) by the Defence Acquisition
Council in the past two and a half years for Indian
companies to participate as prime bidders. The
overall policy framework is being modified to
offer a level playing field for the Indian private
sector and the defence public sector undertakings.
GOI has also advised a target of USD 2 billion for
defence exports. Defence exports are a part of
India’s foreign diplomacy initiative, particularly
in the South East Asian region. GOI may grant
military aid / export credit financing to promote
such exports.
The GOI has received recommendations from
series of Committees with respect to the selection
/ short listing of private sector entities as Strategic
partners (SP). SPs shall be entities with track
record and industrial capabilities and each shall be
identified for manufacture of large and complex
defence platforms in an identified domain. This
shall permit long term investment by the private
sector and accelerate the acquisition process. L&T
through its D&A SBG has been a long term player
in the defence segment in India with a wide range
of technologies, products, systems and complex
defence platforms.
In the Aerospace segment, Indian Space Research
Organization (ISRO) plans to involve private sector
as well as public sector firms for industrialising
production of Polar Satellite Launch Vehicles
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(PSLV), and to this effect, a framework is under
discussion.
Significant Initiatives:
In order to maintain leadership position in
the Process Plant & Defence sectors, focussed
team initiatives have been undertaken under
Organizational Excellence initiatives.
The businesses have drawn up their Strategic
Plan with sharp focus up to 2021, and profitable
growth is the aspiration. It continues to invest
in intra-organisational excellence initiatives
like Six Sigma, Total Productive Maintenance,
Workplace Management Systems and Knowledge
Management to ensure superior quality products
and services. People-centric initiatives, competency
build-up, talent and leadership development
remain vital to the growth strategies of the
business.
Sustainability and CSR initiatives have been
undertaken by the Sustainability and CSR team
of Heavy Engineering business with significant
contribution by the employees and guidance from
the central co-ordination teams. These include
community development, skill development
initiatives, volunteering by L&T employees
for community welfare programs, community
infrastructure development, contribution to
educational infrastructure, health camps,
monitoring water and electricity consumption
and greenhouse gas emission etc. Health, Safety
& Environment policies and programmes help
increase awareness amongst employees, the
community and our stakeholders.
Outlook:
The business outlook for Process Plant sector
looks optimistic with major investments in South
East Asia, MENA and domestic market. Nuclear
Power Corporation of India Limited’s (NPCIL) bulk
procurement program shall be major opportunity
during the year.
In view of increase in global demand, Investments
are expected in five to six refineries all over the
world. Major opportunities include - Takreer in
Abu Dhabi, BAPCO in Bahrain, DUQM in Oman,
KNPC in Kuwait, Pertamina in Indonesia, Thai Oil
in Thailand, CPC in Taiwan, and Dung Quat in
Vietnam. Investments are also seen in the domestic
sector by IOCL, HPCL, HMEL, and BPCL for capacity
enhancement and BS-VI up gradation to comply
with the applicable fuel standards. The low oil
price has attracted investments in other value
added products in the petrochemical sector. Major
projects include – PTTGC - USA, SABIC - Saudi
Arabia, Hengli- China and GCGV-USA.
In Fertilizer sector, major opportunities include
revival of sick FCI and HFCL units, energy saving
and capacity enhancement projects driven by New
Urea Policy 2015 (NUP 2015).
In Thermal Power sector, potential exists in
domestic projects at Ghatampur, Obra and
Jawaharpur in Uttar Pradesh. Across the globe,
some major opportunities are expected from the
upcoming Combined Cycle Power Plants and
Supercritical Plants especially in South East Asia
and Middle East regions.
In Nuclear sector, the GOI has approved annual
budget allocation of ` 3000 crore for expansion of
Indigenous Programme viz. Kudankulam 5&6 and
End shields for a nuclear power plant being fabricated at
L&T’s Hazira facility.
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PHWR projects. On foreign technology LWR project
opportunities will be in the year 2018-19.
For the D&A SBG, the simplified DPP 2016
came into effect from April 1, 2016. Defence
procurement is expected to gain traction and
programmes worth approximately ` 2 lakh crore
for Indian industry are expected to get converted
into orders over coming two years. The preference
for indigenously designed and developed products
will result in opportunities in newer domains.
Over the medium-term, significant opportunities
are envisaged in programmes for new-build naval
(surface as well as underwater) platforms, refit of
conventional submarines, artillery and air defence
guns, close-in weapons systems, military bridging
systems, missile programmes (repeat orders) and
sub-systems for space launch vehicles. L&T is
prepared for a proactive role in ensuring 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) between
Larsen & Toubro Limited (L&T) and Nuclear Power
Corporation of India Limited (NCPIL), with L&T &
NPCIL holding 74% and 26% stakes respectively.
Dished ends forged at L&T’s forging facility at Hazira, Gujarat.
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The JV has 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 upto 300
MT and forgings up to 120 MT in the first phase.
These have applications in critical equipment in
nuclear power and hydrocarbon industry, for
rotors in power industry, blocks for oil & gas
segment and for other heavy forgings for general
engineering applications.
Business Scenario
The demand for heavy forgings is dependent on
the outlook of the industry segments comprising
refineries, petrochemicals, thermal and nuclear
power, hydro power and other industries like steel.
The JV has been witnessing fierce competition
from global established players having excess
capacities. The domestic sectors in the fields
of nuclear and defence are expected to grow
in coming years. ‘Make in India’ campaign is
also likely to have positive impact on domestic
manufacturing sector.
The JV has been successful in getting approvals
and qualifications from many key customers. The
Company has been successful in manufacturing of
high quality Stainless Steel grade forgings required
for International Thermonuclear Experimental
Reactor (ITER) and all critical forgings for 700 MW
domestic nuclear power program. The JV is also
developing special grade steels and forgings for
domestic defence strategic programs.
The JV has been manufacturing heavy forgings
for refineries, petrochemical and fertilizer plants.
The Company has successfully supplied Blow out
Preventers (BOP) and forged blocks required for oil
& gas segment
The JV is focusing on stabilizing the production
processes and improving manufacturing
efficiencies so as to remain competitive in the
market. A series of initiatives have been taken
in the areas of cost control and improving
process efficiencies. The Company has embarked
on establishment of Quality Systems in the
new facility, complying with ISO 9001. The
Visual for representational purposes only
L&T made a critical contribution to India’s first nuclear-powered submarine
Company has been accredited by NABL
certification for laboratories.
The strategic focus of the Company remains to
fill the technological and manufacturing gap in
the country for critical heavy forgings for nuclear,
strategic, defence and other engineering sectors.
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 critical
forgings for the next generation IPWR - nuclear
plants. Discussions are on with foreign technology
partners for possible development of forgings to
meet their specifications for future Indian nuclear
installations.
SPECTRUM INFOTECH PRIVATE LIMITED (SIPL):
SIPL is a wholly owned subsidiary of Larsen &
Toubro Limited. SIPL concentrates largely on
product development in embedded solutions,
sensors, control and signal processing and
undertakes technology development and
manufacture of avionics LRUs for military
applications. 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 IS0 27001
certifications.
The company continues to work with the Ministry
of Defence and Hindustan Aeronautics Limited
and its parent Larsen & Toubro Limited to jointly
develop new products and enhance market
presence. The Company is taking steps towards
integration of its businesses with Larsen & Toubro
Limited to drive growth and cost optimisation.
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
and Toubro International FZE, holds 70% in the
Company. The Heavy Engineering facility was
commissioned in October 2009. The Company
focuses on customers and projects in the
Middle East and supplements the manufacturing
and fabrication facilities of Process Plant
& Nuclear SBG in India. The Company has
been impacted by thinning customer project
margins due to intense competition, increase
in costs due to local regulations. The Company
has undertaken significant cost control and
right-sizing decisions in the wake of the aforesaid.
In addition to its direct outreach to customers in
the Middle East region, it also proposes to align
with other businesses/ subsidiaries of L&T Group in
the future.
171
Electrical & Automation Business
L&T offers India’s widest range of switchgear to a variety of sectors – agricultural, industrial, building and commercial. For over six
decades, L&T has been an industry leader in power distribution systems.
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.
manufacturing. E&A 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 & Rabale), Ahmednagar,
Vadodara, Coimbatore and Mysuru in India as
well as in Saudi Arabia, Jebel Ali (UAE), Kuwait,
Malaysia, Indonesia, and the UK.
The business is supported by its five decades of
experience in in-house design & development
that facilitates the introduction of contemporary
products and a high precision tool manufacturing
facility which is a pre-requisite for high quality
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
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Metering & Protection System (MPS) business units
while Projects SBG comprises Electrical Systems &
Equipment (ESE) and Control & Automation (C&A)
business units respectively.
Business Environment
Global economic growth rate is projected at
3.6 percent in 2017 compared to 3.4 percent in
2016. The pickup in global activity is projected to
be more gradual especially in emerging markets
and developing economies. The slowdown and
rebalancing of the Chinese economy, upward
movement in commodity prices, and strains in
some large emerging market economies will
continue to weigh on growth and profitability
prospects in 2017-18. Other factors such as lower
prices for energy, and the gradual tightening of
monetary conditions in the United States and
concerns of European market post Brexit still
continue to cause uncertainty. Financial markets
have been adversely impacted and global trade
has contracted. Amidst these global headwinds,
the Indian economy has held its ground firmly.
The Indian GDP has grown at a robust 7.1%.
Manufacturing sector did better than expected.
Due to a good harvest and good rainfall after
two years of drought, there is likely to be an
improvement in rural demand which will translate
into opportunities for the switchgear business.
The LV Switchgear market is expected to grow
between 8 to 10 percent and is expected to reach
` 7600 crore in 2020. Various Govt. reforms have
been initiated such as Make in India, Smart Cities,
increased infrastructure spending, etc. to boost the
economy. New Initiatives like Dindayal Upadhyaya
Gram Jyoti Yojana, UDAY, Smart Cities, Smart
Grid, Pradhan Mantri Krishi Sinchayee Yojana &
increased focus on renewable energy taken by the
government, show a promising future. But these
initiatives will take time to get to ground and
start generating business. These initiatives will see
incremental revenue for coming 5 years.
Rising investment in alternative source of energy is
expected to contribute to the growth of Medium
Voltage and Low Voltage switchgear used for
switching and general protection. Moreover,
this application area will also trigger demand for
Miniature circuit breaker (MCB) and Molded case
Circuit breaker (MCCB).
Telecom sector looks promising with grand
scale launch of Reliance Jio, which has added
competition in consumer market place. Further,
this sector is witnessing consolidation. We received
good share of business from Reliance Jio in
2016-17 and continue to expect similar business
opportunities.
Huge Infrastructure opportunities are seen
in ASEAN region, especially in Indonesia and
Thailand. Also, there are opportunities in
Infrastructure segment in Qatar, Kingdom of Saudi
Arabia and UAE particularly in Metros, Airports &
Hospitals in the wake of FIFA 2022 (Qatar) & EXPO
2020 (UAE).
Significant Initiatives:
The business continued to devote its resources
and capabilities to research and development
endeavours, 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 centres network with
international labs, testing centres and academic
institutions to keep abreast of new technology
trends and introduce them to customers in
different segments.
Range of Digital Panel Meters
173
Switchboard installation at a power plant. L&T provides power distribution and control solutions across the value chain,
from generation to end user.
During the year, E&A business filed as many as
101 Patents, 3 Trademarks, 4 Design applications
in India, along with 2 foreign patent applications
(both in Malaysia) and 18 foreign trade mark
applications (6 trademarks each applied for
registration in Indonesia, Vietnam and Malaysia).
This was the 10th consecutive year of filing more
than 100 patent applications. The business has
received grants for 50 patent applications (46 in
India, 1 in USA, 1 in Australia & 2 in European
Patent office)
In 2016-17, focused R&D activities have enabled
ESP to have a healthy New Product Intensity (NPI)
index of >25%-an index which measures the sales
of products introduced in the market in last five
years to the total sales in the financial year.
In 2016-17, various new products and variants
were introduced in the areas of power distribution
and motor control. Some of the notable additions
are AU range of final distribution products,
Sub-main Distribution boards, new ratings in
Omega range of Air Circuit Breakers and Busbar
Trunking systems. New versions in submersible
pump controllers for the agriculture market and
DC contactors in telecom applications were also
launched. Comprehensive product portfolio to
provide solution for Power Quality Management
was launched. SMARTComm solution is now
available to its customers.
The Metering & Protection Systems (MPS) business
unit is engaged in the design, development and
manufacture of electricity meters, protective
relays and metering solutions. The product range
includes Meters for every segment of consumers
as well as for inter and intra utility electricity
exchange – residential, commercial, industrial and
feeder meters.
In 2016-17, the business unit has focussed on
the introduction and deployment of meters and
solutions for new segments which include Prepaid
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Metering, Automated Remote Meter Reading
and Smart Metering. These solutions will enable
L&T to participate in the upcoming Smart Grid
and Smart City initiatives of the Government of
India. The Smart Metering solutions are aimed at
helping Electricity Utilities improve their efficiency
by reducing aggregate technical and commercial
losses through prepaid collection of money, meter
reading free from human intervention, on-line
alarms and alerts for failure/theft of energy,
remote disconnection on non-payment of dues,
etc. The range also includes bi-directional meters
which are capable of recording energy generated
through renewable resources like Solar and Wind.
In addition, MPS has also worked on improving
cost efficiencies through the introduction of new
cost-effective platforms for the core conventional
meters.
The technology and design of these meters and
solutions is totally in-house with a high focus
on quality and reliability and compliance to
specifications and standards.
In 2016-17, the Electrical Systems & Equipment
(“ESE”) business unit put in a lot of effort to
introduce new product and technology absorption
for better penetration not only in domestic market
but also in international domain. ESE has increased
its Low Voltage product portfolio by introducing
ODU (Outdoor Unit) & Feeder pillars which are
widely used in infrastructure segment. ESE has
also introduced the most compact variant in GIS
(Gas Insulated Switchgear) Family. This variant will
give ESE an edge to set a new foot print in Wind
energy segment. In the coming year 2017-18,
ESE Research and Development team is working
to introduce its FRTU (Front remote terminal unit)
RMU & 11kV GIS (Gas Insulated Switchgear) for
strengthening its infrastructure & utility portfolio.
2016-17 marked as an important year for Control
and Automation (C&A) business with introduction
to new technology. During the year, Control and
Automation made an entry into Solar business
with help of a tie up with an Italian Company
for L&T branded Solar inverter completing the
portfolio for solar solution. C&A also made a
strategic alignment with IOmniscient (an Australian
company) for its video analytics specialty. During
the year, C&A also embarked on a journey to
launch its own manufactured MV drives which is
expected to be introduced in market by end of
2017-18 and completing C&A’s LV & MV drive
range. These initiatives have resulted into both,
and intangible benefits, like cost reduction, saving
of foreign exchange, expanded product range and
expansion in offerings to the infrastructure sector.
Business Outlook
Even with the new reforms initiated by the
government, the core sectors continue to show no
signs of pickup. However, launch of Schemes like
DDUGJY and IPDS give hope to see a movement
toward premium products like AMR, Prepaid &
Smart Meters in the coming years. Also scheme
UDAY is expected to improve health of DISCOMS
which will lead to higher investment by the
utilities.
Overall market will remain competitive as liquidity
with major customers continues to be a case of
worry. The business witnessed a financial crunch at
major industrial houses due to which new plants/
expansion are not being announced. Overall
industrial sector shows a muted trend. However,
the business sees an upward trend in infrastructure
sector (Metro, Airports, Railways, etc.) and its
efforts in launching products for infrastructure
sector are expected to yield results in 2017-18.
The margins in infrastructure sector, however, are
negligible due to competition from local players.
The business also sees an improvement in demand
from Agro / food processing industries during the
year 2017-18. The Marine business sees a positive
sentiment through ‘Make in India’ initiative
taken by the government which emphasizes on
indigenous content giving it an edge over foreign
suppliers. Also Indian Navy has reckoned L&T as a
strategic partner resulting in thrust on setting up
Life Cycle Support facilities in the Navi Mumbai
factory.
With continuous low oil prices, some projects
have been deferred but going forward, market is
175
showing signs of improvement and is expected
to show growth with projects picking up speed
of execution. Social infrastructure projects like
hospitals and metros are expected to continue
as planned and new high end infrastructure
projects are being announced in Dubai market
for Expo 2020 and Qatar Market for FIFA 2022.
Our dedicated focus on GCC metro projects is
expected to yield result in 2017-18. Also, unrest in
Middle East and Africa region is shifting respective
government priorities toward defence related
initiatives. South East Asia market looks attractive
as major investments are seen in building sector
for Indonesia and power sector in Bangladesh.
TAMCO GROUP OF COMPANIES:
TAMCO is the leading manufacturer of Low
and Medium Voltage switchgear in South East
Asia with manufacturing facilities in Malaysia
and Indonesia. Its products are widely used in
power, oil & gas, construction and manufacturing
industries. Through extensive R&D and advanced
manufacturing technology, the TAMCO group is
able to deliver high quality, safe, reliable and cost
effective products. TAMCO’s strength has been its
flexibility to develop and adapt products to meet
customers need and therefore has a high reference
list across the globe. TAMCO celebrated 50 years
of operations this year.
Mumbai International Airport’s Network Operations Centre
– powered by L&T’s Control and Automation solutions
176
The business environment in 2016-17 continued
to be challenging as low crude oil prices negatively
impacted Tamco’s main export market, the Middle
East. There were lesser opportunities which led to
price war between competitors and brought down
the market prices of our products. In addition to
that, a setback in its type test for Kahramaa, Qatar,
affected all Utility and private market prospects
in Qatar and also led to cancellation of over
` 300 crore of order backlog. Even the domestic
Malaysian market was adversely affected by oil
prices and political turmoil, leading to delays
in projects and new investments. However, the
depreciation of the local currency (Ringgit) helped
it maintain its profitability in export jobs, despite
drop in prices.
The positives for the year were approval of its Gas
Insulated Switchgear, GV3N in UK Utilities and
approval in KNPC, Kuwait. TAMCO concluded
an agreement with Fullpower, UAE to buy kits
from it to build Gas insulated switchgears in
Iran. Despite delays in new projects in Malaysia,
TAMCO managed to secure a large share in Utility
tenders and retained its market share in this
market. TAMCO was also awarded the Frost &
Sullivan award for “MV Switchgear manufacturer
of the year” for the second year in row. Malaysian
economy is likely to grow in infrastructure with
many projects planned for the upcoming year.
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 decline in oil revenues 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.
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.
Despite stiff competition, LTEAFZE won a major
order worth ` 500 crore from Qatar Rail Company
(QRail) for Phase 1 of Doha Metro for a network-
wide Building Automation & Control System.
This project will build a significant reference
for its business and open doors for many such
opportunities in the future.
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
2017-18. While some countries show some
investment slowdown in energy and infrastructure
sector, Oman, Qatar and Kuwait continue to
move forward with earlier announced projects
finalized earlier, which will give opportunities
to LTEAFZE in 2017-18. Projects focused on any
process improvement, Security, Surveillance and
/ or Environment friendly practices will generally
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 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 has been
approved by almost all major end users in the
Kingdom e.g., SABIC and Saudi Aramco.
During the year 2016-17, LTEASA saw lower order
inflow in view of deferment and cancellation of
projects which led to drying up of the order book
and lower sales, leading to a negative bottom
line. While it is expected that stable oil prices may
lead to revival of critical projects in KSA mainly in
Oil and Power, the economy is expected to grow
slowly. LTEASA received order from Alstom A/c
Riyadh Metro for MV and LV equipment, and going
forward, it expects many opportunities in Metros,
Airports and Port projects. Introduction of VAT will
impact buying decision and will have a favorable
impact on local manufacturing.
The fiscal year 2017-18 will be a challenging
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 segments, the key focus area would
be the infrastructure sector, especially Mega
Metro and airport projects. Due to availability of
product range now, LTEASA feels confident about
addressing requirements in these segments.
177
HENIKWON CORPORATION SDN BHD,
MALAYSIA:
Established in 1982, Henikwon Corporation is
a 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, industry and
infrastructure segment projects across regions.
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.
Business environment in 2016-17 was not
favourable and Henikwon lost orders, mostly
on account of cost. With material content
being more than 70% in its products, it will be
crucial to maximize penetration in new smart
& cost competitive ‘S-line’ range in 2017-18.
Significant opportunities are seen in buildings
& infrastructure segment in regions relevant to
its operations. Henikwon is closely collaborating
with key stake holders in some of the major
infrastructure and metro projects coming up across
multiple locations e.g., KSA, Qatar, Malaysia,
India etc. Manufacturing of the product range in
India has commenced which is likely to increase
competitiveness.
SERVOWATCH SYSTEMS LTD, UK
Servowatch is a marine automation company
based in Maldon Essex UK. Acquired by
L&T in April 2012, it currently has 43 personnel
working within the business. Servowatch is
recognized as a world’s leading system integrator
for Modern naval platforms, Super Yacht
installations and Commercial marine operators.
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 are able to 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 2016-17, Servowatch successfully
completed MARS Project (Tankers for Re-fuelling
UK Royal Navy built by DSME in South Korea) using
the new software Winmon 9. The project includes
total of 4 vessels out of which 1st vessel sailed for
sea trials. This will be a significant reference for
large naval vessel systems and open doors to other
markets. With approval & successful sailing of the
Royal Navy Ship, orders are also expected from
New Zealand & Thai navy.
KANA CONTROLS GEN. TRADE AND CONT. CO.,
KUWAIT
LTEAFZE acquired the Kuwait-based Kana
Controls General Control & Trading Company in
September 2013. Kana Controls, established in
1990, offers systems solutions in Automation &
telecom. Kana Controls is approved with most
customers in Kuwait and provides a good platform
to serve the control and automation business
opportunities in Kuwait. Also with increased focus
on implementations of security and surveillance
solutions by in-kingdom companies, Kana Controls
is better placed for such jobs in Kuwait.
178
Hydrocarbon Business
One of many mega-offshore projects executed by L&T’s hydrocarbon business. Picture shows captive heavy-lift-cum-pipelay vessel
LTS 3000 in the background.
Overview:
The Hydrocarbon business provides integrated
‘design to build’ turnkey solutions for the global
Oil & Gas Industry including oil & gas extraction
and processing, petroleum refining, chemicals &
petrochemicals, fertiliser sectors and cross country
pipelines and terminals. The in-house capabilities
enable it to deliver complete end-to-end
solutions from front-end design through detailed
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 a fully integrated capability chain
including in-house engineering and R&D centres,
world-class modular fabrication facilities as well
as onshore construction and offshore installation
capabilities. The business has repeatedly delivered,
large, critical and complex projects, globally, by
virtue of its customer focus & responsiveness,
experienced & highly skilled human resources,
world-class Quality & HSE practices and culture
of excellence. The principles of the Company’s
business philosophy are striving for excellence in
corporate governance, HSE & quality standards,
extensive IT enablement & state-of-the-art IT
security practices, on-time delivery and cost
competitiveness.
Major facilities in India include Engineering
& Project Management Centres at Mumbai,
Vadodara, Chennai and Bengaluru and Fabrication
179
Yards at Hazira (near Surat) and Kattupalli (near
Chennai),whereas, overseas presence is primarily
in the Middle East in UAE (Sharjah), Saudi Arabia
(Al-Khobar), Kuwait and Oman (Muscat). The
business also has a major Modular Fabrication
Facility at Sohar in Oman held through a
subsidiary.
has been successfully executing large offshore
platforms and pipeline projects on east and west
coasts of India, the Middle East, South East Asia
and Africa, for global companies such as ONGC,
GSPC, British Gas, ADMA-OPCO, Saudi Aramco,
Bunduq, Qatar Petroleum, Maersk Oil Qatar, PTTEP,
Petronas Carigali and Songas.
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 lump sum turnkey EPCIC
solutions to the Global Offshore Oil & Gas industry
encompassing wellhead platforms, process
platforms & modules, subsea systems & pipelines,
brownfield developments, offshore drilling rigs
(upgrade and new-builds), floating production
storage & offloading (FPSO) topsides and offshore
wind farms. For more than 25 years, the business
Its Offshore Engineering Centre has comprehensive
engineering capabilities covering the complete
project life cycle from concept studies, FEED, 3-D
model based detailed engineering, and special
studies to commissioning for offshore projects. The
installation capability resides in the joint ventures
L&T Sapura Shipping Private Limited, (which owns
and operates a Heavy Lift Cum Pipe Lay Vessel –
LTS 3000) and L&T Sapura Offshore Private Limited
(which provides offshore installation services).
The business secured major EPCI awards in
consortium, under a Long Term Agreement (LTA)
with Saudi Aramco. These include the development
of Hasbah Offshore Gas Field involving 6 wellhead
topsides, 2 tie-in platforms, about 520 km of
offshore / onshore pipelines followed by two
separate contracts, one for supply & installation
Additional development of Vasai East Project for ONGC. The scope included EPCIC of 2 wellhead platforms,
35 km pipelines and modification.
180
of 4 wellhead decks in the Safaniya field and the
other one for upgradation of 17 platforms in
various offshore fields of Saudi Arabia.
On the domestic front, the business secured an
EPCIC contract for Neelam Re-development &
B173AC project of ONGC involving a new process
platform, three new wellhead platforms, 32 km
pipeline and clamp-on / modification of existing
platforms in the Neelam Field in the western
offshore basin in India. During the year, the
Company successfully completed the Additional
Development of Vasai East Project for ONGC.
Contributing to India’s exploration and production
activities in the Oil and Gas sector, the business
has signed an exclusive Memorandum of
Understanding with GE Oil & Gas to partner in
the manufacture of subsea manifolds for future
deepwater projects in the Krishna-Godavari basin
on the east coast of India.
Hydrocarbon Onshore:
The business provides EPC solutions for a wide
range of hydrocarbon projects covering upstream
oil & gas processing, refining, petrochemicals,
fertilisers (ammonia & urea complexes), cryogenic
storage tanks & regasification terminals including
LNG and cross country pipelines. The business
has a track record of successful simultaneous
execution of multiple mega projects using diverse
technologies from process licensors like UOP,
Axens, Haldor Topsøe, CB&I Lummus, Black &
Veatch, Ortloff, ExxonMobil, BOC Parsons, Invista
and Davy Process Technologies.
Its Design Engineering Centres viz., L&T-Chiyoda
for onshore engineering and L&T-GULF for
Pipeline engineering enable the vertical to offer a
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 IK-EPC opportunities.
The business has executed Lump-Sum Turnkey
(LSTK) projects for various Indian oil majors such as
IOCL, MRPL, ONGC, OMPL, BPCL, HPCL, Reliance
52”x 107 km Habshan-Ruwais-Shuweihat Gas Pipeline
Project for GASCO, Abu Dhabi (UAE).
Industries, etc., as well as fertilizer companies like
NFL, GNFC, RCF, and others.
Internationally, the business group is prequalified
by major international oil & gas producers and
has a successful track record of project execution
with international bellwethers like Saudi Aramco,
Abu Dhabi Gas Industries (GASCO), Petroleum
Development Oman (PDO), KOC, KNPC, Petronas,
Dolphin Energy, Chemanol, etc.
During the year, the business received orders from
Indian Oil Corporation for a Coke Drum System
Package of Delayed Coker Unit (1.7 MMTPA)
at Haldia Refinery in West Bengal as well as for
setting up a 0.74 MMTPA INDMAX Fluid Cracking
Unit (FCC) including a LPG Treatment Facility at
Bongaigaon Refinery in Assam. The business also
received an EPC contract for Paraffin & Derivative
complex in Saudi Arabia from Farabi Petrochemical
Company.
During the year, the business successfully
commissioned the world’s largest Ethane-
cum-LNG Storage facility at Dahej in India.
Further, four international projects viz., Aviation
Fuel Depot at New Abu Dhabi International
Airport for TAKREER(UAE), Yibal Third Stage
Depletion Compression and Saih Rawl Depletion
Compression Projects for PDO (Oman) and Export
Gas Compression Facilities Upgrade Project
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for Dolphin Energy (Qatar) were completed.
The Midyan Gas Processing Facilities for SAUDI
ARAMCO achieved mechanical completion.
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, high
levels of automation, management of manpower &
material in large volume at construction sites and
Quality / HSE systems conforming to international
practices. 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 (RIL), HPCL Mittal Energy (HMEL) as
well as major oil PSUs like BPCL, HPCL, IOCL,
ONGC and international customers like Abu Dhabi
Company for Onshore Oil Operations (ADCO), Abu
Dhabi Oil Refining Company (TAKREER), Abu Dhabi
Gas Industries (GASCO), Saudi Aramco, Sadara,
Dolphin Energy etc.
An aromatic complex built on LSTK basis for ONGC
Mangalore Petrochemicals Limited
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The Company’s country specific entities render
construction support to international onshore
projects – Larsen & Toubro Electromech LLC in
Oman, Larsen & Toubro ATCO Saudia LLC in Saudi
Arabia and, Larsen & Toubro Kuwait Construction
General Contracting WLL in Kuwait.
During the year, the business received three new
orders for pipelines and associated works in
the western region of India viz. Palanpur – Pali
and Barmer – Pali pipelines for GIGL and Anjar
– Mundra pipeline for GSPL. The business also
received an order for composite mechanical works
for the Low-Cost Expansion Project of HMEL at
Bathinda and an order for additional work from an
existing client in India.
The business successfully completed an
underground Pipe-in-Pipe System for
transportation of cryogenic ethane, executed
for the first time in India, for RIL at Dahej and
installation of cross-country pipelines and
construction of Gas Gathering Stations & Well-Site
Facilities for Coal Bed Methane Development
Project Phase I for RIL at Shadol.
Hydrocarbon Modular Fabrication Services:
This business vertical offers comprehensive
modular Engineering, Procurement and Fabrication
(EPF) solutions for projects primarily in the offshore
and onshore oil & gas segments. World-class
modular fabrication facilities at Hazira (India’s west
coast), Kattupalli (India’s east coast) and Sohar
(Oman) have a combined annual capacity in excess
of 150000 MT depending on the product mix.
These facilities offer competitive and year-round
delivery capability with robust QHSE and delivery
performance.
These facilities are situated on the waterfront
with easy access to clients across the globe and
have load-out jetties for the dispatch of large
& heavy modules via ocean-going vessels &
barges. The facilities are also accredited with
global certifications and pre-qualifications from
major oil & gas customers and have state-of-
the-art equipment to deliver complex modules &
structures, duly tested at the facilities itself.
The Engineering Services vertical has a large
resource pool of over 4 million engineering man
hours. A large portfolio of industry-standard
software tools, robust IT infrastructure, and
in-house R&D facility augment its capabilities.
Benchmarked through leading certification and
accreditation systems, the engineering work
processes ensure consistent product quality and
on-time delivery.
During the year, the business has signed an
Enterprise Framework Agreement with Shell
Global Solutions BV for providing EPCM services
for Shell projects in the Middle East, South East
Asia, and India and has teamed up with Parsons
to deliver engineering solutions in the Americas.
The business secured EPCM contracts from HPCL,
GCPTCL and Haldia Petrochemicals and also
secured annual rate contracts with GSFC, IOCL,
HPCL, ENGEN, ExxonMobil, and SIPCHEM.
Business Environment:
The oil & gas industry outlook has shown some
improvement with recovery and stabilization of
crude oil prices from USD 50 to USD 55 per barrel
range. However, with global crude inventory levels
still remaining high, OPEC production cuts had
only a limited impact on price levels. The fiscal
policy shifts in the Middle East have also resulted in
uncertainty. Payment terms and distribution of risk
are becoming increasingly less favourable to EPC
contractors, thereby, increasing pressure on costs,
time and cash flow management.
With the advent of de-globalisation, the adoption
of increasingly protectionist policies has become
a global trend. The South East Asian region
continues to protect the local players under the
‘Bumiputra’ concept and more stringent local
content requirements have become the norm in
the Middle East as well, particularly in Saudi Arabia
with the In-Kingdom Total Value Added (IKTVA)
policy now an imperative for doing business in the
Kingdom.
Given the depleted business opportunities, the
abundance of assets in the market has resulted
in lower asset utilization across the board, in turn
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Load-out of offshore modules for ADMA-OPCO, Abu Dhabi
from Sohar Yard in Oman
For the first time in India, high-end technology
required for deepwater operations is being
transferred and embedded, through our
consortium partners, for ONGC’s Vashishta & S1
deepwater field development project on the east
coast of India. As part of this project, 13 subsea
structures were fabricated at Kattupalli yard, in
addition to high-tech spool base facilities for
pipe reeling. Also during the year, the Kattupalli
facilities achieved the load out of 8 legged
jacket within record time for ONGC’s Bassein
Development project.
During the year, the business received a number
of orders for the supply of modularized structures
and process modules for ongoing refinery projects
in the Middle East and Africa.
Hydrocarbon Engineering Services:
The vertical offers comprehensive solutions
covering the entire spectrum of engineering across
the oil & gas value chain, covering services from
Concept to Commissioning, Troubleshooting,
EPCM, PMC, Engineering & Procurement, Field
Engineering, Asset Integrity Management and
Operations & Maintenance.
leading to fierce pricing competition. However,
this has impacted the sustainability of some of our
competitors. Oil & Gas companies as well as their
contractors, are adjusting to the new paradigm
through reduced capex, efficiency improvement
programs and cost rationalization measures.
While investment in GCC countries have slowed
down due to budget constraints, investment
in gas projects is continuing, albeit at a slower
pace. Saudi Arabia continues to embark on major
offshore/onshore gas field development and
downstream petrochemical projects.
In spite of the extremely challenging external
environment, the Company did very well to
achieve order inflow growth of more than 80%,
over the previous financial year.
Significant Initiatives:
The fiscal year 2016-17 was a year of
transformation and turnaround for the
hydrocarbon business. The business has set a
vision to “Revolutionize the Hydrocarbon Industry”
and mission of “Execution Par Excellence”. The
Company is implementing a transformation plan
with a view to offer integrated services, reduce
costs, improve competitiveness and aid profitable
execution.
3-D CAD model of Gathering Centre (GC-30) for
Kuwait Oil Company
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As a part of company-wide LAKSHYA 2021
Strategic plan which was unveiled during the year,
a number of initiatives have been taken up. The
business embarked upon an Operation Excellence
initiative, which is aimed towards achieving refined
cost structures, alignment for timely project
deliveries, and optimizing fund deployment. This
initiative is progressing well and is expected to give
sustainable results.
The capability building initiative is well
underway. This initiative aims towards building
globally-benchmarked project leadership teams
for executing large international projects and
developing & institutionalizing an international
project capability development engine. The
business has also launched a Digital transformation
initiative towards further improving productivity
across the business functions.
A dedicated International Business Development
set-up across the business verticals was established
during the year, which has started yielding results
in terms of significant international order inflow
and penetration into newer geographies like
Algeria & Azerbaijan through pre-qualifications.
Risk Management & Internal Controls:
Pro-active Risk Management has been
identified as a key strategic initiative to ensure
sustainable growth. Risk Management is an
integral part of the overall governance process to
identify, segregate, mitigate, control and monitor
various risks at business, prospect and operational
levels.
The risk management policy and guidelines
incorporate global best practices and
procedures, which enable the business to
anticipate challenges and opportunities to achieve
strategic objectives.
The major risks such as onerous contract terms
by client, tight schedule, counter-party risk,
localization requirements, forex exposure, etc. are
mitigated through specific actions like operational
excellence initiatives, alliances, cost optimisation,
improved customer intimacy, 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 process by the Apex Risk Management
Committee (ARMC) at business and at the
corporate level as per well-defined authorization
limits. The process involves a detailed assessment
of risks and deliberation on mitigation measures by
the ARMC. Periodic risk assessments of the overall
business and ongoing projects are also carried
out to effectively control & mitigate emerging
business risks. Project managers/selected project
team members undergo a certified Risk Induction
Program conducted by ECRI (Engineering &
Construction Risk Institute) on a continuous basis
to get acquainted with industry’s best practices.
Structured risk management framework will
further strengthen business governance, leading to
improved operational performance and setting the
course towards realizing LAKSHYA 2021.
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). The operating effectiveness of various
controls is periodically tested, and deficiencies, if
any, are promptly rectified.
An in-depth exercise for evaluating the adequacy
of Internal Financial Controls and their Operating
Effectiveness was carried out in the earlier years.
This activity included understanding and testing
of Internal Financial Controls and evaluating their
operating effectiveness based on the assessed risk
factors. During the year, the effectiveness of the
controls was validated.
Human Resource Development:
The business is on a growth trajectory and
has started sailing through the transformation
phase. To keep abreast with the growing needs
of the business, the HR team has been holding
the baton for achieving excellence by being
the frontrunner in various initiatives. In order
to effectively percolate the transformation plan
and management expectations, regular town
hall sessions are conducted at various locations
with the Senior Management. This has helped
in enhancing the employees’ morale and
collaborative spirit.
To realise the vision, HR function of the business
is ably supporting the building of capability and
capacity, towards which a multi-pronged strategy
has been developed and deployed. In particular,
the HR team has been at the forefront of the
company-wide capability building initiative.
Further, HR policies & practices have been aligned
to achieve an efficient delivery model and meet
dynamic business requirements.
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.
As part of the Corporate HSE Plan, cross-functional
HSE audits were initiated across all business units.
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
programmes were held, and motivational schemes
were instituted. This has resulted in a marked
improvement in safety statistics over the previous
year.
The Company has released its Sustainability Report
– “Engineering the Transformation” in December
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2016 which covers various initiatives taken across
the Company and highlights the need to enhance
performance across all sustainability parameters
– safety, energy, water conservation and
productivity. As a responsible Corporate Citizen,
the business is aware of its responsibility towards
social upliftment, which is an integral part of the
corporate culture. The CSR Framework of the
business lays down the principles and programmes
for the community at large, in accordance
with section 135 of the Companies Act 2013.
In-line with the Group’s CSR theme “Building
India’s Social Infrastructure”, L&T Hydrocarbon
is committed to implementing projects that will
contribute to improving the quality of life in
the communities in which it operates, including
education, healthcare, skill training institutes,
water supply and sanitation facilities.
The consistent and ardent efforts of the business
to achieve consistent safety performance
have been well appreciated particularly in the
international operations. The business has won
several national and international accolades from
eminent institutions like Frost and Sullivan (F&S)
and The Economic Times (India Manufacturing
Excellence Award (IMEA)) and clients like British
Gas, Petronas Carigali Myanmar, Kuwait Oil
Company, ADNOC/Takreer and Reliance Industries.
Outlook:
Following the prolonged downturn, the oil &
gas industry is showing some signs of revival,
with oil prices expected to be range bound in
the mid-fifties per barrel in the near future.
In the domestic offshore sector, the launch of
Open Acreage Licensing Policy is expected to
attract investment in the E&P sector and ONGC,
in particular, is progressing on its USD 5 billion,
4 year investment plan for the development of
deepwater field KG/98-2 off 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 & GE to develop cost
effective subsea solutions. A number of brownfield
and decommissioning projects are also expected to
come up in the near future.
The Indian Public Sector refineries are embarking
on upgrades to comply with BS-VI emission norms,
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Gas processing facilities for Saudi Aramco near Tabuk in Saudi Arabia.
though the mode of execution is expected to
evolve over the period. These refineries also have
investment plans for integrating petrochemical
projects along with refinery upgrades, which
will offer opportunities to Onshore as well as
Construction Services verticals.
Towards providing geographical risk diversification,
the business is looking to explore newer markets
which offer good long-term business potential
and has undertaken intense & successful pre-
qualifications efforts in North Africa and CIS
regions.
The roll-out of comprehensive Urea Policy by the
Government is expected to revive Public Sector
urea plants at Gorakhpur, Sindri, and Barauni.
Energy efficiency improvement projects are
being actively pursued in existing fertilizer units.
The Government is focusing on setting up LNG
infrastructure and investments in LNG receiving
plants, both land-based terminals as well as
Floating Storage Regasification Unit (FSRU) are on
the anvil.
In the Middle East, Saudi Arabia is launching
ambitious Oil to Chemical projects with an
investment of over USD 30 billion till 2030
and the Kingdom will be a key market for
both Onshore and Offshore verticals. In the
light of oil price rebound, an uptick in onshore
upstream investment is expected in the UAE. The
downstream sector in the region is also expected
to attract additional CAPEX and is witnessing
integration between refinery & petrochemical
projects.
Shale gas/oil will drive petrochemical and
fertilizer investment in the US, which will offer
an opportunity for high-value engineering and
modular fabrication services.
Modular Fabrication business is also aggressively
exploring alternative product lines such as
wind farms & process skids as well as strategic
partnerships to enhance asset utilization.
Engineering Services reimbursable business is being
expanded to de-risk the cyclical EPC business. The
Enterprise Framework Agreement with Shell Global
Solutions for providing EPCM services and the
collaboration agreement with Parsons to deliver
engineering solutions in the Americas will provide
significant growth opportunities to the business.
With a strong focus on building the Order Book
while maintaining Cost-to-Complete at bid levels,
the business is expected to show significant
improvement in its performance.
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Information Technology Business
L&T Infotech’s global headquarters in Mumbai. The Company’s solutions focus on improving efficiencies for its clients.
Overview:
The Information Technology Services business of
the Group is housed in L&T Infotech (LTI).
In 2016, NASSCOM ranked the Company as the
sixth largest Indian IT services company in terms of
export revenues. The Company was rated amongst
the Top 15 Sourcing Service Providers (Sourcing
Standout) by Information Services Group (ISG)
in 2017. It was listed among the Breakthrough
15 for the Americas region based on Annual
Contract Value (ACV) won over the last 12 months
according to the 4Q 2016 Global ISG Index™.
Its clients comprise some of the largest and well-
known corporations and Government agencies
in the world, including 52 of the Fortune 500
companies.
LTI 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, Hi-Tech and Media
and Entertainment, Hi-tech 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 its
real-world domain expertise, diverse technological
capabilities, wide geographical reach, an efficient
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global delivery model, thought partnership and
‘new age‘ digital offerings solving for complex
business challenges at the convergence of physical
and digital world.
are expected to be the major growth segments in
global IT spends going forward.
Source: NASSCOM IT-BPM Strategic Review 2017
LTI was incorporated in 1996 and is headquartered
in Mumbai, India. It leverages the strengths and
heritage of its Parent Company. The L&T Group
provides access to professionals with deep industry
knowledge in the sectors in which the Company
does business. LTI has inherited from the L&T
Group its corporate governance practices, which
place the Company in good stead in relation
to its business. In addition, it benefits from the
commonality of business verticals with its Parent
Company.
The Company’s growth has been marked by
significant expansion of digital business in various
verticals and geographies.
It provides services globally to clients in North
America, Europe, Asia Pacific and rest of the world
including India.
Business Environment:
Global IT-BPM industry grew by 3.9% and the
IT-BPM market (excluding hardware) stood at
USD 1.2 trillion in 2016. Indian IT-BPM industry
revenues excluding hardware stood at USD
140 billion in FY2017. The industry added USD
11 billion in incremental revenues last year,
representing year-on-year growth of 7.6% in USD
terms (8.6% in constant currency). IT-BPM export
revenues for the industry for FY2017 were USD
116 billion, growth of ~7.4% over the past year.
Domestic IT-BPM revenues were USD 24 billion,
a growth of ~9% from USD 22 billion in FY16.
IT-BPM export revenues are expected to grow by
7-8% in FY18 and the domestic market is likely to
grow by 10-11% next year.
Significant Initiatives:
• Client-centricity – at the heart of LTI:
LTI’s strong long-term business relationships with
its clients (96% revenue from returning business)
have helped increase scope of engagements. The
Company has also partnered with clients in various
industries to identify priority solutions focused
on efficiencies, decisions and inferences for their
respective businesses, helping clients achieve
growth in a dynamic environment.
The core focus of the Company is to solve complex
problems at the convergence of digital and
physical world for its clients.
As times are changing, the line between the
physical world and digital world is blurring by
the day. Automation marked the start of this
convergence while the future will see further
amalgamation of technologies with day-to-day
operations in both B2B and B2C settings. Cycle-
times have reduced manifold, requiring frequent
changes to the approach and decisions being
made by clients. To support such needs for data
driven and dynamic decisions, LTI, in conjunction
with its domain knowledge and strong parentage,
is working to provide a complete ecosystem right
from thought-leadership, innovative approaches
to business problems to development and
maintenance of solutions (a balanced mix of digital
and traditional offerings).
Through its renewed focus on emerging
technologies, the company looks to assist its
clients to be ‘future-ready’ to engage with their
’millennial’ customer segment.
The impact of digital technologies-Analytics,
Internet of Things, Cloud, Artificial Intelligence/
Machine Learning, Cognitive Sciences and Mobility
continues to be felt, with the growth in these
segments higher than the rest. These technologies
In Banking and Financial Services and the Insurance
industries, LTI is well prepared to take advantage
of emerging trends such as Robotic process
Automation (RPA) and artificial intelligence. With
deep expertise in leading insurance products
189
like Duck Creek, Insurity, Guidewire etc., the
Company is uniquely positioned to help clients
co-innovate. In the Energy and Process industries,
the Company is working towards creating leaner
operating models for its clients. Digital supply
chain and customer analytics are driving factors for
the hi-tech, media and entertainment industry. In
Auto/Aero industry, LTI is working as an innovation
partner leveraging its manufacturing experience
due its parentage.
The Company is particularly targeting clients who
have potential to offer opportunities with large
total contract values towards transforming their
business in the wake of the digital revolution. It
plans to achieve a higher value client portfolio by
focusing on new-age Application Management
Services, PaaS and infrastructure management
service deals, which tend to be long-term in
nature.
• Building capabilities on Digital technologies:
The Company has been steadily building
capabilities in digital technologies. Digital
businesses contribute to 26% of the revenue LTI is
working towards including Analytics and Digital in
Every Account (ADEA in Company parlance). It has
also begun its foray in newer technologies such as
virtual reality, augmented reality and the likes.
LTI’s proprietary digital platform MosaicTM is an
exhaustive representation of how LTI brings
together the power of exponential technologies to
deliver real-world business outcomes. Intellectual
Property and Offerings developed by the
company are housed in the following elements
of the MosaicTM platform for IoT, Analytics, User
Experience, Automation, AI and various other
Digital technologies:
• MosaicTM Things
• MosaicTM Decisions
• MosaicTM Automation
• MosaicTM Experience
• MosaicTM Artificial Intelligence
This platform houses all digital and next-
generation offerings under one unified umbrella
which is enabled by a four-layered ecosystem of
digital-focused practices, platforms, thought-
leadership and solutions. MosaicTM is a powerful
platform for creating new age solutions for clients.
LTI has also established business relationships with
niche players in the digital space for cloud, IoT
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L&T Infotech’s Mosaic Experience Centre.
and Automation among others with companies
like Nutanix, GE Predix, Pega, Coupa etc.
Combined with the domain expertise and existing
capabilities of the Company, such partnerships
have helped develop end-to-end offerings through
sophisticated ecosystems which can solve complex
problems in a digital economy, thus bringing
bespoke value-added propositions to clients.
Building on increasing its digital focus, in
November 2016, the Company acquired
AugmentIQ, a start-up offering IP-based, big data
and analytics solutions that allows enterprises
derive business benefits from big data. This
acquisition has helped the Company increase its
footprint in the analytical space.
In addition to acquisitions, the Company is also
investing in partnering with startups to help
enhance its digital offerings and in turn, give
startups a platform and opportunity to scale-up.
With increased adoption of SaaS and other services
components, LTI is also investing in Security as a
practice, to serve clients with services to cope with
large-scale migrations to the public and private
clouds.
The Company is actively partnering with academic
institutions such as Massachusetts Institute of
Technology (MIT), Indian Institute of Management
Ahmedabad (IIMA), Veermata Jijabai Technological
Institute (VJTI) in order to provide thought-
leadership to its clients for future digital solutions.
• Focus on organizational transformation:
Our new quality policy reaffirms our client
commitment and focus on delivering rich and
meaningful experiences to customers.
LTI is amongst the few IT Services firm to have such
a differentiated policy, with the idea that in order
to rise in the experience economy in the digital
age, there needs to be a fundamental shift from
the services mindset to the experience mindset.
With a focus on transforming the experiences of
its clients, people and systems, LTI has launched
a rigorous transformation program which
focuses on changing the way it works, interacts
and collaborates both within and outside the
organization. The Company is working towards
transforming the way it works by incorporating
Design Thinking in various capacities in the
organization across all levels.
The Company is also looking to transform the way
it delivers the traditional Application Development
and Application Maintenance projects by
automating services and inducing a DevOps
method of working with continuous, progressive
changes which complement the client business
landscape replacing the traditional delivery model
that has rigid support cycles. Flexibility and agility
are two key objectives for the Company. This will
help in a non-linear growth in the company with
faster and more efficient delivery of projects.
• Focus on people transformation:
The most crucial element of an organization is
its people. LTI has transformed various aspects of
work life for its people. The transformation begins
with articulating five key beliefs:
• Be agile
• Go the extra mile
• Push frontiers of innovation
• Keep learning
• Solve for Society
These five guiding principles aim for the
organization to be nimble towards changes,
work over and beyond the call of duty to serve its
clients, innovate on a day-to-day basis to transform
the approach to work, continuously enhance their
way of working and keep its focus on welfare for
the society.
Collaboration is key to the growth of an
organization. LTI not only provides digital solutions
and offerings to its clients, it has also adopted
digital solutions for enhancing its own approach
to work. LTI was the first company to implement
Workplace (the collaborative platform of Facebook
for organizations) in the IT services industry.
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The 20,000+ employees use this platform for
collaborative discussions and sharing of directives
within the firm across all geographies, levels and
business units. LTI is also a global service partner
for Facebook to help organizations rollout the
Workplace platform. Comprehensive services
from the Company offers comprehensive services
for change management strategy, adoption
roadmap, setup, installation, integration, use-case
development, and API extension and development.
LTI has also framed a talent strategy for adopting
newer ways of hiring such as hackathons,
online social media and improving learning
and development by offering custom courses,
conducting leadership programs and revamping
fresher hiring models.
To support all these initiatives, the Company
has upgraded its in-house IT systems to be more
digital-focused.
The Company is also recruiting global talent in
local markets particularly for high end digital
competencies.
Thus, Hiring, Engaging and retaining talent
continues to be the major focus areas for the
company. LTI added 951 professionals into its
family (net new hires), through campus recruitment
and lateral hiring in this fiscal year with an increase
in hiring premium college graduates as well. The
global headcount of the Company as on March 31,
2017 was 21,023.
• Expand geographical presence:
LTI markets and distributes its solutions directly
through its global delivery model. Apart from
penetrating into new clients in North America
and Europe, the Company is targeting further
expansion in other markets with potential, such
as Australia, Singapore, Japan, South Africa,
Ireland, Saudi Arabia and the Middle East. It has
augmented its teams in these markets to further
explore the opportunities therein.
The Company has allocated resources to these
markets to identify opportunities through greater
regional experience, expertise and client referrals.
It has recruited 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 increased presence in
Germany, France and the Nordic region and will
continue to enhance its capabilities and address
gaps in language capability and geographic
coverage in these regions.
Outlook
Enterprises today are facing an expanding base
of demanding born-digital consumers, disruptive
new entrants and intensified competition from
digital-savvy competitors. As a result, Enterprises
are looking for client-centric and nimble IT service
providers who can deliver outcomes quickly.
With our rich, real-world expertise, engineering
mindset, an enviable client list and deep desire to
be relevant, LTI is uniquely positioned to win in this
new world order. We are committed to, and have
made good progress, in our journey to become a
next generation IT services and solutions company,
focused on solving the challenges of physical and
digital convergence.
In FY2017, we delivered an industry leading
revenue growth of 10% in constant currency terms
and 9.3% in USD terms. With intense focus on
client success and comprehensive transformation
capabilities across digital, analytics, IoT, automation
and cloud, we are optimistic about our future.
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Technology Services Business
Headquartered at Knowledge City, Vadodara, L&T Technology Services helps clients gain the competitive edge by building smart
products, enabling smart manufacturing and offering smart services.
Overview:
L&T Technology Services Limited (LTTS) is a
leading global pure-play ER&D services company.
LTTS offers design and development solutions
throughout the product development chain
and provide services and solutions in the areas
of mechanical and manufacturing engineering,
embedded systems, engineering analytics and
process engineering.
A well-defined Digital Engineering strategy helps it
deliver differentiated solutions for building Smart
Products, Smart Manufacturing and enabling
Smart Services. As part of this strategy, LTTS has
developed IP led solutions like its IoT platform
UBIQWeise and smart building framework i-BEMS
that has been launched in the global market.
The key differentiators for LTTS are its domain
expertise and multi-vertical presence in industry
segments like Transportation, Industrial Products,
Telecom & Hi-tech, Process Engineering and
Medical Devices. LTTS has been recognized as an
Expansive and Established player in Zinnov Zones
2016 Product Engineering Services and features
in the Leadership Zone across 10 major industries
due to its best in class solutions, capabilities and
offerings that combine digital technology with an
innovation led orientation.
LTTS operates in five industry segments namely
Transportation, Industrial products, Telecom &
Hitech, Process industry and Medical devices. LTTS
also provides two horizontal service offerings –
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8 VERTICALS RATED IN
LEADERSHIP ZONE
AEROSPACE
10 VERTICALS RATED IN
LEADERSHIP ZONE
CONSUMER ELECTRONICS
SEMICONDUCTOR
AEROSPACE
MEDICAL DEVICES
MEDICAL DEVICES
6 VERTICALS RATED IN
LEADERSHIP ZONE
TELECOMMUNICATION
TELECOMMUNICATION
TELECOMMUNICATION
ENERGY
ENERGY
ENERGY
CONSTRUCTION & HEAVY MACHINERY
CONSTRUCTION & HEAVY MACHINERY
CONSTRUCTION & HEAVY MACHINERY
AUTOMOTIVE
TRANSPORT
AUTOMOTIVE
TRANSPORT
AUTOMOTIVE
TRANSPORT
INDUSTRIAL PRODUCTS
INDUSTRIAL PRODUCTS
INDUSTRIAL PRODUCTS
2014
2015
2016
Embedded systems and Mechanical, which cater to
all the vertical segments.
1. Transportation:
Transportation segment partners with OEMs
and Tier 1 suppliers serving aerospace,
automotive, rail, commercial vehicles, off-
highway and polymer segments. The segment
delivers end-to-end services from concept to
detailed design through manufacturing and
sourcing support and helps OEMs develop cost
effective vehicles.
2.
Industrial Products:
The Industrial Products engineering vertical
partners with OEM customers across building
automation, home and office products,
energy, process control and machinery.
This segment offers end-to-end product
development counsel, leveraging expertise
spanning software, electronics, connectivity,
mechanical engineering, industrial networking
protocols, user interface/user experience (UI/
UX), test frameworks and enterprise control
solutions.
3. Telecom & Hi-tech:
Telecom & Hi-tech segment caters to OEM/
ODMs, Chipset vendors, Telecom carriers
and ISVs, delivering end-to-end embedded
software design and development, hardware
platform design and development, product
maintenance, enhancement & sustenance,
Testing & Validation, System Integration
for communication and related solutions &
systems and field implementation services.
4. Process Engineering:
Process engineering segment provides end
to end engineering services for leading plant
operators across the globe. The industry
span and services are broadly for chemical,
consumer packaged goods (FMCG) and
energy and utility sector clients.
5. Medical Devices:
Medical Devices engineering is a dedicated
practice that is revolutionizing delivery of
healthcare by providing product development
solutions across a variety of Class I, II and
III devices, with concept design, embedded
systems, hardware and software, mechanical
engineering services, application software,
value analysis and value engineering,
manufacturing engineering and regulatory
compliance. The medical device industry is
comprised of diagnostic, life sciences, surgical,
cardiovascular, home healthcare, general
medical and other devices.
LTTS services more than 50 of the Fortune
500 companies and over 40 of the world’s
top ER&D spenders. LTTS is well poised to
meet future requirements of its customers
by investing in new industry segments and
state of the art innovation labs, adopting new
technology initiatives, expanding into new
geographies, and establishing alliances and
partnerships.
The 10,000 + highly-skilled personnel of
LTTS across 12 delivery centres and 27 sales
offices globally enable its clients to achieve a
sustainable competitive advantage. LTTS has
34 innovation labs spread across key delivery
centres in India.
Business Environment
According to Zinnov, corporations spent a total of
USD 1062 billion on research and development
and engineering activities such as product and
process development, manufacturing engineering
and other allied engineering in 2016. Of this
amount, the 500 biggest corporate spenders
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in ER&D globally (the “G500 ER&D spend”)
contributed USD 621 billion or nearly 58%.
With respect to the total ER&D offshoring market
for product engineering services as addressed by
offshore third-party service providers and global
in-house centres (the “Global Addressed Market”),
the overall revenue was USD 85 billion in 2016,
of which offshore in-house R&D centres and
third-party service providers contributed USD 34
billion and USD 51 billion, respectively. The total
R&D offshoring market revenue generated by
both India-based third-party service providers and
India-based in-house centres to global clients in
2016 was USD 22.3 billion. Of this, the third-party
service providers and in-house ER&D centres
contributed USD 8.9 billion and USD 13.4 billion of
revenue in 2016, respectively.
“Strong sales in emerging markets are leading to
a requirement of products that are tailored to the
needs of customers, thereby driving engineering
towards these markets. Increased product
complexity is translating into a greater need for
engineering work that needs to be done. Also, the
war for talent, especially engineering talent, is real
in many mature markets, and this bottleneck has
opened up opportunities for players with a strong,
well-qualified talent pipeline. All of these trends
catalyzed the ER&D industry in India,” comments
Dr Wilfried Aulbur, Partner, Roland Berger Strategy
Consultants GmbH.
India’s ER&D services sector has indeed been on a
growth path over the past five years. The market,
which is expected to reach USD 35-40 billion by
2020, is creating deep impact in verticals such
as automotive, avionics, construction and heavy
engineering and telecom.
All emerging currencies have seen significant
volatility against the US Dollar on account of
changing political and economic scenario across
the globe. For Indian third party service providers
in ER&D segment, any appreciation in Rupee will
cause a dip in margins on a sequential basis. Short-
term rupee appreciation will not have big impact
considering the hedging strategies of companies.
However, in case the Indian rupee appreciation
continues for a long time, companies may have
to offset the margin impact by tighter control on
cost, execution and delivery-efficiency measures,
etc. towards sustainable growth.
Significant Initiatives
LTTS aspires to continue to be a global leader in
the ER&D segment. Key initiatives to achieve this
objective include:
• Account Mining and Farming: As a part of
its sales strategy, LTTS has decided to focus on
top 30 customers, which contribute 65% of its
revenues. This strategy has been christened as
T-30. Under this strategy, as a client relationship
matures and deepens, LTTS seeks to maximise
its revenues and profitability by expanding the
scope of services offered to that client with
the objective of winning more business from
the clients, particularly in relation to its more
substantive and value-added services.
• Transformation Initiatives: LTTS has
initiated a few transformational projects to
further strengthen its processes, systems and
global delivery models to achieve operational
excellence. Identifying Account Delivery
Managers (ADMs) and Account Relationship
Managers (ARMs) to ensure account level
leadership, setting up onshore, near shore
strategic and client-led centres in geographies
like Poland, Western Europe(Auto), EU & US(CPG
& Chemicals), building processes, governance
models and leadership development plans are a
few initiatives of the transformation project.
• Investment in Technologies & Innovation
Engine: LTTS is focused on driving innovation
195
and adopting solutions in line with technological
trends. Its culture of innovation since its
establishment has enabled it to expand the
range of its offerings to customers and improve
the delivery of its solutions and products. LTTS
has initiated Proofs of Concepts (POCs), which
demonstrate the viability of a design concept
and it has also set up labs and developed new
centres of excellence, where it has invested in
new technologies such as engineering analytics,
power electronics, IoT and M2M, which has
allowed LTTS to capitalise on key growth areas
and trends.
• Patents: Since inception, LTTS has filed for 57
proprietary patents and has co-authored 197
patents with its customers. Its patent portfolio
covers many aspects of its products and the
processes for making those products and are
focused on developing mature solutions such as
UbiqWeise™, iBEMS™ in emerging technology
areas.
• Technology Events: LTTS promotes annual
technology events such as Tech Panorama,
which is an initiative by its Technology Solutions
and Innovation Centre team which serves as
a platform for its employees to participate in
technical events and forums to showcase their
skill and demonstrate their ideas. Also its open-
innovation initiative, TECHgium™ - co-sponsored
by its customers, provides a platform for the
nation’s talented engineering graduates to solve
real-world engineering problems and also get
due recognition for it. Students are given an
opportunity to use their futuristic ideas to come
up with creative solutions.
• Awards & Recognition: L&T Technology
Services was recognized as the Company of
the Year by the Indo American Chamber of
Commerce (IACC) in 2016. The IACC also
awarded the company as the Best Green Office
Space of the year for its eco-friendly campuses.
In March 2017, L&T Technology Services was
conferred with the Golden Peacock National
Quality Award, 2017, as a recognition of the
company’s consistent focus in enabling new
196
technologies for global businesses. LTTS has also
won the Dataquest Vertical Warrior Award in
IT/ ITeS for innovative use of digital technology
earlier in 2017.
Its delivery centres are ISO 9001:2008-certified.
Its Aerospace & Medical Devices practices are
AS 9100C and ISO 13485:2003 certified. Also
its Embedded Systems & Software activities are
assessed at Maturity Level 5 of SEI’s CMMi®
Development.
• Partnerships and Alliances: The recent global
alliances established by LTTS include a Digital
Engineering Transformation partnership with
Microsoft Corporation to deliver Microsoft Azure
Engineering Solutions for global enterprises
across industries. This strategic partnership
enables enterprises around the world to leverage
the cutting-edge IP-led Digital Engineering
solutions of LTTS hosted on Microsoft’s Azure
enterprise cloud-first, mobile-first infrastructure.
LTTS has also partnered with UTC Climate,
Controls & Security and Otis, units of United
Technologies Corp. to create an innovation
laboratory focused on integrated buildings, smart
homes and cold chain technologies. Other notable
alliances and partnerships include AUTOSAR, Tele2,
National Instruments, Sierra Wireless & Thing
Worx.
Engineering services that enhance efficiency, while reducing
time-to-market and costs.
Outlook
While traditionally the technology services industry
globally has been impacted by macro-economic
factors and is sensitive to the cyclic nature of
certain businesses, the potential remains as
strong as ever for relevance of engineering
services. For instance, global automotive OEMs
are moving rapidly towards implementation of
infotainment systems and autonomous vehicles.
The Industrial Products market continues to offer
immense growth potential, while the positivity
in the Telecom & Hi-tech market is boosted
by technological advancements, infrastructure
availability, high customer demand and supplier
push by the semiconductor industry. Medical
device manufactures are aggressively looking at
emerging markets and new product development.
Notwithstanding volatile commodity prices and the
slowdown in capex spending by manufacturing
companies in the Process Industry, the potential for
growth is visible in certain specific segments like
the Food Industry.
LTTS has established a strategic presence
in differentiated sectors and developed the
specialized domain knowledge that should enable
it to successfully help customers and gain from an
economic upturn.
LTTS will capitalize on disruptive technology
trends as part of its five year strategic plan
Lakshya that emphasizes profitable growth. It will
harness opportunities in four critical areas - digital
engineering for smart products & services,
smart manufacturing & operations, perceptual
engineering and pervasive technologies. LTTS
took a big step in this direction with the recent
acquisition of US-based Esencia Technologies, a
move that will strengthen LTTS footprint in ASIC,
VLSI, Embedded Design Services and Hi-Tech
sectors, where it foresees growth momentum.
LTTS will continue on its journey of using advanced
technological solutions to delight customers and
create value for all stakeholders.
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Financial Services Business
L&T Financial Services’ offerings span the geo-socio-economic spectrum and comprise solutions in retail finance, wholesale finance,
investment management and wealth management.
The Financial Services business segment comprise
of 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 included
general insurance which was housed in a wholly-
owned subsidiary, L&T General Insurance Company
Limited (L&T GICL). The group divested its stake in
L&T GICL during the year.
Management business, is carried out through its
wholly owned subsidiaries.
Business Environment
1. Rural Finance
LTFH’s strength in Rural Finance makes it one of
the fastest growing NBFCs in this sector. LTFH is
now a single brand under L&T Financial Services
(LTFS) offering through multi channels, multiple
financing products like Farm Equipment Finance,
Two-wheeler Finance and Microfinance.
L&T Finance Holdings (LTFH)
L&T Finance Holdings’ business organised under
verticals structured as the Retail and Wholesale
Platform, Investment Management and Wealth
(a) Farm Equipment Finance: The tractor industry
grew ~15% in the year 2016-17 after two
continuous years of market contraction. The
positive growth was on account of a normal
monsoon cycle which has helped reinvigorate
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the demand in this sector. With monsoons
expected to be normal this industry is
expected to grow at ~ 7-8% this year.
partners to capture higher counter share at
chosen dealers through a differentiated value
proposition
During the year, LTFH gained market share,
doubling its share of the farm equipment
financing market to 8.6% in the second half
of the year 2016-17 from a 4.2% in the first
half. However, the business witnessed a YoY
Contraction by 11% in disbursement, along
with a book de growth of 6%. This trend is
expected to reverse in the current year with
excellent growth in both disbursements and
book.
LTFH has competitive advantage in this
segment in terms of its proven ability to
last through the cycles, differentiated value
proposition for top Dealers, analytics driven
business mix and channel management and
technology led sourcing and credit decisioning
for superior service proposition.
In this segment, the future strategy of LTFH
is to create a right portfolio mix across
geographies, OEMs and new/refinance,
digitise the entire process and provide a
differentiated value proposition to LTFH
The Retail Finance business participates across the income
cycles of the rural economy – from farm equipment to
commodity storage and more…
(b) Two-Wheeler Finance : The Two-wheeler
industry posted a healthy YoY growth of 8%.
The market in FY18 is expected to remain
stable with a demand influenced by structural
factors like growing middle class segment and
urbanization.
Technology-led sourcing along with analytics
driven channel segmentation enabled
LTFH to gain market share. LTFH’s domain
expertise and in-depth knowledge in chosen
geographies have laid the foundation of its
strong business growth. A well-established
network and tie-ups with OEMs enabled LTFH
to retain a strong market position. In FY 17,
the two-wheeler finance business witnessed
a YoY growth of 10% in disbursement, along
with a book growth of 20%.
LTFH has competitive advantage in this
segment in terms of technology led sourcing
and decisioning, analytics driven channel
selection and differentiated value proposition
for top dealers and market depth in chosen
geographies
In this segment, the future strategy of LTFH is
to enhance TAT proposition through mobility
solutions and automated credit decisioning,
further increase market penetration in
its chosen geographies and develop new
locations and increase market depth by
exploring entry into self-financed segment
(c) Microfinance: The microfinance industry
has recorded a 26% YoY growth for the
year the year 2016-17. However, there
has been a trend of decrease in growth
since demonetization. LTFH believes that
the decrease is not entirely attributable to
demonetization as other external factors and
vested interests also impacted performance
in certain geographies. The industry appears
cautious and a pause in growth can be
expected in the short term.
199
(a)
Infrastructure Financing: Over the last year,
the Government of India introduced several
policy changes targeted at speeding up the
infrastructure development in the country.
The Renewable Energy sector reported a
record capacity addition of over 11 GW in
the year 2016-17, an increase of around
60% over 7.1 GW reported in FY16. The
outlook for the road sector has improved
through improvements in dispute resolution
framework, focus on EPC contracts and
generating financial resources for future road
construction.
The infrastructure book in its focus sectors
of renewables, roads and transmission
showed a healthy growth. The infrastructure
lending platform saw its fee income
doubling in the year 2016-17 through larger
underwriting and advisory mandates. This
was ably supported by the down-selling
desk which doubled its down-sell quantum
in this year. The Infrastructure Debt Fund
(IDF) also increased its asset base to over
` 4000 crore. Considering the stress in the
overall infra sector, LTFH proactively made
accelerated provisions over and above the
regulatory requirements in order to strengthen
the balance sheet. Infrastructure Finance
business witnessed a YoY growth of 21% in
disbursement, along with a book growth of
19%
During the year 2016-17, LTFH launched
mobility solutions, aimed towards improving
the operational efficiencies and making
the disbursement process simpler. This
move enabled LTFH to achieve the highest
single-month disbursement of ~ ` 460
crore in September, 2016. LTFH continued
its key initiatives of enhancing customer
reach, building scalability, and managing
risks effectively, attaining process excellence
and cost excellence. Microfinance business
witnessed a YoY growth of 39% in
disbursement, along with a book growth of
59%.
The post demonetization period was marked
with increased delays in repayments in certain
geographies. While the situation has improved
significantly from March onwards, LTFH
expects stress in some areas to continue for
some more time. In line with its conservative
polices, LTFH has made adequate loan loss
provisions in the year 2016-17 and will
continue to do so based on how the situation
develops.
LTFH has competitive advantage in terms of
robust risk management framework, best in
Industry productivity through differentiated
business model, proven ability to scale rapidly
and an efficient and technology enabled
delivery channel.
The future strategy of LTFH is to transform
Microfinance into a steady state retail business
by moving further towards a technology
and analytics-driven platform, expand into
under penetrated new geographies to
further enhance customer reach and further
strengthen risk management framework,
processes and systems
2. Wholesale Finance
LTFH is focused on Infrastructure Project Financing
(including Infra Debt Fund), Structured Corporate
Finance, Debt Capital Market and Supply
Chain Financing. LTFH’s strength lies in strong
underwriting ability, structuring and syndication
capabilities.
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L&T Infra Finance is a specialised project financier that
finances renewable energy and road projects.
LTFH has competitive advantage in this
segment in terms of in depth sector
knowledge, efficient transaction processing
and management capabilities, superior advice
to customers through all stages of the project
life cycle, minimal turnaround time and an
operational IDF platform
In this segment, the future strategy of
LTFH is to broaden the sectoral expertise &
develop framework for new sectors, leverage
successful PE interface in renewables for
entry into new sectors and sharper focus on
selection and structuring of project parameters
(b) Structured Corporate Finance: In the year
2016-17, the bank credit slowed down to a
60 year low of 5.1% on the back of lower
credit demand and increased reliance on the
bond market for debt requirement. Despite
the above trend, LTFH’s structured corporate
finance expanded its asset base in the year
2016-17 with persistent focus on both growth
and profitability. The growth trajectory has
been backed by robust origination ability and
detailed appraisal process. The structured
corporate finance asset size showed a healthy
28% growth and doubling of disbursement
numbers in the year 2016-17.
LTFH has competitive advantage in terms
of robust origination ability & exhaustive
appraisal process and expanded product suite
with introduction of IPO funding in response
to conducive market environment
The future strategy of LTFH is to deliver steady
state high spreads along with high fee income
through superior structuring of financing
solutions
(c) Debt & Capital Market (DCM) : LTFH’s
DCM business invests in select infra
project issuances and financial institutions.
Additionally DCM entered structured finance
segment in the year 2016-17. DCM desk
doubled its disbursements, sell downs
and profitability to demonstrate excellent
investment and portfolio management
philosophy.
LTFH has competitive advantage in this
segment in terms of credit focussed
approach to the business and large ticket size
underwriting capability
In this segment, the future strategy of LTFH is
to aim to take sole/ anchor investor positions
thereby positioning L&T financial services as a
significant player
(d) Supply Chain Finance : During the year
2016-17, LTFH tied up with marquee names
in the distribution business of information
technology and mobility segment. The
supply chain business showed consistent
disbursements while increasing the
profitability through increase in margins
and opex control. Supply chain Finance
business witnessed a YoY growth of 10% in
disbursement, however, along with a book
degrowth of 7%.
3. Housing Finance
LTFH has identified housing finance as one of
its core sectors based on the long term growth
prospects of this industry. LTFH’s products in this
sector include Home loans, Loan against property
& Real estate finance.
(a) Home Loans & Loan against Property (LAP):
The year 2016-17 witnessed sluggish trend in
real estate sector on account of high prices,
inventory overhang and high interest rates.
While overall price levels have largely been
unchanged in most cities, luxury segment has
seen some correction. Demand for housing
is expected to see revival this year after a
slowdown over the past 2-3 years. This is
primarily on account of affordable housing
segment, which includes residential units for
Economically Weaker Sections, Lower Income
Group and Middle Income Group segments.
At beginning of the year 2016-17, LTFH
realigned its focus towards disbursing loans
to self-employed customers. It also focused
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real estate finance business. In the commercial
office segment, major metros have seen
strong demand for Grade A office space
leading to a higher occupancy and robust
rental growth. Real estate finance business
witnessed robust YoY growth of 74% in
disbursement, along with a book growth of
40%.
LTFH has competitive advantage in this
segment in terms of comprehensive product
suite to address top developers’ funding
requirements, robust risk management &
early warning signal mechanism and strong
processes to deliver faster TAT
In this segment, the future strategy of LTFH
is to focus on top real estate developers with
the aim to build sustainable relationships,
build a wider product portfolio and focus on
Syndication/Sell down for risk distribution
and leverage the L&T ecosystem for business
growth and market intelligence
4. Mutual Fund
India’s mutual fund industry witnessed a 35%
growth during the quarter-ended March 2017,
taking the Average Assets Under Management
(AAUM) to ` 1829583 crore, as compared to
` 1353443 crore AAUM recorded during the
quarter-ended March 2016.
L&T Housing Finance fulfills the desire for home ownership in
over 40 markets across the country.
on doing a larger share of business through
direct sourcing. Despite challenging market
situations, LTFH’s Home Loan and LAP book
grew by 21% during the year, touching a new
milestone of ` 7500 crore.
LTFH has competitive advantage in this
segment in terms of sharpened proposition
to strengthen the product offering to
self-employed customers and streamlined
processes to deliver faster sanctions and
disbursement TAT to the customer.
In this segment, the future strategy of LTFH
is to drive operational efficiencies through
digitisation and automation, go digital and
use analytics for direct sourcing and cross
selling, focus on key locations to bring in value
contributors and manpower productivity and
leverage L&T ecosystem for business growth
and market intelligence
During the year 2016-17, the Mutual Fund
business continued its previous year’s growth
momentum. With YoY growth of 39%, the
business outperformed the industry growth rate,
while maintaining a healthy mix of core assets
under equities and fixed income and a strong
investment performance, supported by strong
inflows into the core products.
(b) Real Estate finance: Real Estate is transitioning
towards a more regulated industry with
the introduction of Real Estate Regulatory
Authority (RERA). Low home mortgage
interest rates, Government schemes such
as Pradhan Mantri Awas Yojana and State
Affordable Housing Policies are providing a
fillip to the real estate sector and consequently
LTFH has competitive advantage in this segment in
terms of robust performance of the Fund’s equity
schemes and diversified and ever-expanding reach
across distribution channels
In this segment, the future strategy of LTFH is to
focus on building core assets to achieve the dual
purpose of achieving higher profitability while
202
revenue growth ranks it high amongst the key
market players and strong partnerships established
since inception have enabled LTFH to service the
differing needs of clients across segments, asset
classes and markets.
In this segment, the future strategy of LTFH is to
focus on Investment advisory and family office to
form new meaningful relationships and deepen
existing relationships with clients to attain a
higher wallet share. Acquisition of new clients
will continue to remain a key area of focus for the
business and increase sales strength.
L&T Mutual Fund and L&T Capital Markets Limited
provide investors with a range of investment and wealth
management options.
Significant Initiatives
(a) Human Resources: LTFH have embarked upon
ensuring stability in overall AUM, increase SIP book
to ensure steady flows and establish presence
in key counters to gain a higher share of assets,
thereby widening LTFH’s reach
5. Wealth Management
With a GDP growth hovering over 7-8% and
a strong future outlook, India’s growth story
is making it an increasingly attractive market
for wealth management firms. The regulatory
environment too is evolving, presenting
opportunities for established wealth managers to
expand their offerings.
The year 2016-17 was a turnaround year for the
business – from a loss of ` 24 crore in year 2015-
16 to a profit of ` 5 crore in the year 2016-17,
the average assets under management grew by
almost 46% during the year with Q4 2016-17
AAUS being more than ` 13000 crore. Company’s
revenue witnessed a rise of 71% during the year
2016-17, being at ` 50 crore.
LTFH has competitive advantage in this segment
in terms of comprehensive services suite including
Loan against shares, Mutual funds. Real estate
finance complements the Company’s key offerings
for HNIs. Offerings like Debt Capital Markets
significantly strengthen the customer value
proposition. A strong track record of AUS and
the “Transform” journey to LTFH 2.0 with a
sharp “Focus” on creating superior
shareholder value by “Delivering” top quartile
Return on Equity (RoE). The role of Human
Resources has significantly transformed since
2016, from being a function which used to
manage the human resources of LTFH to being
the prime driver of the change in culture
required for the successful transformation of
LTFH. All the initiatives in this area have been
designed for transforming the old LTFS into
LTFS 2.0.
LTFH firmly believes that any transformation
journey needs to be sustainable. While
the strategy LTFH has embarked upon for
delivering a top quartile RoE is a 4 year
strategy, superior value generation for the
shareholders will come only if the new way of
‘Results not Reasons’ becomes a way of life.
LTFH believes that this journey will become
sustainable if it gets 3 aspects right: (i) Clarity
and communication of Management Intent;
(ii) A well-honed execution engine and (iii) A
performance oriented Culture
LTFH’s endeavour is to ensure that its HR
processes are completely aligned with the
above three aspects and they work towards
creating leadership which makes the
transformation smooth and sustainable.
203
(b) Risk Management: The transformation journey
embarked by LTFH involves rapid growth in
its chosen businesses. Having embarked on
this transformational journey, LTFH recognises
the criticality of risk management practices
towards a longer term success. LTFH has a
robust management framework covering
various families of risk like credit risk, portfolio
risk, market risk and operational risk.
•
Risk-adjusted pricing
This tool helps to track transaction level
and portfolio level actual pricing vis-à-vis
risk-adjusted pricing. Thus giving more
clarity on value creation by products/
portfolios. This pricing tool incorporates
weighted average tenor, based on
behavioural maturity in order to align
with expected cash-flows.
During the year 2016-17, LTFH engaged a
leading global risk management consultancy
to further strengthen its risk management
framework. Based on their recommendations,
LTFH is strengthening its capabilities in the
four key areas to ensure that the businesses
operate fearlessly within the defined risk
appetite and risk tolerance levels.
•
Risk Appetite Statement (RAS)
A robust RAS is setup that acts as a
governing framework from board to front
line to facilitate trade-offs between risk,
value and growth monitors. It helps in
effective risk and return management
while providing greater clarity and
autonomy to businesses.
•
Risk Dashboards & Early Warning Signals
(EWS)
Dashboards should provide cross-risk view
and are anchored to LTFH’s Risk Appetite
Statement. It leverages risk measurement
and analytics to further enhance early
warning capabilities and to use those in
driving decisions. EWS helps in timely
identification of portfolios with increasing
risk, enabling timely remedial measures
(where applicable) and eventually driving
lower NPAs.
•
Treasury Risk Management
This gives the ability to effectively manage
the Market risk (liquidity and interest rate
risks) emanating from the core businesses
of LTFH. A robust governance framework
is setup to monitor and manage the
Market Risk Operations.
(c) Digitisation & Analytics: In line with the
theme of “Grow Fearlessly”, LTFH’s Digital
& Data Analytics roadmap encompasses
achieving multi-fold increase in “Scale”, “Cost
Effectiveness” and “Customer Experience”.
In order to enable it for achieving the same,
LTFH has decided on the following design
principles: Biometric based data capturing,
Paperless On-boarding, Transact with it on any
day in the year.
LTFH has relooked at the existing architecture,
to revamp it completely to achieve the digital
aspiration that it thrives to achieve. The end
state architecture will be modular and agile,
enabling LTFH to keep pace with changing
technology. A strong digital and data analytics
roadmap touching every aspect of the
customer journey will not only improve the
customer experience but also substantially
enhance efficiency and productivity
(d) Corporate Social Responsibility
CSR witnessed a transformation during the
year 2016-17. LTFH’s overarching theme of
Sustainable livelihoods was revisited to align
to the larger needs of the rural ecosystem
- through Integrated Water Resource
Management (IWRM). LTFS committed
itself to come up with long-term innovative
solutions benefitting the water-deprived
communities. The IWRM programme engaged
with communities to implement interventions
in order to address their core needs in water
and facilitate the rural economy through
agriculture and allied activities.
In addition to this, LTFH also focussed on Financial
Literacy. It helped in spreading the message
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of financial literacy to rural India, resulting in
enhanced absorption of facilities and schemes
granted by the Government and other financial
institutions.
Thrust areas were re-modelled to rake in the 3S
approach which believes in:
• Social Impact through right projects aligned with
company’s focussed businesses
• Sustainable development, creating right
structures
• Achieve Scale by collaborating with right
partners
Some of the highlights of the CSR activities are:
• Constructing water harvesting structures, known
as Dohas
• Creating disaster relief shelters , towards the
Tamil Nadu floods in November 2015
• Nurturing 100 Integrated livelihood development
centres in villages
• Initiating remedial education programmes
• Garnering volunteers from the organisation
(Boondein) to contribute towards CSR initiatives
Outlook
Major leading indicators suggest that the
economic activity is gradually improving. This
is driven by improving global demand and a
remonetisation-led pick-up in domestic activity.
IMF expects India to resume the 8% growth path
in the medium term. This should happen as soon
as the short-term dislocation to consumption from
demonetization passes. The nation is expected to
remain the fastest growing economy on the back
of high private consumption levels and gradually
implemented domestic reforms.
LTFH sees growth picking up significantly,
supported by a normal monsoon, modest costs
of borrowing, pay hikes for state government
employees and stronger export demand. Other
growth supportive factors will be Government’s
continued thrust on physical infrastructure and the
Real Estate Regulation Act (RERA), which will pave
way for greater transparency and accountability
in the real estate sector. The Goods & Services
Tax, implemented in July 2017, will also have
long term structural benefits, despite short-term
execution and adjustment risks during the course
of 2017-18.
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Developmental Projects Business
Kudgi Power Transmission Line project, Karnataka.
Developmental Projects business segment
comprises (a) Infrastructure projects executed
through its joint venture company L&T
Infrastructure Development Limited and its
subsidiaries and associates (L&T IDPL Group);
(b) the Hyderabad Metro Rail project, executed
through its subsidiary L&T Metro Rail Hyderabad
Limited (c) Power Development Projects executed
through its subsidiary L&T Power Development
Limited and its subsidiaries (L&T PDL Group)
and (d) Kattupalli Port operations of Marine
Infrastructure Developer Private Limited, a
subsidiary company.
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 benefit of
stakeholders.
L&T IDPL Group:
The operations of developmental projects business
segment primarily involves development, operation
and maintenance of basic infrastructure projects
Overview:
L&T Infrastructure Development Projects Limited
(L&T IDPL) is a major player in the Public-Private
Partnership projects in India with business interests
206
across Roads and Bridges, Ports, Wind energy
and emerging sectors such as Power Transmission
Lines. As of March 2017, L&T IDPL has a portfolio
of 17 projects at an estimated project cost of
about ` 17555 crore which includes 15 road
projects with 7182 kms, one transmission line
project and a port berth at Haldia.
L&T IDPL’s portfolio of infrastructure assets also
includes windmills in Tamil Nadu.
Roads & Bridges:
: 15
: 7,182 Km
No. of Projects
Lane Km
Total Project Cost : ` 16,080 crore
Port:
13 Operational Projects
2 Implementing Projects
No. of Projects
: 1
Capacity
: 4.5 MTPA
Total Project Cost : ` 125 crore
Transmission Line:
LTIDPL has 21% stake in
Berth No. 4A of Haldia
No. of Projects
Capacity
Total Project Cost : ` 1,300 crore
: 1
: 2,400 MW
• ”Transmission System
for Power evacuation“
from NTPC Kudgi (3x800
MW) of Madhugiri in
Karnataka.
• 3 sections comprising a
total length-470 KM
Total No. of Projects
Project Cost
: 17
: ` 17,555 crore
Business Environment
Infrastructure is a key sector that propels overall
development of the Indian economy. The
significant expansion of the economy over the
past two decades has led to demand for strong
infrastructure in the country. The county’s capacity
to absorb and benefit from new technology and
industries depends on quality and efficiency of
infrastructure. In order to augment economic
growth, the government initiated several policy
and enabling measures to support the creation of
high-quality infrastructure and efficient delivery of
services to its citizens.
The recent slowdown of Public Private Partnership
(PPP) projects could be attributed to a combination
of events, namely 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.
The infrastructure credit has witnessed a sharp
increase in stressed advances. The Reserve Bank
of India (RBI) has taken steps like allowing flexible
restructuring of infrastructure loans to ease cash
flow pressure in the infrastructure sector.
The budget allocation for National Highways
for the year 2017-18 is ` 64000 crore. Besides,
the union budget has also earmarked ` 27000
crore for its rural roads development programme,
Pradhan Mantri Gram Sadak Yojana (PMGSY),
under the Rural Development Ministry, which
together makes it more than ` 91000 crore for
road development. The road sector had exclusive
allocation as the Government had identified 2000
km of coastal connectivity roads for construction
and development, which would ultimately lead to
better connectivity of remote villages. The union
budget had allocated a substantial amount to
infrastructure development and termed it as top
priority of the Government.
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The government, through a series of initiatives, is
working on policies to attract significant investor
interest. The Indian government plans to develop
roads under different programmes such as National
Highways Development Project (NHDP), Special
Accelerated Road Development Programme in
North East (SARDP-NE) and Left Wing Extremism
(LWE). The government has identified development
of 2,000 km of coastal roads to improve the
connectivity between ports and remote villages.
Significant Developments
Demonetization: Since almost 98% of toll
collections are by way of cash, the announcement
of demonetization caught both the road users
and concessionaires by surprise. To avoid hardship
to the public and long queues at toll plazas, the
Roads Ministry and NHAI advised stoppage of toll
at all National Highway toll plazas exempting all
traffic from tolls across the country from November
9 – December 2, 2016 (over 23 days). The
compensation payable for such a force majeure
event varies under different concessions and
hence NHAI came out with a Standard Operating
Procedure in this regard. While the developers
have sought a cash compensation for revenues
lost, NHAI is looking at only reimbursing certain
costs and in certain cases, extension of concession
period.
An Elevated Corridor sweeping over a city – one of L&T’s
many road development projects.
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Road subsidiaries of L&T IDPL have submitted their
claims to NHAI and only about half of the total
claims have been paid by NHAI so far.
L&T Kudgi Transmission Limited (L&T KTL) being
the first transmission line project of L&T IDPL
had achieved the commencement of commercial
operations (COD) in September 2016. The
elements of the project are (a) Element 1: 400KV
line A&B between Kudgi and Narendra (New) with
a line length of 17.66 km; (b) Element 2: 765KV
line between Narendra (New) and Madhugiri with
a line length of 379.84 km (c) Element 3: 400KV
line between Madhugiri and Bidadi with a line
length of 93 km. With a total of 1169 towers
across 492 km length, the project had successfully
entered revenue stream. The project has reported
book profits from the first period of operations.
This project was also refinanced in March 2017,
thereby reducing interest rates significantly.
Construction work is in full swing in Deccan
Tollways (DTL) in Telangana and Sambalpur
Rourkela (SRTL) in Odisha. The two road projects
are expected to commence tolling in the year
2017-18.
Three road subsidiaries had issued notices of
termination of projects owing to political force
majeure and/or default by the Authorities under
the respective concession agreements. In case of
the two national highway projects, NHAI has taken
over the project operations during the year but
has not accepted the cause of termination and
arbitration proceedings have been initiated for
realisation of the claims for termination payments.
The Company has proactively engaged with project
lenders and taken legal steps wherever possible to
protect the interests of the lenders.
In the case of a state highway in Gujarat, the
subsidiary of L&T-IDPL has withdrawn its notice in
order to facilitate implementation of Strategic Debt
Restructuring Scheme by lenders to the project.
The subsidiary of L&T-IDPL and the lenders are
negotiating with the state government to improve
the project viability.
During the year 2016-17, NITI Ayog came out
with a new policy to provide cash relief to
concessionaires and contractors in the Roads
sector. Under this, the Authority would pay
75% of the Arbitration Award to the aggrieved
concessionaire against a bank guarantee and the
funds will need to be utilised for other national
highway projects. The policy is applicable to two
subsidiaries of the Company and while one of
the subsidiaries has already received claim of
` 69 crore, the second project is awaiting receipt
of claim of ` 121 crore. There are several other
claims of the road projects that are under different
stages of dispute resolution and they too would
benefit from an early settlement.
During the year 2016-17, the Company mitigated
its risk in its subsidiary in Colombo by selling its
stake. With a view to have direct management
control over the Hyderabad Metro project and also
considering its other commitments in the state of
Telangana, L&T has decided to take over the stake
held by the Company (L&TIDPL) in L&T Metro Rail
(Hyderabad) Limited. The shares held by LTIDPL
were purchased by L&T in March 2017 after receipt
of necessary approvals/ consents. By divesting
this large investment, L&T-IDPL is now in a good
position to fund its growth.
During the year 2016-17, M/s. Kudgi Transmission
Ltd & L&T Krishnagiri Walajahpet Tollway Limited
(L&T KWTL) refinanced their debt taking advantage
of the softening of interest rates and the ratings of
the projects.
Outlook:
The pace of recovery in the sector is likely to be
slow and will be linked to the on-ground impact of
the policy measures taken as well as the availability
of funds. Aggressive bidding in the past and
inability or limited ability to raise equity for Built-
Operate-Transfer (BOT) projects have impacted the
viability of infrastructure projects and have reduced
the risk appetite of developers for new projects.
The Government initiatives in rebalancing of risk
sharing, resolving legacy issues, strengthening
institutional capacity and scaling up finance etc.,
would revive the sector.
perform better during 2017-18. The Company
will continue to look for opportunities to churn its
portfolio and would refinance some of the road
projects during the year 2017-18 as well.
A five-year business plan is under finalisation
and L&T-IDPL is well poised to be on the growth
trajectory. L&T-IDPL is evaluating the new models
in the Roads sector (such as Hybrid Annuity Model
and Toll Operate and Transfer) and is expected to
participate in bids to bag projects in the road and
transmission line sectors besides looking at good
brownfield opportunities.
L&T Metro Rail (Hyderabad) Limited
Overview
L&T Metro Rail (Hyderabad) Limited (L&TMRHL)
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 04.09.2010.
The Metro Rail system shall be 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
Kms. 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 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 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 entire debt and
achieved financial closure on 1st March 2011.
With an estimated traffic growth of 8% in the
new fiscal, the road subsidiaries are expected to
In terms of the Concession Agreement, both
the Government of Telangana (State Govt) and
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L&TMRHL 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 precedent
(CP) from both the parties i.e. L&T Metro Rail
(Hyderabad) Limited and the State Govt.
The company is executing the project covering a
total distance of 71.16 Kms in 3 different corridors.
This entire distance is further sub divided into 6
stages for ease of implementation. Project cost
incurred during the year 2016-17 is ` 2325 crore
and cumulative upto 31.03.2017 is ` 12482 crore.
The company has achieved 5th Project milestone as
per the Concession Agreement having expended
75% of the project cost by 31st July, 2016. CMRS
(Commissioner of Metro Rail Safety) approval has
been obtained for Stage 1 & 2 of the project,
which are fully ready for commissioning. The
overall physical progress of the project as on
31.03.2017 is 72%. Construction works in Stage
3, 4 and 5 are going on at brisk pace.
The company has filed applications with the State
Government seeking grant of power at cost of
service basis, longer sub-lease rights on TOD,
the Government to bear the cost of Security at
stations etc. which are crucial for commissioning
the project. As there have been delays from the
Government’s side in providing continuous RoW,
the company has applied to the Government for
interim extension of time of scheduled completion
date upto November, 2019, keeping in view the
present progress of the project. The corresponding
cost implications are being prepared and shall
be submitted to the government upon receipt of
approval for extension of time.
The Company continued to successfully obtain
further tranches of Viability Grant of Funding
(VGF) from the Central Government during
2016-17 and the total VGF drawn stood at ` 957
crore as on 31st March 2017. This confirms the
certainty of the Central Government participating
in the project.
Business Environment
About 9 million transport trips are performed every
day in Hyderabad city and major share is taken by
Bus transport (50%). The City roads are congested
with 8% road area and has a very low average
speed (about 8KMPH). L&T MRHL will provide
safe & punctual travel and reduce the customer
pain points through Last Mile Connectivity, Digital
ticketing, Mobile app, etc. join attracting the
commuters. Non fare revenue generation will
be achieved through cross selling of products
to commuters. This will be further strengthened
by Metro expansion which will result in higher
ridership.
The company has been granted rights for Real
Estate development of 18.5 Million sq.ft., with
strategically located land parcels interspersed at
prime city locations, adjoining Metro Stations &
Metro corridors. Developments would encompass
Grade-A commercial developments for IT/ITES
Office, Healthcare, Retail and Hospitality.
Significant Initiatives
With a view to reduce the OPEX cost, the company
has tied-up with a solar power developer for
generating captive solar power of about 15MW
at a very competitive price. Though Metro
commercial operations were not started during the
FY 2016-17, L&T-MRHL explored various revenue
generating options through resources & skills that
it has developed for over a period of 5 years in
Metro Industry.
L&T MRHL has come up with following non-fare
revenue generating initiatives:
• Leasing out space for erecting mobile towers.
• Leasing out Optical Fibre
• Training its upcoming Metro staff with the
existing infrastructure
Rigorous follow up is on with the State
Government for favorable resolution of the power,
sub-lease, security, compensation for delays and
scope change, time-extension and other issues
pending with the Government. L&T-MRHL has
worked out certain models to obviate TOD related
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The Hyderabad Metro project is the world’s largest public-private-partnership in the urban transportation sector.
threats, while leveraging on the various advantages
of the offering like metro rail connect, strategic
locational offering, etc.,
scheduled for completion in H2 of 2017-18, with
strong customer bookings already made.
L&T-MRHL is also undertaking rigorous follow
up with the Central Government for smooth
disbursement of further tranches of VGF. L&T-
MRHL has targeted to gear up to commission
Stage 1 and Stage 2 of the project during the
current financial year. It has also been decided to
exercise strict control on costs and optimize the
revenue sources. It is also pursuing to re-negotiate
and mitigate the claims from contractor/ vendors
in the best possible way.
L&T MRHL has undertaken development of 4
Grade A Retail Mall projects adding to 1.25
Mn.sft. at key locations along the Metro corridor.
Development is nearing completion and launch of
Malls at Punjagutta & HITEC City is planned in H1
of 2017-18, with a strong booking of about 90%
at both the malls. Major brands signed up include
PVR, Marks & Spencer, Lifestyle, Shoppers Stop,
Pantaloons, Hyper City, Reliance Retail, etc. The
other two malls at Erramanzil & Musarambagh are
The Company has a robust Risk Management
Process, having identified risks and categorized
them as Major, Moderate and Minor. The major
risks for this Project are non-availability of required
Right of Way ( RoW) and delay in approvals
from the Railways. Risk Mitigation measures in
the form of increased liaison with Government
instrumentalities to get early approvals, Stage wise
implementation with focus to mobilize and execute
only on available work fronts and fill up the gaps
subsequently have assisted in optimization of
resources with minimal cost and time overruns.
L&T-MRHL has a robust internal control framework
system in place which has been certified by an
external consulting firm namely BDO during 2015-
16. The framework has been reviewed from time
to time and found to be operating effectively.
On the human resources front, L&T-MRHL
implemented revised minimum wages across all
sectors for its sub-contractors deployed in the
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category of “constructions or maintenance roads
& buildings”, “shops & establishments”, “security
services” etc. It also extended maternity leave
period from 12 weeks to 26 weeks for first two
children, and for contract labour, it has extended
amended provisions under the Payment of Bonus
Act (revised). Similarly, under ESI Act, 1948 gross
limit was increased from ` 15000 to ` 21000 and
the same is being implemented. L&T-MRHL has
provided employment to 65 employees in 2016-17
Outlook
L&T-MRHL is planning to open two out of three
corridors of Metro (Blue & Red lines) by the end
of 2017-18 with an expected ridership of approx.
12 lakh per day. Measures like fare integration
with other transport modes and collaborations
with various feeder services for first & last Mile
connectivity are being pursued so as to strengthen
fare revenue. L&T-MRHL is also exploring other
Non- Fare Revenue initiatives like consultancy
services with in-house competency on Metro
system, Wi-Fi, Radio, etc., that will add extra
revenue to the company.
Buoyed by the success of Phase 1 Malls, L&T-
MRHL intends to start with a 1 Million sq.ft Mall
at Raidurg along with a Built-to-Suit IT Office
Tower of around 1 Mn.sft for a client with whom
negotiations are in advanced stage. Discussions
with customers to kick start a few other
developments of the portfolio are underway.
L&T Power Development Group
Overview
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
Capacity (MW) State
Name of Subsidiary
Current Status
Singoli-Bhatwari
Hydro Electric
Project
Tagurshit Hydro
Electric Project
Sach-Khas Hydro
Electric Project
Reoli-Dugli Hydro
Electric Project
Total
99 Uttarakhand
L&T Uttaranchal
Hydropower Limited
Advanced stage of
construction
74 Arunachal Pradesh
267 Himachal Pradesh
L&T Arunachal
Hydropower Limited
L&T Himachal
Hydropower Limited
CEA meeting
for grant of
Techno-Economic
Concurrence held
in Oct-16
430 Himachal Pradesh
L&T Himachal
Hydropower Limited
Detailed Project
Report submitted
870
Thermal Power Projects – Nabha Power Limited (NPL)
NPL owns and operates a 2X700 MW supercritical thermal power plant at Rajpura, Punjab. Entire power
generated from this plant is sold to Punjab State Power Corporation Limited (PSPCL) for a period of twenty
five 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 the country.
212
The plant sources its fuel from South Eastern
Coalfields Ltd. (subsidiary of Coal India Limited)
under a 20-year Fuel Supply Agreement (FSA).
NPL 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
Government. The plant is operated by an in-house
team of experienced operations and maintenance
professionals.
The power plant has been running successfully for
over three years with an availability of 93% during
2016-17. NPL has been the most reliable source of
power for the state of Punjab and has supported
its requirements with uninterrupted supply during
peak season.
NPL also happens to be the lowest cost power
producer within Punjab with benchmark
operational efficiency.
Business Environment
Growth in demand for power during 2016-17
remained muted with all India Plant Load Factor
(PLF) hovering at 60%. Thermal Power Generation
continues to contribute 80% of the overall Power
requirement in India. Renewables sector also made
an impact where record low solar (` 3.3/kWh) and
wind tariffs (` 3.46/kWh) discovered via auction
route brought renewable closer to grid parity with
thermal.
Coal India Limited(CIL) increased e-auction quota
by way of reducing allocation to improve returns.
Third Party Sampling and testing through CIMFR
(Central Institute of Mining and Fuel Research)
has been operationalized for the rail mode to
mitigate the grade slippage issue in linkage coal.
Domestic Coal prices are expected to go up as the
Government is considering a revision in royalty on
coal and lignite.
Significant Milestones & Initiatives
• 93.06% availability achieved
• Reduced oil consumption to 0.12 ml/kwh
First supercritical coal-fired power project (full EPC) by L&T
for Nabha Power Ltd. at Rajpura in Punjab.
• Overhaul Operational efficiency measures
implemented & monitored to improve efficiency
• Unit Start-up procedure further optimised to
reduce cost and time
• Reliability Centred Maintenance approach
implemented
• In house workshop established to optimise cost
through reverse engineering
• Performance linked allocation made for
improvement in coal quality
• Reduction in interest cost through reduction
in borrowing and lower interest rate achieved
through iterative financing
• NIL availability loss on account of shortage of
Coal
• 99% of dry fly ash disposal achieved – received
runners up award for Fly Ash Utilisation by
Mission Energy Efficiency
• Awarded the best Thermal Plant Award by
Bureau of Energy Efficiency
• CSR initiatives focussing on development of
village infrastructure, education, skill building,
gender equality, health and environment were
implemented during the year
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L&T-PDL is committed to generate reliable and
environment friendly power under safe working
conditions. A policy on Quality, Environment,
Health and Safety has been put in place. Emphasis
is laid on continual improvement of our processes
and practices to achieve improved environmental,
health and safety performance. Training on HSE
for employees and stake holders is undertaken on
a regular basis to foster a culture of health and
safety.
On the Human Resources front, L&T-PDL has built a
committed team of 270 professionals experienced
in the field of operations and maintenance of
power plants. Special emphasis is given to training
and development of the workforce through various
training programs. In addition to the competency
building programs the company also focusses on
soft skills and leadership development.
Outlook
Lower per capita consumption continues to
promise robust long term demand. On the fuel
side coal production capacity is expected to further
increase to cater to the requirements. Punjab is
expected to witness a flat growth in demand for
electricity during 2017-18. NPL is likely to remain
the lowest cost power producer amongst the IPPs
in the state which shall translate into a plant load
factor in 2017-18 at ~77%.
L&T-PDL has embarked on a five year strategic plan
under the ‘Lakshya 2021’ program of the group.
Major focus areas for L&T-PDL during 2017-18
would be maximising plant availability, improving
operational efficiency, enhancing fuel quality,
resolving the regulatory issues, cost management
and HSE compliance.
Increasing global warming triggered awareness
and need for long-term sustainable energy
security has renewed the focus on the cleanest
traditional power source hydro power. Accordingly,
Government is considering policy initiatives for
revival of hydro power sector. L&T-PDL expects
that approval and timely implementation of
these initiatives by the Government in the near
future may positively impact the hydro-power
development in the country.
Focus area for hydel business would be expediting
construction activities at its Singoli-Bhatwari hydel
project.
Marine Infrastructure Developer Private
Limited: Kattupalli Port
Kattupalli Port at Chennai is a container Port with
capacity to handle 1.2 million TEUs per annum.
It has a container terminal with two container
berths, and has been accorded SEZ status. The
port complex was earlier housed within L&T
Shipbuilding Limited. In 2016-17, the business
was demerged into a separate company Marine
Infrastructure Developer Private Limited.
During the year 2015-16, the Company (L&T)
entered into an agreement with Adani Group (a
port operator) to demerge the port business and
divest the stake in the resulting company. The
Company is in an advanced stage of divesting
its ownership in the container port to a strategic
investor, and has demerged that business into a
separate company to facilitate the divestment. It
is planned to complete the transfer of the port
ownership in entirety in 2017-18.
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for the corresponding previous year 2015-16 have been
restated under IND AS for making items comparable. The
reserves as on 1-4-2015 have been restated under IND
AS. Up to FY 2014-15, the Financial Statements were
prepared under previously notified accounting standards
usually referred to as I-GAAP (Indian Generally Accepted
Accounting Principles).
Order Inflow & Order Book
L&T Group achieved order inflow of ` 142995 crore during
the year 2016-17, growing at 5.1% over the previous year.
Domestic order grew by 9.5% while international order
inflow declined by 4.3% y-o-y. International orders at
` 41507 crore constituted 29% of the total order inflow
during the year. Middle East continues to be the key
region for the Company and a large proportion of Order
Inflows were obtained from that Region. Generally lower
oil prices have, however, imposed fiscal hurdles on policy
makers in Middle East countries and they have responded
with reduced allocations on infrastructure spending, which
still provide a good opportunity basket for the Company.
In India, government spending did not gain momentum as
expected in the areas of defence, hi-tech manufacturing
and infrastructure development. Capital allocation from
Indian private sector is still lacking due to a significant
under-utilisation of existing capacities, diminishing returns,
financial stress on account of higher debt levels and
uncertain global business outlook.
Order inflow improved in Hydrocarbon and Heavy
Engineering segments on the back of a few large orders.
Infrastructure segment saw a decline of 7.5 % in the
order inflow due to order deferrals especially in Buildings
& Factories space that witnessed weak demand and cash
flow crunch. A lower level of order inflows from the
Middle East also contributed to the decline. Infrastructure
segment with its order intake of ` 78492 crore, however,
remains a major contributor to the total consolidated order
inflow for the year.
Financial Review 2016-17
I. L&T CONSOLIDATED
A. PERFORMANCE REVIEW
L&T continued to perform well during the financial year
2016-17 despite challenging business environment.
Domestic investment climate remained sluggish and
customers have been deferring capex spending in the
business segments where L&T predominantly operates.
The financial year 2016-17 was also marked by a few
major policy developments including demonetization
which led to disruption of business for a few months.
The government has remained focused on structural
reforms and we expect this to improve India’s long-term
growth potential. On the global front, uncertainties
amplified as developed economies were supportive of
protectionist policies and Middle East countries continued
to face fiscal constraints on the face of soft oil prices. The
business environment remained competitive with both
domestic and international competitors looking to increase
business in India which is still one of the fastest growing
economies.
The Company recorded satisfactory performance during
the year with its presence in diverse sectors, turnaround
in some of its businesses, focus on containing working
capital and better funds management. As a part of
L&T’s goal of maximising shareholder value creation, the
Company successfully listed two of its subsidiaries, Larsen
& Toubro Infotech Limited and L&T Technology Services
Limited during the course of the year. The Company also
exited the general insurance business. The Company
is in an advanced stage of divesting its ownership in a
container port in Tamil Nadu to a strategic investor and
has demerged that business into a separate company in
2016-17 to facilitate the divestment.
As at March 31, 2017, L&T Group comprises of 89
subsidiaries, 10 associates, 34 joint venture companies
and 27 joint operations. Most of the group companies are
strategic extensions of the project and product businesses
of L&T. Project business catering to the hydrocarbon sector
is housed in a separate group of companies to provide
the business with focus and independent functioning.
Majority of the subsidiaries support L&T’s core businesses
and enable access to new geographies, products and
business segments. Certain distinct service businesses
such as Information Technology, Technology Services,
Developmental Projects and Financial Services are housed
in separate subsidiary and joint venture companies of L&T.
The Financial Statements for the year 2016-17 have
been prepared in compliance with the new set of Indian
Accounting Standards (IND AS) and the comparatives
215
L&T continues to carry a robust order book of
` 261341 crore as at March 31, 2017 that is higher
by 4.9% as compared to the previous year. This gives
multi-year revenue and margin visibility to the Company.
Composition of international order book declined to
26.7% as at March 31, 2017 as compared to 28.2%
in the previous year, mainly arising from contraction of
infrastructure spends in the Middle East.
Infrastructure segment contributed 74% of the
consolidated order book, comprising mainly Building &
Factories 18.3%, Transportation Infrastructure business
14.6%, Heavy Civil Infrastructure 17.0%, Power
Transmission & Distribution 13.0% and Water & Effluent
Treatment 10.1%.
Operating Cost and PBDIT
Manufacturing, Construction and Operating (MCO)
expenses increased by 7.8% y-o-y at ` 78039 crore,
broadly in line with revenue growth. These expenses
mainly comprise cost of construction material and other
raw materials, subcontracting expenses, manpower costs
of Information Technology & Technology Services Segment
and interest expense of Financial Services business.
Revenue from Operations
L&T Group achieved a revenue of ` 110011 crore during
the year with a growth of 7.9% y-o-y. Revenue from
international operations stood at 34.2% as compared to
32% in the previous year.
The increase in revenue was achieved despite disruption
in business operations for a few months due to the
demonetization exercise undertaken by the Government.
The increase was largely contributed by Infrastructure,
Hydrocarbon and Power segments supported by project
execution. Delayed payments and approvals, workfront
non-availability, challenges to the right of way and
customer clearances impacted the revenue accrual in
Building & Factories and Power Transmission & Distribution
businesses. Heavy Engineering, Electrical & Automation
recorded muted revenue growth due to deferral of
anticipated orders and lackluster industrial demand.
Service oriented businesses housed in Financial Services
group and Information Technology & Technology Services
group, however, continue to perform well adding to
overall growth momentum of the Company.
216
Staff expenses for the year 2016-17 at ` 13853 crore
increased by 3.9% as compared to the previous year
mainly due to increased international operations. The
increase in staff cost expenses were contained through
manpower rationalization, increased productivity and
substitution of natural attrition through automation
measures. The Company continues to lay focus on
speedier and cost effective operations through higher
levels of automation.
Sales and administration expenses increased by 22.0%
y-o-y to ` 7044 crore mainly due to higher provisioning
by Financial Service business and increase in warranty
provisions for projects entering defect liability period.
The Group operating profit grew by 5.8% y-o-y at
` 11075 crore for the year 2016-17, however, the EBITDA
margin for the year declined by 20 basis points to 10.1%.
Impairment losses provided on a few commercial ships,
lower margins recorded by Infrastructure segment on
account of extended stay in a few jobs and increase in the
provision for doubtful loans and non-performing assets
by Financial Services had adverse impact on the total
operating margin for the year 2016-17, as compared with
the previous year.
Depreciation & Amortization charge
Depreciation and amortization charge for the year
2016-17 was higher by 32.6% at ` 2370 crore as
compared to ` 1787 crore in previous year. Apart from
increase in the depreciation on additions to the fixed
assets, impairment of capitalized borrowing costs in the
assets of L&T Seawoods has resulted in increase in the
depreciation charge for the year.
Other Income
Other income mainly consists of the profit on sale of liquid
investments, interest and dividend income from treasury
investments. Higher treasury income led by deployment
of surplus funds generated through operations as well
as through divestment of stake in subsidiaries resulted in
boosting other income during the year at ` 1401 crore as
compared to ` 904 crore in the previous year.
Finance cost
The interest expense for the year 2016-17 at ` 1340 crore
was lower by 19% in comparison to ` 1655 crore for
the previous year. Refinancing/repayment of loans and
lower exchange loss attributable to interest cost resulted
in reduction of the average borrowing cost for the year
2016-17 to 7.2% as compared to 9.0% in the previous
year.
Exceptional Items
Exceptional items of ` 121 crore in the Statement of Profit
& Loss in current year mainly represent gain on divestment
of stake in L&T General Insurance reduced by provision
for impairment of road concessions portfolio housed in
L&T-IDPL.
Tax Expense
Income Tax charge for the year has declined to
` 2007 crore compared to ` 2485 crore in previous year
mainly on the back of higher investment led tax incentive,
variations in Dividend Distribution Tax applicable on
Dividends from subsidiaries and tax impact on merger of
some subsidiaries of L&T Finance Holdings Ltd.
Profit after Tax & EPS
Consolidated Profit after Tax (PAT) at ` 6041 crore for the
year 2016-17 rose by 42.7% over the previous year.
Consolidated Earnings per Share (EPS) including
exceptional items for the year 2016-17 at ` 64.80 is higher
by 42.5% over the previous year.
Net Worth, Capital employed and Returns
The Net Worth of the shareholders at ` 50217 crore as at
March 31, 2017 increased by ` 6037 crore as compared
to the position as on March 31, 2016. Return on Net
Worth (RONW) for the year 2016-17 was higher at 12.8%
as compared to 9.9% in the previous year driven by
significant increase in the net earnings. Capital employed
increased to ` 77458 crore as compared to ` 72729 crore
as at March 31, 2016.
Liquidity & Gearing
Cash flow from operations increased significantly to
` 11979 crore as compared to ` 7345 crore in the previous
year mainly driven by healthy operational performance
coupled with better working capital management.
Cash flow is further improved by Company’s divestment
activities mainly in Technology businesses viz. Larsen &
Toubro Infotech Limited and L&T Technology Services
Limited. The Company deployed its surplus funds in
current investments which in turn, led to increase in
treasury income during the year.
217
The Group incurred capital expenditure of ` 2822 crore
during the year mainly attributable to L&T Hyderabad
Metro Rail project. There was a net decrease of ` 22 crore
in the cash balances as at March 31, 2017 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
Capital expenditure (net)
(Purchase)/Sale of other investments
Dividend paid
Interest paid
(Increase)/Decrease in cash balance
Utilisation of Funds
` crore
FY 16-17 FY 15-16
7345
(69)
204
971
615
70
9136
(4123)
(1322)
(1842)
(2462)
613
(9136)
11979
(671)
3
2059
1158
53
14581
(2822)
(8079)
(2093)
(1565)
(22)
(14581)
*This includes (investment)/divestment of long term
investments, consideration received on sale of stake in
subsidiaries/ joint ventures and net cash flows on loans/
deposits made with associate companies and third parties
The total borrowings as at March 31, 2017 stood at
` 93976 crore as compared to ` 88135 crore as at
March 2016. The gross Debt Equity ratio is 1.75:1
as at March 31, 2017 as compared to 1.87:1 as at
March 31, 2016.
B. SEGMENT WISE PERFORMANCE (GROUP)
1. Infrastructure Segment
Infrastructure segment bagged fresh orders worth
` 78492 crore for the year 2016-17, lower by 7.5% over
the previous year. The segment witnessed an elongation
of bid-to-award timelines in the domestic market and
a reduced opportunity in the Middle East arising out of
fiscal policy measures in those countries. New projects for
commercial buildings did not gain traction during the year.
Residential buildings prospects received major set-back
due to liquidity constraints aggravated by demonetisation.
Competition remained intense and some bids were
lost to competitors on price. Order inflow growth was
realised in Heavy Civil Infrastructure and Smart World &
Communication businesses which mitigated the decline in
order inflows of other businesses within the Infrastructure
segment.
International order wins, led by Power Transmission &
Distribution business, constituted 18.7% of the total
international order inflows during the year.
218
Infrastructure segment clocked gross revenue of
` 53921 crore for the year 2016-17 registering 6.7%
growth over the previous year. Execution of orders in hand
by Building & Factories was adversely affected due to the
demonetization exercise undertaken by the Government.
Execution impediments by way of customer clearances,
workfront availability and right of way issues also adversely
affected execution progress in some jobs of Building &
Factories, Heavy Civil, Power Transmission & Distribution
and WET (Water & Effluent Treatment) businesses leading
to muted growth for the segment as a whole.
Revenue from international operations constituted
32.8% of the total revenues of the segment during the
year as compared to 28.8% in the previous year. The
increase was mainly on the back of a robust opening
order book position in the beginning of 2016-17 led by
Transportation Infra, Heavy Civil and Power Transmission &
Distribution.
Infrastructure Segment operating profit was lower by
2.2% y-o-y at ` 5372 crore for 2016-17. Operating
margins declined by 100 basis points at 10.2% during the
year 2016-17 owing to cost overruns due to extended stay
in a few jobs.
Reporting of the Power segment results has undergone
important change from I-GAAP to IND AS. Power
Equipment JVs which used to be accounted under line-
by-line consolidation method for revenues, inter-company
revenue eliminations, expenses, margins and minority
interest adjustment under I-GAAP are only consolidated
at the PAT level now under IND AS. As prescribed by IND
AS, only the margin-light EPC / construction revenues
are reported in the group level sales. Since the margin
rich JV operations are consolidated only at the PAT level,
margins reported under I-GAAP and under IND AS are
not comparable. Thus margins of 11.6% for FY 2015-16
reported under I-GAAP have now been restated to 2.7%
for the same period (FY 2015-16) under the method of
accounting adopted under IND AS. However revenues
of ` 7011 crores in FY 2015-16 under I-GAAP have
reduced marginally to ` 6427 crores under IND AS since
a significant portion of revenues in the nature of inter-
company revenues were already eliminated under I-GAAP.
The Funds employed by the segment stood at ` 485 crore
as at March 31, 2017 lower by 16.7% as compared to
the position as on March 31, 2016 with better vendor
management.
3. Heavy Engineering Segment
Heavy Engineering segment recorded order inflow of
` 7861 crore for the year ending March 31, 2017, which
more than doubled vis-a-vis the previous year on the back
of a major Defence order. International orders constituted
13.8% of the total order inflow.
The Funds employed by the segment at ` 16108 crore
as at March 31, 2017 reduced by 2.07% vis-à-vis
March 31, 2016, due to better vendor management and
increase in advances on order wins by Heavy Civil business.
2. Power Segment
Power segment bagged orders worth ` 2866 crore as
compared to ` 2901 crore in the previous year. The sector
continues to be plagued with lower levels of coal-based
power plant ordering in the face of overcapacity in boiler
and turbine production as well as aggressive pricing by
competitors. Despite losing a number of bids in view of
these challenges, the focus of the segment is on ensuring
that bidding remains disciplined.
Segment revenue grew 8% y-o-y at ` 6939 crore, as jobs
under execution achieved substantial progress. Revenue
from international projects at `1285 crore represented
18.5% of total revenue and was contributed by gas based
power plant jobs under execution in Bangladesh.
Operating profit margin was increased to 3.5% during
the year ended March 31, 2017 as compared to 2.7%
in 2015-16 on account of better execution progress and
release of contingency cost.
Segment gross revenue of ` 3447 crore improved by 5.9%
compared to the previous year. Revenue from international
operations constituted 32.7% of the total revenue.
The segment recorded significant increase in the operating
profit at ` 615 crore for the year against operating profit
of ` 19 crore in the previous year, on back of better
execution and operational efficiencies. Last year, the
219
operating profit was adversely impacted on account of
cost and time overruns on a few jobs which were also
partly contributed by a prolonged labour strike at the
Company’s facility in Hazira.
Funds employed at ` 2429 crore decreased by 9.9% y-o-y
aided by higher provisions and taxes.
5. Hydrocarbon Segment
The Hydrocarbon segment registered a turnaround
in 2016-17 in terms of Order Inflows, Revenues and
margins. This was achieved through stronger execution
processes, close out of challenging legacy jobs in the
Middle East, forging deeper customer relationship,
manpower rationalization, cost containment measures
and resolute attention to control on Working Capital.
The segment secured fresh orders aggregating to
` 18525 crore during the year registering a steep growth
of 81% y-o-y driven by large size international EPC orders.
Consequently, International orders accounted for 66.8%
of total order inflow for 2016-17 as compared to 31.4%
in previous year.
Funds employed by the segment decreased by 21.9%
y-o-y at ` 1297 crore as at March 31, 2017 on account of
lower construction work- in-progress and inventory.
4. Electrical & Automation Segment (E&A)
E&A segment faced a difficult business environment in
2016-17 due to a prolonged period of low offtake from
industrial sector even though sales from agricultural sector
were strong due to a good monsoon in 2016. The business
thus recorded gross revenue of ` 5367 crore for the year
with a marginal drop of 0.6% compared with the previous
year. Revenue from international operations constituted
29.4% of the total revenues of the segment during the
year as compared to 31.4% in the previous year.
Segment operating profit for the year improved to 15.10%
y-o-y to ` 702 crore. Operating margins improved by 260
basis points during the year 2016-17 owing to favourable
product mix and improved operational efficiencies.
Segment revenue grew by 11.7% y-o-y at ` 9628 crore for
the year as jobs under execution progressed. International
revenue contributed 48.6% of the total revenue of the
segment as compared to 45.3% in the previous year.
Focused attention to costs and close out of challenging
legacy projects in the Middle East resulted in an operating
profit of ` 657 crore as compared to ` 53 crore in the
previous year and consequent margin improvement.
220
Funds employed by the segment at ` 1139 crore as at
March 31, 2017 decreased by 27.7% as compared to
March 31, 2016 aided by liquidation of old customer
outstanding, receipt of customer advances and favourable
WIP in projects under execution.
6. IT & Technology Services (IT & TS)
IT & TS segment comprises L&T Infotech group of
companies and L&T Technology Services group of
companies. During the year, these companies have been
listed. Segment recorded gross revenue of ` 9888 crore for
the year ended March 31, 2017 with growth of 9.7% over
the previous year. International revenue constitutes 93%
the total revenue of the segment.
The Segment Operating profit stood at ` 2063 crore for
the year 2016-17 as compared to ` 1816 crore in the
previous year. Operating margin improvement of 70 basis
points is on account of higher manpower utilization.
Disbursal of fresh Loans and Advances in the Focus
businesses, namely Rural, Wholesale and Housing Finance,
amounted to ` 49305 crore during the year ended
March 31, 2017, a growth of 29% y-o-y. In line with the
disbursements, Asset Book in focused lending businesses
stood at ` 63978 crore as at March 31, 2017 recording
a growth of 20% y-o-y. Net interest margins at 5.86%
remained stable.
The Funds employed by the segment at ` 4272 crore
as at March 31, 2017 is higher by 58% as compared to
March 31, 2016 due to increase in unbilled revenue &
investments.
7. Financial Services (FS)
Financial Services segment comprises of Rural, Wholesale
and Housing Finance as well as Investment and Wealth
Management businesses housed within L&T Finance
Holdings Limited (LTFH) and its subsidiaries. The segment
also included general insurance business which was
divested during the year ended March 31, 2017. Excluding
the general insurance business, Segment revenue grew
13.1% y-o-y at ` 8377 crore during the year ended
March 31, 2017 on a comparable basis aided by good
momentum in all its businesses.
The Gross Non-Performing Assets (GNPA) ratio increased
marginally from 4.85% as at March 31, 2016 to
4.94% as at March 31, 2017. LTFH, however, has been
strengthening its balance sheet throughout the year by
making accelerated provisions in addition to those required
under regulations. Consequently, the coverage on GNPA
increased from 22.19% in the year ended March 31, 2016
to 42.82% in the year ended March 31, 2017 indicating a
much stronger balance sheet. As a result of this, Net NPA
ratio has reduced substantially from 3.82% to 2.89% over
the same period.
LTFH also witnessed strong growth in its Investment &
Wealth Management businesses. Average Assets under
221
Management (AAUM) in Investment Management business
increased to v 39300 crore in the last quarter of the year
ended March 31, 2017 – a growth of 51%. Average
Assets under Service (AAUS) in Wealth Management
business increased to v 13623 crore in last quarter of the
year ended March 31, 2017 – a growth of 46%.
8. Developmental Projects (DP)
The Group has acquired concessions through competitive
bidding process for the development of Power projects,
Roads, Bridges, Hyderabad Metro Rail and Power
Transmission Lines. Total portfolio of the group consists
of 5 power projects, 15 roads & bridges projects, 1
transmission line project, 1 port & 1 metro rail project.
The metro rail project is developed by L&T Metro Rail
(Hyderabad) Limited (L&T MRHL) which is now a 100%
subsidiary of L&T. Power projects are developed by
L&T Power Development Limited & other projects are
developed by L&T Infrastructure Development Projects
Limited. The total estimated cost of projects pegged at
v 52609 crore as on March 31, 2017, involving equity
commitment of v 11106 crore of which equity infusion of
v 8757 crore has been completed as at March 31, 2017.
In addition, the company is in the process of divesting its
ownership in a container port in Kattupalli, Tamil Nadu to
a strategic investor and has demerged the port business
into a separate company in 2016-17 to facilitate the
divestment.
The segment recorded revenue of v 4367 crore for the year
ended March 31, 2017 lower compared to v 4620 crore
in the previous year due to lower construction revenue in
Hyderabad Metro project partly compensated by higher
revenue from Rajpura power plant.
The segment clocked operating profit at v 90.8 crore
for the year 2016-17 declining by 69.4 % y-o-y due to
non-accrual of revenues on disputed receivables in Rajpura
power plant.
The Funds employed increased by 15.2% y-o-y at
v 19309 crore as at March 31, 2017 driven mainly by
capex outlay for Hyderabad Metro Rail project.
9. “Others” Segment
Others Segment covers Metallurgical and Material
Handling (MMH), Realty, Shipbuilding, Construction
Equipment & Others, Machinery & Industrial products
businesses.
MMH segment, which was reported as a separate
segment last year, has now been merged under the Others
segment. Accordingly figures are regrouped wherever
necessary.
Revenue growth during the year was driven by MMH and
Realty businesses. The operating margin was adversely
impacted on write down of the inventories of commercial
ships.
II. L&T STANDALONE
PERFORMANCE REVIEW
L&T’s standalone financials capture the performance
of Infrastructure segment, Power, Heavy Engineering,
Electrical & Automation and Others segment comprising,
Metallurgical and Material Handling business, a part of
Realty business, Shipbuilding business and Construction &
Mining Machinery business.
L&T’s performance during the year reinforces the
capabilities of the Company to tackle the adverse market
conditions and generate steady returns. L&T continues to
target operating margin improvement by adopting value
engineering and operational excellence initiatives, higher
cash flow generation through working capital reduction
and divestment of non-core assets.
Order Inflow & Order Book
Order inflow during 2016-17 stood at v 93201 crore
almost in line with previous year. Infrastructure segment
222
order inflow remained at the same levels as previous year
and contributed 82.1% of the total order inflow during
the year as compared to 84.3% in the previous year. Heavy
Engineering reported strong order inflow led by select
wins in defence sector. Sharp drop was seen in Power
due to slowdown in the sectoral investment momentum
and aggressive bidding by competitors for the few bids
on offer, and in Others segment due to low industrial
demand. International order inflow declined to 16.4% of
the total order inflow for 2016-17 as compared to 23.4%
in the previous year.
Order Book as at March 31, 2017 stood at ` 224715 crore,
83.9% of which is contributed by Infrastructure segment.
International orders constituted 19.9% of the current
order book. L&T continues to carry healthy order book
to revenue ratio at 3.39 providing visibility for achieving
satisfactory growth in coming years.
Revenue from Operations
L&T achieved a moderate revenue growth of 3.9% at
` 66301 crore as compared to ` 63813 crore in the
previous year. Infrastructure segment was particularly
affected in a backdrop of tight liquidity consequent to
currency demonetization event in India. Revenue was also
impacted due to delay in customer clearances, availability
of workfront, right of way issues and generally delayed
milestone payments.
Power and Heavy Engineering segment saw a revenue
growth of 8.0% and 13.5% respectively led by pick up in
project execution. Electrical & Automation business and
Others business segment grew merely by 2.3% and 3.5%
respectively due to continuing low industrial demand.
Operating Cost and PBDIT
Manufacturing, Construction and Operating (MCO)
expenses comprising cost of construction material,
manufacturing materials, components and subcontracting
expenses amounted to ` 51990 crore registering an
increase of 3.6%. These costs represent 78.4% of
Revenue, a decline of 21 basis points over the previous
year. Reduction in MCO cost percentage to revenue is
mainly driven by change in the stage and mix of projects
under execution.
The Staff expenses for the year at ` 5146 crore increased
by 3.5% y-o-y due to annual pay revisions, manpower
additions in international operations. The Company’s
manpower strength stood at 41080 as compared to 42780
as at March 31, 2016.
Sales and administration expenses for the year at
` 2740 crore declined by 3.5% y-o-y due to lower
provision for doubtful debts & advances and reduction in
exchange losses.
The operating profit margin for the year at 9.7% improved
by 56 bps y-o-y. Consequently, Profit before depreciation,
interest and tax (PBDIT) stood at ` 6425 crore for the year,
higher by 10.2% over the previous year.
Depreciation & Amortization charge
Depreciation and amortization charge for the year
2016-17 increased by 21.8% at ` 1215 crore as compared
to ` 997 crore in the previous year. The increase is mainly
attributable to international operations of Infrastructure
segment.
Other Income
Other income for the year 2016-17 amounted to
` 1972 crore as against ` 2341 crore for the previous
year. The decline is mainly on lower dividend from group
companies. However, the same is partly offset by higher
treasury income aided by better investment positioning
along with deployment of additional funds generated by
listing of two subsidiaries on stock exchanges.
223
Other Income consists of dividend from group companies
` 405 crore (PY ` 1008 crore) and treasury income
` 1047 crore (PY ` 502 crore).
Funds Employed and Returns
Funds Employed by the Company at ` 56308 crore as at
March 31, 2017 increased by ` 404 crore during the year.
The Company incurred ` 635 crore (net) towards capital
expenditure during the year, largely on procurement of
plant and equipment.
At the segment aggregate level, net working capital as on
March 31, 2017 at ` 14014 crore decreased to 21.14%
of revenue as compared to ` 15286 crore at 23.95% of
revenue as on March 31, 2016. Release in working capital
is attributable to improved collections and better credit
terms negotiated with vendors.
During the year, investments in and loans to subsidiary
and associate companies decreased by ` 1306 crore (net
of proceeds from divestment). Major reduction was seen
in L&T Shipbuilding – port business, General Insurance and
Hydrocarbon business. However, additional funding was
done in Hyderabad Metro and Nabha Power.
Finance cost
The interest expenses for the year at ` 1318 crore were
lower by 10.8% vis-à-vis ` 1477 crore for the previous
year. The decrease in the interest expense is attributable
to repayment of borrowings along with lower borrowing
rates. The average borrowing cost for the year 2016-17
was lower by 80 basis points at 8.3% p.a.
Exceptional Items
Exceptional items of ` 894 crore in the Statement of Profit
& Loss for the current year mainly includes gain on part
stake-sale in L&T Infotech and L&T Technology Services
pursuant to the IPO of these companies partly offset by
loss on stake sale in L&T General Insurance.
The Company has provided for impairment in its
investment in L&T Infrastructure Development Projects
Limited that holds portfolio of non power concessions.
Profit after Tax & EPS
Profit after Tax (PAT), including exceptional items, for the
year 2016-17 grew by 9.1% to ` 5454 crore as compared
to ` 5000 crore in the previous year, contributed by
increase in operating profit, higher treasury income and
lower interest expenses. The Earnings per Share (EPS)
for the year 2016-17 at ` 58.49 grew by 8.9% over the
previous year.
Return on Net Worth (RONW) including the exceptional
items for the year 2016-17 is 12.4% in line with the
previous year. Return on Capital Employed (ROCE) for the
year 2016-17 at 11.3% is higher as compared to 11.1% of
the previous year. Capacity underutilization in some of the
capital intensive businesses continues, resulting in lower
returns.
Liquidity & Gearing
Business operations generated cash flows of ` 6147 crore
during the year significantly higher than ` 3300 crore in
the previous year mainly supported by release of working
capital. Dividend and treasury income flows contributed
` 1896 crore to the cash along with divestment proceeds
of ` 1306 crore. The Company used cash flows mainly for
repayment of borrowings ` 3110 crore, and parked surplus
funds in current investments ` 2535 crore.
Other comprehensive income (OCI)
Other Comprehensive income as on March 31, 2017
amounted to ` 157 crore as compared to ` 83 crore in the
previous year. OCI mainly comprises the gain on hedges
taken towards foreign currency and interest risk exposures.
224
Fund Flow Statement
Particulars
Operating activities
Divestment / (Investment) in Group Cos
Dividend from group companies and
Treasury income
Others
Sources of Funds
Borrowings (net of repayments )/
(Repayments)
Sale/(purchase) of investments
Capital Expenditure
Interest paid
Dividend Paid
(Increase) / decrease in cash balance
Utilisation of Funds
` crore
2016-17
6147
1306
2015-16
3300
(1820)
1896
53
9402
(3110)
(2535)
(635)
(1153)
(1843)
(127)
(9402)
1568
70
3118
321
(473)
(797)
(1209)
(1647)
687
(3118)
The total borrowings as on March 31, 2017 stood at
` 10581 crore as compared to ` 13924 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
decreased to 0.23:1 as at March 31, 2017 from 0.33:1
as at March 31, 2016. The Company has nil net debt
considering the cash & cash equivalent and 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 & 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 for each vertical are
discussed in detail in the respective Top Management/
Board meetings. The Risk Management Committee is
informed on the critical risks impacting the Company for
their review and suggestions. Mitigation plans are drawn
up and implemented as appropriate within the overall ERM
framework of the Company.
The Company is predominantly in project business and has
developed robust project risk management processes. The
key processes of risk reviews include country clearance
in case of venturing 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 authorization 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 2016 by the
Institute of Directors (IoD). L&T also has been conferred
the prestigious ‘Best Capital Projects & Infrastructure
Risk Management Award’ at the India Risk Management
Awards event organized by CNBC TV18.
The Company emphasizes on continuous learning and has
initiated several knowledge based initiatives to improve
risk awareness across the organization including the
launching of an e-learning training program on Enterprise
Risk Management (ERM) for employees to disseminate
knowledge and enhance capabilities on risk management
which will lead to better business performance. Periodic
training workshops on risk management are also held
across the Company to spread awareness.
Other initiatives include Risk Management Conclaves for
Risk Officers and senior management with focus on risk
management of large and mega projects, interaction
with industry experts and knowledge sharing with risk
management heads of global corporates.
The top Enterprise level risks for the Company and the
mitigation measures being implemented are:
Geopolitical Risks: Unexpected Political changes in
some of the Developed Countries, BREXIT, Trade barriers
and increasing conflict in Middle East are some of the
risks that the Company faces. The Company monitors
the geopolitical risks & develops appropriate mitigation
strategies from time to time.
Slow recovery of key sectors: Growth in some of the
sectors like Power, Nuclear, and Metals & Minerals etc.
continued to be hampered by a number of constraints.
Being a diversified conglomerate Diversification of the
business portfolio smoothens the inherent cyclicality that
individual sectors periodically face and mitigates volatility
in revenue and margins at the company level.
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 Bangladesh,
Srilanka, Africa, CIS & South East Asia.
225
Competition: It has been observed that competition from
foreign and domestic players has considerably increased
in the past few years. Learnings from past execution of
complex jobs, Joint Ventures and alliances with other
global players to leverage each others strengths, and other
operational excellence measures like value engineering,
cost control, manpower rationalization and cost reduction
through automation of process are some of the key
mitigation measures that the Company takes to remain
competitive in different businesses.
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 appropriate controls
are implemented to mitigate reputational risk.
Other Operational Risks:
Execution challenges: Company faces execution
challenges like geological setbacks, availability of work
front, land acquisition & right of way (ROW), pending
approvals and clearances from Government agencies,
working in difficult/harsh weather conditions and terrain,
manpower issues etc. The Company closely tracks the key
risks for each project to effect timely mitigation.
Partner risks: The Company partners with different
contractors (Joint Venture / consortium projects) across
businesses based on technical requirements/local market
conditions. Partner’s performance & 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 is drafted
after a legal due diligence.
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 & has ensured improvement in the
working capital levels.
Claims management: Company maintains a strong
documentation and follow up with clients / sub-
contractors / vendors for any claim that is submitted. Legal
teams are consulted periodically to ensure a robust process
of claims management.
Human resource challenges:
best talent. Suitable retention policies are being constantly
worked upon to minimize attrition of key resources.
The Company has institutionalized the risk management
processes to map & 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 in a tough 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. Despite the challenging economic environment
in 2016-17, the Company managed to restrain the
working capital usage, both at a gross and net level. The
Company has been investing capital into subsidiaries as
scheduled and in some cases to provide for deterioration
in performance caused by the sluggish economic/business
downturn and also to optimise overall Group level interest
rate costs. The Company plans to maintain adequate
liquidity on the Balance Sheet to deal with periods of slow
recovery/downturn in economic conditions.
The Company judiciously deploys its temporary 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 means of sourcing
liquidity through banking lines, trade finance and capital
markets. The Company further optimized the cost of debt
by using subsidized export financing scheme of RBI and
issuing Commercial Papers. 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.
The Company actively scans the environment for talent
with skill sets suited to the expanding and changing needs
of the business though availability of such resources are
limited. The leadership pipeline has been strengthened
and proper processes are being put in place for hiring the
Foreign Exchange and Commodity Price Risks
The various businesses of the Company are exposed to
fluctuations in foreign exchange rates and commodity
prices. It also has exposures to foreign currency
denominated financial assets and liabilities. The business
226
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 optimising the hedging costs at the same time.
The above risk management activity is carried out under
the framework of Risk Management Policy approved
by Audit Committee and noted by the Board. Financial
risks in each business portfolio are measured and
managed centrally within the Company. These risks are
reviewed periodically, quantified and managed within the
acceptable thresholds as laid out in the Risk Management
Policy of the Company under the aegis of the Audit
Committee.
The financial year 2016-17 was characterised by a
relatively strong USD against developed market currencies
post US presidential elections due to potential fiscal
expansion which subsequently got subdued in Q4 FY
16-17. The rupee followed broader global trends with
an appreciation bias with increased reform momentum
in fiscal/monetary policies and political developments
during 2016-17. The combination of lower exchange rate
volatility with robust financial risk management processes
resulted in lower financial cost and input cost volatility.
IV. INTERNAL CONTROLS
The Company believes that a strong internal control
framework is an important pillar of Corporate
Governance. It has established internal control
mechanisms commensurate with the size and complexity
of its business. A strong Internal Control framework
is established through right tone at the top for good
corporate governance which serves as a foundation for
excellence and same is embedded in operations through
its policies and procedures. Employees of the Company
are guided by the Company’s ‘Code of Conduct’. As a
part of good governance, the Company’s ‘Whistle Blower’
policy enables the employees to have direct access to the
Chairman of the Audit Committee without interference
from other levels of management.
From 2016-17, Whistle Blower policy has also been
implemented for Vendors & Channel partners as well to
facilitate expression of genuine concerns about unethical
behaviour, improper practice, any misconduct, any
violation of legal or such requirements, actual or suspected
fraud by any official of the Company without fear of
punishment or unfair treatment. Senior Management and
the Audit Committee of the Board is periodically apprised
on the internal processes of the Company with respect to
Internal Controls, Statutory Compliances and Assurance.
The Company has laid down Internal Financial Controls as
detailed in the Companies Act, 2013 and has covered all
major processes commensurate with the size of business
operations. 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 and reporting of financial and
operational information. The Company has reviewed
and sustained internal financial controls by adopting
a systematic approach to evaluate, control design and
operating effectiveness.
The Internal Control Organisation
As the first line of defence, primary responsibility
for design, establishment of internal controls and its
operating effectiveness lies with Heads of business and
support functions in their respective areas of operation.
There is a Policy on Internal Controls at Corporate level
and individual businesses also have Internal control
frameworks and procedures documented in the form of
Internal Controls Manuals, Standard Operating Procedures,
Accounting Guidelines including regular management
reporting and monitoring thereof. Policies and procedures
are reviewed periodically for any changes required, to
changing business needs as well as improvements in
processes to strengthen the internal control systems.
Authorisation Matrices for financial transactions are
derived based on Board decisions which are delegated
to individuals based on business needs within the overall
limits of Corporate Authorisation Guidelines. Financial
powers are vested based on business requirement
and there is no automatic vesting of powers based on
designation / grade of an individual.
The Corporate Internal Control (CIC) department is the
second line of defence to facilitate and monitor the
efficacy of the Internal controls embedded in Operations
so as to assist management in establishing strong internal
controls. CIC 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. Apart from
the internal mechanism to review and monitor internal
controls; the Company also periodically engages
independent professional firms to carry out review of the
effectiveness of various key control processes in businesses
and support functions. Their observations and suggestions
on good practices are reviewed by the management for
implementation and strengthening of the controls.
Corporate Audit Services (CAS) serves as third line of
defence which gives assurance on Internal Controls
effectiveness by carrying out independent internal audits.
CAS is staffed adequately with qualified professionals
227
in both technical and financial fields. The department
conducts audit of all units of L&T and its major S&A
companies at regular intervals. Based on observations
of CAS, respective process owners carry out necessary
process/system improvements and thereby strengthen the
overall control mechanism. The process of Internal Audit is
reviewed by the Management and Audit Committee of the
Board.
V. INFORMATION TECHNOLOGY
The Company views Information Technology (IT) as a
key enabler for efficiency and providing competitive
advantage. IT is accordingly managed through a robust
governance process that covers value delivery, cost
optimisation, technology management, support and
education. The Information Technology systems in the
Company form the backbone for carrying out all the
business processes, for communication, collaboration and
for providing information for effective decision making,
monitoring and management control. The Information
Systems at Company, implemented and refined over
many years are maintained systematically to enhance
capability with new features and also to remain current
on technology with upgrades. These systems are geared
towards improving productivity and efficiency of all our
operations. Over the years, the newer systems help the
Company to connect seamlessly with customers, provide
better products and services and enable better execution
of large projects.
While ERPs are the backbone of our Business,
Digitalization is identified as key driver to make the
company globally competitive in future. The Company
believes that the digital world will disrupt every aspect
of business viz project monitoring, machines & material
availability, labour & skills tracking, design work flows etc.
A number of projects have been identified in almost all
areas of business. A separate Big Data Analytics practice
has been established with adequate resources. Data from
machines and other systems is now getting accumulated in
real time to facilitate analysis and decision making.
Upgrade/update to IT infrastructure is being done
at regular intervals to meet the growing demand of
automation and digitisation. A complete scan of IT security
policies, practices and technology is reviewed and a
Security ‘Centre of Excellence’ has been commissioned
with latest tools and technologies to monitor and meet the
phenomenon of growing cybersecurity threats.
228
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 Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Larsen & Toubro Limited (the “Company”), which comprise the
Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the
Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information,
which includes 25 Joint Operations (herein after referred to as “standalone Ind AS financial statements”).
Management’s Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity of the Company including its joint operation in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (“Ind AS”) prescribed under section 133 of the Act.
The Boards of Directors of the Company and those charged with governance of its joint operation are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and its joint operation and for preventing
and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting 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.
We conducted our audit of the standalone Ind AS 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind
AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to
the Company’s preparation of the standalone Ind AS 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 standalone Ind AS financial statements.
We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in the Other Matters paragraph below, is
sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the
other auditors on separate financial statements of joint operations referred to in the Other Matters paragraph below, the aforesaid standalone Ind AS
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, 2017, and its profit, total comprehensive income, cash
flows and the changes in equity for the year ended on that date.
Other Matters
a)
We did not audit the financial statements / information of 16 joint operations included in the standalone Ind AS financial statements of the
Company whose financial statements reflect total assets of v 3,647.41 crore as at March 31, 2017, total revenues of v 4,360.69 crore, total profit
after tax (net) of v 268.96 crore and total comprehensive income (net) of v 269.03 crore for the year ended on that date, as considered in the
standalone Ind AS financial statements. The financial statements of these joint operations have been audited by the other auditors 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 joint operations and
our report in terms of subsection (3) of Section 143 of the Act, in so far as it relates to aforesaid joint operations, is based solely on the reports of
such other auditors.
Out of above, there are 7 joint operations which are located outside India whose financial results have been prepared in accordance with
accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted
auditing standards applicable in their respective countries. The Company’s management has converted the financial statements of such joint
229
b)
c)
operations located outside India from accounting principles generally accepted in their respective countries to accounting principles generally
accepted in India. We have audited these conversion adjustments made by the Company’s management. Our audit report in so far as it relates to
the balances and affairs of such joint operations located outside India is based on the reports of other auditors and the conversion adjustments
prepared by the management of the Company and audited by us.
The comparative financial information of the Company for the transition date opening balance sheet as at 1st April 2015 included in these
standalone Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting
Standards) Rules, 2006 audited by one of the joint auditors whose report for the year ended March 31, 2015 dated May 30, 2015 expressed
an unmodified opinion on those standalone financial statements, and have been restated to comply with Ind AS. Adjustments made to the
previously issued said financial information prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind
AS have been audited by us.
The comparative financial information for the year ended March 31, 2016 in respect of 4 joint operations included in this standalone Ind AS
financial statements prepared in accordance with the Ind AS have been audited by the other auditors.
The comparative financial information for the year ended March 31, 2016 in respect of 16 joint operations included in this standalone Ind AS
financial statements prepared in accordance with the Ind AS have not been audited by their auditors and have been furnished to us by the
Management.
Our opinion on the standalone Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified
in respect of these matters with respect to our reliance on the work done and the reports of the other auditors and the financial information
certified by the Management.
Report on Other Legal and Regulatory Requirements
1.
b)
c)
d)
e)
f)
g)
As required by Section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditor on the separate
financial statements / information of the joint operation, referred to in the Other Matters paragraph above we report, to the extent applicable
that:
a)
We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit;
In our opinion, proper books of account as required by law have been kept by the Company and its joint operation so far as it appears from
our examination of those books and the reports of the other auditors;
The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement
of Changes in Equity dealt with by this Report are in agreement with the relevant books of account;
In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section
133 of the Act read with relevant rules issued thereunder;
On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors and
the report of the statutory auditor of its joint operation company incorporated in India, none of the directors is disqualified as on March 31,
2017 from being appointed as a director in terms of Section 164(2) of the Act;
With respect to the adequacy of the internal financial controls over financial reporting of the Company and joint operation which is a
Company incorporated in India 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 and it’s joint operation’s internal financial
controls over financial reporting; and
With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i.
ii.
The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS 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;
There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the
Company; and
To the best of our information and according to the information and explanations given to us and having regard to the nature of
business and size of its operations and cash payments made by the Company in the ordinary course of business and based on the
Company’s practices for recording such transactions, the Company has provided the requisite disclosures in its financial statements as
to holdings as well as dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of
the Ministry of Finance, during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed and
the representations provided to us by the management, we report that the disclosures are in accordance with the relevant books of
account maintained by the Company and as produced before us and other auditor by the management.
iii.
iv.
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 29, 2017
230
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’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Larsen & Toubro Limited (the “Company”) as of March 31, 2017 in
conjunction with our audit of the standalone Ind AS financial statements of the Company as at end for the year ended on that date which includes
internal financial controls over financial reporting of the Company’s joint operation which is a Company incorporated in India.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company and those charged with governance of its joint operation which is a Company incorporated in India are
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 respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of
the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting 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 auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditor of the joint operation which is a Company
incorporated in India, in terms of their report referred to in the Other Matters section of our report of even date, is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A
company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets
that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the report of the
other auditor on internal financial controls system over financial reporting of the joint operation referred to in the Other Matters section of our report
of even date, 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, 2017, based on the internal control over financial reporting criteria
established by the respective Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
231
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 a joint operation which is a Company incorporated in India, is based on the corresponding report of the other auditor
of such Company incorporated in India.
Our opinion is not modified in respect of this matter.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 29, 2017
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
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 its 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 fixed 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:
v crore
Type of asset
Total no. of
cases
Leasehold /
freehold
Gross block as at
March 31, 2017
Net block as at
March 31, 2017
Remarks
Land
Buildings
3
2
Freehold
Freehold
1.27
3.54
1.27
0.94
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 between the physical stock and the book records.
(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 Act, 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.
232
(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 Act 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 paragraph 3 (v) of the Order 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 Act. We have broadly
reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as
amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Act, and are of the opinion that,
prima facie, the prescribed cost records have been made and maintained. 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.
(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,
2017 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, 2017 on account of disputes are given below:
Name of
Statute
Central Sales
Tax Act, Local
Sales Tax Acts
and Works
Contract Tax
Act
Nature of Dues
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,
valuation of goods, sales in transit and
high seas sales, and other matters.
Forum where
Dispute is
Pending
Period to which Amount
Relates
Supreme Court
2000-01 to 2006-07
Amount
Involved
(v crore)
12.13
Amount
Unpaid
(v crore)
3.14
High Court
1986-87 to 1987-88,
1993-94, 1994-95, 1998-
99 to 2002-03, 2005-06,
2006-07 to 2012-13
74.62
65.49
Sales Tax/ VAT
Tribunal
1989-90 to 2013-14
417.09
360.28
Commissioner
(Appeal)
2000-01, 2003-04 to 2012-
13, 2014-15 to 2015-16
43.44
40.82
Commissioner
2008-09, 2012-13
0.33
0.33
Non Submission of Forms and other
matters.
Additional
Commissioner
2011-12 to 2012-13
2.59
2.58
233
Name of
Statute
Nature of Dues
The Central
Excise Act,
1944, Service
Tax under
Finance Act,
1994 and
Customs Act,
1962
Dispute regarding question of law,
non-submission of forms, sales in
transit, local VAT 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.
Sales in transit, local VAT and other
matters.
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, short
payment of service tax, service tax rate
dispute, valuation dispute and other
matters.
Disallowance of CENVAT credit, short
payment of service tax and other
matters.
Non fulfilment of Export Obligations
under Export promotion scheme
Income-tax Act,
1961
Demands arising out of Regular
Assessment/ Reassessment
234
Forum where
Dispute is
Pending
Period to which Amount
Relates
Joint
Commissioner
2006-07, 2009-10,
2011-12 to 2015-16
Amount
Involved
(v crore)
27.18
Amount
Unpaid
(v crore)
4.02
1998-99, 2000-01 to
2014-15
1219.32
1128.36
Assistant /
Deputy / Joint
Commissioner
– Appeals
Assessing/
Commercial Tax
Officer
1996-97 to 1998-99, 2001-
02 to 2007-08, 2009-10 to
2012-13
High Court
2005-06 to 2007-08,
2009-10 to 2012-13
7.97
7.13
42.48
40.74
CESTAT
1991-92, 2001-02 to
2011-12
1025.48
1001.52
Commissioner
(Appeal)
2006-07 to 2012-13,
2015-16
13.87
13.57
Commissioner
2005-06 to 2013-14
78.69
77.58
Tribunal
2006-07 to 2009-10,
2011-12 to 2012-13
78.97
78.12
Directorate
General of
Foreign Trade
ITAT
2015-16 to 2016-17
12.49
12.49
2003-04, 2006-07 to
2011-12
1616.42
491.16
(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 and banks and dues to debenture holders. The Company has not borrowed any funds
from the government.
(ix)
In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of
initial public offer or further public offer (including debt instruments) or term loans and hence reporting under paragraph 3 (ix) of
the Order is not applicable to the Company.
(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
Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence
reporting under paragraph 3 (xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and
188 of the Act, where applicable, for all transactions with the related parties and the details of 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 paragraph 3 (xiv) of the Order 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 Act are not
applicable to the Company.
(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 29, 2017
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
235
Balance Sheet as at March 31, 2017
ASSETS:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Investment property
Other intangible assets
Intangible assets under development
Financial assets
Investments
Loans
Other financial assets
Deferred tax assets/(liabilities) [net]
Other non-current assets
Current assets
Inventories
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Other financial assets
Other current assets
Group(s) of assets classified as held for sale
TOTAL ASSETS
Note
As at 31-3-2017
v crore
v crore
As at 31-3-2016
v crore
v crore
As at 1-4-2015
v crore
v crore
2
2
3
4
4
5
6
7
49(e)
8
9
10
11
12
13
14
15
16
42
6522.85
302.53
396.70
125.04
201.25
7129.89
253.22
446.90
138.58
158.91
7068.96
385.73
471.18
84.94
189.50
19776.81
1770.54
500.33
19187.86
2797.52
474.09
17446.14
3002.86
346.46
22047.68
285.22
2222.67
22459.47
156.14
1786.70
20795.46
(95.97)
1450.22
1762.86
1955.11
2260.77
6982.08
19919.97
2202.26
1599.97
1919.41
2054.63
4803.32
18967.75
2075.83
1494.43
2432.26
1880.49
5518.05
16790.00
2764.78
255.84
1381.61
1428.09
34678.32
33263.70
388.00
102196.82
31654.08
33481.95
–
99620.95
28138.37
28454.83
141.79
89345.78
236
Balance Sheet as at March 31, 2017 (contd.)
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Total equity
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
Other financial liabilities
Provisions
Other non-current liabilities
Current liabilities
Financial liabilities
Borrowings
Current maturities of long term borrowings
Trade payables
Other financial liabilities
Other current liabilities
Provisions
Current tax liabilities (net)
Liabilities associated with the group(s) of assets
classified as held for sale
TOTAL EQUITY AND LIABILITIES
Note
As at 31-3-2017
v crore
v crore
As at 31-3-2016
v crore
v crore
As at 1-4-2015
v crore
v crore
17
18
186.59
45826.15
186.30
41949.01
185.91
38366.62
46012.74
42135.31
38552.53
19
20
21
22
23
24
25
26
27
28
42
7134.28
88.57
8312.47
72.45
8430.81
102.00
7222.85
470.68
3.86
8384.92
371.50
5.83
8532.81
346.10
0.81
2334.84
1111.59
24031.83
1572.65
4175.98
1436.03
22215.92
1319.68
3998.58
647.93
18376.00
1190.57
29050.91
18297.72
1092.15
45.91
–
102196.82
29147.61
18651.96
897.29
26.53
–
99620.95
24213.08
16785.98
801.42
75.83
37.22
89345.78
CONTINGENT LIABILITIES
COMMITMENTS (capital and others)
NOTES FORMING PART OF THE FINANCIAL
STATEMENTS
29
30
1 to 60
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 29, 2017
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N. HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
237
Statement of Profit and Loss for the year ended March 31, 2017
2016-17
2015-16
Note
v crore
v crore
v crore
v crore
INCOME:
Revenue from operations
Other income
Total income
EXPENSES:
Manufacturing, construction and operating expenses
Cost of raw materials components consumed
Excise duty
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 and property development
Other manufacturing, construction and operating expenses
Employee benefits expense
Sales, administration and other expenses
Finance costs
Depreciation, amortisation, impairment and obsolescence
Less: Overheads capitalised
Total expenses
Profit before exceptional items and tax
Exceptional items
Profit before tax
Carried forward
31
32
33
34
35
36
46
66301.35
1971.85
68273.20
63812.65
2341.04
66153.69
7370.57
577.49
18493.31
1390.84
1446.67
16770.61
131.59
5808.52
7397.55
635.39
18804.70
1129.45
1349.23
15567.87
76.57
5208.33
51989.60
5146.47
2741.55
1318.03
1215.19
62410.84
1.51
62409.33
5863.87
893.97
6757.84
6757.84
50169.09
4974.80
2845.77
1476.82
997.40
60463.88
5.53
60458.35
5695.34
560.28
6255.62
6255.62
238
Statement of Profit and Loss for the year ended March 31, 2017 (contd.)
Brought forward
Tax expenses
Current tax
Deferred tax
2016-17
Note
v crore
v crore
6757.84
2015-16
v crore
v crore
6255.62
49(a)
49(a)
1675.20
(371.10)
1530.01
(273.97)
Profit after tax
Other Comprehensive Income
A. Items that will not be reclassified to Profit or Loss:
Remeasurements of the defined benefit plans [net of tax]
B. Items that will be reclassified to Profit or Loss:
Debt instruments through Other Comprehensive Income [net of tax]
Exchange differences in translating the financial statements of
foreign operations [net of tax]
Effective portion of gains and losses on hedging instruments in a cash
flow hedge [net of tax]
Cost of hedging reserve [net of tax]
Other Comprehensive Income for the year [net of tax]
Total Comprehensive Income for the year
Basic earnings per equity share (v)
Diluted earnings per equity share (v)
Face value per equity share (v)
52
52
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1 to 60
1304.10
5453.74
(8.02)
(10.25)
(4.32)
223.37
(43.43)
157.35
5611.09
58.49
58.30
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 29, 2017
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N. HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
1256.04
4999.58
(8.44)
(2.59)
4.14
78.41
11.34
82.86
5082.44
53.71
53.47
2.00
239
v crore
185.91
0.39
186.30
(v crore)
Total other
equity
38366.62
4999.58
82.86
5082.44
201.63
(0.07)
–
(54.59)
(1647.02)
41949.01
5453.74
157.35
5611.09
154.18
(0.05)
–
(45.37)
(1842.71)
Statement of changes in Equity for the year ended March 31, 2017
A. Equity share capital
Particulars
Issued, subscribed and fully paid up equity shares outstanding at the beginning of the year
Add: Shares issued on exercise of employee stock options during the year
Issued, subscribed and fully paid up equity shares outstanding at the end of the year
2016-17
2015-16
Number of
shares
93,14,78,845
14,86,958
93,29,65,803
v crore
Number of
shares
186.30 92,95,62,061
19,16,784
186.59 93,14,78,845
0.29
B. Other equity
Particulars
Balance as at 1-4-2015
Profit for the year (a)
Other Comprehensive Income (b)
Total comprehensive income for
the year (a+b)
Issue of equity shares
Share issue expenses
Transfer from/to general reserve/retained
earnings during the year
Employee share options (net)
Dividend paid for the previous year (including
tax on dividend)
Balance as at 31-3-2016
Profit for the year (c)
Other Comprehensive Income (d)
Total comprehensive income for
the year (c+d)
Issue of equity shares
Share issue expenses
Transfer from/to general reserve/retained
earnings during the year
Employee share options (net)
Dividend paid for the previous year (including
tax on dividend)
Balance as at 31-3-2017
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 29, 2017
240
Equity
component
of foreign
currency
convertible
bonds
153.20
–
–
–
–
–
–
–
–
153.20
–
–
–
–
–
–
–
–
Reserves and surplus
Items of Other Comprehensive Income
Capital
reserve
Securities
premium
account
Employee share
options (net)
Debenture
redemption
reserve
General
reserve
Retained
earnings
10.52
–
–
7963.16
–
–
308.84
–
–
400.01
–
–
25054.47
–
–
–
–
–
–
–
–
10.52
–
–
–
–
–
–
–
–
–
201.63
(0.07)
–
–
–
8164.72
–
–
–
154.18
(0.05)
–
–
–
–
–
–
(12.02)
(54.59)
–
242.23
–
–
–
–
–
–
–
–
6.50
–
–
406.51
–
–
–
–
–
–
–
–
162.02
–
–
25216.49
–
–
–
–
(19.61)
(45.37)
(49.75)
–
157.11
–
Foreign
currency
translation
reserve
Hedging
reserve
Debt
instruments
through Other
Comprehensive
Income
0.73
–
4.14
4.14
–
–
–
–
–
4.87
–
(4.32)
(4.32)
–
–
–
–
–
(125.58)
–
89.75
89.75
–
–
–
–
–
(35.83)
–
179.94
179.94
–
–
–
–
–
78.62
–
(2.59)
(2.59)
–
–
–
–
–
76.03
–
(10.25)
(10.25)
–
–
–
–
–
4522.65
4999.58
(8.44)
4991.14
–
–
(156.50)
–
(1647.02)
7710.27
5453.74
(8.02)
5445.72
–
–
(87.75)
–
–
–
–
(1842.71)
153.20
10.52
8318.85
177.25
356.76
25373.60
11225.53
0.55
144.11
65.78
45826.15
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M.M.CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary
M. No. A3471
VIKRAM SINGH MEHTA
(DIN 00041197)
Directors
SANJEEV AGA
(DIN 00022065)
Statement of Cash Flows for the year ended March 31, 2017
2016-17
v crore
2015-16
v crore
5863.87
5695.34
A. Cash flow from operating activities:
Profit before tax (excluding exceptional items)
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) [including fair valuation]
Employee stock option-discount forming part of employee benefits expense
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 non-current investments
(Purchase)/sale of current investments (net)
Change in other bank balance and cash not available for immediate use
Deposits/loans (given) - subsidiaries, associates, joint ventures and third parties
Deposits/loans repaid - subsidiaries, associates, joint ventures 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
Net cash (used in)/from investing activities [non-cash transaction: Note (51(c)#), (51(c)##)]
31.13
(1065.10)
1215.19
(67.40)
0.11
1318.03
(539.31)
(23.70)
72.44
61.77
6835.90
(1343.12)
192.26
1981.62
7666.66
(1519.29)
6147.37
(749.02)
114.35
(3375.61)
3348.24
–
(2304.55)
(230.92)
(1085.78)
2336.24
(6.35)
5.25
830.53
405.47
659.63
83.65
(1121.35)
997.40
59.47
2.00
1476.82
(530.72)
(82.51)
(150.87)
60.34
6405.92
(7781.31)
305.65
5985.83
4916.09
(1616.23)
3299.86
(1087.23)
290.00
(2545.89)
2289.55
106.65
681.89
(1261.18)
(12498.99)
9790.42
(5.25)
1070.15
446.58
994.16
127.19
79.70
(1522.25)
241
Statement of Cash Flows for the year ended March 31, 2017 (contd.)
C. Cash flow from financing activities:
Proceeds from fresh issue of share capital
Proceeds from non-current borrowings
Repayment of non-current 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
2016-17
v crore
53.32
378.26
(1643.23)
(1845.06)
(1701.51)
(141.20)
(1152.54)
(6051.96)
126.54
2078.06
2204.60
2015-16
v crore
70.19
1589.29
(1420.79)
152.59
(1512.33)
(134.69)
(1208.59)
(2464.33)
(686.72)
2764.78
2078.06
Notes:
1. Statement of cash flows has been prepared under the indirect method as set out in the Ind AS 7 “Statement of Cash Flows” as
specified in the Companies (Indian Accounting Standards) Rules, 2015.
2. Purchase of fixed assets represents additions to property, plant and equipment, investment property and other intangible assets
adjusted for movement of (a) capital-work-in-progress for property, plant and equipment and investment property and (b) intangible
assets under development during the year.
3. Cash and cash equivalents included in the Statement of cash flows comprise the following:
(a) Cash and cash equivalents disclosed under current assets [Note 12]
(b) Other bank balances disclosed under current assets [Note 13]
(c) Cash and cash equivalents disclosed under non-current assets [Note 7]
Total cash and cash equivalents as per Balance Sheet
Add: (i) Unrealised exchange (gain)/loss on cash and cash equivalents
Less: (ii) Other bank balances disclosed under current assets [Note 13]
Less: (iii) Cash and cash equivalents disclosed under non-current assets [Note 7]
Total cash and cash equivalents as per Statement of Cash Flows
4. Previous year’s figures have been regrouped/reclassified wherever applicable.
2016-17
v crore
2202.26
1599.97
223.56
4025.79
2.34
1599.97
223.56
2204.60
2015-16
v crore
2075.83
1494.43
98.18
3668.44
2.23
1494.43
98.18
2078.06
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 29, 2017
242
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N. HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
Notes forming part of the Financial Statements
NOTE [1]
Significant Accounting Policies
(a) Statement of compliance
The company’s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the
Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 issued by
Ministry of Corporate Affairs in respect of sections 133 read with sub-section (1) of Section 210A of the Companies Act, 1956
(1 of 1956). In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are
also applied except where compliance with other statutory promulgations require a different treatment. The financials for the year
ended March 31, 2017 of the company are the first financial statements prepared in compliance with Ind AS. The date of transition
to Ind AS is April 1, 2015. The financial statements upto the year ended March 31, 2016, were prepared in accordance with the
accounting standards notified under the Companies (Accounting Standards) Rules, 2006 ( “I-GAAP”) and other relevant provisions
of the Act. The figures for the year ended March 31, 2016 have now been restated as per Ind AS to provide comparability. These
financials statements have been approved for issue by the Board of Directors at their meeting held on May 29, 2017.
(b) Basis of accounting
The Company maintains accounts on accrual basis following the historical cost convention, except for certain financial instruments
that are measured at fair value in accordance with Ind AS and certain items of property, plant and equipment that were revalued
in earlier years in accordance with the I-GAAP principles. The carrying value of all the items of property, plant and equipment and
investment property as on date of transition is considered as the deemed cost.
Fair value measurements under Ind AS are categorised as below based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value measurement in its entirety:
•
•
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at
measurement date;
Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either
directly or indirectly; and
•
Level 3 inputs are unobservable inputs for the valuation of assets/liabilities
(c) 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 statement of cash flows has been prepared and presented as per the requirements
of Ind AS 7 “Statement of Cash flows”. 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 the financial statements
along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
Amounts in the financial statements are presented in Indian Rupees in crore [1 crore = 10 million] rounded off to two decimal
places as permitted by Schedule III to the Companies Act, 2013. Per share data are presented in Indian Rupees to two decimals
places.
(d) Operating cycle for current and non-current classification
Operating cycle for the business activities of the company covers the duration of the specific project/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.
(e) Revenue recognition
Revenue is recognised based on nature of activity when consideration can be reasonably measured and recovered with reasonable
certainty. Revenue is measured at the fair value of the consideration received or receivable and is reduced for estimated customer
returns, rebates and other similar allowances.
(i)
Revenue from operations
Revenue includes 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.
A. Sale of goods
Revenue from the sale of manufactured and traded goods is recognised when the goods are delivered and titles have
been passed, provided all the following conditions are satisfied:
1.
significant risks and rewards of ownership of the goods are transferred to the buyer;
243
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
2.
3.
4.
5.
the company retains neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the good sold;
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the company; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
B. Revenue from construction/project related activity and contracts for supply/commissioning of complex plant and
equipment is recognised as follows:
1. Cost plus contracts: Revenue from cost plus contracts is determined with reference to the recoverable costs incurred
during the period and the margin as agreed with the customer.
2.
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 subject to condition that it is probable that such cost will be recoverable.
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.
The estimated outcome of a contract is considered reliable when all the following conditions are satisfied:
i.
ii.
iii.
iv.
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the contract will flow to the company;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred or to be incurred in respect of the contract can be measured reliably.
Expected loss, if any, on a contract is recognised as expense in the period in which it is foreseen, irrespective of the stage
of completion of the contract.
For contracts where progress billing exceeds the aggregate of contract costs incurred to-date and recognised profits (or
recognised losses, as the case may be), the surplus is shown as the amount due to customers. Amounts received before
the related work is performed are disclosed in the Balance Sheet as a liability towards advance received. Amounts billed
for work performed but yet to be paid by the customer are disclosed in the Balance Sheet as trade receivables. The
amount of retention money held by the customers is disclosed as part of other current assets and is reclassified as trade
receivables when it becomes due for payment.
C. 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.
D. Revenue from property development activity in the nature of a construction contract is recognised based on the
‘Percentage of completion method’ (POC) when the outcome of the contract can be estimated reliably upon fulfillment
of all the following conditions:
1.
2.
3.
4.
all critical approvals necessary for commencement of the project have been obtained;
contract costs for work performed (excluding cost of land/developmental rights and borrowing cost) constitute at
least 25% of the estimated total contract costs representing a reasonable level of development;
at least 25% of the saleable project area is secured by contracts or agreements with buyers; and
at least 10% of the total revenue as per the agreements of sale or any other legally enforceable documents is
realised at the reporting date in respect of each of the contracts and the parties to such contracts can be reasonably
expected to comply with the contractual payment terms.
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-date, to the total estimated cost of the
project. For the purpose of computing percentage of construction, cost of land, developmental rights and borrowing
costs are excluded.
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.
244
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
E.
Rendering of services
Revenue from rendering services is recognised when the outcome of a transaction can be estimated reliably by reference
to the stage of completion of the transaction. The outcome of a transaction can be estimated reliably when all the
following conditions are satisfied:
1.
2.
3.
4.
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the company;
the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Stage of completion is determined by the proportion of actual costs incurred to-date, to the estimated total costs of the
transaction
Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.
F.
Revenue from contracts for rendering of engineering design services and other services which are directly related to the
construction of an asset is recognised on the same basis as stated in (B) supra.
G. Commission income is recognised as and when the terms of the contract are fulfilled.
H. 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.
(ii) Other income
A.
Interest income is accrued on a time basis by reference to the principal outstanding and the effective 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 qualifying costs incurred
by the company, are recognised as income in the Statement of Profit and Loss in the period in which such costs are
incurred.
D. Other items of income are accounted as and when the right to receive such income arises and it is probable that the
economic benefits will flow to the company and the amount of income can be measured reliably.
(f) Exceptional items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the
performance of the company is treated as an exceptional item and the same is disclosed in the notes to accounts.
(g) Property, plant and equipment (PPE)
PPE is recognised when it is probable that future economic benefits associated with the item will flow to the company and the
cost of the item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated
depreciation and cumulative impairment, if any. Property, plant and equipment acquired on hire purchase basis are recognised
at their cash values. Cost includes professional fees related to the acquisition of PPE and for qualifying assets, borrowing costs
capitalised in accordance with the company’s accounting policy.
For transition to Ind AS, the company has elected to adopt as deemed cost, the carrying value of PPE measured as per I-GAAP less
accumulated depreciation and cumulative impairment on the transition date of April 1, 2015. In respect of revalued assets, the
value as determined by valuers as reduced by accumulated depreciation and cumulative impairment is taken as cost on transition
date.
Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general
overhead expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition
are allocated and capitalised as a part of the cost of the PPE.
PPE not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”. (Also refer to
policies on leases, borrowing costs, impairment of assets and foreign currency transactions infra).
Depreciation is recognised using straight line method so as to write off the cost of the assets (other than freehold land and
properties under construction) less their residual values over their useful lives specified in Schedule II to the Companies Act,
2013, or in the case of assets where the useful life was determined by technical evaluation, over the useful life so determined.
Depreciation method is reviewed at each financial year end to reflect the expected pattern of consumption of the future economic
benefits embodied in the asset. The estimated useful life and residual values are also reviewed at each financial year end and the
effect of any change in the estimates of useful life/residual value is accounted on prospective basis.
245
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
Where cost of a part of the asset (“asset component”) is significant to total cost of the asset and useful life of that part is different
from the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is
depreciated over its separate useful life.
Depreciation on additions to/deductions from, owned assets is calculated pro rata to the period of use. Extra shift depreciation is
provided on a location basis.
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.
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.
Freehold land is not depreciated.
(h)
Investment property
Properties, including those under construction, held to earn rentals and/or capital appreciation are classified as investment property
and measured and reported at cost, including transaction costs.
For transition to Ind AS, the company has elected to adopt as deemed cost, the carrying value of investment property as per
I-GAAP less accumulated depreciation and cumulative impairment as on the transition date of April 1, 2015. In respect of revalued
assets, the value as determined by valuers as reduced by accumulated depreciation and cumulative impairment, is taken as cost on
transition date.
Depreciation is recognised using straight line method so as to write off the cost of the investment property less their residual
values over their useful lives specified in Schedule II to the Companies Act, 2013 or in case of assets where the useful life was
determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year end
to reflect the expected pattern of consumption of the future benefits embodied in the investment property. The estimated useful
life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/
residual value is accounted on prospective basis. Freehold land and properties under construction are not depreciated.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and
no future economic benefits are expected from the disposal. Any gain or loss arising on derecognision of property is recognised in
the Statement of Profit and Loss in the same period.
(i)
Intangible assets
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow
to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty
credits availed, if any, less accumulated amortisation and cumulative impairment. Administrative and other general overhead
expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of
the intangible assets.
Research and development expenditure on new products:
(i)
Expenditure on research is expensed under respective heads of account in the period in which it is incurred.
(ii) Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:
A.
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
B.
the company has intention to complete the intangible asset and use or sell it;
C.
the company has ability to use or sell the intangible asset;
D.
E.
the manner in which the probable future economic benefits will be generated including the existence of a market for
output of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
F.
the company has ability to reliably measure the expenditure attributable to the intangible asset during its development.
246
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
Development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “intangible assets under
development”.
Intangible assets are amortised on straight line basis over the estimated useful life. The method of amortisation and useful life
is are reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a
prospective basis.
Amortisation on impaired assets is provided by adjusting the amortisation charge in the remaining periods so as to allocate the
asset’s revised carrying amount over its remaining useful life.
(j)
Impairment of assets
As at the end of each accounting year, the company reviews the carrying amounts of its PPE, investment property, intangible
assets and investments in subsidiary, associate and joint venture companies to determine whether there is any indication that those
assets have suffered an impairment loss. If such indication exists, the said assets are tested for impairment so as to determine the
impairment loss, if any. Goodwill and the intangible assets with indefinite life are tested for impairment each year.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is
determined:
(i)
in the case of an individual asset, at the higher of the net selling price and the value in use; and
(ii)
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.
(The amount of 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. For this purpose, the discount rate (pre-tax) is determined based on the weighted
average cost of capital of the company suitably adjusted for risks specified to the estimated cash flows of the asset).
For this purpose, a cash generating unit is ascertained as the smallest identifiable group of assets that generates cash inflows that
are largely independent of the cash inflows from other assets or groups of assets.
If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is
recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash
generating unit) is reduced to its recoverable amount.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss is recognised for the asset (or cash generating unit) in prior years. A reversal
of an impairment loss is recognised immediately in the Statement of Profit and Loss.
(k) Employee Benefits
(i)
Short term employee benefits:
Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and
performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term
employee benefits and are expensed in the period in which the employee renders the related service.
(ii) Post-employment benefits:
A. Defined contribution plans: The company’s superannuation scheme, state governed provident fund scheme, employee
state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/payable
under the schemes is recognised during the period in which the employee renders the related service.
B. Defined benefit plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board
of trustees established by the company, the post-retirement medical care plan and the company pension plan represent
defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial
valuation using the Projected Unit Credit Method.
The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market
yield on government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit
obligations at the Balance Sheet date.
247
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
Remeasurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (wherever applicable) is recognised
in other comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or
loss.
Defined benefit employee costs comprising current service cost, past service cost and gains or losses on settlements are
recognised in the Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit
employee cost is recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any
defined benefit plan are recognised in profit or loss when such settlement occurs. Past service cost is recognised as expense at
the earlier of the plan amendment or curtailment and when the company recognises related restructuring costs or termination
benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans
to recognise the obligation on a net basis.
(iii) Long term employee benefits:
The obligation for long term employee benefits such as long term compensated absences, long service award etc. is measured
at present value of estimated future cash flows expected to be made by the company and is recognised in a similar manner as
in the case of defined benefit plans vide (ii)(B) supra.
Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
remeasurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefit
expenses. Interest cost implicit in long term employee benefit cost is recognised in the Statement of Profit and Loss under
finance cost.
(iv) Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised as expense when the
company’s offer of the termination benefit is accepted or when the company recognises the related restructuring costs
whichever is earlier.
(l) 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.
(i)
Leases where the company has substantially all the risks and rewards of ownership of the related assets are classified
as finance leases. Assets under finance leases are capitalised at the commencement 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.
Finance leases:
A.
B. 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.
(ii) Operating leases:
The leases which are not classified as finance lease are operating leases.
A.
Lease rentals on assets under operating lease are charged to the Statement of Profit and Loss on a straight line basis
over the term of the relevant lease.
B. Assets leased out under operating leases are continued to be shown under the respective class of assets. Rental income
is recognised on a straight line basis over the term of the relevant lease.
(Also refer to policy on depreciation, supra)
(m) Financial instruments
Financial assets and/or financial liabilities are recognised when the company becomes party to a contract embodying the
related financial instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at
transaction values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to
248
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from as the case may be, the fair value of such assets or liabilities, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in profit or loss. In case of interest free or concession loans given to subsidiary companies,
the excess of the actual amount of the loan over initial measure at fair value is accounted as an equity investment.
The financial assets and financial liabilities are offset and presented on net basis in the Balance Sheet when there is a current
legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and
settle the liability simultaneously.
(i)
Financial assets:
A. All recognised financial assets are subsequently measured in their entirety at amortised cost or at fair value depending
on the classification of the financial assets as follows:
1.
Investments in debt Instruments that are designated as fair value through profit or loss (FVTPL) - at fair value.
2. Other investments in debt instruments – at amortised cost, subject to following conditions:
•
•
The asset is held within a business model whose objective is to hold assets in order to collect contractual cash
flows; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
3. Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income (FVTOCI) (unless the same are designated as fair value through profit or loss)
•
•
The asset is held within a business model whose objective is achieved both by collecting contractual cash flows
and selling financial assets; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
4.
5.
6.
Investment in equity instruments issued by subsidiary, associates and joint ventures are measured at cost less
impairment.
Investment in preference shares of the subsidiary companies are treated as equity instruments if the same are
convertible into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose
of redemption of such investments. Investment in preference shares not meeting the aforesaid conditions are
classified as debt instruments at FVTPL.
Investments in equity instruments are classified as at FVTPL, unless the related instruments are not held for trading
and the company irrevocably elects on initial recognition to present subsequent changes in fair value in Other
Comprehensive Income.
B.
For financial assets that are measured at FVTOCI, income by way of interest, dividend and exchange difference (on
debt instrument) is recognised in profit or loss and changes in fair value (other than on account of such income) are
recognised in Other Comprehensive Income and accumulated in other equity. On disposal of debt instruments measured
at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified to profit or loss. In case of
equity instruments measured at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of
investments.
C. A financial asset is primarily derecognised when:
1.
2.
the right to receive cash flows from the asset has expired, or
the company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a pass-through arrangement; and (a)
the company has transferred substantially all the risks and rewards of the asset, or b) the company has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
249
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
On derecognition of a financial asset in its entirety, the difference between the carrying amount measured at the date of
derecognition and the consideration received is recognised in profit or loss.
D.
Impairment of financial assets: The company recognises impairment loss on trade receivables using expected credit loss
model, which involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted
under Ind AS 109. Impairment loss on investments
(ii)
Financial liabilities:
A.
Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL
are subsequently measured at fair value. Financial guarantee contracts are subsequently measured at the amount of
impairment loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher.
All other financial liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate
(EIR) method.
B. A financial liability is derecognised when the related obligation expires or is discharged or cancelled.
(iii) The company designates certain hedging instruments, such as derivatives, embedded derivatives and in respect of foreign
currency risk, certain non-derivatives, as either fair value hedges or cash flow hedges or hedges of net investments in foreign
operations. Hedges of foreign exchange risk on firm commitments are accounted as cash flow hedges.
A.
Fair value hedges: Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are
recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that
are attributable to the hedged risk.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it
no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising
from the hedged risk is amortised to profit or loss from that date.
B. Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of derivatives
that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in
equity as ‘hedging reserve’. The gain or loss relating to the ineffective portion is recognised immediately in profit or
loss. Amounts previously recognised in other comprehensive income and accumulated in equity relating to the effective
portion, are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same head as
the hedged item. The effective portion of the hedge is determined at the lower of the cumulative gain or loss on the
hedging instrument from inception of the hedge and the cumulative change in the fair value of the hedged item from
the inception of the hedge and the remaining gain or loss on the hedging instrument is treated as ineffective portion.
In case of time period related hedges, the forward element and the spot element of a forward contract is separated and
only the change in the value of the spot element of the forward contract is designated as the hedging instrument. Similarly,
wherever applicable, the foreign currency basis spread is separated from the financial instrument and is excluded from the
designation of that financial instrument as the hedging instrument in case of time period related hedges. The changes in the
fair value of the forward element of the forward contract or the foreign currency basis spread of the financial instrument is
accumulated in a separate component of equity as ‘cost of hedging’. The changes in the fair value of such forward element
or foreign currency basis spread are reclassified to profit or loss as a reclassification adjustment on a straight line basis over
the period of the forward contract or the financial instrument.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity
at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When
a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised immediately in
profit or loss.
(iv) Compound financial instruments issued by the company which can be converted into fixed number of equity shares at the
option of the holders irrespective of changes in the fair value of the instrument are accounted by separately recognising the
liability and the equity components. The liability component is initially recognised at the fair value of a comparable liability
that does not have an equity conversion option. The equity component is initially recognised at the difference between
the fair value of the compound financial instrument as a whole and the fair value of the liability component. The directly
attributable transaction costs are allocated to the liability and the equity components in proportion to their initial carrying
amounts.
250
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
Subsequent to initial recognition, the liability component of the compound financial instrument is measured at amortised cost
using the effective interest method. The equity component of a compound financial instrument is not remeasured subsequently.
(n)
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.
Assessment of net realisable value is made in each subsequent period and when the circumstances that previously caused
inventories to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value
because of changed economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original
amount written-down so that the resultant carrying amount is the lower of the cost and the revised net realisable value.
(o) 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 subject to more than insignificant risk of
change in value, are not included as part of cash and cash equivalents.
(p) Securities premium account
(i)
Securities premium includes:
A. The difference between the face value of the equity shares and the consideration received in respect of shares issued
pursuant to Stock Options Scheme.
B.
The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock
Options Scheme.
(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium account.
(q) Borrowing Costs
Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of assets
acquired on finance lease and exchange differences arising on foreign currency borrowings to the extent they are regarded as an
adjustment to interest costs.
Borrowing costs net of any investment income from the temporary investment of related borrowings, that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time
the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time
to get ready for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.
(r)
Share-based payment arrangements
The stock options granted pursuant to the company’s Stock Options Scheme, are measured at the fair value of the options at the
grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over the vesting
period on a straight line basis. The amount recognised as expense each year is arrived at based on the number of grants expected
to vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such grant is
transferred to the general reserve within equity.
The fair value of the stock options granted to employees of the company by the company’s subsidiaries is accounted as employee
compensation cost over the vesting period and where such fair value is not recovered by the subsidiaries, the same is treated as
dividend declared by them.
251
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
(s)
Foreign currencies
(i)
The functional currency and presentation currency of the company is Indian Rupee.
(ii) Transactions in currencies other than the company’s functional currency are recorded on initial recognition using the exchange
rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported using the closing
rate. Non-monetary items that are measured in terms of historical cost in foreign currency are not retranslated. Exchange
differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the
closing spot rate are recognised in profit or loss in the period in which they arise except for:
A. exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings; and
B.
exchange differences on transactions entered into in order to hedge certain foreign currency risks.
(iii) Financial statements of foreign operations whose functional currency is different than Indian Rupee are translated into Indian
Rupees as follows:
A. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;
B.
income and expenses for each income statement are translated at average exchange rates; and
C. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign
currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations.
(t)
Accounting and reporting of information for Operating Segments
Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating
decision making body in the company to make decisions for performance assessment and resource allocation.
The reporting of segment information is the same as provided to the management for the purpose of the performance assessment
and resource allocation to the segments.
Segment accounting policies are in line with the accounting policies of the 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
inter segment revenue.
ii)
Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result.
iii) Most of the centrally incurred costs are allocated to segments mainly on the basis of their respective expected segment
revenue estimated at the beginning of the reported period.
iv)
v)
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.
vi) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets
and liabilities represent the assets and liabilities that relate to the company as a whole.
vii) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1(r) supra] and is allocated to the segment.
viii) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer prices which
are either determined to yield a desired margin or agreed on a negotiated basis.
(u)
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.
252
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the company’s
financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and
laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated
with investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits
will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits
will be available to allow all or part of the asset to be recovered.
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and
carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along
with the tax as applicable.
(v)
Interests in Joint operations
The company as a joint operator recognises in relation to its interest in a joint operation, its share in the assets/liabilities held/
incurred jointly with the other parties of the joint arrangement. Revenue is recognised for its share of revenue from the sale of
output by the joint venture. Expenses are recognised for its share of expenses incurred jointly with other parties as part of the joint
arrangement.
Interests in joint operations are included in the segments to which they relate.
(w) Provisions, contingent liabilities and contingent assets
Provisions are recognised only when:
a)
the company has a present obligation (legal or constructive) as a result of a past event;
b)
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
c)
a reliable estimate can be made of the amount of the obligation.
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money
is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
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; and
b)
a present obligation arising from past events, when no reliable estimate is possible.
Contingent assets are disclosed where an inflow of economic benefits is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received
under such contract, the present obligation under the contract is recognised and measured as a provision.
253
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
(x) Commitments
Commitments are future liabilities for contractual expenditure, 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.
(y) Non-current assets held for sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally
through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly
probable and is expected to qualify for recognition as a completed sale within one year from the date of classification.
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less
costs to sell.
(z) Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method, adjusting the net profit for the effects of:
i.
ii.
changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;
non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and
undistributed profits of associates; and
iii. all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available
for general use as on the date of Balance Sheet.
(aa) Key sources of estimation
The preparation of financial statements in conformity with Ind AS requires that the management of the company makes estimates
and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and
liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant
and equipment, Intangible assets, allowance for doubtful debts/advances, future obligations in respect of retirement benefit plans,
expected cost of completion of contracts, provision for rectification costs, fair value measurement etc. Difference, if any, between
the actual results and estimates is recognised in the period in which the results are known.
(ab) First time adoption of Ind AS
The company has prepared opening Balance Sheet as per Ind AS as of April 1, 2015 (transition date) by recognising all assets
and liabilities whose recognistion is required by Ind AS, derecognising items of assets or liabilities which are not permitted to be
recognised by Ind AS, reclassifying items from I-GAAP to Ind AS as required, and applying Ind AS to measure the recognised assets
and liabilities. The exemptions availed by the company under Ind AS 101 are as follows:
(i)
(ii)
The company has adopted the carrying value determined in accordance with I-GAAP for all of its property plant & equipment
and investment property as deemed cost of such assets at the transition date.
Ind AS 102 Share-based Payment has not been applied to equity instruments in share-based payment transactions that vested
before April 1, 2015.
(iii) The estimates as at April 1, 2015 and at March 31, 2016 are consistent with those made for the same dates in accordance
with I-GAAP.
254
Notes forming part of the Financial Statements (contd.)
NOTE [2]
Property, plant and equipment & capital work-in-progress
Class of assets
As at
1-4-2016
Additions
Cost
Trf to
investment
property
Foreign
currency
fluctuation
Deductions
As at
31-3-2017
Up to
31-3-2016
For the
period*
Depreciation
Trf to
investment
property
Foreign
currency
fluctuation
Impairment
Book value
v crore
Deductions
Up to
31-3-2017
Up to
31-3-2017
As at
31-3-2017
As at
31-3-2016
Land - freehold
360.31
2.03
–
–
–
362.34
–
–
–
–
–
–
–
362.34
360.31
Buildings
Owned
2105.19
113.40
4.39
(1.21)
30.73
2182.26
98.44
91.29
0.42
(0.22)
1.16
187.93
87.25
1907.08 2006.75
Leased out
13.02
–
–
–
–
13.02
0.60
0.60
–
–
–
1.20
–
11.82
12.42
Sub-total - buildings
2118.21
113.40
4.39
(1.21)
30.73
2195.28
99.04
91.89
0.42
(0.22)
1.16
189.13
87.25
1918.90 2019.17
Plant & equipment
Owned
Leased out
Sub-total - plant &
equipment
4828.59
351.45
2.63
–
4831.22
351.45
Computers
231.23
70.20
Office equipment
97.62
26.26
Furniture and fixtures
132.02
10.24
Vehicles
Other assets
Ships
162.20
38.36
37.57
–
Assets taken on finance
lease
84.32
2.63
Sub-total - other assets
121.89
2.63
–
–
–
–
–
–
–
–
–
–
(7.84)
54.73
5117.47
659.08
766.64
–
–
2.63
0.85
0.47
(7.84)
54.73
5120.10
659.93 767.11
(0.04)
(0.13)
(0.06)
7.47
293.92
73.96
73.91
0.26
123.49
32.24
29.62
1.09
141.11
23.07
23.15
(0.43)
15.98
184.15
30.17
32.82
–
–
–
0.32
37.25
4.92
4.84
–
86.95
1.48
1.05
0.32
124.20
6.40
5.89
–
–
–
–
–
–
–
–
–
–
(1.28)
14.98
1409.46
15.50
3692.51
4169.51
–
–
1.32
–
1.31
1.78
(1.28)
14.98
1410.78
15.50
3693.82 4171.29
(0.01)
(0.03)
(0.01)
(0.06)
5.52
142.34
–
151.58
157.27
0.23
0.33
6.12
61.60
45.88
56.81
0.01
0.24
61.88
65.38
94.99
108.95
–
127.34
132.03
–
–
–
0.09
9.67
–
27.58
32.65
–
2.53
0.09
12.20
–
–
84.42
82.84
112.00
115.49
Total
8054.70
614.57
4.39
(9.71)
110.58
8544.59
924.81 1024.39
0.42
(1.61)
28.43
1918.74
103.00
6522.85 7129.89
Add: Capital work-in-progress
* v 3.99 crore pertains to foreign currency fluctuation
302.53
253.22
6825.38 7383.11
255
Notes forming part of the Financial Statements (contd.)
NOTE [2] (contd.)
Class of assets
As at
1-4-2015
Additions
Cost
Foreign
currency
fluctuation
Deductions
As at
31-3-2016
Up to
1-4-2015
Depreciation
Foreign
currency
fluctuation
For the
period*
Land - freehold
Buildings
Owned
Leased out
Sub total - Buildings
Plant & equipment
Owned
Leased out
363.76
0.65
–
4.10
360.31
2002.70
118.99
0.57
13.76
2108.50
9.76
–
–
–
9.76
2012.46
118.99
0.57
13.76
2118.26
4134.78
872.41
3.32
182.50
4828.01
3.27
–
Sub total - plant & equipment
4138.05
872.41
Computers
Office equipment
Furniture and fixtures
Vehicles
Other assets
Ships
Assets taken on finance lease
Sub total - other assets
Total
Add: Capital work-in-progress
149.27
68.50
106.52
108.86
87.11
29.81
26.00
61.47
38.01
83.53
–
0.79
121.54
7068.96
0.79
1197.23
–
3.32
0.10
0.26
0.04
0.33
–
–
–
4.62
–
3.27
182.50
4831.28
4.95
1.39
0.61
8.80
231.53
97.18
131.95
161.86
–
–
38.01
84.32
–
216.11
122.33
8054.70
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100.24
0.55
100.79
663.75
1.17
664.92
75.95
32.72
23.14
31.65
4.92
1.48
6.40
935.57
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
v crore
Book value
Deductions
Up to
31-3-2016
As at
31-3-2016
As at
1-4-2015
–
–
360.31
363.76
1.75
98.49
2010.01
2002.70
–
0.55
9.21
9.76
1.75
99.04
2019.22
2012.46
4.91
658.84
4169.17
4134.78
–
4.91
1.98
0.55
0.08
1.49
1.17
2.10
3.27
660.01
4171.27
4138.05
73.97
32.17
23.06
30.16
157.56
149.27
65.01
68.50
108.89
106.52
131.70
108.86
–
–
4.92
1.48
33.09
82.84
38.01
83.53
–
10.76
6.40
924.81
115.93
7129.89
121.54
7068.96
253.22
7383.11
385.73
7454.69
* v 0.15 crore deduction pertains to foreign currency fluctuation
a. Cost of freehold land includes v 1.27 crore (previous year: v 0.27 crore) for which conveyance is yet to be completed.
b. Cost of buildings includes ownership accommodations:
i.
A.
B.
C.
in various co-operative societies, shop-owners’ associations and non-trading corporations: v 88.09 crore, including 2550
shares of v 50 each, 232 shares of v 100 each and 1 share of v 250. (Previous year : in various co-operative societies,
shop-owners’ associations and non-trading corporations: v 86.92 crore, including 2570 shares of v 50 each, 232 shares
of v 100 each and 1 share of v 250).
in various apartments: v 11.20 crore (previous year: v 11.20 crore).
in various co-operative societies: v 7.94 crore (previous year: v 12.88 crore) for which share certificates are yet to be
issued.
in proposed co-operative societies: v 27.80 crore. (previous year: v 0.53 crore).
D.
ownership accommodations of v 3.53 crore in respect of which the deed of conveyance is yet to be executed. (previous year:
v 3.86 crore).
ii.
iii. ownership accommodations of v 8.45 crore representing undivided share in properties at various locations. (previous year: v
8.45 crore).
c. Additions during the year and capital work-in-progress include v 13.65 crore (previous year: v 6.15 crore) being borrowing cost
capitalised in accordance with Indian Accounting Standard (Ind AS) 23 on “Borrowing Costs”. Asset wise break-up of borrowing
costs capitalised is as follows:
Class of assets
Buildings (owned)
Capital work-in-progress
Total
256
2016-17
3.63
10.02
13.65
v crore
2015-16
3.13
3.02
6.15
Notes forming part of the Financial Statements (contd.)
NOTE [2] (contd.)
d.
The average capitalisation rate for borrowing cost is 7.91% (previous year: 7.85%).
e.
f.
In addition to depreciation, obsolescence amounting to v 22.90 crore (previous year: v 10.45 crore) and impairment amounting to
v 103 crore (previous year: v Nil) have been recognised in Profit and Loss during the year.
Owned assets given on operating lease have been presented separately under respective class of assets as “Leased out” pursuant to
Ind AS 17 “Leases”.
g. Cost as at April 1, 2016 and April 1, 2015 of individual assets has been reclassified wherever necessary.
h. Out of its leasehold land at Hazira, the Company has given certain portion of land for the use to its subsidiary company and the
lease deed is under execution.
i.
Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the
consumption pattern of the assets and the past performance of similar assets.
a.
Estimated useful life of the following assets is in line with useful life prescribed in schedule II of The Companies Act, 2013:
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
Asset Class
Minimum useful life (in years)
Maximum useful life (in years)
Owned Buildings
Owned Plant and Equipment
Computer
Office Equipment
Furniture and Fixture
Owned Vehicles
Ships
3
8
3
4
10
7
14
60
15
6
5
10
10
14
b.
Estimated useful life of following assets is different than useful life as prescribed in schedule II of The Companies Act, 2013.
Assets used in Heavy Engineering and Shipbuilding Business:
Category of Assets
Sub-category of Assets
Useful life as per
Schedule II (in years)
Useful life
adopted (in years)
Sr.
No
1.
Plant & Equipment General
Boring/Rolling/Drilling/Milling machines
Modular Furnace
Other Furnaces
Horizontal Autoclaves
Load bearing structures
Cranes
2.
Roads
Carpeted Roads-other than RCC
Assets used in Electrical & Automation business:
10-30
5-15
5-30
10-30
50
10-30
5-15
15
5
Sr.
No
1.
Category of Assets
Sub-category of Assets
Plant & Equipment General
Specialised machine tools, dies, jigs,
fixtures, gauges for electrical business
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
15
5
Assets used in Construction business:
Sr.
No
1.
Category of Assets
Sub-category of Assets
Photographic equipment
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
15
5
257
Notes forming part of the Financial Statements (contd.)
NOTE [2] (contd.)
Assets used in Metallurgical & Material Handling business:
Sr.
No
1.
2.
3.
Category of Assets
Sub-category of Assets
Office Equipment
Assets deployed at project site
Air conditioning and
refrigeration equipment
Assets deployed at project site
Photographic equipment
Assets deployed at project site
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
5
15
15
3
3
3
j.
Carrying value of Property plant and equipment pledged as collateral for liabilities and /or commitments as at March 31, 2017
v 0.09 crore (v 0.09 crore as at March 31,2016, v 0.09 crore as at April 1,2015)
NOTE [3]
Investment property
Class of assets
Land
Buildings
Total
Land
Buildings
Total
Class of assets
Depreciation
v crore
Book Value
Deductions
As at
31-3-2017
Upto
31-3-2016
For the year
Transfer
from PPE
Deductions
Up to
31-3-2017
As at
31-3-2017
As at
31-3-2016
1.17
40.05
35.51
391.71
36.68
431.76
–
17.14
17.14
–
19.03
19.03
–
0.42
0.42
–
1.53
1.53
–
40.05
41.22
35.06
356.65
405.68
35.06
396.70
446.90
Depreciation
v crore
Book Value
Deductions
As at
31-3-2016
Upto
1-4-2015
For the year
Transfer
from PPE
Deductions
Up to
31-3-2016
As at
31-3-2016
As at
1-4-2015
Cost
Transfer
from PPE
–
4.40
4.40
Cost
Transfer
from PPE
–
–
–
–
41.22
7.14
422.82
7.14
464.04
–
–
–
–
17.14
17.14
–
–
–
–
–
–
–
41.22
41.22
17.14
405.68
429.96
17.14
446.90
471.18
As at
1-4-2016
41.22
422.82
464.04
Additions
–
–
–
As at
1-4-2015
41.22
429.96
471.18
Additions
–
–
–
Note: Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the
consumption pattern of the assets and the past performance of similar assets:
Sr. no.
Class of assets
1.
Buildings
Minimum useful life
(in years)
Maximum useful life
(in years)
3
60
Disclosure pursuant to Ind AS 40 “Investment Property”
a. Amount recognised in the Statement of Profit and Loss for investment property:
Particulars
Rental income derived from investment property
Direct operating expenses arising from investment property that generated rental income
v crore
2016-17
2015-16
149.01
21.12
153.68
22.14
Sr.
no.
1.
2.
258
Notes forming part of the Financial Statements (contd.)
NOTE [3] (contd.)
b.
c.
Fair value of investment property: v 3412.55 crore as at March 31, 2017 (v 3220.45 crore as at March 31, 2016; v 2972.86 crore
as at April 1, 2015).
The fair values of investment properties have been determined with the help of internal architectural department and independent
valuer on a case to case basis. Fair value of properties that are evaluated by independent valuer v 3012.75 crore (As at March 31,
2016: v 2475.77 crore, as at April 1, 2015: v 2319.23 crore). Valuation is based on government rates, market research, market
trend and comparable values as considered appropriate.
NOTE [4]
Other intangible assets and intangible assets under development
Class of assets
Specialised softwares
Technical know-how
New product design and
development
Total
As at
1-4-2016
Additions
182.15
23.03
109.07
314.25
6.58
20.93
3.80
31.31
Cost
Foreign
currency
fluctuation
Deductions
As at
31-3-2017
Up to
31-3-2016
For the
period
Amortisation
Foreign
currency
fluctuation
(0.01)
5.51
183.21
133.74
–
–
–
–
43.96
16.79
112.87
25.14
(0.01)
5.51
340.04
175.67
15.28
3.57
23.03
41.88
–
–
–
–
Add: Intangible assets under development
Class of assets
As at
Cost
Foreign
currency
1-4-2015 Additions
fluctuation Deductions
Specialised softwares
165.73
17.99
Technical know-how
19.09
3.94
New product design and
development
Total
42.97
227.79
66.10
88.03
–
–
–
–
Add: Intangible assets under development
–
–
As at
31-3-2016
Up to
1-4-2015
For the
period
Foreign
currency
fluctuation Deductions
Up to
31-3-2016
As at
31-3-2016
As at
1-4-2015
1.57
182.15
116.26
19.05
1.57
133.74
48.41
49.47
23.03
15.41
1.38
16.79
6.24
3.68
109.07
11.18
25.14
83.93
1.57
314.25
142.85
1.57
175.67
138.58
13.96
34.39
Amortisation
–
–
–
–
v crore
Book value
Deductions
Up to
31-3-2017
As at
31-3-2017
As at
31-3-2016
2.55
146.47
20.36
36.74
23.60
48.41
6.24
48.17
64.70
83.93
2.55
215.00
125.04
138.58
201.25
158.91
326.29
297.49
v crore
Book value
–
–
–
–
31.79
84.94
158.91
189.50
297.49
274.44
259
Notes forming part of the Financial Statements (contd.)
NOTE [4] (contd.)
Additions during the year
Class of assets
Specialised softwares
Technical know-how
New product design and development
Total
Internal
development
–
–
3.80
3.80
2016-17
Acquired
- external
6.58
20.93
–
27.51
Total
6.58
20.93
3.80
31.31
Internal
development
1.15
–
66.10
67.25
2015-16
Acquired
- external
16.84
3.94
–
20.78
v crore
Total
17.99
3.94
66.10
88.03
Note: Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the
consumption pattern of the assets and the past performance of similar assets:
Sr. no.
1.
2.
3.
Class of assets
Specialised softwares
Technical know-how
New product design and development
NOTE [5]
Financial Assets: Investments - non-current
Particulars
(A) Investment in equity instruments
(a) Subsidiary companies
(b) Associate companies
(c) Joint venture companies
(d) Other companies
(B) Investment in preference shares of
subsidiary companies (Debt portion)
Details of Investments - non-current
Particulars
(A) Investments in fully paid equity instruments
(a) Subsidiary companies:
(i)
Investments in fully paid equity instruments:
L&T Valves Limited*
Bhilai Power Supply Company Limited
EWAC Alloys Limited
Hi-Tech Rock Products & Aggregates Limited
Kesun Iron and Steel Company Private Limited
Carried forward
260
Minimum useful life
(in years)
3
3
3
Maximum useful life
(in years)
6
13
5
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
v crore
v crore
16381.00
4.42
2730.25
56.04
15004.95
4.42
3680.50
56.04
13396.84
30.07
3800.28
173.30
19171.71
18745.91
17400.49
605.10
19776.81
441.95
19187.86
45.65
17446.14
Number of units
As at
31-3-2017
Face value
per unit
v
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
100
10
100
10
10
18,00,000
49,950
8,29,440
50,000
9,500
161.23
0.05
150.24
0.05
0.01
311.58
201.54
0.05
150.24
0.05
0.01
351.89
201.54
0.05
150.24
0.05
0.01
351.89
Notes forming part of the Financial Statements (contd.)
NOTE [5]
Details of Investments - non-current (contd.)
Particulars
(i)
Investments in fully paid equity instruments (contd.)
Brought forward
Larsen & Toubro Consultoria E Projeto Ltda
L&T Aviation Services Private Limited
L&T Capital Company Limited
L&T Cassidian Limited
L&T Finance Holdings Limited (quoted)
L&T Construction Equipment Limited
L&T General Insurance Company Limited
L&T Infocity Limited
L&T Metro Rail (Hyderabad) Limited
L&T Natural Resources Limited
L&T Power Development Limited
L&T Power Limited
L&T Powergen Limited
L&T Realty Limited
L&T Seawoods Limited
L&T Shipbuilding Limited
L&T Solar Limited
L&T Electricals and Automation Limited*
L&T Hydrocarbon Engineering Limited
L&T Technology Services Limited (Face value reduced from v 40 per
share to v 2 per share w.e.f April 1, 2016) (quoted)
L&T-Valdel Engineering Limited
Larsen & Toubro Infotech Limited (quoted)
Larsen & Toubro International FZE
Larsen & Toubro Arabia LLC
Larsen & Toubro Hydrocarbon International Limited LLC
Larsen & Toubro LLC
Larsen & Toubro (Saudi Arabia) LLC
Spectrum Infotech Private Limited
L&T Infrastructure Engineering Limited
L&T Cutting Tools Limited
L&T Global Holdings Limited
Marine Infrastructure Developer Private Limited
Seawoods Realty Private Limited
Seawoods Retail Private Limited
Number of units
As at
31-3-2017
Face value
per unit
v
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
R$ 1
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
2
10
1
AED
550500
SAR 1000
SAR 1000
USD 1
SAR 1000
10
10
1000
USD 100
10
10
10
–
4,56,00,000
50,000
37,000
1,16,97,09,304
12,00,00,000
–
–
2,06,21,93,172
–
3,11,27,00,000
51,157
–
4,71,60,700
1,99,95,50,000
43,06,80,000
–
74,38,796
1,00,00,50,000
9,12,90,392
–
14,37,50,000
–
311.58
–
45.60
0.05
0.04
1468.18
84.32
–
–
2062.19
–
3112.70
0.05
–
47.16
1999.55
430.68
–
40.36
1000.05
942.62
–
119.68
–
–
450
50,000
625
4,40,000
36,00,000
68,000
80,000
–
10,000
10,000
–
0.68
0.23
1.06
6.80
21.85
0.30
53.16
–
0.01
0.01
11748.91
351.89
–
45.60
0.05
0.04
1468.18
84.32
570.00
–
20.31
–
3112.70
0.05
–
47.16
1999.55
818.68
–
0.05
1000.05
351.89
0.27
45.60
22.00
0.04
1575.15
84.32
620.00
16.02
19.82
0.05
2729.30
0.05
0.05
47.16
1999.55
818.68
0.05
0.05
1000.05
300.00
–
134.25
–
300.00
23.89
134.25
1147.40
11.08
0.68
0.23
1.06
6.80
21.85
0.30
0.67
0.01
–
–
11.08
0.68
0.23
–
6.80
21.85
0.30
–
–
–
–
9995.56 10976.58
261
Notes forming part of the Financial Statements (contd.)
NOTE [5]
Details of Investments - non-current (contd.)
Particulars
Number of units
As at
31-3-2017
Face value
per unit
v
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
(ii) Preference shares - (equity portion)
L&T Shipbuilding Limited -12% Cumulative redeemable preference
shares, October 22, 2028
10
9,00,00,000
67.77
67.77
67.78
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
10
5,00,00,000
37.06
37.06
37.06
10
11,00,00,000
77.26
77.26
redeemable at par preference shares, May 28, 2030
10
42,18,60,000
300.25
300.25
L&T Shipbuilding Limited - 9% Non-convertible, non-cumulative
redeemable at par preference shares, August 10, 2030
10
25,00,00,000
177.98
177.98
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
10
7,50,00,000
53.24
53.24
10
25,90,00,000
181.97
181.97
redeemable at par preference shares, February 4, 2031
10
21,60,00,000
153.15
153.15
L&T Shipbuilding Limited - 9% Non-cumulative optionally convertible
and redeemable at par preference shares, March 28, 2032
10
38,80,00,000
276.23
1324.91
–
1048.68
–
104.84
(iii) Preference share considered equity as per terms
L&T Technology Services Limited -10% Convertible non-cumulative
redeemable preference shares, February 14, 2024
L&T Technology Services Limited -10% Convertible non-cumulative
redeemable preference shares, September 21, 2024
L&T Seawoods Limited -10% Convertible non-cumulative redeemable
10
10
–
–
–
–
400.00
400.00
350.00
350.00
preference shares, March 30, 2022
2
1,03,60,00,000
1036.00
1036.00
1036.00
L&T Seawoods Limited -10% Non-cumulative, optionally convertible
and redeemable at par preference shares, May 12, 2022
L&T Seawoods Limited -10% Non-cumulative, optionally convertible
and redeemable at par preference shares, July 14, 2022
L&T Seawoods Limited -10% Non-cumulative, optionally convertible
and redeemable at par preference shares, September 4, 2022
L&T Hydrocarbon Engineering Limited -10% Convertible non-
2
2
2
4,80,00,000
48.00
48.00
4,22,50,000
42.25
42.25
4,20,00,000
42.00
42.00
–
–
–
cumulative redeemable preference shares, February 6, 2029
10
50,00,00,000
500.00
500.00
500.00
L&T Hydrocarbon Engineering Limited -12% Non-cumulative, optionally
convertible, redeemable preference shares, October 19, 2030
10
13,00,00,000
130.00
130.00
L&T Hydrocarbon Engineering Limited -12% Non-cumulative, optionally
convertible, redeemable preference shares, March 30, 2031
10
13,00,00,000
130.00
130.00
–
–
–
–
–
–
–
–
–
2
52,30,00,000
523.00
523.00
2
1,65,00,000
16.50
2467.75
16.50
3217.75
–
2286.00
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
convertible and redeemable at par preference shares, May 10, 2030
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
convertible and redeemable at par preference shares, June 8, 2030
Carried forward
262
Notes forming part of the Financial Statements (contd.)
NOTE [5]
Details of Investments - non-current (contd.)
Particulars
(iii) Preference shares considered equity as per terms (contd.)
Brought forward
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
convertible and redeemable at par preference shares, July 21, 2030
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
convertible and redeemable at par preference shares, October 16,
2030
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
convertible and redeemable at par preference shares, January 10,
2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
convertible and redeemable at par preference shares, March 17, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, May 1, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, June 17, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, July 19, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, October 4,
2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, December 8,
2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, February 10,
2032
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, February 20,
2032
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative optionally
convertible and redeemable at par preference shares, March 29,
2032
L&T Realty Limited - 12% Convertible non-cumulative redeemable at
Number of units
As at
31-3-2017
Face value
per unit
v
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
2467.75
3217.75
2286.00
2
70,00,000
7.00
7.00
2
3,20,00,000
32.00
32.00
70,00,000
7.00
7.00
1,92,50,000
19.25
19.25
2
2
2
2
2
92,50,000
9.25
1,05,00,000
10.50
80,00,000
8.00
2
1,45,00,000
14.50
2
1,70,50,000
17.05
2
1,87,00,000
18.70
2
10,00,000
1.00
2
1,75,00,000
17.50
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
par preference shares, May 26, 2025
10
64,83,00,000
648.30
3277.80
648.30
3931.30
–
2286.00
(iv) Other equity investments
L&T Aviation Services Private Limited
L&T Shipbuilding Limited
Total - (a) = (i)+(ii)+(iii)+(iv)
0.64
28.74
29.38
0.68
28.74
29.42
16381.00 15004.95 13396.84
0.67
28.74
29.41
263
Notes forming part of the Financial Statements (contd.)
NOTE [5]
Details of Investments - non-current (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)
(c) Joint venture companies:
(i) Investments in fully paid equity instruments
Ahmedabad-Maliya Tollway Limited (formerly known as L&T Ahmedabad-
Maliya Tollway Limited) [v 1000 (previous year: v 1000)]
L&T-Gulf Private Limited
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T Chennai-TADA Tollway Limited [v 1000 (previous year: v 1000)]
Devihalli Hassan Tollway Limited (formerly known as L&T Devihalli
Hassan Tollway Limited) [v 1000 (previous year: v 1000)]
L&T Halol-Shamlaji Tollway Limited [v 1000 (previous year: v 1000)]
L&T Howden Private Limited
L&T Infrastructure Development Projects Limited
L&T Kobelco Machinery Private Limited
L&T Krishnagiri Walajahpet Tollway Limited [v 26000
(previous year: v 26000)]
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Rajkot-Vadinar Tollway Limited [v 1000 (previous year: v 1000)]
L&T Samakhiali Gandhidham Tollway Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T Transportation Infrastructure Limited
L&T-Sargent & Lundy Limited
PNG Tollway Limited
Raykal Aluminum Company Private Limited
(ii) Other equity investments:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Total - (c) = (i) + (ii)
(d) Other companies:
International Seaport Dredging Limited
BBT Elevated Road Private Limited
Utmal Multi purpose Service Co-operative Society Limited (B Class)
(non-trade investments) [v 30000 (previous year: v 30000)]
Astra Microwave Products Limited (quoted)
Tidel Park Limited [Note 45(f)]
10000
10
100
2
10
Total - (A) = (a)+(b)+(c)+(d)
264
Face value
per unit
Number of units
As at
31-3-2017
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
v
10
10
10
100
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
7,35,000
–
–
9,000
–
–
100
–
–
–
100
100
–
–
–
4.42
–
–
4.42
–
–
–
–
–
–
–
–
–
4.42
–
–
4.42
–
–
–
–
–
–
–
2.12
4.50
4.42
2.70
16.33
30.07
–
4.00
0.01
95.31
–
–
100
1,50,30,000
31,28,69,096
2,55,00,000
2,600
–
15.03
1746.48
25.50
–
–
15.03
2696.48
25.50
–
–
15.03
2696.48
25.50
–
11,93,91,000
36,24,06,000
100
13,000
41,92,84,000
1,08,64,000
27,82,736
2,24,22,660
37,750
119.39
362.41
–
0.01
419.28
10.86
0.82
22.42
0.04
2722.24
119.39
362.41
–
0.01
419.28
10.86
0.82
22.42
0.04
3672.24
119.39
362.41
–
0.01
419.28
10.86
0.82
43.97
0.04
3793.11
2.24
5.77
8.01
2730.25
2.27
5.99
8.26
3680.50
2.27
4.90
7.17
3800.28
15,899
1,00,000
–
0.10
–
0.10
–
0.10
300
–
40,00,000
–
–
55.94
56.04
–
117.26
55.94
173.30
19171.71 18745.91 17400.49
–
–
55.94
56.04
Notes forming part of the Financial Statements (contd.)
NOTE [5]
Details of Investments - non-current (contd.)
Particulars
(B) Investments in preference shares of subsidiary companies
(Fair value debt portion):
L&T Shipbuilding Limited -12% Cumulative redeemable preference shares,
Number of units
As at
31-3-2017
Face value
per unit
v
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
October 22, 2028
10
9,00,00,000
35.23
30.84
29.91
L&T Shipbuilding Limited -12% Non-convertible cumulative redeemable
preference shares, June 24, 2029
10
5,00,00,000
18.53
16.38
15.74
L&T Shipbuilding Limited -12% Non-convertible cumulative redeemable at par
preference shares, April 16, 2030
10
11,00,00,000
37.41
33.65
L&T Shipbuilding Limited - 9% Non-convertible, non-cumulative redeemable at
par preference shares, May 28, 2030
10
42,18,60,000
142.09
127.80
L&T Shipbuilding Limited - 9% Non-convertible, non-cumulative redeemable at
par preference shares, August 10, 2030
10
25,00,00,000
82.81
74.45
L&T Shipbuilding Limited - 9% Non-convertible, non-cumulative redeemable at
par preference shares, September 29, 2030
10
7,50,00,000
24.56
22.08
L&T Shipbuilding Limited - 9% Non-convertible, non-cumulative redeemable at
par preference shares, December 8, 2030
10
25,90,00,000
83.48
75.02
L&T Shipbuilding Limited - 9% Non-convertible, non-cumulative redeemable at
par preference shares, February 4, 2031
10
21,60,00,000
68.71
61.73
–
–
–
–
–
–
L&T Shipbuilding Limited - 9% Non-cumulative optionally convertible and
redeemable at par preference shares, March 28, 2032
10
38,80,00,000
Total - (B)
Total investments non-current (A)+(B)
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 amount of impairment in value of investments is v 966.46 crore
(As at 31-3-2016: v 151.46 crore, as at 1-4-2015: v 16.46 crore)
112.28
605.10
–
45.65
19776.81 19187.86 17446.14
–
441.95
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
2530.48
1468.18
1708.73
31883.81
7468.59
8060.92
17246.33
17719.68
15737.41
* The scheme of arrangement between L&T Valves Limited and L&T Electrical & Automation Limited was approved by National Company Law Tribunal on April
27, 2017 with appointed date as November 1, 2016. Pursuant to the scheme L&T Electrical & Automation Limited issued 73,88,796 shares to Larsen &
Toubro Limited as a consideration towards transfer of certain assets by L&T Valves Limited. The value of shares issued is derived based on fair value of assets
transferred to the total value of assets of L&T Valves Limited as at appointed date. Accordingly the value of investment in L&T Electrical and Automation
Limited was increased by v 40.31 crore and reduced in L&T Valves Limited by v 40.31 crore during the year 2016-17.
265
Notes forming part of the Financial Statements (contd.)
NOTE [6]
Financial Assets: Loans - non-current
Particulars
Unsecured security deposits, considered goods:
Unsecured security deposits, doubtful:
Less: Provision for doubtful security deposits
Secured long term loans and advances to related
parties [KMPs]
Unsecured long term loans and advances to related
parties:
Subsidiary companies:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
0.45
0.45
v crore
84.20
–
–
v crore
0.45
0.45
v crore
90.29
–
–
v crore
0.45
0.45
v crore
66.80
–
0.01
Advances towards equity commitment [Note 38(B)]
Inter-corporate deposits [Note 37 & 38(A)(i)]
6.35
512.00
5.25
1921.00
1986.84
371.00
Joint venture:
Inter-corporate deposits [Note 37 & 38(A)(i)]
Other secured loans, considered good:
Loans against mortgage of house property
Other inter-corporate deposits
Other unsecured loans, considered good:
Advance recoverable in cash
Other loans unsecured, doubtful:
Doubtful other loans and advances
Less: Allowance for doubtful advances
NOTE [7]
Other financial assets - non-current
Particulars
Cash and bank balances not available for immediate
use [Note 7(a)]
Forward contract receivables
Embedded derivative receivables
Premium receivable on financial guarantee contracts
518.35
1167.22
0.74
0.03
0.74
–
2.28
2.28
1926.25
2357.84
779.72
572.71
1.24
–
2.85
2.85
1.24
0.02
2.36
3.00
2.28
2.28
5.36
0.14
–
1770.54
–
2797.52
–
3002.86
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
223.56
273.76
–
3.01
500.33
v crore
98.18
367.68
2.38
5.85
474.09
v crore
75.59
258.55
0.23
12.09
346.46
266
Notes forming part of the Financial Statements (contd.)
7(a) Particulars of cash and bank balances not available for immediate use
Sr.
no.
1.
2.
3.
Particulars
Amount received (including interest accrued thereon) from customers of property
development business – to be handed over to housing society on its formation
Contingency deposits (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 13]
Amount reflected under other financial assets - non-current [Note 7]
As at
31-3-2017
As at
31-3-2016
v crore
As at
1-4-2015
23.51
21.50
20.72
23.09
20.79
16.73
342.12
388.72
165.16
223.56
244.56
286.85
188.67
98.18
228.55
266.00
190.41
75.59
NOTE [8]
Other non-current assets
Particulars
Capital advances:
Secured
Unsecured
Advances recoverable other than in cash
Current tax receivable (net)
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
–
66.06
2108.85
47.76
2222.67
v crore
1.15
36.01
1713.30
36.24
1786.70
v crore
1.63
57.46
1365.28
25.85
1450.22
NOTE [9]
Inventories (at cost or net realisable value whichever is lower)
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Particulars
Raw materials [includes goods-in-transit v 1.86 crore
(As at 31-3-2016: v 7.10 crore, as at 1-4-2015:
v 19.96 crore)]
Components [includes goods-in-transit v 16.30 crore
(As at 31-3-2016: v 7.98 crore, as at 1-4-2015:
v 17.73 crore)]
Construction materials [includes goods-in-transit
v 55.70 crore (As at 31-3-2016: v 113.42 crore, as
at 1-4-2015: v 74.34 crore)]
Manufacturing work-in-progress
Finished goods
Stock-in-trade [includes goods-in-transit v 18.77 crore
(As at 31-3-2016: v 34.80 crore, as at 1-4-2015:
v 35.95 crore)]
Stores and spares [includes goods-in-transit
v 3.59 crore (As at 31-3-2016: v 2.69 crore, as at
1-4-2015: v 6.34 crore)]
Loose tools
Property development related work-in-progress
[Note 48(c)(iv)]
v crore
328.80
264.40
61.59
360.01
221.52
169.68
71.72
3.31
281.83
1762.86
v crore
356.63
304.27
117.85
372.18
161.68
159.77
170.12
7.79
304.82
1955.11
Note: During the year R 17.92 crore (previous year: R 35.36 crore) was recognised as expense towards write-down of inventory.
v crore
438.52
394.34
76.27
571.94
261.20
161.13
149.78
6.48
201.11
2260.77
267
Notes forming part of the Financial Statements (contd.)
NOTE [10]
Financial Assets: Investments - current
Particulars
(A) Government and trust securities
(B) Debentures and bonds
(i) Subsidiary companies
(ii) Others
(C) Mutual funds
Details of current investments
Particulars
(A) Government and trust securities (quoted):
8.28% Government of India Bonds 2032
7.16% Government of India Bonds 2023
8.15% Government of India Bonds 2022
8.33% Government of India Bonds 2026
8.28% Government of India Bonds 2027
9.20% Government of India Bonds 2030
8.32% Government of India Bonds 2032
6.90% Oil Mktg Cos GOI Special Bonds 2026
9.23% Government of India Bonds 2043
8.83% Government of India Bonds 2023
9.23% Government of India Bonds 2043
8.17% Government of India Bonds 2044
8.27% Government of India Bonds 2020
7.59% Government of India Bonds 2026
7.59% Government of India Bonds 2029
Total - (A)
(B) Debentures and bonds (quoted)
(i) Subsidiary companies:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
779.59
v crore
v crore
1077.88
v crore
v crore
1510.75
22.75
1148.71
22.49
1022.67
23.00
942.82
1171.46
5031.03
6982.08
1045.16
2680.28
4803.32
965.82
3041.48
5518.05
Face value
per unit
Number of units
As at
31-3-2017
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
v
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
5,00,000
–
20,00,000
75,00,000
24,00,000
1,77,84,000
15,00,000
13,00,000
2,45,00,000
–
–
–
–
10,00,000
1,00,00,000
5.36
–
21.65
81.86
25.84
204.56
16.47
12.71
298.13
–
–
–
–
10.65
102.36
779.59
5.23
–
20.91
79.33
128.74
467.16
15.73
12.44
348.34
–
–
–
–
–
–
1077.88
5.22
83.75
20.81
78.94
103.92
291.77
15.85
12.05
–
246.07
353.33
32.10
266.92
–
–
1510.75
L&T Finance Limited - 10.24% Secured redeemable non-convertible
Debenture, September 17, 2019
Total - (i)
(ii) Other debentures and bonds:
6.86% IIFCL Tax Free Bonds March 26, 2023
7.18% IRFC Ltd. Tax Free Bonds February 19, 2023
10.75% The Tata Power Co. Ltd. NCD August 21, 2072
8.00% Indian Overseas Bank Bonds March 13, 2016
8.20% PFC Ltd. Tax Free Bonds February 1, 2022
Carried forward
1000
2,15,770
22.75
22.75
22.49
22.49
23.00
23.00
1000
1000
1000000
1000000
1000
–
–
1,037
–
6,04,355
–
–
132.36
–
74.83
207.19
–
–
128.90
–
74.22
203.12
27.68
349.35
136.26
4.60
74.37
592.26
268
Notes forming part of the Financial Statements (contd.)
NOTE [10]
Details of current investments (contd.)
Particulars
Number of units
As at
31-3-2017
Face value
per unit
v
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
(ii) Other debentures and bonds:
Brought forward
8.46% PFC Ltd. Tax Free Bonds August 30, 2028
1.44% Inflation Indexed Bonds June 5, 2023
10.05% HDB Financial Services Ltd. Bonds SR-I/1/5 December 20, 2023
10.20% HDB Financial Services Ltd. Bonds August 9, 2022
8.41% NTPC Ltd. Tax Free Bonds SR-1A December 16, 2023
8.46% REC Ltd. Tax Free Bonds SR-3B August 29, 2028
ECL Finance Ltd. NCD SR-J5K403 November 4, 2015
ECL Finance Ltd. NCD SR-L5L402 December 15, 2015
Edelweiss Finance & Investments Ltd. NCD SR-A6A501 January 6, 2016
Edelweiss Finance & Investments Ltd. NCD SR-A6A502 January 8, 2016
Edelweiss Finance & Investments Ltd. NCD SR-A6A503 January 11, 2016
Edelweiss Finance & Investments Ltd. NCD SR-K5L401 December 17, 2015
8.70% PNB Housing Finance Ltd. Bonds SR-III November 24, 2024
7.40% Syndicate Bank TI-2 SR-8 NCD April 20, 2015
ECL Finance Ltd. NCD SR-D6D502A- April 26, 2016
ECL Finance Ltd. NCD SR-E6E501A - May 11, 2016
ECL Finance Ltd. NCD SR-C7C601A March 22, 2017
ECL Finance Ltd. NCD SR-C7C601B March 22, 2017
ECL Finance Ltd. NCD SR-C7C601C March 22, 2017
ECL Finance Ltd. NCD SR-C7C601D March 22, 2017
ECL Finance Ltd. NCD SR-C7C601E March 22, 2017
ECL Finance Ltd. NCD SR-C7C601F March 22, 2017
ECL Finance Ltd. NCD SR-A8L601A
ECL Finance Ltd. NCD SR-A8L601B
ECL Finance Ltd. NCD SR-A8L601C
Edelweiss Finvest Private Limited SR-B8B702A BR NCD March 26, 2018
Edelweiss Finvest Private Limited SR-B8B702B BR NCD March 26, 2018
Edelweiss Finvest Private Limited SR-B8B702C BR NCD March 26, 2018
Edelweiss Finvest Private Limited SR-B8B702D BR NCD March 26, 2018
Edelweiss Finvest Private Limited SR-B8B702E BR NCD March 26, 2018
Edelweiss Finance & Investments Ltd.NCD K6K501A November 4, 2016
Edelweiss Finance & Investments Ltd. NCD SR-K6K502A November 14, 2016
ECL Finance Ltd. NCD SR-B7B601A February 15, 2017
ECL Finance Ltd. NCD SR-B7B601B February 15, 2017
8.60% LTIDPL NCD December 26, 2016
Indiabulls Housing Finance Limited 9 LOA June 28, 2018
6.86% IIFCL Tax Free Bonds March 26, 2023
7.18% IRFC Ltd. Tax Free Bonds February 19, 2023
Total - (ii)
Total - (B) = (i) + (ii)
1000000
100
1000000
1000000
1000
1000000
10000000
10000000
10000000
10000000
10000000
10000000
1000000
1000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
2500000
10000000
10000000
1000000
1000000
1000
1000
27
50,00,000
–
–
79,162
70
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
25
25
22
25
25
25
25
25
–
–
–
–
2,500
100
2,50,000
30,00,000
207.19
3.83
51.62
–
–
10.23
9.92
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
27.61
27.61
24.29
24.40
24.40
24.40
24.40
25.24
–
–
–
–
264.42
10.86
28.64
359.67
1148.71
1171.46
203.12
31.50
47.49
–
–
10.10
51.37
–
–
–
–
–
–
–
–
32.56
28.90
24.28
24.28
24.28
24.28
24.25
24.90
–
–
–
–
–
–
–
–
23.68
22.46
23.12
23.12
–
–
27.88
351.08
1022.67
1045.16
592.26
31.50
43.12
29.20
2.43
10.11
51.35
24.16
26.31
29.73
29.88
27.23
26.89
15.50
3.17
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
942.82
965.82
269
Notes forming part of the Financial Statements (contd.)
NOTE [10]
Details of current investments (contd.)
Particulars
(C) Mutual funds (unquoted):
HDFC Liquid Fund - Growth
SBI Premier Liquid Fund - Regular Plan
JP Morgan India Liquid Fund - Super IP - Growth
HDFC F R I F - STF - WP - Growth
LIC Nomura MF Liquid Fund - Growth
HSBC Cash Fund - Growth
Reliance Medium Term Fund - Direct Plan - Growth
DWS Short Maturity Fund - Direct Plan - Annual Bonus
JM Money Manager Fund - Super Plus Plan - Bonus
DWS Treasury Fund - Investment Plan - Direct Plan - Bonus
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
ICICI Prudential Flexible Income - Regular Plan - Growth
L&T Business Cycles Fund - Direct Plan - Growth
L&T Resurgent India Corporate Bond Fund - Direct Plan - Growth
DSP BlackRock India Tiger Fund - Reg - Growth
DSP BlackRock Small and Midcap Fund - Reg - Growth
IDFC Sterling Equity Fund - Regular Plan - Growth
BNP Paribas Overnight Fund - Growth
Indiabulls Liquid Fund - Growth
Taurus Liquid Fund - Super IP - Growth
UTI Liquid Fund - Cash Plan - IP - Growth
ICICI Prudential Money Market Fund - Regular Plan - Growth
DWS Treasury Fund - Cash - Reg - Growth
Reliance Liquid Fund - TP - Growth
DWS Ultra Short Term Fund - Direct Plan - Growth
HDFC Small & Midcap 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
L&T Arbitrage Opportunities Fund - Growth
DSP BlackRock India Tiger Fund - Direct - Growth
Carried forward
270
Face value
per unit
Number of units
As at
31-3-2017
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
v
10
1000
10
10
10
10
1000
10
10
10
1000
10
1000
1000
10
1000
100
1000
10
10
10
10
10
10
1000
10
10
10
1000
1000
1000
10
1000
10
10
10
1000
1000
10
10
10
–
11,78,787
–
1,99,47,661
–
–
10,33,31,866
–
–
–
–
–
–
76,64,299
–
–
38,39,652
–
–
–
98,79,555
–
–
–
53,87,931
–
4,01,559
3,16,046
–
–
–
–
–
–
–
–
3,75,507
–
1,08,25,229
–
62,00,166
–
300.08
–
56.39
–
–
358.46
–
–
–
–
–
–
1951.09
–
–
100.03
–
–
–
307.59
–
–
–
26.55
–
100.03
50.01
–
–
–
–
–
–
–
–
100.03
–
12.00
–
53.31
3451.57
–
–
–
–
–
–
–
–
–
–
–
–
300.27
100.13
–
–
200.19
–
14.24
–
–
–
–
–
–
–
–
–
–
–
–
–
400.37
–
31.89
–
300.27
130.12
10.99
–
–
1488.48
50.02
–
50.02
–
50.02
100.06
–
118.47
360.94
21.49
200.13
25.57
581.54
100.05
37.55
20.01
100.07
20.01
14.57
487.77
–
12.44
10.19
5.23
–
10.42
100.05
–
100.04
100.05
100.04
50.03
100.05
50.45
32.80
10.14
–
–
–
21.26
–
3041.48
Notes forming part of the Financial Statements (contd.)
NOTE [10]
Details of current investments (contd.)
Particulars
(C) Mutual funds:
Brought forward
Birla Sun Life Floating Rate Fund - LTP-Direct Plan - Growth
Tata Infrastructure Fund - Direct - Growth
Reliance Mid & Small Cap Fund - Direct -Growth
ICICI Pru Multicap Plan - Direct - Growth
Kotak Emerging Equity-Direct-Dividend Reinvestment
Axis Enhanced Arbitrage Fund Direct Growth
BSL Pure Value Fund - Growth - Direct
JM Equity Fund Quarterly Dividend Payout-Regular
JM Balanced Fund - Direct -Quarterly Dividend
JM Arbitrage Advantage Fund-Regular Plan-Quarterly 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
Total - (C)
Total current investments (A)+(B)+(C)
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 (accounted based on NAV)
Number of units
As at
31-3-2017
Face value
per unit
v
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
10
10
10
10
10
10
10
1000
1000
1000
10
10
10
10
64,41,412
1,00,77,922
1,23,49,155
20,13,288
75,48,765
2,06,34,724
98,69,116
29,13,16,266
6,80,64,962
34,16,26,312
–
–
–
–
3451.57
129.25
53.12
52.72
52.98
26.52
25.15
52.54
688.04
134.60
400.56
–
–
–
–
5031.03
6982.08
1488.48
–
–
–
–
–
–
–
–
–
–
515.43
453.68
211.50
11.19
2680.28
4803.32
3041.48
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3041.48
5518.05
As at
31-3-2017
v crore
As at
31-3-2016
v crore
As at
1-4-2015
v crore
1951.05
1951.05
2123.04
2476.57
2123.04
2476.57
5031.03
2680.28
3041.48
271
Notes forming part of the Financial Statements (contd.)
NOTE [11]
Financial Assets - current: Trade receivables
Particulars
Secured, considered good
Unsecured:
Considered good
Considered doubtful
Less: Allowance for doubtful debts
NOTE [12]
Financial Assets - current: Cash and cash equivalents
Particulars
Balance with banks
Cheques and drafts on hand
Cash on hand
Fixed deposits with banks (maturity less than 3 months)
NOTE [13]
Financial Assets - current: Other bank balances
Particulars
Fixed deposits with banks
Earmarked balances with banks - unclaimed dividend
Margin money deposits with banks
Cash and bank balances not available for
immediate use [Note 7(a)]
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
–
v crore
v crore
0.50
v crore
v crore
4.71
19919.97
1916.66
21836.63
1916.66
18967.25
1568.79
20536.04
1568.79
16785.29
1008.78
17794.07
1008.78
19919.97
19919.97
18967.25
18967.75
16785.29
16790.00
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
1823.24
365.13
1.78
12.11
2202.26
v crore
1590.10
456.40
2.43
26.90
2075.83
v crore
2329.40
168.77
90.81
175.80
2764.78
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
1383.51
46.61
4.69
165.16
1599.97
v crore
1259.94
39.33
6.49
188.67
1494.43
v crore
22.15
33.59
9.69
190.41
255.84
272
Notes forming part of the Financial Statements (contd.)
NOTE [14]
Financial Assets: Loans - current
Particulars
Unsecured security deposits, considered good
Unsecured security deposits, doubtful
Less: Provision for doubtful security deposits
Unsecured long term loans and advances to related
parties:
Subsidiary companies
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
305.29
v crore
3.69
3.69
v crore
266.08
v crore
3.31
3.31
v crore
5.69
5.69
v crore
266.62
–
–
–
Inter-corporate deposits [Note 37 & 38(A)(i)]
1595.67
1984.69
1000.86
Associate companies
Advances
Joint ventures
Inter-corporate deposits [Note 37 & 38(A)(i)]
Other secured loans, considered good:
Loans against mortgage of house property
Other inter-corporate deposits
Other unsecured loans, considered good:
Others
NOTE [15]
Other current financial assets
Particulars
Advances to related parties:
Subsidiary companies
Associate companies
Joint venture companies
Advances recoverable in cash
Premium receivable on financial guarantee contracts
Embedded derivative receivable
Doubtful advances:
Deferred credit sale of ships
Other loans and advances
Less: Allowance for doubtful loans and advances
–
18.20
0.24
–
0.79
75.62
0.24
0.01
1919.41
–
105.04
76.41
0.04
2432.26
0.89
70.00
3.65
39.51
70.89
0.08
1381.61
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
v crore
v crore
777.49
1188.73
6.82
81.59
706.04
3.96
67.49
26.97
131.35
158.32
158.32
649.03
1082.35
15.54
133.57
597.18
5.83
46.02
27.55
133.74
161.29
161.29
482.00
–
46.91
25.99
136.32
162.31
162.31
528.91
878.32
8.76
12.10
–
2054.63
–
1880.49
–
1428.09
273
Notes forming part of the Financial Statements (contd.)
NOTE [16]
Other current assets
Particulars
Due from customers (construction and project related
activity)
Due from customers (property development activity)
[Note 48(c)]
Unbilled revenue including retention money
Balances with excise customs port trust
Advances recoverable other than in cash
Government grants receivable
Others
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
21329.29
71.28
8027.61
86.52
3701.94
45.57
1.49
v crore
21854.21
10.24
7286.65
91.20
4188.96
45.57
5.12
v crore
18935.75
48.71
6158.59
86.75
3168.79
49.73
6.51
33263.70
33481.95
28454.83
NOTE [17]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:
Particulars
Authorised:
Equity shares of v 2 each
Issued, subscribed and fully paid up:
Equity shares of v 2 each
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Number of
shares
v crore
Number of
shares
v crore
Number of
shares
v crore
1,62,50,00,000
325.00
1,62,50,00,000
325.00 1,62,50,00,000
325.00
93,29,65,803
186.59
93,14,78,845
186.30
92,95,62,061
185.91
(b) Reconciliation of the number of equity shares and share capital:
Particulars
2016-17
2015-16
Number of
shares
v crore
Number of
shares
v crore
Issued, subscribed and fully paid up equity shares outstanding at the beginning of the
year
93,14,78,845
186.30
92,95,62,061
185.91
Add: Shares issued on exercise of employee stock options during the year
14,86,958
0.29
19,16,784
0.39
Issued, subscribed and fully paid up equity shares outstanding at the end of the year
93,29,65,803
186.59
93,14,78,845
186.30
(c) Terms/rights attached to equity shares:
The Company has only one class of share capital, i.e., equity shares having face value of v 2 per share. Each holder of equity share
is entitled to one vote per share.
274
Notes forming part of the Financial Statements (contd.)
NOTE [17]
Equity share capital (contd.)
(d) Shareholder holding more than 5% of equity shares as at the end of the year:
Name of the shareholders
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Number of
shares
Shareholding
%
Number of
shares
Shareholding
%
Number of
shares
Shareholding
%
Life Insurance Corporation of India
L&T Employees Welfare Foundation
14,64,24,938
11,47,52,281
15.69
12.30
14,64,19,088
15.72
15,55,22,285
11,47,52,281
12.32
11,16,06,174
16.73
12.01
Administrator of the Specified Undertaking
of the Unit Trust of India
6,11,02,860
6.55
7,59,26,462
8.15
7,59,25,962
8.17
(e) 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 31-3-2017
As at 31-3-2016
As at 1-4-2015
Number of
equity shares
to be issued as
fully paid
v crore (at
face value)
Number of
equity shares to
be issued as fully
paid
v crore (at
face value)
Number of
equity shares to
be issued as fully
paid
v crore (at
face value)
42,47,360
0.85*
57,93,042
1.16*
77,08,842
1.54*
63,46,986
1.27**
63,46,986
1.27**
63,46,986
1.27**
*
**
The equity shares will be issued at a premium of v 146.71 crore (as at 31-3-2016: v 203.97 crore and as at 1-4-2015: v 278.09 crore)
The equity shares will be issued at a premium of v 1215.13 crore (as at 31-3-2016: v 1215.13 crore and as at 1-4-2015: v 1215.13 crore)
on the exercise of options by the bond holders
#
Note 17(h) for terms of employee stock option schemes
## Note 19(b) for terms of foreign currency convertible bonds
(f) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended
March 31, 2017 are 30,82,94,576 (previous period of five years ended March 31, 2016: 30,82,94,576 shares)
(g) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately
preceding last five years ended on March 31, 2017 – Nil (previous period of five years ended March 31, 2016: Nil)
(h) Stock option schemes
(i)
Terms:
A. 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.
B. 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.
275
Notes forming part of the Financial Statements (contd.)
NOTE [17]
Equity share capital (contd.)
(ii) The details of the grants under the aforesaid schemes under various series are summarised below:
Sr.
no.
Series reference
Grant price - (v)
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
2000
2002 (A)
2002 (B)
2003 ( A)
2003 (B)
2006
2006 (A)
2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
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
25,200
25,200
32,250
32,250
59,550
59,550
47,178
47,178 5,26,919 5,85,284 2,57,366 3,04,656 48,44,579 66,54,724
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 41,662
40,611
35,747
11,270 4,54,865 4,42,400
– 89,100 1,50,400
–
– 3,84,450 3,44,865
– 1,47,226 1,68,154
45,035
36,020 12,82,697 17,12,610
Options exercised during the year
12,000
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)
13,200
25,200
32,250
32,250
59,550
59,550
47,178
47,178 4,27,131 5,26,919 1,76,584 2,57,366 34,91,467 48,44,579
13,200
25,200
32,250
32,250
59,550
59,550
47,178
47,178
75,692
96,458 1,76,584 2,57,366 17,46,787 23,34,008
–
Nil
–
Nil
–
Nil
–
Nil
–
Nil
–
Nil
–
Nil
– 3,51,439 4,30,461
Nil
4.98
5.18
–
Nil
– 17,44,680 25,10,571
Nil
3.48
3.61
1
2
3
4
5
6
7
8
9
(iii) The number and weighted average exercise price of stock options are as follows:
Particulars
(A) Options granted and outstanding at the beginning of the year
(B) Options granted during the year
(C) Options allotted during the year
(D) Options lapsed during the year
(E) Options granted and outstanding at the end of the year
(F) Options exercisable at the end of the year out of (E) supra
2016-17
2015-16
No. of stock
options
57,93,042
4,73,550
14,86,958
5,32,274
42,47,360
21,51,241
Weighted
average
exercise price
(v)
354.10
327.51
358.97
370.25
347.41
359.04
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
(v)
362.74
282.57
366.57
368.74
354.10
364.76
(iv) Weighted average share price at the date of exercise for stock options exercised during the year is v 1386.19 (previous year:
v 1543.13) per share.
(v)
A.
In respect of stock options granted pursuant to the Company’s stock options schemes, the fair value of the options is
treated as discount and accounted as employee compensation over the vesting period.
B.
Expense on Employee Stock Option Schemes debited to the Statement of Profit and Loss during 2016-17 is v 60.35 crore
(previous year: v 59.18 crore) net of recoveries of v 1.42 crore (previous year: v 1.16 crore) from its group companies
towards the stock options granted to deputed employees, pursuant to the employee stock option schemes (Note 34).
The entire amount pertains to equity-settled employee share-based payment plans.
(vi) During the year, the Company has recovered v 13.81 crore (previous year: v 14.28 crore) from its subsidiary companies
towards the stock options granted to their employees, pursuant to the Employee Stock Option Schemes.
(vii) Weighted average fair values of options granted during the year is v 1056.73 (previous year: v 965.39) per option.
276
Notes forming part of the Financial Statements (contd.)
NOTE [17]
Equity share capital (contd.)
viii. The fair value has been calculated using the Black-Scholes Option Pricing Model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
Particulars
Sr.
no.
(A) Weighted average risk-free interest rate
(B) Weighted average expected life of options
(C) Weighted average expected volatility
(D) Weighted average expected dividends over the life of the option
(E) Weighted average share price
(F) Weighted average exercise price
(G) Method used to determine expected volatility
2016-17
2015-16
6.72%
4.08 years
30.79%
v 74.52 per option
v 1355.66 per option
v 327.51 per share
7.66%
3.86 years
30.52%
v 62.69 per option
v 1211.45 per option
v 282.57 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.
ix. The balance in share options (net) account as at March 31, 2017 is v 177.25 crore (previous year: v 242.23 crore), including
v 117.36 crore (previous year: v 155.87 crore) for which the options have been vested to employees as at March 31, 2017.
(i)
(j)
Capital management:
The Company continues its policy of a conservative capital structure which has ensured that it retains the highest credit rating even
amidst an adverse economic environment. Low gearing levels also 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. The gross debt equity ratio is 0.23:1 (as at 31-3-2016: 0.33:1 and as at
1-4-2015: 0.34:1)
During the year ended March 31, 2017, the Company paid the final dividend of v 18.25 per equity share for the year ended March
31, 2016 amounting to v 1701.51 crore and dividend distribution tax of v 141.20 crore.
(k) The Board of Directors has recommended for approval of shareholders, the issue of bonus equity shares in the ratio of 1:2
(one bonus equity share of v 2 each for every 2 equity shares of v 2 each held). On May 29, 2017, the Board of Directors has
recommended the final dividend of v 21 per equity share on the pre-bonus share capital for the year ended March 31, 2017
subject to approval from shareholders. On approval, the total dividend payment based on number of shares outstanding as at
March 31, 2017 is expected to be v 1959.23 crore and the payment of dividend distribution tax is expected to be v 316.31 crore.
NOTE [18]
Other equity
Particulars
Equity component of foreign currency convertible
bonds [Note 60(J)]
Capital reserve*
Securities premium account [Note 1(p)]
Employee share options (net) [Note 1(r)]
Employee share options outstanding
Deferred employee compensation expense
Debenture redemption reserve^
General reserve#
Retained earnings
Foreign currency translation reserve [Note 1(s)(iii)]
Hedging reserve [Note 1(m)]
Cash flow hedging reserve
Cost of hedging reserve
Debt instruments through Other Comprehensive Income
[Note 1(m)]
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
153.20
10.52
8318.85
v crore
v crore
153.20
10.52
8164.72
v crore
275.26
(98.01)
352.60
(110.37)
450.40
(141.56)
177.25
356.76
25373.60
11225.53
0.55
242.23
406.51
25216.49
7710.27
4.87
v crore
153.20
10.52
7963.16
308.84
400.01
25054.47
4522.65
0.73
202.60
(58.49)
(20.76)
(15.07)
(99.17)
(26.41)
144.11
65.78
(35.83)
76.03
(125.58)
78.62
45826.15
41949.01
38366.62
277
Notes forming part of the Financial Statements (contd.)
NOTE [18]
Other equity (contd.)
*
Capital Reserve: It represents the gains of capital nature which mainly includes the excess of value of net assets acquired over
consideration paid by the Company for business amalgamation transaction in earlier years.
^ Debenture redemption reserve (DRR): The Company has issued redeemable non-convertible debentures and created DRR out of
the profits of the Company in terms of the Companies (Share capital and Debenture) Rules, 2014 (as amended). The Company is
required to maintain a DRR of 25% of the value of debentures issued, either by a public issue or on a private placement basis. The
amounts credited to the DRR may not be utilised by the company except to redeem debenture.
# General Reserve: The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act
wherein certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per
Companies Act 2013, the requirement to transfer profits to General Reserve is not mandatory. General Reserve is a free reserve
available to the Company.
NOTE [19]
Financial Liabilities: Borrowings - non-current
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
Secured Unsecured
Total
v crore
v crore
v crore
v crore
v crore
v crore
v crore
v crore
v crore
Redeemable non-convertible fixed rate
debentures [Note 19(a)(i) & (ii)]
Redeemable non-convertible inflation linked
debentures [Note 19(a)(iii)]
0.675% Foreign currency convertible bonds
[Note 19(b)]
Term loan from banks [Note 19(c)]
Sales tax deferment loan [Note 19(d)]
Finance lease
408.55
2179.48
2588.03
408.31 2180.12 2588.43
408.49 1716.68 2125.17
–
–
–
–
–
113.61
113.61
–
110.32
110.32
–
111.30
111.30
1201.78
3230.58
0.08
0.20
1201.78
3230.58
0.08
0.20
– 1190.86 1190.86
– 4422.51 4422.51
0.28
–
0.07
–
0.28
0.07
– 1089.81 1089.81
– 5103.91 5103.91
0.62
–
–
–
0.62
–
408.55
6725.73
7134.28
408.31 7904.16 8312.47
408.49 8022.32 8430.81
19(a)(i)
Secured redeemable non-convertible fixed rate debentures (privately placed):
Face value per
debenture (v)
Date of
allotment
1000000
January 5,
2009
As at
31-3-2017
v crore
408.55
As at
31-3-2016
v crore
408.31
As at
1-4-2015
v crore
408.49
Interest for the
year 2016-2017
9.15% p.a.
payable annually
Terms of repayment for
debentures outstanding as
on 31-3-2017
Redeemable at face value at
the end of 10th year from
the date of allotment.
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.
19(a)(ii) Unsecured redeemable non-convertible fixed rate debentures (privately placed):
Sr.
no.
Face value per
debenture (v)
Date of
allotment
1.
2.
1000000
1000000
April 10,
2012
May 26,
2011
As at
31-3-2017
v crore
273.39
As at
31-3-2016
v crore
273.48
As at
1-4-2015
v crore
273.37
322.52
322.51
322.35
Interest for the
year 2016-2017
9.75% p.a.
payable annually
8.95% p.a.
payable annually
Terms of repayment for
debentures outstanding as
at 31-3-2017
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.
278
Notes forming part of the Financial Statements (contd.)
NOTE [19]
19(a)(ii) Unsecured redeemable non-convertible fixed rate debentures (privately placed) (contd.)
Sr.
no.
Face value per
debenture (v)
Date of
allotment
1000000
1000000
1000000
1000000
1000000
1000000
1000000
May 11,
2010
April 13,
2010
August 21,
2014
August 22,
2014
December
11, 2014
February 2,
2015
September
24, 2015
3.
4.
5.
6.
7.
8.
9.
Total
Less:
As at
31-3-2017
v crore
324.14
As at
31-3-2016
v crore
324.13
As at
1-4-2015
v crore
323.91
216.83
216.83
216.64
Interest for the
year 2016-2017
9.15% p.a.
payable annually
8.80% p.a.
payable annually
Terms of repayment for
debentures outstanding as
at 31-3-2017
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.
–
–
–
–
229.66
211.13
369.52
369.28
–
–
307.51
303.51
1042.60
1042.87
–
8.40% p.a.
payable annually
Redeemable at face value
at the end of 5th year from
the date of allotment.
2179.48
2779.00
2327.70
–
598.88
611.02
2179.48
2180.12
1716.68
Current maturity of long
term borrowings [Note 24)]
Borrowings - non-current
[Note 19]
19(a)(iii) Unsecured redeemable non-convertible inflation linked debentures:
Face value per
debenture (v)
Date of
allotment
1000000
May 23, 2013
As at
31-3-2017
v crore
113.61@
As at
31-3-2016
v crore
As at
1-4-2015
v crore
110.32@ 111.30 @
Interest for the
year 2016-2017
Terms of repayment for debentures
outstanding as at 31-3-2017
1.65% p.a.
payable on
inflation adjusted
principal as on the
date of coupon
payment
Redeemable at the end of 10th
year from the date of allotment.
Redemption value calculated as
[{Average Ref WPI (on Maturity
Date) / Average Ref WPI (on Issue
Date)} x face value] with Floor Rate
as 3 % and Cap Rate as 12%.
WPI here refers to Wholesale Price
Index
@ The principal amount has been calculated as [{Average Ref WPI as at reporting period / Average Ref WPI (as at 23/5/2013)} x Face Value]
19(b) Foreign currency convertible bonds:
0.675% US$ denominated 5 years & 1 day Foreign Currency Convertible Bonds (FCCB) carried at 1201.78 crore as at March 31,
2017 (previous year: v 1190.86 crore) represent 1,000 bonds of US$ 200000 each. The bonds are convertible into the Company’s
fully paid equity shares of 2 each at a conversion price of v 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.
279
Notes forming part of the Financial Statements (contd.)
NOTE [19] (contd.)
19(c) Details of term loans (unsecured): Foreign currency loans:
Sr.
no.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Total
Less:
As at
31-3-2017
v crore
1288.32
As at
31-3-2016
v crore
1312.64
As at
1-4-2015
v crore
Rate of interest
Terms of repayment of term loan outstanding as at
31-03-2017
1235.31 USD LIBOR + Spread
Repayable on October 21, 2019
642.97
654.77
616.36 USD LIBOR + Spread
Repayable in 3 installments on (i) November 3, 2018
(ii) November 3, 2019 and (iii) November 3, 2020
323.96
129.51
162.14
157.56
330.75
131.95
165.64
291.65
311.82 USD LIBOR + Spread
Repayable on July 2, 2018
124.34 USD LIBOR + Spread
Repayable on September 27, 2017
156.26 USD LIBOR + Spread
Repayable on July 14, 2017
273.96 USD LIBOR + Spread
203.87
402.83
378.15 USD LIBOR + Spread
452.61
659.34
619.62 USD LIBOR + Spread
549.57
658.91
619.62 USD LIBOR + Spread
Repayable in 2 installments on (i) August 30, 2017
and (ii) June 28, 2018
Repayable in 2 installments on (i) August 30, 2017
and (ii) June 28, 2018
Repayable in 2 installments on (i) August 30, 2017
and (ii) June 28, 2018
Repayable in 2 installments on (i) August 30, 2017
and (ii) June 28, 2018
193.22
–
75.61
162.13
4341.47
1110.89
3230.58
369.40
346.73 USD LIBOR + Spread
Repayable on August 30, 2017
–
312.50
Fixed Interest Rate
115.80
145.70 USD LIBOR + Spread
Repayable in 2 equal installments on (i) September 18,
2017 and (ii) June 18, 2018
165.64
5259.32
836.81
4422.51
– USD LIBOR + Spread
Repayable on October 19, 2018
5140.37
36.46 Current maturities of long term borrowings [Note 24]
5103.91 Borrowings non-current [Note 19]
Loans guaranteed by directors - v Nil (previous year v Nil)
19(d) Sales tax deferment loan (unsecured):
Sr.
no.
1.
2.
3.
4.
Total
Less:
As at
31-3-2017
v crore
0.16
As at
31-3-2016
v crore
0.24
As at
1-4-2015
v crore
0.33
0.12
–
–
0.28
0.20
0.08
0.24
0.14
–
0.62
0.34
0.28
0.36
0.28
0.10
1.07
0.45
0.62
Rate of Interest
Terms of repayment as at March 31, 2017
Repayable in 2 annual installments of v 0.08 crore
ending April 26, 2018
Interest Free
Repayable on April 26, 2017
Current maturities of long term borrowings [Note 24]
Borrowings non-current [Note 19]
280
Notes forming part of the Financial Statements (contd.)
NOTE [20]
Other financial liabilities - non-current
Particulars
Forward contract payables
Embedded derivative payables
Financial guarantee contracts
Due to others
NOTE [21]
Provisions - non-current
Particulars
Employee pension scheme [Note 50(a)]
Post-retirement medical benefits plan [Note 50(a)]
Provision for interest rate guarantee
NOTE [22]
Other non-current liabilities
Particulars
Other payables
NOTE [23]
Financial Liabilities: Borrowings - current
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
26.94
22.46
11.83
27.34
88.57
v crore
34.01
–
16.93
21.51
72.45
v crore
44.74
19.24
24.66
13.36
102.00
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
290.29
180.39
–
470.68
v crore
227.08
144.42
–
371.50
v crore
202.38
138.86
4.86
346.10
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
3.86
v crore
5.83
v crore
0.81
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
Secured Unsecured
Total
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Loans repayable on demand from banks
[Note 23(b)]
v crore
221.35
v crore
–
v crore
221.35
v crore
125.07
v crore
–
v crore
125.07
v crore
57.79
v crore
8.94
v crore
66.73
Short term loan and advances from banks
216.06
1449.20
1665.26
289.02 3253.10 3542.12
391.72 2485.80 2877.52
[Note 23(b)]
Commercial paper
Loans from related parties
–
–
442.71
5.52
442.71
5.52
–
–
499.54
9.25
499.54
9.25
–
–
997.08
57.25
997.08
57.25
437.41
1897.43
2334.84
414.09 3761.89 4175.98
449.51 3549.07 3998.58
23(a) Loans guaranteed by directors v Nil (previous year v Nil)
23(b) 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, short term loans and advances from the banks, working capital
facilities and other non-fund based facilities viz. bank guarantees and letter of credit, are secured by hypothecation of inventories
and trade receivables. Amount of inventories and trade receivables that are pledged as collateral: v 6149.71 crore as at March 31,
2017; v 6188.72 crore as at March 31, 2016; v 6098.53 crore as at April 1, 2015.
281
Notes forming part of the Financial Statements (contd.)
NOTE [24]
Financial liabilities: Current maturities of long term borrowings
Particulars
Unsecured:
Redeemable non-convertible fixed rate debentures
[Note 19(a)(ii)]
Term loans from banks [Note 19(c)]
Sales tax deferment loan [Note 19(d)]
Finance lease obligation
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
–
1110.89
0.20
0.50
1111.59
v crore
598.88
836.81
0.34
–
1436.03
v crore
611.02
36.46
0.45
–
647.93
24(a) Loans guaranteed by directors v Nil (previous year v Nil)
NOTE [25]
Financial liabilities - current: Trade payables
Particulars
Acceptances
Due to related parties:
Subsidiary companies
Associate companies
Joint venture companies
Micro and small enterprises [Note 57]
Due to others
NOTE [26]
Other financial liabilities - current
Particulars
Unclaimed dividend
Embedded derivative payables
Financial guarantee contracts
Due to others [Note 26(a)]
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
399.78
v crore
v crore
660.83
v crore
v crore
920.16
638.02
4.16
1836.93
601.89
5.35
1674.82
379.38
22.81
1412.95
2479.11
124.08
21028.86
24031.83
2282.06
134.32
19138.71
22215.92
1815.14
115.46
15525.24
18376.00
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
46.61
111.23
8.88
1405.93
1572.65
v crore
39.33
149.54
18.03
1112.78
1319.68
v crore
33.59
11.18
13.07
1132.73
1190.57
26(a) Due to others include due to directors R 55.58 crore (as at 31-3-2016: R 51.30 crore; as at 1-4-2015: R 53.83 crore)
NOTE [27]
Other current liabilities
Particulars
Due to customers (construction related activity)
Due to customers (property development projects)
Advances from customers
Other payables
282
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
4231.98
57.88
12628.78
1379.08
18297.72
v crore
4733.71
222.17
12518.95
1177.13
18651.96
v crore
4013.17
365.21
11147.06
1260.54
16785.98
Notes forming part of the Financial Statements (contd.)
NOTE [28]
Current liabilities: Provisions
Particulars
Provision for employee benefits:
Gratuity [Note 50(a)]
Compensated absences
Employee pension scheme [Note 50(a)]
Post-retirement medical benefits plan [Note 50(a)]
Others:
Other provisions (Ind AS 37 related) [Note 54]
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
v crore
v crore
71.94
518.64
22.46
5.25
52.70
502.10
56.17
11.16
35.85
486.02
13.26
10.04
618.29
473.86
1092.15
622.13
275.16
897.29
545.17
256.25
801.42
NOTE [29]
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 that may arise in respect of which the Company
is in appeal
(e) Corporate guarantees for debt given on behalf of subsidiary
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
1743.95
141.50
69.20
460.55
v crore
1025.52
156.72
v crore
883.06
132.13
60.73
55.41
531.84
826.44
companies/joint venture companies
8450.61
7327.31
8723.55
(f) Corporate and bank guarantees for performance given on behalf of
subsidiary companies
16384.12
8847.53
9201.96
(g) Contingent liabilities, if any, incurred in relation to interests in joint
operations
7018.24
4170.76
3248.49
(h) Share in contingent liabilities of joint operations for which the
Company is contingently liable
53.24
58.18
80.13
(i)
Contingent liabilities in respect of liabilities of other joint operators
of joint operations
6230.96
8006.19
10840.81
Notes:
1.
The Company does not expect any reimbursements in respect of the above contingent liabilities.
2.
3.
4.
5.
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 ten years, being the period over which the
validity of the guarantees extends except in a few cases where the cash outflows, if any, could occur any time during the
subsistence of the borrowings to which the guarantees relate.
In respect of matters at (f), the cash outflows, if any, could generally occur up to three years, being the period over which the
validity of the guarantees extends.
In respect of matters at (g) to (i), the cash outflows, if any, could generally occur upto completion of projects undertaken by the
respective joint operations.
283
Notes forming part of the Financial Statements (contd.)
NOTE [30]
Commitments
Sr.
no.
(a)
(b)
(c)
Estimated amount of contracts remaining to be executed on capital account
(net of advances)
Particulars
As at
31-3-2017
533.49
As at
31-3-2016
196.72
v crore
As at
1-4-2015
294.40
Funding committed by way of equity/loans to subsidiary/joint venture companies
Share in capital commitments, of joint operations for which the company is
contingently liable
1063.20
1281.00
2738.00
–
2.61
159.34
NOTE [31]
Revenue from operations
Particulars
Sales and service:
Construction and project related activity [Note 48(a)(i)]
Manufacturing and trading activity
Property development activity [Note 48(c)(i)]
Engineering and service fees
Servicing
Commission
Other operational income:
Income from hire of plant and equipment
Technical fees
Lease rentals
Income from services to Group companies
Premium earned (net) on related forward exchange contracts
Miscellaneous income
NOTE [32]
Other income
Particulars
Interest income:
Subsidiary and associate companies
Others
Dividend income:
From investments - non-current
Subsidiary companies
Associate companies
Joint venture companies
Others
Net gain/(loss) on sale or fair valuation of investments
Net gain/(loss) on sale of property, plant and equipment
Lease rentals
Miscellaneous income (net of expenses)
284
2016-17
2015-16
v crore
v crore
v crore
v crore
58498.42
5730.98
403.18
24.73
597.88
140.81
80.28
–
67.79
170.74
48.45
538.09
55522.22
5957.40
843.60
44.74
760.57
137.30
65396.00
63265.83
77.54
0.36
71.85
112.16
38.02
246.89
905.35
66301.35
546.82
63812.65
2016-17
2015-16
v crore
325.62
213.69
405.47
–
–
659.63
v crore
v crore
v crore
268.24
262.48
539.31
530.72
994.16
0.38
13.75
113.06
1065.10
(72.44)
23.70
70.48
345.70
1971.85
1121.35
150.87
82.51
39.90
415.69
2341.04
Notes forming part of the Financial Statements (contd.)
NOTE [33]
Manufacturing, construction and operating expenses
Particulars
Materials consumed:
Raw materials and components
Less: Scrap sales
Excise duty
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
Changes in inventories of finished goods, work-in-progress,
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
Royalty and technical know-how fees
Packing and forwarding
Hire charges - plant and equipment and others
Engineering, technical and consultancy fees
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to plant and equipment
Repairs to buildings
General repairs and maintenance
Bank guarantee charges
Miscellaneous expenses
2016-17
2015-16
v crore
v crore
v crore
v crore
7444.84
74.27
1390.84
–
221.52
169.68
3044.67
3435.87
161.68
159.77
3246.01
3567.46
16.30
1041.49
15.75
340.15
1015.13
761.70
187.07
415.25
366.42
759.81
56.54
6.10
303.18
151.15
372.48
7397.55
635.39
18804.70
1129.45
1349.23
15567.87
7370.57
577.49
18493.31
1390.84
1446.67
16770.61
7455.04
57.49
1145.94
(16.49)
161.68
159.77
3246.01
3567.46
261.20
161.13
3221.70
3644.03
131.59
76.57
(4.91)
911.55
20.62
316.38
707.42
676.35
167.53
418.24
307.84
771.58
49.65
8.08
254.88
144.67
458.45
5808.52
51989.60
5208.33
50169.09
285
Notes forming part of the Financial Statements (contd.)
NOTE [34]
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 50(b)]
Expenses on employees stock option schemes [Note 17(v)(B)]
Insurance expenses - medical and others
Staff welfare expenses
Recoveries on account of deputation
NOTE [35]
Sales, administration and other expenses
Particulars
Power and fuel
Packing and forwarding
Professional fees
Audit fees [Note 55]
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to buildings
General repairs and maintenance
Directors‘ fees
Telephone, postage and telegrams
Advertising and publicity
Stationery and printing
Commission:
Distributors and agents
Others
Bank charges
Miscellaneous expenses
Bad debts and advances written off
Less: Allowance for doubtful debts and advances written back
Carried forward
286
2016-17
2015-16
v crore
114.67
(4.40)
67.30
v crore
4554.79
v crore
v crore
4282.55
116.39
47.57
57.70
177.57
61.77
77.17
618.72
(343.55)
5146.47
2016-17
2015-16
v crore
27.27
4.88
87.48
45.05
v crore
28.33
2.74
121.19
12.96
v crore
59.26
91.05
224.58
5.33
37.86
229.51
50.91
280.10
9.53
229.67
0.82
104.84
77.80
38.40
32.15
57.96
599.05
42.43
2171.25
221.66
60.34
75.25
574.08
(239.08)
4974.80
v crore
65.83
104.75
292.75
4.40
33.16
219.72
49.41
284.27
8.97
213.51
0.59
98.86
61.96
41.76
31.07
64.83
403.68
108.23
2087.75
Notes forming part of the Financial Statements (contd.)
NOTE [35]
Sales, administration and other expenses (contd.)
Particulars
Brought forward
Discount on sales
Allowance for doubtful debts and advances (net)
Provision/(reversal) for foreseeable losses on construction contracts
Exchange (gain)/loss (net)
Other provisions [Note 54(a)]
NOTE [36]
Finance costs
Particulars
Interest expenses
Other borrowing costs
Exchange loss (attributable to finance costs)
2016-17
2015-16
v crore
v crore
v crore
2171.25
(0.01)
395.29
(5.93)
(22.40)
203.35
2741.55
2016-17
v crore
1252.78
0.56
64.69
1318.03
v crore
2087.75
-
594.93
9.47
134.58
19.04
2845.77
2015-16
v crore
1345.98
1.19
129.65
1476.82
NOTE [37]
Particulars in respect of loans and advances in the nature of loans to related parties as required by the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015:
v crore
Sr.
no.
A
B
C
D
E
F
G
H
I
J
Name of the company
Balance as at
Maximum outstanding during
31-3-2017
31-3-2016
2016-2017
2015-2016
Loans and advances in the nature of loans given to subsidiaries:
L&T Seawoods Limited
L&T Realty Limited
L&T Shipbuilding Limited
L&T Special Steels & Heavy Forgings Private Limited
PNG Tollway Limited
EWAC Alloys Limited
L&T Hydrocarbon Engineering Limited
L&T Valves Limited
Nabha Power Limited
–
16.56
512.00
1167.22
18.20
–
2.23
–
190.82
269.98
2018.01
866.55
18.20
16.00
341.20
397.41
2651.87
1167.22
18.20
16.00
249.20
644.44
2680.62
870.54
62.17
16.00
507.90
511.74
2163.55
–
–
15.07
1576.88
902.99
1827.99
3240.44
L&T-MHPS Turbine Generators Private Limited
–
–
300.08
179.09
Total
3293.09
4790.45
287
Notes forming part of the Financial Statements (contd.)
NOTE [37]
Particulars in respect of loans and advances in the nature of loans to related parties as required by the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (contd.)
Notes:
–
–
–
Above figures include interest accrued
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.
Subsidiary classification is in accordance with the Companies Act, 2013
NOTE [38]
Disclosure pursuant to section 186 of the Companies Act, 2013:
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
31-3-2017
Sr.
no.
(A)
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
Project funding
Project funding
Working capital and project funding
Working capital and project funding
Project funding
Short term funding
Working capital
Project funding
(ii) Others:
Boyance Infrastructure Private Limited
General corporate purpose
Total (i)+(ii)
(B) Other advances:
Subsidiary companies:
L&T Uttaranchal Hydropower Limited
L&T Metro Rail (Hyderabad) Private Limited
Towards capital contribution
Towards capital contribution
v crore
As at
31-3-2016
269.98
190.82
2018.01
866.55
18.20
16.00
507.90
902.99
4790.45
75.62
4866.07
5.25
–
5.25
16.56
–
512.00
1167.22
18.20
–
2.23
1576.88
3293.09
–
3293.09
–
6.35
6.35
(C) 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 Saudi LLC
Larsen & Toubro Arabia LLC
Larsen & Toubro Infotech Limited
288
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
Corporate guarantee for subsidiary’s
project performance
44.64
57.01
120.61
233.97
472.36
548.32
2781.00
1331.00
5032.00
5157.00
–
909.51
5369.27
1013.25
202.26
238.68
Notes forming part of the Financial Statements (contd.)
NOTE [38]
Disclosure pursuant to section 186 of The Companies Act 2013 (contd.)
Sr.
no.
Nature of the transaction (loans given/investment made/guarantee
given/security provided)
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
Purpose for which the loan/
guarantee/security is proposed to be
utilised by the recipient
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 L&T-MHPS
Boilers Private Limited for Project
performance
(D)
Investments in fully paid equity instruments and current
investments
Note: Subsidiary classification is in accordance with the Companies Act, 2013
As at
31-3-2017
v crore
As at
31-3-2016
917.62
589.79
–
19.75
1172.46
1197.86
3272.69
2693.04
2.90
2.90
5418.32
2173.23
28.60
9.52
24834.73
16174.84
[Note 5 and Note 10 ]
NOTE [39]
Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year is v 98.97 crore
(previous year: R 101.46 crore).
(a) The amount recognised as expense in the Statement of Profit and Loss on CSR related activities is v 100.77 crore (previous year:
R 119.89 crore), which comprises of:
Sr.
no.
i)
ii)
Particulars
Disclosed
under
In Cash
2016-17
Yet to be
paid in
cash
Total
2015-16
In Cash Yet to be
paid in
cash
v crore
Total
Construction/acquisition of assets charged
and shown under sales, administration
and other expenses
Other revenue expenses:
charged and shown under sales,
administration and other expenses
charged and shown under employee
Note 35
6.19
3.30
9.49
5.53
0.33
5.86
Note 35
61.48
10.34
71.82
95.71
4.01
99.72
benefits expense
Total
Note 34
19.03
86.70
0.43
14.07
19.46
100.77
14.09
115.33
0.22
4.56
14.31
119.89
NOTE [40]
The expenditure on research and development activities recognised as expense in the Statement of Profit and Loss is v 145.98 crore
(previous year: v 149.62 crore). Further, the company has incurred capital expenditure on research and development activities as follows:
(a) on tangible assets of v 9.43 crore (previous year: v 5.19 crore);
(b) on intangible assets being expenditure on new product development of v 43.01 crore (previous year: v 48.19 crore) [Note 1(i)(ii)] and
(c) on other intangible assets of v 1.09 crore (previous year: v 0.55 crore).
289
Notes forming part of the Financial Statements (contd.)
NOTE [41]
Disclosures pursuant to Ind AS 17 “Leases”:
(a) Where the Company is a lessor
(i) Operating leases:
The Company has given a building under non-cancellable operating lease, the future minimum lease payments receivable in
respect of which are as follows:
Sr.
no.
1.
2.
3.
Particulars
Receivable not later than 1 year
Receivable later than 1 year and not later than 5 years
Receivable later than 5 years
Total
(b) Where the Company is a lessee:
(i)
Finance leases:
As at
31-3-2017
As at
31-3-2016
48.69
34.41
–
46.42
67.47
–
83.10
113.89
v crore
As at
1-4-2015
20.02
12.28
–
32.30
(A) Assets acquired on finance lease comprises plant and equipment and land. 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.
(B) The minimum lease rentals and the present value of minimum lease payments in respect of assets acquired under finance
leases are as follows:
Sr.
no.
1.
2.
3.
Particulars
Payable not later than 1 year
Payable later than 1 year and not later than 5
years
Payable later than 5 years
Total (1+2+3)
Less: Future finance charges
Present value of minimum lease payments
Minimum lease payments
v crore
Present value of minimum lease
payments
As at
31-3-2017
0.56
As at
31-3-2016
0.01
As at
1-4-2015
–
As at
31-3-2017
0.50
As at
31-3-2016
–
As at
1-4-2015
–
0.16
0.15
0.87
0.17
0.70
0.02
0.15
0.18
0.11
0.07
–
–
–
–
–
0.14
0.06
0.70
–
0.70
–
0.07
0.07
–
0.07
–
–
–
–
–
(C) Contingent rent recognised in the Statement of Profit and Loss: v Nil (previous year: v Nil)
(ii) Operating leases:
(A) The Company has taken various commercial premises and plant and equipment under cancellable operating leases.
These lease agreements are normally renewed on expiry.
(B) Assets acquired on non-cancellable operating lease comprises commercial premises, cars and technology assets, the
future minimum lease payments in respect of which are as follows:
Sr.
No.
1.
2.
3.
Particulars
Payable not later than 1 year
Payable later than 1 year and not later than 5 years
Payable later than 5 years
Total
As at
31-3-2017
18.33
27.13
–
45.46
As at
31-3-2016
18.05
20.27
–
38.32
v crore
As at
1-4-2015
13.09
9.23
–
22.32
(C) Lease rental expense in respect of operating leases: v 109.10 crore (previous year: v 76.97 crore)
(D) Contingent rent recognised in the Statement of Profit and Loss: v Nil (previous year: v Nil)
290
Notes forming part of the Financial Statements (contd.)
NOTE [42]
Disclosure pursuant to Ind AS 105 “Non-current assets held for sale and discontinued operations”:
Particulars
Investments held for sale (A)
Assets of disposal group classified as held for sale (B)
Group(s) of assets as classified as held for sale
Liabilities of disposal group classified as held for sale (B)
As at
31-3-2017
388.00
–
388.00
–
As at
31-3-2016
–
–
–
–
v crore
As at
1-4-2015
–
141.79
141.79
37.22
The Company has identified the above as held for sale to optimise the capital allocation and focus on core business. The sale is
envisaged through transfer of title deeds for identified assets held for sale and through divestment of stake/business transfer agreement
in case of disposal group held for sale. The proposed sale are expected to be completed within 12 months from the respective reporting
dates.
(A)
Investments held for sale:
(i)
Through a scheme of arrangement of demerger, the Port business in L&T Shipbuilding Limited (effective date March 22, 2017)
is transferred to Marine Infrastructure Developer Private Limited (MIDPL). As a shareholder L&T has received 38,80,00,000
equity shares of v 10 each. L&T is planning to divest its stake in MIDPL to an identified strategic partner. Accordingly, the
investment in MIDPL is presented as assets held for sale.
(ii) The Investment held for sale forms part of the unallocable corporate assets. [Note 47(a)].
(B) Assets and Liabilities of disposal group classified as held for sale:
(i)
Pursuant to Board of Directors decision on November 7, 2014, to sell Company’s Foundry Business Unit a definitive agreement
with M/S Bradken Operations Pty Limited was executed on November 11, 2014. The associated assets and liabilities are
consequently presented as held for sale as at April 1, 2015. The Foundry Business was subsequently sold on March 31, 2016.
(ii) Details of assets and liabilities of disposal group classified as held for sale as at April 1, 2015:
Particulars
Assets classified as held for sale:
Property, plant and equipment
Other intangible assets
Inventories
Trade receivables
Cash and cash equivalents
Other current assets
Total assets of disposal group classified as held for sale
Liabilities directly associated with assets classified as held for sale:
Particulars
Borrowings
Trade payables
Provisions
Other current liabilities
Total liabilities of disposal group classified as held for sale
v crore
75.53
0.22
22.42
34.63
0.11
8.88
141.79
v crore
0.01
32.89
0.46
3.86
37.22
(iii)
The assets and liabilities of the disposal group are presented in assets and liabilities of construction equipment & others
segment reported under “Others” segment. [Note 47(a)].
291
Notes forming part of the Financial Statements (contd.)
NOTE [43]
Disclosure pursuant to Ind AS 1 “Presentation of financial statements”:
(a) Current assets expected to be recovered within twelve months and after twelve months from the reporting date:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Particulars
Note
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
v crore
Total
Inventories
Trade receivables
Loans - current
Other financial assets
Other current assets
9
11
14
15
16
1706.03
56.83
1762.86
1914.84
40.27
1955.11
2236.19
24.58
2260.77
19527.21
392.76
19919.97 18516.81
450.94 18967.75 16233.86
556.14 16790.00
1914.37
5.04
1919.41
2432.23
0.03
2432.26
1377.11
4.50
1381.61
1949.83
104.80
2054.63
1772.38
108.11
1880.49
1318.01
110.08
1428.09
23972.84
9290.86
33263.70 23418.54 10063.41 33481.95 19909.13
8545.70 28454.83
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
Particulars
Note
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
v crore
Total
Trade payables
Other financial liabilities
Other current liabilities
Provisions
25
26
27
28
22779.22
1252.61
24031.83 21223.65
992.27 22215.92 17215.21
1160.79 18376.00
1529.91
42.74
1572.65
1280.68
39.00
1319.68
1159.37
31.20
1190.57
12184.01
6113.71
18297.72 13186.78
5465.18 18651.96 11149.24
5636.74 16785.98
963.70
128.45
1092.15
821.76
75.53
897.29
754.28
47.14
801.42
NOTE [44]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management
(a) Foreign exchange rate and interest rate risk:
The Company regularly reviews its foreign exchange forward and option positions and interest rate swaps, both on a standalone
basis and in conjunction with its underlying foreign currency and interest rate related exposures. The Company follows cash flow
hedge accounting for Highly Probable Forecasted Exposures (HPFE) hence the movement in mark to market (MTM) of the hedge
contracts undertaken for such exposures is likely to be offset by contra movements in the underlying exposures values. However,
till the point of time that the HPFE becomes an on Balance Sheet exposure, the changes in MTM of the hedge contracts will impact
the Balance Sheet of the Company. Further, given the effective horizons of the Company’s risk management activities which
coincide with the durations of the projects under execution and could extend across 3-4 years and the business uncertainties
associated with the timing and estimation of the project exposures, the recognition of the gains and losses related to these
instruments may not always coincide with the timing of gains and losses related to the underlying economic exposures and,
therefore, may affect the Company’s financial condition and operating results. Hence, the Company monitors the potential risk
arising out of the market factors like exchange rates, interest rates, price of traded investment products etc. on a regular basis. For
on Balance Sheet exposures, the Company monitors the risks on net unhedged exposures.
(i)
Foreign exchange rate risk:
In general, the Company is a net receiver of foreign currency. Accordingly, changes in exchange rates, and in particular a
strengthening of the Indian Rupee, will negatively affect the Company’s net sales and gross margins as expressed in Indian
Rupees. There is a risk that the Company may have to adjust local currency product pricing due to competitive pressures
when there have been significant volatility in foreign currency exchange rates.
The Company may enter into foreign currency forward and option contracts with financial institutions to protect against
foreign exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted
292
Notes forming part of the Financial Statements (contd.)
NOTE [44] (contd.)
future cash flows and net investments in foreign subsidiaries. In addition, the Company has entered and may enter in the
future, into non-designated foreign currency contracts to partially offset the foreign currency exchange gains and losses on its
foreign-denominated debt issuances. The Company’s practice is to hedge a portion of its material foreign exchange exposures
with tenors in line with the project/business life cycle, however, the Company may choose not to hedge certain foreign
exchange exposures for a variety of reasons.
The net exposure to foreign currency risk (based on notional amount) in respect of recognised financial assets, recognised
financial liabilities and derivatives is as follows:
Particulars
Net exposure to foreign currency risk in
respect of recognised financial assets/
(recognised financial liabilities)
Derivatives including embedded
derivatives for hedging receivable/
(payable) exposure with respect
to firm commitments and forecast
transactions
Receivable/(payable) exposure with
respect to forward contracts
and embedded derivatives not
designated as cash flow hedge
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
US Dollars
including
pegged
currencies
EURO
Japanese
Yen
US Dollars
including
pegged
currencies
EURO Japanese
Yen
US Dollars
including
pegged
currencies
EURO Japanese
Yen
v crore
(1729.90)
(397.06)
(366.03)
(933.60)
(190.65)
(206.00) (1587.07)
(104.70)
(206.44)
3664.22
(1085.56)
604.27
3027.96
(855.69)
105.37
2787.36 (1069.82)
94.63
752.13
(5.42)
–
119.60
(27.30)
–
7.00
21.33
–
To provide a meaningful assessment of the foreign currency risk associated with the Company’s foreign currency derivative
positions against off-Balance Sheet exposures and unhedged portion of on-Balance Sheet financial assets and liabilities,
the Company uses a multi-currency correlated value-at-risk (“VAR”) model. The VAR model uses a Monte Carlo simulation
to generate thousands of random market price paths for foreign currencies against Indian Rupee taking into account the
correlations between them. The VAR is the expected loss in value of the exposures due to overnight movement in spot
exchange rates, at 95% confidence interval. The VAR model is not intended to represent actual losses but is used as a risk
estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Company uses
foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset by
increase in the fair value of the underlying exposures for on Balance Sheet exposures. The overnight VAR for the Company at
95% confidence level is v 59.80 crore as at March 31, 2017 and v 27.60 crore as at March 31, 2016.
Actual future gains and losses associated with the Company’s investment portfolio and derivative positions may differ
materially from the sensitivity analysis performed as at March 31, 2017 due to the inherent limitations associated with
predicting the timing and amount of changes in foreign currency exchange rates and the Company’s actual exposures and
position.
(ii)
Interest rate risk:
The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. While
most of the Company’s outstanding debt in local currency is on fixed rate basis and hence not subject to interest rate risk.
A major portion of foreign currency debt is linked to international interest rate benchmarks like LIBOR. The Company also
hedges a portion of these risks by way of derivative instruments like interest rate swaps and currency swaps.
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
Particulars
As at 31-3-2017 As at 31-3-2016
v crore
As at 1-4-2015
Floating rate borrowings
4470.01
6570.15
5958.86
A hypothetical 25 basis point shift in respective currency LIBORs on the unhedged loans would result in a corresponding
increase/decrease in interest cost for the Company on a yearly basis.
293
Notes forming part of the Financial Statements (contd.)
NOTE [44] (contd.)
Particulars
Indian Rupee
Interest rates - increase by 0.25% in INR interest rate *
Interest rates - decrease by 0.25% in INR interest rate *
US Dollar
Interest rates - increase by 0.25% in USD interest rate *
Interest rates - decrease by 0.25% in USD interest rate *
* Holding all other variables constant
Impact on Profit and Loss
after tax
2016-17
2015-16
v crore
Impact on equity
As at
31-3-2017
As at
31-3-2016
(0.55)
0.55
(6.77)
6.77
(0.32)
0.32
(9.88)
9.88
(0.55)
0.55
(6.77)
6.77
(0.32)
0.32
(9.88)
9.88
(b)
Liquidity risk management:
The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding
through an adequate amount of committed credit lines. Given the need to fund diverse businesses, the Company maintains
flexibility in funding by maintaining availability under committed credit lines to meet obligations when due. Management regularly
monitors the position of cash and cash equivalents vis-à-vis projections. Assessment of maturity profiles of financial assets and
financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing
the liquidity position.
The Company’s investment policy and strategy are focused on preservation of capital and supporting the Company’s liquidity
requirements. The Company uses a combination of internal and external management to execute its investment strategy and
achieve its investment objectives. The Company typically invests in money market funds, large debt funds, government of india
securities, equity funds and other highly rated securities under a limits framework which governs the credit exposure to any one
issuer as defined in its investment policy. The policy requires investments generally to be investment grade, with the primary
objective of minimising the potential risk of principal loss. To provide a meaningful assessment of the price risk associated with the
Company’s investment portfolio, the Company performed a sensitivity analysis to determine the impact of change in prices of the
securities that would have on the value of the investment portfolio assuming a 0.25% movement in debt funds and debt securities
and a 5% movement in the NAV of the equity funds. Based on the investment position a hypothetical 0.25% change in the fair
market value of debt securities would result in a value change of +/- v 4.08 crore as at March 31, 2017 and +/- v 14.83 crore as
at March 31, 2016. 5% change in the equity funds NAV would result in a value change of +/- v 17.14 crore as at March 31, 2017
and +/- v 2.87 crore as at March 31, 2016. The investments in money market funds are for the purpose of liquidity management
only and are held only overnight and hence not subject to any material price risk.
(c) Credit Risk Management:
The Company’s customer profile include public sector enterprises, state owned companies and large private corporates.
Accordingly, the Company’s customer credit risk is low. The Company’s average project execution cycle is around 24 to 36 months.
General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days
and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate
guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation
to ensure proper attention and focus for realisation.
The company is making provisions on trade receivables based on Expected Credit Loss (ECL) model. The reconciliation of ECL is as
follows:
Opening balance
Changes in loss allowance (Provision for doubtful debts):
Particulars
Loss allowance based on ECL
Additional provision
Write off as bad debts
Closing balance [reported under Note 11]
294
2016-17
1568.79
220.71
167.14
(39.98)
1916.66
v crore
2015-16
1008.78
345.66
221.31
(6.96)
1568.79
Notes forming part of the Financial Statements (contd.)
NOTE [45]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”:
(a) Category-wise classification for applicable financial assets:
Particulars
As at
31-3-2017
As at
31-3-2016
Measured at fair value through Profit or Loss (FVTPL):
(i)
Investment in equity instruments
(ii)
(iii)
Investment in preference shares
Investment in mutual funds
(iv)
Investment in bonds
(v) Derivative instruments not designated as cash flow hedges
(vi) Embedded derivatives not designated as cash flow hedges
Sub-total (I)
II. Measured at amortised cost:
(i)
Loans
(ii) Trade receivables
(iii) Advances recoverable in cash
(iv) Cash and cash equivalents and bank balances
(v) Other receivables
Sub-total (II)
III. Measured at fair value through Other Comprehensive Income (FVTOCI):
(i)
Investment in government securities, bonds and debentures
(ii) Derivative financial instruments designated as cash flow hedges
(iii) Embedded derivatives designated as cash flow hedges
Sub-total (III)
Total (I+II+III)
(b) Category-wise classification for applicable financial liabilities:
Sr.
no.
I.
Sr.
no.
I.
v crore
As at
1-4-2015
173.30
45.65
3041.48
164.19
18.41
10.39
3453.42
56.04
441.95
2680.28
300.13
1.31
131.64
3611.35
56.04
605.10
5031.03
202.33
6.08
78.97
5979.55
3683.59
19919.97
796.49
4025.79
787.33
5224.53
2397.63
18967.75
16790.00
954.51
3668.44
670.43
631.25
3096.21
549.76
29213.17
29485.66
23464.85
1748.72
659.92
2.62
2411.26
37603.98
1822.91
494.21
4.31
2312.38
487.21
1.94
2321.43
2801.53
35418.44
29719.80
Particulars
As at
31-3-2017
As at
31-3-2016
Measured at fair value through profit or loss (FVTPL):
(i) Derivative Instruments not designated as cash flow hedges
(ii) Embedded derivatives not designated as cash flow hedges
Sub-total (I)
III.
II. Measured at amortised cost:
(i)
Borrowings
(ii) Trade payables
(iii) Others
Sub-total (II)
Derivative instruments (including embedded derivatives) through Other
Comprehensive Income:
(i) Derivative Instruments designated as cash flow hedges
(ii) Embedded derivatives designated as cash flow hedges
Sub-total (III)
Financial guarantee contracts
Total (I+II+III+IV)
IV.
8.53
83.26
91.79
10580.01
24031.83
1217.12
35828.96
279.60
50.43
330.03
20.71
36271.49
18.61
141.09
159.70
13924.41
22215.92
1057.15
37197.48
130.29
8.45
138.74
34.96
37530.88
v crore
As at
1-4-2015
14.99
7.10
22.09
13077.32
18376.00
853.81
32307.13
353.97
23.32
377.29
37.73
32744.24
295
Notes forming part of the Financial Statements (contd.)
NOTE [45]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures” (contd.)
(c)
Items of income, expense, gains or losses related to financial instruments:
Sr.
no.
I
Net gains/(losses) on financial assets and financial liabilities measured at fair value through Profit
or Loss and amortised cost:
Particulars
A Mandatorily measured at fair value through Profit or Loss:
(i) Gains/(losses) on fair valuation or sale of investment
(ii)
Gains/(losses) on fair valuation or settlement of forward contracts not designated as
cash flow hedges
Gains/(losses) on fair valuation or settlement of embedded derivative contracts not
designated as cash flow hedges
(iii)
Sub-total (A)
Financial assets measured at amortised cost:
(i)
exchange difference gains/(losses) on revaluation or settlement of items denominated
in foreign currency (trade receivables, loans given etc.)
(Allowance)/reversal for ECL recognised during the year in the Statement of Profit and
Loss
(ii)
(iii) Provision for doubtful debts (other than ECL) (net)
(iv) Bad debts written off (net)
Sub-total (B)
Financial liabilities measured at amortised cost:
(i)
exchange difference gains/(losses) on re-valuation or settlement of items denominated
in foreign currency (trade payables, borrowings availed etc.)
(ii) Unclaimed credit balances written back
Sub-total (C)
Total [I] = (A+B+C)
Net gains/(losses) on financial assets and financial liabilities measured at fair value through
Other Comprehensive Income:
Financial assets measured at fair value through Other Comprehensive Income:
(i) Gains/(losses) recognised in Other Comprehensive Income:
1.
2.
3.
Gains/(losses) on fair valuation or sale of government securities, bonds, debentures
etc.
Gains/(losses) on fair valuation or settlement of forward contracts designated as
cash flow hedges
Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges
Sub-total (i)
Less:
(ii) Gains/(losses) reclassified to Profit and Loss from Other Comprehensive Income:
1.
2.
3.
On government securities, bonds, debentures etc. upon sale
On forward contracts upon hedged future cash flows affecting the profit or Loss
or related assets or liabilities
On embedded derivative contracts upon hedged future cash flows affecting the
profit or loss or related asset or liability
Sub-total (ii)
Net gain recognised in Other Comprehensive Income [II] = [(i)-(ii)]
Other income/expense:
Dividend income:
(i) Dividend income from investments measured at FVTPL
Interest income:
(i)
(ii)
(iii) Financial assets measured at fair value through Profit or Loss
Sub-total (B)
Financial assets measured at amortised cost
Financial assets measured at fair value through Other Comprehensive Income
B
C
II
A
III
A
B
296
2016-17
v crore
2015-16
(180.66)
11.98
(33.57)
(25.45)
9.93
(204.30)
(0.16)
(13.63)
(173.03)
(220.71)
(167.14)
(42.43)
(603.31)
291.03
(345.66)
(221.31)
(108.23)
(384.17)
277.28
130.71
407.99
(399.62)
(831.25)
57.11
(774.14)
(1171.94)
103.82
(29.81)
(129.42)
(146.14)
(24.02)
(49.62)
9.72
(166.23)
112.99
(25.94)
(142.39)
274.12
(4.08)
(33.48)
(16.14)
–
248.18
(414.41)
659.63
113.06
380.28
157.84
1.08
539.20
330.27
199.13
1.29
530.69
Notes forming part of the Financial Statements (contd.)
NOTE [45]
(c)
Items of income, expense, gains or losses related to financial instruments (contd.)
Sr.
no.
C
Interest expense
Particulars
(i)
Financial liabilities measured at fair value through Other Comprehensive Income
(ii)
Financial liabilities measured at amortised cost
(iii) Financial liabilities measured at fair value through Profit or Loss
Sub-total (C)
Total [III] = (A+B+C)
2016-17
v crore
2015-16
(401.21)
(832.36)
5.69
(528.20)
(863.84)
(27.85)
(1227.88)
(1419.89)
(29.05)
(776.14)
(d) Fair value of financial assets and financial liabilities measured at amortised cost:
(i)
Financial assets measured at amortised cost:
The carrying amounts of trade receivables and cash and cash equivalents are considered to be the same as their fair values
due to their short term nature. The carrying amounts of long term loans given with floating rate of interest are considered to
be close to the fair value.
(ii)
Financial liabilities measured at amortised cost:
Particulars
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Carrying
amount
Fair value
Carrying
amount
Fair value
Carrying
amount
Fair value
0.675 % Foreign currency
convertible bonds
Redeemable non-convertible fixed
1201.78
1222.20
1190.86
1236.75
1089.81
1106.46
rate debentures
2588.03
2677.39
3187.31
3234.66
2736.19
2789.39
Foreign currency non-resident loan
–
–
–
–
315.18
314.93
Total
3789.81
3899.59
4378.17
4471.41
4141.18
4210.78
v crore
Fair value
hierarchy
L2*
L2*
L2*
Note: The carrying amounts of trade and other payables are considered to be the same as their fair values due to their short
term nature. The carrying amounts of borrowings with floating rate of interest are considered to be close to the fair value.
* Valuation technique L2: Future cash flows discounted using G-sec/LIBOR rates plus corporate spread.
(e) Fair value hierarchy of financial assets and liabilities measured at fair value:
Particulars
Note
As at 31-3-2017
Level 2
Level 3
Level 1
Total
Level 1
As at 31-3-2016
Level 2
Level 3
Total
Level 1
As at 1-4-2015
Level 2
Level 3
v crore
Total
Financial assets:
Investments at FVTPL
(i) Equity shares (other than
those held in subsidiary &
associate companies)
(ii) Preference shares
(iii) Mutual fund units
(iv) Bonds
(v) Derivative instruments not
designated as cash flow
hedges
(vi) Embedded derivative
instruments not designated
as cash flow hedges
5
5
10
10
7,15
7,15
–
–
5031.03
202.33
–
–
–
56.04
605.10
–
–
6.08
78.97
–
–
–
–
–
–
56.04
56.04
117.26
–
56.04
173.30
56.04
605.10
–
–
441.95
–
441.95
–
45.65
5031.03
2680.28
202.33
300.13
–
–
– 2680.28 3041.48
–
300.13
164.19
–
–
6.08
–
1.31
–
1.31
78.97
–
131.64
–
131.64
–
–
18.41
10.39
–
45.65
– 3041.48
–
164.19
–
–
18.41
10.39
297
Notes forming part of the Financial Statements (contd.)
NOTE [45]
(e) Fair value hierarchy of financial assets and liabilities measured at fair value (contd.)
Particulars
Note
As at 31-3-2017
Level 2
Level 3
Level 1
Total
Level 1
As at 31-3-2016
Level 2
Level 3
Total
Level 1
As at 1-4-2015
Level 2
Level 3
v crore
Total
Investments at FVTOCI
(i) Debt instruments viz.
government securities, bonds,
debentures etc.
(ii) Derivative financial
instruments designated as
cash flow hedges
(iii) Embedded derivative financial
instruments designated as
cash flow hedges
Total
Financial liabilities:
Financial liabilities at FVTPL
(i) Designated as at FVTPL
(a) Derivative instruments not
designated as cash flow
hedges
(b) Embedded derivative
instruments not designated
as cash flow hedges
(ii) Derivative instruments
(including embedded
derivatives)
(a) Derivative financial
instruments designated as
cash flow hedges
(b) Embedded Derivative financial
instruments designated as
cash flow hedges
Total
10
1748.72
–
7, 15
–
659.92
–
–
1748.72
1822.91
–
– 1822.91 2312.38
–
– 2312.38
659.92
–
494.21
–
494.21
–
487.21
–
487.21
7, 15
–
6982.08
2.62
1352.69
–
56.04
2.62
8390.81
–
4.31
4803.32 1073.42
–
–
4.31
56.04 5932.78 5635.31
1.94
563.60
–
1.94
56.04 6254.95
20,26
20,26
20,26
20,26
–
–
–
–
–
8.53
83.26
279.60
50.43
421.82
–
–
–
–
–
8.53
–
18.61
–
18.61
83.26
–
141.09
–
141.09
–
–
14.99
7.10
–
–
14.99
7.10
279.60
–
130.29
–
130.29
–
353.97
–
353.97
50.43
421.82
–
–
8.45
298.44
–
–
8.45
298.44
–
–
23.32
399.38
–
–
23.32
399.38
Valuation technique and key inputs used to determine fair value:
A.
B.
Level 1: Mutual funds, bonds, debentures and government securities - Quoted price in the active market.
Level 2: (a) Derivative instruments – Present value technique using forward exchange rates at the end of reporting period.
(b) Preference shares – Future cash flows are discounted using G-sec rates as at reporting date.
(f)
Significant unobservable inputs used in level 3 fair value measurements and sensitivity of the fair value measurement to changes in
unobservable inputs:
Particulars
Equity investment in
Tidel Park Limited
Fair Value
as at
31-3-2017
Fair Value
as at
31-3-2016
Fair Value
as at
1-4-2015
Significant unobservable inputs
55.94
55.94
55.94 1. Lease realisation: Net
realisation per month v 30
per sq/ft.
2. Capitalisation rate 12%
v crore
Sensitivity
1% change in net realisation would
result in +/- v 0.38 crore
25 bps change in capitalisation rate
would result in +/- v 0.78 crore
298
Notes forming part of the Financial Statements (contd.)
NOTE [45] (contd.)
(g) Maturity profile of financial liabilities:
Particulars
Note
As at 31-3-2017
Within
twelve
months
After
twelve
months
Total
As at 31-3-2016
Within
twelve
months
After
twelve
months
Total
As at 1-4-2015
Within
twelve
months
After
twelve
months
v crore
Total
A. Non-derivative liabilities
Borrowings
Trade payables
Other financial liabilities
Total
B. Derivative liabilities
Forward contracts
Embedded derivatives
Total
19, 23, 24
25
20, 26
3731.18
22776.80
1160.08
27668.06
7797.02
1255.03
81.09
9133.14
9403.71 14444.19
9295.07 15242.15
5040.48
11528.20
5947.08
1160.83 18376.00
998.44 22215.92 17215.16
24031.83 21217.48
1241.17
892.41
819.72
1097.34
89.79
1007.55
36801.20 28172.11 10383.30 38555.41 23075.36 10637.24 33712.60
72.69
20, 26
20, 26
267.62
120.33
387.95
30.21
26.42
56.63
297.83
146.75
444.58
119.10
170.75
289.85
37.23
–
37.23
156.33
170.75
327.08
328.03
12.78
340.81
49.69
23.07
72.76
377.72
35.85
413.57
(h) Details of outstanding hedge instruments for which hedge accounting is followed:
(i) Outstanding currency exchange rate hedge instruments:
(A) Forward covers taken to hedge exchange rate risk and accounted as cash flow hedge:
Particulars
(a) Receivable hedges
US Dollar
EURO
Malaysian Ringgit
Saudi Riyal
Omani Riyal
Arab Emirates Dirham
Canadian Dollar
British Pound
Japanese Yen
Kuwaiti Dinar
Qatari Riyal
Bahraini Dinar
Particulars
(b) Payable hedges
US Dollar
EURO
Arab Emirates Dirham
Swiss Franc
Chinese Yuan
British Pound
Japanese Yen
Kuwaiti Dinar
Qatari Riyal
Saudi Riyal
Nominal
amount
(v crore)
2817.69
723.40
331.20
–
324.75
1229.22
9.41
6.12
845.50
187.89
1184.17
–
Nominal
amount
(v crore)
7232.88
1907.72
7.24
266.74
63.51
2.97
385.36
4.40
–
–
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2016
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 1-4-2015
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
66.87
84.61
14.86
–
172.04
17.59
50.29
81.60
0.66
220.92
15.58
–
2185.09
507.79
331.20
–
309.74
1029.47
9.41
6.12
467.82
164.74
1061.92
–
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
62.41
71.72
18.11
67.51
9.63
81.81
0.61
219.94
–
–
6082.60
1799.42
7.24
266.74
63.51
2.97
385.36
4.40
–
–
632.60
215.61
–
–
15.01
199.75
–
–
377.68
23.15
122.25
–
After
twelve
months
(v crore)
1150.28
108.30
–
–
–
–
–
–
–
–
2572.61
926.50
258.49
63.65
44.67
1097.11
–
–
262.44
141.21
1681.41
18.98
Nominal
amount
(v crore)
9328.85
1934.13
7.33
299.54
104.77
10.61
614.50
–
244.46
71.76
66.75 1988.31
495.64
86.04
45.24
18.57
63.65
18.34
44.67
176.63
955.63
18.83
–
–
–
–
159.10
0.64
228.69
118.06
19.07 1317.65
18.98
158.12
584.30 2026.73
785.34
430.86
213.25
–
42.94
–
65.82
–
141.48 1149.04
–
–
2.35
–
207.39
103.34
23.15
165.75
363.76 1477.36
–
–
66.34 1624.77
298.22
86.69
–
–
42.94
17.14
137.55
65.82
17.78 1010.21
–
–
2.35
94.05
0.16
0.70
211.81
165.75
17.78 1314.38
–
–
401.96
487.12
–
–
–
138.83
–
–
207.23
–
162.98
–
As at 31-3-2016
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 1-4-2015
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
67.54 5508.25 3820.60 7734.12
57.67 2135.94
75.92 1876.46
7.33
18.20
–
160.06
219.68
74.49
2.21
104.77
10.70
16.61
10.61
101.00
110.06
614.50
0.59
–
–
–
244.46
18.57
175.69
71.76
18.17
–
79.86
–
–
–
–
–
–
63.71 3889.00 3845.12
73.14
73.42 2062.80
–
–
–
160.06
–
2.21
–
16.61
–
110.06
–
–
–
175.69
–
69.43
10.06
97.34
0.57
–
17.22
299
Notes forming part of the Financial Statements (contd.)
NOTE [45] (contd.)
(B) Options taken to hedge exchange rate risk and accounted as cash flow hedge:
Particulars
Receivable hedges
US Dollar
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2016
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
As at 1-4-2015
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
–
–
–
–
–
–
–
–
148.53
63.54
148.53
–
(C) Forward covers taken to hedge exchange rate risk and accounted as net investment hedge:
Particulars
Receivable hedges
Saudi Riyal
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2016
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
As at 1-4-2015
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
785.74
19.44
27.79
757.95
584.21
20.81
–
584.21
366.36
19.54
366.36
–
(ii) Outstanding interest rate hedge instruments:
Interest rate swaps taken to hedge interest rate risk and accounted as cash flow hedge:
Particulars
Floating interest rate
borrowings
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(%)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2016
Average
rate
(%)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
As at 1-4-2015
Nominal
amount
(v crore)
Average
rate
(%)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
1433.26
8.00
672.70
760.56
1614.52
8.01
181.30
1433.22
1614.52
8.01
–
1614.52
(iii) Outstanding commodity price hedge instruments:
Commodity Forward Contract
Particulars
Silver (Kg)
Copper (Tn)
Aluminium (Tn)
Iron Ore (Tn)
Coking Coal (Tn)
Zinc (Tn)
Lead (Tn)
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
Nominal
amount
(v crore)
As at 31-3-2016
Average
rate
(v)
Nominal
amount
(v crore)
As at 1-4-2015
Average
rate
(v)
Within
twelve
months
(v crore)
–
30.99
8.20
43.19
42.07
9.53
0.23
After
twelve
months
(v crore)
–
–
–
28.47
8.33
–
–
–
30.99
8.20
71.66
50.40
9.53
0.23
–
290443.90
112943.72
3592.00
11494.00
177153.00
150777.00
Within
twelve
months
(v crore)
–
282.83
122.62
23.38
16.86
46.56
13.16
After
twelve
months
(v crore)
–
–
–
18.45
–
–
–
–
282.83
122.62
41.83
16.86
46.56
13.16
–
316014.00
111517.20
3053.00
5526.00
121345.00
121104.00
13.45
123.25
80.59
–
–
17.15
10.65
37373.00
357981.55
120551.00
–
–
135003.00
112455.00
(i) Carrying amounts of hedge instruments for which hedge accounting is followed:
Cash flow hedge
Particulars
(i) Forward contracts
Current:
Asset - Other financial assets
Liability - Other financial liabilities
Non-current:
Asset - Other financial assets
Liability - Other financial liabilities
(ii) Swap contracts
Current:
Asset - Other financial assets
Liability - Other financial liabilities
Non-current:
Asset - Other financial assets
Liability - Other financial liabilities
300
As at 31-3-2017
Interest rate
exposure
Currency
exposure
Commodity
price
As at 31-3-2016
Interest rate
exposure
Currency
exposure
Commodity
price
As at 1-4-2015
Interest rate
exposure
Currency
exposure
236.80
286.77
105.25
46.76
123.06
–
116.91
–
–
–
–
–
29.03
(4.89)
3.34
1.39
(1.38)
–
(15.69)
–
–
–
–
–
128.74
115.43
27.62
22.67
0.58
328.98
–
–
–
–
–
–
(2.73)
–
0.69
0.06
205.96
316.29
–
–
–
–
–
57.24
53.41
0.52
167.74
(6.70)
–
22.49
10.23
–
–
–
Within
twelve
months
(v crore)
13.45
123.25
80.59
–
–
17.15
10.65
After
twelve
months
(v crore)
–
–
–
–
–
–
–
v crore
Commodity
price
6.55
3.54
Notes forming part of the Financial Statements (contd.)
NOTE [45]
(i) Carrying amounts of hedge instruments for which hedge accounting is followed (contd.)
Net Investment
Particulars
(i) Forward contracts
Current:
Asset - Other financial assets
Non-current:
Asset - Other financial assets
As at 31-3-2017
Interest rate
exposure
Currency
exposure
Commodity
price
As at 31-3-2016
Interest rate
exposure
Currency
exposure
Commodity
price
As at 1-4-2015
Interest rate
exposure
Currency
exposure
Commodity
price
v crore
1.47
63.75
–
–
–
–
–
15.22
–
–
–
–
29.17
–
–
–
–
–
(j)
Breakup of cash flow hedging reserve and cost of hedging reserve:
Particulars
Balance towards continuing hedges
Balance for which hedge accounting discontinued
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Cash flow
hedging
reserve
186.68
15.92
Cost of
hedging
reserve
(58.49)
–
Cash flow
hedging
reserve
4.46
(25.22)
Cost of
hedging
reserve
(15.07)
–
Cash flow
hedging
reserve
(21.99)
(77.18)
Cost of
hedging
reserve
(26.41)
–
v crore
(k) Reclassification of hedging reserve and cost of hedging reserve to Profit or Loss:
Particulars
Future cash flows are no longer expected to occur:
Sales, administration and other expenses
Hedged expected future cash flows affecting profit or loss:
Progress billing
Revenue from operations
Manufacturing, construction and operating expenses
Finance costs
Sales, administration and other expenses
(l) Movement of hedging reserve and cost of hedging reserve:
v crore
Hedge reserve
2016-17
2015-16
(9.69)
43.85
118.94
43.53
(133.47)
(401.21)
(46.84)
(19.59)
(14.68)
(141.36)
(528.20)
386.31
v crore
Hedging reserve
Opening balance
Changes in the spot element of the forward contracts which
is designated as hedging instrument for time period
related hedges
Changes in fair value of forward contracts designated as
hedging instruments
Changes in intrinsic value of option contracts
Changes in fair value of swaps
Amount reclassified to Profit or Loss
Amount included in non-financial assets/liabilities
Closing balance
2016-17
2015-16
Gross
(31.74)
Tax
10.98
Net of tax
(20.76)
Gross
(151.65)
Tax Net of tax
(99.17)
52.48
(209.15)
72.44
(136.71)
231.72
(80.12)
151.60
264.25
–
55.38
346.79
(115.56)
309.97
(91.52)
–
(19.18)
(120.11)
40.02
(107.37)
172.73
–
36.20
226.68
(75.54)
202.60
(22.52)
(0.13)
(15.22)
(93.71)
19.77
(31.74)
7.78
0.05
5.26
32.36
(6.83)
10.98
(14.74)
(0.08)
(9.96)
(61.35)
12.94
(20.76)
301
Notes forming part of the Financial Statements (contd.)
NOTE [45]
(l) Movement of hedging reserve and cost of hedging reserve (contd.)
v crore
Cost of hedging reserve
Opening balance
Changes in the forward element of the forward contracts
where changes in spot element of forward contract is
designated as hedging instrument for time period related
hedges
Amount reclassified to Profit or Loss
Closing balance
NOTE [46]
2016-17
2015-16
Gross
(23.04)
Tax
7.97
Net of tax
(15.07)
Gross
(40.38)
Tax Net of tax
(26.41)
13.97
(263.92)
197.51
(89.45)
91.34
(68.35)
30.96
(172.58)
129.16
(58.49)
(330.27)
347.61
(23.04)
114.37
(120.37)
7.97
(215.90)
227.24
(15.07)
Exceptional items for the year ended March 31, 2017 include the following:
(i) Gain of v 1947.89 crore on sale of the Company’s part stake in subsidiary companies viz. Larsen & Toubro Infotech Limited -
v 1191.70 crore and L&T Technology Services Limited - v 756.19 crore;
Loss on divestment of stake in L&T General Insurance Company Limited - v 92.84 crore;
(ii)
(iii) Loss on sale of company’s full stake in subsidiary company L&T Arabia LLC - v 11.08 crore to a wholly owned subsidiary company
and
(iv) Provision for impairment of investment in Infrastructure Development Projects Limited - v 950 crore.
Exceptional items for the year ended March 31, 2016 include the following:
(i) Gain on sale of the Company’s part stake in L&T Finance Holdings Limited - v 488.39 crore,
(ii) Gain on divestment of stake in L&T-Valdel Engineering Limited - v 36.59 crore, L&T-Gulf Private Limited – v 6.74 crore and L&T
Sapura Shipping Private Limited – v 9.18 crore to a wholly owned subsidiary company.
(iii) Gain of v 105.86 crore on sale of the Company’s stake in associate companies viz. Salzer Electronics Limited - v 57.46 crore and
L&T-Chiyoda Limited - v 48.40 crore;
(iv) Gain of v 48.52 crore on sale of the Company’s Foundry Business Unit and
(v) Provision for impairment of investment in L&T General Insurance Company Limited - v 135 crore.
NOTE [47]
Disclosure pursuant to Ind AS 108 “Operating Segment”
(a)
Information about reportable segment
Particulars
For the year ended 31-3-2017
Inter-segment
External
For the year ended 31-3-2016
Total
External Inter-segment
Total
v crore
Revenue
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Others
Elimination
Total
Segment result [Profit/(Loss) before interest and tax]
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Others
Total
46573.35
6938.79
3098.38
4058.19
5632.64
–
66301.35
321.07
–
233.39
223.15
483.17
(1260.78)
–
46894.42
6938.79
3331.77
4281.34
6115.81
(1260.78)
66301.35
4147.12
201.18
530.88
520.39
492.07
5891.64
45236.94
6425.48
2779.17
3874.66
5496.40
–
63812.65
409.50
1.33
156.32
308.69
410.24
(1286.08)
–
45646.44
6426.81
2935.49
4183.35
5906.64
(1286.08)
63812.65
4701.14
112.84
(98.48)
436.59
384.36
5536.45
302
Notes forming part of the Financial Statements (contd.)
NOTE [47(a)]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 “Operating Segment” (contd.)
For the year ended 31-3-2016
v crore
External Inter-segment
Total
(11.02)
5525.43
1116.01
6641.44
(1476.82)
530.72
5695.34
(1530.01)
273.97
4439.30
560.28
4999.58
v crore
As at
1-4-2015
23933.86
6126.57
2533.52
1410.52
3358.18
For the year ended 31-3-2017
Inter-segment
External
Total
(32.83)
5858.81
783.78
6642.59
(1318.03)
539.31
5863.87
(1675.20)
371.10
4559.77
893.97
5453.74
Particulars
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 exceptional items)
Profit from exceptional items
Profit after tax (after exceptional items)
Particulars
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Others
Total
As at
31-3-2017
43931.92
Segment assets
As at
31-3-2016
42284.29
6241.46
4868.03
3007.54
7940.91
7470.09
5017.80
2907.22
8011.28
As at
1-4-2015
35811.84
6158.33
5023.67
3005.70
8013.04
Segment liabilities
As at
31-3-2017
29858.24
As at
31-3-2016
27176.56
6362.49
3270.32
1530.93
3967.19
7382.07
3318.20
1338.19
3887.56
65989.86
65690.68
58012.58
44989.17
43102.58
37362.65
Unallocable corporate assets/liabilities
36742.92
34515.85
31924.50
11730.87
14968.64
14021.90
Inter-segment assets/liabilities
(535.96)
(585.58)
(591.30)
(535.96)
(585.58)
(591.30)
Total assets/liabilities
102196.82
99620.95
89345.78
56184.08
57485.64
50793.25
Particulars
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Others
Total
Unallocable corporate
Inter-segment
Total
v crore
Depreciation, amortisation,
impairment & obsolescence
included in segment expense
Other non-cash expenses
included in segment expense
Additions to non-current
assets
For the year
ended
31-3-2017
591.45
44.40
105.75
130.81
122.60
995.01
220.18
–
1215.19
For the year
ended
31-3-2016
430.54
58.31
110.84
123.10
151.06
873.85
123.55
–
997.40
For the year
ended
31-3-2017
19.81
1.99
2.49
3.83
4.45
32.57
29.20
–
61.77
For the year
ended
31-3-2016
22.09
3.23
3.31
4.87
5.61
39.11
21.23
–
60.34
For the year
ended
31-3-2017
564.53
100.17
92.98
165.38
75.04
998.10
567.07
(166.44)
1398.73
For the year
ended
31-3-2016
1158.73
450.04
231.09
297.63
131.22
2268.71
130.37
(514.43)
1884.65
Note: There is no impairment in non-financial assets of the segments. Unallocable corporate expenses include impairment loss of
v 103 crore for the year ended March 31, 2017 (previous year: v Nil).
303
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 “Operating Segment” (contd.)
(b) Geographical information
Particulars
Particulars
India (i)
Foreign countries:
Kingdom of Saudi Arabia
United Arab Emirates
Qatar
Bangladesh
Other countries
Total foreign countries (ii)
Total (i)+(ii)
India (i)
Foreign countries:
Qatar
Other countries
Total foreign countries (ii)
Total (i)+(ii)
v crore
Revenue
For the year
ended
31-3-2017
51738.65
For the year
ended
31-3-2016
50117.59
2639.59
2897.95
4655.59
1317.00
3052.57
14562.70
66301.35
As at
31-3-2017
9185.28
Non-current assets
As at
31-3-2016
9227.49
235.85
349.91
585.76
9771.04
305.93
380.78
686.71
9914.20
2178.17
1916.57
4056.36
1440.76
4103.20
13695.06
63812.65
v crore
As at
1-4-2015
9318.48
142.67
189.38
332.05
9650.53
(c) Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed
ten percent of the Company’s total revenue.
(d) The Company’s reportable segments are organised based on the nature of products and services offered by these segments.
(e) Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:
(i)
Basis of identifying operating segments:
Operating segments are identified as those components of the Company (a) that engage in business activities to earn
revenues and incur expenses (including transactions with any of the Company’s other components; (b) whose operating
results are regularly reviewed by the Company’s Executive Management Committee (EMC) to make decisions about resource
allocation and performance assessment and (c) for which discrete financial information is available.
The Company has four reportable segments as described under “Segment Composition” below. The nature of products and
services offered by these businesses are different and are managed separately given the different sets of technology and
competency requirements.
(ii) Reportable segments:
An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute
amount of result or assets exceed 10% or more of the combined total of all the operating segments.
(iii) Segment profit:
Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal
management reports that are reviewed by the Company’s EMC.
304
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 “Operating Segment” (contd.)
(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.
Heavy Engineering segment comprises manufacture and supply of custom designed, engineered critical equipment
and 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.
• Others segment includes metallurgical & material handling systems, realty, shipbuilding, 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 (upto the date of sale). None of the businesses
reported as part of others segment meet any of the quantitative thresholds for determining reportable segments in the
year ended March 31, 2017, the year ended March 31, 2016 or as at April 1, 2015.
NOTE [48]
(a) Disclosures pursuant to Ind AS 11 “Construction Contracts”:
Sr.
no.
i)
ii)
iii)
iv)
Contract revenue recognised for the financial year [Note 31]
58498.42
55522.22
Particulars
2016-17
2015-16
v crore
1-4-2015
Not
applicable
Aggregate amount of contract costs incurred and recognised profits
(less recognised losses) as at 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
end of the financial year
Retention amounts by customers for contracts in progress as at end of the
financial year
217253.39*
210231.40*
184245.08*
12205.69
11791.52
10431.14
6981.26
6506.01
5767.20
*includes provision for foreseeable loss: v 121.66 crore (2015-16: v 127.83 crore and 1-4-2015: v 118.36 crore)
(b) The Company has revised certain estimates used in determining the cost of completion of projects, as a part of periodic review of
estimates. As a result, the revenue and profit before tax for the year increased by v 121.46 crore (previous year: v 395.73 crore).
(c) Disclosures pursuant to Guidance Note on Accounting for Real Estate Transactions issued by the Institute of Chartered Accountants
of India:
Sr.
no.
i)
ii)
iii)
iv)
v)
Particulars
2016-17
2015-16
Amount of project revenue recognised for the financial year [Note 31]
403.18
843.60
v crore
1-4-2015
Not
applicable
Aaggregate amount of costs incurred and profits recognised (less
recognised losses) as at the end of the financial year
Amount of advances received
Amount of work-in-progress and the value of inventories [Note 9]
Excess of revenue recognised over actual bills raised (unbilled revenue)
[Note 16]
2332.26
2228.80
1464.99
19.16
281.83
15.73
304.82
31.40
201.11
71.28
10.24
48.71
305
2016-17
v crore
2015-16
Notes forming part of the Financial Statements (contd.)
NOTE [49]
Disclosure pursuant to Ind AS 12 “Income Taxes”
(a) Major components of tax expense/(income):
Sr.
no.
(a)
Profit or Loss section:
(i) Current income tax:
Current income tax expense
Tax expense of prior periods
(ii) Deferred tax:
Particulars
Tax expense on origination and reversal of temporary differences
Effect of previously unrecognised tax losses used to reduce tax expense
(b)
Income tax expense reported in Profit or Loss [(i)+(ii)]
Other Comprehensive Income (OCI) section:
(i)
Items not to be reclassified to profit or loss in subsequent periods:
Current tax expense/(income):
On remeasurement of defined benefit plans
(ii)
Items to be reclassified to profit or loss in subsequent periods:
(A) Current tax expense/(income):
Forward covers settled, retained in hedging reserve
(B) Deferred tax expense/(income):
Net gain/(loss) on cost of hedging reserve
On MTM of cash flow hedges
On gain/(loss) on fair value of debt securities
On foreign currency translation of joint operations
(c)
Income tax expense reported in Other Comprehensive Income [(i)+(ii)]
Retained earnings:
Current income tax
Deferred tax
Income tax expense reported in retained earnings
1671.58
3.62
1675.20
(349.24)
(21.86)
(371.10)
1304.10
(4.25)
(4.25)
(14.47)
(14.47)
(22.99)
132.82
1.08
(2.29)
108.62
89.90
(133.40)
133.40
–
(b)
Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate applicable in India:
Sr.
no.
(a)
(b)
(c)
(d)
Particulars
Profit before tax
Corporate tax rate as per Income Tax Act, 1961
Tax on Accounting profit
(i)
Tax on income exempt from tax:
(A) Dividend income
(B) Long term capital gains exempt from tax
(C)
Interest on tax free bonds
(ii) Tax on expenses not tax deductible:
(A) CSR expenses
(B) Expenses in relation to exempt income
(C) Tax on employee perquisites borne by the Company
(iii) Weighted deduction on R&D expenditure and deduction u/s 80IA
(iv)
Tax effect on impairment losses recognised and on which deferred tax asset
is not recognised
Effect of previously unrecognised tax losses used to reduce tax expense
Tax effect of losses of current year on which no deferred tax benefit is
recognised
(v)
(vi)
(vii) Tax effect on various other items
Total effect of tax adjustments [(i) to (vii)]
Tax expense recognised during the year
Effective tax Rate
(e)
(f)
306
2016-17
6757.84
34.61%
2338.75
(368.61)
(675.59)
(10.58)
34.87
19.83
3.28
(368.93)
328.78
(21.86)
42.99
(18.83)
(1034.65)
1304.10
19.30%
(c)=(a)*(b)
(e)=(c)-(d)
(f)=(e)/(a)
1515.58
14.43
1530.01
(273.97)
–
(273.97)
1256.04
(4.47)
(4.47)
26.54
26.54
6.00
14.96
(1.29)
2.19
21.86
43.93
–
–
–
v crore
2015-16
6255.62
34.61%
2164.94
(388.08)
(253.24)
(11.76)
41.70
50.24
2.93
(269.36)
46.72
–
5.94
(133.99)
(908.90)
1256.04
20.08%
Notes forming part of the Financial Statements (contd.)
NOTE [49]
Disclosure pursuant to Ind AS 12 “Income Taxes” (contd.)
(c)
i.
Unused tax losses for which no deferred tax asset is recognised in Balance Sheet
Particulars
Tax losses (capital loss on which no tax
asset is created)
Assessment Year 2017-18
Assessment Year 2016-17
Total
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Base
amount
(v crore)
Deferred
tax
(v crore)
Expiry date
(Assessment
year)
Base
amount
(v crore)
Deferred
tax
(v crore)
Expiry date
(Assessment
year)
Base
amount
(v crore)
Deferred
tax
(v crore)
Expiry date
(Assessment
year)
1336.82
1149.58
2486.40
247.71
265.23
512.94
31-3-2026
31-3-2025
–
–
1149.58
1149.58
–
–
265.23 31-3-2025
–
265.23
–
–
–
–
–
–
–
–
–
ii. Unrecognised deductible temporary differences for which no deferred tax asset is recognised in Balance Sheet
Sr.
no.
(a)
Particulars
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Base amount
Deferred tax Base amount Deferred tax Base amount Deferred tax
v crore
Deductible temporary differences towards provision
for diminution in value of investments on which
DTA not created
1019.47
243.23
204.47
55.19
46.04
15.65
(b)
Temporary differences arising out of revaluation
of tax base of assets (on account of indexation
benefit)
Total
4736.69
5756.16
1092.85
1336.08
3706.06
3910.53
855.06
910.25
3832.28
3878.32
868.39
884.04
(d) Components of deferred tax (assets) and liabilities recognised in Balance Sheet and Statement of Profit or Loss:
Sr.
no.
(a)
(b)
(c)
(d)
(e)
(f)
Particulars
Disputed statutory liabilities claimed on payment
basis u/s 43B of the Income Tax Act, 1961
Items disallowed u/s 43B of the Income Tax Act,
1961
Balance Sheet
As at
31-3-2017
150.54
As at
31-3-2016
113.65
As at
1-4-2015
100.48
v crore
Statement of Profit or Loss
2016-17
2015-16
36.89
13.17
(213.79)
(197.34)
(173.52)
(16.45)
(23.82)
Provision for doubtful debts and advances
Difference between book depreciation and tax
(740.19)
510.22
(616.97)
587.29
(403.72)
605.17
(112.03)
79.59
(123.21)
(77.07)
–
(191.26)
(371.10)
(213.26)
(17.89)
–
(32.17)
(273.97)
18.80
(10.80)
(91.20)
48.43
(285.22)
(156.14)
95.97
depreciation
Gain/(loss) on derivative transactions
Other temporary differences
Deferred tax expense/(income)
Net deferred tax (assets)/liabilities
(e) Reconciliation of deferred tax (assets)/liabilities:
Sr.
no.
(a)
(b)
Particulars
Opening balance as at April 1
Tax (income)/expense during the period recognised in:
(i)
statement of Profit and Loss in Profit or Loss section
(ii)
statement of Profit and Loss under OCI section
(iii)
retained earnings
Closing balance as at March 31
2016-17
v crore
2015-16
(156.14)
95.97
(371.10)
108.62
133.40
(273.97)
21.86
–
(285.22)
(156.14)
307
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits”:
(I) Defined contribution plans - Note 1(k)(ii)(A): Amount of v 118.34 crore (previous year: v 102.98 crore) is recognised as an expense.
(II) Defined benefit plans - Note 1(k)(ii)(B):
(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
Add: Amount not recognised as an asset (limit in para 64(b))
Gratuity Plan
Post-retirement medical benefit plan
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
v crore
415.70
422.36
445.79
71.94
517.73
439.61
–
52.70
468.40
385.85
–
–
185.64
185.64
–
–
–
155.58
155.58
–
–
–
148.90
148.90
–
–
185.64
155.58
148.90
35.85
458.21
364.71
2.08
95.58
Amount to be recognised as liability or (asset)
78.12
82.55
B) Amounts reflected in Balance Sheet
Liabilities
Assets
Net liability/(asset)
Net liability/(asset) - current
Net liability/(asset) - non-current
Particulars
A) Present value of defined benefit obligation
– Wholly funded
– Wholly unfunded
Less: Fair value of plan assets
78.12
82.55
95.58
185.64
155.58
148.90
–
78.12
78.12
–
–
82.55
82.55
–
–
95.58
95.58
–
–
–
185.64
155.58
148.90
5.25
11.16
10.04
–
180.39
144.42
138.86
Company pension plan
Trust-managed provident fund plan
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
v crore
–
312.75
312.75
–
–
283.25
283.25
–
–
2146.56
1986.97
1856.97
215.64
–
9.87
27.78
215.64
2146.56
1996.84
1884.75
–
2156.30
1990.14
1857.15
Amount to be recognised as liability or (asset)
312.75
283.25
215.64
(9.74)
6.70
27.60
B) Amounts reflected in Balance Sheet
Liabilities
Assets
Net liability/(asset)
Net liability/(asset) - current #
Net liability/(asset) - non-current
312.75
283.25
215.64
23.33
22.29
27.60
–
312.75
22.46
290.29
–
–
283.25
215.64
56.17
13.26
227.08
202.38
–
23.33
23.33
–
–
22.29
22.29
–
–
27.60
22.74
4.86
308
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
(b) The amounts recognised in the Statement of Profit and Loss are as follows:
Particulars
Gratuity Plan
Post-retirement medical
benefit plan
Company pension plan
v crore
Trust-managed provident
fund plan
1 Current service cost
Interest cost
2
Interest income on plan assets
3
4 Actuarial losses/(gains) - others
5
Actuarial losses/(gains) - difference between
actual return on plan assets and interest
Actuarial gain/(loss) not recognised in Books
income
6 Past service cost
7
8 Translation adjustments
9
Amount capitalised out of the above/
recovered from S&A
Total (1 to 9)
i Amount included in “employee benefits
expense”
ii Amount included as part of “finance cost”
iii Amount included as part of “other
comprehensive income”
Total (i + ii + iii)
Actual return on plan assets
2016-17
67.21
27.92
(27.56)
19.37
2015-16
57.90
30.03
(34.51)
1.37
2016-17
10.83
11.68
–
15.69
2015-16
7.04
11.27
–
(5.09)
2016-17
2.47
21.14
–
23.63
2015-16
3.24
16.30
–
14.14
2016-17
66.55
168.78
(168.78)
(9.87)
2015-16
72.66
154.87
(154.87)
(17.91)
(46.42)
–
–
0.19
(0.10)
40.61
67.30
0.36
(27.05)
40.61
73.98
2.49
–
–
–
(0.20)
57.08
57.70
(4.48)
3.86
57.08
31.95
–
–
–
–
(0.01)
38.19
10.82
11.68
15.69
38.19
–
–
0.97
–
–
(0.01)
14.18
8.00
11.27
(5.09)
14.18
–
–
–
–
–
–
47.24
2.47
21.14
23.63
47.24
–
–
49.58
–
–
–
83.26
52.82
16.30
14.14
83.26
–
(10.02)
–
19.89
–
–
66.55
66.55
–
–
66.55
178.80
(10.55)
–
28.46
–
–
72.66
72.66
–
–
72.66
165.42
(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) Employee
ii) Transfer-in/(out)
Add/(less): Actuarial losses/(gains)
i) Actuarial (gains)/losses arising
from changes in financial
assumptions
i) Actuarial (gains)/losses arising
from changes in experience
adjustments
Less: Benefit paid
Add: Past service cost
Add/(less): Translation adjustments
Closing balance of the present value of defined
Gratuity Plan
As at
31-3-2017
As at
31-3-2016
Post-retirement medical
benefit plan
As at
31-3-2017
As at
31-3-2016
Company pension plan
As at
31-3-2017
As at
31-3-2016
v crore
Trust-managed provident
fund plan
As at
31-3-2017
As at
31-3-2016
468.40
67.21
27.92
458.21
57.90
30.03
155.58
10.83
11.68
148.90
7.04
11.27
283.25
2.47
21.14
215.64
3.24
16.30
1996.84
66.55
168.78
1884.75
72.66
154.87
–
–
–
–
–
–
–
–
–
–
–
–
171.66
3.64
174.70
5.61
19.28
1.19
17.26
1.05
16.80
1.01
(9.87)
(17.91)
0.09
(64.99)
–
(0.18)
0.18
(79.29)
–
0.18
(1.57)
(8.14)
–
–
(6.14)
(7.51)
0.97
–
6.83
(17.74)
–
–
13.13
(15.65)
49.58
–
–
(251.04)
–
–
–
(277.84)
–
–
benefit obligation
517.73
468.40
185.64
155.58
312.75
283.25
2146.56
1996.84
309
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
(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: Interest income on plan assets *
Add/(Less): Actuarial gains/(losses)
Difference between actual return on plan assets and interest income
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
As at
31-3-2017
As at
31-3-2016
v crore
Trust-managed provident
fund plan
As at
31-3-2017
As at
31-3-2016
385.85
27.56
46.42
44.77
–
–
(64.99)
439.61
364.71
1990.14
1857.15
34.51
168.78
154.87
(2.49)
68.41
–
–
10.02
64.75
3.64
10.55
66.22
5.61
170.01
173.58
(79.29)
(251.04)
(277.84)
385.85
2156.30
1990.14
* Basis used to determine interest income on plan assets:
The Trust formed by the Company manages the investments of provident funds and gratuity fund. Interest income on plan
assets is determined by multiplying the fair value of the plan assets by the discount rate stated in (g)(i) below both determined
at the start of the annual reporting period.
The Company expects to fund v 6.18 crore (previous year: v 29.85 crore) towards its gratuity plan and v 73.21 crore (previous
year: v 79.93 crore) towards its trust-managed provident fund plan during the year 2017-18.
# Employer’s and employees’ contribution due towards Provident Fund.
(e) The fair value of major categories of plan assets are as follows:
Particulars
Cash and cash equivalents
Equity instruments
Debt instruments - Corporate bonds
Debt instruments - Central
government bonds
Debt instruments - State
government bonds
Debt instruments - PSU bonds
Mutual funds – Equity
Mutual funds – Debt
Mutual funds – Others
Fixed deposits
Special deposit scheme
Advances taken
Other (payables)/receivables
Closing balance of the plan assets
As at 31-3-2017
Unquoted
2.41
–
150.47
Quoted
–
14.89
66.30
Total
2.41
14.89
216.77
Gratuity plan
As at 31-3-2016
Unquoted
0.41
–
113.42
Quoted
–
6.71
71.88
Total
0.41
6.71
185.30
As at 1-4-2015
Unquoted
0.78
–
114.81
Quoted
–
7.13
21.63
Total
0.78
7.13
136.44
v crore
135.01
–
135.01
128.16
–
128.16
145.21
–
145.21
123.17
–
–
–
–
–
–
–
–
339.37
–
70.68
63.87
0.50
0.10
1.15
1.46
(175.00)
(15.40)
100.24
123.17
70.68
63.87
0.50
0.10
1.15
1.46
(175.00)
(15.40)
439.61
–
95.44
76.70
–
54.55
–
0.50
–
–
–
1.20
–
–
1.46
– (175.00)
10.42
–
83.66
302.19
95.44
76.70
54.55
0.50
–
1.20
1.46
(175.00)
10.42
385.85
–
53.49
36.08
–
83.35
–
0.50
–
–
–
3.05
–
–
1.46
– (115.00)
12.22
–
137.25
227.46
53.49
36.08
83.35
0.50
–
3.05
1.46
(115.00)
12.22
364.71
310
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
Particulars
Cash and cash equivalents
Debt instruments - Corporate bonds
Debt instruments - Central
government bonds
Debt instruments - State
government bonds
Debt instruments - PSU bonds
Mutual funds – Equity
Mutual funds – Debt
Special deposit scheme
Closing balance of the plan assets
As at 31-3-2017
Unquoted
8.77
83.05
Quoted
–
225.16
Total
8.77
308.21
Trust-managed provident fund plan
As at 31-3-2016
Unquoted
6.95
81.23
Quoted
–
93.47
Total
6.95
174.70
v crore
As at 1-4-2015
Unquoted
8.98
97.07
Quoted
–
40.72
Total
8.98
137.79
433.43
–
433.43
494.73
–
494.73
451.10
–
451.10
451.64
252.00
7.37
–
–
1369.60
–
446.47
45.88
2.70
199.83
786.70
451.64
698.47
53.25
2.70
199.83
2156.30
311.63
251.92
–
–
–
1151.75
311.63
–
771.42
519.50
14.02
14.02
12.14
12.14
204.55
204.55
838.39 1990.14
276.50
221.92
–
–
–
990.24
276.50
–
773.83
551.91
–
–
1.30
1.30
207.65
207.65
866.91 1857.15
(f)
The average duration of the defined benefit plan obligations at the end of the reporting period is as follows:
Plans
As at 31-3-2017 As at 31-3-2016
As at 1-4-2015
1. Gratuity plan
2. Company pension plan
3.
Post-retirement medical benefit plan
7.53
8.02
16.65
7.19
8.04
15.85
7.06
9.60
18.55
(g) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
Particulars
As at 31-3-2017 As at 31-3-2016
As at 1-4-2015
i)
Discount rate:
(a) Gratuity plan
(b) Company pension plan
(c) Post-retirement medical benefit plan
ii) Annual increase in healthcare costs (see note below)
iii) Salary Growth rate:
(a) Gratuity plan
(b) Company pension plan
iv) Attrition Rate:
7.19%
7.19%
7.19%
5.00%
5.00%
6.00%
7.79%
7.79%
7.79%
5.00%
5.00%
6.00%
7.83%
7.83%
7.83%
5.00%
5.00%
6.00%
(a) For post-retirement medical benefit plan and 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.
v)
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.
vi) The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest
income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is
recognised immediately in the statement of Profit and Loss.
311
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
vii) The obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits. At
present, healthcare cost, as indicated in the principal actuarial assumption given above, has been assumed to increase at
5.00% p.a.
viii) (A) One percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of gratuity plan:
Particulars
Impact of change in salary growth rate
Impact of change in discount rate
Effect of 1% increase
Effect of 1% decrease
2016-17
2015-16
2016-17
2015-16
36.73
(31.16)
32.84
(27.81)
(32.01)
36.29
(28.77)
32.22
v crore
(B) One percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of company pension plan:
Particulars
Effect of 1% increase
Effect of 1% decrease
2016-17
2015-16
2016-17
2015-16
v crore
Impact of change in discount rate
(25.62)
(21.60)
26.15
25.04
(C) One percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of post-retirement medical benefit plan:
Particulars
Impact of change in health care cost
Impact of change in discount rate
(h) Characteristics of defined benefit plans and associated risks:
1. Gratuity plan:
v crore
Effect of 1% increase
Effect of 1% decrease
2016-17
2015-16
2016-17
2015-16
22.91
(27.42)
18.19
(21.97)
(18.36)
35.33
(14.66)
28.10
The Company operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent
to fifteen days last salary drawn for each completed year of service. The same is payable on termination of service
or retirement whichever is earlier. The benefit vests after five years of continuous service. The Company’s scheme is
more favourable as compared to the obligation under Payment of Gratuity Act, 1972. The defined benefit plan for
gratuity of the Company is administered by separate gratuity funds that are legally separate from the Company. The
trustees nominated by the Company are responsible for the administration of the plan. There are no minimum funding
requirements of these plans. The funding of these plans are based on gratuity funds actuarial measurement framework
set out in the funding policies of the plan. These actuarial measurements are similar compared to the assumptions set
out in (g) supra. A small part of the gratuity plan, which is not material, is unfunded and managed by the Company.
Employees do not contribute to any of these plans.
2.
Post-retirement medical care plan:
The Post-retirement medical care plan provides for reimbursement of health care costs to certain categories of employees
post their retirement. The reimbursement is subject to an overall ceiling sanctioned based on cadre of the employee at
the time of retirement. The plan is unfunded. Employees do not contribute to the plan.
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. The plan is unfunded. Employees do not contribute to the plan.
312
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
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 mandates contribution by employer at a
fixed percentage of employee’s salary. Employees also contribute to the plan at a fixed percentage of their salary as
a minimum contribution and additional sums at their discretion. The plan guarantees interest at the rate notified by
Employees’ Provident Fund Organisation. The contribution by employer and employee together with interest are payable
at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on
rendering of service.
The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest
income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is
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.
All the above defined benefit plans expose the Company to general Actuarial risks such as Interest rate risk and market
(investment) risk.
NOTE [51]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “ Related Party Disclosures”.
(a) List of related parties over which control exist and status of transactions entered during the year:
Sr.
no.
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
Name of the related party
Nature of relationship
L&T Cutting Tools Limited
Bhilai Power Supply Company 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
Kesun Iron and Steel Company Private Limited
L&T Infocity Limited**
L&T Hitech City Limited**
Hyderabad International Trade Expositions Limited**
EWAC Alloys 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
L&T Power Limited
CSJ Infrastructure Private Limited*
L&T Cassidian Limited
Consumer Financial Services Limited %%%
L&T General Insurance Company Limited***
L&T Aviation Services Private Limited
Larsen & Toubro Infotech Limited
Wholly owned 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
Subsidiary
Subsidiary of L&T Infocity Limited
Subsidiary of L&T Infocity Limited
Wholly owned subsidiary
Subsidiary
Wholly owned 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 Realty Limited
Subsidiary of L&T Realty Limited
Subsidiary
Wholly owned subsidiary of L&T Realty Limited
Subsidiary
Wholly owned subsidiary of L&T Housing Finance Limited
Wholly owned subsidiary
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
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
313
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(a) List of related parties over which control exist and status of transactions entered during the year (contd.)
Name of the related party
Sr.
no.
Nature of relationship
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
GDA Technologies Limited @@@
Wholly owned subsidiary of Larsen & Toubro Infotech
Limited
L&T Finance Holdings Limited
Subsidiary
L&T Housing Finance Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Subsidiary of L&T Infrastructure Finance Company Limited
L&T Infra Investment Partners #
L&T Finance Limited (formerly known as Family Credit Limited) Wholly owned subsidiary of L&T Finance Holdings Limited
L&T Finance Limited ~
L&T Capital Markets 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 Debt Fund Limited
L&T Infra Investment Partners Advisory Private Limited
Wholly owned subsidiary
Wholly owned 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
L&T Infra Investment Partners Trustee Private Limited
Wholly owned subsidiary of L&T Infrastructure Finance
Company Limited
L&T Financial Consultants Limited (formerly known as L&T
Wholly owned subsidiary of L&T Finance Holdings Limited
Vrindavan Properties Limited)
L&T Access Distribution Services Limited
Mudit Cement Private Limited
L&T Capital Company Limited
L&T Trustee Company Private Limited
L&T Power Development Limited
L&T Uttaranchal Hydropower Limited
Wholly owned subsidiary of L&T Finance Holdings Limited
Wholly owned subsidiary of L&T Financial Consultants
Limited (formerly known as L&T Vrindavan Properties
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
L&T Arunachal Hydropower Limited
Wholly owned subsidiary of L&T Power Development
Limited
L&T Himachal Hydropower Limited
Wholly owned subsidiary of L&T Power Development
Limited
Nabha Power Limited
Wholly owned subsidiary of L&T Power Development
L&T Metro Rail (Hyderabad) Limited
L&T Technology Services Limited
L&T Construction Equipment Limited
L&T Infrastructure Engineering Limited
L&T Thales Technology Services Private Limited
L&T Hydrocarbon Engineering Limited
Sahibganj Ganges Bridge-Company Private Limited^
Seawoods Retail Private Limited^^
Seawoods Realty Private Limited^^^
Marine Infrastructure Developer Private Limited
AugmentIQ Data Sciences Private Limited ##
Limited
Wholly owned subsidiary
Subsidiary
Wholly owned subsidiary
Wholly owned subsidiary
Subsidiary of L&T Technology Services Limited
Wholly owned subsidiary
Wholly owned subsidiary of L&T Capital Limited
Wholly owned subsidiary
Wholly owned subsidiary
Subsidiary
Subsidiary of L&T Infotech Limited
314
Transaction entered
during the year
(Yes/No)
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(a) List of related parties over which control exist and status of transactions entered during the year (contd.)
Name of the related party
Sr.
no.
Nature of relationship
Transaction entered
during the year
(Yes/No)
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
L&T Infra Contractors Private Limited ###
Wholly owned subsidiary of L&T Capital Limited
Larsen & Toubro LLC
Larsen & Toubro Infotech, GmbH
Subsidiary
Wholly owned subsidiary of Larsen & Toubro Infotech
Limited
Larsen & Toubro Infotech Canada Limited
Wholly owned subsidiary of Larsen & Toubro Infotech
Limited
Larsen & Toubro Infotech LLC
Wholly owned subsidiary of Larsen & Toubro Infotech
Limited
L&T Infotech Financial Services Technologies Inc.
Wholly owned subsidiary of Larsen & Toubro Infotech
Limited
Larsen & Toubro Infotech South Africa (PTY) Limited
Subsidiary of Larsen & Toubro Infotech Limited
L&T Information Technology Services (Shanghai) Co. Ltd.
Subsidiary
L&T Realty FZE
Wholly owned subsidiary of L&T Realty Limited
Larsen & Toubro International FZE
Wholly owned subsidiary of L&T Global Holdings Limited
Larsen & Toubro Hydrocarbon International Limited LLC
Subsidiary
Thalest Limited
Wholly owned subsidiary of Larsen & Toubro International
Servowatch Systems Limited
Larsen & Toubro (Oman) LLC
L&T Modular Fabrication Yard LLC
Larsen & Toubro (East Asia) SDN. BHD
Larsen & Toubro Qatar LLC
FZE
Wholly owned subsidiary of Thalest Limited
Subsidiary of Larsen & Toubro International FZE
Subsidiary of Larsen & Toubro International FZE
Subsidiary
Subsidiary of Larsen & Toubro International FZE
L&T Overseas Projects Nigeria Limited
Wholly owned subsidiary of Larsen & Toubro International
FZE
PT Larsen & Toubro Hydrocarbon Engineering Indonesia
Subsidiary of Larsen & Toubro International FZE
L&T Electricals & Automation Saudi Arabia Company Limited
Subsidiary of Larsen & Toubro International FZE
LLC
Larsen & Toubro Kuwait Construction General Contracting
Subsidiary of Larsen & Toubro International FZE
Company WLL
Larsen & Toubro Readymix & Asphalt Concrete Industries
Subsidiary of Larsen & Toubro International FZE
LLC
Larsen & Toubro (Saudi Arabia) LLC
Larsen Toubro Arabia LLC
Larsen & Toubro ATCO Saudia LLC
Subsidiary
Subsidiary
Subsidiary of Larsen & Toubro International FZE
Tamco Switchgear (Malaysia) SDN. BHD
Wholly owned subsidiary of Larsen & Toubro International
FZE
Henikwon Corporation SDN. BHD
Wholly owned subsidiary of Tamco Switchgear (Malaysia)
SDN. BHD
Larsen & Toubro Consultoria E Projeto Ltda @
Subsidiary of Larsen & Toubro International FZE
Larsen & Toubro (Qingdao) Rubber Machinery Company
Wholly owned subsidiary of Larsen & Toubro International
Limited @@
FZE
Tamco Electrical Industries Australia Pty Ltd.
Wholly owned subsidiary of Larsen & Toubro International
FZE
PT Tamco Indonesia
Subsidiary of Larsen & Toubro International FZE
Larsen & Toubro Heavy Engineering LLC
Subsidiary of Larsen & Toubro International FZE
No
No
Yes
No
No
No
No
No
No
Yes
No
No
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
Yes
Yes
315
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(a) List of related parties over which control exist and status of transactions entered during the year (contd.)
Name of the related party
Nature of relationship
Transaction entered
during the year
(Yes/No)
Yes
No
Yes
Yes
No
Yes
No
Yes
Yes
Yes
Sr.
no.
96
97
98
99
L&T Electrical & Automation FZE
Wholly owned subsidiary of Larsen & Toubro International
FZE
Kana Controls General Trading & Contracting Company WLL
Subsidiary of L&T Electrical & Automation FZE
Larsen & Toubro T&D SA (Proprietary) Limited
Subsidiary of Larsen & Toubro International FZE
L&T Technology Services LLC
Wholly owned subsidiary of L&T Technology Services
Limited
100
L&T Infotech Austria GmbH
Wholly owned subsidiary of Larsen & Toubro Infotech
L&T Global Holdings Limited
Limited
Wholly owned subsidiary
L&T Information Technology Spain SL
Wholly owned subsidiary of Larsen & Toubro Infotech
Limited
L&T Natural Resource Limited %%%%
Wholly owned subsidiary of L&T Capital Company Limited
L&T Solar Limited %%%%
Wholly owned subsidiary of L&T Capital Company Limited
101
102
103
104
Wholly owned subsidiary of L&T Capital Company Limited
L&T Powergen Limited %%%%
105
* The Company through its subsidiary has sold its stake on November 16, 2015
** The Company through its subsidiary has sold its stake on March 31, 2016
*** The Company has sold its stake on September 9, 2016
@ The Company is dissolved on November 6, 2015
@@ The Company is dissolved on June 9, 2015
@@@ The Company is merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2016
~ The Company is merged with Family Credit Limited (subsequently renamed as L&T Finance Limited) w.e.f. April 1, 2016
^ The Company is incorporated on July 14, 2016
^^ The Company is incorporated on September 2, 2016
^^^ The Company is incorporated on October 23, 2016
# The Fund is incorporated on August 22, 2013
## The Company through its subsidiary acquired stake on November 30, 2016
### The Company is incorporated on March 17, 2017
% The Company through its subsidiary has sold its stake on March 20, 2017
%% The Company is merged with L&T Hydrocarbon Engineering Limited w.e.f. April 1, 2016
%%% The Company is merged with L&T Housing Finance Limited w.e.f. April 1, 2015
%%%% Companies merged with L&T Capital Company Limited with effect from April 1, 2015
(b)
(i) Names of associates with whom transactions were carried out during the year:
Sr.
no.
1
2
3
4
5
Associate companies
L&T-Chiyoda Limited
Feedback Infra Private Limited
Salzer Electronics Limited*
JSK Electricals Private Limited #
Magtorq Private Limited
* The Company has sold its stake in July and August, 2015
# The Company has sold its stake on March 29, 2016
316
Notes forming part of the Financial Statements (contd.)
NOTE [51] (contd.)
(ii) Names of joint ventures with whom transactions were carried out during the year:
Sr.
no.
1.
3.
5.
7.
9.
Joint ventures
Larsen & Toubro Electromech LLC
L&T IDPL Trustee Manager Pte. Ltd.
L&T BPP Tollway Limited
L&T Deccan Tollways Limited
Kudgi Transmission Limited
11.
L&T Infrastructure Development Projects Limited
Sr.
no.
2.
4.
6.
8.
10.
12.
Joint ventures
L&T-Sargent & Lundy Limited
L&T Chennai–Tada Tollway Limited
L&T Rajkot-Vadinar Tollway Limited
L&T Samakhiali Gandhidham Tollway Limited
L&T Sambalpur-Rourkela Tollway limited
Panipat Elevated Corridor Limited (formerly known
as L&T Panipat Elevated Corridor Limited)
13.
Krishnagiri Thopur Toll Road Limited (formerly known
14. Western Andhra Tollways Limited (formerly known as
as L&T Krishnagiri Thopur Toll Road Limited)
L&T Western Andhra Tollways Limited)
15.
Vadodara Bharuch Tollway Limited (formerly known as
16.
L&T Transportation Infrastructure Limited
17.
19.
L&T Vadodara Bharuch Tollway Limited)
L&T Western India Tollbridge Limited
Ahmedabad-Maliya Tollway Limited (formerly known
as L&T Ahmedabad-Maliya Tollway Limited)
18.
20.
L&T Port Kachchigarh Limited
L&T Halol-Shamlaji Tollway Limited
21.
L&T Krishnagiri Walajahpet Tollway Limited
22.
Devihalli Hassan Tollway Limited (formerly known as
23.
25.
27.
29.
L&T Howden Private Limited
L&T Sapura Offshore Private Limited
L&T-MHPS Boilers Private Limited
Raykal Aluminium Company Private Limited
L&T Devihalli Hassan Tollway Limited)
L&T Sapura Shipping Private Limited
L&T-Gulf Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Special Steels and Heavy Forgings Private
24.
26.
28.
30.
Limited
31.
PNG Tollway Limited
32.
L&T Kobelco Machinery Private Limited
(iii) Name of post-employment benefit plans with whom transactions were carried out during the year:
Sr.
no.
1.
2.
3.
4.
5.
Sr.
no.
1.
2.
Provident Fund Trust
The Larsen & Toubro Officers & Supervisory Staff Provident Fund
The Larsen & Toubro Limited Provident Fund of 1952
The Larsen & Toubro Limited Provident Fund
L&T Kansbahal Officers & Supervisory Provident Fund
L&T Kansbahal Staff & Workmen Provident Fund
Gratuity Trust
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
(iv) Name of key management personnel and their relatives with whom transactions were carried out during the year:
Sr.
no.
1.
3.
5.
7.
Executive Director
Mr. A. M. Naik (Group Executive Chairman)
Mr. M. V. Kotwal (Whole-time Director)**
Mr. R. Shankar Raman (CFO & Whole-time Director)
Mr. D. K. Sen (Whole-time Director) #
Sr.
no.
2.
4.
6.
8.
Executive Director
Mr. K. Venkataramanan (CEO & Managing Director) *
Mrs. Jyothi Venkataramanan (wife)
Mr. S. N. Subrahmanyan (Whole-time Director)
Mr. Shailendra Roy (Whole-time Director)
Mr. M. V. Satish (Whole-time Director) ##
317
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(iii) Name of key management personnel and their relatives with whom transactions were carried out during the year (contd.)
Sr.
no.
1.
3.
5.
7.
9.
Independent/Non-executive Director
Mr. Subodh Bhargava
Mr. Sushobhan Sarker
Mr. M. Damodaran
Ms. Naina Lal Kidwai $$$
Ms. Sunita Sharma ***
11. Mr. Ajay Shankar $
13. Mr. Sanjeev Aga @
15. Mr. Adil Zainulbhai
*Retired on September 30, 2015
# Appointed w.e.f. October 1, 2015
*** Appointed w.e.f. April 1, 2015
$ Appointed w.e.f. May 30, 2015
$$$ Appointed w.e.f. March 1, 2016
@@ Appointed w.e.f. May 27, 2016
Sr.
no.
2.
4.
6.
8.
Independent/Non-executive Director
Mr. Vikram Singh Mehta
Mr. M. M. Chitale
Mr. Thomas Mathew T. ###
Mr. Akhilesh Krishna Gupta
10. Mr. Bahram Vakil @@@
12. Mr. Subramanian Sarma $$
14. Mr. Narayanan Kumar @@
16. Mr. Swapan Dasgupta ~
**Retired on August 26, 2015
## Appointed w.e.f. January 29, 2016
### Appointed w.e.f. April 3, 2015
$$ Appointed w.e.f. August 19, 2015
@ Appointed w.e.f. May 25, 2016
@@@ Separated w.e.f. August 1, 2016
~ Appointed w.e.f. April 1, 2015 and Separated w.e.f. May 15, 2016
(c) Disclosure of related party transactions:
Sr.
no.
Nature of transaction/relationship/major parties
i.
Purchase of goods & services (including commission paid)
Subsidiaries, including:
L&T Shipbuilding Limited
Hi-Tech Rock Products and Aggregates Limited
L&T Geostructure LLP
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
1121.13
850.31
428.06
169.61
172.14
Larsen & Toubro Readymix and Asphalt Concrete Industries LLC
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
2323.92
1910.69
1675.16
530.79
Associates, including:
7.01
74.54
JSK Electricals Private Limited
Salzer Electronics Limited
Feedback Infra Private Limited
L&T-Chiyoda Limited
Magtorq Private Limited
–
–
2.58
1.10
3.33
Total
3452.06
2835.54
318
249.71
142.12
96.07
1256.68
536.02
27.99
37.33
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(c) Disclosure of related party transactions: (contd.)
Sr.
no.
Nature of transaction/relationship/major parties
ii.
Sale of goods/contract revenue & services
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
Larsen and Toubro (Saudi Arabia) LLC
L&T Seawoods Limited
L&T Parel Project LLP
Nabha Power Limited
Joint ventures, including:
L&T Infrastructure Development Projects Limited
L&T Deccan Tollways Limited
L&T-MHPS Boilers Private Limited
Associate:
L&T-Chiyoda Limited
Total
iii.
Purchase/lease of property, plant and equipment
Subsidiaries, including:
Larsen and Toubro Infotech Limited
L&T Construction Equipment Limited
L&T Hydrocarbon Engineering Limited
Joint venture:
L&T Infrastructure Development Projects Limited
Total
iv.
Sale of property, plant and equipment
Subsidiaries, including:
Larsen and Toubro (Oman) LLC
L&T Electrical and Automation FZE
L&T Valves Limited
L&T Shipbuilding Limited
Joint ventures:
L&T-MHPS Turbine Generators Private Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T Howden Private Limited
Key management personnel:
Mr. K Venkataramanan*
Mr. M. V. Kotwal**
Total
v.
Sale of Receivables
Subsidiary:
L&T Finance Limited
Total
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
2359.81
3452.08
1231.51
281.62
364.41
544.27
394.35
124.02
0.14
9.38
11.42
0.02
–
45.01
6.56
–
–
–
–
–
297.01
1070.75
0.14
3430.70
26.45
0.02
26.47
58.68
–
–
58.68
297.01
297.01
1395.17
623.78
477.52
380.75
653.99
533.50
–
12.49
0.04
1.07
0.16
–
0.26
0.19
0.05
8.85
0.44
44.83
319
1314.49
–
4766.57
15.45
0.04
15.49
1.51
0.50
9.29
11.30
44.83
44.83
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(c) Disclosure of related party transactions: (contd.)
Sr.
no.
Nature of transaction/relationship/major parties
vi.
Investments including subscription to equity and preference shares
(including application money paid)
Subsidiaries, including:
L&T Power Development Limited
L&T Technology Services Limited
L&T Shipbuilding Limited
L&T Realty Limited
L&T Uttaranchal Hydropower Ltd
Joint ventures:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Total
vii.
Purchase of investments from
Subsidiaries, including:
L&T Capital Company Limited
L&T Shipbuilding Limited
Joint venture:
L&T Infrastructure Development Projects Limited
Total
viii.
Sale of investments to
Subsidiaries, including:
L&T Capital Company Limited
L&T Global Holdings Limited
L&T Hydrocarbon Engineering Limited
Joint venture:
L&T Infrastructure Development Projects Limited
Total
ix. Capital Reduction by
Subsidiary:
L&T Capital Company Limited
Total
x.
Charges paid for miscellaneous services
Subsidiaries, including:
Larsen & Toubro Infotech Limited
L&T Aviation Services Private Limited
L&T Technology Services Limited
Joint ventures, including:
L&T-Sargent & Lundy Limited
Associates, including:
Feedback Infra Private Limited
L&T-Chiyoda Limited
Total
320
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
1262.84#
3073.00
750.00
276.24
–
(0.03)
(0.22)
–
388.00##
2041.57
–
–
11.08
–
–
(0.25)
1262.59
388.00
2041.57
2429.57
11.08
–
11.08
–
–
1.09
3074.09
4234.01
–
4234.01
5520.73
21.54
5542.27
21.95
21.95
139.13
145.26
101.42
23.74
3.62
0.17
3.64
0.19
7.23
0.59
142.96
153.08
383.40
–
943.84
648.30
604.75
–
1.09
4233.64
–
–
4232.03
1147.40
21.54
21.95
84.93
23.91
16.49
7.07
–
0.59
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(c) Disclosure of related party transactions: (contd.)
Sr.
no.
Nature of transaction/relationship/major parties
xi.
Rent paid, including lease rentals under leasing/hire purchase
arrangements
Subsidiaries, including:
L&T Electrical & Automation FZE
L&T Infocity Limited
PT Tamco Indonesia
Joint venture:
L&T Infrastructure Development Projects Limited
Key management personnel:
Mr. K. Venkataramanan* and Mrs. Jyothi Venkataramanan
Total
xii.(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 Limited LLC
L&T Electrical and Automation FZE
Larsen and Toubro Infotech Limited
PT Tamco Indonesia
Total
xii.(b) Charges recovered for deputation of employees to related parties
Subsidiaries, including:
L&T Parel Project LLP
L&T Electrical and Automation FZE
L&T Construction Equipment Limited
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T Infrastructure Development Projects Limited
Associate:
L&T-Chiyoda Limited
Total
xiii. Dividend received
Subsidiaries, including:
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Finance Holdings Limited
Joint venture:
L&T-Sargent & Lundy Limited
Associate:
Salzer Electronics Limited
Total
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
1.37
1.66
0.79
–
0.31
–
–
1.38
6.16
1.55
22.39
8.54
8.96
0.64
1.21
2.14
18.01
149.48
99.05
93.58
–
–
–
1.37
12.65
12.65
84.47
3.99
18.01
106.47
405.47
–
0.01
0.01
1.68
13.70
13.70
77.04
2.46
18.72
98.22
994.16
13.75
0.38
405.47
1008.29
0.86
0.37
0.23
0.01
0.01
2.18
2.18
4.43
2.59
25.35
0.58
1.87
–
18.72
526.48
302.00
100.39
13.75
0.38
321
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(c) Disclosure of related party transactions: (contd.)
Sr.
no.
Nature of transaction/relationship/major parties
xiv. Commission received, including those under agency arrangements
Subsidiary:
L&T Construction Equipment Limited
Joint venture:
L&T Kobelco Machinery Private Limited
Total
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
5.82
0.65
6.47
5.82
0.65
4.84
2.64
7.48
xv.
Rent received, overheads recovered and miscellaneous income
Subsidiaries, including:
423.18
538.26
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Hydrocarbon Engineering Limited
L&T Geostructure LLP
L&T Capital Company Limited
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-Sargent & Lundy Limited
L&T-MHPS Turbine Generators Private Limited
L&T Special Steels and Heavy Forgings Private Limited
Associate:
L&T-Chiyoda Limited
Key management personnel:
Mr. D. K. Sen$
Total
xvi. Guarantee charges recovered from
Subsidiaries, including:
Nabha Power Limited
L&T Shipbuilding Limited
L&T Hydrocarbon Engineering Limited
Larsen & Toubro (Saudi Arabia) LLC
Larsen Toubro Arabia LLC
Total
xvii.
Interest received from
Subsidiaries, including:
L&T Realty Limited
L&T Shipbuilding Limited
Nabha Power Limited
Marine Infrastructure Developer Private Limited
Joint ventures, including:
L&T Special Steels and Heavy Forgings Private Limited
Total
322
67.78
49.04
90.99
77.44
35.50
17.70
9.64
2.77
0.07
9.45
6.40
4.64
5.53
71.21
62.41
69.64
78.98
81.48
1.06
–
620.80
22.58
22.58
212.60
57.86
270.46
90.00
2.77
0.07
516.02
30.98
30.98
248.30
79.54
327.84
4.84
2.64
77.23
69.89
96.83
72.65
23.42
17.64
10.31
10.00
1.06
–
9.90
3.45
6.02
–
69.94
90.62
31.50
–
52.58
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(c) Disclosure of related party transactions: (contd.)
Sr.
no.
Nature of transaction/relationship/major parties
xviii.
Interest paid to
Subsidiaries, including:
L&T Hydrocarbon Engineering Limited
Nabha Power Limited
L&T Construction Equipment Limited
Joint venture:
L&T Infrastructure Development Projects Limited
Total
xix. Contribution to post-employment benefit plan
Transaction with trust managed provident fund
(a)
Towards Employer’s contribution:
(i)
The Larsen & Toubro Officers & Supervisory Staff Provident Fund
The Larsen & Toubro Limited Provident Fund of 1952
Total
(ii)
Towards advance contribution:
The Larsen & Toubro Limited Provident Fund
Total
(iii)
Subscription or purchase by the fund of the debt securities issued by
the company:
The Larsen & Toubro Officers & Supervisory Staff Provident Fund
Total
(b)
(i)
Transaction with approved gratuity fund
Towards Employer’s contribution:
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
(ii)
Towards advance contribution:
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
45.38
–
45.38
59.68
59.68
–
–
–
–
29.85
29.85
–
–
40.04
–
–
51.52
6.64
–
–
23.59
6.26
–
–
13.88
3.89
17.77
60.26
60.26
0.43
0.43
25.00
25.00
59.73
59.73
60.00
60.00
6.31
4.70
1.98
3.89
52.05
6.65
0.43
25.00
47.73
12.00
48.15
11.85
“Major parties” denote entities account for 10% or more of the aggregate for that category of transaction during respective period.
# The scheme of arrangement between L&T Valves Limited and L&T Electrical & Automation Limited was approved by National Company Law Tribunal
on April 27, 2017 with appointed date as November 1, 2016. Pursuant to the scheme L&T Electrical & Automation Limited issued 73,88,796 shares to
Larsen & Toubro Limited as a consideration towards transfer of certain assets by L&T Valves Limited. The value of shares issued is derived based on fair
value of assets transferred to the total value of assets of L&T Valves Limited as at appointed date. Accordingly the value of investment in L&T Electrical
and Automation Limited was increased by v 40.31 crore and reduced in L&T Valves Limited by v 40.31 crore during the year 2016-17.
## Pursuant to the scheme of demerger approved by National Company Law Tribunal (NCLT), the existing share capital of Marine Infrastructure Developer
Limited held by L&T Shipbuilding Limited stands cancelled. The Company has now acquired 38,80,00,000 equity shares of Marine Infrastructure
Developer limited for a consideration of v 388 crore from L&T Shipbuilding Limited. The acquisition has been completed on March 31, 2017. Further,
38,80,00,000 equity shares of L&T Shipbuilding Limited held by the Company have been extinguished and 38,80,00,000 9% non-cumulative, optionally
convertible and redeemable preference shares of v 10 each have been issued to the Company in lieu of the same on March 29, 2017.
323
v crore
share-based
payments
Total
Notes forming part of the Financial Statements (contd.)
NOTE [51] (contd.)
xx. Compensation paid to key management personnel:
2016-17
2015-16
Total
Key Management Personnel
Short term
employee
benefits
21.86
–
–
13.26
9.00
8.13
6.20
5.96
Post-
employment
benefits
5.83
–
–
3.51
2.38
1.93
1.57
1.44
Other
long term
benefits
32.21 ***
–
–
–
–
–
–
–
short term
employee
benefits
21.57
4.74
3.35
11.53
8.28
6.43
2.60
0.93
post-
employment
benefits
5.76
22.43
15.35
3.06
2.19
1.47
0.69
0.24
Other
long term
benefits
–
13.53
7.89
–
–
–
–
–
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 $$
Mr. Subramanian Sarma
(Non-executive director)
Other non-executive directors
Total
* Retired on September 30, 2015
$ Appointed w.e.f. October 1, 2015
^ Represents fair value of employee stock options granted during 2015-16 to be vested over a period of time. The fair value of the stock options is
** Retired on August 26, 2015
$$ Appointed w.e.f. January 29, 2016
*** Represents encashment of past service accumulated leave
59.90
–
–
16.77
11.38
10.06
7.77
7.40
27.33
40.70
26.59
14.59
10.47
7.90
3.29
1.17
–
–
–
–
–
–
–
–
10.35^
–
10.35
–
4.37
117.65
10.35
4.06
146.45
–
–
16.66
–
–
32.21
–
4.06
63.49
–
–
51.19
–
4.37
68.78
–
–
21.42
being recovered from L&T Hydrocarbon Engineering Limited over the period of vesting.
(d) Amount due to/from related parties:
Sr.
no.
Nature of transaction/relationship/major parties
Amount
Amounts
for major
parties
Amount Amounts
for major
parties
Amount Amounts
for major
parties
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
i.
Accounts receivable
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
Larsen and Toubro (Saudi Arabia) LLC
Nabha Power Limited
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T Infrastructure Development Projects Limited
L&T Samakhiali Gandhidham Tollway Limited
L&T Deccan Tollways Limited
L&T Krishnagiri Walajahpet Tollway Limited
Total
ii.
Accounts payables, including other payables
Subsidiaries, including:
932.19
635.25
Larsen and Toubro Infotech Limited
Hi-Tech Rock Products and Aggregates Limited
Larsen and Toubro (Oman) LLC
L&T Geostructure LLP
Tamco Switchgear (Malaysia) SDN BHD
535.22
926.92
1007.57
212.29
297.99
202.25
396.97
535.68
435.67
65.55
78.42
43.30
125.63
44.68
103.27
118.89
108.78
102.69
129.61
58.20
139.21
–
1462.60
1443.24
601.89
379.38
77.60
94.99
Joint ventures, including:
1843.77
1676.32
1414.86
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
1171.07
605.53
1042.25
555.34
Assosiates, including:
Feedback Infra Private Limited
Magtorq Private Limited
L&T-Chiyoda Limited
Salzer Electronics Limited
1.99
5.35
22.81
1.27
0.57
–
0.98
3.18
1.19
–
Total
2481.01
2283.56
1817.05
324
115.04
253.41
256.39
77.32
111.56
89.13
90.97
–
97.38
75.54
830.70
547.20
18.54
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(d) Amount due to/from related parties: (contd.)
Nature of transaction/relationship/major parties
Amount
Amounts
for major
parties
Amount Amounts
for major
parties
Amount Amounts
for major
parties
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
Sr.
no.
iii.
Investments in debt securities
Subsidiaries, including:
L&T Shipbuilding Limited
L&T Finance Limited
Total
iv.
Loans and advances recoverable
Subsidiaries, including:
L&T Shipbuilding Limited
L&T Hydrocarbon Engineering Limited
Nabha Power Limited
L&T Realty Limited
Joint ventures, including:
L&T Special Steels and Heavy Forgings Private
Limited
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Associates, including:
L&T-Chiyoda Limited
Key management personnel:
Mr. K Venkataramanan* and
Mrs Jyothi Venkataramanan
627.85
464.43
68.64
605.10
441.95
627.85
464.43
68.64
3197.90
4738.83
1357.61
932.58
1587.64
2275.52
582.43
918.16
1667.61
1631.55
1682.91
1184.98
215.18
210.22
3.96
–
4.36
–
877.59
431.85
282.66
5.83
–
5.83
–
3.16
0.01
Total
4869.87
6376.21
3043.69
v.
Advances against equity contribution
Subsidiaries, including:
6.35
5.25
1986.84
L&T Uttaranchal Hydropower Limited
L&T Power Development Limited
L&T Realty Limited
L&T Shipbuilding Limited
L&T Metro Rail (Hyderabad) Limited
Total
vi. Unsecured loans (including lease finance)
Subsidiaries:
L&T Hydrocarbon Engineering Ltd
L&T Cutting Tools Limited
L&T Construction Equipment Limited
–
–
–
–
6.35
5.52
–
–
5.25
–
–
–
–
–
9.25
–
1986.84
57.25
5.25
9.25
6.35
5.52
Total
5.52
9.25
57.25
45.65
23.00
412.50
199.32
710.90
564.15
606.23
421.59
3.16
0.01
523.00
379.40
648.29
421.86
–
–
12.25
45.00
325
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(d) Amount due to/from related parties: (contd.)
Sr.
no.
Nature of transaction/relationship/major parties
Amount
Amounts
for major
parties
Amount Amounts
for major
parties
Amount Amounts
for major
parties
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
vii. Advances received in the capacity of supplier of goods/
services classified as “advances from customers” in
the Balance Sheet
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
L&T Seawoods Limited
Joint ventures, including:
L&T Infrastructure Development Projects Limited
L&T Deccan Tollways Limited
L&T-MHPS Boilers Private Limited
Total
viii. Due to whole-time directors #:
(Key management personnel)
Mr. A. M. Naik
Mr. K. Venkataramanan*
Mr. S. N. Subrahmanyan
Mr. R. Shankar Raman
Mr. Shailendra Roy
Mr. M. V. Kotwal**
Mr. D. K. Sen
Mr. M. V. Satish
Total
ix.(a) Capital commitments given
Subsidiaries, including:
L&T Construction Equipment Limited
Larsen and Toubro (Oman) LLC
L&T Technology Services Limited
L&T Hydrocarbon Engineering Limited
90.12
23.21
113.33
55.58
55.58
8.93
147.48
357.26
73.15
129.40
119.26
228.85
266.74
51.30
51.30
1.51
21.54
18.24
–
11.29
7.41
5.84
–
4.93
4.32
5.30
–
1.60
1.99
68.84
36.97
13.46
17.96
3.77
9.90
6.90
4.40
2.04
2.13
0.73
1.51
–
–
–
586.11
53.83
53.83
1.77
1.77
324.79
Total
ix.(b) Revenue commitments given
Subsidiaries, including:
8.93
1.51
1660.62
1775.11
Henikwon Corporation SDN. BHD
L&T Shipbuilding Limited
Larsen & Toubro Readymix and Asphalt Concrete
Industries LLC
L&T Geostructure LLP
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
1260.35
1655.69
3386.85
290.20
2232.20
1086.15
–
–
3385.37
517.08
2254.94
1066.91
Associates, including:
3.89
3.53
5.82
Feedback Infra Private Limited
L&T-Chiyoda Limited
Magtorq Private Limited
JSK Electricals Private Limited
Salzer Electronics Limited
0.80
0.96
2.13
–
–
1.59
1.29
0.65
–
–
Total
5051.36
5164.01
847.69
326
223.24
82.95
122.24
96.03
18.19
7.39
8.73
6.91
4.48
4.91
–
–
0.24
1.31
–
–
35.81
209.32
42.50
300.05
177.16
0.78
3.10
1.67
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(d) Amount due to/from related parties: (contd.)
Sr.
no.
Nature of transaction/relationship/major parties
Amount
Amounts
for major
parties
Amount Amounts
for major
parties
Amount Amounts
for major
parties
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
x.
Commitment to Fund
Subsidiaries, including:
L&T Seawoods Limited
L&T Uttaranchal Hydropower Limited
L&T Metro Rail (Hyderabad) Limited
1063.20
876.00
1294.59
–
442.75
620.45
413.00
459.00
734.40
546.00
Joint venture:
–
405.00
1443.41
L&T Infrastructure Development Projects Limited
–
405.00
1443.41
Total
1063.20
1281.00
2738.00
xi.
Revenue commitments received
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
L&T Parel Project LLP
L&T Asian Realty Project LLP
Larsen and Toubro (Saudi Arabia) LLC
L&T Seawoods Limited
Joint ventures, including:
2261.68
3550.18
5651.12
1396.43
397.04
237.62
2650.68
138.67
1000.60
2225.39
L&T Deccan Tollways Limited
L&T Infrastructure Development Projects Limited
L&T Krishnagiri Walajahpet Tollway Limited
L&T BPP Tollway Limited
25.95
60.00
13.65
26.27
350.30
593.65
–
Total
2400.35
4550.78
7876.51
3299.75
665.80
621.93
775.01
883.80
1236.11
–
xii. Capital commitments received
Subsidiary:
L&T Shipbuilding Ltd
Total
0.77
0.77
0.77
–
–
–
–
–
–
“Major parties” denote entities account for 10% or more of the aggregate for that category of transaction during respective
period.
# Includes commission due to non-executive directors v 3.55 crore (As at 31-3-2016: v 3.47 crore; as at 1-4-2015: v 3.22 crore)
* Retired on September 30, 2015
** Retired on August 26, 2015
$ Appointed w.e.f. October 1, 2015
327
Notes forming part of the Financial Statements (contd.)
NOTE [52]
Basic and Diluted Earnings per share [EPS] computed in accordance with Ind AS 33 “Earnings per Share”:
Particulars
2016-17
2015-16
Basic earnings per share
Profit after tax as per accounts (v crore)
Weighted average number of equity shares outstanding
Basic EPS (v)
Diluted earnings per share
Profit after tax as per accounts (v crore)
Weighted average number of equity shares outstanding
Add: Weighted average number of potential equity shares on account of employee stock
options
A
B
A/B
A
B
C
5453.74
4999.58
93,23,49,030 93,07,61,648
53.71
58.49
5453.74
4999.58
93,23,49,030 93,07,61,648
43,02,265
31,60,400
Weighted average number of equity shares outstanding for diluted EPS
Diluted EPS (v)
Face value per share (v)
D=B+C
A/D
93,55,09,430 93,50,63,913
53.47
2
58.30
2
The following potential equity shares are anti-dilutive and are therefore excluded from the weighted average number of equity shares
for the purpose of diluted earnings per share:
Weighted average number of potential equity shares on account of conversion of foreign currency
convertible bonds
Particulars
2016-17
2015-16
63,46,986
63,46,986
Note: On May 29, 2017, the Board of Directors has recommended for the approval of shareholders, the issue of bonus equity shares in
the ratio of 1:2 (one bonus equity share of v 2 each for every two equity shares of v 2 each held). The effect of the said bonus issue will
be given in the year 2017-18 post approval by shareholders.
NOTE [53]
Disclosure pursuant to Ind AS 27 “Separate Financial Statements”
Investment in following subsidiary companies, joint venture companies and associates is accounted at cost.
Subsidiaries :
Name of subsidiary company
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Principal
place of
business
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Indian subsidiaries
India
L&T Cutting Tools Limited
India
Bhilai Power Supply Company Limited
India
Spectrum Infotech Private Limited
India
L&T-Valdel Engineering Limited %%
India
L&T Shipbuilding Limited
L&T Electricals and Automation Limited
India
Hi-Tech Rock Products & Aggregates Limited India
L&T Seawoods Limited
India
Kesun Iron and Steel Company Private Limited India
India
L&T Infocity Limited
India
EWAC Alloys Limited
India
L&T Valves Limited
India
L&T Realty Limited
India
L&T Power Limited
100.00
99.90
100.00
–
97.00
100.00
100.00
100.00
95.00
–
100.00
100.00
100.00
99.99
100.00
99.90
100.00
–
97.00
100.00
100.00
100.00
95.00
–
100.00
100.00
100.00
99.99
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
95.00
–
100.00
100.00
100.00
99.99
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
95.00
–
100.00
100.00
100.00
99.99
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
95.00
89.00
100.00
100.00
100.00
99.99
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
95.00
89.00
100.00
100.00
100.00
99.99
Sr.
no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
328
Notes forming part of the Financial Statements (contd.)
NOTE [53] (contd.)
Sr.
no.
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Name of subsidiary company
Indian subsidiaries
L&T Cassidian Limited
L&T General Insurance Company Limited*
L&T Aviation Services Private Limited
Larsen & Toubro Infotech Limited
L&T Finance Holdings Limited
L&T Capital Company Limited
L&T Power Development Limited
L&T Metro Rail (Hyderabad) Limited
L&T Technology Services Limited
L&T Construction Equipment Limited
L&T Infrastructure Engineering Limited
L&T Hydrocarbon Engineering Limited
Seawoods Retail Private Limited^^
Seawoods Realty Private Limited^^^
L&T Natural Resources Limited
L&T Powergen Limited
L&T Solar Limited
32 Marine Infrastructure Developer Private
Limited
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Principal
place of
business
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
74.00
–
100.00
84.28
66.62
100.00
100.00
100.00
89.77
100.00
100.00
100.00
100.00
100.00
–
–
–
74.00
–
100.00
84.28
66.62
100.00
100.00
100.00
89.77
100.00
100.00
100.00
100.00
100.00
–
–
–
74.00
100.00
100.00
94.96
66.71
100.00
100.00
97.48
100.00
100.00
100.00
100.00
–
–
–
–
–
74.00
100.00
100.00
94.96
66.71
100.00
100.00
97.48
100.00
100.00
100.00
100.00
–
–
–
–
–
97.00
97.00
100.00
100.00
74.00
100.00
100.00
100.00
72.95
100.00
100.00
97.48
100.00
100.00
100.00
100.00
–
–
100.00
100.00
100.00
–
74.00
100.00
100.00
100.00
72.95
100.00
100.00
97.48
100.00
100.00
100.00
100.00
–
–
100.00
100.00
100.00
–
*
The Company has sold its stake on September 9, 2016
%% The Company is merged with L&T Hydrocarbon Engineering Limited w.e.f. April 1,2016
^^ The Company is incorporated on September 2, 2016
^^^ The Company is incorporated on October 23, 2016
Name of subsidiary company
Sr.
no.
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Principal
place of
business
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Foreign subsidiaries
Larsen & Toubro LLC
Larsen & Toubro International FZE
Larsen & Toubro Hydrocarbon International
Limited LLC
Larsen & Toubro (Saudi Arabia) LLC
Larsen Toubro Arabia LLC
USA
UAE
Kindgom of
Saudi Arabia
Kindgom of
Saudi Arabia
Kindgom of
Saudi Arabia
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
75.00
75.00
75.00
75.00
75.00
Larsen & Toubro Consultoria E Projeto Ltda
Brazil
–
–
–
–
100.00
100.00
L&T Global Holdings Limited
UAE
100.00
100.00
100.00
100.00
–
–
1
2
3
4
5
6
7
329
Notes forming part of the Financial Statements (contd.)
NOTE [53] (contd.)
Associate companies:
Name of associate company
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Principal
place of
business
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
Effective
proportion
of ownership
Interest (%)
Effective
proportion of
voting power
held (%)
L&T-Chiyoda Limited
Gujarat Leather Industries Limited @
Salzer Electronics Limited
JSK Electricals Private Limited
Rishi Consfab Private Limited
Magtorq Private Limited
India
India
India
India
India
India
50.00
50.00
–
–
–
50.00
50.00
–
–
–
50.00
50.00
50.00
50.00
–
–
–
–
–
–
42.85
42.85
42.85
42.85
50.00
50.00
26.06
26.00
26.00
42.85
50.00
50.00
26.06
26.00
26.00
42.85
Sr.
no.
1
2
3
4
5
6
@
The Company is under liquidation
Joint ventures:
Name of joint venture
L&T Chennai-Tada Tollway Limited
L&T Rajkot-Vadinar Tollway Limited
L&T Samakhiali Gandhidham Tollway Limited
L&T Infrastructure Development Projects Limited
L&T Transportation Infrastructure Limited
Ahmedabad - Maliya Tollway Limited
L&T Halol-Shamlaji Tollway Limited
L&T Krishnagiri Walajahpet Tollway Limited
Devihalli Hassan Tollway Limited
L&T Howden Private Limited
L&T Sapura Shipping Private Limited
L&T Sapura Offshore Private 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 Special Steels and Heavy Forgings Private Limited
PNG Tollway Limited
L&T Kobelco Machinery Private Limited
L&T-Sargent & Lundy Limited
Sr.
no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
330
Principal place of
business
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Effective
proportion
of ownership
interest (%)
Effective
proportion of
ownership
interest (%)
Effective
Proportion of
ownership
interest (%)
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
97.45
97.45
97.45
97.45
98.12
97.45
47.75
97.45
97.45
50.10
60.00
60.00
50.00
51.00
51.00
75.50
74.00
72.11
51.00
50.00
97.45
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
50.10
60.00
60.00
50.00
51.00
51.00
75.50
74.00
72.11
51.00
50.00
97.45
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
50.10
60.00
60.00
50.00
51.00
51.00
75.50
74.00
72.77
51.00
50.00
Notes forming part of the Financial Statements (contd.)
NOTE [54]
Disclosures pursuant to Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”
(a) Movement in provisions:
Particulars
Class of provisions
Product
warranties
Expected tax
liability in respect
of indirect taxes
Litigation related
obligations
Contractual
rectification cost
- construction
contracts
v crore
Total
Balance as at 1-4-2016
Additional provision during the year
Provision used/reversed during the year #
Additional provision for unwinding of interest and
change in discount rate
10.09
12.24
(1.38)
0.30
132.36
54.75
(5.22)
–
Balance as at 31-3-2017 (5=1+2+3+4)
21.25
181.89
6.94
–
–
0.44
7.38
125.77
231.67
(94.10)
–
275.16
298.66
(100.70)
0.74
263.34
473.86
Sr.
no.
1.
2.
3.
4.
5.
# includes provision used during the year v 5.39 crore
(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, 2017 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 Ind AS 11 “Construction Contracts”.
(c) Disclosure in respect of contingent liabilities is given as part of Note 29 to the Balance Sheet.
Particulars
v crore
2016-17
2015-16
NOTE [55]
Auditors’ remuneration (excluding service tax):
Sr.
no.
a.
b.
c.
d.
For Audit fees
For Taxation matters
For Company law matters
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
NOTE [56]
Contribution to political parties during the year 2016-17 is v Nil (previous year v Nil).
2.45
0.48
0.25
1.30
0.58
0.27
1.70
0.48
0.25
1.30
0.54
0.13
331
Notes forming part of the Financial Statements (contd.)
NOTE [57]
The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as
at March 31, 2017. The disclosure pursuant to the said Act is as under:
v crore
2016-17
2015-16
106.28
3.39
187.48
–
–
3.60
14.08
8.20
121.14
2.90
264.03
–
0.01
7.83
13.16
1.20
v crore
Total
14.12
15.71
20.11
5.40
4.32
Principal amount due to suppliers under MSMED Act, 2006
Particulars
Interest accrued, due to suppliers under MSMED Act on the above amount, and unpaid
Payment made to suppliers (other than interest) beyond the appointed day during the year
Interest paid to suppliers under MSMED Act (other than Section 16)
Interest paid to suppliers under MSMED Act (Section16)
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
NOTE [58]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2017.
NOTE [59]
Disclosure on Specified Bank Notes (SBN) pursuant to MCA notification 308(E) dated March 30, 2017:
Particulars
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12.2016
SBNs
5.39
–
0.02
5.37
–
Other
denomination
notes
8.73
15.71
20.09
0.03
4.32
332
Notes forming part of the Financial Statements (contd.)
NOTE [60]
Disclosure pursuant to Ind AS 101 “First time adoption of Indian Accounting Standards”
(a) Effect of Ind AS adoption on Balance Sheet as at April 1, 2015:
Particulars
ASSETS:
Non-current assets
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
Property, plant and equipment
A, B, M
Capital work-in-progress
Investment property
Other intangible assets
Intangible assets under development
Financial Assets
Investments
Loans
Other financial assets
Deferred tax assets/(liabilities) [net]
Other non-current assets
A
A, B
M
A, D, E
A, F, M
E
A, G
A, C
7402.20
304.54
–
85.16
189.50
(333.24)
81.19
471.18
(0.22)
–
7068.96
385.73
471.18
84.94
189.50
17672.83
3017.38
334.76
(226.69)
(14.52)
11.70
17446.14
3002.86
346.46
21024.97
(362.99)
1405.72
(229.51)
267.02
44.50
20795.46
(95.97)
1450.22
Current assets
Inventories
Financial assets
Investments
A, C, M
2270.72
(9.95)
2260.77
D
5426.91
Trade receivables
A, H, M
16891.29
Cash and cash equivalents
A, M
1346.95
Other bank balances
Loans
A
A
235.94
1368.04
Other financial assets
A, E, I, N
1281.40
91.14
(101.29)
1417.83
19.90
13.57
146.69
5518.05
16790.00
2764.78
255.84
1381.61
1428.09
Other current assets
A, C, H,
M, N
Group(s) of assets classified as held for
M
sale
TOTAL ASSETS
26550.53
27554.18
–
86424.53
1587.84
900.65
141.79
2921.25
28138.37
28454.83
141.79
89345.78
333
Notes forming part of the Financial Statements (contd.)
NOTE [60]
(a) Effect of Ind AS adoption on Balance Sheet as at April 1, 2015 (contd.)
Particulars
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Total equity
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings
Other financial liabilities
Provisions
Other non-current liabilities
Current liabilities
Financial Liabilities
Borrowings
Current maturities of long
term borrowings
Trade payables
Other financial liabilities
Other current liabilities
Provisions
Current tax liabilities (net)
Liabilities associated with group(s) of
C, J
E, F
O
F
A
C
A, M
A, E, K, N
A, M, N
A, L, M
assets classified as held for sale
M
TOTAL EQUITY AND LIABILITIES
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
185.91
36898.67
–
1467.95
185.91
38366.62
37084.58
1467.95
38552.53
8596.85
78.21
(166.04)
23.79
8430.81
102.00
8675.06
344.83
–
(142.25)
1.27
0.81
8532.81
346.10
0.81
3804.21
648.31
17838.72
888.37
194.37
(0.38)
537.28
302.20
3998.58
647.93
18376.00
1190.57
23179.61
14617.31
2447.31
75.83
–
86424.53
1033.47
2168.67
(1645.89)
–
37.22
2921.25
(b) Statement of reconciliation of equity under Ind AS and equity reported under I-GAAP as at April 1, 2015:
Sr.
no.
Particulars
Equity as per I-GAAP
Provision for expected credit loss
Provision for employee benefits based on constructive obligations
Gain on fair valuation of investments
Increase in borrowing cost pursuant to application of effective interest rate method
Reversal of Dividend & DDT
Equity component of other financial instruments (FCCB)
Others
I
II
III
IV
V
VI
VII
VIII Deferred and current taxes
Equity as per Ind AS
Note
H
K
D
C
L
J
J, E, N, O
G
334
24213.08
16785.98
801.42
75.83
37.22
89345.78
v crore
37084.58
(483.50)
(353.22)
247.83
(29.34)
1644.87
153.20
21.09
267.02
38552.53
Notes forming part of the Financial Statements (contd.)
NOTE [60] (contd.)
(c) Effect of Ind AS adoption on Balance Sheet as at March 31, 2016:
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
Particulars
ASSETS:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Investment property
Other intangible assets
Intangible assets under development
Financial Assets
Investments
Loans
Other financial assets
A, B
A, C, N
A, B
A
7120.59
250.69
–
138.40
158.91
A, D, E
A, F
E
19897.94
2809.71
468.38
(710.08)
(12.19)
5.71
Deferred tax assets/(liabilities) [net]
Other non-current assets
Current assets
Inventories
G
A, C
A, C
Financials assets
Investments
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Other financial assets
D
A, H
A
A
A
A, E, I, N
4701.55
19089.92
1505.19
237.30
2417.83
1713.32
23176.03
(203.35)
1775.66
1888.00
101.77
(122.17)
570.64
1257.13
14.43
167.17
7129.89
253.22
446.90
138.58
158.91
22459.47
156.14
1786.70
1955.11
9.30
2.53
446.90
0.18
–
(716.56)
359.49
11.04
67.11
19187.86
2797.52
474.09
4803.32
18967.75
2075.83
1494.43
2432.26
1880.49
Other current assets
A, C, H, N
TOTAL ASSETS
29665.11
32600.81
96570.85
1988.97
881.14
3050.10
31654.08
33481.95
99620.95
335
Notes forming part of the Financial Statements (contd.)
NOTE [60]
(c) Effect of Ind AS adoption on Balance Sheet as at March 31, 2016 (contd.)
Particulars
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Total equity
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
Other financial liabilities
Provisions
Other non-current liabilities
Current liabilities
Financial liabilities
Borrowings
Current maturities of long
term borrowings
Trade payables
Other financial liabilities
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
186.30
40532.03
–
1416.98
186.30
41949.01
40718.33
1416.98
42135.31
8486.18
60.94
(173.71)
11.51
8312.47
72.45
8547.12
370.23
0.58
(162.20)
1.27
5.25
8384.92
371.50
5.83
C, J
E, F
O
F
A, C
3881.87
1436.03
A
A, E, K, N
21391.11
966.38
294.11
–
824.81
353.30
4175.98
1436.03
22215.92
1319.68
Other current liabilities
Provisions
Current tax liabilities (net)
TOTAL EQUITY AND LIABILITIES
A, N
A, L, O
A
27675.39
16530.46
2703.11
25.63
96570.85
1472.22
2121.50
(1805.82)
0.90
3050.10
(d) Statement of reconciliation of equity under Ind AS and equity reported under I-GAAP as at March 31, 2016:
Sr.
no.
Particulars
Equity as per I-GAAP
Provision for expected credit loss
Provision for employee benefits based on constructive obligations
Gain on fair valuation of investments
Increase in borrowing cost pursuant to application of effective interest rate method
Reversal of Dividend & DDT
Equity component of other financial instruments (FCCB)
Others
I
II
III
IV
V
VI
VII
VIII Deferred and current taxes
Equity as per Ind AS
Note
H
K
D
C
L
J
J, E, N
G
29147.61
18651.96
897.29
26.53
99620.95
v crore
40718.33
(785.56)
(379.07)
172.49
(53.91)
1840.83
153.20
109.51
359.49
42135.31
336
Notes forming part of the Financial Statements (contd.)
NOTE [60] (contd.)
(e) Effect of Ind AS adoption on the Statement of Profit and Loss for the period ended March 31, 2016:
Note
I-GAAP
Ind AS Adjsutments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
A, N
A, D
A
A, N
A
A
A
A
A
A, K,
O, P
A, H
A, C
A
INCOME
Revenue from operations
Other income
Total income
EXPENSES
Manufacturing, construction and operating expenses
Cost of raw materials components consumed
Excise duty
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: Overheads capitalised
Total expenses
Profit before exceptional items and tax
Exceptional items
Profit before tax
Tax expenses
Current tax
Deferred tax
60415.00
2395.82
62810.82
3397.65
(54.78)
3342.87
63812.65
2341.04
66153.69
7396.35
635.39
17805.37
1129.18
1448.90
14066.80
114.98
4667.51
1.20
–
999.33
0.27
(99.67)
1501.07
(38.41)
540.82
7397.55
635.39
18804.70
1129.45
1349.23
15567.87
76.57
5208.33
47264.48
4480.20
2494.91
1449.04
998.88
56687.51
5.53
56681.98
6128.84
560.28
6689.12
2904.61
494.60
350.86
27.78
(1.48)
3776.37
–
3776.37
(433.50)
–
(433.50)
50169.09
4974.80
2845.77
1476.82
997.40
60463.88
5.53
60458.35
5695.34
560.28
6255.62
1256.04
4999.58
82.86
A, G
A, G
1551.19
(173.54)
(21.18)
(100.43)
1530.01
(273.97)
Profit after tax
Other Comprehensive Income [net of tax]
D, G
N, P
1377.65
5311.47
–
(121.61)
(311.89)
82.86
Total comprehensive income
5311.47
(229.03)
5082.44
337
Notes forming part of the Financial Statements (contd.)
NOTE [60] (contd.)
(f)
Statement of reconciliation of total comprehensive income for the period ended March 31, 2016:
Sr.
no.
I
II
III
IV
V
VI
Particulars
Net Profit after tax as per I-GAAP
Impact of provision for expected credit loss
Provision for employee benefits based on constructive obligations
Impact of fair valuation of investments
Increase in borrowing cost pursuant to application of effective interest rate method
Reclassification of net actuarial loss on employee defined benefit obligations to OCI
Others
VII
Deferred and current taxes
Net Profit after tax as per Ind AS
VIII Other comprehenvice income [net of tax]
Total comprehensive income as per Ind AS
Note
H
K
D
C
P
E, J, N, O
G
D, G, N, P
(g) Effect of Ind AS adoption on Statement of Cash Flows for the period ended March 31, 2016:
Particulars
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents as at April 1, 2015
Cash and cash equivalents as at March 31, 2016
Note
I-GAAP
A
A
A
A
3272.72
(545.27)
(2567.21)
160.24
1347.18
1507.42
Ind AS
Adjustments
27.14
(976.98)
102.88
(846.96)
1417.60
570.64
v crore
5311.46
(302.06)
(25.85)
(71.46)
(24.57)
12.90
(23.78)
122.94
4999.58
82.86
5082.44
v crore
Ind AS
3299.86
(1522.25)
(2464.33)
(686.72)
2764.78
2078.06
(h) Following assets and liabilities of joint operations have been consolidated in standalone financials on a line by line basis under Ind
AS as against a single line item accounted under I-GAAP (Note A).
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
448.91
1.20
7.56
0.18
–
36.25
494.10
205.24
81.19
14.38
–
1.13
25.85
327.79
ASSETS:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Investment property
Other intangible assets
Deferred tax assets (net)
Other non-current assets
Carried forward
338
Notes forming part of the Financial Statements (contd.)
NOTE [60] (contd.)
Brought forward
Current assets
Inventories
Financials assets
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Other financial assets
Other current assets
TOTAL (A)
LIABILITIES
Current liabilities
Financial Liabilities
Borrowings
Trade payables
Other financials liabilities
Other current Liabilities
Provisions
Current tax liabilities (net)
TOTAL (B)
Net assets recognised under Ind AS [C = (A)-(B)]
As at 31-3-2016
As at 1-4-2015
v crore
327.79
12.39
v crore
597.82
570.53
1257.13
14.43
135.20
v crore
494.10
67.12
v crore
371.00
1417.16
19.90
13.57
123.07
2575.11
1060.49
4196.82
1944.70
1145.90
3430.78
293.55
863.12
519.69
194.37
652.99
304.43
1676.36
2158.52
8.65
0.90
3844.43
352.39
1151.79
2145.37
1.87
3299.03
131.75
Presented as a part of investments in Integrated Joint Ventures under
I-GAAP
352.39
131.75
339
Notes forming part of the Financial Statements (contd.)
NOTE [60] (contd.)
(i)
Following items of income and expenses of joint operations have been consolidated in standalone financials on a line by line basis
under Ind AS as against a Company’s share of profit or loss accounted under I-GAAP (Note A).
INCOME:
Revenue from operations
Other income
Total Income
EXPENSES:
Manufacturing ,construction and operating expenses
Employee benefits expense
Sales, administration and other expenses
Finance costs
Depreciation ,amortization ,impairment and obsolescence
Total expenses
Profit before exceptional items and tax
Exceptional items
Profit before tax
Tax expenses
Current tax
Deferred tax
Profit after tax recognised under Ind AS
Company’s share of profit accounted under I-GAAP
Notes:
v crore
v crore
3578.64
11.88
3590.52
2782.57
422.16
146.46
11.76
(1.48)
3361.47
229.05
–
229.05
1.63
227.42
227.42
1.18
0.45
A. The Company is executing some of the projects through unincorporated joint ventures (UJV). Such arrangements have been
classified as joint operations pursuant to Ind AS 111 and accordingly Company’s share in assets, liabilities, income and expenses
of UJVs has been consolidated in standalone financials on a line by line basis. Under I-GAAP the investment in UJVs was being
presented as a single line item in the Balance Sheet and the Company’s share in the net profit or loss was accounted as a single
line item in the Statement of Profit and Loss.
B.
Pursuant to Ind AS requirements, investment property is presented separately. Under I-GAAP the same was presented as part of
tangible assets. Tangible assets have been now divided into two categories under Ind AS viz. Property, plant and equipment and
Investment property.
C. Under Ind AS 23 borrowing cost is calculated following effective rate of interest (EIR) method as described under Ind AS
109. Under I-GAAP borrowing cost was computed by applying the coupon rate to the principle amount for the period with
consequential impact in the asset items where borrowing cost is capitalised/inventorised. Borrowings are recognised at fair value at
the inception and subsequently at amortised cost with interest recognised based on EIR method.
D. All Investments except investments in group companies have been fair valued in accordance with Ind AS 109. Investments in debt
securities are fair valued through OCI and reclassified to profit or loss on their sale. Other investments are fair valued through profit
or loss. Under I-GAAP the current investments were carried at cost net of diminution in their value as at the Balance Sheet date.
The long term investments were carried at cost net of permanent diminution, if any.
E.
Financial guarantee contracts have been recognised at fair value at the inception in accordance with Ind AS 109 along with
accrued guarantee charges. Under I-GAAP financial guarantee given was disclosed as contingent liability and commitments.
340
Notes forming part of the Financial Statements (contd.)
NOTE [60] (contd.)
F.
Under Ind AS financial assets and liabilities are measured at fair value at the inception and subsequently at amortised cost or at fair
value based on their classification. Under I-GAAP the financial assets and liabilities were measured at cost.
G. Deferred tax under Ind AS has been recognised for temporary differences between tax base and the book base of the relevant
assets and liabilities. Under I-GAAP the deferred tax was accounted based on timing differences impacting the Statement of Profit
and Loss for the period.
H. The provision is made against trade receivables based on “expected credit loss” model as per Ind AS 109. Under I-GAAP the
provision was made when the receivable turned doubtful based on the assessment on case to case basis.
I.
J.
K.
ESOP charge is accounted using fair value method. The portion of ESOP charge recoverable from the group companies is
accordingly measured and recognised at fair value. Under I-GAAP ESOP charge was calculated based on intrinsic value method.
Pursuant to Ind AS 32, Foreign Currency Convertible Bonds (FCCB) issued by the Company is split into equity and liability
component and presented accordingly. The measurement of liability component is done at fair value at the inception and
subsequently at amortised cost. Under I-GAAP FCCB was accounted at cost and presented as borrowing.
Provision is made under Ind AS towards constructive obligations of the Company related to payment of performance linked
rewards to the employees and tax on ESOP benefits, wherever applicable. Under I-GAAP the cost was recognised on actual
payments.
L. Under Ind AS the final dividend including related tax is recognised in the period in which the obligation to pay is established on its
approval, post reporting of financial statements. Under I-GAAP a provision was required to be made in the financial statements for
the proposed final dividend in the period to which the liability related.
M.
In accordance with Ind AS 105 group of assets held for sale and liabilities associated with such group is presented separately.
Under I-GAAP there was no such requirement.
N. Change in fair value of derivative instrument taken to hedge off-Balance Sheet item is accounted in the hedging reserve. Under
I-GAAP the premium on these derivative instrument was recognised on accrual basis in the Statement of Profit and Loss.
O. Past service cost arising out of modifications in the post-retirement benefits is recognised in Profit or Loss pursuant to Ind AS 19.
Under I-GAAP the past service cost was amortised over a period.
P. Actuarial gains and losses pertaining to defined benefit obligations and re-measurement pertaining to return on plan assets are
recognised in Other Comprehensive Income in accordance with Ind AS 19 and are not reclassified to profit or loss. Further, there
are certain other items (as presented in OCI) that are accounted in Other Comprehensive Income and subsequently reclassified to
Profit or Loss in accordance with Ind AS requirements.
Q. The previous year I-GAAP figures have been reclassified/regrouped to make them comparable with Ind AS presentation.
341
NOTES
342
Consolidated Financial Statements 2016-17
INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED IND AS FINANCIAL STATEMENTS
OF A GROUP UNDER THE COMPANIES ACT, 2013 AND THE RULES THEREUNDER
DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Indiabulls Finance Centre, Tower 3
27th – 32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
Mumbai 400 013.
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 Ind AS Financial Statements
We have audited the accompanying Consolidated Ind AS financial statements of LARSEN & TOUBRO LIMITED (hereinafter referred
to as the “Parent”) and its subsidiaries (the Parent and its subsidiaries together referred to as the “Group”) its joint ventures and
associates, comprising the Consolidated Balance Sheet as at March 31, 2017, the Consolidated Statement of Profit and Loss (including
Other Comprehensive Income), the Consolidated Statement of Cash Flows, and the Consolidated Statement of Changes in Equity, for
the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as
“the consolidated Ind AS financial statements”) and which also includes Joint operations of the Group.
Management’s Responsibility for the Consolidated Ind AS Financial Statements
The Parent’s Board of Directors is responsible for the preparation of these consolidated Ind AS 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 (including other comprehensive income), consolidated statement of cash flows
and the consolidated statement of changes in equity of the Group including its joint operations, joint ventures and associates in
accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Act. The respective Boards of Directors of the companies included in the Group and of its joint operations,
joint ventures and associates are responsible for maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding the assets of the Group, and of its joint operations, joint ventures and associates 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 Ind AS financial statements by the Directors of the
Parent, as aforesaid.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit. In conducting 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.
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 Ind AS 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 Ind AS
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material
misstatement of the consolidated Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Parent’s preparation of the consolidated Ind AS 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
343
the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Parent’s Board of
Directors, as well as evaluating the overall presentation of the consolidated Ind AS financial statements.
We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in sub-paragraphs (a) and (b)
of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated Ind AS
financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of
reports of the other auditors on separate financial statements of joint operations, subsidiaries, joint ventures and associates referred to
below in the Other Matters paragraph, the aforesaid consolidated Ind AS 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
consolidated state of affairs of the Group, its joint operations, joint ventures and associates as at March 31, 2017, and its consolidated
profit, consolidated total comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity
for the year ended on that date.
Other Matters
(a) The consolidated Ind AS financial statements include the financial statements of 16 joint operations included in the standalone
financial statements of the Parent included in the Group whose financial statements reflect total assets of v 3,647.41 crore as at
March 31, 2017 and total revenues of v 4,360.69 crore for the year ended on that date, as considered in the standalone financial
statements of the Parent included in the Group. The financial statements of these joint operations have been audited by the other
auditors 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 joint operations, and our report in terms of sub section (3) of Section 143 of the Act, in so far as it relates to the
aforesaid joint operations is based solely on the report of such other auditors.
The above includes 7 joint operations which are located outside India whose financial statements have been prepared in
accordance with accounting principles generally accepted in their respective countries and which have been audited by other
auditors under generally accepted auditing standards applicable in their respective countries. The Parent’s management has
converted the financial statements of such joint operations located outside India from accounting principles generally accepted
in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments
made by the Parent management. Our opinion in so far as it relates to the amounts and disclosures included in respect of said
joint operations located outside India is based on the report of other auditors and the conversion adjustments prepared by the
management of the Parent and audited by us.
(b) The consolidated Ind AS financial statements include the financial statements of 34 subsidiaries, whose financial statements reflect
total assets of v 55,693.16 crore as at March 31, 2017, total revenues of v 15,300.27 crore and net cash outflows amounting
to v 343.25 crore for the year ended on that date, as considered in the consolidated Ind AS financial statements which have not
been audited by us. The consolidated Ind AS financial statements also include the Group’s share of loss (net) of v 561.10 crore
for the year ended March 31, 2017, as considered in the consolidated Ind AS financial statements, in respect of 4 joint ventures,
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 Ind AS financial statements, in so far
as it relates to the amounts and disclosures included in respect of these subsidiaries, joint ventures and associates, and our report
in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries and joint ventures is based
solely on the reports of the other auditors.
The above include 28 subsidiaries and a joint venture which are located outside India whose financial statements have been
prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by
other auditors under generally accepted auditing standards applicable in their respective countries. The Parent’s management has
converted the financial statements of such subsidiaries and joint venture located outside India from accounting principles generally
accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion
adjustments made by the Parent’s management. Our opinion in so far as it relates to the amounts and disclosures included in
respect of said subsidiaries and joint venture located outside India is based on the report of other auditors and the conversion
adjustments prepared by the management of the parent and audited by us.
(c) The consolidated Ind AS financial statements include the financial statements/information of 14 subsidiaries, whose financial
statements reflect total assets of v 70.15 crore as at March 31, 2017, total revenues of v 333.18 crore and net cash outflows
amounting to v 31.38 crore for the year ended on that date, as considered in the consolidated Ind AS financial statements
which have not been audited by us. The consolidated Ind AS financial statements also include the Group’s share of profit (net)
v 7.37 crore for the year ended March 31, 2017, as considered in the consolidated Ind AS financial statements, in respect of 2
joint ventures and 6 associates, whose financial statements/information have not been audited by their auditors. These financial
344
statements/information are unaudited and have been furnished to us by the Management and our opinion on the consolidated
Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, joint
ventures and associates, is based solely on such unaudited financial statements/information. In our opinion and according to the
information and explanations given to us by the Management, these financial statements/information are not material to the
Group.
(d) The comparative financial statements for the year ended March 31, 2016 in respect of 4 joint operations, 37 subsidiaries and 4
joint ventures included in this consolidated Ind AS financial statements prepared in accordance with the Ind AS have been audited
by other auditors and have been relied upon by us.
The consolidated Ind AS financial statements also includes the comparative financial statements/information for the year ended
March 31, 2016 in respect of 16 joint operations, 22 subsidiaries, 3 joint ventures and 10 associates included in consolidated
Ind AS financial statements prepared in accordance with the Ind AS have not been audited by their auditors. These financial
statements/information are unaudited and have been furnished to us by the Management and our opinion on the consolidated
Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of these joint operations,
subsidiaries, joint ventures and associates, is based solely on such unaudited financial statements/ information. In our opinion and
according to the information and explanations given to us by the Management, these financial statements are not material to the
Group.
Our opinion on the consolidated Ind AS financial statements above, and our report on Other Legal and Regulatory Requirements below,
is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and
the financial statements/information certified by the Management.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit and on the consideration of the report of other auditors on separate
financial statements and the other financial information of joint operations, subsidiaries, joint venture and associate companies
incorporated in India, referred in the Other Matters paragraph above we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit of the aforesaid consolidated Ind AS financial statements.
(b)
In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated Ind AS financial
statements have been kept so far as it appears from our examination of those books, returns and the reports of the other auditors.
(c) The consolidated Balance Sheet, the consolidated Statement of Profit and Loss (including other comprehensive income), the
consolidated Statement of Cash Flows and consolidated Statement of Changes in Equity dealt with by this report are in agreement
with the relevant books of account maintained for the purpose of preparation of the consolidated Ind AS financial statements.
(d)
In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Indian Accounting Standards prescribed
under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Parent as on March 31, 2017 taken on record by
the Board of Directors of the Parent and the reports of the statutory auditors of its subsidiary companies, associate companies
and joint venture companies incorporated in India, none of the directors of the Group companies, its associate companies and
joint venture companies incorporated in India is disqualified as on March 31, 2017 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 separate Report in “Annexure A”, which is based on the auditors’ reports of the Parent, joint operation
companies, subsidiary companies, associate companies and joint venture companies incorporated in India. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Parent’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
Auditor’s) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to
us:
i.
ii.
The consolidated Ind AS financial statements disclose the impact of pending litigations on the consolidated financial position
of the Group, its associates and joint ventures.
Provision has been made in the consolidated Ind AS financial statements, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund by
the Parent and its subsidiary companies, associate companies and joint venture companies incorporated in India.
345
iv.
To the best of our information and according to the information and explanations given to us, we report that, except
where, for reasons explained in note no. 59 to the consolidated financial statements, the disclosures by certain subsidiaries
in the financial services segments of the Group with regard to the Specified Bank Notes (“SBNs”) were restricted to readily
available information and also considering that certain amounts directly deposited into the bank accounts of those entities
by their customers for which information relating to SBNs was not available with those entities were classified as “Permitted
receipts/Other Denomination Notes”, the Parent Company has provided requisite disclosures in the consolidated financial
statements as regards the Group entities’ holding and dealings in SBNs, as defined in the Notification S.O. 3407(E) dated 8th
November, 2016, of the Ministry of Finance, during the period from November 9, 2016 to December 30, 2016. Based on
audit procedures performed by us and the representations provided to us by the management, we report that the disclosures
are in accordance with the relevant books of accounts maintained by those entities for the purpose of preparation of the
consolidated Ind AS financial statements which, as the case may be, were produced before us or other auditors by the
managements of the respective Group entities.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 29, 2017
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’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (the “Act”)
In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended March 31,
2017, we have audited the internal financial controls over financial reporting of LARSEN & TOUBRO LIMITED (hereinafter referred to
as the “Parent”) and its subsidiary companies (hereinafter referred to as the “Group”), which includes internal financial controls over
financial reporting of the joint operations which are companies incorporated in India, its joint ventures and associate companies, which
are companies incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Boards of Directors of the Parent, its joint operations, its subsidiary companies, its joint ventures and its associate
companies, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria established by the respective Companies considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Parent, its subsidiary
companies, its joint operations, its joint ventures and its associate companies, which are companies incorporated in India, based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) issued by the ICAI 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
346
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 subsidiary
companies, joint operations, joint ventures and associate companies, which are companies incorporated in India, in terms of their
reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the
internal financial controls system over financial reporting of the Parent, its subsidiary companies, its joint operations, its joint ventures
and associate companies, which are companies incorporated in India.
Meaning of Internal Financial Controls Over Financial Reporting
A Company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that
the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the
reports of the other auditors referred to in the Other Matters paragraph below, the Parent, its subsidiary companies, its joint operations,
its joint ventures and associate companies, which are companies incorporated in India, have, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating
effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the respective companies
considering the essential components of internal control stated in the Guidance Note.
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 in so far as it relates to 1 joint operation, 4 subsidiary companies, and 2 joint venture companies, which are
companies incorporated in India, is based solely on the corresponding reports of the auditors of such companies incorporated in India.
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls
over financial reporting in so far as it relates to 7 subsidiary companies and 4 associate companies, which are companies incorporated
in India, whose financial statements/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/information are not material
to the Group.
Our opinion is not modified in respect of the above matters.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 29, 2017
For SHARP & TANNAN
Chartered Accountants
(Firm Registration No. 109982W)
FIRDOSH D. BUCHIA
(Partner)
(Membership No. 38332)
347
Consolidated Balance Sheet as at March 31, 2017
ASSETS:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Investment property
Goodwill
Other intangible assets
Intangible assets under development
Financial assets
Investments in joint ventures and associates
Other investments
Loans
Loans towards financing activities
Other financial assets
Deferred tax assets (net)
Non current assets for current tax (net)
Other non-current assets
Current assets
Inventories
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Loans towards financing activities
Other financial assets
Other current assets
Group(s) of assets classified as held for sale
TOTAL ASSETS
Note
As at 31-3-2017
v crore
v crore
As at 31-3-2016
v crore
v crore
As at 1-4-2015
v crore
v crore
2
2
3
4
5
5
55(e)
6
7
8
9
50(d)
10
11
12
13
14
15
16
17
18
19
52
2772.90
3180.74
1473.82
47133.86
775.12
13799.39
27969.60
3793.33
1779.16
480.84
24927.38
2703.58
11242.66
2118.19
3429.72
1398.66
432.59
11353.23
12172.17
1790.53
4386.00
1446.96
556.57
9183.92
13669.78
1452.66
2768.70
1536.98
568.47
6473.66
1257.88
2327.01
1037.65
47888.27
563.55
2066.65
1888.39
806.43
41431.60
480.60
55336.44
1736.15
165.37
3238.16
53074.36
1371.91
553.99
2737.19
46673.67
1009.90
236.27
2395.00
4139.74
4854.21
5981.16
7494.19
26024.98
3806.54
1583.37
651.14
18706.34
2298.67
7353.81
22254.43
4412.57
696.85
542.64
14322.02
2128.97
75453.28
40366.11
1649.37
212059.67
60565.23
40453.65
1579.46
51711.29
34972.91
1671.35
194726.15
171121.80
348
Consolidated Balance Sheet as at March 31, 2017 (contd.)
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Equity attributable to owners of the Company
Non-controlling interest
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
Other financial liabilities
Provisions
Deferred tax liabilities (net)
Other non-current liabilities
Current liabilities
Financial liabilities
Borrowings
Current maturities of long term borrowings
Trade payables
Other financial liabilities
Other current liabilities
Provisions
Current tax liabilities (net)
Liabilities associated with group(s) of assets classified as
held for sale
TOTAL EQUITY AND LIABILITIES
CONTINGENT LIABILITIES
COMMITMENTS (capital and others)
NOTES FORMING PART OF THE FINANCIAL
STATEMENTS
Note
As at 31-3-2017
v crore
v crore
As at 31-3-2016
v crore
v crore
As at 1-4-2015
v crore
v crore
20
21
186.59
50029.93
186.30
43994.06
185.91
41022.18
50216.52
3563.60
44180.36
2892.84
41208.09
1970.62
22
23
67340.58
191.33
61223.84
141.40
52709.64
222.12
67531.91
526.59
610.95
172.14
61365.24
424.66
635.48
181.14
52931.76
385.35
659.49
211.93
16556.79
10078.90
29774.25
5189.05
14896.75
12014.90
27003.56
4322.44
15897.14
8122.87
22056.89
3772.85
61598.99
23444.74
2658.34
240.29
1495.60
212059.67
58237.65
24407.89
2303.52
83.49
13.88
194726.15
49849.75
20804.60
1676.85
299.55
1123.81
171121.80
24
50(d)
25
26
27
28
29
30
31
52
32
33
1 to 63
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 29, 2017
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M.M.CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
349
Consolidated Statement of Profit and Loss for the year ended March 31, 2017
INCOME:
Revenue from operations
Other income
Total income
EXPENSES:
Note
34
35
2016-17
2015-16
v crore
v crore
v crore
v crore
110011.00
1401.01
111412.01
101975.34
904.35
102879.69
Manufacturing, construction and operating expenses:
36
Cost of raw materials, components consumed
Excise duty
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 and property development
Other manufacturing, construction and operating expenses
Finance cost of financial services business and finance lease activity
14320.98
699.19
20732.39
1610.57
2090.42
22556.13
84.00
10583.48
5362.09
13729.98
852.86
20256.77
1333.44
1834.19
20788.86
(514.86)
9160.56
4967.11
Employee benefits expense
Sales, administration and other expenses
Finance costs
Depreciation, amortisation, impairment and obsolescence
Less: Overheads capitalised
Total expenses
Profit before exceptional items and tax
Exceptional items
Profit before tax
Tax expense:
Current tax
Deferred tax (net)
Profit after tax
Less: Additional provision/(reversal) of tax on dividend distributed
by subsidiaries
Add: Share in profit/(loss) of joint ventures/associates (net)
55(f)
Profit for the year
Carried forward
350
37
38
39
42
78039.25
13853.07
7045.50
1339.84
2369.93
102647.59
1.51
102646.08
8765.93
121.43
8887.36
50(a)
50(a)
2976.31
(827.76)
2817.69
(380.73)
2148.55
6738.81
(141.96)
6880.77
(395.27)
6485.50
6485.50
72408.91
13330.84
5778.52
1655.06
1786.73
94960.06
5.77
94954.29
7925.40
94.22
8019.62
2436.96
5582.66
47.80
5534.86
(990.16)
4544.70
4544.70
Consolidated Statement of Profit and Loss for the year ended March 31, 2017 (contd.)
2016-17
Note
v crore
Brought forward
Other comprehensive income
A. Items that will not be reclassified to profit or loss:
Remeasurements of the defined benefit plans [net of tax]
B. Items that will be reclassified to profit or loss:
Debt instruments through other comprehensive income [net of tax]
Exchange differences in translating the financial statements of
foreign operations [net of tax]
Effective portion of gains and losses on hedging instruments in
a cash flow hedge [net of tax]
Cost of hedging reserve [net of tax]
Other comprehensive income for the year [net of tax]
Total comprehensive income for the year
Profit for the year attributable to:
- Owners of the Company
- Non-controlling interests
Other comprehensive income for the year attributable to:
- Owners of the Company
- Non-controlling interests
Total comprehensive income for the year attributable to:
- Owners of the Company
- Non-controlling interests
Basic earnings per equity share (v)
Diluted earnings per equity share (v)
Face value per equity share (v)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
49
49
1 to 63
v crore
6485.50
(25.35)
(6.41)
(130.83)
382.94
(42.57)
177.78
6663.28
6041.23
444.27
6485.50
146.38
31.40
177.78
6187.61
475.67
6663.28
64.80
64.58
2.00
2015-16
v crore
v crore
4544.70
(10.42)
(2.59)
68.93
91.78
11.35
159.05
4703.75
4232.88
311.82
4544.70
155.82
3.23
159.05
4388.70
315.05
4703.75
45.48
45.27
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 29, 2017
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M.M.CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
351
Consolidated Statement of Changes in Equity for the year ended March 31, 2017
A. Equity share capital
Particulars
Issued, subscribed and fully paid up equity shares outstanding at the
beginning of the year
Add: Shares issued on exercise of employee stock options
during the year
Issued, subscribed and fully paid up equity shares outstanding
at the end of the year
2016-17
2015-16
Number of
shares
v crore
Number of
shares
v crore
93,14,78,845
186.30
92,95,62,061
185.91
14,86,958
0.29
19,16,784
0.39
93,29,65,803
186.59
93,14,78,845
186.30
B. Other equity
Particulars
Equity
component
of foreign
currency
convertible
bonds
Capital
reserve
Securities
premium
account
Reserves and surplus
Employee
share
options
(net)
Statutory
reserves
Retained
earnings
Balance as at 1-4-2015
Profit for the year (a)
Other comprehensive income (b)
153.20
–
–
281.06
–
–
7963.16
–
–
369.24
–
–
1987.37
–
–
29703.20
4232.88
(8.86)
Items of other comprehensive income
Total other
equity
Foreign
currency
transla-
tion
reserve
538.23
–
71.36
Hedging
reserve
(51.90)
–
95.91
Debt
instruments
through other
comprehensive
income
78.62 41022.18
4232.88
155.82
–
(2.59)
(v crore)
Total
Non-
controlling
interest
1970.62
311.82
3.23
42992.80
4544.70
159.05
4224.02
71.36
95.91
(2.59)
4388.70
315.05
4703.75
Total comprehensive income
for the year (a+b)
Issue of equity shares
Share issue expenses
Impact of business combination
Transfer from/(to) retained earnings
during the year
Employee share options (net)
Dividend paid for the previous year
(including tax on dividend)
Net gain/loss on transaction with
non-controlling interest
Increase in non-controlling interest
due to dilution/ divestment/
acquisition
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.66)
201.63
(0.07)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(12.35)
(74.67)
671.93
–
(659.58)
–
–
–
–
–
(1805.90)
–
262.85
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
201.63
(0.07)
(0.66)
–
–
–
201.63
(0.07)
(0.66)
–
(74.67)
–
(0.69)
–
(75.36)
– (1805.90)
(57.77)
(1863.67)
–
262.85
(262.85)
–
–
–
928.48
928.48
Balance as at 31-3-2016
153.20
280.40
8164.72
282.22
2659.30
31724.59
609.59
44.01
76.03 43994.06
2892.84
46886.90
352
Consolidated Statement of Changes in Equity for the year ended March 31, 2017 (contd.)
Particulars
Equity
component
of foreign
currency
convertible
bonds
Capital
reserve
Securities
premium
account
Reserves and surplus
Employee
share
options
(net)
Statutory
reserves
(v crore)
Total
Total other
equity
Non-
controlling
interest
Retained
earnings
Items of other comprehensive income
Foreign
currency
transla-
tion
reserve
Hedging
reserve
Debt
instruments
through other
comprehensive
income
Balance as at 1-4-2016
Profit for the year (c)
Other comprehensive income (d)
153.20
–
–
280.40
–
–
8164.72
–
–
282.22
–
–
2659.30
–
–
31724.59
6041.23
(20.72)
609.59
–
(131.35)
44.01
–
303.51
76.03 43994.06
6041.23
146.38
–
(5.06)
2892.84
444.27
31.40
46886.90
6485.50
177.78
6020.51 (131.35)
303.51
(5.06)
6187.61
475.67
6663.28
Total comprehensive income
for the year (c+d)
Issue of equity shares
Share issue expenses
Impact of business combination
Transfer from/(to) retained earnings
during the year
Employee share options (net)
Income tax charged against
retained earnings
Dividend paid for the previous year
(including tax on dividend)
Net gain/loss on transaction with
non-controlling interest
Increase in non-controlling interest
due to dilution/ divestment/
acquisition
–
–
–
–
–
154.18
(0.05)
–
(0.12)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(21.86)
42.89
83.00
–
(61.14)
–
–
–
–
–
–
(0.30)
–
(2070.00)
–
1721.66
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
154.18
(0.05)
(0.12)
–
–
154.18
(0.05)
(0.12)
–
42.89
–
19.96
–
62.85
(0.30)
–
(0.30)
– (2070.00)
(92.14)
(2162.14)
–
1721.66 (1721.66)
–
–
–
1988.93
1988.93
Balance as at 31-3-2017
153.20
280.28
8318.85
303.25
2742.30
37335.32
478.24
347.52
70.97 50029.93
3563.60
53593.53
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 29, 2017
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M.M.CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
353
Consolidated Statement of Cash Flows for the year ended March 31, 2017
A. Cash flow from operating activities:
Profit before tax (excluding non-controlling interest and exceptional items)
Adjustments for:
Dividend received
Depreciation, amortisation, impairment and obsolescence
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 property, plant and equipment (net)
(Profit)/loss on sale/fair valuation 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 employee benefits expense
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 (including advance received)
Purchase of non-current investments
Sale of non-current investments
(Purchase)/sale of current investments (net)
Change in other bank balance and cash not available for immediate use
Investment in joint ventures
Deposits/ loans made with associates, joint ventures 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 discharged pursuant to disposal of subsidiaries/joint ventures
Net cash (used in)/from investing activities
2016-17
v crore
2015-16
v crore
8765.93
7925.40
(748.63)
2369.93
(80.51)
34.92
1339.84
(422.62)
(17.88)
(34.22)
(95.81)
88.17
11199.12
(2078.84)
1509.77
4550.32
15180.37
(5743.85)
9436.52
(3201.67)
6234.85
(2978.71)
156.33
(1551.99)
67.00
(6273.01)
(321.17)
(2010.36)
(212.35)
408.84
0.57
748.63
83.65
2169.01
–
(7.07)
(19.61)
(9740.24)
(196.12)
1786.73
45.56
(7.42)
1655.06
(426.85)
(60.55)
(65.73)
(236.53)
65.33
10484.88
(9449.56)
216.60
9308.11
10560.03
(10584.93)
(24.90)
(3214.69)
(3239.59)
(4321.63)
198.25
(575.05)
333.08
(171.25)
(909.11)
-
(242.25)
402.31
16.93
196.12
79.70
410.30
21.54
(32.36)
(33.14)
(4626.56)
354
Consolidated Statement of Cash Flows for the year ended March 31, 2017 (contd.)
C. Cash flow from financing activities:
Proceeds from issue of share capital
Proceeds from non-current borrowings
Repayment of non-current borrowings
Proceeds from other borrowings (net)
Payment (to)/from non controling interest (net)- including sale proceeds on divestment of part
stake in subsidiary companies
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
2016-17
v crore
53.32
30900.44
(27531.88)
1704.64
2058.82
(1701.51)
(391.54)
(1565.20)
3527.09
21.70
3789.51
3811.21
2015-16
v crore
70.19
30224.75
(19753.06)
44.07
970.58
(1512.33)
(329.91)
(2461.59)
7252.70
(613.45)
4402.96
3789.51
Notes:
1. Statement of Cash Flows has been prepared under the indirect method as set out in the Indian Accounting Standard (Ind AS) 7
“Statement of Cash Flows” as specified in the Companies (Indian Accounting Standards) Rules, 2015.
2. Purchase of fixed assets represents additions to property, plant & equipment, investment property and intangible assets adjusted for
movement of (a) capital work in progress for property, plant & equipment and investment property and (b) Intangible assets under
development during the year.
3. Cash and cash equivalents included in the Statement of Cash Flows comprise the following :
(a) Cash and cash equivalents disclosed under current assets [Note 14]
(b) Other bank balances disclosed under current assets [Note 15]
(c) Cash and cash equivalents disclosed under non-current assets [Note 9]
Total Cash and cash equivalents as per Balance Sheet
Add: (i) Unrealised exchange (gain)/loss on cash and cash equivalents
Less: (ii) Other bank balances disclosed under current assets [Note 15]
Less: (iii) Cash and cash equivalents disclosed under non-current assets [Note 9]
Total Cash and cash equivalents as per Statement of Cash Flows
4. Previous year’s figures have been regrouped/reclassified wherever applicable.
2016-17
v crore
3793.33
1779.16
223.56
5796.05
17.88
1779.16
223.56
3811.21
2015-16
v crore
3806.54
1583.37
98.18
5488.09
(17.03)
1583.37
98.18
3789.51
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 29, 2017
A. M. NAIK
Group Executive Chairman
(DIN 00001514)
M. DAMODARAN
(DIN 02106990)
M.M.CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
355
Notes forming part of the Consolidated Financial Statements
NOTE [1]
Significant Accounting Policies
(a) Statement of compliance
The Group’s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 issued by Ministry of
Corporate Affairs in exercise of the powers conferred by section 133 read with sub-section (1) of section 210A of the Companies
Act, 1956. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are
also applied except where compliance with other statutory promulgations require a different treatment. The financials for the year
ended March 31, 2017 of the Group are the first financial statements prepared in compliance with Ind AS. The date of transition
to Ind AS is April 1, 2015. The financial statements upto the year ended March 31, 2016, were prepared in accordance with the
accounting standards notified under the Companies (Accounting Standards) Rules, 2006 ( “I-GAAP”) and other relevant provisions
of the Act. The figures for the year ended March 31, 2016 have now been restated under Ind AS to provide comparability. These
financials statements have been approved for issue by the Board of Directors at their meeting held on May 29, 2017.
(b) Basis of accounting
The Group maintains its accounts on accrual basis following historical cost convention, except for certain financial instruments
that are measured at fair value in accordance with Ind AS and certain items of property, plant and equipment that were revalued
in earlier year in accordance with the I-GAAP principles. The carrying value of all the items of property, plant and equipment as on
the date of transition is considered as the deemed cost.
Fair value measurements under Ind AS are categorised as below based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value measurement in its entirety:
•
•
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at
measurement date
Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either
directly or indirectly; and
•
Level 3 inputs are unobservable inputs for the valuation of assets or liabilities
(c) 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 Statement of Cash Flows has been prepared and presented as per the requirements
of Ind AS 7 “Statement of Cash Flows”. 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 the financial statements
along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
Amounts in the financial statements are presented in Indian Rupees in crore [1 crore = 10 million] rounded off to two decimal
places as permitted by Schedule III to the Companies Act, 2013. Per share data are presented in Indian Rupees to two decimal
places.
(d) Basis of consolidation
(i)
The consolidated financial statements incorporate the financial statements of the Parent Company and its subsidiaries. For
this purpose, an entity which is, directly or indirectly, controlled by the Parent Company is treated as subsidiary. The Parent
Company together with its subsidiaries constitute the Group. Control exists when the Parent Company, directly or indirectly,
has power over the investee, is exposed to variable returns from its involvement with the investee and has the ability to use its
power to affect its returns.
(ii) Consolidation of a subsidiary begins when the Parent Company, directly or indirectly, obtains control over the subsidiary and
ceases when the Parent Company, directly or indirectly, loses control of the subsidiary. Income and expenses of a subsidiary
acquired or disposed off during the year are included in the consolidated Statement of Profit and Loss from the date the
Parent Company, directly or indirectly, gains control until the date when the Parent Company, directly or indirectly, ceases to
control the subsidiary.
(iii) The consolidated financial statements of the Group combines financial statements of the Parent Company and its subsidiaries
line-by-line by adding together the like items of assets, liabilities, income and expenses. All intra-group assets, liabilities,
income, expenses and unrealised profits/losses on intra-group transactions are eliminated on consolidation. The accounting
356
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
policies of subsidiaries have been harmonised to ensure the consistency with the policies adopted by the Parent Company.
The consolidated financial statements have been presented to the extent possible, in the same manner as Parent Company’s
standalone financial statements.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Parent Company and
to the non-controlling interests and have been shown separately in the financial statements.
(iv) Non-controlling interest represents that part of the total comprehensive income and net assets of subsidiaries attributable to
interests which are not owned, directly or indirectly, by the Parent Company.
(v) The gains/losses in respect of part divestment/dilution of stake in subsidiary companies not resulting in ceding of control, are
recognised directly in other equity attributable to the owners of the Parent Company.
(vi) The gains/losses in respect of divestment of stake resulting in ceding of control in subsidiary companies are recognised in
the Statement of Profit and Loss. The investment representing the interest retained in a former subsidiary, if any, is initially
recognised at its fair value with the corresponding effect recognised in the Statement of Profit and Loss as on the date the
control is ceded. Such retained interest is subsequently accounted as an associate or a joint venture or a financial asset.
(e)
Investments in joint venture and associates
When the Group has with other parties joint control of the arrangement and rights to the net assets of the joint arrangement,
it recognises its interest as joint venture. Joint control exists when the decisions about the relevant activities require unanimous
consent of the parties sharing the control. When the Group has significant influence over the other entity, it recognises such
interests as associates. Significant influence is the power to participate in the financial and operating policy decisions of the entity
but is not control or joint control over the entity.
The results, assets and liabilities of joint venture and associates are incorporated in the consolidated financial statements using
equity method of accounting after making necessary adjustments to achieve uniformity in application of accounting policies,
wherever applicable. An investment in associate or joint venture is initially recognised at cost and adjusted thereafter to recognise
the Group’s share of profit or loss and other comprehensive income of the joint venture or associate. Gain or loss in respect
of changes in other equity of joint ventures or associates resulting in dilution of stake in the joint ventures and associates is
recognised in the Statement of Profit and Loss. On acquisition of investment in a joint venture or associate, any excess of cost
of investment over the fair value of the assets and liabilities of the joint venture, is recognised as goodwill and is included in
the carrying value of the investment in the joint venture and associate. The excess of fair value of assets and liabilities over the
investment is recognised directly in equity as capital reserve. The unrealised profits/losses on transactions with joint ventures are
eliminated by reducing the carrying amount of investment.
The carrying amount of investment in joint ventures and associates is reduced to recognise impairment, if any, when there is
objective evidence of impairment.
When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest in that associate or joint venture
(which includes any long term interests that, in substance, form part of the Group’s net investment in the associate or joint
venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the
Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.
(f)
Interests in joint operations
When the Group has joint control of the arrangement based on contractually determined right to the assets and obligations for
liabilities, it recognises such interests as joint operations. Joint control exists when the decisions about the relevant activities require
unanimous consent of the parties sharing the control. In respect of its interests in joint operations, the Group recognises its share
in assets, liabilities, income and expenses line-by-line in the standalone financial statements of the entity which is party to such
joint arrangement which then becomes part of the consolidated financial statements of the Group when the financial statements
of the Parent Company and its subsidiaries are combined for consolidation. Interests in joint operations are included in the
segments to which they relate.
(g) Goodwill on consolidation
Goodwill on consolidation as on the date of transition represents the excess of cost of acquisition at each point of time of making
the investment in the subsidiary over the Group’s share in the net worth of a subsidiary. 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
357
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
consolidation represents excess of the Group’s share in the net worth of a subsidiary over the cost of acquisition at each point
of time of making the investment in the subsidiary. Goodwill arising on consolidation is not amortised, however, it is tested for
impairment annually. In the event of cessation of operations of a subsidiary, the unimpaired goodwill is written off fully.
Goodwill on consolidation arising on acquisitions on or after the date of transition represents the excess of the cost of acquisition
at each point of time of making the investment in the subsidiary, over the Group’s share in the fair value of the net assets of a
subsidiary.
Goodwill on consolidation is allocated to cash generating units or group of cash generating units that are expected to benefit from
the synergies of the acquisition.
(h) Operating cycle for current and non-current classification
Operating cycle for the business activities of the Group 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.
(i) Revenue recognition
Revenue is recognised based on nature of activity when consideration can be reasonably measured and recovered with reasonable
certainty. Revenue is measured at the fair value of the consideration received or receivable and is reduced for estimated customer
returns, rebates and other similar allowances.
(i)
Revenue from operations
Revenue includes 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.
A. Sale of goods
Revenue from sale of manufactured and traded goods is recognised when the goods are delivered and titles have
passed, provided all the following conditions are satisfied:
1.
2.
3.
4.
5.
significant risks and rewards of ownership of the goods are transferred to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the good sold;
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the Group; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably
B. Revenue from construction/project related activity and contracts for supply/commissioning of complex plant and
equipment is recognised as follows:
1. Cost plus contracts: Revenue from cost plus contracts is recognised by reference to the recoverable costs incurred
during the period plus the margin as agreed with the customer.
2.
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 subject to the condition that it is probable such cost will be recoverable.
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.
The estimated outcome of a contract is considered reliable when all the following conditions are satisfied:
i.
ii.
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the contract will flow to the Group;
iii.
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
iv.
the costs incurred or to be incurred in respect of the contract can be measured reliably
358
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
Expected loss, if any, on a contract is recognised as expense in the period in which it is foreseen, irrespective of the stage
of completion of the contract.
For contracts where progress billing exceeds the aggregate of contract costs incurred to date plus recognised profits (or
recognised losses as the case may be), the surplus is shown as the amount due to customers. Amounts received before
the related work is performed are included in the consolidated Balance Sheet, as a liability towards advance received.
Amount billed for work performed but yet to be paid by the customer are disclosed in the consolidated Balance Sheet as
trade receivables. The amount of retention money held by the customers is disclosed as part of other current assets and
is reclassified as trade receivables when it becomes due for payment.
C. Revenue from construction/project related activity and contracts executed in joint arrangements under work-sharing
arrangement [being joint operations, in terms of Ind AS 111 “Joint Arrangements”], is recognised on the same basis as
adopted in respect of contracts independently executed by the Group.
D. 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 in the nature of a construction contract is recognised based on the
‘Percentage of completion method’ (POC) when the outcome of the contract can be estimated reliably upon fulfillment
of all the following conditions:
1.
all critical approvals necessary for commencement of the project have been obtained;
2.
contract costs for work performed (excluding cost of land/developmental rights and borrowing cost) constitute at
least 25% of the estimated total contract costs representing a reasonable level of development ;
3.
at least 25% of the saleable project area is secured by contracts or agreements with buyers; and
4.
at least 10% of the total revenue as per the agreements of sale or any other legally enforceable documents is
realised at the reporting date in respect of each of the contracts and the parties to such contracts can be reasonably
expected to comply with the contractual payment terms.
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 the purpose of computing percentage of construction, cost of land, developmental rights and borrowing costs are
excluded.
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.
In the case of the developmental project business and the realty business, revenue includes profit on sale of stake in the
subsidiary and/or joint venture companies as the divestments are inherent in the business model.
E.
Rendering of services
Revenue from rendering services is recognised when the outcome of a transaction can be estimated reliably by reference
to the stage of completion of the transaction. The outcome of a transaction can be estimated reliably when all the
following conditions are satisfied:
1.
2.
3.
4.
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the Group;
the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably
Stage of completion is determined by the proportion of actual costs incurred to date to the estimated total costs of
the transaction. Unbilled revenue represents value of services performed in accordance with the contract terms but not
billed.
359
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
In respect of information technology (IT) business and technology services business, 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.
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 (i) B above.
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.
F.
G.
H. Revenue on account of construction services rendered in connection with Build-Operate-Transfer (BOT) projects
undertaken by the Group is recognised during the period of construction using percentage of completion method. After
the completion of construction period, revenue relatable to toll collections of such projects from users of facilities are
accounted when the amount is due and recovery is certain. License fees for way-side amenities are accounted on accrual
basis.
I.
J.
Commission income is recognised as and when the terms of the contract are fulfilled.
Income from investment management fees is recognised in accordance with the contractual terms and the SEBI
regulations based on average Assets Under Management (AUM) of mutual fund schemes over the period of the
agreement in terms of which services are performed. Portfolio management fees are recognised in accordance with the
related contracts entered with the clients over the period of the agreement. Trusteeship fees are accounted on accrual
basis.
K. Revenue from port operation services is recognised on completion of respective services or as per terms agreed with the
port operator, wherever applicable.
L.
Revenue from charter hire is recognised based on the terms of the time charter agreement.
M. Revenue from operation and maintenance services of power plant receivable under the Power Purchase Agreement is
recognised on accrual basis.
N. 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.
(ii) Other income
A.
Interest income is accrued on a time basis by reference to the principal outstanding and the effective 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 qualifying costs, incurred
by the Group, are recognised as income in the Statement of Profit and Loss in the period in which such costs are
incurred.
D. Other items of income are accounted as and when the right to receive arises and it is probable that the economic
benefits will flow to the group and the amount of income can be measured reliably.
(j) Exceptional items
An item of income or expense which its size, type or incidence requires disclosure in order to improve an understanding of the
performance of the Group is treated as an exceptional item and the same is disclosed in the notes to accounts.
(k) Property, plant and equipment (PPE)
PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Group and the cost of
the item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation
and cumulative impairment, if any. PPE acquired on hire purchase basis are recognised at their cash values. Cost includes
professional fees related to the acquisition of PPE and, for qualifying assets, borrowing costs capitalised in accordance with the
Group’s accounting policy.
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Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
For transition to Ind AS, the group has elected to adopt as deemed cost, the carrying value of PPE measured as per I-GAAP less
accumulated depreciation and cumulative impairment on the transition date of April 1, 2015. In respect of revalued assets, the
value as determined by valuers as reduced by accumulated depreciation and cumulative impairment is taken as cost on transition
date.
Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general
overhead expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition
are allocated and capitalised as a part of the cost of the PPE.
PPE 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 below).
Depreciation is recognised using straight line method so as to write off the cost of the assets (other than freehold land and
properties under construction) less their residual values over their useful lives specified in Schedule II to the Companies Act, 2013,
or in case of assets where the useful life was determined by technical evaluation, over the useful life so determined. Depreciation
method is reviewed at each financial year end to reflect expected pattern of consumption of the future economic benefits
embodied in the asset. The estimated useful life and residual values are also reviewed at each financial year end with the effect of
any change in the estimates of useful life/residual value is accounted on prospective basis.
Where cost of a part of the asset (“asset component”) is significant to total cost of the asset and useful life of that part is different
from the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is
depreciated over its separate useful life.
Depreciation for additions to/deductions from, owned assets is calculated pro rata to the period of use. Extra shift depreciation is
provided on a location basis at rates specified in Schedule II to the Companies Act, 2013.
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.
Assets acquired under finance leases are depreciated on a straight line basis over the lease term. Where there is reasonable
certainty that the Group 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 Group for
similar assets.
Freehold land is not depreciated.
(l)
Investment property
Properties (including those under construction) held to earn rentals and/or capital appreciation are classified as investment property
and are measured and reported at cost, including transaction costs.
For transition to Ind AS, the group has elected to adopt as deemed cost, the carrying value of investment property as per I-GAAP
less accumulated depreciation and cumulative impairment on the transition date of April 1, 2015. In respect of revalued assets, the
value as determined by valuers as reduced by accumulated depreciation and cumulative impairment is taken as cost on transition
date.
Depreciation is recognised using straight line method so as to write off the cost of the investment property less their residual
values over their useful lives specified in Schedule II to the Companies Act, 2013, or in the case of assets where the useful life was
determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year end
to reflect the expected pattern of consumption of the future benefits embodied in the investment property. The estimated useful
life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/
residual value is accounted on prospective basis. Freehold land and properties under construction are not depreciated.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and
no future economic benefits are expected from the disposal. Any gain or loss arising on de-recognition of property is recognised in
the Statement of Profit and Loss in the same period.
(m) Intangible assets
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow
to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty
credits availed, if any, less accumulated amortisation and cumulative impairment. Administrative and other general overhead
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Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of
the intangible assets.
Research and development expenditure on new products:
(i)
Expenditure on research is expensed under respective heads of account in the period in which it is incurred.
(ii) Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:
A.
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
B.
the Group has intention to complete the intangible asset and use or sell it;
C.
the Group has ability to use or sell the intangible asset;
D.
E.
the manner in which the probable future economic benefits will be generated including the existence of a market for
output of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
F.
the Group has ability to reliably measure the expenditure attributable to the intangible asset during its development.
Development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “intangible assets under
development”.
Intangible assets are amortised on straight line basis over the estimated useful life. The method of amortisation and useful life are
reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a prospective
basis. The estimated useful life for major categories of the intangible assets are as follows:
(i)
specialised software: over a period of three to ten years;
(ii)
technical know-how: over a period of three to seven years;
(iii) development costs for new products: over a period of five years;
(iv) customer contracts and relationships: over a period of the contract which generally is over seven to ten years;
(v)
intangible assets with indefinite useful life that are acquired separately are carried at cost less accumulated impairment losses;
(vi)
fare collection rights obtained in consideration for rendering construction services represent the right to collect fare during
the concession period in respect of Build-Operate-Transfer (BOT) projects undertaken by the Group. Fare collection rights are
capitalised as intangible asset upon completion of the project at the cumulative construction costs including related margins.
Till the completion of the project, the same is recognised as intangible assets under development. Fare collection rights are
amortised using the straight line method over the period of concession; and
(vii) 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
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.
Amortisation on impaired assets is provided by adjusting the amortisation charge in the remaining periods so as to allocate the
asset’s revised carrying amount over its remaining useful life.
(n)
Impairment of assets
As at the end of each accounting year, the Group reviews the carrying amounts of its PPE, investment property and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the
362
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
PPE, investment property and intangible assets are tested for impairment so as to determine the impairment loss, if any. Goodwill
and the intangible assets with indefinite life are tested for impairment each year.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is
determined:
(i)
in the case of an individual asset, at the higher of the net selling price and the value in use; and
(ii)
in the case of a cash generating unit (the smallest identifiable group of assets that generates independent cash flows), at the
higher of the cash generating unit’s net selling price and the value in use.
(The amount of value in use is determined as the present value of estimated future cash flows from the continuing use of an asset
and from its disposal at the end of its useful life. For this purpose, the discount rate (pre-tax) is determined based on the weighted
average cost of capital of the company suitably adjusted for risks specified to the estimated cash flows of the asset).
If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is
recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash
generating unit) is reduced to its recoverable amount. For this purpose, the impairment loss recognised in respect of a cash
generating unit is allocated first to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to
reduce the carrying amount of the other assets of the cash generating unit on a pro-rata basis.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit), except for allocated
goodwill, is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss is recognised for the asset (or cash generating unit)
in prior years. A reversal of an impairment loss (other than impairment loss allocated to goodwill) is recognised immediately in the
Statement of Profit and Loss.
(o) Employee benefits
(i)
Short term employee benefits:
Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia, and
performance linked rewards falling due wholly within twelve months of rendering the service are classified as short term
employee benefits and are expensed in the period in which the employee renders the related service.
(ii) Post-employment benefits:
A. Defined contribution plans: The Group’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.
B. Defined benefit plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board
of trustees established by the company, the post-retirement medical care plan and the Parent Company pension plan
represent defined benefit plans. The present value of the obligation under defined benefit plans is determined based on
actuarial valuation using the Projected Unit Credit Method.
The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market
yield on government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit
obligations at the Balance Sheet date.
Remeasurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised
in the Statement of Profit and Loss as employee benefit expenses. Interest cost implicit in defined benefit employee cost is
recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan
are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or
curtailment and when the Group recognises related restructuring costs or termination benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans
to recognise the obligation on a net basis.
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Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(iii) Long term employee benefits:
The obligation recognised in respect of long term benefits such as long term compensated absences, long service award etc.
is measured at present value of estimated future cash flows expected to be made by the Group and is recognised in a similar
manner as in the case of defined benefit plans vide (ii) B above.
Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
remeasurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefit
expenses. Interest cost implicit in long term employee benefit cost is recognised in the Statement of Profit and Loss under
finance cost.
(iv) Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised as expense when the
company’s offer of the termination benefit is accepted or when the Group recognises the related restructuring costs
whichever is earlier.
(p) 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. Power generation projects executed under long term Power Purchase Agreements (PPA) with state utilities that are in
substance finance leases are classified accordingly.
(i)
Finance leases:
A.
Leases where the Group has substantially transferred all the risks and rewards of ownership of the related assets are
classified as finance leases. Assets under finance lease are capitalised at the commencement 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.
B. 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.
(ii) Operating leases:
The leases which are not classified as finance lease are operating leases.
A.
Lease rentals on assets under operating lease are charged to the Statement of Profit and Loss on a straight line basis
over the term of the relevant lease.
B. Assets leased out under operating leases are continued to be shown under the respective class of assets. Rental income
is recognised on a straight line basis over the term of the relevant lease.
(Also refer to policy on depreciation, above)
(q)
Financial instruments
Financial assets and/or financial liabilities are recognised when the Group becomes party to a contract embodying the related
financial instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction
values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from, as the case may be, the fair value of such financial assets or liabilities on
initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or loss.
A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally
enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle
the liability simultaneously.
364
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(i)
Financial assets
A. All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets as follows:
1.
Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value
2. Other investments in debt instruments – at amortised cost, subject to following conditions:
•
•
The asset is held within a business model whose objective is to hold assets in order to collect contractual cash
flows; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
3. Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)
•
•
The asset is held within a business model whose objective is achieved both by collecting contractual cash flows
and selling financial assets; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
4. Debt instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in
profit or loss.
5.
6.
Investments in equity instruments are classified as FVTPL, unless the related instruments are not held for trading
and the Group irrevocably elects on initial recognition to present subsequent changes in fair value in other
comprehensive income.
The group has elected to measure the investments in associates and joint ventures held through unit trusts at
FVTPL.
B.
For financial assets that are measured at FVTOCI, income by way of interest, dividend and exchange difference, if any,
(on debt instrument) is recognised in profit or loss and changes in fair value (other than on account of such income) are
recognised in other comprehensive income and accumulated in other equity. On disposal of debt instruments at FVTOCI,
the cumulative gain or loss previously accumulated in other equity is reclassified to profit or loss. In case of equity
instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of investments.
C. A financial asset is primarily derecognised when:
1.
2.
the right to receive cash flows from the asset has expired, or
the group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a pass-through arrangement; and a) the
group has transferred substantially all the risks and rewards of the asset, or b) the group has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
On derecognition of a financial asset in its entirety, the difference between the carrying amount measured at the date of
derecognition and the consideration received is recognised in profit or loss.
D.
Impairment of financial assets: The Group recognises impairment loss on trade receivables using expected credit loss
model which involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted
under Ind AS 109.
In respect of financial services business, the Group applies a separate model of the expected credit loss for recognising
impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade
receivables and other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at
FVTPL as follows:
•
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the
weights. Credit loss is the difference between all contractual cash flows that are due to the Group in accordance with
the contract and all the cash flows that the Group expects to receive (i.e. all cash shortfalls), discounted at the original
effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial
assets). The Group estimates cash flows by considering all contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) through the expected life of that financial instrument.
365
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
•
The Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit
losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk
on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance
for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses
are portion of the lifetime expected credit losses and represent the lifetime cash shortfalls that will result if default occurs
within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12
months.
• When making the assessment of whether there has been a significant increase in credit risk since initial recognition,
the Group uses the change in the risk of a default occurring over the expected life of the financial instrument instead
of the change in the amount of expected credit losses. To make that assessment, the Group compares the risk of a
default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial
instrument as at the date of initial recognition and considers reasonable and supportable information, that is available
without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.
(ii)
Financial liabilities
A.
Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL
are subsequently measured at fair value. Financial guarantee contracts are subsequently measured the amount of
impairment loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher.
All other financial liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate
(EIR) method.
B. A financial liability is derecognised when the related obligation expires or is discharged or cancelled.
(iii) The Group designates certain hedging instruments such as derivatives, embedded derivatives and in respect of foreign
currency risk, certain non-derivatives as either fair value hedges, cash flow hedges, or hedges of net investments in foreign
operations. Hedges of foreign exchange risk on firm commitments are accounted as cash flow hedges.
A.
Fair value hedges: Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are
recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that
are attributable to the hedged risk. Hedge accounting is discontinued when the hedging instrument expires or is sold,
terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying
amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date.
B. Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of derivatives
that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in
equity as ‘hedging reserve’. The gain or loss relating to the ineffective portion is recognised immediately in profit or
loss. Amounts previously recognised in other comprehensive income and accumulated in equity relating to effective
portion are reclassified to profit or loss in the period when the hedged item affects profit or loss, in the same head as
the hedged item. The effective portion of the hedge is determined at the lower of the cumulative gain or loss on the
hedging instrument from inception of the hedge and the cumulative change in the fair value of the hedged item from
the inception of the hedge and the remaining gain or loss on the hedging instrument is treated as ineffective portion.
In case of time period related hedges, the forward element and the spot element of a forward contract is separated and
only the change in the value of the spot element of the forward contract is designated as the hedging instrument. Similarly,
wherever applicable, the foreign currency basis spread is separated from the financial instrument and is excluded from the
designation of that financial instrument as the hedging instrument in case of time period related hedges. The changes in the
fair value of the forward element of the forward contract or the foreign currency basis spread of the financial instrument is
accumulated in a separate component of equity as ‘cost of hedging’. The changes in the fair value of such forward element
or foreign currency basis spread are reclassified to profit or loss as a reclassification adjustment on a straight line basis over
the period of the forward contract or the financial instrument.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity
at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When
a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised immediately in
profit or loss.
366
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(iv) Compound financial instruments issued by the Group which can be converted into fixed number of equity shares at the
option of the holders irrespective of changes in the fair value of the instrument are accounted by separately recognising the
liability and the equity components. The liability component is initially recognised at the fair value of a comparable liability
that does not have an equity conversion option. The equity component is initially recognised at the difference between
the fair value of the compound financial instrument as a whole and the fair value of the liability component. The directly
attributable transaction costs are allocated to the liability and the equity components in proportion to their initial carrying
amounts.
Subsequent to initial recognition, the liability component of the compound financial instrument is measured at amortised
cost using the effective interest method. The equity component of a compound financial instrument is not remeasured
subsequently.
(r)
Inventories
Inventories are valued after providing for obsolescence, as under:
(i)
Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net
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.
(ii) 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.
(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net
realisable value. Cost includes related overheads and excise duty paid/payable on such goods.
(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically
identifiable cost or net realisable value.
Assessment of net realisable value is made in each subsequent period and when the circumstances that previously caused
inventories to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value
because of changed economic circumstances, the write-down, if any, in the past period is reversed to that extent of the original
amount written-down so that the resultant carrying amount is the lower of the cost and the revised net realisable value.
(s) 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 subject to more than insignificant risk of
change in value, are not included as part of cash and cash equivalents.
(t) Securities premium account
(i)
Securities premium includes:
A. The difference between the face value of the equity shares and the consideration received in respect of shares issued
pursuant to Stock Option Scheme.
B.
The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock
Options Scheme.
(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium account.
(u)
Borrowing Costs
Borrowing costs include interest expense calculated using the effective interest method, 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 net of any investment income from the temporary investment of related borrowings, that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time
the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time
to get ready for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.
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Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(v) Share-based payment arrangements
The stock options granted to employees pursuant to the Group’s Stock Options Schemes, are measured at the fair value of the
options at the grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over
the vesting period on a straight line basis. The amount recognised as expense in each year is arrived at based on the number of
grants expected to vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such
grant is transferred to the general reserve within equity.
(w) Foreign currencies
(i)
The functional currency and presentation currency of the Group is Indian Rupee. Functional currency of the Group and foreign
operations has been determined based on the primary economic environment in which the Group and its foreign operations
operate considering the currency in which funds are generated, spent and retained.
(ii) Transactions in currencies other than the Group’s functional currency are recorded on initial recognition using the exchange
rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the prevailing
closing spot rate. Non-monetary items that are measured in terms of historical cost in foreign currency are not retranslated.
Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet
date at the closing spot rate are recognised in the Statement of Profit and Loss in the period in which they arise except for:
A. exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings;
B.
exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
C. exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is
neither planned nor likely to occur (therefore forming part of the net investment in foreign operation), which are
recognised initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the
monetary items.
(iii) Financial statements of foreign operations whose functional currency is different than Indian Rupees are translated into Indian
Rupees as follows:
A. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;
B.
income and expenses for each income statement are translated at average exchange rates; and
C. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign
currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations. The
portion of foreign currency translation reserve attributed to non-controlling interest is reflected as part of non-controlling
interest.
(x) Accounting and reporting of information for Operating Segments
Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating
decision making body in the Group to make decisions for performance assessment and resource allocation. The reporting of
segment information is the same as provided to the management for the purpose of the performance assessment and resource
allocation to the segments.
Segment accounting policies are in line with the accounting policies of the Group. In addition, the following specific accounting
policies have been followed for segment reporting:
(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) Power Generation projects under Developmental Projects segment which are
classified as assets given on finance lease, the interest expenses on borrowings are accounted as segment expenses.
(iii) Most of the centrally incurred costs are allocated to segments mainly on the basis of their respective expected segment
revenue estimated at the beginning of the reported period.
368
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(iv)
Income which relates to the Group as a whole and not allocable to segments is included in “unallocable corporate income”.
(v) Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the
Group.
(vi) Segment assets and liabilities include those directly identifiable with the respective segments. In respect of (a) Financial
Services segment, and (b) Power Generation projects under Developmental Projects segment which are classified as assets
given on finance lease, segment liabilities include borrowings as the interest expenses on borrowings are accounted as
segment expenses in respect of the segment and projects. Investment in joint ventures and associates identified with a
particular segment are reported as part of the segment assets of those respective segments.
Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Group as a whole.
(vii) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [see Note 1(v) above] and is allocated to the segment.
(viii) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price which
are either determined to yield a desired margin or agreed on a negotiated basis
(y) Taxes on income
Tax on income for the current period is determined on the basis of taxable income (or on the basis of book profits wherever
minimum alternate tax is applicable) and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and
based on the expected outcome of assessments/appeals.
Dividend distribution tax paid on profits distributed by the subsidiary company during the period is treated as an item of expense
and recognised in the Statement of Profit and Loss. The dividend distribution tax paid in earlier years for which set off is available
against the tax liability arising out of the dividend distribution by the Parent Company is recognised as an item of income in the
period in which such set off is availed with corresponding effect in the equity to the extent of such set off. Both the recognition of
expense and income as aforesaid are separately disclosed in the Statement of Profit and Loss as provision/reversal of additional tax
on dividend distributed by subsidiaries.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Group’s financial
statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws
enacted or substantively enacted as on the Balance Sheet date.
Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated
with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Dividend distribution tax payable on profits of subsidiary companies which are proposed to be distributed in foreseeable future, is
recognised as deferred tax liability with corresponding effect in the Statement of Profit and Loss in the period in which such profits
are proposed to be so distributed. Such liability is reversed in the period in which the profits are distributed by the subsidiary
company.
Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits
will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits
will be available to allow all or part of the asset to be recovered.
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and
carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient
future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets in respect of
unutilised tax credits which mainly relate to minimum alternate tax are recognised to the extent it is probable of such unutilised tax
credits will get realised.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the Group expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along
with the tax as applicable.
369
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(z) Provisions, contingent liabilities and contingent assets
Provisions are recognised only when:
(i)
an entity has a present obligation (legal or constructive) as a result of a past event; and
(ii)
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
(iii) a reliable estimate can be made of the amount of the obligation
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money
is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
(i)
a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle
the obligation; and
(ii) a present obligation arising from past events, when no reliable estimate is possible.
Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received
under such contract, the present obligation under the contract is recognised and measured as a provision.
(aa) Commitments
Commitments are future liabilities for contractual expenditure, 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 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.
(ab) Non-current assets held for sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally
through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly
probable and is expected to qualify for recognition as a completed sale within one year from the date of classification.
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less
costs to sell.
(ac) Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method adjusting the net profit for the effects of:
i.
ii.
changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;
non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and
undistributed profits of associates and joint ventures; and
iii. all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available
for general use as on the date of Balance Sheet.
370
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(ad) Key sources of estimation
The preparation of financial statements in conformity with Ind AS requires that the management of the Group makes estimates
and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and
liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant
and equipment & intangible assets, allowance for doubtful debts/advances, future obligations in respect of retirement benefit
plans, expected cost of completion of contracts, provision for rectification costs, fair value measurement etc. Difference, if any,
between the actual results and estimates is recognised in the period in which the results are known.
(ae) First time adoption of Ind AS
The Group has prepared opening balance sheet as per Ind AS as of April 1, 2015 (transition date) by recognising all assets and
liabilities whose recognition is required by Ind AS, derecognising items of assets or liabilities which are not permitted to be
recognised by Ind AS, reclassifying items from I-GAAP to Ind AS as required, and applying Ind AS to measure the recognised assets
and liabilities. The exemptions availed by the Group are as follows:
(i)
(ii)
The Group has adopted the carrying value determined in accordance with I-GAAP for all of its property plant and equipment
and investment property as deemed cost of such assets at the transition date.
Ind AS 102 “Share-based Payment” has not been applied to equity instruments in share-based payment transactions that
vested before April 1,2015.
(iii) The Group has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions
occurring on or after April 1, 2015.
(iv) The Group has determined the classification of debt instruments in terms of whether they meet the amortised cost criteria or
the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.
(v) The Group has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it
has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at
the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date.
Further, as permitted by Ind AS 101, the Group has not undertaken an exhaustive search for information when determining,
at the date of transition to Ind ASs, whether there have been significant increases in credit risk since initial recognition,
(vi) The Group has elected not to apply Ind AS 103 Business Combinations retrospectively to past business combinations that
occurred before the transition date.
(vii) The Group has not elected the option to reset the cumulative translation differences on foreign operations that exist to zero
as of the transition date.
(viii) The estimates as at April 1, 2015 and at March 31, 2016 are consistent with those made for the same dates in accordance
with the I-GAAP.
371
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [2]
Property, plant and equipment and capital work-in-progress
Pursuant to
acquisition
of
subsidiaries
As at
1-4-2016
Cost
Foreign
currency
Additions
fluctuation Deductions
Pursuant to
acquisition
of
subsidiaries
As at
31-3-2017
Up to
31-3-2016
Depreciation
Impairment
Book value
v crore
For the
year
–
9.21
9.21
185.84
3.82
189.66
979.46
8.44
987.90
–
–
–
–
–
–
–
–
–
0.09
–
–
0.09
151.44
0.69
0.01
152.14
–
–
–
–
–
–
–
–
–
–
–
63.17
0.36
63.53
52.59
2.20
54.79
51.83
19.52
71.35
6.67
4.84
Foreign
currency
fluctuation Deductions
Up to
31-3-2017
Up to
31-3-2017
As at
31-3-2017
As at
31-3-2016
–
(0.05)
(0.05)
(0.98)
–
(0.98)
(3.22)
–
(3.22)
(0.15)
–
–
(0.15)
(0.22)
–
(0.22)
(0.30)
–
(0.30)
(0.21)
–
(0.21)
–
16.69
16.69
17.37
1.01
18.38
80.78
10.63
91.41
48.96
–
–
48.96
9.75
0.05
9.80
11.26
0.30
11.56
–
3.81
3.81
344.60
8.11
352.71
1747.01
8.28
1755.29
258.00
1.27
0.04
259.31
116.38
0.57
116.95
88.34
3.49
91.83
12.98
–
12.98
85.04
47.29
132.33
–
–
6.52
0.09
6.82
9.67
–
–
–
601.79
609.13
437.54
465.52
1046.67 1067.31
87.25
–
87.25
15.50
–
15.50
–
–
–
–
0.01
–
0.01
0.24
–
0.24
–
–
–
–
–
3289.60 3416.95
63.52
3349.47 3480.47
59.87
4898.28 5462.26
55.10
4932.15 5517.36
33.87
281.12
0.60
–
281.72
301.95
1.53
0.01
303.49
147.70
0.45
148.15
152.13
0.81
152.94
215.85
8.32
224.17
240.42
16.94
257.36
211.05
58.91
269.96
218.32
103.41
321.73
42.41
27.58
86.09
33.09
–
–
–
–
–
–
–
–
–
0.11
–
–
0.11
0.01
–
0.01
0.01
–
0.01
–
–
–
–
–
12.15
2.74
14.89
164.36
13.70
178.06
484.39
–
484.39
132.74
–
–
132.74
52.88
–
52.88
40.52
0.39
40.91
63.80
1.83
65.63
(1.46)
(0.53)
(1.99)
(11.79)
–
(11.79)
(22.00)
–
(22.00)
(1.34)
–
–
(1.34)
(0.74)
–
(0.74)
(1.16)
–
(1.16)
(1.22)
–
(1.22)
3.41
29.72
33.13
23.92
15.74
39.66
609.13
441.35
1050.48
3721.45
67.98
3789.43
112.64
23.10
135.74
6660.79
42.15
6702.94
48.97
0.24
–
49.21
9.76
0.05
9.81
15.05
1.01
16.06
539.12
1.87
0.04
541.03
264.09
1.02
265.11
304.43
11.81
316.24
–
11.34
11.34
177.11
5.30
182.41
851.55
10.47
862.02
155.58
0.58
0.03
156.19
63.18
0.26
63.44
47.31
1.59
48.90
30.01
26.81
56.82
296.09
106.20
402.29
46.40
27.77
74.17
–
–
–
–
43.53
0.32
49.23
37.25
6.67
4.92
–
–
–
0.13
4.97
4.97
9.94
979.44
–
(0.23)
(0.23)
(40.47)
–
3.12
46.97
387.40
1011.08
44.00
1141.56
14209.08
55.39
19.76
86.74
1485.21
–
–
–
0.09
56.08
6.20
73.79
1602.37
–
(0.14)
(0.14)
(5.27)
–
2.59
9.20
218.98
111.47
23.23
151.19
2863.42
–
–
–
950.72
899.61
1.61
20.77
990.37 1071.51
103.00 11242.66 12172.17
2118.19 1790.53
13360.85 13962.70
601.85
468.86
1070.71
3592.80
70.02
3662.82
6311.04
65.25
6376.29
456.58
2.11
0.04
458.73
221.70
1.07
222.77
280.11
12.43
292.54
263.52
131.18
394.70
92.76
37.57
1006.11
42.38
1178.82
13657.38
Class of assets
Land
Freehold
Taken on lease
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
Aircraft
Ships
Dredged channel and
Breakwater structures
Leasehold Improvements
Sub-total - Other assets
Total
Add: Capital work-in-progress
372
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [2] (contd.)
Class of assets
As at
Cost
Foreign
currency
1-4-2015 Additions
fluctuation Deductions
As at
31-3-2016
Up to
31-3-2015
Depreciation
Foreign
currency
For the
year
fluctuation Deductions
Impairment
Book value
v crore
Up to
31-3-2016
Up to
31-3-2016
As at
31-3-2016
As at
1-4-2015
Land
Freehold
Taken on lease
Sub total - Land
Buildings
Owned
Leased out
Sub total - Buildings
Plant & equipment
Owned
Leased out
Taken on lease
Sub total - Computers
Office equipment
Owned
Leased out
Leased out
5743.54 1026.74
4.88
Sub total - Plant & equipment 5813.68 1031.62
Computers
Owned
70.14
613.41
610.47
1223.88
4.01
11.79
15.80
0.49
0.66
1.15
601.79
16.12
154.05
468.87
170.17 1070.66
3374.35
36.26
3410.61
373.76
35.60
409.36
297.46
0.19
0.04
297.69
158.60
1.93
160.53
194.09
137.21
331.30
172.16
1.92
–
174.08
73.63
–
73.63
62.35
4.01
66.36
85.89
24.89
110.78
14.92
–
14.92
29.50
–
29.50
166.93 3596.10
66.76
172.03 3662.86
5.10
486.09 6313.69
65.89
495.22 6379.58
9.13
0.60
–
–
0.60
1.13
–
1.13
0.83
–
0.83
1.68
–
1.68
14.36
–
–
14.36
14.26
0.86
15.12
11.37
4.30
15.67
18.48
30.92
49.40
455.86
2.11
0.04
458.01
219.10
1.07
220.17
280.06
12.43
292.49
263.18
131.18
394.36
92.76
38.01
–
–
–
–
–
–
92.76
38.01
–
–
–
–
–
–
–
–
–
0.44
–
–
0.44
0.02
–
0.02
0.02
–
0.02
–
–
–
–
–
–
12.79
12.79
183.84
10.18
194.02
887.81
11.00
898.81
164.80
0.58
0.03
165.41
66.46
0.45
66.91
51.24
1.82
53.06
50.65
27.77
78.42
6.67
4.92
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.01)
–
(0.01)
–
–
–
–
–
–
–
–
–
1.45
1.45
6.68
4.93
11.61
36.58
0.21
36.79
9.66
–
–
9.66
3.29
0.19
3.48
3.95
0.23
4.18
4.25
–
4.25
–
11.34
11.34
177.16
5.25
182.41
851.23
10.79
862.02
155.58
0.58
0.03
156.19
63.18
0.26
63.44
47.31
1.59
48.90
46.40
27.77
74.17
–
–
6.67
4.92
0.84
2059.65
42.37
1.18
2191.60
43.21
13670.26 1924.84
– 1054.38 1006.11
42.37
1.18
–
– 1055.56 1179.25
49.81 1987.53 13657.38
–
–
–
79.44
20.94
111.97
0.48 1581.39
–
–
–
(0.01)
55.39
24.05
19.76
1.18
25.23
86.74
96.65 1485.21
Sub total - Office equipment
Furniture and fixtures
Owned
Leased out
228.25
12.72
Sub total - Furniture & fixtures 240.97
Vehicles
Owned
Leased out
Sub total - Vehicles
Other assets
Owned
Aircraft
Ships
Dredged channel and
Breakwater structures
Leasehold Improvements
Sub total - Other assets
Total
Add: Capital work-in-progress
Notes:
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
601.79 613.41
457.53 610.47
1059.32 1223.88
3418.94 3374.35
36.26
3480.45 3410.61
61.51
5462.46 5743.54
70.14
5517.56 5813.68
55.10
300.28 297.02
0.19
0.04
301.82 297.25
1.53
0.01
155.92 158.58
1.93
156.73 160.51
0.81
232.75 228.23
10.84
12.72
243.59 240.95
216.78 194.09
103.41 137.21
320.19 331.30
86.09
33.09
92.76
38.01
950.72 2059.65
–
1.18
22.61
–
–
1092.51 2191.60
– 12172.17 13669.78
1790.53 1452.66
13962.70 15122.44
(a) Carrying value of property, plant and equipment pledged as collateral for liabilities and/or commitments as at March 31, 2017
v1855.94 crore (v 1867.29 crore as at March 31, 2016; v 3354.87 crore as at April 1, 2015)
(b) Carrying value of property, plant and equipment having restriction on title as at March 31, 2017 v 2240.12 crore (v 2086.27 crore
as at March 31, 2016; v 3715.71 crore as at April 1, 2015)
(c) Cost of:
(i)
Freehold land includes:
•
v 2.30 crore (previous year: v 1.17 crore) for which conveyance is yet to be completed.
373
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [2] (contd.)
(ii)
Leasehold land includes:
•
•
•
•
v 258.85 crore (previous year: v 258.85 crore) taken on lease from M/s Tamilnadu Industrial Development Corporation
Limited (TIDCO) on various dates for development of port and shipyard.
v 0.35 crore (previous year: v 0.35 crore) representing 4.728 hectares of forest land in district Rudryaprayag, State of
Uttarakhand taken on lease for 30 years w.e.f. 10-9-2017.
v 0.63 crore (previous year: v 0.63 crore) representing 34.341 hectares of forest land in district Rudryaprayag, State of
Uttarakhand taken on lease for 30 years w.e.f. 24-9-2009.
v 71.45 crore (previous year: v 73.92 crore) added during the year in respect of which lease agreements are yet to be
executed.
(d) Cost of buildings includes ownership accommodation:
(i)
•
•
•
in various co-operative societies, shop-owners’ associations and non-trading corporation: v 88.09 crore (previous year:
v 86.92 crore), including 2550 (previous year: 2570) shares of v 50 each, 232 (previous year: 232) shares of v 100 each
and 1 (previous year: 1) share of v 250.
in proposed co-operative societies v 27.80 crore (previous year: v 0.53 crore).
in various co-operative societies and apartments and shop-owners’ associations: v 7.94 crore (previous year: v 14.60
crore), for which share certificate are yet to be issued.
(ii) of v 3.53 crore (previous year: v 3.86 crore) in respect of which the deed of conveyance is yet to be executed.
(iii) of v 8.48 crore (previous year: v 8.48 crore) representing undivided share in a property at a certain location.
(e) Depreciation for the year includes v 25.42 crore (previous year: v 27.58 crore) on account of obsolescence.
(f)
Impairment during the year and upto 31-3-2017 is R 111.86 crore out of which R 8.86 crore transferred to held for sale.
(g) Owned assets given on operating lease have been presented separately under respective class of assets as “Leased out” pursuant
to ”Indian Accounting Standard (Ind AS) 17 “Leases”.
(h) Cost as at April 1, 2016 and April 1, 2015 of individual assets has been reclassified, wherever necessary.
(i)
(j)
Amount transferred from property, plant & equipment to group(s) of assets classified as held for sale: v 70.21 crore (previous year:
v 1573.63 crore)
Range of useful life of property, plant and equipment is as below:
Sr.
no.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Leasehold land
Owned buildings
Leased out buildings
Owned plant and equipment
Leased out plant and equipment
Computers
Office equipment
Furniture and fixtures
Owned vehicles
10.
Leased out vehicles
11. Railway sidings
12. Aircraft
13.
Ships
14. Dredged channel
15. Breakwater structures
16.
Leasehold improvements
374
Class of assets
Minimum useful life
(in years)
Maximum useful life
(in years)
15
5
10
3
9
3
3
3
3
6
5
18
14
9
50
2
999
61
30
35
15
7
30
13
15
6
5
18
14
50
50
10
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [3]
Investment Property
Cost
Depreciation
v crore
Book Value
Class of assets
As at
1-4-2016
Additions
Foreign
currency
fluctuation
Land
Buildings
Total
58.41
141.85
200.26
–
42.72
42.72
(0.19)
–
(0.19)
Add: Capital work-in-progress
Transfer
from
inventories
and owner-
occupied
property
–
4.40
4.40
Deductions
As at
31-3-2017
Upto
31-3-2016
For the year
Foreign
currency
fluctuation
18.15
56.64
74.79
40.07
132.33
172.40
–
5.05
5.05
–
6.40
6.40
–
–
–
Transfer
from
inventories
and owner-
occupied
property
–
0.42
0.42
Deductions
Up to
31-3-2017
As at
31-3-2017
As at
31-3-2016
–
3.00
3.00
–
8.87
8.87
40.07
123.46
163.53
58.41
136.80
195.21
Cost
Depreciation
Class of assets
As at
1-4-2015
Additions
Foreign
currency
fluctuation
Land
Buildings
Total
73.41
279.98
353.39
–
–
–
0.55
–
0.55
Add: Capital work-in-progress
Transfer
from
inventories
and owner-
occupied
property
–
–
–
Deductions
As at
31-3-2016
Upto
31-3-2015
For the year
Foreign
currency
fluctuation
15.55
138.13
153.68
58.41
141.85
200.26
–
–
–
–
5.14
5.14
–
–
–
Transfer
from
inventories
and owner-
occupied
property
–
–
–
3266.19 4190.79
3429.72 4386.00
v crore
Book Value
Deductions
Up to
31-3-2016
As at
31-3-2016
As at
1-4-2015
–
0.09
0.09
–
5.05
5.05
58.41
136.80
195.21
73.41
279.98
353.39
4190.79 2415.31
4386.00 2768.70
Notes:
(a) Carrying value of Investment property pledged as collateral for liabilities and/or commitments and having restriction on title as at
March 31, 2017 v 0.16 crore (v 0.16 crore as at March 31, 2016; v 0.16 crore as at April 1, 2015)
(b) Useful life of building included in investment property: 20 to 60 years
(c) Amount recognised in the Statement of Profit and Loss for investment property:
Sr. no.
1.
2.
Rental income derived from investment property
Particulars
Direct operating expenses arising from investment property that generated rental
income
2016-17
74.82
2.57
v crore
2015-16
105.44
5.57
(d)
(e)
Fair value of investment property: v 5598.86 crore as at March 31, 2017 (v 6124.48 crore as at March 31, 2016; v 4397.36 crore
as at April 1, 2015).
The fair values of investment property have been determined with the help of internal architectural department and independent
valuer on a case to case basis. Fair value of property that are evaluated by independent valuer is amounted to v 4106.49 crore
(v 3569.51 crore as at March 31, 2016; v 2428.42 crore as at April 1, 2015). Valuation is based on government rates, market
research, marked trend and comparable values as considered appropriate.
(f)
Impairment during the year and upto 31-3-2017 is R 403.71 crore out of which R 270.22 crore pertained to assets disposed off.
375
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [4]
Goodwill
Class of assets
Goodwill on consolidation
Previous year
As at
1-4-2016 Additions*
2.83
1495.06
16.48
1585.08
Cost
Foreign
currency
fluctuation Deductions
6.52
(44.61)
4.95
As at
31-3-2017
1446.76
111.45 1495.06
Up to
31-3-2016
–
–
Amortisation
Foreign
currency
For the
year
–
–
fluctuation Deductions
–
–
–
–
Impairment
Book value
v crore
Up to
31-3-2017
–
–
Up to
31-3-2017
As at
As at
31-3-2016
31-3-2017
48.10 # 1398.66 1446.96
1446.96 1536.98
48.10
# Impairment upto 31-3-2017 v 48.10 crore, during the year v Nil.
* Refer Note 51(c)
NOTE [5]
Other Intangible assets and intangible assets under development
Class of assets
Specialised softwares
Technical know-how
New product design and development
Customer contracts and relationship
Total
Pursuant to
acquisition
of
subsidiaries
0.01
–
–
–
0.01
As at
1-4-2016
1069.50
46.22
164.78
137.57
1418.07
Cost
Foreign
currency
Additions
68.94
20.93
7.86
0.29
98.02
fluctuation Deductions
133.65
2.18
–
–
135.83
(16.50)
(0.06)
(7.83)
(6.13)
(30.52)
Pursuant to
acquisition
of
Amortisation
Foreign
currency
subsidiaries For the year
157.69
8.19
27.72
15.01
208.61
–
–
–
–
–
fluctuation Deductions
132.29
2.18
–
–
134.47
(11.60)
(0.06)
(3.31)
(3.51)
(18.48)
As at
31-3-2017
988.30
64.91
164.81
131.73
1349.75
Up to
31-3-2016
721.74
29.40
48.91
61.45
861.50
Add: Intangible assets under development
Class of assets
Specialised softwares
Technical know-how
New product design and development
Customer contracts and relationship
Total
Cost
Pursuant to
acquisition
of
subsidiaries Additions
97.96
–
3.94
–
77.89
–
–
–
179.79
–
As at
1-4-2015
963.43
42.18
86.60
131.24
1223.45
Foreign
currency
fluctuation Deductions
5.65
–
0.45
–
6.10
13.76
0.10
0.74
6.33
20.93
As at
31-3-2016
1069.50
46.22
164.78
137.57
1418.07
Up to
1-4-2015
557.10
23.30
30.24
44.34
654.98
Pursuant to
acquisition
of
Amortisation
Foreign
currency
subsidiaries For the year
160.71
6.00
18.84
14.85
200.40
–
–
–
–
–
fluctuation Deductions
3.54
–
0.40
–
3.94
7.47
0.10
0.23
2.26
10.06
Add: Intangible assets under development
v crore
Book value
Up to
31-3-2017
735.54
35.35
73.32
72.95
917.16
As at
31-3-2017
252.76
29.56
91.49
58.78
432.59
As at
31-3-2016
347.76
16.82
115.87
76.12
556.57
11353.23
11785.82
9183.92
9740.49
v crore
Book value
Up to
31-3-2016
721.74
29.40
48.91
61.45
861.50
As at
31-3-2016
347.76
16.82
115.87
76.12
556.57
As at
1-4-2015
406.33
18.88
56.36
86.90
568.47
9183.92 6473.66
9740.49 7042.13
Addition to other intangible assets include internally developed: v 34.99 crore (previous year: v 102.50 crore)
Notes:
(a) Borrowing cost capitalised in accordance with Indian Accounting Standard (Ind AS) 23 “Borrowing Costs” is as follows:
Class of assets
Buildings (owned)
Investment Property
Capital work-in-progress (PPE)
Intangible assets under development
Total
(b) The average capitalization rate for borrowing cost is 10.26%. (previous year: 9.42%)
2016-17
3.63
137.01
92.82
784.79
1018.25
v crore
2015-16
3.13
285.09
414.92
507.46
1210.60
376
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [6]
Financial assets: Other Investments - non-current
Particulars
Equity instruments
Preference shares
Government or trust securities
Debentures or bonds
Mutual funds
Security receipts
Units of fund
NOTE [7]
Financial assets: Loans - non-current
Particulars
Unsecured security deposits, considered good
Unsecured security deposits, doubtful:
Less: Provision for doubtful security deposits
Secured long term loans to related parties [KMPs]
Unsecured long term loans to related parties:
Associates companies:
Advances
Joint Ventures:
Inter-corporate deposits
Amount receivable
Other secured loans, considered good:
Loans against mortgage of house property
Other inter-corporate deposits
Other unsecured loans, considered good:
Advance recoverable in cash
Other loans unsecured, doubtful:
Doubtful other loans and advances
Less: Provision for doubtful advances
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
600.03
70.88
–
1875.64
17.06
505.27
111.86
3180.74
v crore
482.53
157.62
213.98
1229.82
13.77
196.37
32.92
2327.01
v crore
348.79
172.36
179.97
941.54
1.69
218.15
25.89
1888.39
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
0.45
0.45
v crore
156.93
–
–
v crore
205.03
v crore
0.45
0.45
v crore
0.45
0.45
–
–
v crore
210.01
–
0.01
18.40
18.79
17.73
18.40
18.79
17.73
1167.22
130.41
779.72
32.79
572.71
–
1297.63
812.51
572.71
0.74
–
2.29
2.29
0.74
0.12
1.24
–
3.19
3.19
1.24
0.08
2.36
3.00
5.29
5.29
5.36
0.61
–
1473.82
–
1037.65
–
806.43
377
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [8]
Financial assets: Loans towards financing activities - non-current
Particulars
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
v crore
v crore
30984.17
44.36
4044.53
2488.74
37561.80
2488.74
2125.74
9229.02
706.04
–
12060.80
–
31672.86
32.46
4112.53
1264.32
37082.17
1264.32
27650.61
68.31
2697.50
1163.76
31580.18
1163.76
35073.06
35817.85
30416.42
2096.48
9512.46
461.48
10.36
12080.78
10.36
1382.01
9339.95
293.22
13.55
11028.73
13.55
12060.80
47133.86
12070.42
47888.27
11015.18
41431.60
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
223.56
1.68
494.58
10.74
44.56
775.12
v crore
98.18
5.33
411.39
4.81
43.84
563.55
v crore
75.59
2.88
378.15
6.39
17.59
480.60
Secured loans:
Considered good:
Term loans
Finance lease
Debentures
Considered doubtful:
Term loans
Less: Allowance for expected credit losses
Unsecured loans:
Considered good:
Term loans
Finance lease
Debentures
Considered doubtful:
Term loans
Less: Allowance for expected credit losses
NOTE [9]
Other financial assets - non-current
Particulars
Cash and bank balances not available for
immediate use
Fixed deposits with banks
(maturity more than 12 months)
Forward contract receivables
Embedded derivative receivables
Other receivables
378
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [10]
Other non-current assets
Particulars
Capital advances:
Secured
Unsecured
Advance recoverable other than in cash
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
v crore
v crore
26.47
146.42
30.53
217.54
30.89
265.20
172.89
3065.27
3238.16
248.07
2489.12
2737.19
296.09
2098.91
2395.00
NOTE [11]
Inventories (at cost or net realisable value whichever is lower)
Particulars
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
Raw materials [includes goods-in-transit v 38.52 crore
(as at 31-3-2016: v 45.88 crore, as at 1-4-2015:
v 42.58 crore)]
Components [includes goods-in-transit v 23.72 crore
(as at 31-3-2016: v 14.68 crore, as at 1-4-2015:
v 24.00 crore)]
Construction materials [includes goods-in-transit
v 55.70 crore (as at 31-3-2016: v 113.43 crore, as
at 1-4-2015: v 75.60 crore)]
Manufacturing work-in-progress
Finished goods
Stock-in-trade (in respect of goods acquired for
trading) [includes goods-in-transit v 18.77 crore
(as at 31-3-2016: v 34.82 crore, as at 1-4-2015:
v 36.02 crore)]
Stores and spares [includes goods-in-transit v 5.09
crore (as at 31-3-2016: v 3.05 crore, as at 1-4-2015:
v 7.56 crore)]
Loose tools [includes goods-in-transit v 0.09 crore
(as at 31-3-2016: v 0.04 crore, as at 1-4-2015:
v 0.05 crore)]
Property development projects (including land)
576.51
842.45
998.81
518.24
527.53
588.15
164.03
828.36
340.82
261.58
886.41
284.99
265.93
1098.15
403.10
188.59
179.99
178.02
248.34
363.70
305.60
15.09
1259.76
4139.74
18.35
1489.21
4854.21
14.20
2129.20
5981.16
Note: During the year R 746.21 crore (previous year: R 41.80 crore) was recognised as expense towards write-down of inventory.
379
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [12]
Financial Assets: Investments - current
Particulars
Equity shares
Government and trust securities
Debentures and bonds
Mutual funds
Preference shares
Other investments
NOTE [13]
Financial assets - current: Trade receivables
Particulars
Secured, considered good
Unsecured:
Considered good
Considered doubtful
Less: Allowance for doubtful debts
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
199.17
780.10
2592.27
10227.85
–
–
13799.39
v crore
43.30
1078.36
1506.31
4847.73
–
18.49
7494.19
v crore
51.15
1511.23
1370.71
4347.17
50.36
23.19
7353.81
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
17.84
v crore
v crore
4.84
v crore
v crore
8.46
27951.76
2465.29
30417.05
2465.29
26020.14
1961.09
27981.23
1961.09
22245.97
1311.52
23557.49
1311.52
27951.76
27969.60
26020.14
26024.98
22245.97
22254.43
NOTE [14]
Financial assets - Cash and cash equivalents
Particulars
Balance with banks
Cheques and drafts on hand
Cash on hand
Fixed deposits with banks (maturity less than 3 months)
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
2905.51
571.85
64.48
251.49
3793.33
v crore
2942.75
543.40
35.09
285.30
3806.54
v crore
3339.18
271.16
113.10
689.13
4412.57
380
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [15]
Financial assets - current: Other bank balances
Particulars
Fixed deposits with banks
Earmarked balances with banks - unclaimed dividend
Earmarked balances with banks-others
Cash and bank balances not available for immediate
use including margin money deposits
NOTE [16]
Financial assets: Loans - current
Particulars
Unsecured security deposits, considered good
Unsecured security deposits, doubtful
Less: Provision for doubtful security deposits
Unsecured long term loans to related parties:
Associates companies:
Advances
Joint Ventures:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
1557.59
46.92
–
174.65
1779.16
v crore
1328.46
39.39
17.40
198.12
1583.37
v crore
435.77
33.59
10.59
216.90
696.85
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
3.74
3.74
–
v crore
462.01
–
–
v crore
3.44
3.44
–
v crore
469.31
–
–
v crore
5.70
5.70
3.68
v crore
428.01
–
3.68
Inter-corporate deposits
18.20
105.04
39.51
Other secured loans, considered good:
Loans against mortgage of house property
Other inter-corporate deposits
0.31
–
0.85
75.62
0.89
70.00
18.20
105.04
39.51
Other unsecured loans, considered good:
Others
0.31
76.47
70.89
0.32
480.84
0.32
651.14
0.55
542.64
381
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [17]
Financial assets - current: Loans towards financing activities
Particulars
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
v crore
v crore
Secured loans:
Considered good:
Term loans
Finance lease
Debentures
Considered doubtful:
Term loans
Less: Allowance for expected credit losses
Unsecured loans:
Considered good:
Term loans
Finance lease
Debentures
NOTE [18]
Other current financial assets
Particulars
Inter-corporate deposits - unsecured
Advances to related parties:
Associate companies
Joint venture companies
Advances recoverable in cash
Premium receivable on financial guarantee contracts
Embedded derivative receivables
Doubtful advances:
Deferred credit sale of ships
Other loan and advances
Less: Allowance for doubtful loan and advances
Billed interest and other receivable
18212.95
25.85
1052.12
0.14
19291.06
0.14
5325.67
303.81
6.98
13736.23
46.30
176.80
86.74
14046.07
86.74
10678.00
65.00
96.03
5.95
10844.98
5.95
19290.92
13959.33
10839.03
4424.99
303.79
18.23
3222.72
220.27
40.00
5636.46
24927.38
4747.01
18706.34
3482.99
14322.02
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
20.01
v crore
v crore
–
7.87
129.37
7.78
102.50
137.24
2348.04
1.06
197.23
110.28
2018.62
0.43
144.41
26.97
170.78
197.75
197.75
27.55
177.01
204.56
204.56
v crore
–
95.37
1916.58
0.43
61.44
v crore
21.02
74.35
25.99
179.01
205.00
205.00
–
–
2703.58
–
24.93
2298.67
–
55.15
2128.97
382
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [19]
Other current assets
Particulars
Due from customers (construction and project related
activity) [Note 44(a)]
Due from customers (property development activity)
[Note 44(d)]
Unbilled revenue (including retention money)
Unamortised expenses
Accrual of fee income
Balance with customs, port trust etc.
Advance recoverable other than in cash
Government grant receivable
Others
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
23751.38
24975.43
22723.51
91.05
11023.56
10.13
0.16
199.55
4484.40
45.57
760.31
178.73
9546.85
2.94
1.71
175.81
5216.09
45.57
310.52
129.94
7461.44
2.99
2.13
216.80
4249.90
49.73
136.47
40366.11
40453.65
34972.91
NOTE [20]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:
Particulars
Authorised:
Equity shares of v 2 each
Issued, subscribed and fully paid up:
Equity shares of v 2 each
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Number of
shares
v crore
Number of
shares
v crore
Number of
shares
v crore
1,62,50,00,000
325.00
1,62,50,00,000
325.00 1,62,50,00,000
325.00
93,29,65,803
186.59
93,14,78,845
186.30
92,95,62,061
185.91
(b) Reconciliation of the number of equity shares and share capital:
Particulars
2016-17
2015-16
Number of
shares
v crore
Number of
shares
v crore
Issued, subscribed and fully paid up equity share outstanding at the
beginning of the year
93,14,78,845
186.30
92,95,62,061
185.91
Add: Shares issued on exercise of employee stock options during the
year
14,86,958
0.29
19,16,784
0.39
Issued, subscribed and fully paid up equity shares outstanding at the
end of the year
93,29,65,803
186.59
93,14,78,845
186.30
(c) Terms/rights attached to equity shares:
The Company has only one class of share capital, i.e., equity shares having face value of v 2 per share. Each holder of equity share
is entitled to one vote per share.
383
Notes forming part of the Consolidated Financial Statements (contd.)
(d) Shareholder 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 of India
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Number of
shares
Shareholding
%
Number of
shares
Shareholding
%
Number of
shares
Shareholding
%
14,64,24,938
15.69
14,64,19,088
15.72 15,55,22,285
11,47,52,281
12.30
11,47,52,281
12.32 11,16,06,174
16.73
12.01
6,11,02,860
6.55
7,59,26,462
8.15
7,59,25,962
8.17
(e) Shares reserved for issue under options outstanding as at the end of the year on un-issued share capital:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Particulars
Number of
equity shares
to be issued as
fully paid
v crore
(at face value)
Number of
equity shares
to be issued as
fully paid
v crore
(at face value)
Number of
equity shares
to be issued as
fully paid
v crore
(at face value)
Employee stock options
granted and outstanding #
42,47,360
0.85 *
57,93,042
1.16 *
77,08,842
1.54 *
0.675% 5 years & 1 day
US$ denominated foreign
currency convertible bonds
(FCCB)
63,46,986
1.27 **
63,46,986
1.27 **
63,46,986
1.27 **
*
**
The equity shares will be issued at a premium of v 146.71 crore (previous year: v 203.97 crore)
The equity shares will be issued at a premium of v 1215.13 crore (previous year: v 1215.13 crore) on the exercise of options
by the bond holders
#
Note 20(h) for terms of employee stock option schemes
(f) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended
March 31, 2017 are 30,82,94,576 (previous period of five years ended March 31, 2016: 30,82,94,576 shares)
(g)
The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately
preceding last five years ended on March 31, 2017 – Nil (previous period of five years ended March 31, 2016: Nil)
(h) Stock option schemes of Parent Company
(i)
Terms:
•
•
The grant of options to the employees under the stock option schemes is on the basis of their performance and other
eligibility criteria. The options are vested equally over a period of 4 years [5 years in the case of series 2006(A)], subject
to the discretion of the management and fulfillment of certain conditions.
Options can be exercised anytime within a period of 7 years from the date of grant and would be settled by way of issue
of equity shares. Management has discretion to modify the exercise period.
(ii) The details of the grants under the aforesaid schemes under various series are summarized below:
Sr.
no.
1
2
3
4
5
6
Series reference
Grant price - (v)
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
2000
2002 (A)
2002 (B)
2003 ( A)
2003(B)
2006
2006(A)
2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
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
25,200
25,200
32,250
32,250
59,550
59,550
47,178
47,178 5,26,919 5,85,284 2,57,366 3,04,656 48,44,579 66,54,724
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
41,662
40,611
35,747
11,270 4,54,865 4,42,400
89,100 1,50,400
–
– 3,84,450 3,44,865
384
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
Sr.
no.
7
8
9
Series reference
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)
2000
2002 (A)
2002 (B)
2003 ( A)
2003(B)
2006
2006(A)
2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
12,000
–
–
–
–
–
–
– 1,47,226 1,68,154
45,035
36,020 12,82,697 17,12,610
13,200
25,200
32,250
32,250
59,550
59,550
47,178
47,178 4,27,131 5,26,919 1,76,584 2,57,366 34,91,467 48,44,579
13,200
25,200
32,250
32,250
59,550
59,550
47,178
47,178
75,692
96,458 1,76,584 2,57,366 17,46,787 23,34,008
–
–
–
–
–
–
–
– 3,51,439 4,30,461
–
– 17,44,680 25,10,571
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
4.98
5.18
Nil
Nil
3.48
3.61
(iii) The number and weighted average exercise price of stock options are as follows:
Particulars
(A) Options granted and outstanding at the beginning of the year
(B) Options granted during the year
(C) Options allotted during the year
(D) Options lapsed during the year
(E) Options granted and outstanding at the end of the year
(F) Options exercisable at the end of the year out of (E) supra
2016-17
2015-16
No. of stock
options
57,93,042
4,73,550
14,86,958
5,32,274
42,47,360
21,51,241
Weighted
average
exercise price
(v)
354.10
327.51
358.97
370.25
347.41
359.04
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
(v)
362.74
282.57
366.57
368.74
354.10
364.76
(iv) Weighted average share price at the date of exercise for stock options exercised during the year is v1386.19 (previous year:
v 1543.13) per share.
(v)
In respect of stock options granted pursuant to the Company’s stock options schemes, the fair value of the options is treated
as discount and accounted as employee compensation over the vesting period.
(vi) Weighted average fair values of options granted during the year is v 1056.73 (previous year: v 965.39) per option
(vii) 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.
(A) Weighted average risk-free interest rate
(B) Weighted average expected life of options
(C) Weighted average expected volatility
(D) Weighted average expected dividends over the life of the option
(E) Weighted average share price
(F) Weighted average exercise price
(G) Method used to determine expected volatility
2016-17
2015-16
6.72%
4.08 years
30.79%
v 74.52 per option
v 1355.66 per option
v 327.51 per share
7.66%
3.86 years
30.52%
v 62.69 per option
v 1211.45 per option
v 282.57 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.
(viii) The balance in share options (net) account as on March 31, 2017 is v 177.25 crore (previous year: v 242.23 crore), including
v 117.36 crore (previous year: v 155.87 crore) for which the options have been vested to employees as on March 31, 2017.
(i) During the year ended March 31, 2017, the Company paid the final dividend of v 18.25 per equity share for the year ended March
31, 2016.
385
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
The Board of Directors has recommended for approval of shareholders, the issue of bonus equity shares in the ratio of 1:2
(one bonus equity share of R 2 each for every 2 equity shares of R 2 each held). On May 29, 2017, the Board of Directors has
recommended the final dividend of v 21.00 per equity share on the pre-bonus share capital for the year ended March 31, 2017
subject to approval from shareholders. On approval, the total dividend payment based on number of shares outstanding as on
March 31, 2017 is expected to be v 1959.23 crore and the payment of dividend distribution tax is expected to be v 398.85 crore.
(j) Capital Management
The Group continues its policy of a conservative capital structure which has ensured that it retains the highest credit rating even
amidst an adverse economic environment. Low gearing levels also equip the Group 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. The gross debt equity ratio is 1.75:1 (as at 31-3-2016: 1.87:1 and as at
1-4-2015: 1.78:1).
(i)
(k) Stock ownership scheme of subsidiary companies:
Larsen & Toubro Infotech Limited
Employee Stock Ownership Scheme (‘ESOS Plan’)
(A)
The grant of options to the employees under ESOS Plan is on the basis of their performance and other eligibility criteria.
Sr.
no.
ESOP Series
i
ii
Grant Price
Grant Dates
ESOP scheme 2000
I,II & III
ESOP scheme 2000
IV - XXI
U.S. Stock Option
Sub-plan 2006
2016-17
v 5
2015-16
v 5
2016-17
v 2
2015-16
v 2
2016-17
USD 2.4
2015-16
USD 2.4
1 April 2001 onwards
1 October 2001
onwards
15 March 2007
onwards
iii
Vesting commences on
1 April 2002 onwards
1 October 2002
onwards
15 March 2008
onwards
ESOP
scheme
2015
2016-17
v 1
10 June
2016
onwards
10 June
2017
onwards
iv
Options granted and outstanding at the
beginning of the year
Options reinstated during the year
Options granted during the year
Options allotted during the year
v
vi
vii
viii Options lapsed/cancelled during the year
Options granted and outstanding at the
ix
–
–
82,660 19,65,015 23,50,106 93,67,335 1,43,650
–
–
17,650
79,000
4,54,580
–
11,830 18,51,855 7,25,445 64,07,483
34,000 1,73,936 10,64,326
34,110
3,500
–
–
–
–
4,50,500
–
–
– 36,58,000
–
61,700
3,06,850
–
end of the year
36,720
82,660 14,50,725 23,50,106
47,000
1,43,650 35,96,300
x
xi
Options vested at the end of the year
out of (ix)
Options unvested at the end of the year
out of (ix)
xii Weighted average remaining contractual
life of options (in years)
36,720
82,660 2,23,760
3,40,666
47,000
1,43,650
–
–
–
– 12,26,965 20,09,440
–
1.7
2.7
–
–
– 35,96,300
–
6.2
The number and weighted average exercise price of stock options are as follows:
Sr.
no.
Particulars
i
Options granted and outstanding at the beginning
of the year
ii Options reinstated during the year
iii Options granted during the year
iv Options allotted during the year
v Options lapsed/cancelled during the year
vi Options granted and outstanding at the end of
the year
2016-17
2015-16
No. of stock
options
Weighted
average
exercise price
No. of stock
options
25,76,416
11.14 1,14,76,000
Weighted
average
exercise price
8.70
–
35,96,300
7,54,925
3,48,746
51,30,745
–
1.00
5.64
36.92
2.73
4,58,080
–
29,16,181
64,41,483
25,76,416
2.02
–
8.46
2.09
11.14
43.51
vii Options vested at the end of the year out of (vi)
3,07,480
25.84
5,66,976
386
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(B) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five
years ended 31-3-2017 are Nil (previous period of five years ended 31-3-2016 - Nil)
(C) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in
immediately preceding five years ended 31-3-2017 – Nil (previous period of five years ended 31-3-2016 - Nil)
Weighted average share price at the date of exercise for stock options exercised during the year is v 621 per share.
(D)
(E) Weighted average fair value of options granted during the year is v 407.39.
(F) The fair value has been calculated using the Black-Scholes Option Pricing model and significant assumptions and inputs
to estimate the fair value options granted during the year are as follows:
Sr. no.
i
ii
iii
iv
v
vi
vii
Particulars
Weighted average risk-free interest rate
Weighted average expected life of options
Weighted average expected volatility
Weighted average expected dividends over the life of option
Weighted average share price
Weighted average exercise price
Method used to determine expected volatility
2016-17
7.10%
3 years
19.23%
v 115.56
v 407.74
v 1
The expected volatility has been calculated
entirely based on historic volatility IT Index, as
historical data of the Company is not available
being an unlisted company.
(ii)
L& T Technology Services Limited
(A) Employee stock option plan (ESOP)
The establishment of the ESOP scheme, 2016 was done pursuant to the resolutions passed by the Board and the
Shareholders on January 21, 2016 for issue of options to eligible employees which may result in issue of not more
than 60,00,000 equity shares. In terms of the ESOP Scheme, 2016, the Company can grant options aggregating to
not more than 8.0% of the paid up equity share capital of the Company as on April 1, 2016. The eligible employees
include permanent employees (including executive directors and non-executive directors, but excluding the independent
directors) of the Company, its subsidiaries, or holding company. However, unless otherwise decided by the Board, in the
event the subsidiaries or the holding company have implemented a stock option scheme, the employees of such entities
will not be eligible for grant of options under the ESOP Scheme, 2016. Further, the employees (i) holding 10.0% of the
outstanding share capital of the Company at any time after the commencement of the ESOP Scheme, 2016, or (ii) who
are promoters or persons belonging to promoter group, or directors, who either by themselves or through their relatives
or any body corporate, directly or indirectly, hold more than 10.0% of the outstanding equity shares of the Company,
will not be eligible for grant of options under the ESOP Scheme, 2016
The objective of the ESOP Scheme, 2016 is to reward those employees who contribute significantly to the Company’s
profitability and shareholder’s value as well as encourage improvement in performance and retention of talent.
The vesting of options granted under the ESOP Scheme, 2016 will commence one year after the date of grant of options
at the rate of 20.0% of options granted each year, or at such other rates as may be fixed by the Board and may extend
up to five years from the date of grant of options, unless otherwise varied in accordance with the employee stock option
rules to be framed under the ESOP Scheme, 2016. The exercise period for the options granted under the ESOP Scheme,
2016 would be seven years from the date of grant of options or six years from the date of first vesting or three years
from the date of retirement/death, whichever is earlier, subject to any change as may be approved by the Board. The
exercise price may be decided by the Board, in such manner, during such period, in one or more tranches and on such
terms and conditions as it may deem fit, provided that the exercise price per option shall not be less than the par value
of the equity share of our Company and shall not be more than the market price as defined in the SEBI ESOP Regulations
and shall be subject to compliance with accounting policies under the ESOP Regulations. The number of shares to be
allotted on exercise of options should not exceed the total number of unexercised vested options that may be exercised
by the employee.
Further, on resignation / termination of the eligible employees, only the vested options would be exercisable. All other
grants if unvested for any reason whatsoever shall be deemed lapsed. Such eligible employee is required to exercise
the options within a period of 90 days from the last date of employment or such other period as may be decided by
the Board at the time of such separation. In the event an eligible employee retires or is permanently incapacitated, all
unvested options will vest in the said employee immediately. The eligible employee has to exercise options within a
period of three years from the date of retirement or the date of permanent incapacitation, as the case may be, or such
387
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
other period as may be decided by the Board. In case of voluntary or pre-mature retirement, the eligible employee will
exercise only the vested options within 180 days from the last date of employment. All other unvested options will lapse.
However, the Board will have the discretion to vest the unvested options in deserving cases and where the employee
has crossed the age of 55 years. The retiring age for non-executive directors shall be 75 years or as may be decided by
Board and on attainment of which, all the unvested options of the non-executive directors shall be vested with them
immediately. In event of death of the eligible employee, unvested options shall be vested immediately in the nominees
or legal heirs, as the case may be, and in the event of death of any of the nominees, his share shall vest in the surviving
nominees or legal heirs, pro-rata
31-03-2017
Particulars
Opening balance
Granted during the year
Exercised during the year
Lapsed during the year
Forfeited during the year
Closing balance
Vested and exercisable
No options expired during the periods covered in the above table
Shares options outstanding at the end of the year have the following expiry date and exercise prices.
Average exercise
price per share
option (v)
–
2.00
–
–
–
–
–
Number of options
–
41,45,000
–
1,65,000
–
39,80,000
–
Grant date
Share options
31-03-2017
20,00,000
28-07-2016
19,80,000
27-08-2016
Total
39,80,000
Options granted on July 28, 2016 includes 15,00,000 and 5,00,000 options allotted to non-executive directors and key
managerial personnel respectively.
Exercise price
(v)
2.00
2.00
27-07-2023
26-08-2023
Expiry date
Options granted on August 28, 2016 includes 50,000 options allotted to key managerial personnel.
Weighted average remaining contractual life of options outstanding at the end of period is 2.32 years
(B) Fair value of options granted:
The fair value at grant date of options granted during the year ended 31-03-2017 was v 281.00 (31-03-2016 - v Nil).
The fair value of grant date is determined using the Black-Scholes Model which takes into account the exercise price,
term of option, share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option.
The model inputs for options granted during the year ended 31-03-2017 included:
Sr. No.
i
ii
iii
iv
v
vi
vii
viii
Particulars
Weighted average exercise price*
Grant date
Expiry date
Weighted average share price at grant date #
Weighted average expected price volatility of company’s share
Weighted average expected dividend yield over life of option
Weighted average risk-free interest
Method used to determine expected volatility
2016-17
v 2.00
28-07-2016 and 27-08-2016
27-07-2023 and 26-08-2023
v 281.00
25.17%
18.5%
6.95%
The expected price volatility is based on the
historic volatility (based on the remaining life of
the options), adjusted for any expected changes to
future volatility due to publicly available information.
* The first vesting is due on 27-07-2017.
# As the Company was not listed on the date of grant, price at grant date has been taken as per the valuation done by a
category 1 merchant banker.
388
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(iii) L&T Finance Holdings Limited
(A)
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 fulfilment 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 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.
(B) The details of the grants are summarised below:
Sr.
no.
Series reference
1 Grant Price (v)
2 Options granted and outstanding at the beginning
Scheme 2010
Scheme 2013
2016-17
2015-16
2016-17
2015-16
44.20
Market Price
of the year
61,08,998
68,02,519 2,35,50,000 2,63,50,000
3 Options granted during the year
6,50,000
9,00,000 1,16,40,000
–
4 Options cancelled/ lapsed during the year
21,36,393
3,17,841 1,08,77,500
28,00,000
5 Options exercised and shares allotted during the year
18,03,810
12,75,680
5,19,500
–
6 Options granted and outstanding at the end of the
year
of which
Options vested
Options yet to vest
28,18,795
61,08,998 2,37,93,000 2,35,50,000
15,76,795
40,95,548
23,90,500
–
12,42,000
20,13,450 2,14,02,500 2,35,50,000
7 Weighted average remaining contractual life of
options (in years)
5.05
5.40
6.29
6.56
(C) Weighted average fair values of options granted during the year is v 27.24 (previous year: v 32.02) per options.
(D) 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
2016-17
2015-16
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)
f)
g)
Weighted average share price
Weighted average exercise price
Method used to determine expected volatility
7.49%
3.98 years
32.53%
7.52%
3.68 years
31.78%
v 2.94 per option
v 3.19 per option
v 75.53 per option v 65.73 per option
v 73.70 per option v 44.20 per option
Expected volatility is based on the
historical volatility of the Company’s
shares price applicable to the expected
life of each option.
389
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [21]
Other equity
Particulars
Equity component of foreign currency convertible
bonds [Note 63(J)]
Capital reserve [Note 1(g)]
Capital reserve
Capital reserve on consolidation
Securities premium account [Note 1(t)]
Employee share options (net) [Note 1(v)]
Employee share options outstanding
Deferred employee compensation expense
Statutory reserves
Debenture redemption reserve ^
Reserve u/s 45 IC of the Rerserve Bank of India
Act, 1934
Reserve u/s 29C of National Housing Bank Act, 1987
Reserve u/s 36(1)(viii) of Income Tax Act, 1961
Retained earnings
Foreign currency translation reserve [Note 1(w)(iii)]
Hedging reserve [Note 1(q)]
Cash flow hedging reserve
Cost of hedging reserve
Debt instruments through other comprehensive
income [Note 1(q)]
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
153.20
v crore
v crore
153.20
v crore
v crore
153.20
10.52
269.76
10.52
269.88
10.52
270.54
280.28
8318.85
280.40
8164.72
281.06
7963.16
595.25
(292.00)
1025.44
1222.89
32.00
461.97
437.03
(154.81)
571.77
(202.53)
303.25
282.22
369.24
1119.98
1142.69
32.00
364.63
852.20
863.28
20.39
251.50
2742.30
37335.32
478.24
2659.30
31724.59
609.59
1987.37
29703.20
538.23
405.32
(57.80)
59.24
(15.23)
(25.96)
(25.94)
347.52
70.97
50029.93
44.01
76.03
43994.06
(51.90)
78.62
41022.18
^ Debenture redemption reserve (DRR): The Group has issued redeemable non-convertible debentures and created DRR in terms of the
Companies (Share capital and Debenture) Rules, 2014 (as amended). A company is required to maintain a DRR of 25% of the value
of debentures issued, either by a public issue or on a private placement basis (excluding private placement by non-banking finance
companies). The amounts credited to the DRR may not be utilised except to redeem debenture.
390
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [22]
Financial liabilities: Borrowings - non-current
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
Secured Unsecured
Total
v crore
v crore
v crore
v crore
v crore
v crore
v crore
v crore
v crore
Redeemable non-convertible fixed rate
debentures
19633.76
9776.15
29409.91
15746.68 9685.53 25432.21 15288.02 8407.72 23695.74
Redeemable non-convertible floating rate
debentures
275.00
–
275.00
219.28
–
219.28
203.26
–
203.26
Redeemable non-convertible inflation indexed
debentures
Preference shares
0.675% Foreign currency convertible bonds
Term loans from banks
Term loans from others
Loans from financial institutions
Finance lease obligation [Note 48(b)(i)(B)]
Sales tax deferment loan
Perpetual debts
–
–
–
22412.79
–
–
–
–
–
113.52
1147.02
1201.78
12741.60
38.63
–
0.25
0.08
–
113.52
1147.02
1201.78
35154.39
38.63
–
0.25
0.08
–
110.32
–
110.32
– 1312.99 1312.99
– 1190.86 1190.86
–
111.30
– 1456.98 1456.98
– 1089.81 1089.81
20553.17 12157.94 32711.11 16461.58 9404.05 25865.63
111.30
0.02
2.56
–
–
–
38.14
–
0.23
0.28
205.84
38.16
2.56
0.23
0.28
205.84
0.03
6.75
–
–
–
34.24
–
39.48
0.62
205.80
34.27
6.75
39.48
0.62
205.80
42321.55
25019.03
67340.58
36521.71 24702.13 61223.84 31959.64 20750.00 52709.64
Loans guaranteed by directors v Nil (previous year: v Nil)
NOTE [23]
Other financial liabilities - non-current
Particulars
Forward contract payables
Embedded derivative payables
Due to others
NOTE [24]
Provisions - non-current
Particulars
Employee pension scheme [Note 45(b)(i)]
Post-retirement medical benefit plan [Note 45(b)(i)]
Provision for interest rate guarantee (Provident fund)
Provision for employee benefits-Others
Other provisions [Note 53]
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
38.39
32.48
120.46
191.33
v crore
47.81
4.85
88.74
141.40
v crore
100.72
53.99
67.41
222.12
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
294.74
221.19
–
9.20
1.46
526.59
v crore
231.38
176.24
0.61
16.43
–
424.66
v crore
208.00
166.49
8.88
1.98
–
385.35
391
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [25]
Other non-current Liabilities
Particulars
Deferred income on loan processing/ assignment
Other payables
NOTE [26]
Financial liabilities: Borrowings - current
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
44.70
127.44
172.14
v crore
47.11
134.03
181.14
v crore
39.13
172.80
211.93
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
Secured Unsecured
Total
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Loans repayable on demand
Short term loan and advances from banks
Short term unsecured loan from others
Short term unsecured fixed rate debentures
Loans from related parties
Commercial Paper
v crore
v crore
v crore
1802.22
65.50
1736.72
2331.57
1965.74
365.83
429.05
429.05
–
–
–
–
–
–
–
– 11993.95 11993.95
v crore
1590.31
v crore
v crore
v crore
176.63 1766.94 1605.01
v crore
v crore
234.95 1839.96
732.77 4547.72 5280.49 1212.27 3605.83 4818.10
–
–
526.17
–
–
37.97
– 8674.94 8674.94
–
–
–
–
–
30.23
– 7819.09 7819.09
–
526.17
37.97
–
–
30.23
2102.55 14454.24 16556.79
2323.08 12573.67 14896.75 2817.28 13079.86 15897.14
Loans guaranteed by directors v Nil (previous year: v Nil)
NOTE [27]
Financial liabilities: Current maturities of long term borrowings
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
Secured Unsecured
Total
v crore
v crore
v crore
v crore
v crore
v crore
v crore
v crore
v crore
Redeemable non-convertible fixed rate
debentures
5181.37
2217.74
7399.11
5554.61 1940.83 7495.44 2727.71
647.60 3375.31
Redeemable non-convertible floating rate
debentures
Preference shares
Term loans from banks
Term loans from others
Loans from financial institutions
Finance lease obligation [Note 48(b)(i)(B)]
Sales tax deferment loan
–
–
993.20
–
0.63
–
–
–
178.82
1506.34
–
–
0.60
0.20
–
178.82
2499.54
–
0.63
0.60
0.20
109.04
–
3565.33
–
4.28
–
–
–
–
109.04
–
0.54
–
840.36 4405.69 4677.74
1.45
12.10
–
–
–
–
0.11
0.34
–
4.28
0.11
0.34
–
–
0.54
–
51.86 4729.60
4.71
12.10
0.16
0.45
3.26
–
0.16
0.45
6175.20
3903.70 10078.90
9233.26 2781.64 12014.90 7419.54
703.33 8122.87
Loans guaranteed by directors v Nil (previous year: v Nil)
392
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [28]
Financial liabilities - current: Trade payables
Particulars
Acceptances
Due to related parties:
Associate companies
Joint venture companies
Micro and small enterprises
Due to others
NOTE [29]
Other financial liabilities - current
Particulars
Unclaimed dividend
Unclaimed interest on debentures
Financial guarantee contracts
Embedded derivative payables
Due to others*
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
390.20
v crore
v crore
756.59
v crore
v crore
1170.96
18.41
1929.05
17.05
1723.21
80.88
1427.30
1947.46
142.00
27294.59
29774.25
1740.26
151.92
24354.79
27003.56
1508.18
140.95
19236.80
22056.89
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
46.61
10.87
1.55
184.70
4945.32
v crore
39.33
17.22
1.19
181.06
4083.64
v crore
33.59
10.31
1.22
68.83
3658.90
5189.05
4322.44
3772.85
* Due to others include due to directors v 55.58 crore (as at 31-3-2016: v 51.30 crore; as at 1-4-2015 v 53.83 crore)
NOTE [30]
Other current liabilities
Particulars
Due to customers (construction related activity)
Due to customers (property development projects)
Advances from customers
Other payables
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
6163.28
525.44
13944.29
2811.73
v crore
5661.02
768.53
14946.19
3032.15
v crore
4425.28
637.65
13084.65
2657.02
23444.74
24407.89
20804.60
393
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [31]
Current liabilities: Provisions
Particulars
Provision for employee benefits:
Gratuity [Note 45(b)(i)]
Compensated absences
Employee pension scheme [Note 45(b)(i)]
Post-retirement medical benefits plan [Note 45(b)(i)]
Others
Others :
Additional tax on dividend
Reserve for unexpired risks
Other provisions [Note 53]
NOTE [32]
Contingent Liabilities
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
v crore
v crore
v crore
191.31
999.95
22.67
13.36
4.09
18.94
–
1408.02
147.74
918.28
56.17
17.07
5.00
130.14
848.48
13.47
14.59
0.48
1231.38
1144.26
1007.16
22.42
222.42
914.42
12.75
155.64
501.30
1426.96
2658.34
1159.26
2303.52
669.69
1676.85
Particulars
(a) Claims against the Group 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 Group in Writ
(d) Income tax liability that may arise in respect of which the Group is
in appeal
(e) Guarantees and letter of credit and letter of comfort given
(f) Contingent liabilities incurred in relation to interests in joint
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
4359.98
239.66
v crore
4008.18
263.64
v crore
1596.37
185.37
265.37
243.90
222.44
753.91
1416.72
725.91
1268.64
1215.92
1297.00
operations
7018.24
4170.76
3248.49
(g) Contingent liabilities in respect of liabilities of other joint operators
of joint operations
6230.96
8006.19
10840.81
(h) Share in contingent liabilities of joint operations for which the
Group is contingently liable
53.24
58.18
80.13
Notes:
(i)
(ii)
The Group expects reimbursements of v 34.01 crore (previous year: v 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 Group has determined that the possibility of such levy is remote.
(iii) In respect of matters at (f) to (h), the cash outflows, if any, could generally occur upto completion of projects undertaken by the
respective joint operations.
(iv) Particulars of share in contingent liabilities of joint ventures and associates are given in Note 55 (g).
394
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [33]
Commitments:
Particulars
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
v crore
v crore
(a) Estimated amount of contracts remaining to be executed on capital
account (net of advances).
4287.99
4441.55
8718.29
(b) Funding committed by way of equity/loans to joint venture
companies
(c) Share in capital commitments of joint operations
–
–
404.64
2.61
1443.41
159.34
Particulars of share in capital commitments of joint ventures and associates are given in Note 55 (g).
NOTE [34]
Revenue from operations
Particulars
Sales and service:
2016-17
2015-16
v crore
v crore
v crore
v crore
Construction and project related activity [Note 44(a)]
74504.71
68838.65
Manufacturing and trading activity
Engineering and service fees
Software development products and services
Income from financing activity
Property development activity [Note 44(d)]
Servicing fees
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) from insurance business
Other operational income:
Income from hire of plant and equipment
Lease rentals
Property maintenance recoveries
Facility management income
Premium earned (net) on related forward exchange contracts
Profit on sale of subsidiaries/associate of realty business
Technical fees
Miscellaneous income
9083.68
3239.35
6336.81
9064.39
2272.71
825.71
163.89
–
1.66
451.69
2216.31
174.73
19.64
70.89
–
–
254.56
95.81
–
1234.46
9915.25
3046.77
5694.92
8208.30
1444.81
888.52
157.65
88.54
3.67
340.43
1960.36
297.83
108335.64
100885.70
27.34
200.67
14.23
34.14
192.88
236.53
0.22
383.63
1675.36
110011.00
1089.64
101975.34
395
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [35]
Other income
Interest income:
Particulars
2016-17
2015-16
v crore
v crore
v crore
v 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 or fair valuation of investments
Net gain/(loss) on sale of property, plant and equipment
Lease rentals
Miscellaneous income (net of expenses)
NOTE [36]
Manufacturing, construction and operating expenses
Particulars
Materials consumed:
Raw materials and components
Less: Scrap sales
Excise duty
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,
stock-in-trade and property development:
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
Carried forward
396
22.19
205.77
82.12
112.54
1.64
82.45
84.09
664.54
44.97
199.36
62.85
119.67
422.62
426.85
2.43
79.52
81.95
114.17
748.63
34.22
17.88
7.73
169.93
1401.01
196.12
65.73
60.55
9.75
145.35
904.35
2016-17
2015-16
v crore
v crore
v crore
v crore
14425.96
104.98
1610.57
–
340.82
188.59
4385.19
1259.39
–
–
6173.99
6173.99
13729.98
852.86
20256.77
1333.44
1834.19
20788.86
14320.98
699.19
20732.39
1610.57
2090.42
22556.13
13816.10
86.12
1349.93
(16.49)
284.99
179.99
4570.76
1191.81
–
293.63
6521.18
62009.68
6521.18
58796.10
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [36]
Manufacturing, construction and operating expenses (contd.)
Particulars
Brought forward
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
Value of inventory transferred on sale of business
Internal capitalisation of property development land
Other manufacturing, construction and operating expenses:
Excise duty
Power and fuel
Royalty and technical know-how fees
Packing and forwarding
Hire charges-plant and equipment and others
Bank guarantee charges
Insurance claim incurred (net)
Engineering, professional, technical and consultancy fees
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to plant and equipment
Repairs to buildings
General repairs and maintenance
Port operation expenses
Miscellaneous expenses
2016-17
2015-16
v crore
6173.99
284.99
179.99
4570.76
1197.58
–
293.63
6526.95
352.96
(268.96)
–
19.28
1309.05
16.44
383.45
1375.15
176.80
152.01
1176.73
227.25
492.58
405.05
1016.00
92.39
25.42
377.86
–
3338.02
v crore
62009.68
v crore
6521.18
v crore
58796.10
403.10
178.02
4523.29
1900.34
91.81
234.26
7330.82
809.64
–
(1324.50)
84.00
(514.86)
(1.40)
1116.02
17.66
364.81
998.79
155.60
218.96
1145.35
205.52
502.75
333.68
1053.88
80.22
20.12
311.76
12.62
2624.22
Finance cost of financial services business and finance lease activity:
Interest and other financing charges
5362.09
4967.11
10583.48
9160.56
5362.09
78039.25
4967.11
72408.91
397
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [37]
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 45(b)(ii)]
Expenses on employee stock options scheme
Employee medical & other insurance premium expenses
Staff welfare expenses
Recoveries on account of deputation charges
NOTE [38]
Sales, administration and other expenses
Particulars
Power and fuel
Packing and forwarding
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to buildings
General repairs and maintenance
Professional fees
Directors’ fees
Telephone, postage and telegrams
Advertising and publicity
Stationery and printing
Commission:
Distributors and agents
Others
Bank charges
Discount on sales
Miscellaneous expenses
Bad debts and advances written off
Less: Allowances for doubtful debts and advances written back
Carried forward
398
2016-17
2015-16
v crore
v crore
12479.83
v crore
v crore
11882.28
212.31
36.54
131.78
214.97
87.02
119.84
380.63
88.17
170.88
1013.50
(279.94)
421.83
67.55
140.44
980.87
(162.13)
13853.07
13330.84
2016-17
2015-16
v crore
286.64
6.49
458.55
82.24
v crore
232.75
6.07
274.56
15.55
v crore
114.14
157.97
75.63
496.13
166.34
623.48
20.66
440.20
568.76
3.60
201.19
196.82
64.63
293.13
128.45
0.51
721.44
376.31
4649.39
v crore
127.43
185.36
79.90
513.75
148.43
613.81
21.50
403.43
572.00
2.85
211.33
186.41
72.40
238.82
120.91
-
672.28
259.01
4429.62
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [38]
Sales, administration and other expenses (contd.)
Particulars
Brought forward
Receivable discounting charges -non recourse
Allowances for doubtful debts and loans and advances (net)
Provision/(reversal) for foreseeable losses on construction contracts
Exchange (gain)/loss [net]
Other provisions
NOTE [39]
Finance costs
Particulars
Interest expenses
Other borrowing costs
Exchange loss (attributable to finance costs)
2016-17
2015-16
v crore
v crore
v crore
4649.39
50.90
2075.54
(8.91)
50.65
227.93
7045.50
2016-17
v crore
1271.63
2.58
65.63
1339.84
v crore
4429.62
12.63
1093.34
76.48
95.05
71.40
5778.52
2015-16
v crore
1500.26
6.64
148.16
1655.06
NOTE [40]
The list of subsidiaries, associates, joint ventures and joint operations in the consolidated financial statements are as under:
Sr.
no.
1
2
3
4
5
6
7
8
9
10
11
12
Name of subsidiary company
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Principal
place of
business
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Indian Subsidiaries
L&T Cutting Tools Limited
Bhilai Power Supply Company Limited
Spectrum Infotech Private Limited
L&T-Valdel Engineering Limited$$
L&T Shipbuilding Limited
L&T Electricals and Automation Limited
India
India
India
India
India
India
Hi-Tech Rock Products & Aggregates Limited India
L&T Seawoods Limited
Kesun Iron and Steel Company Private
Limited
L&T Infocity Limited
L&T Hitech City Limited
Hyderabad International Trade Expositions
Limited
India
India
India
India
India
100.00
99.90
100.00
–
97.00
100.00
100.00
100.00
100.00
99.90
100.00
–
97.00
100.00
100.00
100.00
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
95.00
95.00
95.00
95.00
–
–
–
–
–
–
–
–
–
–
–
–
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
95.00
89.00
65.86
100.00
99.90
100.00
100.00
97.00
100.00
100.00
100.00
95.00
89.00
65.86
51.72
51.72
399
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Principal
place of
business
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Sr.
no.
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Name of subsidiary company
EWAC Alloys Limited
L&T Geostructure LLP
L&T Valves Limited
L&T Realty Limited
L&T Asian Realty Project LLP
L&T Parel Project LLP
Chennai Vision Developers Private Limited
L&T South City Projects Limited$
L&T Vision Ventures Limited
L&T Power Limited
CSJ Infrastructure Private Limited
L&T Cassidian Limited
Consumer Financial Services Limited$$$
L&T General Insurance Company Limited*
L&T Aviation Services Private Limited
Larsen & Toubro Infotech Limited
GDA Technologies Limited @
L&T Finance Holdings Limited
L&T Housing Finance Limited
L&T Infra Investment Partners #
L&T Finance Limited (formerly known as
Family Credit Limited)
L&T Finance Limited ~
L&T Capital Markets Limited
L&T Investment Management Limited
L&T Mutual Fund Trustee Limited
L&T FinCorp Limited ~
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
L&T Infrastructure Finance Company Limited India
L&T Infra Debt Fund Limited
L&T Infra Investment Partners Advisory
Private Limited
India
India
42
L&T Infra Investment Partners Trustee
India
Private Limited
43
L&T Financial Consultants Limited (formerly
known as L&T Vrindavan Properties
Limited)
India
44
L&T Access Distribution Services Limited
India
400
100.00
74.00
100.00
100.00
100.00
100.00
100.00
–
68.00
99.99
–
74.00
–
–
100.00
84.28
–
66.62
66.62
36.55
66.62
–
66.62
66.62
66.62
–
66.62
66.62
100.00
74.00
100.00
100.00
100.00
100.00
100.00
–
68.00
99.99
–
74.00
–
–
100.00
84.28
–
66.62
66.62
36.55
66.62
–
66.62
66.62
66.62
–
66.62
66.62
100.00
74.00
100.00
100.00
100.00
100.00
100.00
51.00
68.00
99.99
–
74.00
66.71
100.00
100.00
94.96
94.96
66.71
66.71
36.69
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
100.00
74.00
100.00
100.00
100.00
100.00
100.00
51.00
68.00
99.99
100.00
74.00
100.00
100.00
50.00
100.00
100.00
51.00
68.00
99.99
100.00
74.00
100.00
100.00
50.00
100.00
100.00
51.00
68.00
99.99
–
100.00
100.00
74.00
66.71
100.00
100.00
94.96
94.96
66.71
66.71
36.69
66.71
66.71
66.71
66.71
66.71
66.71
66.71
66.71
74.00
72.95
100.00
100.00
100.00
100.00
72.95
72.95
40.45
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
74.00
72.95
100.00
100.00
100.00
100.00
72.95
72.95
40.45
72.95
72.95
72.95
72.95
72.95
72.95
72.95
72.95
66.62
66.62
66.71
66.71
72.95
72.95
66.62
66.62
66.71
66.71
72.95
72.95
66.62
66.62
66.62
66.62
66.71
66.71
66.71
66.71
72.95
72.95
72.95
72.95
Notes forming part of the Consolidated Financial Statements (contd.)
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Principal
place of
business
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
interest (%)
Proportion of
voting power
held (%)
NOTE [40] (contd.)
Name of subsidiary company
Sr.
no.
45 Mudit Cement Private 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
Nabha Power Limited
L&T Metro Rail (Hyderabad) Limited
L&T Technology Services Limited
L&T Construction Equipment Limited
L&T Infrastructure Engineering Limited
L&T Thales Technology Services Private
Limited
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
L&T Hydrocarbon Engineering Limited
India
Sahibganj Ganges Bridge-Company Private
India
Limited^
Seawoods Retail Private Limited^^
Seawoods Realty Private Limited^^^
62 Marine Infrastructure Developer Private
Limited
63
64
65
66
67
AugmentIQ Data Sciences Private Limited## India
L&T Infra Contractors Private Limited###
L&T Natural Resources Limited
L&T Solar Limited
L&T PowerGen Limited
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
66.62
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
89.77
100.00
100.00
66.43
100.00
100.00
100.00
100.00
97.00
84.28
66.62
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
89.77
100.00
100.00
66.43
100.00
100.00
100.00
100.00
97.00
84.28
100.00
100.00
–
–
–
–
–
–
66.71
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.48
100.00
100.00
100.00
74.00
100.00
–
–
–
66.71
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.48
100.00
100.00
100.00
74.00
100.00
–
–
–
100.00
100.00
–
–
–
–
–
–
–
–
–
–
72.95
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.48
100.00
100.00
100.00
74.00
100.00
–
–
–
–
–
–
72.95
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.48
100.00
100.00
100.00
74.00
100.00
–
–
–
–
–
–
100.00
100.00
100.00
100.00
100.00
100.00
* The Group has sold its stake on September 9, 2016
@ The company is merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2016
$ The Group has sold its stake on March 20, 2017
$$ The company is merged with L&T Hydrocarbon Engineering Limited w.e.f. April 1, 2016
$$$ The company is merged with L&T Housing Finance Limited w.e.f. April 1, 2015
~ The company is merged with Family Credit Limited (subsequently renamed as L&T Finance Limited) w.e.f. April 1, 2016
^ The company is incorporated on July 14, 2016
^^ The company is incorporated on September 2, 2016
^^^ The company is incorporated on October 23, 2016
# The Fund is incorporated on August 22, 2013. The Group has control over its relevant activities.
## The Group acquired stake on November 30, 2016
### The Company is incorporated on March 17, 2017
401
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Name of subsidiary company
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.
Principal
place of
business
USA
Germany
Canada
USA
Canada
Larsen & Toubro Infotech South Africa (PTY)
South Africa
Limited
L&T Information Technology Services
China
(Shanghai) Co., Ltd.
L&T Realty FZE
Larsen & Toubro International FZE
Larsen & Toubro Hydrocarbon International
Limited LLC
Thalest Limited
Servowatch Systems Limited
Larsen & Toubro (Oman) LLC
L&T Modular Fabrication Yard LLC
Larsen & Toubro (East Asia) SDN. BHD
Larsen & Toubro Qatar LLC
L&T Overseas Projects Nigeria Limited
PT Larsen & Toubro Hydrocarbon
Engineering Indonesia
L&T Electricals & Automation Saudi Arabia
Company Limited LLC
Larsen & Toubro Kuwait Construction
General Contracting Company WLL
Larsen & Toubro Readymix & Asphalt
Concrete Industries LLC
Larsen & Toubro (Saudi Arabia) LLC
23
Larsen Toubro Arabia LLC
24
Larsen & Toubro ATCO Saudia LLC
Tamco Switchgear (Malaysia) SDN. BHD.
Henikwon Corporation SDN. BHD.
Larsen & Toubro Consultoria E Projeto Ltda
Larsen & Toubro (Qingdao) Rubber
Machinery Company Limited
Tamco Electrical Industries Australia Pty
Limited
PT Tamco Indonesia
Larsen & Toubro Heavy Engineering LLC
L&T Electrical & Automation FZE
Kana Controls General Trading &
Contracting Company WLL
25
26
27
28
29
30
31
32
33
402
UAE
UAE
Kingdom of
Saudi Arabia
UK
UK
Sultanate of
Oman
Sultanate of
Oman
Malaysia
Qatar
Nigeria
Indonesia
Kingdom of
Saudi Arabia
Kuwait
UAE
Kingdom of
Saudi Arabia
Kingdom of
Saudi Arabia
Kingdom of
Saudi Arabia
Malaysia
Malaysia
Brazil
Peoples
Republic of
China
Australia
Indonesia
Sultanate of
Oman
UAE
Kuwait
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Proportion
of ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
Interest (%)
Proportion of
voting power
held (%)
100.00
84.28
84.28
84.28
84.28
63.12
84.28
100.00
100.00
100.00
100.00
100.00
100.00
84.28
84.28
84.28
84.28
63.12
84.28
100.00
100.00
100.00
100.00
100.00
100.00
94.96
94.96
94.96
100.00
94.96
94.96
94.96
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
94.96
94.96
100.00
100.00
71.12
71.12
74.90
74.90
94.96
100.00
100.00
100.00
100.00
100.00
94.96
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
65.00
65.00
65.00
65.00
65.00
65.00
65.00
30.00
49.00
100.00
65.00
100.00
100.00
100.00
65.00
30.00
49.00
100.00
65.00
100.00
100.00
100.00
65.00
30.00
49.00
100.00
65.00
100.00
100.00
100.00
95.00
95.00
95.00
95.00
95.00
95.00
100.00
100.00
100.00
100.00
75.00
75.00
49.00
49.00
75.00
49.00
75.00
49.00
75.00
100.00
49.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
75.00
75.00
75.00
75.00
75.00
75.00
100.00
100.00
–
75.00
100.00
100.00
–
75.00
100.00
100.00
–
75.00
100.00
100.00
–
75.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
–
–
–
–
100.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
70.00
100.00
49.00
100.00
49.00
100.00
49.00
100.00
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
no.
34
35
36
37
38
Sr.
no.
1
2
3
4
5
6
Name of subsidiary company
Larsen & Toubro T&D SA (Proprietary)
Limited
Principal
place of
business
South Africa
L&T Technology Services LLC
Larsen & Toubro Infotech Austria GmbH
L&T Global Holdings Limited
L&T Information Technology Spain SL
USA
Austria
UAE
Spain
Name of associate company
L&T-Chiyoda Limited
Gujarat Leather Industries Limited@
Larsen & Toubro Qatar & HBK Contracting
LLC
L&T Camp Facilities LLC
Feedback Infra Private Limited
International Seaports (Haldia) Private
Limited
Vizag IT Park Limited
Salzer Electronics Limited
JSK Electricals Private Limited
Rishi Consfab Private Limited
7
8
9
10
11 Magtorq Private Limited
12
13
14
Grameen Capital India Limited^
Ardom Telecom Private Limited^^
KMC Infratech Road Holdings Limited^^^
Principal
place of
business
India
India
Qatar
UAE
India
India
India
India
India
India
India
India
India
India
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Proportion
of ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of ownership
Interest (%)
Proportion of
voting power
held (%)
72.50
89.77
84.28
100.00
84.28
72.50
89.77
84.28
100.00
84.28
72.50
100.00
94.96
100.00
94.96
72.50
100.00
94.96
100.00
94.96
72.50
100.00
–
–
–
72.50
100.00
–
–
–
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Proportion
of ownership
Interest (%)
50.00
50.00
Proportion of
voting power
held (%)
50.00
50.00
Proportion
of ownership
Interest (%)
50.00
50.00
Proportion of
voting power
held (%)
50.00
50.00
Proportion
of ownership
Interest (%)
50.00
50.00
Proportion of
voting power
held (%)
50.00
50.00
50.00
49.00
15.42
21.74
–
–
–
–
42.85
23.84
8.08
0.09
50.00
49.00
15.42
21.74
–
–
–
–
42.85
23.84
8.08
0.09
50.00
49.00
15.74
21.74
–
–
–
–
42.85
23.87
8.11
0.09
50.00
49.00
15.74
21.74
–
–
–
–
42.85
23.87
8.11
0.09
50.00
49.00
16.89
21.74
23.14
26.06
26.00
26.00
42.85
–
8.94
–
50.00
49.00
16.89
21.74
23.14
26.06
26.00
26.00
42.85
–
8.94
–
@ The company is under liquidation
^ 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.
^^ The Company has become associate on January 3, 2015. Investment in the associate is measured at fair value through profit or loss.
^^^ The Company has become associate on September 30, 2015. Investment in the associate is measured at fair value through profit or loss.
Sr.
no.
1
2
3
4
5
6
7
8
9
10
11
12
Name of joint venture
Larsen & Toubro Electromech LLC
L&T Infrastructure Development Projects Lanka (Private) Limited*
L&T IDPL Trustee Manager Pte. Ltd.
L&T Chennai–Tada Tollway Limited
L&T BPP Tollway Limited
L&T Rajkot-Vadinar Tollway Limited
L&T Deccan Tollways Limited
L&T Samakhiali Gandhidham Tollway Limited
Kudgi Transmission Limited
L&T Sambalpur-Rourkela Tollway limited
L&T Infrastructure Development Projects Limited
Panipat Elevated Corridor Limited (formerly known as L&T Panipat
Elevated Corridor Limited)
Principal
place of
business
Sultanate of
Oman
Sri Lanka
Singapore
India
India
India
India
India
India
India
India
India
As at 31-3-2017
Proportion
of ownership
interest (%)
As at 31-3-2016 As at 1-4-2015
Proportion of
ownership
interest (%)
Proportion of
ownership
interest (%)
65.00
–
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
65.00
93.44
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
65.00
93.47
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
403
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
As at 31-3-2017
Proportion
of ownership
interest (%)
As at 31-3-2016 As at 1-4-2015
Proportion of
ownership
interest (%)
Proportion of
ownership
interest (%)
Principal
place of
business
India
Sr.
no.
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Name of joint venture
Krishnagiri Thopur Toll Road Limited (formerly known as L&T Krishnagiri
Thopur Toll Road Limited)
Western Andhra Tollways Limited (formerly known as L&T Western Andhra
India
Tollways Limited)
Vadodara Bharuch Tollway Limited (formerly known as L&T Vadodara
Bharuch Tollway Limited)
L&T Transportation Infrastructure Limited
L&T Western India Tollbridge Limited
L&T Interstate Road Corridor Limited
L&T Port Kachchigarh Limited
Ahmedabad-Maliya Tollway Limited (formerly known as L&T Ahmedabad-
Maliya Tollway Limited)
L&T Halol-Shamlaji Tollway Limited
L&T Krishnagiri Walajahpet Tollway Limited
Devihalli Hassan Tollway Limited (formerly known as L&T Devihalli Hassan
Tollway Limited)
L&T Howden Private Limited
L&T Sapura Shipping Private Limited
L&T Sapura Offshore Private 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 Special Steels and Heavy Forgings Private Limited
PNG Tollway Limited
L&T Kobelco Machinery Private Limited
L&T-Sargent & Lundy Limited
Indiran Engineering Projects and Systems Kish PJSC
* The group has sold its stake on May 6, 2016
Sr.
no.
Name of joint operation (with specific ownership interest in the
arrangement)
1
2
3
4
5
6
7
8
9
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
10
11
Larsen & Toubro Limited - Shapoorji Pallonji & Co. Limited Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation Joint Venture CC27
Delhi
12 a)
Larsen & Toubro Limited - Scomi Engineering BHD. Consortium-Residual
Joint Works Joint Venture
12 b)
Larsen & Toubro Limited - Scomi Engineering BHD. Consortium-O&M Joint
Venture
404
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Iran
Principal
place of
business
India
India
India
India
India
India
India
India
India
India
India
India
India
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
47.75
97.45
97.45
50.10
60.00
60.00
50.00
51.00
51.00
75.50
74.00
72.11
51.00
50.00
50.00
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
97.45
97.45
97.45
50.10
60.00
60.00
50.00
51.00
51.00
75.50
74.00
72.11
51.00
50.00
50.00
97.45
97.45
97.45
98.12
97.45
97.45
97.45
97.45
97.45
97.45
97.45
50.10
60.00
60.00
50.00
51.00
51.00
75.50
74.00
72.77
51.00
50.00
50.00
As at 31-3-2017
Proportion
of ownership
interest (%)
65.00
26.00
49.00
43.00
26.00
90.00
51.00
As at 31-3-2016 As at 1-4-2015
Proportion of
ownership
interest (%)
65.00
26.00
49.00
43.00
26.00
90.00
51.00
Proportion of
ownership
interest (%)
65.00
26.00
49.00
43.00
26.00
90.00
51.00
75.00
100.00
50.00
100.00
60.00
50.00
75.00
#
50.00
#
60.00
50.00
75.00
60.00
50.00
68.00
60.00
50.00
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
no.
Name of joint operation (with specific ownership interest in the
arrangement)
Larsen & Toubro Limited and NCC Limited Joint Venture
L&T-Eastern Joint Venture@
Civil Works Joint Venture
Aktor-Larsen & Toubro-Yapi Merkezi-stfa-Al Jaber Engineering Joint Venture Qatar
L&T-Delma Mafraq Joint Venture
L&T-AL-Sraiya LRDP 6 Joint Venture
DAEWOO and L&T Joint Venture
PESB and Larsen & Toubro Joint Venture
Besix - Larsen & Toubro Joint Venture^
Al Balagh Trading & Contracting Co. W.L.L.-L&T Joint Venture^^
LTH Milcom Private Limited
Mumbai Metro Rail Corporation Limited^^^
Bauer-L&T Geo Joint Venture
EMAS Saudi Arabia Ltd$$
Larsen & Toubro Ltd - Passavant Energy & Environment JV$
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Principal
place of
business
India
UAE
Kingdom of
Saudi Arabia
UAE
Qatar
India
Malaysia
UAE
Qatar
India
India
India
Kindgom of
Saudi Arabia
India
As at 31-3-2017
Proportion
of ownership
interest (%)
55.00
65.00
As at 31-3-2016 As at 1-4-2015
Proportion of
ownership
interest (%)
55.00
65.00
Proportion of
ownership
interest (%)
55.00
65.00
29.00
22.00
60.00
75.00
50.00
82.30
50.00
80.00
56.67
100.00
50.00
50.00
50.00
29.00
22.00
60.00
75.00
50.00
82.30
–
–
56.67
–
50.00
–
–
29.00
22.00
60.00
–
–
–
–
–
–
–
–
–
–
@ The joint operation is in process of liquidation
^ The joint operation has been entered on December 5, 2015 (started Operation in FY 2016-17)
^^ The joint operation has been entered on May 25, 2016 (started Operation in FY 2016-17)
^^^ The joint operation has been entered on February 25, 2015
$ The joint operation has been entered on October 12, 2016
$$ The joint operation has been entered on January 23, 2015
# On scope of respective activities under the contract as mutually agreed between joint operators
Sr.
no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Name of joint operation (with specific proportion of activity carried out through the arrangement)
L&T Sojitz Consortium
L&T-KBL (UJV) Hyderabad
L&T-KBL-MAYTAS Joint Venture
Larsen and Toubro Limited & Bharat Rail Automation Pvt. Ltd. Joint Venture (Package II)
Larsen and Toubro Limited & Bharat Rail Automation Pvt. Ltd. Joint Venture (Package III)
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
PES Engg P. ltd.-L&T Consortium
L&T Galfar Consortium
L&T Oman-L&T consortium
Sojitz Corporation-L&T Consortium
Sojitz Corporation-Gayathri Projects Ltd.-L&T Consortium
Instalaciones Inabensa S.A.-L&T Consortium
Scomi Engineering Bhd.-L&T Consortium
Consortium of M/s. J. Ray McDermott Sdn. Bhd. and M/s. L&T Hydrocarbon Engineering Limited
Consortium of L&T Hydrocarbon Engineering Limited and EMAS AMC Pte. Ltd.
Principal place of
business
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Kingdom of Saudi Arabia
NOTE [41]
The components of other equity shown in the Consolidated Balance Sheet include the Group’s share in the respective reserves of
subsidiaries. Reserve attributable to non-controlling interest is reported separately in the consolidated Balance Sheet. Retained earnings
comprise Group’s share in general reserve and balance of Profit and Loss.
405
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [42]
Exceptional items include [Note 1(j)]:
(a) Profit on divestment of the Group’s stake in a subsidiary company (L&T General Insurance Company Limited) v 402.43 crore.
(b)
Impairment of investment in a joint venture company (Infrastructure Development Projects Limited) v 281.00 crore.
(c) Exceptional items for the previous year ended March 31, 2016 included profit on divestment of group’s stake in an associate
company (Salzer Electronics Limited) v 45.70 crore and profit on sale of Foundry Business Unit v 48.52 crore.
NOTE [43]
The expenditure on research and development activities recognised as expense in the Statement of Profit and Loss is v 177.88 crore
(previous year: v 187.90 crore). Further, the Group has incurred capital expenditure on research and development activities as follows:
(a) on Property, Plant and Equipment: v 9.75 crore (previous year: v 5.68 crore)
(b) on intangible assets being expenditure on new product development: v 43.01 crore (previous year: v 48.19 crore)
(c) on other intangible assets: v 3.20 crore (previous year: v 6.80 crore)
NOTE [44]
(a) Disclosures pursuant to Indian Accounting Standard (Ind AS) 11 “Construction Contracts”:
Sr.
no.
i)
ii)
iii)
iv)
Particulars
2016-17
v crore
2015-16 As at 1-4-2015
Contract revenue recognised for the financial year [Note 34]
74504.71
68838.65
NA
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
Retention amount by customers for contracts in progress as at the end of the
financial year
* Includes provision for foreseeable loss
265885.96
250082.50
218581.76
13267.98
13789.93
11866.39
8277.30
247.41
7527.55
257.02
6370.36
179.58
(b) The Group has revised certain estimates used in determining the cost of completion of projects, as a part of periodic review of
estimates. As a result, the revenue and profit before tax for the year increased by v 168.17 crore (previous year: v 395.73 crore).
(c) The Group has undertaken project for construction, operation and maintenance of the Metro Rail System on Design-Build-
Finance-Operate-Transfer (DBFOT) basis as per the concession agreement with the government authorities. Under the agreement,
the concession period for fare collection is 35 years (extendable by another 25 years at the option of the concessionaire, upon
satisfaction of key performance indicators by the concessionaire under the concession agreement). Under the agreement, the
fare can be revised on the basis of variation in wholesale price index effective from 1st of April every year. At the end of the said
concession period, the entire facilities would be transferred to the concerned government authorities. The Group expects to receive
viability gap funding of v 1458 crore from the grantor for the project. The Group also expects to receive property development
rights in respect of transit-oriented development. The arrangement has been classified as intangible assets.
(d) Disclosures pursuant to Guidance Note on Accounting for Real Estate Transactions issued by the Institute of Chartered Accountants
of India:
Particulars
2016-17
v crore
2015-16 As at 1-4-2015
Amount of project revenue recognised for the financial year [Note 34]
2272.71
1444.81
NA
Aggregate amount of costs incurred and profits recognised (less recognised
losses) as at the end of the financial year
Amount of advances received
Amount of work-in-progress and the value of inventories [Note 11]*
Excess of revenue recognised over actual bills raised (unbilled revenue) [Note 19]
4507.66
65.54
1259.76
91.05
3837.17
60.27
1489.21
178.73
2480.15
60.01
2224.29
129.94
Sr.
no.
i)
ii)
iii)
iv)
v)
* Inventories amounting to R 95.09 crore as at 1-4-2015 is classifed under group(s) of assets classifed as held for sale [Note 52]
406
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 “Employee Benefits” [Note 1(o)]
(a) Defined contribution plans: Amount of v 180.27 crore (previous year v 166.35 crore) is recognised as an expense. Out of above,
v 178.66 crore (previous year: v 165.14 crore) is included in “employee benefits expense” [Note 37] in the Statement of Profit and
Loss and v 1.61 crore (previous year: v 1.21 crore) has been capitalised.
(b) Defined benefit plans:
(i)
The amounts recognised in Balance Sheet are as follows:
v crore
Particulars
Present value of defined benefit
obligation
A) – Wholly funded
– Wholly unfunded
Less: Fair value of plan assets
Add: Amount not recognised as an
asset [limit in para 64(b)]
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
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
Post-retirement medical
benefit plan
As at
31-3-2016
As at
31-3-2017
As at
1-4-2015
Pension plan
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
Trust-managed provident
fund plan
As at
31-3-2016
As at
31-3-2017
As at
1-4-2015
–
640.87 601.75 582.29
194.66 147.74 130.14 234.55 193.31 181.08 317.41 287.55 221.47
835.53 749.49 712.43 234.55 193.31 181.08 317.41
–
615.72 559.86 507.64
– 3315.73 3023.97 2751.57
30.83
2.59
287.55 221.47 3318.32 3036.16 2782.40
– 3348.38 3041.76 2763.21
12.19
–
–
–
–
–
–
–
–
4.80
4.76
3.90
–
–
–
–
–
–
–
–
–
224.61 194.39 208.69 234.55 193.31 181.08 317.41 287.55 221.47 (30.06)
(5.60)
19.19
(7.59) (10.84)
232.28 201.98 219.53 234.55 193.31 181.08 317.41 287.55 221.47
(7.67)
224.61 194.39 208.69 234.55 193.31 181.08 317.41 287.55 221.47
13.47
17.07
224.61 194.39 208.69 13.36
– 221.19 176.24 166.49 294.74 231.38 208.00
31.84
– (15.94)
15.90
15.90
–
56.17
14.59
22.67
–
–
–
–
–
–
–
27.90
(7.36)
20.54
19.93
0.61
36.29
(9.05)
27.24
18.36
8.88
# Liability for unfunded gratuity with respect to group(s) of assets classified as held for sale is included thereunder
(ii) The amounts recognised in Statement of Profit and Loss are as follows:
Particulars
Gratuity plan
Post-retirement medical
benefit plan
Pension plan
v crore
Trust-managed provident
fund plan
1
2
3
4
Current service cost
Interest cost
Interest income on plan assets
Remeasurement - Actuarial losses/(gains) -
Difference between actual return on plan
assets and interest income
Remeasurement - Actuarial losses/(gains) - Others
Past service cost
Actuarial gain/(loss) not recognised in books
Adjustment for earlier years
Remeasurement - Effect of the limit in para 64(b)
5
6
7
8
9
10 Translation adjustments
11 Amount capitalised out of the above
Total (1 to 11)
2016-17
127.65
44.23
(40.51)
2015-16
120.61
42.37
(45.35)
2016-17
16.47
14.59
–
2015-16
12.26
13.77
–
2016-17
2.48
21.47
–
2015-16
2016-17
2015-16
3.39 122.34 $ 127.89 $
233.26
16.76
(233.26)
259.47
– (259.47)
(47.34)
35.88
–
–
0.27
(0.39)
0.91
(0.46)
120.24
(2.75)
9.29
–
–
1.49
2.06
(0.35)
(0.85)
126.52
–
19.11
–
–
–
–
–
(0.01)
50.16
–
(6.51)
0.97
–
–
–
–
(0.01)
20.48
–
23.64
–
–
–
–
–
–
47.59
–
12.01
49.58
–
–
–
–
–
81.74
(18.79)
(9.87)
–
28.66
–
–
–
–
122.34
(19.64)
(17.91)
–
37.55
(0.01)
–
–
–
127.88
407
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
Particulars
Gratuity plan
Post-retirement medical
benefit plan
Pension plan
v crore
Trust-managed provident
fund plan
I
Amount included in “employee benefits
expense”
Amount included as part of “finance cost”
II
III Amount included as part of “other comprehensive
income”
Total (I+II+III)
Actual return on plan assets
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
131.78
0.31
(11.85)
120.24
87.85
119.84
(1.92)
8.60
126.52
48.10
18.44
12.61
19.11
50.16
–
14.94
12.05
(6.51)
20.48
–
2.48
21.47
23.64
47.59
–
52.97
16.76
12.01
81.74
–
122.34
–
136.27
(8.39)
–
122.34
278.26
–
127.88
252.90
(iii) 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) Employer
ii) Employee
iii) Transfer-in/(out)
Add/(less): Remeasurement - Actuarial losses/(gains)
i)
ii)
Actuarial (gains)/losses arising from
changes in demographic assumptions
Actuarial (gains)/losses arising from
changes in financial assumptions
iii)
Actuarial (gains)/losses arising from
changes in experience adjustments
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
749.49
127.65
44.23
–
–
–
Gratuity plan
As at
31-3-2017
As at
31-3-2016
Post-retirement medical
benefit plan
As at
31-3-2017
As at
31-3-2016
Pension plan
As at
31-3-2017
As at
31-3-2016
v crore
Trust-managed provident
fund plan
As at
31-3-2017
As at
31-3-2016
712.43
193.31
181.08
287.55
221.47 3036.16
2782.40
120.61
42.37
16.47
14.59
12.26
13.77
2.48
21.47
3.39 122.34 $ 127.89 $
16.76
259.47
233.26
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
298.11
306.84
–
–
–
–
–
(0.00)
0.15
(0.08)
0.08
26.79
0.40
24.41
1.42
16.80
1.01
(9.87)
(17.91)
8.94
8.97
(127.70)
(140.08)
(5.38)
(8.93)
–
–
(1.89)
0.38
7.49
–
(0.99)
–
1.02
4.84
–
–
–
–
–
(7.93)
(8.26)
0.97
–
–
–
–
6.84
11.00
–
–
(17.73)
(15.66) (388.56)
(391.47)
–
–
–
–
–
49.58
–
–
–
–
0.01
0.66
–
–
–
–
(4.10)
–
(0.75)
–
obligation
835.53
749.49
234.55
193.31
317.41
287.55 3318.32
3036.16
408
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
(iv) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:
v crore
Particulars
Gratuity plan
Trust-managed
provident fund plan
As at
31-3-2017
As at
31-3-2016
As at
31-3-2017
As at
31-3-2016
Opening balance of the fair value of the plan assets
Add: Interest Income on plan assets*
Add/(less): Remeasurement - Actuarial gains/(losses)
Add/(less): Actuarial gains/(losses) - Difference between
actual return on plan assets and interest income
Add/(Less): Actuarial gains/(losses) - Others
559.86
40.51
–
47.34
–
507.64
3041.76
2763.21
45.35
259.47
233.26
–
–
–
2.75
–
18.79
0.00
19.64
(0.00)
Add: Contribution by the employer
95.58
143.41
120.37
121.07
Add/(less): Transfer in/(out)
Add: Contribution by plan participants
Add: Liabilities assumed on transfer of employees
Add: Business combination/disposal (net)
Less: Benefits paid
Add: Adjustment for earlier years
Less: Settlements
–
–
–
–
–
–
–
(0.20)
–
–
294.32
301.41
4.76
(2.03)
13.60
(0.80)
(127.70)
(140.08)
(388.56)
(391.47)
0.13
–
0.97
0.02
(0.50)
(18.16)
–
–
Closing balance of the plan assets
615.72
559.86
3348.38
3041.76
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 interest income on plan assets:
The Trust formed by the Parent Company and a few subsidiaries manage the investments of provident funds and gratuity
fund. Interest income on plan assets is determined by multiplying the fair value of the plan assets by the discount rate
stated in (g) (i) below both determined at the start of the annual reporting period.
The Group expects to fund v 37.48 crore (previous year: v 54.70 crore) towards its gratuity plan and v 140.68 crore
(previous year: v 145.15 crore) towards its trust-managed provident fund plan during the year 2017-18.
Employer’s contribution to provident fund.
$
(v)
The fair value of major categories of plan assets are as follows:
Gratuity plan
v crore
Quoted
Unquoted
Total
Quoted
Unquoted
Total
Quoted
Unquoted
Total
As at
31-3-2017
As at
31-3-2017
As at
31-3-2017
As at
31-3-2016
As at
31-3-2016
As at
31-3-2016
As at
1-4-2015
As at
1-4-2015
As at
1-4-2015
–
10.97
0.07
4.76
0.65
4.76
11.62
160.39
160.46
0.10
5.51
0.03
1.50
0.30
1.60
5.81
138.59
138.62
0.09
5.00
0.03
1.36
0.28
1.45
5.28
125.67
125.70
Particulars
Cash and cash equivalents
Equity instruments
Debt instruments - Corporate bonds
Debt instruments - Central Government
bonds
108.50
40.85
149.35
101.52
36.21
137.73
92.06
32.83
124.89
Debt instruments - State Government
bonds
97.71
5.49
103.20
83.34
5.09
88.43
75.57
4.62
80.19
409
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
Particulars
Debt instruments - Public Sector Unit
bonds
Mutual funds - Equity
Mutual funds - Debt
Mutual funds - Others
Special deposit scheme
Fixed deposits
Others
Gratuity plan
v crore
Quoted
Unquoted
Total
Quoted
Unquoted
Total
Quoted
Unquoted
Total
As at
31-3-2017
As at
31-3-2017
As at
31-3-2017
As at
31-3-2016
As at
31-3-2016
As at
31-3-2016
As at
1-4-2015
As at
1-4-2015
As at
1-4-2015
2.34
0.21
–
–
0.77
–
–
53.99
47.31
0.37
0.07
55.38
0.86
25.03
56.33
47.52
0.37
0.07
56.15
0.86
25.03
3.91
–
–
–
0.70
–
–
65.46
40.63
0.37
0.04
50.82
0.91
24.83
69.37
40.63
0.37
0.04
51.52
0.91
24.83
3.55
–
–
–
0.62
–
–
59.35
36.84
0.33
0.04
46.08
0.82
22.50
62.90
36.84
0.33
0.04
46.70
0.82
22.50
Closing balance of the plan assets
220.57
395.15
615.72
195.11
364.75
559.86
176.92
330.72
507.64
Particulars
Trust-managed provident fund plan
Quoted
Unquoted
Total
Quoted
Unquoted
Total
Quoted
Unquoted
Total
As at
31-3-2017
As at
31-3-2017
As at
31-3-2017
As at
31-3-2016
As at
31-3-2016
As at
31-3-2016
As at
1-4-2015
As at
1-4-2015
As at
1-4-2015
v crore
Cash and cash equivalents
Equity instruments
–
–
12.53
12.53
–
–
–
–
9.76
–
9.76
–
–
–
12.31
12.31
–
–
Debt instruments - Corporate bonds
353.45
113.96
467.41
146.93
116.00
262.93
59.84
136.17
196.01
Debt instruments - Central Government
bonds
Debt instruments - State Government
bonds
Debt instruments - Public Sector Unit
659.29
688.71
–
–
659.29
739.23
–
739.23
656.12
–
656.12
688.71
472.41
–
472.41
406.36
–
406.36
bonds
Mutual funds - Equity
Mutual funds - Debt
Mutual funds - Others
Special deposit scheme
Fixed deposits
Others
408.53
648.03
1056.56
406.54
742.08
1148.62
351.42
771.98
1123.40
12.82
–
–
–
–
–
67.41
4.11
–
80.23
4.11
–
268.34
268.34
–
–
111.20
111.20
0.81
–
–
–
–
–
20.04
17.87
–
20.85
17.87
–
270.94
270.94
–
–
99.15
99.15
–
–
–
–
–
–
1.89
1.89
–
–
–
–
271.71
271.71
–
–
95.41
95.41
Closing balance of the plan assets
2122.80
1225.58
3348.38
1765.92
1275.84
3041.76
1473.74
1289.47
2763.21
(vi) The Average duration of the Defined Benefit Plan Obligation at the end of the reporting period is as follows:
Plans
As at 31-3-2017 As at 31-3-2016
As at 1-4-2015
1. Gratuity
2.
3.
Post-retirement medical benefit plan
Pension plan
7.54
17.48
8.06
7.18
16.55
8.07
7.06
18.55
9.60
410
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
(vii) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted average) :
(A) Discount rate:
(a) Gratuity plan
(b) Pension plan
(c) Post-retirement medical benefit plan
(B) Annual increase in healthcare costs (see note below)
(C) Salary Growth rate:
(a) Gratuity plan
(b) Pension plan
(D) Attrition Rate:
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
7.10%
7.10%
7.10%
5.00%
5.00%
6.00%
7.80%
7.80%
7.80%
5.00%
5.00%
6.00%
7.84%
7.84%
7.84%
5.00%
5.00%
6.00%
(a) For post-retirement medical benefit plan & 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.
(E) 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.
(F) 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.
(G) The obligation of the Group under the post-retirement medical benefit plan is limited to the overall ceiling limits. At
present, healthcare cost, as indicated in the principal actuarial assumption given above, has been assumed to increase at
5% p.a.
(H) A one percentage point change in actuarial assumptions would have the following effects on defined benefit obligation:
Particulars
Effect of 1% increase
31-Mar-17
31-Mar-16
Effect of 1% decrease
31-Mar-17
31-Mar-16
v crore
Gratuity
Impact of change in salary growth rate
Impact of change in discount rate
Post-retirement medical benefit plan
Impact of change in health care cost
Impact of change in discount rate
Pension plan
51.69
(44.36)
27.53
(36.17)
43.51
(37.56)
24.69
(27.93)
(39.68)
45.65
(21.99)
46.02
(31.46)
35.83
(19.75)
34.87
Impact of change in discount rate
(26.07)
(21.80)
26.68
25.26
(viii) Characteristics of defined benefit plans and associated risks:
(A) Gratuity plan:
The Parent 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 The Payment of Gratuity Act, 1972.
The defined benefit plans for gratuity of the Parent Company and material domestic subsidiary companies are
administered by separate gratuity funds that is legally separate from the Parent Company and the material domestic
subsidiary companies. The trustees nominated by the group are responsible for the administration of the plan. There
411
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
are no minimum funding requirements of these plans. The funding of these plans is based on gratuity fund’s actuarial
measurement framework set out in the funding policies of the plan. These actuarial measurements are similar compared
to the assumptions set out in (g) supra. An insignificant portion of the gratuity plan of the group attributable to
subsidiary companies is administered by the respective subsidiary companies and is funded through insurer managed
funds. A small part of the gratuity plan, which is not material, is unfunded and managed within the group. Employees
do not contribute to any of these plans.
(B) 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. The plan is unfunded. Employees do not contribute to the plan.
(C) Pension plan:
In addition to contribution to state-managed pension plan (EPS scheme), the Group operates a post retirement pension
scheme, which is discretionary in nature for certain cadres of employees. The quantum of pension depends on the cadre
of the employee at the time of retirement. The plan is unfunded. Employees do not contribute to the plan.
(D) Trust managed provident fund plan:
The Parent Company and a few subsidiaries manage provident fund plan through a provident fund trust for its
employees which is permitted under the Employee Provident Fund and Miscellaneous Provisions Act, 1952. The plan
mandates contribution by employer at a fixed percentage of employee’s salary. Employees also contribute to the plan at
a fixed percentage of their salary as a minimum contribution and additional sums at their discretion. The plan guarantees
interest at the rate notified by 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.
All the above defined benefit plans expose the Group to general actuarial risks such as interest rate risk and market
(investment) risk.
NOTE [46]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 ‘’Operating Segments’’
(a)
Information about reportable segments
Particulars
2016-17
Inter-segment
External
v crore
2015-16
Total
External Inter-segment
Total
Revenue
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Elimination
Total
412
52923.08
997.73
53920.81
48967.13
1591.21
50558.34
6938.56
3149.15
4968.56
9602.50
9731.29
8545.17
4027.78
10124.91
0.23
297.79
398.71
25.84
156.25
0.12
339.50
737.52
6938.79
3446.94
5367.27
9628.34
9887.54
8545.29
4367.28
10862.43
6424.50
3082.75
4940.68
8548.65
8855.03
7693.92
4336.36
9126.32
2.30
173.12
460.62
69.60
159.56
1.08
283.66
594.10
6426.80
3255.87
5401.30
8618.25
9014.59
7695.00
4620.02
9720.42
–
(2953.69)
(2953.69)
–
(3335.25)
(3335.25)
110011.00
–
110011.00
101975.34
– 101975.34
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46] (contd.)
2016-17
Inter-segment
External
v crore
2015-16
Total
External Inter-segment
Total
Particulars
Segment result [Profit/(Loss) before interest and
tax]
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Total
Less: Inter segment margins on capital jobs
Less: Interest expenses
Add: Unallocated corporate income net of expenditure
Profit before tax
Provision for current tax
Provision for deferred tax
Profit after tax
Additional provision/(reversal) of tax on dividend
distributed by subsidiaries
Share in profit/(loss) of joint venture/associate companies
(net)
Adjustments for non-controlling interest in subsidiaries
Net profit after tax, non-controlling interest and
share in profit/(loss) of joint ventures/associates
4722.54
201.18
498.57
549.89
508.42
1825.53
786.44
32.01
414.69
9539.27
(28.14)
(1339.84)
716.07
8887.36
(2976.31)
827.76
6738.81
141.96
(395.27)
(444.27)
6041.23
4990.54
112.84
(97.47)
433.06
(95.28)
1584.32
1304.26
238.56
989.49
9460.32
(62.15)
(1655.06)
276.51
8019.62
(2817.69)
380.73
5582.66
(47.80)
(990.16)
(311.82)
4232.88
v crore
As at
1-4-2015
25646.78
6118.86
2769.97
1932.70
4290.42
1307.62
Segment liabilities
As at
31-3-2017
33912.75
6362.49
3815.67
1935.65
5589.70
1813.49
As at
31-3-2016
30239.78
7382.07
3788.95
1774.34
4567.99
1606.85
64341.27
56955.10
46316.32
8931.32
6844.74
8548.13
6879.62
8373.32
5921.02
Other information
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment Total
As at
31-3-2017
50020.69
6847.03
5112.41
4364.25
6728.63
6085.75
71841.82
28240.72
18459.26
Segment assets
As at
31-3-2016
46687.58
7964.47
5449.93
4472.16
6143.98
4306.78
64212.75
25315.31
19361.19
As at
1-4-2015
38505.15
6577.07
5424.71
4714.69
6005.52
4310.12
52645.83
22778.97
19969.41
197700.56
183914.15
160931.47
133547.08
121742.83
102677.01
Corporate unallocated assets/liabilities
Inter-segment assets/liabilities
15849.36
(1490.25)
12664.22
(1852.22)
12367.74
(2177.41)
26222.72
(1490.25)
27762.34
(1852.22)
27443.49
(2177.41)
Consolidated total assets/liabilities
212059.67
194726.15
171121.80
158279.55
147652.95
127943.09
413
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46] (contd.)
Other information
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment Total
Corporate unallocated
Consolidated total
Depreciation, amortisation,
impairment & obsolescence
included in segment expenses
2016-17
2015-16
650.53
44.40
116.69
151.10
148.87
236.81
78.00
58.07
665.00
2149.47
220.46
2369.93
487.89
58.31
118.90
146.08
147.67
232.07
114.20
58.05
299.95
1663.12
123.61
1786.73
v crore
Other non-cash expenses
included in segment expenses
2016-17
19.81
2015-16
22.09
1.99
2.49
3.83
7.97
13.46
4.79
–
4.62
58.96
29.21
88.17
3.23
3.31
4.87
5.00
(13.90)
15.99
–
5.73
46.32
21.23
67.55
Note: Impairment loss included in other segment is v 412.57 crore (previous year: v Nil) and in Corporate unallocated is v 103 crore
(previous year: v Nil).
Interest income
included in segment
result
Interest expense
included in segment
expense
v crore
Profit/(loss) of
joint ventures and
associates accounted
applying equity
method included in
segment result
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
25.96
30.36
0.00
0.27
6.71
45.09
4.62
89.11
0.03
31.56
203.35
527.66
0.14
0.43
3.44
7.09
7.51
4.89
28.46
154.93
504.64
–
–
–
–
–
–
–
–
–
–
–
–
1.25
122.32
4.08
67.94
(186.81)
(209.15)
–
2.49
6.19
(39.84)
–
6.14
–
0.96
647.60
662.97
(344.65)
(818.73)
–
–
0.29
2.09
5425.51
5001.98
(395.27)
(990.16)
72.61
4777.91
4339.01
(308.39)
(232.72)
(63.42)
(34.87)
–
–
–
–
–
–
422.62
426.85
5362.09
4967.11
(395.27)
(990.16)
Other information
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment Total
Corporate unallocated
Inter-segment
Consolidated total
414
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46] (contd.)
Other information
Infrastructure
Power
Heavy Engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment total
Unallocable
Inter-segment
Consolidated total
(b) Geographical Information
Other information
India (a)
Foreign countries (b):
United States of America
Kingdom of Saudi Arabia
Sultanate of Oman
United Arab Emirates
Kuwait
Qatar
Other countries
Total Foreign countries (b)
Total (a+b)
Other information
India
Foreign countries
Total
Additions to non-current
assets
Investment in joint ventures and
associates accounted applying equity
method included in segment assets
v crore
2016-17
2015-16
616.27
100.17
96.87
176.94
111.93
158.31
441.11
2549.73
652.84
4904.17
579.24
(217.31)
5266.10
1224.56
449.81
237.65
333.77
48.14
311.36
568.71
3027.70
2507.76
8709.46
149.50
(515.70)
8343.26
As at
31-3-2017
3.04
595.57
5.87
–
334.43
–
50.55
1764.72
18.72
2772.90
–
–
2772.90
As at
31-3-2016
2.11
488.42
5.87
(0.00)
320.68
–
44.96
378.58
17.26
1257.88
–
–
1257.88
Revenues
2016-17
72357.51
6580.12
7059.39
5583.41
3354.10
2968.44
4950.40
7157.63
37653.49
110011.00
As at
31-3-2017
31842.67
1535.91
33378.58
Non-current Assets
As at
31-3-2016
30923.77
1903.56
32827.33
As at
1-4-2015
(0.01)
420.11
5.79
29.08
284.19
–
38.56
1269.05
19.88
2066.65
–
–
2066.65
v crore
2015-16
69362.16
5929.70
4660.31
5319.09
2814.36
1771.07
4561.38
7557.27
32613.18
101975.34
v crore
As at
1-4-2015
27556.15
1545.37
29101.52
(c)
Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed
ten percent of the group’s total revenue.
(d)
The group’s reportable segments are organized based on the nature of products and services offered by these segments.
415
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46] (contd.)
(e) Segment reporting: basis of identifying operating segments, reportable segments and definition of each reportable segment:
(i) Basis of identifying Operating segments:
Operating segments are identified as those components of the groups (a) that engage in business activities to earn revenues
and incur expenses (including transactions with any of the group’s other components); (b) whose operating results are
regularly reviewed by the group’s executive management committee (EMC) to make decisions about resource allocation and
performance assessment; and (c) for which discrete financial information is available.
The group has eight reportable segments as described under “segment composition” below which are the group’s
independent businesses. The nature of products and services offered by these businesses are different and are managed
separately given the different sets of technology and competency requirements. In arriving at the reportable segment, the
six operating segments have been aggregated and reported as “infrastructure segment” as these operating segments have
similar economic characteristics in terms of long term average gross margins, nature of the products and services, type of
customers, methods used to distribute the products and services and the nature of regulatory environment applicable to
them.
(ii) Reportable segments
An operating segment is classified as Reportable segment if reported revenue (including inter-segment revenue) or absolute
amount of result or assets exceed 10% or more of the combined total of all the operating segments.
(iii) Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal
management reports that are reviewed by the group’s EMC. The performance of financial services segment and finance lease
activities of power development segment are measured based on segment profit (before tax) after deducting the interest
expense.
(iv) Segment composition
•
•
•
•
•
•
•
•
Infrastructure segment comprises engineering and construction of building and factories, transportation
infrastructure, heavy civil infrastructure, power transmission & distribution, water and 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.
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.
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 (up to the date of sale), asset management of mutual fund schemes and related advisory services.
Developmental projects segment comprises development, operation and maintenance of basic infrastructure projects,
toll collection, power development, development and operation of port facilities and providing related advisory services.
• Others segment includes metallurgical & material handling systems, 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 (upto the date of sale), mining and aviation. None of the businesses reported as part of
others segment meet any of the quantitative thresholds for determining reportable segments for the year ended March
31, 2017.
416
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Indian Accounting Standard (Ind AS) 24 ‘’Related Party Disclosures’’:
(a) Names of the related parties with whom transactions were carried out during the year and description of relationship:
Associate companies:
L&T-Chiyoda Limited
1
3
L&T Camp Facilities LLC
5 Magtorq Private Limited
7
9
Feedback Infra Private Limited
JSK Electricals Private Limited *
Larsen and Toubro Qatar & HBK Contracting LLC
Salzer Electronics Limited***
2
4
6
8
10 Vizag IT Park Limited#
Rishi Consfab Private Limited**
International Seaports (Haldia) Private Limited
* The Group has sold its stake on March 29, 2016.
*** The Group has sold its stake in July and August 2015. # The Group has sold its stake on March 31, 2016.
** The Group has sold its stake on December 21, 2015.
Joint ventures:
1 L&T Special Steels & Heavy Forgings Private Limited
3 L&T Howden Private Limited
5 L&T-MHPS Turbine Generators Private Limited
7 L&T Infrastructure Development Projects Limited
9 L&T Deccan Tollways Limited
11 L&T IDPL Trustee Managers Pte. Ltd.
13 Larsen and Toubro Electromech LLC
15 Raykal Aluminium Company Private Limited
17 L&T Sapura Offshore Private Limited
19 Krishnagiri Thopur Toll Road Limited
21 Vadodara Bharuch Tollway Limited
23 L&T Transportation Infrastructure Limited
25 L&T Halol Shamlaji Tollway Limited
27 Kudgi Transmission Limited
29 PNG Tollway Limited
31 L&T Chennai-Tada Tollway Limited
33 L&T Western India Tollbridge Limited
Key management personnel & their relatives:
(a) Executive Directors
2 L&T-Sargent & Lundy Limited
4 L&T-MHPS Boilers Private Limited
6 L&T Kobelco Machinery Private Limited
8 L&T Samakhiali Gandhidham Tollway Limited
10 L&T Krishnagiri Walajahpet Tollway Limited
12 L&T BPP Tollway Limited
14 L&T-Gulf Private Limited
16 L&T Sapura Shipping Private Limited
18 Panipat Elevated Corridor Limited
20 Western Andhra Tollways Limited
22 L&T Interstate Road Corridor Limited
24 Devihalli Hassan Tollway Limited
26 Ahmedabad-Maliya Tollway Limited
28 L&T Sambalpur-Rourkela Tollway Limited
30 L&T Rajkot-Vadinar Tollway Limited
32 Indiran Engineering Projects and System Kish PJSC
34 L&T Port Kachchigarh Limited
1 Mr. A.M. Naik (Group Executive Chairman)
2 Mr. K. Venkataramanan (CEO & Managing Director) $
3 Mr. M. V. Kotwal (Whole-time Director) $$
5 Mr. S.N.Subrahmanyan (Whole-time Director)
7 Mr. D. K. Sen (Whole-time Director) #
(b)
Independent/Non-executive Directors
1 Mr. M. M. Chitale
3 Mr. Vikram Singh Mehta
5 Mr. Adil Zainulbhai
7 Mr. Thomas Mathew T. @
9 Mr. Akhilesh Krishna Gupta
11 Ms. Sunita Sharma ~
13 Mr. Ajay Shankar **
15 Mr. Sanjeev Aga ^
$ Retired on September 30, 2015
@ Appointed w.e.f. April 3, 2015
* Separated w.e.f. August 1, 2016
^^ Appointed w.e.f. May 27, 2016
Provident Fund Trusts:
Ms. Jyothi Venkataramanan (wife)
4 Mr. R. Shankar Raman (CFO & Whole-time Director)
6 Mr. Shailendra Roy (Whole-time Director )
8 Mr. M. V. Satish (Whole-time Director) ##
2 Mr. M. Damodaran
4 Mr. Sushobhan Sarker
6 Mr. Subodh Bhargava
8 Ms. Naina Lal Kidwai @@
10 Mr. Swapan Dasgupta @@@
12 Mr. Bahram Vakil *
14 Mr. Subramanian Sarma ***
16 Mr. Narayanan Kumar ^^
$$ Retired on August 26, 2015
#Appointed w.e.f. October 1, 2015
@@ Appointed w.e.f. March 1, 2016 @@@ Appointed w.e.f. April 1, 2015 and separated w.e.f. May 15, 2016
** Appointed w.e.f. May 30, 2015
~ Appointed w.e.f. April 1, 2015
*** Appointed w.e.f. August 19, 2015
^ Appointed w.e.f. May 25, 2016
##Appointed w.e.f. January 29, 2016
1 The Larsen & Toubro Officers & Supervisory Staff Provident Fund
3 The Larsen & Toubro Limited Provident Fund
5 L&T Kansbahal Officers & Supervisory Provident Fund
7 L&T Valves Employees Provident Fund
2 The Larsen & Toubro Limited Provident Fund of 1952
4 L&T Kansbahal Staff & Workmen Provident Fund
6 L&T Construction Equipment Provident Fund Trust
417
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Gratuity Trusts:
1 Laresen & Toubro Officers & Supervisors Gratuity Fund
3 Larsen and Toubro Technology Services Ltd Eggas
5 Nabha Power Limited Employees’ Group Gratuity
Assurance Scheme
(b) Disclosure of related party transactions:
2 Larsen & Toubro Gratuity Fund
4 L&T Shipbuilding Limited Employees Group Assurance
Scheme
Sr.
no.
(i)
Nature of transaction/relationship/major parties
Purchase of goods & services (including commission paid)
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Larsen and Toubro Electromech LLC
Associates, including:
L&T-Chiyoda Limited
JSK Electricals Private Limited
Salzer Electronics Limited
Magtorq Private Limited
Total
(ii)
Sale of goods/contract revenue & services
Joint ventures, including:
L&T Infrastructure Development Projects Limited
L&T Deccan Tollways Limited
L&T-MHPS Boilers Private Limited
Associate :
L&T-Chiyoda Limited
Total
(iii)
Purchase/lease of property, plant and equipment
Joint venture:
L&T Infrastructure Development Projects Limited
Total
(iv)
Sale of Property, plant and equipment
Joint ventures, including:
L&T-MHPS Turbine Generators Private Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T Howden Private Limited
Associate :
L&T-Chiyoda Limited
Key management personnel
Mr. K. Venkataramanan $
Mr. M. V. Kotwal $$
Total
(v)
Investments including subscription to equity and preference shares
(including application money)
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Total
418
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
2360.29
2222.85
1675.16
530.79
–
52.29
–
–
544.28
394.35
157.14
0.42
0.02
–
–
–
–
–
–
60.78
2421.07
1108.19
0.42
1108.61
0.02
0.02
–
–
–
–
(0.25)
(0.25)
(0.03)
(0.22)
1256.68
536.02
304.92
16.96
27.99
37.33
10.16
653.99
533.50
–
0.04
0.26
0.19
0.05
0.01
8.85
0.44
–
1.09
96.57
2319.42
1317.94
–
1317.94
0.04
0.04
0.50
0.01
9.29
9.80
1.09
1.09
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
Sr.
no.
(vi)
Nature of transaction/relationship/major parties
Purchase of investments from
Joint venture:
L&T Infrastructure Development Projects Limited
Total
(vii) Sale of investments to
Joint venture:
L&T Infrastructure Development Projects Limited
Total
(viii) Charges paid for miscellaneous services
Joint ventures, including:
L&T-Gulf Private Limited
L&T-Sargent & Lundy Limited
Associates, including:
L&T-Chiyoda Limited
Total
(ix) Rent paid, including lease rentals under leasing/hire purchase
arrangements
Joint venture:
L&T Infrastructure Development Projects Limited
Key management personnel
Mr. K. Venkataramanan $ & Ms. Jyothi Venkataramanan
Total
(x)(a) Charges incurred for deputation of employees from related parties
Joint venture:
L&T Infrastructure Development Projects Limited
Total
(x)(b) Charges recovered for deputation of employees to related parties
Joint ventures, including:
L&T Sapura Shipping Private Limited
L&T Special Steels and Heavy Forgings Private Limited
Associate:
L&T-Chiyoda Limited
Total
(xi) Dividend received
Joint venture:
L&T-Sargent & Lundy Limited
Associates, including:
International Seaports (Haldia) Private Limited
Vizag IT Park Limited
Feedback Infra Private Limited
2041.57
2041.57
2041.57
–
–
6.41
6.42
12.83
–
–
–
–
–
9.59
18.01
27.60
–
0.57
–
2.47
3.62
6.06
–
–
–
5.60
18.01
–
–
–
0.57
–
–
21.54
21.54
10.46
6.53
16.99
0.01
0.01
0.02
2.41
2.41
9.16
18.72
27.88
13.75
5.63
Total
0.57
19.38
–
21.54
2.67
7.07
6.53
0.01
0.01
2.41
6.70
1.87
18.72
13.75
2.46
2.22
0.57
419
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
no.
(xii) Commission received, including those under agency arrangements
Nature of transaction/relationship/major parties
Joint venture:
L&T Kobelco Machinery Private Limited
Total
(xiii) Rent received, overheads recovered and miscellaneous income
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-Sargent & Lundy Limited
L&T-MHPS Turbine Generators Private Limited
L&T Special Steels and Heavy Forgings Private Limited
Larsen and Toubro Electromech LLC
Associate:
L&T-Chiyoda Limited
Key management personnel:
Mr. D. K. Sen #
Total
(xiv)
Interest paid to
Joint venture:
L&T Infrastructure Development Projects Limited
Total
(xv)
Interest Received from
Joint ventures, including:
L&T Special Steels and Heavy Forgings Private Limited
Associate:
L&T Camp Facilities LLC
Total
(xvi) Contribution to post-employment benefit plan
Transaction with trust managed provident fund
(a)
Towards Employer’s contribution
(i)
The Larsen & Toubro Officers & Supervisory Staff
Provident Fund
Total
(ii)
Towards advance contribution
The Larsen & Toubro Limited Provident Fund
Total
(iii)
Subscription or purchase by the fund of the debt securities issued by
the company
The Larsen & Toubro Officers & Supervisory Staff
Provident Fund
Total
(b)
(i)
Transaction with approved gratuity fund
Towards Employer’s contribution
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Larsen and Toubro Technology Services Limited Eggas
Total
420
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
0.65
0.65
94.83
5.23
0.07
100.13
–
–
82.48
0.20
82.68
113.35
113.35
–
–
–
–
35.61
35.61
0.65
35.50
17.70
9.64
5.23
0.07
–
78.98
0.20
101.00
–
–
23.59
6.26
5.15
2.64
2.64
93.66
3.85
–
97.51
3.89
3.89
58.04
0.19
58.23
109.73
109.73
0.43
0.43
25.00
25.00
72.42
72.42
2.64
23.50
17.67
10.32
10.02
9.83
3.85
–
3.89
52.58
0.19
97.10
0.43
25.00
47.73
12.00
11.80
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
no.
(ii)
Nature of transaction/relationship/major parties
Towards advance contribution
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
2016-17
2015-16
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
–
–
–
–
–
60.00
60.00
48.15
11.85
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective
period.
(xvii) Compensation paid to key management personnel (KMP):
KMP
Total
Short term
employee
benefits
21.86
–
–
13.26
9.00
8.13
6.20
5.96
15.39
2016-17
Post-
employment
benefits
5.83
–
–
3.51
2.38
1.93
1.57
1.44
–
Other
long term
benefits
32.21*
–
–
–
–
–
–
–
–
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. Subramanian Sarma
(Non-Executive Director)
Other Non-Executive Directors
Total
$ Retired on September 30, 2015
* Represents encashment of past service accumulated leave
** Represents fair value of employee stock options granted during 2015-16 to be vested over a period of time.
–
32.21
# Appointed w.e.f. October 1, 2015
59.90
–
–
16.77
11.38
10.06
7.77
7.40
15.39
$$ Retired on August 26, 2015
4.37
133.04
4.06
68.35
–
16.66
4.37
84.17
Short term
employee
benefits
21.57
4.74
3.35
11.53
8.28
6.43
2.60
0.93
4.86
Post-
employment
benefits
5.76
22.43
15.35
3.06
2.19
1.47
0.69
0.24
–
2015-16
Other long
term benefit
Share-based
payment
–
13.53
7.89
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10.35**
–
51.19
–
10.35
## Appointed w.e.f. January 29, 2016
–
21.42
(c) Amount due to/from related parties (including commitments):
v crore
Total
27.33
40.70
26.59
14.59
10.47
7.90
3.29
1.17
15.21
4.06
151.31
v crore
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Sr.
no.
Category of balance/relationship/major parties
Amount
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
(i) Accounts receivable
Joint ventures, including:
410.81
554.78
439.07
L&T-MHPS Boilers Private Limited
L&T Infrastructure Development Projects
Limited
L&T Samakhiali Gandhidham Tollway
Limited
L&T Deccan Tollways Limited
L&T Krishnagiri Walajahpet Tollway
Limited
Associate:
L&T-Chiyoda Limited
Total
–
410.81
65.64
78.42
43.30
125.63
44.68
–
102.76
129.61
58.20
139.21
0.01
0.01
554.79
–
439.07
77.32
111.62
89.13
90.97
–
421
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
Sr.
no.
Category of balance/relationship/major parties
Amount
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
(ii) Accounts payable, including other liabilities
Joint ventures, including:
1930.01
1726.56
1477.02
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private
Limited
Associates, including:
L&T-Chiyoda Limited
Salzer Electronics Limited
Magtorq Private Limited
1171.96
611.61
1042.26
560.50
14.91
15.19
31.70
11.40
–
2.65
6.42
–
7.79
Total
1944.92
1741.75
1508.72
(iii)
Loans and advances recoverable (including loans
and advances towards financing activities)
Joint ventures, including:
L&T Special Steels and Heavy Forgings
Private Limited
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private
Limited
Associates, including:
L&T-Chiyoda Limited
L&T Camp Facilities LLC
Key management personnel:
Mr. K Venkataramanan$ &
Ms. Jyothi Venkataramanan
1731.17
1726.09
1734.43
1185.55
215.18
210.22
27.24
26.96
–
7.87
18.97
–
877.65
431.85
282.66
7.78
19.18
24.62
–
0.01
–
0.01
Total
1758.41
1753.05
1759.06
(iv) Advances received in the capacity of supplier of
goods/services classified as “advances from
customers” in the Balance Sheet
Joint ventures, including:
L&T Infrastructure Development Projects
Limited
L&T Deccan Tollways Limited
L&T-MHPS Boilers Private Limited
23.21
119.27
228.89
21.54
68.84
36.97
13.46
122.24
96.03
–
Total
23.21
119.27
228.89
422
830.70
547.27
8.19
18.54
564.77
606.29
421.59
6.71
17.92
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
no.
Category of balance/relationship/major parties
Amount
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
Amounts
for major
parties
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
v crore
(v) Due to directors*
(Key management personnel)
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 ##
55.58
51.30
53.83
18.24
–
–
11.29
7.41
5.84
4.93
4.32
17.96
3.77
2.04
9.90
6.90
4.40
2.13
0.73
Total
55.58
51.30
(vi) Revenue commitment given
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private
Limited
Associates, including:
L&T-Chiyoda Limited
JSK Electricals Private Limited
Salzer Electronics Limited
Feedback Infra Private Limited
Magtorq Private Limited
Total
(vii) Commitment to Fund
Joint venture:
L&T Infrastructure Development Projects
Limited
Total
(viii) Revenue commitment received
Joint ventures, including:
L&T Infrastructure Development Projects
Limited
L&T Deccan Tollways Limited
L&T Krishnagiri Walajahpet Tollway
Limited
L&T BPP Tollway Limited
53.83
517.08
3386.85
3385.37
2232.20
1086.15
2254.94
1066.91
3.89
3.53
5.82
0.96
–
–
0.80
2.13
1.29
–
–
1.59
0.65
3390.74
3388.90
522.90
–
–
405.00
1443.41
–
405.00
1443.41
405.00
1443.41
138.67
1000.60
2225.39
60.00
25.95
13.65
26.27
593.65
350.30
–
–
1236.11
883.80
–
18.19
7.39
4.91
8.73
6.91
4.48
–
–
300.05
177.16
0.78
3.10
1.67
Total
138.67
1000.60
2225.39
$ 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 who account for 10% or more of the aggregate for that category of balance during respective
period.
*Includes commission due to non-executive directors R 3.55 crore (as at 31-3-2016 R 3.47 crore; as at 1-4-2015 R 3.22 crore)
423
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [48]
Disclosure in respect of Leases pursuant to Indian Accounting Standard (Ind AS) 17 ‘’Leases’’:
(a) Where the Group is a Lessor:
Finance leases:
Assets given under leases mainly include power plant where the Group has agreed to manufacture/construct an asset and
convey, in substance, a right to the beneficiary to use the asset over a major part of its economic life, for a pre-determined
consideration.
(i)
The total gross investment in these leases and the present value of minimum lease payments receivable are as under:
Sr.
no.
1.
2.
3.
Particulars
Receivable not later than 1 year
Receivable later than 1 year and not later than 5 years
Receivable later than 5 years
Gross investment in lease (1+2+3)
Less: Unearned finance income
v crore
Minimum Lease Payments
Present value of minimum lease
payments
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
1493.73
5194.38
1553.53
1508.37
6644.52
6994.47
309.72
771.25
332.12
923.29
280.26
1108.00
19641.82 19696.09 19855.00
8143.14
8318.78
7904.34
26329.93 27894.14 28357.84
9224.11
9574.19
9292.60
17105.82 18319.95 19065.24
Present value of minimum lease payments receivable
9224.11
9574.19
9292.60
(ii) Operating leases:
The Group has given certain assets under non-cancellable operating lease, the future minimum lease payments receivable in
respect of which are as follows:
Sr.
no.
1.
2.
3.
Particulars
Receivable not later than 1 year
Receivable later than 1 year and not later than 5 years
Receivable later than 5 years
Total
As at
31-3-2017
82.73
74.47
1.45
158.65
As at
31-3-2016
136.08
212.16
9.68
357.92
v crore
As at
1-4-2015
177.76
208.92
27.31
413.99
(i)
(b) Where the Group is a Lessee:
Finance leases:
A. Assets acquired on finance lease comprises of motor vehicles and land. The motor vehicles leases have a primary period,
which is fixed and non-cancellable. The Group 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.
B.
The minimum lease rentals and the present value thereof in respect of assets acquired under finance leases are as
follows:
Sr.
no.
1.
2.
3.
Particulars
Payable not later than 1 year
Payable later than 1 year and not
later than 5 years
Payable later than 5 years
Total (1+2+3 )
Less: Future finance charges
Present value of minimum lease
payments
Minimum lease payments
Present value of minimum lease
payments
v crore
As at
31-3-2017
0.67
As at
31-3-2016
0.13
As at
1-4-2015
1.76
As at
31-3-2017
0.60
As at
31-3-2016
0.11
As at
1-4-2015
–
0.22
0.13
1.02
0.17
0.85
0.21
0.15
0.49
0.15
6.71
95.88
104.35
64.71
0.34
39.64
0.19
0.06
0.85
0.17
0.06
0.34
–
39.64
39.64
424
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [48] (contd.)
C. Contingent Rent recognised in the Statement of Profit and Loss: v Nil (previous year v Nil)
(ii) Operating leases:
A. The Group has taken various commercial premises and plant and equipment under cancellable operating leases.
B.
[a] The Group has taken certain assets on non-cancellable operating leases, the future minimum lease payments in
respect of which are as follows:
Sr.
no.
1.
2.
3.
Particulars
Payable not later than 1 year
Payable later than 1 year and not later than 5 years
Payable later than 5 years
Total
v crore
Minimum lease payments
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
226.14
695.13
290.58
219.71
815.52
351.54
1211.85
1386.77
125.82
374.21
358.82
858.85
[b] The lease agreements provide for an option to the Group to renew the lease period at the end of the non-
cancellable period. There are no exceptional / restrictive covenants in the lease agreements.
C.
Lease rental expense in respect of operating leases: v 475.34 crore (previous year: v 448.35 crore)
D. Contingent rent recognised in the Statement of Profit and Loss: v Nil (previous year: v Nil)
NOTE [49]
Basic and Diluted Earnings per share [EPS] computed in accordance with Indian Accounting Standard (Ind AS) 33 “Earnings per Share’’:
Particulars
2016-17
2015-16
Basic EPS
Profit after tax as per accounts (v crore)
Weighted average number of equity shares outstanding
Basic EPS (v)
Diluted EPS
Profit after tax as per accounts (v crore)
Weighted average number of equity shares outstanding
Add: Weighted average number of potential equity shares on account of employee
stock options
A
B
A/B
A
B
C
6041.23
4232.88
93,23,49,030 93,07,61,648
64.80
45.48
6041.23
4232.88
93,23,49,030 93,07,61,648
31,60,400
43,02,265
Weighted average number of equity shares outstanding for diluted EPS
D=B+C
93,55,09,430 93,50,63,913
Diluted EPS (v)
Face value per share (v)
A/D
64.58
2.00
45.27
2.00
The following potential equity shares are anti-dilutive and are therefore excluded from the weighted average number of equity shares
for the purpose of diluted earning per share
Particulars
2016-17
2015-16
Weighted average number of potential equity shares on account of conversion of foreign currency
convertible bonds
63,46,986
63,46,986
Note: On May 29, 2017, the Board of Directors has recommended for the approval of shareholders, the issue of bonus equity shares in
the ratio 1:2 (one bonus equity share of v 2 each for every two equity shares of v 2 each held). The effect of the said bonus issue will be
given in the year 2017-18 post approval by shareholders.
425
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 12 “Income Taxes”
(a) Major components of tax expense/(income):
Sr.
no.
Particulars
Consolidated Statement of Profit and Loss:
(a)
Profit and Loss section:
(i) Current Income tax :
Current income tax expense
Tax expense of prior periods
(ii) Deferred Tax:
Tax expense on origination and reversal of temporary differences
Effect of previously unrecognised tax losses and tax offsets used to reduce tax expense
Income tax expense reported in the consolidated Statement of Profit and Loss [(i)+(ii)]
(b)
Other Comprehensive Income (OCI) section:
(i) Items not to be reclassified to profit or loss in subsequent periods:
Current tax expense/(income):
On remeasurement of defined benefit plans
(ii) Items to be reclassified to profit or loss in subsequent periods:
(A) Current tax expense/(income):
Forward covers settled, retained in hedging reserve
(B) Deferred tax expense/(income):
Net gain/(loss) on cost of hedging reserve
On Mark-to-Market (MTM) of cash flow hedges
On gain/(loss) on fair value of debt securities
On foreign currency translation
Income tax expense reported in the other comprehensive income [(i)+(ii)]
(c)
Retained earnings:
Current income tax
Deferred tax
Income tax expense reported in retained earnings
2016-17
v crore
2015-16
2975.63
0.68
2976.31
(767.50)
(60.26)
(827.76)
2148.55
(5.95)
(5.95)
(22.79)
(22.79)
(23.14)
265.41
1.09
(2.29)
241.07
212.33
(135.15)
134.85
(0.30)
2780.73
36.96
2817.69
(377.75)
(2.98)
(380.73)
2436.96
(3.64)
(3.64)
75.05
75.05
6.00
8.55
(1.29)
2.20
15.46
86.87
–
–
–
426
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [50] (contd.)
(b) Reconciliation of Income tax expense and accounting profit multiplied by domestic tax rate applicable in India:
Sr. no.
(a)
(b)
(c)
(d)
Particulars
Profit before tax
Corporate tax rate as per Income tax Act, 1961
Tax on accounting profit
(i)
Tax on Income exempt from tax:
(A) Dividend income and interest on tax free bonds
(B) Long term capital gains exempt from tax
(ii) Tax on expense not tax deductible:
(A) Corporate Social Responsibility (CSR) expenses
(B) Expenses in relation to exempt income
(C) Tax on employee perquisites borne by the Group
(c)=(a)*(b)
(iii) Weighted deduction on R&D expenditure and deduction u/s 80IA
(iv) Tax effect on impairment losses recognised and on which deferred tax asset
(DTA) is not recognised
(v) Effect of previously unrecognised tax losses used to reduce tax expense
(vi) Tax effect of losses of current year on which no deferred tax benefit is recognised
(vii) Effect of tax paid on foreign source income which is exempt from tax in India u/s
10AA
(viii) Effect of tax benefit on business combination under common control
(ix) Tax effect on various other Items
Total effect of tax adjustments [(i) to (ix)]
Tax expense recognised during the year
Effective tax Rate
(e)
(f)
(e)=(c)+(d)
(f)=(e)/(a)
2016-17
8887.36
34.61%
3075.74
(244.71)
(3.27)
42.37
20.51
3.38
(377.63)
97.25
(153.54)
398.43
(198.61)
(228.69)
(282.68)
(927.19)
2148.55
24.18%
v crore
2015-16
8019.62
34.61%
2775.43
(43.32)
(48.83)
46.97
50.75
2.67
(278.96)
–
(103.22)
440.91
(231.88)
–
(173.56)
(338.47)
2436.96
30.39%
(c)
(i) Unused tax losses and unused tax credits for which no deferred tax asset is recognised in Balance Sheet
Particulars
Tax losses (revenue loss on which no
tax asset is created)
- Amount of losses having expiry
- Amount of losses having no expiry
Tax losses (capital loss on which no tax
asset is created)
As at 31-3-2017
v crore
Expiry year
As at 31-3-2016
v crore Expiry year
As at 1-4-2015
v crore Expiry year
3235.46 AY 2017-38
–
2931.96 AY 2022-26
513.33
2824.45 AY 2017-37
–
1411.15 AY 2020-25
336.96
2122.59 AY 2017-36
133.78
–
249.46 AY 2020-24
Unused tax credits [Minimum Alternate
145.40 AY 2029-33
150.62 AY 2024-27
51.26 AY 2024-26
Tax (MAT) credit not recognised]
Total
6826.15
4723.18
2557.09
(ii) Unrecognised deductible temporary differences for which no deferred tax asset is recognised in Balance Sheet
Sr.
no.
(a) Deductible temporary differences towards provision for
Particulars
diminution in value of investments on which DTA not created
Temporary differences arising out of revaluation of tax base of
(b)
assets (on account of indexation benefit)
v crore
As at 31-3-2017 As at 31-3-2016 As at 1-4-2015
350.47
69.47
46.04
2164.85
1920.13
1680.94
Total
2515.32
1989.60
1726.98
427
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [50] (contd.)
(d)
(i) Major components of Deferred Tax Liabilities and Deferred Tax Assets:
Particulars
Deferred tax liabilities:
- Difference between book and tax
depreciation
- Disputed statutory liabilities paid and
claimed as deduction for tax purposes but
not debited to Statement of Profit and Loss
- Gain on Derivative Transactions to be offered
for tax purposes in the year of transfer/
settlement
- Other items giving rise to temporary
differences
Deferred tax liabilities:
Offsetting of deferred tax liabilities with
deferred tax(assets)
Net Deferred tax liabilities
Deferred tax (assets):
- Provision for doubtful debts, advances and
non-performing assets debited to Statement
of Profit and Loss
- Unpaid statutory liabilities
- Unabsorbed depreciation
- Carried forward tax losses
- Utilised MAT credit
Deferred
tax
liabilities/
(assets)
as at
31-3-2016
Charge/
(credit) to
Statement
of Profit
and Loss
1105.00
(315.85)
116.03
36.05
6.17
4.78
400.19
(134.96)
1627.39
(409.98)
(991.91)
635.48
(1037.33)
(537.95)
(215.72)
(20.93)
(412.78)
258.50
(323.30)
199.64
(382.57)
(300.01)
- Loss on derivative transactions to be claimed
for tax purposes in the year of transfer/
settlement
(133.56)
(53.90)
Charge/
(credit) to
Retained
Earnings
MAT credit
utilised
Effect
due to
acquisition/
disposal
Charge/(credit)
to other
comprehensive
income
Exchange
Difference
v crore
Deferred
tax
liabilities/
(assets)
as at
31-3-2017
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14.61
–
–
–
–
1.48
–
0.01
–
–
–
34.41
–
–
–
790.63
152.09
45.36
(0.01)
1.48
–
34.41
(1.10)
(1.10)
264.12
1252.20
(641.25)
610.95
–
–
–
–
–
–
–
(1575.28)
(236.64)
(150.59)
(123.66)
(659.01)
20.40
(32.15)
–
0.01
3.69
–
8.96
–
–
–
–
–
–
–
207.86
–
36.85
49.51
(1.20)
(1.43)
379.53
206.66
(1.43)
(2377.40)
641.25
(1736.15)
- Difference between book and tax
depreciation
- Other items giving rise to temporary
differences
Deferred tax (assets):
(88.03)
55.88
–
229.47
(19.01)
134.85
(2363.82)
(417.78)
134.85
14.61
Offsetting of deferred tax (assets) with deferred
tax liabilities
Net Deferred tax (assets)
991.91
(1371.91)
Net deferred tax liability/(assets)
(736.43)
(827.76)
134.85
14.61
50.99
241.07
(2.53)
(1125.20)
428
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [50] (contd.)
(ii) Major components of Deferred Tax Liabilities and Deferred Tax Assets:
Deferred tax
liabilities/
(assets) as at
1-4-2015
Charge/(credit)
to Statement of
Profit and Loss
MAT credit
utilised
Effect due to
acquisition/
disposal/Held
for sale
Charge/
(credit) to other
comprehensive
income
Exchange
Difference
807.55
323.32
–
(25.87)
Particulars
Deferred tax liabilities:
- Difference between book and tax
depreciation
- Disputed statutory liabilities paid and
claimed as deduction for tax purposes
but not debited to Statement of Profit
and Loss
- Gain on Derivative Transactions to be
offered for tax purposes in the year of
transfer/settlement
- Other items giving rise to temporary
differences
Deferred tax liabilities:
Offsetting of deferred tax liabilities with
deferred tax(assets)
Net Deferred tax liabilities
Deferred tax (assets):
- Provision for doubtful debts, advances
and non-performing assets debited to
Statement of Profit and Loss
- Unpaid statutory liabilities
- Unabsorbed depreciation
- Carried forward tax losses
- Unutilised MAT credit
- Loss on derivative transactions to be
claimed for tax purposes in the year of
transfer/settlement
- Difference between book and tax
- Other items giving rise to temporary
differences
Deferred tax (assets):
Offsetting of deferred tax (assets) with
deferred tax liabilities
Net Deferred tax (assets)
Net deferred tax liability/(assets)
102.11
13.92
23.50
(5.53)
432.06
1365.22
(41.52)
290.19
(705.73)
659.49
(822.47)
(190.24)
(57.52)
(401.36)
(201.23)
(214.86)
(25.48)
(346.63)
78.06
(184.97)
(173.08)
13.17
–
–
–
–
–
–
–
–
3.42
–
–
–
3.42
–
–
0.01
(25.86)
–
–
(8.63)
–
0.21
10.37
1.54
3.49
depreciation
(85.28)
(13.12)
–
26.35
v crore
Deferred tax
liabilities/
(assets) as at
31-3-2016
1105.00
116.03
6.17
–
–
–
9.64
9.64
400.19
1627.39
(991.91)
635.48
(1037.33)
(215.72)
(412.78)
(323.30)
(382.57)
(133.56)
(88.03)
–
–
–
–
–
–
–
–
–
(11.80)
–
(11.80)
–
–
–
–
–
–
215.55
(1715.63)
22.91
(670.92)
0.91
27.26
(11.44)
(11.44)
229.47
(2363.82)
705.73
(1009.90)
(350.41)
(380.73)
3.42
(22.37)
15.46
(1.80)
991.91
(1371.91)
(736.43)
429
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [51]
Disclosures pursuant to Indian Accounting Standard (Ind AS) 103 “Business Combinations”:
(a) On November 30, 2016, the Group acquired 100% stake in AugmentIQ Data Sciences Private Limited, a software development
company in India.
(b) Assets acquired and liabilities recognised on the date of acquisition:
Non-Current Assets
Current Assets
Short term loans
Trade receivables
Current Liabilities
Trade Payables
Other current liabilities
Deferred tax liability on acquisition
Net Assets
(c) Calculation of goodwill:
Purchase consideration paid
Less: Fair value of net assets acquired
Goodwill
Goodwill (Group’s share)
NOTE [52]
1.02
2.48
(0.34)
(2.29)
(1.48)
v crore
4.34
3.50
(4.11)
3.73
v crore
7.07
3.73
3.34
2.83
Disclosures pursuant to Indian Accounting Standard (Ind AS) 105 “Non-current assets held for sale and discontinued operations”:
(a) The Group has following non-current assets/disposal group recognised as held for sale as at March 31, 2017:
Assets/Disposal Group
Port operation (Marine Infrastructure Developer Private Limited)
Reportable Segment
Developmental Projects
Ready Mix Concrete unit (Larsen & Toubro Readymix & Asphalt Concrete Industries LLC)
Infrastructure
Non-current assets at Talegaon (L&T Cutting Tools Limited)
Non-current Assets (L&T Aviation Services Private Limited)
Others
Others
Non-current Assets (L&T Financial Consultants Limited)
Financial Services
The Group has following non-current assets/disposal group recognised as held for sale as at March 31, 2016:
Assets/Disposal Group
Port operation (L&T Shipbuilding Limited)
Non-current assets at Talegaon (L&T Cutting Tools Limited)
Land at Vizag (L&T Realty Limited)
Reportable Segment
Developmental Projects
Others
Others
The Group has following non-current assets/disposal group recognised as held for sale as at April 1, 2015:
Assets/Disposal Group
Reportable Segment
Non-current assets at Talegaon (L&T Cutting Tools Limited)
Foundry business (Casting manufacturing unit)
Net assets at Chandigarh (CSJ Infrastructure Private Limited)
Others
Others
Others
430
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [52] (contd.)
(b)
The Group has identified the above as held for sale to optimise the capital allocation and focus on core business. The sale is
envisaged through transfer of title deeds for identified assets held for sale and in case of disposal group, through business transfer
agreement/divestment of stake in the subsidiary company. The proposed sale are expected to be completed within 1 year from the
respective reporting dates.
(c) The details of assets/ disposal group classified as held for sale and liabilities associated thereto are as under:
Particulars
Group(s) of assets classified as held for sale
Property, plant and equipment
Capital work-in-progress
Investment property
Other intangible assets
Tax assets (net)
Inventories
Trade receivable
Cash and cash equivalents
Other assets
Total
Liabilities associated with group(s) of assets classified as held for sale
Borrowings
Trade payables
Provisions
Tax liabilities (Net)
Other liabilities
Total
NOTE [53]
As at
31-3-2017
As at
31-3-2016
1589.23
1573.97
–
–
1.35
–
2.29
12.85
0.74
42.91
–
–
2.11
–
1.32
2.06
–
–
v crore
As at
1-4-2015
448.65
309.17
688.70
0.22
25.26
117.51
44.23
21.43
16.18
1649.37
1579.46
1671.35
21.00
19.87
4.32
0.33
1450.08
1495.60
–
–
1.03
–
12.85
13.88
1002.14
34.33
0.46
1.11
85.77
1123.81
Disclosures pursuant to Indian Accounting Standard (Ind AS) 37 “Provisions, Contingent Liabilities and Contingent Assets”:
(a) Movement in provisions:
Sr.
No.
Particulars
Product
warranties
Expected tax
liability in
respect of
indirect taxes
1 Balance as at 1-4-2016
2
3
4
5
Additional provision during the year
Provision used/reversed during the year #
Translation adjustments
Additional provision for unwinding of interest
and change in discount rate
6
Balance as at 31-3-2017 (1+2+3+4+5)
38.61
19.05
(12.44)
(0.10)
0.45
45.57
156.60
59.30
(6.04)
–
–
209.86
Litigation
related
obligations
Class of provisions
Contractual
rectification
cost-
construction
contracts
160.84
272.72
(114.15)
0.01
8.69
–
–
–
v crore
Others**
Total
41.92
30.83
(10.50)
–
914.42
637.37
(143.13)
(0.09)
Provision
towards
constructive
obligation
507.76
255.47*
–
–
0.45
9.14
0.01
319.43
–
763.23
–
62.25
0.91
1409.48
# includes provision used during the year R 8.67 crore
* includes R 55.32 crore on account of non-controlling interest and R 200.15 crore on account of share in loss of joint ventures
** includes liquidated damages/backwork charges adjusted against revenue/manufacturing, construction and operating expenses during the year.
431
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [53] (contd.)
(b) Nature of provisions:
(i)
Product warranties: The Group gives warranties on certain products and services, undertaking to repair or replace the items
that fail to perform satisfactorily during the warranty period. Provision made as at March 31, 2017 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.
(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) Contractual rectification cost represents the estimated cost the Group is likely to incur during defect liability period as per the
contract obligations in respect of completed construction contracts accounted under Indian Accounting Standard (Ind AS) 11
“Construction Contracts”.
(v) Constructive obligation represents losses absorbed by the group for share of joint venturer/ non-controlling interests in joint
ventures/ subsidiaries and own share of losses over and above the investments.
(vi) Liquidated damages represent the estimated cost the Group is likely to incur due to delay in delivery of products as per its
contract obligations and accrued on the basis of advice from distributors/customers.
(c) Disclosure in respect of contingent liabilities is given in Note 32.
NOTE [54]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 112 “Disclosure of Interest in other entities”
(a)
The Group, based on shareholders’ agreements and other relevant documents, has assessed that though the Group has voting
power in excess of 50% in the companies listed below, it does not have unilateral control over their relevant activities (e.g.
operating and financial decision making). Accordingly, these companies have been classified as joint ventures.
1 L&T Special Steels & Heavy Forgings Private Limited
2 L&T-Gulf Private Limited
3 L&T Sapura Shipping Private Limited
4 L&T Sapura Offshore Private Limited
5 Larsen & Toubro Electromech LLC
7 L&T Howden Private Limited
6 L&T-Sargent & Lundy Limited
8 L&T-MHPS Boilers Private Limited
9 L&T-MHPS Turbine Generators Private Limited
10 L&T Kobelco Machinery Private Limited
11 L&T Infrastructure Development Projects Limited
12 Ahmedabad-Maliya Tollway Limited
13 L&T Halol-Shamlaji Tollway Limited*
15 PNG Tollway Limited
17 L&T Port Kachchigarh Limited
19 Panipat Elevated Corridor Limited
21 Vadodara Bharuch Tollway Limited
14 L&T Rajkot-Vadinar Tollway Limited
16 L&T Chennai-Tada Tollway Limited
18 L&T Samakhiali Gandhidham Tollway Limited
20 Krishnagiri Thopur Toll Road Limited
22 L&T Transportation Infrastructure Limited
23 L&T Western India Tollbridge Limited
24 L&T Interstate Road Corridor Limited
25 L&T Krishnagiri Walajahpet Tollway Limited
26 Devihalli Hassan Tollway Limited
27 L&T BPP Tollway Limited
29 L&T Deccan Tollways Limited
28 Western Andhra Tollways Limited
30 Kudgi Transmission Limited
31 L&T Sambhalpur-Rourkela Tollway limited
32 L&T IDPL Trustee Manager Pte. Ltd.
33 L&T Infrastructure Development Projects Lanka (Private) Limited
34 Raykal Aluminium Company Private Limited
* Effective holding 47.75% (31-3-2016: 97.45%, 1-4-2015: 97.45%)
432
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
(b) Change in the Group’s ownership interest in a subsidiary (without ceding control)
(i) On account of divestment of part stake
During the year 2016-17, the Group has sold 10.30% stake in Larsen & Toubro Infotech Limited and 10.23% stake in L&T
Technology Services Limited. The proceeds on disposal of v 2069.84 crore were received as sale consideration. An amount
of v 360.50 crore (being the proportionate share of the carrying amount of the net assets of Larsen & Toubro Infotech
Limited and L&T Technology Services Limited) has been transferred to non-controlling interest. Further, v 1709.34 crore being
difference between the consideration received and the increase in the non-controlling interest has been credited to other
equity.
During the year 2015-16, the Group has sold 4.97% stake in L&T Finance Holdings Limited. The proceeds on disposal of
v 595.37 crore were received as sale consideration. An amount of v 331.49 crore (being the proportionate share of the
carrying amount of the net assets of L&T Finance Holdings Limited) has been transferred to non-controlling interest. Further,
v 263.88 crore being the difference between the consideration received and the increase in the non-controlling interest has
been credited to other equity.
(ii) On account of dilution
During the year 2016-17, the Group’s continuing interest has been reduced on account of dilution due to exercise of ESOP
by 0.09% and 0.38% in L&T Finance Holdings Limited and in Larsen & Toubro Infotech Limited respectively. The proceeds on
dilution of v 11.93 crore were received as share issue consideration. An amount of v 21.77 crore (being the proportionate
share of the carrying amount of the net assets of L&T Finance Holdings Limited and in Larsen & Toubro Infotech Limited) has
been transferred to non-controlling interest. Further, v 9.84 crore being the difference between the increase in the non-
controlling interest and the consideration received has been debited to other equity.
During the year 2015-16, the Group’s continuing interest has been reduced on account of dilution due to exercise of
ESOP by 5.04% in Larsen & Toubro Infotech Limited and by 1.27% in L&T Finance Holdings Limited due to exercise of
ESOP and preferential allotment of equity shares. The proceeds on dilution of v 248.16 crore were received. An amount
of v 274.09 crore (being the proportionate share of the carrying amount of the net assets of Larsen & Toubro Infotech
Limited and L&T Finance Holdings Limited) has been transferred to non-controlling interests. Further, v 25.93 crore being
the difference between the increase in the non-controlling interest and the consideration received has been debited to other
equity.
(iii) The effect of divestment with ceding of control in subsidiaries during the period is as under:
Sr.
no.
1
2
3
4
5
6
Name of company
L&T General Insurance Company Limited
L&T South City Projects Limited
CSJ Infrastructure Private Limited
L&T Infocity Limited
L&T Hitech City Limited
Hyderabad International Trade Expositions Limited
v crore
Effect on consolidated
profit/(loss) after non-
controlling interest
2016-17
2015-16
Line item in Statement of
Profit and Loss in which the
gain/(loss) is recognised
402.43
95.81
– Exceptional Items
– Revenue from operations
–
–
–
–
133.43 Revenue from operations
78.45 Revenue from operations
22.97 Revenue from operations
0.86 Revenue from operations
Total
498.24
235.71
433
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
(c) Disclosure of subsidiaries having material non-controlling interest:
(i)
Summarised Statement of Profit and Loss
Particulars
L&T Finance Limited (formerly
known as Family Credit
Limited)
v crore
L&T Finance Limited*
2016-17
2015-16
2016-17
2015-16
Revenue
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income
Profit/(loss) allocated to non-controlling interest
Dividend to non-controlling interest
4042.46
(37.13)
4.50
(32.63)
196.60
–
773.35
91.08
(0.07)
91.01
28.58
–
* The Company is merged with Family Credit Limited (subsequently renamed as L&T Finance Limited)
–
–
–
–
–
–
2394.10
239.84
(0.65)
239.19
79.37
–
v crore
Particulars
Revenue
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income
Profit/(loss) allocated to non-controlling
interest
L&T Infrastructure
Finance Company
Limited
L&T Finance Holdings
Limited
Larsen and Toubro
Infotech Limited
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
2695.39
2461.36
60.82
47.25
6329.75
5699.70
53.64
428.47
120.37
213.33
937.56
856.17
(1.17)
52.47
12.10
0.03
(0.14)
(4.88)
215.95
(46.03)
428.50
120.23
208.45
1153.51
810.14
137.30
(13.94)
(21.51)
119.71
11.09
Dividend to non-controlling interest
–
–
46.75
37.26
20.57
20.25
(ii) Summarised Balance Sheet
Particulars
Current assets (a)
Current liabilities (b)
Net current assets (c)=(a) - (b)
Non-current assets (d)
Non-current liabilities (e)
Net non-current assets (f)=(d) - (e)
Net assets (g)=(c) + (f)
Accumulated non-controlling interest
L&T Finance Limited (formerly
known as Family Credit Limited)
L&T Finance Limited*
v crore
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
16255.81
2503.86
1859.57
13500.70
1858.40
1719.85
2755.11
645.46
139.72
19567.33
2830.63
1872.16
15535.18
2865.67
1492.76
4032.15
(35.04)
6787.26
687.71
610.42
119.22
379.40
519.12
72.20
–
–
–
–
–
–
–
–
6721.62
7035.84
6610.94
6000.21
110.68
1035.63
8456.81
8900.32
6409.66
7662.07
2047.15
1238.25
2157.83
2273.88
329.63
249.13
* The Company is merged with Family Credit Limited (subsequently renamed as L&T Finance Limited)
434
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
Particulars
Current assets (a)
Current liabilities (b)
v crore
L&T Infrastructure Finance Company
Limited
L&T Finance Holdings Limited
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
9862.51
7186.43
4204.18
945.90
750.25
763.46
3640.53
4924.46
3824.72
1230.79
626.13
565.35
Net current assets (c)=(a) - (b)
6221.98
2261.97
379.46
(284.89)
124.12
198.11
Non-current assets (d)
Non-current liabilities (e)
15151.81 17252.66 16662.92
5469.31
5235.60
4863.64
18199.52 16508.97 14547.54
1028.15
1204.01
1352.16
Net non-current assets (f)=(d) - (e)
(3047.71)
743.69
2115.38
4441.16
4031.59
3511.48
Net assets (g)=(c) + (f)
3174.27
3005.66
2494.84
4156.27
4155.71
3709.59
Accumulated non-controlling interest
470.24
514.88
296.49
1453.64
1430.90
999.34
Particulars
Current assets (a)
Current liabilities (b)
Net current assets (c)=(a) - (b)
Non-current assets (d)
Non-current liabilities (e)
Net non-current assets (f)=(d) - (e)
Net assets (g)=(c) + (f)
Accumulated non-controlling interest
(iii) Summarised cash flows
v crore
Larsen and Toubro Infotech Limited
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
3073.18
1814.45
1702.53
1206.89
960.59
901.97
1866.29
853.86
800.56
1128.04
1122.70
1095.28
17.44
12.43
24.26
1110.60
1110.27
1071.02
2976.89
1964.13
1871.58
467.97
99.87
–
Particulars
L&T Finance Limited (formerly
known as Family Credit
Limited)
v crore
L&T Finance Limited*
2016-17
2015-16
2016-17
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
(2479.31)
(1520.67)
(2508.89)
128.88
5085.55
1411.41
Net increase/(decrease) in cash and cash equivalents
97.35
19.62
* The Company is merged with Family Credit Limited (subsequently renamed as L&T Finance Limited)
–
–
–
–
2015-16
1275.59
(47.32)
(1204.17)
24.10
435
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
v crore
Particulars
L&T Infrastructure
Finance Company
Limited
L&T Finance Holdings
Limited
Larsen and Toubro
Infotech Limited
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
Cash flows from operating activities
(315.99)
(2434.40)
(126.13)
456.28
1249.72
765.24
Cash flows from investing activities
(209.83)
(375.11)
(56.02)
(400.16)
(927.63)
34.24
Cash flows from financing activities
587.03
2605.91
Net increase/(decrease) in cash and cash
61.21
(203.60)
144.09
(38.06)
(46.96)
(246.16)
(816.86)
9.16
75.93
(17.38)
equivalents
NOTE [55]
Disclosures pursuant to Indian Accounting Standard (Ind AS) 112 “Disclosure of Interest in other entities” :- Joint Ventures and
Associates
(a)
Summarised Balance Sheet for material joint ventures:
L&T-MHPS Boilers Private Limited
Larsen and Toubro Electromech
LLC
L&T Special Steels and Heavy
Forgings Private Limited
L&T Infrastructure Development
Projects Limited (consolidated)
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
v crore
Particulars
Current assets
Cash and cash equivalents
296.56
371.81
431.93
23.09
6.90
31.71
0.52
0.68
1.12
2931.86
137.29
179.62
Other assets
2991.04 2552.08 2098.72
147.16
137.29
180.39
166.53
162.94
175.92
2860.97
625.54
770.21
Total current assets
3287.60 2923.89 2530.65
170.25
144.19
212.10
167.05
163.62
177.04
5792.83
762.83
949.83
Total non-current assets
535.02
473.04
460.69
30.48
40.50
72.27
1384.95 1441.82 1493.38 17343.46 20553.94 17244.52
Current liabilities
Financial liabilities (excluding
trade payables)
420.41
419.88
250.79
135.02
119.06
116.25
1414.31 1090.96
754.40
3090.61
713.77
966.72
Other liabilities (including
trade payables)
2351.47 1969.79 1732.75
203.96
192.00
229.08
57.34
37.97
55.41
1206.16
951.31 1123.00
Total current liabilities
2771.88 2389.67 1983.54
338.98
311.06
345.33
1471.65 1128.93
809.81
4296.77 1665.08 2089.72
Non-current liabilities
Financial liabilities (excluding
trade payables)
120.86
258.85
429.55
Other liabilities (including
trade payables)
–
17.26
47.03
Total non-current liabilities
120.86
276.11
476.58
Non-controlling interest
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
703.80
843.02
941.16 16897.96 17552.15 13222.47
17.64
18.18
18.75
433.72
484.64
369.92
721.44
861.20
959.91 17331.68 18036.79 13592.39
–
–
–
151.94
(11.56)
15.00
Net assets
929.88
731.16
531.22
(138.25)
(126.37)
(60.96)
(641.09)
(384.69)
(99.30)
1355.90 1626.46 2497.24
436
Particulars
Opening net assets
Profit for the year
Adjustment in opening
retained earnings due to
stake dilution
Dividends paid
Equity component of other
financial instruments
Other Adjustments
Closing net assets
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [55] (contd.)
(b) Reconciliation of carrying amounts of material joint ventures:
L&T-MHPS Boilers Private Limited
Larsen and Toubro Electromech
LLC
L&T Special Steels and Heavy
Forgings Private Limited
L&T Infrastructure Development
Projects Limited (consolidated)
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
v crore
731.16
531.22
* (126.37)
(60.96)
* (384.69)
(99.30)
* 1626.46 2497.24
221.28
199.01
*
(15.02)
(61.01)
* (254.65)
(284.91)
* (506.38)
(867.23)
Other comprehensive income
(22.51)
0.93
–
–
–
(0.05)
–
–
–
–
*
*
*
*
*
–
–
3.14
(4.40)
–
–
–
–
–
–
*
*
*
*
*
–
–
(1.75)
(0.48)
–
–
–
–
–
–
*
*
*
*
*
223.03
–
(0.10)
(1.06)
–
–
–
–
12.89
(2.49)
929.88
731.16
531.22
(138.25)
(126.37)
(60.96)
(641.09)
(384.69)
(99.30)
1355.90 1626.46 2497.24
Group's share in %
51.00% 51.00% 51.00% 65.00% 65.00% 65.00% 74.00% 74.00% 74.00% 97.45% 97.45% 97.45%
Group's share
474.24
372.89
270.92
(89.86)
(82.14)
(39.63)
(474.41)
(284.67)
(73.48)
1321.32 1584.99 2433.56
Investment in subsidiary out
of above
Goodwill
Parent investment in Group
Other adjusments
Carrying amount
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– (2010.36) (1961.58)
393.87
600.41
600.41
33.30
33.30
54.85
(0.27)
89.86
82.14
39.63
474.41
284.67
73.48
16.24
170.24
141.81
474.24
372.89
270.65
–
–
–
–
–
–
1764.73
378.58 1269.05
* indicates disclosures not applicable.
(c) Summarised Statement of Profit and Loss of material Joint Ventures:
L&T-MHPS Boilers Private Limited
Larsen and Toubro Electromech
LLC
L&T Special Steels and Heavy
Forgings Private Limited
L&T Infrastructure Development
Projects Limited (consolidated)
v crore
2015-16
2016-17
2015-16
*
*
*
*
*
*
*
Particulars
Revenue
Interest Income
Depreciation and amortisation
Interest expense
Income tax
Profit from continuing operations
Profit for the year
Other comprehensive income
Total comprehensive income
2016-17
2490.66
27.57
(55.82)
(28.71)
(110.85)
221.28
221.28
(22.51)
198.77
2015-16
1721.39
41.42
(53.22)
(46.24)
(74.62)
199.01
199.01
0.93
199.94
2016-17
221.61
–
(14.62)
(3.28)
(1.76)
(15.02)
(15.02)
3.14
(11.88)
353.39
–
(23.28)
(3.70)
0.85
(61.01)
(61.01)
(4.40)
(65.41)
129.96
0.12
(51.10)
(171.58)
–
(254.65)
(254.65)
(1.75)
(256.40)
2016-17
2687.03
0.55
2015-16
3244.48
5.62
102.43
0.12
(51.39)
(356.59)
(478.43)
(153.28)
(1389.94)
(1527.59)
–
(284.91)
(284.91)
(0.48)
55.44
(506.38)
(506.38)
(0.10)
(5.30)
(867.23)
(867.23)
(1.06)
(285.39)
(506.48)
(868.29)
437
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [55] (contd.)
(d) Financial Information in respect of individually immaterial joint ventures/associates:
Particulars
As at
31-3-2017
As at
31-3-2016
v crore
As at
1-4-2015
Aggregate carrying amount of investments in individually immaterial joint venture/
533.93
506.41
526.95
associates
Aggregate amounts of the Group’s share of:
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
* indicates disclosures not applicable.
(e) Carrying amount of investments in joint ventures/associates:
35.58
1.74
37.32
(22.52)
21.11
(1.41)
*
*
*
Particulars
As at
31-3-2017
As at
31-3-2016
Non-material associates
Non-material joint ventures
Sub-total
Material joint ventures
Total
(f)
Share in profits/(loss) of joint ventures/associates (net):
Particulars
Non-material associates
Non-material joint ventures
Sub-total
Material joint ventures
Total
104.00
429.93
533.93
2238.97
2772.90
93.81
412.60
506.41
751.47
1257.88
2016-17
11.34
25.98
37.32
(432.59)
(395.27)
(g) Commitments and contingent liabilities in respect of joint ventures/associates:
Particulars
As at
31-3-2017
As at
31-3-2016
v crore
As at
1-4-2015
128.95
398.00
526.95
1539.70
2066.65
v crore
2015-16
(2.28)
0.87
(1.41)
(988.75)
(990.16)
v crore
As at
1-4-2015
Commitments-joint ventures:
Commitments to provide funding for joint venture’s capital commitments, if
called
Contingent liabilities-associates:
Share of contingent liabilities incurred jointly with other investors of the
associates
Contingent liabilities-joint ventures:
3472.09
4040.73
13121.59
0.07
0.02
–
Share of joint ventures’ contingent liabilities in respect of a legal claim lodged
against the entity
169.57
162.39
44.68
438
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [56]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 107 “Financial Instruments: Disclosures”: Market risk management
(a) Foreign exchange rate and interest rate risk:
The Group regularly reviews its foreign exchange forward and option positions and interest rate swaps, both on a standalone
basis and in conjunction with its underlying foreign currency and interest rate related exposures. The Group follows cash flow
hedge accounting for Highly Probable Forecasted Exposures (HPFE) hence the movement in mark to market (MTM) of the hedge
contracts undertaken for such exposures is likely to be offset by contra movements in the underlying exposures values. However,
till the point of time the HPFE becomes an on-Balance Sheet exposure, the changes in MTM of the hedge contracts will impact the
Balance Sheet of the Group. Further, given the effective horizons of the Group’s risk management activities which coincide with
the durations of the projects under execution and could extend across 3-4 years and the business uncertainties associated with
the timing and estimation of the project exposures, the recognition of the gains and losses related to these instruments may not
always coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may affect the
Group’s financial condition and operating results. Hence, the Group monitors the potential risk arising out of the market factors
like exchange rates, interest rates, price of traded investment products etc. on a regular basis. For on-Balance Sheet exposures, the
Group monitors the risks on net unhedged exposures.
(i)
Foreign exchange rate risk:
In general, the Group is a net receiver of foreign currency. Accordingly, changes in exchange rates, and in particular a
strengthening of the Indian Rupee, will negatively affect the Group’s net sales and gross margins as expressed in Indian
Rupee. There is a risk that the Group may have to adjust local currency product pricing due to competitive pressures when
there have been significant volatility in foreign currency exchange rates.
The Group may enter into foreign currency forward and option contracts with financial institutions to protect against foreign
exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future
cash flows and net investments in foreign subsidiaries. In addition, the Group has entered, and may enter in the future, into
non-designated foreign currency contracts to partially offset the foreign currency exchange gains and losses on its foreign
denominated debt issuances. The Group’s practice is to hedge a portion of its material net foreign exchange exposures with
tenors in line with the project/business life cycle. However, the Group may choose not to hedge certain foreign exchange
exposures for a variety of reasons.
The net exposure to foreign currency risk (based on notional amount) in respect of recognised financial assets and recognised
financial liabilities and derivatives is as follows:
Particulars
US Dollar
including
pegged
currencies
As at 31-3-2017
EURO
Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
v crore
Kuwaiti
Dinar
Net exposure to foreign currency risk in respect of
recognised financial assets/(recognised financial
liabilities)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to firm
commitments and forecast transactions
Receivable/(payable) exposure with respect to forward
contract and embedded derivative not designated as
cash flow hedge
(6316.07)
(611.03)
244.90
229.37
367.10
403.57
8314.22
(2746.99)
262.73
9.09
592.60
583.17
98.55
(255.27)
–
–
–
–
v crore
Particulars
US Dollar
including
pegged
currencies
As at 31-3-2016
EURO Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
Kuwaiti
Dinar
Net exposure to foreign currency risk in respect of
recognised financial assets/(recognised financial
liabilities)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to firm
commitments and forecast transactions
(4937.52)
(45.39)
148.63
90.87
425.05
(256.55)
5844.91
(1385.86)
226.61
–
(34.61)
1932.29
439
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [56] (contd.)
Particulars
US Dollar
including
pegged
currencies
As at 31-3-2016
EURO Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
Receivable/(payable) exposure with respect to forward
contract and embedded derivative not designated as
cash flow hedge
(87.60)
(145.92)
–
–
–
v crore
Kuwaiti
Dinar
–
v crore
Particulars
US Dollar
including
pegged
currencies
As at 1-4-2015
EURO Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
Kuwaiti
Dinar
Net exposure to foreign currency risk in respect of
recognised financial assets/(recognised financial
liabilities)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to firm
commitments and forecast transactions
Receivable/(payable) exposure with respect to forward
contract and embedded derivative not designated as
cash flow hedge
(2030.94)
(46.19)
(81.87)
83.24
533.08
(1.64)
5208.01
(1498.86)
73.13
(368.96)
–
–
–
–
93.91
1111.30
–
–
To provide a meaningful assessment of the foreign currency risk associated with the Group’s foreign currency derivative
positions against off-balance sheet exposures and unhedged portion of on-Balance Sheet financial assets and liabilities,
the Group uses a multi-currency correlated value-at-risk (“VAR”) model. The VAR model uses a Monte Carlo simulation
to generate thousands of random market price paths for foreign currencies against Indian Rupee taking into account the
correlations between them. The VAR is the expected loss in value of the exposures due to overnight movement in spot
exchange rates, at 95% confidence interval. The VAR model is not intended to represent actual losses but is used as a risk
estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Group uses
foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset
by increase in the fair value of the underlying exposures for on-Balance Sheet exposures. The overnight VAR for the Group at
95% confidence level is v 122.21 crore as at March 31, 2017 and v 74.33 crore as at March 31, 2016.
Actual future gains and losses associated with the Group’s investment portfolio and derivative positions may differ materially
from the sensitivity analysis performed as at March 31, 2017 due to the inherent limitations associated with predicting the
timing and amount of changes in foreign currency exchange rates and the Group’s actual exposures and position.
(ii)
Interest rate risk:
The Group’s exposure to changes in interest rates relates primarily to the Group’s outstanding floating rate debt and lending.
The Group’s outstanding debt in local currency is a combination of fixed rate and floating rate. For the portion of local
currency debt on fixed rate basis, there is no interest rate risk. For the portion of local currency debt on floating rate basis,
there is a natural hedge with receivables in respect of financial services business. There is a portion of debt that is linked
to international interest rate benchmarks like LIBOR. The Group also hedges a portion of these risks by way of derivatives
instruments like interest rate swaps and currency swaps.
The exposure of the Group’s borrowing to interest rate changes at the end of the reporting period are as follows:
Particulars
As at
31-3-2017
As at
31-3-2016
v crore
As at
1-4-2015
Floating rate borrowings
37911.59
39177.71
31391.95
440
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [56] (contd.)
A hypothetical 25 basis point shift in respective currency LIBOR on the unhedged loans would result in a corresponding
increase/decrease in interest cost for the Group on a yearly basis.
Particulars
Indian Rupee
Interest rates -increase by 0.25% in INR interest rate*
Interest rates -decrease by 0.25% in INR interest rate*
US Dollar
Interest rates -increase by 0.25% in USD interest rate*
Interest rates -decrease by 0.25% in USD interest rate*
* Holding all other variables constant
(b) Liquidity risk management:
Impact on profit and loss after
tax
2016-17
2015-16
Impact on equity
v crore
At at
31-3-2017
At at
31-3-2016
51.57
(51.57)
(12.47)
12.47
43.52
(43.52)
(15.42)
15.42
51.57
(51.57)
(12.47)
12.47
43.52
(43.52)
(15.42)
15.42
The Group manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through
an adequate amount of committed credit lines. Given the need to fund diverse businesses, the Group maintains flexibility in
funding by maintaining availability under committed credit lines to meet obligations when due. Management regularly monitors
the position of cash and cash equivalents vis-à-vis projections. Assessment of maturity profiles of financial assets and financial
liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the
liquidity position.
The Group’s investment policy and strategy are focused on preservation of capital and supporting the Group’s liquidity
requirements. The Group uses a combination of internal and external management to execute its investment strategy and achieve
its investment objectives. The Group typically invests in money market funds, large debt funds, Government of India securities,
equity and equity marketable securities and other highly rated securities under a limits framework which governs the credit
exposure to any one issuer as defined in its investment policy. The policy requires investments generally to be investment grade,
with the primary objective of minimising the potential risk of principal loss. To provide a meaningful assessment of the price risk
associated with the Group’s investment portfolio, the Group performed a sensitivity analysis to determine the impact of change in
prices of the securities that would have on the value of the investment portfolio assuming a 0.25% movement in debt funds and
debt securities and a 5% movement in the NAV of the equity and equity marketable securities. Based on the investment position
a hypothetical 0.25% change in the fair market value of debt securities would result in a value change of +/- v 7.33 crore as at
March 31, 2017 and +/- v 15.52 crore as at March 31, 2016. A 5% change in the equity funds NAV would result in a value change
of +/- v 18.71 crore as at March 31, 2017 and +/- v 5.48 crore as at March 31, 2016 respectively. The investments in money
market funds are for the purpose of liquidity management only and are held only overnight and hence not subject to any material
price risk.
(c) Credit risk management:
(i)
Financial services business
Financial services business has a risk management framework that monitors and ensures that the business lines operate within
the defined risk appetite and risk tolerance levels as defined by the senior management. Risk Management function is closely
involved in management and control of credit risk, portfolio monitoring, market risks including liquidity risk and operational
risks. The credit risk function independently evaluates proposals based on well-established sector specific internal frameworks,
in order to identify, mitigate and allocate risks as well as to enable risk-based pricing of assets. Regulatory and process risks
are identified, mitigated and managed by a separate group. Risk management policies are made under the guidance of Risk
Management Committee and are approved by Board of Directors.
(ii) Other than financial services business
The Group’s customer profile include public sector enterprises, state owned companies and large private corporates.
Accordingly, the Group’s customer credit risk is low. The Group’s average project execution cycle is around 24 to 36 months.
General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90
days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/
corporate guarantees. The Group has a detailed review mechanism of overdue customer receivables at various levels within
organisation to ensure proper attention and focus for realisation.
441
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [56] (contd.)
(iii) Reconciliation of loss allowance provision for financial services business - Loans:
Particulars
Loss allowance as on 1-4-2015
Provision on new financial assets
Transferred to and from 12-month ECL to
lifetime ECL
Higher/(lower) provision on existing
financial assets
Loss allowance as on 31-3-2016
Provision on new financial assets
Transferred to and from 12-month ECL to
lifetime ECL
Higher/(lower) provision on existing
financial assets
Loss allowance as on 31-3-2017
(iv) Amounts written off:
Loss allowance measured at lifetime ECL
Loss allowance
measured at
12-month ECL
Financial assets for which
credit risk has increased
significantly and credit not
impaired
Financial assets for which
credit risk has increased
significantly and credit
impaired
v crore
259.40
176.20
37.00
(212.60)
260.00
151.89
450.58
24.56
(55.94)
37.18
456.38
5.14
76.18
(112.09)
(145.03)
343.04
161.78
511.21
472.19
12.67
18.94
147.38
651.18
27.08
35.91
920.45
1634.62
Particulars
v crore
2016-17
2015-16
Amount of financial assets written off during the period but still enforceable
44.50
104.33
(v) Reconciliation of allowance for doubtful debts on trade receivables (other than financial services business):
Opening balance
Changes in loss allowance (Provision for doubtful debts):
Particulars
Loss allowance based on ECL
Additional provision
Write off as bad debts
Closing balance [reported under Note 13]
v crore
2016-17
2015-16
1961.09
1311.52
335.38
306.43
(137.61)
353.25
327.38
(31.06)
2465.29
1961.09
442
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57]
Other disclosure pursuant to Indian Accounting Standard (Ind AS) 107 “Financial Instruments: Disclosures”:
(a) Category-wise classification for applicable financial assets:
Sr.
no.
I.
II.
Particulars
Investment in equity instruments
Investment in preference shares
Measured at fair value through Profit or Loss (FVTPL):
(i)
(ii)
(iii) Investment in mutual funds and units of fund
(iv) Investment in debentures and bonds
(v) Derivative instruments not designated as cash flow hedges
(vi) Embedded derivatives not designated as cash flow hedges
(vii) Investment in security receipts
(viii) Others
Sub-total (I)
Measured at amortised cost:
(i) Loans
(ii)
(iii) Trade receivables
(iv) Advances recoverable in cash
(v) Cash and bank balances
(vi) Other receivables
Sub-total (II)
Investment in debentures and bonds
III. Measured at fair value through Other Comprehensive Income (FVTOCI):
Investment in government securities, debentures and bonds
(i)
(ii) Loans
(iii) Derivative instruments designated as cash flow hedges
(iv) Embedded Derivative instruments designated as cash flow hedges
Sub-total (III)
Total (I+II+III)
(b) Category-wise classification for applicable financial liabilities:
Sr.
no.
I.
II.
III.
IV.
Particulars
Measured at fair value through Profit or Loss (FVTPL):
(i) Derivative instruments not designated as cash flow hedges
(ii) Embedded derivatives not designated as cash flow hedges
Sub-total (I)
Measured at amortised cost:
(i) Borrowings
(ii) Trade payables
(iii) Others
Sub-total (II)
Derivative instruments (including embedded derivatives) through Other
Comprehensive Income:
(i) Derivative instruments designated as cash flow hedges
(ii) Embedded derivatives designated as cash flow hedges
Sub-total (III)
Financial guarantee contracts
Total (I+II+III+IV)
As at
31-3-2017
As at
31-3-2016
799.20
70.88
10356.77
1133.34
62.33
204.76
505.27
–
13132.55
525.83
157.62
4894.42
1098.62
43.02
140.71
196.37
18.49
7075.08
v crore
As at
1-4-2015
399.94
222.72
4374.75
759.81
44.88
63.56
218.15
23.19
6107.00
431.14
466.25
53304.05 53075.39 45282.61
426.43
27969.60 26024.98 22254.43
833.08
740.40
5187.89
5493.42
682.13
1029.53
89113.39 86829.97 74666.57
643.09
5797.73
967.78
3683.53
11203.09
1283.09
3.21
16172.92
2817.21
2155.17
874.96
4.27
5851.61
118418.86 102486.64 86625.18
2463.60
5372.28
737.20
8.51
8581.59
As at
31-3-2017
As at
31-3-2016
v crore
As at
1-4-2015
22.73
133.20
155.93
27.00
150.01
177.01
48.47
44.19
92.66
93975.42 88135.15 76690.01
29774.25 27003.56 22056.89
3252.29
4000.87
128405.46 119139.58 101999.19
4655.79
479.71
83.98
563.69
2.20
566.39
78.64
645.03
2.29
129127.28 119600.97 102739.17
245.98
35.90
281.88
2.50
443
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(c)
Items of income, expenses, gains or losses related to financial instruments:
Sr.
No.
I.
Net gains/(losses) on financial assets and financial liabilities measured at fair value through
Profit or Loss and amortised cost:
Particulars
A. Mandatorily measured at fair value through Profit or Loss:
(i) Gains/(losses) on fair valuation or sale of investment
(ii) Gains/(losses) on fair valuation or settlement of forward contracts not designated as cash
flow hedges
(iii) Gains/(losses) on fair valuation or settlement of embedded derivative contracts not
designated as cash flow hedges
Sub-total (A)
B.
Financial assets measured at amortised cost:
(i)
Exchange difference gains/(losses) on revaluation or settlement of items denominated in
foreign currency (trade receivables, loans given etc.)
(ii) (Allowance)/reversal for ECL during the year
(iii) Provision for doubtful debts (other than ECL)[net]
(iv) Bad debts written off [net]
Sub-total (B)
C.
Financial liabilities measured at amortised cost:
(i)
Exchange difference gains/(losses) on revaluation or settlement of items denominated in
foreign currency (trade payables, borrowing availed etc.)
(ii) Unclaimed credit balances written back
Sub-total (C)
Total [I] = (A+B+C)
II.
Net gains/(losses) on financial assets and financial liabilities measured at fair value through
Other Comprehensive Income:
A.
Financial assets measured at fair value through Other Comprehensive Income:
(i) Gains recognised in Other Comprehensive Income:
2016-17
v crore
2015-16
(81.96)
(71.83)
77.33
(1.78)
(36.27)
(40.90)
(3.20)
(76.81)
(291.96)
336.66
(1509.17)
(472.97)
(287.61)
(376.31)
(2465.05)
(320.89)
(259.01)
(716.21)
276.69
(906.59)
132.89
60.67
409.58
(845.92)
(2096.37)
(1638.94)
1. Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc.
107.67
(29.81)
2.
3.
Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
flow hedges
Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges
Sub-total (i)
Less:
348.54
94.54
(90.05)
366.16
14.40
79.13
(ii) Gains reclassified to Profit or Loss from Other Comprehensive Income:
1. On government securities, bonds, debentures etc. upon sale
112.99
(27.28)
2.
3.
On forward contracts upon hedged future cash flows affecting the Profit or Loss or
related assets or liabilities
On embedded derivative contracts upon hedged future cash flows affecting the Profit
or Loss or related assets or liabilities
Sub-total (ii)
Net gains recognised in Other Comprehensive Income [II]=[(i)-(ii)]
B.
Allowance/(reversal) for ECL recognised during the year in the Statement of Profit and Loss
Total [II] = (A+B)
444
(39.86)
554.54
(37.64)
35.49
330.67
(50.45)
280.22
(38.88)
488.73
(409.60)
(18.04)
(427.64)
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
Sr.
No.
III.
A.
Interest and Other income/expense:
Dividend Income:
Particulars
2016-17
v crore
2015-16
(i) Dividend income from investments measured at FVTPL
748.63
196.12
B.
Interest Income:
(i) Financial assets measured at amortised cost
(ii) Financial assets measured at fair value through Other Comprehensive Income
(iii) Financial assets measured at fair value through Profit or Loss
Sub-total (B)
C.
Interest expense:
7126.62
6908.92
834.75
118.15
403.04
1.59
8079.52
7313.55
(i) Financial liabilities measured at fair value through Other Comprehensive Income
(401.21)
(528.20)
(ii) Financial liabilities measured at amortised cost
(iii) Financial liabilities measured at fair value through Profit or Loss
Sub-total (C)
D.
Fee income:
Financial assets that are not at fair value through profit or loss
Total [III] =(A+B+C+D)
(d) Fair value of financial assets and financial liabilities measured at amortised cost:
(6209.77)
(5997.66)
5.69
(27.85)
(6605.29)
(6553.71)
227.87
86.02
2450.73
1041.98
v crore
Particulars
Note
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Carrying
amount
Fair value
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial assets (financial services
business):
Loans
7,8,16,17
35005.10
35121.54 37640.72 38324.20 31908.34 31894.22
Debentures and bonds
6,12
431.14
426.44
466.25
471.72
426.43
432.46
Total
Financial liabilities:
Borrowings
Total
35436.24
35547.98 38106.97 38795.92 32334.77 32326.68
22,26,27
37013.30
37952.80
33466.61
34268.95
28304.58
29036.22
37013.30
37952.80
33466.61
34268.95
28304.58
29036.22
Note: The carrying amounts of trade and other receivables, cash and cash equivalents, trade and other payables are considered to
be the same as their fair values due to their short term nature. The carrying amounts of loans given and borrowings taken for short
term or at floating rate of interest are considered to be close to the fair value.
445
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(e) Disclosure pursuant to Ind AS 113 “Fair Value Measurement” - Fair value hierarchy of financial assets and financial liabilities
measured at amortised cost:
As at 31-3-2017
Level 1
Level 2
Level 3
Total Valuation technique for
level 3 items
v crore
Financial assets (financial services business):
Loans
Debentures and bonds
Total
Financial liabilities:
Borrowings
Total
–
–
–
19768.98
15352.56
35121.54 Discounted cash flow
86.26
340.18
426.44 Discounted cash flow
19855.24
15692.74
35547.98
817.04
13927.43
23208.33
37952.80 Discounted cash flow
817.04
13927.43
23208.33
37952.80
v crore
As at 31-3-2016
Level 1
Level 2
Level 3
Total Valuation technique for
level 3 items
Financial assets (financial services business):
Loans
Debentures and bonds
Total
Financial liabilities:
Borrowings
Total
–
–
–
21026.90 17297.30 38324.20 Discounted cash flow
330.36
141.36
471.72 Discounted cash flow
21357.26 17438.66 38795.92
774.09 15029.71 18465.15
34268.95 Discounted cash flow
774.09 15029.71 18465.15
34268.95
As at 1-4-2015
Level 1
Level 2
Level 3
Total Valuation technique for
level 3 items
v crore
Financial assets (financial services business):
Loans
Debentures and bonds
Total
Financial liabilities:
Borrowings
Total
–
–
–
–
–
16445.61 15448.61 31894.22 Discounted cash flow
330.93
101.53
432.46 Discounted cash flow
16776.54 15550.14 32326.68
13325.27 15710.95
29036.22 Discounted cash flow
13325.27 15710.95
29036.22
Valuation technique Level 2: Future cash flows discounted using G-sec/LIBOR rates plus corporate spread.
446
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(f)
Fair value hierarchy of financial assets and financial liabilities at fair value:
Note
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
v crore
Particulars
Financial assets:
Investments at FVTPL:
(i)
Equity shares
(ii) Preference shares
(vi) Embedded derivative
instruments not designated as
cash flow hedges
9,18
(vii) Other investments
Investments at FVTOCI
(i)
Debt instruments viz.
government securities, bonds
and debentures
(ii)
Loans (financial services
business)
(iii) Derivative financial
instruments designated as
cash flow hedges
(iv)
Embedded derivative financial
instruments designated as
cash flow hedges
6, 12
6, 12
48.00
–
–
–
–
751.20
799.20
27.20
70.88
70.88
–
–
10244.91
4861.49
–
–
–
498.63
525.83
148.07
157.62
157.62
–
– 4861.49 4348.86
–
–
–
251.87
399.94
222.72
222.72
– 4348.86
(iii) Mutual fund
6, 12
10244.91
(iv)
(v)
Debt instruments viz.
government securities, bonds
and debentures
6, 7,
12
202.33
35.66
895.35
1133.34
300.14
–
798.48 1098.62
164.20
–
595.61
759.81
Derivative instruments not
designated as cash flow
hedges
9,18
–
62.33
–
62.33
–
43.02
–
43.02
–
44.88
–
44.88
–
–
204.76
–
204.76
–
617.13
617.13
–
–
140.71
–
140.71
18.49
229.30
247.79
–
–
63.56
–
63.56
23.19
244.04
267.23
6, 7,
12
8,17
1772.82
614.25
1296.46
3683.53
1847.26
556.65
59.69 2463.60 2336.19
451.54
29.48 2817.21
–
– 11203.09
11203.09
–
–
5372.28 5372.28
–
–
2155.17 2155.17
9,18
–
1283.09
–
1283.09
–
737.20
–
737.20
–
874.96
–
874.96
9,18
–
3.21
–
3.21
–
8.51
–
8.51
–
4.27
–
4.27
Total
12268.06
2203.30 14834.11
29305.47
7036.09 1504.58 7116.00 15656.67 6997.32 1462.40 3498.89 11958.61
447
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
Particulars
Financial Liabilities:
Financial liabilities at FVTPL:
(i) Designated as at FVTPL:
(a)
(b)
Derivative instruments
not designated as cash
flow hedges
Embedded derivative
instruments not
designated as cash flow
hedges
(ii) Designated as at FVTOCI:
(a)
(b)
Derivative financial
instruments designated
as cash flow hedges
Embedded derivative
financial instruments
designated as cash flow
hedges
Total
Note
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
v crore
23,29
–
22.73
–
22.73
–
27.00
–
27.00
–
48.47
–
48.47
23,29
–
133.20
–
133.20
–
150.01
–
150.01
–
44.19
–
44.19
23,29
–
479.71
–
479.71
–
245.98
–
245.98
–
566.39
–
566.39
23,29
–
–
83.98
719.62
–
–
83.98
719.62
–
–
35.90
458.89
–
–
35.90
458.89
–
–
78.64
737.69
–
–
78.64
737.69
Valuation technique and key inputs used to determine fair value:
A.
B.
Level 1: Mutual funds, bonds, debentures and government securities - Quoted price in the active market
Level 2: (a) Derivative instruments – Present value technique using forward exchange rates at the end of reporting period.
(b) Preference shares – Future cash flows are discounted using G-sec rates as at reporting date.
(g) Movement of items measured using unobservable inputs (Level 3):
Particulars
Equity shares
Preference
shares
Debt
instruments
Loans
Other
investments
v crore
Total
Balance as at 1-4-2015
Addition during the year
Disposal during the year
Gains/(losses) recognised in Profit or Loss
Balance as at 31-3-2016
Addition during the year
Disposal during the year
Gains/(losses) recognised in Profit or Loss
Balance as at 31-3-2017
251.87
237.06
222.72
–
625.09
139.84
2155.17
5372.28
244.04
3498.89
7.10
5756.28
–
(56.03)
(3.02)
(2155.17)
(8.52)
(2222.74)
9.70
498.63
253.52
–
(0.95)
751.20
(9.07)
157.62
96.26
–
(13.32)
83.57
858.17
5372.28
229.30
7116.00
6.02
1243.42
11203.09
411.19
13117.24
(62.50)
(30.26)
(14.84)
(5372.28)
(7.74)
(5457.36)
105.06
–
(15.62)
58.23
70.88
2191.81
11203.09
617.13
14834.11
448
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(h) Sensitivity disclosure for level 3 fair value measurements
Fair value as at
Particulars
As at
31-3-2017
As at
31-3-2016
As at
1-4-2015
Significant unobservable
inputs
Sensitivity
Equity shares
695.26
442.69
195.93 Risk spread
v crore
55.94
55.94
55.94 1. Lease realisation: Net
realisation per month
v 30 per sq/ft.
2. Capitalisation rate 12%
70.88
157.62
222.72 Expected yield
2191.81
858.17
625.09 Expected yield
Preference
shares
Debt
instruments
Loans
11203.09
5372.28
2155.17 Expected yield
Other
investments
617.13
229.30
244.04 Expected yield
2017: Increase/decrease of 5% in the fair value would result in impact
on profit or loss by v 19.45 crore
2016: Increase/decrease in the fair value by 5% would result in impact
on profit or loss by v 11.46 crore
1% change in net realisation would result in +/- v 0.38 crore
25 bps change in capitalisation rate would result in +/- v 0.78 crore
2017: Increase/decrease in the fair value by 5% would result in impact
on profit or loss by v 3.27 crore
2016: Increase/decrease in the fair value by 5% would result in impact
on profit or loss by v 6.10 crore
2017: Increase/decrease in the fair value by 0.25% would result in
impact on profit or loss or other comprehensive income by v 3.16 crore
2016: Increase/decrease in the fair value by 0.25% would result in
impact on profit or loss or other comprehensive income by v 1.02 crore
2017: Increase/decrease in the fair value by 0.25% would result in
impact on profit or loss or other comprehensive income by v 18.31 crore
2016: Increase/decrease in the fair value by 0.25% would result in
impact on profit or loss or other comprehensive income by v 8.78 crore
2017: Increase/decrease in the fair value by 5% would result in impact
on profit or loss by v 20.18 crore
2016: Increase/decrease in the fair value by 5% would result in impact
on profit or loss by v 7.50 crore
(i) Maturity profile of financial liabilities based on undiscounted cash flows:
Particulars
A. Non-derivative liabilities:
Borrowings
Trade payables
Note
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
v crore
Total
22,26,27
27468.89
79646.18 107115.07 29685.56 71843.94 101529.50 25812.61 61251.44 87064.05
28
28320.55
1453.70
29774.25
25976.39
1027.17 27003.56 20783.40
1273.49 22056.89
Other financial liabilities
23,29
4443.36
164.83
4608.19
3780.71
141.22
3921.93
3082.89
100.85
3183.74
Total
B. Derivative liabilities:
Forward contracts
Embedded derivatives
Total
60232.80
81264.71 141497.51
59442.66 73012.33 132454.99 49678.90 62625.78 112304.68
23,29
23,29
465.43
193.81
659.24
47.72
36.44
84.16
513.15
235.06
45.57
280.63
517.95
105.68
623.63
230.25
202.27
4.85
207.12
70.43
57.82
128.25
743.40
437.33
50.42
487.75
588.38
163.50
751.88
449
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(j) Details of outstanding hedge instruments for which hedge accounting is followed:
(i) Outstanding currency exchange rate hedge instruments:
(A) Forward covers taken to hedge exchange rate risk and accounted as cash flow hedge:
After
twelve
months
(v crore)
5350.42
434.45
–
–
15.01
199.75
–
–
377.68
23.15
122.25
–
–
60.02
–
–
–
Nominal
amount
(v crore)
7682.19
1194.71
258.49
63.65
44.67
1097.11
20.03
41.77
262.44
2036.88
1681.41
18.98
–
51.23
26.64
27.75
24.88
–
–
–
1325.46 13648.27
146.78 2577.88
71.76
7.33
105.45
304.11 1426.34
352.56
244.46
321.50
104.77
–
–
–
–
–
3.46
As at 31-3-2016
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 1-4-2015
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
69.43 5703.82 1978.37 55943.00
542.47 1569.81
85.75
–
213.25
18.57
42.94
–
18.34
176.63
65.82
–
141.48 1149.04
18.83
42.80
57.22
–
61.05
109.93
–
103.34
207.39
0.64
678.02 1814.41
363.76 1477.36
–
15.39
21.83
–
49.69
57.04
652.24
45.24
63.65
44.67
955.63
20.03
41.77
159.10
231.00 1358.86
19.07 1317.65
18.98
158.12
–
–
51.23
5.34
26.64
10.66
27.75
9.25
24.88
8.58
–
–
–
–
–
–
67.84 8028.44 5619.83 9929.87
103.36 3050.85
74.64 2474.52
–
71.76
18.17
–
7.33
18.20
41.15
103.90
102.86
932.23
0.67 1078.63
249.56
352.56
175.69
244.46
222.22
241.64
2.21
104.77
–
–
–
–
1.55
347.71
–
–
79.86
–
–
225.37
18.57
73.94
10.70
–
65.03 53288.42 2654.58
842.45
727.36
84.31
–
–
–
–
42.94
17.14
–
137.55
65.82
138.83
17.78 1010.21
–
42.80
53.49
–
61.05
103.65
207.23
0.16
0.70
800.80
215.75 1013.61
162.98
17.78 1314.38
–
–
–
15.39
–
21.83
–
–
–
49.69
–
57.04
–
51.29
5.46
–
9.74
9.01
63.47 5245.15 4684.72
133.48
75.09 2917.37
–
–
–
–
5.43
35.72
527.43
404.80
–
249.56
–
175.69
–
222.22
–
2.21
–
–
–
–
100.70
0.74
216.15
17.22
68.60
10.06
–
Particulars
(a) Receivable hedges
US Dollar
EURO
Malaysian Ringgit
Saudi Riyal
Omani Riyal
Arab Emirates Dirham
Canadian Dollar
British Pound
Japanese Yen
Kuwaiti Dinar
Qatari Riyal
Bahraini Dinar
Australian Dollar
South African Rand
Danish Krone
Norwegian Krone
Swedish Krona
(b) Payable hedges
US Dollar
EURO
Saudi Riyal
Arab Emirates Dirham
British Pound
Japanese Yen
Kuwaiti Dinar
Qatari Riyal
Swiss Franc
Chinese Yuan
Norwegian Krone
Nominal
amount
(v crore)
14220.82
1228.18
331.20
–
324.75
1229.22
34.97
70.50
845.50
1424.98
1184.17
–
40.62
139.95
–
–
–
9852.03
4030.51
–
7.24
23.18
1150.03
786.31
–
279.05
63.51
9.56
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
70.13
83.72
14.86
–
172.04
17.59
52.43
90.97
0.66
224.64
15.58
–
50.78
5.13
–
–
–
63.29
72.09
–
18.11
84.46
0.72
220.22
–
67.45
9.63
8.80
8870.40
793.73
331.20
–
309.74
1029.47
34.97
70.50
467.82
1401.83
1061.92
–
40.62
79.93
–
–
–
8526.57
3883.73
–
7.24
23.18
845.92
786.31
–
279.05
63.51
6.10
450
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(B) Options taken to hedge exchange rate risk and accounted as cash flow hedge:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Particulars
Receivable hedges
US Dollar
138.13
64.85
138.13
–
285.36
66.26
144.23
141.13
522.78
63.00
375.41
147.37
(C) Forward covers taken to hedge exchange rate risk and accounted as net investment hedge:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Particulars
Receivable hedges
Saudi Riyal
785.74
19.44
27.79
757.95
584.21
20.81
–
584.21
366.36
19.54
366.36
–
(ii) Outstanding interest rate hedge instruments:
Interest rate swaps taken to hedge interest rate risk and accounted as cash flow hedge:
Particulars
Floating interest rate
borrowings
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Nominal
amount
(v crore)
Average
rate
(%)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(%)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(%)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
2038.16
7.88
1107.11
931.05
2297.29
8.13
241.95
2055.34
2122.56
8.05
159.84
1962.72
(iii) Outstanding commodity price hedge instruments:
Commodity forward Contract:
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Particulars
Silver (Kg)
Copper (Tn)
Aluminium (Tn)
Iron Ore (Tn)
Coking Coal (Tn)
Zinc (Tn)
Lead (Tn)
Nominal
amount
(v crore)
Average
rate
(v)
–
–
Within
twelve
months
(v crore)
–
After
twelve
months
(v crore)
–
Nominal
amount
(v crore)
Average
rate
(v)
–
–
Within
twelve
months
(v crore)
–
106.78 353806.93
106.78
27.96 119901.16
71.66
3592.00
50.41
11494.00
9.53
17753.00
0.23
150777.00
27.96
43.19
42.07
9.53
0.23
–
–
28.47
8.34
–
–
387.10 317449.73
387.10
164.86 108788.39
164.86
41.84
3053.00
16.86
5526.00
46.56 121345.00
13.16 121104.00
23.38
16.86
46.56
13.16
After
twelve
months
(v crore)
–
–
–
18.46
–
–
–
Nominal
amount
(v crore)
Average
rate
(v)
13.45 37373.00
Within
twelve
months
(v crore)
13.45
After
twelve
months
(v crore)
–
238.62 372551.79
238.62
147.74 117011.72
147.74
–
–
–
–
17.15 135003.00
10.65 112455.00
–
–
17.15
10.65
–
–
–
–
–
–
451
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(k) Carrying amounts of hedge instruments for which hedge accounting is followed:
(A) Cash flow hedge:
As at 31-3-2017
Interest rate
exposure
Currency
exposure
Commodity
price
exposure
As at 31-3-2016
Interest rate
exposure
Currency
exposure
Commodity
price
exposure
As at 1-4-2015
Interest rate
exposure
Currency
exposure
636.15
479.68
325.86
63.21
(0.34)
–
(0.17)
–
29.03
(4.66)
309.95
232.54
3.34
1.39
71.91
37.16
0.07
–
0.29
–
127.37
20.60
(1.38)
–
116.91
–
(15.69)
–
–
3.47
–
–
–
–
–
–
–
–
–
–
–
–
–
–
8.79
0.58
–
–
326.00
–
(2.73)
–
8.11
11.54
–
–
–
–
–
–
4.11
0.06
467.64
501.35
174.29
119.85
0.06
–
0.28
–
–
–
–
–
–
–
–
–
–
–
1.77
2.12
–
–
167.74
(6.70)
22.49
10.23
9.24
14.64
–
–
–
–
–
–
v crore
Commodity
price
exposure
6.55
3.54
–
–
–
–
–
–
–
–
–
–
As at 31-3-2017
Interest rate
exposure
Currency
exposure
Commodity
price
exposure
As at 31-3-2016
Interest rate
exposure
Currency
exposure
Commodity
price
exposure
As at 1-4-2015
Interest rate
exposure
Currency
exposure
v crore
Commodity
price
exposure
1.47
63.75
–
–
–
–
–
15.22
–
–
–
29.17
–
–
–
–
–
–
Particulars
(i) Forward contracts
Current:
Asset - Other financial assets
Liability - Other financial liabilities
Non-current:
Asset - Other financial assets
Liability - Other financial liabilities
(ii) Swap contracts
Current:
Asset - Other financial assets
Liability - Other financial liabilities
Non-current:
Asset - Other financial assets
Liability - Other financial liabilities
(iii) Option contracts
Current:
Asset - Other financial assets
Liability - Other financial liabilities
Non-current:
Asset - Other financial assets
Liability - Other financial liabilities
(B) Net Investment hedge:
Particulars
(i) Forward contracts
Current:
Asset - Other financial assets
Non-current:
Asset - Other financial assets
452
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(l)
Breakup of cash flow hedging reserve and cost of hedging reserve:
Particulars
Balance towards continuing hedges
Balance for which hedge accounting discontinued
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Cash flow
hedging
reserve
347.80
57.52
Cost of
hedging
reserve
(57.80)
–
Cash flow
hedging
reserve
73.76
(14.52)
Cost of
hedging
reserve
(15.23)
–
Cash flow
hedging
reserve
49.87
(75.83)
v crore
Cost of
hedging
reserve
(25.94)
–
(m) Reclassification of hedging reserve and cost of hedging reserve to Profit or Loss:
Particulars
Future cash flows are no longer expected to occur:
Revenue from operations
Sales, administration and other expenses
Other Income
Hedged expected future cash flows affecting profit or loss:
Progress Billing
Revenue from operations
Manufacturing, construction and operating expenses
Finance costs
Sales, administration and other expenses
(n) Movement of hedging reserve and cost of hedging reserve:
Opening balance
Hedging reserve
Changes in the spot element of the forward contracts which is designated as hedging
instruments for time period related hedges
Changes in fair value of forward contracts designated as hedging instruments
Changes in intrinsic value of option contracts
Changes in fair value of swaps
Amount reclassified to Profit or Loss
Amount included in non-financial asset/liabilities
Tax related to above
Closing balance
Opening balance
Cost of hedging reserve
Changes in the forward element of the forward contracts where changes in spot element of
forward contract is designated as hedging instruments for time period related hedges
Amount reclassified to Profit or Loss
Tax related to above
Closing balance
2016-17
73.42
(10.47)
–
214.06
168.63
(269.54)
(405.82)
(34.78)
2016-17
59.24
(207.83)
676.73
(0.07)
50.92
177.52
(108.57)
(242.62)
405.32
2016-17
(15.23)
(261.26)
195.55
23.14
(57.80)
v crore
2015-16
50.80
41.50
(0.21)
(64.24)
84.21
(132.87)
(516.38)
460.62
v crore
2015-16
(25.96)
366.02
73.74
(0.13)
(1.88)
(290.67)
21.72
(83.60)
59.24
v crore
2015-16
(25.94)
(328.81)
345.52
(6.00)
(15.23)
453
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [58]
Value of financial assets and inventories pledged as collateral for liabilities and/or commitments and/or contingent liabilities:
Particulars
As at 31-3-2017 As at 31-3-2016
Current:
Investments
Inventories and trade receivables
Cash and cash equivalents
Loans
Other assets
Total inventories and current financial assets pledged as security
Non-current:
Loans
Total non-current financial assets pledged as security
1400.63
10411.16
319.97
2663.91
345.54
15141.21
33713.37
33713.37
–
10168.56
124.16
4991.62
175.96
15460.30
29094.68
29094.68
NOTE [59]
Disclosure on Specified Bank Notes (SBN) pursuant to MCA notification no. 308(E) dated March 30, 2017:
v crore
As at 1-4-2015
–
9190.94
197.79
3566.65
206.45
13161.83
27335.67
27335.67
Particulars
Closing cash in hand as on November 8, 2016
(+) Permitted receipts *
(-) Permitted payments
(-) Amount deposited in Banks *
Closing cash in hand as on December 30, 2016
SBNs Other denomination
notes
9.74
383.73
21.77
360.58
11.12
68.43
41.72
0.03
110.12
–
v crore
Total
78.17
425.45
21.80
470.70
11.12
* includes amounts directly deposited by the borrowers into the bank accounts.
The Group’s Financial Services segment has subsidiaries engaged in the lending business offering a wide range of products such as
micro finance, tractor loans, two-wheeler loans, mortgage lending products and other rural lending products to a large number of
customers. The operations of these subsidiaries are geographically wide-spread with significant volume of transactions including cash
collections. The above information covers cash received at the offices of these subsidiaries as well as direct deposits in the Group’s bank
accounts by the borrowers of these subsidiaries and is based on information and records available with the Group.
The Group took steps not to accept Specified Bank Notes at its offices after November 8, 2016. Amounts directly deposited into
the Group’s bank accounts by borrowers of these subsidiaries have been classified as “Permitted receipts” and where details of
denomination were not available, the same have been shown as “Other denomination notes”.
NOTE [60]
Additional information pursuant to Schedule III to the Companies Act, 2013 for the year ended 31-3-2017:
Net Assets, i.e., total
assets minus total
liabilities
Share in profit or (loss)
Share in other
comprehensive income
Share in total
comprehensive income
Name of the entity
As % of
consolidated
net assets
Amount
(v crore)
As % of
consolidated
profit or loss
Amount
(v crore)
As % of
consolidated
other
comprehensive
income
Amount
(v crore)
As % of
consolidated
total
comprehensive
income
Amount
(v crore)
Parent Company
Larsen and Toubro Limited
Indian Subsidiaries
Infrastructure:
Hi-Tech Rock Products & Aggregates
Limited
L&T Geostructure LLP
L&T Infrastructure Engineering Limited
454
91.63% 46012.74
90.28%
5453.74
107.49%
157.35
90.68%
5611.09
0.02%
0.06%
0.08%
9.21
32.11
39.00
0.08%
0.52%
0.12%
4.89
31.39
7.34
–
(0.05%)
(0.12%)
–
(0.08)
(0.18)
0.08%
0.51%
0.12%
4.89
31.31
7.16
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [60] (contd.)
Net Assets, i.e., total
assets minus total
liabilities
Share in profit or (loss)
Share in other
comprehensive income
Share in total
comprehensive income
Name of the entity
As % of
consolidated
net assets
Amount
(v crore)
As % of
consolidated
profit or loss
Amount
(v crore)
As % of
consolidated
other
comprehensive
income
Amount
(v crore)
As % of
consolidated
total
comprehensive
income
Amount
(v crore)
Heavy Engineering:
L&T Cassidian Limited
Spectrum Infotech Private Limited
Hydrocarbon:
0.00%
0.03%
0.03
16.53
–
(0.01%)
–
(0.86)
–
(0.01%)
–
(0.02)
–
(0.01%)
–
(0.88)
L&T Hydrocarbon Engineering Limited
3.08%
1545.66
7.22%
436.30
(45.51%)
(66.62)
5.97%
369.68
Private Limited
0.03%
13.06
0.08%
4.87
L&T Infra Investment Partners Trustee
Private Limited
0.00%
0.05
–
–
IT & Technology Services:
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Thales Technology Services Private
Limited
AugmentIQ Data Sciences Private Limited
Financial Services:
L&T Finance Limited (formerly known as
Family Credit Limited)
L&T Access Distribution Services Limited
L&T Capital Markets Limited
L&T Finance Holdings Limited
L&T Housing Finance Limited
L&T Infra Debt Fund Limited
L&T Infra Investment Partners Advisory
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 Financial Consultants Limited
(formerly known as L&T Vrindavan
Properties Limited)
Mudit Cement Private Limited
L&T General Insurance Company Limited
L&T Infra Investment Partners
Developmental Projects:
L&T Metro Rail (Hyderabad) Limited
Sahibganj Ganges Bridge-Company
Private Limited
Marine Infrastructure Developer Private
5.93%
3.05%
2976.88
1531.52
15.52%
7.43%
937.56
449.01
147.53%
56.55%
215.95
82.78
18.64%
8.59%
1153.51
531.79
0.00%
0.00%
(2.72)
1.09
0.01%
0.00%
0.56
0.16
(0.01%)
–
(0.02)
–
0.01%
0.00%
0.54
0.16
13.52%
0.01%
0.03%
8.28%
1.60%
1.44%
6787.26
3.17
15.58
4156.28
805.30
720.67
(0.61%)
(0.02%)
0.10%
1.99%
1.98%
1.48%
(37.13)
(0.94)
5.78
120.37
119.58
89.37
6.32%
1.02%
0.00%
0.00%
3174.27
512.27
1.59
(0.01)
0.21%
(0.03%)
(0.13%)
1.18%
106.47
(13.64)
(64.15)
592.46
0.89%
(0.09%)
0.00%
–
0.28%
(0.09%)
(1.06%)
0.88%
53.64
(5.33)
0.02
–
16.67
(5.49)
(64.15)
53.13
2.23%
–
0.15%
(0.10%)
0.30%
(0.01%)
–
–
(0.80%)
(0.10%)
–
–
(0.01%)
–
–
–
3.26
–
0.22
(0.14)
0.44
(0.01)
–
–
(1.17)
(0.15)
–
–
(0.01)
–
–
–
(0.55%)
(0.02%)
0.10%
1.94%
1.94%
1.44%
(33.87)
(0.94)
6.00
120.23
120.02
89.36
0.08%
4.87
–
–
0.85%
(0.09%)
0.00%
–
0.27%
(0.09%)
(1.04%)
0.86%
52.47
(5.48)
0.02
–
16.66
(5.49)
(64.15)
53.13
4.06%
2037.69
0.05%
2.82
(17.71%)
(25.92)
(0.37%)
(23.10)
–
–
0.00%
(0.01)
–
–
0.00%
(0.01)
Limited
0.80%
402.75
0.04%
2.64
0.08%
0.11
0.04%
2.75
455
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [60] (contd.)
Net Assets, i.e., total
assets minus total
liabilities
Share in profit or (loss)
Share in other
comprehensive income
Share in total
comprehensive income
Name of the entity
As % of
consolidated
net assets
Amount
(v crore)
As % of
consolidated
profit or loss
Amount
(v crore)
As % of
consolidated
other
comprehensive
income
Amount
(v crore)
As % of
consolidated
total
comprehensive
income
Power Development:
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
L&T Asian Realty Project LLP
L&T Parel Project LLP
L&T Realty Limited
L&T Seawoods Limited
L&T South City Projects Limited
L&T Vision Ventures Limited
Seawoods Realty Private Limited
Seawoods Retail Private Limited
Valves, Welding Equipment,
Construction Equipment and Others:
L&T Construction Equipment Limited
L&T Cutting Tools Limited
L&T Valves Limited
EWAC Alloys Limited
Shipbuilding:
0.08%
0.39%
6.20%
1.72%
5.77%
–
1.68%
0.13%
2.12%
6.39%
0.07%
(0.01%)
–
–
40.48
197.85
3115.87
863.29
2898.75
–
842.19
64.40
1065.96
3210.94
33.13
(4.62)
–
–
0.46%
0.08%
1.20%
0.19%
230.14
42.40
603.58
95.69
–
–
0.00%
–
(0.43%)
0.00%
(0.01%)
1.36%
5.28%
0.53%
0.55%
0.00%
0.00%
0.00%
(0.11%)
0.27%
1.99%
0.58%
–
–
0.19
–
(26.11)
0.01
(0.37)
81.94
318.69
32.13
33.13
(0.02)
(0.01)
(0.01)
–
–
–
–
0.47%
–
–
–
–
0.01%
–
–
–
–
–
–
–
–
0.69
–
–
–
–
0.02
–
–
–
–
–
–
0.00%
–
(0.41%)
0.00%
0.00%
1.32%
5.15%
0.52%
0.54%
0.00%
0.00%
0.00%
(6.87)
16.12
120.54
34.98
0.24%
0.08%
1.52%
(0.03%)
0.35
0.11
2.23
(0.04)
(0.11%)
0.26%
1.98%
0.56%
Amount
(v crore)
–
–
0.19
–
(25.42)
0.01
(0.37)
81.94
318.69
32.15
33.13
(0.02)
(0.01)
(0.01)
(6.52)
16.23
122.77
34.94
L&T Shipbuilding Limited
(1.65%)
(829.40)
(5.77%)
(348.34)
(10.94%)
(16.01)
(5.89%)
(364.35)
Others:
Bhilai Power Supply Company Limited
L&T Electricals and Automation Limited
L&T Power Limited
Kesun Iron and Steel Company Private
Limited
L&T Aviation Services Private Limited
L&T Capital Company Limited
L&T Infra Contractors Private Limited
Foreign Subsidiaries
Infrastructure:
Larsen & Toubro (Oman) LLC
Larsen & Toubro Qatar LLC
Larsen & Toubro (Saudi Arabia) LLC
Larsen & Toubro T&D SA (Proprietary)
0.00%
0.01%
0.01%
0.00%
0.07%
0.02%
–
0.74%
0.00%
0.75%
0.05
6.54
4.84
(0.26)
36.39
10.05
–
–
(0.01%)
0.00%
0.00%
(0.12%)
0.04%
–
–
(0.89)
0.20
(0.01)
(6.99)
2.35
–
–
–
–
–
(0.08%)
(0.01%)
–
–
–
–
–
(0.11)
(0.01)
–
–
(0.01%)
0.00%
0.00%
(0.11%)
0.04%
–
–
(0.89)
0.20
(0.01)
(7.10)
2.34
–
373.93
0.55
377.63
1.62%
0.00%
6.50%
97.95
0.29
392.80
(18.80%)
(0.01%)
2.99%
(27.52)
(0.01)
4.37
1.14%
0.00%
6.42%
70.43
0.28
397.17
Limited
0.01%
2.62
0.00%
0.14
0.13%
0.19
0.01%
0.33
456
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [60] (contd.)
Net Assets, i.e., total
assets minus total
liabilities
Share in profit or (loss)
Share in other
comprehensive income
Share in total
comprehensive income
Name of the entity
As % of
consolidated
net assets
Amount
(v crore)
As % of
consolidated
profit or loss
Amount
(v crore)
As % of
consolidated
other
comprehensive
income
Amount
(v crore)
As % of
consolidated
total
comprehensive
income
Amount
(v crore)
Larsen & Toubro Readymix & Asphalt
Concrete Industries LLC
0.04%
17.71
(0.15%)
(9.24)
(0.01%)
(0.02)
(0.15%)
(9.26)
Heavy Engineering:
Larsen & Toubro Heavy Engineering LLC
(0.10%)
(51.69)
(0.68%)
(41.27)
2.67%
3.91
(0.60%)
(37.36)
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 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
Larsen & Toubro Infotech Austria GmbH
L&T Information Technology Spain SL
Larsen & Toubro LLC
L&T Technology Services LLC
Realty:
L&T Realty FZE
Electrical & Automation:
Henikwon Corporation SDN. BHD.
Kana Controls General Trading &
Contracting Company WLL
L&T Electrical & Automation FZE
L&T Electricals & Automation Saudi
Arabia Company Limited LLC
PT Tamco Indonesia
Servowatch Systems Limited
0.00%
(0.13%)
0.00%
(0.83%)
(0.88%)
(1.06)
(67.11)
0.01
(415.38)
(444.69)
(0.01%)
(0.23%)
0.00%
(4.17%)
0.32%
(0.86)
(14.09)
(0.02)
(251.62)
19.69
0.02%
1.82%
(0.01%)
7.78%
1.46%
0.03
2.67
(0.02)
11.39
2.13
(0.01%)
(0.18%)
0.00%
(3.88%)
0.35%
(0.83)
(11.42)
(0.04)
(240.23)
21.82
(0.02%)
(9.89)
(0.04%)
(2.34)
0.22%
0.32
(0.03%)
(2.02)
–
–
–
–
0.00%
(0.12)
(0.01%)
(0.63)
–
–
–
–
–
–
(0.01%)
(0.63)
0.68%
0.01%
0.02%
0.01%
0.06%
0.00%
0.00%
0.00%
(0.09%)
339.39
7.25
11.45
2.80
27.93
0.49
1.74
2.40
(45.03)
0.65%
0.04%
0.01%
0.01%
0.04%
0.00%
0.03%
0.00%
(0.40%)
39.46
2.74
0.45
(15.12%)
(0.31%)
(0.36%)
(22.13)
(0.46)
(0.52)
0.77
2.16
0.31
1.55
0.02
(24.20)
0.14%
(1.81%)
(0.03%)
(0.08%)
(0.03%)
0.88%
0.20
(2.65)
(0.04)
(0.12)
(0.05)
1.29
0.28%
0.04%
0.00%
0.02%
(0.01%)
0.00%
0.02%
0.00%
(0.37%)
17.33
2.28
(0.07)
0.97
(0.49)
0.27
1.43
(0.03)
(22.91)
0.02%
9.90
0.01%
0.57
(0.15%)
(0.22)
0.01%
0.35
(0.02%)
(9.25)
(0.01%)
(0.40)
0.33%
0.48
0.00%
0.08
0.00%
0.23%
(1.06)
114.74
0.00%
(0.34%)
0.23
(20.68)
0.04%
(1.44%)
0.06
(2.11)
0.00%
(0.37%)
0.29
(22.79)
(0.01%)
(0.07%)
(0.04%)
(4.43)
(33.86)
(18.63)
(0.15%)
(0.03%)
(0.24%)
(9.16)
(1.76)
(14.73)
1.80%
(0.92%)
3.55%
2.64
(1.35)
5.20
(0.11%)
(0.05%)
(0.15%)
(6.52)
(3.11)
(9.53)
457
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [60] (contd.)
Net Assets, i.e., total
assets minus total
liabilities
Share in profit or (loss)
Share in other
comprehensive income
Share in total
comprehensive income
Name of the entity
As % of
consolidated
net assets
Amount
(v crore)
As % of
consolidated
profit or loss
Amount
(v crore)
As % of
consolidated
other
comprehensive
income
Amount
(v crore)
As % of
consolidated
total
comprehensive
income
Amount
(v crore)
(7.15)
(54.40)
(0.68)
(0.42)
(17.84)
(36.53)
2697.29
(475.67)
3.68
–
6.16
0.06
–
0.24
1.02
11.16
0.02%
1.03%
0.01%
0.00%
1.63%
0.03%
(7.10%)
0.09%
–
0.09%
0.01%
0.01%
–
0.01%
11.33
516.95
7.19
0.21
816.39
16.10
39485.15
(3563.60)
44.54
–
44.55
5.87
6.00
–
3.04
104.00
(0.03%)
1.01%
0.01%
0.00%
(0.33%)
(0.60%)
(7.35%)
0.06%
–
0.10%
0.00%
–
0.00%
0.02%
(1.83)
61.15
0.33
(3.63%)
(78.94%)
(0.69%)
(5.32)
(115.55)
(1.01)
(0.12)
(19.82)
(36.42)
2644.27
(444.27)
(0.20%)
1.35%
(0.08%)
(21.45%)
3.90
–
6.14
0.06
–
0.25
1.00
11.35
(0.15%)
–
0.01%
0.00%
–
(0.01%)
0.01%
(0.30)
1.98
(0.11)
53.02
(31.40)
(0.22)
–
0.02
–
–
(0.01)
0.02
(0.19)
(0.12%)
(0.88%)
(0.01%)
(0.01%)
(0.29%)
(0.59%)
(7.69%)
0.06%
–
0.10%
0.00%
–
0.00%
0.02%
0.00%
0.23
0.00%
0.08
–
–
0.00%
0.08
0.94%
474.23
1.87%
112.85
(7.84%)
(11.48)
1.64%
101.37
0.13%
0.06%
0.06%
64.59
29.09
27.66
(0.02%)
0.15%
0.02%
(1.25)
9.33
1.39
(2.53%)
(0.05%)
0.23%
(3.70)
(0.08)
0.33
(0.08%)
0.15%
0.03%
(4.95)
9.25
1.72
–
–
(3.09%)
(186.87)
(0.89%)
(1.30)
(3.04%)
(188.17)
0.00%
0.55%
0.02%
0.39
277.68
11.77
0.00%
0.25%
0.02%
(0.13)
15.33
1.04
–
(4.20%)
–
–
(6.15)
–
0.00%
0.15%
0.02%
(0.13)
9.18
1.04
Tamco Electrical Industries Australia Pty
Limited
Tamco Switchgear (Malaysia) SDN. BHD.
Thalest Limited
Others:
Larsen & Toubro (East Asia) SDN. BHD.
Larsen & Toubro International FZE
L&T Global Holdings Limited
Total Subsidiaries
Non-controlling interest in all subsidiaries
Indian Associates
L&T-Chiyoda Limited
Gujarat Leather Industries Limited
Feedback Infra Private Limited
Magtorq Private Limited
Grameen Capital India Limited
Foreign Associates
Larsen & Toubro Qatar & HBK Contracting
LLC
L&T Camp Facilities LLC
Total Associates
Jointly Operations - Indian Operations
Bauer-L&T Geo Joint Venture
Indian Joint Ventures
Power:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private
Limited
L&T Howden Private Limited
L&T-Sargent & Lundy Limited
Heavy Engineering:
L&T Special Steels and Heavy Forgings
Private Limited
Hydrocarbon:
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T-Gulf Private Limited
Developmental Projects:
L&T Infrastructure Development Projects
Limited (Consolidated)
3.51%
1764.74
(5.71%)
(344.66)
(0.10%)
(0.14)
(5.57%)
(344.80)
458
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [60] (contd.)
Net Assets, i.e., total
assets minus total
liabilities
Share in profit or (loss)
Share in other
comprehensive income
Share in total
comprehensive income
Name of the entity
As % of
consolidated
net assets
Amount
(v crore)
As % of
consolidated
profit or loss
Amount
(v crore)
As % of
consolidated
other
comprehensive
income
Amount
(v crore)
As % of
consolidated
total
comprehensive
income
Amount
(v crore)
Valves, Welding Equipment,
Construction Equipment and Others:
L&T Kobelco Machinery Private Limited
Others:
Raykal Aluminium Company Private
Limited
Foreign Joint Ventures
Hydrocarbon:
Larsen & Toubro Electromech LLC
Indiran Engineering Projects and Systems
Kish PJSC
Total Joint Ventures
CFS Adjustment and elimination
Total
0.04%
18.43
0.01%
0.32
0.80%
1.17
0.02%
1.49
0.00%
0.28
0.00%
(0.03)
–
–
0.00%
(0.03)
–
–
(0.23%)
(13.92)
0.85%
1.25
(0.20%)
(12.67)
0.00%
(68.67%)
0.04
2668.90
(34490.90)
50216.52
0.00%
(20.15%)
(0.02)
(406.62)
(1217.32)
6041.23
(0.01%)
(8.39%)
(0.01)
(20.11)
(12.29)
146.38
0.00%
(19.87%)
(0.03)
(426.73)
(1229.61)
6187.61
NOTE [61]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 1 ”Presentation of financial statements“:
(a) Current assets expected to be recovered within twelve months and after twelve months from the reporting date:
v crore
As at 31-3-2017
As at 31-3-2016
Sr.
no.
1.
2.
3.
4.
5.
Particulars
Note
Inventories
Trade receivables
Loans - current
Other financial assets
Other current assets
11
13
16
18
19
Within
twelve
months
4046.19
27477.41
473.01
2598.78
30326.18
After
twelve
months
93.55
492.19
7.83
104.80
10039.93
Total
Total
Within
twelve
months
4602.22
4139.74
27969.60 25447.06
645.84
2192.38
Within
After
twelve
twelve
months
months
5715.37
4854.21
251.99
577.92 26024.98 21259.27
651.14
532.76
5.30
480.84
2703.58
2018.89
2298.67
106.29
40366.11 29478.50 10975.15 40453.65 25220.53
Total
As at 1-4-2015
After
twelve
months
5981.16
265.79
995.16 22254.43
542.64
9.88
110.08
2128.97
9752.38 34972.91
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
Particulars
Note
As at 31-3-2017
As at 31-3-2016
As at 1-4-2015
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
Total
Within
twelve
months
After
twelve
months
v crore
Total
Trade payables
Other financial liabilities
Other current liabilities
Provisions
28
29
30
31
28334.89
1439.36
29774.25 26068.22
935.34 27003.56 20793.38
1263.51 22056.89
5138.28
50.77
5189.05
4280.95
41.49
4322.44
3738.89
33.96
3772.85
16909.28
6535.46
23444.74 18177.14
6230.75 24407.89 14201.95
6602.65 20804.60
2466.09
192.25
2658.34
2159.85
143.67
2303.52
1571.46
105.39
1676.85
Sr.
no.
1.
2.
3.
4.
NOTE [62]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2017.
459
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 101 “First time adoption of Indian Accounting Standards”
(a) Effect of Ind AS adoption on Balance Sheet as at April 1, 2015:
Particulars
ASSETS:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Investment property
Goodwill
Other intangible assets
Intangible assets under development
Financial assets
Investments in joint ventures and
associates
Other investments
Loans
Loans towards financing activities
Other financial assets
Deferred tax assets (net)
Non current assets for current tax
(net)
Other non-current assets
Current assets
Inventories
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Loans towards financing activities
Other financial assets
Other current assets
Group(s) of assets classified as held for
sale
TOTAL ASSETS
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
A,B,C,D
A,B,C,D
B
A,Q
A,C
A
A
A,E,S
A,F
A,H
A,H,M
A,G
A,C
A,D,S
A,C,D
A,E
A,C,H
A,C
A
A,C,F
A,H
A,C,H
A, C, H,
M, T
C
18785.51
4902.72
–
2215.00
13712.54
10055.35
44500.84
936.40
261.17
2477.65
6508.40
13669.78
1452.66
2768.70
1536.98
568.47
6473.66
46673.67
1009.90
236.27
2395.00
5981.16
(5115.73)
(3450.06)
2768.70
(678.02)
(13144.07)
(3581.69)
1918.89
374.64
567.91
(604.79)
(83.82)
2066.65
1888.39
806.43
41431.60
480.60
2172.83
73.50
(24.90)
(82.65)
(527.24)
(646.98)
(617.79)
(360.77)
(356.12)
31.55
(31.84)
(252.75)
7353.81
22254.43
4412.57
696.85
542.64
14322.02
2128.97
53945.99
35352.96
39.39
193693.92
(2234.70)
(380.05)
1631.96
(22572.12)
51711.29
34972.91
1671.35
171121.80
147.76
1513.75
238.52
42036.39
564.42
8000.79
22872.22
4773.34
1052.97
511.09
14353.86
2381.72
460
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
Particulars
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Equity attributable to owners of the
Company
Non controlling interest
A,P,T
Liabilities
Non-current liabilities
Financial liabilities
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
185.91
40723.16
–
299.02
185.91
41022.18
40909.07
4998.62
299.02
(3028.00)
41208.09
1970.62
Borrowings
A,C,D,J,P
69402.47
Other financial liabilities
A,F,M
446.90
(16692.83)
(224.78)
52709.64
222.12
Provisions
Deferred tax liabilities
Other non current Liabilities
A,N
A,C,G,O,T
A,D,F
69849.37
575.05
539.56
163.80
(16917.61)
(189.70)
119.93
48.13
52931.76
385.35
659.49
211.93
Current liabilities
Financial liabilities
Borrowings
A,C,D
16543.83
(646.69)
15897.14
Current maturities of long term
borrowings
Trade payables
A,C,D
9112.17
A,C,N,S
21752.42
Other financial liabilities
A,C,K,M
4030.35
(989.30)
304.47
(257.50)
8122.87
22056.89
3772.85
Other current liabilities
Provisions
Current tax liabilities (net)
Liabilities associated with group(s) of
assets classified as held for sale
A,C,M
A,C,L,N
A
C
51438.77
21609.62
3349.22
260.84
(1589.02)
(805.02)
(1672.37)
38.71
49849.75
20804.60
1676.85
299.55
–
1123.81
1123.81
TOTAL EQUITY AND LIABILITIES
193693.92
(22572.12)
171121.80
461
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
(b) Statement of reconciliation of equity under Ind AS and equity reported under I-GAAP as at April 1, 2015:
Particulars
Note
Sr.
no.
I
II
III
IV
V
VI
Equity as per I-GAAP
Provision for expected credit loss
Provision for employee benefits based on constructive obligations
Gain on fair valuation of investments
Increase in borrowing cost pursuant to application of effective interest rate method
Increase in borrowing cost due to initial fair valuation of long term financial liabilities
Equity component of other financial instruments (Foreign Currency Convertible Bonds)
v crore
40909.07
(1121.12)
(450.87)
555.71
(122.67)
(75.82)
153.20
1803.63
(68.75)
(146.36)
(227.93)
41208.09
H
K
E
D
D
J
L
A, D, F, H,
I, M, N, Q
A,G,V
T
VII
Reversal of dividend & dividend distribution tax
VIII Others
IX
X
Deferred and current taxes
Additional Tax on dividend distributed by subsidiaries
Equity as per Ind AS (attributable to owners of the Company)
(c) Effect of Ind AS adoption on Balance Sheet as at March 31, 2016:
Particulars
ASSETS:
Non-current assets
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
Property, plant and equipment
Capital work-in-progress
Investment property
Goodwill
Other intangible assets
A,B,C,D
A,B,D
B
A,Q
A,C,D
Intangible assets under development
A,D
Financial assets
Investments in joint ventures and
associates
Other investments
Loans
Loans towards financing activities
Other financial assets
Deferred tax assets (net)
A
109.94
A,E,S
1880.14
219.33
48449.21
610.37
A,F
A,H
A,M
A,G
Non current assets for current tax (net)
A
Other non-current assets
A,D,S
17359.98
6211.01
–
2171.67
23724.84
11278.92
(5187.81)
(4420.48)
4386.00
(724.71)
(23168.27)
(2095.00)
12172.17
1790.53
4386.00
1446.96
556.57
9183.92
1147.94
446.87
818.32
(560.94)
(46.82)
1257.88
2327.01
1037.65
47888.27
563.55
51268.99
1195.13
604.50
2842.74
1805.37
176.78
(50.51)
(105.55)
53074.36
1371.91
553.99
2737.19
462
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
Particulars
Current assets
Inventories
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Loans towards financing activities
Other financial assets
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
A,B,C,D
5361.99
(507.78)
4854.21
A,C,E
8179.48
A,C,H
27009.30
A,S
A
A,F
A,H
A,H
4083.44
1880.00
547.64
18519.12
2587.37
(685.29)
(984.32)
(276.90)
(296.63)
103.50
187.22
(288.70)
7494.19
26024.98
3806.54
1583.37
651.14
18706.34
2298.67
Other current assets
A,H,M,T
Group(s) of assets classified as held for
62806.35
41946.59
(2241.12)
(1492.94)
60565.23
40453.65
C
25.03
1554.43
1579.46
226797.74
(32071.59)
194726.15
sale
TOTAL ASSETS
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Equity attributable to owners of the
Company
Non-controlling interest
A,P,T
Liabilities
Non-current liabilities
Financial liabilities
186.30
43805.43
–
188.63
186.30
43994.06
43991.73
6768.78
188.63
(3875.94)
44180.36
2892.84
Borrowings
A,D,J,P
85671.99
Other financial liabilities
A,F,M
384.95
(24448.15)
(243.55)
61223.84
141.40
Provisions
Deferred tax liabilities (net)
Other non-current liabilities
A,N
A,G,O,T
A,D,F
86056.94
797.18
411.15
156.18
(24691.70)
(372.52)
224.33
24.96
61365.24
424.66
635.48
181.14
463
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
Particulars
Current liabilities
Financial liabilities
Borrowings
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
A,D
15573.12
(676.37)
14896.75
Current maturities of long term
borrowings
Trade payables
A,D
13307.03
A,N,S
26202.74
Other financial liabilities
A,C,K,M
4397.36
(1292.13)
800.82
(74.92)
12014.90
27003.56
4322.44
Other current liabilities
Provisions
Current tax liabilities (net)
Liabilities associated with group(s) of
assets classified as held for sale
A,M
A,C,L,N
A
C
59480.25
25337.63
3706.75
91.15
(1242.60)
(929.74)
(1403.23)
(7.66)
58237.65
24407.89
2303.52
83.49
–
13.88
13.88
TOTAL EQUITY AND LIABILITIES
226797.74
(32071.59)
194726.15
(d) Statement of reconciliation of equity under Ind AS and equity reported under I-GAAP as at March 31, 2016:
Particulars
Note
Sr.
No.
I
II
III
IV
V
VI
Equity as per I-GAAP
Provision for expected credit loss
Provision for employee benefits based on constructive obligations
Gain on fair valuation of investments
Increase in borrowing cost pursuant to application of effective interest rate method
Increase in borrowing cost due to initial fair valuation of long term financial liabilities
Equity component of other financial instruments (Foreign Currency Convertible Bonds)
v crore
43991.73
(1107.29)
(488.31)
404.94
(182.30)
(380.56)
153.20
2039.53
145.19
(121.67)
(274.10)
44180.36
H
K
E
D
D
J
L
A, D, F, H,
I, M, N, Q
A,G,V
T
VII
Reversal of dividend & dividend distribution tax
VIII Others
IX
X
Deferred and current taxes
Additional tax on dividend distributed by subsidiaries
Equity as per Ind AS (attributable to owners of the Company)
464
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
(e) Effect of Ind AS adoption on the Statement of Profit and Loss for the year ended March 31, 2016:
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
v crore
v crore
v crore
v crore
A,M,R
A,E
A,R
103522.24
1183.03
104705.27
(1546.90)
(278.68)
(1825.58)
101975.34
904.35
102879.69
Particulars
INCOME:
Revenue from operations
Other income
Total Income
EXPENSES:
Manufacturing, construction and
operating expenses:
Cost of raw materials, components
consumed
Excise duty
Construction materials consumed
Purchase of stock-in-trade
Stores, spares and tools consumed
Sub-contracting charges
Changes in inventories of finished
goods, work-in-progress, stock-in-
trade and property development
Other manufacturing, construction
and operating expenses
Finance cost of financial services
business and finance lease activity
Employee benefits expense
Sales, administration and other expenses
Finance costs
Depreciation, amortisation, impairment
and obsolescence
A, I, K,
N, O
A,H
A,D
A
Less: Overheads capitalised
Total expenses
Profit before exceptional items and tax
Exceptional items
A
U
Profit before tax
Tax expense:
Current tax
Deferred tax
Profit after tax
Carried forward
13546.91
890.55
20036.82
1333.44
1935.55
19565.57
862.98
8224.79
4828.91
183.07
(37.69)
219.95
–
(101.36)
1223.29
(1377.84)
935.77
138.20
13729.98
852.86
20256.77
1333.44
1834.19
20788.86
(514.86)
9160.56
4967.11
71225.52
13816.16
6146.67
3041.22
2755.99
96985.56
8.84
96976.72
7728.55
358.10
8086.65
1183.39
(485.32)
(368.15)
(1386.16)
(969.26)
(2025.50)
(3.07)
(2022.43)
196.85
(263.88)
(67.03)
A,V
A,G,T,V
2764.19
(215.71)
53.50
(165.02)
2817.69
(380.73)
2548.48
5538.17
5538.17
(111.52)
44.49
44.49
72408.91
13330.84
5778.52
1655.06
1786.73
94960.06
5.77
94954.29
7925.40
94.22
8019.62
2436.96
5582.66
5582.66
465
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
Particulars
Brought forward
Less: Additional provision/(reversal) of tax
on dividend distributed by subsidiaries
T
Add: Share in profit/(loss) of joint ventures
A
and associates (net)
Profit for the year
Other comprehensive income [net of tax]
E, G,
M, O
Note
I-GAAP
Ind AS Adjustments
Ind AS
v crore
v crore
5538.17
0.18
5537.99
(2.51)
5535.48
–
v crore
v crore
44.49
47.62
(3.13)
(987.65)
(990.78)
159.05
v crore
v crore
5582.66
47.80
5534.86
(990.16)
4544.70
159.05
Total comprehensive income for the year
5535.48
(831.73)
4703.75
Profit for the year attributable to:
- Owners of the Company
- Non-controlling interests
A
Other comprehensive income for the year
attributable to :
- Owners of the Company
- Non-controlling interests
Total comprehensive income for the year
attributable to:
- Owners of the Company
- Non-controlling interests
5090.53
444.95
5535.48
–
–
–
5090.53
444.95
5535.48
(857.65)
(133.13)
(990.78)
155.82
3.23
159.05
(701.83)
(129.90)
(831.73)
(f)
Statement of reconciliation of total comprehensive income for the year ended March 31, 2016:
Sr.
no.
I
II
III
IV
V
VI
VII
IX
X
XI
XII
Particulars
Net profit after tax as per I-GAAP
Impact of provision for expected credit loss
Gain/(loss) on divestment of stake in subsidiary
Provision for employee benefits based on constructive obligations
Impact of fair valuation of investments
Increase in borrowing cost pursuant to application of effective interest rate method
Reclassification of net actuarial gain on employee defined benefit obligations to other
comprehensive income
Increase in borrowing cost due to initial fair valuation of long term financial liabilities
Others
Deferred and current taxes
Additional tax on dividend distributed by subsidiaries
Net profit after tax as per Ind AS
Other comprehensive income (net of tax) [attributable to owners of the Company]
Total comprehensive income as per Ind AS (attributable to owners of the Company)
Note
H
U
K
E
D
O
D
A,F,I,M,Q
A,G,V
T
E,G,M,O
466
4232.88
311.82
4544.70
155.82
3.23
159.05
4388.70
315.05
4703.75
v crore
5090.53
13.83
(263.88)
(37.44)
(147.22)
(88.42)
13.88
(304.74)
10.70
(8.17)
(46.19)
4232.88
155.82
4388.70
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
(g) Effect of Ind AS adoption on Statement of Cash Flow for the year ended March 31, 2016:
Particulars
Net Cash flows from operating activities
Net Cash flows from investing activities
Net Cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents as at April 1, 2015
Cash and cash equivalents as at March 31, 2016
Notes:
Note
I-GAAP
Ind AS
Adjustments
v crore
Ind AS
A
A
A
(3233.91)
(4964.54)
(5.68)
(3239.59)
337.98
(4626.56)
7488.47
(235.77)
7252.70
(709.98)
4763.73
4053.75
96.53
(613.45)
(360.77)
(264.24)
4402.96
3789.51
A. Some of the entities have been classified as joint ventures under Ind AS 111 based on the nature of the control exercised by the
Parent Company. Accordingly, the share in net profit/loss of joint ventures is recognised in the consolidated Statement of Profit
and Loss and share in the net assets is included under investment in joint ventures/associates in the consolidated Balance Sheet as
per equity method. Under I-GAAP, the financials of these entities were consolidated line by line.
B.
Pursuant to Ind AS requirements, investment property is presented separately. Under I-GAAP the same was presented as part
of tangible assets. Tangible assets have been now divided into two categories under Ind AS viz property plant & equipment and
Investment Property.
C.
In accordance with Ind AS 105, group(s) of assets classified as held for sale and liabilities associated with such group(s) is presented
separately. Under I-GAAP there was no such requirement.
D. Under Ind AS 23, borrowing cost is calculated following effective interest rate (EIR) method as described under Ind AS 109. Under
I-GAAP borrowing cost was computed by applying the coupon rate to the principal amount for the period with consequential
impact in the asset items where borrowing cost is capitalised / inventorised. Borrowings are recognised at fair value at the
inception and subsequently at amortised cost with interest recognised based on EIR method.
E.
Investments except investments in group companies have been fair valued in accordance with Ind AS 109. Other investments are
fair valued through profit and loss. Under I-GAAP the current investments were carried at cost net of diminution in their value as
on the Balance Sheet date. The long term investments were carried at cost net of diminution, other than temporary in nature, if
any.
F.
Under Ind AS financial assets and liabilities are measured at fair value at the inception and subsequently at amortised cost or at fair
value based on their classification. Under I-GAAP the financial assets and liabilities were measured at cost net of allowance.
G. Deferred tax under Ind AS has been recognised for temporary differences between tax base and the book base of the relevant
assets and liabilities. Under I-GAAP the deferred tax was accounted based on timing differences impacting the profit or loss for the
period.
H. The provision is made against trade receivables/loans based on “expected credit loss” model as per Ind AS 109. Under I-GAAP the
provision was made when the receivable/loan turned doubtful/non performing asset based on the assessment on case to case basis
and applicable regulations.
I.
J.
ESOP charge is accounted using fair value method. Under I-GAAP, ESOP charge was calculated based on intrinsic value method.
Pursuant to Ind AS 32, Foreign Currency Convertible Bonds (FCCB) issued by the Parent Company is split into equity and liability
component and presented accordingly. The measurement of liability component is done at fair value at the inception and
subsequently at amortised cost. Under I-GAAP, FCCB was accounted at cost and presented as borrowing.
K.
Provision is made under Ind AS towards constructive obligations of the Group related to payment of performance linked rewards
to the employees and tax on ESOP benefits, wherever applicable. Under I-GAAP the cost was recognised on actual payments.
L. Under Ind AS, the final dividend including related tax is recognised in the period in which the obligation to pay is established on its
approval, post reporting of financial statements. Under I-GAAP, a provision was required to be made in the financial statements for
the proposed final dividend in the period to which the liability related.
467
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63] (contd.)
M. Change in fair value of derivative instrument taken to hedge off-balance sheet item is accounted in the hedge reserve. Under
I-GAAP the premium on these derivative instrument was recognised on accrual basis in the Statement of Profit and Loss under the
respective line items to which the hedges related.
N. Past service cost arising out of modifications in the post-retirement benefits is recognised in the Statement of Profit and Loss
pursuant to Ind AS 19. Under I-GAAP the past service was amortised over a period.
O. Actuarial gains and losses pertaining to defined benefit obligations and re-measurement pertaining to return on plan assets are
recognised in OCI in accordance with Ind AS 19 and are not reclassified to the Statement of Profit and Loss. Further, there are
certain other items (as presented in OCI) that are accounted in OCI and subsequently reclassified to Profit and Loss in accordance
with Ind AS requirements.
P.
Preference Share Capital has been classified as financial liability as per Ind AS 32. The preference shares issued outside the group,
were recognised as minority interests under I-GAAP. The minority interest is called non-controlling interest under Ind AS.
Q. Goodwill attributable to Cash Generating Units (CGUs) disposed of has been written down as per Ind AS 36. Under I-GAAP the
same was measured at the portfolio level and was not being written down for disposal of CGUs within the overall portfolio.
R. Additional construction services revenue recognised for service concession arrangement as per Ind AS 11 for Design-Build-Finance-
Operate-Transfer (DBFOT) contracts with corresponding recognition of construction cost.
S.
Impact of consolidation of a Trust Fund as per Ind AS 110.
T. With respect of clarification dated May 15, 2017 issued by Ind AS Transition Facilitation Group, deferred tax liability has been
provided by Parent Company if it is probable that the accumulated undistributed profits will be distributed in foreseeable future
from subsidiary company.
U. Part stake divestment in a subsidiary which does not result in ceding of control, is accounted as transaction between Parent
Company and the non-controlling interest under Ind AS. Accordingly the gain or loss on part stake sale is recognised directly under
equity and not accounted through the Statement of Profit and Loss.
V. As per Ind AS 12, unused tax credits like MAT Credit entitlement is considered as Deferred Tax.
W. The previous year I-GAAP figures have been reclassified/regrouped to make them comparable with Ind AS presentation.
468
www.Larsentoubro.com
Technology Leadership
Strength for Peace
L&T partners the nation, industry and people to build a newer, brighter future. In critical sectors, such as defence, we provide
the technology as well as the engineering and construction expertise to transform vision into 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
470
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013]
4
LTH Milcom
Private
Limited
5
L&T
Shipbuilding
Limited
1
L&T Cutting
Tools
Limited
Particulars
Sr.
no.
Sr. No.
v crore
8
L&T
Seawoods
Limited
3
Spectrum
Infotech
Private
Limited
2
Bhilai
Power
Supply
Company
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
6
L&T
Electricals
and
Automation
Limited
31-Mar-17
–
–
7
Hi-Tech
Rock
Products &
Aggregates
Limited
31-Mar-17
–
–
31-Mar-17
–
–
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
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
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
18-Sep-52
6.80
11-Jul-95
0.05
23-Jun-95
0.44
17-Aug-15
0.20
13-Nov-07
444.00
12-Dec-07
7.44
01-Jan-08
0.05
13-Mar-08
1999.55
35.60
31.91
74.31
74.31
9.86
167.93
25.02
8.90
16.12
(8.16)
–
–
–
100.00
9
Kesun Iron
and Steel
Company
Private
Limited
31-Mar-17
–
–
–
16.09
(0.11)
(1273.40)
(0.90)
9.16
1211.39
8.81
8.86
8.86
–
–
–
–
–
–
–
–
–
99.90
10
EWAC
Alloys
Limited
14.37
30.90
30.90
2.51
16.20
(1.05)
(0.19)
(0.86)
–
–
–
–
100.00
0.02
0.11
0.11
–
–
(0.02)
–
(0.02)
–
–
–
–
–
11
L&T Valves
Limited
12
L&T Realty
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
4077.29
3247.89
3247.89
10.44
621.05
(349.69)
(1.35)
(348.34)
–
–
–
–
97.00
13
Chennai
Vision
Developers
Private
Limited
31-Mar-17
–
–
0.70
7.24
7.24
–
–
(0.89)
–
(0.89)
–
–
–
–
100.00
59.61
68.82
68.82
–
169.73
7.65
2.76
4.89
–
–
–
–
100.00
212.48
3423.42
3423.42
556.18
1170.22
40.92
8.79
32.13
–
–
–
–
100.00
14
L&T Vision
Ventures
Limited
15
L&T Power
Limited
16
L&T
Cassidian
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
16-Jan-09
0.01
04-Apr-62
8.29
23-Nov-61
18.00
30-Nov-07
47.16
14-Aug-08
0.01
22-Dec-06
0.05
09-Mar-06
0.05
15-Apr-11
0.05
(0.27)
87.39
585.58
1018.80
(0.01)
(4.67)
4.79
(0.02)
0.28
0.02
0.02
–
–
(0.01)
–
(0.01)
–
–
–
–
95.00
60.82
156.50
156.50
2.50
210.38
52.34
17.36
34.98
(28.20)
–
–
–
100.00
939.86
1543.44
1543.44
21.83
1503.19
187.48
66.94
120.54
(27.00)
–
–
–
100.00
31.51
1097.47
1097.47
868.60
313.68
259.17
(59.52)
318.69
–
–
–
–
100.00
0.01
0.01
0.01
–
–
0.01
–
0.01
–
–
–
–
100.00
10.86
6.24
6.24
–
–
(0.02)
–
(0.02)
–
–
–
–
68.00
0.09
4.93
4.93
4.84
–
0.20
–
0.20
–
–
–
–
99.99
0.00
0.03
0.03
–
–
(0.00)
–
(0.00)
–
–
–
–
74.00
471
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
17
L&T Aviation
Services
Private
Limited
18
Larsen &
Toubro
Infotech
Limited
19
L&T Finance
Holdings
Limited *$
20
L&T Housing
Finance
Limited $
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
21
L&T Finance
Limited$
(formerly
known as
Family Credit
Limited)
31-Mar-17
–
–
22
L&T Capital
Markets
Limited
23
L&T
Investment
Management
Limited $
v crore
24
L&T Mutual
Fund Trustee
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
06-Nov-09
45.60
23-Dec-96
17.07
01-May-08
3087.19
31-Aug-94
129.65
22-Nov-94
1440.05
07-Feb-13
49.75
25-Apr-96
251.82
30-Apr-96
0.15
(9.21)
2959.83
2236.54
675.63
5439.34
(34.17)
212.81
52.56
88.95
88.95
–
25.36
(9.70)
(2.71)
(6.99)
–
–
–
–
100.00
25
L&T
Infrastructure
Finance
Company
Limited$
1236.00
4212.90
4212.90
1231.03
6182.90
1184.16
246.60
937.56
(160.96)
–
–
–
84.28
26
L&T Infra
Debt Fund
Limited$
1054.03
6377.76
6377.76
5644.17
277.58
245.11
(3.55)
248.66
–
–
(140.33)
–
66.62
27
L&T Infra
Investment
Partners
Advisory
Private
Limited
8010.96
8816.25
8816.25
435.50
948.42
210.21
73.80
136.41
–
–
–
–
66.62
28
L&T Infra
Investment
Partners
Trustee
Private
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
29097.44
35976.83
35976.83
3096.97
4082.05
28.42
12.38
16.04
(140.33)
–
–
–
66.62
29
L&T Financial
Consultants
Limited
(formerly
known as L&T
Vrindavan
Properties
Limited)
31-Mar-17
–
–
11.07
26.65
26.65
5.12
49.66
4.32
(1.46)
5.78
–
–
–
–
66.62
30
L&T Access
Distribution
Services
Limited
53.17
517.80
517.80
109.37
345.94
(25.81)
–
(25.81)
–
–
–
–
66.62
31
Mudit
Cement
Private
Limited
1.44
0.05
1.64
1.64
1.33
0.05
0.01
(0.01)
0.02
–
–
–
–
66.62
32
L&T Capital
Company
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
18-Apr-06
892.09
19-Mar-13
575.97
30-May-11
5.00
12-Aug-11
0.10
16-Jun-11
18.75
29-Nov-11
21.35
01-Nov-90
2.10
06-Apr-00
0.05
1988.76
232.95
8.05
(0.05)
87.71
(18.18)
(15.74)
10.00
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
21983.82
3
24864.67
4
24864.67
5
2502.84
6
2648.06
7
18.92
8
(23.29)
9
42.21
10
(86.00)
11
–
12
–
13
–
14
15 % of share holding
66.62
Note: * Share capital (including share application money pending allotment) includes money received against share warrants.
3404.19
4213.11
4213.11
–
302.99
94.11
–
94.11
–
–
–
–
66.62
2.15
15.20
15.20
13.35
11.88
7.54
2.67
4.87
–
–
–
–
66.62
0.03
0.08
0.08
0.07
0.03
0.00
0.00
0.00
–
–
–
–
66.62
406.88
513.34
513.34
4.26
45.49
(8.17)
(24.84)
16.67
–
–
–
–
66.62
$ Reporting as per the Companies (Accounting Standards) Rules 2006 (I-GAAP)
472
0.05
3.22
3.22
0.75
(0.04)
(0.90)
0.04
(0.94)
–
–
–
–
66.62
53.11
39.48
39.48
–
–
(4.81)
0.68
(5.49)
–
–
–
–
66.62
6.81
16.86
16.86
7.74
2.17
3.04
0.69
2.35
–
–
–
–
100.00
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
33
37
L&T Himachal
L&T Trustee
Hydropower
Company
Limited
Private
Limited
31-Mar-17
–
–
39
L&T
Metro Rail
(Hyderabad)
Limited
31-Mar-17
–
–
36
L&T
Arunachal
Hydropower
Limited
31-Mar-17
–
–
35
L&T
Uttaranchal
Hydropower
Limited
31-Mar-17
–
–
34
L&T Power
Development
Limited
38
Nabha Power
Limited
v crore
40
L&T
Technology
Services
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
Particulars
Sr.
no.
Sr. No.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
09-Jul-09
0.01
12-Sep-07
3112.70
13-Nov-06
161.05
24-Jun-10
40.28
22-Jun-10
198.13
09-Apr-07
2325.00
24-Aug-10
2068.55
14-Jun-12
20.34
(0.02)
3.17
702.24
0.20
(0.27)
573.75
(30.85)
1511.19
0.01
0.00
0.00
–
–
(0.00)
–
(0.00)
–
–
–
–
100.00
2.09
3117.96
3117.96
3109.31
8.40
0.29
0.10
0.19
–
–
–
–
100.00
41
L&T
Construction
Equipment
Limited
42
L&T
Infrastructure
Engineering
Limited
28.83
892.12
892.12
1.49
–
0.04
0.04
(0.00)
–
–
–
–
100.00
43
L&T Thales
Technology
Services
Private
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
0.15
40.63
40.63
0.03
–
(0.00)
0.00
(0.00)
–
–
–
–
100.00
44
Sahibganj
Ganges
Bridge-
Company
Private
Limited
31-Mar-17
–
–
0.87
198.73
198.73
–
–
(0.00)
0.00
(0.00)
–
–
–
–
100.00
8040.91
10939.66
10939.66
–
3518.36
7.30
33.41
(26.11)
–
–
–
–
100.00
9817.11
11854.81
11854.81
239.02
1562.94
3.54
0.72
2.82
–
–
–
–
100.00
538.67
2070.20
2070.20
198.76
3112.54
599.64
150.63
449.01
(80.85)
(9.66)
–
–
89.77
45
Seawoods
Retail Private
Limited
46
Seawoods
Realty Private
Limited
47
L&T
Hydrocarbon
Engineering
Limited
48
Marine
Infrastructure
Developer
Private
Limited
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
29-Jul-97
120.00
09-Feb-98
3.60
04-Apr-06
2.05
14-Jul-16
0.01
02-Sep-16
0.01
23-Aug-16
0.01
02-Apr-09
1000.05
22-Jan-16
400.00
110.14
35.40
(4.77)
(0.01)
(0.01)
(0.01)
545.62
2.76
351.80
581.94
581.94
8.96
521.74
(5.16)
1.71
(6.87)
–
–
–
–
100.00
26.61
65.61
65.61
–
56.65
7.61
0.27
7.34
–
–
–
–
100.00
39.16
36.44
36.44
1.94
61.53
0.48
(0.08)
0.56
–
–
–
–
66.43
0.01
0.01
0.01
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
0.01
0.01
0.01
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
0.01
0.01
0.01
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
4931.25
6476.92
6476.92
1568.86
8786.61
703.36
267.04
436.32
–
–
–
–
100.00
1541.15
1943.91
1943.91
–
98.64
(35.92)
(38.56)
2.64
–
–
–
–
97.00
473
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
53
49
Larsen &
AugmentIQ
Toubro
Data Sciences
Infotech LLC
Private
Limited
51
Larsen &
Toubro
Infotech,
GmbH
50
Larsen &
Toubro LLC
Particulars
Sr.
no.
Sr. No.
54
L&T Infotech
Financial
Services
Technologies
Inc.
55
Larsen &
Toubro
Infotech
South Africa
(PTY) Limited
52
Larsen &
Toubro
Infotech
Canada
Limited
v crore
56
L&T
Information
Technology
Services
(Shanghai)
Co., Ltd.
31-Dec-16
CNY
9.78
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
474
31-Mar-17
–
–
31-Mar-17
USD
64.85
31-Mar-17
EURO
69.29
31-Mar-17
CAD
48.59
31-Mar-17
USD
64.85
31-Mar-17
CAD
48.59
31-Mar-17
ZAR
4.85
27-Nov-12
1.10
02-Jan-01
0.34
14-Jun-99
0.17
25-Apr-00
0.00
21-Jul-09
–
01-Jan-11
303.70
25-Jul-12
0.22
28-Jun-13
1.05
2.06
27.75
7.25
11.45
35.69
2.58
(1.27)
(0.01)
3.93
5.02
5.02
–
4.91
(0.28)
(0.09)
(0.19)
–
–
–
–
84.28
0.92
3.31
3.31
–
3.32
0.04
0.02
0.02
–
–
–
–
100.00
17.40
45.32
45.32
–
92.12
3.73
1.58
2.15
–
–
–
–
84.28
57
L&T Realty
FZE
58
Larsen &
Toubro
International
FZE
31-Mar-17
AED
17.66
31-Mar-17
USD
64.85
59
Larsen &
Toubro
Hydrocarbon
International
Limited LLC
31-Dec-16
SAR
18.11
7.90
15.15
15.15
–
88.94
3.62
0.89
2.73
(5.10)
–
–
–
84.28
60
Thalest
Limited
0.56
12.01
12.01
–
9.35
0.45
–
0.45
–
–
–
–
84.28
54.94
394.33
394.33
–
258.97
54.81
15.43
39.38
(8.80)
–
–
–
84.28
8.42
11.22
11.22
–
30.83
1.09
0.32
0.77
–
–
–
–
63.12
1.99
1.77
1.77
–
1.83
(0.44)
–
(0.44)
–
–
–
–
84.28
61
Servowatch
Systems
Limited
62
L&T Modular
Fabrication
Yard LLC
63
Larsen &
Toubro (East
Asia) SDN.
BHD
64
Larsen &
Toubro Qatar
LLC
31-Mar-17
GBP
80.90
31-Mar-17
GBP
80.90
31-Dec-16
OMR
176.43
31-Mar-15
MYR
16.88
31-Dec-16
QAR
18.65
27-Jan-08
15.89
25-Sep-01
1779.16
17-Jun-13
0.91
21-Feb-75
1.08
28-Aug-87
20.63
05-Jul-06
50.89
13-Jun-96
1.27
31-Mar-04
0.37
(5.84)
(312.12)
(1.31)
6.11
(39.26)
(59.89)
(0.64)
0.08
10.14
10.14
–
–
0.12
–
0.12
–
–
–
–
100.00
123.93
1590.97
1590.97
664.48
12.13
(33.56)
–
(33.56)
–
–
–
–
100.00
6.03
5.63
5.63
–
–
(0.35)
–
(0.35)
–
–
–
–
100.00
–
7.19
7.19
–
–
0.27
(0.06)
0.33
–
–
–
–
100.00
50.39
31.76
31.76
–
35.81
(14.73)
–
(14.73)
–
–
–
–
100.00
278.11
269.11
269.11
–
455.97
6.70
–
6.70
–
–
–
–
65.00
4.91
5.54
5.54
–
2.31
(0.39)
–
(0.39)
–
–
–
–
30.00
0.24
0.89
1.50
1.50
0.70
–
(0.08)
–
(0.08)
–
–
–
–
49.00
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
65
69
Larsen &
L&T Overseas
Toubro (Saudi
Projects
Arabia) LLC
Nigeria Limited
71
Larsen &
Toubro ATCO
Saudia LLC
70
Larsen Toubro
Arabia LLC
Particulars
Sr.
no.
Sr. No.
v crore
72
Tamco
Switchgear
(Malaysia) Sdn.
Bhd.
66
L&T Electricals
& Automation
Saudi Arabia
Company
Limited LLC
67
Larsen &
Toubro Kuwait
Construction
General
Contracting
Company, W.L.L
31-Dec-16
KWD
221.87
68
Larsen &
Toubro
Readymix
& Asphalt
Concrete
Industries LLC
31-Mar-17
AED
17.66
31-Dec-16
NGN
0.22
31-Mar-17
SAR
17.29
31-Dec-16
SAR
18.11
31-Dec-16
SAR
18.11
31-Dec-16
SAR
18.11
31-Mar-17
MYR
14.65
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
15-Jul-04
0.22
22-Aug-06
31.13
29-Nov-06
44.37
27-Jun-06
1.77
22-Jun-99
26.04
01-Jul-12
18.11
08-Jul-07
1.81
29-May-07
146.53
(0.19)
(34.02)
(45.13)
15.97
191.37
(347.54)
(466.91)
390.13
0.02
0.05
0.05
–
–
–
–
–
–
–
–
–
100.00
122.15
119.26
119.26
–
62.47
(8.70)
–
(8.70)
–
–
–
–
100.00
27.10
26.34
26.34
–
–
(0.49)
–
(0.49)
–
–
–
–
49.00
28.52
46.26
46.26
–
94.77
(9.40)
–
(9.40)
–
–
–
–
49.00
1670.14
1887.55
1887.55
–
2626.72
380.73
42.10
338.63
–
–
–
–
100.00
686.11
356.68
356.68
–
619.70
(271.02)
–
(271.02)
–
–
–
–
75.00
633.82
168.72
168.72
–
35.25
(17.63)
–
(17.63)
–
–
–
–
75.00
258.82
795.48
795.48
–
742.61
72.24
10.49
61.75
–
–
–
–
100.00
73
Henikwon
Corporation
Sdn. Bhd.
31-Mar-17
MYR
14.65
74
Tamco
Electrical
Industries
Australia Pty
Ltd.
31-Mar-17
AUD
49.58
75
PT Tamco
Indonesia
76
Larsen &
Toubro Heavy
Engineering
LLC
77
L&T Electrical
& Automation
FZE
31-Dec-16
IDR
0.01
31-Dec-16
OMR
176.43
31-Mar-17
AED
17.66
78
Kana Controls
General
Trading &
Contracting
Company W.L.L
31-Mar-17
KWD
212.80
79
Larsen &
Toubro T&D SA
(Proprietary)
Limited
80
L&T
Technology
Services LLC
31-Mar-17
ZAR
4.85
31-Mar-17
USD
64.85
18-May-87
9.45
15-Apr-83
81.67
27-Mar-92
13.32
07-Apr-08
99.95
04-Apr-08
1.77
10-Sep-13
2.13
06-Sep-10
3.64
26-Jun-14
0.06
(18.65)
(70.34)
(51.56)
(7.36)
116.76
(3.03)
(1.02)
(45.10)
21.75
12.55
12.55
–
28.17
(0.74)
–
(0.74)
–
–
–
–
100.00
8.04
19.37
19.37
–
14.75
(1.83)
–
(1.83)
–
–
–
–
100.00
104.55
66.31
66.31
–
47.80
(7.58)
–
(7.58)
–
–
–
–
100.00
266.70
359.29
359.29
–
217.29
(19.05)
1.88
(20.93)
–
–
–
–
70.00
219.76
338.29
338.29
–
277.07
(22.02)
–
(22.02)
–
–
–
–
100.00
22.36
21.46
21.46
–
43.35
0.35
–
0.35
–
–
–
–
49.00
0.28
2.90
2.90
–
–
0.14
–
0.14
–
–
–
–
72.50
132.74
87.70
87.70
–
159.94
(20.59)
3.61
(24.20)
–
–
–
–
89.77
475
87
L&T-MHPS
Boilers
Private
Limited #
v crore
88
L&T-MHPS
Turbine
Generators
Private
Limited #
31-Mar-17
–
–
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
85
81
L&T-Sargent
L&T Infotech
and Lundy
Austria GMBH
Limited #
LLC
82
L&T Global
Holdings
Limited
84
Larsen &
Toubro
(Oman) LLC
86
L&T-Gulf
Private
Limited #
Particulars
Sr.
no.
Sr. No.
83
L&T
Information
Technology
Spain SL
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Note: # Refer Note 54(a).
31-Mar-17
EURO
69.29
31-Mar-17
USD
64.85
31-Mar-17
EURO
69.29
31-Dec-16
OMR
176.43
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
18-Jun-15
0.24
24-Feb-16
51.88
01-Feb-16
0.35
29-Jan-94
25.71
05-May-95
5.57
11-Jan-08
8.00
09-Oct-06
234.10
27-Dec-06
710.60
0.24
(35.78)
1.39
269.63
49.79
15.55
695.78
(527.74)
0.37
0.85
0.85
0.00
6.07
0.39
0.08
0.31
–
–
–
–
84.28
1812.59
1828.69
1828.69
1112.32
–
(36.42)
–
(36.42)
–
–
–
–
100.00
89
Raykal
Aluminium
Company
Private
Limited #
31-Mar-17
–
–
90
L&T Special
Steels and
Heavy
Forgings
Private
Limited #
31-Mar-17
–
–
21.32
23.06
23.06
–
65.78
2.06
0.51
1.55
–
–
–
–
84.28
3317.60
3612.94
3612.94
–
3704.49
15.23
0.01
15.22
–
–
–
–
65.00
35.62
90.98
90.98
37.78
112.51
3.83
1.05
2.78
–
–
–
–
50.0001
8.29
31.84
31.84
0.70
20.61
3.48
1.40
2.08
–
–
–
–
50.0002
2892.74
3822.62
3822.62
687.37
2490.66
332.13
110.85
221.28
–
–
–
–
51.00
91
L&T Howden
Private
Limited #
92
L&T Sapura
Offshore
Private
Limited #
93
L&T Kobelco
Machinery
Private
Limited #
94
Larsen
and Toubro
Electromech
LLC #
95
L&T Sapura
Shipping
Private
Limited #
2403.46
2586.32
2586.32
39.10
910.26
19.51
25.45
(5.94)
–
–
–
–
51.00
96
L&T
Infrastructure
Development
Projects
Limited #$
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Dec-16
OMR
176.43
31-Mar-17
–
–
31-Mar-17
–
–
23-Feb-99
0.05
01-Jul-09
566.60
17-Jun-10
30.00
02-Sep-10
0.01
25-Nov-10
50.00
01-Jan-05
5.29
02-Sep-10
158.85
26-Feb-01
2321.06
0.33
(1207.69)
28.07
0.64
(13.86)
(12.65)
303.88
2443.73
0.59
0.97
0.97
–
–
(0.03)
–
(0.03)
–
–
–
–
75.50
2193.08
1551.99
1551.99
–
129.96
(254.65)
–
(254.65)
–
–
–
–
74.00
136.53
194.60
194.60
–
157.10
30.52
11.89
18.63
–
–
–
–
50.10
9.94
10.59
10.59
–
–
0.07
0.29
(0.22)
–
–
–
–
60.00
59.72
95.86
95.86
–
44.10
0.32
(0.31)
0.63
–
–
–
–
51.00
224.35
216.99
216.99
–
142.49
(50.62)
1.83
(52.45)
–
–
–
–
65.00
394.60
857.33
857.33
–
138.77
26.13
0.58
25.55
–
–
–
–
60.00
1045.10
5809.89
5809.89
3371.70
571.20
(284.83)
(62.61)
(222.22)
–
–
–
–
97.45
$ Reporting as per the Companies (Accounting Standards) Rules 2006 (I-GAAP)
476
v crore
104
L&T
Krishnagiri
Walajahpet
Tollway
Limited #
31-Mar-17
–
–
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
101
97
L&T
Panipat
Interstate
Elevated
Road Corridor
Corridor
Limited #
Limited #
103
L&T
Transportation
Infrastructure
Limited #
102
L&T Western
India
Tollbridge
Limited #
98
Krishnagiri
Thopur
Toll Road
Limited #
100
Vadodara
Bharuch
Tollway
Limited #
99
Western
Andhra
Tollways
Limited #
Particulars
Sr.
no.
Sr. No.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity/Reserves and surplus (as
applicable)
Liabilities
Total equity and 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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Note: # Refer Note 54(a).
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
21-Jul-05
84.30
02-Nov-05
78.75
02-Nov-05
56.50
23-Dec-05
43.50
02-Feb-06
57.16
20-May-99
13.95
24-Sep-97
41.40
23-Apr-10
90.00
(323.52)
(156.13)
(84.59)
(304.91)
47.59
19.71
143.28
13.16
497.97
258.75
258.75
–
58.45
(37.84)
–
(37.84)
–
–
–
–
97.45
105
Devihalli
Hassan
Tollway
Limited #
502.40
425.02
425.02
35.41
132.90
21.06
0.65
20.41
–
–
–
–
97.45
254.84
226.75
226.75
41.21
66.69
10.02
0.19
9.83
–
–
–
–
97.45
1051.78
790.37
790.37
187.92
265.86
22.31
4.60
17.71
–
–
–
–
97.45
106
L&T Halol
Shamlaji
Tollway
Limited #
107
Ahmedabad-
Maliya
Tollway
Limited #
108
L&T Port
Kachchigarh
Limited #
329.16
433.91
433.91
123.68
48.05
12.60
3.93
8.67
–
–
–
–
97.45
109
L&T BPP
Tollway
Limited #
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
31-Mar-17
–
–
70.84
104.50
104.50
–
–
1.25
0.38
0.87
–
–
–
–
97.45
69.57
254.25
254.25
156.08
25.08
14.17
(12.92)
27.09
–
–
–
–
98.12
999.85
1103.01
1103.01
1.24
133.54
(25.07)
0.27
(25.34)
–
–
–
–
97.45
110
L&T
Samakhiali
Gandhidham
Tollway
Limited #
31-Mar-17
–
–
111
L&T Deccan
Tollways
Limited #
112
Kudgi
Transmission
Limited #
31-Mar-17
–
–
31-Mar-17
–
–
27-Apr-10
90.00
09-Sep-08
796.34
09-Sep-08
149.00
30-Apr-08
4.16
25-May-11
247.20
05-Feb-10
80.54
20-Dec-11
218.84
30-Aug-13
192.60
(25.97)
(317.27)
(44.95)
(4.62)
(246.54)
(75.60)
(2.52)
78.03
307.31
371.34
371.34
2.37
50.64
(3.52)
–
(3.52)
–
–
–
–
97.45
702.77
1181.84
1181.84
–
74.01
(189.56)
–
(189.56)
–
–
–
–
47.75
1256.19
1360.24
1360.24
–
177.01
(51.48)
–
(51.48)
–
–
–
–
97.45
5.46
5.00
5.00
–
–
(0.02)
–
(0.02)
–
–
–
–
97.45
4742.95
4743.61
4743.61
46.55
307.46
(291.19)
–
(291.19)
–
–
–
–
97.45
1672.31
1677.25
1677.25
–
158.25
(107.05)
–
(107.05)
–
–
–
–
97.45
886.70
1103.02
1103.02
2.25
292.16
(0.33)
–
(0.33)
–
–
–
–
97.45
2699.67
2970.30
2970.30
–
271.72
29.95
8.92
21.03
–
–
–
–
97.45
477
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
114
L&T IDPL
Trustee
Manager
Pte. Ltd. #
116
L&T Rajkot-
Vadinar
Tollway
Limited #
115
PNG
Tollway
Limited #
v crore
117
L&T
Chennai -
Tada Tollway
Limited #
Particulars
Sr.
no.
Sr. No.
113
L&T
Sambalpur
- Rourkela
Tollway
Limited #
31-Mar-17
–
–
18-Oct-13
290.03
(2.97)
850.71
1137.77
1137.77
22.82
545.31
(0.53)
–
(0.53)
–
–
–
–
97.45
31-Mar-17
SGD
46.41
30-Sep-13
6.10
(5.42)
0.06
0.74
0.74
–
–
(0.16)
–
(0.16)
–
–
–
–
97.45
31-Mar-17
–
–
16-Feb-09
169.10
(455.67)
1473.96
1187.39
1187.39
–
–
(220.52)
–
(220.52)
–
–
–
–
72.11
31-Mar-17
–
–
08-Sep-08
110.00
(122.56)
980.61
968.05
968.05
–
93.45
(58.02)
–
(58.02)
–
–
–
–
97.45
31-Mar-17
–
–
24-Mar-08
42.00
(5.06)
382.75
419.69
419.69
–
–
(4.86)
–
(4.86)
–
–
–
–
97.45
Financial year ending on
Currency
Exchange rate on the last day of financial year
Date of Acquisition
Share capital (including share application money pending allotment)
Other equity/Reserves and surplus (as applicable)
Liabilities
Total equity and 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Note: # Refer Note 54(a).
478
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part B:” Associates/Joint ventures” [as per Section 2(6) of the Companies Act, 2013]
Sr. No.
1
2
3
4
5
Particulars
Sr
No.
Feedback Infra
Private Limited
L&T- Chiyoda
Limited
International
Seaports
(Haldia)
Private Limited
L&T Camp
Facilities LLC
L&T Qatar
& HBK
Contracting
LLC
1
2
3
4
5
6
Latest audited Balance Sheet Date
31-Mar-17
31-Mar-17
31-Mar-16
31-Dec-16
31-Dec-16
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
(v crore)
37.90
4.50
9.83
2,450
4.33
100
0.18
Total No of shares
Extent of Holding %
1,63,61,704
90,00,000
4,40,58,020
5,000
200
15.42%
50.00%
21.74%
49.00%
50.00%
Description of how there is significant influence
Refer Note 1
Reason why the associate/joint venture is not
consolidated
Net worth attributable to Shareholding as per latest
audited Balance Sheet (v crore)
Profit / (Loss) for the year (v crore)
Considered in Consolidation
Not Considered in Consolidation
15.65
43.85
14.32
3.04
(3.51)
24.54
–
7.79
–
3.34
–
2.46
–
0.02
–
479
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part B:” Associates/Joint ventures” [as per Section 2(6) of the Companies Act, 2013] (contd.)
Sr. No.
6
7
8
9
Particulars
Sr
No.
Magtorq
Private Limited
Indiran
Engineering
Projects and
Systems Kish
PJSC
Grameen
Capital India
Limited
Gujarat
Leather
Industries
Limited
1
2
3
4
5
6
Latest audited Balance Sheet Date
31-Mar-17
31-Mar-17
31-Mar-15
Shares of Associate/Joint Ventures held by the company at the year end
Number
Amount of Investment in Associates/Joint Venture (v crore)
Total No of shares
Extent of Holding %
9,000
4.42
21,003
42.85%
875
0.39
21,26,000
7,35,000
2.13
0.56
1,750
81,77,887
Refer Note 4
50.00%
23.84%
50.00%
Description of how there is significant influence
Refer Note 1
Reason why the associate/joint venture is not consolidated
Refer Note 2
Refer Note 3
Refer Note 4
Net worth attributable to Shareholding as per latest audited Balance
Sheet (v crore)
4.58
(0.14)
Profit / (Loss) for the year (v crore)
Considered in Consolidation
Not Considered in Consolidation
0.14
–
(0.04)
–
–
–
(0.26)
–
–
–
Notes:
1. Significant influence is demonstrated by holding 20% or more of the voting power of the investee.
2. The Incorporated joint venture is not required to be audited as per regulatory laws in Iran. Hence the management certified accounts have been considered
for consolidation.
3. There is restriction on transferring the resources to the share holder and hence the same has not been considered for consolidation
4. The associate company is under liquidation process and investment is fully provided in the accounts.
A. M. NAIK
Group Executive Chairman (DIN 00001514)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole -time Director
(DIN 00019798)
M. DAMODARAN
(DIN 02106990)
M.M.CHITALE
(DIN 00101004)
SUBODH BHARGAVA
(DIN 00035672)
SUNITA SHARMA
(DIN 02949529)
SUSHOBHAN SARKER
(DIN 00088276)
N.HARIHARAN
Company Secretary (DIN 00041197)
M. No. A3471
VIKRAM SINGH MEHTA
Directors
SANJEEV AGA
(DIN 00022065)
Mumbai, May 29, 2017
480
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 holder(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 Second
Annual General Meeting of the Company, to be held at St. Andrews Auditorium, St. Dominic Road, Bandra (West), Mumbai - 400050 on Tuesday,
August 22, 2017 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
Adoption of audited financial statements for the year ended March 31, 2017 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, 2017.
Dividend on equity shares for the financial year 2016-17.
Appoint Mr. Sushobhan Sarker (DIN: 00088276) as a Director liable to retire by rotation.
Appoint Mr. Shailendra Roy (DIN: 02144836) as a Director liable to retire by rotation.
Appoint Mr. R. Shankar Raman (DIN: 00019798) as a Director liable to retire by rotation.
Re-appoint Mr. Subodh Bhargava (DIN: 00035672) as an Independent Director.
Appoint Mr. S.N. Subrahmanyan (DIN: 02255382) as the Chief Executive Officer and Managing Director of the
Company.
Appoint Mr. Jayant Damodar Patil (DIN: 01252184) as a Director liable to retire by rotation.
Appoint Mr. Arvind Gupta (DIN: 00090360) as a Director liable to retire by rotation.
Appoint Mr. Jayant Damodar Patil (DIN: 01252184) as a Whole-time Director of the Company.
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 v 4000 Crore or US $ 600 million, whichever is higher.
481
Item No.
Resolutions
For
Against
12
13
14
Issue listed/unlisted secured/unsecured redeemable non-convertible debentures, in one or more series/tranches/
currencies, aggregating up to v 6000 crore.
Ratification of appointment of M/s. Deloitte Haskins & Sells LLP as Statutory Auditors of the Company.
Ratification of remuneration payable to M/s R. Nanabhoy & Co. Cost Accountants (Regn. No. 00010) for the
financial year 2017-18.
Signed this ........................ day of ............... 2017
Signature of shareholder : ..........................................
Affix a
1 Rupee
Revenue
Stamp
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.
482
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
Shareholder’s Satisfaction Survey Form – 2017
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 so that we will be able to implement corrective
actions as a requirement of ISO 9001: 2015 standard. 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 & 2017
483
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
2016-17
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
484
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
CBMC/07/2017/RDP
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