73rd ANNUAL REPORT 2017-2018
Eight Decades of
Leading
the Change
Chairman’s Statement – Annual Report 2017-18
Dear Shareholders
Across the last eight decades, L&T has kept pace with
technological developments as well as the evolving needs
of the nation. Your Company is, in every sense, leading
the change.
My greetings and good wishes to
you on the 80th anniversary of the
formation of L&T.
The tiny partnership firm set up
on May 1, 1938 is now a leading
engineering & construction
conglomerate, operating at the upper
end of the technology spectrum.
Across the last eight decades, we
have kept pace with technological
developments as well as the evolving
needs of the nation. Your Company
is, in every sense, leading the change.
Economic Scenario
In the last fiscal, the Indian economy
has emerged after grappling boldly
with multiple challenges. Structural
reforms, by their very nature, are
initially disruptive because they
unsettle the existing ways of doing
business, and can often impact public
perceptions negatively. However,
their long-term benefits outweigh
the early tremors. The GST regime
and other reforms such as Insolvency
& Bankruptcy Code, Demonetisation
and RERA are the building blocks of a
healthier, more wholesome economic
environment.
In addition to the volatility sparked
by reform-led change, industry
encountered a host of other
challenges, viz., muted private
sector capex, reduced investment
opportunities in Middle East markets
and the increasing unpredictability of
geo-political developments.
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On the other hand, some areas of public sector
infrastructure capex have seen strong investment
momentum and several large investment programs have
been initiated. We are also beginning to glimpse the green
shoots of private sector capex revival in the industrial space.
It is expected that the economic reforms initiated by the
Government will expand the tax base, enhance revenues
and in turn spur GDP growth and infrastructure allocations.
With private sector participation in roads, airports, power,
real estate and industrial capex remaining subdued, the
needle of increased investment has largely shifted towards
the public sector. The Government has also been focusing
on development of infrastructure and energy facilities to
drive strong, sustainable economic growth. Rural reform
is receiving the attention it deserves. Larger allocations
towards irrigation, measures to insulate farmers against the
vagaries of the monsoon, rural road connectivity, and the
proverbial last mile in rural electrification are heartening.
Positive markers at the national level include a wider tax
base, increased allocation of share of revenues to states,
strong Balance Sheets of some PSUs and larger quantum of
funding from international development agencies such as
JICA and World Bank. All of them have provided a robust
financial platform for building infrastructure facilities in
the country.
On the global front, the signals are mixed. Major
governments are being lured into populist measures such
as protectionism. Geo-political re-alignments are impacting
traditional trade flows and commodity prices and currencies
experience never-before volatility. Amid all this, we see
encouraging signs of global growth revival.
Performance Overview
Your Company has turned in a commendable performance
on key financial parameters in 2017-18. Even though
awarding of infrastructure projects continued to be
unpredictable in terms of timelines, we registered a
7% growth in fresh order inflows of R 152,908 crores
over inflows in the previous year. The unexecuted Order
Book at the end of 2017-18 stands at R 263,107 crores
which provides good revenue visibility in 2018-19. While
execution was impacted in 2017-18 due to disruptions
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caused by implementation of GST as well as bottlenecks
in some projects due to tardy customer payments, delayed
clearances, and land acquisition / right of way issue, your
Company clocked revenues of R 119,862 crores. This
translates to a growth of 9.5% on a like-to-like basis over
the previous year after adjusting for Excise Duties which
were subsumed in GST from 1st July 2017 onwards.
Profit after Tax recorded an all-time high of R 7,370 crore –
representing a 22% increase over PAT of 2016-17.
It gives me great pleasure to inform you that the Board
of Directors has recommended a Dividend of R 16.00 per
share. Corresponding dividend in the previous year was
R 14.00 per share.
International Business
The thrust on international business initiated almost two
decades ago has contributed to your Company being
recognized as a marquee player in the Middle East in the
hydrocarbon and infrastructure sectors. This has ensured
that despite fiscal contraction in oil producing countries,
we continued to enjoy business traction throughout
2017-18. The recent spurt in oil prices could trigger an
increased round of investments in the region, opening
possibilities for resurgent growth.
In line with our aim of diversifying the spread of our
international business beyond the Middle East, we are also
actively pursuing opportunities in East and North Africa
Region (including Algeria and Egypt) and other ‘near shore’
geographies of East Asia (Bangladesh, Myanmar, Thailand,
Vietnam and Sri Lanka). The unexecuted Order Book from
international markets stood at R 62,500 crore, which
translates to 24% of the total Order Book. Of the total
international Order Book, non-GCC business now accounts
for 31% of the Book size.
Digital Future
Leveraging technology across all operations is a prime focus
area. While our digitalization journey will extend far into
the future, some operational benefits are already visible
- better asset utilization, improved labour productivity and
sourcing efficiencies though the use of IoT (Internet of
Things) and other digital solutions. L&T Infotech and
L&T Technology Services are our partners in this initiative,
and your Company expects to continue harvesting the
wide-ranging benefits of digitalization in the years ahead.
Talent Management and Succession Planning
Our Human Resources policies and practices centre around
moulding our employees into leaders in their areas of work.
Your Company’s structured 7-step Leadership Development
Programme plays a key role in helping build a robust
leadership and succession pipeline. A comprehensive
programme for monetary and non-monetary rewards
incentivises excellence.
While I have handed over the reins of day-to-day
operational management to the CEO & MD, I am focusing
on business portfolio rationalisation, mentoring the next
generation of leaders and expanding the outreach of your
Company’s CSR initiatives.
Sustainable Development
The sustainability of business pivots on the quality of the
ecosystem within which it operates. It is therefore a moral
imperative for responsible corporates to actively implement
measures to improve business performance, reduce social
disparities, and mitigate the environmental impact of
industrial development. Our sustainability focus is on
reduction of our carbon footprint and introduction of green
technologies, while improving the lives of the communities
around us through health, education, water & sanitation
and skill-building initiatives.
Total spends on CSR initiatives in 2017-18 by your
Company amounted to R 101 crore under eligible items, as
defined in the Companies Act. This translates to 2% of the
average annual net profits of the Company over the last
three years.
Outlook
India is witnessing the increasing ‘formalisation’ of an
economy which for decades had sections operating below
the radar. Structural reforms such as Demonetisation, GST
and the Insolvency & Bankruptcy Code have resulted in
a larger pool of assessees and growth in the volume of
tax collection. The increase in tax revenues should enable
the Government to invest in essential infrastructure on a
sustained basis.
While international business opportunities continue to
remain reasonably healthy, 2018-19 is also expected to
witness strong domestic growth, aided by supportive
fiscal policies and the focused development agenda being
adopted by the Government. Business prospects in different
sectors provide a large canvas of opportunity which could
be tapped in 2018-19. Segments which hold promise in the
current year include:
1) Infrastructure
a) Roads – The Government has committed sizeable
budgetary allocation to augmenting road infrastructure.
We expect this momentum to continue, aided by increased
investments in expressway programs.
b) Railways – A thrust on railway electrification and track
augmentation is paving the way for increased opportunities
in your Company’s railways business. We are geared to tap
these prospects as they develop.
c) Metro Rail – We have been participating in Metro Rail
programs in multiple cities in India and in two projects in
the Middle East. The investment flow continues to gather
pace as more cities adopt mass rapid transit as an effective
and eco-friendly solution to urban traffic congestion.
Continued growth is expected in this business segment.
d) Urban Infrastructure – Your Company is a leader in
providing building solutions across the urban spectrum -
residential real estate, commercial buildings, affordable
housing, hospitals, educational institutions, hotels and
convention centres. While residential buildings have seen
a lull over the last few years, other prospects in this
vertical continue to hold promise. The new frontier in
urban infrastructure is Smart Cities. A growing number of
cities are adopting elements of smart city infrastructure
such as intelligent traffic management and surveillance
systems, smart electric grids & lighting, fibre optic cabling
and transport & logistics systems. Your Company has the
unique advantage of in-house domain expertise to provide
end-to-end offerings to customers. This enables us to play
the role of a Master System Integrator for the Smart Cities
of the future.
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e) Water Infrastructure – The water sector has seen
sub-optimal investment levels in the past. This could
change for the better, thanks to the growing realization
that ground water is being overexploited and that better
irrigation facilities are essential to provide a sustainable
livelihood for our farmers. Your Company’s diverse
range of offerings in the water sector will benefit from
the Government’s programmes to clean the country’s
major rivers as well as from bulk transmission and water
treatment for municipalities, sewage & effluent treatment
plants, lift irrigation and inland waterways infrastructure.
2) Thermal Power Generation – A slowdown in the
thermal power generation sector across the last few years
has led to aggressive bidding, as competitors vie for the
limited opportunities on offer. Your Company looks forward
to prospects aggregating 6 GW which are likely to be
awarded in the current year, and these constitute targeted
business. We have successfully constructed gas-fired
power plants in Bangladesh and will continue to tap similar
prospects likely to come up in the neighbouring country in
the current year. We also continue to engage with our joint
venture partners for increased international business in our
efforts to increase manufacturing capacity utilisation.
3) Power Transmission & Distribution (PT&D) –
We have built strong business foundations in the PT&D
space in India and the Middle East. Inroads have also been
made into parts of East Africa, Algeria and Egypt. This is in
line with our objective of creating an international PT&D
business covering dispersed geographies. On the domestic
front, the thrust by the Government on strengthening
power grids through Central and State utilities, as well as
intensive electrification of rural households is expected to
yield good business in the current year. We also continue to
see good traction in international business prospects.
4) Hydrocarbon – Oil prices are rebounding from their
historic low points. This will brighten prospects for your
Company’s hydrocarbon business in the Middle East region
which had seen contraction of spends over the last two
years. We have adopted a policy of judicious bidding
for projects with selected customers in the GCC region.
Projects are selected based on a strong customer connect
and the predictable prospects of streamlined execution.
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Countries being targeted include Saudi Arabia, UAE,
Kuwait, Oman, Algeria and a few in East Asia. On the
domestic front, prospects in offshore production, onshore
refinery capex, fertiliser plants and pipeline projects are a
cause for cheer.
The Company has built up a good order book and
possesses proven capabilities to harness upcoming
prospects.
5) Heavy Engineering – The Heavy Engineering business
faced hurdles over the last few years due to shrinking
global spends on hydrocarbon equipment compounded
by the slow pace of revival of the nuclear power industry.
Prospects for the current year are reasonably strong with
some signs of a higher level of ordering for hydrocarbon
equipment. The Nuclear Power Corporation of India Ltd.
has also progressed in its plan to build ten new nuclear
power plants using its 700 MW indigenous design. The
commencement of awarding orders for equipment is
encouraging news for the Heavy Engineering business.
6) Electrical & Automation (E&A) – The Electrical &
Automation business continued to record stable operational
indicators in 2017-18. It remains a market leader in many
segments within its wide range of low voltage switchgear.
The range includes Air Circuit Breakers, Moulded Case
Circuit Breakers, Switch Disconnector Fuses and other
electric protection devices for application in industry,
agriculture and segments such as buildings. Its expanding
product spectrum covers building automation systems
including smart meters and energy management systems,
and a range of customised energy distribution solutions.
Business opportunities for the current year are positive,
and likely to stimulate growth.
In line with its strategic plan to exit non-core businesses,
your Company signed an agreement with Schneider Electric
to divest this business, subject to regulatory approvals.
We envisage that these approvals could be forthcoming in
timelines in excess of a year.
7) Realty – This sector has been impacted by
Demonetisation, RERA and the increased financialization
of savings where individuals shift their investments from
real estate or gold to financial assets. While the industry
continues to be weighed down by excess inventory and
low absorption rates, business is gradually improving and
we expect 2018-19 to be better than the last two years in
terms of order inflows and offtake. Your Company intends
to continue with monetisation of its properties in Mumbai,
Bangalore and Chennai, subject to Government approvals.
8) Information Technology and Technology Services
(IT and TS) – After listing of L&T Infotech Ltd (LTI) and L&T
Technology Services (LTTS) in mid-2016-17, the businesses
have recorded above average growth while maintaining
margins and returns on capital. Markets have responded
positively, and have rewarded the IPO shareholders through
capital appreciation. At the heart of the success of both
these subsidiaries is the customer-focused lineage of
Larsen & Toubro. While drawing extensively on the domain
knowledge and operational expertise of their parent
company, they have also leveraged its international client
base which includes global majors.
The focus of the businesses is on increased digital
offerings, with special emphasis on client mining, talent
management, enhanced utilisation of resources and
superior service offering. These listed subsidiaries are well
equipped to address and overcome global challenges
including increasing protectionist policies while maintaining
healthy shareholder returns.
9) Financial Services – This business, which was listed
in 2011, continues to perform well, and had a loan book
of R 83,654 crore at the end of 2017-18, representing a
strong Year-on-Year growth of 26%. Its growth momentum
continues in both lending and investment management
where the average AUM has risen to R 66,000 crore
in 2017-18. Digital and data analytics have facilitated
operations even as growth in focused businesses, asset
quality, fee income and operational excellence measures
are enabling the business to increase returns on capital.
Equity capital was raised in end-2017-18, and your
Company subscribed to the equity issue in order to
maintain its equity stakes since it believes that growth
capital infusion will be return accretive.
10) Development Projects – Your Company owns
a portfolio of concession assets comprising roads, a
transmission line, power generation, a container port
and a metro rail. The metro rail project and some hydel
plant projects are currently under construction. In the
current year, we have divested five road concessions to an
Investment Trust, and will continue to evaluate options for
monetisation of value created in the remaining concession
assets.
Strategic Plan
Your Company formulated its 5-year strategic plan –
LAKSHYA - spanning the years from 2016-17 to 2020-21
(both years inclusive), and has largely been on track in
execution of this plan. The overarching goal is to enhance
Return on Equity (RoE). Levers to achieve this include
maintaining steady growth in revenues with improvement
in margins, control on working capital, divestment of
non-core businesses, endeavouring to turn around
under-utilised facilities, minimising capital expenditure,
avoiding investment in long gestation or asset heavy
businesses and higher pay-outs to shareholders. Both
2016-17 and 2017-18 have shown that our efforts are
yielding positive results. Your Company is confident of
continuing its RoE enhancement journey during the
current year as well.
I would like to conclude by thanking Team L&T as well
as our customers, vendors and other stakeholders who
have made it possible for your Company to maintain its
trajectory of growth during a challenging phase of the
Indian economy. I also wish to thank my fellow Board
members for their invaluable support.
Thank You.
A. M. Naik
Group Chairman
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Contents
Company Information 7
Organisation Structure 8-9
Leadership Team 10
L&T Nationwide Network & Global Presence 12-13
Corporate Social Responsibility 14-18
Annual Business Responsibility Report (ABRR) 2017-18 19-38
Standalone Financials - 10 Year Highlights 40
Consolidated Financials - 10 Year Highlights 41
Graphs 42-43
Route Map to the AGM Venue 44
AGM Notice 45-52
Directors’ Report 53-146
Management Discussion & Analysis 148-234
Auditors’ Report 235-241
Balance Sheet 242-243
Statement of Profit and Loss 244-245
Statement of Changes in Equity 246
Cash Flow Statement 247-248
Notes Forming Part of the Financial Statements 249-345
Auditors’ Report on Consolidated Financial Statements 347-351
Consolidated Balance Sheet 352-353
Consolidated Statement of Profit and Loss 354-355
Consolidated Statement of Changes in Equity 356-357
Consolidated Cash Flow Statement 358-359
Notes Forming Part of the Consolidated Financial Statements 360-462
Information Regarding Subsidiary Companies 463-472
Proxy Form 473-474
SEBI Notification-Amendment to Regulation 40 of SEBI LODR Regulations 2015 475
Circular for PAN & Bank Details updation 477-478
Shareholder’s Satisfaction Survey Form – 2018 479-480
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Company information
Board of Directors
MR. A. M. NAIK
Group Chairman
MR. ADIL SIRAJ ZAINULBHAI
Independent Director
MR. S. N. SUBRAHMANYAN
Chief Executive Officer and Managing Director
MR. AKHILESH KRISHNA GUPTA
Independent Director
MR. R. SHANKAR RAMAN
Whole-time Director & Chief Financial Officer
MRS. SUNITA SHARMA
Nominee of Life Insurance Corporation of India
MR. SHAILENDRA NARAIN ROY
Whole-time Director & Sr. Executive Vice President
(Power, Heavy Engg. & Nuclear)
MR. THOMAS MATHEW T.
Independent Director
MR. D. K. SEN
Whole-time Director & Sr. Executive Vice President
(Infrastructure)
MR. M. V. SATISH
Whole-time Director & Sr. Executive Vice President
(Buildings, Minerals and Metals)
MR. AJAY SHANKAR
Independent Director
MR. SUBRAMANIAN SARMA
Non-Executive Director
MRS. NAINA LAL KIDWAI
Independent Director
MR. JAYANT DAMODAR PATIL
Whole-Time Director & Sr. Executive Vice President
(Defence Business)
MR. SANJEEV AGA
Independent Director
MR. NARAYANAN KUMAR
Independent Director
MR. ARVIND GUPTA
Nominee of SUUTI
MR. HEMANT BHARGAVA
Nominee of Life Insurance Corporation of India
MR. M. M. CHITALE
Independent Director
MR. SUBODH BHARGAVA
Independent Director
MR. M. DAMODARAN
Independent Director
MR. VIKRAM SINGH MEHTA
Independent Director
Company Secretary
Mr. N. Hariharan
Registered Office
L&T House, Ballard Estate, Mumbai - 400 001
Auditors
M/s.Deloitte Haskins & Sells LLP
Registrar & Share Transfer Agents
Karvy Computershare Private Limited
73rd Annual General Meeting at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai - 400 020.
on Thursday, 23rd August, 2018 at 3.00 p.m.
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Leadership Team
A. M. Naik
Group Chairman
S. N. Subrahmanyan
CEO & Managing Director
R. Shankar Raman
Whole-time Director &
Chief Financial Officer
Subramanian Sarma
Non-Executive Director, L&T
CEO & Managing Director
(L&T Hydrocarbon Engineering)
S. N. Roy
Whole-time Director &
Sr. Executive Vice President
(Power, Heavy Engineering & Nuclear)
D. K. Sen
Whole-time Director &
Sr. Executive Vice President
(Infrastructure)
M. V. Satish
Whole-time Director &
Sr. Executive Vice President
(Buildings, Minerals & Metals)
J. D. Patil
Whole-time Director &
Sr. Executive Vice President
(Defence)
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As on 5th July, 2018
Hasit Joshipura
Sr. Vice President & Head
Electrical & Automation
www.Larsentoubro.com
Game changers
don’t dream of change.
They engineer it.
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At Larsen & Toubro, we know what it take to change the game. We draw on our rich engineering heritage.
We cultivate the fi nest minds. And we partner nations, to build a newer, brighter future for all.
Over 80 years of engineering excellence
Smart Cities | Construction | Infrastructure | Defence & Aerospace
Special Steels & Forgings | EPC for Steel and Power Plants | Equipment for Oil & Gas
Technology, IT and Financial Services | Realty
For more information about L&T’s capabilities, please email: infodesk@Larsentoubro.com
Regd. Offi ce:
Larsen & Toubro Limited, L&T House, N. M. Marg
Ballard Estate, Mumbai - 400 001, INDIA
CIN: L99999MH1946PLC004768
Nationwide Network
Chandigarh
Rajpura
New Delhi
Faridabad
Jaipur
Udaipur
Ahmedabad
Vadodara
Bhopal
Pithampur
Lucknow
Guwahati
Varanasi
Durgapur
Ranchi
Jamshedpur
Serampore
Kolkata
Hazira
Nagpur
Raipur
Rourkela
Cuttack
Bhubaneswar
Mumbai
Panvel
Lonavala
Ahmednagar
Talegaon
Pune
Hyderabad
Vijayawada
Pulicat
Kattupalli
Chennai
Kancheepuram
Puducherry
Bengaluru
Mysore
Coimbatore
Kochi
Registered Office
Campus+
Power Plant
Shipyards
Offices
Knowledge City
Leadership Development Academy
Construction Skills Training Institutes*
+ ‘Campus’ denotes facilities for design and manufacture
* Part of L&T’s Corporate Social Initiatives
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Corporate
Social
Responsibility
Contributing towards Social Development and
Growth
L&T is an engineering and construction conglomerate with
a concern for the community. Building on many 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, inspires and
empowers employee volunteers or L&T-eers to contribute
their time to community development programmes
supported by the Company, thereby enhancing social
impact even further. The employees’ wives and female
employees power the Prayas Trust, driving CSR initiatives
in their own capacity and reaching out to remote
communities.
Even before the CSR section was introduced in the
Companies Act 2013, L&T had been interacting with the
community around L&T facilities and providing health,
education and skills development services to those who
needed it most.
In 2014 we consolidated our CSR programmes with a
focus on certain development areas that align with the
national development agenda and the global sustainable
development goals. Through the CSR theme ‘Building
India’s Social Infrastructure’ we are pleased to contribute
to the social change in India. Here is a snapshot of our CSR
interventions across four key thrust areas.
Water & Sanitation
- meeting the bare necessities
The Integrated Community Development Program of
L&T started in 2014-15, focused on making water –
the very ‘necessity of life’ – available to four water
stressed districts in Rajasthan, Maharashtra and Tamil
Nadu, covering 11006 households across an area of
9337 hectares. With an agenda focused on community
empowerment through Integrated Community
Development, we have ensured water availability for
drinking, sanitation and agriculture
Interventions
• The water and soil conservation structures like check
dams, anicuts, contour trenches, farm bunds and
farm ponds constructed with the participation and
contribution of the community, helped in increasing
the water level in the water bodies in these villages
and retain soil moisture.
Water conservation structures built to meet domestic needs, Chettipalayam, Tamil Nadu.
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• The community groups like Village Development
Committees (VDCs) with 50 per cent participation
from women and Self Help Groups (SHGs) were created.
They assumed the responsibility to maintain the
structures created through the project
• Farmers were trained in agricultural practices with
optimal use of water and use of zero budget natural
fertilisers to retain the fertility of the land.
The community members also devised methods that
improve the arability of land.
Sanitation drives
The Swachha Bharat Program of GOI, gave the necessary
impetus to initiate the sanitation drive in villages.
L&T trained local youth in masonry skills and used local
materials to achieve the following:
• Construction of over than 970 well-designed toilet-cum
-bathrooms
• Community-based monitoring committees to deter open
defecation
• L&T received ISC-FICCI sanitation award for Best
Corporate Initiative in Sanitation this year.
Impact
• Access to water for drinking, sanitation, irrigation,
cultivation of fodder and extra crops
• Two revenue villages and 13 hamlets are open
defecation free, benefitting 1100 households
• Improved economies, for 11000 households,
raising the aspirations of the people.
• Chettipalayam watershed project, South Coimbatore,
enabled water holding of 47 lakh litres in one year and
made 18 hectares of barren land cultivable
Education
- the mainstay of progress
We commit ourselves to make quality education accessible
to each and every child by introducing relevant curriculum,
improving teaching methods and ensuring parent and
community participation in creating learning environment.
Interventions
Basic Infrastructural support includes construction or
repair of the classrooms, toilet blocks and water
stations for basic hygiene facilities, midday meal
kitchens and sports ground.
Educational support: Supplies such as uniforms,
textbooks, notebooks and sports kits are provided to under
privileged students in government and unaided low-income
schools in rural and tribal villages.
Balwadi program: L&T strengthens early childhood
development program by improving the quality of
balwadis and anganwadis in urban slums and rural
areas, ensuring entry into the mainstream education system
and improved enrolment in the primary schools.
• Supplementary food is provided in tribal balwadis.
• Toy vans visiting anganwadis provide necessary
childhood development activities
• Training of Trainers for Balwadi teachers for
capacity building.
Field Bund at Okkipalayam, Tamilnadu
Toilet Blocks at Lasadiya, Bhim, Rajasthan
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Afterschool community study centres offer
supplementary education and reach out to the first-
generation learners and children from weaker sections.
• Efforts are directed towards designing a curriculum
for easy learning that is aligned with the school
curriculum.
Focus on Science Innovation and Technology:
• L&T has supported Government initiatives and
sponsored Mini Science Centres in rural schools,
simplifying complex scientific concepts
• A Science on Wheels program reaches out to
3293 children in 17 schools, encouraging students
to develop interest in science and technology-related
subjects.
• To facilitate the access of e-learning technology to
rural and tribal students, L&T has provided computer
labs and digital classrooms in several rural schools.
Capacity building: Teacher Training Programmes are
conducted to enhance the quality of education being
imparted to students studying in Government schools and
low-income trust run schools.
Overall development of children:
• Children are also given inputs on life-skills and
extra-curricular activities such as dance, music and
drawing.
• Educational and recreational outings are organised
• Specialised health camps are organised for children
for eye check-up, early detection and treatment of
anaemia, malnutrition and other childhood diseases.
• Education sessions on health and hygiene
with children and adolescents are conducted for
preventive care and for promoting healthy sanitation
practices.
Creating learning environment: The community level
School Management Committee (SMC) and parents are
invited for a dialogue to encourage students to
continue their education, as well as for sustaining
L&T’s efforts in future.
Impact
• 250 schools gained better facilities that increased
enrolment and retention of students.
• 1,56,168 students covered through our education
projects this year.
Health
- the wellspring of joy
L&T’s CSR programme in the health sector aims at making
quality healthcare services accessible and affordable
without anyone having to face financial hardship.
L&T focuses on strengthening the Government’s health
programmes like family welfare, mother and child health,
HIV-AIDS, Tuberculosis, Blindness control, Diabetes
detection and treatment and reproductive health services.
It also provides services related to lifestyle diseases like
hypertension and cardiac problems.
Jai Ramakrishna Institution English Medium School, Navagam, Gujarat, supported by L&T
16
Interventions
Health Centres: A team around ninety well-qualified
medical rehabilitation consultants and 12 professionally-
staffed, well-equipped multi-speciality centres provide the
following services:
HIV and AIDS Management Programme: L&T’s
state-of-the-art Anti-Retroviral Treatment (ART)
centre provides diagnostic, medical and counselling services
in association with National AIDS Control Organisation
(NACO).
Physical health: Health Centre offers tertiary health
services including Family Planning surgeries, Day Care
General Surgeries, Endoscopy Procedures and Dental
Procedures. It also provides eye checks, mother and child
health care, physiotherapy and occupational therapy,
infertility treatment, hearing-speech services and a skin
clinic focusing on leprosy treatment and communicable
diseases.
Psychological health: Psychiatric OPDs and family
counselling services address mental health and stress
related issues, while a Child Guidance Clinic helps younger
members of the community.
Health Camps:
• Mobile health vans visit the communities around
the centre.
• Specialised health camps covering Eye care,
dental, Paediatric and Gynaecological care.
TB related services: Comprehensive TB related
treatment in Mumbai including individualised treatment
OPD, check-up, diagnostics, medicines and nutrition,
support, home visits and counselling.
L&T runs an exclusive TB clinic in Koldongri, in
the suburbs of Mumbai, in partnership with the
Municipal Corporation of Greater Mumbai (MCGM)
providing CAT I, II and IV treatment to the patients,
with a cure rate of 85-90%.
Dialysis centres: 2384 dialysis sessions have been
conducted at the L&T-run kidney dialysis centre at Thane.
Cancer detection camps: Targeted at women, L&T
promotes preventive education and early diagnosis of
cervical and breast cancer through cancer detection
camps.
• Specialised health promotion programme with focus on
hygiene, reproductive health and family life education
Impact
350076 Lives touched through various health services
for children and adolescents in Government remand and
corrective homes and homes for neglected children
L&T T. B. Clinic, koldongri-Andheri, Mumbai
17
2000 women become self-reliant!
The objective of the programme run by L&T Kolkata,
was to empower women in the slums of Kolkata
and neighbouring villages, by providing them with
alternative paid employment by manufacturing
products for the local and overseas markets, and to
improve the status of women and girls in the society.
More than 2000 women are engaged in small
enterprise such as tailoring of garments, beauty
culture, home furnishing, spices, jam, pickle, crochet,
weaving, knitting, block printing and Kantha stitch,
etc. This programme is not only empowering
the women economically but also helping instil
self-confidence. Their monthly average income is
between R 5000 and R 8000.
Skill Development
- creating a world of possibilities
Skill development has emerged as a key strategy to realize
the potential of demographic advantage of having the
youngest workforce with an average age of 29 years in
India. L&T’s skill building initiative aims to create human
resources for improving the country’s competitiveness and
growth, especially in the field of Construction skills by
training the youth.
Interventions
Construction Skills Training Institutes (CSTIs):
L&T runs 9 CSTIs in 9 states, providing.
free training in construction skills for the large
unorganised workforce in the sector, making them
employable.
Employable skills training for women:
At many L&T sites, local women, young girls and
physically-challenged persons are trained in various
employable skills as per their interests and aptitude.
The courses include Tailoring, Embroidery, Beautician
Course, Food Processing, Home Management, Computer
Skills, Basic Education and Basic Health.
Impact:
• 7365 youth completed various courses at CSTIs this year
• 15338 people have been trained in employable
vocational skills this year.
Solar Photo Voltage Technician training at Pilkhuwa CSTI, Uttar Pradesh
CSTI-trained Electrician working at Dindigul project
18
ANNUAL BUSINESS RESPONSIBILITY REPORT 2017-18
Larsen & Toubro believes that sound sustainability practices are important for retaining and enhancing investors’ and
stakeholders’ trust in the organization. L&T always ensures that natural resources utilized by the Company are managed
in an efficient way, and maintains a good relationship with the communities around its facilities. As a part of its
Sustainability Roadmap 2021, L&T has embraced a digital culture to improve its triple bottom-line performance.
In accordance with regulations 34(2) (f) of the Securities Exchange Board of India (SEBI) (Listing Obligation and Disclosure
Requirements) Regulations 2015, this Business Responsibility Report (BRR) has been prepared and is in alignment with
the National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business (NVG - SEE) released
by Ministry of Corporate Affairs, Government of India. This BRR provides an overview of the activities carried out by
L&T against the nine principles outlined in the NVG. After 10 years of Sustainability Reporting in the public domain,
disclosures on sustainability parameters will now be made in the form of an Integrated Report (. The IR will be in
accordance with the Global Reporting Initiative (GRI) Standard ‘Comprehensive’ option. It will cover the environment,
economic and social performance of the Company and will be externally assured.
The Sustainability Reports are accessible 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 2017 - 31st March 2018
7. Sector(s) that the Company is engaged in (industrial activity code-wise):
Group Class
Sub-Class Description
271
2710
282
2824 28246
30112
30114
Manufacture of electric motors, generators, transformers and electricity distribution and
control apparatus
Manufacture of parts and accessories for machinery / equipment used by construction and
mining industries.
Building of warships and scientific investigation ships, etc.
Construction of floating or submersible drilling platforms.
410
421
421
422
465
681
252
711
4100 41001
Construction of buildings carried out on own-account basis or on a fee or contract basis.
4210 42101
42102
Construction and maintenance of motorways, streets, roads, other vehicular and pedestrian
ways, highways, bridges, tunnels and subways.
Construction and maintenance of railways and rail-bridges.
4210 42103
Construction and maintenance of airfield runways
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 refineries, chemical plants, etc.
4659 46594
Wholesale construction and civil engineering machinery and equipment.
6810 68100
Real estate activities with own or leased property.
2520
Manufacture of weapons and ammunition
7110 71100
Architectural and engineering activities and related technical consultancy.
19
8. List three key products/services that the Company manufactures/provides (as in The Balance Sheet)
1. Construction and project related activity.
2. Manufacturing and trading activity.
3. Engineering services.
9. Total number of locations where business activity is undertaken by the Company
i. Number of International Locations : 35
ii. Number of National Locations : 100
10. Markets served by the Company – Local/State/National/International/: All
SECTION B: FINANCIAL DETAILS OF THE COMPANY
1. Paid up Capital (INR): R 280.27 crore
2. Total Turnover (INR): R 74611.65 crore
3. Total profit after taxes (INR): R 5387.30 crore
4. Total Spending on Corporate Social Responsibility (CSR) as percentage of Profit After Tax (%): 1.87%
As per the Section 135 of The Companies Act 2013, the CSR spend is 2.07% 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. Health
ii. Education
iii. Water & Sanitation
iv. Skill Building
SECTION C: OTHER DETAILS
1. Does the Company have any Subsidiary Company / Companies?
Yes
2. Do the Subsidiary Company / Companies participate in the BR Initiatives of the parent company? If yes, then
indicate the number of such subsidiary company(s):
Yes. The Business Responsibility (BR) initiatives of the Company are extended to the Subsidiary/Associate
Companies and they are also encouraged to participate in BR Initiatives of the parent organization. In
addition, companies like L&T Finance Holdings, Larsen & Toubro Infotech, L&T Technology Services (listed
entities) will have their separate BR Report (BRR) as a part of their Annual Reports. L&T Hydrocarbon
Engineering and other subsidiary companies participate in our BR initiatives.
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with; participate in
the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%,
30-60%, More than 60%]:
Yes. The suppliers are critical to the organization’s operation and supply chain sustainability issues can
impact its operations. 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/Director responsible for implementation of the BR policy/policies
• DIN Number: 00274288
• Name: Dr. Hasit Joshipura
• Designation: Member - Executive Committee, Senior Vice President & Head - Electrical & Automation
(Formerly Head - Corporate Centre)
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
Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
1
2
3
Do you have a policy/policies for
Has the policy being formulated in
consultation with the relevant stake-
holders?
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Does the policy conform to any na-
tional /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.
21
S. No
Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
Y
Y
Y
Y
Y
Y
Y
Y
Y
4.
Has the policy being approved by the
Board?
Yes.
If yes, has it been signed by MD/own-
er/CEO/appropriate Board Director?
Signed by the
Group Chairman
5.
Does the company have a specified
Y
Y
Y
Y
Y
Y
Y
Y
Y
committee of the Board/ Director/Of-
ficial to oversee the implementation
of the policy?
Yes.
Indicate the link for the policy to be
www.Lntsustainability.com
viewed online?
Has the policy been formally commu-
nicated to all relevant internal and
external stakeholders?
Does the company have in-house
structure to implement the policy/
policies?
Does the Company have a grievance
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
6
7
8
9
redressal mechanism related to the
Y
Y
Y
Y
Y
Y
Y
Y
Y
policy/policies to address stakehold-
ers’ grievances related to the policy/
policies?
10
Has the company carried out in-
dependent audit/evaluation of the
Y
Y
Y
Y
Y
Y
Y
Y
Y
working of this policy by an internal
or external agency?
22
2b. If answer to S. No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
Not Applicable
S. No
Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
1
2.
The company has not understood the
Not Applicable
Principles
The company is not at a stage where
it finds itself in a position to formu-
Not Applicable
late and implement the policies on
specified principles
3.
The company does not have financial
Not Applicable
or manpower resources available for
the task
4.
5.
6.
It is planned to be done within next
Not Applicable
6 months
It is planned to be done within the
Not Applicable
next 1 year
Any other reason (please specify)
Not Applicable
3. Governance related to BR
(a)
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
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 Standard and 2017 report was ‘In Accordance – Comprehensive’ report. The reports can be accessed at
www.Lntsustainability.com and sustainabilityreport.Larsentoubro.com
23
SECTION E
PRINCIPLE 1: BUSINESSES SHOULD
CONDUCT AND GOVERN THEMSELVES
WITH ETHICS, TRANSPARENCY AND
ACCOUNTABILITY
L&T’s rich legacy of a transparent and just governance
system, disclosure practices and integrity are the bedrock
of the Company’s business philosophy. Larsen & Toubro
is a professionally managed Indian multinational with
a focus on enhancing stakeholder’s value through
committed customer satisfaction. The vision and
corporate polices of the company are extended to all
subsidiaries and associate companies.
L&T has adopted the Code of Conduct (CoC) for
employees, including board members, to remain
consistently vigilant and ensure ethical conduct of
its operations. All employees are required to comply
with the CoC and are required to provide an annual
declaration of their adherence to it. This enhances the
understanding of CoC amongst employees as well as
infuses in them a sense of ownership for their actions.
Employees and relevant stakeholders are trained
and otherwise made aware of the CoC as well as
amendments to it.
The CEO & MD makes an annual declaration to the
shareholders regarding the senior management’s
compliance with the CoC. It is available on the
Company’s website – www.Larsentoubro.com.
All new joinees are made aware of the CoC as a part of
their induction program. An online mode is also available
on L&T’s ‘Any Time Learning’ application. The key aspects
of the CoC are covered in L&T’s HR orientation training
modules – SWAGAT and PRAYAG for Graduate Engineer
Trainee (GETs) / Post Graduate Engineer Trainee (PGET).
An Apex Committee is responsible for ensuring
implementation of the CoC across the Company. The
Committee handles non-compliance instances as well
as guides the unit-level CoC committee. The Apex
committee also acts, interacts and coordinates with the
Executive Committee (E Com) on all issues pertaining to
the CoC. The Apex Committee comprises a minimum of
five senior members. The Compliance Officer also acts as
the Ex-Officio of the Apex Committee.
24
Codified policies publicly affirm the organisation’s commitment,
govern actions and provide clarity of direction
The unit-level CoC Committee comprises four members
from HR, Operations and Accounts, and is supervised
by the Unit Head. This Committee meets at least once
a quarter. The role of the Unit Committee is to create
awareness amongst employees, motivate them to
adhere to the CoC, monitor the compliance, investigate
instances of non-compliance and report to the Apex
body. Good corporate governance practices are imbibed
by the employees and have become a way of life. It
ultimately enhances the brand value of Larsen & Toubro.
A vigilance mechanism is in place for directors and
employees to report their concerns about actual or
suspected fraud, unethical behaviour or violation
of the Company’s CoC. This is ensured through the
Whistle-Blower policy – an effective tool available for
employees to report, without fear, instances related to
non-compliance, any wrong practice, unethical behaviour
or improper practice which may have an adverse impact
on the Company or cause financial loss to the Company.
The Whistle-Blower Investigation Committee and the
management maintain anonymity of the whistle-blower
at all times. During 2017-18, a total of 32 complaints
were received, 75% of these were investigated and dealt
with in accordance with the Company’s protocol and
25% are under review. Details relating to stakeholder
complaints are included in the Director’s Report Section
of this Annual Report.
There is a Combined CoC for suppliers which covers
specific aspects of environmental management and
compliance, labour practices, human rights, freedom of
association and collective bargaining, prohibition of child
labour, prohibition of forced and compulsory labour,
impact on society, ethics, transparency and business
processes.
Every new supplier / vendor must sign this CoC before
doing any business with L&T. Since 2016, more than
18,000 suppliers have signed this Combined CoC.
Capacity-building programmes for vendors and sub-
contractors are conducted by the company and the
programme provides training on EHS, business process
improvement and sustainability.
The Company also ensures compliance by its vendors
and contractors through periodical assessment, quality
inspection and EHS audits.
PRINCIPLE 2: BUSINESSES SHOULD
PROVIDE GOODS AND SERVICES
THAT ARE SAFE AND CONTRIBUTE TO
SUSTAINABILITY THROUGHOUT THEIR
LIFE-CYCLE
L&T ensures that environment, health and safety aspects
are taken into consideration at the design stage itself,
while manufacturing products or providing services
to customers. It is our endeavour to provide safe and
sustainable goods and services to our clients. Our
business portfolio consists of infrastructure, energy (oil
& gas / power), defence, heavy engineering, electrical
& automation products, hydrocarbon projects, IT,
technological services and financial services. Sustainability
aspects, including lower emissions and resource
conservation, are integrated into our engineering and
design. The Company also provides training to customers
and customers’ personnel in the safe use and handling of
products.
L&T offers conservation-based products and projects,
such as Green Buildings, wastewater treatment and
recycling plants and solar-PV-based power plants. These
help our clients prevent pollution and conserve resources.
At our own campuses, we have 17 certified Green
buildings including one green factory. Our 24 campuses
have adopted the zero-wastewater discharge approach
and continue to ensure water positive status. Energy
efficiency programs and climate change mitigation
From world-class airports to metro systems, L&T’s sustainable infrastructure helps people travel with ease
25
25
measures are extensively implemented across L&T,
contributing towards greener campuses and project sites.
Renewable energy is harnessed at campuses and project
sites as well.
Our green product and services portfolio consists of
metro rail projects, efficient power transmission and
distribution systems, small hydro-electric power stations,
solar-PV-based power plants, green buildings, energy
efficient equipment (power management systems, AC
drives, smart metering), water treatment & distribution
infrastructure, supercritical and ultra-supercritical thermal
power plants and equipment and coal gasifiers. Our
green portfolio is focused on minimising environmental
impact, e.g. reduced water consumption, carbon
emissions and material consumption and reduced
waste-generation. These help our clients to move on the
low-carbon economy path.
The Company extensively participates in the ‘Make
in India’ programme and promotes local sourcing of
products and services. The transportation of material
at the project sites is optimized based on the project
execution stage. Many of our infrastructure projects are
at remote locations, and therefore goods and services are
procured from local producers and surrounding areas as
far as possible.
L&T has adopted the 3R (Reduce, Recycle & Recover)
principle for material conservation. Material recycling
and use of alternative material (in place of natural
material) is extensively practiced by our infrastructure
business. The Sustainability Roadmap 2021 targets
increasing recycling / use of recycled material by 5%.
Fly ash substitutes cement, crushed sand is used in place
of natural sand, and blast furnace slag is used. These are
some of the conservation methods extensively practiced
at project sites. However, since most of our products are
‘engineered to order’ and based on customer-specific
requirement, the use of recycled material for products is
limited.
PRINCIPLE 3: BUSINESS SHOULD
PROMOTE WELL-BEING OF EMPLOYEES
The Company’s growth truly depends upon the growth
of employees within the organization. The commitment
of employees, their enthusiasm and dedication helps L&T
to become a truly global conglomerate. The Company
nurtures its talent through its leadership program,
training, motivation and rewarding performance. The
Corporate Human Resources Policy has set up a strong
framework for workforce management. Fostering a
culture of caring and trust are other corporate policies
like the Environment, Health & Safety (EHS) Policy,
Whistle-Blower policy, Protection of Women’s Rights at
Workplace and the CoC.
L&T does not discriminate against employees based on
caste, religion, region, gender or physical disability and
merit of candidates is always accorded top priority for
selection and promotion. L&T adheres to be UNGC
(United Nation Global Compact) principles which includes
Human Rights clauses. These causes are part of our
contracts with suppliers, partners, NGOs and extended
across our supply chain.
A training programme in progress at L&T’s Project Management Institute at Vadodara
26
26
The Company recognizes the employees’ right to form
unions and associations affiliated with trade unions
at it manufacturing campuses 6.78% of permanent
employees are covered under the unionized employee
category. L&T has provided direct employment to 104
Persons With Disabilities (PWDs) and the supply chain
has employed 43 Persons With Disabilities. In 2017-18,
no complaint was registered in respect of child labour,
forced / involuntary labour or about sexual harassment
at the workplace.
Total Workforce
L&T
employees
Refer “Standalone financials – 10-
year Highlights” section of Annual
Report
2248
264,589
Number of
permanent
women
employees
Average
number of
contract
workmen
Training and skill-building are the pillars which support
L&T’s skill development agenda. Regular training and
exposure to the challenges of the future are vital parts
of an employee’s career progress. L&T trains employees
in new skills in emerging fields in addition to continual
training on functional and behavioural areas.
Employees are given opportunities for higher education
through sponsorship in reputed colleges and by way of
corporate tie-ups.
Aerial view of L&T’s 22-acre Leadership Development Academy at Lonavala
L&T’s e-learning portal – Any Time Learning (ATL) – is
available for employees anytime and at any place. The
training modules are diverse. They are prepared by
subject experts and culled from various knowledge
sources. ATL courses are interactive, engaging and
user-friendly. This year, ATLNext, a learning process
automation and analytical platform, has been introduced.
This intelligent and adaptive learning platform makes
learning personal and compelling.
The Leadership Development Academy (LDA) at Lonavala
has been identified as a unique corporate university in
India. It is a symbol of value for L&T as it helps people
develop and grow by providing the right infrastructure,
ambience and services to aid and enhance learning.
The LDA has been recognized as a ‘Research Centre’ by
Symbiosis International University. It enables employees to
pursue their Ph. D. programmes. In addition, various
functional, technical and managerial training programmes
are provided to employees through technical training
centres from Mumbai (Madh and Mahape), Mysore and
Project Management Institutes (Vadodara and Chennai).
Safety of the workforce is given top-most priority in all
activities across facilities and project sites. Every task, job
or assignment must be performed in a safe manner only.
This is the basis of our work execution. We have a
structured approach towards safety, with assigned
individual objectives. Management commitment to safety
is demonstrated through our approach and is visible while
taking business decisions.
Our focus area is effective implementation of health and
safety practices in line with our ‘Zero Accident Vision’.
27
27
L&T maps both internal and external stakeholders along
with vulnerable, marginalized and disadvantaged
stakeholders. This enables us to understand that our
stakeholders comprise a large and mixed community with
varied and extended expectations, and L&T always strives
to match their expectations.
L&T engages regularly with stakeholders through various
programmes as they are a central part of L&T’s
decision-making process. Being a professionally managed
organization, our constant quest is to create value for all
stakeholders and at the same time, serve the wider interests
of society. Our dedicated Corporate Brand Management
& Communication (CBMC) department facilitates the
continuous dialogue between stakeholders and the
Company.
L&T is a pioneer in providing an anti-depression help-line
for its employees in India in collaboration with Tata Institute
of Social Science (TISS).
Our Corporate Social Responsibility (CSR) department
runs specific programmes focused on providing livelihood
opportunities to vulnerable and marginalized stakeholders,
both near and away from our campuses and project sites
to ensure that the benefits reach the maximum number of
beneficiaries.
One of our flagship CSR programmes is ‘Integrated
Community Development (ICD)’ which focuses on
improving the quality of life of communities living in the
‘water-stressed’ regions of India. The ICD programme
works towards providing access to clean drinking water,
sanitation facilities and water for agriculture in water-
stressed regions. It is followed up with CSR interventions
in health, education and skill-building.
It aims to create a safer work environment for our
employees, contractors and customers through rigorous
systems, procedures and firm implementation. This is also
extended to our supply chain partners as well. Our
Corporate Environment, Health & Safety (EHS) policy
articulates our commitment towards building a safe
workplace and defines protocols to be followed by each
business across India and abroad. The safety performance
of the Company is reviewed on a quarterly basis by the
Company’s Board.
Regular safety training is undertaken, including Tool Box
Talks, emergency mock drills and specific safety
interventions. New employees are introduced to the aspects
of safety and all contract workmen receive mandatory
safety training before commencement of work. L&T is
the first corporate organization in India to be accredited
as ‘Course Provider’ by National Examination Board in
Occupational Safety & Health (NEBOSH), United Kingdom
(UK) for delivering International General Certificate and by
Institution of Occupational Safety & Health (IOSH), UK for
delivering their course.
More than 3.8 million man-hours of safety training were
provided in FY 2017-18 to our workforce. Our wellness
program ‘Working on Wellness’ is a unique initiative
undertaken by Corporate Health and Welfare
Department, which conducts counselling, awareness
sessions, health programs, diagnostics camps and health
workshop activities aimed at enhance employees’ wellness
and well-being at office. These health interventions are
grouped into six critical areas like, cancer, diabetes, cardiac
disease, obesity, ergonomic issues and stress.
PRINCIPLE 4: BUSINESS SHOULD
RESPECT THE INTERESTS OF AND
BE RESPONSIVE TOWARDS ALL
STAKEHOLDERS, ESPECIALLY THOSE
WHO ARE DISADVANTAGED,
VULNERABLE AND MARGINALIZED.
Our responsibility to stakeholders is reflected in the way
we do our business. The contribution of shareholders and
investors to the growth of the Company is deeply valued,
and we work hard to ensure that we deliver positive returns
to the shareholders.
28
We use the following communication channels to
engage with various stakeholders:
External Stakeholders
For Internal Stakeholders
Stakeholders
Engagement Modes
Employees
Employee satisfaction surveys
Shareholders
and investors
Press Releases, Info desk – an online
service, dedicated email id for investor
grievances, Quarterly Results, Annual
Reports, Sustainability Reports,
Corporate Social Responsibility (CSR)
Report, Integrated Report, AGM
(Shareholder interaction), Investors
meet and shareholder visit to works,
corporate website.
Suppliers/
Contractors
Regular supplier, dealer and stockist
meets
Media
Press Releases, Quarterly Results,
Annual Reports, Sustainability Reports,
AGM (Shareholders interaction), Access
to information and responses to queries
Community
Periodic feedback mechanism
Customers
Government
Regular business interactions, Client
satisfaction surveys
Press Releases, Quarterly Results,
Annual Reports, Sustainability Reports
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-specific, some business-
specific, a CSR program newsletter.
L&T Helpdesk, toll-free number
L&T’s education initiatives benefitted over 3 lakh children
L&T has been publishing its Sustainability Report for 10 years in a row
29
29
Principle 5: Business should respect and
promote Human Rights
L&T is an Indian Multi-national Company (MNC) with a
presence in over 30 countries, and is exposed to human
rights issues. L&T publishes an annual Communication
On Progress (COP) as part of its compliance to UN
Global Compact (UNGC) and being a member of
Global Compact Network India (GCNI). The policies
and practices related to human rights are extended to
subsidiary and associate companies as well. L&T’s Human
Resource Policy covers human rights aspects and ILO
conventions.
Prohibition of child labour, prohibition of forced and
compulsory labour, non-discrimination, freedom of
collective bargaining etc. are covered in our Code of
Conduct for employees and Human Resource Policy. The
Policy for Protection of Women’s Rights at Workplace
is implemented to address sexual harassment at the
workplace. We conduct periodical training to employees
on various aspects on human rights. Different training
media are used for classroom sessions, policy manual
presentations, intranet and posters. The Company
complies with applicable regulatory requirements such
as the Factories Act 1948, Building & Other Construction
Workers (Regulation of Employment and Conditions
of Service) Act 1996, Industrial Disputes Act 1947
and amendments thereof. Two complaints of sexual
harassment at work place were received, investigated and
resolved as per the provisions of the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 along with its Rules. There are no
pending complaints with the Company.
Our Combined CoC for suppliers and vendors covers
Human Rights clauses, and all new suppliers must
confirm their adherence to these clauses before they can
commence business with L&T.
Principle 6: Business should respect,
protect and make efforts to restore the
environment
Environment protection and the conservation of natural
resources are part of L&T’s business philosophy. Our
Corporate Environment, Health & Safety (EHS) Policy lays
emphasis on incorporating environmental consideration
into all business processes. As a part of our Sustainability
programme, we set quantifiable targets with a timeline
and action plan to achieve them since 2009. Our
Sustainability Roadmap 2021 is aligned with our business
plan, LAKSHYA 2021, which consists of measurable
targets and key initiatives. The Sustainability Roadmap
is extended to S&A companies and they are encouraged
to set similar targets for themselves. Periodically,
environmental risks and opportunities are identified
from operations and addressed at the business level. We
take our sustainability practices to our supply chain to
create awareness and bring them abreast with current
environmental issues (at regional and global level) and
how these can adversely impact their operations. We also
Our water conservation efforts have resulted in all 24 of L&T’s campuses being water positive
30
30
share with our vendors, opportunities made available by
following sustainability practices and its benefit to them.
More than 18,000 suppliers have signed our combined
CoC, which is the first step towards following a
structured sustainability programme in our supply chain.
We continue to conduct water assessment surveys at
our major campuses. All 24 campuses maintained their
‘Water Positive’ status in 2017-18. Water conservation
and rain water harvesting are practiced within our
premises; additionally our community interventions
consist of rain water harvesting, check dam construction,
creation of farm ponds, soil moisture conservation
programmes, etc. The results are very encouraging.
Our 24 campuses have been maintaining zero
wastewater discharge status since 2014, and our
community intervention programmes have helped us to
conserve more than 2800 million litres of water annually.
Our climate change interventions programme focuses
on climate change mitigation and abatement. We focus
on reducing the energy consumption intensity (GJ/billion
turnover), implementing energy conservation projects
and increasing the use of renewable energy at our
operations. We also intend to reduce our GHG intensity
(tonnes of GHG emissions/billion turnover).
This year, we achieved Carbon Neutrality for two of
our Campuses, i.e. Powai (Mumbai) and Chennai.
We have aligned our practices with Government
of India’s National Action Plan on Climate Change
(NAPCC) and its eight Missions, and its annual progress
is published in our Sustainability Report. Increased
Tree plantation initiatives across L&T campuses help create natural carbon sinks
energy efficiency, developing low emission technologies,
building sustainable infrastructure, increasing green
cover and dissemination of sustainability knowledge are
adopted by the organization. We invest in lower emission
and cleaner programmes, thus promoting sustainable
growth. Our green product and services portfolio helps
our clients to reduce their carbon footprint.
We comply with applicable environmental regulatory
requirements from the State Pollution Control Board
(SPCB) and Central Pollution Control Board (CPCB).
Quarterly compliance is submitted by each business
and checked by the Corporate Secretarial department.
In addition, annual sustainability assurance by an
independent assurance agency covers compliance to
environmental regulations, including submission of the
compliance report to the regulatory agency. During
2017-18, there were no pending or unresolved show
cause / legal notices from CPCB / SPCB.
Renewable energy at manufacturing campuses is utilized,
wherever feasible. Currently, six campuses are sourcing
renewable energy (wind and solar) from external sources,
and all 24 campuses are generating renewable energy
onsite.
Fully-grown trees are natural carbon sinks, and
biodiversity plays an important role in sustenance
of human lives on this planet. L&T undertakes tree
plantation both within and outside its premises (as part
of our CSR programme) and we engage with agencies
/ NGOs to conduct plantation at public places, national
parks and on Government land. During Tree Plantation
Week (1st July - 7th July 2017), we planted more than
31
31
36,000 trees in Maharashtra alone. We have planted
more than 5 lakh trees in last five years across India and
we continue to nurture a self-sustaining forest at two
locations in India through the Miyakwaki technique.
PRINCIPLE 7: RESPONSIBLE PUBLIC
ADVOCACY
L&T engages with multiple business and trade
organizations and professional bodies. Our senior
executives participate through active dialogues, be it new
policy consultations or presenting views of the
stakeholders to the Government. They provide their
expertise and business acumen during public policy
consultations and present the industrial institution’s view.
Industrial forums and institutes where L&T participates
actively include:
• Association of Business Communicators of India
• Associated Chambers of Commerce and Industry of
India (ASSOCHAM)
• Bombay Chamber of Commerce & Industry (BCCI)
• Bureau of Indian Standards
• Construction Industry Development Council (CIDC)
• Confederation of Indian Industry (CII), Centre of Excel
lence 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
The Company interacts regularly with the Confederation
of Indian Industry – Centre of Excellence for Sustainable
Development (CII - CESD) on Sustainability and Integrated
Reporting policies, regulations and L&T is member
of lab India. The Federation of Indian Chambers of
Commerce and Industry (FICCI) engages with L&T for CSR
and India Sanitation Coalition. L&T regularly interacts with
the Indian Institute of Corporate Affairs (IICA) on CSR-re-
lated aspects as well. L&T is also an active member of
committees such as Environment & Recycling Council by CII
– Green Business Centre (GBC), CII EHS Council (Western
Region), Corporate Social Responsibility (CSR) etc.
PRINCIPLES 8: SUPPORT
INCLUSIVE GROWTH
The following corporate policies of L&T lay emphasis
on inclusive growth by empowering communities and
accelerating development.
• Corporate Social Responsibility Policy
• Corporate Human Resource Policy
• Corporate Environment, Health & Safety (EHS) Policy
• Sustainability Policy
The Company’s CSR programmes are based on the theme
‘Building India’s Social Infrastructure’. The objective is to
contribute positively to society, improve the quality of life,
provide sustainable solutions and make a meaningful im-
pact. The CSR interventions of the Company are based on
its CSR Policy and in line with the Companies Act 2013 and
CSR Rule 2014. The CSR Committee of the Board oversees
One of L&T’s Artificial Kidney Dialysis centres
Nurturing dreams at one of L&T’s Construction Skills Training Institutes
32
32
the implementation of CSR programmes on a project mode
through CSR team at the corporate level. They are ably
supported by Sustainability and CSR coordinators from all
businesses. L&T’s CSR interventions are focused on four
thrust areas: Water & sanitation, education, health and
skill-development, as detailed below.
Water & Sanitation:
• Implementation of Integrated Community
Development (ICD) Programme, with the objective of
making safe drinking water available to communities in
the water-stressed regions of Maharashtra, Tamil Nadu
and Rajasthan
• Creating access to sanitation facilities for disadvantaged
communities by building toilets and bathrooms
• Implementing soil and moisture conservation pro
grammes, building water harvesting structures, check
dams, field bunds and other agricultural techniques
• Tree plantation in and around our operational areas and
at ICD locations
Number of beneficiaries: 154,127
Education
• Pre-primary and primary education
• Infrastructure development in schools
• ‘Science on Wheels’ vans
• Introduction of innovative teaching and learning
techniques in English and Science, computer labs,
providing teaching aids and capacity-building
programmes for teachers
• Urban and rural community learning centres to provide
after-school academic support to children from
disadvantaged communities to help them to cope
with their curriculum and prevent their dropping out
• L&T Employee volunteering ‘L&T-eers’ to augment the
running of urban community learning centres
• Conducting workshops on life skills and awareness on
social issues
• Conducting summer camps, sports activities and
conducting extracurricular activities to help children
expand their horizons
Number of beneficiaries: 311,746
Health
• Providing health and welfare facilities for the
underprivileged across L&T’s locations in India
• Conducting camps to combat malnutrition and anemia
• Conducting eye check-ups, blood donation camps and
health awareness programmes
• Providing health services in remote locations through
mobile health vans
• Dedicated health centres at 12 locations across India,
providing services in reproductive health, diagnostic and
clinical camps, maternal and child health care,
immunization and health education
• Treating and supporting HIV / AIDS affected patients
through Anti-Retroviral Therapy (ART) centre at Mumbai
• Artificial kidney dialysis centres
Number of beneficiaries: 1,650,076
Skill Development
• Providing free training in construction skills like
bar bending, formwork carpentry, masonry,
scaffolding, welding, electric wiring etc. through
Construction Skills Training Institutes (CSTIs) to rural and
urban youth to enhance their employability
• Vocational training programmes for women: Tailoring,
beautician, home nursing and food processing courses
• Imparting skills and development of self-help groups at
ICD locations
Employee volunteers (L&T-eers) enhancing children’s educational quotient
L&T has built over 200 check dams in water-stressed areas
33
33
• Collaboration with state-run technical institutes (ITIs)
Number of beneficiaries: 36,327
Total beneficiaries: 21,52,276
The Company contributed R 100.92 crore in 2017-18
towards CSR activities as per the Companies Act 2013
PRINCIPLE 9: ENGAGE WITH AND
PROVIDE VALUE TO CUSTOMERS
L&T offers products and services in diverse fields, keeping
in mind changing customer demands and market trends in
india and select geographies. Such changes are also
incorporated into training, R&D, design and testing,
manufacturing, construction process and customer
interaction. Various digitalization initiatives are under way
to help in project monitoring to enhance efficiencies. L&T
has identified digitalization as a key driver to enhance
its global competitiveness. The Company is building its
capabilities to harness the true power of digital assets and
incorporate digital strategies into business model.
We have a robust EHS management framework
complemented by active involvement from our vendors
and contractors working at our campuses and project sites.
In addition, health and safety impacts and concerns
throughout the lifecycle are addressed while designing
products or offering services.
Our products carry adequate labelling and are supported by
operation and maintenance manuals incorporating related
specifications and codes, thereby providing adequate
information. L&T customizes the design and delivery of its
products to fulfill the various needs of the customers. Our
products are tested against stringent national and
international standards such as Indian Standard,
International Organization of Standardization (ISO), RoHS
(Restriction of Hazardous Substances – for relevant
products) and International Electro Technical Commission.
Training our product user / client is an integral part of our
services, and includes training in preventive maintenance.
Adequate signs are affixed on the products for ease of
understanding during transportation and use.
L&T’s green product and services portfolio helps its clients
to reduce their energy, water and material footprint and
helps them to follow a low-carbon economy path. L&T
engages with its customers through regular
customer meets, customer satisfaction surveys, market
based research including training and capacity-building
programmes for customers. Inputs from customer
feedback sessions are incorporated into our operations.
Senior management actively gets engaged in customer
feedback reviews and suggest corrective and preventive
action.
L&T’s communication conforms to the recommended
guidelines. L&T does not engage in the sale of banned or
disputed products. During the reporting period, no
complaints were received from any of our stakeholders
about incorrect or misleading marketing communication
or anti-competitive behaviour or irresponsible advertising.
L&T adheres to all the statutory regulations and voluntary
codes related to its products and services.
AU range of energy-efficient switchgear
‘Green’ building at L&T’s Talegaon campus
34
34
ANNEXURE: MAPPING TO THE SEBI FRAMEWORK
Section A : General Information about the Company
Question
1. Corporate Identity Number (CIN) of the Company
2. Name of the Company
3. Registered Address
4. Website
5. Email Id.
6. Financial Year Reported
7. Sector(s) that the Company is engaged in
(industrial activity code-wise)
8. List three key products/services that the Company
manufactures/provides (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
10. Markets served by the Company – Local/State/National/International
Section B: Financial Details of the Company
1. Paid up Capital (INR)
2. Total Turnover (INR)
3. Total profit after taxes (INR)
4. Total spending on Corporate Social Responsibility (CSR)
as percentage of profit 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%]
Reference
Section
Page Number
AR
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
20
35
Reference
Section
Page Number
AR
21
Question
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
• Email Id
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
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
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?
How many stakeholder complaints have been received in the past financial year and what
percentage was satisfactorily resolved by the management?
AR
AR
23
23
AR
24-25
The details related to
stakeholder complaints
are included in the
Director’s Report Section
of this Annual Report.
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?
AR
AR
AR
AR
AR
25-26
25-26
25-26
25-26
25-26
36
Question
Reference
Section
Page Number
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 Company is a
leading EPC solutions
provider for Solar
Photo Voltaic (PV)
based power plants
helping customers
save on energy bills
and contributing to
reduction of GHG
emissions from
consumption of indirect
energy.
Principle 3: Employee Well Being
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, involun-
tary labour, sexual harassment in the last financial year and pending, as on the end of the
financial year.
What percentage of your under mentioned employees were given safety and skill up grada-
tion 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 identified the disadvantaged, vulnerable and
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 financial 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?
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
25-26
26-28
26-28
26-28
26-28
28-29
28-29
30
30
30-32
30-32
30-32
37
Question
Reference
Section
Page Number
Does the Company have any project related to Clean Development Mechanism?
Has the Company undertaken any other initiatives on – clean technology,
energy efficiency, renewable energy, etc. Y/N.
Are the Emissions/Waste generated by the Company within the permissible limits given by
CPCB/SPCB for the financial 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.
Principle 7: Policy Advocacy
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 specified 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
financial year.
AR
AR
AR
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 filed by any stakeholder against the company regarding unfair trade
practices, irresponsible advertising and/or anti-competitive behavior during the last five years
and pending as of end of financial year
AR
AR
Did your Company carry out any consumer survey/ consumer satisfaction trends?
30-32
30-32
30-32
32
32-34
32-34
32-34
32-34
32-34
34
34
34
38
STANDALONE FINANCIALS-10 YEAR HIGHLIGHTS
Description
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
$$
Ind AS
IGAAP
v crore
Statement of Profit and Loss
Gross revenue from operations
PBDIT^^
Profit after tax (excluding
74612
7429
66301
63813
57558
57164
52196
53738
44296
37356
34337
6481
5829
6488
6667
5473
6283
5640
4816
3922
extraordinary/exceptional items)
4861
4560
4454
4699
4905
4169
4413
3676
3185
2709
Profit after tax (including
extraordinary/exceptional items)
5387
5454
5000
5056
5493
4384
4457
3958
4376
3482
Balance Sheet
Net worth
Loan funds
Capital employed
Ratios and statistics
PBDIT as % of net revenue from
operations @
PAT as % of net revenue from
operations $
RONW % *
49174
10561
59735
46013
42135
37085
33662
29291
25223
21846
18312
12460
10558
13924
12936
11459
8478
9896
7161
6801
6556
56571
56059
50021
45121
37769
35119
29007
25113
19016
9.98
9.86
9.23
11.38
11.78
10.60
11.82
12.84
13.00
11.56
7.23
11.32
8.30
7.91
8.87
9.71
8.50
8.38
9.01
11.82
10.26
12.37
12.39
14.30
17.46
16.06
18.95
19.73
28.49
31.71
Gross Debt: Equity ratio
0.21:1
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
Basic earnings per equity share (R) #
38.46
39.00
35.81
36.31
39.57
35.55
32.41
29.04
32.79
Book value per equity share (R) ##
350.90
328.79
301.57
265.85
241.97
211.39
182.90
159.31
134.98
Dividend per equity share (R) ##
16.00
14.00
12.17
10.83
9.50
8.22
7.33
6.44
5.56
26.44
94.36
4.67
No. of equity shareholders
8,99,902
9,23,628 10,28,541
8,53,824
832,831
854,151
926,719
8,53,485
8,14,678
9,31,362
No. of employees
42,924
41,466
43,354
44,081
54,579
50,592
48,754
45,117
38,785
37,357
Figures for 2017-18, 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 extraordinary/exceptional items)/(gross revenue from operations less excise
duty)].
RONW [(PAT including extraordinary/exceptional items)/(average net worth excluding revaluation reserve)].
Basic earnings per equity share have been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares.
*
#
## After considering adjustments for issue of bonus shares during the respective years.
$$
Figures for the year 2008-09 to 2011-12 include Hydrocarbon business which has been transferred w.e.f April 1, 2013 to a wholly owned subsidiary.
40
CONSOLIDATED FINANCIALS-10 YEAR HIGHLIGHTS
Description
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
Ind AS
IGAAP
Statement of Profit and Loss
Gross revenue from operations
119862
110011
101975
92762
85889
75195
64960
52470
44310
40932
PBDIT^^
13571
11130
10463
11258
10730
9929
8884
7677
6423
5024
v crore
Profit attributable to Group
shareholders (excluding
extraordinary/exceptional items)
Profit attributable to Group
shareholders (including
extraordinary/exceptional items)
Balance Sheet
Net worth
Non-controlling interest
Loan funds
Capital employed
Ratios and statistics
PBDIT as % of net revenue from
operations @
PAT as % of net revenue from
operations $
RONW % *
Gross debt: Equity ratio
Basic earnings per equity share (R) #
7151
5920
4154
4470
4547
4911
4649
4238
3796
3007
7370
6041
4233
4765
4902
5206
4694
4456
5451
3789
55657
5625
50217
44180
40909
37712
33860
29387
25051
20991
13988
3564
2893
4999
3179
2653
1753
1026
1087
1059
107524
93954
88135
90571
80330
62672
47150
32798
22656
18400
168806
147735
135208
136479
121221
99185
78290
58875
44734
33447
11.34
10.18
10.35
12.24
12.60
13.33
13.81
14.75
14.61
12.40
6.16
5.53
13.92
12.80
4.19
9.91
5.18
5.76
6.99
7.30
8.56
12.40
9.35
12.13
13.71
16.47
17.26
19.38
31.23
30.64
1.75:1
52.62
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
43.20
30.32
34.22
35.31
37.69
34.14
32.69
40.84
28.78
Book value per equity share (R) ##
397.16
358.83
316.20
293.29
271.10
244.40
213.09
182.65
154.70
105.90
Dividend per equity share (R) ##
16.00
14.00
12.17
10.83
9.50
8.22
7.33
6.44
5.56
4.67
Figures for 2017-18, 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 extraordinary/exceptional items/(gross revenue from operations less excise
duty)].
RONW [(profit attributable to group shareholders including extraordinary/exceptional items)/(average net worth excluding revaluation reserve)].
Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares.
## After considering issue of bonus shares during the respective years.
41
L&T CONSOLIDATED - ORDER INFLOW
L&T CONSOLIDATED - GROSS REVENUE
FROM OPERATIONS AND PAT
170000 –
150000 –
130000 –
110000 –
90000 –
70000 –
50000 –
e
r
o
r
c
v
30000 –
–
310000 –
260000 –
210000 –
e
r
o
r
c
v
160000 –
110000 –
60000 –
–
142995
7.1
152908
6.7
2016-17
2017-18
Order Inflow
India GDP growth
L&T CONSOLIDATED - ORDER BOOK
261341
1%
263107
– 9.0
– 8.5
– 8.0
– 7.5
– 7.0
– 6.5
– 6.0
–
e
g
a
t
n
e
c
r
e
P
120000 –
115000 –
110000 –
105000 –
100000 –
e
r
o
r
c
v
95000 –
90000 –
85000 –
80000 –
–
119862
7370
110011
6041
2016-17
2017-18
Gross revenue from operations
PAT including exceptional items
(attributable to owners of the Company)
– 7500
– 7000
– 6500
– 6000
– 5500
– 5000
– 4500
– 4000
– 3500
–
e
r
o
r
c
v
L&T CONSOLIDATED - PBDIT AS % OF NET REVENUE
FROM OPERATIONS
13571
11.3
11130
10.2
e
r
o
r
c
v
15000 –
13000 –
11000 –
9000 –
7000 –
5000 –
3000 –
–
– 16.0
– 14.0
– 12.0
– 10.0
– 8.0
– 6.0
– 4.0
–
e
g
a
t
n
e
c
r
e
P
As at 31-3-2017
As at 31-3-2018
–
PBDIT
PBDIT as % of net revenue from operations
Net revenue from operations and PBDIT exclude exceptional items
2016-17
2017-18
L&T CONSOLIDATED - SEGMENT-WISE ORDER INFLOW 2017-18
L&T CONSOLIDATED - SEGMENT-WISE REVENUE 2017-18
10377
7%
4294
3%
10064
7%
87277
57%
11188
7%
15811
10%
5635
4%
5848
4%
2414
1%
Total order inflow: v 152908 crore
v crore
Infrastructure
Power
Heavy Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
8242
7%
4294
4%
10064
9%
11188
9%
11736
10%
5209
4%
3845
3%
6201
5%
Total revenue: v 119862 crore
59083
49%
v crore
Infrastructure
Power
Heavy Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
42
L&T CONSOLIDATED - SEGMENT-WISE ORDER BOOK 2017-18
L&T CONSOLIDATED - SEGMENT-WISE ORDER BOOK 2016-17
15190
6%
26590
10%
3028
1%
13523
5%
9357
4%
v crore
Infrastructure
Power
195419
74%
Heavy Engineering
Electrical &
Automation
Hydrocarbon
Others
14160
5%
24823
10%
2741
1%
11997
5%
13824
5%
v crore
Infrastructure
Power
193796
74%
Heavy Engineering
Electrical &
Automation
Hydrocarbon
Others
Total Segment-wise order book: v 263107 crore
Total Segment-wise order book: v 261341 crore
L&T CONSOLIDATED - SEGMENT-WISE RESULT 2017-18
L&T CONSOLIDATED - SEGMENT-WISE EBIDTA MARGINS*
5293
(43%)
6000 –
5000 –
4000 –
3000 –
2000 –
1000 –
e
r
o
r
c
v
2146
(18%)
164
(1%)
516
(4%)
669
(5%)
772
(6%)
1441
(12%)
196
(2%)
1139
(9%)
0 –
– – – – – – – – – –
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
E
e
r
u
t
c
u
r
t
s
a
r
f
n
s
e
c
i
v
r
e
S
s
e
c
i
v
r
e
S
s
t
c
e
o
r
P
a
c
i
r
t
c
e
r
e
w
o
P
s
r
e
h
t
O
&
E
a
l
i
l
l
j
l
I
a
t
n
e
m
p
o
e
v
e
D
l
l
y
g
o
o
n
h
c
e
T
&
T
I
i
c
n
a
n
i
F
y
v
a
e
H
Total segment wise result: v 12336 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
2016-17
2017-18
20.0
17.1
16.0
15.1
21.2 21.4
10.2 10.0
3.5 3.4
6.8 7.7
17.3
10.9
14.8
10.1
6.3
2.3
0 –
– – – – – – – – – –
r
e
w
o
P
e
r
u
t
c
u
r
t
s
a
r
f
n
I
g
n
i
r
e
e
n
g
n
E
i
y
v
a
e
H
&
l
a
c
i
r
t
c
e
l
E
n
o
i
t
a
m
o
t
u
A
n
o
b
r
a
c
o
r
d
y
H
s
e
c
i
v
r
e
S
l
y
g
o
o
n
h
c
e
T
&
T
I
s
e
c
i
v
r
e
S
l
a
i
c
n
a
n
i
F
s
r
e
h
t
O
s
t
c
e
o
r
P
j
l
a
t
n
e
m
p
o
e
v
e
D
l
* Earnings before interest, depreciation, tax and amortisation as percentage of net segment revenue
L&T CONSOLIDATED - SEGMENT-WISE TOTAL ASSETS
L&T CONSOLIDATED - SEGMENT-WISE TOTAL LIABILITIES
e
r
o
r
c
v
9
8
8
7
8
3
4
4
8
5
2
4
8
1
7
1
2
0
0
5
31.03.2018
31.03.2017
100000 –
90000 –
80000 –
70000 –
60000 –
50000 –
40000 –
30000 –
20000 –
10000 –
0 –
– – – – – – – – – –
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
E
e
r
u
t
c
u
r
t
s
a
r
f
n
s
e
c
i
v
r
e
S
s
e
c
i
v
r
e
S
s
t
c
e
o
r
P
a
c
i
r
t
c
e
r
e
w
o
P
0
4
2
8
2
5
7
3
0
3
0
0
6
8
1
2
3
5
9
1
s
r
e
h
t
7
4
8
6
7
3
4
6
2
1
4
4
6
2
2
9
6
5
5
7
4
2
1
5
6
6
1
6
5
2
6
6
4
6
3
4
9
2
7
6
O
&
E
a
l
i
l
l
j
l
I
a
t
n
e
m
p
o
e
v
e
D
l
l
y
g
o
o
n
h
c
e
T
&
T
I
i
c
n
a
n
i
F
y
v
a
e
H
Total segment wise Assets as at 31.03.2017: v 197933 crore and as at 31.03.2018: v 230495 crore
31.03.2017
31.03.2018
4
8
3
6
7
1
4
3
4
6
80000 –
70000 –
60000 –
50000 –
e
r
o
r
c
40000 –
v
30000 –
20000 –
10000 –
2
3
9
0
3 4
1
9
3
3
2
6
3
6
7
4
6
5
7
2
8
3
6
4
2
5
1
4
8
7
0
9
5
5
6
3
9
1
1
4
1
2
4
9
8
1
2
8
1
2
6
1
5
0
1
1
3
9
8
3
5
9
6
2
7
9
6
0 –
– – – – – – – – – –
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
E
e
r
u
t
c
u
r
t
s
a
r
f
n
s
e
c
i
v
r
e
S
s
e
c
i
v
r
e
S
s
t
c
e
o
r
P
a
c
i
r
t
c
e
r
e
w
o
P
s
r
e
h
t
O
&
a
E
l
j
l
l
i
l
I
a
t
n
e
m
p
o
e
v
e
D
l
l
y
g
o
o
n
h
c
e
T
&
T
I
i
c
n
a
n
i
F
y
v
a
e
H
Total segment wise Liabilities as at 31.03.2017: v 133747 crore and as at 31.03.2018: v 157861 crore
Total liabilities for Financial Services and Developmental Projects predominantly comprises of
borrowings
43
i p a l
c
M u n i
44
AGM Venue :
Birla Matushri Sabhagar,
19, Marine Lines,
Mumbai - 400 020
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 Third
Annual General Meeting of LARSEN & TOUBRO
LIMITED will be held at Birla Matushri Sabhagar,
19, Marine Lines, Mumbai - 400 020 on Thursday,
August 23, 2018 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, 2018 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, 2018;
2) To declare a dividend on equity shares;
3) To appoint a Director in place of Mr. Subramanian
Sarma (DIN: 00554221), who retires by rotation and
is eligible for re-appointment;
4) To appoint a Director in place of Mrs. Sunita Sharma
(DIN: 02949529), who retires by rotation and is
eligible for re-appointment;
5) To appoint a Director in place of Mr. A.M Naik (DIN:
00001514), who retires by rotation and is eligible for
re-appointment;
6) To appoint a Director in place of Mr. D.K Sen (DIN:
03554707), who retires by rotation and is eligible for
re-appointment;
7) To consider and, if thought fit, to pass, as an
ORDINARY RESOLUTION the following:
“RESOLVED THAT Mr. Hemant Bhargava (DIN:
01922717) who was appointed as a Director in
casual vacancy 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.”
8) To consider and, if thought fit, to pass, as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT approval of the Company be
and is hereby accorded for the appointment and
continuation of Mr. A.M Naik (DIN: 00001514) as a
Non-Executive Director of the Company with effect
from October 1, 2017 who has attained the age of
seventy-five years.”
9) To consider and, if thought fit, to pass, as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT approval of the Company be and
is hereby accorded for payment of remuneration
to Mr. A.M Naik (DIN: 00001514), Non-Executive
Director of the Company, details whereof are
provided in the Explanatory Statement, being
in excess of fifty percent of the total annual
remuneration payable to all Non-Executive Directors.”
10) To consider and, if thought fit, to pass, as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT pursuant to the provisions of
Sections 42, 71 and all other applicable provisions of
the Companies Act, 2013 read with the Companies
(Prospectus and Allotment of Securities) Rules, 2014,
SEBI (Issue and Listing of Debt Securities) Regulations,
2008, SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (including any
statutory modification(s) or re-enactment thereof, for
the time being in force), and subject to the provisions
of the Articles of Association of the Company,
approval of the members be and is hereby accorded
to authorize the Board of Directors of the Company
(including any Committee thereof) to offer or invite
subscriptions for listed/unlisted/secured/unsecured/
redeemable/non-convertible debentures, in one or
more series/tranches/currencies, aggregating up
to R 6000 crore (Rupees Six thousand crore only),
on private placement basis, on such terms and
conditions as the Board of Directors of the Company
may, from time to time, determine and consider
45
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.”
11) To consider and ratify the remuneration payable to
Cost Auditors and for that purpose to pass, as an
ORDINARY RESOLUTION the following:
“RESOLVED THAT pursuant to Section 148 and
other applicable provisions, if any, of the Companies
Act, 2013 and the Companies (Audit and Auditors)
Rules, 2014, the Company hereby ratifies the
remuneration of R 11.75 lakhs (Rupees Eleven lakhs
seventy five thousand only) plus applicable taxes
and out of pocket expenses at actuals for travelling
and boarding/lodging for the financial year ending
March 31, 2019 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
2018-19.”
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
N. HARIHARAN
COMPANY SECRETARY
M.NO – A3471
Mumbai, May 28, 2018
Notes:
[a] The information required to be provided under
the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and the Secretarial
Standards on General Meetings, regarding the
Directors who are proposed to be appointed/
re-appointed and the relative Explanatory Statement
pursuant to Section 102 of the Companies Act, 2013,
in respect of the business under items 7 to 11 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
46
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 Tuesday, August 21, 2018.
[c] The requirement to place the matter relating
to appointment of Auditors for ratification by
Members at every Annual General Meeting has
been done away with vide notification dated May
7, 2018, issued by the Ministry of Corporate Affairs.
Accordingly no resolution is proposed for ratification
of appointment of Auditors, who were appointed
from the conclusion of the 70th Annual General
Meeting till the conclusion of the 75th Annual
General Meeting, in the Annual General Meeting
held on September 9, 2015.
[d] The Register of Members and Transfer Books of the
Company will be closed from Friday, August 17,
2018 to Thursday, August 23, 2018 (both days
inclusive).
[e] 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 Thursday, August 16,
2018, 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.
[f]
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.
[g] All documents referred to in the accompanying
Notice and the Explanatory Statement, if any, 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.
[h] Members/Proxies should bring their attendance slips
duly completed for attending the Meeting.
[i] 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
82
83
84
85
86
87
88
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
22.08.2017
31.03.2017
27.09.2024
Members who have not encashed their dividend
warrants pertaining to the aforesaid years
may approach the Company/its Registrar, for
obtaining payments thereof atleast 20 days
before they are due for transfer to the said
fund.
[j]
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.
[k] Adhering to the various requirements set out in the
Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules,
2016, as amended, the Company has during the
financial year 2017-18 transferred to the IEPF
Authority all shares in respect of which dividend has
remained unpaid or unclaimed for seven consecutive
years or more as on the due date of transfer i.e
October 31, 2017. Details of shares transferred to
IEPF Authority are available on the website of the
Company and the same can be accessed through
the link: http://investors.larsentoubro.com/resources.
aspx. The said details have also been uploaded on the
website of the IEPF Authority and the same can be
accessed through the link: www.iepf.gov.in.
[l] SEBI has decided that securities of listed companies
can be transferred only in dematerialized form with
effect from December 5, 2018. In view of the above
and to avail various benefits of dematerlisation,
members are advised to dematerialize shares held
by them in physical form. Please refer investor FAQ’s
page (Dematerialisation of shares) on our website
www.investors.larsentoubro.com.
[m] 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, Standard 2 of the Secretarial Standards
on General Meetings and Reg. 44 of the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Company is pleased to offer
the facility of voting through electronic means, 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 the venue of the
AGM (remote e-voting) will be provided by Karvy
Computershare Private Limited (Karvy).
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 remote e-voting
is optional for shareholders.
A person whose name is recorded in the register
of members or in the register of beneficial owners
maintained by the depositories as on the cut-off date
of Thursday, August 16, 2018 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 Karvy https://evoting.karvy.com.
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
Monday, August 20, 2018 at 9.00 A.M and ends on
Wednesday, August 22, 2018 at 5.00 P.M. During
this period, members of the Company holding shares
47
either in physical or dematerialised form, as on the
cut-off date of August 16, 2018 may cast their vote
by remote e-voting. The remote e-voting module
shall be disabled by Karvy for voting thereafter.
The Members, whose names appear in the Register
of Members / list of Beneficial Owners as on August
16, 2018, 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 August 16, 2018 may approach the Company/
Karvy for issuance of the User ID and Password for
exercising their right to vote by electronic means.
Members who are already registered with Karvy
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 https://evoting.karvy.com
The Company has appointed Mr. S. N.
Ananthasubramanian, Practicing Company Secretary,
(COP No. 1774) or failing him Mrs. Aparna Gadgil,
Practicing Company Secretary, (COP No. 8430), to
act as the Scrutinizer for conducting the voting and
remote e-voting process in a fair and transparent
manner.
Members are requested to follow the instructions
below to cast their vote through remote e-voting:
A.
In case a Member receives an e-mail from
Karvy (for Members whose e-mail addresses
are registered with the Company/ Depository
Participants):
(i)
Launch internet browser by typing the URL:
https://evoting.karvy.com.
(ii) Enter the login credentials (i.e. User ID
and Password which are mentioned in the
email). Your Folio No./ DP ID-Client ID will
be your User ID. However, if you are already
registered with Karvy for e-voting, you can
use your existing User ID and password for
casting your vote.
(iii) After entering these details appropriately,
Click on “LOGIN”.
(iv) You will now reach password change Menu
wherein you are required to mandatorily
change your password. The new password
shall comprise of minimum 8 characters
with at least one upper case (A-Z), one
48
lower case (a-z), one numeric value (0-9)
and a special character (@,#,$, etc.). The
system will prompt you to change your
password and update your contact details
like mobile number, email ID, etc. on first
login. You may also enter a secret question
and answer of your choice to retrieve your
password in case you forget it. It is strongly
recommended that you do not share your
password with any other person and that
you take utmost care to keep your password
confidential.
(v) You need to login again with the new
credentials.
(vi) On successful login, the system will prompt
you to select the “EVENT” i.e., Larsen &
Toubro Limited.
(vii) On the voting page, enter the number of
shares (which represents the number of
votes) as on the Cut Off date under “FOR/
AGAINST” or alternatively, you may partially
enter any number in “FOR” and partially
in “AGAINST” but the total number in
“FOR/AGAINST” taken together should
not exceed your total shareholding as on
the cut-off date. You may also choose the
option ABSTAIN. If the Member does not
indicate either “FOR” or “AGAINST” it will
be treated as “ABSTAIN” and the shares
held will not be counted under either head.
(viii) Members holding multiple folios/demat
accounts shall choose the voting process
separately for each folios/demat accounts.
(ix) You may then cast your vote by selecting an
appropriate option and click on “Submit”.
(x) A confirmation box will be displayed.
Click “OK” to confirm else “CANCEL” to
modify. Once you confirm, you will not
be allowed to modify your vote. During
the voting period, Members can login any
number of times till they have voted on the
resolution(s).
(xi) 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@karvy.com.
(xii) In case of any queries, please visit Help
and Frequently Asked Questions (FAQs)
section available at Karvy’s website
www.evoting.karvy.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 or requesting physical
copy):
1. User ID and initial password are provided
at the bottom of the Attendance Slip in the
following format:
User ID
-
Password
-
2. Please follow all steps from Sr. No. (i) to Sr.
No. (xi) in (A) above, to cast your 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 remote e-voting shall prevail.
The Scrutinizer will submit his report to the Chairman
after completion of the scrutiny. The result of the
voting on the Resolutions at the Meeting shall be
announced by the Chairman or any other person
authorized by him immediately after the results are
declared.
The results declared alongwith the Scrutinizer’s
report, will be posted on the website of the Company
www.larsentoubro.com and on the website of Karvy
at www.evoting.karvy.com and will be displayed on
the Notice Board of the Company at its Registered
Office as well as Corporate Office immediately after
the declaration of the result by the Chairman or
any person authorised by him in writing and will be
communicated to the Stock Exchanges.
[n] Online Query Module
The Company is pleased to provide the new Online
Query Module to enable the Members to seek
information / clarifications pertaining to the Annual
Report in advance. Members can post their queries
related to this Annual Report by using their secure
login credentials on the e-voting website of Karvy at
https://evoting.karvy.com/.
[o] Web check-in
To facilitate smooth registration / entry at the AGM,
the Company has also provided a web check-in
facility, which would help the Members enter the
AGM hall expeditiously.
The Procedure for web check-in for the AGM is as
follows:
•
•
•
Log in to https://karisma.karvy.com and click on
the AGM Web Check-in link.
Select the Company name, ‘Larsen & Toubro
Limited’.
Enter the security credentials as directed and
click on ‘Submit’.
• After validating the credentials, click on
‘Generate my Attendance Slip’.
•
The Attendance Slip in PDF format shall appear
on the screen. Select the print option for printing
or download the Attendance Slip for future
reference.
[p] Webcast
Your Company is pleased to provide the facility of
live webcast of proceedings of AGM. Members who
are entitled to participate in the AGM can view the
proceeding of AGM by logging on the e-voting
website of Karvy at https://evoting.karvy.com
using their secure login credentials. Members are
encouraged to use this facility of webcast.
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 7 to 11 of this
Notice dated May 28, 2018.
Item No. 7:
On the recommendation of the Nomination &
Remuneration Committee, Mr. Hemant Bhargava (DIN:
01922717) was appointed by the Board of Directors as a
Director in casual vacancy caused due to the resignation
of Mr. Sushobhan Sarker. Pursuant to Section 161(4) of
the Companies Act, 2013 Mr. Hemant Bhargava will hold
office up to the date of the forthcoming Annual General
Meeting. The Company has received a notice in writing
49
from a member under the provisions of Section 160 of
the Companies Act, 2013 proposing the candidature of
Mr. Hemant Bhargava as Director.
Mr. Hemant Bhargava is currently the Managing Director
of Life Insurance Corporation of India (LIC) and has been
nominated by LIC on the Board of the Company.
Mr. Bhargava holds an M.A in Economics and has also
completed his masters in Financial Management. He has
an overall experience of 35 years with LIC where he has
worked in several capacities in Marketing, International
Operations, Joint Ventures etc.
Disclosure as required under Secretarial Standard 2 on
General Meetings is provided as an Annexure to the
Notice.
The Board considers that his association would be of
immense benefit to the Company and it is desirable to
avail services of Mr. Bhargava as a Director. Accordingly,
the Board recommends the resolution in relation to
appointment of Mr. Bhargava as a Director, for the
approval by the shareholders of the Company.
Except Mr. Hemant Bhargava, 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. 7.
Item No. 8 and 9:
Mr. A.M Naik has been associated with Larsen & Toubro
Limited for over five decades. During his tenure as
Executive Chairman he played a key role in the Company’s
rise to its pre-eminent position, and its presence overseas,
boosting employee morale and focusing on delivering
superior value to stakeholders. His term as Executive
Chairman expired on September 30, 2017.
Mr. A. M. Naik is entitled to retirement benefits as per the
policy of the Company.
Mr. A.M Naik, aged 75 years, was appointed as a
Non-Executive Chairman of the Company for a period
of 3 years with effect from October 1, 2017, after his
superannuation as Executive Chairman of the Company.
Mr. A.M. Naik is strongly identified with the growth
of the Company and its contribution to strategic
sectors of Defence, Nuclear Power, Space Research and
Infrastructure. Mr. Naik has been awarded four doctorates
and numerous awards from institutions and industry. He
has also served as the Chairman of IIM Ahmedabad.
The Board of Directors of the Company, on the
recommendation of the Nomination and Remuneration
Committee and taking into account the need for
50
seamless transition of leadership, need for providing
advice, guidance and mentorship to the Company’s
executive management, considering the complexity of the
Company’s business, approved the appointment of Mr.
A.M Naik as Non-Executive Chairman of the Company.
Regulation 17(1A) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015,
effective April 1, 2019, requires companies to
obtain approval of shareholders by passing a special
resolution for appointment or continuation of any
Non-Executive Director who has attained the age of
seventy-five years.
Mr. Naik in the capacity of Non-Executive Chairman, in
addition to sitting fees, will be entitled to remuneration/
benefits as per the following terms and conditions:
1. Commission: Fixed amount of R 5 crore p.a. within
the overall limits approved by the shareholders of the
Company for payment of remuneration to NED’s.
2. Car & Driver, telephone & communication facilities
and club membership.
3. Maintain an office with staff at the Company’s
expense.
4. Reimbursement of medical expenses in accordance
with the policy of the Company.
5. Perquisite value of Company accomodation.
Regulation 17(6)(ca) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, effective
from April 1, 2019, requires companies to obtain approval
of the shareholders by passing of a special resolution,
every year, for payment of remuneration to Non-Executive
Director exceeding fifty percent of the total annual
remuneration payable to all Non-Executive Directors.
Accordingly, shareholders approval is sought for
appointment/continuation of Mr. A.M. Naik as Non-
Executive Chairman. Approval is also sought for payment
of remuneration to Mr. A. M. Naik, Non-Executive
Chairman till the next AGM.
Disclosure as required under Secretarial Standard 2 on
General Meetings is provided as an Annexure to the
Notice.
The Board recommends approval of appointment and
remuneration of Mr. Naik as Non-Executive Director of the
Company, liable to retire by rotation.
Except Mr. Naik being the appointee, none of the
Directors or the Key Managerial Personnel of the
Company and their relatives are concerned or interested
in the resolutions set out at Item No. 8 and 9.
Item No. 10:
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 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 22, 2017, approved issue of
debentures to an amount not exceeding R 6000 crore
in aggregate. The Company has not raised funds under
the said approval. 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.
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. 10.
Item No. 11:
In accordance with the provisions of Section 148 of the
Companies Act, 2013 (“the Act”) and the Companies
(Audit and Auditors) Rules, 2014 (“the Rules”) the
Company is required to appoint a cost auditor to audit
the cost records of the Company, for products and
services, specified under Rules issued in pursuance
to the above section. On the recommendation of the
Audit Committee, the Board of Directors had approved
the appointment of M/s. R. Nanabhoy & Co, Cost
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 2018-19, at a
remuneration of R 11.75 lakhs plus applicable taxes
and out of pocket expenses at actuals for travelling and
boarding/lodging.
M/s. R. Nanabhoy & Co., Cost Accountants, have
furnished certificates regarding their eligibility for
appointment as Cost Auditors of the Company. In
accordance with the provisions of Section 148 of the Act
read with the Rules, the remuneration payable to the
cost auditor has to be ratified by the shareholders of the
Company.
Accordingly, consent of the members is sought for the
aforesaid purpose.
The Directors recommend this resolution for approval of
the shareholders.
None of the Directors and Key Managerial Personnel
of the Company and their relatives are concerned or
interested, in the resolution set out at Item No. 11.
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
N. HARIHARAN
COMPANY SECRETARY
M.No – A3471
The Directors recommend this Resolution for approval of
the Shareholders.
Mumbai, May 28, 2018
The route map for the venue of the Annual General Meeting of the Company is given on page 44 of this Annual Report 2017-18
51
(ANNEXURE TO NOTICE DATED MAY 28, 2018)
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]
Mrs. Sunita Sharma
Mr. A.M Naik
Mr. D.K Sen
Mr. Hemant Bhargava
March 9, 1959
April 1, 2015
June 9, 1942
November 23, 1989
March 19, 1956
October 1, 2015
July 20, 1959
May 28, 2018
Masters Degree in Science
B.E (Mech.)
B.SC Engg. (Civil), MBA
(Finance)
M.A (Economics)
Mr. Subramanian
Sarma
February 4, 1958
August 19, 2015
Masters Degree in
Chemical Engineering
from IIT Bombay
Expertise in managing
large business portfolios
in energy sector.
Vast Experience in
Insurance and Housing
Finance
L&T Hydrocarbon
Engineering Limited
National Stock Exchange
of India Limited
Diverse and vast experience
in General Management,
Technology, Engineering &
Construction
1. Larsen & Toubro Infotech
Limited
2. L&T Technology Services
Limited
3. L&T Realty Limited
4. L&T Welfare Company
Limited
Vast experience in Design
and Engineering, Business
Development, Tendering
and Construction
1. L&T Infrastructure
Engineering Limited
2. L&T Aviation Services
Private Limited
Name of the
Director
Date of Birth
Date of
Appointment on
the Board
Qualifications
Expertise
Directorships
held in
other public
companies
including private
companies which
are subsidiaries
of public
companies
(excluding
foreign
companies)
Vast Experience in
Insurance Sector
1. LIC Pension Fund
Limited
2. LIC HFL Asset
Management
Company Limited
3. LIC HFL Care Homes
Limited
4. LIC Mutual Fund
Trustee Private
Limited
5. Voltas Limited
6.
Infrastructure Leasing
and Financial Services
Limited
7. The Tata Power
Company Limited
Member
Audit Committee
LIC Pension Fund Limited
Memberships/
Chairmanships
of committees
across all
companies
Member
Nomination and
Remuneration
Committee
L&T Hydrocarbon
Engineering Limited
Chairperson
Stakeholders
Relationship
Committee
Larsen & Toubro Limited
Number of
Meetings
attended during
the year
Shareholding of
Non-Executive
Directors
Relationships
between
directors inter-se
6
63150
Nil
3
150*
Nil
* Jointly with Life Insurance Corporation of India
52
Member
Corporate Social
Responsibility
Committee
Larsen & Toubro Limited
Member
Nomination &
Remuneration Committee
Larsen & Toubro Limited
1.
Larsen & Toubro Infotech
2.
Limited
L&T Technology Services
Limited
3.
Corporate Social
Responsibility Committee
L&T Welfare Company Limited
6
5
Not Applicable
424958
Nil
Not Applicable
Nil
90
Nil
Board Report
Dear Members,
The Directors have pleasure in presenting their 73rd
Annual Report and Audited Financial Statements for the
year ended 31st March 2018.
FINANCIAL RESULTS:
Particulars
Profit Before Depreciation,
exceptional items & Tax
Less: Depreciation, amortization,
impairment and obsolescence
Profit before exceptional items and
tax
Add: Exceptional Items
Profit before tax
Less: Provision for tax
2017-18
v crore
2016-17
v crore
7881.31
7079.06
1049.46
1215.19
6831.85
5863.87
430.53
893.97
7262.38
6757.84
1875.08
1304.10
Profit for the period carried to
Balance Sheet
5387.30
5453.74
Add: Balance brought forward
from previous year
Less: Dividend paid during the
previous year (Including
dividend distribution tax)
Add: Gain/(Loss) on
remeasurement of the net
defined benefit plans
Add: Transfer under scheme of
11225.53
7710.27
2278.69
1842.71
2.50
(8.02)
arrangement
15.55
–
Balance available for disposal
(which the Directors
appropriate as follows)
Less: Debenture Redemption
14352.19
11313.28
Reserve
102.18
87.75
Balance to be carried forward
14250.01
11225.53
The Directors recommend payment of final dividend of
R 16 per equity share of R 2/- each on 1,40,13,69,456
shares.
of stock options by the eligible employees under the
Employee Stock Option Schemes.
The shareholders of the Company approved the issue of
bonus shares in the ratio of 1:2 (1 bonus share for every
2 shares held) through postal ballot on 5th July 2017. The
Company accordingly allotted 46,67,64,755 bonus shares
on 15th July 2017.
The Company reduced long-term borrowings during
the year under review by way of repayment of foreign
currency borrowings worth US$ 171 million on scheduled
due dates. Additionally, the Company refinanced USD 470
million of external commercial borrowings while retaining
existing maturities, to take benefit of the prevailing
interest rates in the market. The Company did not raise
any fresh long-term borrowings during FY2017-18.
The Company has not defaulted on any of its dues to the
financial lenders.
CRISIL has assigned AAA (Stable) rating for L&T’s long-
term debt facilities. In addition, ICRA also has assigned
AAA (Stable) rating for certain borrowings of the
Company.
DIVESTMENT OF ELECTRICAL & AUTOMATION
BUSINESS:
Subsequent to the year under review, on 1st May 2018,
the Company has signed, subject to regulatory approvals,
definitive agreements with Schneider Electric, a global
player in energy management and automation for strategic
divestment of its Electrical and Automation (E&A) business
for an all-cash consideration of R 14,000 crore.
The divestment of E&A business is in line with the
Company’s stated intent of unlocking value within the
existing business portfolio to streamline and allocate
capital and management focus for creating long-term
value for our stakeholders. The Company believes that the
partnership with Schneider is win-win for our employees,
business partners and shareholders.
CAPITAL EXPENDITURE:
As at 31st March 2018 the gross property, plant and
equipment, investment property and other intangible
assets including leased assets, stood at R 10,935.39 crore
and the net property, plant and equipment, investment
property and other intangible assets, including leased
assets, at R 7,593.40 crore. Capital Expenditure during the
year amounted to R 1,136.78 crore.
CAPITAL & FINANCE:
DEPOSITS:
During the year under review, the Company allotted
16,38,898 equity shares of R 2/- each upon exercise
The Company has not accepted deposits from the public
falling within the ambit of Section 73 of the Companies
53
Act, 2013. The Company does not have any unclaimed
deposits as of date. All unclaimed deposits have been
transferred to Investor Education & Protection Fund.
in accordance with the procedure available on
www.iepf.gov.in and on submission of such documents as
prescribed under the IEPF Rules.
DEPOSITORY SYSTEM:
As the members are aware, the Company’s shares are
compulsorily tradable in electronic form. As on 31st March
2018, 98.2% of the Company’s total paid up capital
representing 1,37,61,98,681 shares are in dematerialized
form.
SEBI has proposed to prohibit transfer of shares in physical
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.
TRANSFER TO INVESTOR EDUCATION AND
PROTECTION FUND:
The Company sends reminder letters to all shareholders,
whose dividends are unclaimed so as to ensure that they
receive their rightful dues. Efforts are also made by the
Company in co-ordination with its Registrar to locate the
shareholders who have not claimed their dues.
During the year, the Company has transferred a sum of
R 3,24,69,075 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 R 20,41,00,830 as on
March 31, 2018.
Pursuant to SEBI circular dated April 20, 2018, the
Company has sent communications to members whose
dividends are unclaimed requesting them to provide/
update bank details with the RTA/Company, so that
dividends paid by the Company are credited to the
investor’s account on time.
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 has transferred
12,88,543 equity shares of R 2 each (0.09% of total
number of shares) held by 11,756 shareholders (1.25%
of total shareholders) to IEPF. The said shares correspond
to the dividend which had remained unclaimed for a
period of seven consecutive years from the financial year
2009-10. Subsequent to the transfer, the concerned
shareholders can claim the said shares along with the
dividend(s) by making an application to IEPF Authority
The Company sends specific advance communication to
the concerned shareholders at their address registered
with the Company and also publishes notice in news
papers providing the details of the shares due for transfer
and for taking appropriate action. The shareholder/
claimant can file only one consolidated claim in a financial
year as per the IEPF rules. All corporate benefits accruing
on such shares viz. bonus shares, etc. including dividend
shall be credited to IEPF.
SUBSIDIARY / ASSOCIATE / JOINT VENTURE
COMPANIES:
During the year under review, the Company subscribed
to / acquired equity / preference shares in various
subsidiary / joint venture companies. These subsidiaries
include companies in financial services, power, defence
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
L&T Cassidian Limited
L&T Finance Holdings Limited
L&T Metro Rail (Hyderabad)
Limited
L&T MBDA Missile Systems
Limited
L&T Uttaranchal Hydropower
Limited
L&T Special Steels & Heavy
Forgings Private Limited
L&T Shipbuilding Limited
Type of
Shares
Equity
Equity
Equity
Equity
Preference
Shares
Preference
Shares
Preference
Shares
No. of shares
13,000
10,78,10,899
14,47,84,161
25,500
18,98,00,000
47,50,80,000
61,83,29,988
B) Equity shares sold/transferred during the year:
Name of the Company
EWAC Alloys Limited (Note 1)
L&T Cutting Tools Limited (Note 2)
L&T Technology Services Limited (Note 3)
Larsen & Toubro Infotech Limited (Note 3)
L&T Devihalli Hassan Tollway Limited
L&T Krishnagiri Walajahpet Tollway Limited
Number of
shares
8,29,440
68,000
4,68,292
10,56,363
100
2,600
Note:
1. The Company has sold its entire stake in EWAC Alloys
Limited, a wholly owned subsidiary, to ESAB Holdings
Limited.
54
2. The Company has sold its entire stake in L&T Cutting
Tools Limited, a wholly owned subsidiary, to IMC
International Metalworking Companies B. V.
3. The Company has sold shares of L&T Technology
Services Limited and Larsen & Toubro Infotech
Limited in the open market towards partly meeting
its mandatory obligation to reduce promoter
shareholding in these companies.
C) Companies merged / demerged during the year:
Spectrum Infotech Private Limited, a wholly owned
subsidiary of the Company was merged with the
Company. The Scheme of Amalgamation was approved
by National Company Law Tribunal, Mumbai bench, vide
order dated February 21, 2018, and by National Company
Law Tribunal, Bangalore bench, vide order dated March
27, 2018. Appointed date was April 1, 2017 and effective
date was May 10, 2018.
D) Companies Struck off:
provided as required under section 186 of the Companies
Act, 2013 and Regulation 34(3) and Schedule V of the
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 2017-18 and estimated transactions for FY
2018-19.
During the year under review, the following companies
applied to the Ministry of Corporate Affairs for strike off
under the provisions of Companies Act, 2013:
There were no materially significant related party
transactions that may have conflict with the interest of the
Company.
Name of the Company
L&T Cassidian Limited
Seawoods Retail Private Limited
Seawoods Realty Private Limited
E)
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
and their contribution to the overall performance of the
Company is provided on pages 463 to 472 of this Annual
Report.
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.
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
STATE OF COMPANY AFFAIRS:
The total income for the financial year under review
was R 76,496 crore as against R 68,216 crore for the
previous financial year registering an increase of 12%.
The profit before tax from continuing operations including
exceptional items was R 7,262 crore for the financial year
under review as against R 6,758 crore for the previous
financial year, registering an increase of 7%. The profit
after tax from continuing operations including exceptional
items was R 5,387 crore for the financial year under review
as against R 5,454 crore for the previous financial year,
registering a decrease of 1%.
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 R 16
(800%) per equity share of R 2/- each (previous year R 14)
on the share capital amounting to approx. R 2,600 crore
(including DDT amounting to R 358 crore).
The Dividend is based upon the parameters mentioned
in the Dividend Distribution Policy approved by the
Board of Directors of the Company which is in line with
regulation 43A of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015. The Policy is annexed as
Annexure ‘G’ forming a part of this Board Report and also
55
uploaded on the Company’s website at http://investors.
larsentoubro.com/Listing-Compliance.aspx.
2014 are given in Annexure ‘C’ forming part of this Board
Report.
MATERIAL CHANGES AND COMMITMENTS AFFECTING
THE FINANCIAL POSITION OF THE COMPANY,
BETWEEN THE END OF THE FINANCIAL YEAR AND THE
DATE OF THE REPORT:
Other than as stated elsewhere in this report, there are no
material changes and commitments affecting the financial
position of the Company between the end of the current
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:
The Risk Management Committee comprises of
Mr. S. N. Subrahmanyan, Mr. R. Shankar Raman and
Mr. Subramanian Sarma. Mr. S. N. Subrahmanyan is the
Chairman of the Committee.
DETAILS OF DIRECTORS AND KEY MANAGERIAL
PERSONNEL APPOINTED/ RESIGNED DURING THE
YEAR:
Mr. Sushobhan Sarker, nominee of Life Insurance
Corporation of India, resigned as Director of the Company
on 2nd May, 2018. The Board places on record its
appreciation of the contribution by Mr. Sarker as Director
of the Company.
The Board has appointed Mr. Hemant Bhargava as a
Director in the casual vacancy pursuant to the resignation
of Mr. Sushobhan Sarker with effect from 28th May 2018.
Mr. Bhargava is the nominee of Life Insurance Corporation
of India. As per the provisions of Section 161(4) of the
Companies Act, 2013, Mr. Bhargava will hold office till the
ensuing AGM and is eligible for appointment.
Mr. Subramanian Sarma, Mrs. Sunita Sharma,
Mr. A.M Naik and Mr. D. K. Sen retire by rotation at the
ensuing AGM and being eligible offer themselves for
re-appointment.
The notice convening the AGM includes the proposal for
appointment / re-appointment of Directors.
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.
Special resolutions for continuation of Mr. A. M. Naik as
a Non-Executive Director, who has attained the age of
75 years, and for payment of remuneration to him which
exceeds 50% of the total remuneration payable to all
Non-Executive Directors taken together, forms part of the
Notice being sent to the shareholders.
A detailed note on risk management is given under
financial review section of the Management Discussion
and Analysis on pages 230 to 232 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. Mr. Vikram Singh Mehta is the Chairman of
the Committee.
The CSR policy framework is available on its website
http://investors.larsentoubro.com/Listing-Compliance.aspx.
A brief note regarding the Company’s initiatives with
respect to CSR is given in Annexure ‘B’ - Report on
Corporate Governance forming part of this Board Report.
Please refer to Page 80 of this Annual Report.
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,
The terms and conditions of appointment of the
Independent Directors are in compliance with the
provisions of the Companies Act, 2013 and are placed on
the website of the Company http://investors.larsentoubro.
com/Listing-Compliance.aspx.
The Company has also disclosed on its website http://
investors.larsentoubro.com/Listing-Compliance.aspx details
of the familiarization programs 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 70 and 71 of this
Annual Report.
56
AUDIT COMMITTEE:
The Company has in place an Audit Committee in terms
of the requirements of the Companies Act, 2013 read
with the rules made thereunder and Regulation 18 of
the SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015. The details relating to the same are
given in Annexure ‘B’ - Report on Corporate Governance
forming part of this Board Report. Members are requested
to refer to pages 73 to 75 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 this Board Report. Members
are requested to refer to pages 75 to 79 of this Annual
Report.
The Committee has formulated a policy on
Directors’ 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. Nomination and Remuneration policy is
provided as Annexure ’H’ forming part of this Board
Report and also disclosed on the Company’s website at
http://investors.larsentoubro.com/Listing-Compliance.aspx.
The Committee has also formulated a separate policy on
Board Diversity.
DECLARATION OF INDEPENDENCE:
The Company has received Declarations of Independence
as stipulated under Section 149(7) of the Companies
Act, 2013 from Independent Directors confirming
that he/she is not disqualified from appointing/
continuing as Independent Director. The same are
also displayed on the website of the Company
http://investors.larsentoubro.com/Listing-Compliance.aspx.
The Independent Directors have complied with the Code
for Independent Directors prescribed in Schedule IV to the
Companies Act, 2013.
EXTRACT OF ANNUAL RETURN:
As per the provisions of Section 92(3) of the Companies
Act, 2013, an extract of 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 31st
March 2018, the Board is of the opinion that the Company
has sound IFC commensurate with the nature and size
of its business operations and operating effectively and
no material weakness exists. The Company has a process
in place to continuously monitor the same and identify
gaps, if any, and implement new and/or improved controls
wherever the effect of such gaps would have a material
effect on the Company’s operations.
PERFORMANCE EVALUATION OF THE BOARD, ITS
COMMITTEES, DIRECTORS AND CHAIRMAN:
The Nomination & 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
57
Directors responded through a structured questionnaire
giving feedback about the performance of the Board, its
Committees, Individual directors and the Chairman.
For the year under review, the questionnaire was modified
substantially, based on the comments and suggestions
received from Independent Directors. During the previous
year(s) an external consultant was engaged to receive the
responses of the Directors and consolidate/ analyze the
responses. Based on the experience gained, during the
current year, the same external consultant’s IT platform
was used from initiation and till conclusion of the entire
board evaluation process. This ensured that the process
was transparent and independent of involvement of
the Management or the Company’s IT system. This has
enabled unbiased feedback.
The Board Performance Evaluation inputs, including areas
of improvement, for the Directors, Board processes and
related issues for enhanced Board effectiveness were
discussed in the meeting of the Independent Directors
held on April 5, 2018 and in the subsequent Meetings of
Nomination and Remuneration Committee and the Board.
DISCLOSURE OF REMUNERATION:
The details of remuneration as required to be disclosed
under the Companies Act, 2013 and the rules made
thereunder, are given in Annexure ‘D’ forming part of this
Board report.
The 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 ‘I’ 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 at the Registered
Office of the Company. None of the employees listed
in the said Annexure is related to any Director of the
Company.
This has been widely disseminated. During the year two
complaints were received under the Act which have been
investigated and disposed off after complying with due
process.
Awareness workshops/training programmes are conducted
across the Company to sensitize employees to uphold the
dignity of their colleagues at work place specially with
respect to prevention of sexual harassment.
OTHER DISCLOSURES:
zz
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
Benefit) 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 also 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.
Integrated Reporting: Pursuant to SEBI Circular
on Integrated Reporting, the Company shall be
voluntarily complying with the requirements
of the Integrated Reporting Framework and
shall release its integrated report on its website
www.larsentoubro.com.
zz
zz
COMPLIANCE WITH SECRETARIAL STANDARDS ON
BOARD AND GENERAL MEETINGS:
zz
The Company has complied with Secretarial Standards
issued by the Institute of Company Secretaries of India on
Board Meetings and General Meetings.
Statutory Compliance: The Company complies with
all applicable laws and regulations, pays applicable
taxes on time, takes care of all its stakeholders,
ensures statutory CSR spend and undertakes
sustainable activities.
PROTECTION OF WOMEN AT WORKPLACE:
VIGIL MECHANISM:
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 (‘the Act’).
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.
58
The Company has a Whistle-blower Policy in place since
2004 to encourage and facilitate employees to report
concerns about unethical behaviour, actual/ suspected
frauds and violation of Company’s Code of Conduct
or Ethics Policy. The Policy has been suitably modified
to meet the requirements of Vigil Mechanism under
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.
Also see pages 81 and 82 forming part of Annexure ‘B’ of
this Board Report.
BUSINESS RESPONSIBILITY REPORTING:
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 38).
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.
SECRETARIAL AUDIT REPORT:
The Secretarial Audit Report issued by M/s. S. N.
Ananthasubramanian & Co., Company Secretaries is
attached as Annexure ‘E’ forming part of this Board
Report.
The Secretarial Auditor’s report to the shareholders does
not contain any qualification or reservation.
AUDITORS:
In view of the mandatory rotation of auditors’ requirement
and in accordance with the provisions of Companies Act,
2013, M/s. Deloitte Haskins & Sells LLP were appointed as
Statutory Auditors for a period of 5 continuous years from
the conclusion of 70th Annual General Meeting (AGM) till
the conclusion of 75th Annual General Meeting of the
Company.
The Company has been one of the first engineering and
construction companies in India to publish its report
on Corporate Sustainability. The Sustainability Report
encompasses areas such as Corporate Governance,
Stakeholder Engagement, People Performance,
Environment Performance and Social Performance. Aspects
relating to human rights & labour practices, employee
development, occupational health and safety culture,
supply chain management, environmental management,
development of green products and services portfolio,
initiatives with respect to energy, renewable energy, water,
air emission, etc. are covered in the Sustainability Report.
The requirement to place the matter relating to
appointment of Auditor for ratification by members at
every AGM is done away with vide notification dated
May 7, 2018 issued by Ministry of Corporate Affairs,
New Delhi. Accordingly, no resolution is proposed for
ratification of appointment of Auditors, who were
appointed in the AGM held on September 9, 2015.
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 detailed Corporate Sustainability Report for 2016-17
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.
CONSOLIDATED FINANCIAL STATEMENTS:
The Auditors have also furnished a declaration confirming
their independence as well as their arm’s length
relationship with the Company as well as declared
that they have not taken up any prohibited non-audit
assignments for the Company.
The Audit Committee reviews the independence and
objectivity of the Auditors and the effectiveness of the
Audit process.
The Auditors attend the Annual General Meeting of the
Company.
Your Directors have pleasure in attaching the Consolidated
Financial Statements pursuant to Section 129(3) of
Also see pages 82 and 83 forming part of Annexure ‘B’ of
this Board Report.
59
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.
COST AUDITORS:
Pursuant to the provisions of Section 148 of the
Companies Act, 2013 and as per the Companies (Cost
Records and Audit) Rules, 2014 and amendments
thereof, the Board, on the recommendation of the Audit
Committee, at its meeting held on 28th May 2018, has
approved the appointment of M/s R. Nanabhoy & Co.,
Cost Accountants as the Cost Auditors for the Company
for the financial year ending 31st March, 2019 at a
remuneration of R 11.75 lakhs.
The Report of the Cost Auditors for the financial year
ended 31st March 2018 is under finalization and shall
be filed with the Ministry of Corporate Affairs within the
prescribed period.
A proposal for ratification of remuneration of the Cost
Auditor for the financial year 2018-19 is placed before the
shareholders.
ACKNOWLEDGEMENT
Your Directors take this opportunity to thank the
customers, supply chain partners, employees, Financial
Institutions, Banks, Central and State Government
authorities, Regulatory authorities, Stock Exchanges and all
the various stakeholders for their continued co-operation
and support to the Company. Your Directors also wish to
record their appreciation for the continued co-operation
and support received from the Joint Venture partners /
Associates.
For and on behalf of the Board
A. M. Naik
Group Chairman
(DIN: 00001514)
Date : 28th May 2018
Place : Mumbai
60
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:
zz
zz
Transformer made off through proper utilization
as per load and saving of no load losses of
transformer
Installation of Occupancy Sensors and time
switches with switching mechanism for Shop
Offices ACs and Lights at VHEW
(i) Steps taken or impact on conservation of energy:
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Decentralizing Air Compressor System at
Kansbahal Works
Deployed power reduction tool in all Desktop’s
and Laptop’s in Vadodara and at all project sites
Installing censors in welding machines to identify
consumption of electricity
Vaporization of liquefied LPG from cylinders in
galvanizing plant
Replacement of the electrical heating coil
vapourizer typically used with heater less hot
water vapourizer in TLT factory
Deployment of bucket crushers to recycle the
excavated boulders and rocks for re-use as
aggregates in concrete production
Implemented eco-friendly direct heating system
instead of Thermic fluid heating system and
reduced the LPG consumption
Introduced the forced natural Evaporator for
treating the RO reject water and achieved Zero
discharge
Implementation of Cogged belt drive instead
of V belt in Line 2 Dust collection system which
reduced the speed loss and pulley modified which
reduced the power cost
Replacement of conventional MH Lamps and
fluorescent tube lights by LED lamps in working
areas at office and projects as well as for street
lights
Use of HF Generator Auto ON/OFF system
implemented at Hazira
Change in Big Rolling Machine Pumps operation
sequence and switched off 3 pumps during
auxiliary operation
zz
Use of Electrical Preheating instead of NG
Preheating by temp control panels at Hazira
Identification of Compressed air Leaks through
Ultrasonic Leak detection system and arrest them
in various shops at VHEW
Energy saving in Air conditioning by setting the
temperature at 26 degree Celsius and Magnetic
resonators were installed at Heat treatment
Furnace to increase fluidization of NG gas at
Hazira
Surrendering excess electricity contract demand
of process for Powai and reduction from
7000KVA to 4990KVA
Up-gradation of Chuck motor in Facing lathe and
Ravensberg machine at Powai by providing VFD
Drives
Introduction of Auto ON-OFF Timer for streetlight
Operation as per Day Light and switching off
basement parking lights and ventilation fan
during weekends
Installed advanced zinc recovery system yielding
much higher reusable zinc from zinc ash in the
TLT factories
zz
zz
zz
zz
zz
zz
Use of Flood light LED and power efficient Metal
Halide lamps instead of Halogen in campuses
zz
Retrofitting of LED fixtures in place of CFL Fixtures
zz
zz
zz
zz
zz
zz
Conducting “Save Electricity” campaign
conducted on campus
Installation of motion sensors at floor areas to
reduce the overall electricity consumption
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
Remote monitoring of Generator sets for
reducing the idling time
Implemented hygienic handling of digitized fuel
browser
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zz
Dedicated team for monitoring the lighting
system and staff trained for preventing excessive
usage of power at Steel Service Center,
Pudupakkam
zz
zz
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
zz
Initiative has been taken for replacement of Air
Cooled Chiller with Water Cooled Chiller.
(ii) Steps taken by the Company for utilizing
alternate sources of energy:
zz
zz
zz
zz
zz
Shift towards usage of windmill power in the
place of State Electricity Board at Kanchipuram
factory
Use of heat of last charge in furnace by installing
plate rolling process flow improvement for KNPC
Al-zour
Use of local heat treatment by PID controller
based system
Implementation of NUB welding by GMAW
process to reduce weld deposition
Installation of induction bending machine at
Hazira
zz
Installing Solar panels on Rooftop
zz
Solar Panels installed at project sites
zz
Power generation through Solar Roof top PV
installation. (Campus all building roof top has
covered).
(iii) Capital investment on energy conservation
equipments:
zz
Energy conservation in Air handling units
zz
zz
zz
zz
zz
To replace old welding machines with new
machines with inverter technology to reduce no
load loss and overall consumption
Use of 250 kVA UPS for furnace to reduce diesel
consumption of DG set for uninterrupted power
supply
Replacement of existing 400W MH lamps with
200W LED lamps for highbay lighting in HE East
& West shops
Energy conservation through entering into LOI
with Tata Power Trading Company for 10 MW
Wind Power Supply through Open Access
Use of grid supply for LSR to replace DG set
hiring and running cost thereby saving diesel
consumption
zz
Installation of PFS Furnace Automation at Hazira.
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:
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Installed solar-based pump system instead of
conventional pumps in a solar project site
Developmental studies undertaken on special
conventional and geo-polymer concrete mixes for
3D concrete printing
Developmental studies done on coloured asphalt
concrete mixes using synthetic binders for parking
bays, parks, internal roads, pedestrian bays etc.
Conducted design and developmental studies on
3D robot machine for construction industry and
in-house mobile Concrete Maturity equipment
Conducted studies on influence of pozzolanic
materials on thermal hydration applicable for
mass concrete foundations
Conducted laboratory scale model studies
through IOT techniques to monitor the remote
functioning of cooling towers pumps, quantity
of flow and temperature of chilled water, and
humidity and also solar panels power projects
– ambient temperature, radiation, panel axis
position
Designed and developed concrete mixes using
recycled concrete aggregates
Demonstrated waterless automatic module
cleaning system in rooftop solar installations in
our campuses
Installed solar power system with bifacial PV
modules and tracking technology for increased
power generation
Installed GPS tracking in conveyance vehicles and
trucks to optimize travel distance, travel time and
idling time
zz Manufacturing latest technology products in
material handling equipment namely Tandem
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Tippler, Zinc ore Beneficiation, Sand Separation by
air classifier, models of semi-mobile skid mounted
crushing unit (with Feeder Breaker, Roll Crusher &
Impactor)
Designed and commissioned single flight pipe
conveyors of Diameter 425 mm, regenerative
conveyors, roll improved with segmented design,
maintenance vehicle above the Pipe Conveyor,
improved segmented design of roll and surface
miner
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
Development of various new products in the
power distribution and motor control sector
namely were higher rating Air break & Vacuum
contactors, DY125U 4 Pole MCCB, Electronic trip
Unit - SR 18G with enhanced features, S-Line
Copper Busways and S-Line Aluminum Busways
for lower (250A) ratings, Ti-APFC panel as per
IEC61291, APFC relay
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 Energy Meters, 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
Development of different communication
modules based on communication technologies
in our 1 Ph & 3 Ph Whole Current & Smart Meters
Introduction of Outdoor Cabinets for Telecom
Segment, Utilities segment were Feeder Pillars
& Front RMU with FRTU, Sub-Main Distribution
Board (SMDB), local RMU manufacturing & new
variant to its GIS (Gas insulated switchgear)
Family
Introduction of FPGA (Field programmable gate
array devices) in Drive Development, design
approach for product development using target
link from dSpace
Introduction of 72”Hydraulic Tire Curing Press,
Guide Light System, Ply Inflator, Bladder Painting
Machine, Lube Sprayer, Flap Press, Reel Winder,
zz
zz
zz
zz
zz
zz
zz
zz
zz
Mixing Mills, Mould Pre Heater, Parallel un-loader
and Rack & Pinion unloader
zz
Introduction of 10-19” Two Wheeler Tire Building
Machine, 25” OTR Tire Building Machine, Tyre
Inspection Machine, GT Robot and Higher stroke
Integrated BCM with bottom SMO
zz
Implemented Mobile based Inspections and BIM -
3D Modelling software for projects
zz
Deployment of analytics for Lead enhancement
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Development of portable plate load test set up
for quick site exploration studies to determine the
bearing capacity of soil stratum
Production of in-house Rapid Chloride
Penetration Test (RCPT) apparatus to determine
the durability of concrete and supply to project
sites
Development of in-house Energy Absorption
testing set up to evaluate the adequacy of fibre
reinforced shotcrete for tunnels
Implementation of MIG welding in place of
SMAW welding
Development & implementation of Robotic
GMAW for Reactor Internals (Distribution &
catalyst supporting beams)
Installation of diffusers and blowers in
wastewater treatment plants instead of
conventional surface aerators
Use of photoelectric sensors for lighting control
in Integrated Urban utilities Project / Industrial
Township Project
Establishment of Robotic GMAW for FCCU
Cyclones & Nozzle Joints
Development of Tube to tube welding special
purpose machine for ATVP Steam Generator
Execution of Stellite#6 hard facing weld overlay
(multi-layer) for Valero Canada Swirl tube
assemblies
Implementation of online weld consumables
baking/holding oven temperature monitoring
& inventory management system (IoT) and
online system for monitoring of critical machine
utilization
zz
Development of ATVP SG Titanium Tube coiling
special purpose machine
63
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Process development for making triangular holes
on baffles of Once through Reactor
Development of IoT based Saw station and IR
heating systems for shell circ-seam welding and
IoT based shell ESSC station
Development on new station for semi-automatic
GMAW overlay of nub and TSR and special
welding system for skin TC pad buttering
Development of HPT cycle automation through
scada based system for P80 project
Development of In-situ system for RTJ groove
for IOCL exchangers and control mechanism for
dished end pressing
Development of Weld Overlay by Cold Metal
Transfer (CMT) process and Robotic Dished End
Liner Groove buttering for Urea Equipment
Indigenization for Carbon Steel SAW consumables
and Welding Technology Development
Development of Orbital TIG Welding of Maraging
Steels for Defence Applications
Establishment of Laser Projection Technology (LPT)
for the setup of internal and external components
on shells and Laser Scanning for the virtual set up
of two mating parts in shells/sections
Establishment of Reverse Engineering by the laser
scanning technique
Digitization of NABL laboratory quality
management system
Application of recycled materials and geo-
polymer concrete in roads and building structures
Implementation of innovative pavement
solutions and performance evaluation studies at
Kanchipuram campus
Conducted studies on sprayed fire-resistive
material applied to structural members, suitability
of proximity switches used in nuclear reactors,
influence of aging asphalt on resilient modulus of
asphalt concrete, influence of polymer modified
asphalt binders on force ductility, 3D concrete
applications, maturity models in concrete, fatigue
behavior welded steel members, lightweight form
work applications, continuous flight auger pile
and industrial treated waste water processing
methods
zz
Development of pods using light weight concrete
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Development of interface constants for rock
masses and shotcrete
Developed evaluation methods for geosynthetic
products
Development of automatic ring collecting system
in lower Dia machine
Installation of solar lighting system in raw
material yard
Installation of the rotary limit switch and
additional safety device (emergency control
Device) in EOT Crane
Purchase of Scrap Strengthening Machine to
reduce the Lower dia Scrap
Develop the Offcut area Dia wise to utilize the
proper utilization of offcut & reduce the Scrap
Percentage
Indigenously implemented the M75 Grade Self-
Compacting Concrete for the first time in India in
Pylons of Extradosed Bridge – Barapullah
Implemented ‘Base Grouting’ and Strand Jack
Erection Methodology -MTHL
Successful completion of Temperature controlled
concrete (M45 Grade) of Single largest pour
7232Cum < 23ºC within 94 hrs. first time in
DAE and achieved the all quality & specification
requirements also used the 750 MT of ice from
inside & outside meeting the stringent chloride
requirements – Kalpakkam
Installation of PLC controlled “Auto Mode” Plant
and Office Lighting
Tagging of pre-cast segments for easier
identification and later usage
Use of RFID and LoRA technologies to track
worker to measure efficiency and productivity
Installation of fuel meters and other sensors
to track vehicles and measure their idle time,
working time and productivity
Installation of Fuel sensors to monitor the fuel
consumption and optimize its usage
Installation of grid power system to save
electricity
Barrette Pile Reinforcement Embedment Depth
inside the Base Slab for Thousand Light & LIC
under ground station
64
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Biological Nutrient Removal processes are
recommended by recent guidelines of CPHEEO to
prevent excess plant nutrients from wastewater
Inclusion of polyelectrolyte in flocculation zone
of High Rate Solid Contact Clarifier (HRSCC)
in Sagardighi PWS 2 which combines mixing,
coagulation, flocculation, liquid/solid separation,
sludge recirculation/ withdrawal in one unit and
effective floc formation
Implementation of Ultrafiltration system which
is capable of producing a total filtrate flow and
Reverse Osmosis (RO) & Mixed Bed (MB) system in
Sagardighi PWS 2
Installed new Reverse Osmosis plant and reusing
the STP/ETP water which reduced the paint shop
water consumption
Developed the 16mm Dia - 240mm circular rings
to Ford Site, reused from Scrap bar & end pits
to 8mm - 110mm Hooks to Residential Project
– CNCL
Introduced the rejection rework manual
strengthening bench and the Laminated Colour
Tag for Identification purpose
Designed and commissioned the Smart Pole for
Vishakhapatnam Smart City with CCTV Cameras,
Public Address System, Emergency Call Boxes,
Wi-Fi Access Points and Environmental Sensors
Developed an integrated state of the art ICCC
Platform solution with the Smart Elements for
Pune Smart City
Successfully integrated the Emergency response
System with the existing Mumbai CCTV
Surveillance System
Developed and tested an indigenous solution for
“Smart Bin Management” using advanced video
analytics on CCTV camera to alert the crew for
waste collection
Introduction of RTSP (Real Time Streaming
Protocol) feature on the Devices to get Video and
Data Streams for identifying vehicles travelling
over the legal speed limit from multiple cameras
Creation of “ProdoSpec” application to optimize
the activities of operations, supply chain,
technical team involved in choosing a product/
solution that fits to the project requirement
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Implementation of Reinforced Soil Wall System in
CTP 2 in the DFCC Project
Completed construction of 71m high Reinforced
Soil Slope System at Kannur International Airport
Usage of high quality and high performance
anti-stripping agent in bituminous layers
Implementation of Concrete Infilled Geocell
System for Lined Drains in ULEP
Utilization of Drainage Geocomposite as an
alternative to conventional filter media in
Retaining Systems
Usage of flexible pavement overlay design using
data from Falling Weight Deflectometer (FWD)
Implementation of BIM for ongoing projects –
Dholera Smart City, Auric Bidkin Industrial Area,
BIAL and Mauritius Metro Express Project
Inclusion of 3D-Biaxial Geogrids in Railway
Embankment for blanket layer reduction with the
approval of RDSO
Application of Finite Element Analysis (FEA) for
in-house design of Cantilever Assembly with
capacity to supply traction power for running
double stack containers for WDFC projects
Zinc ore Beneficiation process technology
has been fully absorbed & indigenized while
executing the project for Mine 3
Tandem Tippler technology has been fully
absorbed
Development of various models of semi-mobile
skid mounted crushing unit (with Feeder Breaker,
Roll Crusher & Impactor) to meet specific
applications for crushing
Indigenized the technology for Sand separation
by air classifier
Development of Mobile Crushing Plant with Roll
Crusher
Designed and manufactured high capacity (8400
TPH) and bigger Boom Length (58m) Stacker cum
Reclaimer
In-house designed and commissioned the Single
Flight Pipe Conveyors of Dia 425 mm with a
length of 2.56 km
65
zz
In-house designed and indigenized Maintenance
Vehicle above the Pipe Conveyor which reduces
the requirement of walkway galleries
zz
Improvement in the design of roll for better
service life of Roll Crusher.
(ii) Benefits derived like product improvement,
cost reduction, product development or import
substitution:
zz Mitigating to 3D systems from 2D Grade Control
Systems in phased manner
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Received an award for “Use of High Volume Fly
Ash Pre-Stressed Concrete in Nuclear Reactor
Dome Construction” to the Main Plant Package
of Kakrapar Nuclear Power Project 3 & 4 from
Indian Concrete Institute under the category of
“Innovative application of special concrete”
Innovation initiative with technological university
in treatment process design for the development
of Sequential Batch Biofilm Reactor (SBBR) for
municipal wastewater treatment
Fuel distribution wastage avoided by
implementing hygienic handling of digitized fuel
browser
Implementation of mobile app based solution
resulted in savings in usage of paper
Installation of Single Stage Centrifuge for low
power consumption factor, which yields a saving
of 10% power for Blower Unit of Larger Capacity
Wastewater Treatment Plants
Obtained patent for 20 years by IP-India for
Concrete Heavy Duty Rheometer was granted
patent
Developed a new resurfacing technology
for bridge decks with light weight concrete,
geotextiles and asphalt concrete
Implemented optimized pavement overlay
solution by LTCRTC and optimization of
conventional concrete mixes for foundation
structures for various PTD project sites
Introduction of Fixed-Bed Biofilm Activated
Sludge in Bhatpara wastewater Treatment Plant
Introduction of grid tied solar plant which powers
the production plants ie. batching plants and
crushers
66
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Improving the aesthetics of the roads and
implementation advanced new material
technologies
Development of in-house RCPT apparatus has
been robust and eco-friendly
Application of advanced shotcrete technology in
tunnel construction
Development of Eco-friendly concrete mixes with
waste materials
Improved cycle time due to Short Line Mould
Precast segment production
Rebar lifter usage over manual handling has
reduced Work at Height
New models of High Proportion and systems
Concrete mix design were introduced - High
Performance Concrete
The 1st batch of Bridge Engineering programme
was successfully completed by HCI IC in
association with VIT Chennai
Economical and cost effective piles in solar
projects which saves time
Cost Optimization by reinforcing Soil Wall system
in economical by 10-15% instead of conventional
RCC retaining walls
Usage of high performance anti-stripping agents
resulted into better Long-term Durability of
Flexible Pavement and high resistance to moisture
Usage of geocell system for lined drain in lieu
of reinforced concrete lined drain/stone pitching
and drainage geocomposite in retaining wall
application has been simple, faster to execute
and cost effective
Bigger model of Surface Miner for higher
productivity and cost reduction
Usage of FWD in overlay design provides a
realistic assessment of the strength of existing
pavement and thereby provides appropriate
overlay design resulting in long-term performance
of pavement
zz
In-house designed, developed and commissioned
the regenerative Conveyors which produces
energy on downward slope
(iii) Information regarding technology imported
during the last 3 years:
S.
No.
Technology
Imported
Flue Gas
Desulphuri-
zation
Year
of
Import
2016
a)
b)
UV
disinfection
system
2015
2016
2017
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.
c)
Vortex Grit
Removal
in Sewage
Treatment
Plant
2015
Absorbed successfully in the
2 MLD STP at President’s
Estate, New Delhi.
2016 Works for the 5 new
pumping stations of
Greater Colombo project is
in progress.
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.
S.
No.
Technology
Imported
Year
of
Import
2017
d)
Constructed
Wetland
2015
2017
e)
MBR
(Membrane
Bioreactor)
Technology
2018
f)
Magnetic
Field
Analysis for
Under-
ground
220kV
Power
cables inside
Power Duct
Status of absorption &
reasons for
non-absorption, if any
Fully absorbed this
technology and are
implementing the same
with other projects like 318
MLD WWTP at Coronation
Pillar, DJB – Cluster STPs.
Absorbed successfully in
2 MLD STP at President
Estate. Ready for complete
in-house implementation in
future projects as required.
Constructed Wetland
is a controlled natural
wastewater treatment
system where physical,
biological processes
polishes the secondary
treated wastewater to
remove fine solid content in
a single unit. Waste water
flows horizontally through
the roots of Phragmites and
Cattail (Typha) plants in the
process.
Implementing MBR
Technology for 11 MLD
STP and 13 MLD CETP
for BIDKIN Infrastructural
Development Project.
Major advantage of MBR
Technology includes the
production of high quality
effluent suited to be
discharged to the surface
water or to be utilized for
urban irrigation. Further, it
also offers small footprint,
easy retrofit and upgrade of
old wastewater treatment
plants.
Electromagnetic Field
for Underground Cables
inside Power Duct with
different level depths for
Amaravati Projects has been
done and analyzed which
henceforth concluded with
a satisfactory result, Field
Strength being under the
acceptable electromagnetic
pollution limit set to protect
health of the public.
67
S.
No.
Technology
Imported
Year
of
Import
Status of absorption &
reasons for
non-absorption, if any
(iv) Expenditure incurred on Research &
Development:
v crore
2017-18
6.80
187.86
194.66
0.26%
2017
Indigenized Rubber
Processing Machines by
designing, developing
specifications and adapting
to International customers’
needs.
Capital
Recurring
Total
Total R&D expenditure as a percentage
of total turnover
[C] FOREIGN EXCHANGE EARNINGS AND OUTGO:
2017
Enhancing the
demonstration capabilities
for the civil components
viz., track, embankment,
bridges, drain, retaining
wall, etc.
Foreign Exchange earned
Foreign Exchange saved / deemed
exports
Total
Foreign Exchange used
v crore
2017-18
16350.80
1348.48
17699.28
15277.89
g)
h)
Unistage
Tire Building
machine
passenger-
12-17 and
Electrical
Platen
Heating
System
3D Virtual
Reality
Model in
CTP-14
68
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 critical for enhancing and retaining investor trust
and your Company always seeks to ensure that its performance goals are met accordingly. The Company has
established systems and procedures to ensure that its Board of Directors is well informed and well equipped to
fulfill its overall responsibilities and to provide management with the strategic direction needed to create long term
shareholders value. The Company has adopted many ethical and transparent governance practices even before they
were mandated by law. The Company has always worked towards building trust with shareholders, employees,
customers, suppliers and other stakeholders based on the principles of good corporate governance.
B. COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY
The Company’s essential character revolves around values based on transparency, integrity, professionalism
and accountability. At the highest level, the Company continuously endeavors to improve upon these aspects
on an ongoing basis and adopts innovative approaches for leveraging resources, converting opportunities into
achievements through proper empowerment and motivation, fostering a healthy growth and development of
human resources to take the Company forward.
C. THE GOVERNANCE STRUCTURE
The Company has four tiers of Corporate Governance structure, viz.:
(i) Strategic Supervision – by the Board of Directors comprising the Executive, Non-Executive Directors and
Independent Directors.
(ii) Executive Management – by the Corporate Management comprising of the, Chief Executive Officer and
Managing Director, 5 Executive Directors and 1 Non-Executive Director.
(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 the 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 stakeholder value. The Board also reviews and
approves management’s strategic plan & business objectives and monitors the Company’s strategic direction.
b. The Group Chairman (GC):
The GC is the Chairman of the Board. His primary role is to provide leadership to the Board and guidance and
mentorship to the CEO & MD and Executive Directors for realizing the approved strategic plan and business
objectives. He presides over the Board and the Shareholders’ meetings.
c. Executive Committee (ECom):
The ECom provides a company-wide operations review and plays a key role in strengthening linkages between
the ICs and the Company’s Board, as well as in rapidly realizing inter-IC synergies. In addition, the ECom
deliberates upon strategic issues that cut across ICs and Corporate. The agenda includes:
zz
zz
Review of major order prospects (Standalone/Group) “Integrated offerings”
Review of CSR activities of the Company
69
zz
zz
zz
zz
zz
zz
Review of consolidated financials including working capital, cash flow
Review of Monthly / Quarterly / Yearly financial performance
Review of Revenue, Capital & Manpower Budget
Review and discuss strategic issues which impact the entire organization, viz.,
i.
ii.
iii. HR Update/ Talent Management
iv. Digitalization & Analytics initiatives
Approval of common policies
Sharing of best practices, etc.
International business expansion
IC synergies
d. The Chief Executive Officer and Managing Director (CEO & MD):
The CEO & MD is fully accountable to the Board for the Company’s business development, operational
excellence, business results, people development and other related responsibilities.
e. Executive Directors (ED) / Senior Management Personnel:
The Executive Directors, as members of the Board, along with the Senior Management Personnel in the
Executive Committee, contribute to the strategic management of the Company’s businesses within Board
approved direction and framework. They assume overall responsibility for strategic management of business
and corporate functions including its governance processes and top management effectiveness.
f. Non-Executive Directors (NED) / Independent Directors:
The Non-Executive Directors / Independent directors play a critical role in enhancing balance to the Board
processes with their independent judgment on issues of strategy, performance, resources, standards of conduct,
etc., besides providing the Board with valuable inputs.
g.
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 structure with modified mandate. The Company has
already implemented the new mandate given by the Board and currently we have 9 ICs. 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. The strategic plan for the period 2016 – 2021 named Lakshya 2021 was developed
and approved by the Board at its meeting held in May 2016.
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 31st March 2018, the Board comprised of the Group Chairman, the Chief Executive Officer & Managing
Director, 5 Executive Directors, 4 Non-Executive Directors (3 representing financial institutions), and 11
Independent Directors. The composition of the Board, as on 31st March, 2018, 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 whenever 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, 6 meetings were held on 6th April 2017, 7th April 2017,
29th May 2017, 28th July 2017, 11th November 2017 and 31st January 2018.
The Independent Directors met on 5th April 2018 to discuss, interalia, the performance evaluation of the Board,
Committees, Chairman and the individual Directors.
70
The Company Secretary prepares the agenda and the explanatory notes, in consultation with the Group
Chairman / Chief Executive Officer & Managing Director and circulates the same in advance to the Directors.
Every Director is free to suggest inclusion of items on the agenda. The Board meets at least once every quarter,
inter alia, to review the quarterly results. 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 Companies / Business Units. Senior
management personnel are invited to provide additional inputs for the items being discussed by the Board
of Directors as and when necessary. The respective Chairman of the Board Committees apprise the Board
members of the important issues and discussion in the Committee meetings. Minutes of Committee meetings
are also circulated to the Board.
The Minutes of the proceedings of the Meetings of the Board of Directors are noted and the draft minutes are
circulated amongst the Members of the Board for their perusal. Comments, if any, received from the Directors
are also incorporated in the Minutes, in consultation with the Chairman. The minutes are approved and entered
in the minutes book within 30 days of the Board meeting. Thereafter, the minutes are signed by the Chairman
of the Board at the next meeting.
The following is the composition of the Board of Directors as on 31st March 2018. The Directors strive to attend
all the Board / Committee meetings. 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
Attendance at
last AGM
Mr. A. M. Naik #
Mr. S. N. Subrahmanyan ^
Mr. R. Shankar Raman
Mr. Shailendra Roy
Mr. D. K. Sen
Mr. M. V. Satish
Mr. J. D. Patil @
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
Mrs. Sunita Sharma (Note 1)
Mr. Thomas Mathew T.
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga
Mr. Narayanan Kumar
Mr. Arvind Gupta (Note 2) *
Meetings held during the year are expressed as number of meetings eligible to attend.
Note: 1. Representing equity interest of LIC
GC
CEO & MD
ED
ED
ED
ED
ED
ID
ID
ID
ID
NED
ID
ID
NED
ID
ID
NED
ID
ID
ID
NED
6
6
6
6
6
6
3
6
6
6
6
6
6
6
6
6
6
6
6
6
6
3
No. of Board
Meetings
attended
6
6
6
6
5
6
3
6
6
5
4
6
5
6
3
6
6
6
6
6
6
2
YES
YES
YES
YES
YES
YES
YES
YES
YES
NO
YES
YES
NO
NO
NO
YES
YES
YES
YES
YES
YES
NO
2. Representing equity interest of SUUTI
* - appointed as a Director w.e.f. 1st July 2017
# - Non-Executive Chairman w.e.f. 1st October, 2017 ^ - CEO & MD w.e.f. 1st July, 2017
@ - appointed as a Director w.e.f. 1st July 2017
$ - Has subsequently resigned as a Director of the Company w.e.f 2nd May 2018
GC – Group Chairman
ED – Executive Director
ID – Independent Director
1. None of the above Directors are related inter-se.
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.
CEO & MD – Chief Executive Officer & Managing Director
NED – Non-Executive Director
71
As on 31st March 2018, 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. J. D. Patil
Mr. M. M. Chitale
Mr. Subodh Bhargava
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Sushobhan Sarker
Mr. Adil Zainulbhai
Mr. Akhilesh Gupta
Mrs. Sunita Sharma
Mr. Thomas Mathew T.
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga
Mr. Narayanan Kumar
Mr. Arvind Gupta
No. of other company
Directorships
4
3
8
9
2
1
3
8
2
4
7
1
7
0
1
4
1
1
4
6
9
1
No. of Committee
Membership
0
2
4
1
0
0
0
3
1
5
2
1
2
0
0
3
2
0
5
3
2
0
No. of Committee
Chairmanship
0
0
0
0
0
0
0
5
0
3
1
0
5
0
1
0
0
0
0
2
4
0
zz
Other Company Directorships include directorships in all entities whose securities are listed and unlisted
public companies and excludes unlisted private limited companies, foreign companies and Section 8
companies.
zz
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 -
zz
Annual revenue budgets and capital expenditure plans
zz
Quarterly results and results of operations of ICs and business segments
zz
Financing plans of the Company
zz Minutes of meeting of Board of Directors, Audit Committee, Nomination & Remuneration Committee,
Stakeholders Relationship Committee and Corporate Social Responsibility Committee
zz
Details of any joint venture, acquisitions of companies or collaboration agreement
zz
zz
zz
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
72
zz
Developments in respect of human resources
zz
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 regularly 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 decided by the Board
from time to time. The Board is responsible for
constituting, assigning and co-opting the members
of the Committees. The meetings of each Board
Committee are convened by the Company Secretary
in consultation with the respective Committee
Chairperson. The role and composition of these
Committees, including the number of meetings held
during the financial year and the related attendance
are provided below.
1) Audit Committee
The Company has constituted the Audit
Committee in 1986, well before it was made
mandatory by law.
i) Terms of reference:
The role of the Audit Committee includes the
following:
zz
zz
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.
zz
Approval of payment to statutory
auditors for any other services rendered
by the statutory auditors.
zz
zz
zz
zz
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. Matters required to be included
in the Director’s Responsibility
Statement to be included in the
Board’s report in terms of sub-
section (5) of Section 134 of the
Companies Act, 2013
2. Changes, if any, in accounting
policies and practices and reasons
for the same
3. Major accounting entries involving
estimates based on the exercise of
judgment by management
4. Significant adjustments made in the
financial statements arising out of
audit findings
5. Compliance with listing and other
legal requirements relating to
financial statements
6. Disclosure of any related party
transactions
7. Qualifications in the draft audit
report.
Reviewing, with the management, the
quarterly financial statements before
submission to the board for approval.
Reviewing, with the management,
the statement of uses / application of
funds raised through an issue (public
issue, rights issue, preferential issue,
etc.), the statement of funds utilized for
purposes other than those stated in the
offer document/prospectus/notice and
the report submitted by the monitoring
agency monitoring the utilisation of
proceeds of public or rights issue, and
making appropriate recommendations to
the Board to take up steps in this matter,
if any.
73
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Reviewing, with the management,
performance of statutory and internal
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
there on.
Reviewing the findings of any internal
investigations by the internal auditors
into matters where there is suspected
fraud or irregularity or a failure of
internal control systems of a material
nature and reporting the matter to the
board.
To look into the reasons for
substantial defaults in the payment
to the depositors, debenture holders,
shareholders (in case of non-payment of
declared dividends) and creditors.
To review the functioning of the Whistle
Blower mechanism.
Approval of appointment of CFO (i.e.,
the whole-time Finance Director or
any other person heading the finance
function or discharging that function)
after assessing the qualifications,
experience & background, etc. of the
candidate.
Carrying out any other function as is
mentioned in the terms of reference of
the Audit Committee.
The recommendation for appointment,
remuneration and terms of appointment
of cost auditors of the Company.
Review and monitor the auditor’s
independence and performance, and
effectiveness of audit process.
Review the management discussion and
analysis of financial condition and results
of operations.
zz
zz
zz
zz
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.
zz 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:
As on 31st March 2018, the Audit
Committee comprised of three Independent
Directors and 1 Non-Executive Director
(nominee of LIC).
iii) Meetings:
During the year ended 31st March 2018, 8
meetings of the Audit Committee were held
on 5th May 2017, 28th May 2017, 19th July
2017, 28th July 2017, 11th November 2017,
6th December 2017, 30th January 2018 and
16th February 2018.
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. Sanjeev Aga
Member
8
8
8
8
8
6
8
8
@ Pursuant to his resignation as a Director of the
Company w.e.f. 2nd May 2018, Mr. Sushobhan Sarker
has ceased to be a member of the Audit Committee
from that date.
74
All the members of the Audit Committee are
financially literate and have accounting or
related financial management expertise.
The Chief Executive Officer & Managing
Director, Whole-time Director & Chief
Financial Officer and Head - Corporate
Audit Services are permanent invitees to
the Meetings of the Audit Committee. The
Company Secretary is the Secretary to the
Committee.
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
9001:2015 certified. The Head of Corporate
Audit Services is responsible to the Audit
Committee. The staff of Corporate Audit
department is rotated periodically to have
a holistic view of the entire operations and
share the findings and good practices.
The Corporate Audit Services team carries
out theme based audits (revenue recognition,
IT controls, etc.), joint audits with other
Corporate departments for specific
functions, identifies risk based focus areas
in project audits, benchmarks the audit
processes with large companies, encourages
its team members to obtain globally
renowned CISA, CIA and CFE Certification,
etc. The audit plan is finalized based on the
value of the contract in case of construction
projects and the geographical spread of the
Company. It is ensured that, on an average,
all operations get covered in a span of two
years. The Corporate Audit Services team
has its offices at Mumbai and Chennai and
all overseas audits are shared between these
two zones.
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)
The Nomination & Remuneration Committee was
constituted in 1999 even before it was mandated
by law.
i) Terms of reference:
zz
zz
zz
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;
zz
Devise a policy on Board diversity;
zz
zz
zz
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);
zz
Administration of Employee Stock
Option Scheme (ESOS).
ii) Composition:
As at 31st March 2018, the Committee
comprised of 3 Independent Directors and
the Group Chairman.
iii) Meetings:
During the year ended 31st March 2018, 5
meetings of the Nomination & Remuneration
Committee were held on 7th April 2017,
29th May 2017, 28th July 2017, 11th
November 2017 and 31st January 2018.
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
5
5
75
Name
Status
No. of
Meetings
Attended
No. of
meetings
during
the year
Mr. A. M. Naik
Member
Mr. Adil Zainulbhai
Member
Mr. Thomas Mathew T. Member
5
5
5
5
5
5
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, leadership and managerial
qualities, practical wisdom, ability to
read & understand financial statements,
commitment to ethical standards and values
of the Company and there are healthy
debates & sound decisions.
While evaluating the suitability of a Director
for re-appointment, besides the above
criteria, the NRC considers Board evaluation
results, 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 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 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 overall performance of the
Company, performance of the business /
function as well as qualitative factors. The
commission is calculated with reference to
net profits of the Company in the financial
year subject to overall ceilings stipulated
under Section 197 of the Companies Act,
2013.
The Independent Directors / Non-Executive
Directors are paid remuneration by way of
commission & sitting fees. The Company paid
sitting fees of R 75,000/- per meeting of the
Board and R 40,000/- for Audit Committee
and Nomination and Remuneration
Committee meetings and R 25,000/- for
Stakeholders Relationship Committee and
Corporate Social Responsibility Committee
meetings during the year, to the Independent
Directors / Non-Executive Directors. The
commission is paid 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 Group Chairman would provide
leadership to Board and guidance and
mentorship to the leadership team for
implementing the strategy plan and business
objectives. The Group Chairman is paid a
fixed commission. The commission to the
Independent Directors / Non-Executive
Directors is distributed broadly on the
basis of their attendance, contribution
76
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, Board processes and selection,
effectiveness of the Board and Committees,
functioning of the Board and Committees,
information availability, remuneration
framework, familiarization program,
succession planning, etc. It also contains
specific criteria for evaluating the Chairman
and individual Directors. An external
consultant was engaged to receive the
responses of the Directors and consolidate/
analyze the responses.
The Chairman of the Company discusses
the performance evaluation results with
the Chairman of the NRC and if required,
interacts with all the Non-Executive Directors
& Independent Directors on a one-to-one
basis.
Members are also requested to refer to pages
57 and 58 of the Board Report.
vi) Training & Succession Planning:
The Company has institutionalized
Leadership Development through a Seven
Step leadership pipeline for development of a
robust stage-wise leadership by a structured
process of talent management. The
thrust is on facilitating the transformation
of managers into leaders, leaders into
‘corporate entrepreneurs (intrapreneurs)’
and to create a large pool of leaders who
can envision, inspire, and successfully deploy
global growth strategies thus creating a
result-oriented culture of multiplying value.
Each step of this Leadership pipeline
development process has been meticulously
customized to equip managers at various
levels, with the required knowledge, skill
& mind-set to transition seamlessly to
the next level of leadership and global
entrepreneurship. In this effort, the Company
has partnered with globally renowned senior
faculty and premier institutes like Harvard
Business School, INSEAD, IIM Ahmedabad,
and Stephen M. Ross School of Business-
University of Michigan. The programs are
designed to provide inputs on vital areas
of strategic importance such as innovation
based strategies, integrated business models
to take on global multinationals, cross-
cultural challenges, organic and inorganic
growth etc., and thus mark an important
milestone in the journey towards leadership
development in the global context.
To facilitate enhanced global acumen &
international exposure, which are critical
competencies for establishing a global
footprint, the Company continues to
nominate select senior leaders for Advanced
Management Programs offered by globally
renowned business schools like INSEAD,
Wharton, Harvard, IMD, London Business
School, Oxford and the likes. As a part
of Leadership development at the top
echelons of the organization, a structured
& systematic approach to mentoring has
been initiated to leverage on the leadership
experiences & networks of senior leaders and
to enable them to leave a legacy of success
mantras.
In order to continuously monitor the
progress of high potentials (HIGH POTS)
who go through the Seven Step Leadership
Development process and to ensure that
they are given challenging roles and
responsibilities, a Top Talent Management
System is also put in place which is essential
to ensure progress of a strong leadership
pipeline.
To ensure that the Company has sufficient
pool of probable employees who can be
nominated for Leadership Pipeline, efforts
are taken at the grass root level. There
exists several structured core developmental
programs, conducted by reputed institutions
like IIM-Bangalore, IIM-Calcutta, XLRI,
Symbiosis and NMIMS for deserving
77
employees to develop superior management
skills and capabilities. A host of strategic
and behavioural programs are conducted to
address specific training and developmental
needs of employees. A comprehensive
e-learning portal ATL (Any Time Learning) is
available with multiple on-line programs and
courses for employees to enable learning ‘at
any time, at any place’ at locations remote
or otherwise. The portal provides access to
on-line data bases, references, management
videos, e-books and journals.
The NRC reviews on a periodic basis the
succession planning process being followed
by the Company especially at the level of the
Board and senior management.
vii) Details of remuneration paid / payable
to Directors for the year ended 31st
March 2018:
(a) Executive Directors:
The details of remuneration paid /
payable to the Executive Directors for
2017-18 is as follows:
Names
Salary
Perquisites Perquisites
related to
ESOP**
47.982
14.112
0.127
0.264
v crore
Total
Retirement
Benefits
Commission
77.682*
3.704
8.727 137.245
11.579 31.803
2.727
2.144
Mr. A. M. Naik @
Mr. S. N.
Subrahmanyan
Mr. R. Shankar
Raman
Mr. Shailendra
N. Roy
Mr. D. K. Sen
Mr. M. V. Satish
Mr. J. D. Patil $
*
0.120
0.215
0.135
1.140
1.140
0.720
8.061
7.381
3.950
Retirement benefits include encashment of accumulated past
service leave R 19.381 crore, gratuity R 55.038 crore and
pension of R 1.50 crore.
5.113
4.502
2.284
1.688
1.524
0.811
–
–
–
** Represents perquisite value related to ESOPs exercised during
the year in respect of stock options granted over the past
several years by the Company, Larsen & Toubro Infotech
Limited and L&T Technology Services Limited and includes tax
on ESOPs borne by the Company wherever applicable.
$ Appointed as Executive Director w.e.f. 1st July 2017.
@ Executive Chairman till 30th September 2017.
zz
Notice period for termination of
appointment of Chief Executive
Office & Managing Director and
other Whole-time Directors is six
months on either side.
zz
No severance pay is payable on
termination of appointment.
78
zz
Details of Options granted under
Employee Stock Option Schemes
are provided on the website of the
Company www.larsentoubro.com.
zz Mr. A. M. Naik has been granted
stock options in Larsen &
Toubro Infotech Limited and L&T
Technology Services Limited. On
his retirement as Group Executive
Chairman, all options have been
vested. The outstanding vested
options are 5,49,375 and 10,40,000
in Larsen & Toubro Infotech Limited
and L&T Technology Services
Limited respectively. Mr. S. N.
Subrahmanyan has been granted
2,00,000 stock options in Larsen
& Toubro Infotech Limited and L&T
Technology Services Limited each.
Mr. R. Shankar Raman has been
granted 1,00,000 stock options in
Larsen & Toubro Infotech Limited.
The perquisite amount on exercise
of these options will be considered
as a part of the remuneration of
these Directors.
(b) Non-Executive Directors:
The details of remuneration paid /
payable to the Non-Executive Directors
for 2017-18 is as follows:
Commission
Others
Sitting
Fees for
Board
Meeting
0.015
0.045
0.045
0.038
0.030
0.045
0.038
0.045
0.023
0.045
0.045
NIL
0.045
0.045
0.045
0.015
Sitting
Fees for
Committee
Meeting
0.008
0.032
0.020
0.024
0.010
0.032
0.020
–
–
0.020
0.010
NIL
–
0.032
–
–
Mr. A. M. Naik *
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
Mr. Arvind Gupta @
@ appointed as a Director w.e.f. 1st July 2017
* Group Chairman w.e.f. 1st October 2017
** Others include perquisite value of Housing & Medical
# Payable to respective Institutions they represent.
0.015**
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2.500
0.330
0.435
0.238
0.237
0.263#
0.258
0.150
0.038#
0.278
0.280
NIL
0.150
0.240
0.150
0.033#
v crore
Total
2.538
0.407
0.500
0.300
0.277
0.340
0.316
0.195
0.061
0.343
0.335
NIL
0.195
0.317
0.195
0.048
1.590
0.18
5.642
2.424
7.387 17.223
1.470
1.168
2.285
1.833
5.319 12.075
Names
Details of shares and convertible
instruments held by the Non-Executive
Directors as on 31st March 2018 are as
follows:
28th July 2017, 11th November 2017 and
31st January 2018.
The attendance of Members at the Meetings
was as follows-
No. of Shares held
4,24,958
Name
Status
Names
Mr. A. M. Naik
Mr. M. M. Chitale
Mr. Subodh Bhargava
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Sushobhan Sarker *
Mr. Adil Zainulbhai
Mr. Akhilesh Gupta
Mr. Sanjeev Aga
Mr. Thomas Mathew T.
Mr. Subramanian Sarma
Mr. Narayanan Kumar
Mrs. Sunita Sharma *
Mr. Ajay Shankar
Ms. Naina Lal Kidwai
Mr. Arvind Gupta *
2,443
1,125
225
1,327
225
150
7,680
4,500
150
31,650
1,500
150
150
150
100
* 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:
zz
zz
Redressal of Shareholders’ / Investors’
complaints
Allotment, transfer & transmission
of Shares / Debentures or any other
securities and issue of duplicate
certificates and new certificates on split
/ consolidation / renewal etc. as may
be referred to it by the Share Transfer
Committee.
ii) Composition:
As on 31st March 2018 the Stakeholders’
Relationship Committee comprised of 1 Non-
Executive Director, 1 Independent Director
and 1 Executive Director.
iii) Meetings:
During the year ended 31st March 2018, 4
meetings of the Stakeholders’ Relationship
Committee were held on 29th May 2017,
No. of
Meetings
Attended
No. of
meetings
during
the year
Mrs. Sunita Sharma
Chairperson
Mr. Ajay Shankar
Mr. Shailendra Roy
Member
Member
4
4
4
0
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*
Complaints:
SEBI / Stock
Exchange
Shareholder
Queries:
Dividend
Related
Transmission /
Transfer
Demat / Remat
4
78
79
3
486
8950
9392
71
27
3692
3701
481
501
44
62
7
* Investor queries shown outstanding as on 31st March
2018 have been subsequently resolved. The Company
repeatedly sends reminders to shareholders regarding
unclaimed shares and dividends. This results in an increase
in the number of queries received.
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
42 meetings during the year and approved
the transfer of shares lodged with the
Company.
79
4) Corporate Social Responsibility Committee:
i) Terms of reference:
The terms of reference of the CSR
Committee are as follows:
(a) formulate and recommend to the Board,
a Corporate Social Responsibility Policy
which shall indicate the activities to be
undertaken by the Company;
(b) recommend the amount of expenditure
to be incurred on the activities referred
to in clause (a); and
(c) monitor the Corporate Social
Responsibility Policy of the Company
from time to time.
ii) Composition:
As on 31st March 2018 the CSR Committee
comprised of 1 Independent Director and 2
Executive Directors.
iii) Meetings:
During the year ended 31st March 2018, 4
meetings of the CSR Committee were held
on 7th September 2017, 4th January 2018,
8th February 2018 and 26th March 2018.
The Members at the Committee are as
follows-
Name
Status
No. of
meetings
during
the year
No. of
Meetings
Attended
Mr. Vikram Singh Mehta
Chairman
Mr. R. Shankar Raman
Member
Mr. D. K. Sen
Member
4
4
4
4
4
2
iv) CSR Activities & Impact Assessment:
The Company is leveraging its countrywide
presence to reduce disparities through
interventions in Water and sanitation,
Healthcare, Education and Skill building.
Close interactions with the local community
members have enabled the Company to
identify and address their most pressing
needs and the social interventions for
community development have been
specifically aligned.
Under flagship program of “Integrated
Community Development” (ICD), the
Company has launched programs towards
80
holistic development in the following areas
based on need assessment:
zz Water & Sanitation: For the availability
of safe drinking water and proper
sanitation facilities
zz
zz
zz
Education: To improve access to
education (increased enrollment in pre-
school, children attending neighborhood
schools) and improving quality of
learning (better school infrastructure,
better teaching-learning process)
Health: Improvement in access
to quality health care (expanding
infrastructure of health centres,
increased number of people availing
quality health care)
Skill development: Enhancing
employability of youth (enhancing
training capacity, improved
infrastructure of skill development
centres).
Thirty Village Development Committees
(VDCs) have been formed across locations,
with participation from women. A quarterly
review of the ICD projects is done with the
village Panchayats and local authorities.
Access to cleaner water, hygienic
surroundings, better health, education and
new skills, has altered the lives of around 1
million individuals through our CSR Programs
in 2017-18.
All CSR projects have defined goals and
milestones which are tracked as per the
periodicity defined for the project. The
progress is compared with the baseline data
that is gathered before the commencement
of the project. This is carried out through
an onsite evaluation as well as the reports
generated from the project. The indirect
impacts that accrue are also factored and
documented in the monthly reporting
process. These are subsequently vetted /
measured during the external Social Audit or
Impact Assessment. The social audit report is
discussed during the Committee meetings.
The detailed disclosures of CSR spending
during the year has been given in Annexure
‘C’ forming part of this Board Report. Please
refer to pages 95 to 99 of this Annual
Report.
5) Risk Management Committee:
i) Terms of reference:
The terms of reference of the Apex Risk
Management Committee are as follows:
•
•
Review the existing Risk Management
Policy, framework and processes,
Risk Management Structure and Risk
Mitigation Systems. Broadly, the key
risks will cover strategic risks of the
group at the domestic and international
level, including Sectoral developments,
risk related to market, competition,
political and reputational issues etc.
Review operational risks including client
quality, manpower availability, logistics
and other aspects which impact the
Company and the group.
ii) Composition:
As on 31st March 2018, the Apex Risk
Management Committee comprised of 2
Executive Directors and 1 Non-Executive
Director.
iii) Meetings:
During the year ended 31st March 2018,
2 meetings of the Apex Risk Management
Committee were held on 3rd August, 2017
and 14th November, 2017.
The attendance of Members at the Meetings
was as follows-
Name
Status
No. of
meetings
during the
year
No. of
Meetings
Attended
Mr. A. M. Naik*
Member
Mr. S. N. Subrahmanyan
Chairman
Mr. R. Shankar Raman
Mr. Subramanian
Sarma@
Member
Member
1
2
2
1
1
2
2
1
@ Appointed as a Member wef 1st October, 2017
* Ceased to be a Member wef 1st October, 2017
Meetings held during the year are expressed
as number of meetings eligible to attend.
G. OTHER INFORMATION
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.
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 (IC) / Business
Unit, to the Board.
Some of the Independent Directors are members
of the IC Board. They share the learnings from
these meetings with the remaining Non-Executive
Directors / Independent Directors formally and
informally. Such interactions also happen when
these Directors meet senior management in IC
meetings and informal gatherings.
As part of the appointment letter issued to
Independent Directors, the Company has stated
that it will facilitate attending seminars/programs/
conferences designed to train directors to
enhance their role as an Independent Director.
This information is also available on the website
of the Company http://investors.larsentoubro.
com/Listing-Compliance.aspx.
b) Risk Management Framework:
Please refer to Page 56 of the Board Report.
a) Directors’ Familiarization Program:
c) Vigil Mechanism / Whistle Blower Policy :
All our directors are aware and are also
updated as and when required, of their role,
responsibilities & liabilities.
The Company has a Whistle Blower Policy in
place since April 2004. The said policy was
modified in line with the requirements of the
81
Vigil Mechanism under the Companies Act, 2013.
The Company has a Whistle Blower Investigation
Committee (WBIC) to manage complaints from
“Identified” Whistle Blowers. In addition, WBIC
considers “Anonymous” complaints which in
their judgement are serious in nature and require
investigation. The WBIC has four members viz.
Chief Financial Officer, Company Secretary, Head-
Corporate HR and Chief Internal Auditor. The
WBIC is responsible for end to end management
of the investigations from receipt of complaints
to bringing them to a logical conclusion, keeping
in mind the interest of the Company.
Employees are encouraged to report any
wrong-doings having an adverse effect on the
Company’s financials / image. An employee can
report any wrong-doing in oral or written form.
Whistle-blowers are assured by the management
of full protection from any kind of harassment,
retaliation, victimization or unfair treatment.
Complaints under the Whistle Blower Policy are
received by the Corporate Audit Services of the
Company. The Chief Internal Auditor reviews
the same and convenes a meeting of the WBIC
for discussions. The WBIC, after screening
the complaint, decides on the further course
of action which will include requesting the
complainant to provide further details, internal
investigation by the Internal Audit department,
investigation by external agencies, wherever
necessary, opportunity to the defendant to
present his / her case, etc. Based on the findings
of the investigation, the WBIC decides the action
to be taken and recommends the same to the
Executive Committee for implementation.
The WBIC meets formally and reviews the
complaints and their progress. In addition,
discussions also take place over video-
conferencing, telephone and emails amongst the
WBIC members.
The Audit Committee is periodically briefed about
the various cases received, the status of the
investigation, findings and action taken, if any.
During the year, the Company has investigated
the complaints received under the Whistle Blower
Policy and suitable action has been taken against
employees, wherever necessary.
Also please refer to pages 58 and 59 of the Board
Report.
d) Statutory Auditors:
In the case of appointment of new auditors, a
Committee, comprising of the Chairman of the
Audit Committee, the CFO and the Company
Secretary, evaluates various audit firms based
on approved criteria as given herein below. The
Audit firms are required to make a presentation
to this Committee. The Committee considers
factors such as compliance with the legal
provisions, number / nature / size and variation
in client base, skill sets available in the firm both
at partner level and staff level, international
experience, systems and processes followed by
the firm, training and development by the firm
to its partners and staff, etc. during the process
of evaluation. Based on merit and the factors
mentioned above, the Committee finalizes the
firm to be appointed and recommends the same
to the Audit Committee. The Audit Committee
reviews the same before recommending to the
Board and shareholders for approval.
The above process was followed by the Company
while appointing M/s Deloitte Haskins & Sells LLP
(‘DHS’) as the Auditors of the Company in 2015.
Deloitte Haskins & Sells LLP, registered since
1983, is one of the member firms of Deloitte
Touche Tohmatsu Limited, a UK private company
limited by guarantee (“DTTL”). Each DTTL
member firm provides services in particular
geographic areas and is subject to the laws and
professional regulations of the particular country
or countries in which it operates.
Deloitte Haskins & Sells LLP tied up with CC
Chokshi & Co in 1983 which was one of the
largest Indian Independent audit and accounting
firms. After that, it got merged with Fraser
& Ross, PC Hansotia & Co and later with SB
Billimoria (SBB) in 1999. In 2004, AF Ferguson &
Co (one of India’s oldest audit firm) merged into
existing DHS firms.
Deloitte is now a global network with circa
200,000 people with revenues over $30 billion.
Deloitte India has more than 10,000 professionals
operating out of 13 cities – Ahmedabad,
Bengaluru, Baroda, Chennai, Coimbatore,
Goa, Gurgaon, Hyderabad, Jamshedpur, Kochi,
Kolkata, Mumbai and Pune providing professional
services in the areas of Audit, Risk Advisory,
Tax, Consulting, and Financial Advisory services
to public and private clients spanning multiple
industries. It draws its strength from its people,
82
which include 2,700+ professionals in Audit,
2,250+ in Tax, 1,850+ in Consulting, and 900+ in
Financial Advisory.
Also please refer to Page 59 of the Board Report.
e) Code of Conduct:
The Company has laid down a Code of
Conduct for all Board members and senior
management personnel. The Code of Conduct
is available on the website of the Company
www.larsentourbo.com. The declaration of the
Chief Executive Officer & Managing Director 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.
S. N. Subrahmanyan
Chief Executive Officer & Managing Director
Date: May 28, 2018
Place: Mumbai
f) General Body Meetings:
The last three Annual General Meetings of the
Company were held as under:
Financial
Year
Date
Venue
Time
2016-2017 22nd August
2017
2015-2016 26th August
2016
2014-2015 9th September
2015
St. Andrews
Auditorium
Birla Matushri
Sabhagar
Birla Matushri
Sabhagar
3.00 p.m.
3.00 p.m.
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 22nd August
2017:
zz
zz
To re-appoint Mr. Subodh Bhargava as
an Independent Director of the Company
for a 5 year term upto 29th March 2022.
To approve raising of capital through QIP’s
by issue of shares / convertible debentures
/ securities upto an amount of USD 600
million or R 4,000 crore.
zz
To approve raising of finances through issue
of debentures upto R 6000 crore.
Annual General Meeting held on 26th August
2016:
zz
To approve raising of capital through QIP’s
by issue of shares / convertible debentures
/ securities upto an amount of USD 600
million or R 3600 crore.
zz
To approve raising of finances through issue
of debentures upto R 6000 crore.
Annual General Meeting held on 9th September
2015:
zz
To approve raising of capital through QIP’s
by issue of shares / convertible debentures
/ securities upto an amount of USD 600
million or R 3600 crore.
zz
To approve raising of finances through issue
of debentures upto R 6000 crore.
Note : The resolutions relating to raising of capital
and finances have been taken at each of the
above AGMs since the validity of the resolution is
one year.
A meeting of the equity shareholders of the
Company was convened on 22nd August 2017
as per the directions of National Company Law
Tribunal at Mumbai to approve the Scheme
of Arrangement between the Company and
Spectrum Infotech Private Limited and their
respective shareholders and creditors.
g) Approval of Members through Postal Ballot:
The Company received approval of the
members on 5th July 2017, for passing an
Ordinary Resolution under Section 110 of the
Companies Act, 2013 read with the Companies
(Management and Administration) Rules, 2014,
for issue of bonus shares in the ratio of 1:2
(1 bonus share for every 2 shares held). Mr. S.
N. Ananthasubramanian, Practicing Company
Secretary, was appointed as the Scrutinizer for
conducting the Postal Ballot process. The details
of the voting pattern are as under:
Particulars
In favour
of the
resolution
Against the
resolution
No. of votes cast
E-Voting
Physical
% of total
votes cast
Total
28,11,214
60,43,09,880
60,71,21,094
99.99
2,856
34,391
37,247
0.01
TOTAL
28,14,070
60,43,44,271
60,71,58,341
100.00
83
Procedure for Postal Ballot:
After receiving the approval of the Board of
Directors, Notice of the Postal Ballot, text of the
Resolution and Explanatory Statement, relevant
documents, Postal Ballot Form and self-addressed
postage envelopes are sent to the shareholders to
enable them to consider and vote for and against
the proposal within a period of 30 days from
the date of dispatch. E-voting facility is made
available to all the shareholders and instructions
for the same are specified under instructions for
voting in the Postal Ballot Notice. E-mails are sent
to shareholders whose e-mail ids are available
with the depositories and Company alongwith
Postal Ballot Notice and Ballot Form. After the
last day for receipt of ballots (physical / e-voting),
the Scrutinizer, after due verification, submits the
results to the Chairman. Thereafter, the Chairman
declares the result of the Postal Ballot. The same
is published in the Newspapers and displayed
on the Company Website and Notice Board and
submitted to Stock Exchanges.
h) 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 are given in Note 51
forming part of the financial statements.
3. The Company has followed all relevant
Accounting Standards notified by the
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. SEBI had issued notice to the Company,
Mr. A. M. Naik and Mr. Shailendra Roy for
alleged violation of the SEBI Act and SEBI
(Prohibition of Insider Trading) Regulations,
1992 (“PIT Regulations”) for delay ranging
between 1-7 days in reporting obligations
with certain trades in the shares of the
Company that were carried out in the March
2014. The Company, Mr. A. M. Naik and
Mr. Shailendra Roy have paid the amounts
as determined by SEBI under a consent
application.
7. The policy for determining material
subsidiaries and related party transactions
is available on our website http://investors.
larsentoubro.com/Listing-Compliance.aspx.
8. 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 230 to 232 of this Annual
Report.
i) Means of communication:
Financial
Results
Quarterly & Annual Results are
published in prominent daily
newspapers viz. The Financial
Express, The Hindu Business Line
& Loksatta. The results are also
posted on the Company’s website:
www.larsentoubro.com.
News Releases Official news releases are sent
to stock exchanges as well as
displayed on the Company’s website:
www.larsentoubro.com.
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, BSE Online for BSE and RNS for
London Stock Exchange.
84
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 has provided Webcast
facility of its 71st and 72nd Annual
General Meeting in co-ordination with
NSDL. The Company will continue
to provide webcast facility in future.
The Company suitably responds 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.
H. 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.
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
has transferred equity shares on which dividend has
remained unclaimed for a period of seven consecutive
years from the financial years 2009-10. The details are
given in the Board Report. Please refer to Page 54 of
this Annual Report.
All corporate benefits on such shares viz. bonus
shares, etc. shall be transferred in accordance with the
provisions of IEPF Rules read with Section 124(6) of
the Companies Act, 2013. The eligible shareholders
are requested to note the same and make an
application to IEPF Authority in accordance with the
procedure available on www.iepf.gov.in and submit
such documents as prescribed under the IEPF Rules to
claim these shares.
I. GENERAL SHAREHOLDERS’ INFORMATION
a) Annual General Meeting:
The Annual General Meeting of the Company
has been convened on Thursday, 23rd August
2018 at Birla Matushri Sabhagar, New Marine
Lines, Mumbai – 400020 at 3.00 p.m.
b) Financial calendar:
1.
2.
Annual Results of
2017-18
Mailing of Annual
Reports
28th May 2018
Third week of July 2018
3.
First Quarter Results During the last week of
4.
5.
6.
Annual General
Meeting
July 2018*
23rd August 2018
Payment of Dividend 27th August 2018
Second Quarter
results
During last week of
October 2018*
7.
Third Quarter results During last week of
January 2019*
* Tentative
c) Book Closure:
The dates of Book Closure are from Friday, 17th
August 2018 to Thursday, 23rd August 2018
(both days inclusive) to determine the members
entitled to the dividend for financial year
2017-2018.
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 2018-2019 to BSE, NSE and Luxembourg
Stock Exchange. Fees to London Stock Exchange
will be paid on receipt of the bill.
f) Custodial Fees to Depositories:
The Company has paid custodial fees for the year
2018-2019 to Central Depository Services (India)
Limited (CDSL) and fees to National Securities
Depository Limited (NSDL) will be paid on receipt
of the invoice.
85
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)
ISIN
Reuters RIC
Luxembourg Exchange Stock Code
London Exchange Stock Code
: Scrip Code - 500510
: Scrip Code - LT
:
INE018A01030
: LART.BO
: 005428157
: LTOD
The Company’s shares constitute a part of BSE 30
Index of the BSE Limited as well as NIFTY Index of
the National Stock Exchange of India Limited.
h) Stock market data for the year 2017-2018:
Month
L&T BSE Price (v)
BSE SENSEX
2017
Pre
Bonus:
April
May
June
July (upto
12th July)
)
V
(
E
S
B
-
T
&
L
1900
1800
1700
1600
1500
High
Low Month
Close
High
Low
Month
Close
1771.00
1578.00
1748.05 30184.22 29241.48 29918.40
1834.00
1680.00
1759.75 31255.28 29804.12 31145.80
1809.50
1661.35
1687.80 31522.87 30680.66 30921.61
1756.80
1671.00
1740.20 31885.11 31017.11 31804.82
Stock Performance
L&T BSE (v) BSE SENSEX
33000
32000
31000
30000
29000
28000
X
E
S
N
E
S
E
S
B
28-Apr-17
31-May-17
30-Jun-17
12-Jul-17
Daily Closing Price
Month
L&T BSE Price (v)
High
Low Month
Close
BSE SENSEX
High
Low
Month
Close
1206.00
2017
Post
Bonus:
July (from
13th July)
August
1199.50
September 1249.95
1243.35
October
1153.25
1192.10 32672.66 31626.44 32514.94
1114.55
1116.45
1124.50
1136.00 32686.48 31128.02 31730.49
1141.20 32524.11 31081.83 31283.72
1220.60 33340.17 31440.48 33213.13
86
Month
L&T BSE Price (v)
High
Low Month
Close
BSE SENSEX
High
Low
Month
Close
2017
November
December
2018
January
February
March
)
V
(
E
S
B
-
T
&
L
1500
1300
1100
900
700
Month
2017
Pre
Bonus:
April
May
June
July (upto
12th July)
)
V
(
E
S
N
-
T
&
L
1900
1800
1700
1600
1500
1274.00
1275.00
1202.00
1176.00
1216.85 33865.95 32683.59 33149.35
1256.95 34137.97 32565.16 34056.83
1441.00
1469.60
1332.30
1243.15
1275.85
1259.70
1416.60 36443.98 33703.37 35965.02
1319.10 36256.83 33482.81 34184.04
1311.90 34278.63 32483.84 32968.68
Stock Performance
L&T BSE (v) BSE SENSEX
38000
37000
36000
35000
34000
33000
32000
31000
30000
X
E
S
N
E
S
E
S
B
7
1
-
l
u
J
-
1
3
7
1
-
g
u
A
-
1
3
7
1
-
p
e
S
-
9
2
7
1
-
t
c
O
-
1
3
7
1
-
v
o
N
-
0
3
7
1
-
c
e
D
-
9
2
8
1
-
n
a
J
-
1
3
8
1
-
b
e
F
-
8
2
8
1
-
r
a
M
-
8
2
Daily Closing Price
L&T NSE Price (v)
High
Low Month
Close
NIFTY
High
Low Month
Close
1774.00
1576.60
1749.80
9367.15
9075.15
9304.05
1833.95
1677.60
1760.70
9649.60
9269.90
9621.25
1809.40
1661.30
1687.60
9709.30
9448.75
9520.90
1756.70
1671.00
1739.55
9830.05
9543.55
9816.10
Stock Performance
L&T NSE (v) NSE NIFTY
10000
9700
9400
9100
Y
T
F
I
N
E
S
N
8800
8000
28-Apr-17
31-May-17
30-Jun-17
12-Jul-17
Daily Closing Price
Month
L&T NSE Price (v)
High
Low Month
Close
NIFTY
High
Low Month
Close
1207.50
2017
Post
Bonus:
July (from
13th July)
August
1198.25
September 1250.50
1243.50
October
1274.95
November
December
1275.95
2018
January
February
March
1441.65
1470.00
1332.90
1153.50
1193.95 10114.85
9792.05 10077.10
1113.05
1115.90
1123.20
1203.10
1175.00
9917.90
9685.55
1136.30 10137.85
9687.55
9788.60
1142.05 10178.95
1222.30 10384.50
9831.05 10335.30
1216.55 10490.45 10094.00 10226.55
1258.25 10552.40 10033.35 10530.70
1242.85
1276.00
1259.25
1416.50 11171.55 10404.65 11027.70
1318.15 11117.35 10276.30 10492.85
9951.90 10113.70
1310.90 10525.50
)
V
(
E
S
N
-
T
&
L
1500
1300
1100
900
700
Stock Performance
L&T NSE (v) NSE NIFTY
7
1
-
l
u
J
-
1
3
7
1
-
g
u
A
-
1
3
7
1
-
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e
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9
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7
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c
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-
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3
7
1
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o
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-
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3
7
1
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c
e
D
-
9
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a
J
-
1
3
8
1
-
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F
-
8
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8
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-
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M
-
8
2
Daily Closing Price
11650
11300
10950
10600
10250
9900
9550
9200
8850
Y
T
F
I
N
E
S
N
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, Nanakramguda,
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.
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 31st
March 2018:
No. of Shares
Shareholders
Shareholding
Number
%
Number
%
5.83
2.47
2.66
1.64
0.94
0.83
2.09
Upto 500
501 – 1000
1001 – 2000
2001 – 3000
3001 – 4000
4001 – 5000
5001 – 10000
10001 & Above
8,43,110
89.57
47,281
26,972
9,429
3,782
2,586
4,231
3,844
5.02
2.87
1.00
0.40
0.27
0.45
0.41
8,16,30,062
3,46,71,463
3,73,32,579
2,29,25,003
1,31,07,907
1,1590,159
2,92,64,989
117,08,47,294
83.55
TOTAL
9,41,235 100.00 140,13,69,456
100.00
l) Categories of Shareholders is as under:
Category
31.03.2018
31.03.2017
No. of
Shares
%
No. of
Shares
%
Financial Institutions
33,25,25,270
23.73 25,04,43,440
26.84
Foreign Institutional
Investors
Shares underlying
GDRs
25,81,41,851
18.42 16,11,32,756
17.27
2,96,43,045
2.12
1,76,21,579
1.89
Mutual Funds
20,23,45,408
14.44 10,32,87,263
11.07
Bodies Corporate
8,99,08,301
Directors & Relatives
14,21,965
6.42
0.10
6,43,39,638
15,09,274
6.90
0.16
L&T Employees
Welfare Foundation
17,21,28,421
12.28 11,47,52,281
12.30
General Public
31,52,55,195
22.49 21,98,79,572
23.57
TOTAL
140,13,69,456 100.00
93,29,65,803 100.00
Categories of Shareholders
as on March 31, 2018
General Public
22.49%
L&T Employees
Welfare
Foundation
12.28%
Directors & Relatives
0.10%
Bodies Corporate
6.42%
Financial
Institutions
23.73%
Foreign Institutional
Investors
18.42%
Mutual Funds
14.44%
Shares underlying GDRs
2.12%
87
m) Dematerialization of shares & Liquidity:
The Company’s Shares are required to be
compulsorily traded in the Stock Exchanges in
dematerialized form.
The number of shares held in dematerialized and
physical mode is as under:
(iv)
(v)
Underlying Equity Shares / GDR’s
issued pursuant to conversion as per
(ii) above
NIL
Underlying Equity Shares / GDR’s that
may be issued pursuant to conversion
notices in respect of (iii) above
95,20,455
shares
No. of shares
% of
total
capital
issued
These Convertible Bonds are listed on the
Singapore Exchange Securities Trading Limited.
o) Listing of Debt Securities:
Held in dematerialized form in NSDL 1,31,83,48,704
94.07
Held in dematerialized form in CDSL
5,78,49,977
4.13
1.80
2,51,70,775
1,40,13,69,456
100.00
Physical
Total
Shares held in Demat / Physical Form
as on March 31, 2018
CDSL
5,78,49,977
4.13%
Physical
2,51,70,775
1.80%
NSDL
1,31,83,48,704
94.07%
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 31st March
2018:
The redeemable Non-Convertible debentures
issued by the Company are listed on the
Wholesale Debt Market (WDM) of National Stock
Exchange of India Limited (NSE) and / or BSE
Limited (BSE).
p)
Debenture Trustees (for privately placed
debentures):
IDBI Trusteeship Services Limited
Ground Floor,
Asian Building
17, R. Kamani Marg
Ballard Estate
Mumbai – 400 001
q) Plant Locations:
The L&T Group’s facilities for design, engineering,
manufacture, modular fabrication and production
are based at multiple locations within India
including Ahmednagar, Bengaluru, Chennai,
Coimbatore, Faridabad, Hazira (Surat), Kattupalli
(near Chennai), Kanchipuram, Mumbai, Navi
Mumbai, Mysuru, Pithampur, Puducherry,
Rajpura, Kansbahal (Rourkela), Talegaon and
Vadodara. L&T’s international manufacturing
footprint covers the Gulf (Oman, Saudi Arabia,
UAE), 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.
See pages 12 and 13 of this Annual Report.
0.675% USD 200 million Foreign Currency Convertible Bonds
due 2019
r) Address for correspondence:
(i)
(ii)
(iii)
Principal Value of the Bonds issued
USD 200 million
Principal Value of Bonds converted to
GDRs since issue
NIL
Principal Value of Bonds outstanding
as at 31st March 2018
USD 200 million
Larsen & Toubro Limited,
L&T House,
Ballard Estate,
Mumbai 400 001.
Tel. No. (022) 6752 5656,
Fax No. (022) 6752 5893
88
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
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.
t) Securities Dealing Code:
Pursuant to the SEBI (Prohibition of Insider
Trading) Regulations, 2015 (‘SEBI Regulations’),
the Company has suitably modified its Securities
Dealing Code (‘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 executing
contra-trades during the next six months
following the prior transactions. The Company
has a policy for taking action against employees
who violate the SEBI Regulations / Code.
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) Stakeholder Engagement:
The Company recognizes that its stakeholders
form a vast and heterogeneous community. Our
customers, shareholders, employees, suppliers,
community, etc. have been guideposts of our
decision making process. The Company engages
with its identified stakeholders on an ongoing
basis through business level engagements and
structured stakeholder engagement programs.
The Company maintains its focus on delivering
value to all its stakeholders, especially the
disadvantaged communities.
The Company has a dedicated Corporate Brand
Management & Communications department
which facilitates an on-going dialogue between
the Company and its stakeholders. The
communication channels include:
zz
zz
For external stakeholders - Stakeholder
engagement sessions, client satisfaction
surveys, shareholder satisfaction survey,
dealer and stockists meet, analyst / investors
meet, periodic feedback mechanism, general
meeting for shareholders, factory visits for
shareholders, online service and dedicated
e-mail service for grievances, corporate
website and access to business media to
respond to queries, etc.
For internal stakeholders – Employee
satisfaction surveys, employee engagement
surveys for improvement in employee
engagement processes, circulars and
messages from management, corporate
social initiatives, welfare initiatives for
employees and their families, online news
bulletins for conveying topical developments,
large bouquet of print and online in-house
magazines, helpdesk facility, etc.
Each of the businesses have their internal
mechanisms to address the grievances of its
89
stakeholders. In addition, at the corporate level,
there are committees which can be approached
if the stakeholders are not satisfied with the
functioning of such internal mechanisms. As
part of the vigil mechanism, the Whistle Blower
Policy provides access for various stakeholders
to the Chairperson of the Audit Committee. The
Whistle Blower Policy for Vendors & Channel
Partners is displayed on the website of the
Company http://investors.larsentoubro.com/
CorporateGovernance.aspx.
v)
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.
The Company has created a batch of trainers
across businesses who in turn conduct training /
awareness sessions within their business regularly
during the year. External experts were also
invited to conduct a session on Compliance &
Governance for senior management.
w) ISO 9001:2015 Certification:
The Company’s Secretarial Department
which provides secretarial services and investor
services for the Company and its Subsidiary
and Associate Companies was ISO 9001:2008
certified. During the year, it migrated to
and got certified under the ISO 9001:2015
standard.
x) 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
90
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.
y) Secretarial Audit as per Companies Act, 2013:
Pursuant to the provisions of Section 204(1)
of the Companies Act, 2013, M/s. S. N.
Ananthasubramanian & Co., Company
Secretaries, conducts the secretarial audit of the
compliance of applicable statutory provisions and
the adherence of good corporate practices by the
Company.
z) Statutory Compliance System:
The Company complies with applicable laws,
rules and regulations impacting Company’s
business. These comprise of Central Acts /
Rules and those of state governments where
the Company generally carries on business. The
applicable laws are reviewed by the Corporate
Legal and Legal departments of each Independent
Company (IC) on a periodic basis and updated
whenever required.
Each IC / Business head certifies compliance of
all applicable laws by the IC on a quarterly basis.
Based on these confirmations, the Company
Secretary gives a compliance certificate to the
Board of Directors.
The Company has a process of verifying
the compliances through a random review
of the process / system / documentation of
the location of the IC / Corporate function
/ Group Company. Existing internal controls
are also reviewed. The audit process includes
planning the audit, discussion with auditee
before audit commencement to explain the
scope and purpose of the audit, verifying
the compliances based on the supporting
documentation, post audit meeting for
explaining the observations, etc.
Independent Auditor’s Certificate on Corporate Governance
TO THE MEMBERS OF
LARSEN & TOUBRO LIMITED
INDEPENDENT AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE
1. This certificate is issued in accordance with the terms of our engagement letter reference no. 4335A dated
September 14, 2017.
2. We, Deloitte Haskins & Sells LLP, Chartered Accountants, the Statutory Auditors of Larsen & Toubro Limited (“the
Company”), have examined the compliance of conditions of Corporate Governance by the Company, for the year
ended on March 31, 2018, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C
and D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing
Regulations”) as amended.
Managements’ Responsibility
3. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility
includes the design, implementation and maintenance of internal control and procedures to ensure the compliance
with the conditions of the Corporate Governance stipulated in Listing Regulations.
Auditor’s Responsibility
4. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for
ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of
opinion on the financial statements of the Company.
5. We have examined the books of account and other relevant records and documents maintained by the Company for
the purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the
Company.
6. 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 the Chartered Accountants of India (the ”ICAI”),
the Standards on Auditing specified under Section 143(10) of the Companies Act 2013, in so far as applicable for
the purpose of this certificate and as per the Guidance Note on Reports or Certificates for Special Purposes issued by
the ICAI which requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and
Related Services Engagements.
Opinion
8. Based on our examination of the relevant records and according to the information and explanations provided
to us and the representations provided by the Management, we certify that the Company has complied with the
conditions of Corporate Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2)
and para C and D of Schedule V of the Listing Regulations during the year ended March 31, 2018.
9. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Company.
Mumbai, May 28, 2018
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/ W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
91
Independent Auditor’s Certificate in respect of the implementation of
Employee Stock Option Schemes of the Company
TO THE MEMBERS OF
LARSEN & TOUBRO LIMITED
INDEPENDENT AUDITOR’S CERTIFICATE IN RESPECT OF THE IMPLEMENTATION OF EMPLOYEE STOCK OPTION
SCHEMES OF THE COMPANY
1. This certificate is issued in accordance with the terms of our engagement letter dated September 14, 2017.
2. We, Deloitte Haskins & Sells LLP, Chartered Accountants (Firm Registration Number 117366W/W-100018), the
Statutory Auditors of Larsen & Toubro Limited (“L&T”/ “Company”), pursuant to the requirement of clause 13 of
Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 as amended by Circular
No. CIR/CFD/POLICYCELL/2/2015 dated June 16, 2015, vide Notification no. SEBI/LADNRO/GN/2015-16/021
dated September 18, 2015 and vide Notification no. SEBI/LAD/NGO/GN/2016-17/037 dated March 6, 2017 (the
“Regulations”) are required to certify for the year ended March 31, 2018 that the Employee Stock Option Schemes,
L&T Limited ESOP scheme -2000 and L&T Limited ESOP scheme -2006 (the “Schemes”) have been implemented in
accordance with the Regulations and in accordance with the special resolutions passed in the general meeting held
on August 26, 1999, and August 25, 2006 (the “Resolutions”).
Management’s Responsibility
3. The Management is responsible for implementation of the Schemes in accordance with the Regulations and the
Resolutions. This responsibility includes the design, implementation and maintenance of internal control relevant to
the implementation of the Schemes in accordance with the Regulations and Resolutions. The Management is also
responsible for ensuring compliance with the terms and conditions contained in the Regulations and for providing
all relevant information to us in this regard
Auditor’s Responsibility
4.
It is our responsibility to provide a certificate on compliance with the Regulations and Resolutions by the Company
while implementing the Schemes during the year ended March 31, 2018, based on our examination of the books of
account and other records of the Company for the year ended on that date, which have been subjected to our audit
vide our report dated May 28, 2018.
5. We conducted our examination and obtained the explanations in accordance with the Guidance Note on Reports
or Certificates for Special Purposes issued by the Institute of Chartered Accountants of India (“ICAI”) and the
Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 which include the concepts of
test checks and materiality. This Guidance Note 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 Review Historical Financial Information, and Other Assurance and Related
Services Engagements.
Criteria and Scope
7. The criteria against which the information is evaluated are the following:
a)
the Regulations;
b)
the Schemes;
c) Special resolution passed by the Shareholders for the Schemes; and
d) Written representation from the Management.
92
Opinion
8. Based on our examination, as stated above, and according to the information, explanations and representations
provided to us by the Management of the Company, in our opinion, the schemes implemented by the Company are
in accordance with the Regulations and the Resolutions.
Restriction on Use
9. This certificate is addressed to and provided to the Members of the Company solely for the purpose of compliance
with Clause 13 of the Regulations. This certificate should not be circulated, copied, used/referred to for any other
purpose, without our prior written consent. Accordingly, we do not accept or assume any liability or any duty of
care of for any other purpose or to any other party to whom it is shown or into whose hands it may come without
our prior consent in writing.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. Number 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No. 39826)
Mumbai, May 28, 2018
93
To the Board of Directors of Larsen & Toubro Limited
Dear Sirs,
Sub: CEO / CFO Certificate
{Issued in accordance with provisions of Regulation 17(8) of
SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015}
We have reviewed the consolidated financial statements, read with the consolidated cash flow statement of Larsen &
Toubro Limited for the year ended March 31, 2018 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 pertaining to financial reporting and have disclosed to
the Auditors and the Audit Committee, deficiencies, if any, in the design or operation of such internal controls of
which we are aware and steps taken or 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)
that there were no significant changes in accounting policies made during the year; and
(ii)
that there were no instances of significant fraud of which we have become aware.
Yours sincerely,
R. Shankar Raman
Chief Financial Officer
S. N. Subrahmanyan
CEO & Managing Director
Place: Mumbai
Date: May 28, 2018
94
Annexure ‘C’ to the Board Report
CSR ACTIVITIES FOR 2017-18
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.
zz Water & Sanitation – includes 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 .
zz
zz
zz
Education - includes but not limited to education
infrastructure support to educational Institutions,
educational programs & nurturing talent at
various levels.
Health - includes 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 - includes but not limited
to vocational training such as skill building,
computer training, women empowerment,
support to ITI’s, support to specially abled
(infrastructure support & 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
1. Mr. Vikramsingh Mehta
Chairman,
2. Mr. R. Shankar Raman
Member
3. Mr D.K. Sen
Member
and Mr. N. Hariharan as the Secretary of the
Committee.
3. Average net profit of the Company for the last
three financial years.
The average net profit of the Company for the last
three financial years is R 5,023.91 Cr.
4. Prescribed CSR expenditure (two percent of the
amount as in item 3 above).
The Company is required to spend an amount of
R 97.29 Cr. as CSR expenditure during the financial
year 2017-18.
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 R 97.29 Cr
during the financial year 2017-18. As against
this mandate, the Company spent R 100.92 Cr
towards various activities for the benefit of the
community. This exceeds the required spend
by R 3.63 Cr. The CSR spend for FY 2017-18 is
2.07% of net profit.
b. Amount unspent, if any
Nil
95
c. Manner in which the amount was spent in
the financial year is detailed below:
committees formed for implementation of the
CSR policy;
As per table enclosed
6. Reasons for not spending the amount during the
financial year.
NA
7. CSR Committee Responsibility Statement:
The CSR Committee hereby affirms that:
zz
zz
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.
zz
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
S. N. Subrahmanyan
Vikram Singh Mehta
CEO & Managing Director
DIN: 02255382
Chairman – CSR
Committee
DIN: 00041197
96
Sector in
which the
project is
covered
Education
S. No. CSR Project or activity identified
School support programme-
Enhancing the quality of
education and learning levels
in government schools /
schools running for children
from underprivileged
backgrounds
Community based
programmes- Study Centres
/ balwadis /anganwadis run
for developing pre-school
foundation, promoting healthy
and hygienic environment
for education and providing
nutritional supplements
Providing infrastructure
support for education
Education
Education
1
2
3
4
Providing educational aids
to children-books, stationary,
sports equipment, uniforms,
school bags, shoes, woolen
clothes, raincoats etc.
Education
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Andhra Pradesh (Vizag),
Chandigarh, Chhattisgarh
(Raigarh), Gujarat (Ahmedabad,
Surat, Vadodara), Jharkhand
(Ranchi), Karnataka (Mysuru),
Madhya Pradesh (Khandwa),
Maharashtra (Mumbai, Pune,
Raigad), New Delhi (Faridabad),
Orissa (Rayagada, Rajpur),
Rajasthan (Rawatbhata), Tamil
Nadu (Chennai, Kanchipuram,
Coimbatore), Telangana
(Hyderabad), Uttar Pradesh
(Tanda), West Bengal (Kolkata)
Andhra Pradesh (Vizag),
Karnataka (Bengaluru),
Maharashtra (Mumbai), Orissa
(Rayagada), Tamil Nadu (Chennai,
Coimbatore)
Andhra Pradesh (Vizag,
West Godavari), Chandigarh,
Chhattisgarh (Raipur),
Gujarat (Ahmedabad, Surat,
Vadodara, Mahesana, Navsari,
Morbi, Narmada), Jharkhand
(Jamshedpur, Bokaro, Deoghar),
Karnataka (Bengaluru, Mysuru,
Tumkur, Gadag, Bagalkot),
Madhya Pradesh (Alirajpur,
Bhopal, Chhatarpur, Khargone,
Narsinghpur), Maharashtra
(Ahmednagar, Pune, Nagpur,
Nasik, Thane, Raigad, Mumbai),
Meghalaya (Shilong), New Delhi,
Orissa (Rourkela, Bhubaneswar,
Cuttack, Jajpur, Balasore, Ganjam,
Sundergarh, Bhadrak, Khurda,
Kalahandi, Rayagada), Punjab
(Moga), Rajasthan (Baran, Pali,
Churu, Tonk, Karauli), Tamil
Nadu (Chennai, Vellore, Erode,
Ariyalur, Coimbatore, Dharmapuri,
Pudukkottai, Kanchipuram),
Telangana (Medak, Khammam,
Adilabad),Uttar Pradesh
(Sonbhadra, Allagabad), West
Bengal (Kolkata, Nadia, North 24
Parganas, Uttar Dinajpur)
Gujarat (Ahmedabad, Vadodara),
Karnataka (Bengaluru), Kerala
(Kannur, Kochi), Maharashtra
(Mumbai, Pune), New Delhi,
Orissa (Rayagada, Rourkela,
Bhubaneswar), Rajasthan (Jaipur),
Tamil Nadu (Coimbatore),
Telangana (Hyderabad)
Amount
outlay
(budget)
project or
programe
wise (v In
Lakh)
559.56
Overhead
(v In
Lakh)
Direct
expenditure
on projects
or programs
(v In Lakh)
Cumulative
expenditure
upto to the
reporting
period (v In
Lakh)
Amount spent:
direct or through
implementing
agency
524.93
27.72
552.64
Implementing
agency
242.58
206.92
10.93
217.84
Implementing
agency
1,171.77
1,024.46
54.09
1,078.55 Direct
41.01
33.59
1.77
35.36 Direct
97
Sector in
which the
project is
covered
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Amount
outlay
(budget)
project or
programe
wise (v In
Lakh)
Overhead
(v In
Lakh)
Direct
expenditure
on projects
or programs
(v In Lakh)
Cumulative
expenditure
upto to the
reporting
period (v In
Lakh)
Amount spent:
direct or through
implementing
agency
Education
Karnataka (Bengaluru), Tamil
Nadu (Chennai)
2.20
0.85
0.04
0.89
Implementing
agency
Health
Gujarat (Surat), Maharashtra
(Mumbai, Thane, Ahmednagar)
742.58
647.07
34.20
681.27 Direct
Andhra Pradesh (Vizag), Gujarat
(Vadodara, Surat), Jharkhand
(Jamshedpur), Madhya Pradesh
(Bhopal), Maharashtra (Nagpur),
New Delhi, Orissa (Bhubaneswar,
Raygada), Rajasthan (Jaipur),
Tamil Nadu (Chennai), West
Bengal (Kolkata)
Andhra Pradesh (Vizag), Gujarat
(Surat, Ahmedabad, Vadodara),
Karnataka (Bengaluru),
Maharashtra (Pune, Mumbai),
New Delhi (Faridabad), Orissa
(Sundargarh, Rayagada), Tamil
Nadu (Chennai, Tirunelveli)
Chandigarh, Chattisgarh (Raipur),
Gujarat (Vadodara, Ahmedabad),
Jharkhand (Jamshedpur), Kerala
(Kochi), Madhya Pradesh (Indore),
Maharashtra (Pune, Nagpur),
New Delhi, Orissa (Bhubaneswar),
Rajasthan (Jaipur), Tamil Nadu
(Coimbatore, Chennai),
Telangana (Hyderabad), Uttar
Pradesh (Lucknow)
Gujarat (Vadodara), Madhya
Pradesh (Khandwa), Maharashtra
(Mumbai), Orissa (Sundargarh),
Rajasthan (Baran), Tamil Nadu
(Chennai), Uttar Pradesh (Tandwa)
41.67
38.25
2.02
40.26 Direct
150.72
138.25
7.30
145.55
Implementing
agency
3.47
2.88
0.15
3.04
Implementing
agency
274.34
257.74
13.61
271.35 Direct
4,306.77
4,047.02
213.68
4,260.71 Direct
192.67
180.93
9.55
190.48 Direct
Skill Building Gujarat (Ahmedabad), Karnataka
(Bengaluru), Maharashtra (Panvel,
Nagpur), Orissa (Cuttack), Tamil
Nadu (Kanchipuram, Pulicat),
Telangana (Hyderabad, Jadcherla),
Uttar Pradesh (Pilkhuwa), West
Bengal (Kolkata)
Skill Building Andhra Pradesh (Vizag), Gujarat
(Surat), New Delhi, Uttar Pradesh
(Lucknow), Madhya Pradesh
(Malwa), New Delhi, Rajasthan
(Baran)
5
6
7
8
10
11
S. No. CSR Project or activity identified
Awareness programmes
(health and hygiene, road
safety, career guidance,
personality development)
Community Health Centres
(offering diagnostic services
including family planning,
gynecological, pediatric,
immunization, chest & TB,
ophthalmic consultation,
dialysis services, HIV/AIDS
awareness, etc.)
Health Camps (general, eye,
dental, vaccinations) and
health awareness
Health
Health Camps (general, eye,
dental, vaccinations) and
health awareness
Health
9
Blood donation camps
Health
Infrastructure support to
medical centres
Health
Construction Skill Training
Institute - CSTI
12
Vocational and Computer
training for youth
98
S. No. CSR Project or activity identified
Sector in
which the
project is
covered
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Amount
outlay
(budget)
project or
programe
wise (v In
Lakh)
Overhead
(v In
Lakh)
Direct
expenditure
on projects
or programs
(v In Lakh)
Cumulative
expenditure
upto to the
reporting
period (v In
Lakh)
Amount spent:
direct or through
implementing
agency
13
Vocational Training
Skill Building Gujarat (Vadodara), Maharashtra
130.20
78.38
4.14
82.52
(Nagpur, Pune, Raigad), Tamil
Nadu (Chennai, Coimbatore,
Nilgiris ), West Bengal (Kolkata)
Women empowerment
through vocational training
Skill Building Gujarat (Surat, Ahmedabad),
65.88
59.45
3.14
62.59
Kerala (Ernakulam), Orissa
(Rayagada), West Bengal (Kolkata)
115.14
107.82
5.69
113.52
Implementing
agency
Implementing
agency
Implementing
agency
14
15
16
17
18
19
Skill building for differently
abled
Project Neev
Basic infrastructure support in
the community (Water, Health,
Sanitation, Solar lights, roads
etc.)
Community
Development
**Integrated Community
Development Programme
Development of gardens and
maintenance of public spaces
Tree plantation and
environment protection
20
Awareness programmes
- environment, energy
conservation,road safety
21
Employee Volunteering
Jharkhand (Jamshedpur), Kerala
(Kochi), Maharashtra (Mumbai,
Pune, Ahmednagar), Rajasthan
(Jaipur), Tamil Nadu (Chennai),
Telangana (Hyderabad), West
Bengal (Kolkata)
Andhra Pradesh (Vizag),
Maharashtra (Mumbai), Orissa
(Bhubaneswar, Balasore), Tamil
Nadu (Chennai, Kanchipuram,
Coimbatore ), Uttarakhand
(Rudraprayag), West Bengal
(Dakshin Dinajpur)
Maharashtra (Ahmednagar),
Rajasthan (Rajsamand, Udaipur),
Tamil Nadu (Coimbatore, Vellore)
Water &
Sanitation,
Health,
Education,
Skill Building
Environment Maharashtra (Mumbai, Nasik,
Pune, Ahmednagar), New Delhi
Environment Andhra Pradesh (Vizag), Gujarat
(Surat, Vadodara, Ahmedabad),
Jharkhand (Jamshedpur),
Karnataka (Bengaluru, Tumkur,
Gadag, Raichur), Madhya
Pradesh (Bhopal), Maharashtra
(Nagpur, Nasik, Pune), Orissa
(Balasore, Berhampur, Kalahandi),
Rajasthan (Churu), Tamil Nadu
(Chennai, Coimbatore), Telangana
(Adilabad), West Bengal (North 24
Parganas)
Environment Andhra Pradesh (Vizag),
Employee
volunteers
Chandigarh, Maharashtra
(Nagpur), Telangana (Hyderabad),
New Delhi
Andhra Pradesh (Vizag), Gujarat
(Surat, Vadodara), Jharkhand
(Jamshedpur), Maharashtra
(Mumbai), New Delhi, Orissa
(Sundargarh, Jajpur), Tamil Nadu
(Chennai, Coimbatore), West
Bengal (Kolkata)
66.99
50.05
2.48
52.53 Direct
2,106.01
1,636.52
86.41
1,722.93
Implementing
agency
240.25
189.19
9.99
199.18 Direct
75.44
65.93
3.48
69.41 Direct
12.61
10.23
0.54
10.77
Implementing
agency
304.36
285.85
15.10
300.95 Direct
Total
10,846.22
9,586.31
506.03
10,092.34
99
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 2017-18, the percentage increase in remuneration of each Director & Company
Secretary during the financial year 2017-18 and comparison of the remuneration of each of the Key
Managerial Personnel against the performance of the company:
Name of the Director/
KMP
Designation
v crore
2017-18
Total
Remuneration
Ratio of remuneration
of director to the
median remuneration $
Percentage
increase in
Remuneration
A. M. Naik
Group Executive Chairman
137.245@
S. N. Subrahmanyan
CEO & Managing Director
R. Shankar Raman
Shailendra Roy
D. K. Sen
M. V. Satish
J. D. Patil
Whole-time Director & Chief
Financial Officer
Whole-time Director & Senior
Executive Vice President
(Power, Heavy Engineering &
Nuclear)
Whole-time Director & Senior
Executive Vice President
(Infrastructure)
Whole-time Director & Senior
Executive Vice President
(Buildings, Minerals & Metals)
Whole-time Director & Senior
Executive Vice President
(Defence)
A. M. Naik
Group Chairman
M. M. Chitale
Independent Director
Subodh Bhargava
Independent Director
M. Damodaran
Independent Director
Vikram Singh Mehta
Independent Director
Sushobhan Sarker ^
Nominee of Life Insurance
Corporate of India
Adil Zainulbhai
Independent Director
Akhilesh Gupta
Independent Director
Sunita Sharma^
Nominee of Life Insurance
Corporate of India
Thomas Mathew T.
Independent Director
31.803
17.223
12.075
8.061
7.381
3.950
2.538
0.407
0.500
0.300
0.277
0.340
0.316
0.195
0.061
0.343
1725.32
399.80
216.51
151.79
73.92
34.13
19.97
0.29
101.34
3.81
92.79
(0.22)
49.66
31.91
5.12
6.29
3.77
3.48
4.27
3.96
2.45
0.75
4.31
*
**
(11.62)
(10.95)
(25.96)
(27.49)
17.23
(21.91)
(4.88)
(58.62)
(10.22)
100
Name of the Director/
KMP
Designation
Ajay Shankar
Independent Director
Subramanian Sarma
Non- Executive Director
Naina Lal Kidwai
Independent Director
Sanjeev Aga
Independent Director
Narayanan Kumar
Independent Director
Mr. Arvind Gupta
Nominee of SUUTI
N. Hariharan
Company Secretary
v crore
2017-18
Total
Remuneration
Ratio of remuneration
of director to the
median remuneration $
Percentage
increase in
Remuneration
0.335
NIL
0.195
0.317
0.195
0.048
1.180
4.21
NIL
2.45
3.99
2.45
0.61
14.84
17.46
NIL
(4.88)
29.76
48.06
***
5.87
$ 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 2017-18.
Part of the remuneration has been paid to the financial institution he/she represents.
Details not given as Mr. J. D. Patil was a director only from 1st July 2017.
^
*
** Details not given as Mr. A. M. Naik was Group Chairman only from 1st October 2017.
*** Details not given as Mr. Arvind Gupta was a director only from 1st July 2017.
@
Includes perquisite value of R 47.982 crore, in respect of stock options granted over the past several years by Larsen &
Toubro Infotech Limited and L&T Technology Services Limited and exercised during the year, Retirement benefits of R 19.381
crore relating to encashment of accumulated past service leave, gratuity of R 55.038 crore and pension of R 1.50 crore.
B) Percentage increase in the median remuneration of all employees in the financial year 2017-18:
The median remuneration of employees of the Company during the financial year was R 7.95 lakh. In the financial
year, there was an increase of 11% in the median remuneration of employees.
C) Number of permanent employees on the rolls of Company as on 31st March 2018:
There were 42,464 permanent employees on the rolls of Company as on March 31, 2018.
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
2017-18 was 11.79% whereas there is decline in the managerial remuneration by 0.20% because a substantial
portion of managerial remuneration is linked to Company performance during the financial year 2017-18. The
Profit after Tax for the year 2017-18 decreased by 1.22% directly impacting the variable component of managerial
remuneration.
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.
101
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, 2018, 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
Firm Registration No P1991MH040400
S. N. ANANTHASUBRAMANIAN
PARTNER
FCS No.: 4206
COP No.: 1774
Date : May 12, 2018
Place : Thane
102
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2018
[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 2018, 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
2018 according to the provisions of:
i.
The Companies Act, 2013 (the Act) and the rules
made thereunder;
ii. The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and the rules made thereunder;
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;
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;
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.
iii. The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
vi. The Company has informed that there are no laws,
which are specifically applicable to the Company.
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;
We have also examined compliance with the applicable
provisions of the following:
(i) Secretarial Standards with regard to Meetings of
Board of Directors (SS-1) and General Meetings (SS-2)
103
issued by The Institute of Company Secretaries of
India;
(ii) SEBI (Listing Obligations and Disclosure Requirements),
Regulations, 2015 and Listing Agreements entered
into by the Company with the National Stock
Exchange of India Limited and BSE Limited.
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:-
zz
zz
The Board of Directors of the Company is duly
constituted with proper balance of Executive Directors
- Non-Executive Directors including Independent
Directors and Women Directors. The changes in the
composition of the Board of Directors which took
place during the period under review were carried out
in compliance with the provisions of the Act.
Adequate notice is given to all Directors of the
schedule of the Board and Committee Meetings,
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.
zz
All decisions of Board and Committee meetings were
carried unanimously.
We further report that based on review of compliance
mechanism established by the Company and on the basis
of the Compliance Certificate(s) issued by the Company
Secretary and taken on record by the Board of Directors
at their meeting(s), we are of the opinion that there are
adequate systems and processes in place in the Company
which is commensurate with the size and operations of
the Company to monitor and ensure compliance with
applicable laws, rules, regulations and guidelines.
We further report that during the audit period the
following events have occurred which had a major bearing
on the Company’s affairs in pursuance of the laws, rules,
regulations, guidelines, standards etc:-
zz
zz
The shareholders at the General Meeting convened
by National Company Law Tribunal, Mumbai Bench
(“NCLT”) on 22nd August 2017, approved a Scheme
of Amalgamation of Spectrum Infotech Private
Limited, a wholly-owned subsidiary of the Company,
with the Company resulting in cancellation of all the
shares held by the Company in Spectrum Infotech
Private Limited. The NCLT approved the said Scheme
vide their Order dated 21st February, 2018;
The Company issued and allotted Bonus Equity Shares
in the ratio of one equity share for every two equity
shares held by the Members as on 14th July 2017.
The said Equity Shares were listed on BSE Ltd and the
National Stock Exchange of India Limited with effect
from 19th July 2017.
For S. N. ANANTHASUBRAMANIAN & CO.
Company Secretaries
Firm Registration No. P1991MH040400
S. N. ANANTHASUBRAMANIAN
PARTNER
FCS No.: 4206
COP No.: 1774
Date: 12th May, 2018
Place: Thane
104
Annexure ‘F’ to the Board Report
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on March 31, 2018
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and
Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN
ii) Registration Date
iii) Name of the Company
iv) Category
L99999MH1946PLC004768
February 7, 1946
LARSEN & TOUBRO LIMITED
PUBLIC LIMITED COMPANY
v) Sub-Category of the Company
COMPANY HAVING SHARE CAPITAL
vi) Address of the Registered office and
contact details
vii) Whether listed company
L&T HOUSE, N. M. MARG, BALLARD ESTATE, MUMBAI - 400 001
TEL: 022-67525656 FAX: 022-67525893
LISTED
viii) Name, Address and Contact details of
Registrar andTransfer Agent, if any
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:-
Sl.
No.
1
2
3
Name and Description of main products/
services
Construction of Buildings
Construction of Roads and Railways
Construction of Utility Projects
NIC Code of the Product/
service
410
421
422
% to total turnover of
the company #
16.22
26.59
38.42
# on the basis of gross turnover
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:
1
2
3
Sl. No Name of the
Address of the Company
CIN/GLN
Company
BHILAI POWER SUPPLY
COMPANY LIMITED
9TH FLOOR, AMBADEEP BUILDING,
14, KASTURBA GANDHI MARG,
CONNAUGHT PLACE, NEW
DELHI-110001
U74899DL1995PLC070704
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
99.90 Section 2(87)(ii)
CHENNAI VISION
DEVELOPERS PRIVATE
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
ESENCIA
TECHNOLOGIES INDIA
PRIVATE LIMITED
3RD FLOOR, 26TH, 5TH BLOCK,
5TH CROSS, KORAMANAGALA,
BENGALURU 560095
U70101TN2008PTC068877
SUBSIDIARY
100.00 Section 2(87)(ii)
U74140KA2011PTC061480
SUBSIDIARY
88.64 Section 2(87)(ii)
105
Sl. No Name of the
Address of the Company
CIN/GLN
U72900TN2015FTC101675
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
82.96 Section 2(87)(ii)
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Company
SYNCORDIS
SOFTWARE SERVICES
INDIA PRIVATE
LIMITED
SYNCORDIS S.A.
LUXEMBOURG
HENIKWON
CORPORATION SDN.
BHD
4TH FLOOR, ROOP EMERALD,
NO.45, NORTH USMAN ROAD
T. NAGAR 600017
105 ROUTE D’ARLON,
L-8009 STRASSEN
RCS LUXEMBOURG B NUM’ERO
105331
2A-03-2, LORONG BATU NILAM
4A, BANDAR BUKIT TINGGI,
41200, KLANG, SELANGOR,
MALAYSIA
HI-TECH ROCK
PRODUCTS &
AGGREGATE LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
KANA CONTROLS
GENERAL TRADING
& CONTRACTING
COMPANY WLL
KESUN IRON AND
STEEL COMPANY
PRIVATE LIMITED
KUDGI TRANSMISSION
LIMITED
L&T - GULF PRIVATE
LIMITED
OFFICE NO. 14, 5TH FLOOR,
AL-FARWANIYA, BLOCK NO. 44,
BLDG. NO. 6, GHASHAM FAHED
AL-BASMAN, KUWAIT
L&T ENERGY CENTRE, NEAR
CHHANI JAKAT NAKA, VADODARA,
GUJARAT-390002
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
SYNCORDIS FRANCE
SARL
8, RUE, PAUL BELMONDO
PARIS, FRANCE - 75012
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
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
BRINDAVAN, PLOT NO. 177,
C.S.T. ROAD, KALINA,SANTACRUZ
(EAST),MUMBAI - 400 098,
MAHARASHTRA, INDIA.
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
106
B105331
SUBSIDIARY
82.96 Section 2(87)(ii)
161535-W
SUBSIDIARY
100.00 Section 2(87)(ii)
U14290TN2008PLC065900
SUBSIDIARY
100.00 Section 2(87)(ii)
10292
SUBSIDIARY
49.00 Section 2(87)(i)
U27100GJ2009PTC055901
SUBSIDIARY
95.00 Section 2(87)(ii)
U40106TN2012GOI111122
SUBSIDIARY
97.45 Section 2(87)(ii)
U74140MH2008PTC177765
SUBSIDIARY
50.0002 Section 2(87)(ii)
514135862
SUBSIDIARY
82.96 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
64.01 Section 2(87)(ii)
U29253MH2011PLC216258
SUBSIDIARY
100.00 Section 2(87)(ii)
U45309TN2008PLC066938
SUBSIDIARY
97.45 Section 2(87)(ii)
Sl. No Name of the
Address of the Company
CIN/GLN
Company
21
L&T CONSTRUCTION
EQUIPMENT LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U29119MH1997PLC109700
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
22
SYNCORDIS LIMITED
L&T DECCAN
TOLLWAYS LIMITED
DEVIHALLI HASSAN
TOLLWAY LIMITED
BEACON HOUSE,
15 CHRISTCHURCH ROAD,
BOURNEMOUTH, DORSET,
ENGLAND, UK - BH13LB
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
L&T ELECTRICAL &
AUTOMATION FZE
WAREHOUSE NO. FZS2ABO5
262158, JEBEL ALI FREE ZONE,
DUBAI, UNITED ARAB EMIRATES
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 FINANCE
HOLDINGS LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
BRINDAVAN, PLOT NO. 177,
C.S.T. ROAD, KALINA,SANTACRUZ
(EAST),MUMBAI - 400 098,
MAHARASHTRA, INDIA.
L&T FINANCE LIMITED TECHNOPOLICE, 7TH FLOOR, A
WING, PLOT NO. 4, BLOCK-BP,
SECTOR- V, SALT LAKE,
KOLKATA -700091
L&T HALOL-SHAMLAJI
TOLLWAY LIMITED
L&T HIMACHAL
HYDROPOWER
LIMITED
L&T HOUSING
FINANCE LIMITED
L&T HOWDEN PRIVATE
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
RAMA COTTAGE, KANLOG,
SHIMLA-171001
BRINDAVAN, PLOT NO. 177,
C.S.T. ROAD, KALINA,SANTACRUZ
(EAST),MUMBAI - 400 098,
MAHARASHTRA, INDIA.
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
10045506
SUBSIDIARY
82.96 Section 2(87)(ii)
U45203TN2011PLC083661
SUBSIDIARY
97.45 Section 2(87)(ii)
U45203TN2010PLC075491
SUBSIDIARY
97.45 Section 2(87)(ii)
107673
SUBSIDIARY
100.00 Section 2(87)(ii)
2050051589
SUBSIDIARY
100.00 Section 2(87)(ii)
U31501MH2007PLC176667
SUBSIDIARY
100.00 Section 2(87)(ii)
L67120MH2008PLC181833
SUBSIDIARY
64.01 Section 2(87)(ii)
U65910WB1993FLC060810
SUBSIDIARY
64.01 Section 2(87)(ii)
U45203TN2008PLC069210
SUBSIDIARY
47.75 Section 2(87)(i)
U40102HP2010PLC031697
SUBSIDIARY
100.00 Section 2(87)(ii)
U45200MH1994PLC259630
SUBSIDIARY
64.01 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
310000400714060 (JIADING)
SUBSIDIARY
82.96 Section 2(87)(ii)
770556-5
SUBSIDIARY
82.96 Section 2(87)(ii)
107
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Sl. No Name of the
Address of the Company
CIN/GLN
Company
L&T INFRA DEBT
FUND LIMITED
PLOT NO. 177, CTS 6970,
6971,VIDYANAGARI MARG, C.S.T.
ROAD, KALINA,SANTACRUZ
(EAST), MUMBAI - 400098
L67100MH2013PLC241104
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
64.01 Section 2(87)(ii)
L&T INFRA
INVESTMENT
PARTNERS ADVISORY
PRIVATE LIMITED
PLOT NO. 177, CTS 6970,
6971,VIDYANAGARI MARG, C.S.T.
ROAD, KALINA,SANTACRUZ
(EAST), MUMBAI - 400098
U67190MH2011PTC218046
SUBSIDIARY
64.01 Section 2(87)(ii)
L&T INFRA
INVESTMENT
PARTNERS TRUSTEE
PRIVATE LIMITED
SYNCORDIS PSF S.A.
PLOT NO. 177, VIDYANAGARI
MARG, C.S.T. ROAD,
KALINA,SANTACRUZ (EAST),
MUMBAI - 400098
U65900MH2011PTC220896
SUBSIDIARY
64.01 Section 2(87)(ii)
105, ROUTE D’ARLON, L-8009,
STRASSEN, LUXEMBOURG
B217963
SUBSIDIARY
82.96 Section 2(87)(ii)
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
BRINDAVAN, PLOT NO. 177,
C.S.T. ROAD, KALINA,SANTACRUZ
(EAST),MUMBAI - 400 098,
MAHARASHTRA, INDIA.
L&T INTERSTATE
ROAD CORRIDOR
LIMITED
L&T INVESTMENT
MANAGEMENT
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
BRINDAVAN, PLOT NO. 177,
C.S.T. ROAD, KALINA,SANTACRUZ
(EAST),MUMBAI - 400 098,
MAHARASHTRA, INDIA.
L&T KOBELCO
MACHINERY PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
KRISHNAGIRI THOPUR
TOLL ROAD LIMITED
L&T 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, NAGOLE,
HYDERABAD, TELANGANA
500039.
L&T MODULAR
FABRICATION YARD
LLC
PO BOX 236, P.C 322, FALAZ AL
QABAIL, SOHAR, SULTANATE OF
OMAN
L&T MUTUAL FUND
TRUSTEE LIMITED
L&T HOUSE BALLARD ESTATE, P.O.
BOX 278, MUMBAI 400001
L&T OVERSEAS
PROJECTS NIGERIA
LIMITED
252E, MURI OKUNOLA STREET,
VICTORIA ISLAND, LAGOS,
NIGERIA
U65993TN2001PLC046691
SUBSIDIARY
97.45 Section 2(87)(ii)
U74140TN1998PLC039864
SUBSIDIARY
100.00 Section 2(87)(ii)
U67190TN2006PLC059527
SUBSIDIARY
64.01 Section 2(87)(ii)
U45203TN2006PLC058735
SUBSIDIARY
97.45 Section 2(87)(ii)
U65991MH1996PLC229572
SUBSIDIARY
64.01 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
70.00 Section 2(87)(ii)
U65993MH1996PLC211198
SUBSIDIARY
64.01 Section 2(87)(ii)
601723
SUBSIDIARY
100.00 Section 2(87)(ii)
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
108
Sl. No Name of the
Address of the Company
CIN/GLN
U45203TN2005PLC056999
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
97.45 Section 2(87)(ii)
54
55
56
Company
PANIPAT ELEVATED
CORRIDOR LIMITED
ESENCIA
TECHNOLOGIES INC
L&T POWER
DEVELOPMENT
LIMITED
57
L&T POWER LIMITED
58
L&T RAJKOT-VADINAR
TOLLWAY LIMITED
59
L&T REALTY FZE
60
L&T REALTY LIMITED
61
62
63
64
65
66
67
68
69
70
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
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
2350 MISSION COLLEGE BLVD
SUITE 490, SANTA CLARA, CA
95054, USA
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
EXECUTIVE SUITE, P.O.BOX
121576, SAIF ZONE,SHARJAH,
U.A.E.
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
GROUND FLOOR, TC-1 BUILDING,
L&T CONSTRUCTION CAMPUS,
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
200, WEST ADAMS STREET,
CHICAGO, ILLINOIS-60606
RR V TOWER, 6TH FLOOR, 33A,
DEVELOPED PLOTS, SIDCO
INDUSTRIAL ESTATE, GUINDY,
CHENNAI-600032
0479598-9
SUBSIDIARY
88.64 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)
02 - 01 - 05714
SUBSIDIARY
100.00 Section 2(87)(ii)
U74200MH2007PLC176358
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2010PLC074501
SUBSIDIARY
97.45 Section 2(87)(ii)
U45206TN2013PLC093395
SUBSIDIARY
97.45 Section 2(87)(ii)
U11200TN2010PTC077214
SUBSIDIARY
60.00 Section 2(87)(ii)
U61100TN2010PTC077217
SUBSIDIARY
60.00 Section 2(87)(ii)
U45203MH2008PLC180029
SUBSIDIARY
100.00 Section 2(87)(ii)
U74900TN2007PLC065356
SUBSIDIARY
97.00 Section 2(87)(ii)
U27109MH2009PTC193699
SUBSIDIARY
74.00 Section 2(87)(ii)
L72900MH2012PLC232169
SUBSIDIARY
88.64 Section 2(87)(ii)
0479598-9
SUBSIDIARY
88.64 Section 2(87)(ii)
U72200TN2006PTC059421
SUBSIDIARY
65.60 Section 2(87)(ii)
109
Sl. No Name of the
Address of the Company
CIN/GLN
Company
L&T TRANSPORTATION
INFRASTRUCTURE
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
U45203TN1997PLC039102
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
98.12 Section 2(87)(ii)
75
L&T VALVES LIMITED
L&T TRUSTEE
COMPANY PRIVATE
LIMITED *
L&T UTTARANCHAL
HYDROPOWER
LIMITED
VADODARA BHARUCH
TOLLWAYS LIMITED
L&T VISION VENTURES
LIMITED
L&T FINANCIAL
CONSULTANTS
LIMITED
WESTERN ANDHRA
TOLLWAYS LIMITED
LTIDPL INDVIT
SERVICES LIMITED
(formerly known as
L&T WESTERN INDIA
TOLLBRIDGE LIMITED)
L&T-MHPS BOILERS
PRIVATE LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
VILLAGE BEDUBAGAR P.O
AUGUSTMUNI RUDRAPRAYAG
Rudra Prayag UR 246421
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
BRINDAVAN, PLOT NO. 177,
C.S.T. ROAD, KALINA,SANTACRUZ
(EAST),MUMBAI - 400 098,
MAHARASHTRA, INDIA.
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
U74990MH2009PTC193936
SUBSIDIARY
100.00 Section 2(87)(ii)
U31401UR2006PLC032329
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2005PLC058417
SUBSIDIARY
97.45 Section 2(87)(ii)
U74999MH1961PLC012188
SUBSIDIARY
100.00 Section 2(87)(ii)
U74210TN2006PLC061845
SUBSIDIARY
68.00 Section 2(87)(ii)
U65100MH2011PLC299024
SUBSIDIARY
64.01 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)
L&T-MHPS TURBINE
GENERATORS PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U31101MH2006PTC166541
SUBSIDIARY
51.00 Section 2(87)(ii)
L&T-SARGENT &
LUNDY LIMITED
LARSEN & TOUBRO
(EAST ASIA) SDN. BHD
LARSEN & TOUBRO
ATCO SAUDIA LLC
LARSEN & TOUBRO
ELECTROMECH LLC
LARSEN & TOUBRO
HEAVY ENGINEERING
LLC
LARSEN & TOUBRO
HYDROCARBON
INTERNATIONAL
LIMITED LLC
LARSEN & TOUBRO
INFOTECH CANADA
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
SUITE 702, 7TH FLOOR, WISMA
HANGSAM, JALAN HANG LEKIR,
50000 KUALA LUMPUR, MALAYSIA
U74210MH1995PLC088099
SUBSIDIARY
50.0001 Section 2(87)(ii)
390357-T
SUBSIDIARY
30.00 Section 2(87)(i)
AL-TURKI BUILDING, KING KHALED
STREET, P.O. BOX 91, DAMMAM
2050055625
P.O. BOX 1999, RUWI, POSTAL
CODE 112, MUSCAT
1/04445/1
P.O. BOX 281, POSTAL CODE 325,
W LIWA, SULTANATE OF OMAN
1042928
SUBSIDIARY
100.00 Section 2(87)(ii)
SUBSIDIARY
70.00 Section 2(87)(ii)
SUBSIDIARY
70.00 Section 2(87)(ii)
P.O. BOX 6391, AL KHOBAR
34423, KINGDOM OF SAUDI
ARABIA
2051053464
SUBSIDIARY
100.00 Section 2(87)(ii)
2810, MATHESON BLVD EAST
SUITE 500, MISSISSAUGA, ONL4W
4X7 CANADA
1415026
SUBSIDIARY
82.96 Section 2(87)(ii)
71
72
73
74
76
77
78
79
80
81
82
83
84
85
86
87
88
110
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
Sl. No Name of the
Address of the Company
CIN/GLN
Company
LARSEN & TOUBRO
INFOTECH GMBH
LARSEN & TOUBRO
INFOTECH LIMITED
EURO-ASIA BUSINESS CENTRE,
MESSE-ALLEE 2, D-04356, LEIPZIG,
GERMANY
HRB15958
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
82.96 Section 2(87)(ii)
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L72900MH1996PLC104693
SUBSIDIARY
82.96 Section 2(87)(ii)
LARSEN & TOUBRO
INFOTECH LLC
1220, N. MARKET ST., SUITE 806,
WILMINGTON, DE 19801, USA
270596763
SUBSIDIARY
82.96 Section 2(87)(ii)
LARSEN & TOUBRO
INTERNATIONAL FZE
LARSEN &
TOUBRO KUWAIT
CONSTRUCTION
GENERAL
CONTRACTING
COMPANY, WITH
LIMITED LIABILITY
LARSEN & TOUBRO
LLC
LARSEN & TOUBRO
OMAN LLC
LARSEN & TOUBRO
QATAR LLC
L&T MBDA MISSILE
SYSTEMS LIMITED
LARSEN & TOUBRO
SAUDI ARABIA LLC
LARSEN & TOUBRO
TANDD SA (PTY)
LIMITED
OFFICE LOB 16 G 08, POST
BOX 41558, HAMRIYAH FREE
ZONE, SHARJAH, UNITED ARAB
EMIRATES
PLOT NO. 3, BUILDING NO.1,
SHARQ, KUWAIT
113, BARKSDALE PROFESSIONAL
CENTRE, NEWARK CITY, COUNTRY
OF NEW CASTLE, G56 ZIP
CODE-19711, U.S.A
0067
SUBSIDIARY
100.00 Section 2(87)(ii)
117668
SUBSIDIARY
49.00 Section 2(87)(i)
6 DEL.C 18-101
SUBSIDIARY
99.19 Section 2(87)(ii)
P.O. BOX 1127, RUWI, POSTAL
CODE 112, SULTANATE OF OMAN
1/40304/4
SUBSIDIARY
65.00 Section 2(87)(ii)
P.O. BOX 24399, SH. THAMOUR
BLDG., MEZZANINE FLOOR,
AL-HANDASA AREA, NEAR JAIDAH
FLYOVER, B RING ROAD, DOHA,
QATAR
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
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
27454
SUBSIDIARY
49.00 Section 2(87)(i)
U29308MH2017PLC293402
SUBSIDIARY
51.00 Section 2(87)(i)
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
LARSEN TOUBRO
ARABIA LLC
MUDIT CEMENT
PRIVATE LIMITED
NABHA POWER
LIMITED
PNG TOLLWAY
LIMITED
ALMADA TOWER, PRINCE TURKI
STREET, AL KHOBAR, SAUDI
ARABIA
5TH FLOOR, DCM BUILDING,
16, BARAKHAMBA ROAD,
CONNAUGHT 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
PT TAMCO INDONESIA JALAN RAYA PASAR SERANG, NO.
15, KANDANG RODA, CIKARANG
BEKASI 17330, INDONESIA
2011/007226/07
SUBSIDIARY
62.14 Section 2(87)(ii)
2051049523
SUBSIDIARY
75.00 Section 2(87)(ii)
U26942DL1990PTC041941
SUBSIDIARY
64.01 Section 2(87)(ii)
U40102PB2007PLC031039
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2009PLC070741
SUBSIDIARY
72.77 Section 2(87)(ii)
C2-18.177.HT.01.01.HT 94
SUBSIDIARY
100.00 Section 2(87)(ii)
111
Sl. No Name of the
Address of the Company
CIN/GLN
Company
AHU-0110258.AH.01.09
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
95.00 Section 2(87)(ii)
PT. LARSEN & TOUBRO
HYDROCARBON
ENGINEERING
INDONESIA
THE CITY TOWER, 12TH FLOOR,
UNIT 1-N, J1.MH., THAMRIN
NO.81, CENTRAL JAKARTA,
INDONESIA 10310
RAYKAL ALUMINIUM
COMPANY PRIVATE
LIMITED
ANNAPURNA COMPLEX, 559,
LEWIS ROAD, BHUBANESWAR,
KHORDHA-751014
U13203OR1999PTC005673
SUBSIDIARY
75.50 Section 2(87)(ii)
2159287
SUBSIDIARY
100.00 Section 2(87)(ii)
1503665631
SUBSIDIARY
50.00 Section 2(87)(i)
ACN006140512
SUBSIDIARY
100.00 Section 2(87)(ii)
775268-H
SUBSIDIARY
100.00 Section 2(87)(ii)
01201246
SUBSIDIARY
100.00 Section 2(87)(ii)
CL2106
SUBSIDIARY
100.00 Section 2(87)(ii)
U74999TN2016PTC103769
SUBSIDIARY
97.00 Section 2(87)(ii)
THE WOODROPE BUILDING,
WOODROLFE ROAD, TOLLESBURY,
MALDONESSEX CM9 8SE, UNITED
KINGDOM
“AGHA NEMATULLA STREET 224,
NARIMANOV DISTRICT
BAKU CITY, ALGERIA”
31, KITCHEN ROAD, DANDENONG,
VICTORIA 3175, AUSTRALIA
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
NO.22, L&T CONSTRUCTION
COMPLEX, MOUNT POONAMALLE
ROAD, MANAPAKKAM,
CHENNAI - 600089
C/JOSE ABASCAL, 56 2ND FLOOR,
MADRID
B87472072
SUBSIDIARY
82.96 Section 2(87)(ii)
c/o, OBERHAMMER,
RECHTSANWALTE GMBH,
KARLSPLATZ, 3/1, VIENNA
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
FN435491D
SUBSIDIARY
82.96 Section 2(87)(ii)
U72200PN2012PTC145539
SUBSIDIARY
82.96 Section 2(87)(ii)
N-2017020633
SUBSIDIARY
82.96 Section 2(87)(ii)
U45309MH2016PTC283661
SUBSIDIARY
100.00 Section 2(87)(ii)
U45400MH2017PTC292586
SUBSIDIARY
100.00 Section 2(87)(ii)
106
107
108
109
110
111
SERVOWATCH
SYSTEMS LIMITED
L&T HYDROCARBON
CASPIAN LLC
TAMCO ELECTRICAL
INDUSTRIES
AUSTRALIA PTY LTD
TAMCO SWITCHGEAR
(MALAYSIA) SDN BHD
112
THALEST LIMITED
113
L&T GLOBAL
HOLDINGS LIMITED
114
115
116
117
MARINE
INFRASTRUCTURE
DEVELOPER PRIVATE
LIMITED
L&T INFORMATION
TECHNOLOGY SPAIN
SOCIEDAD LIMITADA
LARSEN & TOUBRO
INFOTECH AUSTRIA
GMBH
AUGMENT IQ DATA
SCIENCES PRIVATE
LIMITED @
118
L&T INFOTECH S. DE.
RL.C.V
SAHIBGANJ GANGES
BRIDGE-COMPANY
PRIVATE LIMITED
L&T INFRA
CONTRACTORS
PRIVATE COMPANY
LIMITED
119
120
121
122
112
LTH MILCOM PRIVATE
LIMITED
L & T HOUSE, BALLARD ESTATE,
MUMBAI 400001
SEAWOODS REALTY
PRIVATE LIMITED *
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)
Sl. No Name of the
Address of the Company
CIN/GLN
U70103MH2016PTC285466
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
Company
123
SEAWOODS RETAIL
PRIVATE LIMITED *
ARDOM TELECOM
PRIVATE LIMITED
GUJARAT LEATHER
INDUSTRIES LIMITED
@@
INDIRAN
ENGINEERING
PROJECTS AND
SYSTEMS KISH (LLC)
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
609B & 610, 6TH FLOOR, WELL
DONE TECH PARK, SOHNA ROAD,
SECTOR-41, GURGAON - 122018
NO 3001, GIDC INDUSTRIAL
ESTATE, ANKLESHWAR, GUJARAT
U64100HR2009PTC048269
ASSOCIATE
7.76 Section 2(6)
U18104GJ1978SGC003134
ASSOCIATE
50.00 Section 2(6)
POST BOX 1267, NEHA
APARTMENT, BAZAAR-E-DANOOS,
KISH ISLAND, IRAN
3744
ASSOCIATE
50.00 Section 2(6)
INTERNATIONAL
SEAPORTS (HALDIA)
PRIVATE LIMITED
FLAT NO. 27, 5TH FLOOR,
KOHINOOR BUILDING, 105, PARK
STREET, KOLKATA 700016
U45205WB1999PTC090733
ASSOCIATE
21.74 Section 2(6)
L&T CAMP FACILITIES
LLC
P. O. BOX 44357, DUBAI, UNITED
ARAB EMIRATES
600640
ASSOCIATE
49.00 Section 2(6)
L& T-CHIYODA
LIMITED
LARSEN & TOUBRO
QATAR & HBK
CONTRACTING LLC
MAGTORQ PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U28920MH1994PLC083035
ASSOCIATE
50.00 Section 2(6)
P. O. BOX 1362, DOHA, QATAR
28634
ASSOCIATE
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 LIMITED^
402, 36 TURNER ROAD,BANDRA
WEST, MUMBAI - 400050
FEEDBACK INFRA
PRIVATE LIMITED ^^
KMC INFRATECH
ROAD HOUSINGS
LIMITED^^^
311, 3RD FLOOR,VARDHAMAN
PLAZA, POCKET 7, PLOT NO. 6,
SECTOR 12, DWARKA,
NEW DELHI -110078
DOOR NO. 1-80/40/SP/58-65,
SHILPA HOMES LAYOUT,
GACHIBOWLI,
HYDERABAD - 500032
U65923MH2007PTC168721
ASSOCIATE
23.87 Section 2(6)
U74899DL1990PTC040630
ASSOCIATE
0.00 Section 2(6)
U74900TG2014PLC095703
ASSOCIATE
0 Section 2(6)
1
2
3
4
5
6
7
8
9
10
11
^^ The Associate is sold on March 19,2018
* Under Process of Strike Off
^^^ The Associate is sold on September 7,2017
@@ The Company is under Liquidation
@ Merged with Larsen & Toubro Infotech Limited
% Merged with Larsen & Toubro Limited w.e.f April 1,2017
113
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
% Change
during the
year
% of Total
Shares
A. Promoters
(1)
Indian
a)
b)
c)
d)
e)
f)
Individual/HUF
Central Govt
State Govt (s)
Bodies Corp.
Banks / FI
Any Other….
Sub-total (A) (1):-
(2) Foreign
a) NRIs -Individuals
b) Other –Individuals
c)
d)
e)
Bodies Corp.
Banks / FI
Any Other….
Sub-total (A) (2):-
Total shareholding of Promoter
(A) =(A)(1)+(A)(2)
B.
Public Shareholding
(1)
Institutions
a) MutualFunds
b)
c)
d)
e)
f)
g)
h)
Banks / FI
Central Govt
State Govt(s)
Venture Capital Funds
Insurance Companies
FIIs
Foreign Venture Capital
Funds
Sub-total (B)(1):-
(2) Non-Institutions
a)
Bodies Corp.
i)
Indian
ii) Overseas
b)
Individuals
i)
ii)
Individual
shareholders
holding nominal
share capital upto
R 2 lakh
Individual
shareholders holding
nominal share
capital in excess of
R 2 lakh
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
107,273,904
67,089,940
1,874,190
0
0
185,203,662
20,810,053
0
12,822
31,933
0
0
0
107,286,726
67,121,873
1,874,190
0
0
11.50
202,331,530
7.19
0.20
0.00
0.00
36,983,534
3,077,602
0
0
13,878
46,100
0
0
0
202,345,408
37,029,634
3,077,602
0
0
450
185,204,112
19.85
297,215,504
675
297,216,179
0
0
20,810,053
0
2.23
0.00
962,363
52,558
1,014,921
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
14.44
2.64
0.22
0.00
0.00
21.21
0.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.94
-4.55
0.02
0.00
0.00
1.36
-2.16
0.00
382,251,749
45,205
382,296,954
40.98
540,570,533
113,211
540,683,744
38.58
-2.39
66,318,379
341,383
66,634,899
280,167
23,431
303,598
7.14
0.03
92,102,289
411,087
92,513,376
40,666
3,260
43,926
6.60
0.00
163,335,385
17,670,044
181,005,429
19.40
241,086,176
24,053,909
265,140,085
18.92
-0.54
-0.03
0.00
-0.48
19,459,126
218,526
19,677,652
2.11
29,385,457
0
29,385,457
2.10
-0.01
114
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
% Change
during the
year
% of Total
Shares
c)
Others (specify)
i)
ii)
iii)
Foreign Nationals
Foreign Portfolio
Investors
Directors & Relatives
1,509,024
250
1,509,274
372,138
14,470
386,608
0.16
0.04
1,421,590
547,173
375
1,421,965
21,705
568,878
140,322,703
0
140,322,703
15.04
257,126,930
0
257,126,930
iv) Non-Residents
8,064,466
390,360
8,454,826
v)
vi)
Trust
114,734,515
17,766
114,752,281
Qualified Foreign
Investor
0
0
0
0.91
12.30
0.00
12,173,050
540,579
12,713,629
172,101,772
26,649
172,128,421
0
0
0
Sub-total (B)(2):-
514,395,903
18,676,230
533,047,270
57.13
805,985,103
25,057,564
831,042,667
Total Public Shareholding
(B)=(B)(1)+ (B)(2)
C.
Shares held by Custodian
for GDRs & ADRs
896,647,652
18,721,435
915,344,224
98.11 1,346,555,636
25,170,775 1,371,726,411
17,621,579
0
17,621,579
1.89
29,643,045
0
29,643,045
0.10
0.04
18.35
0.91
12.28
0.00
59.30
97.88
2.12
Grand Total (A+B+C)
914,269,231
18,721,435
932,965,803
100.00 1,376,198,681
25,170,775 1,401,369,456
100.00
(ii) Shareholding of Promoters:
0.00
-0.06
0.00
3.31
0.00
-0.02
0.00
2.17
-0.23
0.23
0.00
Sl
Shareholders Name
Shareholding at the beginning of the year
No. of Shares
%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
115
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs
and ADRs):
Name of the Share Holder
Date
Sl.
No.
1
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 etc.)
2
3
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 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 etc.)
4
HDFC TRUSTEE CO LTD A/C
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 etc.)
Shareholding at the
beginning of the Year
23/06/2017
21/07/2017
26/01/2018
26/01/2018
09/03/2018
09/03/2018
23/03/2018
23/03/2018
At the end of the year
Shareholding at the
beginning of the Year
21/07/2017
At the end of the year
Shareholding at the
beginning of the Year
16/06/2017
23/06/2017
21/07/2017
28/07/2017
22/09/2017
17/11/2017
24/11/2017
At the end of the year
Shareholding at the
beginning of the Year
07/04/2017
07/04/2017
14/04/2017
14/04/2017
21/04/2017
21/04/2017
28/04/2017
116
Reason
Increase/
Decrease
in share
holding
17887716 Transfer
85529855 Bonus
11400 Transfer
-11400 Transfer
30000 Transfer
-30000 Transfer
80000 Transfer
-80000 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
16.42
153172007
171059723
256589578
256600978
256589578
256619578
256589578
256669578
256589578
256589578
114752281
18.33
18.32
18.32
18.31
18.31
18.31
18.32
18.31
18.31
12.30
12.29
57376140 Bonus
172128421
172128421
61102860
12.28
6.55
2140 Transfer
-23725716 Transfer
18689642 Bonus
1070 Transfer
535 Transfer
-19551346 Transfer
-1261792 Transfer
6395 Transfer
-43001 Transfer
255000 Transfer
-286 Transfer
221000 Transfer
-5676 Transfer
655771 Transfer
61105000
37379284
56068926
56069996
56070531
36519185
35257393
35257393
30704758
30711153
30668152
30923152
30922866
31143866
31138190
31793961
6.55
4.00
4.00
4.00
4.00
2.61
2.52
2.52
3.29
3.29
3.29
3.31
3.31
3.34
3.34
3.41
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 etc.)
28/04/2017
05/05/2017
05/05/2017
12/05/2017
12/05/2017
19/05/2017
19/05/2017
26/05/2017
26/05/2017
02/06/2017
02/06/2017
09/06/2017
09/06/2017
16/06/2017
16/06/2017
23/06/2017
23/06/2017
30/06/2017
30/06/2017
07/07/2017
07/07/2017
14/07/2017
14/07/2017
21/07/2017
28/07/2017
28/07/2017
04/08/2017
04/08/2017
11/08/2017
11/08/2017
18/08/2017
18/08/2017
25/08/2017
25/08/2017
01/09/2017
08/09/2017
08/09/2017
15/09/2017
15/09/2017
22/09/2017
Reason
Increase/
Decrease
in share
holding
-138518 Transfer
1291 Transfer
-175 Transfer
119000 Transfer
-21606 Transfer
203 Transfer
-433 Transfer
200000 Transfer
-61555 Transfer
247040 Transfer
-7776 Transfer
200000 Transfer
-252291 Transfer
132803 Transfer
-48141 Transfer
658328 Transfer
-1337 Transfer
215509 Transfer
-168500 Transfer
534636 Transfer
-188500 Transfer
67089 Transfer
-78053 Transfer
16815804 Bonus
222500 Transfer
-220406 Transfer
101127 Transfer
-93474 Transfer
62375 Transfer
-2361 Transfer
51560 Transfer
-72 Transfer
113429 Transfer
-22500 Transfer
786393 Transfer
5907 Transfer
-280 Transfer
1906000 Transfer
-9134 Transfer
492500 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
3.39
3.39
3.39
3.40
3.40
3.40
3.40
3.42
3.42
3.44
3.44
3.46
3.44
3.45
3.45
3.52
3.52
3.54
3.52
3.58
3.56
3.57
3.56
3.57
3.59
3.57
3.58
3.57
3.58
3.58
3.58
3.58
3.59
3.59
3.64
3.64
3.64
3.78
3.78
3.81
117
31655443
31656734
31656559
31775559
31753953
31754156
31753723
31953723
31892168
32139208
32131432
32331432
32079141
32211944
32163803
32822131
32820794
33036303
32867803
33402439
33213939
33281028
33202975
50018779
50241279
50020873
50122000
50028526
50090901
50088540
50140100
50140028
50253457
50230957
51017350
51023257
51022977
52928977
52919843
53412343
Name of the Share Holder
Date
Sl.
No.
22/09/2017
29/09/2017
29/09/2017
06/10/2017
06/10/2017
13/10/2017
13/10/2017
20/10/2017
20/10/2017
27/10/2017
27/10/2017
31/10/2017
31/10/2017
03/11/2017
03/11/2017
10/11/2017
10/11/2017
17/11/2017
17/11/2017
24/11/2017
24/11/2017
01/12/2017
01/12/2017
08/12/2017
15/12/2017
15/12/2017
22/12/2017
22/12/2017
29/12/2017
29/12/2017
05/01/2018
05/01/2018
12/01/2018
12/01/2018
19/01/2018
19/01/2018
26/01/2018
02/02/2018
02/02/2018
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
118
Reason
Increase/
Decrease
in share
holding
-1761 Transfer
586157 Transfer
-293798 Transfer
953263 Transfer
-101 Transfer
1080188 Transfer
-221 Transfer
9000 Transfer
-177 Transfer
218 Transfer
-3814 Transfer
465 Transfer
-251 Transfer
8987 Transfer
-84596 Transfer
6930 Transfer
-50458 Transfer
302016 Transfer
-100077 Transfer
1107363 Transfer
-76 Transfer
154 Transfer
-76 Transfer
465201 Transfer
1108126 Transfer
-211 Transfer
307454 Transfer
-2700 Transfer
86000 Transfer
-5460 Transfer
300148 Transfer
-57915 Transfer
701380 Transfer
-452 Transfer
100737 Transfer
-527158 Transfer
-656800 Transfer
867563 Transfer
-3789 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
3.81
3.86
3.83
3.90
3.90
3.98
3.98
3.98
3.98
3.98
3.98
3.98
3.98
3.98
3.97
3.98
3.97
3.99
3.98
4.06
4.06
4.06
4.06
4.10
4.18
4.18
4.20
4.20
4.20
4.20
4.22
4.22
4.27
4.27
4.28
4.24
4.19
4.25
4.25
53410582
53996739
53702941
54656204
54656103
55736291
55736070
55745070
55744893
55745111
55741297
55741762
55741511
55750498
55665902
55672832
55622374
55924390
55824313
56931676
56931600
56931754
56931678
57396879
58505005
58504794
58812248
58809548
58895548
58890088
59190236
59132321
59833701
59833249
59933986
59406828
58750028
59617591
59613802
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 etc.)
5
ICICI PRUDENTIAL CAPITAL
PROTECTION ORIENTED FUND-
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
09/02/2018
09/02/2018
16/02/2018
16/02/2018
23/02/2018
23/02/2018
02/03/2018
02/03/2018
09/03/2018
09/03/2018
16/03/2018
23/03/2018
23/03/2018
30/03/2018
30/03/2018
At the end of the year
Shareholding at the
beginning of the Year
07/04/2017
07/04/2017
14/04/2017
14/04/2017
21/04/2017
28/04/2017
28/04/2017
05/05/2017
05/05/2017
12/05/2017
12/05/2017
19/05/2017
19/05/2017
26/05/2017
26/05/2017
02/06/2017
02/06/2017
09/06/2017
09/06/2017
16/06/2017
16/06/2017
23/06/2017
Reason
Increase/
Decrease
in share
holding
65862 Transfer
-1308260 Transfer
1718 Transfer
-331815 Transfer
128226 Transfer
-990500 Transfer
322118 Transfer
-300000 Transfer
62437 Transfer
-60000 Transfer
1228430 Transfer
2971 Transfer
-1462089 Transfer
3541 Transfer
-327069 Transfer
32740 Transfer
-910768 Transfer
206513 Transfer
-217163 Transfer
30943 Transfer
176235 Transfer
-2466 Transfer
221504 Transfer
-292001 Transfer
569319 Transfer
-110932 Transfer
458973 Transfer
-176770 Transfer
1887 Transfer
-21000 Transfer
933950 Transfer
-856 Transfer
62000 Transfer
-202324 Transfer
136327 Transfer
-28678 Transfer
2729 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
4.26
4.17
4.17
4.14
4.15
4.08
4.10
4.08
4.09
4.08
4.17
4.17
4.07
4.07
4.04
4.04
1.99
2.00
1.90
1.92
1.90
1.90
1.92
1.92
1.94
1.91
1.97
1.96
2.01
1.99
1.99
1.99
2.09
2.09
2.10
2.07
2.09
2.09
2.09
119
59679664
58371404
58373122
58041307
58169533
57179033
57501151
57201151
57263588
57203588
58432018
58434989
56972900
56976441
56649372
56649372
18598830
18631570
17720802
17927315
17710152
17741095
17917330
17914864
18136368
17844367
18413686
18302754
18761727
18584957
18586844
18565844
19499794
19498938
19560938
19358614
19494941
19466263
19468992
Name of the Share Holder
Date
Sl.
No.
23/06/2017
30/06/2017
30/06/2017
07/07/2017
07/07/2017
14/07/2017
21/07/2017
28/07/2017
28/07/2017
04/08/2017
04/08/2017
11/08/2017
11/08/2017
18/08/2017
18/08/2017
25/08/2017
25/08/2017
01/09/2017
08/09/2017
08/09/2017
15/09/2017
15/09/2017
22/09/2017
22/09/2017
29/09/2017
29/09/2017
06/10/2017
06/10/2017
13/10/2017
13/10/2017
20/10/2017
20/10/2017
27/10/2017
27/10/2017
31/10/2017
31/10/2017
03/11/2017
03/11/2017
10/11/2017
10/11/2017
17/11/2017
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
120
Reason
Increase/
Decrease
in share
holding
-267638 Transfer
105827 Transfer
-458508 Transfer
196738 Transfer
-401129 Transfer
-616386 Transfer
9188625 Bonus
802533 Transfer
-82 Transfer
1363572 Transfer
-262 Transfer
423405 Transfer
-355 Transfer
1272352 Transfer
-543750 Transfer
1540970 Transfer
-13500 Transfer
284860 Transfer
90656 Transfer
-167 Transfer
2824 Transfer
-21894 Transfer
1142 Transfer
-106059 Transfer
334750 Transfer
-130326 Transfer
545000 Transfer
-6137 Transfer
5485 Transfer
-160 Transfer
264388 Transfer
-2705 Transfer
599471 Transfer
-861587 Transfer
310 Transfer
-1640 Transfer
133 Transfer
-5353 Transfer
187352 Transfer
-235355 Transfer
4176 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
2.06
2.07
2.02
2.04
2.00
1.93
1.94
2.00
2.00
2.10
2.10
2.13
2.13
2.22
2.18
2.29
2.29
2.31
2.32
2.32
2.32
2.31
2.31
2.31
2.33
2.32
2.36
2.36
2.36
2.36
2.38
2.38
2.42
2.36
2.36
2.36
2.36
2.36
2.37
2.36
2.36
19201354
19307181
18848673
19045411
18644282
18027896
27216521
28019054
28018972
29382544
29382282
29805687
29805332
31077684
30533934
32074904
32061404
32346264
32436920
32436753
32439577
32417683
32418825
32312766
32647516
32517190
33062190
33056053
33061538
33061378
33325766
33323061
33922532
33060945
33061255
33059615
33059748
33054395
33241747
33006392
33010568
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
17/11/2017
24/11/2017
24/11/2017
01/12/2017
01/12/2017
08/12/2017
08/12/2017
15/12/2017
15/12/2017
22/12/2017
22/12/2017
29/12/2017
29/12/2017
05/01/2018
05/01/2018
12/01/2018
12/01/2018
19/01/2018
19/01/2018
26/01/2018
26/01/2018
02/02/2018
02/02/2018
09/02/2018
09/02/2018
16/02/2018
16/02/2018
23/02/2018
23/02/2018
02/03/2018
02/03/2018
09/03/2018
09/03/2018
16/03/2018
16/03/2018
23/03/2018
23/03/2018
30/03/2018
At the end of the year
Reason
Increase/
Decrease
in share
holding
-598963 Transfer
21988495 Transfer
-327825 Transfer
910082 Transfer
-2641210 Transfer
957548 Transfer
-2139054 Transfer
23976 Transfer
-307886 Transfer
945 Transfer
-2890734 Transfer
152 Transfer
-2141333 Transfer
43500 Transfer
-680070 Transfer
13567 Transfer
-703699 Transfer
864226 Transfer
-3449899 Transfer
459935 Transfer
-3180000 Transfer
221170 Transfer
-2334507 Transfer
2164 Transfer
-843193 Transfer
488036 Transfer
-1697867 Transfer
730841 Transfer
-762283 Transfer
215008 Transfer
-644641 Transfer
4288 Transfer
-2520414 Transfer
9519 Transfer
-1443375 Transfer
140271 Transfer
-2403693 Transfer
239173 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
32411605
54400100
54072275
54982357
52341147
53298695
51159641
51183617
50875731
50876676
47985942
47986094
45844761
45888261
45208191
45221758
44518059
45382285
41932386
42392321
39212321
39433491
37098984
37101148
36257955
36745991
35048124
35778965
35016682
35231690
34587049
34591337
32070923
32080442
30637067
30777338
28373645
28612818
28612818
% of total
shares
of the
Company
2.31
3.88
3.86
3.92
3.74
3.80
3.65
3.65
3.63
3.63
3.43
3.43
3.27
3.28
3.23
3.23
3.18
3.24
2.99
3.03
2.80
2.81
2.65
2.65
2.59
2.62
2.50
2.55
2.50
2.51
2.47
2.47
2.29
2.29
2.19
2.20
2.02
2.04
2.04
121
Name of the Share Holder
Date
Sl.
No.
6
ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LIMITED
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
Shareholding at the
beginning of the Year
07/04/2017
14/04/2017
21/04/2017
28/04/2017
05/05/2017
12/05/2017
19/05/2017
26/05/2017
02/06/2017
09/06/2017
16/06/2017
23/06/2017
30/06/2017
07/07/2017
14/07/2017
21/07/2017
28/07/2017
04/08/2017
11/08/2017
18/08/2017
25/08/2017
01/09/2017
01/09/2017
08/09/2017
15/09/2017
22/09/2017
29/09/2017
06/10/2017
13/10/2017
20/10/2017
27/10/2017
31/10/2017
03/11/2017
10/11/2017
17/11/2017
24/11/2017
01/12/2017
08/12/2017
Reason
Increase/
Decrease
in share
holding
108957 Transfer
-9329 Transfer
-254216 Transfer
86782 Transfer
11722 Transfer
-13430 Transfer
-29043 Transfer
-255378 Transfer
-45995 Transfer
-84611 Transfer
-167840 Transfer
18651 Transfer
64491 Transfer
195912 Transfer
193723 Transfer
8975522 Bonus
-218105 Transfer
-76870 Transfer
-115617 Transfer
-14152 Transfer
68598 Transfer
1267794 Transfer
-1716958 Transfer
151280 Transfer
-139858 Transfer
80694 Transfer
13919 Transfer
253860 Transfer
-501026 Transfer
59202 Transfer
-366589 Transfer
9341 Transfer
1155 Transfer
-611911 Transfer
-108888 Transfer
-42355 Transfer
-4114 Transfer
123 Transfer
122
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.96
18326578
18435535
18426206
18171990
18258772
18270494
18257064
18228021
17972643
17926648
17842037
17674197
17692848
17757339
17953251
18146974
27122496
26904391
26827521
26711904
26697752
26766350
28034144
26317186
26468466
26328608
26409302
26423221
26677081
26176055
26235257
25868668
25878009
25879164
25267253
25158365
25116010
25111896
25112019
1.98
1.97
1.95
1.96
1.96
1.96
1.95
1.93
1.92
1.91
1.89
1.90
1.90
1.92
1.94
1.94
1.92
1.92
1.91
1.91
1.91
2.00
1.88
1.89
1.88
1.89
1.89
1.90
1.87
1.87
1.85
1.85
1.85
1.80
1.80
1.79
1.79
1.79
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
7
GENERAL INSURANCE
CORPORATION OF INDIA
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
15/12/2017
22/12/2017
29/12/2017
05/01/2018
12/01/2018
19/01/2018
19/01/2018
26/01/2018
02/02/2018
09/02/2018
16/02/2018
23/02/2018
23/02/2018
02/03/2018
02/03/2018
09/03/2018
16/03/2018
23/03/2018
30/03/2018
At the end of the year
Shareholding at the
beginning of the Year
07/04/2017
14/04/2017
28/04/2017
05/05/2017
19/05/2017
26/05/2017
23/06/2017
21/07/2017
28/07/2017
04/08/2017
15/09/2017
27/10/2017
31/10/2017
10/11/2017
17/11/2017
22/12/2017
05/01/2018
09/02/2018
Reason
Increase/
Decrease
in share
holding
-40 Transfer
8059 Transfer
104463 Transfer
-128971 Transfer
92071 Transfer
35291 Transfer
-25302 Transfer
99533 Transfer
-59044 Transfer
375382 Transfer
-74088 Transfer
11261 Transfer
-5362 Transfer
24986 Transfer
-53303 Transfer
9010 Transfer
139043 Transfer
4142 Transfer
104213 Transfer
-50000 Transfer
-68124 Transfer
-35000 Transfer
-15000 Transfer
-39782 Transfer
-10218 Transfer
500000 Transfer
8550000 Bonus
-60000 Transfer
-40000 Transfer
-60000 Transfer
-36000 Transfer
-14000 Transfer
-25601 Transfer
-24399 Transfer
-50000 Transfer
-50000 Transfer
-35000 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.79
1.79
1.80
1.79
1.80
1.80
1.80
1.81
1.80
1.83
1.82
1.82
1.82
1.82
1.82
1.82
1.83
1.83
1.84
1.84
1.80
1.80
1.79
1.79
1.78
1.78
1.78
1.83
1.83
1.83
1.82
1.82
1.82
1.82
1.81
1.81
1.81
1.81
1.80
123
25111979
25120038
25224501
25095530
25187601
25222892
25197590
25297123
25238079
25613461
25539373
25550634
25545272
25570258
25516955
25525965
25665008
25669150
25773363
25773363
16818124
16768124
16700000
16665000
16650000
16610218
16600000
17100000
25650000
25590000
25550000
25490000
25454000
25440000
25414399
25390000
25340000
25290000
25255000
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.79
1.78
1.77
1.77
1.76
1.76
0.97
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
8
RELIANCE CAPITAL TRUSTEE
COMPANY LIMITED
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
16/02/2018
02/03/2018
09/03/2018
16/03/2018
23/03/2018
At the end of the year
Shareholding at the
beginning of the Year
07/04/2017
07/04/2017
14/04/2017
21/04/2017
28/04/2017
28/04/2017
05/05/2017
12/05/2017
12/05/2017
19/05/2017
19/05/2017
26/05/2017
26/05/2017
02/06/2017
02/06/2017
09/06/2017
16/06/2017
23/06/2017
30/06/2017
30/06/2017
07/07/2017
07/07/2017
14/07/2017
14/07/2017
21/07/2017
28/07/2017
04/08/2017
04/08/2017
11/08/2017
11/08/2017
18/08/2017
18/08/2017
Reason
Increase/
Decrease
in share
holding
-155000 Transfer
-120000 Transfer
-114500 Transfer
-115500 Transfer
-50000 Transfer
1917 Transfer
-476998 Transfer
24 Transfer
109681 Transfer
1571 Transfer
-30979 Transfer
-3071 Transfer
104502 Transfer
-2246 Transfer
18000 Transfer
-1566 Transfer
5500 Transfer
-176282 Transfer
138 Transfer
-102912 Transfer
-1145 Transfer
-215 Transfer
-1704 Transfer
13000 Transfer
-22 Transfer
11 Transfer
-1656 Transfer
25041 Transfer
-21696 Transfer
4219951 Bonus
-5571 Transfer
240070 Transfer
-53382 Transfer
56400 Transfer
-656004 Transfer
155430 Transfer
-248383 Transfer
124
25100000
24980000
24865500
24750000
24700000
24700000
9013335
9015252
8538254
8538278
8647959
8649530
8618551
8615480
8719982
8717736
8735736
8734170
8739670
8563388
8563526
8460614
8459469
8459254
8457550
8470550
8470528
8470539
8468883
8493924
8472228
12692179
12686608
12926678
12873296
12929696
12273692
12429122
12180739
0.97
0.92
0.91
0.93
0.93
0.92
0.92
0.93
0.93
0.94
0.94
0.94
0.92
0.92
0.91
0.91
0.91
0.91
0.91
0.91
0.91
0.91
0.91
0.91
0.91
0.91
0.92
0.92
0.92
0.88
0.89
0.87
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
25/08/2017
25/08/2017
01/09/2017
08/09/2017
08/09/2017
15/09/2017
15/09/2017
22/09/2017
22/09/2017
29/09/2017
29/09/2017
06/10/2017
13/10/2017
20/10/2017
27/10/2017
31/10/2017
31/10/2017
03/11/2017
03/11/2017
10/11/2017
10/11/2017
17/11/2017
17/11/2017
24/11/2017
24/11/2017
01/12/2017
08/12/2017
08/12/2017
15/12/2017
15/12/2017
22/12/2017
22/12/2017
29/12/2017
05/01/2018
05/01/2018
12/01/2018
12/01/2018
19/01/2018
19/01/2018
Reason
Increase/
Decrease
in share
holding
378553 Transfer
-200015 Transfer
339261 Transfer
23092 Transfer
-927 Transfer
100000 Transfer
-222205 Transfer
104709 Transfer
-276250 Transfer
203250 Transfer
-1351536 Transfer
28249 Transfer
446665 Transfer
102987 Transfer
80193 Transfer
550357 Transfer
-20388 Transfer
172641 Transfer
-7425 Transfer
61300 Transfer
-1047 Transfer
200021 Transfer
-340045 Transfer
12130 Transfer
-149490 Transfer
-17642 Transfer
382438 Transfer
-978 Transfer
206895 Transfer
-5252 Transfer
250962 Transfer
-799 Transfer
-282000 Transfer
205536 Transfer
-3750 Transfer
113129 Transfer
-807 Transfer
807857 Transfer
-233284 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
12559292
12359277
12698538
12721630
12720703
12820703
12598498
12703207
12426957
12630207
11278671
11306920
11753585
11856572
11936765
12487122
12466734
12639375
12631950
12693250
12692203
12892224
12552179
12564309
12414819
12397177
12779615
12778637
12985532
12980280
13231242
13230443
12948443
13153979
13150229
13263358
13262551
14070408
13837124
% of total
shares
of the
Company
0.90
0.88
0.91
0.91
0.91
0.92
0.90
0.91
0.89
0.90
0.81
0.81
0.84
0.85
0.85
0.89
0.89
0.90
0.90
0.91
0.91
0.92
0.90
0.90
0.89
0.88
0.91
0.91
0.93
0.93
0.94
0.94
0.92
0.94
0.94
0.95
0.95
1.00
0.99
125
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
9
NOMURA INDIA INVESTMENT
FUND MOTHER FUND
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
26/01/2018
02/02/2018
02/02/2018
09/02/2018
16/02/2018
16/02/2018
23/02/2018
23/02/2018
02/03/2018
02/03/2018
09/03/2018
09/03/2018
16/03/2018
16/03/2018
23/03/2018
23/03/2018
30/03/2018
30/03/2018
At the end of the year
Shareholding at the
beginning of the Year
07/04/2017
14/04/2017
21/04/2017
28/04/2017
02/06/2017
09/06/2017
16/06/2017
30/06/2017
07/07/2017
21/07/2017
04/08/2017
25/08/2017
15/09/2017
29/09/2017
06/10/2017
27/10/2017
17/11/2017
26/01/2018
09/02/2018
At the end of the year
Reason
Increase/
Decrease
in share
holding
-71253 Transfer
138374 Transfer
-19756 Transfer
379601 Transfer
104944 Transfer
-39 Transfer
427895 Transfer
-158 Transfer
19171 Transfer
-251828 Transfer
174116 Transfer
-207168 Transfer
59595 Transfer
-427217 Transfer
822570 Transfer
-490454 Transfer
284520 Transfer
-3640 Transfer
99356 Transfer
237143 Transfer
197405 Transfer
191568 Transfer
281461 Transfer
668610 Transfer
456041 Transfer
125809 Transfer
133812 Transfer
3080153 Bonus
1119411 Transfer
500000 Transfer
344874 Transfer
572436 Transfer
615328 Transfer
250000 Transfer
250000 Transfer
1235383 Transfer
250000 Transfer
126
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
0.98
0.99
0.99
1.02
1.03
1.03
1.06
1.06
1.06
1.04
1.05
1.04
1.04
1.01
1.07
1.03
1.05
1.05
1.05
0.40
0.41
0.44
0.46
0.48
0.51
0.58
0.63
0.65
0.66
0.66
0.74
0.78
0.80
0.84
0.88
0.90
0.92
1.01
1.03
1.03
13765871
13904245
13884489
14264090
14369034
14368995
14796890
14796732
14815903
14564075
14738191
14531023
14590618
14163401
14985971
14495517
14780037
14776397
14776397
3769101
3868457
4105600
4303005
4494573
4776034
5444644
5900685
6026494
6160306
9240459
10359870
10859870
11204744
11777180
12392508
12642508
12892508
14127891
14377891
14377891
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.52
Name of the Share Holder
Date
Sl.
No.
10 GOVERNMENT OF SINGAPORE
- E
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
Shareholding at the
beginning of the Year
07/04/2017
14/04/2017
21/04/2017
28/04/2017
05/05/2017
19/05/2017
26/05/2017
02/06/2017
09/06/2017
23/06/2017
07/07/2017
21/07/2017
18/08/2017
01/09/2017
08/09/2017
29/09/2017
06/10/2017
13/10/2017
03/11/2017
17/11/2017
24/11/2017
24/11/2017
01/12/2017
08/12/2017
15/12/2017
05/01/2018
12/01/2018
19/01/2018
26/01/2018
02/02/2018
09/02/2018
09/02/2018
16/02/2018
23/02/2018
23/02/2018
02/03/2018
02/03/2018
09/03/2018
23/03/2018
30/03/2018
At the end of the year
Reason
Increase/
Decrease
in share
holding
191456 Transfer
-218114 Transfer
-3340 Transfer
-1471 Transfer
-78973 Transfer
-146297 Transfer
-366946 Transfer
80103 Transfer
15163 Transfer
-3556 Transfer
38670 Transfer
6831127 Bonus
-270325 Transfer
-141632 Transfer
-256564 Transfer
-773119 Transfer
-1085600 Transfer
-1089365 Transfer
107186 Transfer
-82998 Transfer
25000 Transfer
-1544688 Transfer
-1744923 Transfer
-671134 Transfer
-2588525 Transfer
164948 Transfer
10152 Transfer
142522 Transfer
91273 Transfer
68953 Transfer
22547 Transfer
-14769 Transfer
-72873 Transfer
7820 Transfer
-28748 Transfer
8593 Transfer
-171847 Transfer
8323 Transfer
32858 Transfer
53830 Transfer
14155559
14347015
14128901
14125561
14124090
14045117
13898820
13531874
13611977
13627140
13623584
13662254
20493381
20223056
20081424
19824860
19051741
17966141
16876776
16983962
16900964
16925964
15381276
13636353
12965219
10376694
10541642
10551794
10694316
10785589
10854542
10877089
10862320
10789447
10797267
10768519
10777112
10605265
10613588
10646446
10700276
10700276
1.54
1.51
1.51
1.51
1.50
1.49
1.45
1.46
1.46
1.46
1.46
1.46
1.44
1.43
1.42
1.36
1.28
1.21
1.21
1.21
1.21
1.10
0.97
0.93
0.74
0.75
0.75
0.76
0.77
0.77
0.78
0.78
0.77
0.77
0.77
0.77
0.76
0.76
0.76
0.76
0.76
127
Name of the Share Holder
Date
Sl.
No.
11
SBI MAGNUM EQUITY FUND
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
Shareholding at the
beginning of the Year
07/04/2017
07/04/2017
14/04/2017
21/04/2017
28/04/2017
28/04/2017
05/05/2017
12/05/2017
12/05/2017
19/05/2017
19/05/2017
26/05/2017
26/05/2017
02/06/2017
02/06/2017
09/06/2017
09/06/2017
16/06/2017
23/06/2017
23/06/2017
30/06/2017
30/06/2017
07/07/2017
07/07/2017
14/07/2017
14/07/2017
21/07/2017
28/07/2017
28/07/2017
04/08/2017
11/08/2017
11/08/2017
18/08/2017
25/08/2017
25/08/2017
01/09/2017
08/09/2017
08/09/2017
15/09/2017
15/09/2017
Reason
Increase/
Decrease
in share
holding
371992 Transfer
-4137 Transfer
187269 Transfer
287067 Transfer
47164 Transfer
-260 Transfer
206238 Transfer
401651 Transfer
-1341 Transfer
250756 Transfer
-2538 Transfer
23395 Transfer
-2072 Transfer
18323 Transfer
-1022 Transfer
36867 Transfer
-225189 Transfer
64146 Transfer
26874 Transfer
-54324 Transfer
163263 Transfer
-172000 Transfer
72052 Transfer
-8904 Transfer
54509 Transfer
-9928 Transfer
6139726 Bonus
168134 Transfer
-588330 Transfer
176404 Transfer
160221 Transfer
-16382 Transfer
107234 Transfer
149230 Transfer
-300000 Transfer
119427 Transfer
129458 Transfer
-279450 Transfer
38751 Transfer
-593062 Transfer
128
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.12
10429047
10801039
10796902
10984171
11271238
11318402
11318142
11524380
11926031
11924690
12175446
12172908
12196303
12194231
12212554
12211532
12248399
12023210
12087356
12114230
12059906
12223169
12051169
12123221
12114317
12168826
12158898
18298624
18466758
17878428
18054832
18215053
18198671
18305905
18455135
18155135
18274562
18404020
18124570
18163321
17570259
1.16
1.16
1.18
1.21
1.21
1.21
1.23
1.28
1.28
1.30
1.30
1.31
1.31
1.31
1.31
1.31
1.29
1.29
1.30
1.29
1.31
1.29
1.30
1.30
1.30
1.30
1.31
1.32
1.28
1.29
1.30
1.30
1.31
1.32
1.30
1.30
1.31
1.29
1.30
1.25
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
22/09/2017
29/09/2017
29/09/2017
06/10/2017
06/10/2017
13/10/2017
13/10/2017
20/10/2017
27/10/2017
31/10/2017
31/10/2017
03/11/2017
10/11/2017
10/11/2017
17/11/2017
17/11/2017
24/11/2017
24/11/2017
01/12/2017
08/12/2017
08/12/2017
15/12/2017
22/12/2017
22/12/2017
29/12/2017
29/12/2017
05/01/2018
05/01/2018
12/01/2018
12/01/2018
19/01/2018
19/01/2018
26/01/2018
26/01/2018
02/02/2018
09/02/2018
09/02/2018
16/02/2018
16/02/2018
23/02/2018
23/02/2018
Reason
Increase/
Decrease
in share
holding
139289 Transfer
46668 Transfer
-500169 Transfer
198190 Transfer
-24032 Transfer
184836 Transfer
-200000 Transfer
112162 Transfer
66377 Transfer
61613 Transfer
-19760 Transfer
63025 Transfer
15200 Transfer
-7107 Transfer
6850 Transfer
-83206 Transfer
155792 Transfer
-1521 Transfer
100550 Transfer
256559 Transfer
-10500 Transfer
150858 Transfer
1121350 Transfer
-46978 Transfer
125928 Transfer
-520 Transfer
590449 Transfer
-1 Transfer
102469 Transfer
-185 Transfer
3252 Transfer
-36395 Transfer
2934 Transfer
-771322 Transfer
-295094 Transfer
894 Transfer
-133250 Transfer
117845 Transfer
-1020 Transfer
394 Transfer
-24762 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
17709548
17756216
17256047
17454237
17430205
17615041
17415041
17527203
17593580
17655193
17635433
17698458
17713658
17706551
17713401
17630195
17785987
17784466
17885016
18141575
18131075
18281933
19403283
19356305
19482233
19481713
20072162
20072161
20174630
20174445
20177697
20141302
20144236
19372914
19077820
19078714
18945464
19063309
19062289
19062683
19037921
% of total
shares
of the
Company
1.26
1.27
1.23
1.25
1.24
1.26
1.24
1.25
1.26
1.26
1.26
1.26
1.26
1.26
1.26
1.26
1.27
1.27
1.28
1.29
1.29
1.30
1.38
1.38
1.39
1.39
1.43
1.43
1.44
1.44
1.44
1.44
1.44
1.38
1.36
1.36
1.35
1.36
1.36
1.36
1.36
129
Name of the Share Holder
Date
Sl.
No.
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
12
THE NEW INDIA ASSURANCE
COMPANY LIMITED
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasins for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
02/03/2018
02/03/2018
09/03/2018
09/03/2018
16/03/2018
16/03/2018
23/03/2018
30/03/2018
30/03/2018
At the end of the year
Shareholding at the
beginning of the Year
07/04/2017
14/04/2017
21/04/2017
05/05/2017
12/05/2017
19/05/2017
26/05/2017
23/06/2017
21/07/2017
15/09/2017
22/09/2017
17/11/2017
24/11/2017
01/12/2017
08/12/2017
15/12/2017
22/12/2017
19/01/2018
26/01/2018
02/02/2018
09/02/2018
16/02/2018
23/03/2018
30/03/2018
At the end of the year
Reason
Increase/
Decrease
in share
holding
682430 Transfer
-2905 Transfer
213677 Transfer
-21000 Transfer
250405 Transfer
-84000 Transfer
328036 Transfer
100964 Transfer
-5840 Transfer
-20000 Transfer
-79056 Transfer
-944 Transfer
-2500 Transfer
-21896 Transfer
-90604 Transfer
-35000 Transfer
433000 Transfer
4732022 Bonus
-57070 Transfer
-111388 Transfer
-30000 Transfer
-73890 Transfer
-46110 Transfer
-50000 Transfer
-46099 Transfer
-78901 Transfer
-10000 Transfer
-26000 Transfer
-14000 Transfer
-23000 Transfer
-8000 Transfer
-21000 Transfer
-4000 Transfer
130
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.41
1.41
1.42
1.42
1.44
1.43
1.46
1.46
1.46
1.46
0.99
0.99
0.98
0.98
0.98
0.98
0.97
0.97
1.01
1.01
1.01
1.00
1.00
0.99
0.99
0.99
0.98
0.98
0.98
0.98
0.97
0.97
0.97
0.97
0.97
0.97
19720351
19717446
19931123
19910123
20160528
20076528
20404564
20505528
20499688
20499688
9281045
9261045
9181989
9181045
9178545
9156649
9066045
9031045
9464045
14196067
14138997
14027609
13997609
13923719
13877609
13827609
13781510
13702609
13692609
13666609
13652609
13629609
13621609
13600609
13596609
13596609
(v) Shareholding of Directors and Key Managerial Personnel:
Sl.
No.
Name of Director / KMP
1
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);
Shareholding at the
beginning of the year
% of total
Shares
of the
Company
0.11
Bonus
No. of
shares
1,000,000
-10,000
-10,000
-10,000
-10,000
-1,000
-9,000
-10,000
-15,000
-15,000
-10,000
-20,000
-20,000
-10,000
-25,000
-9,369
-15,631
-25,000
-14,747
-10,253
-25,000
-25,000
-25,000
-25,000
325,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-25,000
-42
At the Beginning of the year
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
03-Apr-17
05-Apr-17
05-Apr-17
05-Apr-17
07-Apr-17
07-Apr-17
07-Apr-17
24-Apr-17
24-Apr-17
24-Apr-17
26-Apr-17
26-Apr-17
17-Jul-17
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
05-Jan-18
05-Jan-18
08-Jan-18
08-Jan-18
08-Jan-18
18-Jan-18
18-Jan-18
18-Jan-18
22-Jan-18
22-Jan-18
22-Jan-18
22-Jan-18
23-Jan-18
23-Jan-18
At the end of the year
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
424,958
0.03
131
Sl.
No.
2
3
Name of Director / KMP
S. N. SUBRAHMANYAN
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
R. SHANKAR RAMAN
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc):
4
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):
Shareholding at the
beginning of the year
No. of
shares
% of total
Shares
of the
Company
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
At the beginning of the year
107,056
17/07/2017
12/08/2017
53,528
Bonus
52,500 ESOP exercise
At the End of the year
At the beginning of the year
189,000
213,084
0.02
17/07/2017
12/08/2017
94,500
Bonus
22,500 ESOP exercise
306,000
0.02
At the End of the year
At the beginning of the year
12-Apr-17
12-Apr-17
12-Apr-17
21-Apr-17
21-Apr-17
21-Apr-17
24-Apr-17
24-Apr-17
24-Apr-17
25-Apr-17
25-Apr-17
25-Apr-17
25-Apr-17
25-Apr-17
26-Apr-17
26-Apr-17
26-Apr-17
27-Apr-17
27-Apr-17
27-Apr-17
27-Apr-17
27-Apr-17
27-Apr-17
10-May-17
17-Jul-17
12-Aug-17
21-Dec-17
21-Dec-17
21-Dec-17
22-Dec-17
27-Dec-17
65,350
-200
-200
-200
-500
-500
-500
-1,000
-500
-250
-250
-250
-250
-250
-250
-500
-500
-500
-500
-250
-500
-500
-500
-250
-500
27,875
Bonus
15,000 ESOP exercise
-1,000
-1,000
-500
-500
-1,000
132
Sl.
No.
Name of Director / KMP
Shareholding at the
beginning of the year
No. of
shares
% of total
Shares
of the
Company
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
5
6
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):
7
J. D. PATIL
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):
03-Jan-18
03-Jan-18
03-Jan-18
03-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
04-Jan-18
05-Jan-18
08-Jan-18
08-Jan-18
08-Jan-18
08-Jan-18
15-Jan-18
17-Jan-18
18-Jan-18
At the End of the year
At the beginning of the year
17-Jul-17
-1,000
-1,000
-1,000
-1,000
-1,000
-1,000
-1,000
-1,000
-500
-1,000
-1,000
-1,000
-1,000
-1,000
-1,000
-3,000
-2,000
30,703
15,351
Bonus
75,125
0.01
At the End of the year
At the beginning of the year
17-Jul-17
42,875
21,437
Bonus
46,054
0.00
At the End of the year
As on the date of
appointment as director
17-Jul-17
114,840
57,420
Bonus
64,312
0.00
At the End of the year
172,260
0.01
133
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
17-Jul-17
1,629
814
% of total
Shares
of the
Company
Bonus
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
17-Jul-17
750
375
Bonus
2,443
0.00
At the End of the year
At the beginning of the year
17-Jul-17
150
75
Bonus
1,125
0.00
At the End of the year
At the beginning of the year
17-Jul-17
885
442
Bonus
225
0.00
At the End of the year
At the beginning of the year
150
1,327
0.00
17-Jul-17
75
Bonus
At the End of the year
At the beginning of the year
17-Jul-17
100
50
0.00
Bonus
225
0.00
Sl.
No.
8
9
10
11
12
13
Name of Director / KMP
M. M. CHITALE
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
SUBODH BHARGAVA
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
M. DAMODARAN
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
VIKRAM SINGH MEHTA
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc):
SUSHOBHAN SARKER
jointly with Life Insurance
Corporation of India
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
ADIL ZAINULBHAI
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
134
At the End of the year
150
0.00
Sl.
No.
14
15
16
17
18
Name of Director / KMP
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):
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):
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):
SUNITA SHARMA jointly
with Life Insurance
Corporation of India
Da+B219:B221te wise
Increase / Decrease in
Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
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):
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
Shareholding at the
beginning of the year
No. of
shares
200
100
7,380
% of total
Shares
of the
Company
0.00
Bonus
At the beginning of the year
17-Jul-17
17-Jan-18
At the End of the year
At the beginning of the year
17-Jul-17
1,000
500
Bonus
7,680
0.00
At the End of the year
At the beginning of the year
17-Jul-17
3,000
1,500
Bonus
1,500
0.00
At the End of the year
At the beginning of the year
100
4,500
0.00
17-Jul-17
50
Bonus
At the End of the year
At the beginning of the year
17-Jul-17
100
50
Bonus
150
0.00
At the End of the year
150
0.00
135
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
17-Jul-17
100
50
% of total
Shares
of the
Company
Bonus
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
17-Jul-17
21,100
10,550
Bonus
150
0.00
At the End of the year
At the beginning of the year
17-Jul-17
100
50
Bonus
31,650
0.00
At the End of the year
At the beginning of the year
21/07/2017
23,140
11570
0.00
150
0.00
Sl.
No.
19
20
21
22
Name of Director / KMP
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):
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 as on 31st March 2018
At the End of the year
34710
0.00
Secured loans
excluding
deposits
Unsecured
Loans
Deposits
v 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)
848.13
9710.24
–
–
–
–
848.13
9710.24
–
–
–
10558.37
–
–
10558.37
136
Change in indebtedness during the
financial year
Additions ^
Reduction
Exchange gain/(loss)
Interest accrued but not due
Net change
Indebtedness at the end of the
financial year
i) Principal Amount *
ii) interest due but not paid *
iii) interest accrued but not due *
Total (i+ii+iii)
Secured loans
excluding
deposits
Unsecured
Loans
Deposits
v crore
Total
Indebtedness
16160.75
(16484.83)
1.12
–
(322.96)
5697.34
(5402.51)
30.76
–
325.59
525.17
10035.83
–
–
–
–
525.17
10035.83
–
–
–
–
–
–
–
–
–
21858.09
(21887.34)
31.88
–
2.63
10561.00
–
–
10561.00
*Principal amount mentioned includes interest due but not paid and interest accrued but not due.
^ Addition during the financial year includes interest accrued but not due.
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:
A. REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND / OR MANAGER:
A M NAIK
S N
SUBRAHMANYAN
Name of MD / WTD / Manager
R SHANKAR
RAMAN
SHAILENDRA
ROY
D..K SEN
M.V SATISH
J. D. PATIL
V crore
Total
Amount
2.727
2.144
1.590
1.470
1.140 1.140
0.720
10.931
48.109*
14.376
0.000
0.000
0.000
0.000
8.727
77.682**
0.000
0.000
11.579
3.704
5.822
0.000
0.000
0.000
7.387
2.424
3.453
0.000
0.000
0.000
5.319
1.833
0.120 0.215
0.135
72.230
0.000 0.000
0.000
0.000
0.000 0.000
0.000 0.000
5.113 4.502
1.688 1.524
0.000
0.000
2.284
0.811
0.000
0.000
44.911
0.000
89.666
Sl.
No.
Particulars of
Remuneration
1
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
2
3
4
5
(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
217.738
943.46
* Perquisites include perquisite value of R 47.982 crore in respect of stock options granted over the past several years by Larsen & Toubro Infotech Limited and
8.061 7.381
137.245
17.223
31.803
12.075
3.950
L&T Technology Services Limited and exercised during the year.
** Retirement benefits include encashment of accumulated past service leave R 19.381 crore, gratuity R 55.038 crore and pension of R 1.50 crore
137
B. REMUNERATION TO OTHER DIRECTORS:
A M Naik M M Chitale
Subodh
Bhargava
M
Damodaran
Vikram Singh
Mehta
Sushobhan
Sarker
Adil
Zainulbhai
Akhilesh
Gupta
Sunita
Sharma
Thomas
Mathew T
Ajay Shankar Subrmanian
Sarma
Naina Lal
Kidwai
Sanjeev Aga Narayanan
Kumar
Arvind Gupta
Name of Directors
0.077
0.065
0.062
0.040
0.058
0.045
0.065
0.055
0.045
0.077
0.045
0.330
0.435
0.238
0.237
0.258
0.150
0.278
0.280
0.150
0.240
0.150
0.407
0.500
0.300
0.277
0.316
0.195
0.343
0.335
0.195
0.317
0.195
0.000
V crore
Total
Amount
0.634
2.746
0.000
3.380
0.023
2.500
0.015
2.538
2.538
0.407
0.500
0.300
0.277
0.077
0.263
0.340
0.340
0.316
0.195
0.023
0.038
0.061
0.061
0.343
0.335
–
–
–
–
0.000
0.317
0.000
0.195
0.195
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
0.015
0.138
0.033
0.048
0.048
2.834
0.015
2.987
6.367
224.105
1,037.80
V crore
Total
# Payable to respective institutions they represent
@ This represents perquisite value of housing & medical
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
1.099
0.002
Not Applicable
Not Applicable
0.079
1.180
138
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
139
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
140
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/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.
141
Annexure ‘H’ to the Board Report
NOMINATION AND REMUNERATION POLICY
2.2. Board means Board of Directors of the Company.
The Board of Directors of Larsen & Toubro Limited
(“the Company”) had constituted the “Nomination and
Remuneration Committee” which is in compliance with
the requirements of the Companies Act, 2013 (“Act”)
and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“LODR”).
1. OBJECTIVE:
The Nomination and Remuneration Committee and
this Policy shall be in compliance with Section 178 of
the Act read along with the applicable rules thereto
and Regulation 19 of LODR. The Key Objectives of the
Committee would be:
zz
zz
zz
zz
zz
To identify persons who are qualified to become
directors and who may be appointed in senior
management in accordance with the criteria laid
down, recommend to the Board their appointment
and removal and shall specify the manner for effective
evaluation of performance of Board, its Committees
and individual directors to be carried out by the Board
or the Nomination & Remuneration Committee or
by an Independent External Agency and review its
implementation and compliance;
To formulate the criteria for determining
qualifications, positive attributes and independence
of a director and recommend to the Board a policy,
relating to the remuneration for the directors, key
managerial personnel and other employees;
To ensure that level and composition of remuneration
is reasonable and sufficient to attract, retain and
motivate directors of the quality required to run the
company successfully;
Relationship of remuneration to performance is clear
and meets appropriate performance benchmarks;
Remuneration to directors, key managerial personnel
and senior management involves a balance between
fixed and incentive pay reflecting short and long-term
performance objectives appropriate to the working of
the Company and its goals;
2.3. Directors mean Directors of the Company.
2.4. Executive Directors means the Executive
Chairman if any, Chief Executive Officer and
Managing Director, Deputy Managing Director, if
any and Whole-time Directors.
2.5. Key Managerial Personnel means
zz
Chief Executive Officer or the Managing Director
or the Manager;
zz
Whole-time directors;
zz
Chief Financial Officer;
zz
Company Secretary;
zz
Senior Management Personnel designated as
such by the Board; and
zz
Such other officer as may be prescribed.
2.6. Senior Management Personnel means all
members of management one level below the
Executive Directors including the Chief Financial
Officer and Company Secretary.
3. ROLE OF COMMITTEE:
3.1. Matters to be dealt with, perused and
recommended to the Board by the Nomination
and Remuneration Committee
The Committee shall:
zz
zz
Formulate the criteria for determining
qualifications, positive attributes and
independence of a director.
Identify persons who are qualified to become
Director and persons who may be appointed
in Key Managerial and Senior Management
positions in accordance with the criteria laid
down in this policy.
zz
Recommend to the Board, appointment
and removal of Director, KMP and Senior
Management Personnel.
zz
Devising a policy on Board diversity;
3.2. Policy for appointment and removal of Director,
2. DEFINITIONS:
2.1. Act means the Companies Act, 2013 or Companies
Act, 1956 as may be applicable and Rules framed
thereunder, as amended from time to time.
KMP and Senior Management
3.2.1. Appointment criteria and qualifications
a) The Committee shall identify and ascertain the
integrity, qualification, expertise and experience
142
of the person for appointment as Director and
recommend to the Board his/her appointment.
Company in any other capacity, either
directly or indirectly.
Appointment and Remuneration of KMP or Senior
Management Personnel is in accordance with
the HR Policy of the Company. The Company’s
policy is committed to acquire, develop and retain
a pool of high calibre talent, establish systems
and practises for maintaining transparency,
fairness and equity and provides for payment
of competitive pay packages matching industry
standards.
-
At the time of appointment of Independent
Director it should be ensured that number of
Boards on which such Independent Director
serves is restricted to seven listed companies
as an Independent Director and three listed
companies as an Independent Director in
case such person is serving as a Whole-time
Director of a listed company or such other
number as may be prescribed under the Act.
b) A person should possess adequate qualification,
c) Maximum Number of Directorships:
expertise and experience for the position he / she
is considered for appointment. The Committee
has discretion to decide whether qualification,
expertise and experience possessed by a person
is sufficient / satisfactory for the concerned
position.
c) The Company shall not appoint or continue the
employment of any person as Director who has
attained the retirement age fixed by the Board or
as approved by the Shareholders pursuant to the
requirement of the Act/LODR.
3.2.2. Term / Tenure
a) Executive Directors:
b)
The Company shall appoint or re-appoint any
person as its Executive Director for a term not
exceeding five years at a time. No re-appointment
shall be made earlier than one year before the
expiry of term.
Independent Director:
-
An Independent Director shall hold office for
a term up to five consecutive years on the
Board of the Company and will be eligible
for re-appointment on passing of a special
resolution by the Company and disclosure of
such appointment in the Board’s report. The
rationale for such re-appointment shall also
be provided in the Notice to Shareholders
proposing such re-appointment.
-
No Independent Director shall hold office for
more than two consecutive terms, but such
Independent Director shall be eligible for
appointment after expiry of three years of
ceasing to become an Independent Director.
Provided that an Independent Director shall
not, during the said period of three years,
be appointed in or be associated with the
-
A person shall not be appointed as a
Director in case he is a Director in more
than eight listed companies after April 1,
2019 and seven listed companies after April
1, 2020. For the purpose of this clause
listed companies would mean only those
companies whose equity shares are listed.
3.2.3. Evaluation
The Committee shall by itself or through the Board or
an independent external agency carry out evaluation
of performance of the Board/Committee(s), Individual
Directors and Chairman at regular interval (yearly) and
review implementation and compliance.
The Company may disclose in the Annual Report:
a. Observation of the Board Evaluation for the year
under review
b. Previous years observations and actions taken
c. Proposed actions based on current year’s
observations
3.2.4. Removal
Due to reasons for any disqualification mentioned
in the Act or under any other applicable Act, rules
and regulations thereunder, the Committee may
recommend, to the Board with reasons recorded
in writing, removal of a Director, KMP or Senior
Management Personnel subject to the provisions and
compliance of the said Act, rules and regulations.
3.2.5. Retirement
The Director, KMP and Senior Management Personnel
shall retire as per the applicable provisions of the Act
or the prevailing policy of the Company, as applicable.
The Board/Committee will have the discretion to retain
the Director, KMP, Senior Management Personnel in
the same position/ remuneration or otherwise even
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after attaining the retirement age, for the benefit of
the Company.
3.3. Policy relating to the Remuneration of Executive
Director, KMP and Senior Management Personnel
3.3.1. General:
a) The remuneration / compensation / commission
etc. to the Executive Directors will be determined
by the Committee and recommended to
the Board for approval. The remuneration /
compensation / commission etc. shall be subject
to the approval of the shareholders of the
Company and Central Government, wherever
required.
b) The remuneration and commission to be paid
to the Executive Directors shall be in accordance
with the percentage / limits / conditions laid
down in the Articles of Association of the
Company and as per the provisions of the Act.
c)
Increments to the existing remuneration/
compensation structure may be recommended
by the Committee to the Board which should be
within the limits approved by the Shareholders in
the case of Executive Directors.
d) Where any insurance is taken by the Company
on behalf of its Executive Directors, Chief
Executive Officer, Chief Financial Officer, the
Company Secretary and any other employees
for indemnifying them against any liability, the
premium paid on such insurance shall not be
treated as part of the remuneration payable to
any such personnel. Provided that if such person
is proved to be guilty, the premium paid on
such insurance shall be treated as part of the
remuneration.
e) Remuneration of other KMP or Senior
Management Personnel, in any form, shall be
as per the policy of the Company based on the
grade structure in the Company.
3.3.2. Remuneration to Executive directors/ KMP and
Senior Management Personnel:
a) Fixed pay:
The Executive Directors/ KMP and Senior
Management Personnel shall be eligible for
a monthly remuneration as may be approved
by the Board on the recommendation of the
Committee or policy of the Company. In case
of remuneration to Directors, the breakup
of the pay scale and quantum of perquisites
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including, employer’s contribution to P.F, pension
scheme, medical expenses, club fees etc. shall be
decided and approved by the Board/ the Person
authorized by the Board on the recommendation
of the Committee and approved by the
shareholders and Central Government, wherever
required.
b) Minimum Remuneration:
If, in any financial year, the Company has no
profits or its profits are inadequate, the Company
shall pay remuneration to its Executive Directors
in accordance with the provisions of Schedule
V of the Act and if it is not able to comply with
such provisions, with the previous approval of the
Central Government.
c) Provisions for excess remuneration:
If any Chairman/Managing Director/Whole-time
Directors draws or receives, directly or indirectly
by way of remuneration any such sums in excess
of the limits prescribed under the Act or without
the prior sanction of the Central Government,
where required, he / she shall refund such sums
to the Company and until such sum is refunded,
hold it in trust for the Company. The Company
shall not waive recovery of such sum refundable
to it unless permitted by the Central Government.
d) Stock Options in Subsidiary Companies:
Executive Directors may be granted stock options
in subsidiary companies as per their Schemes
and after taking necessary approvals. Perquisites
may be added to the remuneration of concerned
directors and considered in the limits applicable
to the Company.
3.3.3. Remuneration to Non- Executive / Independent
Director:
a) Remuneration / Commission:
The remuneration / commission shall be fixed as
per the limits and conditions mentioned in the
Articles of Association of the Company and the
Act.
b) Sitting Fees:
The Non- Executive / Independent Director may
receive remuneration by way of fees for attending
meetings of Board or Committee thereof.
Provided that the amount of such fees shall
not exceed Rupees One Lac per meeting of the
Board or Committee or such amount as may be
prescribed by the Central Government from time
to time.
c) Commission:
7. COMMITTEE MEMBERS’ INTERESTS
Commission may be paid within the monetary
limit approved by shareholders, subject to
the limit not exceeding 1% of the profits of
the Company computed as per the applicable
provisions of the Act. The Board of Directors will
fix the Commission payable to Directors on the
basis of number of Board/Committee meetings
attended during the year and Chairmanships of
Committees.
d) Stock Options:
An Independent Director shall not be entitled
to any Stock option of the Company. Non-
Executive Directors are eligible for Stock options
in accordance with Schemes formulated by the
Company. Nominee Directors are not entitled to
stock options as per their respective nomination
letters received by the Company.
4. MEMBERSHIP
4.1 The Committee shall consist of a minimum 3 non-
executive directors, half of them being independent.
4.2 Minimum two (2) members or one-third of the
members whichever is greater including atleast one
Independent Director shall constitute a quorum for
the Committee meeting.
4.3 Membership of the Committee shall be disclosed in
the Annual Report.
4.4 Term of the Committee shall be continued unless
terminated by the Board of Directors.
5. CHAIRPERSON
5.1 Chairperson of the Committee shall be an
Independent Director.
5.2 Chairperson of the Company may be appointed
as a member of the Committee but shall not be a
Chairman of the Committee.
5.3 In the absence of the Chairperson, the members of
the Committee present at the meeting shall choose
one amongst them to act as Chairperson.
5.4 Chairperson of the Nomination and Remuneration
Committee meeting could be present at the Annual
General Meeting or may nominate some other
member to answer the shareholders’ queries.
6. FREQUENCY OF MEETINGS
The meeting of the Committee shall be held atleast once
in a year and at such regular intervals as may be required.
7.1 A member of the Committee is not entitled to be
present/participate in discussion when his or her own
remuneration is discussed at a meeting or when his or
her performance is being evaluated.
7.2 The Committee may invite such executives, as it
considers appropriate, to be present at the meetings
of the Committee.
8. SECRETARY
The Company Secretary of the Company shall act as
Secretary of the Committee.
9. VOTING
Matters arising for determination at Committee meetings
shall be decided by a majority of votes of Members present
and voting and any such decision shall for all purposes be
deemed a decision of the Committee.
10. NOMINATION DUTIES
The duties of the Committee in relation to nomination
matters include:
10.1 Ensuring that on appointment to the Board,
Non-Executive Directors receive a formal letter of
appointment in accordance with the Guidelines
provided under the Act;
10.2 Determining the appropriate size, diversity and
composition of the Board;
10.3 Setting a formal and transparent procedure for
selecting new Directors for appointment to the Board;
10.4 Developing a succession plan for the Board and Senior
Management and regularly reviewing the plan;
10.5 Evaluating the performance of the Board members
and Senior Management in the context of the
Company’s performance from business and
compliance perspective;
10.6 Making recommendations to the Board concerning
any matters relating to the continuation in office of
any Director at any time including the suspension or
termination of service of an Executive Director as an
employee of the Company subject to the provision of
the law and their service contract;
10.7 Delegating any of its powers to one or more of its
members or the Secretary of the Committee;
10.8 Recommend any necessary changes to the Board; and
10.9 Considering any other matters, as may be requested
by the Board.
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11. REMUNERATION DUTIES
The duties of the Committee in relation to remuneration
matters include:
11.1 To consider and determine the Remuneration Policy,
based on the performance and also bearing in mind
that the remuneration is reasonable and sufficient
to attract retain and motivate members of the Board
and such other factors as the Committee shall deem
appropriate and all elements of the remuneration of
the members of the Board.
11.2 To ensure the remuneration maintains a balance
between fixed and incentive pay reflecting short and
long term performance objectives appropriate to the
working of the Company.
11.3 To delegate any of its powers to one or more of its
members or the Secretary of the Committee.
11.4 To consider any other matters as may be requested by
the Board.
11.5 Review of professional indemnity and liability
insurance for Directors and senior management.
12. MINUTES OF NOMINATION AND REMUNERATION
COMMITTEE MEETING
Proceedings of all meetings must be minuted and
signed by the Chairman of the Committee at the
subsequent meeting. Minutes of the Committee meetings
will be tabled at the subsequent Board and Committee
meeting.
13. REVIEW & AMENDMENT:
The Policy shall be reviewed as and when required
to ensure that it meets the objectives of the relevant
legislation and remains effective. The Nomination and
Remuneration Committee has the right to change/amend
the policy as may be expedient taking into account the law
for the time being in force.
146
Management
Discussion and
Analysis
Indian economy
The domestic market had its fair share of upheavals in
the financial year under review. A combination of deferral
of award decisions and the implementation of long term
reforms causing short term economic turbulence have led
to a muted environment for project execution. For example,
the introduction of GST from 1st July, 2017 caused
disruption for a few quarters during which time businesses
and Government agencies grappled with this new nation-
wide taxation system. Other reform measures such as
Demonetisation, RERA and the Insolvency & Bankruptcy
Code have also impacted business momentum in the short
term, but are expected to lead to sustained economic
growth in the long run.
Some positive effects have already started being felt
through higher tax revenues and the gradual formalisation
of the economy with its consequent widening of the
tax base. This is likely to give the Central Government
better wherewithal to allocate higher levels of funding
for essential infrastructure projects. These investments
are being supplemented by increased State Government
spending, greater capex by financially strong PSUs and
increased quantum of soft lending by bi-lateral and multi-
lateral lending agencies.
Some areas of public sector infrastructure capex have seen
strong investment momentum and some large investment
programs have been kicked off. The thrust of the
Government on roads, conventional and metro railways,
water management systems and irrigation projects, power
generation facilities, power transmission & distribution,
affordable housing, healthcare facilities, build out of smart
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city infrastructure, and tying up of energy security through
stronger oil & gas infrastructure has given an impetus to
domestic awards during the year.
Rural development
The Government has also been focusing on developing
core infrastructure in rural areas, mainly focused on roads,
power availability to rural households through intensive
electrification, irrigation of cultivable land and direct
transfer of subsidies to families in the BPL segment through
the expanding base of Jan Dhan Bank Accounts linked with
Aadhar. Considerable headway has been made in all these
areas and millions of rural people have been lifted out of
the ‘BPL zone’ over the last few years.
Global economic scenario
International markets have witnessed noticeable volatility,
triggered by geo-political events, significant movements in
currency and commodities, protectionist policies including
tariff barriers, a prolonged bout of low oil prices, and
constrained fiscal positions of oil producing nations. The
recent hardening of oil prices is likely to now give better
leeway to policy makers in GCC countries to allocate
increased outlay on essential infrastructure.
The Company has also been reducing its dependence on
business from the Middle East and is focusing on expanding
business in East & North Africa Region (including Algeria
and Egypt) as well as East Asian countries.
Private sector investments
Private sector investments have remained muted and are
expected to take some more time before a wholesome
revival can be seen across sectors like Infrastructure PPP,
industrial capex, consumption driven capex and real estate
growth. The growing impact of non-performing loans on
the balance sheets of banks continues to impact the credit
growth of the banking system.
Focus on long term profitable growth
The ongoing initiatives currently under way include a focus
on digitalization, strengthening execution and operational
efficiency, unlocking business value, better asset utilisation,
judicious use of working capital, business portfolio
rationalisation and higher shareholder payouts are enabling
the company to perform well on key parameters and
improve Returns on Equity.
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Infrastructure
Business
Infrastructure Business Scenario
Indian Construction Sector
Infrastructure in India has come a long way with
consolidation in the last 2 years (i.e.) 2015 – 2017. Order
awards especially from the Government including both
State and Central have further triggered the momentum in
the current year (2018), which is expected to drive robust
topline growth of the construction sector in the coming
years, given the conversion cycle.
Furthermore, Budget 2018-19 is a pragmatic effort,
fine balancing the requirement of fiscal rectitude while
keeping in focus the need to connect the missing links in
infrastructure and farm sector development.
The budget has reiterated the need for infrastructure
investments as the ‘sine qua non’ for sustained growth
with a requirement of R 50 lakh crore, which has to come
partly from the the Government but importantly through
‘crowding in’ of investments from the private sector. Much
stress has been laid on urbanization through adoption of
smart cities and smart infrastructure and construction of
large linear infrastructure projects in transportation like
‘Bharat Mala’, aviation and ports. More importantly, the
attendant structural reforms through the adoption of the
IBC and clear emphasis on recapitalization of the banking
system and strategic disinvestment targets reflected the
long term commitment of the Government. Such incentives
will release risk capital, lower risk averseness of the financial
sector and lead to the upturn of the private capex cycle.
Global Construction Sector
The global infrastructure segment is more buoyant than
it has been for the last few years and the sentiment is
positive. Global construction stepped into its stride in
2017 as the economic backdrop brightened and boosted
optimism. The USA is enjoying rapid economic growth,
European markets are catching up and China continues to
surprise.
IMF forecasts global GDP to increase by 3.9 percent in
2018. The construction sector has a strong correlation with
economic growth. Construction’s share of the economy
expands in greater proportion when GDP rises above a
moderate rate. Increasing construction activity around
the globe is expected to drive with global growth gaining
momentum and more importantly developed economies
still accounting for about half of global construction.
Finally, though the sharp rise in crude prices is a double
edged sword, this raises expectations for the oil and gas
sector and infrastructure development in the middle East
which would auger well for the construction sector.
Artist’s impression of proposed Chhatrapati Shivaji Maharaj Memorial Statue,
Mumbai
Indian International Convention Centre, Delhi
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150
Buildings and Factories
Overview:
L&T’s Buildings & Factories (B&F) business is known
for its capability and expertise in executing airports,
hospitals, stadiums, retail spaces, educational
institutions, IT parks, office buildings, datacentres,
elite residential buildings, high-rise structures, mass
housing complexes, factory structures, cement plants
and industrial warehouses on an EPC (Engineering,
Procurement and Construction) basis. L&T has a track
record in successfully addressing tough challenges,
and has the unique capability to offer total solutions
including ‘Design-Build-Commission’ expertise,
advanced systems like Building Information Modules,
procurement from global supply chain and unrivalled
project management expertise.
Dedicated engineering design centres, competency
cells, advanced formwork systems, mechanized project
execution, wide network of consultants and vendors,
digitized project control and a talented pool of
employees help the business to maintain a leadership
position, retain key customers, enter new geographies
and secure major orders. Construction excellence –
coupled with technology, experience and expertise
gained over several decades – has helped the business
to continue to be one of the premium contractors in
the industry.
from esteemed customers for the construction of
convention centres in New Delhi and Jharkhand,
construction of AIIMS hospital in 2 locations, a store
for a retail major in Navi Mumbai and office space for a
renowned developer.
Key projects commissioned by the business during the
year include:
• Metro facility at Hyderabad
• Convention Centre in West Bengal
• Medical colleges for the Govt. of Odisha
• Kannur Airport
• High-rise residential towers in various parts of the
country
• Facility for Asian Paints in Mysore
Business Environment Review
The past two years have been very challenging for the
construction industry. The customer base of the business
showed a clear shift towards Government clients, as the
private sector deferred their investment plans due to
uncertainties caused by various economic developments.
Though RERA and GST were positives for the industrial
growth, the sudden implementation of these policies
brought India’s economy to a standstill for a few months.
The first half of the financial year was quite challenging
for the business, which has slowly stabilized, progressing
towards healthy GDP growth.
The year saw receipt of some breakthrough orders
from prestigious clients. Major orders were secured
Most of the airport projects that were deferred during the
last year have started showing positive movement this year.
ITC Colombo
Orient Cement project at Chittapur in Hyderabad
TCS Customer Care Centre, Chennai
151151
The IT sector in India remained sluggish. The Government
has been active in implementing various health care
schemes and establishing hospitals. On the whole, the
business scenario has been better than the previous year’s.
The Qatar embargo had some impact on the ongoing jobs.
There were no major orders from the GCC, as the economy
is reviving, with crude oil prices stabilizing after a steep fall.
Despite uncertain market conditions, the Buildings &
Factories business has managed to win major orders and
has continued to maintain its leadership position in the
industry.
Initiatives
Apart from continuing its focus on technological
advancements and R&D, the business has also introduced
major initiatives with the objective of strengthening
its customer portfolio, steadying business growth, and
expanding into emerging markets. Key moves have been
taken to strengthen the organization and follow a focused
approach towards projects that complement our strengths.
Various digital initiatives that were introduced last year
have been successfully implemented, and are operational
across all sites of the business. Value engineering, effective
procurement and supply chain management, operational
excellence, mechanized execution and innovative
construction methodologies have improved project cycle
times, enhanced profitability and delivered quality. The
business is associated with leading universities and industry
experts, pioneering use of Robotics and 3D printing in
construction.
Safety at work is of utmost importance to L&T’s Buildings &
Factories business, and the focus continues by organizing
various training and awareness programmes throughout
the year. Various initiatives have been taken up to digitally
monitor, record and review all safety-related aspects at site.
Awards & Recognitions
For the second time in a row, the business has been
awarded the prestigious ‘Sword of Honour’ from the British
Safety Council.
1. B&F received three British Sword of Honour awards and
a five star certification from the British Safety Council
2. Ten projects won the Gold Awards from The Royal
Society For Prevention of Accidents (RoSPA)
3. 16 projects were awarded by the National Safety
Council.
4. Indian Building Congress award for precast initiatives
5. Outstanding Contribution in Commercial Project award
from EPC World
6. Two awards for ‘Outstanding Concrete Structure’ from
Indian Concrete Institute and Two Construction Week
India Awards
Outlook
With expected GDP growth between 7.0 to 7.8% and
with Government’s continued focus on reforms, improved
World Bank ranking for ‘Doing Business’ and Moody’s
rating upgrade is expected to lift investor sentiment and
accelerate FDI flows in long-term. Some of the tailwinds
are:
• Airport traffic growth in the country will necessitate
immediate requirements of airport expansions within the
country.
ICC towers, Mumbai
Motera Cricket Stadium, Gujarat
WBHIDCO-Convention Centre at Kolkata
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• India is experiencing much growth in medical tourism,
and the industry is expected to double its size by end
2018.
• The Government has provided infrastructure status to
Affordable Housing. The relaxation of FDI in real estate
will steadily boost investment in this sector.
In the international arena, Bangladesh and the GCC offer
promising opportunities. The crude oil price is on a rising
trend. This is a healthy sign for the GCC’s economy and will
boost revival of stalled investment plans.
L&T’s Buildings & Factories business is a proven player in the
construction industry, with an exemplary record of handling
major design-and-build projects and executing them within
stringent timelines.
Overall, the environment is promising, yet challenging, with
a long process duration and increased competition.
Transportation Infrastructure
Overview:
The Transportation Infrastructure business is a
well-diversified business in terms of its product range
and geography of operations. The business offers
its services in the fields of Roads, Runways (Airside
Infrastructure) & Elevated Corridors (RREC), railways
(mainline and mass transit systems) and international
infrastructure. L&T’s Transportation Infrastructure
business has a presence across India, East Africa and
various GCC countries.
An integrated Light Rail Transit System, Mauritius
The business leverages its vast experience in Project
Management, Engineering Design & Construction
Management to achieve operational efficiency.
It has Engineering Design Centres in Mumbai,
Faridabad and Chennai and Offshore Engineering
Centre in Mumbai, besides Area Offices in India/
GCC countries. In addition, it has a competency
development centre at Kancheepuram, and undertakes
workmen training at L&T’s Construction Skills Training
Institute, Ahmedabad.
Over the years, the business has been fuelling its
topline with the help of a robust order book.
The business is the first Indian entity to receive an
order for delivery of a complete transit system abroad;
it secured a design-&-build project for a Mass Transit
System in Mauritius, an opportunity to deliver from
track to train. The business has won the prestigious
contract for construction of the New South Parallel
Runway, apron and associated works at Kempegowda
International Airport, Bengaluru on EPC basis.
The Railway Strategic Business has been awarded
a large EPC Civil, Structure and Track project in
the Eastern Dedicated Freight Corridor, involving
construction of 222 RKM of a single-track corridor
from Khurja to Pilkhani in Uttar Pradesh.
In the area of Mass Transit Systems, L&T’s Railway SBG
continues to grow in the domain of ‘Ballastless Tracks’
and ‘Traction System for Metros’ It has won projects
for ballastless tracks for the Ahmedabad Metro and for
power system installation and SCADA work in Mumbai
Metro Line 3.
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The business has been successful in expanding its
customer base during the year by securing various
orders for construction of highways, including 8L of
Dwarka Expressway (8.76 Km, Package IV), Haryana
from NHAI, 6L of Mumbai-Vadodara Expressway
(23.7 km), Maharashtra, Amaravati Capital City
Development project.
During the year, the Kanaktora- Jharsuguda Road
Project - a 66.9 km, 2-lane highway in Odisha - was
completed.
Business environment:
Sectoral Performance:
a) Roads:
• Construction of highways hit 27 km/day in 2017-18,
clocking a 20% growth over the 22.5 km/day in the
previous fiscal year.
• The Financial Year 2017-18 yielded projects worth over
R 1,220 billion. In the last 5 years, the average length of
road projects awarded by NHAI was 2,860 km compared
to 7,400 km in FY 17-18. This is a record accomplishment
by National Highways Authority of India since its
inception in 1995.
• The year 2017-18 saw a significant number of smaller
competitors emerging in the market, consequently
intensifying the competition.
be arranged for by the contractor and recovered through
annuities.
b) Railways:
• Track renewal at record high of 4,405 km for the year
2017-18. The renewal of tracks has been the highest
ever, which exceeded the target of 4,389 km (revised to
4,400 km) for the year 2017-18.
• New track-laying at a record scale of 3,100 km/yr in
2017-18 against average of 2,045 km/yr in 2009-14
• Railway electrification of 4,100 km surpassing their earlier
annual target of 4,000 km in 2017-18.
Sectoral Change:
a) Roads:
• NHAI has taken a decision to have a mix of BOT/EPC/
HAM projects in the ratio of 10:30:60 which will impact
our addressable market.
b) Railways:
• Change in Metro Policy. Public-Private Partnership (PPP)
component is mandatory for availing central assistance
for new metro projects.
• Projects being implemented on EPC basis - a paradigm
shift from conventional BOQ methods.
• High Speed Rail Projects on fast-track tendering to
commence in FY 2018-19.
• There has been a change in the modus operandi of
awarding projects, i.e from EPC mode to hybrid annuity
mode, where the Government brings in 40% of the
project cost during construction period and the rest is to
Policy Initiatives:
a) Roads:
• The National Highway network is to be expanded from
96,000 km to 200,000 km over the next 5 years.
A completed section of Western Dedicated Freight Corridor - Civil & Trackwork
Railway Signaling & Telecommunication
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• Expressways are finally seeing good traction in Northern
and Western India.
• The second blueprint road development programme has
been launched this year vide the Bharatmala Pariyojana.
b) Railways:
• Mission Raftaar focusing on enhancing network speed on
the Golden Quadrilateral – R 18,000 crore sanctioned in
budget 2018 for 2 corridors.
• Three New Dedicated Freight Corridors to be
implemented in next 2-3 years.
• Electrification of the remaining 25,000 RKM by 2021.
• New projects to be implemented through State-Centre
JV.
Safety Awards:
During the year, the business has won 14 international
safety awards: 1 Distinction, 8 Merit and 5 Pass from the
British Safety Council, 2 prestigious safety awards from
National Safety Council (NSC), India and also 1 gold award
from the American Society of Safety Engineers.
WDFC CTP 1 - 2 Railway project has won the prestigious
‘Golden Trophy Award’ Sarvashreshtha Suraksha Puraskar
in Construction Segment for the year 2017. This singular
distinction is the highest honour instituted by the National
Safety Council of India. The Railway’s business has won the
Gold Trophy twice in the last 3 years.
Despite all these accolades, challenges continue to remain
in creating a high level of safety awareness across linear
projects spanning hundreds of kilometres.
Significant Initiatives
On the execution front, the mega Civil & Track Projects in
the Dedicated Freight Corridor continue to speed up with
the usage of the new track construction machine and the
availability of continuous work front. Recently, high-speed
trial runs for a major section of Tracks were successfully
conducted in the Ateli-Phulera section of the Western
Dedicated Freight Corridor.
Also, the expanse in WDFC Electrification project (3145
track km), necessitate faster execution techniques. This
involves cylindrical foundation for the mast implantation
through heavy specialized augering machines, mast-
grabber-cum- multi-axis manipulator and overhead wiring
through state-of-the-art automatic wiring train.
L&T’s Railway business is at the forefront in implementing
innovative digital initiatives which are specific to linear
projects. Prominent among them are ‘Central Control
System on Track Vehicles Movement’ which not only
provides real-time tracking of machines, but also track
laying / completion status, collision warning alerts and
approaching LC gates alerts to both driver and LC gate
operator.
The business offers a platform for development and
engagement of employees across various levels such as:
• LEAP (Leadership Excellence Accelerator Program)
• EYS (Engineer Your Success) – Developing Planning
Engineers
• FULCRUM - Competency Development Programme
across all levels.
• GURUKUL – Mentoring by senior leaders.
7.4 km Elevated Corridor at Bhatnagar Kolkata
Garden Reach Flyover at Kolkata
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• NEEV – Strengthening the base of the organization
pyramid
A total of 780 participants were covered through the above
programmes in FY 17-18.
The business aggressively took up the digitalization
journey by connecting people, machines and materials in
various ways, at site and offices, to create more efficiency
and transparency in the processes to gain tangible and
intangible benefits. Key digital initiatives implemented in
2017-18 include:
• Project progress monitoring through Procube
• Plant and machinery utilization monitoring through Asset
Insight.
• Geospatial solutions have been deployed using drones,
Lidar and other GIS technologies to survey, stockpile
measurement, obstruction monitoring on Geo map.
• Grader automation – a niche solution deployed, involving
installing IoT devices on graders to make them semi-
autonomous, increasing grading efficiency.
• Mobile app based solution to digitize several safety
processes to make them paperless.
• Quality Chat Bot QT, which serves as ready reckoner for
highway engineering.
Digital solutions, in general, are helping the organization to
manage operations more efficiently. More solutions will be
in place in 2018-19 to extract benefits from investment in
technologies.
Outlook
RREC business
As the road sector is opening up, the Government aims
to spend close to R 7 lakh crore over the next five years
to develop 83,677 km of roads including Bharat Mala
Pariyojana worth R 5.4 lakh crore.
The Government aims to build 45 km of roads per day in
financial year 2019, an increase from the daily average of
almost 27 km achieved last year.
The Ministry has also set targets of awarding orders of
20,000 km of National Highways and constructing a total
of 16,420 km in 2018-19 – up from last year’s award of
orders for 17,055 km highways and 9,829 km constructed.
Railway Business
Indian Railways are planning the highest outlay of
R 1.46 lakh crore for FY 18-19 – an increase over last year’s
outlay of R 1.31 lakh crore.
The high-speed rail project is the next big-ticket
opportunity after the dedicated freight corridor
projects. While the pipeline of projects from Western and
Eastern Dedicated Freight Corridor is concluding, the
business is positively looking at the start of the bidding
process for the 508 km Mumbai-Ahmedabad High
Speed Rail Corridor (MAHSR). With the enhanced value
of the overall project at R 1,08,000 crore, L&T’s accessible
value stands at R 59,000 crore, comprising packages
for viaducts, undersea tunnel(s), stations, maintenance
depots, track, electrification and signalling. L&T’s Railway
business will focus on track, electrification and signalling &
telecommunications.
Delhi - Agra Highway
Al Batinah Expressway (Package 4), Oman
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Apart from the high-speed project, conventional projects
of the Indian Railways continue to get a big thrust, backed
by strong Institutional funders like LIC. These include
25,000 km of electrification to be completed in 4 years
under the banner of ‘Mission Electrification’. Also, the
capacity augmentation projects of track doubling will
involve construction of 17,000 km of additional tracks. The
business intends to participate in a major portion of these
projects through EPC tendering.
Besides mainline railways, the opportunities in the Mass
Transit Segment continue to be driven by Tier 2 Cities and
‘Extension lines’ in large metros. Leveraging its overseas
experience, the business is advocating the LRT solution
on an EPC turnkey basis for cities like Vijayawada, Indore,
Kozhikode and Thiruvananthapuram.
Internationally, the outlook on the Middle East construction
industry is improving rapidly with the uptick in oil prices
since mid-2017.
Growth in the region is expected, assuming a moderation
of geopolitical tensions and a modest rise in oil prices. GCC
economies are anticipated to lead stronger growth in the
region, supported by easing fiscal adjustment, Tendering of
mainline railway projects in Middle East is likely to resume.
Having been part of a major urban transit system in
Riyadh – which has progressed significantly – the business
is gearing up to address these upcoming opportunities as
well. Further infrastructure investment (such as the UAE
Expo 2020) and reforms to promote non-oil sector activity
are expected to offer opportunities.
The business also has focus on the neighbouring
geographies, with projects having secured funding either
from the Indian government or from other bi-lateral/
multilateral agencies such as JICA.
The business is exploring opportunities in main line railway
funded by an Indian Line of Credit and multilateral agencies
in select countries of South Asia (Sri Lanka and Bangladesh)
and the African continent.
The business is also exploring opportunities in new
geographies such as Eastern Africa and CIS. It has already
started bidding for tenders for projects funded by Indian
LOC and AfDB in Mozambique and Zambia, and has
received prequalification for ADB- funded EPC projects in
Azerbaijan.
Heavy Civil Infrastructure
Overview:
L&T’s Heavy Civil Infrastructure business undertakes
Design, Engineering and Construction of projects in
the crucial economic segments of Metros, Nuclear,
Special Bridges, Hydel, Ports, Tunnels and Defence.
The business has strong presence in India, Middle East,
Bhutan and Bangladesh. The goal of the business is
to become a one-stop total infrastructure solutions
provider to both its domestic and international
customers. The in-house design strength encompassing
latest technologies such as BIM (Building Information
Modelling) and its unique Construction Methodology
Cell give the business a clear edge over its competitors
and helps it serve customers from concept to
commissioning.
Kannur International Airport Runway
Six-lane Access Controlled Expressway from Unnao to Lucknow
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Business Environment
Infrastructure development is a key component in
empowering a nation’s economic rise by improving
the efficiency of production, transportation, and
communication. The availability and quality of
infrastructure in a region positively influences domestic
firms’ investment decisions and enhances the region’s
economic attractiveness to foreign investors.
The business turned in a very good performance in the
current year despite challenging market conditions. The
year was marked by receipt of multiple big orders, with
a major order from MMRDA for the construction of the
Mumbai Trans Harbour Link (MTHL).
Heavy Civil Infra has always focussed on its customers’
needs with the aim of optimizing their value chain and
providing excellent services, to increase their productivity
and competitiveness. The business focuses on adaptability
to adjust to market shifts and to leverage the advantages
offered by digital technology in order to further refine
organizational processes and technical prowess and move
further ahead of its competitors.
Metros
L&T’s Heavy Civil Infrastructure business offers extensive
end-to-end engineering and construction services for
elevated and underground metros. L&T is one of the
pioneers of Metro construction in India, with the first
venture being the Delhi Metro project. Since then, the
business has emerged as the prominent builder of metro
systems in the country, having constructed 143 km
of viaducts, 43 km of twin tunnels and 65 stations. In
the current year, the prestigious Hyderabad, Kochi and
Lucknow Metro systems built by L&T were inaugurated and
dedicated to the country by honourable Prime Minister Mr.
Narendra Modi (Hyderabad & Kochi) and Chief Minister Mr.
Adityanath Yogi of Uttar Pradesh (Lucknow). At present,
L&T is executing as many as 12 projects across 9 cities in 4
countries, including the Riyadh and Doha Metros.
Areas of Expertise -:
• Elevated viaduct construction using segmental, U-trough,
I-girder methods and balanced cantilever construction
• Underground tunnel construction using NATM (New
Austrian Tunnelling Method), cut-and-cover and TBM
(Tunnel Boring Machine) methods
• Underground station construction using top-down and
bottom-up approaches
• Elevated metro station with expertise in spine beam
concept (lean).
Defence
The Indian Defence sector is a strategically important
sector with very specific needs. The Ministry of Defence
has identified an urgent need to upgrade the country’s
defence infrastructure in order to maintain the readiness
of country’s defence forces and to prepare it for future
challenges.
L&T’s Heavy Civil Infra is well equipped and prepared to
offer its comprehensive range of services and expertise to
meet these very specific needs. L&T Construction offers
single-point EPC solutions from concept to commissioning
in the form of infrastructure facilities for Defence bases,
Hyderabad Metro Rail - One of the many metro projects being executed by L&T
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underground facilities, surveillance, etc. In the current year,
the business won a mega order from the Indian Navy.
there are five ongoing projects across India and one
international project in Bangladesh.
Nuclear Power
L&T has always been a pioneer in the Indian Nuclear
industry with current market share of over 51%. Its nuclear
power expertise extends to both Pressurized Heavy water
(PHWR) and Light Water Reactor (LWR) technologies.
Currently, the business is executing civil works for the
Kudankulam Nuclear power project, which is the first LWR
reactor in India and also one of the largest.
L&T has made history by successfully completing the
single largest concrete pour of 7,232 cubic metre at the
Kalpakkam site of the Ministry of Department of Atomic
Energy (DAE) Projects for nuclear structures in India. The
business also successfully achieved a single concrete pour
of chilled concrete of 6155 cubic metre at Kudankulam.
Areas of expertise-:
• EPC solutions in civil, mechanical, electrical &
instrumentation in Nuclear Power Plants
• Design capacity for end-to-end civil works including
seismic qualification, procurement and construction
services.
Special Bridges
L&T has built some of the finest and most challenging
bridges in India across difficult terrain, incorporating design
and construction technologies which stand at the cutting
edge of the construction world. Achievements include
building the longest operational extradosed bridge in India
across river Narmada at Bharuch, Gujarat. The business is
executing the longest extradosed bridge in the world at
Patna (Bihar) in a Joint Venture with Daewoo. Currently
620 m long cable-stayed bridge across the river Mandovi in Panaji, Goa
In the current year the business won a mega order to build
the Mumbai Trans Harbour Link (MTHL) from MMRDA.
Hydel & Tunnels
Hydel: The domestic Hydel projects scene in the current
year remained stuck at various levels owing to pending
clearances, inter-state disputes and local protests. The
once-promising North East region is also lagging due
to lack of sufficient support. The ambitious river-linking
project, which keeps getting delayed due to inter-state
disputes, is expected to gather steam. Telangana is
another region, which features promising opportunities
for the construction of barrages. The Medigadda Barrage
Project site set a record with the highest pour of 7,139
cubic metres of concrete in a single day, which is perhaps
the highest for its segment in the history of Indian
Construction.
Tunnels: New opportunities are expected for road tunnel
projects in Maharashtra and the Northern Himalayan states
of Jammu & Kashmir, Uttaranchal and Himachal Pradesh. In
addition, the Government of India is planning to construct
more storage caverns for strategic oil reserves. The HSR
(High Speed Rail) project due to be built between Mumbai
and Ahmedabad also presents robust opportunities in the
near future.
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)
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• Open and underground de-silting chambers
• Large underground power houses 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
Ports & Harbours
L&T’s Ports business unit has built marine infrastructure
that has given a great fillip to marine and waterway
transportation. L&T has significantly contributed to the
development of ports by designing and executing 7,000 m
berthing structures including liquid jetties, container
terminals, multipurpose berths and ferry terminals. The
Company is proud to have built 14000 m 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 project which adopted the
innovative concept of partial replacement of rock core
with dredged sand. It has also executed other maritime
structures like shipyards, caissons, long span approach
trestles, and intake structures, which are unique in nature.
We are looking towards the ‘Sagar Mala Project’ initiative
which focuses on the upgradation and development of
new ports as a promising prospect for future. Opportunities
are expected for marine infrastructure projects involving
dry-docks, marine intake structures and defence naval base
projects as well.
The year marked the receipt of prestigious projects, such
as two packages from MMRDA for construction of MTHL
(Mumbai Trans Harbour Link), construction of a six-lane
extra-dosed bridge across the river Hooghly, besides the
existing Iswar Gupta Setu at Kalyani (West Bengal) and
construction of a new dry dock at Cochin Shipyard.
During the year, major projects commissioned were: Kochi
Metro, Lucknow Metro, Hyderabad Metro, Chennai Metro
EDRC
Key capabilities being developed are seamless integration
of project stakeholders through common digital interface,
context capture of project environment through
photogrammetry and LIDAR techniques, augmented reality
/ virtual reality tools for better communication of project
components and customer experience, 4D visualisation
of planning and construction methodology, kinematic
simulation of equipment and enabling structures.
Initiatives
Striving to achieve the goal of ZERO HARM, the business
has launched the Corporate EHS Strategic Plan 2017-18
with key EHS deliverables that have been implemented
across all its operations. As part of the EHS Strategy, the
following significant initiatives were taken up during
2017-18:
• The business had engaged a professional agency to
review and revamp cranes and lifting management
safety standards, and conducted training sessions for all
stakeholders to facilitate implementation in all projects.
• Key EHS training initiatives include IOSH Managing
Safely certification courses for Project Heads, NEBOSH
One of the station buildings under construction for Doha Metro, Qatar
Medigadda Barrage Project
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certification courses for Project EHS In-charges, 2-day
Supervisor EHS Training for all site Supervisors (including
JV & Subcontractor) and online EHS certification courses
for technical employees.
• Total 853,700 man-hours of training on EHS were
conducted.
• 23 EHS Awards were won by the business at different
levels and categories from national and internationally
renowned organizations including RoSPA, NSC India,
BSC, and CII
The business aims for excellence in quality, to increase
the satisfaction of customers and other stakeholders
through effective cost-reduction and process improvements.
The business was successfully re-certified for the latest
Quality Management System ISO 9001: 2015, with focus
on risk-based thinking. Advanced concrete mix designs
(M75 Self-compacting) are developed and being used for
increased durability and for placing concrete in congested
locations. The business established a concrete mix design
using Ground Granular Blast Furnace Slag (GGBS), which
is the latest development in the industry. Welding and
heat treatment techniques were successfully developed for
high-strength quenched and tempered steel for specialized
projects.
Training is a necessary parameter for growth. The business
has prioritized the training of its staff on the latest QMS.
Training are provided in a focused manner for FLS and
other trainees on concrete techniques.
The business continues its focus on digital initiatives
including extensive use of BIM across the whole life cycle of
projects. Other initiatives include vehicle tracking, project
monitoring using mobile applications, P&M tracking,
worker tracking, biometrics, tool tracking, material
tracking, drones, geospatial surveys, etc.
Outlook
The Government sanctioned R 5.97 lakh crore
(USD 94 billion) as the budgetary allocation for
Infrastructure in FY 2018-19, which is approximately
21% more than an estimated expenditure of
R 4.94 lakh crore in 2017-18. This increase reconfirms
the Government’s view that infrastructure development
is the key to economic development. The Finance
Minister has estimated that investment in excess of
R 50 lakh crore in infrastructure is needed to augment
the economy and make it competitive with the other
emerging economies. A majority of this allocation has
been earmarked to build metros, bridges, hydro power
projects and tunnels, which form the core expertise
of the Heavy Civil Infrastructure business. With major
projects coming up, including the high-speed rail between
Mumbai and Ahmedabad, the Bharatmala and Sagarmala
river-linking projects, hydel projects on the Indus and its
tributaries, etc., the business is confident on achieving
its revenue targets backed by a strong order book and
promising prospects.
On the international front, the Middle East construction
market is expected to pick up pace again this year, offering
some promising prospects.
Break Water construction at Kudankulam Nuclear Project
Canopy erected for a station building at Riyadh Metro
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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 a significant share and a strong reputation in
the Middle East, Africa and ASEAN markets.
L&T’s substation business focuses on providing turnkey
solutions for extra high voltage air insulated / gas
insulated substations for utilities and power plants,
EHV cable & communication backbone networks and
complete electrical & instrumentation solutions for
various infrastructure projects such as airports, metros
etc.
L&T’s Power Distribution business provides a gamut
of EPC services related to urban / rural electrification,
including last-mile connectivity, augmenting, reforming
and strengthening of high voltage and low voltage
distribution networks, distribution automation
solutions and power quality improvement works.
L&T’s Transmission Line business offers turnkey EPC
solutions in overhead lines for power evacuation and
transmission, bolstered by its state-of-the-art tower
manufacturing units at Puducherry, Pithampur and
Kancheepuram which have supplied over 15 lakh
tonnes of tower components. The Testing and Research
Station at Kancheepuram 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).
L&T’s Solar business provides single-point EPC turnkey
solution for solar PV-related projects along with energy
storage solutions. Its experience ranges from flat to
highly undulated as well as to landfill topologies with
specialized technologies including designing and
executing contour-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 regions offer complete
solutions in the field of power transmission and
distribution, including substations, power transmission
lines, extra high voltage cabling, solar plants and
Electrical, Instrumentation and Control (EI&C) works
100 MVAR STATCOM at 400 kV NP Kunta Substation, Andhra Pradesh
500 kV Tha Li-Khon Kaen 4 Transmission Line, Thailand
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for infrastructure projects such as airports, oil & gas
industries, etc.
The Middle East Business Unit caters to the UAE, Saudi
Arabia, Qatar, Oman, Kuwait and Bahrain. The Africa
unit is currently focused on the Northern and Eastern
parts, and has established a presence in Algeria, Kenya,
Ethiopia, Malawi, Botswana, Morocco and Egypt. The
business is executing projects in the ASEAN countries
of Malaysia and Thailand while seriously pursuing other
opportunities in the region.
Business Environment
Thanks to a slew of Government schemes including
‘Saubhagya’, the distribution sector in India remained
vibrant in 2017–18. Having achieved electrification of
all the villages, now the focus is on electrifying all the
households. Also, the urban distribution revamp programs
continue aiming at multiple objectives such as improving
reliability of power, making the network disaster-resilient
and improving the aesthetics of cities of tourism and
heritage importance. The business maintained its leadership
position as a large EPC player in this segment, with key
orders from the states of Uttar Pradesh, West Bengal,
Jharkhand, Tamil Nadu, Karnataka and Andhra Pradesh.
The business is privileged to partner the Central and State
Governments in illuminating thousands of households in
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
(Aggregate Technical & Commercial) losses through
distribution reformation projects.
500kV HVDC Transmission Line at Kenya
With renewable power characterized by intermittency
being added increasingly to the grid, advanced solutions
to ensure voltage stability have been necessitated. L&T
commissioned India’s first STATCOM project of ±100MVAR
capacity at NP Kunta substation in Andhra Pradesh. A
major order was received from Power Grid Corporation
of India Limited (PGCIL) for implementation of STATCOM
in three locations in South India. 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 continues. Gas
and air-insulated substation orders were received from
PGCIL and State utilities including two major 400kV GIS
substation orders from South Indian transmission utilities.
Several key substation projects were commissioned
including 765kV gas insulated substations at Hyderabad,
Nizamabad, Varanasi and Aligarh.
Though the centrally driven transmission schemes were
less than the prevailing levels, the intrastate system
strengthening projects by States such as Jharkhand,
Karnataka, Kerala, Madhya Pradesh, Tamil Nadu and
Uttarakhand continued to provide ample opportunities
for transmission line construction. On the back of proven
execution skills to complete projects within schedule,
a repeat order from a reputed private developer was
entrusted to the business. The Testing Station continues to
attract orders from its customers worldwide – USA, KSA,
China, Indonesia and Malaysia – to test some of the highest
and tallest transmission towers in the world.
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The Transmission Line business has commissioned about 20
transmission corridors of 2800 km length in FY17-18. The
400kV Raipur–Jagdalpur project is the longest twin line in a
single package with a length of 328 km. Key projects such
as 765kV Lalitpur-Agra Transmission Line (328 km) and the
400kV Madhugiri–Gooty TL were commissioned for Power
Grid. The 220kV Kishenganga–Amragarh TL has been
successfully completed in Jammu & Kashmir, overcoming
the tough challenges posed by the weather, terrain and
local conditions. Other major projects commissioned
include 400kV Banda–Allahabad TL in Uttar Pradesh and
400kV Salem–Rasipalayam TL in Tamil Nadu.
With the country achieving a milestone 1 lakh GWHr of
renewable energy generation in FY 2017–18, L&T’s Solar
Business has seen remarkable growth. The business secured
a cumulative 650 MWp+ capacity of grid- connected
solar PV plants across India, including the prestigious
order for 325 MWp in Rewa, Madhya Pradesh, which is
also the single largest EPC contract in India to date; 140
MWp in Bhadla, Rajasthan and 187 MWp in Tamil Nadu.
The business also won the prestigious Bihar State Rural
Electrification project, the first-of-its-kind distributed
generation project with a cumulative capacity of 12 MW
solar and 105 MWh of energy storage, which aims to
electrify 236 remote villages.
In the Middle East, though the macro economic scenario
was mixed in 2017-18 as well, witnessing capex cuts
and intensifying competition, the business could garner
opportunities arising out of Expo 2020 related development
in the UAE and stable T&D investment plans by KSA, Qatar
and Oman. In the UAE, the business secured orders for
constructing a number of 132kV gas insulated substations
from Dubai Electricity & Water Authority and reputed
private developers. Despite spend cuts induced by the drop
in oil prices experienced earlier, causing a sense of anxiety
in the business climate, L&T secured its longest transmission
line in KSA (from Qassim to Madina – 421 km). Despite the
imposition of trade embargo, the business secured a major
order from a private developer in Qatar. L&T commissioned
33 substations in the Middle East in FY 2017-18. Having
qualified for the highest voltage levels in its lines of
business, new private customers have also been added.
In Africa, the business has made an entry into the
Moroccan and Egyptian markets. The foothold gained in
Algeria, Malawi and Kenya has grown stronger on the back
of fresh orders.
With the completion of the substation projects on schedule
in Malaysia, the business has demonstrated its capabilities
and has won recognition in the ASEAN market. Major
500kV substation and transmission line orders have been
secured in Thailand.
Significant Initiatives:
With a major thrust on digitalization as a key enabler,
the business rolled out several initiatives, including
3D/4D BIM, deployment of drones and mobility devices
for project monitoring, connecting plant and machinery
for asset monitoring, using geospatial technologies
for surveys, etc. 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.
220 kV Gas Insulated Substation at Mehairja, Qatar
756 kV Gas Insulated Substation at Varanasi
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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 the 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 behaviour-based safety, safety audit
and training the trainers. An innovative programme has
been developed to groom fresh diploma engineers to take
up roles as EHS professionals.
Training programmes have been developed in collaboration
with prestigious institutions to enhance operational
excellence.
Many initiatives earned awards and recognition for the
business during the year. These include:
• ISGF Innovation Award, Solar and Storage Project of
the Year award from Solar Quarter for Bihar Microgrid
project
• Prashasti Patr (Commendation Certificate) from the Bihar
Government for meeting electrification targets
• MEED ‘Power Project of the Year’ award for the Oman
project
• EIA Compliance Award for Lambir substation project
from Sarawak Energy Berhad
• ASSE GCC HSE Excellence awards for several projects in
Middle East
• RoSPA, British Safety Council and National Safety Council
awards for safety performance for multiple projects
• Special appreciation was received from the Federation of
Indian Chambers of Commerce and Industry (FICCI) for
RAPDRP Ghaziabad Project for best practices in Safety
Outlook:
On the power distribution front, several projects remain
significant: the centrally-driven scheme for last-mile
connectivity, viz. Sahaj Bijli Har Ghar Yojana (Saubhagya),
and various distribution reforms by State DISCOMs for
reduction of AT&C losses, power factor improvement,
network strengthening in disaster prone areas etc. Urban
power infrastructure is expected to get a makeover, with
underground cable networks, advanced metering facilities
etc. considering the thrust on development of smart cities
and heritage cities.
The increasing cost of land acquisition related delays have
led power grid / State utilities to increasingly opt for GIS
substations due to the small footprint they occupy. As the
power transmission / transformation capacities to cater
to the growing demand of urban centres increase, 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. The
much-need impetus is expected to be provided by power
quality improvement projects such as STATCOM, new
clientele from TBCB (Tariff Based Competitive Bidding)
players, state utilities strengthening their networks
with funding from multilateral funding agencies, and
infrastructure projects like metros and airports etc. The
financial health of state utilities, the political situation in
Microgrid Project for Rural Electrification in Bihar
Restructured Accelerated Power Development & Reforms Programme, Varanasi
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several states and the availability of funding will remain key
determinants.
Apart from the domestic market, the business is foreseeing
the pipeline of opportunities from SAARC countries like
Bangladesh, Nepal etc., which are funded by international
funding agencies such as JICA, ADB, IsDB, etc.
rooftop segment looks positive. To harness solar power
for rural India, the Government of India has formulated
Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM)
scheme, which aims at solarizing the agriculture sector
with ubiquitous use of solar power for tube wells and lift
irrigation projects. Emergent areas like floatovoltaics hold
promise.
System strengthening in state utilities will provide a
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, 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. The next phase of
green energy corridors is on the anvil. 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 remain upbeat,
with yearly solar capacity additions pursuing an upward
trajectory. The Private Power Purchase Agreement (PPA)
market in select states will pick up based on encouraging
open access policies and growing solar power viability.
Clarity emerging on GST and duties will help the sector
immensely. Advanced Battery Energy Storage Solutions
will see a rise due to grid stability requirements and for
electrifying rural households.
With upcoming state solar policies focusing on rooftop
projects with net metering schemes, the prospects for the
In the Middle East, the business is cautiously optimistic in
its outlook. The stable recovery of the oil price is expected
to boost investments in the T&D sector. Infrastructure
development will continue to be driven by mega events like
Dubai EXPO 2020, FIFA 2022 and grand plans such as Saudi
Vision 2030, Qatar National Vision 2030. Further 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 the transmission & distribution scene in
Abu Dhabi is a positive sign. In KSA, SEC (Saudi Electricity
Company) continues to invest in power infrastructure
projects. In addition, investment in the renewable sector by
a leading investor and plans for developing a transnational
city augur well for the KSA market. Power system capacity
expansion to cater to infrastructure growth is proceeding as
per plans in Qatar and Oman. Riding on a strong execution
track record in Kuwait, the business is in an advantageous
position to exploit opportunities from key customers in
Kuwait.
Input costs are bound to increase with the introduction of
VAT and removal of subsidies on fuel, power and water.
However, these will have a similar impact on all the players.
275 kV Air Insulated Substation at Lambir, Malaysia
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Prioritization of spending / budgetary allocation, friction
between Qatar and other Gulf countries, the slowdown
in Oman, and related delays in project finalization are
potential risks.
The business is concentrating on key African economies
that have a clear road map to build transmission and
distribution networks to meet increasing demand.
Grid strengthening, regional interconnection and rural
electrification opportunities are being pursued in select
countries. Renewable generation is another area that holds
potential. Having established a creditable track record and
subcontractor/ vendor ecosystem, the business is expected
to significantly scale up under the right conditions.
The rising power demand in ASEAN region paves the
way for significant investments in grid interconnections,
grid development and strengthening. In addition, an
interconnected ASEAN power grid is beneficial in many
ways such as generation – demand balancing and
renewable integration. With increasing share in Thailand
and Malaysia, the business expects to exploit potential in
Myanmar and other countries in the region.
The overall outlook for the PT&D sector remains promising
on both the domestic and the international fronts. The
business looks forward to consolidating its position in
established markets and gain significantly in new growth
areas, ably supported by its initiatives on cost leadership
and delivery excellence.
114 MLD Water Treatment Plant at Ranchi, Jharkhand
Water & Effluent Treatment
Overview:
1.1 billion people worldwide lack access to water
and 2.4 billion people are challenged by inadequate
sanitation. Many of the water systems that keep
ecosystems thriving and feed the growing human
population have become stressed. Rivers, lakes and
aquifers are drying up or becoming too polluted to use.
More than half the world’s wetlands have disappeared.
Climate change is altering patterns of weather and
water around the world, causing shortages and
droughts in some areas and floods in others. At the
current consumption rate, it is pegged that two-thirds
of the world’s population may face water shortages by
2025.
To cater to these various needs, L&T Construction’s
Water & Effluent Treatment business segment
has enhanced its process knowhow and detailed
engineering capabilities across all streams of Water and
Wastewater business in India, Sri Lanka, the Middle
East and Africa. Its formidable in-house engineering
capabilities, coupled with impeccable project
management skills, has put this segment much ahead
of the competition.
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Business Environment
The human population has successfully harnessed many
of the world’s natural waterways – building dams, water
wells, vast irrigation systems and other structures that have
allowed civilizations to grow and thrive.
Piped water systems have been set up by the Government
in most cities. But a large percent of semi-urban areas are
not covered by these, and rely on ground water. Piped
sewerage systems feeding into large treatment plants
exist only in bigger cities and metros. Most cities have
septic tanks or local waste management. Hence there are
opportunities in this area for providing water infrastructure
facilities.
The 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. Stringent implementation of
pollution norms is in place to encourage setting up of
common effluent treatment plants. In addition, large
investments have been proposed by multi-lateral funding
agencies for water supply and sewer projects to improve
the quality of urban life.
Desalination, water management, mega lift irrigation, mega
treatment plants and smart cities have started fructifying in
a large scale.
All these leave L&T’s Water & Effluent Treatment business
with huge untapped potential.
So far, the business has created water infrastructure to
cater to the requirements of 30 million people. It has
laid more than 3.5 lakh km of pipelines, designed and
constructed more than 5300 Million Litres per Day (MLD) of
water and wastewater treatment plants and brought more
than 2 lakh hectares of land under irrigation.
The Water & Effluent Treatment Business has commissioned
over 25 projects in FY 2017-18, including the following key
projects:
a) Gadag Water Supply Scheme, Karnataka
b) Bisalpur Jaipur Water Supply Project, Rajasthan
c) Nagaur TM 01,02,03 Water Supply Packages, Rajasthan
d) Water Supply to Adilabad and Khammam Districts,
Telangana
e) Rampur Sewerage Scheme, Uttar Pradesh
f) Sewerage Network and WW Treatment at Gayespur,
West Bengal
g) Dahej Water Supply Intake 50 MGD, Gujarat
h) Sauni Link 4 Package 3, Gujarat
i) CETP at Narol, Gujarat
j)
Infrastructure Development at NRDA, Raipur
k) D2A - Unaccounted for Water Project at Bengaluru
This year, the business has augmented its client-base by
adding 6 new clients, securing 3 mega contracts over
R 1000 crore in value and won orders in various business
375 MLD Sewage Treatment Plant at Jebel Ali, UAE
Medak & Sangareddy Water Supply Project, Telangana
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domains like water management, drinking water supply,
municipal waste water collection & treatment, integrated
urban infrastructure, common effluent treatment plants
and lift irrigation schemes. These include:
Keeping in mind oil price volatility and other uncertainties,
the business has cautiously evaluated projects on the
international front this year. The business is all set to win
major orders in the years ahead.
a) Providing 24x7 water supply to Pune from Pune
Municipal Corporation
b) Laying of sewer lines in an extended area of
Bengaluru City from Bangalore Water Supply and
Sewerage Board
c) Kundaliya Lift Irrigation Scheme from Water Resources
Department, Government of Madhya Pradesh
Significant Initiatives
The year witnessed significant initiatives being taken to
ensure that the Water and Effluent Treatment business of
L&T continues to be ahead of the competition, both in
terms of market share and profitability. These initiatives
include:
• Diversification into different lines of businesses
• Setting up spiral mills close to project sites for rolling HR
d) Surya Water Supply Scheme from Mumbai Metropolitan
coils into pipes
Region Development Authority
e) Sauni Yojana Link 2 Package 6, Gujarat
f) Mallana Sagar Reservoir Reach 2, Government of
Andhra Pradesh
g) Development of Integrated Infrastructure at Amaravati
from Capital Region Development Authority, Andhra
Pradesh
h) Seoni Water Supply Scheme from Madhya Pradesh Jal
Nigam Limited
i) Cuttack Water Supply Scheme for supplying potable
water to Cuttack District
j)
India’s First Brownfield Smart Infrastructure Project at
Udaipur, Rajasthan from Udaipur Smart City Limited
• The RACE initiative, realizing considerable savings
• Launching the Project Managers Development Program
(PMDP) to get the next generation of Project Managers
ready
• A dedicated O&M team to remotely monitor all the sites
through a Remote Monitoring system (RMS). This enables
getting expert guidance, troubleshooting support, etc.
• Introducing ‘O&M-Cognizance’, a daily E-learning
programme that keeps the O&M team updated with
current O&M practices
Awards & Recognitions
• Guinness World Record for the ‘Largest Sustainability
Lesson’ conducted in a college as part of World Water
Day Celebrations 2018
227 MLD Water Treatment Plant at Garden Reach, Kolkata, West Bengal
Floating Barge Intake at Sahibganj, Jharkhand
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• Best of India Records for the ‘World’s Largest Water
Conservation Campaign in schools on a single day’
• ‘Most Admired Company of the Year – Water Sector’
award from World Federation of Marketing
• ‘People Initiative of the Year’ awarded by ET Now for
PMDP
• 5 awards from Water Digest including ‘Best Urban Water
Solutions Provider’ and ‘Best Rural Water Solutions
Provider’.
The business has been driving digitalization over the past
two years to improve efficiency and productivity. Initiatives
implemented include:
• Digital Site Walk Through: A combination of hardware
(SmartGlass) and software solutions used to observe the
project progress, safety, quality, workmens’ welfare and
administration from any remote location.
• HR Dashboard: Provides a more advanced way to assess
metrics and Key Performance Indicators, allowing
organizations to present information in a more interactive
and user- focused manner.
• Customer Relationship Management (CRM): A tool
which enables effective management of the business,
from the early stage of prospects to award of contract
– and can be extended till O&M. The CRM platform
supports the tendering process. Once the prospect is
converted to NIT (Notice Inviting Tender), the Contracts
team will use the module to work with various
departments and for preparation of the bid. The tender
opening will also be captured in the system for further
data analysis.
Outlook
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. 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 and extension activities. 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.
Hence, the projects pipeline related to drinking water,
waste water and irrigation are expected to remain strong
in India due to growing demand and Government thrust.
Sector-specific focus is expected to shift towards rural
drinking water, ETPs/STPs and irrigation projects. Major
outlay based on the current status and priorities: Water
projects expected in Gujarat, Karnataka, Uttar Pradesh,
Bihar, Tamil Nadu, Rajasthan; Irrigation projects are
expected in Tamil Nadu, Telangana & STPs expected in Uttar
Pradesh and Bihar.
There is a push towards the PPP mode (HAM – Hybrid
Annuity Mode) for STPs (Sewage Treatment Plant) causing
big Infra developers to enter the water sector. There is
the probability of this getting extended to WTPs (Water
Treatment Plant) / ETPs (Effluent Treatment Plant).
Sewage Treatment Plant at Al Shamal, Qatar
Sauni Yojana Lift Irrigation Project, Gujarat
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At present, the competitive landscape is such that L&T
along with few selected players are only competing
pan-India, while the smaller players are focusing on their
home ground. Competitors tend to form JVs with regionally
strong players and technology licensors for PQ and project
execution.
In the international market, opportunities have been
identified for water treatment, sewage treatment and
desalination plants in Middle East. The business has already
made its mark in Tanzania and Sri Lanka and more orders
are expected from these geographies. Tireless efforts are in
place to expand into other parts of Africa and Bangladesh.
Smart World & Communication
Business
Overview:
L&T entered the Smart World & Communication
business two years ago, specifically to address the
need for a safe, smart and digital India. It has executed
several projects under these segments, many in an
advanced stage of implementation. The business is
positioned well for accelerated growth for the year
2019.
The business has three segments – the first for Safe
Cities; the second, Smart Infrastructure; the third,
Telecom and Communication Infrastructure.
The Government of India continues its investments
to leverage smart and digital technologies for cities
and rural parts of India, focusing on a safe, smart and
connected India.
L&T offers a bouquet of Smart City solutions
In this domain, L&T is at the forefront, collaborating
with the Government in leveraging technologies to
meet those goals. L&T is perfectly positioned to build
India’s next-gen safe, smart and digital infrastructure.
As a Master System Integrator, L&T has proven
expertise in focused strategy, robust processes and
comprehensive end-to-end solutions to cater to India’s
smart and digital requirements.
With its unique positioning and technology-driven
portfolio, the business has been able to attract talent
from across industries, comprising a diverse pool of
resources spanning technology, software, hardware
and domain specialists from relevant industry verticals.
Smart Cities
L&T has established itself as the leader in the smart city
domain. Starting with the Jaipur Smart City Project – India’s
first ‘smart city’ – the business is currently executing five
major ‘smart city’ projects that, inter alia, include Nagpur,
Pune, Vizag, Raipur, and is positioned well in a few others.
L&T is executing India’s First Integrated Smart City project
for Nagpur City in Maharashtra, including the creation of
a ‘smart’ strip of approximately 6 km with state-of-the-art
systems powered by smart ICT interventions like smart
transport, solid waste management, smart traffic, smart
lighting, smart parking and environmental monitoring
systems.
For the city of Pune, in partnership with Google, the
segment successfully launched wi-fi services. Other smart
elements under implementation are emergency call boxes
and public address systems, environmental sensors, variable
messaging displays, network connectivity, video analytics
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integration and state-of-the-art Smart City Operation
Centre (SCOC).
In the city of Visakhapatnam, apart from the above-
mentioned smart elements, L&T’s project includes
implementation of other smart elements such as solid
waste management system, a first-of-its-kind smart
pole, smart lighting and Enterprise Resource Planning. In
February 2018, the Hon. Chief Minister of Andhra Pradesh
inaugurated the Command Control Centre of the Vizag
Smart City Project.
The business also commissioned wi-fi and a data centre for
Chennai city.
In FY 2017-18, the segment secured the following orders:
a. Raipur Smart City Limited for Implementation of
intelligent traffic management system, city surveillance
system and integrated command control centre in
Raipur city.
b. The first and highly prestigious order for
implementation of smart meters in about 17 districts
in Uttar Pradesh (for six DISCOMS) and Haryana
(two DISCOMS). This is India’s largest smart meter
roll-out – implementation of 5 million smart meters
across these two States. This is the first large-scale
project involving deployment of all the applications on
the Cloud, including head end system and meter data
management system.
c. Tamil Nadu Data Centre Project for Tamil Nadu State
Govt. and Bhubaneshwar Data Centre Project for
National Informatics Centre, marking L&T’s foray into
the business of stand-alone data centre projects.
Command & Control Centre, Mumbai
Communication & Telecom Infra
L&T provides end-to-end solutions for a range of
requirements covering fibre- optic backbone, microwave
and satellite communication, network and telecom
infrastructure, wi-fi systems, early warning dissemination
systems, emergency response systems, metro
communication, etc.
Playing a key role, L&T supported Bharat Broadband Nigam
Limited (BBNL) in the Bharat Net programme by deploying
the Gigabyte Passive Optical Network (GPON) technology
across eleven States in India, and also Network Operating
Centres (NOCs) in Bengaluru and New Delhi. This has
received much appreciation from the Department of
Telecom, Ministry of Communication.
L&T also successfully created 1,900 wi-fi hot spots and
10,500 access points across 10 states in Phase 1 covering
both urban and rural areas, as well as another 1,900 wi-fi
hot spots and 1900 access points across 10 states in Phase
2 in rural areas.
L&T also commissioned a dedicated network for the Indian
Air Force, connecting a number of Air Force stations
pan-India.
As part of another Digital India initiative, L&T commissioned
wi-fi access to around 300 colleges in a University in the
State of Bihar on behalf of BELTRON.
L&T has commissioned the first phase of the Cyclone Early
Warning Dissemination System (EWDS) – the first of its kind
in India – for the State of Odisha. For Andhra Pradesh, the
EWDS is at an advanced stage of completion.
L&T is executing the comprehensive metro
communications package for the Lucknow Metro and
a TETRA communications package for the Delhi Metro.
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In FY 2017-18, it won orders for similar packages for the
Nagpur Metro in Maharashtra and the MEGA Metro for the
city of Ahmedabad, Gujarat.
In alignment with the Government’s state-wide area
network initiative to provide digital connectivity between
the State/UT Headquarters and the Block level via District
/ sub-Divisional Headquarters, L&T has won an order from
the State of Jharkhand to cover 24 Districts across the
State.
L&T has won a contract from Rajasthan Rajya Vidyut
Prasaran Nigam Limited (RRVPNL) to create a ‘Smart
Connected Grid, Smart Transmission Network and Asset
Management System’ across the State of Rajasthan,
covering about 624 power utility sub-stations.
Security Solutions Business
Video-based surveillance has emerged as a fundamental
tool to support law enforcement agencies to accelerate
the pace of detecting and preventing crime and improving
emergency response systems for people in distress.
The core strength of the business lies in offering a holistic
spectrum of sustainable and scalable security system
solutions for pan-city and pan-state surveillance, homeland
security systems, intelligent traffic management systems,
critical infrastructure across ports, airports, metros, IT parks
and public buildings, etc.
Starting in a small way with the Sabarmati Jail Surveillance
Project and the development of surveillance and intelligent
traffic management systems (in Ahmedabad, Gandhinagar
and Vadodara) for the Government of Gujarat, L&T has
commissioned the largest surveillance project of its kind for
Mumbai.
Intelligent Parking Management System
On 5th September 2017, the Chief Minister of Maharashtra
declared India’s largest city surveillance project ‘go-live’.
This is the ‘Mumbai City Surveillance Project’, comprising
~5,000 cameras at over 1500 junctions in city. As part of
this project, L&T has delivered state-of-the-art command
control centres for the city, which is being utilized by the
City’s Administration and Police, not only for surveillance
activities but also for overseeing natural emergencies and
the strife-like situations that the city goes through from
time to time.
The business is currently executing the largest city
surveillance (over 10,000 cameras) and traffic management
network for the cities of Hyderabad and Cyberabad.
In Rajasthan, three city Command Control Centres
at Bharatpur, Jodhpur and Bikaner and the Dial 100
Emergency Response System were also successfully
commissioned in FY 2017-18.
Awards
The business has received various awards, particularly for
Smart City initiatives and Surveillance Projects. Awards
received during the year include:
Award Category
Smart Urban Traffic
Management Initiative
Project
Hyderabad Intelligent Traffic
Management System
Best Smart Cities Initiative
Nagpur Smart Cities
Smart Surveillance Initiative Mumbai City Surveillance
Best Innovation Initiative
Nagpur Smart City
Best Project in Building
Smart Cities
Pune Smart City
Tourist Attraction City
Jaipur Smart City
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Award Category
Adaptation & Resilience
Project
Odisha EWDS
Smart Solution of the Year
Nagpur Smart Strip
Outlook
FY 2018-19 looks promising for the business, given the
boost the Government has given to safe and smart cities
and other digital initiatives.
The Union budget for FY 2018-19 has allocated over
R 25000 crore – an increase of 22% over last year’s
allocation – towards various initiatives in the areas of smart,
digital, etc. This augurs very well for the interest pursued by
the business.
Several Tier-II cities are expected to roll out surveillance
projects. Additionally, the transportation sector is also
moving towards surveillance and traffic management
systems. A few of the RFPs are in an advanced stage of
preparation, such as railway surveillance and highway
traffic management system.
Under the Central Government’s Smart City Mission for
developing 109 smart cities across India, the cities have
already been shortlisted and several are at advanced stages
of RFPs and have received Central Govt. funding. These
cities will be coming up with RFPs shortly, and the balance
cities are likely to follow in FY 2018-19. Equipped with
diversified smart offerings, L&T is well-placed to address
these opportunities.
In addition to the above, special focus is laid on the
modernization of defence and homeland security. In the
defence sector, perimeter surveillance systems to the Navy
and Air Force are also shaping up.
The Bharat Net programme is one the world’s largest
network infrastructure projects. It aims to digitally connect
250,000 villages (gram panchayats) across the country and
unite India digitally. The second phase of the Bharat Net
program has been floated and aims to deploy network
infrastructure to the 140,000 gram panchayats on a
fast-track basis.
The objective of the Bharat Net programme is to facilitate
the delivery of e-governance, e-health, e-education,
e-banking, Internet and other services to the rural India,
thereby enhancing the quality of rural life.
Along with rural digital initiatives, the Government is
also focussing on increasing the number of wi-fi hotspots
across the country. BSNL is planning to ensure that there
are half a million more hotspots by the end of December
2018. The aim is to digitally touch India’s 1.25 billion
population.
One of several initiatives of the Government in the energy
sector is the drive for replacement of old analog meters
with new, tamper-proof, digital smart meters for domestic
consumers.
The metro initiative is gaining further impetus, with the
addition of metros for cities of Mumbai, Bengaluru,
Hyderabad, Nagpur, Ahmedabad, Chennai, Jaipur, and
Kochi in the next few years. In addition, there are proposals
for Mass Rapid Transport Systems for Pune, Chandigarh,
Ahmedabad, Kanpur, Ludhiana, Bhopal, Indore and
Faridabad.
Both technically and financially, the Government has been
supporting the set-up and upgrade of State Wide Area
Networks (SWAN). The business expects opportunities in
State Wide Surveillance.
Information Kiosk at Jaipur - a Smart City solution
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Power
Business
Overview
L&T’s Power business offers concept-to-commission
integrated business solutions to the thermal and
nuclear power industries. It undertakes large EPC
projects on a lumpsum turnkey basis in the fields of
coal, nuclear and gas based power plants in India and
overseas. The business is planning to undertake STG
Island contracts in upcoming PHWR nuclear-based
power plants.
The business has a track record of executing large-size
and complex projects with capabilities that include
in-house engineering, state-of-the-art manufacturing
facilities, project management expertise and a healthy
and encouraging work environment.
The business boasts of a state-of-the-art facility at
Hazira (near Surat), where it manufactures ultra-
supercritical / supercritical boilers, turbines, generators,
pulverizers, axial fans, air-preheaters and electrostatic
precipitators. The facility is responsible for adding more
than 7GW of supercritical power generation capacity
to the Indian Power sector since its inception.
The business has the following subsidiaries:
L&T-MHPS Boilers Pvt. Ltd., a joint venture with
Mitsubishi Hitachi Power Systems Limited (MHPS)
Japan, engineers, designs, manufactures, erects and
commissions ultra-supercritical / supercritical boilers up
to a single unit of 1000 MW in India. The Company
is also looking forward to gaining a foothold in the
selective catalytic reduction system market in India,
which is likely to open during 2018-19.
L&T-MHPS Turbine Generators Pvt. Ltd., a joint
venture with Mitsubishi Hitachi Power Systems Limited
(MHPS), Japan and Mitsubishi Electric Corp. (MELCO),
manufactures STG equipment of capacities ranging
from 500 MW to 1,000 MW. The Company is engaged
in the engineering, design, manufacture, erection
and commissioning of ultra-supercritical / supercritical
turbines and generators in India.
The business also has a joint venture with Sargent
& Lundy LLC, USA (S&L), a global consulting firm in
the power industry, offering complete power plant
engineering and consultancy services – from concept
to commissioning. Another joint venture with Howden
Group, UK, enables the manufacture of fans and air
pre-heaters.
Presently, the business is very active at various sites
in India for its coal-based power plants, and in
Bangladesh for its gas-based power plants.
Business Environment:
The lack of momentum in industrialization and moderate
economic growth have directly impacted the power sector
in recent times.
The power sector is facing various challenges like shift of
focus towards renewables, decline in thermal PLF, financial
stress, promoter’s inability to infuse equity and service debt,
2x660 MW Supercritical Thermal Power Plant at Nigrie in Singrauli district, Madhya Pradesh. L&T executed Boiler and Turbine Island on EPC basis.
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falling electricity prices at exchanges, non-availability of
long term PPA, coal linkages, water availability, land issues,
etc. The Government’s focus on renewables has particularly
impacted the capacity generation of thermal power plants.
Further, the excess manufacturing capacity in the market
continues to put pressure on the prices. During these trying
times, the business sees the opportunity to reorganize,
consolidate, cut costs and improve efficiencies to make it
more competitive in the market to secure future orders. The
business will continue its stand of not bidding at margin
diluting prices. Instead, it will work in an organized manner
to make itself cost-competitive to win and successfully
complete such projects.
There is some cause for cheer, despite the challenges being
encountered by the power sector in the past few years. The
business is confident of revival of capacity enhancement
in the thermal power sector to match the projected rise in
demand for power, in line with economic growth in the
country. In this context, the business will continue to focus
on coal and gas-based power projects and its adjacencies
like replacement of old power plants, R&M and new
business for FGD / SCR systems, sub-critical plants, nuclear
STGI plants, etc.
During the year, the business continued its foray into
Bangladesh, with one more 400 MW combined cycle
gas-based complete EPC contract.
The business has successfully commissioned two gas-based
combined cycle power plants in Bangladesh, and has
added capacity of more than 600 MW to the grid. Further,
two gas-based power plants totalling 800 MW are under
construction, and will be completed well within the
contractual period.
The success in Oman in the HRSG segment of gas-based
power plants and export jobs through joint ventures
continues to mark the business’s capability to meet
international execution standards, and proves its
competitiveness among international players.
The business is poised to focus on new territories outside
India to mitigate the risk of low domestic demand.
The business has also diversified into environmental
solutions, actively started to participate in FGDs, and
is hopeful of making a breakthrough in the upcoming
tenders. It will also participate in the replacement project
market, which is estimated to be around 46 GW, and will
see the replacement of old and inefficient power plants in
the country.
The business continues its operational excellence on the
jobs in hand by completing the various milestones of the
projects in record time. The dedication of the Mahagenco–
Koradi project to the nation (3x660 MW) is an example of
this operational excellence. The business, despite its quest
to complete project milestones on time, has never lost
sight of the safety and quality of execution. The receipt
of various national-level awards on safety and quality is a
testimony to this.
Nuclear power, being a clean source of energy, is going
to play a key role in the Indian power sector in the next
few years. The Government has an ambitious plan to
increase the nuclear power production to 23 GW by
2031 from the current level of 7 GW. The business sees
360 MW Combined Cycle Power Plant, Bheramara, Bangladesh, built on EPC basis
225 MW Combined Cycle Power Plant, Sikalbaha, Bangladesh, built on EPC basis
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large-value opportunities in this segment. The business
has incorporated the manufacturing capability to produce
turbines of 700 MW capacity related to PHWR nuclear
power plants.
Significant Initiatives:
The business has deep-dived into cost-optimization
programmes, and is confident of successful implementation
in the upcoming tenders. Internationalization and portfolio
enhancement continue to remain the focus of the business.
Enhancing its capability towards these initiatives, the
business is geared to benefit from any opportunity available
in these areas.
The business is also giving due importance to digitalization.
It aims to achieve cost reduction, carry out smart operations
and shorten project timelines through these initiatives.
Smart asset monitoring using IoT and smart manufacturing
initiatives have been identified as important digitization
measures to improve business processes and optimize
equipment utilization.
The business has carried out various initiatives to improve
its localization of manufacturing activities.
It regularly reviews its internal control processes, and has
ensured an adequate internal control system commensurate
with the size, nature and risks of its business operations. It
also continues with its risk mitigation initiatives through risk
management practices and regular reviews.
Outlook:
Looking ahead, the power sector in the country is set to
grow to meet the increased demand due to the expected
GDP growth in the country. The growth in industrialisation
is the key to economic growth, which in turn will lead to
a major thrust in the power sector, as power is required to
support industrialisation.
Government initiatives like Ujwal DISCOM Assurance
Yojana, rural electrification programmes, the programme
on 24x7 power for all, and centralised purchase of 2500
MW of power from stressed power projects by the Central
Government for 3 years are some of the measures being
implemented towards raising the power demand so that
the power sector embarks on a sustained recovery path.
The business sees that the power sector is expected to
unfold many more such positive trends in the areas of
generation, transmission and distribution to increase the
demand.
Coal will continue to be the mainstay of the domestic
power sector for providing stable, reliable and robust base
load power supply – though the emergence of alternative
sources in the form of renewables is another challenge for
the business.
The business sees opportunities in the ‘replacement market’
and in ‘FGD systems’ in the near future. The business is
ready to capitalise on any opportunity in these diversified
areas.
Excess capacity and aggressive pricing will continue to
haunt EPC players, and would reflect in the pricing and
financials.
South East Asia continues to offer good opportunities for
gas-based plants, which are not expected to revive in India
in the near future. The business has taken various steps to
enter targeted markets like Bangladesh, Sri Lanka, the UAE
and Indonesia for gas-based projects.
Boiler manufacturing facility, Hazira, Gujarat.
Turbine manufacturing facility, Hazira, Gujarat
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Heavy
Engineering
Business
The Heavy Engineering business is structured into two
business groups:
• Process Plant Equipment and Nuclear
• Defence and Aerospace
Process Plant Equipment and Nuclear
Overview
L&T’s Heavy Engineering (HE) business is amongst the
top 5 global fabricators to supply engineered-to-order
critical equipment, piping and systems for core
sector industries - Fertilizer, Petrochemical, Refinery,
Oil & Gas, Gasification, Thermal & Nuclear Power,
including critical revamp and up-gradation projects.
These equipment and systems are the most critical
part of major investments. The business has achieved
international recognition through an impeccable
track record of executing large and complex projects.
Capabilities include state-of-the-art technology,
engineering analysis, globally benchmarked, fully-
integrated manufacturing facilities, a Research and
Development centre, and an experienced and highly
skilled talent pool. The sustainability and safety
Two trains of FCC Packages (8,650 MT) for Petronas RAPID Project, Malaysia
standards at manufacturing facilities are on par with
international standards.
The business is a leading supplier of hydro-processing
reactors, ethylene oxide reactors, fluid catalytic
cracking reactor regenerator systems, high-pressure
breech lock heat exchangers, waste heat boiler
packages, ammonia converters, urea reactors,
urea strippers, methanol converters, coke drums,
proprietary internals and other critical equipment
for process plants. Nuclear power sector supplies
include equipment such as steam generators, end
shield assembly and pressurizers.The manufacturing
facilities are located in Mumbai, Hazira (near Surat)
and Vadodara. The business also provides modification,
revamp and up-gradation services in niche areas. The
Piping business unit fabricates critical piping spools
for applications in the power, refinery, petrochemical,
fertilizer and chemical sectors (for high-pressure,
temperature and corrosive services) and has a track
record of exporting piping spools globally.
The business has a JV with Nuclear Power Corporation
of India (NPCIL), which holds a strategic facility to cater
to the demand for critical forgings required for the
Indian Nuclear Power programme and for other crucial
sectors like Defence, Hydrocarbon and Oil & Gas.
Business Environment
A sluggish global economy impacted the business for the
first 3 quarters of 2017-18. Key markets, viz. USA, Brazil
and China, offered very few opportunities. Other major
markets targeted i.e. Iran and Russia, were impacted due
to geopolitical reasons. The Middle East economy slowed
down due to lower oil prices. Worldwide, most countries
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responded to the slowdown with restrictive import policies
and the demand for localization. On the domestic front,
major economic reforms, viz. Demonetization and the
introduction of the Goods & Services Tax (GST) led to a
delay in the tendering process and investments.
The order inflow for the Nuclear business was impacted
due to slow progress in order placements. Surplus
capacities and limited demand led to aggressive
competition and put extensive pressure on pricing and
deliveries. The business focused on operational excellence
to deal with the challenging market scenario and regained
its competitiveness. Major orders executed in 2017-18
include equipment for RAPID, EXXON, KNPC AL ZOUR,
CPCL, IOCL, KBR Lotte Chemicals etc. Major orders received
include orders for reactors, columns and vessels from HPCL
including heaviest hydro processing reactor by L&T – 1840
MT, coke drums from Marathon USA, a major nuclear order
for steam generators and end shields for GHAVP, Haryana.
Significant Initiatives
In order to maintain its leadership position, the business
has drawn up a five-year Strategic Plan focusing on
profitable growth. Major initiatives include product
portfolio restructuring, key account management, talent
management and organization excellence. Digitalization
has been identified as a key driver for improving quality
and productivity. The culture of continual improvements in
operations helps the business attain global benchmarks.
The Product & Technology Development Centre of the
business is focusing on the development of new products
and manufacturing technologies. The areas of focus include
welding and metallurgy, heat transfer, hydrodynamics and
computational fluid dynamics.
Outlook
With the uptick in crude oil prices, there is revival in the
demand for oil in international markets. Global growth
started picking up towards the end of FY 2017-18, and
the business outlook for the Process Plant sector looks
optimistic, with major investment proposals expected in
South East Asia, MENA and the domestic market. Major
investments are expected in five to six refineries around the
world in view of the increase in global demand. Foremost
opportunities include Takreer in Abu Dhabi, DUQM in
Oman, KNPC in Kuwait and Thai Oil in Thailand.
The domestic market is also showing signs of revival of the
Capex cycle by major players in the petrochemical sector.
Investments are expected in the domestic sector by IOCL,
HPCL, HMEL and BPCL for capacity enhancement and BS-VI
upgradation to comply with the applicable fuel standards.
This is going to benefit the business in the form of steady
order inflow in the medium term. In the Fertilizer sector,
major opportunities include revival of sick FCI and HFCL
units, energy saving and capacity enhancement projects
driven by the New Urea Policy 2015 (NUP 2015). The
upcoming opportunities in Talcher Fertilizer will also open
fresh avenues of business growth.
In the Nuclear sector, fleet procurement opportunities
in 700 MWe PHWR projects will provide large growth
opportunities in FY 2018-19.
Heavy Thick Vessels (3,312 MT) for KNPC Al-Zour Refinery, Kuwait
Methanol Converter
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Defence and Aerospace
Overview
L&T’s defence business provides indigenous solutions
across the spectrum – from platforms to surveillance-
to-strike capabilities. Having started as a diversification
initiative primarily with the R&D model, the business
has metamorphosed through growth phases,
developing technologies, products, systems, and
providing solutions across the communication, weapon
& weapon delivery systems, and platforms for naval
applications. Currently, the business has grown into an
integrated portfolio and serves the Armed Forces and
the Defence Research & Development Organisation
(DRDO).
The Defence business is structured into two business
groups:
1. Defence & Aerospace
2. Defence Shipbuilding (reported under ‘Others’ segment
in financial statements)
1. Defence & Aerospace
L&T’s Defence and Aerospace (D&A) business is today
engaged in design-to-delivery solutions and serially
produces these across its chosen defence segments.
For over three decades, L&T has focussed on design,
engineering and building Indian products, systems and
technologies with Defence Research and Development
Organisation, India (DRDO), as well as with its in-house
research and development. The business has developed
and is into manufacturing artillery systems, air-defence
systems, land & naval weapon systems with associate
fire-control solutions, naval equipment & systems,
engineering systems for land and naval forces, military
bridging systems, communication systems, missile
propulsion air frames and rocket motors for space-
launch vehicles.
L&T has stayed committed to ‘Make in India’, and
has invested in creating multiple work centres across
the country dedicated to the defence business. These
include the assembly & integration facility at Talegaon
near Pune, missile sub-system manufacturing facility
at Coimbatore and the defence electronics facility at
Bengaluru. Besides these dedicated facilities, specific
work-centres are set up at Hazira (near Surat) for
the strategic programme, Ranoli (near Vadodara) for
advanced composites, at Powai (Mumbai) for prototype
development and testing, and a site at Vishakhapatnam
operating under the GOCO model for a strategic
programme. L&T continues to develop indigenous
systems and solutions for the ‘Indigenously Designed,
Developed and Manufactured’ (IDDM), ‘Make’ and ‘Buy
and Make Indian’ category of programmes under the
Defence Procurement Policy. It has planned investments
in its Product & Technology Development Centre at
Powai and at Bengaluru for technologies of the future.
The business has a Joint Venture (JV) with MBDA
(world leader in missiles and missile systems), and is
well-poised to develop and produce futuristic missiles
and missile systems to meet the growing potential
requirements of the Indian Armed Forces.
K9 Vajra-T 155mm/52 Cal Self-Propelled (SP) Tracked Gun
Pinaka Multi-barrel Rocket Launcher
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2. Defence Shipbuilding
The shipbuilding business operates two defence
shipyards – one at Hazira Manufacturing Complex
(since 2007) and a greenfield mega shipyard at
Kattupalli near Chennai (since 2012). Located across a
sprawling 1225-acre complex, the Kattupalli Shipyard
is India’s largest shipyard, designed in-house, and
built to globally benchmarked technological practices.
Dedicated, independent Design Centres for warships
and submarines are equipped with integrated 3D
design, analysis, virtual reality and Product Lifecycle
Management, interfaced with project management and
ERP systems in line with global best practices.
The shipyards have successfully delivered interceptor
boats, offshore patrol vessels and a floating dock for
the Indian Navy, with the remarkable achievement of
each vessel being either ahead of time or on schedule –
a new benchmark in the Indian shipbuilding industry.
Business Environment
In line with the motto of ‘Make in India’ and ‘Ease of doing
business’ agenda, the Government has brought about
major improvements in policies in the Defence sector. The
enabling policies include release of a Strategic Partnership
Policy, Simplified Make II Procedure, announcement of
Defence Industrial Corridors and a draft Defence Production
Policy. With these policy initiatives moving towards creating
a level playing field over the past three years, the import
content has shown a downward trend.
The Capital Budget for Defence in FY 2018-19 has grown
by around 7% as compared to that during FY’18. The
major allocation of the capital budget is to meet existing
commitments of MoD, and the allocation to undertake
new acquisitions is likely to be under pressure. With the
preferential categorization of acquisition programmes
towards indigenous sourcing, India’s imports are expected
to continue to show downward trends, going forward.
There is also active support and facilitation by the
Government towards indigenous defence production and
export.
In the Aerospace segment, L&T collaborates with ISRO
as technology partners for the development of special-
purpose test facilities for India’s space programmes. In the
wake of meeting increasing demands of the space sector
in a timely manner, ISRO is exploring outsourcing of launch
vehicles and sub-assemblies to the private sector.
Significant Initiatives
The business is focused on achieving a profitable growth
as per its Strategic Plan. It has been built on the strengths
of R&D and Design, matched by great production
performance over the past three decades, with unstinted
technology, product development and investments in
innovation. The new Integrated Reporting Standards
which the management has decided to embrace from
FY 2018-19 stresses upon the need to look at sustainability
even more comprehensively, and commitment to social
programmes. The business continues to efficiently leverage
human capital, invest across work centres towards
digital transformation, focus on conserving and utilizing
alternative sources of energy, and further enhancing
efficient process and business sustainability, besides
protecting the environment.
L&T is building 54 Interceptor Boats for the Indian Coast Guard
One of seven offshore patrol vessels designed and built by L&T
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The Government has awarded L&T the largest-ever
contract on a private player for Tracked SP Artillery
Howitzers. Therefore, L&T is setting up an Armoured
System Complex at Hazira to serially produce these K-9
Vajra Howitzers. This programme has served as the clear
indicator of the MoD’s commitment to push the ‘Make in
India’ agenda.
Outlook
With the draft Defence Production Policy highlighting the
vision ‘to make India among the top five countries of the
world in Aerospace and Defence industries, with active
participation of public and private sector…’ the preference
for indigenously designed and developed systems will
result in opportunities in adjacent 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
poised and positioned to play a proactive role in ensuring
self-reliance of our nation through successful ‘Make in
India’ initiatives.
With regard to implementation of the Strategic Partnership
Policy, Request for Information (RFIs) for conventional
submarines (P75I) and the Future Ready Combat Vehicle
(FRCV) armoured platform were issued this year to foreign
OEMs. EOIs to Indian as well as foreign OEMs are expected
to be issued. L&T is likely to be positioned to be selected as
a Strategic Partner in key segments. The JV with MBDA is
well positioned to address IDDM opportunities, ‘Buy Indian’
programmes as well as ‘Buy and Make Indian’ programmes
with access to latest state-of-the-art technologies like the
Fifth Generation technology for Anti-Tank Guided Missile
(ATGM).
With sharper focus on gaining growth momentum, the
business reiterates its commitment to nation-building.
The Floating Dock designed and built for the Indian Navy.
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Electrical &
Automation
Business
Overview
L&T’s electrical and automation (E&A) business
manufactures a wide range of products and system
for distribution, regulation and control of electricity
along with metering products. The business is a major
player in the system integration business. Its products
include low and medium voltage switchgear products,
electrical systems, marine switchgear, industrial and
building automation products, energy management
systems and metering solutions that cater to industry,
utility, building, infrastructure and agriculture
segments. The E&A business is structured into two
Strategic Business Groups (SBGs) – Products SBG and
Projects SBG.
The business has been increasing its penetration in new
segments like telecom, smart e-cities, healthcare, etc.,
by offering innovative solutions, while consolidating
its position in the retail segment with a new range of
consumer products.
The major strength of the business is its elaborate
in-house design and development facilities for new
products and life cycle management of its existing
range of products. The business has six DSIR-approved
R&D facilities and dedicated test laboratories in India
that specialise in diverse skill sets. 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. The business also has well-
developed tooling facilities with state-of-the-art
manufacturing systems and processes in place for high
precision tools, which are a pre-requisite for high-
quality products.
Additionally, its six Switchgear Training Centres at
Pune, Lucknow, Coonoor, Vadodara, Delhi and Kolkata
promote good electrical practices in the industry.
Manufacturing operations are located at facilities
at Navi Mumbai (Mahape & Rabale), Ahmednagar,
Vadodara, Coimbatore and Mysore in India as well
as in Saudi Arabia, UAE (Jebel Ali, Dubai), Malaysia,
Indonesia and the UK.
Business Environment
With a notable rebound in global trade, the world
economic growth rate reached 3.6 % in 2017. This was
driven by an investment recovery in advanced economies,
rebound of the European economy, continued strong
growth in emerging Asian markets, and signs of recovery
in several commodity exports. The global growth rate is
expected to clock up to 3.9 % in 2018, which would be
highest in this decade. The geopolitical situation across the
world is also changing fast.
The private investment climate in India has remained
subdued due to stresses in the balance sheet. The
dust around GST implementation is yet to settle. The
year witnessed a good monsoon, as well as policy
announcements in many sectors such as infrastructure,
The Floating Dock designed and built for the Indian Navy.
L&T offers India’s widest range of switchgear to a variety of sectors
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power, health, sanitation, etc., creating an environment
for further growth in the economy, which grew by 7.2%
in 2017.
encouraging. Various recommendations of the project have
been implemented, contributing to improved efficiency and
cost reduction.
Implementation of initiatives like Dindayal Upadhyaya
Gram Jyoti Yojana, UDAY, SAUBHAGYA, Smart Grid,
Pradhan Mantri Krishi Sinchayee Yojana and increased
focus on renewable energy are visible on the ground.
Other Governmental initiatives like Make in India, Smart
Cities, increased infrastructure spending, etc., also hold
promise. The rising oil and metal prices, slow climate of
order finalisation and liquidity issues continued to pose
challenges for the businesses.
With the formation of UDAY, the liquidity position of
utilities has improved, thereby giving more powers to
state utilities to decide and award orders. This has resulted
in improved order intake by the metering business. The
switchboard business posted a good performance for
the year, except that the international order intake was
lower. Overall, the domestic business posted improved
performance over the previous year. VAT implementation
with effect from 1st January 2018 in the Middle East, e.g.
KSA and the UAE, has so far been smooth.
Significant Initiatives:
In its endeavour to deliver quality products and solutions
at competitive prices, the business always revalidates
its processes, providing vigour and sustainability to its
operations. The business launched ‘Project Optima’ for
all domestic businesses and TAMCO. The project is an
operational excellence initiative, aimed at achieving refined
cost structures, improved operational efficiency and faster
throughput. The outcome of the programme has been
In FY 2017-18, the R&D spend by the business was
approximately 2 % of total sales revenue. During the
year, the business filed 76 Patents, 1 Trademark and 32
Design applications. Focused R&D activities have enabled
the Electrical Standard Products business unit to have a
healthy New Product Intensity (NPI) index of approximately
25% - an index which measures the sales of new products
introduced in the market during the last five years with
reference to the total sales in the financial year.
The Standard Products business implemented a SAP tool
known as ‘Advanced Planning and Optimisation’ (APO)
for end-to-end supply chain management. The tool aims
at improving capability to give a reliable commitment of
delivery date to customers while receiving orders, based
on real-time visibility in the supply chain. It works on the
Theory of Constraints (TOC) and uses a diagnostic metrics
framework based on Supply Chain Operation Reference
(SCOR).
In line with its ‘Shrink to grow’ initiative, the switchboard
business has successfully shifted its Low Voltage
switchboard manufacturing operations from Ahmednagar
to Coimbatore campus, which helped in creating
additional manufacturing capacity for Medium Voltage
products.
The business participated in Asia’s largest electrical fair
‘ELECRAMA’ held at Greater Noida in March, 2018 and
showcased a wide range of offerings, including products
which are lined up for launch in the coming months.
Air Insulated Switchgear (AIS) from TAMCO Malaysia, an L&T Group company.
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Subsidiaries such as LTEASA and Servowatch also
undertook business re-structuring exercises to achieve
efficiencies in business operations by reducing fixed
overheads.
The business has undertaken numerous initiatives to
improve the use of technology and prepare for the digital
future. This will enable the generation of informative
dashboards from diverse data sources, improve efficiency,
ease out manual work by machine computing and build
artificial intelligence. Initiatives implemented during the
year include:
A. Mobile Applications
• AutoNaT mobility solution for E&A employees
• StockNaT mobile app for channel partners and
customers
• Retail Management Solution for retail sales force,
distributors and retailers
B. Collaboration, Document Management & Workflow –
To create a centralised document repository with work
flow functionality
C. Analytical Reports & Dashboards – Real-time
information on key business metrics.
Listed below are few initiatives on which significant
progress has been made:
1. Asset Intelligence Management (use of Internet of
Things)
• Optimising productive time of machines
• Tool life monitoring and asset tracking
2. Training and education using Augmented Reality /
Virtual reality
• Guided servicing of ‘Omega’ Air Circuit Breaker using
Augmented Reality
• Interactive Induction Training module for new joiners
using virtual reality
Product Launches
In FY 2017-18, the business introduced various new
products in the power distribution, motor control and
power quality market segments to further strengthen its
leadership position. Notable additions include higher rating
air-break and vacuum contactors, 4-Pole MCCBs, electronic
trip units - SR 18G with enhanced features, S-Line copper
busways and S-Line aluminium busways for lower (250A)
ratings, Ti-APFC panels as per IEC61439, APFC relays, etc.
L&T’s Metering & Protection Systems business was engaged
in developing new cost-optimized metering platforms
offering better features to maintain competitiveness in the
market, and the development of new products to meet
the unfulfilled needs of customers. During the year, the
business launched 1-phase and 3-phase kWh meters in
whole current small form factor and prepaid category. It
also actively launched 1-phase and 3-phase smart meters
on various communication platforms in line with emerging
demands and trends.
L&T’s Electrical Systems & Equipment (ESE) business
introduced outdoor cabinets for the telecom segment and
feeder pillars and front RMU with FRTU (Feeder Remote
Terminal Unit) for the utilities segment. For the international
market, a Sub-Main Distribution Board (SMDB) was
introduced to cater to the infrastructure segment such as
T-era Panels
AU Solutions for final distribution – a comprehensive range for real world applications.
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metros, airports, smart e-cities, and high-end residential
complexes. ESE also started manufacturing Ring main
units (RMU) and introduced a new variant to its GIS (Gas
insulated switchgear) range.
L&T’s Control and Automation (C&A) business successfully
adapted its in-house developed software for SCADA,
reducing dependence on imported technology. The
business also put in significant efforts towards developing
drives using FPGA (Field Programmable Gate Array devices)
and batch controllers.
Business Outlook
In an environment where uptick in private capex is not
visible, liquidity continues to remain a worry; and with
core sectors not holding any promise, fresh order bookings
continue to be a challenge. As per industry estimates, the
LV Switchgear market is expected to grow by 8 to 10 %
and reach R 7,600 crore by 2020.
With the increase in commodity prices and consolidation
of procurement for state DISCOMS, profitability in the
metering business is expected to remain under pressure.
The market for conventional meters is expected to remain
flat. However, in view of the SAUBHAGYA scheme, the
market for smart meters seems to be growing. The trend is
towards higher technology products like AMR, prepaid and
smart meters. UDAY and other centrally funded schemes
like DDUJY and IPDS will lead to improvement in payment
position at utilities.
The automation business is expected to build on its success
in the infrastructure sector. Government regulations, which
have made use of RCCB mandatory, will help the modular
device business to grow. Various announcements made
in the Fiscal Budget FY 2018-19 such as replacement of
existing pumps with energy efficient pumps and increase
in area under drip irrigation are expected to contribute to
higher growth in the agricultural product business. With
new medium voltage products, the switchboard business
will be in a better position to increase its market share in
DISCOMS. Telecom enclosures still look promising and are
expected to generate revenue for the business.
The Marine business envisages a positive sentiment through
the ‘Make in India’ initiative taken by the Government for
emphasizing on indigenous content – which has given
us an edge over foreign suppliers. FY 2018-19 will see
the conclusion of orders for the electrical and degaussing
equipment for 24 ships of the Indian Navy. This provides
the potential to fill up the order book after a lean patch
during the last few years.
With the oil prices improving, investment in the oil & gas
sector of the GCC continues to improve. Growth in the
MENA region is expected to accelerate to 3 % in 2018.
Within MENA, GCC economies are expected to lead due to
stronger growth in the region, supported by easing fiscal
adjustment, infrastructure investment such as the UAE
Expo 2020, and reforms to promote non-oil-sector activity.
In Kuwait and Oman, for all major EPC awards, In-country
Value (ICV) content and Export Credit Agencies (ECA) are
likely to impact the businesses. Major growth is expected
from the infrastructure segment. With the addition of
focused products for infrastructure in the product basket,
we are hopeful of getting a significant share of Infra
business.
Mumbai International Airport’s Network Operations Centre
Smart, prepaid meters
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Hydrocarbon
Business
Overview
L&T Hydrocarbon Engineering Ltd. (LTHE) delivers
integrated design-to-build world-class solutions for the
global oil & gas industry, including oil & gas extraction
and processing, petroleum refining, chemicals &
petrochemicals, fertilisers and cross-country pipelines
and terminals. The Company’s in-house capabilities,
synergized through strategic partnerships, enable it
to deliver a single-point solution for every phase of
a project – from front-end design through detailed
engineering, procurement, fabrication, project
management, construction and installation up to
commissioning services.
The key aspects of LTHE’s business philosophy are
on-time delivery, cost competitiveness, high quality
standards, with a focus on best-in-class HSE and IT
security practices. Integrated strengths, coupled with
an experienced and highly-skilled work force, are the
key enablers in delivering critical and complex projects.
Over the years, we have garnered a reputation for
simultaneously executing multiple projects. We believe
in an attitude and approach that allows for flexibility of
operation and agility in response.
The business has repeatedly delivered, large, critical
and complex projects, globally, by virtue of its
customer focus and responsiveness, experienced and
highly skilled human resources, excellent Quality and
HSE practices and culture of excellence. The business
has a fully-integrated capability chain, including
in-house engineering and R&D centres, modular
fabrication facilities with waterfront, as well as onshore
construction and offshore installation capabilities. The
principles of the Company’s business philosophy are
striving for excellence in corporate governance, HSE
and quality standards, extensive IT-enabled processes,
digitalization, state-of-the-art IT security practices,
on-time delivery and cost-competitiveness.
The Company’s major facilities in India include
Engineering & Project Management Centres at
Mumbai, Vadodara, Chennai and Bengaluru and
Fabrication Yards at Hazira (near Surat) and Kattupalli
(near Chennai). Its 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.
The Company caters to clients across the hydrocarbon
value-chain through the following business verticals:
• Offshore
• Onshore
• Construction Services
• Modular Fabrication Services
• Engineering Services
Bassein Development Project for ONGC including platforms (Living Quarters & BH Wellhead), pipelines, bridges and modifications
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Offshore
The business offers turnkey EPCIC solutions to the global
offshore Oil & Gas industry encompassing wellhead
platforms, large integrated process platforms and
modules, subsea pipelines, brown field developments,
offshore drilling rigs (upgrade and new-builds), floating
production storage & off-loading (FPSO) modules,
deepwater subsea systems, offshore windfarm projects
and decommissioning projects. For nearly three decades,
the business has repeatedly demonstrated its ability to
offer custom-designed, cost-competitive solutions to
the industry, with an impeccable on-time delivery record
meeting international quality and HSE standards. It has
successfully executed large offshore platforms and pipeline
projects on the east and west coasts of India, the Middle
East, South East Asia and Africa, for global companies
such as ONGC, GSPC, British Gas, Saudi Aramco, ADNOC
Offshore, Bunduq, Qatar Petroleum, Maersk Oil Qatar,
PTTEP, Petronas Carigali and Songas.
Its Offshore Engineering Centre has comprehensive
engineering capabilities covering the complete project
life cycle from feasibility studies, concept, FEED, 3-D
model based detailed engineering and special studies to
commissioning for offshore projects. Value engineering
is one of the core elements in the Company’s project
execution, and operational excellence is a key value driver
in the Offshore Engineering Centre’s global delivery model.
The Company’s business processes are oriented towards
creating value and improving the quality of deliverables on
a continual basis. Its engineering expertise is backed by an
institutionalized system of route maps, standard operating
procedures and knowledge management.
The business owns and operates a self-propelled heavy-lift-
cum- pipe-lay vessel – LTS 3000 – through its joint venture,
L&T Sapura Shipping Private Limited.
The business secured an EPCI contract, in consortium, for
three gas production platforms with associated subsea
lines and umbilical’s tie-ins and hook-up under a Long Term
Agreement (LTA) with Saudi Aramco.
On the domestic front, the business secured an EPCIC
contract for Bassein Development of ONGC involving 3
well platforms, a 23-km subsea pipeline, composite subsea
power cable, clamp-on works on an existing platform and
modification work on nine existing platforms in the western
offshore basin in India. Two other major contracts are T&I
(Transportation & Installation) contracts of ONGC, one
for replacement of well fluid, gas lift and water injection
pipelines along with brownfield modification works on
existing platforms in the western offshore field and the
other for extracting gas from Daman field situated in the
south-western part of the Tapti-Daman block at Mumbai
Offshore. During the year, the Company successfully
completed the Bassein development and S1 Vashistha
deepwater projects for ONGC.
Onshore:
The vertical provides engineering, procurement,
construction and commissioning 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. It
has a record of successful simultaneous execution of
Sailing out of Wellhead Platform Topside from Kattupalli Facility
Additional development of Vasai East Project on India’s West Coast for ONGC
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multiple mega projects with diverse technologies from
process licensors like UOP, Axens, Technip, Haldor Topsøe,
CB&I Lummus, Black & Veatch, Ortloff, ExxonMobil,
BOC Parsons, Invista and Davy Process Technology. The
Company has built capability and resources to execute
multiple large-value complex projects simultaneously,
meeting stringent delivery schedules.
Its Design Engineering Centres – L&T-Chiyoda for onshore
engineering and L&T-GULF for pipeline engineering –
enable the Company to offer the 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 like IOCL, MRPL,
ONGC, OMPL, BPCL, HPCL, Reliance Industries, etc., as
well as fertilizer companies like NFL, GNFC, RCF, GSFC 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
such as Saudi Aramco, ADNOC Gas Processing, Petroleum
Development Oman (PDO), Kuwait Oil Company (KOC),
Kuwait National Petroleum Company (KNPC), Petronas,
Dolphin Energy and Chemanol.
During the year, the business received orders from
Hindustan Petroleum Corporation Limited for carrying
out Full Conversion of a Hydrocracker Unit as well as for
a Crude Distillation Unit (CDU) & Vacuum Distillation unit
(VDU), both for Visakhapatnam Refinery Modernisation
project at Andhra Pradesh, and from the Adani Group,
involving two LNG Storage Tanks for an LNG Terminal at
Dhamra port, Odisha.
On the international front, the business received EPC
contracts for the Haliba Development Project in the UAE
from Al Dhafra Petroleum Company Limited and from
Kuwait Oil Company for building 48” Crude Transit Line
(TL-5) from North Kuwait to Ahmadi.
During the year, the business successfully achieved
mechanical completion of a Coke Drum System Package
for Aishwarya project at Haldia Refinery for Indian Oil
Corporation Limited, and a New Gathering Centre, GC-30
in North Kuwait for Kuwait Oil Company.
Construction Services:
The business undertakes turnkey construction of process
plants for refineries, petrochemicals, chemical plants,
fertilizers, gas-gathering stations, crude oil & gas terminals
and strategic storage facilities including underground
caverns and above-ground facilities covering civil works,
structural, piping, equipment, electrical & instrumentation
erection, heavy lift and execution of cross-country oil & gas
pipelines.
The vertical’s major capabilities include heavy lift
competency, advanced welding technologies, high levels
of automation, management of manpower and material
in large volumes at construction sites and Quality / HSE
systems conforming to international practices. The business
has also invested in strategic construction equipment, a
range of pipeline spread equipment, automatic welding
900 TPD ammonia plant of National Fertilizers Limited, Panipat.
Coke Drum System Package for IOCL, Haldia
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machines and other plant and machinery for electro-
mechanical construction works.
The business has executed projects for major private
sector customers like Cairn Energy, Reliance Industries,
HPCL Mittal Energy (HMEL) as well as major oil PSUs like
BPCL, HPCL, IOCL, ONGC and international customers
like ADNOC Gas Processing, ADNOC Refining, ADNOC
Onshore, Saudi Aramco, Sadara, Dolphin Energy, etc.
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, Larsen & Toubro Kuwait Construction
General Contracting WLL in Kuwait.
During the year, the business received an additional order
for a new coal bed methane facility being developed in
central India.
The business successfully completed composite work of
the low-cost expansion project at GGSR Bathinda (Punjab)
for HPCL Mittal Energy Limited and laying of a pipeline
(12’ /8” x 176 km) and associated facilities from Dahej to
Navsari and a spur-line from Dahej to Hazira for the Dahej
Nagothane Ethane Pipeline Project of Reliance Gas Pipeline
Limited.
at Hazira (India’s west coast), Kattupalli (India’s east coast)
and Sohar (Oman) have a combined annual capacity in
excess of 160,000 MT, depending on the product mix, and
are equipped to undertake mechanical design of modules
including structure, piping, pressure vessels, fabrication and
construction engineering. Fabricated modules are tested
and pre-commissioned at site for trouble-free and rapid
hook-up. The facilities have state-of-the-art equipment to
deliver complex modules and structures, duly tested at the
facilities, and offer competitive and year-round delivery
capability with robust QHSE practices.
These facilities are situated on the waterfront, with easy
access to clients across the globe, and have load-out jetties
for dispatch of large and heavy modules via ocean-going
vessels and barges. These facilities are accredited with
global certifications including API, ASME and NB and
pre-qualifications from major oil & gas customers.
The business executed a total of 21 challenging projects
across the offshore and onshore landscape for various
prestigious domestic as well as international majors in the
oil & gas sector in FY 2017-18. A significant milestone was,
successful on-time delivery of the offshore Production Deck
Modules (PDMs) Project for Saudi Aramco. These PDMs
will be installed at Safaniya oil field – which is the world’s
largest offshore oil field.
Modular Fabrication Services:
The business offers comprehensive modular Engineering,
Procurement and Fabrication (EPF) solutions for setting
up projects, primarily in the offshore and onshore oil &
gas segments. World-class modular fabrication facilities
During the year, Company strategically entered into a new
product line – and won its first Electrical House (E-House/
Power house) project. The business has also received several
orders for the supply of static equipment for ongoing
refinery projects in the Middle East and India.
HMEL Bhatinda Refinery, India. Scope included EPC of 2 x 44,000 MTPA Hydrogen Generation Units and mechanical construction of 7 processing units
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Engineering Services:
The vertical offers end-to-end engineering solutions
covering the entire spectrum of engineering across the
oil & gas value chain, covering services from concept
to commissioning, troubleshooting, EPCM, PMC,
Field Engineering, Asset Integrity Management and
Operations & Maintenance.
The business has a large resource pool of over 4 million
engineering 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 a Memorandum of
Agreement with Institute of Chemical Technology (ICT), to
build ethanol plants based on fully indigenous technology
developed by ICT for producing 2G ethanol.
The business secured various engineering contracts from
GCPT, KCCEC, HPCL, ISCO, Al Ghanim, IOCL, etc. and
EPCM contracts from GACL.
Business Environment:
After a prolonged depressed market, signs of recovery are
now visible, with upward movement in crude oil prices due
to production cuts by OPEC countries and Russia. However,
uncertainty with respect to crude oil prices still exists over
the medium to long-term, leading to continued diligence
by the oil & gas industry in making strategic investment
decisions.
This year has also witnessed several consolidations,
partnerships and co-investments among EPCI players.
Companies are adjusting their business models to a period
of recovery. Oil majors are adjusting their portfolios by
adding renewables to their energy slate. IOCs and NOCs
are looking to diversify risk through co-investment outside
their home countries such as Kuwait in Oman, Saudi Arabia
in India and China in UAE. Service providers are hedging
risks through consolidation.
Localization is increasingly becoming a key differentiator.
ADNOC has started implementation of the In-Country
Value (ICV) program while Saudi Aramco is implementing
its In-Kingdom Total Vale Add (IKTVA) program with the
objective of growing and diversifying the economy and
creating opportunities for their nationals in the private
sector. The South East Asian region continues to protect
local players under the ‘Bumiputra’ concept.
Competition remained stiff, with some of the competitors
exercising subsidized prices for limited market potential and
with new entrants achieving pre-qualifications. Regional
players are bidding for Indian projects with an intent to
load their assets and new competitors have also started
bidding for domestic prospects. Commodity prices are
firming up and forex rates continue to be volatile.
Significant Initiatives:
The business has set a vision to ‘Revolutionize the
Hydrocarbon Industry’ and mission of ‘Execution Par
Excellence’.
During the year, the business announced the relaunch
of LAKSHYA 2021, in which strategic imperatives have
Major role in construction of world’s largest Pet Coke Gasification Complex and Ethylene cracker for Reliance Industries at Jamnagar, India
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been identified for each of its verticals. The Company
lays continued emphasis on sharper bidding to enhance
its market share and execute its projects well to protect
bid margins. The business embarked upon an Operation
Excellence initiative, which is aimed at achieving refined
cost structures, alignment for timely project deliveries, and
optimizing fund deployment. This initiative has started
yielding results for the Company, as reflected in enhanced
cost-competitiveness in its bids and further improvement in
its bottom-line for projects under execution.
The Company’s capability-building initiative has made
significant progress in terms of building its portfolio and
project leadership as well as functional group development.
This initiative is aimed at building globally-benchmarked
project leadership teams for executing large international
projects, and developing and institutionalizing an
international project capability development engine.
Innovation will be a key differentiator for disrupting
set norms and the way business is conducted in the
hydrocarbon sector. An Innovation Think Tank has been
formed to channelize the efforts of the organization
towards enhancing its capability and capacity to enable
sustainable growth and achieve execution par excellence in
every sphere of the enterprise.
The business has continued creating strong central
functions to maximize synergy and to build a platform
for easy transition from vertical to project-centric regional
structure. The Centralized Supply Chain concept was rolled
out and operational improvements institutionalized.
The Company is enhancing its current practices through
digital / new-age technological advances. The business has
also launched a digital transformation initiative towards
further improving productivity across its functions.
Risk Management: 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 Company’s risk management policy and guidelines
have helped it to create a consistent set of standard
risk tracking templates and measure the risk levels. This
enables it to develop the ability to anticipate and respond
to emerging challenges in a timely manner. Each project
goes through a structured pre-bid risk review and periodic
execution risk reviews, enabling effective monitoring and
raising timely alerts. The Company promotes a culture of
transparency in flagging emerging issues as early warning
signals to management for timely attention.
Internal Controls: The management has established
internal control systems commensurate with the size and
complexity of the business. The internal control manual
provides a structured approach to identify, rectify, monitor
and report 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.
Human Resource Development: The business has
implemented several initiatives focused on acquiring
and nurturing talent. It firmly believes that people are
its greatest asset, and has adopted various policies and
Group Gathering Station-11 for RIL’s Coal Bed Methane Field Development Project at Shahdol, Madhya Pradesh, India
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initiatives in order to sustain healthy employee relations,
growth and development as well as work satisfaction. The
Company’s commitment to creating a highly engaged work
force is demonstrated through deployment of the GENIE:
Engagement survey, business specific and managerial level
interventions, communication with Senior Management
through forums like ‘Town Hall’, webcast and video
conferencing. The ‘I-Too’ recognition framework, initiatives
like ICONS, long-service awards, team building workshops,
non-monetary recognition events, etc. are periodically
undertaken to enhance employee motivation.
Health, Safety, Environment (HSE) & Sustainability:
The business considers safety a core value, and is
committed to achieving HSE excellence at the workplace by
ensuring the health and safety of people and the protection
of the environment. Through its ‘Zero Incident Credo’,
the Company strives for continuous improvement in the
protection and development of the health, safety, and
environmental assets of its employees and stakeholders.
HSE Assurance Audits were conducted to ensure the
effective implementation of the HSE management system
across the Company.
Incident Rate (TRIR) and 50 % reduction in Lost Time
Injury rate (LTIR), which are comparable to the best global
industry standards.
The Company received many accolades in FY 2017-18.
The KOC - GC30 project received the ASSE GCC HSE
Excellence Gold Award 2017 from ASSE Kuwait Chapter.
MFF Kattupalli received safety awards from the British
Safety Council, RoSPA and the Golden Peacock award. The
Offshore business vertical received an award from National
Safety Council, Maharashtra Chapter, for achieving ‘zero
accident frequency rate’ consecutively for 3 years.
As a responsible Corporate Citizen, the Company is
committed to implementing projects that will contribute to
the quality of life, including schools, hospitals, skill training
institutes, water supply and distribution and sanitation
facilities.
Outlook:
Gradual firming up of the crude oil price is expected to lead
to increased project budgeting by IOCs and NOCs. A major
section of this investment is expected to come from North
America and the Middle East.
The Company released its Sustainability Report –
‘Sustainability Par Excellence’ – in January 2018, in line with
Company’s Mission ‘Execution Par Excellence’. It covers the
sustainability-focused initiatives taken across the Company,
and highlights the need to enhance performance across
all sustainability parameters – safety, energy, water
conservation and productivity.
Despite lack of appetite by Korean competitors,
competition intensity is expected to remain high until
2019 at least, due to the resurgence of European and
the emergence of the Chinese competition. Clients are
expecting EPC contractors to share the benefit of Value
Addition over the tenure of the project. Project schedules
are also becoming increasingly tighter.
During the year, the Company achieved its best-ever safety
performance through a 71% reduction in Total Recordable
In the domestic offshore sector, ONGC has reported
significant oil & gas discovery in its Mumbai High fields,
Production Deck Modules (PDMs) for Saudi Aramco ready for despatch from Modular Fabrication Facility, Hazira
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with potential reserves of 29.74 MTOE. Under the Open
Acreage Licensing Policy (OALP), EOIs have been received
by the Government of India from private players for the
shallow water basins. These developments will translate
into EPC tendering by 2020-2022. ONGC is progressing on
its investment for development of deepwater field KG/98-2
on the east coast of India. This will provide significant
opportunities to the Company’s offshore and fabrication
verticals over the medium term, given its strategically
located Kattupalli yard on the east coast and its tie-up
with McDermott and GE to develop cost-effective subsea
solutions. A number of brownfield and decommissioning
projects are expected to come up in the near future. Saudi
Aramco is expected to spend USD 3 billion each year on
offshore capital projects to maintain production.
India has an ambitious plan to nearly double its refining
capacity to about 438 MMTPA by 2030. The gas energy
mix is also expected to shift from the current level of 6.5%
to about 15% by 2022. The demand for petrochemicals
is expected to go up by 10 MMTPA by 2020. Over 11,800
km of PNGRD-authorized pipeline projects are pending
implementation.
The Indian Public Sector refineries have embarked on
capacity expansion plans. Some of these refineries also have
investment plans for integrating petrochemical projects
along with refinery upgrade. This will offer opportunities to
the Onshore and Construction Services verticals.
The roll-out of a comprehensive Urea Policy by the
Government has led to the revival of public sector urea
plants at Gorakhpur, Sindri and Barauni. Energy-efficiency
improvement projects are being actively pursued by
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 Units (FSRU) are on the anvil.
The GCC will see higher outlays for downstream and
petrochemical projects, particularly in Saudi Arabia, the
UAE and Kuwait. Saudi Aramco plans to spend over USD
300 billion over the next 10 years, while UAE and Kuwait
are planning to spend USD 109 billion and USD 112 billion
respectively over next 5 years. The integrated refinery
and petrochemical complex model continues to gain
momentum.
Towards providing geographical risk diversification, the
Company is looking to explore newer markets which offer
good long-term business potential, and has undertaken
intense pre-qualification efforts. Algeria, Iraq and Indonesia
will see increased levels of activity, and will potentially offer
differentiated margins.
Shale gas / oil will drive petrochemical and fertilizer
investment in the US, offering opportunities for high-value
engineering and modular fabrication services.
With strong capabilities and capacities built over the
years, the business is well-positioned to leverage these
opportunities.
3-D model of Normal Paraffin & Derivative Complex under execution
One of our ‘high-end’ engineering design centres
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Information
Technology
Business
Overview
The Global IT-BPM industry grew by 4.3% and the
IT-BPM market (excluding hardware) stood at USD
1.3 trillion in CY17. Indian IT-BPM industry revenues
(including hardware) stood at USD 167 billion in FY18.
The industry added ~USD 12 billion in incremental
revenues last year, representing year-on-year growth
of ~8% in USD terms. IT-BPM export revenues for
the industry for FY’18 are expected to reach USD
126 billion, i.e. growth of 7.7% over the past year.
Domestic IT-BPM revenues are estimated at USD 26
billion, a growth of 8% from USD 24 billion in FY’17.
IT-BPM export revenues are expected to grow by 7-9%
in FY’19, and the domestic market is likely to grow by
10-12% next year.
Digital technologies are increasingly becoming
all-pervasive and are not only blurring the boundaries
between business units (technology, finance,
marketing, etc.) but also between companies; it is
now no longer tech and non-tech companies. Many
companies – especially in the banking, automotive and
manufacturing spaces – are re-branding themselves as
tech companies.
Source: NASSCOM IT-BPM Strategic Review 2018
Our Business
Larsen & Toubro Infotech (LTI) (NSE: LTI), is a
global technology consulting and digital solutions
company helping more than 300 clients succeed in a
converging world. With operations in 27 countries, LTI
goes the extra mile for its clients, accelerating their digital
transformation with its Mosaic™ platform, enabling
clients’ mobile, social, analytics, IoT (Internet of Things),
cloud and cyber security journeys. In 2017, NASSCOM
ranked LTI as the sixth-largest Indian IT services company
in terms of export revenues. LTI was amongst the top 15 IT
service providers globally in 2017, according to the Everest
Group’s PEAK Matrix for IT service providers. Its clients
comprise some of the world’s largest and best-known
organizations, including 60 global Fortune 500 companies.
LTI offers an extensive range of IT services to its clients in
diverse industries such as Banking & Financial Services,
Insurance, Manufacturing, Energy & Utilities, Consumer
Packaged Goods, Retail and Pharma, High-Tech and
Media & Entertainment. Its range of services includes
application development, maintenance and outsourcing,
enterprise solutions, infrastructure management services,
testing, digital solutions, cyber security and platform-based
solutions. The Company serves its clients across these
industries by leveraging its domain expertise, diverse
technological capabilities, wide geographical reach, an
efficient global delivery model, thought partnership and
‘new age‘ digital offerings.
Headquartered in Mumbai (India), LTI is part of the L&T
Group. The Company has inherited the promoter Group’s
engineering and innovation mind-set, domain expertise,
and large programme management capabilities. It leverages
the strengths and heritage of the L&T Group, imbibing
Larsen & Toubro Infotech’s (LTI) global headquarters in Mumbai. The Company’s solutions focus on improving efficiencies for its clients.
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its virtuous risk management and corporate governance
practices.
The Company is focussed on amplifying outcomes for
its clients by:
1. Strategy
LTI’s overall business strategy for long-term growth has
the following key elements:
• Enabling new business models
• Enabling revenue growth
• Client-centricity
• Transforming customer and employee experiences
• Deliver amplified outcomes to our clients
• Next-gen efficient operations
• Investing in new technologies to build differentiated
service offerings
• Transforming as an organization to align ourselves in
this dynamic world
• Focusing on new large transformation deals
• Expanding in new geographies
• Investing in new avenues through partnerships,
alliances and acquisitions
Client-centricity is at the nucleus of the Company’s
strategy, with primary focus on solving complex
problems at the convergence of the digital and
physical world for its clients. LTI’s long association
with key clients and understanding of their business
and investment in account management teams has
positioned it well to deliver profitable growth. The
Company has posted significant improvement in client
satisfaction over the last two years.
LTI sees its customers’ world changing through tectonic
changes in technology. There are three things that are
happening in the industry: First, there are exponential
technologies that are available today. Second, these are
all-new technologies, and they are new for everyone –
no one has the incumbency advantage. Third, to help
clients navigate and win in these times, one needs
deep business knowledge to imagine and co-create
with the customer. To facilitate and deliver amplified
outcomes to its clients, the Company has embraced the
concept of ‘Shoshin’, beginner’s mind – a mind that
has openness, eagerness, and lack of preconceptions.
In the beginner’s mind, there are many possibilities; in
the expert’s mind, there are few. Expertise is important
however, and what is needed is the willingness and
openness to keep learning – and then keep building
expertise.
The Company’s relentless focus on digital, analytics,
automation, IoT and cloud technologies through its
proprietary Mosaic™ platform is helping it stand out in
the marketplace. Its cutting-edge work in these areas
Larsen & Toubro Infotech’s (LTI) Mosaic™ Experience Centre demonstrates exponential technologies
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has been recognized by leading industry tech analysts in
numerous studies.
The Company continues to move on its own path of
transformation – ‘Change from Within’. The Company
executed a comprehensive brand launch and global
rollout during FY’18. LTI’s modern corporate identity
reflects its aspiration to be a next-generation IT services
company with deep understanding of physical and
digital convergence. LTI also expanded its European
footprint by setting up its latest development centre in
Poland in FY’18.
To accelerate its revenue growth, the Company
has adopted a three-pronged approach, focusing
on partnerships, acquisitions and association with
start-up ecosystems. Together, these would assist in
driving amplified outcomes for its clients. In FY’18,
the Company acquired Luxembourg-based Syncordis
S.A., a leading core banking implementation services
provider. This acquisition is poised to aid in growing
LTI’s presence in Europe by deepening capabilities in
the Banking & Financial services sector. The Company
has also created 360-degree relationships with a few
select partners, viewing them as global growth engines.
The Company is creating an ecosystem to partner with
innovators around the world and co-create value for
clients through association with 600+ start-ups, using
inputs from L&T’s other businesses.
2. Opportunities
The Company has strong domain expertise derived from
its parentage. It is at an inflexion point, being the right
size to attain the agility of a start-up while maintaining
the stability of an established player – which gives it a
competitive advantage over its peers.
a) Banking & Financial Services: In the US market,
the softening of regulatory changes has resulted
in more funds being diverted to digital and data
projects, with an intent to increase efficiency.
They are increasingly adopting cloud infrastructure
to drive down costs through radical automation
and superior asset utilization. They are moving
towards master data management and analytics to
allow for a single view of the customer and easier
regulatory response and operations. However, in
Europe, the focus will remain on modernizing core
banking operations. The anxiety towards Cloud and
Blockchain has subsided to a certain extent as banks
see these as technology enablers rather than mass
disruptors. Clients are relying on strategic partners,
such as LTI, to help establish the new iterative model
that some banks are looking to adopt.
b) Insurance: Spend on digital transformation
is the emerging trend in this sector, despite
the pressure on run-the-business spend. Life
annuity insurers are focused on digital, optimized
workflow and operating efficiencies as they
face changing customer expectations. Property
and casualty insurers are focused on analytics
and speed-to-market, as market competition
and the threat of adverse selection drives their
need for better and faster product deployment.
LTI has built deep expertise in leading insurance
products like Duck Creek, Insurity and Guidewire,
and has unique offerings (digital and non-digital)
that can help clients reduce turnaround time
for operations, one of the core enablers for
cost reduction.
c) Manufacturing: There are three key trends
emerging in this vertical. First, cloud-enabled IT
modernization has become mainstream, and more
and more clients are embarking on programmes to
move majority workloads to the cloud and reduce
the cost of maintaining internal data centres.
Second, manufacturing entities are proactively
assessing ERP modernization, especially in SAP and
Oracle economies. Third, clients in this industry have
or are building definitive roadmaps for creating
digital-ready application landscapes for agility. With
its focus on Industry 4.0, LTI is uniquely positioned
to address the digital transformation journey for
its clients.
d) Energy and Utility: Clients in this space are
focusing on technology to streamline operations
for cost reduction. Digital investments are majorly
focused on IoT, Analytics, Mobility and Cloud
adoption. Advanced analytics is a major investment
area for oil & gas companies. Augmented reality
and drones to aid worker productivity, and
wearables to provide over-the-shoulder coaching to
workers are some of the next-gen areas where LTI
sees traction in this market.
e) CPG, Retail and Pharma: Large players
in CPG/retail industry segment are facing
intense local competition. Consumers are seen
to drift towards more online purchases, and
it becomes imperative for these large players
to directly engage with the consumers. LTI
has helped clients in their participation across
the customer journey through smart support,
chat bots and automated interactions, and will
continue to enhance its offerings to reinforce such
digital interaction.
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f) Hi-Tech, Media and Entertainment: In the
M&E space, the changing demographic mix is
leading to shifting spend patterns and is impacting
ad-supported businesses. The Company sees hi-tech
clients focus on faster speed-to-market initiatives,
energy-efficient smart devices and industry models
shifting towards pay-per-use models.
Digital Business
Digital strategy is evolving with unprecedented speed
of change in our clients’ businesses. It is creating new
businesses and new paradigms for clients. The Company
aims to be the digital transformation partner for clients to
build their digital business and thrive in the digital era. New
methodologies, like design-driven delivery, help collapse
layers and be more agile for clients.
For LTI, Digital will not just be a set of capabilities. It
will be a Way of Working (WoW) and has these core
components:
• Cutting-edge capabilities
• Next-gen delivery models
• Extreme domain focus
• Business outcome as a success metric
• Digital inside
Mosaic™ – LTI’s proprietary digital transformation
platform: Mosaic™ is a converged platform providing
data engineering, advanced analytics, process automation,
IoT connectivity and an improved solution experience
to its users. The Mosaic™ ecosystem enables entities to
undertake quantum leaps in digital transformation and
bring an insights-driven approach to decision-making.
Human Capital
LTI provides a range of professional skills to develop the
finer aspects of executing its roles. The Company’s Anytime,
Anywhere, byte-sized programmes help employees to
quickly brush up their skills, learn new skills or simply
collaborate and learn.
The Company institutionalized its five key beliefs across the
organization:
• Be agile
• Go the extra mile
• Push frontiers of innovation
• Keep learning
• Solve for society
As on March 31, 2018, LTI’s headcount was 24,139.
During FY’18, the Company added 2900+ net new hires.
Compared to FY’17, LTI improved on attrition – the full-year
attrition was 14.8% in FY’18 as compared to 16.9% last
year.
Outlook, Risks and Concerns
The businesses of LTI’s clients are being impacted
at an unprecedented speed by the world of digital
and exponential technologies. LTI has made
proactive investments in digital technologies, bringing its
in-house expertise together under the Mosaic™ platform
and enhancing these offerings through acquisitions.
Today, enterprises want to work with partners that are
agile, can de-clutter new technologies and can co-create
solutions with them. LTI’s sustained investments in
digital and exponential technologies are establishing
the Company as the partner-of-choice for its customers
worldwide.
In FY’18, LTI delivered an industry-leading revenue growth
of 16.7% in USD terms. With intense focus on client
success and comprehensive transformation capabilities
across digital, analytics, IoT, automation and cloud, LTI is
optimistic about its future.
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Technology
Services
Business
Overview
L&T Technology Services Limited (LTTS) is a
leading global pure-play Engineering Research &
Development (ER&D) services company. LTTS offers
design and development solutions throughout the
product development chain, and provides services
and solutions in the areas of mechanical and
manufacturing engineering, embedded systems,
engineering analytics and plant engineering.
Headquartered in India, LTTS employs over 12,000
personnel spread across 16 global delivery centres, 28
global sales offices and 39 innovation labs in India as
of March 31, 2018.
The Company’s customer base includes over
50 Fortune 500 companies and 51 of the world’s
top ER&D companies, across industrial products,
transportation, telecom & hi-tech, medical devices
and the process industries. The key differentiators
for LTTS are its domain expertise and multi-vertical
presence in major industry segments. LTTS also
provides service offerings in the domains of Embedded
Systems, Application Engineering, Verification and
Validation and Mechanical & Digital Manufacturing
Services.
The services and solutions provided by LTTS in its key
industry segments are as under:
Transportation
LTTS offers engineering services and solutions over the
complete spectrum of the transportation industry that
includes OEM and Tier 1 suppliers in the automotive,
trucks & off-highway vehicles, aerospace and rail sectors.
The segment delivers end-to-end services from concept
to detailed design through manufacturing, testing,
after-market and sourcing support helping OEMs and Tier1
suppliers develop products in a cost-effective manner. LTTS
also helps its clients develop cutting-edge transportation
technologies such as autonomous driving, electric
vehicle and drones. LTTS’s domain expertise, glocalized
and customer-centric approach, proprietary solutions
and a repository of over 150 co-authored patents drive
innovation and sustain business growth. The adherence
to safety protocols, design and processes and the use of
cross-disciplinary engineering facilitates give a superlative
experience to LTTS’s customers.
Telecom & Hi-tech
LTTS’s expertise in digital engineering – such as the Cloud,
IoT, Artificial Intelligence, Data Analytics & other areas
in the telecom domain – enables its partners to leverage
the right telecommunications strategy. With expertise in
product variant development, 5G capabilities, simulation
& automation, and product & mid-life support, LTTS is a
one-stop solution for its clients. It also provides futuristic
solutions and IP cores that address some of the pressing
needs of the semiconductor industry. LTTS’s Narrow
Band IoT (nBIoT) solution provides complete IoT device
management designed with low memory and a low power
footprint, enabling easy integration to custom target
platforms.
Headquartered at Knowledge City, Vadodara, L&T Technology Services helps clients build smart products, enable smart manufacturing and offer smart services.
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LTTS’s experience in Product Development, Digitalization,
User Experience Engineering and Testing & Certification
enables its customers to expand to new markets, innovate
newer and smarter products, and roll-out products faster
and cheaper. The Company’s designs for 3D cameras,
speech recognition, smart glasses and connectivity
programmes involving wireless mesh networks are seeing
increasing traction from the industry.
Industrial Products
LTTS’s Industrial Products practice helps OEM customers
across building automation, home and office products,
energy, process control and machinery. The Company’s
expertise in engineering industrial products helps its
customers drive innovation and efficiency, and retain
a competitive edge. LTTS helps streamline the product
development value chain, enabling customers spearhead
business growth.
This Industrial Products 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.
as well as contemporary digital engineering enterprises.
Industrial Products
The Company is advancing its engineering footprint
LTTS’ Industrial Products practice helps OEM customers across building automation, home and office
products, energy, process control and machinery. The company’s expertise in engineering industrial
to encompass the digital sphere, and is working with
products helps customer drive innovation and efficiency, and retain a competitive edge. We help
customers on ‘Smart Manufacturing’ technologies such as
streamline the product development value chain, enabling customers spearhead business growth.
automation, IoT, analytics, and augmented reality (AR).
This Industrial Products 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.
Medical Devices
Plant Engineering
LTTS’ domain expertise, supported by robust technological
capabilities, helps medical device OEMs address industry
The Plant engineering practice provides end to end engineering services for leading plant operators
across the globe. LTTS provides services in E/EPCM, Engineering Reapplication and Global Rollouts,
challenges, accelerate time to market, and optimize costs.
Plant Sustenance and Management, Regulatory Compliance Engineering along with chemical,
LTTS focuses on delivering solutions in diagnostics, patient
consumer packaged goods (FMCG) and energy and utility sector clients. LTTS specializes in traditional
EPCM and operational maintenance projects, as well as contemporary digital engineering enterprises.
mobility services, musculoskeletal services, life sciences,
The company is advancing its engineering footprint to encompass the digital sphere and working with
surgical services, cardiovascular, home healthcare and
customers on ‘Smart Manufacturing’ technologies such as automation, IoT, analytics, and augmented
reality (AR).
general medical.
Medical Devices
Business Environment
LTTS’ domain expertise, supported by robust technological capabilities, helps medical device OEMs
address industry challenges, accelerate time to market, and optimize costs. LTTS focuses on delivering
According to Zinnov, corporations spent more than
solutions in Diagnostics, Patient Mobility Services, Musculoskeletal Services, Life Sciences, Surgical
USD 1 Trillion in 2017 on ER&D activities such as product
Services, Cardiovascular, Home Healthcare and General Medical.
and process development, manufacturing engineering and
Business Environment
other allied engineering. Of this, the 500 biggest corporate
According to Zinnov, in 2017 corporations spent more than USD 1 Trillion on ER&D activities such as
spenders in ER&D globally (G500 ER&D spend) contributed
product and process development, manufacturing engineering and other allied engineering. Of this,
the 500 biggest corporate spenders in ER&D globally (G500 ER&D spend) contributed nearly 60% i.e.
nearly 60% i.e. USD 665 billion.
USD 665 Billion.
Global Corporate Engineering Spend
Global Corporate Engineering Spend
Plant Engineering
The plant engineering practice provides end-to-end
engineering services to leading plant operators across
the globe. LTTS provides services in E/EPCM, Engineering
Reapplication and Global Rollouts, Plant Sustenance
and Management, Regulatory Compliance Engineering
along with chemical, consumer packaged goods (FMCG)
and energy and utility sector clients. LTTS specializes in
traditional EPCM and operational maintenance projects,
Source: Zinnov
Source: Zinnov
It is expected that the global ER&D spend will reach USD
1,341 billion by 2022. This momentum is majorly affiliated
Sensitivity : This Document is Classified as "LNT Internal Use".
L&T Technology Services’ Bangalore campus
Smart manufacturing services facilitate real-time visibility of plant operations
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to growth in sectors like automotive, pharmaceuticals,
software & internet, semiconductor and consumer
electronics. Corporates are expanding in various areas to be
competitive and relevant. Corporates are building onshore
labs / centres of excellence, developing new IPs and
engaging in M&A activities for expansion.
Significant Initiatives
LTTS aspires to continue being a global leader in the ER&D
segment. The Company has undertaken several significant
initiatives to achieve this objective. These initiatives include:
• Talent & Delivery
LTTS is leveraging hotspots across the globe to tap into
the engineering talent having experience in Digital
Engineering, Design & Application Engineering, etc. to
improve its onshore presence in low-cost geographies.
Towards this objective, LTTS has launched a Centre of
Excellence in Jerusalem, Israel which acts as a global hub
for developing advanced solutions in Video, ASIC Design
and Security. It also offers the full scope of engineering
services in the areas of Telecom, Semiconductors, Medical
Devices, Automotive, IoT and Plant Engineering.
• Specialised Infrastructure
LTTS is focused on driving innovation and is adopting
solutions in line with technological trends. To promote its
culture of innovation, LTTS is investing in infrastructure
and co-innovation to build innovation hubs and to
facilitate solutions and offerings across industry verticals.
WAGESAPP and IPs like MIPI and USB help LTTS in
retaining its competitive advantage across industry
segments.
• Technology Events
Continuing its efforts to identify and nurture future
innovators, LTTS, for the second year, held TECHgium®,
the pan-India platform for budding engineers to
showcase their innovations. The response was very
encouraging, with 220 institutes and over 17,000
engineering students signing up for the TECHgium®
2018, including marquee institutes like IITs, BITS Pilani,
Delhi College of Engineering and NIT.
LTTS invested over 100 working hours to mentor
students shortlisted for the PoC round, with subject
matter experts from respective industry domains
mentoring the students. As a result, the winning teams in
TECHgium® came up with remarkable solutions around
IoT, Machine Learning, Advanced Image Processing and
Smart Tools.
LTTS also held an innovative technology hackathon
nicknamed ‘Just Code’ across its global delivery
centres to enable employees to convert their ideas into
demonstrable products. The hackathon successfully
ended with the creation of hundreds of PoCs across
several technologies, including Media Processing and
Entertainment, Cloud Programming, Sensor Fusion,
Automation, Machine Learning and Artificial Intelligence.
• IP & Solutioning
LTTS is concentrating on building re-usable IP products
and frameworks to enhance competitive differentiation.
Proprietary platforms like UBIQWeise 2.0™, i-BEMS,
• Patents
At the end of financial year 2018, the patents portfolio
of LTTS stood at 328, out of which 245 were co-authored
with its customers and 83 were filed by LTTS.
Digital solution for automobile manufacturing displayed on the shop floor
An engineer wears a VR headset in an R&D lab
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• Awards & Recognition
LTTS has won a string of high profile industry accolades
which are a testament to the Company’s culture of
innovation and best practices in technology and people
management. Key accolades include:
• The Golden Peacock Innovative Product/Service
Award 2018 for LTTS’s i-BEMS framework. This is
the second year in succession that the Company has
won a Golden Peacock trophy. In March 2017, LTTS
was awarded the Golden Peacock National Quality
Award for its best-in-class engineering services and
solutions.
• LTTS has been positioned in the ‘Winner’s Circle’
for excellence in innovation and execution by HfS
Research, the Service Research Company™. In its
‘Blueprint Report for Automotive Engineering Services
for 2018’, HfS rated LTTS among the top 5 innovative
organizations in the world.
• The Company was also positioned in the
‘Winner’s Circle’ of HfS’s ‘Blueprint Report
on - Embedded & Semiconductor Engineering
services 2017’. Not only was LTTS lauded for its
excellent delivery capability, account management,
partnership, hardware expertise, technology, in-house
tools and IP solutions but it was acknowledged
by HfS for its recognizable investments in future
capabilities and strong client feedback to drive new
insights and models.
• LTTS cemented its position as a leader in overall ER&D
Services across 10 verticals and as overall leader in
Product Engineering Services in the Zinnov Zones 2017
Ratings.
• It was rated as an ‘Expansive and Established player’ in
the Zinnov Zones 2017 IoT Technology Services study,
and positioned in the Zinnov Leadership Zone across
seven unique expertise areas.
• The Company was awarded the prestigious NASSCOM
Digital Skills Award for 2017. NASSCOM, through this
award, gave formal recognition to LTTS’s continued
success in aligning its offerings with the rising
customer demand for digital engineering.
• LTTS’s culture of innovation and compelling portfolio of
solutions led the Confederation of Indian Industry to
recognize the Company as one of the most innovative
organizations in India in the services category.
• LTTS was positioned in the Leaders Category
by independent global research firm, NelsonHall,
in its evaluation for Internet of Things (IoT) services
providers. LTTS was the only global pure-play
engineering service provider to be positioned in the
Leaders Category.
• LTTS won the Businessworld magazine’s 3rd HR
Excellence Awards 2017 for ‘Excellence in Change
Management & Excellence in Compensation and
Benefits’
Outlook
Technology has evolved over the past decade at such a
rapid pace that the present times can be considered as the
era of What You Perceive is What You Get (WYPIWYG).
Devices have become smart, and customers expect them
to become smarter by the day. Only the organizations that
evolve with technology can succeed in this new world
Augmented Reality empowers manufacturers to gain insights into their product models and equipment health
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of unlimited possibilities. ER&D service providers need to
identify opportunities and evolve technologies to ‘Build the
New’ and ‘Renew the Old’ thus creating value proposition.
Intelligent Products, a sensor-enabled IoT platform with
analytics coupled with digital engineering, is the key to
evolution from old to new.
Digital Engineering is driving ER&D growth globally which
is visible from the high concentration of investment made
by global corporates. As per Zinnov, in 2012, the Digital
Engineering spend was USD 121 billion which was 13%
of the total ER&D spend. In 2017, it went up to USD 219
billion, having 20% share of total ER&D expenditure.
By 2022, it is expected to reach USD 489 billion with
36% weight in total ER&D. Software will be the major
factor driving growth in digital engineering, followed by
embedded and mechanical.
There is increased wallet-spending on Digital Engineering
because of crucial factors like technology innovation,
business model innovation and growth of tech giants
and start-ups. The world will see increased R&D activity
in machine learning, human machine interface, artificial
intelligence, collaborative robotics, etc.
In order to become ‘the architect’ of disruptive
technologies that will help customers be ahead of the
curve, LTTS has strategically decided to invest across
futuristic technological areas, namely Digital Engineering,
Smart Manufacturing, Perceptual Engineering and
Pervasive Technologies.
• LTTS is focusing on and investing in Digital Engineering
areas like Industrial IoT, Augmented Reality, Smart Supply
Chain & Logistics, Power Electronics, Connected Vehicles,
Imaging Algorithms & Edge Detection and Video
Surveillance.
• LTTS has taken big strides in smart manufacturing, with
cutting-edge projects that make a plant connected and
intelligent. One of LTTS’s recent smart manufacturing
projects involved integrating a new model into existing
manufacturing lines using virtual simulation of robotic
welding, PLC programming and HMI design.
• Perceptual Engineering is another focus area where
machines are made intelligent enough to interact with
the five senses. LTTS has developed machine learning
and deep learning technology for smarter solutions, and
is deploying them into a variety of industries - Security &
Surveillance, Robotics, Natural Language Processing and
Image and Video Analytics.
• Pervasive technologies use sensor fusion which combines
sensors to produce data and signal computing. This helps
to analyse and connect systems, enabling businesses
to transform to digital service-led models. Recognizing
the power of the embedded sensor, LTTS has made a
head-start in this area by undertaking some interesting
projects for customers.
The above areas are the four pillars of modern-day
industrial digital evolution which will lead the way for the
Company to push the frontiers of innovation. These four
are not mutually exclusive, they are in fact interconnected
threads of technology, with considerable overlaps. Through
these technology pillars, LTTS will be relevant today,
tomorrow and the day after, to become the global leader in
engineering services in the years to come.
Engineering industrial products helps clients drive innovation and efficiency and retain their competitive edge.
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Financial
Services
Business
L&T Finance Holdings (LTFH)
L&T Finance Holdings is one of the leading private
non-banking financial services companies in India.
The businesses are Rural Finance, Housing Finance,
Wholesale Finance, Investment Management and
Wealth Management.
RURAL FINANCE
LTFH’s strength in Rural Finance lies in the use of cutting
edge technology and deep analytical skills to increase
market penetration, improve portfolio quality and most
importantly for timely detection of early warning signals.
(a) Farm Equipment Finance: In FY18, the tractor
industry grew by 22% to a record high of 7.11 lacs
tractors sold. With expectations of a normal monsoon
and other determinants of farmer’s cash flows like
reservoir storage, extent of irrigated area, area under
sowing, minimum support prices staying positive,
the industry is expected to record ~10% growth
this year.
Continuing on the upward trajectory of gaining market
share, LTFH increased market share from 6.8% to 12.5%
in the last year. LTFH has shown healthy growth in their
disbursements by 107% and loan book by 28% over
the previous year.
LTFH has a competitive advantage in terms of
differentiated value propositions for preferred OEMs
and top dealers, analytics driven target allocation based
on the portfolio performance, extensive focus on early
bucket collection to maintain portfolio quality and best
in class TAT proposition to customers and dealers on
decision making and disbursement.
In this segment, the future strategy of LTFH is to create
a portfolio with the optimum mix of preferred OEMs
and geographies and build on allied businesses e.g.
Refinance certified used and implements in order to
provide a comprehensive product suite to its customers
and roll out a digital proposition to improve service
levels further.
(b) Two-Wheeler Finance: During FY18, the two-
wheeler industry grew by 15% to 2.06 crore units
of two wheelers sold in the market. With increased
urbanization and sustained focus on road infrastructure
developments, the market is expected to get a boost.
The industry is expected to show a growth of ~12%
in the coming year, with good performance from both
motorcycles and scooters.
Through rigorous execution of the digital proposition
on the ground and domain expertise, LTFH has been
able to increase its market share from 5.9% to 8.2%.
LTFH’s robust digital & data analytics- based architecture gives it the competitive edge
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With this clear strategy, LTFH has been able to grow
the business by 70% and loan book by 57% through
increased penetration in its identified branches.
LTFH has a competitive advantage in this segment in
terms of ability to execute strategy on the ground with
required scaling-up, effective use and implementation
of data analytics along the customer life cycle and best
in industry Turnaround Time (TAT) and technology for
customer selection and on-boarding.
In this segment, the future strategy of LTFH is to
constantly recalibrate its sourcing and collection
scorecard to stay ahead of the competition, create a
leadership position with a quality portfolio in existing
and new geographies and intervene early in collections
through the use of analytics to enhance portfolio
quality.
(c) Micro Loans: The micro loans industry has seen a
change post demonetization with a few players having
slowed down on account of high delinquencies, while
a few others awarded the SFB license have tended to
show lower focus on micro lending. The industry has
grown by ~25% over the previous year. The market is
expected to sustain the growth levels over the coming
year.
LTFH has been able to increase disbursements by 105%
and loan book by 113% on the back of increasing
penetration in existing geographies, opening new
geographies in existing states and new states viz. Bihar,
Assam and Tripura.
LTFH has a competitive advantage in terms of risk
mitigation through various market and credit checks,
robust early warning systems with triggers in place to
maintain delinquencies, extensive use of analytics across
the customer life cycle and deep market penetration
and a rural presence across geographies.
The future strategy of LTFH is to introduce digital
initiatives to ensure best TAT in the industry, retain the
customer base with a holistic association approach and
constantly strengthen the risk framework.
WHOLESALE FINANCE
LTFH has very clearly established a leadership position in
core areas of renewables, road refinance and transmission.
LTFH has built a sustainable advantage in terms of the
strong underwriting ability and sell-down capabilities.
(a) Infrastructure financing: Being a key driver for the
Indian Economy, the infrastructure sector is contributing
to India’s overall development. India has an investment
requirement of worth R 50 lakh crore in infrastructure
by 2022 to increase growth in GDP, connect and
integrate the country with a network of roads, airports,
railways, ports and inland waterways, besides providing
power for all.
An efficient down-selling desk, through increase
in its sell-down volume by 70% kept the overall
infrastructure finance book growth at 11%, whereas
disbursement grew by 39% from ~R 13,000 crore
to R 18,055 crore in FY18. The business vertical
saw its fee income grow by 45% during the year.
The asset base of the Infrastructure Debt Fund (IDF)
increased by about 74% to ~ R 7,000 crore from
around R 4,000 crore, a year earlier.
Cutting-edge technology and deep analytical skills help deliver better results in the Rural Finance sector
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In FY18, LTFH was awarded ‘Best Renewable Energy
Financier of the Year 2017’ by the Renewable Energy
Investment and Finance Forum in both Solar and Wind
Sectors for outstanding achievements in financing the
renewable energy industry.
LTFH has a competitive advantage in this segment in
terms of growing the IDF book with segment-leading
profitability and structuring capabilities, a robust down-
selling desk with strong relationships with banks, both
public and private Financial Institutions, and a vibrant
Debt Capital Market desk with structuring strengths in
credit bonds.
In this segment, the future strategy is to leverage
industry dominance in the renewable and roads sectors
to further enhance fee income through efficient
underwriting and placement, use existing client and
market relationships to cross-sell other products and
deepen expertise in social infrastructure segments,
hospitality and health care.
(b) Structured Corporate Finance: Bank credit off-take
was largely muted in financial year 2017-18 with
stiffening of interest rate towards the year-end.
Despite the slow off-take of bank credit and a rising
interest rate scenario, LTFH’s Structured Corporate
Finance business saw a profitable growth in its asset
base. The asset book grew by ~20% on a YOY basis
while disbursement growth was ~19%.
LTFH has a competitive advantage in this segment
in terms of nimbleness to respond to the need for
structured solutions and strength in large ticket
underwriting, enabling comprehensive refinancing
solutions.
In this segment, the future strategy is to leverage
infrastructure financing expertise and relationships to
enhance profitability through structured products and
develop best-in-class speed of response and commence
down-selling.
(c) Debt and Capital Market (DCM): LTFH’s DCM
business invests in non-convertible debentures issued by
companies across multiple sectors and segments, either
by way of private placement or public issue.
In FY18, the DCM desk acted as arranger for issuances
aggregating to ~R 4,700 crore of funds raised. In FY18,
the DCM desk also made a mark in new segments –
that of municipal bonds and state level undertakings,
which are expected to grow significantly going forward.
The desk also commenced trading in sovereign
securities.
LTFH was ranked number one in India Rupee Loans
Mandated Arranger and India Rupee Loans Book-runner
in Q1 FY18 Thomson Reuters’ League Table and was
the only Indian player in the Top 10 of APAC Project
Finance Loans Book-runner and Mandated Lead
Arranger in Q1 FY18 Bloomberg Global Syndicated
Loans League Table, for the quarter ending March ’18.
LTFH has a competitive advantage in terms of its ability
to act as lead arranger for transactions and large ticket
size underwriting capability and wide distribution
network across financial markets.
LTFH is a leader in the core areas of renewables, road refinance and transmission.
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In this segment, the future strategy is to focus on new
market segments and leverage the merchant banking
licence to act as arrangers for mandates
HOUSING FINANCE
(a) Home Loans & LAP: During CY17, domestic housing
credit grew by 17% to reach R 15.9 lakh crore as on
Dec ’17. This is largely due to marked recovery in the
real estate market, improvement in sales velocity and
stabilization of RERA and GST.
Home Loans and LAP registered a 23% growth in YOY
disbursements from R 2,979 crore in FY17 to R 3,679
crore in FY18. This was backed by over 100% growth
in home loan disbursements in Q4 FY18 on account of
better traction in retail conversion of home loans for
real estate financed projects
LTFH has a competitive advantage in terms of its
digital lending model to provide best-in-class TAT and
comprehensive use of analytics for business generation
and portfolio risk management.
In this segment, the future strategy is to leverage
relationship with real estate developers for sourcing of
home loans and continue focus on increasing the share
of direct sourcing volumes through the use of analytics
and strong focus on early bucket delinquency through
dynamic alignment of credit and collection policies.
improved demand as well as supply for affordable
housing. Supply of commercial real estate has
rationalized over the last 5 years, leading to an uptrend
in occupancy and rentals.
LTFH has identified a harmonious balance in using
the group synergies, lending to ‘A’ category and
‘B’ category builders and monitoring the progress,
collection and early warning signals of the projects.
During the year, LTFH established itself as one of the
key lenders in real estate financing with a clear focus
on Category A & B developers across 6 cities. The Real
Estate Finance business registered significant growth,
with a loan disbursement of R 7,107 crore and a loan
book of R 10,092 crore in FY 18.
LTFH has a competitive advantage in this segment
in terms of strong structuring and underwriting
capabilities with a focus on project completion,
comprehensive and robust Early Warning Signal (EWS)
framework and a comprehensive product suite to
address top developers’ funding requirements.
In this segment, the future strategy of LTFH is to focus
on Category A and B developers with more than 70%
of exposure towards Category A developers, continuing
focus on implementing an action-plan based on EWS
and leveraging the L&T ecosystem for business growth
and market intelligence.
(b) Real Estate Finance: The Real Estate sector has
transitioned towards a more transparent and regulated
industry after demonetization, RERA and GST.
Government initiatives like ‘Housing for All’ have
MUTUAL FUNDS
The Mutual Fund industry in India witnessed a 26% growth
in FY18, taking the Average Assets under Management
(AAUM) to R 2,305,212 crore as compared to R 1,829,583
crore AAUM recorded in FY17.
Close project and loan monitoring safeguard our home loans business
Robust fund performances and distributor relationships power our Mutual
Funds business
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The average AUM of LTFH has increased by 68% and
stands at R 65,932 crore in FY18 as against R 39,300 crore
in FY17. This has helped us reach a market share of 2.86%
in FY18 as compared to 2.15% in FY17. The Mutual Fund
business has outperformed the industry growth rate of
AAUM, with Equity to AUM reaching to 58%.
LTFH has competitive advantage in this segment in terms
of robust performance of the fund’s equity schemes and
strong distributor relationships.
In this segment, the future strategy of LTFH is to focus
on building core assets to achieve the dual purpose of
achieving higher profitability and stability in overall AUM,
increase SIP book to ensure steady flows and deepen the
presence in key counters to gain a higher share of assets
WEALTH MANAGEMENT
Looking at India’s strong economic growth outlook and
favourable demographics, the Indian Wealth Management
market is on a continued path of growth. The focus on
tailor-made client-centric products, rising financial literacy
and use of technology, is creating huge opportunities for
the Indian Wealth Management industry.
FY18 was a very positive year with tremendous growth for
the business – profits have grown from R 5 crore in FY17
to R 29 crore in FY18. The Average Assets under Service
(AAUS) grew by almost 34% during the year with the FY18
AAUS being more than R 18,000 crore. LTFH’s revenue in
this business vertical witnessed a rise of 88.22% during the
year, for FY18 being at R 93 crore.
LTFH has a competitive advantage in this segment in terms
of a robust business model based on the fundamental
tenets of client centricity, intellectual property and
execution efficiency, a strong and expanding distribution
reach with a diversified product range and cutting-edge
portfolio analytics for tailored customer-centric advice and
new customer acquisition.
In this segment, the future strategy of LTFH is to focus on
technology-based solutions to deliver superior analytics and
investment advisory to strengthen existing relationships
and forge new and meaningful relationships, acquire new
clients and increase sales strength across geographies.
*(Source: IBEF Financial Services Report Published in
September 2017).
Significant Initiatives
(a) Human Resources: The Human Resources function
plays a pivotal role in this transformation journey by
ensuring organizational efficiency and promoting the
right culture. To sustain growth, LTFH is investing in
building its talent pool by developing skills internally
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and attracting the best talent in the industry. As on
31st March 2018, LTFH had a total workforce of 15,126
employees across all subsidiaries.
A culture of ‘Results not Reasons’: After another year of
delivering excellent results, LTFH is constantly working
towards strengthening its foothold in each business and
striving to reach a dominant position. Achieving these
results was no mean feat, but LTFH succeeded because
of its strong core values and the inculcation of a culture
of ‘Results not Reasons’, which gave razor sharp focus
to meet its goals.
Scalability: LTFH continuously evaluates and optimizes
the organization structures in line with its business
priorities. The Human Resources department worked
in tandem with the business to ensure that there were
the ‘right people’ to meet growth ambitions. LTFH
had significant growth ambition which called for new
geographic expansion as well as growth in existing
geographies.
Capability building: Another important agenda
was to augment capabilities at the middle and senior
management levels. For building the leaders of
tomorrow, LTFH continues to give cross-functional
exposure through various projects and internal job
postings. LTFH invites world class faculty for senior
management training sessions to facilitate discussions
on business practices and issues. LTFH organizes
individual level coaching with experienced business
practitioners for leadership development.
Driving Productivity: The ultimate metric for success
is continuous improvement in productivity. LTFH takes
pride in calling itself a performance driven organization.
A rewards and recognition mechanism is implemented
across LTFH to keep the morale high and formally
appreciate the efforts of a competitive and talented
workforce.
(b) Risk Management: Risk management forms an
integral part of the LTFH’s businesses. LTFH has a
robust and comprehensive credit assessment and
risk management framework to identify, monitor
and manage risks inherent in its operations. The Risk
Management framework covers various families of risk
like credit risk, market risk and operational risk.
Credit Risk: With the objective of growing fearlessly
in the segments in which LTFH is operating, target
markets are clearly identified and understood with
scoping of opportunity given the competitive landscape.
Credit underwriting standards, at micro and macro
levels, determine the minimum acceptable level of risk
appetite acceptable while building up the business
portfolios.
Market Risk: On the market risk front, liquidity,
interest rate and concentration risks are the key
drivers. On a day-to-day basis, a Treasury Strategy team
manages these risks with an oversight from market risk
function, under the overall supervision of ALCO and
periodic reviews by the Risk Management Committee.
Operational Risk: Operational risk is inherent to
processes and systems and a dedicated team monitors
operational risks and incidents, including the robustness
of various processes, systems and information security
related matters. Operational processes have been
streamlined with critical processes being centralised to
ensure consistency, control and oversight.
LTFH was awarded the ‘Golden Peacock Award for
Risk Management 2017’ for robust risk management
processes. This prestigious award is being given
annually by the Institute of Directors, New Delhi for
over 25 years as recognition of high standards in various
domains of corporate governance.
(c) Digital & Analytics: LTFH has designed an architecture
that enables it to enhance its ‘right to win’ in focus
products by offering a unique proposition to the
customers in terms of Turnaround Time (TAT). LTFH
wants to inculcate Digital & Analytics (D&A) into
the culture of LTFH. In order to achieve the same,
LTFH has initiated a project to rewire the complete
business operations, where technology will orchestrate
processes. The IT architecture has been completely
revamped to create a digital workplace. The following
initiatives are currently being taken by the Company:
1. Automation: All the processes in the customer
life cycle are being relooked at and LTFH wants to
achieve straight-through processes across all its
retail businesses.
2. Technology Infrastructure: From using on
premise technology infrastructure to cloud- based
infrastructure, LTFH intends to leverage the power
of cloud computing during peak hours.
3. Integrated Operations: LTFH has created a service-
oriented architecture by deploying an Enterprise
Service Bus which enables it to bend as an when
requirement changes and interact with data that
could be accessed from anywhere in the world.
4. Fintech Partnership: LTFH has started collaborating
with fintechs, where innovative services are being
consumed as a service rather than developing it in
house.
5. Data Analytics: LTFH has set up a full-strength
data analytics team to enable the Company to take
data-based decisions.
(d) Corporate Social Responsibility: LTFH aligns its social
responsibility theme and commitment with the United
Nation’s global development agenda of Sustainable
Development Goals (SDG). Key initiatives are woven
around sustainable livelihoods of rural communities
facilitated by two spaces of intervention – Integrated
Water Resource Management (IWRM) and financial
inclusion / literacy for women empowerment.
The IWRM programme engages with the communities
to prepare and implement interventions which
address their core needs on water conservation and
rejuvenation.
Through financial inclusion and digital financial literacy,
LTFH has designed a programme ‘Digital Sakhi’ which
is making efforts to create livelihood opportunities
for women by educating them to imbibe nuances of
digital financial literacy. The women are equipped with
a mobile tablet with preloaded digital financial literacy
(DFL) modules to disseminate information on digital
payments and other relevant government schemes in
the community.
CSR Programme Outcomes:
• 23% increase in ground water level, 22% increase in
water storage created by water structures, and 17%
increase in household annual incomes due to IWRM
project.
• 13.86% increase in knowledge level, 11.6% increase
in household average monthly savings of the 100 Digital
sakhis.
• 60% increase in the volume of work, 14.08% increase
in overall annual revenues and 13.24% increase in
annual profits of the 1000 women entrepreneurs.
• 100 employee volunteers clocking 167 hours
contributed towards CSR activities reaching 494
beneficiaries.
• Access to healthcare services and breast cancer
screening provided to 1,34,296 beneficiaries.
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Developmental
Projects
Business
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 held for sale under its subsidiary Marine
Infrastructure Developer Private Limited.
The operations of the Developmental Projects business
segment primarily involves development, operation and
maintenance of basic infrastructure projects in the Public
Private Partnership (PPP) format; toll collection including
annuity based road projects, power development and
power transmission, and providing related advisory services.
Significant cash generating assets have been created under
the current business model, which are being explored for
Rajpura Supercritical Thermal Power Plant
monetization on a continuous basis in order to maximize
value creation for the benefit of stakeholders.
L&T Infrastructure Development
Projects Limited (L&T IDPL)
Overview
L&T Infrastructure Development Projects Limited
(L&T IDPL) is one of India’s biggest Developers of
Public-Private-Partnership (PPP) infrastructure projects.
Since its inception in 1995, L&T IDPL has executed
and financed landmark infrastructure projects across
Transport and Energy, including Highways, Ports,
Airports, Transmission lines, Hydel Energy and Urban
Infrastructure, including Water. L&T IDPL currently
operates 16 completed infrastructure projects in
transport and energy across 8 Indian states, with a
mix of toll and annuity assets. As of March 2018, L&T
IDPL’s portfolio had an estimated total project cost of
R 17718 crore.
Canada Pension Plan Investment Board (CPPIB), the
largest pension fund in Canada, invested R 2000 crore
as share capital in L&T IDPL in 2014-15. This is the first
direct private investment by a Canadian pension fund
into an Indian Infrastructure Development company.
Over two decades of extensive experience in working
with Governments, multi-lateral agencies, international
and domestic financial institutions and corporate
entities has helped L&T IDPL to develop proven
competencies in project financing and execution,
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across viability assessment, financial closure, project
management, operations & maintenance and portfolio
management of infrastructure assets in various sectors.
In addition to its project portfolio, L&T IDPL has
installed Wind Energy Generators (WEGs) with a
capacity of 8.7 MW in Tamil Nadu in March 2010. The
energy generated is utilized for captive consumption.
The WEGs are eligible for 16,128 Carbon Emission
Reduction (CER) certificates per year until 2022
as a result of the carbon reduction by these wind
generators.
Business Environment
During 2017-18, the business environment has been quite
vibrant. L&T IDPL focused on excellence in O&M (operation
and maintenance) of its existing 16 assets while there
was constant evaluation of emerging opportunities in the
PPP space. This evaluation was carried out for both new
construction projects as also existing Government owned
infrastructure assets that have been completed and are
being offered for O&M. Notable developments in both
sets of opportunities and the business environment are as
follows:
Roads: Construction of highways reached 9,829 km
during FY 2017-18, with an all-time high of 27 km per
day. This represents a 20% growth over the previous
year. Expenditure of R 1,16,324 crore was incurred on
construction of national highways during 2017-18. The PPP
space witnessed a revival of sorts with the following key
developments:
1. Launch & listing of the first Infrastructure Investment
Trust (InvIT) in May 2017 (six toll-road assets comprising
Hyderabad Metro Rail project
3,645 lane km) triggering other developers to explore
this opportunity to monetize mature road assets and
bring down debt exposure.
2. Road developers, who until recently focused on projects
that required them to invest heavily and bear major risks
over long periods, have shifted to focus to an asset-light
model like Hybrid Annuity Model (HAM), introduced in
order to re-balance the risk sharing. Of the total length
awarded by NHAI in fiscal year 2018, awarded 150 road
projects of 7,400 km worth R 1,22,000 crore. Of the
total length awarded, 3,396 km (~46%) was awarded
on Hybrid Annuity model at a cost of R 76,500 crore
and 209 km (~3%) on Toll mode at a cost of R 2,500
crore. Commercial banks have selectively financed these
HAM projects based on the standing of the developer/
sponsor. There is growing competition in the HAM
model with most contractor-developers now bidding for
projects.
3. Successful bid-out by NHAI of the first
Toll-Operate-Transfer (TOT) bundle comprising
of 9 NH projects realizing about R 96.81 billion
for operational road projects aggregating to
a length of about 700 km.
4. Implementation of GST and E-way Bill; the unified
tax regime has obviated the need for interstate check
posts which has resulted in reducing the travel time
of long-haul trucks and other cargo vehicles by over
one-fifth and improved the turnaround time of the
fleet. Improved traffic numbers coupled with positive
WPI growth has led to a double-digit growth in
revenues for most road developers.
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5. Introduction of FASTags (electronic toll collection)
by NHAI has led to decongestion at toll plazas and
prevention of toll revenue leakage. L&T IDPL toll plazas
witnessed a substantial increase in electronic tolling
from 7% in Dec 2016 to 24% in June 2018.
6. As per the Economic Survey 2017-18, the road sector
alone has NPAs of R 36,596 crore. Rising NPAs, higher
risk provisioning assigned to road sector and dwindling
profits in the road sector have made banks reduce
exposure to the infrastructure sector.
7. Commitment by several large pension funds and long
term infra-focussed funds to the Indian infrastructure
space along with NIIF of the Union Government is
expected to boost the secondary market for TOT
projects.
Transmission Lines: Around 23,119 circuit kms of
transmission lines and 86,193 MVA of transformation
capacity was added during FY 2017-2018. REC TPCL (REC
Transmission Projects Company Limited, a 100% subsidiary
of Rural Electrification Corporation) the Bid Process
Coordinator (BPC) for Transmission Lines on the TBCB (Tariff
Based Competitive Bidding) route has awarded two bids
during FY 2017-2018.
A large number of Intrastate Transmission Line bids are
expected in the coming years.
During the first quarter of FY 2018, an InvIT was
successfully launched and listed in the Transmission Line
sector (two power transmission projects with a total circuit
length of approximately 1,936 ckms, and 6,000 MVA of
transformation capacity).
Significant Developments in the current year
During 2017-18, L&T IDPL completed two of its highway
projects, L&T Deccan Tollway and L&T Sambalpur
Rourkela Tollways, both of which achieved commercial
operations and commenced toll collection. These
two highways are generating revenues of about.
R 60 Lakhs per day.
Overall, gross toll revenue of R 1892.94 crore grew by 19%
over the last fiscal, despite muted WPI growth of 3%
Electronic toll collections through FASTag saw a large jump.
Further to the push of less-cash drive of Government of
India, L&T IDPL FASTag collections went up by 87% (June
2017 to June 2018).
The transmission line business had gross collection of
R 202.26 crore as annuity payments.
In May 2018, L&T IDPL became the first infrastructure
sponsor to successfully launch a private placed InvIT
(infrastructure investment trust) with an initial portfolio of
five road assets. This InvIT raised R 3700 crore, with 55% of
the funds coming from international investors from Canada
and Germany. InvIT has enabled L&T IDPL to monetize five
of its assets, repaying bank loans and providing growth
capital; It also provides L&T IDPL a platform for operating
assets, both existing and future.
Vadodara-Bharuch Toll plaza, Gujarat
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Outlook:
In the coming year, L&T IDPL would constantly evaluate
new opportunities with worthwhile returns, with a special
focus on highways and transmission lines, while other
sectors could be taken up on a project-wise basis. L&T IDPL
would also focus on operational excellence for its existing
asset portfolio. To ensure this, L&T IDPL is undergoing
Project LEAP, a Business Excellence Initiative.
L&T IDPL looks forward to more PPP infrastructure projects
in both project construction and asset monetization.
We also hope for quicker dispute resolution processes,
wherein several of our claims and court cases may see
final determination. L&T IDPL would also engage with
all stakeholders to ensure accounting policies and other
enabling environment is conducive to its business.
L&T IDPL would also evaluate operational assets from the
secondary market and shall seek to acquire such assets
(primarily covering Highways & Transmission Lines) which
meet the investment benchmarks. L&T IDPL would also
seek to re-enter projects in Bulk/Industrial Water and
Railways.
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 in Hyderabad
Visakhapatnam industrial water supply project, Andra Pradesh
under the PPP (Public Private Partnership) model on
Design, Build, Finance, Operate and Transfer (DBFOT)
basis. The Company entered into a Concession
Agreement with the erstwhile Government of Andhra
Pradesh on 4th September, 2010. The agreement
also provides for development and subsequent
monetization of Transit Oriented Development.
The Metro Rail system includes construction of three
elevated corridors from Miyapur to L. B. Nagar,
Jubilee Bus Station to Falaknuma and from Nagole to
Shilparamam, covering a total distance of 71.16 km.
The concession period of the project is for 35 years
including the initial construction period of 5 years. The
Concession period is extendable for a further period of
25 years subject to fulfilment of certain conditions by
the Company as set out in the Concession Agreement.
The estimated project cost is R 16,375 crore which
includes the cost of rail system and 6 million TOD
which is to be funded by a term loan of R 11,478
crore, equity share capital of R 3,439 crore and
Viability Gap Fund from Government of R 1,458
crores. The company has tied up its entire debt and
achieved financial closure on 1st March 2011. The
Government of Telangana has declared the appointed
date as 5th July, 2012 upon fulfilment of the condition
precedents (CP) from both the parties i.e. L&T Metro
Rail (Hyderabad) Limited and the State Government.
The Company is executing the project, covering a
total distance of 71.16 km in 3 different corridors.
This entire distance is further sub-divided into 6
stages for ease of implementation. The project cost
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incurred during the year 2017-18 is R 2,241 crore and
cumulative up to 31.03.2018 is R 14,723 crore. The
Hon’ble Prime Minister inaugurated a 30 km stretch
of the Metro Rail System on 28th November, 2017
connecting Miyapur to Ameerpet in Corridor 1 and
Ameerpet to Nagole in Corridor 3.
The overall physical progress of the project as on
31.03.2018 is 81%. Construction works in Stage 4 and
5 are nearly complete. The Company is aiming for the
commencement of commercial services from Ameerpet
to LB Nagar and Ameerpet to Hitec city before
December 2018. Stage 6/1 is slated for completion
during first quarter of next financial year.
As per the Concession Agreement (CA), the scheduled
Commercial Operation (COD) date for the entire
project length of 71.16 km was 5th July, 2017.
However, due to delays in getting RoW and confirming
alignment changes, the construction of the project
has got delayed. The lenders have accorded sanction
of extension of time for COD up to two years i.e.,
up to 5th July, 2019 with a corresponding increase in
the loan period. As per the revised schedule, the loan
repayment will start from 30th September, 2020. The
corresponding cost implications are being assessed for
claiming compensation.
TOD Projects commenced commercial operations at
Punjagutta (0.48 million sq. ft. office space during
Nov. ‘17 and mall space during Feb. ‘18) and at Hitec
city (0.21 million sq. ft. mall space during Feb18).
Two other malls at Errum Manzil (0.35 million sq. ft.)
and Musarambagh (0.24 million sq. ft.) are nearing
Kudgi Power Transmission Line project, Karnataka
completion. Strategies to develop the Raidurg site,
which is a large parcel of land, at a prime location and
has a potential of 3.20 million sq. ft. of mall space and
office buildings, are underway.
Viability Grant of Funding (VGF) is being released by
the Central Government from time to time as per
eligibility and the total VGF drawn stood at R 1204
crore as on 31st March, 2018.
Business Environment
About 10 million transport trips are performed every
day in Hyderabad city and the major share is taken by
bus transport (50%). The city roads are congested,
with only 8% road area and a very low average speed
(about 8 kmph). The Company is poised to provide
safe and punctual travel and has been working on
various value-added initiatives including last mile
connectivity, digital ticketing and a Mobile app to minimize
commuters’ pain points, ensuring higher ridership on the
metro system.
Non-fare revenue generation through cross-selling of
products to commuters is being increasingly explored. This
will be further strengthened by Metro expansion, which will
result in higher ridership. The Government of Telangana has
plans to implement Phase II of the Metro project, covering
85 km (including the Airport link). This will enhance the
average ridership on the Metro system significantly due to
the network effect.
The Company has been granted rights for Real Estate
development with strategically located land parcels
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interspersed at prime city locations, adjoining metro
Stations and metro corridors. Developments would
encompass Grade-A commercial developments for IT/ITES
Office, Healthcare, Retail and Hospitality. Advertisement
space offers good revenue potential through unlocking
various innovative products and services.
Significant Initiatives
The Company has tied-up with a solar power developer
for generating captive solar power of about 10 MW at a
very competitive price, which will generate about 10% of
energy requirement of Metro trains. The Company has also
received concessional rate of R 4.95/- per Unit (cheapest in
the country) for electricity.
The Company is exploring various non-fare revenue
generating options through optimization of resources
developed in-house for the past 5 years, namely:
• Leasing out space for erecting mobile towers.
• Skywalks connecting the malls & metros leading to
increase in footfall and increased ridership
• Tie up with cab operators
• Leasing out Optical Fibre
• Training our upcoming metro staff with the existing
infrastructure
• Consultancy services for other metros.
The Company has developed models to obviate TOD
related threats, while leveraging the various advantages
of the offering like metro-rail connect, strategic locational
offering, etc., and has also obtained automatic step-in-
rights by the Government for specific retailers by which, the
risk in the event of termination is mitigated. The Company
has also re-negotiated contracts with various project
contractors to minimize the claims, on account of extension
of time.
Outlook:
The Company is planning to open another two stages
of Metro (Stage 4 & Stage 5) in FY 2018-19, thus taking
the total metro operations to 56 km, with an expected
overall ridership of approx. 6.15 lakhs per day. Measures
like fare integration with other transport modes and
collaborations with various feeder services for first and
last mile connectivity are being taken to strengthen fare
revenue. The Company 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, the Company
intends to start with a 0.5 million sq. mall at Raidurg
along with 0.15 million sq. mall at Rasoolpura. Discussions
with customers to kick start a few other developments
of the portfolio are underway. Measures are being taken
to upfront the cash inflows on advertisement services by
entering into longer tenure contracts.
L&T Power Development Group
Overview
L&T Power Development Limited, a wholly-owned
subsidiary of L&T, is engaged in developing, operating
and maintaining power generation assets.
The portfolio comprises projects in thermal and hydel
power generation projects aggregating to 2270 MW.
Hydel Power Projects
Hydel projects with an aggregate capacity of 870 MW are
in various stages of execution.
A brief status is depicted below:
Name of
Project
State
Capacity
(MW)
Name of
Subsidiary
Current Status
99
Uttarakhand L&T
Uttaranchal
Hydropower
Limited
Advanced stage
of construction,
Dry-commissioning
of Unit-1 expected
by Mar’19
74
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430
Arunachal
Pradesh
L&T Arunachal
Hydropower
Limited
Himachal
Pradesh
L&T Himachal
Hydropower
Limited
Evaluation of
viability/exit
Singoli-
Bhatwari
Hydro Electric
Project
Tagurshit
Hydro Electric
Project
Sach-Khas
Hydro Electric
Project
Reoli-Dugli
Hydro Electric
Project
Total
870
Thermal Power Projects – Nabha Power Limited (NPL)
NPL owns and operates a 2X700 MW supercritical
thermal power plant at Rajpura, Punjab. Under the Power
Purchase Agreement (PPA) with Punjab State Power
Corporation Limited (PSPCL), which is for a period of
twenty-five years, the entire power generated from this
plant is sold to PSPCL. The plant is built on super critical
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technology of Mitsubishi, Japan. It is the first ‘made in
India’ supercritical power plant to be commissioned and
operational in the country.
The plant sources its fuel from South Eastern Coalfields
Ltd. (subsidiary of Coal India Limited) under a 20-year
Fuel Supply Agreement (FSA). The Company also secured
approvals to arrange coal from alternative sources to make
up for any shortage in supply of coal under the FSA. The
State Government has allocated the perennial source of
water for the plant from the Bhakra-Nangal distributary.
The plant is operated by an in-house team of experienced
operations and maintenance professionals.
The power plant has been running successfully for over
four years with an availability of 85% during FY18.
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-setting operational
efficiency.
Business Environment
India’s Electricity Generation grew at 6% in FY 18 and
there was addition of 5.44 GW of Thermal Energy Capacity
Additions in the same period. The Power Demand in Punjab
was 4671 MW (Q4 2018), registering a 10% increase over
the demand in the corresponding period last year.
During the year, the power sector was grappling
with a severe coal shortage. NPL had a lower Plant
Availability Factor (PAF) due to a forced shutdown in
October ’17 on account of coal shortages. However, the
plant imported coal to augment coal supplies and ensured
a PAF of 85%.
Third Party Sampling and testing through CIMFR (Central
Institute of Mining and Fuel Research) has been operating
quite well to mitigate the grade slippage issues in linkage
coal.
Significant Milestones and Initiatives
• Favourable judgement from the Supreme Court for
recovery of coal washing and transportation cost
• 85% availability achieved
• Best-ever Station Heat Rate of 2300 kcal/kwh achieved
• Lowest ever Auxiliary Consumption of 5.08% achieved
• Demineralised Water Cycle at all-time low of 0.4%
• 200 KW Roof top solar panel commissioned, CO2
emission reduction 220 Tons p.a.
• Reliability Centred Maintenance approach implemented
• Performance linked allocation made for improvement in
coal quality
• Reduction in interest cost through reduction in borrowing
and lower interest rate achieved through innovative
financing instruments
• Awards received:
• Excellent Energy Efficiency Unit, CII, Hyderabad
• Top Plant Award, Power Magazine, USA
• Best Thermal Generation Unit, IPPAI
• Gold Award in Environment, Health & Safety, Grow
Care India
• Best IPP award, Asian Power Magazine
• Best Employer Brand Award, EBI
• CSR initiatives in the area of development of village
infrastructure, education, skill building, gender equality,
health and environment were implemented during the
year
The Company is committed to generate reliable and
environment- friendly power under safe working
conditions. Emphasis is laid on continual improvement of
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.
Outlook
The major focus areas for NPL during FY19 would be
maximising plant availability, improving operational
efficiency, enhancing fuel quality, resolving the regulatory
issues, collection of disputed receivables, cost reduction
initiatives and Health, Safety and Environment compliances.
With issues relating to coal allocation under Fuel Supply
Agreement coupled with logistic constraints, fuel availability
continues to be challenging in FY 19 too. Procuring
higher quantities of imported coal, encouraging PSPCL
for diversion of coal lying in other Power Plants to NPL
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and pursuing increase in coal allocation would ensure Fuel
Security.
Increasing global warming and need for long-term
sustainable energy security have renewed the focus on
the traditionally most clean hydro-power. Accordingly, the
Government is considering policy initiatives for the revival
of the hydro-power sector. The Company 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.
Marine Infrastructure Developer Private Limited :
Kattupalli Port
Kattupalli Port at Chennai, a container port with a capacity
to handle 1.2 million TEUs per annum has a container
terminal with two container berths, and has been accorded
SEZ co-developer status. 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. In the current
year 2018-19, the Company has divested its ownership
and has completed the transfer of the port ownership in
entirety.
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Financial Review 2017-18
I. L&T CONSOLIDATED
A. PERFORMANCE REVIEW
The Company performed well on all the parameters during
the financial year 2017-18, with pick-up in domestic
investment climate. The slew of measures implemented
over the last year or so - including demonetisation, Real
Estate Regulatory Act, Goods & Services Tax, Insolvency
& Bankruptcy Code have resulted in some short-term
disruptions. In the long term, however, these are expected
to give rise to a new economic order. This will have
potential to significantly enhance revenues and channelize
the funds for inclusive economic development. The
Government’s thrust on strengthening infrastructure and
the ‘Make for India’ concept for key strategic areas, will
provide opportunities to the Company’s various business
segments. Also, the rise in commodity prices is likely to
result in capacity additions by the industry. During the
year, the Company was beneficiary of the initial impact of
such measures, which is expected to gather momentum as
we go forward.
On the global front, uncertainties continue, as developed
economies have started backing protectionist policies
and the geo-political climate is giving rise to new trade
partners, impacting the way of doing business. However,
with hardening of oil prices, the investment momentum
in Middle East, a major market for the Company outside
India, is expected to improve. The Company continues
to be selective in addressing the international market.
The business environment remained competitive, with
both domestic and international players fighting for the
opportunities available.
Against the backdrop of such an environment, the Group
recorded satisfactory growth during the year with steady
performance of its businesses in diverse sectors. The
Company continued to focus on its goal of maximizing
shareholder value creation by exiting non-core businesses,
implementing operational excellence initiatives to have
profitable growth and containing working capital along
with better fund management. During the year the
Company sold two of its subsidiaries EWAC Alloys Limited
and L&T Cutting Tools Limited. The Company is awaiting
regulatory approval for conclusion of its stake sale in a
container port in Tamil Nadu. In November 2017, L&T
Metro Rail (Hyderabad) Limited, a subsidiary company,
commissioned a 30 km stretch of metro rail network in the
city of Hyderabad. Another subsidiary company viz. Nabha
Power Limited, which houses two thermal power plants at
Rajpura, received a favourable Supreme Court judgement
on matters affecting the viability of the Company. The year
also saw growth consolidation in some businesses, while
the listed entities within the group - L&T Infotech Limited,
L&T Technology Services and L&T Financial Services -
recorded notable growth, with expansion of business and
new acquisitions.
As at March 31, 2018, L&T Group comprises 93
subsidiaries, 8 associates, 34 joint venture companies and
33 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 set of group companies to provide
the business with focus and independent functioning. The
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.
Order Inflow & Order Book
L&T Group achieved an order inflow of R 152908 crore
during the year 2017-18, achieving a growth of 6.9%
over the previous year. The revival of the domestic
market compensated for the slight lull on the back of
depressed oil prices in Middle East, the major market for
the Company. The domestic market evidenced a pick-up
in capex finalization by public sector and Government
undertakings. Also, the year saw movement in the
award of orders from the private sector, resulting from
strengthening of commodity prices and improvement in
investment climate. Domestic order inflow increased by
15.3% to 76.6% of total order inflow, despite ordering
momentum yet to gather pace in sectors like Defence,
the preference there being on public sector enterprises.
International order inflow declined by 13.6% to 23.4% of
total order inflow. Further, geographical spread of order
inflow changed during the year, with the Middle East
contributing a lower share of 44.8%, which was earlier
64.9%.
Order Inflow growth was mainly driven by the
Infrastructure segment, contributing 57.1% of the total
order inflow for the year. Infrastructure growth was led by
some large value, prestigious orders received in Heavy Civil
Infrastructure, Building & Factories and Water & Effluent
Treatment. The respective businesses of the Company
have been beneficiaries of the improved investment
environment in India – accruing from the National
Highway Authority of India, Dedicated Freight Corridor,
Saubhagya Scheme, Mass Transit Systems, Airport
expansion programmes, Andhra Pradesh Infrastructure
Development, Refinery Expansions, Water Management
programmes, in addition to some private sector expansion
capex.
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A robust order book of R 263107 crore as at March 31,
2018 gives multi-year revenue and margin visibility to the
Company. With current year order inflow being domestic
centric, the composition of international order book
declined to 23.8% as at March 31, 2018, as compared to
26.7% in the previous year. As a result of introduction of
Goods & Services Tax, the order book has been adjusted,
since revenue excludes GST.
Infrastructure segment continues to contribute 74% of
the consolidated order book, comprising mainly Heavy
Civil Infrastructure 18%, Building & Factories 17%,
Transportation Infrastructure 14%, Power Transmission &
Distribution 14% and Water & Effluent Treatment 11%.
With reduced opportunities in the Power sector, the share
in order book has declined from 5% to 4%.
The growth in revenue was achieved despite transitory
disruptions due to GST implementation during the
year. Growth was largely contributed by Heavy Civil
Infrastructure, Water & Effluent Treatment, Transportation
Infrastructure, Hydrocarbon, Heavy Engineering and
Services business. Delayed order awards impacted
Metallurgical & Material Handling, while limited
opportunities and intense price competition impacted
revenue accruals in Power and Valves businesses
respectively. Growth in L&T’s Electrical & Automation
business was supported by improved demand for standard
products, particularly the metering systems.
Operating Cost and PBDIT
Manufacturing, Construction and Operating (MCO)
expenses at R 83305 crore increased by 6.7% over
FY 2016-17, registering improved operational efficiency.
These expenses mainly comprise cost of construction
material, raw materials and components, subcontracting
expenses and interest costs of Financial Services business.
Revenue from Operations
L&T Group recorded revenue of R 119862 crore during
the year, registering a growth of 9%. Adjusted for Excise
Duty in the previous year, the growth on a like-to-like basis
was 9.5%. Revenue earned from international operations
comprised 33% as compared to 34% in the previous year.
219
Staff expenses for the year 2017-18 at R 15292 crore
increased by 10.4% over the previous year. Staff Cost as a
percentage of revenue marginally increased to 12.8% from
12.6%, mainly due to addition of resources for growth of
the IT & TS businesses. The Company continues to focus
on improved productivity, digitalization and manpower
rationalization.
Exceptional Items
Exceptional items of R 123 crore during the year represent
gain on divestment of stake in two wholly owned
subsidiaries, EWAC Alloys Limited and L&T Cutting Tools
Limited, net of provisions made towards uncertain recovery
of outstanding from a customer referred under Insolvency
& Bankruptcy Code.
Sales and administration expenses increased by 10.1%
y-o-y to R 7693 crore, mainly due to higher provisioning
by Financial Services, Development Projects, Infrastructure
and Hydrocarbon business, partly compensated by
exchange gains.
The Group operating profit at R 13571 crore for the
year 2017-18 registered a healthy growth of 22% y-o-y.
The EBITDA margins for the year also improved by 120
basis points to 11.3%. The closure of legacy projects in
the Hydrocarbon business, cost optimization measures
in product businesses, monetization of a Realty asset,
the favourable Supreme Court judgement in the Nabha
Power case and the strong growth of IT&TS businesses -
contributed to the improvement in 2017-18, as compared
to the previous year.
Depreciation & Amortization Charge
Depreciation and amortization charge for the year
2017-18 decreased by 19% to R 1929 crore, compared
to R 2370 crore in previous year. The decrease was largely
due to impairment in the asset values in some of the
businesses, in the previous year.
Other Income
Other income at R 1412 crore, which increased by 5%
over R 1344 crore, consists of profit on sale of liquid
investments, interest and dividend income from treasury
investments. The growth was on account of higher
gains from deployment of surplus funds generated
through operations, and through divestment of stake in
subsidiaries.
Finance Cost
The interest expenses for the year 2017-18 at R 1539 crore
was higher by 15% in comparison to R 1339 crore for the
previous year. The increase was attributable to the impact
of interest cost in L&T Hyderabad Metro Rail upon partial
commencement of operations in November 2017, and
cessation of capitalization of interest on Seawoods assets,
on it getting ready for sale. Further, higher proportion of
interest bearing advances in Infrastructure businesses and
increase in LIBOR rates resulted in increasing the average
borrowing cost for the year to 7.3%, as compared to
6.9% in the previous year.
220
Tax Expense
Income Tax charge for FY 2017-18 increased to R 3199
crore compared to R 2007 crore in FY 2016-17 mainly
due to increased profits and higher Effective Tax Rate, on
account of increased disallowances in respect of earlier
years.
Profit after Tax & EPS
Consolidated Profit after Tax (PAT) at R 7370 crore for
the year 2017-18 rose by 22% over the previous year at
R 6041 crore.
Consolidated Earnings per Share (EPS) including
exceptional items for the year 2017-18 at R 52.62 were
higher by 22% over the previous year.
Return on Net Worth
The Net Worth of the shareholders, as on March 31, 2018,
at R 55657 crore, reflects an increase of R 5440 crore, as
compared to the position as on March 31, 2017. Return
on Net Worth (RONW) for the year 2017-18 was higher at
13.9%, driven by increase in net earnings, as compared to
12.8% in the previous year.
Liquidity & Gearing
Cash flow from operations decreased to R 6428 crore as
compared to R 12399 crore in the previous year mainly
due to higher levels of working capital, which partially
negated increase in operating profits. The group earned
constituted 16% of the total order inflows for the
segment.
a significantly higher income from investing activities
- namely dividends, proceeds from sale of treasury
investments and divestment activities - which was used to
repay certain high cost borrowings and meet interest and
dividend.
The Group incurred capital expenditure of R 2015 crore
during the year, mainly on construction activity of L&T
Metro Rail Hyderabad project. There was a net increase of
R 3254 crore in the cash balances as at March 31, 2018 as
compared to the beginning of the year.
v crore
FY 17-18 FY 16-17
12399
(8136)
3
2059
1158
53
7536
2821
693
2093
2174
(245)
7536
Consolidated Fund Flow Statement
Particulars
Operating activities
(Purchase)/Sale of other investments
Net (investment)/ divestment
Payment (to)/from minority interest (net)
Treasury and dividend income
ESOP proceeds
Sources of Funds
Capital expenditure (net)
(Borrowings)/Repayment of Borrowings
Dividend paid
Interest paid
Increase/(Decrease) in cash balance
Utilisation of Funds
The total borrowings as at March 31, 2018 stood at
R 107524 crore as compared to R 93954 crore as at March
2017. The gross Debt Equity ratio as of end March 31,
2018 stood at 1.75:1, same as at March 31, 2017. Net
Debt Equity ratio, however, as on March 31, 2018 is
1.47:1 as compared to 1.39:1 as on March 31, 2017.
6428
2169
477
1413
3283
50
13820
2015
3691
2390
2471
3254
13820
Infrastructure Segment
B. SEGMENT WISE PERFORMANCE (GROUP)
1.
The Infrastructure segment won orders worth R 87277
crore, higher by 11% over the previous year, mainly
from domestic public sector and government customers.
Large orders were won by Heavy Civil Infrastructure,
Transportation Infrastructure and Water & Effluent
Treatment. Although, liquidity constraints of customers,
aggravated by demonetization continue to impact growth
momentum in Buildings & Factories, during the year, the
business was successful in winning a few large-value
orders. The relatively new business of Smart World &
Communication registered growth on receipt of smart city
and telecom orders.
Overall Infrastructure business saw reduced opportunities
in the Middle East arising out of fiscal policy measures
in those countries. International order wins of the
Infrastructure segment, mainly in Power Transmission &
Distribution and Transportation Infrastructure businesses,
The Infrastructure segment clocked a gross revenue of
R 59819 crore for the year 2017-18 registering 10.9%
growth over the previous year. Execution of orders in hand
progressed well majorly in Heavy Civil Infrastructure, Water
& Effluent Treatment and Transportation Infrastructure.
Building & Factories and Smart World & Communication
faced some execution impediments by way of fund
allotment / liquidity crunch, customer clearances and
work-front availability. Right-of-way and environment
clearances continue to hamper execution in some of the
projects.
Revenue from international operations constituted 29%
of the total revenues of the segment during the year as
compared to 33% in the previous year, with a reduced
international order book.
The Infrastructure Segment’s operating profit was higher
by 10% on y-o-y basis at R 5902 crore for 2017-18,
though operating margins dropped marginally from 10.2%
to 10% due to certain stressed international projects in
Transportation Infrastructure and Buildings & Factories
businesses.
221
The Funds employed by the segment at R 17511 crore as
at March 31, 2018 increased by 8.7% vis-à-vis March 31,
2017, with increased volumes. Increase in Gross Working
Capital levels due to build-up of project work-in-progress,
not due for invoicing and collection, was partially
compensated by better vendor credit management and
increase in customer advances on new order wins.
2. Power Segment
The Power segment bagged orders worth R 2414 crore
as compared to R 2866 crore in the previous year. The
orders won during the year were majorly export orders.
The domestic sector continues to be plagued with lower
levels of coal-based power plant ordering in the face of
over-capacity in boiler and turbine production as well
as aggressive pricing by competitors. The order inflow
was low, also due to the segment losing one large-value
domestic order and non-participation in another large-
value order due to unfavourable terms.
PAT level. This impacts the operating margin for the Power
business, since the EPC margins reported as segment
margins do not include the performance of joint ventures,
which have a better margin profile.
The funds employed by the segment stood at R 790 crore
as at March 31, 2018 - higher than R 485 crore as on
March 31, 2017 - with release of payments to vendors and
higher carrying value of Investment in Joint Ventures under
the Power Group, consolidated through equity method
under IND AS.
3. Heavy Engineering Segment
The Heavy Engineering segment recorded order inflow of
R 5848 crore for the year ending March 31, 2018 - lower
by 25.6% as compared to the previous year, which had
a large-value Defence order. The current year had a mix
of orders from the Nuclear Power Corporation of India
and some defence sector orders. International orders
constituted a nominal 2.7% of the total international
order inflows.
Power segment revenue declined y-o-y by 10.5% to
R 6208 crore, as jobs under execution moved closer to
completion and new awards were delayed. Revenue from
international projects at R 1468 crore represented 24%
of the total revenue for the segment, largely contributed
by gas-based power plant jobs under execution in
Bangladesh.
Operating margin decreased by 10 basis points to 3.4%
during FY 2017-18, as compared to 3.5% in 2016-17 on
account of change in job mix.
Segment gross revenue of R 4114 crore improved by 19%
compared to the previous year on the back of execution
progress on defence jobs received in the previous year.
Revenue from international operations constituted 22% of
the total revenue for the segment.
The segment recorded a 6.4% increase in the operating
profit for the year at R 655 crore against an operating
profit of R 615 crore in the previous year. The operating
margin declined from 20% in previous year to 17.1% in
current year upon change in job mix.
As stated in the previous year, with implementation of IND
AS, the Joint Venture operations are consolidated only at
222
Funds employed by the segment as on March 31, 2018 at
R 1379 crore increased 6% y-o-y, on account of increase
in construction work-in-progress awaiting invoicing
milestones, which was partially offset by receipt of
customer advances and higher vendor credit.
4. Electrical & Automation Segment (E&A)
The E&A segment performed well, despite the
transitionary challenges of GST. The Standard Products
business contributed higher sales of final distributed
products, agricultural starters and energy meters. The
business recorded a gross revenue of R 5508 crore for
the year, an increase of 2.6% over the previous year and
adjusted for excise duty in previous year, the growth is
11%. With lower than expected volumes in international
group companies, revenue from international operations
declined to 28.1% of the total revenues of the segment.
Segment operating profit for the year improved to R 822
crore, a 17% increase over previous year. Operating
margins improved during the year by 90 basis points to
16%, owing to favourable product mix and improved
operational efficiencies.
year, driven by a number of onshore and offshore orders
in domestic sectors and from the Middle East region.
International orders accounted for 37.6% of total order
inflow for 2017-18 as compared to 66.9% in the previous
year, which included a large-size order in the offshore area
of work.
Segment revenue grew by a healthy 22% y-o-y at R 11760
crore for the year, through strong execution progress,
particularly, with respect to fast-track projects received
during the year. International revenue contributed 57.6%
of the total revenue of the segment as compared to
48.6% in the previous year, due to higher proportion of
international orders in the opening order book.
Favourable claim settlements and close-out of stressed
jobs resulted in a higher operating profit of R 904 crore
as compared to R 657 crore in the previous year and the
consequent margin improvement from 6.8% to 7.7%.
Funds employed at R 2271 crore decreased by 6.5% y-o-y
aided by higher credit from vendors.
The Company has signed definitive agreements with
Schneider Electric, a global player in energy management
and automation, for strategic divestment of the Electrical
& Automation business for an all-cash consideration
of R 14000 crore, subject to regulatory approvals. The
transaction will cover all operations, except Marine
Switchgear business and Servowatch Systems business.
5. Hydrocarbon Segment
Hydrocarbon segment sustained its strong performance
momentum from the previous year. The segment secured
fresh orders aggregating to R 15811 crore during the
Funds employed by the segment at R 1385 crore
increased by 21.6% as compared to March 31, 2017 with
deployment of surplus funds in treasury investments and
higher carrying value of investments in the Joint Ventures
under IND AS.
223
6.
IT & Technology Services (IT & TS)
The IT & TS segment comprises the L&T Infotech group
of companies and the L&T Technology Services group of
companies, which were listed in FY 2016-17. The segment
recorded gross revenue of R 11357 crore for the year
ended March 31, 2018 recording a growth of 14.9% over
the previous year. International revenue constitutes 91%
of the total revenue of the segment.
The Segment Operating profit stood at R 2391 crore for
the year 2017-18 as compared to R 2063 crore in the
previous year. Operating margin improvement of 20 basis
points, is on account of improved operational efficiencies.
Disbursal of fresh Loans and Advances in Wholesale,
Real Estate, Micro Loans and Farm portfolio amounted
to R 78590 crore during the year ended March 31,
2018 - a significant growth of 68% y-o-y. In line with
the disbursements, the Asset Book in focused lending
businesses stood at R 82692 crore as at March 31, 2018
recording a growth of 28% y-o-y. Net interest margins at
6.25% improved over 5.95% in the previous year.
The Funds employed by the segment at R 5373 crore as at
March 31, 2018 are higher by 26% as compared to March
31, 2017 due to increase in unbilled revenue, investments
and goodwill on acquisition of new subsidiaries.
During the year, the Company further divested 1.32%
stake in L&T Infotech and 1.13% stake in L&T Technology
Services, towards meeting the regulatory requirement of
minimum public shareholding of 25% within three years
from listing of its shares.
7. Financial Services (FS)
The Financial Services segment comprises 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 general
insurance business was divested during FY 2016-17.
Excluding the general insurance business, Segment
revenue grew 20% y-o-y at R 10064 crore during the
year ended March 31, 2018 on a comparable basis aided
by growth in the loan assets and disbursements in all its
focused businesses.
224
The Gross Non-Performing Assets (GNPA) ratio decreased
from 7.11% (restated) as at March 31, 2017 to 4.80%
as at March 31, 2018. 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 31% (restated as per new RBI norms) in
the year ended March 31, 2017 to 53% in the year ended
March 31, 2018 indicating a much stronger balance sheet.
As a result of this, the Net NPA ratio has reduced from
5.02% (restated) to 2.34% over the same period.
LTFH also witnessed strong growth in its Investment &
Wealth Management businesses. Average Assets under
The funds employed in the segment at R 19860 crore
as at March 31, 2018 mainly comprises L&T Metro Rail
Hyderabad project cost.
The Company is awaiting regulatory clearances to
conclude the divestment in a container port in Kattupalli,
Tamil Nadu to a strategic investor and is in advanced stage
of selling 5 road concessions to an Investment Trust.
9.
‘Others’ Segment
The ‘Others’ Segment covers Metallurgical and Material
Handling (MMH), Realty, Shipbuilding, Construction and
Mining Machinery, Industrial Machinery & Products and
Valves businesses.
Revenue for the segment declined during the year as
demand for Real Estate in the metro cities of Mumbai and
Bengaluru witnessed a slowdown post-demonetization,
and the Valves business faced de-growth due to lower
order intake on account of severe competition. With the
segment registering one large-value transaction in Realty,
the operating margin improved significantly compared to
previous year.
Management (AAUM) in the Investment Management
business increased to R 65932 crore during the year ended
March 31, 2018 - a growth of 68%. Average Assets
Under Service (AAUS) in the Wealth Management business
increased to R 18347 crore during the year ended March
31, 2018, registering growth of 35%.
8. Developmental Projects (DP)
The Group has acquired concessions through the
competitive bidding process for the development of
Power projects, Roads, Bridges, Hyderabad Metro Rail
and power transmission line. The total portfolio of the
group consists of 5 power projects, 15 road & bridge
projects, 1 transmission line project, 2 ports and 1 metro
rail project. The metro rail project is housed under L&T
Metro Rail (Hyderabad) Limited (L&T MRHL) which is 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, reassessed
not considering the 3 hydel power projects under hold, is
pegged at R 47807 crore, of which equity commitment is
R 10395 crore with R 9293 crore having been infused as at
March 2018.
The segment recorded revenue of R 4294 crore for the year
ended March 31, 2018, which is lower as compared to
R 4367 crore in the previous year, as construction activity
in the Hyderabad Metro project nears completion, and is
partly compensated by higher revenue from the Rajpura
power plant.
The segment clocked an operating profit of R 270 crore for
the year 2017-18, improving over the R 91 crore earned
in FY 2016-17, as Nabha Power accrued revenues on
receiving a favourable judgement in the matter of disputed
receivables. The revenue also includes operational revenue
on partial commissioning of the L&T Metro Rail Hyderabad
project in November 2017.
II. L&T STANDALONE
PERFORMANCE REVIEW
L&T’s standalone financials capture the performance of
the Infrastructure segment, Power, Heavy Engineering,
Electrical & Automation and the ‘Others’ segment
comprising Metallurgical and Material Handling business,
a part of Realty business, a part of Hydrocarbon business,
part of Shipbuilding business and Construction & Mining
Machinery business.
L&T delivered good performance on all operational
parameters, despite a volatile environment. The domestic
market is set on a growth path with a slew of reforms,
as against the international arena caught in geo-political
225
turmoil. The Infrastructure business segment surpassed
the previous year’s performance, while the Power and
Industrial businesses continued to experience headwinds
to growth.
Considering the returns potential and business
opportunities, the Company has infused additional capital
of R 2000 crore in L&T Finance Holdings Limited. As a
part of business portfolio restructuring, the Company
divested its complete stake in two subsidiaries viz. EWAC
Alloys Limited and L&T Cutting Tools Limited. In a major
development, the company took concrete steps towards its
stated intent to divest the Electrical & Automation business
by signing, subject to regulatory approvals, a definitive
agreement with Schneider Electric.
The key focus area continues to be enhancement of
shareholder value through operating margin improvement
and higher cash flow generation through working capital
reduction and unlocking of capital earnings sub-par
returns.
Order Inflow & Order Book
Order inflow during 2017-18 grew by 13% at R 105302
crore as compared to R 93201 crore in the previous year.
The Infrastructure segment contributed 79.1% of the total
order inflow during the year as compared to 82.1% in the
previous year. The Power business has been sluggish due
to the sectoral challenges.
Heavy Engineering order inflow pre-dominantly consisting
of defence orders, reported a decline due to deferment
of select prospects. Industrial demand has been low,
reflecting modest order inflow growth in E&A business.
The ‘Others’ segment saw pick-up in order inflow in
the Minerals & Metals business, with higher commodity
prices driving fresh investment. International order inflow
dropped to 15.1% of the total order inflow for 2017-18 as
compared to 16.4% in the previous year.
Order Book as at March 31, 2018 stood at R 227523
crore, 83.8% of which is contributed by the Infrastructure
segment. International orders constituted 17.9% of the
current order book. L&T continues to carry a healthy order-
book-to-revenue ratio at 3.05 providing better visibility of
revenue growth over the medium term.
Revenue From Operations
L&T achieved a revenue growth of 12.5% at R 74612
crore as compared to R 66301 crore in the previous
year. Revenue growth over the previous year is mainly
driven by execution pick-up in infrastructure projects in
Transportation Infra, Heavy Civil Infra and Water & Effluent
Treatment and progress in defence projects under Heavy
Engineering.
The Power segment revenue declined over the previous
year by 10.6% as a result of a declining order book.
Electrical & Automation segment grew by 4%.
226
Operating Cost and PBDIT
Manufacturing, Construction and Operating
(MCO) expenses, comprising cost of construction
Finance Cost
The interest expense for the year at R 1432 crore was
higher by 8.7% vis-à-vis R 1317 crore for the previous year.
The increase is attributable to a higher quantum of interest
bearing customer advances. The average borrowing cost
for the year 2017-18 was lower by 50 basis points at 7.5%
p.a. with repayment of some high-cost borrowings during
the year.
Exceptional Items
Exceptional items of R 431 crore for the year 2017-18
include gain on stake divestment in EWAC Alloys Limited
and L&T Cutting Tools Limited, gain on dilution of stake
in listed companies L&T Infotech and L&T Technology
Services, and provision made towards uncertain recovery
of outstanding from a customer referred under Insolvency
& Bankruptcy Code.
Profit after Tax & EPS
Profit after Tax (PAT), including exceptional items, for
the year 2017-18 dropped by 1.2% to R 5387 crore as
compared to R 5454 crore in the previous year. While the
operating profits were higher for the year, the increase in
tax expense and lower exceptional income as compared to
the previous year, resulted in overall reduction in PAT.
The Earnings per Share (EPS) for the year 2017-18 at
R 38.46 compared to R 39 in the previous year.
material, raw materials, components and subcontracting
expenses, amounted to R 58638 crore registering an
increase of 12.8%. These costs represent 78.6% of
Revenue, an increase of 20 basis points over the previous
year. Increase in MCO cost percentage to revenue is mainly
driven by change in the stage and mix of projects under
execution.
Staff expenses for the year at R 5714 crore increased by
11% y-o-y in line with revenue growth. The Company’s
manpower strength stood at 42924 as on March 31, 2018
compared to 41466 as at March 31, 2017.
Sales and administration expenses for the year at R 2831
crore increased by 6.1% y-o-y, mainly due to higher
provisions for doubtful debts.
The operating margins for the year stood at 10%,
registering an improvement of 20 bps over the previous
year. Profit before depreciation, interest and tax excluding
other income (PBDIT) was R 7429 crore for the year, higher
by 14.6% over the previous year.
Depreciation & Amortization Charge
Depreciation and amortization charge for the year
2017-18 reduced by 13.6% and was at R 1049 crore,
as compared to R 1215 crore in the previous year. The
reduction was due to impairment of asset values in the
previous year.
Other Income
Other income mainly comprises of income from the
Company’s treasury operations, dividends and income
from group companies. Other income for the year 2017-
18 at R 1885 crore, decreased as compared to R 1915
crore for the previous year, mainly due to lower yield on
treasury investments.
Other Comprehensive Income (OCI)
Other comprehensive income during year, reflected a loss
of R 51 crore, compared to a gain of R 157 crore in the
previous year, mainly representing change in balances
pertaining to cash flow hedge reserve on account of
gain/loss during the period and profit/loss reclassification
adjustments.
227
Funds Employed and Returns
Funds Employed by the Company at R 62381 crore
as at March 31, 2018 increased by R 4326 crore during the
year.
Particulars
Operating activities
Strategic investments in S&A companies and working
capital funding requirements were met out of redemption
of liquid investments and internal accruals.
Borrowings (net of repayments)
(Purchase)/Sale of Other investments
FY 17-18
FY 16-17
2952
5980
62
621
(3132)
(2592)
Standalone Fund Flow Statement
v crore
As on March 31, 2018, the segment aggregate level net
working capital at R 15393 crore decreased to 20.6% of
revenue as compared to R 13933 crore at 21% of revenue
as on March 31, 2017. 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 increased by R 1433 crore
(net of proceeds from divestment). Major funding was
provided to Financial Services, Shipbuilding and the Forge
shop.
Return on Net Worth (RONW) including exceptional items
for the year 2017-18 at 11.3% is lower as compared to
12.4% in the previous year.
Liquidity & Gearing
Business operations generated cash flows of R 2952
crore during the year as compared to R 5980 crore in the
previous year. The drop is mainly due to higher deployment
of funds to support growing business volumes. The cash
generated through internal accruals, treasury income and
liquidation of current investments was mainly used for
investments of R 1456 crore in S&A companies and capex
of R 1013 crore, in addition to payment of dividend and
interest of R 2279 crore and R 1322 crore respectively.
228
Treasury and dividend income
3635
1875
ESOP proceeds
Sources of Funds
Capital expenditure (net)
Net investment/(divestment)
Dividend Paid
Interest paid
Increase / (decrease) in cash balance
Utilisation of Funds
50
7320
1013
1456
2279
1322
1250
7320
53
2183
635
(1306)
1843
1151
(140)
2183
Total borrowings as at March 31, 2018 stood at R 10561
crore as compared to R 10558 crore in the previous year.
Proportion of short-term borrowings increased to 39% as
compared to 22% as at March 2017. The loan portfolio
of the Company comprises a mix of domestic and suitably
hedged foreign currency loans. The gross debt equity ratio
decreased to 0.21:1 as at March 31, 2018 from 0.23:1 as
at March 31, 2017. The net debt equity ratio was nominal
at 0.04:1 as at March 31, 2018.
III. STRATEGY, BUSINESS MODEL AND RESOURCE
ALLOCATION
Strategy Formulation:
The company has embedded business strategy formulation
as part of its long term sustainability plans. Business
strategy is evolved every 5 years through a collaborative
and consultative process that also includes financial
parameters as guideposts for different elements of
strategic plans.
While 5 year business outlook and broad financial goals
are embedded as an overarching strategic plan, shorter
term annual targets are framed before the commencement
of every financial year which, in turn, get folded into a
rolling medium term plan.
The current 5 year strategic plan commenced in 2016-17
and is slated to end on 2020-21 during which time the
group level shareholder value creation measured by Return
on Equity (RoE) is targeted to grow significantly.
E
V
I
T
C
E
J
B
O
S
E
N
I
L
E
M
I
T
E
P
O
C
S
Strategic Plan
• Long Term Business
Outlook
• Assessment of global macro
environment
• View on Domestic Economy
• Key Strategic Initiatives
• Assessment of Emerging
Technologies
Business Plan
• Rolling plan to adapt
to changes in
environment
• Course Corrections
Operating Plan
• Annual business plan
• KPIs: Order wins,
Revenues, Profits,
Working Capital and
RoE targets
• Productivity targets
5 years
2-3 year
Annual
• Organization structure
• Business Portfolio
• Geographical Business
Strategy
• Leadership Pipeline
• Long Term Capex Outlay
• Investment in emerging
businesses
• Strategic Partnerships
• Realignment of Plans
• Assessment of macro
investment
momentum
• CRM plan
• Employee
Engagement
• Medium term
opportunities
• Annual Budgets
• Order prospect pipeline
• Bid management policies
• Key Account
Management
• Order Book Execution
plan
• Capex & Liquidity plan
• Quality Control
Business Portfolio Strategy:
Sensitivity : This Document is Classified as "LNT Internal Use".
•
The Company focuses on its proven and core
competencies of conceptualising, executing and
commissioning large complex infrastructure projects
in the areas of Roads & Bridges, Power Transmission &
Distribution, Thermal / Hydel / Solar / Nuclear Power
Plants, Water & Irrigation Infrastructure, Residential
/ Commercial / Institutional / Factory Buildings, Real
Estate Development, Airports, Metro & Conventional
Railways, Onshore & Offshore Hydrocarbon facilities
and Metallurgical installations. An integrated EPC
(Engineering, Procurement & Construction) business
strategy forms the core backbone of the Company’s
business portfolio.
•
The diversified but cyclical nature of EPC business is
counterbalanced through a portfolio of manufacturing
and services business. Manufacturing is mainly
concentrated around electrical products and systems
(made-to-stock and made-to-order), heavy custom-
built equipment catering to process industries and
defence, material handling equipment and industrial
products & machinery. Services business caters to
sectors of Information Technology, Engineering R&D
and Financial Services
•
The business portfolio spans across domestic and
international markets in line with the strategy of
having a well-balanced geographically diversified
business.
•
Schematics of the business portfolio strategy:
Strategic Thrust and Direction:
At the core of the Company’s strategy is the overarching
aim to create shareholder value through enhanced
Return on Equity (RoE). The RoE improvement strategy
encompasses strategic, tactical and operational elements
such as:
•
•
•
Focusing on timely and cost-effective execution of the
Company’s unexecuted Order Book (Backlog) while
ensuring adequate backfill through order wins
Ensuring translation of healthy margin profile in
the Order Book into financial statements through
execution, operational excellence and digitalisation
initiatives
Incubating new businesses to tap future growth
opportunities
• Maintaining an optimum mix between domestic and
international business
•
Ensuring efficient and optimal utilisation of assets and
facilities
• Optimising capex and working capital levels
• Value monetisation for unlocking capital
• Maintaining and enhancing shareholder payouts
• Optimising financial leverage
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In the first 2 years of the plan, RoE has improved from
9.9% in 2016-17 (base year) to 13.9% in 2017-18 and is
in line with the plan.
The third tier comprises dedicated Risk Officers at each of
the business verticals who oversee and co-ordinate the risk
management processes at the respective businesses.
Resource Allocation:
The Company has a well laid-out plan of resource
allocation to meet its strategic objectives. These include:
• Maintaining adequate liquidity on the Balance Sheet
to exploit organic and inorganic growth opportunities
and fund emerging businesses such as Smart City
Infrastructure, Nuclear Power and Defence equipment
manufacturing.
•
Prudent allocation of resources (Capex and Working
Capital) to fund growth in businesses
• Maintaining strong financial health to facilitate access
to the Capital Markets as and when required
• Attracting and retaining a robust and thriving talent
pool through employee engagement programs,
monetary and non-monetary incentives, leadership
development initiatives, offering professional
development opportunities and fostering a conducive
organisation climate. The company has evolved a
series of structured HR policies to enable this resource
allocation.
•
•
Sustainable and long term engagements with labour
sub-contractors to ensure steady augmentation of
resources at project sites
Ensuring judicious allocation of manpower and
monetary resources to company-wide sustainability
and growth initiatives such as CSR, Digitisation and
operational excellence programs
IV. RISK MANAGEMENT
L&T has a four-tiered structure for Risk Management. The
top-tier comprises the Audit Committee and a Board-
appointed Apex Risk Management Committee (ARMC)
comprising of Executive Directors. The Audit Committee
of the Board oversees the efficacy of the risk management
processes. Strategic risks and top operational risks and
new initiatives (new geography, new investment etc.) for
respective businesses are discussed in detail in the ARMC
meetings.
The second tier is the Corporate Risk Management
department and the Chief Risk Officer (CRO), who oversee
and facilitate the Risk Management processes enterprise-
wide and lead organization-wide initiatives in the Risk
Management domain.
In the fourth tier, the Project Heads act as risk owners and
manage operational risks.
The Audit Committee, ARMC and the Risk Management
Committees at various levels are informed on the critical
risks affecting the Company for their review and guidance.
Mitigation plans are drawn up and implemented as
appropriate within the overall ERM framework of the
Company.
The Company works predominantly in the project
business and has developed robust project risk
management processes. The key processes of risk
reviews include Pre-bid risk reviews, Execution risk
reviews, Project Close-out risk reviews and Country
Clearance, in case of venturing into a new country
and revisit clearances based on the geopolitical and
economic developments in each of the cleared countries.
Pre-bid reviews are carried out as a pre-requisite for
bidding for any new project based on a bid authorization
matrix. Execution risk reviews of the projects are
held at regular intervals to track 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 help in factoring
learnings for future bids and creating a knowledge
repository.
The Company also has a robust Financial Risk
Management set-up which focuses on exposures and risks
emanating from currency and commodity price volatility in
the course of business. The structural stability and strength
of the Company is ensured by careful Assets / Liabilities
planning.
L&T has been conferred the prestigious ‘Best Risk
Management Framework And Systems - Capital Projects
& Infrastructure 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. One
such initiative was launching of an e-learning training
program for employees on Enterprise Risk Management
(ERM) to disseminate knowledge and enhance capabilities
on risk management, which will lead to better business
performance. The course is continuously updated with
new case studies relevant to the various business verticals.
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Periodic training workshops on risk management are held
across the Company.
The Company organises seminars and conclaves on Risk
Management, where eminent speakers on the subject are
invited to share perspectives and to elevate the level of
discussions on the topic within the Company.
The Company has a Knowledge Centre established
to provide inputs to the businesses comprising the
latest economic developments and covering analysis
on competitors, clients, sectoral studies, countries and
geo-political developments. The efforts are on to help
businesses anticipate potential risks in their respective
areas and work out suitable steps to deal with them. This
also highlights opportunities in the sectors / geographies
of interest.
The Company recognizes exceptional contribution in
managing risks by awarding selected project teams in the
annual L&T Risk Management Awards.
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, trade barriers and increasing
conflict in the Middle East (The Saudi – Qatar standoff)
are some of the risks that the Company faces. The
Company monitors such geopolitical risks, and develops
appropriate mitigation strategies addressing geographical
concentration, strategic sourcing options, regular
monitoring of international sanctions and other economic
measures.
Slow Recovery of Key Sectors: Growth in sectors such
as Power, Nuclear, and Metals & Minerals continued to
be hampered by a number of constraints such as the
lack of investment, the reduction in power tariffs, the
slow pace of decision-making, the financial distress
of players, the delay in environmental clearances, the
lingering effects of the mining ban, etc. Being a diversified
conglomerate helps mitigate the risk of such slowdown in
some sectors, as we see compensating growth in certain
other sectors. Renewed impetus to Infrastructure sector
by the Government - namely roads, railways, airports &
waterways - provides growth opportunities in the near
future.
Competition: It has been observed that competition
from foreign and domestic players has considerably
increased in the past few years. The Company’s
engineering, procurement, and construction business
derives its competitive strength from its excellence in
executing projects of varying sizes - its reputation for
quality, technology, cost-effectiveness and its project
management expertise. This helps in gaining an edge over
the competition.
Reputation and Brand: The Corporate Governance
and Compliance policy is in place mandating adherence
to the Code of Conduct and Internal Controls. This
is ensured by regular knowledge-sharing across the
organization and appropriate controls.
Other Operational Risks:
Execution Challenges: The Company faces
execution challenges, such as geological surprises,
availability of work front, land acquisition and right-
of-way (ROW), pending approvals and clearances from
Government agencies, working in difficult/harsh weather
conditions, manpower issues, etc. The Company closely
tracks the key risks for each project to effect timely
mitigation.
Partner Risks: Company partners with different
contractors (Joint Venture / consortium projects) across
businesses based on technical requirements/local market
conditions. The partner’s performance and financial
strength are crucial for project success. Learnings from
past projects are incorporated in the inter-se agreement
with the partners and clauses on liability of each partner
are carefully drafted after legal due diligence.
Working Capital Challenges: Project delays and
adverse contractual payment terms sometimes lead to
increased working capital requirements. The Company
has strengthened the process for close monitoring of cash
flows at the project level. The Company ensures regular
follow-up for delay in payments by client, and has ensured
improvement in working capital levels.
Claims management: The 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:
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 is
limited. The leadership pipeline has been strengthened
and proper processes are implemented for hiring the 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 and monitor the risks across the
businesses and respond effectively to achieve its strategic
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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 capability-building across the
organization to anticipate and manage risks effectively.
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 the future,
which is especially important in times of global economic
volatility. Withdrawal of monetary accommodation in
certain countries on the back of strong growth and rising
inflation and the current geo-political positioning have
resulted in elevated financial market volatility during the
last quarter of FY17-18. Despite the challenging domestic
economic environment in FY 17-18, primarily due to
the spill-over effects of demonetisation as well as GST
implementation issues, the Company managed to restrain
the working capital usage, especially at 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 JV partner challenges, and also to optimise
overall Group interest rate costs. The Company plans to
maintain adequate liquidity on the Balance Sheet to deal
with slow recovery/downturn in economic conditions.
The Company judiciously deploys its periodical surplus
funds in short-term investments in line with the defined
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
Commercial Paper issuance as well as re-pricing of some of
its existing long-term liabilities. The Company dynamically
manages interest rate risks through a mix of fund-raising
products, investment products and derivative products
across maturity profiles and currencies within a robust risk
management framework.
Foreign Exchange and Commodity Price Risks
The various businesses of the Company are exposed to
fluctuations in foreign exchange rates and commodity
prices. Additionally, it has exposures to foreign currency
denominated financial assets and liabilities. The business-
related financial risks, especially involving commodity
prices, by and large, are managed contractually through
price variation clauses, while the foreign exchange
and residual commodity price risks are managed by an
appropriate choice of treasury products for balancing risks
and at the same time optimising the hedging costs.
The above risk management activity is carried out under
the framework of Financial 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.
The financial year 2017-18 was characterised by a
relatively strong USD against developed market currencies
on robust US growth and inflation pick-up. Despite US rate
hike concerns, rising oil prices and GST implementation
concerns, rupee depreciation was contained during the
year. However, synchronized global economic growth
along with demand/supply mismatches led to an increase
in commodity prices. The combination of lower exchange
rate volatility along with robust financial risk management
processes resulted in lower financial cost and reduced the
impact of higher input costs on the Company.
V. INTERNAL CONTROLS
The growing business activities, restructuring of businesses
and challenging external factors call for a constant
review of the efficacy of the Company’s internal control
mechanism. Sound internal control procedures reduce
process variation, leading to more predictable outcomes.
The Company is committed to ensuring an effective
Internal Control environment that will help in preventing
and detecting errors, irregularities and frauds, thus
ensuring security of Company’s assets and efficiency
of operations. The Company has an internal control
mechanism which is commensurate with the size and
complexity of business and aligned with evolving business
needs.
Strong Corporate Governance and the right tone at
the top serves as a strong pillar for excellence. This is
demonstrated through various means including, but not
limited to, the Corporate Policy on Internal Controls,
which provides a structured framework for identification,
rectification, monitoring and reporting of Internal Control
weaknesses in the Company along with responsibilities
and tasks enjoined upon employees in all positions; the
Policy on Code of Conduct for employees and vendors
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together with the Whistle Blower Policy that extends to
vendors and channel partners, the facility of expression
of genuine concerns about unethical behaviour, improper
practice, any misconduct, any violation of legal or
regulatory requirements, actual or suspected fraud by any
official of the Company without fear of punishment or
unfair treatment; Internal Controls evaluation included
as part of employee’s appraisal; and appraising Senior
Management and the Audit Committee of the Board
periodically on the internal processes of the Company with
respect to Internal Controls, Statutory Compliances and
Assurance.
The Company has well-documented policies, procedures
and authorization guidelines commensurate with the
level of responsibility and standard operating procedures
specific to the respective businesses. The Company has laid
down Internal Financial Controls (IFC) as detailed in the
Companies Act, 2013 and has covered all major processes
commensurate with the size of business operations.
Controls have been established at the entity level and
process levels, and are designed to ensure compliance
with internal control requirements, regulatory compliance
and appropriate recording and reporting of financial
and operational information. Processes and controls laid
down as per IFC are regularly updated for all the changes
occurring internally due to change in business process,
restructuring, IT changes, etc. or any changes in external
scenarios like introduction of new law, new risk, etc. There
is appropriate framework in place to ensure that adequate
internal controls are laid down and operate effectively.
The Internal Control Organisation
The Company has adopted the three-lines-of-defence
model as prescribed by COSO (Committee of Sponsoring
Organizations) to ensure an effective internal controls
mechanism within the Company.
The first line of defence lies with the Business Heads,
process owners and support functions. They own primary
responsibility for design, establishment of internal controls
and its operating effectiveness in their respective areas of
operation. The Internal Controls framework is 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 from
time to time for any changes required, due to change in
business needs as well as improvements in processes to
strengthen the internal control systems. The Authorisation
Matrix for financial transactions are derived based on
Board resolutions which are delegated to individuals based
on business needs within the overall limits of Corporate
Authorisation Guidelines. Financial powers are vested
based on business requirements and there is no automatic
vesting of powers based on designation / grade of an
individual.
The second line of defence lies with Corporate Internal
Control (CIC) department. They facilitate and monitor the
efficacy of the Internal Controls embedded in Operations
so as to assist the management in establishing strong
internal controls. The Internal Control Department at the
Corporate level formulates procedures and guidelines
for any areas of weaknesses that 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.
The third line of defence lies with Corporate Audit
Services (CAS). They give assurance on Internal Controls
effectiveness by carrying out independent internal audits.
CAS is staffed adequately with qualified professionals
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
Internal Audit department, respective process owners carry
out necessary process / system improvements, and thereby
strengthen overall control mechanism. The process of
Internal Audit is reviewed by the Management and Audit
Committee of the Board.
VI. INFORMATION TECHNOLOGY
L&T has pioneered the use of Information Technology
for its business since the IT revolution started. As one of
the early adopters, L&T implemented ERP systems for its
businesses successfully in the late nineties, and since then,
many other complementary systems around ERPs covering
the entire set of business processes. For speed and agility,
L&T has followed a federated approach to IT, wherein
every business had its own IT setup consisting of core ERP,
associated systems, IT Infrastructure and staff.
New Digital Technologies (AI, ML, RPA & Analytics etc.)
have been making dramatic transformations to many
businesses. They have also given rise to new business
models. L&T has also embarked on a digital transformation
journey and are being designed and implemented across
various businesses.
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The implementation of these digital solutions has
the potential to transform the way we operate,
resulting in significant benefits to increase our
competitiveness and profitability. Implementation of
these solutions requires us to have robust foundational
core IT systems running the businesses. While our
efforts to design and implement the digital solutions
are under way, our core IT systems are also being
upgraded, with the requisite set of functionalities and
technologies on a continuous basis to support these digital
initiatives.
To strengthen the Information Security status and to
prevent any cyber threat to the Company’s business or
information repository, the Company has established a
CISO office. This move is to give focused attention to the
growing threats from the cyber world and to enhance the
Company’s cybersecurity protocols and secure the future
of the organization.
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DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Indiabulls Finance Centre, Tower 3
27th – 32nd Floor,
Senapati Bapat Marg
Elphinstone Road (West)
Mumbai 400013.
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
also includes 29 Joint Operations accounted on a proportionate basis, which comprise the Balance Sheet as at March 31, 2018, 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.
Management’s Responsibility for the Standalone Ind AS Financial Statements
The Board of Directors of the Company and those charged with governance of the joint operation referred to above, which is a
company incorporated in India, are 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 in accordance with the Indian
Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the companies (Indian Accounting Standards) Rules,
2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the respective companies 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 and the Order
issued under section 143(11) of the Act.
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 the audit evidence obtained by the 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.
PB
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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 financial information 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 Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as
at March 31, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
a) We did not audit the financial information of 25 joint operations included in the standalone Ind AS financial statements of the
Company whose financial information reflect total assets of r 4,583.15 crore as at March 31, 2018 and total revenues of r
5,285.06 crore and net cash inflows of r 203.19 crore for the year ended on that date, as considered in the standalone Ind AS
financial statements. The financial information of these joint operations has 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 the aforesaid joint
operations, is based solely on the report of such other auditors.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not
modified in respect of this matter.
b)
The Statement includes the unaudited financial information of 3 joint operations included in the standalone Ind AS financial
statements of the Company whose financial information reflect total assets of r 34.28 crore as at March 31, 2018 and total
revenues of r 5.32 crore and net cash outflows of less than r 0.01 crore for the year ended on that date, as considered in the
standalone Ind AS financial statement.
The financial information of these joint operations is unaudited and have been furnished to us by the Management and our
opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these joint operations, is
based solely on such unaudited financial information. In our opinion and according to information and explanation given to us by
the Management, such financial information is not material to the Company.
c)
The audit of standalone financial statements for the year ended March 31, 2017 were carried out by us jointly with another firm of
chartered accountants, and the report had expressed an unmodified opinion in relation thereto.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditors on the
financial information of 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.
b)
c)
d)
In our opinion, proper books of account as required by law have been kept by the Company and its joint operation companies
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 accounts;
In our opinion, the aforesaid standalone 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 Company as on March 31, 2018 taken on
record by the Board of Directors and the report of statutory auditor of its joint operation company incorporated in India, none
of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and joint operation
which are companies 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 its joint operation internal financial controls over financial reporting; and
g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations
given to us:
i.
The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial
statements;
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ii.
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 and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section
143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 28, 2018
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 at March 31,
2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company as for the year ended on that date
which includes internal financial controls over financial reporting of 1 of the 29 joint operations, 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 the joint operation referred to above, 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 Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting of the Company and its
joint operation Company incorporated in India, based on our audit. We conducted our audit in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the 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.
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We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditor of the joint operation
which is a Company incorporated in India, in terms of their reports referred to in the Other Matters paragraph below, is sufficient and
appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that
the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the
report of the other auditor on internal financial controls system over financial reporting of the joint operation referred to in the Other
Matters paragraph below, the Company has, in all material respects, an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the
internal control over financial reporting established by the respective Company 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 insofar as it relates to 1 joint operation, which is a Company incorporated in India, is solely based on the report
furnished to us by the other auditor of such Company.
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 28, 2018
ANNEXURE “B” TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of Larsen
& Toubro Limited of even date)
(i)
In respect of the Company’s property, plant and equipment:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property,
plant and equipment.
(b) The Company has a program of physical verification of its property, plant and equipment to cover all the items of property,
plant and equipment 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 property, plant and equipment. Pursuant to the program, certain property, plant
238
239
and equipment 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:
Type of asset
Total no. of
cases
Leasehold /
freehold
Gross block as at
March 31, 2018
Net block as at
March 31, 2018
Remarks
Land
Buildings
3
2
Freehold
Freehold
1.27
3.52
1.27
0.73
Conveyance deed pending
to be executed as the matter
is sub judice.
In respect of immovable properties of land and buildings that have been taken on lease and disclosed as property, plant and
equipment in the financial statements, the lease agreements are in the name of the Company, where the Company is the
lessee in the agreement.
v crore
(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 books of accounts.
(iii) According to the information and explanations given to us, the Company has not entered into any contracts or arrangements
covered under section 189 of the Act and hence reporting under paragraph 3 (iii) of the Order is not applicable to the Company.
(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 deposits during the year and does
not have any unclaimed deposits as at March 31, 2018 and hence, the provisions of the clause 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 by the company. We have, however, not made a detailed
examination of the cost records with a view to determine whether they are accurate or complete.
(vii) 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, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and
other 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, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other statutory dues in arrears as at
March 31, 2018 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, Goods and Service Tax and Value Added Tax
which have not been deposited as on March 31, 2018 on account of disputes are given below:
Name of
Statute
Nature of Dues
Taxability of sub-contractor
turnover, rate of tax for declared
goods, inter-state sales and
non-submission of forms
Central Sales
Tax Act, Local
Sales Tax Acts,
Entry Tax
and Works
Contract Tax
Act
Forum
where
Dispute is
Pending
Supreme
Court
Period to which
Amount Relates
Amount
Involved
(v crore)
Amount
Unpaid
(v crore)
2000-01 to 2006-07
12.12
3.13
238
239
Forum
where
Dispute is
Pending
High Court
Period to which
Amount Relates
1986-87 to1987-88,
1993-94, 1994-95,
1998-99 to 2002-03,
2005-06, 2006-07 to
2012-13
Amount
Involved
(v crore)
Amount
Unpaid
(v crore)
61.96
54.43
Sales Tax/ VAT
Tribunal
1989-90 to 2013-2014
505.84
442.41
Commissioner
(Appeal)
1995-1996 to
2013-2016
Commissioner 1994-1995 to
2016-2017
Additional
Commissioner
2011-12 to 2012-13
Joint
Commissioner
2012-2013 to
2015-2016
35.27
34.36
8.67
2.62
8.67
1.99
10.87
6.27
Joint
Commissioner
(Appeal)
Assistant /
Deputy
Commissioner
Assessing/
Commercial
Tax Officer
High Court
1995-96 to 2012-13
1,414.85
1,325.03
1996-97 to 2013-14
499.29
497.10
1999-00 to 2001-02,
2013-2014
0.94
0.93
2005-06 , 2007-2008,
2009 to 2011
113.87
85.13
CESTAT
1991-92, 2001-02 to
2011-12
413.35
408.54
Commissioner
(Appeal)
2006-07 to 2014-15
25.92
24.85
Commissioner 2012-2013
2.05
2.05
Name of
Statute
Nature of Dues
Central Sales
Tax Act, Local
Sales Tax Acts,
Entry Tax
and Works
Contract Tax
Act
Dispute regarding question of law,
classification dispute, local VAT and
Works contract disputes.
Non-submission of forms,
classification disputes, inter-state
sales turnover, 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 sea sales, and
other matters.
Non submission of forms and other
matters
Dispute regarding question of law,
classification dispute and other
matters.
Disallowance of CENVAT credit,
short payment of service tax,
MRP Valuation disputes, dispute
regarding classification of services
and other matters.
Disallowance of CENVAT credit,
short payment of service tax,
service tax rate dispute, valuation
dispute and other matters
The Central
Excise
Act,1944,
Service Tax
under Finance
Act, 1994 and
Customs Act,
1962
Mine and
Minerals
(Regulation
and
Development)
Act, 1957
Demand notice for royalty on
alleged use of excavated minor
minerals.
High Court
2013-2014 to
2015-2016
20.79
10.39
Income-tax
Act, 1961
Demand arising out of Regular
Assessment/Reassessment
ITAT
2004-2005, 2007-2008
to 2012-2013
1,564.30
482.31
240
241
(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 material 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 related parties and the details of such related party transactions have
been disclosed in the financial statements 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 is 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 28, 2018
240
241
Balance Sheet as at March 31, 2018
ASSETS:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Investment property
Intangible assets
Intangible assets under development
Financial assets
Investments
Loans
Other financial assets
Deferred tax assets (net)
Other non-current assets
Current assets
Inventories
Financials 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 31-3-2018
v crore
v crore
As at 31-3-2017
v crore
v crore
2
2
3
4
4
5
6
7
49(e)
8
9
10
11
12
13
14
15
16
42
22994.26
1684.13
438.54
4344.98
24454.24
3183.75
1134.12
992.34
3441.78
6272.46
452.10
474.98
193.09
200.77
25116.93
400.62
2929.00
2500.04
6523.22
302.53
396.70
124.67
201.25
22061.03
285.22
2244.35
1762.86
19776.81
1777.54
506.68
6982.08
19921.95
1935.81
1599.91
1905.80
2317.92
37551.21
39130.82
388.00
115610.02
34663.47
33285.14
388.00
102238.44
242
243
Balance Sheet as at March 31, 2018 (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 financials liabilities
Other current liabilities
Provisions
Current tax liabilities (net)
TOTAL EQUITY AND LIABILITIES
Note
As at 31-3-2018
v crore
v crore
As at 31-3-2017
v crore
v crore
17
18
19
20
21
22
23
24
25
26
27
28
280.27
48893.98
186.59
45826.15
49174.25
46012.74
5495.16
108.64
7134.28
88.57
5603.80
472.87
1.27
7222.85
470.68
3.86
4129.57
936.27
31097.11
1870.87
2312.50
1111.59
24338.32
1440.25
38033.82
20853.82
1102.22
367.97
115610.02
29202.66
18186.75
1092.99
45.91
102238.44
CONTINGENT LIABILITIES
COMMITMENTS (capital and others )
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
29
30
1 to 64
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
S .N .SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
M. M. CHITALE
(DIN 00101004)
SUBODH BHARGAVA
(DIN 00035672)
M. DAMODARAN
(DIN 02106990)
SUNITA SHARMA
(DIN 02949529)
Mumbai, May 28, 2018
N. HARIHARAN
Company Secretary
M. No. A3471
VIKRAM SINGH MEHTA
(DIN 00041197)
Directors
SANJEEV AGA
(DIN 00022065)
242
243
Statement of Profit and Loss for the year ended March 31, 2018
2017-18
2016-17
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
31
32
33
34
35
36
46
74611.65
1884.82
76496.47
66301.35
1914.96
68216.31
8092.54
149.10
22237.57
1296.62
1815.21
19620.99
(962.36)
6388.59
7370.57
577.49
18493.31
1390.84
1446.67
16775.01
131.59
5817.99
58638.26
5713.59
2836.27
1432.23
1049.46
69669.81
5.19
69664.62
6831.85
430.53
7262.38
49 (a)
49 (a)
1974.07
(98.99)
1675.20
(371.10)
1875.08
5387.30
5387.30
Profit before tax
Tax expenses
Current tax
Deferred tax
Profit after tax
Carried forward
244
52003.47
5147.38
2671.00
1316.91
1215.19
62353.95
1.51
62352.44
5863.87
893.97
6757.84
1304.10
5453.74
5453.74
245
Statement of Profit and Loss for the year ended March 31, 2018 (contd.)
2017-18
Note
v crore
v crore
5387.30
2016-17
v crore
v crore
5453.74
Brought forward
Other Comprehensive Income
A.
Items that will not be reclassified to Profit or Loss:
Gain/(loss) on re-measurements of the defined benefits plan
Income tax on re-measurements of the defined benefits plan
B. Items that will be reclassified to Profit and Loss
Debt instruments through Other Comprehensive Income
Income tax on debt instruments through Other Comprehensive Income
Exchange differences in translating the financial statements of
foreign operations
Income tax on exchange differences in translating the financial
statements of foreign operations
Effective portion of gains and losses on hedging instruments in a
cash flow hedge
Income tax on effective portion of gains and losses on hedging
instruments in a cash flow hedge
Cost of hedging reserve
Income tax on cost of hedging reserve
Other Comprehensive Income for the year [net of tax]
Total Comprehensive Income for the year
Basic earnings per equity share (R)
Diluted earnings per equity share (R)
Face value per equity share (R)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
52
52
1 to 64
3.82
(1.32)
0.27
(11.12)
(1.41)
0.49
(64.52)
22.40
0.59
(0.14)
(12.27)
4.25
2.50
(8.02)
(10.85)
(10.25)
(9.17)
(1.08)
(6.61)
2.29
(0.92)
(4.32)
272.01
(94.34)
3.47
(1.20)
177.67
2.27
157.35
5611.09
39.00
38.86
2.00
(42.12)
0.45
(50.94)
5336.36
38.46
38.37
2.00
244
245
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
S .N .SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
M. M. CHITALE
(DIN 00101004)
SUBODH BHARGAVA
(DIN 00035672)
M. DAMODARAN
(DIN 02106990)
SUNITA SHARMA
(DIN 02949529)
Mumbai, May 28, 2018
N. HARIHARAN
Company Secretary
M. No. A3471
VIKRAM SINGH MEHTA
(DIN 00041197)
Directors
SANJEEV AGA
(DIN 00022065)
Statement of changes in Equity for the year ended March 31, 2018
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
Add: Bonus shares allotted during the year
Issued, subscribed and fully paid up equity shares outstanding at the end of the year
2017-18
2016-17
Number of
shares
93,29,65,803
16,38,898
46,67,64,755
1,40,13,69,456
v crore
186.59
0.33
93.35
280.27
Number of
shares
93,14,78,845
14,86,958
–
93,29,65,803
Share
application
money
pending
allotment
Equity
component
of foreign
currency
convertible
bonds
Reserves and surplus
Capital
reserve
Capital
reserve on
business
combination
Securities
premium
account
Employee
share
options
(net)
Debenture
redemption
reserve
General
reserve
Items of Other Comprehensive Income
Debt
instruments
through
other
Comprehen-
sive Income
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
v crore
186.30
0.29
–
186.59
(v crore)
Total other
equity
B. Other equity
Particulars
Balance as at 1-4-2016
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
Dividend distribution tax paid for the previous year
Balance as at 31-3-2017
Profit for the year (c)
Other Comprehensive Income (d)
Total Comprehensive Income for the year (c+d)
Issue of equity shares
Transfer to non- financial assets/liability
Share issue expenses
Utilised for issue of bonus shares
Transfer from/to general reserve/retained earnings
during the year
Employee share options (net)
Transfer under scheme of arrangement
Applications during the year
Dividend paid for the previous year
Dividend distribution tax paid for the previous year
Balance as at 31-3-2018
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
Mumbai, May 28, 2018
246
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3.56
–
–
3.56
153.20
–
–
–
–
–
–
–
–
–
153.20
–
–
–
–
–
–
–
–
–
–
–
–
–
153.20
10.52
–
–
–
–
–
–
–
–
–
10.52
–
–
–
–
–
–
–
–
–
–
–
–
–
10.52
8164.72
–
–
–
154.18
(0.05)
–
–
–
–
8318.85
–
–
–
137.63
–
(0.13)
(93.35)
–
–
0.02
–
–
–
8363.02
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(6.36)
–
–
–
(6.36)
242.23
–
–
–
–
–
(19.61)
(45.37)
177.25
–
–
–
–
–
–
–
(21.66)
(47.00)
–
–
–
–
108.59
406.51 25216.49
–
–
–
–
–
157.11
–
–
–
–
–
(49.75)
7710.27
5453.74
(8.02)
5445.72
–
–
(87.75)
–
–
–
–
–
–
(1701.51)
(141.20)
356.76 25373.60 11225.53
5387.30
2.50
5389.80
–
–
–
–
(102.18)
–
–
–
–
–
–
–
102.18
–
–
–
–
–
–
–
21.66
–
–
–
–
–
–
0.52
–
–
–
–
15.55
–
(1960.76)
(317.93)
458.94 25395.78 14250.01
4.87
(35.83)
(4.32)
(4.32)
–
–
–
–
–
–
0.55
–
(0.92)
(0.92)
–
–
–
–
–
–
–
–
–
–
(0.37)
179.94
179.94
–
–
–
–
–
–
144.11
–
(41.67)
(41.67)
–
(0.28)
–
–
–
–
–
–
–
–
102.16
76.03 41949.01
5453.74
157.35
5611.09
154.18
(0.05)
–
(10.25)
(10.25)
–
–
–
–
–
–
(45.37)
(1701.51)
(141.20)
65.78 45826.15
5387.30
(50.94)
5336.36
137.63
(0.28)
(0.13)
(93.35)
–
–
(10.85)
(10.85)
–
–
–
–
–
–
–
–
–
–
(47.00)
9.73
3.56
(1960.76)
(317.93)
54.93 48893.98
S .N .SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
M. DAMODARAN
(DIN 02106990)
N. HARIHARAN
Company Secretary
M. No. A3471
VIKRAM SINGH MEHTA
(DIN 00041197)
Directors
M. M. CHITALE
(DIN 00101004)
SUNITA SHARMA
(DIN 02949529)
SANJEEV AGA
(DIN 00022065)
247
Statement of Cash Flows for the year ended March 31, 2018
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)/loss on sale of fixed assets (net)
(Profit)/loss on sale of investments (net) [including fair valuation]
(Gain)/loss on derivatives at fair value through Profit or Loss
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
Purchase 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 venture companies and third parties
Deposits/loans repaid - subsidiaries, associates, joint venture companies and third parties
Advance towards equity commitment (addition)
Advance towards equity commitment refund
Interest received
Dividend received from subsidiaries
Dividend received from other investments
Settlement of derivative contracts related to current investments
Consideration received on transfer of Foundry Business unit
Net cash (used in)/from investing activities
2017-18
v crore
2016-17
v crore
6831.85
5863.87
(3228.67)
1049.46
(19.71)
1.66
1432.23
(496.89)
(60.18)
2233.22
125.74
69.77
7938.48
(12405.09)
(705.73)
9757.85
4585.51
(1633.70)
2951.81
(1136.78)
123.32
(3420.51)
1068.38
(75.00)
375.80
371.17
(12708.16)
13698.56
(19.45)
–
439.88
502.51
2693.08
(125.74)
–
1787.06
(1065.10)
1215.19
(67.40)
0.11
1316.91
(539.31)
(23.70)
72.44
56.89
61.77
6891.67
(1558.15)
192.26
1973.38
7499.16
(1519.47)
5979.69
(749.02)
114.35
(3375.61)
3348.24
–
(2304.55)
(230.85)
(19180.19)
20430.65
(6.35)
5.25
830.53
384.72
659.63
(56.89)
83.65
(46.44)
247
246
Statement of Cash Flows for the year ended March 31, 2018 (contd.)
C. Cash flow from financing activities:
Proceeds from fresh issue of share capital (including share application money)
Proceeds from non-current borrowings [Note 62]
Repayment of non-current borrowings [Note 62]
(Repayments)/proceeds from other borrowings (net) [Note 62]
Settlement of derivative contracts related to borrowings
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 (includes R 0.09 crore transferred
under scheme of merger - Note [60])
2017-18
v crore
49.50
1922.70
(3794.12)
1783.81
149.31
(1960.76)
(317.93)
(1321.87)
(3489.36)
1249.51
1938.24
2016-17
v crore
53.32
0.64
(1397.62)
(1905.88)
170.51
(1701.51)
(141.20)
(1151.42)
(6073.16)
(139.91)
2078.06
Cash and cash equivalents at end of the year
3187.75
1938.15
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.
2017-18
v crore
3183.75
1134.12
319.52
4637.39
4.00
1134.12
319.52
3187.75
2016-17
v crore
1935.81
1599.91
223.56
3759.28
2.34
1599.91
223.56
1938.15
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
S .N .SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
M. M. CHITALE
(DIN 00101004)
SUBODH BHARGAVA
(DIN 00035672)
M. DAMODARAN
(DIN 02106990)
SUNITA SHARMA
(DIN 02949529)
Mumbai, May 28, 2018
Directors
N. HARIHARAN
Company Secretary
M. No. A3471
VIKRAM SINGH MEHTA
(DIN 00041197)
SANJEEV AGA
(DIN 00022065)
248
249
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 and
amendments thereof issued by Ministry of Corporate Affairs in exercise of the powers conferred by section 133 of the Companies
Act, 2013. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also
applied except where compliance with other statutory promulgations require a different treatment. These financials statements
have been approved for issue by the Board of Directors at their meeting held on May 28, 2018.
(b) Basis of accounting
The Company 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.
Fair value measurements are categorised as below based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety:
•
•
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at
measurement date;
Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either
directly or indirectly; and
•
Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.
Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the levels of the fair
value hierarchy unless the circumstances change warranting such transfer.
(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 as amended.
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 for the periods upto June 30, 2017 includes excise duty collected from customers. Revenue from July 1, 2017
onwards is exclusive of goods and service tax (GST) which subsumed excise duty. Revenue also includes adjustments
made towards liquidated damages and other 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 been
passed, provided all the following conditions are satisfied:
1.
significant risks and rewards of ownership of the goods are transferred to the buyer;
248
249
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
2.
the Company retains neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the good sold;
3.
the amount of revenue can be measured reliably;
4.
it is probable that the economic benefits associated with the transaction will flow to the company; and
5.
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 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.
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 the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses
as the case may be) exceeds the progress billing, the surplus is shown as due from customers. For contracts where
progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus recognised
losses, as the case may be), the surplus is shown as 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 fulfilment
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.
250
251
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
The costs incurred on property development activities are carried as “Inventories” till such time the outcome of the
project cannot be estimated reliably and all the aforesaid conditions are fulfilled. When the outcome of the project
can be ascertained reliably and all the aforesaid conditions are fulfilled, revenue from property development activity
is recognised at cost incurred plus proportionate margin, using percentage of completion method. Percentage of
completion is determined based on the proportion of actual cost incurred to-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.
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. Government grants, which are revenue in nature and are towards compensation for the qualifying costs incurred by the
company, are recognised as other operational income in the Statement of Profit and Loss in the period in which such
costs are incurred. Government grant receivable in the form duty credit scrips is recognised as other operational income
in the Statement of Profit and Loss in the period in which the application is made to the government authorities and to
the extent there is no uncertainty towards its receipt.
I.
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 on investments and loans is accrued on a time basis by reference to the principal outstanding and the
effective interest rate including interest on investments classified as fair value through profit or loss or fair value through
other comprehensive income. Interest receivable on customer dues is recognised as income in the Statement of Profit
and Loss on accrual basis provided there is no uncertainty towards its realisation.
B. Dividend income is accounted in the period in which the right to receive the same is established.
C. 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 disclosed as such in the financial statements.
250
251
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
(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. 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 Company’s accounting policy.
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 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.
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 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 are measured and reported at cost, including transaction costs.
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 derecognition 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.
252
253
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
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.
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.
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, PPE, investment property and intangible assets are tested for
impairment so as to determine the impairment loss, if any. Intangible assets with indefinite life are tested for impairment each year.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is
determined:
(i)
in the case of an individual asset, at the higher of the 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.
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.
252
253
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
(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.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised
in the Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is
recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan
are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or
curtailment and when the 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 recognised in respect of long term benefits such as compensated absences, long service award etc. is
measured at present value of estimated future cash flows expected to be made by the Company and is recognised in a similar
manner as in the case of defined benefit plans vide (ii)(B) supra.
Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee 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)
Finance leases:
A.
Leases where the Company has substantially transferred all the risks and rewards of ownership of the related assets
to the lessee are classified as finance leases. Assets taken 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
254
255
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
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, 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
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.
In case of funding to subsidiary companies in the form of interest free or concession loans and preference shares, the excess of the
actual amount of the funding over initially measured fair value is accounted as an equity investment.
A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally
enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle
the liability simultaneously.
(i)
Financial assets:
A. All recognised financial assets are subsequently measured in their entirety either 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.
Investments in debt instruments that meet the following conditions are subsequently measured at - at amortised
cost (unless the same designated as fair value through profit or loss):
•
•
The asset is held within a business model whose objective is to hold assets in order to collect contractual cash
flows; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
3.
Investment in debt instruments that meet the following conditions are subsequently measured at fair value through
other comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)
•
•
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.
254
255
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
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.
7.
Investment in equity instruments issued by subsidiary, associate and joint venture companies are measured at cost
less impairment.
Investment in preference shares of the subsidiary companies are treated as equity instruments if the same are
convertible into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose
of redemption of such investments. Investment in preference shares not meeting the aforesaid conditions are
classified as debt instruments at FVTPL.
Investments in equity instruments 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 and dividend, provision for impairment
and exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other
than on account of above income or expense) are recognised in other comprehensive income and accumulated in other
equity. On disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity
is reclassified to profit or loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to
profit or loss on disposal of investments.
C. A financial asset is primarily derecognised when:
1.
the right to receive cash flows from the asset has expired, or
2.
the company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a pass-through arrangement; and (a)
the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
On derecognition of a financial asset in its entirety, the difference between the carrying amount 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 is recognised when the carrying amount exceeds its recoverable
amount.
(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, 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.
256
257
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
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 reserve’. 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. 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:
(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.
256
257
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
Assessment of net realisable value is made at each reporting period end and when the circumstances that previously caused
inventories to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value
because of changed economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original
amount written-down so that the resultant carrying amount is the lower of the cost and the revised net realisable value.
(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.
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 to employees pursuant to the Company’s Stock Options Schemes, are measured at the fair value of the
options at the grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over
the vesting period on a straight line basis. The amount recognised as expense in each year is arrived at based on the number of
grants expected to vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such
grant is transferred to the general reserve within equity.
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.
(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 at the
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; and
B.
exchange differences on transactions entered into in order to hedge certain foreign currency risks.
258
259
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
(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.
(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/
(expenditure)(net)”.
Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the
Company.
vi) Segment result includes the interest expense incurred on interest bearing advances with corresponding credit included in
“unallocable corporate income/(expenditure)(net).
vii) Segment results have not been adjusted for the exceptional item attributable to the corresponding segment. The said
exceptional item has been included in “unallocable corporate income/(expenditure)(net)”. The corresponding segment assets
have been carried under the respective segments without adjusting the exceptional item.
viii) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets
and liabilities represent the assets and liabilities that relate to the Company as a whole.
ix) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1(r) supra] and is allocated to the segment.
x)
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.
(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.
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.
258
259
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
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 operation. 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:
(i)
the Company has a present obligation (legal or constructive) as a result of a past event;
(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.
(x) Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
(i)
estimated amount of contracts remaining to be executed on capital account and not provided for;
(ii) uncalled liability on shares and other investments partly paid;
(iii)
funding related commitment to subsidiary, associate and joint venture companies; and
260
261
Notes forming part of the Financial Statements (contd.)
NOTE [1]
Significant Accounting Policies (contd.)
(iv) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of
management.
Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive
details.
(y) 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 profit before tax excluding exceptional items for the effects of:
(i)
changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;
(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; 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 at 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 & iintangible 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) Business Combination
Common control business combination where the Company is transferee is accounted using the pooling of interest method. Assets
and liabilities of the combining entities are reflected at their carrying amounts and no new asset or liability is recognised. Identity
of reserves of the transferor company is preserved by reflecting them in the same form in the Company’s financial statements in
which they appeared in the financial statement of the transferor company. The excess between the amount of consideration paid
over the share capital of the transferor company is recognised as a negative amount and the same is disclosed as capital reserve on
business combination.
The information in the financial statements of the prior period is restated from the date of business combination in case the
business combination is approved by statutory authority in the subsequent period.
260
261
Notes forming part of the Financial Statements (contd.)
NOTE [2]
Property, plant and equipment & capital work-in-progress
Class of assets
As at
1-4-2017
Additions
Business
Transfer$
Cost
Trf to
investment
property
Foreign
currency
fluctuation
Depreciation
Impairment
Book value
Deductions
As at
31-3-2018
Up to
31-3-2017
For the
period*
Business
Transfer$
Trf to
investment
property
Foreign
currency
fluctuation
Deductions
Up to
31-3-2018
Up to
31-3-2017
Up to
31-3-2018
As at
31-3-2018
As at
31-3-2017
v crore
Land
Freehold
Leasehold
Sub total -Land
Buildings
Owned
Leased out
Sub total
- Buildings
Plant &
equipment
Owned
Leased out
Taken on lease
Sub total- Plant
& equipment
Computers
Office
equipment
Furniture and
fixtures
Vehicles
Other assets
Ships
Aircraft
Sub total - Other
assets
Total #
362.34
85.97
448.31
32.80
–
32.80
2181.33
13.02
2194.35
42.09
–
42.09
–
–
–
–
–
24.26
–
24.26
32.10
–
32.10
5209.59 444.27
–
–
5212.69 444.27
2.11
0.99
294.83
125.74
54.82
30.28
1.73
–
–
1.73
0.34
0.06
142.23
14.04
0.04
182.40
38.97
37.25
–
– 195.22
37.25 195.22
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.03
–
0.03
370.85
85.97
456.82
–
2.49
2.49
–
1.02
1.02
0.32
–
0.32
1.85
–
–
1.85
5.73 2185.91 187.24 112.19
0.60
5.73 2198.93 188.44 112.79
13.02
1.20
–
99.11 5558.33 1502.92 700.74
0.28
0.07
99.11 5561.43 1503.92 701.09
0.95
0.05
2.11
0.99
–
–
0.02
0.04
12.23 337.78 141.17
62.96
1.77 154.35
70.73
31.70
–
–
–
–
–
–
0.22
–
–
0.22
0.15
0.04
–
–
–
–
–
–
–
–
–
–
3.51
3.51
–
–
–
–
–
–
370.85 362.34
82.46
83.48
453.31 445.82
0.45
–
0.45
0.10
–
0.10
0.84
–
0.84
298.24
1.80
300.04
87.25
–
87.25
87.25 1800.42 1906.84
11.22
11.82
87.25 1811.64 1918.66
–
–
–
–
–
–
–
0.80
–
–
0.80
0.01
0.02
48.30 2156.38
1.23
0.12
48.30 2157.73
–
–
15.50
–
–
15.50
15.01 3386.94 3691.17
1.16
0.88
0.87
0.94
15.01 3388.69 3693.27
–
–
9.42
1.66
202.64
93.06
–
0.01
–
0.01
135.14 153.66
62.77
61.28
0.02
2.16 154.17
46.76
23.80
0.01
–
0.01
1.63
68.95
0.24
0.24
84.98
95.23
0.14
14.20 207.31
56.17
32.75
–
–
–
–
37.25
– 195.22
– 232.47
9.67
–
9.67
4.74
6.15
10.89
–
–
–
–
–
0.04
7.16
81.80
–
–
–
–
–
–
–
–
–
14.41
6.15
20.56
–
–
–
–
–
125.51 126.23
–
–
22.84
189.07
211.91
27.58
–
27.58
8637.80 852.49
2.17
56.36
2.39
135.23 9303.26 2011.58 984.77
0.43
0.45
0.98
69.01 2928.29 103.00 102.51 6272.46 6523.22
Previous year
Add: Capital work-in-progress
8147.89 614.57
–
4.40
(9.71) 110.56 8637.80 1017.63 1024.39
–
0.42
(1.61)
28.41 2011.58
– 103.00
452.10 302.53
6724.56 6825.75
* R 1.13 crore pertains to foreign currency fluctuation,
$ R 1.74 crore - Refer to note 60
# Refer to note [46(B)]
a. Cost of freehold land includes R 1.27 crore (previous year: R 1.27 crore) for which conveyance is yet to be completed.
b. Cost of buildings includes ownership accommodations:
i.
A.
in various co-operative societies, shop-owners’ associations and non-trading corporations: R 67.29 crore, including 2660
shares of R 50 each, 232 shares of R 100 each and 1 share of R 250. (previous year: in various co-operative societies,
shop-owners’ associations and non-trading corporations: R 65.51 crore, including 2550 shares of R 50 each, 232 shares
of R 100 each and 1 share of R 250).
B.
in various apartments: R 9.42 crore. (previous year: R 8.96 crore).
262
263
Notes forming part of the Financial Statements (contd.)
NOTE [2] (contd.)
C.
D.
in various co-operative societies: R 0.36 crore (previous year: R 6.89 crore) for which share certificates are yet to be issued.
in proposed co-operative societies: R 29.90 crore. (previous year: R 27.61 crore).
ii.
ownership accommodations of R 3.52 crore in respect of which the deed of conveyance is yet to be executed. (previous year:
of R 3.53 crore).
iii. ownership accommodations of R 7.68 crore representing undivided share in properties at various locations. (previous year:
R 7.68 crore).
c. Additions during the year and capital work-in-progress include R 11.42 crore (previous year: R 15.55 crore) being borrowing
cost capitalised in accordance with Indian Accounting Standard (Ind AS) 23 on “Borrowing Costs”. Asset class wise break-up of
borrowing costs capitalised is as follows:
Class of assets
2017-2018
2016-2017
v crore
Buildings (owned)
Plant and Equipment
Total
11.35
0.07
11.42
15.29
0.26
15.55
d.
The average capitalisation rate for borrowing cost is 7.24 % (previous year: 7.91%).
e.
In addition to depreciation, obsolescence amounting to R 4.54 crore (previous year: R 22.90 crore) have been recognised in Profit
and Loss during the year.
f. 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, 2017 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.
Asset Class
Minimum useful life (in years)
Maximum useful life (in years)
1.
2.
3.
4.
5.
6.
7.
Owned Buildings
Owned Plant and Equipment
Computer
Office Equipment
Furniture and Fixture
Owned Vehicles
Ships
3
8
3
4
10
8
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.
Sr.
No.
1.
2.
Category of Assets
Sub-category of Assets
Aircrafts
–
Owned Vehicles
Motor Cars
Useful life as per
Schedule II (in years)
Useful life
adopted (in years)
20
8
18
7
262
263
Notes forming part of the Financial Statements (contd.)
NOTE [2] (contd.)
A Assets used in Heavy Engineering and Shipbuilding Business:
Sr.
No.
Category of Assets
Sub-category of Assets
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
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
B. Assets used in Electrical & Automation business:
10-30
5-15
5-30
10-30
50
10-30
5-15
15
5
Sr.
No.
Category of Assets
Sub-category of Assets
1.
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
C. Assets used in Construction business:
Sr.
No.
Category of Assets
Sub-category of Assets
1.
Photographic equipment
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
15
5
D. Assets used in Metallurgical & Material Handling business:
Sr.
No.
1.
2.
Category of Assets
Sub-category of Assets
Office Equipment
Assets deployed at project site
Air conditioning and
refrigeration equipment
Assets deployed at project site
3.
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
E. Assets used in Power business:
Sr.
No.
Category of Assets
Sub-category of Assets
Useful life as per
Schedule II (in years)
Useful life adopted
(in years)
1.
Plant & Equipment
Site facilities
15
4
j.
Carrying value of Property plant and equipment pledged as collateral for liabilities and/or commitments as at March 31, 2018 -
R 0.09 crore (as at March 31, 2017: R 0.09 crore)
264
265
Notes forming part of the Financial Statements (contd.)
NOTE [3]
Investment property
Class of assets
Land
Buildings
Total
As at
1-4-2017
40.05
391.71
431.76
Additions
–
57.58
57.58
Cost
Transferred
from PPE
10.36
26.64
37.00
Depreciation
v crore
Book Value
Deductions
As at
31-3-2018
Upto
31-3-2017
For the year
Transferred
from PPE
Deductions
Upto
31-3-2018
As at
31-3-2018
As at
31-3-2017
–
50.41
3.18
3.18
472.75
523.16
–
35.06
35.06
–
13.96
13.96
–
0.39
0.39
–
1.23
1.23
–
50.41
40.05
48.18
424.57
356.65
48.18
474.98
396.70
Previous year
464.04
–
4.40
36.68
431.76
17.14
19.03
0.42
1.53
35.06
396.70
446.90
a. Additions during the year include R 5.80 crore (previous year: R Nil) being borrowing cost capitalised in accordance with Indian
Accounting Standard (Ind AS) 23 on “Borrowing Costs”. Asset class wise break-up of borrowing costs capitalised is as follows:
R crore
Buildings (owned)
Total
5.80
5.80
–
–
Class of assets
2017-18
2016-17
b. 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
c. Disclosure pursuant to Ind AS 40 “Investment Property”
Minimum useful life
(in years)
Maximum useful life
(in years)
3
60
i.
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
v crore
2017-18
2016-17
171.63
64.32
149.01
21.12
ii.
Fair value of investment property: R 2487.24 crore as at March 31, 2018 (R 3412.55 crore as at March 31, 2017)
iii. The fair values of investment properties have been determined with the help of independent valuer on a case to case basis.
Fair value of properties that are evaluated by independent valuer is R 2487.24 crore (R 3012.75 crore as at March 31, 2017).
Valuation is based on government rates, market research, market trend and comparable values as considered appropriate.
264
265
Notes forming part of the Financial Statements (contd.)
NOTE [4]
Other Intangible assets & intangible assets under development
Cost
Amortisation
Book value
v crore
Class of assets
As at
1-4-2017
Additions
Business
Transfer $
Foreing
currency
fluctuation
Deductions
As at
31-3-2018
Up to
31-3-2017
For the
period
Business
Transfer $
Deductions
Up to
31-3-2018
As at
31-3-2018
As at
31-3-2017
Specialised softwares
182.84
11.42
1.38
Technical know-how
43.96
55.10
New product design and
112.87
48.53
–
–
development
Total #
339.67
115.05
1.38
–
–
–
–
–
–
–
–
195.64
146.47
13.08
0.68
99.06
20.36
9.29
161.40
48.17
24.96
–
–
456.10
215.00
47.33
0.68
–
–
–
–
160.23
35.41
36.37
29.65
69.41
23.60
73.13
88.27
64.70
263.01
193.09
124.67
Previous year
313.87
31.30
–
0.01
5.51
339.67
175.67
41.88
–
2.55
215.00
Add: Intangible assets under development
$ R 0.70 crore - Refer to note 61
# Refer to note [46(B)]
a. Additions during the year
200.77
201.25
393.86
325.92
Class of assets
Specialised softwares
Technical know-how
New product design and development
Total
FY 2017-18
FY 2016-17
Internal
development
0.11
–
48.53
48.64
Acquired
- external
11.31
55.10
–
66.41
Total
11.42
55.10
48.53
115.05
Internal
development
–
–
3.80
3.80
Acquired
- external
6.58
20.93
–
27.51
b. 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:
v crore
Total
6.58
20.93
3.80
31.31
Sr. No.
1.
2.
3.
Class of assets
Specialised softwares
Technical know-how
New product design and development
Minimum useful life
(in years)
3
3
3
Maximum useful life
(in years)
6
13
5
266
267
Notes forming part of the Financial Statements (contd.)
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 (Debt portion) of:
Subsidiary companies
Joint venture companies
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
L&T Aviation Services Private Limited
L&T Capital Company Limited
L&T Cassidian Limited [Net of provision R 0.05 crore (previous year: R Nil)]
L&T Finance Holdings Limited (quoted)
L&T Construction Equipment Limited
L&T Metro Rail (Hyderabad) Limited
L&T Power Development Limited
L&T Power Limited
L&T Realty Limited
L&T Seawoods Limited
L&T Shipbuilding Limited
L&T Electricals and Automation Limited
L&T Hydrocarbon Engineering Limited
L&T Technology Services Limited (quoted)
Larsen & Toubro Infotech Limited (quoted)
Larsen & Toubro Hydrocarbon International Limited LLC [Net of provision
R 0.68 crore (previous year: R Nil)]
Carried forward
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
18776.86
4.42
2991.26
136.64
867.35
217.73
16381.00
4.42
2730.25
56.04
21909.18
19171.71
605.10
–
1085.08
22994.26
605.10
19776.81
Number of units
As at
31-3-2018
Face value
per unit
v
As at
31-3-2018
v crore
As at
31-3-2017
v crore
100
10
100
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
2
1
SAR 1000
18,00,000
49,950
–
50,000
9,500
4,56,00,000
50,000
50,000
1,27,75,20,203
12,00,00,000
2,20,69,77,333
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
9,08,22,100
14,26,93,637
450
161.23
0.05
–
0.05
0.01
45.60
0.05
–
3468.17
82.82
2206.98
3112.70
0.05
47.16
1999.55
430.68
40.36
1000.05
937.78
118.80
–
161.23
0.05
150.24
0.05
0.01
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
0.68
13652.09
11665.49
267
266
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 LLC
Larsen & Toubro (Saudi Arabia) LLC
Spectrum Infotech Private Limited (refer to note 60)
L&T Infrastructure Engineering Limited
L&T Cutting Tools Limited
L&T Global Holdings Limited
Seawoods Realty Private Limited [Net of provision R 0.01 crore (previous year:
R Nil)]
Face value
per unit
v
USD 1
SAR 1000
10
10
1000
USD 100
10
Number of units
As at
31-3-2018
50,000
625
–
36,00,000
–
80,000
10,000
As at
31-3-2018
v crore
As at
31-3-2017
v crore
13652.09
0.23
1.06
–
21.85
–
53.16
–
11665.49
0.23
1.06
6.80
21.85
0.30
53.16
0.01
Seawoods Retail Private Limited [Net of provision R 0.01 crore (previous year:
10
10,000
–
0.01
R Nil)]
(ii) Preference shares-(equity portion):
13728.39
11748.91
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
10
9,00,00,000
67.78
67.77
preference shares, October 22, 2028.
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
10
5,00,00,000
37.06
37.06
preference shares, June 24, 2029
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
10
11,00,00,000
77.26
77.26
preference shares, April 16, 2030
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at
10
42,18,60,000
300.25
300.25
par preference shares, May 28, 2030.
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at
10
25,00,00,000
177.98
177.98
par preference shares, August 10, 2030.
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at
10
7,50,00,000
53.24
53.24
par preference shares, September 29, 2030.
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at
10
25,90,00,000
181.97
181.97
par preference shares, December 8, 2030.
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at
10
21,60,00,000
153.15
153.15
par preference shares, February 4, 2031.
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at
10
38,80,00,000
276.24
276.23
par preference shares, March 28, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at
10
41,61,29,994
295.40
par preference shares, November 19, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at
10
1,28,70,000
9.16
par preference shares, November 23, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at
10
18,93,29,994
132.00
–
–
–
par preference shares, December 19, 2032
(iii) Preference share considered equity as per terms:
1761.49
1324.91
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
2
82,60,00,000
826.00
1036.00
preference shares, March 30, 2022.
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
2
4,80,00,000
48.00
48.00
preference shares, May 12, 2022
Carried forward
268
874.00
1084.00
269
Notes forming part of the Financial Statements (contd.)
NOTE [5]
Details of Investments - non-current (contd.)
Particulars
(iii) Preference share considered equity as per terms: (contd.)
Brought forward
L&T Seawoods Limited - 10% Non-cumulative, optionally convertible
redeemable preference shares, July 14, 2022
L&T Seawoods Limited - 10% Non-cumulative, optionally convertible
redeemable preference shares, September 3, 2022
Number of units
As at
31-3-2018
Face value
per unit
v
As at
31-3-2018
v crore
As at
31-3-2017
v crore
4,22,50,000
874.00
42.25
1084.00
42.25
4,20,00,000
42.00
42.00
2
2
L&T Hydrocarbon Engineering Ltd - 10% Non-cumulative, optionally convertible
10
50,00,00,000
500.00
500.00
redeemable at par preference shares, February 6, 2029
L&T Hydrocarbon Engineering Ltd - 12% Non-cumulative, optionally convertible
10
13,00,00,000
130.00
130.00
redeemable at par preference shares, October 19, 2030
L&T Hydrocarbon Engineering Ltd - 12% Non-cumulative, optionally convertible
10
13,00,00,000
130.00
130.00
redeemable at par preference shares, March 30, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
2
89,10,50,000
891.05
701.25
convertible redeemable preference shares, July 17, 2029.
L&T Realty Limited - 12% Non-cumulative and optionally convertible
10
64,83,00,000
648.30
648.30
redeemable at par preference shares, May 26, 2025.
(iv) Other equity investments:
L&T Aviation Services Private Limited
L&T Shipbuilding Limited
Total - (a) = (i)+(ii)+(iii)+(iv)
(b) Associate companies:
3257.60
3277.80
0.64
28.74
29.38
18776.86
0.64
28.74
29.38
16381.00
Gujarat Leather Industries Limited [Net of provision R 0.56 crore (previous year:
10
7,35,000
–
–
R 0.56 crore)]
Magtorq Private Limited
(c) Joint venture companies:
(i)
Investments in fully paid equity instruments:
Ahmedabad-Maliya Tollway Limited (formerly known as L&T Ahmedabad-Maliya
Tollway Limited) [R 1000 (previous year: R 1000 )]
L&T Chennai-TADA Tollway Limited [R 1000 (previous year: R 1000)]
Devihalli Hassan Tollway Limited (formerly known as L&T Devihalli Hassan
Tollway Limited) [R Nil (previous year: R 1000)]
L&T Halol-Shamlaji Tollway Limited [R 1000 (previous year: R 1000)]
L&T Howden Private Limited
L&T Infrastructure Development Projects Limited [Net of provision R 950 crore
(previous year: R 950 crore)]
L&T Kobelco Machinery Private Limited
Krishnagiri Walajahpet Tollway Limited [R Nil (previous year: R 26000)]
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Rajkot-Vadinar Tollway Limited [R 1000 (previous year: R 1000)]
Carried forward
100
9,000
4.42
4.42
4.42
4.42
10
10
10
10
10
10
10
10
10
10
10
100
100
–
–
–
–
–
–
–
100
1,50,30,000
31,28,69,096
–
15.03
1746.48
–
15.03
1746.48
2,55,00,000
–
11,93,91,000
36,24,06,000
100
25.50
–
119.39
362.41
–
2268.81
25.50
–
119.39
362.41
–
2268.81
269
268
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
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
L&T MBDA Missile Systems Limited
(ii) Other equity investments:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
(iii) Preference shares-(equity portion):
Number of units
As at
31-3-2018
Face value
per unit
v
As at
31-3-2018
v crore
As at
31-3-2017
v crore
10
10
10
10
10
10
10
13,000
41,92,84,000
1,08,64,000
27,82,736
2,24,22,660
37,750
25,500
2268.81
0.01
419.28
10.86
0.82
22.42
0.04
0.03
2722.27
2.24
6.10
8.34
2268.81
0.01
419.28
10.86
0.82
22.42
0.04
–
2722.24
2.24
5.77
8.01
–
–
–
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
10
15,54,00,000
78.33
non-convertible redeemable at par preference shares, December 8, 2024
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
10
17,76,00,000
97.91
non-convertible redeemable at par preference shares, December 8, 2025
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
10
14,20,80,000
84.41
non-convertible redeemable at par preference shares, December 8, 2026
Total - (c) = (i)+(ii)+(iii)
(d) Other companies:
260.65
2991.26
–
2730.25
International Seaport Dredging Limited [Net of provision R 15.90 crore (previous
10000
15,899
–
–
year: R 15.90 crore)]
BBT Elevated Road Private Limited
Utmal Multi purpose Service Co-operative Society Limited (B Class) (non-trade
investments) [R 30,000 (previous year: R 30,000)]
Tidel Park Limited [Note 45(f)]
VP Global Fibre and Yarns Private Limited [R 20,600 (previous year: R Nil)]
The New India Assurance Company Limited
ICICI Securities Limited
Total - (A) =(a)+(b)+(c)+(d)
(B) Investments in preference shares of subsidiary companies:
(Fair value debt portion):
L&T Shipbuilding Limited - 12% Cumulative, non-convertible redeemable at par
preference shares, October 22, 2028
10
100
10
100
10
5
1,00,000
300
0.10
–
0.10
–
40,00,000
206
3,12,498
9,61,520
64.27
–
22.28
50.00
136.65
21909.18
55.94
–
–
–
56.04
19171.71
10
9,00,00,000
38.70
35.23
L&T Shipbuilding Limited - 12% Cumulative, non-convertible redeemable at par
10
5,00,00,000
20.36
18.53
preference shares, June 24 2029
L&T Shipbuilding Limited - 12% Cumulative, non-convertible redeemable at par
10
11,00,00,000
41.93
37.41
preference shares, April 16, 2030
Carried forward
270
100.99
91.17
271
Notes forming part of the Financial Statements (contd.)
NOTE [5]
Details of Investments - non-current (contd.)
Particulars
Number of units
As at
31-3-2018
Face value
per unit
v
As at
31-3-2018
v crore
As at
31-3-2017
v crore
(B) Investments in preference shares of subsidiary companies: (contd.)
Brought forward
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
42,18,60,000
100.99
159.32
91.17
142.09
preference shares, May 28, 2030
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
25,00,00,000
92.87
82.81
preference shares, August 10, 2030
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
7,50,00,000
27.55
24.56
preference shares, September 29, 2030
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
25,90,00,000
93.67
83.48
preference shares, December 8, 2030
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
21,60,00,000
77.11
68.71
preference shares, February 4, 2031
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
38,80,00,000
126.12
112.28
preference shares, March 28, 2032
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
41,61,29,994
127.95
preference shares, November 19, 2032
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
1,28,70,000
3.95
preference shares, November 23, 2032
L&T Shipbuilding Limited - 9% Non-cumulative non-convertible redeemable at par
10
18,93,29,994
57.82
–
–
–
preference shares, December 19, 2032
Total - (B)
(C) Investments in preference shares of Joint Venture companies:
(Fair value debt portion):
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
redeemable at par preference shares, December 8, 2024
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
10
17,76,00,000
80.89
redeemable at par preference shares, December 8, 2025
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
10
14,20,80,000
58.09
redeemable at par preference shares, December 8, 2026
10
15,54,00,000
78.75
867.35
605.10
–
–
–
270
Total investments non-current (A)+(B)+(C)
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
217.73
22994.26
–
19776.81
As at
31-3-2018
v crore
As at
31-3-2017
v crore
4597.03
2530.48
50537.78
31883.81
18397.23
17246.33
967.21
966.46
271
Notes forming part of the Financial Statements (contd.)
NOTE [6]
Financials Assets: Loans - non-current
Particulars
Unsecured security deposits, considered goods:
Unsecured security deposits, doubtful:
Less: Provision for doubtful security deposits
Unsecured long term loan and advances to related parties:
Subsidiary companies:
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
78.29
97.55
26.59
26.59
0.45
0.45
–
–
Inter-corporate deposits [Note 37 &38(A)]
225.50
512.00
Joint venture:
Inter-corporate deposits [Note 37 &38(A)]
1379.11
1167.22
Other secured loans, considered good:
Loans against mortgage of house property
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
Advance towards equity commitment - Subsidiary company [Note 38(B)]
Other receivables
0.23
1.00
0.74
0.03
15.46
15.46
2.28
2.28
–
1684.13
–
1777.54
As at 31-3-2018
As at 31-3-2017
v crore
319.52
91.54
0.02
1.99
19.45
6.02
438.54
v crore
223.56
273.76
–
3.01
6.35
–
506.68
272
273
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]
v crore
As at
31-3-2018
As at
31-3-2017
24.51
23.51
24.18
23.09
464.61
513.30
193.78
319.52
346.73
393.33
169.77
223.56
NOTE [8]
Other non-current assets
Particulars
Capital advances:
Secured
Unsecured
Advance recoverable other than in cash
Current tax receivable (net)
NOTE [9]
Inventories (at cost or net realisable value whichever is lower)
Particulars
Raw materials [includes goods-in-transit R 2.46 crore
(previous year: R 1.86 crore)]
Components [includes goods-in-transit R 17.19 crore
(previous year: R 16.30 crore)]
Construction materials [includes goods-in-transit R 56.16 crore
(previous year: R 55.70 crore)]
Manufacturing work-in-progress
Finished goods
Stock-in- trade [includes goods-in-transit R 26.31 crore
(previous year: R 18.77 crore)]
Stores and spares [includes goods-in-transit R 3.61 crore
(previous year: R 3.59 crore)]
Loose tools
Property development related work-in-progress [Note 48(b)(iv)]
As at 31-3-2018
As at 31-3-2017
v crore
7.84
28.28
1240.66
1652.22
2929.00
v crore
–
66.06
640.38
1537.91
2244.35
As at 31-3-2018
As at 31-3-2017
v crore
403.53
286.15
63.10
333.96
154.24
200.15
68.70
3.81
986.40
2500.04
v crore
328.80
264.40
61.59
360.01
221.52
169.68
71.72
3.31
281.83
1762.86
273
272
Note: During the year R 12.87 crore (previous year: R 17.92 crore) was recognised as expense towards write-down of inventory
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) Joint venture companies
(iii) Other debentures & bonds
(C) Mutual funds
Details of current investments
Particulars
(A) Government and trust securities (quoted):
8.28% Government of India Bonds 2032
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
7.59% Government of India Bonds 2026
6.79% Government of India Bonds 2029
7.80% Government of India Bonds 2020
6.35% Government of India Bonds 2020
6.79% Government of India Bonds 2029
7.80% Government of India Bonds 2020
7.59% Government of India Bonds 2029
Total - (A)
(B) Debentures and bonds (quoted):
(i) Subsidiary companies:
As at 31-3-2018
As at 31-3-2017
–
769.84
1298.35
v crore
1205.99
2068.19
1070.80
4344.98
22.75
264.42
884.29
v crore
779.59
1171.46
5031.03
6982.08
Number of units
As at
31-3-2018
Face value
per unit
v
As at
31-3-2018
v crore
As at
31-3-2017
v crore
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
10,00,000
33,00,000
1,00,00,000
2,00,00,000
1,00,00,000
1,00,00,000
10.24% L&T Finance Limited -Secured redeemable non-convertible debenture,
1000
–
September 17, 2019 (quoted)
Total- (i)
(ii) Joint venture companies:
8.80% Kudgi Transmission Limited SR-F NCD April 25, 2023
8.80% Kudgi Transmission Limited SR-G NCD April 25, 2024
8.80% Kudgi Transmission Limited SR-H NCD April 25, 2025
8.80% Kudgi Transmission Limited SR-I NCD April 25, 2026
8.80% Kudgi Transmission Limited SR-J NCD April 25, 2027
9.14% Kudgi Transmission Limited SR-K NCD April 25, 2028
9.14% Kudgi Transmission Limited SR-L NCD April 25, 2029
9.14% Kudgi Transmission Limited SR-M NCD April 25, 2030
9.14% Kudgi Transmission Limited SR-N NCD April 25, 2031
9.14% Kudgi Transmission Limited SR-O NCD April 25, 2032
9.50% Kudgi Transmission Limited SR-P NCD April 25, 2033
9.50% Kudgi Transmission Limited SR-Q NCD April 25, 2034
9.50% Kudgi Transmission Limited SR-R NCD April 25, 2035
Carried forward
274
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
150
170
180
200
210
230
240
270
280
290
310
330
360
5.29
21.09
79.57
24.97
198.93
15.98
12.41
293.97
10.14
9.69
34.65
100.89
193.82
104.99
99.60
1205.99
–
–
16.93
19.25
20.45
22.75
23.94
26.81
27.63
31.08
32.55
33.95
37.24
39.60
43.25
375.43
5.36
21.65
81.86
25.84
204.55
16.47
12.71
298.13
10.65
–
–
–
–
–
102.36
779.59
22.75
22.75
–
–
–
–
–
–
–
–
–
–
–
–
–
–
275
Notes forming part of the Financial Statements (contd.)
NOTE [10]
Details of current investments (contd.)
Particulars
(ii) Joint Venture companies: (contd.)
Brought forward
9.50% Kudgi Transmission Limited SR-S NCD April 25, 2036
9.50% Kudgi Transmission Limited SR-V NCD April 25, 2039
9.50% Kudgi Transmission Limited SR-W NCD April 25, 2040
8.60% LTIDPL NCD December 26, 2026
Total- (ii)
(iii) Other debentures and bonds:
10.75% The Tata Power Co. Ltd. NCD August 21, 2072
8.20% PFC Ltd. Tax Free Bonds February 01, 2022
8.46% PFC Ltd. Tax Free Bonds August 30, 2028
1.44% Inflation Indexed Bonds Junuary 05, 2023
8.41% NTPC Ltd. Tax Free Bonds SR-1A December 16, 2023
8.46% REC Ltd. Tax Free Bonds SR-3B August 29, 2028
9.48% BOB Basel III Perpetual Bonds Series V January 09, 2020
8.65% BOB Basel III Perpetual Bonds Series IX August 11, 2022
9.08% Union Bank Sr-XXIV Perpetual Bond May 03, 2022
9.00% YES Bank Ltd. Pertetual October 18, 2022
ECL Finance Ltd. NCD SR-A8L601A January 25, 2018
ECL Finance Ltd. NCD SR-A8L601B January 25, 2018
ECL Finance Ltd. NCD SR-A8L601C January 25, 2018
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
9.50% YES Bank Ltd. AT1 Pertetual December 23, 2021
Ecap Equities Limited SR- B9A801A March 04, 2019
Ecap Equities Limited SR- B9A801B March 05, 2019
Ecap Equities Limited SR- B9A801C March 06, 2019
Ecap Equities Limited SR- B9A801D March 07, 2019
Ecap Equities Limited SR-B9B801A March 06, 2019
Ecap Equities Limited SR-B9B801B March 07, 2019
Ecap Equities Limited SR-B9B801C March 08, 2019
Ecap Equities Limited SR-B9B801D March 11, 2019
Ecap Equities Limited SR-B9B802A March 11, 2019
Ecap Equities Limited SR-B9B802B March 12, 2019
Ecap Equities Limited SR-B9B802C March 13, 2019
Ecap Equities Limited SR-B9B802D March 14, 2019
Ecap Equities Limited SR-B9B803A March 11, 2019
Ecap Equities Limited SR-B9B803B March 12, 2019
Ecap Equities Limited SR-B9B804A March 12, 2019
Ecap Equities Limited SR-B9B804B March 13, 2019
9.00% Indiabulls Housing Finance Limited LOA July 28, 2018
6.86% IIFCL Tax Free Bonds March 26, 2023
7.18% IRFC Ltd. Tax Free Bonds February 19, 2023
Total- (iii)
Total - (B) = (i) + (ii) + (iii)
Number of units
As at
31-3-2018
Face value
per unit
v
As at
31-3-2018
v crore
As at
31-3-2017
v crore
1000000
1000000
1000000
1000000
1000000
1000
1000000
100
1000
1000000
1000000
1000000
1000000
1000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
1000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
1000000
1000
1000
390
960
1,040
2,500
1,037
6,04,355
27
50,00,000
79,162
70
200
100
500
1,000
–
–
–
–
–
–
–
–
250
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
–
2,50,000
30,00,000
375.43
46.92
41.78
45.35
260.36
769.84
136.81
72.17
3.74
50.71
9.87
9.70
20.71
10.40
54.23
103.68
–
–
–
–
–
–
–
–
26.03
26.68
26.68
26.68
26.68
26.59
26.59
26.59
26.59
26.80
26.80
26.80
26.80
26.40
26.40
25.70
25.70
–
27.76
348.06
1298.35
2068.19
–
–
–
–
264.42
264.42
132.36
74.83
3.83
51.62
10.23
9.92
–
–
–
27.61
27.61
24.29
24.40
24.40
24.40
24.40
25.24
–
10.86
28.64
359.65
884.29
1171.46
275
274
Notes forming part of the Financial Statements (contd.)
NOTE [10]
Details of current investments (contd.)
Particulars
(C) Mutual funds (unquoted):
SBI Premier Liquid Fund - Regular Plan
HDFC F R I F - STF - WP - Growth
Reliance Medium Term Fund - Direct Plan - Growth
JM Arbitrage Advantage Fund-Direct-Monthly Dividend Payout
JM Balanced Fund Direct Plan - Annual Dividend Payout Option
JM Equity Fund Monthly Dividend Payout
SBI Premier Liquid Fund - Regular Plan - Growth
Birla Sun Life Cash Plus - Regular Plan - Growth
ICICI Prudential Flexible Income - Regular Plan - Growth
DSP BlackRock Small and Midcap Fund - Reg - Growth
BNP Paribas Overnight Fund - Growth
Indiabulls Liquid Fund - Growth
Kotak Floater - ST - Growth
L&T Resurgent India Corporate Bond Fund - Dividend
DSP BlackRock India Tiger Fund - Direct - Growth
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
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
31-3-2018
Face value
per unit
v
As at
31-3-2018
v crore
As at
31-3-2017
v crore
1000
10
1000
10
10
10
1000
100
10
1000
10
10
1000
10
10
10
10
10
10
10
10
10
1000
1000
1000
–
–
–
20,01,63,935
28,78,90,129
24,74,30,947
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
203.48
571.42
295.90
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1070.80
4344.98
300.08
56.39
358.46
–
–
–
1951.09
100.03
307.59
26.55
100.03
50.01
100.03
12.00
53.31
129.25
53.12
52.72
52.98
26.52
25.15
52.54
688.04
134.60
400.54
5031.03
6982.08
As at
31-3-2018
v crore
As at
31-3-2017
v crore
3274.18
3274.18
1951.05
1951.05
1070.80
5031.03
276
277
Notes forming part of the Financial Statements (contd.)
NOTE [11]
Financials Assets - current: Trade receivables
Particulars
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 draft on hand
Cash on hand
Fixed deposits with banks (maturity less than 3 months)
NOTE [13]
Financials Assets - current: Other bank balances
Particulars
Fixed deposits with banks
Earmarked balances with banks-unclamied dividend
Earmarked balances with banks-Section 4(2)(1)(D) of RERA
Margin money deposits with banks
Cash and bank balances not available for immediate use [Note 7(a)]
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
24454.24
2224.97
26679.21
2224.97
19921.95
1916.66
21838.61
1916.66
24454.24
24454.24
19921.95
19921.95
As at 31-3-2018
As at 31-3-2017
v crore
1798.20
435.01
2.37
948.17
3183.75
v crore
1556.79
365.13
1.78
12.11
1935.81
As at 31-3-2018
As at 31-3-2017
v crore
869.24
63.69
7.38
0.03
193.78
1134.12
v crore
1383.51
46.61
–
0.02
169.77
1599.91
277
276
Notes forming part of the Financial Statements (contd.)
NOTE [14]
Financials 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:
(i) Subsidiary companies
Inter-corporate deposits [Note 37 & 38(A)]
(ii) Joint venture companies
Inter-corporate deposits [Note 37 & 38(A)]
Other secured loans, considered good:
Loans against mortgage of house property
Other unsecured loans, considered good:
Others
As at 31-3-2018
As at 31-3-2017
v crore
5.89
5.89
v crore
295.82
v crore
v crore
291.68
3.69
3.69
–
–
678.04
1595.67
18.20
0.27
0.01
992.34
18.20
0.24
0.01
1905.80
Particulars
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
NOTE [15]
Other current financial assets
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
755.52
2658.65
4.34
23.27
700.51
0.80
54.21
27.11
130.15
157.26
157.26
775.51
1454.00
6.82
81.59
706.04
3.96
65.51
26.97
127.39
154.36
154.36
–
3441.78
–
2317.92
278
279
Notes forming part of the Financial Statements (contd.)
NOTE [16]
Other current assets
Particulars
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
Due from customers (construction and project related activity)
Due from customers (property development activity) [Note 48(b)(v)]
Retention money including unbilled revenue
Balances with excise customs port trust
Advance recoverable other than in cash
Government grants receivable
Others
Doubtful other loans and advances
Less: Provision for doubtful advances
NOTE [17]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:
Particulars
Authorised:
Equity shares of R 2 each
Issued, subscribed and fully paid up:
Equity shares of R 2 each
(b) Reconciliation of the number of equity shares and share capital:
Particulars
Issued, subscribed and fully paid up equity share outstanding at the beginning of
the year
Add: Shares issued on exercise of employee stock options during the year
Add: Shares issued as bonus on July 15, 2017
Issued, subscribed and fully paid up equity shares outstanding at the end of the
25587.80
–
9400.58
53.61
3992.68
93.56
2.59
–
39130.82
4.16
4.16
21340.55
71.28
8027.61
86.52
3712.12
45.57
1.49
–
33285.14
4.16
4.16
As at 31-3-2018
As at 31-3-2017
Number of
shares
v crore
Number of
shares
v crore
1,62,50,00,000
325.00
1,62,50,00,000
325.00
1,40,13,69,456
280.27
93,29,65,803
186.59
2017-18
2016-17
Number of
shares
v crore
Number of
shares
v crore
93,29,65,803
186.59
93,14,78,845
186.30
16,38,898
46,67,64,755
0.33
93.35
14,86,958
–
0.29
–
year
1,40,13,69,456
280.27
93,29,65,803
186.59
(c) Terms/rights attached to equity shares:
The Company has only one class of share capital, i.e., equity shares having face value of R 2 per share. Each holder of equity share
is entitled to one vote per share.
278
279
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 31-3-2018
As at 31-3-2017
Number of
shares
Shareholding
%
Number of
shares
Shareholding
%
Life Insurance Corporation of India
L&T Employees Welfare Foundation
24,63,52,777
17,21,28,421
17.58
14,64,24,938
12.28
11,47,52,281
Administrator of the Specified Undertaking of the Unit Trust of India
–
–
6,11,02,860
15.69
12.30
6.55
(e) Shares reserved for issue under options outstanding as at the end of the year on un-issued share capital:
Particulars
As at 31-3-2018
As at 31-3-2017
Number of
equity shares
to be issued
as fully paid
R crore (at
face value)
Number of
equity shares
to be issued as
fully paid
R crore (at
face value)
Employee stock options granted and outstanding #
42,65,623@
0.85*
42,47,360
0.85*
0.675% 5 years & 1 day US$ denominated foreign currency convertible
bonds (FCCB) ##
95,20,455@
1.90**
63,46,986
1.27**
*
The equity shares will be issued at a premium of R 94.42 crore (previous year: R 146.71 crore)
**
The equity shares will be issued at a premium of R 1214.50 crore (previous year: R 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
@
The number of options have been adjusted consequent to bonus issue wherever applicable
(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, 2018 are 77,50,59,331 (previous period of five years ended March 31, 2017: 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, 2018 – Nil (previous period of five years ended March 31, 2017: 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.
280
281
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 summarized below:
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
Series reference
Grant price - (R)
Grant dates
Vesting commences on
Options granted and outstanding at
the beginning of the year
Options lapsed prior to bonus
Options granted prior to bonus
Options exercised prior to bonus
Options outstanding as on July 14,
2017 **
Adjusted options as on July 14,
2017** consequent to bonus issue
Options lapsed post bonus issue
Options granted post bonus issue
Options exercised post bonus issue
Options granted and outstanding at
the end of the year
Of which
Options vested
Options yet to vest
14 Weighted average remaining
2000
2002 (A)
2003 ( A)
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
400.70
400.70 267.10*
11.70 267.10*
2002 (B)
2006(A)
2003(B)
7.80*
2.30
2.30
2.30
2006
2.00*
1-6-2000
1-6-2001
2.00*
19-4-2002
19-4-2003
2.00*
19-4-2002
19-4-2003
7.80*
11.70
23-5-2003 onwards
23-5-2004 onwards
23-5-2003 onwards
23-5-2004 onwards
1-9-2006 onwards
1-9-2007 onwards
1-7-2007 onwards
1-7-2008 onwards
13,200
–
–
–
13,200
19,800
–
–
–
25,200
–
–
12,000
–
–
–
–
–
32,250
–
–
–
32,250
48,375
–
–
–
32,250
–
–
–
–
–
–
–
–
59,550
–
–
–
59,550
89,325
–
–
–
59,550
–
–
–
47,178
–
–
–
47,178 4,27,131 5,26,919 1,76,584 2,57,366 34,91,467 48,44,579
35,747 1,08,685 4,54,865
6,200 3,84,450
45,035 4,94,210 12,82,697
41,662
–
89,100
17,700
29,789 1,47,226
–
–
39,708
–
–
–
–
–
–
–
–
–
47,178
– 4,15,042
– 1,36,876
– 28,94,772
70,767
–
–
–
– 6,22,567
49,313
–
–
71,600
– 1,56,962
– 2,05,321
– 2,02,516
–
–
2,805
–
– 43,42,684
– 4,51,376
– 5,73,580
– 9,15,424
–
–
–
–
–
19,800
13,200
48,375
32,250
89,325
59,550
70,767
47,178 4,87,892 4,27,131
– 1,76,584 35,49,464 34,91,467
19,800
–
13,200
–
48,375
–
32,250
–
89,325
–
59,550
–
70,767
–
47178 1,30,806
75,692
– 3,57,086 3,51,439
– 1,76,584 15,63,209 17,46,787
– 19,86,255 17,44,680
–
contractual life of options (in years)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
4.72
4.98
Nil
Nil
3.74
3.48
*Current year grant restated pursuant to the issue of bonus shares
** Record date: July 14, 2017
iii. The number and weighted average exercise price of stock options are as follows:
2017-18
2016-17
Particulars
No. of stock
options
(A) Options granted and outstanding at the beginning of the year
42,47,360
(B) Options granted pre bonus issue
(C) Options allotted pre bonus issue
(D) Options lapsed pre bonus issue
(E) Options granted and outstanding prior to bonus issue
(F) Adjusted options consequent to bonus issue
(G) Options granted post bonus issue
(H) Options allotted post bonus issue
(I) Options lapsed post bonus issue
(J) Options granted and outstanding at the end of the year
(K) Options exercisable at the end of the year out of (J) supra
23,900
5,63,707
1,08,685
35,98,868
53,98,839
6,45,180
10,75,191
7,03,205
42,65,623
19,22,282
Weighted
average
exercise
price (R)
347.41
112.61
380.14
400.70
339.12
226.07
238.32
229.25
248.92
223.35
218.19
No. of stock
options
57,93,042
4,73,550
14,86,958
5,32,274
–
–
–
–
–
Weighted
average
exercise
price (R)
354.10
327.51
358.97
370.25
–
–
–
–
–
42,47,360
21,51,241
347.41
359.04
281
280
Notes forming part of the Financial Statements (contd.)
NOTE [17]
Equity share capital (contd.)
iv. Weighted average share price at the date of exercise for stock options exercised during the year is R 1106.67 (previous year:
R 1386.19) 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 2017-18 is R 68.98 crore
(previous year: R 60.35 crore) net of recoveries of R 0.79 crore (previous year: R 1.42 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 R 7.16 crore (previous year: R 13.81 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 R 965.25 (previous year: R 1056.73) per option
viii. The fair value has been calculated using the Black-Scholes Option Pricing Model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
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
2017-18
2016-17
6.83%
4.17 years
27.92%
R 58.37 per option
R 1178.47 per option
R 229.73 per share
6.72%
4.08 years
30.79%
R 74.52 per option
R 1355.66 per option
R 327.51 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, 2018 is R 108.59 crore (previous year: R 177.25 crore), including
R 76.12 crore (previous year: R 117.36 crore) for which the options have been vested to employees as at March 31, 2018.
(i) 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 0.21:1 as at March 31, 2018
(as at March 31, 2017 0.23:1).
(j) During the year ended March 31, 2018, the Company paid the final dividend of R 14 per equity share for the year ended
March 31, 2017 amounting to R 1960.76 crore and dividend distribution tax of R 317.93 crore.
(k) On May 28, 2018, the Board of Directors has recommended the final dividend of R 16 per equity share for the year ended
March 31, 2018 subject to approval from shareholders. On approval, the total dividend payment based on number of shares
outstanding as at March 31, 2018 is expected to be R 2242.19 crore and the payment of dividend distribution tax is expected
to be R 357.60 crore.
282
283
Notes forming part of the Financial Statements (contd.)
NOTE [18]
Other equity
Particulars
Share application money pending allotment
Equity component of foreign currency convertible bonds##
Capital reserve *
Capital reserve on business combination **
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 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
3.56
153.20
10.52
(6.36)
8363.02
211.51
(102.92)
275.26
(98.01)
108.59
458.94
25395.78
14250.01
(0.37)
102.16
54.93
48893.98
114.50
(12.34)
156.91
(12.80)
v crore
–
153.20
10.52
–
8318.85
177.25
356.76
25373.60
11225.53
0.55
144.11
65.78
45826.15
*
Capital reserve: It represents the gains of capital nature which mainly include the excess of value of net assets acquired over
consideration paid by the Company for business amalgamation transactions in earlier years.
** Capital reserve on business combination: It arises on transfer of business between entities under common control. It represents
the difference, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other
assets and the amount of share capital of the transferor [refer to note 1(ab)].
^ 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 shall not be utilised by the Company except to redeem the debentures.
# General reserve: The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act,
1956 wherein certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per
Companies Act 2013, the requirements to transfer profits to General Reserve is not mandatory. General reserve is a free reserve
available to the Company.
## Equity component of foreign currency convertible bonds: Pursuant to Ind AS 32, Foreign Currency Convertible Bonds (FCCB)
issued by the Company are split into equity and liability component and presented under other equity and financial liabilities
respectively.
282
283
Notes forming part of the Financial Statements (contd.)
NOTE [19]
Financial Liabilities: Borrowings - non-current
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
v crore
v crore
v crore
v crore
v crore
v crore
As at 31-3-2018
As at 31-3-2017
Redeemable non-convertible fixed rate debentures [Note
19(a)(i) & (ii)]
–
2179.85
2179.85
408.55
2179.48
2588.03
Redeemable non-convertible inflation linked debentures
[Note 19(a)(iii)]
116.96
116.96
113.61
113.61
0.675% Foreign currency convertible bonds [Note 19(b)]
1245.64
1245.64
1201.78
1201.78
Term loan from banks [Note 19(c)]
1952.51
1952.51
3230.58
3230.58
Sales tax deferment loan [Note 19(d)]
Finance lease
–
–
0.20
0.20
0.08
0.20
0.08
0.20
–
5495.16
5495.16
408.55
6725.73
7134.28
19(a) (i)
Secured redeemable non-convertible fixed rate debentures (privately placed):
Face value per
debenture (R)
Date of
allotment
As at
31.3.2018
R crore
As at
31.3.2017
R crore
Interest for the
year 2017-2018
Terms of repayment for debentures
outstanding as at 31.3.2018
1000000
January 5,
2009
408.58
408.55
9.15% p.a.
payable annually
Redeemable at face value at the end of
10th year from the date of allotment.
Total
Less:
408.58
408.55
408.58
– Current maturity of long term borrowings [Note 24]
–
408.55 Borrowings non-current [Note 19]
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 (R)
Date of
allotment
1000000
April 10,
2012
As at
31.3.2018
R crore
As at
31.3.2017
R crore
273.51
273.39
1000000
May 26, 2011
322.61
322.52
1000000
May 11, 2010
324.22
324.14
1.
2.
3.
284
Interest for the
year 2017-18
Terms of repayment for debentures
outstanding as at 31.3.2018
9.75% p.a.
payable annually
Redeemable at face value at the
end of 10th year from the date of
allotment.
8.95% p.a.
payable annually
Redeemable at face value at the
end of 10th year from the date of
allotment.
9.15% p.a.
payable annually
Redeemable at face value at the
end of 10th year from the date of
allotment.
285
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 (R)
Date of
allotment
1000000
April 13,
2010
As at
31.3.2018
R crore
As at
31.3.2017
R crore
216.89
216.83
1000000
September
24, 2015
1042.62
1042.60
4.
5.
Interest for the
year 2017-18
Terms of repayment for debentures
outstanding as at 31.3.2018
8.80% p.a.
payable annually
Redeemable at face value at the
end of 10th year from the date of
allotment.
8.40% p.a.
payable annually
Redeemable at face value at the
end of 5th year from the date of
allotment.
Total
2179.85
2179.48
Borrowings – non current [Note 19]
19(a) (iii) Unsecured redeemable non-convertible inflation linked debentures:
Face value per
debenture (R)
Date of
allotment
As at
31-3-2018
R crore
As at
31.3.2017
R crore
Interest for the year
2017-18
Terms of repayment for debentures
outstanding as on 31.3.2018
1000000
May 23, 2013
116.96
113.61@ 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)} * 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 R 1245.64 crore as at
March 31, 2018 (as at March 2017: R 1201.78 crore) represent 1,000 bonds of US$200000 each. The bonds are convertible into
the Company’s fully paid equity shares of R 2 each at a conversion price of R 1277.67 per share (Pre bonus conversion price was
R 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.
284
285
Notes forming part of the Financial Statements (contd.)
NOTE [19] (contd.)
19(c) Details of term loans (unsecured): Foreign currency loans:
Sr.
No.
As at
31-3-2018
R crore
As at
31-3-2017
R crore
Rate of Interest
Terms of repayment of term loan outstanding as at 31-03-2018
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Total
Less:
–
–
1288.32
USD LIBOR + Spread
Repaid on August 23, 2017
642.97
USD LIBOR + Spread
Repaid on August 23, 2017
326.21
323.96
USD LIBOR + Spread
Repayment due on July 2, 2018
–
–
–
–
–
–
–
129.51
USD LIBOR + Spread
Repaid on September 27, 2017
162.14
USD LIBOR + Spread
Repaid on July 14, 2017
157.56
USD LIBOR + Spread
Repaid on September 14, 2017
203.87
USD LIBOR + Spread
Repaid on September 14, 2017
452.61
USD LIBOR + Spread
Repaid on September 14, 2017
549.57
USD LIBOR + Spread
Repaid on September 14, 2017
193.22
USD LIBOR + Spread
Repaid on August 30, 2017
38.04
75.61
USD LIBOR + Spread
Repayable in 6 equal installments payable annually from September 18, 2013 to
September 18, 2017 with the final installment due on June 18, 2018
163.36
162.13
USD LIBOR + Spread
Repayable on October 19, 2018
1301.68
650.83
–
–
2480.12
4341.47
USD LIBOR + Spread
Repayable on October 21, 2019
USD LIBOR + Spread
Repayable on November 4, 2019
527.61
1110.89 Current maturity of long term borrowings [Note 24]
1952.51
3230.58 Borrowings non-current [Note 19]
Loans guaranteed by directors - R Nil (previous year: R Nil)
19(d) Sales tax deferment loan (unsecured):
Sr.
No.
As at 31-3-2018
R crore
As at 31-3-2017
R crore
Rate of
Interest
Terms of repayment as at March 31, 2018
1
2
Total
Less:
0.08
–
0.08
0.08
–
0.16
0.12
0.28
0.20
0.08
Interest Free
Repayable in 1 annual installments of R 0.08 crore ending
April 26, 2018
Current maturity of long term borrowings [Note 24]
Borrowings non-current [Note 19]
286
287
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)]
NOTE [22]
Other non-current liabilities
Particulars
Other payables (Deferred income on day one fair valuation of financial instrument)
NOTE [23]
Financial Liabilities: Borrowings - current
As at 31-3-2018
As at 31-3-2017
v crore
17.82
75.79
9.27
5.76
108.64
v crore
26.94
22.46
11.83
27.34
88.57
As at 31-3-2018
As at 31-3-2017
v crore
301.13
171.74
472.87
v crore
290.29
180.39
470.68
As at 31-3-2018
As at 31-3-2017
v crore
1.27
v crore
3.86
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
As at 31-3-2018
As at 31-3-2017
Loans repayable on demand from banks [Note 23(b)]
Short term loan and advances from banks [Note 23(b)]
Commercial paper
Loans from related parties:
v crore
v crore
v crore
20.06
96.53
–
–
3586.68
–
20.06
3683.21
–
v crore
223.52
216.06
–
v crore
v crore
–
1424.69
442.71
223.52
1640.75
442.71
Subsidiary companies
–
426.30
426.30
–
5.52
5.52
116.59
4012.98
4129.57
439.58
1872.92
2312.50
23(a) Loans guaranteed by directors R Nil (previous year: R 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: R 6026.53 crore as at
March 31, 2018 (March 31, 2017: R 6149.71 crore)
286
287
Notes forming part of the Financial Statements (contd.)
NOTE [24]
Financial liabilities: Current maturities of long term borrowings
Particulars
Secured:
Redeemable non-convertible fixed rate debentures [Note 19(a)(i)]
Unsecured:
Term loans from banks [Note 19(c)]
Sales tax deferment loan [Note 19(d)]
Finance lease obligation
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 31-3-2018
As at 31-3-2017
v crore
408.58
527.61
0.08
–
936.27
v crore
–
1110.89
0.20
0.50
1111.59
As at 31-3-2018
As at 31-3-2017
v crore
v crore
478.07
v crore
v crore
399.78
767.28
2.92
1017.61
638.02
4.16
1836.27
1787.81
137.97
28693.26
31097.11
2478.45
112.34
21347.75
24338.32
26(a) Due to others include due to directors R 49.11 crore (previous year: R 55.58 crore).
NOTE [27]
Other current Liabilities
Particulars
Due to customers (construction related activity)
Due to customers (property development projects)
Advances from customers
Other payables
288
As at 31-3-2018
As at 31-3-2017
v crore
63.69
61.34
6.22
1739.62
1870.87
v crore
46.61
111.23
8.88
1273.53
1440.25
As at 31-3-2018
As at 31-3-2017
v crore
5236.21
110.24
14070.34
1437.03
20853.82
v crore
4231.98
57.88
12640.03
1256.86
18186.75
289
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]
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 companies/
joint venture companies
(f) Corporate and bank guarantees for performance given on behalf of
subsidiary companies
(g) Contingent liabilities, if any, incurred in relation to interests in joint
operations
(h) Share in contingent liabilities of joint operations for which the Company is
contingently liable
(i) Contingent liabilities in respect of liabilities of other joint operators of joint
operations
Notes:
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
91.10
515.34
22.58
7.09
71.94
518.64
22.46
5.25
636.11
466.11
1102.22
618.29
474.70
1092.99
As at 31-3-2018
As at 31-3-2017
v crore
2113.67
170.25
193.33
423.22
7424.61
20305.06
7267.96
139.20
6576.16
v crore
1815.23
162.42
86.61
460.55
8450.61
16384.12
7018.24
53.24
6230.96
1.
2.
3.
4.
5.
The Company does not expect any reimbursements in respect of the above contingent liabilities.
It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution of
the arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above includes interest except 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 borrowing 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 up to completion of projects undertaken by the
respective joint operations.
288
289
Notes forming part of the Financial Statements (contd.)
NOTE [30]
Commitments
Particulars
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
(a) Estimated amount of contracts remaining to be executed on capital account
(net of advances)
(i) Estimated amount of contracts remaining to be executed on Property,
675.07
533.49
plant & equipment
(ii) Estimated amount of contracts remaining to be executed on Investment
Property
(iii) Estimated amount of contracts remaining to be executed on Intangible
assets under development
0.01
0.05
–
–
675.13
715.45
533.49
1063.20
(b) Funding committed by way of equity/loans to subsidiary/joint venture
companies
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(b)(i)]
Engineering and service fees
Servicing
Commission
Other operational income:
Income from hire of plant and equipment
Lease rentals
Income from services to Group companies
Premium earned (net) on related forward exchange contracts
Miscellaneous Income
2017-18
2016-17
v crore
v crore
v crore
v crore
66978.07
5575.56
96.68
18.74
666.64
159.80
122.03
74.08
326.71
36.02
557.32
58498.42
5730.98
403.18
24.73
597.88
140.81
73495.49
65396.00
80.28
67.79
207.61
48.45
501.22
1116.16
74611.65
905.35
66301.35
290
291
Notes forming part of the Financial Statements (contd.)
NOTE [32]
Other income
Particulars
Interest income:
Subsidiary and associate companies
Others
Dividend income:
Subsidiary companies
Others
Net gain/(loss) on sale or fair valuation of investments
Net gain/loss on derivatives at fair value through profit or loss
Net gain/(loss) on sale of property, plant and equipment
Lease rentals
Miscellaneous income (net of expenses)
2017-18
2016-17
v crore
v crore
v crore
v crore
209.59
287.30
535.59
2693.08
325.62
213.69
496.89
539.31
405.47
659.63
3228.67
(2233.22)
(125.74)
60.18
62.75
395.29
1884.82
1065.10
(72.44)
(56.89)
23.70
70.78
345.40
1914.96
290
291
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
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 on stock
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
2017-18
2016-17
v crore
v crore
v crore
v crore
8167.57
75.03
7444.84
74.27
8092.54
149.10
22237.57
1296.62
1815.21
19620.99
7370.57
577.49
18493.31
1390.84
1446.67
16775.01
154.24
200.15
4052.01
4406.40
221.52
169.68
3052.84
3444.04
(48.37)
951.61
15.49
363.01
1198.37
763.52
188.96
422.83
374.89
608.14
52.42
5.05
336.96
181.91
973.80
221.52
169.68
3044.67
3435.87
161.68
159.77
3246.01
3567.46
(962.36)
131.59
16.30
1041.49
15.75
340.15
1015.13
761.70
187.07
415.25
366.42
759.81
56.31
6.10
303.18
151.15
382.18
6388.59
58638.26
5817.99
52003.47
292
293
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:
2017-18
2016-17
v crore
119.90
13.16
72.50
v crore
114.67
13.34
67.30
v crore
5070.64
205.56
69.77
83.35
603.36
(319.09)
5713.59
2017-18
2016-17
v crore
v crore
87.48
45.05
v crore
58.22
96.75
265.31
4.88
34.48
244.28
54.56
304.71
18.51
228.33
0.77
101.63
67.92
38.18
22.47
5.68
83.56
536.80
20.36
745.17
20.18
(148.60)
32.12
2836.27
v crore
4554.79
195.31
61.77
78.08
600.98
(343.55)
5147.38
v crore
59.26
91.05
241.35
5.33
31.96
229.51
51.55
280.10
9.53
229.90
0.82
104.84
61.02
38.40
27.27
4.88
57.35
521.62
42.43
395.29
(5.93)
(10.72)
204.19
2671.00
293
Distributors and agents
Others
Bank charges
Miscellaneous expenses
Bad debts and advances written off
Less: Allowance for doubtful debts and advances written back
375.33
354.97
Allowance for doubtful debts and advances (net)
Provision/(reversal) for foreseeable losses on construction contracts
Exchange (gain)/loss (net)
Other provisions [Note 54(a)]
292
Notes forming part of the Financial Statements (contd.)
NOTE [35] (contd.)
35(a) Aggregation of expenses disclosed vide Note 33 - Manufacturing, construction and operating expenses, Note 34 - Employee
benefits expense and Note 35 - Sales, administration and other expenses.
2017-18
Note 34 -
Employee
benefits
expense
Note 35 -Sales,
administration
and other
expenses
Total
–
–
83.35
–
–
–
–
–
–
58.22
96.75
34.48
244.28
54.56
304.71
18.51
228.33
536.80
1009.83
459.76
306.79
667.11
429.45
912.85
23.56
565.29
1510.60
Note 33 -
Manufacturing,
construction
and operating
expenses
1041.49
340.15
187.07
415.25
366.42
759.81
6.10
303.18
382.18
Nature of expenses
Sr.
No.
Power and fuel
Packing and forwarding
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to buildings
General repairs and maintenance
1.
2.
3.
4.
5.
6.
7.
8.
9. Miscellaneous expenses
NOTE [36]
Finance costs
Note 33 -
Manufacturing,
construction
and operating
expenses
951.61
363.01
188.96
422.83
374.89
608.14
5.05
336.96
973.80
Particulars
Interest expenses
Other borrowing costs
Exchange loss (attributable to finance costs)
v crore
Total
2016-17
Note 34 -
Employee
benefits
expense
Note 35 -Sales,
administration
and other
expenses
–
–
78.08
–
–
–
–
–
–
59.26 1100.75
431.20
91.05
297.11
31.96
644.76
229.51
51.55
417.97
280.10 1039.91
15.63
533.08
903.80
9.53
229.90
521.62
2017-18
v crore
1415.71
3.59
12.93
1432.23
2016-17
v crore
1251.66
0.56
64.69
1316.91
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
Name of the company
Balance as at
Maximum outstanding during
31-3-2018
31-3-2017
2017-18
2016-17
Loans and advances in the nature of loans given to subsidiaries:
L&T Seawoods Private Limited
L&T Realty Limited
L&T Shipbuilding Limited
L&T Special Steels & Heavy Forgings Private Limited
PNG Tollway Limited
EWAC Alloys Limited [Note 46(A)]
L&T Hydrocarbon Engineering Limited
L&T Construction Equipment Limited
Nabha Power Limited
L&T–MHPS Turbine Generators Private Limited
Total
–
76.75
225.50
1379.11
18.20
–
–
7.00
594.29
–
2300.85
–
16.56
512.00
1167.21
18.20
–
2.23
–
1576.88
–
3293.09
–
133.10
998.12
1401.86
18.20
–
0.31
42.91
1789.97
–
341.20
397.41
2651.87
1167.22
18.20
16.00
511.74
–
1827.99
300.08
Sr.
No.
A
B
C
D
E
F
G
H
I
J
294
295
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:
Sr.
No.
Nature of the transaction (loans given/investment made/guarantee
given/security provided)
Purpose for which the loan/guarantee/
security is proposed to be utilised by
the recipient
2017-18
v crore
2016-17
(A)
Loan and advances:
Subsidiary companies:
(a) L&T Realty Limited
(b) L&T Shipbuilding Limited
Project funding
Working capital
76.75
225.50
16.56
512.00
(c) L&T Special Steels & Heavy Forgings Private Limited
Working capital and project funding
1379.11
1167.22
(d) PNG Tollway Limited
(e) L&T Construction Equipment Limited
(f) L&T Hydrocarbon Engineering Limited
(g) Nabha Power Limited
Project funding
Working capital
Working capital
Project funding
Total
(B) Other Advances:
Subsidiary Companies:
(a) L&T Uttaranchal Hydropower Limited
Towards capital contribution
(b) L&T Metro Rail (Hyderabad) Private Limited
Towards capital contribution
Total
(C) Guarantees:
Subsidiary Companies:
(a) L&T Aviation Services Private Limited
(b) L&T-MHPS Boilers Private Limited
(c) L&T-MHPS Turbine Generators Private Limited
(d) L&T Shipbuilding Limited
(e) Nabha Power Limited
(f) L&T Global Holdings Limited
(g) Larsen & Toubro ATCO Saudia LLC
(h) Larsen & Toubro Arabia LLC
(i) Larsen & Toubro Infotech Limited
Corporate guarantee given for
subsidiary’s debt
Corporate guarantee for subsidiary’s
project performance
18.20
7.00
–
594.29
2300.85
19.45
–
19.45
16.88
60.60
418.95
3156.00
3707.00
65.18
2130.11
5971.38
–
18.20
–
2.23
1576.88
3293.09
–
6.35
6.35
44.64
120.61
472.36
2781.00
5032.00
–
–
5369.27
202.26
295
294
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)
(j) L&T Technology Services Limited
(k) Larsen & Toubro Heavy Engineering LLC
(l) Larsen & Toubro (Saudi Arabia) LLC
(m) Spectrum Infotech Private Limited [Note 60]
(n) L&T Hydrocarbon Engineering Limited
(o) 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
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
– Subsidiary classification is in accordance with the Companies Act, 2013.
2017-18
v crore
2016-17
918.08
917.62
1047.98
1517.67
–
8691.05
28.79
1172.46
3272.69
2.90
5418.33
28.60
27729.67
24834.73
[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 R 97.29 crore
(previous year: R 98.97 crore).
(a) The amount recognised as expense in the Statement of Profit and Loss on CSR related activities is R 100.92 crore (previous year:
R 100.77 crore), which comprises of:
Sr.
No.
i)
Particulars
Disclosed
under
2017-18
Provided
Paid
Total
2016-17
Paid Provided
Construction/acquisition of assets
recognised as expense and shown
under sales, administration and other
expenses
Note 35
4.42
1.52
5.94
6.19
3.30
9.49
v crore
Total
ii)
Other revenue expenses:
recognised as expense and shown
under sales, administration and other
expenses
Note 35
70.21
9.19
79.40
61.48
10.34
71.82
recognised as expense and shown under
employee benefits expense
Note 34
Total
15.54
90.17
0.04
10.75
15.58
100.92
19.03
86.70
0.43
14.07
19.46
100.77
NOTE [40]
The expenditure on research and development activities recognised as expense in the Statement of Profit and Loss is R 138.93 crore
(previous year: R 145.98 crore). Further, the Company has incurred capital expenditure on research and development activities as
follows:
(a) on tangible assets of R 6.22 crore (previous year: R 9.43 crore);
(b) on intangible assets being expenditure on new product development of R 48.08 crore (previous year: R 43.01 crore) [Note 1(i)(ii)]; and
(c) on other intangible assets of R 1.84 crore (previous year: R 1.09 crore).
In addition, the Company has incurred expenditure of R 2.70 cr (previous year: Nil) which are customer funded.
296
297
Notes forming part of the Financial Statements (contd.)
NOTE [41]
Disclosure 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 payment 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
31-3-2018
49.01
23.51
–
72.52
R crore
As at
31-3-2017
48.69
34.41
–
83.10
(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 rental 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
(ii) Operating leases:
Minimum lease payment
v crore
Present value of minimum
lease payments
As at
31-3-2018
0.14
As at
31-3-2017
0.56
As at
31-3-2018
0.14
As at
31-3-2017
0.50
0.02
0.14
0.30
0.10
0.20
0.16
0.15.
0.87
0.17
0.70
–
0.06
0.20
–
0.20
0.14
0.06
0.70
–
0.70
(A) The Company has taken various commercial premises and plant and equipment under cancellable operating leases.
These lease agreements are normally renewed on expiry. There are no exceptional/restrictive covenants in the lease
agreements.
(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 5years
Payable later than 5 years
Total
R crore
As at
31-3-2017
18.33
27.13
–
45.46
As at
31-3-2018
21.96
27.09
6.80
55.85
(C) Lease rental expenses in respect of operating leases: R 103.39 crore (previous year: R 109.10 crore)
296
297
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”:
Investments held for sale
Particulars
As at
31-3-2018
388.00
v crore
As at
31-3-2017
388.00
(i)
Through a scheme of arrangement of demerger, the Port business in L&T Shipbuilding Limited (effective date March 22, 2017) was
transferred to Marine Infrastructure Developer Private Limited (MIDPL) in financial year 2016-17. As a shareholder, the Company
had received 38,80,00,000 equity shares of R 10 each. The Company plans to divest its stake in MIDPL to an identified strategic
partner. In order to complete the divestment, certain approvals, such as transfer of Marine License & transfer of shares are pending
to be received from statutory bodies. Accordingly, the proposed sale is expected to be completed within 12 months from the
reporting date.
(ii) The above investment forms part of the unallocable corporate assets. [Note 47(a) Disclosure pursuant to Ind AS 108 “Operating
Segment”].
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:
Particulars
Note
Inventories
Trade receivables
Loans
Other financial assets
Other current assets
9
11
14
15
16
Within twelve
months
1680.38
23928.46
991.92
3441.78
31597.81
As at 31-3-2018
After twelve
months
819.66
525.78
0.42
–
7533.01
Within twelve
months
1625.58
19529.19
1900.76
2213.12
23983.02
As at 31-3-2017
After twelve
months
137.28
392.76
5.04
104.80
9302.12
Total
2500.04
24454.24
992.34
3441.78
39130.82
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
Particulars
Trade payables
Other financial liabilities
Other current liabilities
Provisions
Within twelve
months
30447.66
1851.22
16191.45
991.53
As at 31-3-2018
After twelve
months
649.45
19.65
4662.37
110.69
Within twelve
months
23086.63
1412.15
12052.20
964.54
As at 31-3-2017
After twelve
months
1251.69
28.10
6134.55
128.45
Total
31097.11
1870.87
20853.82
1102.22
Note
25
26
27
28
NOTE [44]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management
(a) Foreign exchange rate and interest rate risk:
v crore
Total
1762.86
19921.95
1905.80
2317.92
33285.14
v crore
Total
24338.32
1440.25
18186.75
1092.99
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.
298
299
Notes forming part of the Financial Statements (contd.)
NOTE [44] (contd.)
(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 may negatively affect the Company’s net sales and gross margins as expressed in Indian
Rupees. There is a risk that the Company will 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
future cash flows and net investments in foreign subsidiaries. In addition, the Company has entered and may enter in future,
into non-designated foreign currency contracts to partially offset the foreign currency exchange gains and losses on its
foreign-denominated debt issuances. The Company’s practice is to hedge a portion of its material 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
As at 31-3-2018
As at 31-3-2017
US Dollars
including
pegged
currencies
EURO
Japanese
Yen
US Dollars
including
pegged
currencies
EURO
Japanese
Yen
v crore
Net exposure to foreign currency risk in respect of recognised
financial assets/ (recognised financial liabilities)
(2187.64)
(372.73)
(95.77)
(1730.19)
(402.15)
(366.13)
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
1848.44
(1388.82)
659.25
3664.22
(1085.56)
604.27
(1219.10)
(6.92)
–
752.13
(5.42)
–
To provide a meaningful assessment of the foreign currency risk associated with the Company’s foreign currency derivative
positions against off Balance Sheet exposures and unhedged portion of on-Balance Sheet financial assets and liabilities,
the Company uses a multi-currency correlated value-at-risk (“VAR”) model. The VAR model uses a Monte Carlo simulation
to generate thousands of random market price paths for foreign currencies against Indian rupee taking into account the
correlations between them. The VAR is the expected loss in value of the exposures due to overnight movement in spot
exchange rates, at 95% confidence interval. The VAR model is not intended to represent actual losses but is used as a risk
estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Company uses
foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset by
increases in the fair value of the underlying exposures for on-Balance Sheet exposures. The overnight VAR for the Company at
95% confidence level is R 39.80 crore as at March 31, 2018 and R 59.80 crore as at March 31, 2017.
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, 2018 due to the inherent limitations associated with
predicting the timing and amount of changes in foreign currency exchanges rates and the Company’s actual exposures and
position.
(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 derivatives 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:
Floating rate borrowings
Particulars
As at 31-3-2018
v crore
As at 31-3-2017
5157.15
4472.18
299
298
Notes forming part of the Financial Statements (contd.)
NOTE [44] (contd.)
A hypothetical 50 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.
Particulars
Indian Rupee
Interest rates - increase by 0.5% in INR interest rate *
Interest rates - decrease by 0.5% in INR interest rate *
US Dollar
Interest rates - increase by 0.5% in USD interest rate *
Interest rates - decrease by 0.5% in USD interest rate *
* Holding all other variables constant
(b) Liquidity Risk Management:
Impact on Profit and Loss
after tax
2017-18
2016-17
v crore
Impact on equity
As at
31-3-2018
As at
31-3-2017
(0.45)
0.45
(16.39)
16.39
(1.11)
1.11
(13.51)
13.51
(0.45)
0.45
(16.39)
16.39
(1.11)
1.11
(13.51)
13.51
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 0.5% move in debt funds and debt securities and
a 5% movement in the NAV of the equity funds. Based on the investment position a hypothetical 0.5% change in the fair market
value of debt securities would result in a value change of +/- R 14.04 crore as at March 31, 2018 and +/- R 15.98 crore as at March
31, 2017. 5% change in the equity funds NAV would result in a value change of +/- R 16.24 crore as at March 31, 2018 and
+/- R 17.83 crore as at March 31, 2017. 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.
(i)
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
2017-18
1916.66
v crore
2016-17
1568.79
Loss allowance based on ECL
Additional provision
Write off as bad debts
151.94
235.91
(39.98)
1916.66
(ii) Trade receivable written off during the year but still enforceable for recovery amounts to R 409.43 crore (previous year: R Nil).
Out of this R 243.62 crore included above and balance R 165.81 crore included in exceptional items. Further, exceptional
items also include write off of retention money not due (non-financial asset) amounts to R 128.94 crore. (Note 46).
171.07
494.34
(357.10)
2224.97
Closing balance [reported under Note 11]
300
301
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:
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
(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)
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 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.
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)
R crore
As at
31-3-2018
As at
31-3-2017
136.64
1085.08
1070.80
424.46
3.77
21.33
2742.08
2676.47
24454.24
2387.92
4637.39
767.87
34923.89
2849.72
358.49
1.96
3210.17
40876.14
56.04
605.10
5031.03
202.33
6.08
78.97
5979.55
3683.34
19921.95
1061.76
3759.28
785.34
29211.67
1748.72
659.92
2.62
2411.26
37602.48
R crore
As at
31-3-2018
As at
31-3-2017
13.52
15.79
29.31
8.53
83.26
91.79
10561.00
31097.11
1681.18
43339.29
10558.37
24338.32
1086.28
35982.97
132.19
121.34
253.53
15.49
43637.62
279.61
50.43
330.04
20.71
36425.51
301
300
Notes forming part of the Financial Statements (contd.)
NOTE [45]
Other 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
A
B
C
II
A
B
Particulars
Net gains/(losses) on financial assets and financial liabilities measured at fair value through Profit or
Loss and amortised cost:
(i)
Financial assets or financial liabilities mandatorily measured at fair value through Profit or Loss:
1. Gains/(losses) on fair valuation or sale of Investments
2. Gains/(losses) on fair valuation/settlement of derivatives:
a. On forward contracts not designated as cash flow hedges
b. On embedded derivatives contracts not designated as cash flow hedges
c.
Sub-total (A)
Financial assets measured at amortised cost:
(i)
On futures not designated as cash flow hedges
Exchange gains/(losses) on revaluation or settlement of items denominated in foreign currency
(trade receivables, loans given etc.)
Allowance/(reversal) for expected credit loss recognised during the year in the Statement of
Profit or Loss
(ii)
(iii) Provision for doubtful debts (other than expected credit loss) [net]
(iv) Gains/(losses) on derecognition:
Bad debts written off (net)
1.
2. Gains/(losses) on transfer of financial assets (non-recourse)
Sub-total (B)
Financial liabilities measured at amortised cost:
(i)
Exchange gains/(losses) on revaluation 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:
Gains/(losses) recognised in Other Comprehensive Income:
(i)
Financial assets measured at fair value through Other Comprehensive Income:
1. Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc.
(ii) Derivative measured at fair value through Other Comprehensive Income:
1.
2.
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 (A)
Less:
Gains/(losses) reclassified to Profit or Loss from Other Comprehensive Income:
(i)
Financial assets measured at fair value through Other Comprehensive Income:
1.
On government securities, bonds, debentures etc. upon sale of government securities,
bonds, debentures etc. upon sale
(ii) Derivative measured at fair value through Other Comprehensive Income:
1.
2.
On forward contracts upon hedged future cash flows affecting the Profit or Loss or
related assets or liability
On embedded derivative contracts upon hedged future cash flows affecting the Profit or
Loss or related asset and liability
Sub-total (B)
Net gains/(losses) recognised in Other Comprehensive Income [II]= (A)-(B)
2017-18
R crore
2016-17
(2181.30)
(178.13)
0.15
17.05
(125.74)
(2289.84)
(33.57)
9.93
(56.89)
(258.66)
123.70
(173.03)
(171.07)
(525.60)
(186.17)
(35.73)
(794.87)
(162.60)
117.68
(44.92)
(3129.63)
(151.94)
(237.28)
(42.43)
(50.81)
(655.49)
277.28
130.71
407.99
(506.16)
(51.22)
101.29
92.29
(129.43)
(79.30)
(38.23)
(24.02)
(52.16)
(51.49)
110.46
188.29
(140.88)
(21.95)
114.85
(153.08)
(4.08)
(34.50)
(17.66)
302
303
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.
III
A
B
C
Particulars
Other income/(expenses):
Dividend income:
Dividend income from investments measured at FVTPL
Sub- total (A)
Interest income:
(a)
(b)
(c)
Sub- total (B)
Interest expense:
(a)
(b)
Financial assets measured at amortised cost
Financial assets measured at fair value through Other Comprehensive Income
Financial assets measured at fair value through Profit or Loss
Financial liabilities that are measured at amortised cost
Derivative instruments (including embedded derivatives) that are measured at fair value
through Other Comprehensive Income (reclassified to Profit or Loss during the period)
Financial liabilities that are measured at fair value through Profit or Loss
(c)
Sub-total (C)
Total [III] = (A+B+C)
2017-18
R crore
2016-17
2693.08
2693.08
269.00
226.95
0.98
496.93
659.63
659.63
380.29
157.84
1.08
539.21
(860.74)
(734.01)
(266.60)
(15.48)
(1142.82)
2047.19
(401.21)
8.04
(1127.18)
71.66
(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, loans, advances and cash and other bank balances are considered to be the same
as their fair values due to their short term nature. The carrying amounts of long term loans given with floating rate of interest
are considered to be close to the fair value.
(ii)
Financial liabilities measured at amortised cost:
Particulars
0.675 % Foreign currency convertible bonds
Redeemable non-convertible fixed rate debentures
Total
As at 31-3-2018
As at 31-3-2017
Carrying
amount
1245.64
2588.43
3834.07
Fair Value
Carrying
amount
Fair Value
1241.13
2647.14
3888.27
1201.78
1222.20
2588.03
2677.39
3789.81
3899.59
v crore
Fair value
hierarchy
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 31-3-2018
Level 2
Level 3
Level 1
Total
Level 1
As at 31-3-2017
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
72.27
–
64.37
136.64
–
–
56.04
56.04
5
10
10
7,15
7,15
–
1070.80
424.46
–
1085.08
–
–
3.77
–
21.33
–
–
–
–
–
1085.08
1070.80
424.46
3.77
–
5031.03
202.33
–
605.10
–
–
6.08
605.10
–
– 5031.03
202.33
–
6.08
–
21.33
–
78.97
–
78.97
302
303
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 31-3-2018
Level 2
Level 3
Level 1
Total
Level 1
As at 31-3-2017
Level 2
Level 3
v crore
Total
Investments at FVTOCI
(i)
Debt instruments viz. government securities, bonds and
debentures
10
2849.72
–
(ii) Derivative financial instruments designated as cash
7,15
flow hedges
(iii) Embedded derivative financial instruments designated
7,15
–
–
358.49
1.96
–
–
–
2849.72
1748.72
–
– 1748.72
358.49
1.96
–
–
659.92
2.62
–
–
659.92
2.62
as cash flow hedges
Total
Financial Liabilities:
(i) At FVTPL-Designated at FVTPL:
(a) Derivative instruments not designated as cash flow
hedges
20,26
(b) Embedded derivative instruments not designated as
20,26
cash flow hedges
(ii) Designated at FVTOCI:
(a) Derivative financial instruments designated as cash
20,26
flow hedges
(b) Embedded Derivative financial instruments designated
20,26
as cash flow hedges
Total
4417.25
1470.63
64.37
5952.25
6982.08 1352.69
56.04 8390.81
–
–
–
–
–
13.52
15.79
132.19
121.34
282.84
–
–
–
–
–
13.52
15.79
132.19
121.34
282.84
–
–
–
–
8.53
83.26
279.61
50.43
–
–
–
–
8.53
83.26
279.61
50.43
–
421.83
–
421.83
Valuation technique and key inputs used to determine fair value:
1.
2.
Level 1: Mutual funds, bonds, debentures and government securities- Quoted price in the active market.
Level 2: (a)
Derivative instrument – Mark to market on forward covers and embedded derivative instruments is based on
forward exchange rates at the end of reporting period and discounted using G-sec rate plus applicable spread.
(b) Preference shares – Future cash flows are discounted using G-sec rate plus applicable spread as at reporting date.
(f) Movement of items measured using unobservable inputs (Level 3):
Particulars
Balance as at 1-4-2016
Gains/(losses) recognised in Profit or Loss during 2016-17
Balance as at 31-3-2017
Gains/(losses) recognised in Profit or Loss during 2017-18
Balance as at 31-3-2018
R crore
Equity investment in Tidel Park Limited
55.94
–
55.94
8.32
64.27
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
31-3-2018
64.27
Fair Value
as at
31-3-2017
Significant
unobservable inputs
55.94 1. Lease realisation:
net realisation per
month R 30 per
sq/ft.
2. Capitalisation rate
12%
v crore
Sensitivity
31-3-2018: 1% change in net realisation would result in +/- R 0.31
crore (post tax +/- R 0.20 crore).
25 bps change in capitalisation rate would result in +/- R 0.64 crore
(post tax +/- R 0.42 crore).
31-3-2017: 1% change in net realisation would result in +/- R 0.38
crore (post tax +/- R 0.25 crore).
25 bps change in capitalisation rate would result in +/- R 0.78 crore
(post tax +/- R 0.51 crore).
304
305
Notes forming part of the Financial Statements (contd.)
NOTE [45] (contd.)
(g) Maturity profile of financial liabilities:
Particulars
Note
As at 31-3-2018
Within
twelve
months
After
twelve
months
Total
As at 31-3-2017
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
5370.82
30447.66
1661.98
37480.46
5874.29
649.45
34.68
6558.42
11245.11
31097.11
1696.66
44038.88
3708.84
23086.63
1045.94
27841.41
7797.02 11505.86
1251.69 24338.32
1106.99
9109.76 36951.17
61.05
20, 26
20, 26
131.32
63.40
194.72
19.80
85.37
105.17
151.12
148.77
299.89
267.61
120.33
387.94
30.21
26.42
56.63
297.82
146.75
444.57
(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
Omani Riyal
Arab Emirates Dirham
Canadian Dollar
British Pound
Japanese Yen
Kuwaiti Dinars
Qatari Riyals
Thai Baht
Particulars
(b) Payable hedges
US Dollar
EURO
Arab Emirates Dirham
Swiss Franc
Chinese Yuan
British Pound
Japanese Yen
Kuwaiti Dinars
Swedish Krona
Nominal
amount
(R crore)
4178.79
904.48
138.38
301.94
1414.99
–
4.41
923.19
613.52
1476.18
1.43
Nominal
amount
(R crore)
As at 31-3-2018
Average
rate
(R)
Within
twelve
months
(R crore)
After
twelve
months
(R crore)
Nominal
amount
(R crore)
As at 31-3-2017
Average
rate
(R)
Within
twelve
months
(R crore)
After
twelve
months
(R crore)
68.11
85.60
17.07
179.55
18.11
–
90.74
0.65
225.58
18.55
2.12
3584.90
632.20
138.38
301.94
1411.18
–
4.41
889.42
442.85
1253.61
1.43
593.89 2817.69
723.40
272.28
331.20
–
324.75
–
3.81 1229.22
9.41
–
6.12
–
845.50
33.77
170.67
187.89
222.57 1184.17
–
–
66.87 2185.09
507.79
84.61
331.20
14.86
309.74
172.04
17.59 1029.47
9.41
50.29
6.12
81.60
467.82
0.66
164.74
220.92
15.58 1061.92
–
–
632.60
215.61
–
15.01
199.75
–
–
377.68
23.15
122.25
–
As at 31-3-2018
Average
rate
(R)
Within
twelve
months
(R crore)
After
twelve
months
(R crore)
Nominal
amount
(R crore)
As at 31-3-2017
Average
rate
(R)
Within
twelve
months
(R crore)
After
twelve
months
(R crore)
10172.38
2711.27
0.75
404.36
26.03
52.96
309.02
12.24
16.56
67.96
80.59
17.86
74.68
10.32
93.51
0.62
217.71
8.83
4717.80
2641.52
0.75
404.36
26.03
28.88
309.02
12.24
16.56
5454.58 7232.88
69.75 1907.72
7.24
266.74
63.51
2.97
385.36
4.40
–
–
–
–
24.08
–
–
–
62.41 6082.60 1150.28
108.30
71.72 1799.42
–
7.24
18.11
–
266.74
67.51
–
63.51
9.63
–
2.97
81.81
–
385.36
0.61
–
4.40
219.94
–
–
–
304
305
Notes forming part of the Financial Statements (contd.)
NOTE [45] (contd.)
(B) Forward covers taken to hedge exchange rate risk and accounted as net investment hedge:
Particulars
Receivable hedges
US Dollar
Saudi Riyal
Nominal
amount
(R crore)
As at 31-3-2018
Average
rate
(R)
Within
twelve
months
(R crore)
After
twelve
months
(R crore)
Nominal
amount
(R crore)
As at 31-3-2017
Average
rate
(R)
Within
twelve
months
(R crore)
After
twelve
months
(R crore)
28.73
187.39
71.83
17.43
–
187.39
28.73
–
–
785.74
–
19.44
–
27.79
–
757.95
(ii) Outstanding interest rate hedge instruments:
Interest rate swaps taken to hedge interest rate risk and accounted as cash flow hedge:
Particulars
Nominal
amount
(R crore)
As at 31-3-2018
Average
rate
(%)
Within
twelve
months
(R crore)
520.62
Nominal
amount
(R crore)
After
twelve
months
(R crore)
240.00 1433.26
As at 31-3-2017
Average
rate
(%)
Within
twelve
months
(R crore)
672.70
8.00
US Dollar
760.62
7.60
(iii) Outstanding commodity price hedge instruments:
Commodity forward contract:
As at 31-3-2018
Average
rate
(R)
Particulars
Copper(Tn)*
Aluminium(Tn)
Iron Ore(Tn)
Coking Coal(Tn)
Zinc(Tn)
Lead(Tn)
Nominal
amount
(R crore)
(223.90)
198.62
60.65
33.91
19.76
10.99
462821.73
139526.87
4055.89
11958.33
222813.00
160606.00
Within
twelve
months
(R crore)
(223.90)
198.62
60.65
33.91
19.76
10.99
After
twelve
months
(R crore)
–
–
–
–
–
–
*Negative nominal amount represents sell position.
(i) Carrying amounts of hedge instruments for which hedge accounting is followed:
Cash flow hedge:
Nominal
amount
(R crore)
As at 31-3-2017
Average
rate
(R)
30.99 374739.63
8.20 112943.72
3592.00
11494.00
9.53 177153.00
0.23 150777.00
71.66
50.40
Within
twelve
months
(R crore)
30.99
8.20
43.19
42.07
9.53
0.23
After
twelve
months
(R crore)
760.56
After
twelve
months
(R crore)
–
–
28.47
8.33
–
–
R crore
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
306
Currency
exposure
As at 31-3-2018
Interest rate
exposure
Commodity
price
exposure
Currency
exposure
As at 31-3-2017
Interest rate
exposure
Commodity
price
exposure
169.36
134.83
72.40
93.28
66.59
–
21.03
–
–
–
–
–
(8.43)
–
(3.65)
–
27.61
23.27
–
–
–
–
–
–
236.80
286.78
105.25
46.76
123.06
–
116.91
–
–
–
–
–
(1.38)
–
(15.69)
–
29.03
(4.89)
3.34
1.39
–
–
–
–
307
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
Liability - Other financial liabilities
Non current:
Asset - Other financial assets
(j)
Breakup of hedging reserve and cost of hedging reserve:
As at 31-3-2018
As at 31-3-2017
Currency
exposure
Interest
rate
exposure
Commodity
price
exposure
Currency
exposure
Interest
rate
exposure
Commodity
price
exposure
R crore
14.63
2.15
0.91
–
–
–
–
–
–
1.47
–
63.75
–
–
–
–
–
–
v crore
Particulars
Balance towards continuing hedges
Balance for which hedge accounting discontinued
Cash flow
hedging
reserve
(23.89)
138.39
Cost of
hedging
reserve
(12.34)
–
Cash flow
hedging
reserve
140.99
15.92
(k) Reclassification of hedging reserve and cost of hedging reserve to Profit or Loss:
Cost of
hedging
reserve
(12.80)
–
v crore
As at 31-3-2018
As at 31-3-2017
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:
Hedging reserve/Cost of
hedging reserve
2017-18
2016-17
(1.32)
(9.69)
177.14
(15.60)
2.16
(266.60)
181.10
117.42
43.34
(131.78)
(401.21)
(46.83)
v crore
Hedging reserve
Opening balance
Impact due to change in tax rate
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 fair value of swaps
Amount reclassified to Profit or Loss
Amount included in non-financial assets/liabilities
Amount included in Progress Billing in Balance Sheet
Closing balance
Gross
240.09
–
2017-18
Tax
(83.18)
(0.72)
2016-17
Net of Tax
156.91
(0.72)
Gross
(31.74)
–
Tax Net of Tax
(20.76)
–
10.98
–
(16.22)
5.81
(10.41)
(163.88)
56.77
(107.11)
217.80
(150.03)
61.11
(0.48)
(177.14)
175.13
(78.02)
53.75
(21.89)
0.17
63.45
(60.63)
139.78
(96.28)
39.22
(0.31)
(113.69)
114.50
267.87
(63.41)
345.28
–
(114.03)
240.09
(92.79)
21.96
(119.60)
–
39.50
(83.18)
175.08
(41.45)
225.68
–
(74.53)
156.91
306
307
Notes forming part of the Financial Statements (contd.)
NOTE [45]
(l) Movement of hedging reserve and cost of hedging reserve (contd.)
Cost of hedging reserve
Opening balance
Impact due to change in tax rate
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 included in carrying amount of hedge item
Amount reclassified to Profit or Loss
Closing balance
Gross
(19.56)
–
(38.56)
–
39.15
(18.97)
v crore
2017-18
2016-17
Tax Net of Tax
(12.79)
0.07
6.77
0.07
Gross
(23.04)
–
7.97
Tax Net of Tax
(15.07)
–
13.47
–
(13.68)
6.63
(25.09)
–
25.47
(12.34)
(194.03)
(3.39)
200.89
(19.57)
67.15 (126.88)
(2.22)
131.37
(12.80)
1.17
(69.52)
6.77
NOTE [46]
A.
Exceptional items for the year ended March 31, 2018 include the following:
(i) Gain of R 198.82 crore on sale of the Company’s stake in subsidiary companies viz. Larsen & Toubro Infotech Limited R 145.32
crore and L&T Technology Services Limited R 53.50 crore;
(ii) Gain on divestment of stake in L&T EWAC Alloys Limited R 351.55 crore and L&T Cutting Tools Limited R 174.91 crore;
(iii) Write off of trade receivable and retention money not due from a customer against whom insolvency proceedings are underway
R 294.75 crore [note1(t)(vii)].
Exceptional items for the year ended March 31, 2017 include the following:
(i) Gain of R 1947.89 crore on sale of the Company’s part stake in subsidiary companies viz. Larsen & Toubro Infotech Limited
R 1191.70 crore and L&T Technology Services Limited R 756.19 crore;
Loss on divestment of stake in L&T General Insurance Company Limited R 92.84 crore;
(ii)
(iii) Loss on sale of Company’s full stake in subsidiary company L&T Arabia LLC to wholly owned subsidiary company
R 11.08 crore.
(iv) Provision for impairment of investment in Infrastructure Development Projects Limited R 950 crore.
B. On May 1, 2018, the Company signed, subject to regulatory approvals, definitive agreements with Schneider Electric for strategic
divestment of its Electrical and Automation (E&A) business (which is a reported segment), together with certain associated
subsidiary companies outside India, for an all-cash consideration of R 14000 crore which is subject to customary post-closing
adjustments.
NOTE [47]
Disclosure pursuant to Ind AS 108 “Operating Segment”
(a)
Information about reportable segment
Particulars
For the year ended 31-3-2018
Inter-segment
External
For the year ended 31-3-2017
Total
External Inter-segment
Total
v crore
Revenue
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note 46(B)]
Others
Elimination
Total
Segment result [Profit/(Loss) before interest and tax]
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note 46(B)]
Others
Total
54578.87
6200.71
3896.06
4264.25
5671.76
–
74611.65
206.91
7.52
150.28
182.28
443.67
(990.66)
–
54785.78
6208.23
4046.34
4446.53
6115.43
(990.66)
74611.65
4870.14
161.96
569.66
624.78
482.35
6708.89
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
492.06
5891.63
308
309
Notes forming part of the Financial Statements (contd.)
NOTE [47(a)]
Disclosure pursuant to Ind AS 108 “Operating Segment” (contd.)
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 [Note 46(B)]
Others
Total
Unallocable corporate assets/liabilities
Inter- segment assets/liabilities
Total assets/liabilities
For the year ended 31-3-2018
Inter-segment
External
Total
(14.71)
6694.18
1073.01
7767.19
(1432.23)
496.89
6831.85
(1974.07)
98.99
4956.77
430.53
5387.30
For the year ended 31-3-2017
v crore
External Inter-segment
Total
(32.83)
5858.80
782.67
6641.47
(1316.91)
539.31
5863.87
(1675.20)
371.10
4559.77
893.97
5453.74
v crore
Segment assets
Segment liabilities
As at
31-3-2018
53127.74
5670.64
6502.86
2900.82
9348.55
77550.61
38770.64
(711.23)
115610.02
As at
31-3-2017
43931.92
6241.46
4879.29
3007.54
7967.38
66027.59
36746.81
(535.96)
102238.44
As at
31-3-2018
37733.44
5657.36
4723.49
1663.94
4973.14
54751.37
12395.63
(711.23)
66435.77
As at
31-3-2017
29858.24
6362.49
3281.58
1530.93
3993.66
45026.90
11734.76
(535.96)
56225.70
v crore
Depreciation, amortisation,
impairment & obsolescence
included in segment
expense
Other non-cash expenses
included in segment
expense
Particulars
Interest expense included in
segment expense
Additions to non-current
assets
For the
year ended
31-3-2018
(236.90)
For the
year ended
31-3-2017
(100.34)
For the
year ended
31-3-2018
552.06
43.56
99.29
130.00
For the
year ended
31-3-2017
591.45
44.40
105.75
130.81
For the
year ended
31-3-2018
20.03
1.40
1.97
3.85
For the
year ended
31-3-2017
19.81
1.99
2.49
3.83
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note
46(B)]
Others
Total
Unallocated corporate
Inter-segment
Total
Note: There is no impairment in non-financial assets of the segments. Unallocable corporate expenses include impairment loss of
R Nil for the year ended March 31, 2018 (previous year: R 103 crore).
231.08
2064.56
612.28
(44.31)
2632.53
75.04
998.10
588.77
(166.44)
1420.43
122.60
995.01
220.18
113.64
938.55
110.91
4.45
32.57
29.20
4.07
31.32
38.45
(100.34)
100.34
(236.90)
236.90
1215.19
1049.46
61.77
69.77
–
–
For the
year ended
31-3-2018
1241.69
151.36
250.12
190.31
For the
year ended
31-3-2017
564.53
100.17
92.98
165.38
308
309
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure pursuant to 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 (ii)
Total (i+ii)
v crore
Revenue by location of
customers
For the year
ended
31-3-2018
58124.10
For the year
ended
31-3-2017
51737.85
2478.78
2942.13
4917.23
1551.96
4597.45
16487.55
74611.65
2639.59
2166.06
4655.27
1317.00
3785.58
14563.50
66301.35
v crore
Non current assets by location
of customers
As at
31-3-2018
10142.61
379.79
10522.40
As at
31-3-2017
9206.97
585.75
9792.72
(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 reviewed by the Corporate Executive Management 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 Corporate Executive Management.
310
311
Notes forming part of the Financial Statements (contd.)
NOTE [47]
Disclosure pursuant to 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 hydrocarbon, metallurgical & material handling systems, realty, shipbuilding, marketing and
servicing of construction & mining machinery and parts thereof, manufacture and sale of rubber processing machinery.
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, 2018 or the year ended March 31, 2017.
NOTE [48]
(a)
Disclosures pursuant to Ind AS 11 “Construction Contracts”:
Sr.
No.
i)
ii)
iii)
Particulars
Contract revenue recognised for the financial year [Note 31]
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
2017-18
v crore
2016-17
66978.07
58498.42
251561.22* 217253.39*
Amount of customer advances outstanding for contracts in progress as at end of the
financial year
13675.90
12205.69
iv)
Retention amounts by customers for contracts in progress as at end of the financial year
8442.44
6962.23
*includes provision for foreseeable loss: R 144.78 crore (previous year: R 121.66 crore)
(b) 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
Amount of project revenue recognised for the financial year [Note 31]
Aggregate amount of costs incurred and profits recognised (less recognised losses) as at
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]
2017-18
v crore
2016-17
96.68
403.18
2427.88
2332.26
6.87
986.40
–
19.16
281.83
71.28
310
311
2017-18
v crore
2016-17
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)
Particulars
Profit or Loss section
(i) Current income tax:
Current income tax expense
Tax expense in respect of earlier years
(ii) Deferred tax:
Tax expense on origination and reversal of temporary differences
Effect of previously unrecognised tax losses on which deferred tax benefit is recognised
Effect on deferred tax balances due to the change in income tax rate
(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 re-measurement of defined benefit plans
(ii)
Items to be reclassified to Profit or Loss in subsequent periods:
(A) Current tax expense/(income):
On gain/(loss) on cash flow hedges other than mark to market
On foreign currency translation of joint operations
(B) Deferred tax:
On mark to market gain/(loss) on cash flow hedges
Net gain/(loss) on cost of hedging reserve
On gain/(loss) on fair value of debt securities
On foreign currency translation of joint operations
(c)
Income tax expense reported in the OCI section [(i)+(ii)]
Retained earnings:
Current income tax
Deferred tax
Income tax expense reported in retained earnings
1808.52
165.55
(79.03)
(16.05)
(3.91)
1875.08
1.32
1.32
4.73
(0.49)
4.24
(27.13)
0.14
11.12
–
(15.87)
(10.31)
–
–
–
(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 (c) = (a) * (b)
(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 deductions on R&D expenditure and deduction u/s 80IA
(iv) Effect of previously unrecognised tax losses used to reduce deferred tax expense
(v)
Tax effect on impairment and fair valuation losses recognised on which deferred tax
asset is not recognised
(vi) Effect on deferred tax balances due to the change in income tax rate
(vii) Effect of current year capital (gain)/loss [net] on which no deferred tax benefit is
recognised
(viii) Effect of current tax related to earlier years
(ix)
Tax effect of losses of current year in joint operations on which no deferred tax benefit
is recognised
(x) Tax effect on various other items
Total effect of tax adjustments [(i) to (x)]
Tax expense recognised during the year (e)=(c)+(d)
Effective tax rate (f)=(e)/(a)
(e)
(f)
312
2017-18
7262.38
34.61%
2513.37
(1117.38)
(68.81)
(10.28)
34.93
83.88
2.07
(397.65)
(16.05)
227.15
(3.91)
430.41
165.55
25.94
5.86
(638.29)
1875.08
25.82%
1671.58
3.62
(349.24)
(21.86)
–
1304.10
(4.25)
(4.25)
(14.47)
–
(14.47)
108.63
1.20
1.08
(2.29)
108.62
89.90
(133.40)
133.40
–
v crore
2016-17
6757.84
34.61%
2338.75
(368.61)
(671.75)
(10.58)
34.87
19.83
3.28
(368.93)
(21.86)
328.78
–
69.01
3.62
42.99
(95.30)
(1034.65)
1304.10
19.30%
313
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 (DTA) is recognised in Balance Sheet
Particulars
Base amount
(R crore)
As at 31-3-2018
Deferred tax
(R crore)
Expiry date
(Assessment
year)
Base amount
(R crore)
As at 31-3-2017
Deferred tax
(R crore)
Expiry date
(Assessment
year)
Tax losses (capital loss on which no DTA is created)
Assessment year 2018-19
Assessment year 2017-18
Assessment year 2016-17
Total
1651.79
998.16
1135.58
3785.53
284.17
196.38
236.16
716.71
31-3-2027
31-3-2026
31-3-2025
–
998.16
1135.58
2133.74
194.17
233.89
428.06
31-3-2026
31-3-2025
–
ii. Unrecognised deductible temporary differences for which no deferred tax asset (DTA) is recognised in Balance Sheet
Sr.
No.
(a)
(b)
Particulars
Deductible temporary differences towards provision for
dimunition in value of investments on which no DTA is created
Temporary differences arising out of revaluation of tax base of
assets (on account of indexation benefit)
Total
As at 31-3-2018
As at 31-3-2017
Base amount
1692.29
Deferred tax
363.99
Base amount
1035.93
Deferred tax
247.02
v crore
5718.83
1332.26
4884.39
1126.93
7411.12
1696.25
5920.32
1373.95
(d)
Components of deferred tax (assets) and liabilities recognised in the Balance Sheet and Statement of Profit or Loss:
Sr.
No.
Particulars
Balance Sheet
Statement of Profit or Loss
As at
31-3-2018
As at
31-3-2017
2017-18
2016-17
v crore
(a)
Disputed statutory liabilities claimed on payment basis u/s 43B of
136.47
150.54
(14.07)
36.89
(b)
(c)
(d)
(e)
(f)
the Income Tax Act, 1961
Items disallowed u/s 43B of Income Tax Act, 1961
Provision for doubtful debt and advances
Difference in book depreciation and income tax 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
(iv) Hedging reserve (other than through OCI)
(c)
Acquired under business combination [Note 60]
Closing balance as at March 31
(208.68)
(880.64)
519.59
(8.51)
41.15
(213.79)
(740.19)
510.22
18.80
(10.80)
(400.62)
(285.22)
5.21
(140.44)
9.05
–
41.26
(98.99)
(16.45)
(123.21)
(77.07)
–
(191.26)
(371.10)
v crore
2017-18
2016-17
(285.22)
(156.14)
(98.99)
(15.87)
–
(0.15)
(0.39)
(371.10)
108.62
133.40
–
–
(400.62)
(285.22)
313
312
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 R 124.47 crore (previous year: R 118.34 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
B)
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)
Amounts reflected in the Balance Sheet
Liabilities
Assets
Net liability/(asset)
Net liability/(asset) - current #
Net liability/(asset) - non-current
Gratuity Plan
As at
31-3-2018
As at
31-3-2017
Post-retirement medical
benefit plan
As at
31-3-2018
As at
31-3-2017
Company pension plan
As at
31-3-2018
As at
31-3-2017
v crore
Trust-managed provident
fund plan
As at
31-3-2018
As at
31-3-2017
444.87
91.10
535.97
399.87
0.01
136.11
136.11
–
136.11
136.11
–
445.79
71.94
517.73
439.61
–
78.12
78.12
–
78.12
78.12
–
–
178.83
178.83
–
–
178.83
178.83
–
178.83
7.09
171.74
–
185.64
185.64
–
–
185.64
185.64
–
185.64
5.25
180.39
–
323.71
323.71
–
–
323.71
323.71
–
323.71
22.58
301.13
–
312.75
312.75
–
–
312.75
312.75
–
312.75
22.46
290.29
2270.10
–
2270.10
2287.81
–
(17.71)
22.73
–
22.73
22.73
–
2146.56
–
2146.56
2156.30
–
(9.74)
23.33
–
23.33
23.33
–
# Employer’s and employees’ contribution due towards Provident Fund.
b)
The amounts recognised in Statement of Profit and Loss are as follows:
Particulars
1
2
3
4
5
Current service cost
Interest cost
Interest income on plan assets
Actuarial losses/(gains) - others
Actuarial losses/(gains) - difference
between actual return on plan assets
and interest income
Past service cost
Actuarial gain/(loss) not recognised in books
Effect of the limit in para 64(b)
Translation adjustments
6
7
8
9
10 Amount capitalised out of the above/
Recovered from S&A
Total (1 to 10)
Amount included in “employee benefits
expense”
Amount included as part of “finance cost”
Amount included as part of “Other
i
ii
iii
Comprehensive Income”
Total (i+ii+iii)
Actual return on plan assets
Gratuity plan
Post-retirement medical
benefit plan
Company pension plan
2017-18
72.42
28.33
(29.00)
34.04
2016-17
67.21
27.92
(27.56)
19.37
2017-18
13.11
13.16
–
(21.93)
2016-17
10.83
11.68
–
15.69
2017-18
3.44
21.67
–
5.91
2016-17
2.47
21.14
–
23.63
v crore
Trust-managed
provident fund plan
2017-18
61.53
178.70
(178.70)
–
2016-17
59.96
168.78
(168.78)
(9.87)
(21.84)
0.20
–
0.01
–
(0.12)
84.04
72.50
(0.66)
12.20
84.04
50.83
(46.42)
–
–
–
0.19
(0.10)
40.61
67.30
0.36
(27.05)
40.61
73.98
–
–
–
–
–
(0.02)
4.32
13.09
13.16
(21.93)
4.32
–
–
–
–
–
–
(0.01)
38.19
10.82
11.68
15.69
38.19
–
–
–
–
–
–
–
31.02
3.44
21.67
5.91
31.02
–
–
–
–
–
–
–
47.24
2.47
21.14
23.63
47.24
–
(2.13)
–
2.13
–
–
–
61.53
61.53
–
–
61.53
180.89
(10.04)
–
19.91
–
–
–
59.96
59.96
–
–
59.96
168.96
314
315
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
c)
The changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances
thereof are as follows:
Gratuity plan
As at
31-3-2018
As at
31-3-2017
Post-retirement medical
benefit plan
As at
31-3-2018
As at
31-3-2017
Company pension plan
v crore
Trust-managed
provident fund plan
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
517.73
72.42
28.33
468.40
67.21
27.92
185.64
13.11
13.16
155.58
10.83
11.68
312.75
3.44
21.67
283.25
2.47
21.14
2146.56
61.53
178.70
1996.84
59.96
168.78
–
–
–
–
–
–
–
(23.05)
–
–
–
–
–
–
–
–
–
168.39
25.12
161.80
20.09
(14.52)
19.28
(13.08)
17.26
(13.32)
16.80
29.77
(116.88)
0.20
0.24
(0.11)
0.09
(64.99)
–
–
(0.18)
14.20
(11.15)
–
–
–
(1.57)
(8.14)
–
–
–
19.23
(20.07)
–
–
–
6.83
(17.74)
–
–
–
–
(310.20)
–
–
–
–
–
–
(9.87)
–
(251.04)
–
–
–
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 (gains)/losses
i)
Actuarial (gains)/losses arising from
changes in demographic assumptions
18.79
ii) Actuarial (gains)/losses arising from
changes in financial assumptions
iii) Actuarial (gains)/losses arising from
changes in experience adjustments
Less: Benefit paid
Add: Past service cost
Add: Business combination
Add/(less): Translation adjustments
Closing balance of the present value of defined
benefit obligation
535.97
517.73
178.83
185.64
323.70
312.75
2270.10
2146.56
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
Add: Business combination
Less: Benefits paid
Closing balance of the plan assets
Gratuity plan
As at
31-3-2018
439.61
As at
31-3-2017
385.85
v crore
Trust-managed provident
fund plan
As at
31-3-2018
2156.30
As at
31-3-2017
1990.14
29.00
27.56
178.70
168.78
21.84
26.07
–
–
0.23
(116.88)
399.87
46.42
44.77
–
–
–
(64.99)
439.61
2.13
63.20
25.12
10.04
58.14
20.09
172.56
160.15
–
(310.20)
2287.81
–
(251.04)
2156.30
* 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 R 45.05 crore (previous year: R 6.18 crore) towards its gratuity plan and R 67.68 crore (previous
year: R 73.21 crore) towards its trust-managed provident fund plan during the year 2018-19.
314
315
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
e)
The fair value of major categories of plan assets are as follows:
Particulars
As at 31-3-2018
As at 31-3-2017
Gratuity plan
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
Insurer managed funds
Fixed deposits
Special deposit scheme
Advances taken
Other (payables)/receivables
Closing balance of the plan assets
Quoted
–
16.51
65.12
88.46
66.35
–
3.89
–
–
–
–
–
–
–
240.33
Unquoted
0.69
–
99.91
–
–
55.59
–
0.29
–
0.26
1.47
1.49
–
(0.16)
159.54
Total
0.69
16.51
165.03
88.46
66.35
55.59
3.89
0.29
–
0.26
1.47
1.49
–
(0.16)
399.87
Quoted
–
14.89
66.30
135.01
123.17
–
–
–
–
–
–
–
–
–
339.37
Unquoted
2.41
–
150.47
–
–
70.68
63.87
0.50
0.10
–
1.15
1.46
(175.00)
(15.40)
100.24
Particulars
As at 31-3-2018
As at 31-3-2017
Trust-managed provident fund plan
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
Mutual funds – Others
Special deposit scheme
Other (payables)/receivables
Closing balance of the plan assets
Quoted
–
334.83
518.65
455.76
283.08
50.06
–
2.76
–
–
1645.14
Unquoted
5.05
66.78
–
–
375.60
8.90
0.25
5.09
193.08
(12.08)
642.67
Total
5.05
401.61
518.65
455.76
658.68
58.96
0.25
7.85
193.08
(12.08)
2287.81
Quoted
–
225.16
433.43
451.64
252.00
7.37
–
–
–
–
1369.60
Unquoted
8.77
83.05
–
–
446.47
45.88
2.70
–
199.83
–
786.70
v crore
Total
2.41
14.89
216.77
135.01
123.17
70.68
63.87
0.50
0.10
1.15
1.46
(175.00)
(15.40)
439.61
v crore
Total
8.77
308.21
433.43
451.64
698.47
53.25
2.70
–
199.83
–
2156.30
f)
The average duration of the defined benefit plan obligations at the end of the reporting period is as follows:
Plans
As at 31-3-2018 As at 31-3-2017
1. Gratuity plan
2.
3
Post-retirement medical benefit plan
Company pension plan
6.45
13.95
7.57
7.53
16.65
8.02
316
317
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
g)
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
Particulars
As at 31-3-2018 As at 31-3-2017
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:
7.68%
7.68%
7.68%
5.00%
5.00%
6.00%
7.19%
7.19%
7.19%
5.00%
5.00%
6.00%
(a) For post-retirement medical benefit plan and Company pension plan, the attrition rate varies from 1% to 12%
(previous year: 2% to 8%) for various age groups.
(b) For gratuity plan the attrition rate varies from 1% to 11% (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.
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
2017-18
30.99
(27.08)
2016-17
36.73
(31.16)
2017-18
(27.97)
30.46
2016-17
(32.01)
36.29
v crore
(B) One percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of company pension plan:
Particular
Impact of change in discount rate
Effect of 1% increase
Effect of 1% decrease
2017-18
(24.01)
2016-17
(25.62)
2017-18
27.70
2016-17
26.15
v crore
(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
Effect of 1% increase
Effect of 1% decrease
2017-18
17.53
(22.60)
2016-17
22.91
(27.42)
2017-18
(14.43)
28.40
2016-17
(18.36)
35.33
v crore
316
317
Notes forming part of the Financial Statements (contd.)
NOTE [50]
Disclosure pursuant to Ind AS 19 “Employee Benefits” (contd.)
h) Characteristics of defined benefit plans and associated risks:
1. Gratuity plan:
The Company operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent
to fifteen days last salary drawn for each completed year of service. The same is payable on termination of service
or retirement whichever is earlier. The benefit vests after five years of continuous service. The Company’s scheme is
more favorable as compared to the obligation under Payment of Gratuity Act, 1972. The defined benefit plan for
gratuity of the Company is administered by separate gratuity funds that are legally separate from the Company. The
trustees nominated by the Company are responsible for the administration of the plan. There are no minimum funding
requirements of these plans. The funding of these plans are based on gratuity fund’s actuarial measurement framework
set out in the funding policies of the plan. These actuarial measurements are similar compared to the assumptions set
out in (g) supra. Employees do not contribute to any of these plans.
Unfunded gratuity represents a small part of gratuity plan which is not material. Further, it includes amounts payable in
respect of the Company’s foreign operations which result in gratuity payable to employees engaged as per the local laws
of country of operation.
2.
Post-retirement medical care plan:
The Post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of
employees post their retirement. The reimbursement is subject to an overall ceiling sanctioned based on cadre of the
employee at the time of retirement. 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.
4.
Trust managed provident fund plan:
The Company manages provident fund plan through a provident fund trust for its employees which is permitted under
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The plan mandates contribution by employer
at a fixed percentage of employee’s salary. Employees also contribute to the plan at a fixed percentage of their salary
as a minimum contribution and additional sums at their discretion. The plan guarantees interest at the rate notified by
Employees’ Provident Fund Organisation. The contribution by employer and employee together with interest are payable
at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on
rendering of service.
The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest
income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is
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.
318
319
Notes forming part of the Financial Statements (contd.)
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:
Name of the Subsidiary Company
Nature of relationship
Sr.
No.
Transaction entered
during the year
(Yes/No)
L&T Cutting Tools Limited*
Bhilai Power Supply Company Limited
Spectrum Infotech Private Limited **
L&T Shipbuilding Limited
L&T Electricals and Automation Limited
Hi-Tech Rock Products and Aggregates Limited
L&T Seawoods Limited
Kesun Iron and Steel Company Private 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
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
Syncordis S.A. Luxembourg$$
Syncordis France SARL$$
Syncordis Limited$$
L&T Housing Finance Limited
L&T Infra Investment Partners
L&T Finance Limited
L&T Information Technology Spain, S.L.
L&T Capital Markets Limited
L&T Investment Management Limited
L&T Mutual Fund Trustee Limited
Syncordis PSF S.A.$$
L&T Infrastructure Finance Company Limited
L&T Infra Debt Fund Limited
L&T Infra Investment Partners Advisory Private Limited
L&T Infra Investment Partners Trustee Private Limited
L&T Financial Consultants Limited
L&T Access Distribution Services Limited@@
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41. Mudit Cement Private Limited
Wholly owned subsidiary (WOS)
Subsidiary
WOS
Subsidiary
WOS
WOS
WOS
Subsidiary
WOS
Subsidiary
WOS
WOS
Subsidiary of L&T Realty Limited
Subsidiary of L&T Realty Limited
WOS of L&T Realty Limited
Subsidiary of L&T Realty Limited
Subsidiary of L&T Realty Limited
Subsidiary
WOS
WOS
WOS
Subsidiary
Subsidiary
Subsidiary of Larsen & Toubro Infotech GmbH
Subsidiary of Syncordis S.A. Luxembourg
Subsidiary of Syncordis S.A. Luxembourg
WOS of L&T Finance Holdings Limited
Subsidiary of L&T Infrastructure Finance Company Limited
WOS of L&T Finance Holdings Limited
WOS of Larsen & Toubro Infotech Limited
WOS of L&T Finance Holding Limited
WOS of L&T Finance Holdings Limited
WOS of L&T Finance Holdings Limited
Subsidiary of Syncordis S.A. Luxembourg
WOS of L&T Finance Holdings Limited
WOS of L&T Finance Holdings Limited
WOS of L&T Infrastructure Finance Company Limited
WOS of L&T Infrastructure Finance Company Limited
WOS of L&T Finance Holdings Limited
WOS of L&T Finance Holdings Limited
WOS of L&T Financial Consultants Limited (formerly
known as L&T Vrindavan Properties Limited)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
Yes
No
Yes
No
Yes
Yes
No
No
Yes
Yes
Yes
No
Yes
Yes
Yes
318
319
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 Subsidiary Company
Nature of relationship
Transaction entered
during the year
(Yes/No)
Sr.
No.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
L&T Capital Company Limited
WOS
L&T Trustee Company Private Limited
WOS of L&T Capital Company Limited
L&T Power Development Limited
L&T Uttaranchal Hydropower Limited
Larsen & Toubro Electromech LLC%%
L&T Westend Project LLP~~~
WOS
WOS of L&T Power Development Limited
Subsidiary
Subsidiary of L&T Realty Limited
Esencia Technologies India Private Limited~~
Subsidiary of Esencia Technologies, Inc.
Syncordis Software Services India Private Limited$
Subsidiary of Larsen & Toubro Infotech 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
WOS of L&T Power Development Limited
WOS of L&T Power Development Limited
WOS of L&T Power Development Limited
Subsidiary
Subsidiary
WOS
WOS
L&T Thales Technology Services Private Limited
Subsidiary of L&T Technology Services Limited
L&T Hydrocarbon Engineering Limited
WOS
Sahibganj Ganges Bridge-Company Private Limited^
WOS of L&T Capital Company Limited
Seawoods Retail Private Limited^^
Seawoods Realty Private Limited^^
WOS
WOS
62. Marine Infrastructure Developer Private Limited
Subsidiary
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
AugmentIQ Data Sciences Private Limited##
Subsidiary of Larsen & Toubro Infotech Limited
L&T Infra Contractors Private Limited###
WOS of L&T Capital Company Limited
Larsen & Toubro LLC
Larsen & Toubro Infotech GmbH
Subsidiary
WOS of Larsen & Toubro Infotech Limited
Larsen & Toubro Infotech Canada Limited
WOS of Larsen & Toubro Infotech Limited
Larsen & Toubro Infotech LLC
WOS of Larsen & Toubro Infotech Limited
L&T Infotech Financial Services Technologies Inc.
WOS 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.
WOS of Larsen & Toubro Infotech Limited
L&T Realty FZE
WOS of L&T Realty Limited
Larsen & Toubro International FZE
WOS of L&T Global Holdings Limited
Larsen & Toubro Hydrocarbon International Limited LLC
Subsidiary
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@@@
WOS of Larsen & Toubro International FZE
WOS of Thalest Limited
Subsidiary of Larsen & Toubro International FZE
Subsidiary of Larsen & Toubro International FZE
Subsidiary
Subsidiary of Larsen & Toubro International FZE
Yes
Yes
Yes
Yes
Yes
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
No
No
Yes
No
No
No
No
No
No
No
Yes
Yes
No
Yes
Yes
No
No
Yes
320
321
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 Subsidiary Company
Nature of relationship
Transaction entered
during the year
(Yes/No)
No
No
Yes
No
No
Yes
Yes
Yes
Yes
Yes
No
No
No
Yes
Yes
Yes
No
No
Yes
No
Yes
Sr.
No.
81.
82.
83.
L&T Overseas Projects Nigeria Limited
WOS 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
84.
Larsen & Toubro Kuwait Construction General Contracting
Subsidiary of Larsen & Toubro International FZE
Company WLL
85.
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 Saudi LLC
Subsidiary
Subsidiary
Subsidiary of Larsen & Toubro International FZE
Tamco Switchgear (Malaysia) SDN BHD
WOS of Larsen & Toubro International FZE
Henikwon Corporation SDN. BHD
Esencia Technologies, Inc.~~
L&T Infotech S. DE R.L. DE C.V.$$
WOS of Tamco Switchgear (Malaysia) SDN. BHD
Subsidiaty of L&T Technology Services LLC
Subsidiary of Larsen & Toubro Infotech Limited
Tamco Electrical Industries Australia Pty Ltd.
WOS of Larsen & Toubro International FZE
PT Tamco Indonesia
Subsidiary of Larsen & Toubro International FZE
Larsen & Toubro Heavy Engineering LLC
Subsidiary of Larsen & Toubro International FZE
L&T Electrical & Automation FZE
WOS of Larsen & Toubro International FZE
Kana Controls General Trading & Contracting Company W.L.L.
Subsidiary of L&T Electrical & Automation FZE
Larsen & Toubro T&D SA (Proprietary) Limited
Subsidiary of Larsen & Toubro International FZE
L&T Technology Services LLC
Larsen & Toubro Infotech Austria GmbH
L&T Global Holdings Limited
WOS of L&T Technology Services Limited
WOS of Larsen & Toubro Infotech Limited
WOS
86.
87.
88.
89.
90.
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
The Company has sold its stake on September 27, 2017
*
Merged with the Company w.e.f. April 1, 2017
**
The Company has sold its stake on September 9, 2016
***
@
The Company has sold its stake on November 16, 2017
@@ Merged with L&T Capital Market Limited w.e.f. April 1, 2017
@@@
~~
~~~
^
^^
#
##
###
%
%%
$
$$
In the process of liquidation
The Company through its subsidiaries acquired stake on June 1,2017
Incorporated on August 8,2017
Incorporated on July 14, 2016
Applied for strike off
The Company through its subsidiary sold its stake on September 28, 2017
Merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2017
Incorporated on March 17, 2017
The Company through its subsidiary has sold its stake on March 20, 2017
Reclassified from joint venture to subsidiary due to additional purchase of stake on August 16, 2017
The Company through its subsidiary has acquired stake on December 11, 2017
The Company through its subsidiary has acquired stake on December 15, 2017
320
321
Notes forming part of the Financial Statements (contd.)
NOTE [51] (contd.)
(b)
(i) Name of associates with whom transactions were carried out during the year:
Sr. No.
Associate Companies
1.
2.
3.
L&T-Chiyoda Limited
Feedback Infra Private Limited@
Magtorq Private Limited
@ The Company has sold its stake on March 19, 2018.
(ii) Names of joint ventures with whom transactions were carried out during the year:
Sr. No.
Joint Ventures
Sr. No.
Joint Ventures
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.
25.
27.
29.
31.
Larsen & Toubro Electromech LLC***
L&T-Sargent & Lundy Limited
L&T Interstate Road Corridor Limited
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
Krishnagiri Thopur Toll Road Limited
Western Andhra Tollways Limited
Vadodara Bharuch Tollway Limited
L&T Transportation Infrastructure Limited
33.
L&T MBDA Missile Systems Limited**
2.
4.
6.
8.
10.
12.
14.
16.
18.
20.
22.
24.
26.
28.
30.
32.
L&T Port Kachchigarh Limited*
Ahmedabad-Maliya Tollway Limited
L&T Halol-Shamlaji Tollway Limited
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
LTIDPL INDVIT Services Limited (formerly known as
L&T Western India Tollbridge Limited)
* Merged with Infrastructure Development Projects Limited w.e.f. April 1,2016
.**The joint venture is formed on April, 5, 2017
*** Reclassified from joint venture to subsidiary due to additional purchase of stake on August 16, 2017
(iii) Name of post-employment benefit plans with whom transactions were carried out during the year:
Sr. No.
Provident Fund Trust
1.
2.
3.
4.
5.
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Larsen & Toubro Limited Provident Fund of 1952
Larsen & Toubro Limited Provident Fund
L&T Kansbahal Officers & Supervisory Provident Fund
L&T Kansbahal Staff & Workmen Provident Fund
Sr. No. Gratuity Trust
1.
2.
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Superannuation Trust
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
322
323
Notes forming part of the Financial Statements (contd.)
NOTE [51] (contd.)
(iv) Name of key management personnel and their relatives with whom transactions were carried out during the year:
Sr. No.
Executive Directors
Sr. No.
Executive Directors
1.
3.
5.
7.
Mr. A.M. Naik (Group Executive Chairman)*
2.
Mr. S. N. Subrahmanyan (Chief Executive Officer
and Managing Director)#
Mr. R. Shankar Raman (Whole-time Director & Chief
4.
Mr. Shailendra Roy (Whole-time Director)
Financial Officer)
Mr. D. K. Sen (Whole-time Director)
6.
Mr. M. V. Satish (Whole-time Director)
Mr. J. D. Patil (Whole-time Director)**
Sr. No. Non-Executive Directors
Sr. No. Non-Executive Directors
1.
3.
5.
7.
9.
11.
13.
15.
17.
Mr. M. M. Chitale
Mr. M. Damodaran
Mr. Adil Zainulbhai
Mrs. Sunita Sharma
Mr. Ajay Shankar
Mrs. Naina Lal Kidwai
Mr. Narayanan Kumar @@
Mr. Sushobhan Sarker ###
Mr. Bahram Vakil ***
2.
4.
6.
8.
10.
12.
14.
16.
Mr. Subodh Bhargava
Mr. Vikram Singh Mehta
Mr. Akhilesh Krishna Gupta
Mr. Thomas Mathew T
Mr. Subramanian Sarma
Mr. Sanjeev Aga @@@
Mr. Arvind Gupta ##
Mr. Swapan Dasgupta @
Group Chairman w.e.f. October 1, 2017
w.e.f. July 1,2017 (till June 30, 2017 Whole-time Director)
Appointed w.e.f. July 1, 2017
*
#
**
@@ Appointed w.e.f. May 27, 2016
@@@ Appointed w.e.f. May 25, 2016
*** Ceased w.e.f. August 1, 2016
(c) Disclosure of related party transactions:
@ Ceased w.e.f. May 15, 2016
## Appointed w.e.f. July 1, 2017
### Ceased w.e.f. May 2, 2018
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 & Aggregates Limited
L&T Geostructure LLP
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Associates, including:
Feedback Infra Private Limited
L&T-Chiyoda Limited
Magtorq Private Limited
Total
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
1497.24
1121.13
729.89
244.57
237.24
1802.47
2323.92
1382.61
352.83
3.82
7.01
1.50
2.10
3303.53
3452.06
428.06
169.61
172.14
1675.16
530.79
2.58
1.10
3.33
323
322
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(c) Disclosure of related party transactions: (contd.)
iii.
Purchase/lease of property, plant and equipment
Subsidiaries, including:
9.49
26.45
Sr.
No.
Nature of transaction/relationship/major parties
ii.
Sale of goods/contract revenue & services
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
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
L&T Construction Equipment Limited
L&T Hydrocarbon Engineering Limited
Larsen & Toubro Infotech Limited
Joint ventures:
L&T Infrastructure Development Projects Limited
L&T-MHPS Turbine Generators Private Limited
Total
iv.
Sale of property, plant and equipment
Subsidiaries, including:
L&T Valves Limited
L&T Shipbuilding Limited
L&T Hydrocarbon Engineering Limited
Total
v.
Sale of receivables
Subsidiary:
L&T Finance Limited
Total
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
1370.43
2359.81
770.34
188.42
415.69
1070.75
132.96
87.07
178.54
0.13
0.13
0.14
1786.25
3430.70
0.01
9.50
0.54
5.75
2.20
1.25
–
0.01
–
–
0.50
0.02
26.47
58.68
1231.51
281.62
364.41
544.27
394.35
124.02
0.14
9.38
13.67
0.02
–
45.01
6.56
0.54
58.68
–
–
–
297.01
297.01
297.01
324
325
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
considered as equity (including application money paid)
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
Subsidiaries, including:
L&T Technology Services Limited
L&T Shipbuilding Limited
L&T Finance Holdings Limited
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Special Steels and Heavy Forgings Private Limited
2771.16
1262.84
–
436.57
2000.00
261.01
(0.25)
–
260.65
Total
3032.17
1262.59
750.00
276.24
–
(0.03)
(0.22)
–
111.76
–
388.00
2041.57
181.76
214.43
396.19
–
–
–
181.76
214.43
–
–
111.76
–
111.76
388.00
2041.57
2429.57
210.00
761.08
210.00
–
–
750.00
vii
Investment in preference shares considered as debt
Subsidiary:
L&T Shipbuilding Limited
Joint venture:
L&T Special Steels and Heavy Forgings Private Limited
Total
viii.
Purchase of investments from
Subsidiary:
L&T Shipbuilding Limited
Joint venture:
L&T Infrastructure Development Projects Limited
Total
ix.
Sale/Redemption of investments
Subsidiaries, including:
L&T Seawoods Limited
L&T Technology Services Limited
324
325
Total
210.00
761.08
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
x.
Net inter corporate deposits given/(returned)
Subsidiaries, including:
L&T Shipbuilding Limited
Nabha Power Limited
EWAC Alloys Limited
L&T Realty Limited
L&T Seawoods Limited
Joint venture:
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
(1202.30)
(1593.81)
(286.50)
(986.21)
–
–
–
(1409.00)
698.27
(503.95)
(174.13)
(189.00)
211.89
387.50
L&T Special Steels and Heavy Forgings Private Limited
211.89
387.50
Total
(990.41)
(1206.31)
xi.
Net inter corporate borrowing taken/(repaid)
Subsidiaries, including:
L&T Seawoods Limited
L&T Hydrocarbon Engineering Limited
L&T Cutting Tools Limited
Total
xii
Charges paid for miscellaneous services
Subsidiaries, including:
Larsen & Toubro Infotech Limited
L&T Aviation Services Private Limited
Joint ventures, including:
L&T-Sargent & Lundy Limited
Associates, including:
Feedback Infra Private Limited
420.80
(3.75)
294.89
124.41
–
105.35
17.86
4.18
–
420.80
137.62
4.36
–
(3.75)
139.13
3.64
0.19
Total
141.98
142.96
xiii.
Rent paid, including lease rentals under leasing/hire purchase
arrangements
Subsidiaries, including:
L&T Electrical & Automation FZE
PT Tamco Indonesia
Total
1.16
1.16
0.80
0.28
1.37
1.37
–
5.50
(9.25)
101.42
23.74
3.62
0.17
0.79
0.31
326
327
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
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
xiv.(a) Charges incurred for deputation of employees from related parties
Subsidiaries, including:
11.06
12.65
L&T Electricals & Automation Saudi Arabia Company Limited LLC
L&T Electrical & Automation FZE
PT Tamco Indonesia
Total
xiv.(b) Charges recovered for deputation of employees to related parties
Subsidiaries, including:
L&T Parel Project LLP
L&T Electrical & Automation FZE
L&T Construction Equipment Limited
L&T Geostructure LLP
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
xv.
Dividend received
Subsidiaries, including:
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Finance Holdings Limited
L&T Hydrocarbon Engineering Limited
11.06
88.00
4.65
15.81
108.46
535.59
1.19
6.99
1.50
24.58
11.40
14.30
0.50
1.97
2.17
15.81
264.98
95.57
93.58
60.90
12.65
84.47
3.99
18.01
106.47
405.47
Total
535.59
405.47
xvi.
Commission received, including those under agency arrangements
Subsidiary:
L&T Construction Equipment Limited
Joint venture:
L&T Kobelco Machinery Private Limited
Total
7.95
2.00
9.95
7.95
2.00
5.82
0.65
6.47
1.38
6.16
1.55
22.39
8.54
8.97
0.64
1.21
2.14
18.01
149.48
99.05
93.58
–
5.82
0.65
327
326
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
xvii.
Rent received, overheads recovered and miscellaneous income
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
Subsidiaries, including:
532.50
422.94
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Hydrocarbon Engineering Limited
L&T Geostructure LLP
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-Sargent & Lundy Limited
L&T-MHPS Turbine Generators Private Limited
Associate:
L&T-Chiyoda Limited
Key management personnel:
Mr. D.K. Sen
Total
xviii. 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
xix.
Interest received from
Subsidiaries, including:
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
77.58
122.10
107.92
40.86
13.58
17.78
0.08
7.07
4.50
9.07
4.16
7.97
42.13
56.83
–
102.05
90.38
17.78
0.08
640.74
36.81
36.81
109.69
102.05
211.74
90.07
2.77
0.07
515.85
30.98
30.98
248.30
79.54
327.84
67.78
49.04
90.99
77.44
35.50
17.70
9.64
2.77
0.07
9.45
6.54
4.64
5.53
71.21
62.41
69.64
78.98
328
329
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
xx.
Interest paid to
Subsidiaries, including:
L&T Hydrocarbon Engineering Limited
L&T Seawoods Limited
Joint venture:
L&T Infrastructure Development Projects Limited
Total
xxi.
Amount written off as bad debts
Joint ventures, including:
Krishnagiri Thopur Toll Road Limited
Western Andhra Tollways Limited
L&T Interstate Road Corridor Limited
Total
xxii. Amount recognised in P&L as provision towards bad and doubtful
debts (including expected credit loss on account of delay)
Subsidiaries, including:
L&T Hydrocarbon Engineering Limited
Nabha Power Limited
L&T Electricals & Automation Saudi Arabia Company Limited LLC
Joint ventures, including:
PNG Tollway Limited
L&T-MHPS Boilers Private Limited
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
124.87
45.38
33.06
157.93
–
–
(6.03)
22.69
98.24
25.02
33.06
–
–
–
–
(0.83)
2.93
(7.25)
–
21.66
–
45.38
0.55
0.55
4.34
24.11
40.27
–
0.31
0.07
0.13
–
1.87
2.22
22.11
–
Total
16.66
28.45
xxiii. Amount recognised in P&L on account of impairment loss/provision
on investment:
Subsidiaries, including:
Larsen & Toubro Hydrocarbon International Limited LLC
Joint venture:
L&T Infrastructure Development Projects Limited
Total
0.75
–
0.75
0.68
–
–
950.00
950.00
–
950.00
328
329
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
xxiv. Contribution to post-employment benefit plan
Transaction with trust managed provident fund
(a)
Towards employer’s contribution:
(i)
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Larsen & Toubro Limited Provident Fund of 1952
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/(refund):
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
(c)
Transaction with superannuation trust
Towards employer’s contribution:
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
Total
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
64.13
64.13
6.18
6.18
(175.00)
(175.00)
3.25
3.25
54.35
8.45
5.01
1.17
(142.30)
(32.70)
3.25
59.68
59.68
29.85
29.85
–
–
3.32
3.32
51.52
6.64
23.59
6.26
–
–
3.32
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective
period.
xxv. Compensation paid to key management personnel:
Key Management Personnel
Executive Directors:
(a) Mr. A. M. Naik (Group Executive
Chairman upto September 30, 2017)
(b) Mr. S. N. Subrahmanyan
(c) Mr. R. Shankar Raman
(d) Mr. Shailendra Roy
(e) Mr. D. K. Sen
(f) Mr. M. V. Satish
(g) Mr. J. D. Patil **
Non-Executive Directors:
(a) Mr. A. M. Naik (Group Chairman
w.e.f. October 1, 2017)
Short-term
employee
benefits
2017-18
Post-
employment
benefits
Other
long term
benefits
Total
Short-term
employee
benefits
2016-17
Post-
employment
benefits
Other
long term
benefits
v crore
Total
11.58 56.80 ^
19.38 *
87.76
21.86
5.83
32.21 *
59.90
13.99
9.16
7.96
6.37
5.86
3.14
3.70
2.42
1.83
1.69
1.52
0.81
2.54
1.50 ***
–
–
–
–
–
–
–
17.69
11.58
9.79
8.06
7.38
3.95
4.04
13.26
9.00
8.13
6.20
5.96
–
3.51
2.38
1.93
1.57
1.44
–
–
–
–
–
–
–
–
–
–
16.77
11.38
10.06
7.77
7.40
–
(b) Other Non-Executive Directors
Total
^ Post-employment benefits include gratuity R 55.04 crore
**Appointed w.e.f. July 1, 2017.
3.82
–
64.42 70.27
–
19.38
3.82
154.07
4.37
68.78
–
16.66
–
32.21
4.37
117.65
* Represents encashment of past service accumulated leave
*** Represents pension
330
331
Notes forming part of the Financial Statements (contd.)
NOTE [51] (contd.)
(d) Amount due to/from related parties (including commitments):
Sr.
No.
Category of balance/relationship/major parties
i.
Accounts receivable
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
L&T Seawoods 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
Krishnagiri Walajahpet Tollway Limited
Associate:
L&T-Chiyoda Limited
Total
ii.
Accounts payables, including other payables
Subsidiaries, including:
L&T Shipbuilding Limited
Hi-Tech Rock Products & Aggregates Limited
Larsen & Toubro (Oman) LLC
L&T Geostructure LLP
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Associates, including:
Feedback Infra Private Limited
Magtorq Private Limited
L&T-Chiyoda Limited
Total
iii.
Investment in debt securities
Subsidiaries, including:
L&T Shipbuilding Limited
Joint ventures:
L&T Special Steels and Heavy Forgings Private Limited
Kudgi Transmission Limited
L&T Infrastructure Development Private Limited
As at 31-3-2018
As at 31-3-2017
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
458.44
528.35
188.22
64.03
289.15
404.08
78.87
40.66
38.19
33.22
42.68
0.15
78.23
89.21
98.12
234.82
276.37
700.05
–
932.43
634.97
1844.04
0.15
747.74
771.22
1019.17
0.61
1.99
0.43
0.18
1791.00
2481.00
627.85
264.42
867.35
987.58
867.35
217.73
509.49
260.36
212.29
65.55
78.42
43.30
125.63
44.68
–
103.27
118.89
108.78
1171.07
605.53
1.27
0.57
605.10
–
–
264.42
331
330
Total
1854.93
892.27
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(d) Amount due to/from related parties: (contd.)
Sr.
No.
Category of balance/relationship/major parties
iv.
Loans and advances recoverable
Subsidiaries, including:
L&T Shipbuilding Limited
L&T Geostructure LLP
Nabha Power 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
Total
v.
Advances against equity contribution
Subsidiaries:
L&T Uttaranchal Hydropower Limited
L&T Metro Rail (Hyderabad) Limited
Total
vi.
Unsecured loans (including lease finance)
Subsidiaries, including:
L&T Hydrocarbon Engineering Limited
L&T Seawoods Limited
Total
As at 31-3-2018
As at 31-3-2017
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
2134.44
3199.61
763.09
223.11
615.10
1399.58
1621.11
1665.63
0.39
4.36
0.79
3755.94
4869.60
932.58
1587.64
1184.98
215.18
210.22
3.96
19.45
19.45
426.30
426.30
19.45
–
129.91
294.89
6.35
6.35
5.52
5.52
vii. Advances received in the capacity of supplier of goods/services
classified as “advances from customers” in the Balance Sheet
Subsidiaries, including:
74.69
90.12
L&T Metro Rail (Hyderabad) Limited
L&T Seawoods Limited
L&T Hydrocarbon Engineering Limited
Joint ventures, including:
L&T-MHPS Boilers Private Limited
Total
viii. Due to directors #:
(Key management personnel)
Mr. A. M. Naik
Mr. S. N. Subrahmanyan
Mr. R. Shankar Raman
Mr. Shailendra Roy
Mr. D. K. Sen
Mr. M. V. Satish
Mr. J. D. Patil
23.21
113.33
55.58
17.00
91.69
49.11
28.15
29.95
17.00
9.77
11.58
7.39
5.32
5.19
4.50
2.28
Total
49.11
55.58
–
6.35
5.52
–
73.15
21.54
18.24
11.29
7.41
5.84
4.93
4.32
–
332
333
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(d) Amount due to/from related parties: (contd.)
Sr.
No.
ix.
(a)
(i)
(b)
(i)
(c)
(i)
Category of balance/relationship/major parties
Post employment benefit plan
Trust managed provident fund
Amount due to:
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Total
Approved gratuity fund
Amount due to:
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
Superannuation trust
Amount due to:
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
Total
x.(a) Capital commitment given
Subsidiaries, including:
L&T Shipbuilding Limited
Larsen & Toubro Heavy Engineering LLC
L&T Construction Equipment Limited
L&T Technology Services Limited
L&T Hydrocarbon Engineering Limited
Joint venture:
L&T Special Steels and Heavy Forgings Private Limited
Total
x.(b) Revenue commitment given
Subsidiaries, including:
L&T Shipbuilding Limited
L&T Geostructure LLP
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Associates, including:
Feedback Infra Private Limited
L&T-Chiyoda Limited
Magtorq Private Limited
Total
As at 31-3-2018
As at 31-3-2017
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
9.02
9.02
45.05
45.05
6.74
6.74
84.39
0.13
84.52
8.38
36.31
8.75
6.74
47.25
33.59
0.13
10.63
10.63
61.75
61.75
7.79
7.79
8.93
–
8.93
1476.64
1660.62
1185.88
1205.16
3386.85
5.50
667.58
394.67
–
1.87
3.63
3.89
2687.30
5051.36
10.07
50.05
11.70
7.79
–
–
5.30
1.60
1.99
–
1260.35
290.20
2232.20
1086.15
0.80
0.96
2.13
333
332
Notes forming part of the Financial Statements (contd.)
NOTE [51]
(d) Amount due to/from related parties: (contd.)
Sr.
No.
xi.
Category of balance/relationship/major parties
Commitment to fund
Subsidiaries:
L&T Uttaranchal Hydropower Limited
L&T Metro Rail (Hyderabad) Limited
Total
xii.
Revenue commitment received
Subsidiaries, including:
L&T Metro Rail (Hyderabad) Limited
L&T Parel Project LLP
L&T Asian Realty Project LLP
L&T Construction Equipment Limited
Joint ventures, including:
L&T MBDA Missile Systems Limited
L&T Deccan Tollways Limited
L&T Infrastructure Development Projects Limited
Krishnagiri Walajahpet Tollway Limited
L&T Samakhiali Gandhidham Tollway Limited
L&T BPP Tollway Limited
Total
xiii. Capital commitment received
Subsidiary:
L&T Shipbuilding Limited
Total
xiv.
Provision for doubtful debts related to the amount of outstanding
balances
Subsidiaries, including:
Nabha Power Limited
L&T Electricals & Automation Saudi Arabia Company Limited LLC
Larsen & Toubro Heavy Engineering LLC
Joint ventures, including:
L&T-MHPS Boilers Private Limited
PNG Tollway Limited
Total
As at 31-3-2018
As at 31-3-2017
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
715.45
1063.20
715.45
1329.55
1063.20
2261.68
233.45
482.00
693.54
195.41
149.67
156.46
76.10
138.67
15.24
13.70
13.63
13.08
20.43
1405.65
2400.35
–
–
–
0.77
0.77
8.56
16.64
3.52
1.81
0.90
21.84
25.08
52.73
61.29
31.99
48.63
442.75
620.45
1396.43
397.04
237.62
–
25.95
60.00
26.27
0.77
2.46
9.06
25.08
“Major parties” denote entities account for 10% or more of the aggregate for that category of balance during respective period.
# Includes commission due to non-executive directors R 3.08 crore (as at 31-3-2017: R 3.55 crore).
Note: 1. All the related party contracts / arrangements have been entered on arms’ length basis.
2. The amount of outstanding balances as shown above are unsecured and will be settled/recovered in cash.
334
335
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
2017-18
2016-17
Basic earnings per share
Profit after tax as per accounts (R crore)
Weighted average number of equity shares outstanding
Basic EPS (R)
Diluted earnings per share
Profit after tax as per accounts (R 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
5387.30
1,40,06,13,951
38.46
5453.74
1,39,85,23,545
39.00
5387.30
1,40,06,13,951
35,69,417
5453.74
1,39,85,23,545
47,40,600
Weighted average number of equity shares outstanding for diluted EPS
Diluted EPS (R)
Face value per share (R)
D=B+C
A/D
1,40,41,83,368
38.37
2
1,40,32,64,145
38.86
2
The following potential ordinary 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
2017-18
2016-17
95,20,455
95,20,455
Note: The basic and diluted EPS and number of potential equity shares on account of conversion of foreign currency convertible bonds
for the year 2016-17 have been restated pursuant to the issue of bonus equity shares in the ratio of 1:2 (one bonus equity share of
R 2 each for every two equity share of R 2 each held).
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:
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
Name of the subsidiary company
Indian subsidiaries
L&T Cutting Tools Limited **
Bhilai Power Supply Company Limited
Spectrum Infotech Private Limited ^
L&T Shipbuilding Limited
L&T Electricals and Automation Limited
Hi-Tech Rock Products and Aggregates
Limited
L&T Seawoods Limited
Kesun Iron and Steel Company Private
Limited
9.
10.
11.
12.
L&T EWAC Alloys Limited *
L&T Geostructure LLP
L&T Valves Limited
L&T Realty Limited
Principal
place of
business
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
India
India
India
India
India
India
India
India
India
India
India
India
–
99.90
–
97.00
100.00
100.00
100.00
95.00
–
74.00
100.00
100.00
–
99.90
–
97.00
100.00
100.00
100.00
95.00
–
74.00
100.00
100.00
–
99.90
–
97.00
100.00
100.00
100.00
95.00
–
74.00
100.00
100.00
100.00
99.90
100.00
97.00
100.00
100.00
100.00
95.00
100.00
74.00
100.00
100.00
100.00
99.90
100.00
97.00
100.00
100.00
100.00
95.00
100.00
74.00
100.00
100.00
100.00
99.90
100.00
97.00
100.00
100.00
100.00
95.00
100.00
74.00
100.00
100.00
335
334
Notes forming part of the Financial Statements (contd.)
NOTE [53] (contd.)
Sr.
No.
Name of the subsidiary company
Indian subsidiaries
L&T Power Limited
13.
L&T Cassidian Limited%
14.
L&T Aviation Services Private Limited
15.
Larsen & Toubro Infotech Limited
16.
L&T Finance Holdings Limited
17.
L&T Capital Company Limited
18.
L&T Power Development Limited
19.
L&T Metro Rail (Hyderabad) Limited
20.
L&T Technology Services Limited
21.
L&T Construction Equipment Limited
22.
L&T Infrastructure Engineering Limited
23.
L&T Hydrocarbon Engineering Limited
24.
Seawoods Retail Private Limited %
25.
26.
Seawoods Realty Private Limited %
27. Marine Infrastructure Developer Private
Limited
Principal
place of
business
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
99.99
100.00
100.00
82.96
64.01
100.00
100.00
99.99
88.64
100.00
100.00
100.00
100.00
100.00
97.00
99.99
100.00
100.00
82.96
64.01
100.00
100.00
99.99
88.64
100.00
100.00
100.00
100.00
100.00
97.00
99.99
100.00
100.00
82.96
64.01
100.00
100.00
99.99
88.64
100.00
100.00
100.00
100.00
100.00
97.00
99.99
74.00
100.00
84.28
66.62
100.00
100.00
99.99
89.77
100.00
100.00
100.00
100.00
100.00
97.00
99.99
74.00
100.00
84.28
66.62
100.00
100.00
99.99
89.77
100.00
100.00
100.00
100.00
100.00
97.00
99.99
74.00
100.00
84.28
66.62
100.00
100.00
99.99
89.77
100.00
100.00
100.00
100.00
100.00
97.00
*
The Company has sold its stake on November 16, 2017
** The Company has sold its stake on September 27, 2017
^ Merged with the Company w.e.f. April 1, 2017
% Applied for strike off
Foreign subsidiaries:
Sr.
No.
1.
2.
3.
4.
Name of the subsidiary company
Foreign subsidiaries
Larsen & Toubro LLC
Larsen & Toubro Hydrocarbon International
Limited LLC
Larsen & Toubro (Saudi Arabia) LLC
L&T Global Holdings Limited
Associate companies:
Sr.
No.
1.
2.
Name of the associate company
Gujarat Leather Industries Limited @
Magtorq Private Limited
India
India
Principal
place of
business
USA
Kindgom of
Saudi Arabia
Kindgom of
Saudi Arabia
UAE
Principal
place of
business
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
Proportion
of direct
ownership (%)
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
Proportion
of effective
voting power
held (%)
95.24
90.00
99.19
100.00
99.19
100.00
95.24
90.00
100.00
100.00
100.00
100.00
4.35
100.00
100.00
4.35
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
50.00
42.85
Proportion
of direct
ownership
(%)
50.00
42.85
Proportion
of effective
voting power
held (%)
50.00
42.85
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
50.00
42.85
Proportion
of direct
ownership
(%)
50.00
42.85
Proportion
of effective
voting power
held (%)
50.00
42.85
@ Under liquidation
336
337
Notes forming part of the Financial Statements (contd.)
NOTE [53] (contd.)
Joint ventures:
Name of the joint venture
Principal place
of business
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
Krishnagiri Walajahpet Tollway Limited
Devihalli Hassan Tollway Limited
L&T Howden 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 MBDA Missile Systems Limited *
L&T-Sargent & Lundy Limited
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
As at 31-3-2018
As at 31-3-2017
Proportion of
direct
ownership
(%)
^
^
0.02
97.45
26.24
^
^
–
–
50.10
51.00
51.00
75.50
74.00
13.26
51.00
51.00
50.00
Proportion
of effective
ownership
Interest (%)
97.45
97.45
97.45
97.45
98.12
97.45
47.75
97.45
97.45
50.10
51.00
51.00
75.50
74.00
72.11
51.00
51.00
50.00
Proportion of
direct
ownership
(%)
^
^
0.02
97.45
26.24
^
^
^
0.01
50.10
51.00
51.00
75.50
74.00
13.26
51.00
–
50.00
Proportion
of effective
ownership
Interest (%)
97.45
97.45
97.45
97.45
98.12
97.45
47.75
97.45
97.45
50.10
51.00
51.00
75.50
74.00
72.11
51.00
–
50.00
* The joint venture is formed on April 05, 2017.
^ Proportion of direct ownership is less than 0.01%.
NOTE [54]
Disclosures pursuant to Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”
a) Movement in provisions:
Class of provisions
Particulars
Product
warranties
Expected tax
liability in
respect of
indirect taxes
Litigation
related
obligations
Balance as at 1-4-2017
Additional provision during the year
Provision used during the year
Unused provision reversed during the year
Additional provision for unwinding of interest and
change in discount rate
Transfer under scheme of arrangement
Balance as at 31-3-2018 (7=1+2+3+4+5+6)
21.25
23.72
(10.15)
(0.14)
0.29
0.50
35.47
181.89
36.24
(31.84)
(7.64)
–
–
178.65
8.22
–
–
–
0.49
–
8.71
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
336
Contractual
rectification
cost -
construction
contracts
263.34
153.64
–
(191.69)
–
–
v crore
Others
Total
–
17.99
–
–
–
–
474.70
231.59
(41.99)
(199.47)
0.78
0.50
225.29
17.99
466.11
337
Notes forming part of the Financial Statements (contd.)
NOTE [54]
Disclosures pursuant to Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets” (contd.)
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, 2018 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 2 to 4 years from the date of the 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.
NOTE [55]
Auditors’ remuneration (excluding service tax):
Sr.
No.
a.
Paid as Auditor
(i) Statutory audit fees
Particulars
(ii) Limited review of standalone and consolidated financial statements on a quarterly basis
b.
c.
d.
e.
For Taxation matters
For Company law matters
For Other services including certification work
For Reimbursement of expenses
NOTE [56]
v crore
2017-18
2016-17
1.90
1.50
0.46
0.30
0.52
0.20
2.45
1.30
0.48
0.25
0.58
0.27
Contribution to political parties during the year 2017-18 is R Nil (previous year: R Nil)
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, 2018. The disclosure pursuant to the said Act is as under:
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 (Section 16)
Interest due and payable to 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
2017-2018
2016-17
v crore
66.85
0.28
142.30
0.02
0.11
5.68
10.20
8.14
52.83
0.40
187.48
–
–
3.54
10.22
8.14
338
339
Notes forming part of the Financial Statements (contd.)
NOTE [58]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2018.
NOTE [59]
Disclosure in respect of joint operations:
I(a) Name of joint operation (with specific ownership interest in the arrangement):
Sr.
No.
Name of the joint operation
1. Desbuild L&T Joint Venture
Proportion
of ownership
interest %
49%
Principal
place of
business
India
2.
Larsen and Toubro Limited-Shapoorji
Pallonji & Co. Ltd. Joint Venture
50%
India
3. Al Balagh Trading & Contracting Co
W.L.L- L&T Joint Venture
L&T-AM Tapovan Joint Venture
4.
5. HCC-L&T Purulia Joint Venture
6.
International Metro Civil Contractors
Joint Venture
7. Metro Tunneling Group
8.
L&T-Hochtief Seabird Joint Venture
9. Metro Tunneling Chennai-L&T
Shanghai Urban Construction (Group)
Corporation Joint Venture
80%
65%
43%
26%
26%
90%
75%
Qatar
India
India
India
India
India
India
10. Metro Tunneling Delhi- L&T Shanghai
60%
India
11.
Urban Construction (Group)
Corporation Joint Venture
L&T-Shanghai Urban Construction
(Group) Corporation Joint Venture
CC27 Delhi
68%
India
12. Aktor-Larsen & Toubro-Yapi Merkezi-
22%
Qatar
STFA-Al Jaber Engineering Joint Venture
13. Civil Works Joint Venture
29%
Saudi Arabia
14.
L&T-Shanghai Urban Construction
(Group) Corporation Joint Venture
51%
India
15. DAEWOO and L&T Joint Venture
50%
India
Description of interest
Jointly Controlled Entity (Renovation of US
Consulate, Chennai).
Jointly Controlled Entity (Design & Build work
for Construction of TCS SEZ at Kolkata, West
Bengal).
Jointly Controlled Entity (Main Construction
Works for Al Rayyan Stadium and Precint).
Jointly Controlled Entity (Construction of Head
Race Tunnel for Tapovan Vishnugad Hydro
Electric project in Uttaranchal State).
Jointly Controlled Entity (Construction of
Pumped Storage Project).
Jointly Controlled Entity (Construction of Delhi
Metro Corridor Phase I Tunnel Project).
Jointly Controlled Entity (Construction of Delhi
Metro Corridor-Phase II Tunnel Project).
Jointly Controlled Entity (Construction of
breakwater, Karwar).
Jointly Controlled Entity (Construction of UG
Stations at Nehru Park, KMC and Pachiyappas
College and associated tunnels for CMRL).
Jointly Controlled Entity (Construction of Delhi
Metro Corridor- Tunnel Project-Phase-CC5).
Jointly Controlled Entity (Design and
Construction of Tunnel for Delhi MRTS Project
of Phase-III).
Jointly Controlled Entity (Contract for Design
& Build Package 3, Gold Line Underground, a
part of the construction of the Qatar integrated
Railway Project).
Jointly Controlled Entity (Contract for Detail
Design, Construction and Commissioning of
Package 2 of The Riyadh Metro Project).
Jointly Controlled Entity (Construction of Twin
Tunnel between IGI Airport and Sector 21 for
DMRC).
Jointly Controlled Entity (EPC for construction
of Greenfield six-Lane Extradosed Cable Bridge
over Ganga River).
338
339
Notes forming part of the Financial Statements (contd.)
NOTE [59] (contd.)
Sr.
No.
Name of the joint operation
16.
L&T–STEC JV MUMBAI
Proportion
of ownership
interest %
65%
Principal
place of
business
India
17.
L&T-ISDPL (JV)^^
18.
L&T-IHI Consortium^^^
19.
L&T-Eastern Joint Venture**
20.
21.
22.
Larsen and Toubro Limited-Scomi
Engineering BHD Consortium-Residual
Joint Works Joint Venture
Larsen and Toubro Limited-Scomi
Engineering BHD Consortium-O&M
Joint Venture
L&T- Inabensa Consortium***
100%
100%
65%
60%
India
India
UAE
India
50%
India
100%
India
23.
L&T-Delma Mafraq Joint Venture *
100%
UAE
24.
L&T-AL-Sraiya LRDP 6 Joint Venture
25.
Larsen & Toubro Limited & NCC Limited
Joint Venture
26. Besix-Larsen & Toubro Joint Venture
27.
Larsen & Toubro Ltd - Passavant Energy
& Environment JV ^
75%
55%
50%
50%
Qatar
India
Dubai
India
28.
LNT-Shriram EPC Tanzania UJV%
90%
Tanzania
29.
LTH Milcom Private Limited
56.67%
India
* As at March 31, 2017, proportion of ownership interest was 60%
**The joint operation is in the process of liquidation
^ The joint operation has been formed on October 12, 2016
^^ The joint operation has been formed on December 1, 2017
^^^ The joint operation has been formed on July 14, 2017
*** The joint operation has been formed on April 25, 2016
% The joint operation has been formed on December 25, 2016
Description of interest
Jointly Controlled Entity (Design and
Construction of Underground Section including
Three Underground Stations at Marol Naka,
MIDC and SEEPZ and Associated Tunnels).
Jointly Controlled Entity (Construction of Inner
Harbour for Project Varsha at Visakapatanam).
Jointly Controlled Entity (Construction of
Mumbai Trans Harbour Link Project Package 1
& Package).
Jointly Controlled Entity (Construction and
maintenance of 295 Residential Units at Dubai).
Jointly Controlled Entity (Implementation of
residual joint works for monorail system in
Mumbai).
Jointly Controlled Entity (Operation and
Maintenance of monorail system).
Jointly Controlled Entity (Design, Supply,
Construction, Installation, Testing and
Commissioning for Mughalsarai - New Bhaupur
Section of EDFC Electrical Works).
Jointly Controlled Entity (Improvement of
Mafraq to AL Ghwaifat Border Post Highway
Section No.4A).
Jointly Controlled Entity (Execution of the Roads
and Infrastructure in Doha Industrial Area).
Jointly Controlled Entity (Supply and
construction of 2 parallel 2100 mm diameter
steel gravity mains conduit pipes from Palra to
Bhureka).
Jointly Controlled Entity (DS 150/2 Jabel Ali
Sewage Treatment Plant Phase 2).
Jointly Controlled Entity (Construction of
318MLD Wastewater Treatment Plant with 10
years O&M at Coronation Pillar, Delhi).
Jointly Controlled Entity (Extension of Lake
Victoria Pipeline to Tabora, Nzega and Igunga
Towers, Tanzania).
Jointly Controlled Entity.
340
341
Notes forming part of the Financial Statements (contd.)
NOTE [59] (contd.)
I(b) Financial interest in joint operation (to the extent of Company’s share):
Sr. No.
Name of the joint operation
Year
Company’s share
For the year
v crore
Total tax
Profit
after tax
Other
Comprehensive
Income
Total
Comprehensive
Income
1.
2.
3.
4.
5.
6.
7.
8.
9.
Desbuild L&T Joint Venture
Larsen and Toubro Limited-Shapoorji
Pallonji & Co. Ltd. Joint Venture
Al Balagh Trading & Contracting Co
W.L.L- L&T Joint Venture
L&T - AM Tapovan Joint Venture
HCC - L&T Purulia Joint Venture
International Metro Civil Contractors
Joint Venture
Metro Tunneling Group
L&T - Hochtief Seabird Joint Venture
Metro Tunneling Chennai-L&T
Shanghai Urban Construction
(Group) Corporation Joint Venture
10. Metro Tunneling Delhi- L&T
Shanghai Urban Construction
(Group) Corporation Joint Venture
L&T-Shanghai Urban Construction
(Group) Corporation Joint Venture
CC27 Delhi
Aktor- Larsen & Toubro-Yapi
Merkezi-STFA-Al Jaber Engineering
Joint Venture
Civil Works Joint Venture
L&T-Shanghai Urban Construction
(Group) Corporation Joint Venture
11.
12.
13.
14.
15.
DAEWOO and L&T Joint Venture
16.
L&T – STEC JV MUMBAI
17.
18.
19.
L&T- ISDPL (JV)
L&T-IHI Consortium
L&T-Eastern Joint Venture
340
As at period end
Total
Assets
Total
Liabilities
Total
Income
0.053
0.647
26.753
29.329
532.638
275.057
141.500
143.338
2.966
6.572
9.766
9.743
11.457
11.461
23.831
74.326
87.298
94.692
(0.592)
0.002
57.636
59.847
531.469
273.330
183.162
184.982
(0.906)
2.688
10.110
10.079
0.755
1.207
(50.477)
0.005
121.548
127.633
–
–
1.174
(7.822)
626.043
188.727
0.503
–
–
–
0.059
0.047
0.753
0.870
–
–
27.249
40.015
Total
Expense
excluding
tax
0.001
0.001
1.539
7.643
626.603
186.944
0.520
0.692
0.013
0.008
0.048
0.018
0.021
0.066
0.013
(0.251)
29.078
74.094
54.269
99.376
55.786
93.108
2.593
58.266
10.377
52.606
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
–
–
–
–
–
–
–
–
–
–
0.018
(0.001)
0.285
0.312
–
0.089
–
0.319
–
0.036
–
0.069
(0.001)
(0.001)
(0.365)
(15.465)
(0.560)
1.783
(0.017)
(0.692)
(0.013)
(0.008)
(0.007)
0.030
0.447
0.492
(0.013)
0.162
(1.829)
(34.398)
(7.784)
5.624
(56.020)
(74.950)
2017-18
2016-17
94.892
169.850
221.616
240.545
50.094
46.692
106.114
121.573
2017-18
2016-17
491.395
588.525
489.967
587.509
997.411
1007.766
997.008
1006.718
–
–
0.403
1.048
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2017-18
2017-18
2016-17
1717.123
1792.328
14.272
13.958
150.957
28.615
534.150
179.030
32.907
45.023
17.696
17.740
1500.921
1620.490
6.334
6.365
150.195
28.612
526.782
180.016
32.907
45.023
18.156
12.528
1901.446
2238.447
0.551
0.582
96.439
23.172
388.537
109.656
18.314
71.707
0.027
0.010
1573.576
1880.248
0.011
0.215
95.037
23.168
375.696
110.643
18.314
71.707
5.699
(0.026)
–
–
0.194
0.135
0.643
0.001
4.486
–
–
–
–
–
327.870
358.199
0.346
0.232
0.759
0.003
8.355
(0.987)
–
–
(5.672)
0.036
–
–
–
–
0.003
(0.056)
–
–
–
–
–
–
–
–
–
–
0.520
(0.510)
–
–
(0.009)
(0.074)
0.010
(0.033)
4.332
(16.597)
–
–
–
–
–
–
–
–
–
–
(0.001)
(0.001)
(0.365)
(15.465)
(0.557)
1.727
(0.017)
(0.692)
(0.013)
(0.008)
(0.007)
0.030
0.447
0.492
(0.013)
0.162
(1.309)
(34.908)
(7.784)
5.624
(56.029)
(75.024)
0.413
1.015
332.202
341.602
0.346
0.232
0.759
0.003
8.355
(0.987)
–
–
(5.672)
0.036
341
Notes forming part of the Financial Statements (contd.)
NOTE [59] (contd.)
Sr. No.
Name of the joint operation
Year
20.
21.
22.
23.
Larsen and Toubro Limited-Scomi
Engineering BHD Consortium-
Residual Joint Works Joint Venture
Larsen and Toubro Limited-Scomi
Engineering BHD Consortium-O&M
Joint Venture
L&T- Inabensa Consortium
L&T-Delma Mafraq Joint Venture
24.
L&T-AL-Sraiya LRDP 6 Joint Venture
25.
26.
27.
28.
29.
Larsen & Toubro Limited & NCC
Limited Joint Venture
Besix - Larsen & Toubro Joint
Venture
Larsen & Toubro Ltd - Passavant
Energy & Environment JV
LNT-Shriram EPC Tanzania UJV
LTH Milcom Private Limited
Total
2017-18
2016-17
2017-18
2016-17
2017-18
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2017-18
2016-17
2017-18
2016-17
As at period end
Total
Assets
Total
Liabilities
Total
Income
8.995
2.904
7.591
10.805
30.923
325.673
266.412
275.208
214.439
65.194
68.326
254.207
110.947
22.756
2.615
172.037
0.052
0.064
5151.582
4211.099
0.500
(5.969)
41.011
36.575
31.270
401.918
278.457
250.604
190.135
39.595
42.686
227.628
110.947
23.290
2.615
171.898
0.011
0.012
5088.117
4084.404
0.813
8.533
4.512
7.611
23.263
635.825
343.945
279.741
264.506
13.312
159.325
402.949
64.889
29.978
1.521
89.469
–
–
5662.762
4556.758
Company’s share
For the year
v crore
Total
Expense
excluding
tax
1.191
1.794
12.162
11.660
23.610
699.959
387.295
279.569
239.370
13.316
140.235
376.649
64.889
30.513
1.521
89.331
0.012
0.013
5437.687
4311.137
Total tax
Profit
after tax
Other
Comprehensive
Income
Total
Comprehensive
Income
–
–
–
–
–
–
–
–
–
0.037
7.727
–
–
–
–
–
–
–
5.663
8.687
(0.378)
6.739
(7.650)
(4.049)
(0.347)
(64.134)
(43.350)
0.172
25.136
(0.041)
11.363
26.300
–
(0.535)
–
0.138
(0.012)
(0.013)
219.412
236.934
–
–
–
–
–
(0.067)
–
0.128
–
–
–
0.278
–
–
–
0.001
–
–
5.196
(17.27)
(0.378)
6.739
(7.650)
(4.049)
(0.347)
(64.201)
(43.350)
0.300
25.136
(0.041)
11.363
26.578
–
(0.535)
–
0.139
(0.012)
(0.013)
224.608
219.664
II
Joint operation (with specific ownership of activity carried out through the arrangement):
Sr.
No.
1.
Name of the joint operation
L&T Sojitz Consortium
Principal place
of business
India
2.
L&T-KBL (UJV) Hyderabad
3.
L&T-KBL-MAYTAS UJV
4. Mallanna Sagar Reservoir
LnT-Prasad-RK Infra JV^
5.
6.
Larsen & Toubro Limited
Waterleau Consortium
L&T-BRAPL JV (package II)
India
India
India
Qatar
India
Description of the interest
Design and construction of Special Bridge across Narmada River
Structure for Dedicated Freight Corridor Corporation.
Jointly Controlled Operations (Investigation, Design, Supply and
Erection of necessary lift systems with all electrical and mechanical
components including surge protection systems).
Jointly Controlled Operations (Transmission of 735 Mld treated water
associated with all Civil, Electrical & Mechanical works at Hyderabad).
Jointly Controlled Operations (Construction of Reservoir of 50 TMC,
formation of earth bund with all associated components for Reach 2
and adjoining Reach 3).
Construction of Sewage Treatment Plant of 7.5 MLD at Alshamal.
Jointly Controlled Operations (Design, Supply, Erection, Testing &
Commissioning of 25 KV, 50HZ, Single Phase, Traction Over-head
Equipment, Switching Stations, SCADA and other associated works,
in the state of Karnataka and Andhra Pradesh, India.).
342
343
Notes forming part of the Financial Statements (contd.)
NOTE [59] (contd.)
Sr.
No.
7.
Name of the joint operation
L&T-BRAPL JV (package III)
Principal place
of business
India
8.
IIS-L&T Consortium
India
Description of the interest
Jointly Controlled Operations (Design, Supply, Erection, Testing &
Commissioning of 25 KV, 50HZ, Single Phase, Traction Over-head
Equipment, Switching Stations, and other associated works, in the
state of Karnataka and Andhra Pradesh, India.).
Design & Construction of 8 Special Steel Bridges over water main
and Railways and across creek & rivers including Ulhas Damanganga,
Par & Tapi rivers, involving Bridge Structure , approaches in
formation in embankments with 1 Major Bridge , 3 Minor Bridges
and 1 RUB, guide bunds and protection works including testing
and commissioning on Design-Build Lumpsum price basis for JNPT
Vadodara Section of Western Dedicated Freight Corridor (Phase-2).
Construction of Medigadda Barrage.
Dredging, Reclamation, Revetment, Quarrying and NAV Aids for
project Sea-Bird, Phase- IIA at Naval Base, Karwar.
Salalah Airport Project.
Construction of 400KV Underground cable line and OHL from 400
KV Sohar IPP 3 GS to 400 KV Sohar Free Zone.
Construction of new 400KV OHL from IBRI to IZKI and 400 KV
reactors.
Construction of 400/132 KV Grid stations at Qabel and Associated
works.
DC of ST Works for Double Line Rly involving TD Syst EI Aut. Sig.
TMS Interlocking of LC Gates Dispatch Tel. Sys FOCS GSM(R) Dig.
Elec.Ex. Syst Master Clock Syst for JNPT VADODARA Sec.-422 KM
including TC on Design-Build LS Basis of WDFC Phase 2.
Civil Building And Track Works Contract Ctp-14.
Design Supply Installation Testing and Commissioning of 2x25
kv Overhead Equipments Traction Sub-Stations Auxiliary Stations
Switching Stations Auto Transformer Stations and SCADA System on
Design-Build Lump Sum Price Basis for JNPT -Makarpur section.
Civil Building And Track Works Contract Package- 3 (R).
Malaysia
Execution of 500 KV Transmission Line Tender in Malaysia.
India
RLBU - Mumbai Monorail Project.
India
Design Supply Installation Testing and Commissioning of 2x25
kv Overhead Equipments Traction Sub-Stations Auxiliary Stations
Switching Stations Auto Transformer Stations and SCADA System on
Design-Build Lump Sum Price Basis for Rewari- Makarpura.
India
India
Oman
Oman
Oman
Oman
India
India
India
India
9.
10.
11.
12.
PES Engg P ltd-L&T Consortium
L&T ISDPL-DI (JV)^^
L&T Galfar Consortium
L&T Oman-L&T consortium
13.
L&T Oman-L&T consortium
14.
L&T Oman-L&T consortium
15.
Sojitz Corporation-L&T
consortium
16.
17.
18.
19.
20.
21.
Sojitz Corporation-L&T
consortium
Sojitz Corporation-L&T
consortium
Sojitz Corporation-Gayathri
Projects Ltd-L&T consortium
PESB and Larsen & Toubro Joint
Venture
Scomi Engineering Bhd-L&T
consortium
Sojitz Corporation-L&T
consortium
342
343
^ The joint operation has been formed on October 11, 2017
^^ The joint operation has been formed on August 1, 2017
Notes forming part of the Financial Statements (contd.)
NOTE [60]
Disclosure pursuant to Ind AS 103 “Business Combinations”:
During the year Spectrum Infotech Private Limited (SIPL), a wholly owned subsidiary, was merged with the Company under a scheme
of amalgamation approved by National Company Law Tribunal on March 27, 2018. The merger is effective from the appointed date
April 1, 2017. SIPL has a registered office in Bengaluru, India and is engaged in the business of Manufacture of Electronic Systems and
Sub-systems.
No fresh shares are issued to effect the merger as SIPL is wholly owned subsidiary of the Company. Further the merger is accounted
using pooling of interest method, involving the following:
a.
The assets and liabilities of SIPL are reflected at their carrying amounts. No adjustment is made to reflect the fair values, or
recognise any new asset or liability.
b.
The financial information in the financial statements of the Company is restated from the effective date April 1, 2017.
c.
d.
e.
The balance of the retained earnings appearing in the financial statements of the SIPL is aggregated with the corresponding
balance appearing in the financial statements of the Company.
The identity of General Reserve and Securities Premium is preserved and is appearing in the financial statements of the Company in
the same form in which they appeared in financial statements of SIPL; and
The excess of amount of investment by the Company in SIPL over the share capital of SIPL is treated as capital reserve in
Company’s financial statements and the same is presented separately from other capital reserves [refer to Note 18].
NOTE [61]
Disclosure pursuant to Ind AS 20 “Accounting for Government Grants and Disclosure of Government Assistance”:
The Company’s exports qualify for various export benefits offered in the form of duty credit scrips under foreign trade policy framed
by Department General of Foreign Trade India (DGFT). Income accounted towards such export incentives amounts to R 111.04 crore
(previous year: R 27.23 crore).
NOTE [62]
Disclosure pursuant to Ind AS 7 “Statement of Cash Flows” - Changes in liabilities arising from financing activities:
Sr.
No.
1
2
3
4
5
6
Particulars
Opening balance
Changes from financing cash flows
The effect of changes in foreign
exchange rates
Interest accrued
Other changes (transfer within
categories)
Closing balance
Non-current
borrowings
(Note 19)
Current borrowings
(Note 23)
Current maturities
of long term
borrowings
(Note 24)
7134.28
(770.63)
10.06
57.72
(936.27)
2312.50
1783.81
32.62
0.64
–
1111.59
(1100.79)
(10.80)
–
936.27
v crore
Total
10558.37
(87.61)
31.88
58.36
–
5495.16
4129.57
936.27
10561.00
344
345
Notes forming part of the Financial Statements (contd.)
NOTE [62] (contd.)
Amounts reported in the Statement of Cash Flows under financing activities:
Particulars
Proceeds from non-current borrowings
Repayment of non-current borrowings
(Repayments)/proceeds from other borrowings (net)
Total changes from financing cash flows (refer to Sr. No. 2 above)
NOTE [63]
v crore
Amounts reported in statement of cash
flows
1922.70
(3794.12)
1783.81
(87.61)
Disclosure pursuant to Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” on new Ind AS that has been issued
but is not effective as of the closing day of the reporting period:
A.
Ind AS 115 “Revenue from Contracts with Customers”
The Ministry of Corporate Affairs notified Ind AS 115 “Revenue from Contracts with Customers” in respect of accounting periods
commencing on or after April 1, 2018, superseding Ind AS 11 “Construction Contracts” and Ind AS 18 “Revenue”.
The Company’s current revenue recognition policy is broadly aligned to the principles enunciated in Ind AS 115 and does not
require any material change except for realty business. In terms of Ind AS 115, revenue of realty business will be recognised at the
time of delivery of units to the customers as compared to revenue recognition based on percentage completion method currently
followed as per the Guidance note issued by the Institute of Chartered Accountants of India. The management is in the process of
implementing Ind AS 115 and does not expect any material impact on the Company’s financial position as at March 31, 2018 and
on the financial results of the Company in the first year of implementation viz. financial year commencing on April 1, 2018 except
as above.
B.
Ind AS 21 “The Effects of Changes in Foreign Exchange Rates”
On March 28, 2018, the Ministry of Corporate Affairs notified Companies (Indian Accounting Standards) Amendment Rules, 2018
and inserted Appendix B, Foreign Currency Transactions and Advance Consideration in Ind AS 21.
In Appendix B, it is clarified that the date of transaction to determine the exchange rate to use on initial recognition of related
asset, expense or income is the date on which the initial recognition of the non-monetary asset or non-monetary liability arising
from the payment or receipt of advance consideration.
The company’s existing accounting policy conforms to the above clarification.
NOTE [64]
Figures for the previous year have been regrouped/re-classified to conform to the figures of the current year.
344
345
NOTES
346
PB
Consolidated Financial Statements 2017-18
DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Indiabulls Finance Centre, Tower 3
27th – 32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
Mumbai 400 013.
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”), which includes Group’s share of
profit/ loss in its associates and its joint ventures and which also includes 31 joint operations of the Group accounted on a proportionate
basis, comprising the Consolidated Balance Sheet as at March 31, 2018, 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”).
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, associates and joint ventures in
accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. The respective Board
of Directors of the companies included in the Group and of its joint operations, associates and joint ventures are responsible for the
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, associates and joint ventures 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 consolidated Ind AS 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
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.
347
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/financial information of the joint operations, subsidiaries, associates
and joint ventures 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 Ind AS and other
accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its joint operations, associates and
joint ventures as at March 31, 2018, and their consolidated profit, consolidated total comprehensive income, consolidated 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 information of 27 joint operations included in the standalone
financials of the respective entities of the Group whose financial information reflect total assets of R 4,801.11 crore as at March
31, 2018 and total revenues of R 5,459.95 crore and net cash inflows amounting to R 189.64 crore for the year ended on the
date. The financial information of these joint operations have been audited by other auditors whose reports have been furnished
to us by the Management and our opinion in so far as it relates to the amounts and disclosures included in respect of these
joint operations, and our report in terms of 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 reports of such other auditors.
(b) The consolidated Ind AS financial statements include the financial information of 73 subsidiaries, whose financial information
reflect total assets of R 1,07,664.88 crore as at March 31, 2018, total revenues of R 43,824.89 crore and net cash inflows
amounting to R 1,875.64 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 total loss after
tax (net) of R 559.98 crore and total comprehensive loss (net) of R 540.58 crore for the year ended March 31, 2018, as considered
in the consolidated Ind AS financial statements, in respect of 2 associates and 13 joint ventures, whose financial information
have not been audited by us. The financial information of these subsidiaries, associates and joint ventures 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, associates and joint
ventures, 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,
associates and joint ventures, is based solely on the reports of such other auditors.
(c) The consolidated Ind AS financial statements include the financial information of 3 joint operations whose financial information
reflect total assets of R 34.28 crore as at March 31, 2018, and total revenues of R 5.32 crore and net cash outflows amounting to
R Nil for the year ended on the date. The financial information of these joint operations is unaudited and has 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, is based solely on such unaudited financial information. In our opinion and
according to the information and explanations given to us by the Management, the financial information of these joint operations
is not material to the Group.
(d) The consolidated Ind AS financial statements include the financial information of 20 subsidiaries, whose financial information
reflect total assets of R 84.67 crore as at March 31, 2018, total revenue of R 61.95 crore and net cash inflows amounting to
R 20.31 crore for the year ended on that date, as considered in the consolidated Ind AS financial statements which have not been
audited by their auditors. The consolidated Ind AS financial statements also include the Group’s share of profit after tax (net)
of R 1.36 crore and total comprehensive income (net) of R 1.38 crore for the year ended March 31, 2018, as considered in the
consolidated Ind AS financial statements, in respect of 5 associates and 2 joint ventures, whose financial information have not
been audited by us. These financial 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, associates and joint ventures, is based solely on such unaudited financial information. In our opinion and according to
the information and explanations given to us by the Management, the financial information of these subsidiaries, associates and
joint ventures are not material to the Group.
(e) The audit of the consolidated financial information for the year ended March 31, 2017 was carried out by us jointly with another
firm of chartered accountants, and the report had expressed unmodified opinion in relation thereto.
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 other auditors and the
financial information certified by the Management.
348
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 reports of the other auditors on the
financial information of joint operations, subsidiaries, associates and joint venture 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 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, 2018 taken on record by the
Board of Directors of the Parent and the reports of the statutory auditors of its joint operations companies, subsidiary companies,
associate companies and joint venture companies incorporated in India, none of the Directors of the Group companies, its joint
operations, associate companies and joint venture companies incorporated in India is disqualified as on March 31, 2018 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, subsidiary
companies, joint operation companies, associate companies and joint venture companies incorporated in India. Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of 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
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 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; and
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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 28, 2018
349
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,
2018, we have audited the internal financial controls over financial reporting of LARSEN & TOUBRO LIMITED (hereinafter referred
to as “Parent”) and its subsidiary companies (hereinafter referred to as the “Group”), which includes internal financial controls over
financial reporting of its joint operations, its joint ventures and its associate companies, which are companies incorporated in India, as
of that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Parent, its subsidiary companies, its joint operations, 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 (the “Guidance Note”)
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 issued by 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
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 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 its 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
350
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 other auditors referred to in the Other Matters paragraph below, the Parent, its subsidiary companies, its joint operations,
its joint ventures and its 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, 2018, 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 35 subsidiary companies, 1 joint operation, 12 joint venture companies and 2 associate
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 5 subsidiary companies, and 2 associate companies, which are companies incorporated
in India, whose financial information is unaudited, and is based solely on the Management’s representations provided to us and our
opinion on the adequacy and operating effectiveness of the internal financial controls over financial reporting of the Group is not
affected as the financial information of such entities is not material to the Group.
Our opinion is not modified in respect of the above matters with respect to our reliance on the work done and the reports of other
auditors and the financial information certified by the Management.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
P. R. RAMESH
(Partner)
(Membership No. 70928)
MUMBAI, May 28, 2018
351
Consolidated Balance Sheet as at March 31, 2018
Note
As at 31-3-2018
v crore
v crore
As at 31-3-2017
v crore
v crore
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)
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
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
11232.97
1944.71
3613.26
1398.66
432.22
11353.23
54931.64
1736.15
3697.51
4139.74
10642.04
2143.07
4345.86
1561.78
2030.51
11300.36
70071.77
2131.98
4587.74
4847.80
2487.59
3359.47
1793.85
61816.54
614.32
9464.25
34654.08
6834.34
1198.19
559.72
26448.01
4194.59
2772.90
2679.90
1487.38
47133.86
857.60
14300.22
28688.97
3526.87
1779.09
486.45
24927.38
3286.34
83353.18
46524.83
1512.43
245053.35
76995.32
39056.82
1649.37
212181.60
352
Consolidated Balance Sheet as at March 31, 2018 (contd.)
EQUITY AND LIABILITIES:
Equity
Equity share capital
Other equity
Note
As at 31-3-2018
v crore
v crore
As at 31-3-2017
v crore
v crore
20
21
280.27
55376.72
186.59
50029.93
Equity attributable to owners of the Company
Non-controlling interest
55656.99
5625.00
50216.52
3563.60
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
22
23
72914.76
353.95
67340.58
226.09
24
50(d)
25
26
27
28
29
30
31
52
19331.85
15277.47
37794.96
4848.99
73268.71
523.54
637.92
67.97
77253.27
27326.97
2483.75
747.26
1461.97
16534.47
10078.90
30294.86
4828.64
67566.67
526.60
610.95
172.14
61736.87
23384.55
2667.81
240.29
1495.60
TOTAL EQUITY AND LIABILITIES
245053.35
212181.60
CONTINGENT LIABILITIES
COMMITMENTS (capital and others)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
32
33
1 to 65
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
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
VIKRAM SINGH MEHTA
(DIN 00041197)
N. HARIHARAN
Company Secretary
M. No. A3471
Mumbai, May 28, 2018
Directors
SUNITA SHARMA
(DIN 02949529)
SANJEEV AGA
(DIN 00022065)
353
Consolidated Statement of Profit and Loss for the year ended March 31, 2018
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
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
Less: Overheads capitalised
Total expenses
Profit before exceptional items and tax
Exceptional items
Profit before tax
Tax expense:
Current tax
Deferred tax (net)
Note
34
35
36
37
38
39
42
Profit after tax
Add: Share in profit/(loss) of joint ventures/associates (net)
55(f)
Profit for the year
Other comprehensive income
A.
Items that will not be reclassified to profit or loss:
Re-measurements of the net defined benefit Plans
Income tax on re-measurements of the net defined benefit Plans
B.
Items that will be reclassified to profit or loss:
Debt instruments through other comprehensive income
Income tax on debt instruments through other comprehensive income
Foreign currency translation reserve
Income tax on foreign currency translation reserve
Carried forward - Other comprehensive income
354
2017-18
2016-17
v crore
v crore
v crore
v crore
119862.10
1412.03
121274.13
110011.00
1344.11
111355.11
15377.21
178.94
24057.20
1357.76
2384.91
24639.02
(1230.19)
10520.74
6019.74
14320.98
699.19
20716.99
1610.57
2090.42
22560.54
84.00
10595.04
5362.09
83305.33
15292.48
7698.10
1538.52
1928.73
109763.16
5.19
109757.97
11516.16
123.00
11639.16
3198.87
8440.29
(435.86)
8004.43
78039.82
13853.97
6988.24
1338.73
2369.93
102590.69
1.51
102589.18
8765.93
121.43
8887.36
2006.59
6880.77
(395.27)
6485.50
34.84
(5.47)
(45.48)
(2.05)
97.61
0.49
(31.30)
5.95
29.37
(25.35)
(5.33)
(1.08)
(133.12)
2.29
(6.41)
(130.83)
(162.59)
(47.53)
98.10
79.94
50(a)
50(a)
3732.27
(533.40)
2834.35
(827.76)
Consolidated Statement of Profit and Loss for the year ended March 31, 2018 (contd.)
Brought forward - Other comprehensive income
Effective portion of gains and losses on hedging instruments in a
cash flow hedge
Income tax on effective portion of gains and losses on hedging
instruments in a cash flow hedge
Cost of hedging reserve
Income tax on cost of hedging reserve
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 (R)
Diluted earnings per equity share (R)
Face value per equity share (R)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
49
49
1 to 65
2017-18
Note
v crore
v crore
79.94
2016-17
v crore
555.83
v crore
(162.59)
91.06
(8.38)
1.16
(0.52)
(218.59)
82.68
337.24
4.17
(1.04)
0.64
163.26
8167.69
7369.86
634.57
8004.43
162.33
0.93
163.26
7532.19
635.50
8167.69
52.62
52.49
2.00
3.13
177.78
6663.28
6041.23
444.27
6485.50
146.38
31.40
177.78
6187.61
475.67
6663.28
43.20
43.05
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
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
VIKRAM SINGH MEHTA
(DIN 00041197)
N. HARIHARAN
Company Secretary
M. No. A3471
Mumbai, May 28, 2018
Directors
SUNITA SHARMA
(DIN 02949529)
SANJEEV AGA
(DIN 00022065)
355
Consolidated Statement of Changes in Equity for the year ended March 31, 2018
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
Add: Bonus shares allotted during the year
Issued, subscribed and fully paid up equity shares outstanding at the end
of the year
2017-18
2016-17
Number of
shares
93,29,65,803
16,38,898
46,67,64,755
v crore
186.59
0.33
93.35
Number of
shares
93,14,78,845
14,86,958
–
v crore
186.30
0.29
–
1,40,13,69,456
280.27
93,29,65,803
186.59
B. Other equity
Particulars
Equity
component
of Foreign
currency
convertible
bonds
Reserves and surplus
Capital
reserve
Securities
premium
account
Capital
Redemp-
tion
Reserve
Employee
share
options
(net)
Statutory
Reserves
Retained
Earnings
v crore
Total
Non–
controlling
interest
Items of other comprehensive income Total Other
Equity
Hedging
reserve
Foreign
currency
translation
reserve
Debt
instruments
through
Other
Comprehen-
sive Income
153.20
280.40
– 8164.72
282.22
2659.30
31724.59
609.59
44.01
76.03 43994.06
2892.84 46886.90
Balance as at 1-4-2016
Profit for the year (a)
Other comprehensive income (b)
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)
Depreciation charged against retained
earnings (net of deferred tax)
Dividend paid for previous year
Additional tax on dividend paid for the
previous year
Net gain/loss on transaction with
non-controlling interest
Increase in non-controlling interest due to
dilution/ divestment/acquisition
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.12)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
154.18
(0.05)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(21.86)
83.00
(61.14)
42.89
–
–
–
–
–
–
–
–
–
(0.30)
(1701.51)
–
(368.49)
–
1721.66
–
–
6041.23
–
–
–
6041.23
444.27
6485.50
(20.72)
(131.35)
303.51
(5.06)
146.38
31.40
177.78
6020.51
(131.35)
303.51
(5.06)
6187.61
475.67
6663.28
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
154.18
(0.05)
(0.12)
–
–
–
–
–
154.18
(0.05)
(0.12)
–
42.89
19.96
62.85
(0.30)
–
(0.30)
– (1701.51)
(92.14)
(1793.65)
–
(368.49)
–
(368.49)
–
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
356
Consolidated Statement of Changes in Equity for the year ended March 31, 2018 (contd.)
Particulars
Share
application
money
pending
allotment
Equity
component
of Foreign
currency
convertible
bonds
Reserves and surplus
Capital
reserve
Securities
premium
account
Capital
Redemp-
tion
Reserve
Employee
share
options
(net)
Statutory
Reserves
Retained
Earnings
v crore
Total
Non–
controlling
interest
Items of other comprehensive income Total Other
Equity
Hedging
reserve
Foreign
currency
translation
reserve
Debt
instruments
through
Other
Comprehen-
sive Income
153.20
–
280.28
–
– 8318.85
–
–
303.25
–
2742.30
–
37335.32
7369.86
478.24
–
347.52
–
70.97 50029.93
7369.86
–
3563.60 53593.53
8004.43
634.57
23.56
94.43
90.53
(46.19)
162.33
0.93
163.26
7393.42
94.43
90.53
(46.19)
7532.19
635.50
8167.69
Balance as at 1-4-2017
Profit for the year (c )
Other comprehensive
income (d)
Total comprehensive
income for the year (c+d)
Issue of equity shares
Transfer to non- financial
assets/liabilities
Share issue expenses
Impact of business
combination
Transfer from/(to) retained
earnings during the year
Employee share options (net)
Utilised for issue of bonus
shares
Dividend paid for the previous
year
Additional tax on dividend
paid for the previous year
Share application money
received during the year
Net gain/loss on transactions
with non-controlling interest
Increase in non-controlling
interest due to dilution/
divestment/acquisition
–
–
–
–
–
–
–
–
–
–
–
–
–
3.56
–
–
–
–
–
–
–
–
–
–
–
(4.20)
–
–
–
–
–
137.63
–
–
–
–
(0.13)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
42.00
–
0.02
–
(21.30)
31.61
610.61
–
(631.33)
–
–
(93.35)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1960.76)
–
(441.05)
–
–
–
113.83
–
27.74
–
–
–
–
–
–
–
–
–
–
–
–
–
–
137.63
–
137.63
(0.28)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.28)
(0.13)
(4.20)
–
(0.28)
(0.13)
–
(4.20)
–
31.61
–
5.57
–
37.18
–
(93.35)
–
(93.35)
– (1960.76)
(151.20) (2111.96)
–
(441.05)
–
(441.05)
–
3.56
–
3.56
–
113.83
(113.83)
–
–
27.74
1685.36
1713.10
Balance as at 31-03-2018
3.56
153.20
276.08
42.00 8363.02
313.56
3352.91
41837.17
572.67
437.77
24.78 55376.72
5625.00 61001.72
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
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
VIKRAM SINGH MEHTA
(DIN 00041197)
N. HARIHARAN
Company Secretary
M. No. A3471
Mumbai, May 28, 2018
Directors
SUNITA SHARMA
(DIN 02949529)
SANJEEV AGA
(DIN 00022065)
357
Consolidated Statement of Cash Flows for the year ended March 31, 2018
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 and investment property (net)
(Profit)/loss on sale/fair valuation of investments (net)
(Profit)/loss on sale of stake in subsidiary companies of Realty Segments
(Gain)/loss on derivatives at fair value through profit or loss
Employee stock option-discount forming part of employee benefits expense
Gain on settlement of debt
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 given to associates, joint ventures and third parties
Deposits/loans repaid by associates, joint ventures and third parties
Interest received
Dividend received from associates
Dividend received from other investments
Consideration received on transfer of foundry business unit
Settlement of derivative contracts related to current investments
Consideration received on disposal of subsidiaries (including advance received)
Consideration paid on acquisition of subsidiaries
Cash & cash equivalents acquired pursuant to acquisition of subsidiaries
Cash & cash equivalents discharged pursuant to disposal of subsidiaries
Net cash (used in)/from investing activities
358
2017-18
v crore
2016-17
v crore
11516.16
8765.93
(2748.08)
1928.73
(31.03)
(53.53)
1538.52
(665.67)
(686.23)
2217.72
–
125.74
111.39
(5.58)
13248.14
(14499.91)
(642.38)
11725.82
9831.67
(16459.25)
(6627.58)
(3403.44)
(10031.02)
(2877.17)
862.13
(1170.49)
428.59
2551.83
484.65
–
(621.93)
229.89
534.51
0.66
2748.08
–
(125.74)
1048.29
(213.77)
50.47
(15.50)
3914.50
(748.63)
2369.93
(80.51)
34.92
1338.73
(422.62)
(17.88)
(34.22)
(95.81)
56.89
88.17
–
11254.90
(2471.33)
1509.77
5307.44
15600.78
(5743.85)
9856.93
(3201.67)
6655.26
(2977.09)
156.33
(1055.24)
67.00
(6769.76)
(321.60)
(2010.36)
(410.10)
197.74
408.84
0.57
748.63
83.65
(56.89)
2169.01
(7.07)
–
(19.60)
(9795.94)
Consolidated Statement of Cash Flows for the year ended March 31, 2018 (contd.)
C. Cash flow from financing activities:
Proceeds from issue of share capital (including share application money)
Proceeds from non-current borrowings [Note 62]
Repayment of non-current borrowings [Note 62]
Proceeds from other borrowings (net) [Note 62]
Payment (to)/from non-controlling interest (net)- including sale proceeds on divestment of part
stake in subsidiary companies
Settlement of derivative contracts related to borrowings
Dividends paid
Additional tax on dividend
Interest paid (including cash flows on account of interest rate swaps)
Net cash (used in)/from financing activities
Net (decrease)/increase in cash and cash equivalents (A + B + C)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
2017-18
v crore
49.50
46903.46
(36964.48)
2680.02
1413.12
149.31
(1960.76)
(429.01)
(2470.70)
9370.46
3253.94
3544.75
6798.69
2016-17
v crore
53.32
30522.82
(27286.28)
1643.82
2058.82
170.51
(1701.51)
(391.54)
(2174.03)
2895.93
(244.75)
3789.50
3544.75
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 & Sale of fixed assets represents additions & deletions to property, plant and equipment, investment property and
intangible assets adjusted for movement of (a) capital work in progress for property, plant and equipment and investment property
and (b) Intangible assets under development during the year.
3. 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.
2017-18
v crore
6834.34
1198.19
320.31
8352.84
(35.65)
1198.19
320.31
6798.69
2016-17
v crore
3526.87
1779.09
224.06
5530.02
17.88
1779.09
224.06
3544.75
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
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
VIKRAM SINGH MEHTA
(DIN 00041197)
N. HARIHARAN
Company Secretary
M. No. A3471
Mumbai, May 28, 2018
Directors
SUNITA SHARMA
(DIN 02949529)
SANJEEV AGA
(DIN 00022065)
359
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 and amendments
thereof issued by Ministry of Corporate Affairs in exercise of the powers conferred by section 133 of the Companies Act, 2013.
In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied
except where compliance with other statutory promulgations require a different treatment. These financials statements have been
approved for issue by the Board of Directors at their meeting held on May 28, 2018.
(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.
Fair value measurements are categorised as below based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety:
•
•
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the 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
Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the levels of the fair
value hierarchy unless the circumstances change warranting such transfer.
(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 as amended.
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 of 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
policies of subsidiaries have been harmonised to ensure the consistency with the policies adopted by the Parent Company.
360
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
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) Business Combination/Goodwill on consolidation
The Group accounts for its business combinations under acquisition method of accounting. Acquisition related costs are recognised
in the statement of profit and loss as incurred. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the
condition for recognition are recognised at their fair values at the acquisition date.
361
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
Goodwill on consolidation as on the date of transition i.e. April 1, 2015 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 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 on consolidation arising on acquisitions on or after the date of transition represents the excess of(a) consideration
paid for acquiring control and (b) acquisition date fair value of previously held ownership interest, if any, in a subsidiary over the
Group’s share in the fair value of the net assets (including identifiable intangibles) of the subsidiary as on the date of acquisition of
control.
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.
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.
Business combinations arising from transfers of interests in entities that are under common control are accounted at historical
cost. The difference between any consideration given and the aggregate historical carrying amounts of assets and liabilities of the
acquired entity are recorded in shareholders’ equity.
(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 for the periods upto June 30, 2017 includes excise duty collected from customers. Revenue from July 1, 2017
onwards is exclusive of Goods and Service tax (GST) which subsumed excise duty. Revenue also includes adjustments made
towards liquidated damages and variation wherever applicable. Escalation and other claims, which are not ascertainable/
acknowledged by customers are not taken into account.
A.
Sale of goods
Revenue from sale of manufactured and traded goods is recognised when all the following conditions are satisfied:
1.
significant risks and rewards of ownership of the goods are transferred to the buyer;
2.
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the good sold;
3.
the amount of revenue can be measured reliably;
4.
it is probable that the economic benefits associated with the transaction will flow to the Group; and
5.
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 that such cost will
362
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
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.
the amount of revenue can be measured reliably;
ii.
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
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 and in case the aggregate
of contract cost incurred to date plus recognised profits (or recognised losses as the case may be) exceeds the progress
billing, the surplus is shown as due from customers. Amounts received before the related work is performed are
disclosed 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 activities 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 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.
363
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
In the case of the developmental project business and the realty business, revenue includes profit on sale of investment
properties or sale of stake in the subsidiary and/or joint venture companies as the sale/divestments are inherent in the
business model.
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.
the amount of revenue can be measured reliably;
2.
it is probable that the economic benefits associated with the transaction will flow to the Group;
3.
the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
4.
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.
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 the same 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 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 fare/toll collections of such projects from users of facilities is
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:
1. Government grants, which are revenue in nature and are towards compensation for the qualifying costs, incurred
by the Group, are recognised as other operational income in the Statement of Profit and Loss in the period in
which such costs are incurred. Government grant receivable in the form duty credit scrips is recognised as other
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NOTE [1] (contd.)
operational income in the Statement of Profit and Loss in the period in which the application is made to the
government authorities and to the extent there is no uncertainty towards its receipt.
2. 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 on investments and loans is accrued on a time basis by reference to the principal outstanding and the
effective interest rate including interest on investments classified as fair value through profit or loss or fair value through
other comprehensive income. Interest receivable on customer dues is recognised as income in the Statement of Profit
and Loss on accrual basis provided there is no uncertainty towards its realisation.
B. Dividend income is accounted in the period in which the right to receive the same is established.
C. Other items of income are accounted as and when the right to receive such income arises and it is probable that the
economic benefits will flow to the group and the amount of income can be measured reliably.
(j) 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 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.
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 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 the expected pattern of consumption of the future economic benefits
embodied in the asset. The estimated useful life and residual values are also reviewed at each financial year end with the effect of
any change in the estimates of useful life/residual value is accounted on prospective basis.
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 from the date it is ready for 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 Group shall obtain ownership of the assets at the end of the lease term, such assets are depreciated based on
the useful life adopted by the Group for similar assets.
Freehold land is not depreciated.
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NOTE [1] (contd.)
(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.
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 derecognition 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
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.
F.
the manner in which the probable future economic benefits will be generated including the existence of a market for
output of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
the 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
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Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
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” 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
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, 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, social security contributions and employee pension scheme are defined contribution plans. The
contribution paid/payable under the schemes is recognised during the period in which the employee renders the related
service.
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NOTE [1] (contd.)
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.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised
in the Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is
recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan
are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or
curtailment and when the Group recognises related restructuring costs or termination benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans
to recognise the obligation on a net basis.
(iii) Long term employee benefits:
The obligation recognised in respect of long term benefits such as compensated absences, long service award etc. is
measured at present value of estimated future cash flows expected to be made by the Group and is recognised in a similar
manner as in the case of defined benefit plans vide (ii) B above.
Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee 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:
Leases where the all the risks and rewards of ownership of the related assets are substantially transferred to the lessee are
classified as finance leases.
A. Assets taken 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.
368
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(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.
(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.
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.
6.
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 and dividend, provision for impairment
and exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other
than on account of above income or expense) are recognised in other comprehensive income and accumulated in other
369
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
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.
the right to receive cash flows from the asset has expired, or
2.
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.
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 weighted by the probability of default after the reporting
date and thus, are not cash shortfalls that are predicted over the next 12 months.
• When making the assessment of whether there has been a significant increase in credit risk since initial recognition,
the 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 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.
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Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(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 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.
The cash flow hedges are allocated to the forecast transactions on gross exposure basis.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity
at that time remains in equity and is recognised in profit or loss when the forecast transaction is ultimately recognised in
profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised
immediately in profit or loss.
(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.
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NOTE [1] (contd.)
(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 at each subsequent period end and when the circumstances that previously caused
inventories to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value
because of changed economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original
amount written-down so that the resultant carrying amount is the lower of the cost and the revised net realisable value.
(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.
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 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.
(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 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;
372
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
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.
(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 result includes the interest expense incurred on interest bearing advances with corresponding credit included in
“unallocable corporate income”
(vii) Segment results have not been adjusted for the exceptional item attributable to the corresponding segment. The said
exceptional item has been included in “unallocable corporate income net of expenditure”. The corresponding segment assets
have been carried under the respective segments without adjusting the exceptional item
(viii) 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.
373
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
(ix) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [see Note 1(v) above] and is allocated to the segment.
(x) 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 included in the current tax in the Statement of Profit and Loss.
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
(z) Provisions, contingent liabilities and contingent assets
Provisions are recognised only when:
(i)
the Group 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.
374
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [1] (contd.)
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 at the date of Balance Sheet.
(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.
375
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [2]
Property, Plant and Equipment and Capital work-in-progress
Cost
Pursuant to
acquisition
of
subsidiaries
Foreign
currency
fluctuation
Additions
Depreciation
Impairment
Book value
v crore
Deductions
As at
31-3-2018
Up to
31-3-2017
Pursuant to
acquisition
of
subsidiaries For the year
Foreign
currency
fluctuation
Deductions
Up to
31-3-2018
Up to
31-3-2017
Up to
31-3-2018
As at
31-3-2018
As at
31-03-2017
Class of assets
Land
Freehold
Taken on lease
Sub total - Land
Buildings
Owned
Leased out
Sub total - Buildings
Plant & equipment
As at
1-4-2017
599.07
439.28
1038.35
3720.33
67.98
3788.31
Owned
Leased out
Taken on lease
6752.97
41.63
0.99
Sub total - Plant & equipment 6795.59
Computers
Owned
Leased out
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
Previous year
Add: Capital work-in-progress
** refer note 42(c)
Notes:
–
–
–
–
–
–
64.97
–
–
64.97
1.77
–
1.77
8.34
–
8.34
33.78
–
33.78
52.90
–
52.90
34.34
–
34.34
71.17
1.90
73.07
530.28
133.70
–
663.98
131.77
–
131.77
54.15
–
54.15
52.45
–
52.45
60.70
4.25
64.95
0.76
0.13
0.89
6.81
–
6.81
7.91
–
–
7.91
1.46
–
1.46
0.48
–
0.48
1.06
–
1.06
0.38
–
0.38
48.43
0.04
48.47
585.74
439.37
1025.11
–
2.70
2.70
113.25
19.20
132.45
3685.06
50.68
3735.74
345.87
6.11
351.98
132.65
7.94
–
140.59
7223.48
167.39
0.99
7391.86
1840.32
7.91
0.05
1848.28
38.80
0.75
39.55
7.68
–
7.68
12.54
–
12.54
26.38
79.76
106.14
635.76
1.12
636.88
319.44
1.02
320.46
380.37
11.81
392.18
381.67
30.69
412.36
256.78
1.27
258.05
115.21
0.56
115.77
89.24
3.49
92.73
84.14
47.29
131.43
–
–
–
–
–
–
56.29
–
–
56.29
0.75
–
0.75
6.80
–
6.80
22.85
–
22.85
52.89
–
52.89
–
6.91
6.91
168.75
4.06
172.81
915.43
8.95
0.07
924.45
138.36
0.55
138.91
62.54
0.31
62.85
58.74
2.08
60.82
52.43
8.20
60.63
539.56
1.87
541.43
264.15
1.02
265.17
305.62
11.81
317.43
294.07
106.20
400.27
49.23
37.25
–
–
195.22
–
–
–
–
–
244.45
37.25
6.82
9.67
–
–
9.56
4.74
1011.08
44.00
1141.56
14288.11
–
–
–
161.76
–
0.64
195.86
1270.57
–
0.18
0.18
19.17
–
1.85
1.85
489.27
1011.08
42.97
1335.75
15250.34
111.47
23.24
151.20
2952.14
–
–
–
139.58
56.08
4.79
75.17
1502.55
–
0.02
0.02
0.69
–
0.69
2.07
–
–
2.07
0.97
–
0.97
0.19
–
0.19
0.40
–
0.40
0.10
–
0.10
–
–
–
0.12
0.12
4.56
–
–
–
–
9.63
9.63
17.16
1.33
18.49
80.89
2.10
–
82.99
33.34
0.72
34.06
6.22
–
6.22
8.48
–
8.48
14.48
42.09
56.57
498.15
8.84
506.99
2733.22
14.76
0.12
2748.10
363.52
1.10
364.62
178.52
0.87
179.39
162.75
5.57
168.32
175.08
13.40
188.48
–
–
16.38
14.41
–
–
–
87.25
–
87.25
15.50
–
–
15.50
–
–
–
0.01
–
0.01
0.24
–
0.24
–
–
–
–
–
–
1.64
1.64
208.45
167.55
26.51
224.85
4390.38
–
–
–
103.00
–
–
–
599.07
585.74
429.74
436.58
1015.48 1035.65
189.31
–
189.31
2997.60 3287.21
61.87
3039.44 3349.08
41.84
28.36
–
–
28.36
4461.90 4897.15
33.72
152.63
0.94
0.87
4615.40 4931.81
272.24
0.02
272.26
140.91
0.15
141.06
217.38
6.24
223.62
206.59
17.29
223.88
282.78
0.60
283.38
148.93
0.46
149.39
216.14
8.32
224.46
209.93
58.91
268.84
228.07
22.84
42.41
27.58
899.61
843.53
20.76
16.46
1110.90
990.36
10642.04 11232.97
–
–
–
0.01
–
0.01
0.24
–
0.24
–
–
–
–
–
–
–
–
217.92
103.00
2143.07
1944.71
12785.11 13177.68
**
13749.33
0.13
969.45
(38.16)
392.64
14288.11
1577.34
0.09
1602.26
(4.43)
223.12
2952.14
(a) Carrying value of property, plant and equipment pledged as collateral for liabilities and/or commitments as at March 31, 2018
R 2073.45 crore (previous year: R 2112.99 crore)
(b) Carrying value of property, plant and equipment having restriction on title as at March 31, 2018 R 2042.16 crore (previous year:
R 2033.26 crore)
(c) Depreciation for the year includes R 4.85 crore (previous year: R 23.33 crore) on account of obsolescence.
376
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [2] (contd.)
(d)
Impairment during the year is R 115.41 crore and reversal of impairment during the year on sale is R 0.49 crore. Impairment for
and upto the previous year was: R 111.86 crore out of which R 8.86 crore was transferred to held for sale.
(e) Owned assets given on operating lease have been presented separately under respective class of assets as “Leased out” pursuant
to Ind AS 17 “Leases”.
(f) Cost as at April 1, 2017 of individual assets has been reclassified, wherever necessary.
(g) Amount transferred from property, plant & equipment to group(s) of assets classified as held for sale: NIL (previous year: R 70.21
crore)
(h) Range of useful life of property, plant and equipment is as below:
Class of assets
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
Leasehold land
Owned buildings
Owned plant and equipment
Computers
Office equipment
Furniture and fixtures
Owned vehicles
Aircraft
Ships
Dredged channel
Breakwater structures
NOTE [3]
Investment Property
Minimum useful life
(in years)
15
5
3
3
3
3
3
18
14
50
50
Maximum useful life
(in years)
999
61
35
7
30
13
15
18
14
50
50
Cost
Depreciation
Impairment
Book value
v crore
Class of
assets
As at
1-4-2017
Additions
Foreign
currency
fluctuation
Land
Buildings
Total
49.30
509.19
139.51 1268.71
188.81 1777.90
0.05
–
0.05
Transfer
to/from
inventories
and owners
occupied
property
30.35
(5.98)
24.37
Deductions
As at
31-03-2018
Up to
31-03-2017
For the
period
Foreign
currency
fluctuation
7.09
5.39
12.48
581.80
1396.85
1978.65
–
8.87
8.87
5.05
5.33
25.10
30.43
6.40
–
–
–
–
Previous year 216.67
Add: Capital work-in-progress
42.72
(0.19)
4.40
74.79
188.81
Transfer
to/from
inventories
and owners
occupied
property
–
0.98
0.98
Deductions
Up to
31-3-2018
Up to
31-3-2018
As at
31-3-2018
As at
31-3-2017
–
5.33
5.33
5.33
29.62
34.95
2.48
–
2.48
573.99
1367.23
1941.22
49.30
130.64
179.94
0.42
3.00
8.87
2404.64 3433.32
4345.86 3613.26
Notes:
(a) Carrying value of Investment property pledged as collateral for liabilities and/or commitments and having restriction on title as at
March 31, 2018 R 0.16 crore (R 0.16 crore as at March 31, 2017)
(b) Useful life of building included in investment property: 20 to 60 years
(c) Amount recognized 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
2017-18
73.31
2.10
(d) Fair value of investment property: R 6448.68 crore as at March 31, 2018 (R 4574.21 crore as at March 31, 2017).
v crore
2016-17
64.41
2.57
377
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [3] (contd.)
(e) 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 R 2510.89 crore. (R 2202.79 crore
as at March 31, 2017). Valuation is based on government rates, market research, marked trend and comparable values as
considered appropriate.
(f)
Impairment during the year R 2.48 crore (on land) [previous year R 403.71 crore (on capital work-in-progress) out of which
R 270.22 crore pertained to assets disposed of].
NOTE [4]
Goodwill
Class of assets
Goodwill on consolidation
Previous year
As at
1-4-2017 Additions*
245.24
1446.76
2.83
1495.06
Cost
Foreign
currency
fluctuation
42.67
(44.61)
Deductions
124.79
As at
31-3-2018
1609.88
6.52 1446.76
Up to
31-3-2017
–
–
# Impairment upto 31-3-2018 R 48.10 crore, during the year R NIL
* Refer Note 51
NOTE [5]
Other Intangible assets and Intangible assets under development
Amortisation
Foreign
currency
For the
period
–
–
fluctuation Deductions
–
–
–
–
Impairment
Book value
v crore
Up to
31-3-2018
–
–
As at
31-3-2018
48.10 #
48.10
As at
31-3-2018
As at
31-3-2017
1561.78 1398.66
1398.66
Class of assets
Specialised Software
Technical knowhow
Trade Names
New Product Design
and Development
Customer contracts
and relationship
Fare Collection Rights
Total
Cost
Pursuant to
acquisition of
subsidiaries
0.09
–
6.25
–
As at
1-4-2017
987.93
64.92
–
164.81
Foreign
currency
fluctuation
13.74
–
–
7.20
Deductions
4.52
–
–
2.37
As at
31-3-2018
1072.92
120.02
6.25
223.39
Pursuant to
acquisition of
subsidiaries
0.03
–
–
–
Up to
31-3-2017
735.56
35.35
–
73.32
Additions
75.68
55.10
–
53.75
Amortisation
Foreign
currency
fluctuation
9.66
–
–
3.61
For the
year
120.96
13.87
6.24
33.46
v crore
Book value
Deductions
4.11
–
–
1.87
Up to
31-3-2018
862.10
49.22
6.24
108.52
As at
31-3-2018
210.82
70.80
0.01
114.87
As at
31-3-2017
252.37
29.57
–
91.49
131.73
71.70
–
4.42
–
207.85
72.94
–
36.37
2.80
–
112.11
95.74
58.79
–
1349.39
–
78.04
0.01
1548.23
1732.76
–
25.36
–
6.89
1548.23
3178.66
98.02
10.17
177.10
1349.39
–
917.17
861.58
–
0.03
9.96
220.86
–
16.07
–
5.98
9.96
1148.15
1538.27
2030.51
–
432.22
–
208.61
9.36
162.38
917.17
Previous year
Add: Intangible assets under development
1418.29
** refer note 42(c)
Addition to other intangible assets include internally developed: R 74.43 crore (previous year: R 34.99 crore)
Notes:
(a) Borrowing cost capitalised in accordance with Ind AS 23 “Borrowing Costs” is as follows:
Class of Assets
Investment property
Capital work-in-progress (PPE)
Intangible assets under development
Total
(b) The average capitalization rate for borrowing cost is 10.06%. (previous year: 10.26%)
378
11300.36 11353.23
13330.87 11785.45
**
2017-18
51.98
102.45
914.93
1069.36
v crore
2016-17
137.01
96.45
784.79
1018.25
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [6]
Financial Assets: Other Investments - non-current
Particulars
Equity instruments
Preference shares
Debentures or bonds
Mutual funds
Security receipt
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
Unsecured long term loans and advances 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 unsecured loans, considered good:
Advance recoverable in cash
Other unsecured loans, doubtful:
Other loans and advances
Less: Provision for doubtful advances
As at 31-3-2018
As at 31-3-2017
v crore
665.06
281.85
1248.10
18.94
1016.88
128.64
3359.47
v crore
600.03
66.80
1378.88
17.06
505.27
111.86
2679.90
As at 31-3-2018
As at 31-3-2017
v crore
26.59
26.59
v crore
208.39
v crore
v crore
170.49
0.45
0.45
–
–
18.49
18.40
18.49
18.40
1565.74
–
1167.22
130.41
1565.74
1297.63
0.23
0.74
0.23
1.00
0.74
0.12
15.47
15.47
2.29
2.29
–
1793.85
–
1487.38
379
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [8]
Financial Assets: Loans towards financing activities - non-current
Particulars
As at 31-3-2018
As at 31-3-2017
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 [9]
Other financial assets - non-current
Particulars
Cash and cash equivalent not available for immediate use
Fixed deposits with banks (maturity more than 12 months)
Forward contract receivables
Embedded derivative receivables
Other receivables
NOTE [10]
Other non-current assets
Capital advances:
Secured
Unsecured
Particulars
Advance recoverable other than in cash
Current Tax receivable (net)
380
38709.90
70.93
9147.47
3438.87
51367.17
3438.87
4464.64
8995.06
428.54
30984.17
44.36
4044.53
2488.74
37561.80
2488.74
47928.30
35073.06
2125.74
9229.02
706.04
13888.24
61816.54
12060.80
47133.86
As at 31-3-2018
As at 31-3-2017
v crore
320.31
–
238.38
5.06
50.57
614.32
v crore
224.06
1.19
577.05
10.74
44.56
857.60
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
21.48
53.83
26.47
146.42
75.31
1737.94
2774.49
4587.74
172.89
1064.42
2460.20
3697.51
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [11]
Inventories (at cost or net realisable value whichever is lower)
Particulars
Raw materials [includes goods-in-transit R 18.52 crore
(previous year: R 38.52 crore)]
Components [includes goods-in-transit R 23.34 crore
(previous year: R 23.72 crore)]
Construction materials [includes goods-in-transit R 67.32 crore
(previous year: R 55.70 crore)]
Manufacturing work-in-progress
Finished goods
Stock-in-trade (in respect of goods acquired for trading) [includes goods-in-
transit R 26.31 crore (previous year: R 18.77 crore)]
Stores and spares [including goods-in-transit R 3.77 crore
(previous year: R 5.09 crore)]
Loose tools [includes goods-in-transit R Nil (previous year: R 0.09 crore)]
Property development projects (including land)
As at 31-3-2018
As at 31-3-2017
v crore
614.19
474.91
151.41
630.27
245.25
200.63
209.55
14.12
2307.47
4847.80
v crore
576.51
518.24
164.03
828.36
340.82
188.59
248.34
15.09
1259.76
4139.74
Note: During the year R 157.49 crore (previous year: R 752.13 crore) was recognised as expense towards write-down of inventory.
NOTE [12]
Financial Assets: Investments - current
Particulars
Equity shares
Government and trust securities
Debentures and bonds
Mutual funds
Preference shares
NOTE [13]
Financial Assets-current: Trade receivables
Particulars
Secured, considered good
Unsecured:
Considered good
Considered doubtful
Less: Allowance for doubtful debts
As at 31-3-2018
As at 31-3-2017
v crore
177.04
1206.48
3712.59
4366.71
1.43
9464.25
v crore
199.17
780.10
3089.02
10227.85
4.08
14300.22
As at 31-3-2018
As at 31-3-2017
v crore
v crore
0.15
v crore
v crore
17.84
34653.93
2899.78
37553.71
2899.78
28671.13
2465.16
31136.29
2465.16
34653.93
34654.08
28671.13
28688.97
381
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [14]
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 [15]
Financial Assets-current: Other bank balances
Particulars
Fixed deposits with banks
Earmarked balances with banks-unclaimed dividend
Earmarked balances with banks-Section 4(2)(l)(D) of RERA
Margin money deposits with banks
Cash and bank balances not available for immediate use
NOTE [16]
Financial Assets: Loans - current
Particulars
Unsecured security deposits, considered good
Unsecured security deposits, doubtful
Less: Provision for doubtful security deposits
As at 31-3-2018
As at 31-3-2017
v crore
3710.42
838.52
64.02
2221.38
6834.34
v crore
2639.05
571.85
64.48
251.49
3526.87
As at 31-3-2018
As at 31-3-2017
v crore
900.03
64.09
7.92
31.46
194.69
1198.19
v crore
1557.59
46.92
–
4.76
169.82
1779.09
As at 31-3-2018
As at 31-3-2017
v crore
478.77
v crore
5.91
5.91
v crore
447.61
v crore
3.74
3.74
–
–
Unsecured long term loans and advances to related parties:
Joint Ventures:
Inter-corporate deposits
18.20
18.20
Other secured loans, considered good:
Loans against mortgage of house property
Other unsecured loans, considered good:
Inter-corporate deposits, Unsecured
Others
382
18.20
18.20
0.33
0.31
0.33
15.13
47.29
559.72
0.31
20.01
0.32
486.45
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [17]
Financial Assets - current: Loans towards financing activities
Particulars
As at 31-3-2018
As at 31-3-2017
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
Advances to related parties:
Associate companies
Joint venture companies
Advances recoverable in cash
Forward contract receivable
Embedded derivative receivables
Doubtful advances:
Deferred credit sale of ships
Other loans and advances
Less: Allowance for doubtful loans and advances
Particulars
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
18472.85
25.59
1066.62
0.60
19565.66
0.60
6600.47
281.83
0.65
18212.95
25.85
1052.12
0.14
19291.06
0.14
19565.06
19290.92
5325.67
303.81
6.98
6882.95
26448.01
5636.46
24927.38
6.27
64.69
7.87
127.39
70.96
3428.45
643.92
51.26
135.26
2110.29
843.56
197.23
27.11
176.35
203.46
203.46
26.97
167.61
194.58
194.58
–
4194.59
–
3286.34
383
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [19]
Other current assets
Particulars
Due from customers (construction and project related activity)
Due from customers (property development activity) [Note 44(c)]
Retention money (including unbilled revenue)
Unamortised expenses
Accrual of fee income
Balance with customs, port trust, etc.
Advance recoverable other than in cash
Government grant receivable
Doubtful other loans and advances
Less: Provision for doubtful advances
Others
NOTE [20]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:
Particulars
Authorised:
Equity shares of R 2 each
Issued, subscribed and fully paid up:
Equity shares of R 2 each
(b) Reconciliation of the number of equity shares and share capital:
Particulars
Issued, subscribed and fully paid up equity share outstanding at the beginning of
the year
Add: Shares issued on exercise of employee stock options during the year
Add: Shares issued as bonus on July 15, 2017
Issued, subscribed and fully paid up equity shares outstanding at the end of the
As at 31-3-2018
As at 31-3-2017
v crore
4.16
4.16
v crore
28772.62
–
12454.33
17.15
0.14
61.44
4954.10
127.80
–
137.25
46524.83
v crore
4.16
4.16
v crore
23762.64
91.05
10306.31
10.13
0.16
199.55
4492.84
45.57
–
148.57
39056.82
As at 31-3-2018
As at 31-3-2017
Number of
shares
v crore
Number of
shares
v crore
1,62,50,00,000
325.00
1,62,50,00,000
325.00
1,40,13,69,456
280.27
93,29,65,803
186.59
2017-18
2016-17
Number of
shares
v crore
Number of
shares
v crore
93,29,65,803
186.59
93,14,78,845
186.30
16,38,898
46,67,64,755
0.33
93.35
14,86,958
–
0.29
–
year
1,40,13,69,456
280.27
93,29,65,803
186.59
(c) Terms/rights attached to equity shares:
The Company has only one class of share capital, i.e., equity shares having face value of R 2 per share. Each holder of equity share
is entitled to one vote per share.
384
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (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 31-3-2018
As at 31-3-2017
Number of
shares
24,63,52,777
17,21,28,421
–
Shareholding
%
17.58
12.28
–
Number of
shares
14,64,24,938
11,47,52,281
6,11,02,860
Shareholding
%
15.69
12.30
6.55
(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
As at 31-3-2018
As at 31-3-2017
Number of
equity shares
to be issued
as fully paid
42,65,623@
R crore
(at face
value)
0.85*
Number of
equity shares
to be issued as
fully paid
42,47,360
R crore
(at face
value)
0.85*
bonds (FCCB)
95,20,455@
1.90**
63,46,986
1.27**
*
**
#
@
The equity shares will be issued at a premium of R 94.42 crore (previous year: R 146.71 crore)
The equity shares will be issued at a premium of R 1214.50 crore (previous year: R 1215.13 crore) on the exercise of options
by the bond holders
Note 20 (h) for terms of employee stock option schemes
The number of options have been adjusted consequent to bonus issue wherever applicable
(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, 2018 are 77,50,59,331 (previous period of five years ended March 31, 2017: 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, 2018 – Nil (previous period of five years ended March 31, 2017: 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.
(ii) The details of the grants under the aforesaid schemes under various series are summarized below:
Sr.
No.
Series reference
1
2
3
4
5
6
7
8
9
Grant price - (R)
Grant dates
Vesting commences on
Options granted and outstanding
at the beginning of the year
Options lapsed prior to bonus
Options granted prior to bonus
Options exercised prior to bonus
Options outstanding as on July
14, 2017 **
Adjusted options as on July
14, 2017** consequent to
bonus issue
2000
2002 (A)
2002 (B)
2003 ( A)
2003(B)
2006
2006(A)
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
400.70
400.70 267.10*
11.70 267.10*
2.00*
7.80*
7.80*
2.30
2.30
2.30
1-6-2000
1-6-2001
2.00*
19-4-2002
19-4-2003
2.00*
19-4-2002
19-4-2003
11.70
23-5-2003 onwards
23-5-2004 onwards
23-5-2003 onwards
23-5-2004 onwards
1-9-2006 onwards
1-9-2007 onwards
1-7-2007 onwards
1-7-2008 onwards
13200
–
–
–
13200
19800
25200
–
–
12000
–
–
32250
–
–
–
32250
48375
32250
–
–
–
–
–
59550
–
–
–
59550
89325
59550
–
–
–
–
–
47178
–
–
–
47178
47178 427131
–
17700
29789
–
–
–
526919 176584
–
41662
–
89100
39708
147226
257366 3491467 4844579
35747 108685
454865
384450
6200
45035 494210 1282697
–
– 415042
– 136876
– 2894772
70767
– 622567
– 205321
– 4342684
–
–
385
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
Sr.
No.
10
11
12
13
Series reference
Options lapsed post bonus issue
Options granted post bonus
issue
Options exercised post bonus
issue
Options granted and outstanding
at the end of the year
of which
Options vested
Options yet to vest
2000
2002 (A)
2002 (B)
2003 ( A)
2003(B)
2006
2006(A)
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
–
– 451376
– 202516
49313
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
71600
– 156962
–
–
–
– 573580
2805
– 915424
–
–
19800
13200
48375
32250
89325
59550
70767
47178 487892
427131
19800
–
13200
–
48375
–
32250
–
89325
–
59550
–
70767
–
47178 130806
– 357086
75692
351439
–
–
–
176584 3549464 3491467
176584 1563209 1746787
– 1986255 1744680
14 Weighted average remaining
contractual life of options (in
years)
* Pursuant to the issue of bonus shares
Nil
Nil
Nil
Nil
** Record date: July 14, 2017
Nil
Nil
Nil
Nil
4.72
4.98
Nil
Nil
3.74
3.48
(iii) The number and weighted average exercise price of stock options are as follows:
2017-18
2016-17
Particulars
No. of stock
options
No. of stock
options
Weighted
average
exercise price
(R)
354.10
327.51
358.97
370.25
–
–
–
–
–
347.41
359.04
(iv) Weighted average share price at the date of exercise for stock options exercised during the year is R 1106.67 (previous year:
(A) Options granted and outstanding at the beginning of the year
(B) Options granted pre bonus issue
(C) Options allotted pre bonus issue
(D) Options lapsed pre bonus issue
(E) Options granted and outstanding prior to bonus issue
(F) Adjusted options consequent to bonus issue
(G) Options granted post bonus issue
(H) Options allotted post bonus issue
(I) Options lapsed post bonus issue
(J) Options granted and outstanding at the end of the year
(K) Options exercisable at the end of the year out of (J) supra
Weighted
average
exercise price
(R)
347.41
112.61
380.14
400.70
339.12
226.07
238.32
229.25
248.92
223.35
218.19
57,93,042
4,73,550
14,86,958
5,32,274
–
–
–
–
–
42,47,360
21,51,241
42,47,360
23,900
5,63,707
1,08,685
35,98,868
53,98,839
6,45,180
10,75,191
7,03,205
42,65,623
19,22,282
R 1386.19) 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 R 965.25 (previous year: R 1056.73) 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.
(i) Weighted average risk-free interest rate
(ii) Weighted average expected life of options
(iii) Weighted average expected volatility
(iv) Weighted average expected dividends over the life of the option
(v) Weighted average share price
(vi) Weighted average exercise price
(vii) Method used to determine expected volatility
2017-18
2016-17
6.83%
4.17 years
27.92%
R 58.37 per option
R 1178.47 per option
R 229.73 per share
6.72%
4.08 years
30.79%
R 74.52 per option
R 1355.66 per option
R 327.51 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 shares option (net) account as at March 31, 2018 is R 108.59 crore (previous year: R 177.25 crore), including
R 76.12 crore (previous year: R 117.36 crore) for which the options have been vested to employees as at March 31, 2018.
386
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(i) During the year ended March 31, 2018, the Company paid the final dividend of R 14 per equity share for the year ended
March 31, 2017
(j) On May, 28, 2018 the Board of Directors has recommended the final dividend of R 16 per equity share for the year ended
March 31, 2018 subject to approval from shareholders. On approval, the total dividend payment based on number of shares
outstanding as on March 31, 2018 is expected to be R 2242.19 crore and the payment of dividend distribution tax is expected to
be R 460.89 crore.
(k) 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 as at 31-3-2018 is 1.75:1 (as at
31-3-2017: 1.75:1).
(i)
(l) 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.
ESOP scheme 2000
ESOP Scheme 2000
Particulars
I,II & III
IV - XXI
Grant Price
Grant Dates
2017-18
R 5
2016-17
R 5
01 April 2001 onwards
Vesting commences on
01 April 2002 onwards
2017-18
R 2
2016-17
R 2
01 October 2001
onwards
01 October 2002
onwards
U.S. Stock Option
Sub-plan
2006
2016-17
USD 2.4
2017-18
USD 2.4
15 March 2007
onwards
15 March 2008
onwards
ESOP scheme
2015
2017-18
R 1
2016-17
R 1
10 June 2016 onwards
10 June 2017 onwards
Sr.
No.
i
ii
iii
iv
36,720
–
–
82,660 14,50,725 23,50,106
–
–
–
–
–
–
47,000
–
–
1,43,650 35,96,300
–
–
1,29,300 36,58,000
–
–
Options granted & outstanding at
the beginning of the year
v
Options reinstated during the year
Options granted during the year
vi
vii Options allotted/exercised during
the year
3,375
11,830
6,73,315
7,25,445
8,000
17,650
7,43,460
–
viii Options lapsed/cancelled during
the year
12,000
34,110
92,108
1,73,936
–
79,000
1,32,000
61,700
ix
x
xi
Options granted & outstanding at
the end of the year
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)
21,345
36,720
6,85,302 14,50,725
39,000
47,000 28,50,140 35,96,300
21,345
36,720
4,47,852
2,23,760
39,000
47,000
3,12,600
–
–
–
–
2,37,450 12,26,965
–
0.7
1.7
–
–
– 25,37,540 35,96,300
–
5.3
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 granted during the year
iii Options allotted during the year
iv
v
vi
Options lapsed/cancelled during the year
Options granted and outstanding at the end of the year
Options vested at the end of the year out of (vi)
2017-18
2016-17
No. of stock
options
51,30,745
1,29,300
14,28,150
2,36,108
35,95,787
8,20,797
Weighted
average
exercise price
(R)
2.73
1.00
2.35
1.59
2.90
9.03
No. of stock
options
25,76,416
36,58,000
7,54,925
3,48,746
51,30,745
3,07,480
Weighted
average
exercise price
(R)
11.14
1.00
5.64
36.92
2.73
25.84
387
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(B) Weighted average share price at the date of exercise for stock options exercised during the year is R 850 per share
(previous year: R 621 per share).
(C) Weighted average fair value of options granted during the year is R 644.71 per share (previous year: R 407.39 per share).
(D) The fair value has been calculated using the Black-Scholes Option Pricing model and significant assumptions and inputs
to estimate the fair value options granted during the year are as follows:
Sr. No.
Particulars
i
ii
iii
iv
v
vi
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
2017-18
6.69%
3 years
17.88%
R 115.33
R 644.71
R 1
2016-17
7.10%
3 years
19.23%
R 115.56
R 407.74
R 1
vii
Method used to determine expected volatility
The expected volatility has been calculated
entirely based on historical volatility of IT Index.
(ii)
L&T Technology Services Limited
(A) Employee stock option plan (ESOP)
(i)
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 options are vested equally over a period of 5 years subject to the discretion of the management and
fulfillment of certain conditions.
(ii) The exercise period for the options granted under the ESOP Scheme, 2016 would be seven years (84 months) from
the date of grant of options or six years from the date of first vesting or three years (36 months) from the date of
retirement/death, whichever is earlier, subject to any change as may be approved by the Board. The exercise price
may be decided by the Board, in such manner, during such period, in one or more tranches and on such terms
and conditions as it may deem fit, provided that the exercise price per option shall not be less than the par value
of the equity share of our Company and shall not be more than the market price as defined in the SEBI (Share
Based Employee Benefits) Regulations, 2014 and shall be subject to compliance with accounting policies under the
said regulation. The number of shares to be allotted on exercise of options should not exceed the total number of
unexercised vested options that may be exercised by the employee.
(iii) Details of grant under ESOP Scheme, 2016 is summarized below:
Sr.
No.
1
2
3
4
5
6
7
8
9
Series reference
Grant price -R
Grant dates
Vesting commences on
Options granted and outstanding at the beginning of the year
Options lapsed during the year
Options granted during the year
Options exercised during the year
Options granted and outstanding at the end of the year-(a)
of (a) above - vested outstanding options
of (a) above - unvested outstanding options
Weighted average remaining contractual life of options (in
years)
ESOP scheme, 2016
2017-18
2
28-07-2016 onwards
28-07-2017 onwards
39,80,000
1,83,300
1,93,900
7,65,655
32,24,945
10,82,345
21,42,600
5.41
2016-17
2
–
1,65,000
41,45,000
–
39,80,000
–
39,80,000
6.36
388
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
(iv) Options granted on July 28, 2016 include 15,00,000 and 5,00,000 options granted to non-executive directors and
key managerial personnel respectively. Options granted on August 28, 2016 include 50,000 options granted to key
managerial personnel. No options were granted to key managerial personnel during the current year.
(v) The number and weighted average exercise price of stock options are as follows:
Sr.
No.
Particulars
2017-18
2016-17
No. of stock
options
Weighted
average exercise
price (R)
No. of stock
options
Weighted
average exercise
price (R)
(i)
Options granted and outstanding at the
39,80,000
(ii)
(iii)
(iv)
(v)
beginning of the year
Options granted during the year
Options exercised during the year
Options lapsed during the year
1,93,900
7,65,655
1,83,300
Options granted and outstanding at the
32,24,945
end of the year
(vi)
Options exercisable at the end of the year
10,82,345
out of - (a) above
2
2
2
2
2
2
–
41,45,000
–
1,65,000
39,80,000
–
–
2
–
2
2
–
(vi) Weighted average share price at the date of exercise for stock options exercised during the year is R 849.70 per
share.
(vii) No options expired during the periods covered in the above table.
(viii) 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.
(ix) The fair value at grant date of options granted during the year ended March 31, 2018 is R 737.10 (previous year:
R 281.00). 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 included:
Sr. No.
Particulars
(i) Weighted average exercise price
(ii)
(iii)
Grant date
Expiry date
2017-18
R 2.00
2016-17
R 2.00
23-Aug-17
28-Jul-16 & 27-Aug-16
22-Aug-24
27-Jul-23 & 26-Aug-23
(iv) Weighted average share price at grant date
R 737.10 per option
R 281.00 per option
(v) Weighted average expected price volatility of
Company’s share
(vi) Weighted average expected dividend yield over
life of option
(vii) Weighted average risk-free interest
(viii) Method used to determine expected volatility
42.54%
8.05%
6.44%
25.17%
18.53%
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.
(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 allotted under scheme 2010 are vested over a
389
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [20] (contd.)
period of 4 years in ratio of 15%, 20%, 30% and 35% respectively from the date of grant, subject to the discretion of
the management and fulfillment of certain conditions. The options granted under scheme 2013 are vested in a graded
manner over a period of four year with 0%, 33%, 33% and 34% of grants vesting each year, commencing from the
end of 24 month from the date of grant. 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 summarized below:
Sr.
No.
1
2
3
4
5
6
Series reference
Grant Price (R)
Options granted and outstanding at the beginning of the
year
Options granted during the year
Options cancelled/ lapsed during the year
Options exercised and shares allotted during the year
Options granted and outstanding at the end of the year
of which
Options vested
Options yet to vest
Scheme 2010
Scheme 2013
2017-18
2016-17
2017-18
2016-17
44.20
Market Price
28,18,795
33,30,000
2,52,862
16,91,008
42,04,925
1,71,425
40,33,500
61,08,998
2,37,93,000
2,35,50,000
6,50,000
1,37,20,000
1,16,40,000
21,36,393
18,03,810
38,42,500
1,08,77,500
35,80,500
5,19,500
28,18,795
3,00,90,000
2,37,93,000
15,76,795
14,30,000
23,90,500
12,42,000
2,86,60,000
2,14,02,500
7 Weighted average remaining contractual life of options (in
years)
6.01
5.05
6.15
6.29
(C) Weighted average fair values of options granted during the year is R 68.27 (previous year: R 27.24) 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
a) Weighted average risk-free interest rate
b) Weighted average expected life of options
c) Weighted average expected volatility
d) Weighted average expected dividends
e) Weighted average share price
f)
g)
Weighted average exercise price
Method used to determine expected volatility
2017-18
6.72%
3.90 years
32.57%
2016-17
7.49%
3.98 years
32.53%
R 3.12 per option
R 3.19 per option
R 145.59 per option
R 75.53 per option
R 116.58 per option
R 73.70 per option
Expected volatility is based on the historical volatility
of the Company’s shares price applicable to the
expected life of each option.
390
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [21]
Other Equity
Particulars
Equity component of foreign currency convertible bonds
Share application money pending allotment
Capital reserve [Note 1(g)]
Capital reserve
Capital reserve on consolidation
Capital redemption reserve
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 Reserve Bank India Act, 1934
Reserve u/s 29C of National Housing Bank Act, 1987
Reserve under section 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)]
v crore
4.16
271.92
536.49
(222.93)
1345.81
1399.55
92.57
514.98
As at 31-3-2018
As at 31-3-2017
v crore
153.20
3.56
v crore
v crore
153.20
–
276.08
42.00
8363.02
10.52
269.76
595.25
(292.00)
280.28
–
8318.85
313.56
303.25
1025.44
1222.89
32.00
461.97
3352.91
41837.17
572.67
449.22
(11.45)
359.62
(12.10)
437.77
24.78
55376.72
2742.30
37335.32
478.24
347.52
70.97
50029.93
^ 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 debentures.
391
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [22]
Financial Liabilities: Borrowings - non-current
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
v crore
v crore
v crore
v crore
v crore
v crore
As at 31-3-2018
As at 31-3-2017
Redeemable non-convertible fixed rate debentures
Redeemable non-convertible floating rate debentures
Redeemable non-convertible inflation indexed debentures
Preference share
0.675% Foreign currency convertible bonds
Term loans from banks
Term loans from others
Finance lease obligation [Note 48(b)(i)(B)]
Sales tax deferment loan
25187.11
50.00
–
–
–
23855.61
–
–
–
–
116.96
905.26
1245.64
8876.75 34063.86
50.00
116.96
905.26
1245.64
12677.23 36532.84
–
0.20
–
–
0.20
–
19633.76
275.00
–
–
–
9776.15 29409.91
275.00
–
113.52
113.52
1147.02
1147.02
1201.78
1201.78
22412.79 12741.60 35154.39
38.63
0.25
0.08
38.63
0.25
0.08
–
–
–
49092.72
23822.04 72914.76
42321.55 25019.03 67340.58
As at 31-3-2018
As at 31-3-2017
v crore
19.97
79.39
0.52
254.07
353.95
v crore
38.39
32.48
0.65
154.57
226.09
As at 31-3-2018
As at 31-3-2017
v crore
301.13
209.04
12.44
0.93
523.54
v crore
294.74
221.19
9.21
1.46
526.60
Loans guaranteed by directors R Nil (previous year: R Nil)
NOTE [23]
Other financial liabilities - non-current
Particulars
Forward contract payables
Embedded derivatives payables
Financial guarantee contracts
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 employee benefits-others
Other provisions [Note 53]
392
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [25]
Other non-current Liabilities
Other payables
Particulars
NOTE [26]
Financial Liabilities: Borrowings - current
As at 31-3-2018
As at 31-3-2017
v crore
67.97
67.97
v crore
172.14
172.14
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
As at 31-3-2018
As at 31-3-2017
Loans repayable on demand
Short term loans and advances from banks
Short term unsecured loans from others
Commercial paper
v crore
v crore
v crore
v crore
v crore
v crore
1511.47
96.88
–
–
57.66
4005.91
463.73
1569.13
4102.79
463.73
13196.20 13196.20
1804.40
1738.90
2307.06
365.83
–
429.05
– 11993.96 11993.96
65.50
1941.23
429.05
1608.35
17723.50 19331.85
2104.73 14429.74 16534.47
NOTE [27]
Financial Liabilities: Current maturities of long term borrowings
Particulars
Secured Unsecured
Total
Secured Unsecured
Total
As at 31-3-2018
As at 31-3-2017
Redeemable non-convertible fixed rate debentures
Redeemable non-convertible floating rate debentures
Preference shares
Term loans from banks
Loans from financial institutions
Finance lease obligation [Note 48(b)(i)(B)]
Sales tax deferment loan
Loans guaranteed by directors R Nil (previous year: R Nil)
v crore
v crore
v crore
v crore
v crore
v crore
6777.81
0.94
–
5132.80
–
–
–
1740.55
–
249.55
1375.68
–
0.06
0.08
8518.36
0.94
249.55
6508.48
–
0.06
0.08
5181.37
–
–
993.20
0.63
–
–
2217.74
–
178.82
1506.34
–
0.60
0.20
7399.11
–
178.82
2499.54
0.63
0.60
0.20
11911.55
3365.92 15277.47
6175.20
3903.70 10078.90
393
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
Forward contract payables
Embedded derivative payables
Due to others
NOTE [30]
Other current liabilities
Particulars
Due to customers- construction contract
Due to customers (property development projects)
Advances from customers
Other payables
394
As at 31-3-2018
As at 31-3-2017
v crore
v crore
447.62
v crore
v crore
390.20
23.03
1142.79
18.41
1928.39
1165.82
176.45
36005.07
37794.96
1946.80
130.26
27827.60
30294.86
As at 31-3-2018
As at 31-3-2017
v crore
63.69
14.16
0.95
171.65
131.84
4466.70
4848.99
v crore
46.61
10.87
1.55
544.33
184.70
4040.58
4828.64
As at 31-3-2018
As at 31-3-2017
v crore
8610.43
705.11
15036.31
2975.12
27326.97
v crore
6163.28
525.44
13955.55
2740.28
23384.55
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
Other provisions [Note 53]
NOTE [32]
Contingent Liabilities
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 (including penalty) that may arise in respect of which
the Group is in appeal
e) Guarantees or Letter of credit or letter of comfort given to third parties
f) Contingent Liabilities incurred in relation to interest in joint operations
g) Share in contingent liabilities of joint operations for which the Group is
contingently liable
h) Contingent liabilities in respect of liabilities of other joint operators in
respect of joint operations
Notes:
As at 31-3-2018
As at 31-3-2017
v crore
v crore
v crore
v crore
215.17
1024.72
25.55
13.12
5.00
68.54
1131.65
199.94
999.95
22.67
13.36
4.09
1283.56
1240.01
18.94
1408.86
1200.19
2483.75
1427.80
2667.81
As at 31-3-2018
As at 31-3-2017
v crore
3386.98
254.63
356.23
692.12
2555.45
7267.96
139.20
6576.16
v crore
4431.11
273.06
269.04
753.92
823.76
7018.24
53.24
6230.96
(i)
The Group expects reimbursements of R 97.67 crore (previous year: R 34.01 crore) in respect of the above contingent liabilities.
(ii)
It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution
of the arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above excludes interest and penalty in cases
where the Group has determined that the possibility of such levy is remote.
(iii)
In respect of matters at (e), the cash flows, if any, could occur any time during the subsistence of the underlying agreement.
(iv)
In respect of matters at (f) to (h), the cash outflows, if any, could generally occur upto completion of projects undertaken by the
respective joint operations.
(v) Particulars of share in contingent liabilities of joint ventures and associates are given in Note 55 (g).
395
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [33]
Commitments:
Particulars
(i) Estimated amount of contracts remaining to be executed on capital
account for Property, plant & equipment (net of advances)
(ii) Estimated amount of contracts remaining to be executed for Intangible
assets
(iii) Estimated amount of contracts remaining to be executed for Investment
property
NOTE [34]
Revenue from operations
Sales & service:
Particulars
Construction and project related activity [Note 44(a)]
Manufacturing and trading activity
Engineering service fees
Software development products and services
Income from financing activity/annuity based projects
Property development activity [Note 44(c)]
Fare collection and related activities
Servicing fees
Commission
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
Premium earned (net) on related forward exchange contracts
Profit on sale of subsidiaries/associate of realty business
Profit on sale of investment properties
Miscellaneous income
As at 31-3-2018
As at 31-3-2017
v crore
836.78
2075.57
409.74
v crore
883.58
2908.45
495.95
2017-18
2016-17
v crore
v crore
v crore
v crore
83595.78
7838.44
3849.87
7445.55
10452.48
686.81
28.60
737.52
206.98
0.79
615.56
2628.68
–
15.73
111.02
1.75
59.44
–
619.09
968.01
74504.71
9083.68
3312.25
6482.86
9190.34
2272.71
–
825.71
163.89
1.66
357.87
2216.31
174.73
118087.06
108586.72
19.64
70.89
–
59.56
95.81
–
1178.38
1775.04
119862.10
1424.28
110011.00
396
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [35]
Other income
Particulars
Interest income:
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
Current investments
Net gain/(loss) on sale or fair valuation of investments
Gain/(loss) on derivatives at fair value through profit or loss
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
2017-18
2016-17
v crore
v crore
v crore
v crore
33.99
399.47
107.10
125.11
1.66
53.78
2692.64
22.19
205.77
82.12
112.54
665.67
422.62
1.64
82.45
664.54
84.09
664.54
34.22
(56.89)
17.88
8.03
169.62
1344.11
55.44
2692.64
(2217.72)
(125.74)
67.14
5.46
269.14
1412.03
2017-18
2016-17
v crore
v crore
v crore
v crore
15492.48
115.27
14425.96
104.98
15377.21
178.94
24057.20
1357.76
2384.91
24639.02
1387.31
(29.55)
245.25
200.63
4540.13
2307.47
110.70
–
7404.18
1610.57
–
340.82
188.59
4385.19
1259.39
–
–
6173.99
6173.99
14320.98
699.19
20716.99
1610.57
2090.42
22560.54
61998.69
397
Carried forward
7404.18
67995.04
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
Property development land
Value of inventory transferred on sale of business
Other manufacturing, construction and operating expenses:
Excise duty on stocks
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
Miscellaneous expenses
2017-18
2016-17
v crore
7404.18
v crore
67995.04
v crore
6173.99
v crore
61998.69
340.82
188.59
4385.19
1259.39
–
6173.99
(1230.19)
–
(48.72)
1276.40
16.00
411.41
1663.04
203.15
–
1423.68
252.41
530.37
414.42
875.89
83.03
8.27
412.88
2998.51
284.99
179.99
4570.76
1197.58
293.63
6526.95
352.96
(268.96)
(1230.19)
84.00
19.28
1309.05
16.44
383.45
1375.15
188.56
152.01
1163.42
230.88
492.58
405.05
1016.00
92.16
25.42
377.86
3347.73
Finance cost of financial services business and finance lease activity:
Interest and other financing charges
6019.74
5362.09
10520.74
10595.04
6019.74
83305.33
5362.09
78039.82
398
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [37]
Employee benefits expense
Particulars
Salaries, wages and bonus
Contribution to and provision for:
2017-18
2016-17
v crore
v crore
13666.38
v crore
v crore
12340.21
Provident fund and pension fund
Superannuation/employee pension and social security schemes
Gratuity funds [Note 45(b)(ii)]
254.27
188.49
140.83
225.25
179.80
131.78
Expenses on employee stock option 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
Miscellaneous expenses
Bad debts and advances written off
Less: Allowances for doubtful debts and advances written back
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
583.59
111.39
179.16
1011.83
(259.87)
15292.48
536.83
88.17
171.80
996.90
(279.94)
13853.97
2017-18
v crore
v crore
118.13
157.36
76.47
536.31
151.38
688.91
31.77
446.05
730.79
6.28
206.18
168.36
63.88
2016-17
v crore
v crore
114.14
157.97
69.73
496.13
166.98
623.48
20.66
440.43
598.85
3.60
201.19
180.05
64.63
286.64
6.49
458.55
82.24
499.91
7.12
1205.38
372.36
507.03
155.37
739.19
833.02
36.25
2214.17
(2.28)
(245.82)
79.30
7698.10
293.13
127.84
644.50
376.31
50.90
2075.53
(8.91)
62.34
228.76
6988.24
399
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [38] (contd.)
38(a) Aggregation of expenses disclosed vide [Note 36 -Manufacturing ,construction and operating expenses], [Note 37 - Employee
benefits expense], [Note 38 - Sales, administration and other expenses] and [Note 39 - Finance costs]
2017-18
Note 38:
Sales,
administration
and other
expenses
118.13
157.36
76.47
536.31
151.38
688.91
–
31.77
446.05
730.79
Note 39:
Finance costs
Total
Note 36:
Manufacturing,
construction
and operating
expenses
1309.05
383.45
230.88
492.58
405.05
1016.00
92.16
25.42
Note 37:
Employee
benefits
expense
–
–
171.80
–
–
–
–
–
1394.53
568.77
508.04
1066.68
565.80
1564.80
83.03
40.04
858.93
377.86
2154.47
1163.42
–
–
–
–
–
–
–
–
–
–
–
739.19
1538.52
–
7558.26
3737.57
5362.09
3347.73
R crore
Note 39:
Finance costs
Total
–
–
–
–
–
–
–
–
–
–
1423.19
541.42
472.41
988.71
572.03
1639.48
92.16
46.08
818.29
1762.27
2016-17
Note 38:
Sales,
administration
and other
expenses
114.14
157.97
69.73
496.13
166.98
623.48
–
20.66
440.43
598.85
–
644.50
1338.73
–
6700.82
3992.23
–
–
–
–
2017-18
v crore
1511.08
13.07
14.37
1538.52
2016-17
v crore
1270.52
2.58
65.63
1338.73
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
Nature of expenses
Power and fuel
Packing and forwarding
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to plant and equipment
Repairs to buildings
General repairs and
maintenance
Engineering, professional,
technical and consultancy fees
Interest and other financing
charges
12 Miscellaneous expenses
NOTE [39]
Finance costs
Note 36:
Manufacturing,
construction
and operating
expenses
1276.40
411.41
252.41
530.37
414.42
875.89
83.03
8.27
412.88
1423.68
6019.74
2998.38
Note 37:
Employee
benefits
expense
–
–
179.16
–
–
–
–
–
–
–
–
–
Particulars
Interest expenses
Other borrowing costs
Exchange loss (attributable to finance costs)
400
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40]
The List of subsidiaries, associates, joint ventures and joint operations included in the Consolidated Financial Statements are as under:
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.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
Name of subsidiary company
Indian Subsidiaries
Hi-Tech Rock Products and Aggregates Limited
L&T Geostructure LLP
L&T Infrastructure Engineering Limited
L&T Cassidian Limited #
Spectrum Infotech Private Limited @
L&T Hydrocarbon Engineering Limited
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
AugmentIQ Data Sciences Private Limited %
L&T Thales Technology Services Private Limited
Syncordis Software Services India Private Limited ^^
Esencia Technologies India Private 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 Private Limited
L&T Infra Investment Partners Trustee Private Limited
L&T Infrastructure Finance Company Limited
L&T Investment Management Limited
L&T Mutual Fund Trustee Limited
L&T Trustee Company Private Limited
L&T Financial Consultants Limited
Mudit Cement Private Limited
L&T Access Distribution Services Limited @@
L&T Finance Limited
L&T Infra Investment Partners
L&T Metro Rail (Hyderabad) Limited
Sahibganj Ganges Bridge-Company Private Limited
Marine Infrastructure Developer Private Limited
L&T Arunachal Hydropower Limited
L&T Himachal Hydropower Limited
L&T Power Development Limited
L&T Uttaranchal Hydropower Limited
Nabha Power Limited
Chennai Vision Developers Private Limited
L&T Asian Realty Project LLP
L&T Parel Project LLP
L&T Realty Limited
L&T westend project LLP ^^^
L&T Seawoods Limited
L&T Vision Ventures Limited
Seawoods Retail Private Limited #
Principal place
of business
As at 31-3-2018
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
100.00
74.00
100.00
100.00
–
100.00
82.96
88.64
–
65.60
82.96
88.64
64.01
64.01
64.01
64.01
64.01
64.01
64.01
64.01
64.01
100.00
64.01
64.01
–
64.01
35.16
100.00
100.00
97.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
68.00
100.00
100.00
74.00
100.00
100.00
–
100.00
82.96
88.64
–
65.60
82.96
88.64
64.01
64.01
64.01
64.01
64.01
64.01
64.01
64.01
64.01
100.00
64.01
64.01
–
64.01
35.16
100.00
100.00
97.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
68.00
100.00
100.00
74.00
100.00
74.00
100.00
100.00
84.28
89.77
84.28
66.43
–
–
66.62
66.62
66.62
66.62
66.62
66.62
66.62
66.62
66.62
100.00
66.62
66.62
66.62
66.62
36.55
100.00
100.00
97.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
68.00
100.00
100.00
74.00
100.00
74.00
100.00
100.00
84.28
89.77
84.28
66.43
–
–
66.62
66.62
66.62
66.62
66.62
66.62
66.62
66.62
66.62
100.00
66.62
66.62
66.62
66.62
36.55
100.00
100.00
97.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
68.00
100.00
401
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
No.
Name of subsidiary company
Principal place
of business
As at 31-3-2018
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
India
India
India
India
India
India
India
India
India
India
India
India
India
Indian Subsidiaries
Seawoods Realty Private Limited #
44.
L&T Electricals and Automation Limited
45.
L&T Construction Equipment Limited
46.
L&T Cutting Tools Limited *
47.
L&T Valves Limited
48.
EWAC Alloys Limited **
49.
L&T Shipbuilding Limited
50.
Bhilai Power Supply Company Limited
51.
L&T Power Limited
52.
Kesun Iron and Steel Company Private Limited
53.
L&T Aviation Services Private Limited
54.
L&T Capital Company Limited
55.
L&T Infra Contractors Private Limited
56.
The Group has sold its stake on September 27, 2017
*
The Group has sold its stake on November 16, 2017
**
The Company is merged with Larsen & Toubro Limited w.e.f. April 1, 2017
@
@@ The Company is merged with L&T Capital Markets Limited w.e.f. April 1, 2017
^
The Group acquired stake on June 1, 2017
^^ The Group acquired stake on December 11, 2017
^^^ The Company is incorporated on August 8, 2017
%
#
The Company is merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2017
The Company is in process for closure
Name of subsidiary company
Foreign Subsidiaries
Larsen & Toubro (Oman) LLC
Larsen & Toubro Qatar LLC#
Larsen & Toubro Saudi Arabia LLC
Larsen & Toubro T&D SA (Proprietary) Limited
Larsen & Toubro Readymix & Asphalt Concrete
Industries LLC*
Larsen & Toubro Heavy Engineering LLC
Principal place
of business
Sultanate of
Oman
Qatar
Kingdom of
Saudi Arabia
South Africa
UAE
Sultanate of
Oman
L&T Modular Fabrication Yard LLC
Larsen & Toubro Hydrocarbon International Limited LLC Kingdom of
Saudi Arabia
Sultanate of
Oman
Nigeria
Kingdom of
Saudi Arabia
L&T Overseas Projects Nigeria Limited
Larsen Toubro Arabia LLC
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
402
100.00
100.00
100.00
–
100.00
–
97.00
99.90
99.99
95.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
–
97.00
99.90
99.99
95.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.00
99.90
99.99
95.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.00
99.90
99.99
95.00
100.00
100.00
100.00
As at 31-3-2018
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
65.00
49.00
100.00
72.50
65.00
100.00
100.00
72.50
65.00
49.00
100.00
72.50
65.00
100.00
100.00
72.50
–
–
49.00
100.00
70.00
99.99
70.00
70.00
100.00
100.00
100.00
100.00
70.00
100.00
99.99
100.00
65.00
100.00
65.00
100.00
75.00
99.99
75.00
75.00
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
No.
11.
Name of subsidiary company
Foreign Subsidiaries
Larsen & Toubro ATCO Saudi LLC
Principal place
of business
Kingdom of
Saudi Arabia
As at 31-3-2018
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
100.00
100.00
75.00
75.00
12.
Larsen & Toubro Kuwait Construction General
Contracting Company WLL
Kuwait
49.00
100.00
49.00
75.00
13.
PT Larsen & Toubro Hydrocarbon Engineering
Indonesia
14.
Larsen & Toubro Electromech LLC **
15.
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, S.L.
Larsen & Toubro LLC
L&T Technology Services LLC
L&T Infotech S. DE R.L. DE C.V. ^
Syncordis S.A. Luxembourg ^^
Syncordis France SARL^^
Syncordis Limited ^^
Syncordis PSF S.A. ^^
Esencia Technologies, Inc. ^^^
L&T Realty FZE
Henikwon Corporation SDN. BHD.
Kana Controls General Trading & Contracting Company
W.L.L.
L&T Electrical & Automation FZE
L&T Electricals & Automation Saudi Arabia Company
Limited LLC
PT Tamco Indonesia
Servowatch Systems Limited
Tamco Electrical Industries Australia Pty Limited
Tamco Switchgear (Malaysia) SDN BHD
Thalest Limited
Larsen & Toubro (East Asia) Sdn.Bhd.
Larsen & Toubro International FZE
L&T Global Holdings Limited
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
Indonesia
Sultanate of
Oman
China
Canada
Canada
USA
South Africa
Germany
Austria
Spain
USA
USA
Mexico
Luxembourg
France
UK
Luxembourg
USA
UAE
Malaysia
Kuwait
UAE
Kingdom of
Saudi Arabia
Indonesia
UK
Australia
Malaysia
UK
Malaysia
UAE
UAE
95.00
70.00
82.96
82.96
82.96
82.96
62.14
82.96
82.96
82.96
99.19
88.64
82.96
82.96
82.96
82.96
82.96
88.64
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
30.00
100.00
100.00
95.00
99.99
82.96
82.96
82.96
82.96
62.14
82.96
82.96
82.96
99.19
88.64
82.96
82.96
82.96
82.96
82.96
88.64
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
The Group has sold its stake on September 28, 2017
*
^
The Group has acquired stake on March 1, 2017
^^ The Group has acquired stake on December 15, 2017
^^^ The Group has acquired stake on June 1, 2017
**
#
The company is reclassified from joint venture to subsidiary due to purchase of additional stake on August 16, 2017
The company is in the process of liquidation
95.00
95.00
–
–
84.28
84.28
84.28
84.28
63.12
84.28
84.28
84.28
100.00
89.77
–
–
–
–
–
–
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
30.00
100.00
100.00
84.28
84.28
84.28
84.28
63.12
84.28
84.28
84.28
100.00
89.77
–
–
–
–
–
–
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
403
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
@
^
Name of associate company
Principal place
of business
L&T-Chiyoda Limited
Gujarat Leather Industries Limited@
Larsen & Toubro Qatar & HBK Contracting Co.WLL
L&T Camp Facilities LLC
International Seaport (Haldia) Private Limited
Magtorq Private Limited
Feedback Infra Private Limited^^
Grameen Capital India Limited^
Ardom Towergen Private Limited
KMC Infratech Road Holdings Limited^^^
India
India
Qatar
UAE
India
India
India
India
India
India
As at 31-3-2018
As at 31-3-2017
Proportion
of effective
ownership
Interest (%)
50.00
50.00
50.00
49.00
21.74
42.85
–
16.64
7.77
–
Proportion of
voting power
held (%)
50.00
50.00
50.00
49.00
21.74
42.85
–
16.64
7.77
–
Proportion
of effective
ownership
Interest (%)
50.00
50.00
50.00
49.00
21.74
42.85
15.42
17.32
8.08
0.09
Proportion of
voting power
held (%)
50.00
50.00
50.00
49.00
21.74
42.85
15.42
17.32
8.08
0.09
The company is in process for closure
The 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 Group has sold its stake on March 19, 2018
^^
^^^ The Group has sold its stake on September 7, 2017
Sr. No. Name of joint venture
As at 31-3-2018
As at 31-3-2017
Principal place of
business
Proportion of effective
ownership interest (%)
Proportion of effective
ownership interest (%)
Joint Ventures
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Howden Private Limited
L&T-Sargent & Lundy Limited
L&T Special Steels and Heavy Forgings Private Limited
L&T MBDA Missile Systems Limited *
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T-Gulf Private Limited
L&T Hydrocarbon Caspian LLC **
L&T Infrastructure Development Projects Limited
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
Panipat Elevated Corridor Limited
Krishnagiri Thopur Toll Road Limited
Western Andhra Tollways Limited
Vadodara Bharuch Tollway Limited
L&T Transportation Infrastructure Limited
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
404
India
India
India
India
India
India
India
India
India
Azerbaijan
India
India
India
India
India
India
India
India
India
India
India
India
India
51.00
51.00
50.10
50.00
74.00
51.00
60.00
60.00
50.00
50.00
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
98.12
51.00
51.00
50.10
50.00
74.00
–
60.00
60.00
50.00
–
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
97.45
98.12
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr. No. Name of joint venture
Joint Ventures
LTIDPL INDVIT Services Limited(formerly known as L&T Western
24.
India Tollbridge Limited)
As at 31-3-2018
As at 31-3-2017
Principal place of
business
Proportion of effective
ownership interest (%)
Proportion of effective
ownership interest (%)
L&T Interstate Road Corridor Limited
Ahmedabad-Maliya Tollway Limited
L&T Port Kachchigarh Limited #
L&T Halol-Shamlaji Tollway Limited
Krishnagiri Walajahpet Tollway Limited
Devihalli Hassan Tollway Limited
PNG Tollway Limited
L&T IDPL Trustee Manager Pte. Ltd.
L&T Kobelco Machinery Private Limited
Raykal Aluminium Company Private Limited
Larsen & Toubro Electromech LLC ^
Indiran Engineering Projects and Systems Kish PJSC
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
The company is reclassified from joint venture to subsidiary due to purchase of additional stake on August 16, 2017
^
The company is merged with L&T Infrastructure Development Projects Limited w.e.f. April 1,2016
#
The joint venture has been entered on April 5, 2017
*
** The joint venture has been entered on June 24, 2017
India
India
India
India
India
India
India
India
Singapore
India
India
Sultanate of Oman
Iran
97.45
97.45
97.45
–
47.75
97.45
97.45
72.11
97.45
51.00
75.50
–
50.00
97.45
97.45
97.45
97.45
47.75
97.45
97.45
72.11
97.45
51.00
75.50
65.00
50.00
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Name of joint operation (with specific ownership interest in
the arrangement)
Desbuild L&T Joint Venture
Larsen and Toubro Limited-Shapoorji Pallonji & Co. Ltd. Joint
Venture
Al Balagh Trading & Contracting Co W.L.L- L&T Joint Venture
L&T - AM Tapovan Joint Venture
HCC - L&T Purulia Joint Venture
International Metro Civil Contractors Joint Venture
Metro Tunneling Group
L&T - Hochtief Seabird 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
L&T-Shanghai Urban Construction (Group) Corporation Joint
Venture CC27 Delhi
Aktor-Larsen & Toubro-Yapi Merkezi-STFA-Al Jaber Engineering
Joint Venture
Civil Works Joint Venture
L&T-Shanghai Urban Construction (Group) Corporation Joint
Venture
DAEWOO and L&T Joint Venture
L&T – STEC JV MUMBAI
L&T- ISDPL (JV)^^
Principal place of
business
As at 31-3-2018
Proportion of effective
ownership interest (%)
As at 31-3-2017
Proportion of effective
ownership interest (%)
India
India
Qatar
India
India
India
India
India
India
India
India
Qatar
Kingdom of Saudi
Arabia
India
India
India
India
49.00
50.00
80.00
65.00
43.00
26.00
26.00
90.00
75.00
60.00
68.00
22.00
29.00
51.00
50.00
65.00
100.00
49.00
50.00
80.00
65.00
43.00
26.00
26.00
90.00
75.00
60.00
68.00
22.00
29.00
51.00
50.00
65.00
–
405
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr.
No.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
Name of joint operation (with specific ownership interest in
the arrangement)
L&T-IHI Consortium^^^
L&T-Eastern Joint Venture**
Larsen and Toubro Limited-Scomi Engineering BHD Consortium-
Residual Joint Works Joint Venture
Larsen and Toubro Limited-Scomi Engineering BHD Consortium-
O&M Joint Venture
L&T- Inabensa Consortium***
L&T-Delma Mafraq Joint Venture
L&T-AL-Sraiya LRDP 6 Joint Venture
Larsen & Toubro Limited & NCC Limited Joint Venture
Besix - Larsen & Toubro Joint Venture
Larsen & Toubro Ltd - Passavant Energy & Environment JV ^
LNT-Shriram EPC Tanzania UJV%
LTH Milcom Private Limited
Bauer- L&T Geo Joint Venture
EMAS Saudi Arabia Ltd
The joint operation is in the process of liquidation.
The joint operation has been entered on October 12, 2016
The joint operation has been entered on December 1, 2017
**
^
^^
^^^ The joint operation has been entered on July 14, 2017
The joint operation has been entered on April 25, 2016
***
The joint operation has been entered on December 25, 2016
%
Principal place of
business
As at 31-3-2018
Proportion of effective
ownership interest (%)
As at 31-3-2017
Proportion of effective
ownership interest (%)
India
UAE
India
India
India
UAE
Qatar
India
UAE
India
Tanzania
India
India
Kindgom of Saudi
Arabia
100.00
65.00
60.00
50.00
100.00
100.00
75.00
55.00
50.00
50.00
90.00
56.67
37.00
50.00
–
65.00
60.00
50.00
100.00
60.00
75.00
55.00
50.00
50.00
90.00
56.67
37.00
50.00
Sr. No. Name of joint operation (with specific proportion of activity carried out through the arrangement) Principal place of business
1.
2.
3.
4.
5.
6.
7.
8.
9.
L&T Sojitz Consortium
L&T-KBL (UJV) Hyderabad
L&T-KBL-MAYTAS UJV
Mallanna Sagar Reservoir LnT-Prasad-RK Infra JV
Larsen & Toubro Limited Waterleau Consortium
L&T-BRAPL JV (package II)
L&T-BRAPL JV (package III)
IIS - L&T Consortium
PES Engg P ltd-L&T Consortium
10.
11.
L&T ISDPL - DI (JV)
L&T Galfar Consortium
12(a).
L&T Oman-L&T consortium
12(b).
L&T Oman-L&T consortium
12(c).
L&T Oman-L&T consortium
13(a).
Sojitz Corporation-L&T consortium
13(b).
Sojitz Corporation-L&T consortium
13(c).
Sojitz Corporation-L&T consortium
406
India
India
India
India
Qatar
India
India
India
India
India
Oman
Oman
Oman
Oman
India
India
India
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [40] (contd.)
Sr. No. Name of joint operation (with specific proportion of activity carried out through the arrangement) Principal place of business
14.
15.
16.
17.
18.
19.
20.
21.
Sojitz Corporation-Gayathri Projects Ltd-L&T consortium
PESB and Larsen & Toubro Joint Venture
Scomi Engineering Bhd-L&T consortium
Sojitz Corporation-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.
L&T Parel Project LLP-Omkar Realtors & Developers Pvt. Ltd. (Crescent bay)
L&T Asian Realty Project LLP-Nirmal Life Style Developers Pvt. Ltd. (Nirmal Lifestyle)
India
Malaysia
India
India
India
Kingdom of Saudi Arabia
India
India
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.
NOTE [42]
(a) Exceptional items for 2017-18 include:
i.
Gain on divestment of Group’s stake in subsidiary companies (EWAC Alloys Limited: R 281.01 crore and L&T Cutting Tools
Limited: R 136.74 crore).
ii. Write off of trade receivable from a customer against whom insolvency proceedings are underway R 294.75 crore [note 1(x)
(vii)].
(b) Exceptional items for 2016-17 include:
i.
ii.
Gain on divestment of Group’s stake in a subsidiary company (L&T General Insurance Company Limited) R 402.43 crore.
Impairment of investment in a joint venture company (L&T Infrastructure Development Projects Limited) R 281.00 crore.
(c) On May 1, 2018, the Company signed, subject to regulatory approvals, definitive agreements with Schneider Electric for strategic
divestment of its Electrical and Automation (E&A) business (a reported segment which includes certain associated subsidiary
companies outside India), for an all-cash consideration of R 14000 crore which is subject to customary post-closing adjustments.
In view of the pro-longed timelines for obtaining regulatory approvals, the E&A business is not classified as “discontinued
operation” and the related assets and liabilities have not been classified as “held for sale” in accordance with the applicable
accounting standards.
NOTE [43]
The expenditure on research and development activities recognised as expense in the Statement of Profit and Loss is R 179.90 crore
(previous year: R 177.88 crore). Further, the Group has incurred capital expenditure on research and development activities as follows:
(a) on Property, Plant & Equipment R 6.73 crore (previous year: R 9.75 crore)
(b) on intangible assets being expenditure on new product development R 49.91 crore (previous year: R 43.01 crore)
(c) on other intangible assets R 3.81 crore (previous year: R 3.20 crore)
NOTE [44]
(a) Disclosures pursuant to Ind AS 11 “Construction Contracts”:
Sr.
No.
i
ii
Particulars
Contract revenue recognised for the financial year [Note 34]
Aggregate amount of contract costs incurred and recognised profits (less recognised
losses*) as at the end of the financial year for all contracts in progress as at that date
iii. Amount of customer advances outstanding for contracts in progress as at the end of the
iv.
financial year
Retention amount by customers for contracts in progress as at the end of the financial year
* Includes Provision for foreseeable loss
2017-18
v crore
2016-17
83595.78
318302.24
74504.71
265885.96
14298.92
13267.98
10113.25
248.55
8258.37
247.41
407
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [44] (contd.)
(b) The Group has undertaken a project for construction, operation and maintenance of the Metro Rail System on Design-Build-
Finance-Operate-Transfer (DBFOT) basis as per the concession agreement with the government authorities. The significant terms of
the arrangement are as under-
Period of the Concession
Remuneration
Funding from grantor
Infrastructure return at the end of
the concession period
Renewal and termination Options
Rights & Obligations
Classification of Service
Arrangement
Construction revenue recognised
Initial period of 36 years & 5 months and extendable by another 25 years at the option of
the concessionaire subject to fulfilment of certain conditions under concession agreement.
Fare collection Rights from the users of the Metro Rail System, license to use land provided
by the government for constructing depots and for transit oriented development and earn
lease rental income on such development and grant of viability gap fund.
Viability Gap Funding of R 1458 crore
Being DBFOT project, the project assets have to be transferred at the end of concession
period
Further extension of 25 years will be granted at the option of the concessionaire upon
satisfaction of Key Performance Indicators laid under the concession agreement. This
option is to be exercised by the concessionaire during the 33rd year of the initial concession
period. Termination of the Concession Agreement can either be due to (a) Force Majeure
(b) Non Political event (c) Indirect political event (d) Political event. On occurrence of any
of the above events, the obligations, dispute resolution, termination payments etc. are as
detailed in the Concession Agreement.
Major obligations of the concessionaire are relating to–
(a) project agreements
(b) change in ownership
(c)
issuance of Golden Share to the Government
(d) maintenance of aesthetic quality of the Rail System
(e) operation and maintenance of the rolling stock and equipment necessary and
sufficient for handling Users equivalent to 110% of the Average PHPDT etc.
Major obligations of the Government are –
(a) providing required constructible right of way for construction of rail system and land
required for construction of depots and transit oriented development.
(b) providing reasonable support and assistance in procuring applicable permits required
for construction
(c) providing reasonable assistance in obtaining access to all necessary infrastructure
facilities and utilities
(d) obligations relating to competing facilities
(e) obligations relating to supply of electricity etc.
Intangible assets have been recognised towards rights to charge the users of the utility
R 469.10 crore (previous year: R 790.85 crore) [included in 44(a)(i) above]
(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.
Particulars
Amount of project revenue recognised for the financial year [Note 34]
Aggregate amount of costs incurred and profits recognised (less recognised losses) as at
the end of the financial year
iii. Amount of advances received
iv.
v.
Amount of work-in-progress and the value of inventories [Note 11]
Excess of revenue recognised over actual bills raised (unbilled revenue) [Note 19]
2017-18
686.81
4967.14
20.95
2307.47
–
v crore
2016-17
2272.71
4507.66
65.54
1259.76
91.05
408
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45]
Disclosure pursuant to Ind AS 19 “Employee Benefits” [Note 1(o)]
(a) Defined contribution plans: Amount of R 387.19 crore (previous year: R 346.85 crore) is recognised as an expense. Out of above,
R 386.04 crore (previous year: R 345.24 crore) is included in “employee benefit expense” [Note 37] in the Statement of Profit and
Loss and R 1.15 crore (previous year: R 1.61 crore) has been capitalised.
(b) Defined Benefit plans:
(i)
The amounts recognised in Balance Sheet are as follows:
Particulars
Gratuity plan
As at
31-3-2018
As at
31-3-2017
Post-retirement medical
benefit plan
As at
31-3-2018
As at
31-3-2017
Pension plan
Trust-managed
provident fund plan
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
v crore
A)
Present value of defined benefit obligation
– Wholly funded
– Wholly unfunded
Less: Fair value of plan assets
Add: Amount not recognised as an asset
676.92
215.17
892.09
610.99
640.87
203.29
844.16
615.72
–
222.16
222.16
–
–
234.55
234.55
–
–
326.68
326.68
–
–
317.41
317.41
–
3618.47
14.84
3633.31
3676.19
3315.73
2.59
3318.32
3348.38
(limit in para 64(b))
4.78
4.80
–
–
–
–
–
–
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
285.88
233.24
222.16
234.55
326.68
317.41
(42.88)
(30.06)
292.73
(6.85)
285.88
285.88
–
240.91
(7.67)
233.24
233.24
–
222.16
–
222.16
13.12
209.04
234.55
–
234.55
13.36
221.19
326.68
–
326.68
25.55
301.13
317.41
–
317.41
22.67
294.74
33.83
(2.96)
30.87
30.87
–
# 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
32.50
(4.95)
27.55
27.55
–
v crore
2017-18
134.31
45.74
(41.19)
(24.87)
2016-17
127.65
44.23
(40.51)
(47.34)
2017-18
21.51
16.48
–
–
2016-17
16.47
14.59
–
–
2017-18
3.68
22.00
–
–
Trust-managed
provident fund plan
2017-18
2016-17
2016-17
2.48 116.19 $ 115.73 $
21.47
–
–
259.47
(259.47)
(18.82)
280.26
(280.26)
(14.02)
21.00
35.88
(34.82)
19.11
3.75
23.64
–
(9.87)
Past service cost
6.
7. Actuarial gain/(loss) not recognised in
3.30
–
–
–
(0.70)
–
–
(0.19)
0.27
(0.39)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14.02
–
28.69
–
–
–
–
1.
2.
3.
4.
5.
Current service cost
Interest cost
Interest income on plan assets
Re-measurement - Actuarial losses/(gains)
- Difference between actual return on
plan assets and interest income
Re-measurement - Actuarial losses/
(gains) - Others
books
8. Adjustment for earlier years
9.
Re-measurement - Effect of the limit in
para 64(b)
10. Translation adjustments
11. Amount capitalised out of the above
Total (1 to 11)
(0.30)
(0.81)
136.99
0.91
(0.46)
120.24
–
(0.02)
2.45
–
(0.01)
50.16
–
–
29.43
–
–
47.59
–
–
116.19
–
–
115.73
409
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
Particulars
Gratuity plan
Post-retirement medical
benefit plan
Pension plan
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
v crore
Trust-managed
provident fund plan
2017-18
2016-17
I.
Amount included in “employee benefits
expense”
140.83
131.78
22.60
18.44
3.68
2.48
116.19
115.73
II. Amount included as part of
“manufacturing construction and
operating expenses”
III. Amount included as part of “finance cost”
IV. Amount included as part of “Other
comprehensive income
Total (I+II+III+IV)
Actual return on plan assets
0.21
0.47
–
0.31
–
14.67
(4.52)
136.99
66.06
(11.85)
120.24
87.85
(34.82)
2.45
–
–
12.61
19.11
50.16
–
–
22.00
3.75
29.43
–
–
21.47
23.64
47.59
–
–
–
–
–
–
116.19
294.28
–
115.73
278.29
(iii) The changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances
thereof are as follows:
Gratuity plan
As at
31-3-2018
As at
31-3-2017
Post-retirement medical
benefit plan
As at
31-3-2018
As at
31-3-2017
Pension plan
As at
31-3-2018
As at
31-3-2017
v crore
Trust-managed provident
fund plan
As at
31-3-2018
As at
31-3-2017
Opening balance of the present value of
defined benefit obligation
Add: Current service cost
Add: Interest cost
Add: Contribution by plan participants
i)
ii)
Employer
Employee
Add/(less): Re-measurement - Actuarial
losses/(gains)
i)
Actuarial (gains)/losses
arising from changes in
demographic assumptions
Actuarial (gains)/losses
arising from changes in
financial assumptions
Actuarial (gains)/losses
arising from changes in
experience adjustments
ii)
iii)
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
844.16
134.31
45.74
758.23
127.65
44.23
234.55
21.51
16.48
193.31
16.47
14.59
317.41
3.68
22.00
287.55 3318.32
2.48
21.47
116.19 $
280.26
3036.16
115.73 $
259.47
–
–
–
–
–
–
–
–
–
–
–
–
–
295.03
–
288.27
19.82
0.15
(30.16)
0.08
–
–
–
–
(16.61)
26.79
(18.66)
24.41
(15.48)
17.43
–
(9.87)
17.79
(168.71)
3.30
6.28
8.94
(127.70)
–
–
5.49
–
0.52
(1.89)
0.38
7.38
14.00
(12.02)
(0.70)
–
(2.84)
–
–
(5.38)
(8.93)
–
–
19.23
(20.16)
–
–
6.21
(17.73)
–
–
–
(482.35)
–
105.86
–
(388.56)
0.01
17.11
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
defined benefit obligation
892.09
844.16
222.16
234.55
326.68
317.41
3633.31
3318.32
410
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:
Particulars
Opening balance of the fair value of the plan assets
Add: Interest Income on plan assets*
Add/(Less): Re-measurement - Actuarial gains/(losses)
Add/(Less): Actuarial gains/(losses) - Difference between
actual return on plan assets and interest income
Add/(Less): Actuarial gains/(losses) - Others
Add: Contribution by the employer
Add: Contribution by plan participants
Add: Assets assumed on transfer of employees
Add: Business combination/disposal (net)
Less: Benefits paid
Add: Adjustment for earlier years
Closing balance of the plan assets
v crore
Gratuity plan
Trust-managed provident
fund plan
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
615.72
41.19
–
559.86
3348.38
3041.76
40.51
280.26
259.47
–
–
–
24.87
47.34
–
–
73.90
70.39
–
–
(3.70)
–
–
–
14.02
–
116.32
295.44
108.71
(4.43)
18.82
–
113.75
284.44
21.23
(2.03)
(140.99)
(102.51)
(482.35)
(388.56)
–
0.13
(0.16)
(0.50)
610.99
615.72
3676.19
3348.38
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 (vii) below both determined at the start of the annual reporting period.
The Group expects to fund R 93.63 crore (previous year: R 37.48 crore) towards its gratuity plan and R 122.04 crore
(previous year: R 140.68 crore) towards its trust-managed provident fund plan during the year 2018-19.
$
Employer’s contribution to provident fund.
(v) The fair value of major categories of plan assets are as follows:
Particulars
As at 31-3-2018
As at 31-3-2017
Gratuity plan
Cash and cash equivalents
Equity instruments
Debt instruments - Corporate bonds
Debt instruments - Central Government bonds
Debt instruments - State Government bonds
Debt instruments - Public Sector Unit bonds
Mutual funds - Equity
Mutual funds - Debt
Mutual funds - Others
Quoted
–
16.51
82.54
128.18
66.35
–
4.96
–
–
Unquoted
1.68
–
99.91
–
–
55.59
–
0.29
–
Total
1.68
16.51
182.45
128.18
66.35
55.59
4.96
0.29
–
Quoted
–
15.47
77.91
149.30
123.39
2.34
0.21
–
–
Unquoted
5.49
0.65
159.60
6.20
5.49
73.33
66.61
0.52
0.10
v crore
Total
5.49
16.12
237.51
155.50
128.88
75.67
66.82
0.52
0.10
411
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
Particulars
As at 31-3-2018
As at 31-3-2017
Gratuity plan
Special deposit scheme
Fixed deposits
Insurer managed fund
Advance taken
Others
Closing balance of the plan assets
Quoted
–
–
–
–
–
298.54
Unquoted
2.54
1.47
147.80
3.17
0.00
312.45
Total
2.54
1.47
147.80
3.17
0.00
610.99
Quoted
–
–
–
–
–
368.62
Unquoted
1.50
1.21
115.39
(175.00)
(13.99)
247.10
Particulars
As at 31-3-2018
As at 31-3-2017
Trust-managed provident fund plan
Cash and cash equivalents
Equity instruments
Debt instruments - Corporate bonds
Debt instruments - Central Government bonds
Debt instruments - State Government bonds
Debt instruments - Public Sector Unit bonds
Mutual funds - Equity
Mutual funds - Debt
Mutual funds - Others
Special deposit scheme
Fixed deposits
Others
Closing balance of the plan assets
Quoted
–
–
541.31
838.08
748.74
483.37
85.69
0.05
2.81
–
–
0.70
2700.75
Unquoted
7.50
0.01
104.37
0.20
0.18
582.43
14.32
0.26
6.71
270.32
3.09
(13.95)
975.44
Total
7.50
0.01
645.68
838.28
748.92
1065.80
100.01
0.31
9.52
270.32
3.09
(13.25)
3676.19
Quoted
–
–
353.45
659.29
688.71
408.53
12.82
–
–
–
–
–
2122.80
Unquoted
12.53
–
113.96
–
–
648.03
67.41
4.11
–
268.34
–
111.20
1225.58
v crore
Total
1.50
1.21
115.39
(175.00)
(13.99)
615.72
v crore
Total
12.53
–
467.41
659.29
688.71
1056.56
80.23
4.11
–
268.34
–
111.20
3348.38
(vi) The Average duration of the Defined Benefit Obligation at the end of the reporting period is as follows:
1. Gratuity
2.
3.
Post-retirement medical benefit plan
Pension plan
Plans
As at 31-3-2018 As at 31-3-2017
7.54
17.48
8.06
6.30
14.86
7.50
(vii) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted average):
Plans
As at 31-3-2018 As at 31-3-2017
(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
7.56%
7.56%
7.56%
5.00%
5.03%
5.99%
7.10%
7.10%
7.10%
5.00%
5.00%
6.00%
412
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
(D) Attrition Rate:
(a) For post-retirement medical benefit plan & pension plan, the attrition rate varies from 1% to 12% (previous year:
2% to 8%) for various age groups.
(b) For gratuity plan the attrition rate varies from 1% to 25% (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 in 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
Gratuity
Impact of change in salary growth rate
Impact of change in discount rate
Post-retirement medical benefit plan
Impact of change in Health care cost
Impact of change in discount rate
Company pension plan
Effect of 1% increase
Effect of 1% decrease
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
v crore
84.32
(74.17)
24.44
(29.80)
55.39
(48.65)
27.53
(36.17)
(75.11)
84.82
(19.96)
37.71
(45.08)
50.31
(21.99)
46.02
Impact of change in discount rate
(24.29)
(26.07)
28.04
26.68
(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
are no minimum funding requirements of these plans. The funding of these plans is based on gratuity fund’s actuarial
measurement framework set out in the funding policies of the plan. These actuarial measurements are similar compared
to the assumptions set out in (vii) supra. An insignificant portion of the gratuity plan of the group attributable to
subsidiary companies is administered by the respective subsidiary companies and is funded through insurer managed
funds. A part of the gratuity plan is unfunded and managed within the group. Further, it also includes amounts payable
in respect of the Group’s foreign operations which result in gratuity payable to employees engaged as per the local laws
of country of operation. Employees do not contribute to any of these plans.
(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.
413
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [45] (contd.)
(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 Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The plan
mandates contribution by employer at a fixed percentage of employee’s salary. Employees also contribute to the plan at
a fixed percentage of their salary as a minimum contribution and additional sums at their discretion. The plan guarantees
interest at the rate notified by the provident fund authority. The contribution by employer and employee together with
interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan
vests immediately on rendering of service.
The interest payment obligation of trust-managed provident fund is 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 Ind AS 108 “Operating Segment”
(a)
Information about Reportable segments
Particulars
For the year ended 31-3-2018
Inter-segment
External
For the year ended 31-3-2017
Total
External Inter-segment
Total
v crore
Gross Segment Revenue
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Elimination
Total Revenue
Segment result [Profit/(Loss) before interest and tax]
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Total
59083.13
6200.58
3845.49
5209.03
11735.83
11187.79
10063.75
4294.05
8242.45
–
119862.10
735.84
7.65
268.39
299.24
23.80
169.64
–
–
591.87
(2096.43)
–
59818.97
6208.23
4113.88
5508.27
11759.63
11357.43
10063.75
4294.05
8834.32
(2096.43)
119862.10
5293.30
163.99
515.84
668.82
771.81
2146.51
1440.64
196.40
1139.10
12336.41
52923.08
6938.56
3149.15
4968.56
9602.50
9731.29
8545.17
4027.78
10124.91
–
110011.00
997.73
0.23
297.79
398.71
25.84
156.25
0.12
339.50
737.52
(2953.69)
–
53920.81
6938.79
3446.94
5367.27
9628.34
9887.54
8545.29
4367.28
10862.43
(2953.69)
110011.00
4722.54
201.18
498.57
549.89
508.42
1825.53
786.44
32.01
387.19
9511.77
414
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46]
(a)
Information about Reportable segments (contd.)
Particulars
Inter segment margins on capital jobs
Interest expenses
Unallocated corporate income net of expenditure
Profit before Tax
Provision for current tax
Provision for deferred tax
Profit after tax
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
Particulars
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment Total
For the year ended 31-3-2018
Inter-segment
External
Total
12.90
(1538.52)
828.37
11639.16
(3732.27)
533.40
8440.29
(435.86)
(634.57)
7369.86
For the year ended 31-3-2017
v crore
External Inter-segment
Total
(28.14)
(1338.73)
742.46
8887.36
(2834.35)
827.76
6880.77
(395.27)
(444.27)
6041.23
v crore
Segment Assets
Segment Liabilities
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
58443.26
50020.69
40932.30
33912.75
6437.33
6624.54
4412.36
9226.17
7555.66
6847.03
5123.67
4364.25
6728.63
6166.03
5647.48
5245.60
2140.87
7841.04
2182.27
6362.49
3826.93
1935.65
5589.70
1893.77
87888.63
71841.82
76383.88
64341.27
30375.07
28240.72
10515.57
19531.60
18599.96
6971.77
8931.32
6953.07
230494.62
197932.80
157860.78
133746.95
Corporate unallocated assets/liabilities
17011.32
15741.59
28363.17
26147.32
Inter Segment assets/liabilities
(2452.59)
(1492.79)
(2452.59)
(1492.79)
Consolidated Total assets/liabilities
245053.35
212181.60
183771.36
158401.48
415
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46]
(a)
Information about Reportable segments (contd.)
Particulars
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment Total
Unallocable
Consolidated Total
Depreciation, amortization,
impairment & obsolescence
included in segment expenses
Non-cash expenses other
than depreciation included in
segment expenses
2017-18
2016-17
2017-18
2016-17
v crore
608.05
43.56
138.66
152.74
132.41
244.43
51.23
73.68
281.24
1726.00
202.73
1928.73
650.53
44.40
116.69
151.10
148.87
236.81
78.00
58.07
665.21
2149.68
220.25
2369.93
20.03
19.81
1.40
1.97
3.85
3.66
8.47
29.43
–
4.13
72.94
38.45
111.39
1.99
2.49
3.83
7.97
13.46
4.79
–
4.62
58.96
29.21
88.17
Note : Impairment loss included in Heavy Engineering Segment is R 31.88 crore (previous year: R Nil), Other segment is R 27.69
crore (previous year: R 412.57 crore) and in Corporate unallocated is R 84.32 crore (previous year: R 103.00 crore).
Particulars
Infrastructure
Power
Heavy Engineering
Electrical & Automation
[Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment Total
Unallocable
Inter Segment
Interest Income included in
segment income
Interest expense included in
segment expense
v crore
Profit or (loss) of associates
and joint ventures accounted
applying equity method not
included in segment result
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2.95
–
–
5.29
119.43
4.04
215.74
0.54
54.10
402.09
518.66
0.58
–
0.19
3.50
45.01
4.62
89.11
0.03
30.60
173.64
557.37
–
–
–
–
–
–
–
–
–
–
–
–
5449.68
4777.91
2.44
164.45
(227.90)
–
29.72
–
0.70
3.01
120.55
(186.81)
–
6.19
–
6.14
627.53
647.60
(392.85)
(357.07)
–
–
6077.21
5425.51
–
–
(63.42)
5362.09
2.98
(420.46)
(15.40)
–
0.30
(407.69)
12.42
–
(435.86)
(395.27)
(255.08)
(308.39)
(57.47)
Consolidated Total
665.67
422.62
6019.74
416
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [46]
(a)
Information about Reportable segments (contd.)
Particulars
Infrastructure
Power
Heavy Engineering
Electrical & Automation [Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Segment Total
Unallocable
Inter Segment
Consolidated Total
(b) Geographical Information
Particulars
Particulars
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)
India
Foreign countries
Total
Additions to non-current assets
2017-18
2016-17
1273.70
151.36
245.27
202.16
363.10
514.12
351.59
2506.65
344.09
5952.04
626.88
(74.58)
6504.34
616.34
100.17
96.87
176.94
188.24
166.67
441.11
2549.73
668.28
5004.35
471.16
(217.37)
5252.14
v crore
Investment in associates and
joint ventures accounted
applying equity method
included in segment assets
As at
31-3-2018
8.95
774.53
6.09
–
359.92
–
6.00
1310.94
20.73
2487.16
0.43
–
2487.59
As at
31-3-2017
2.25
605.57
1.58
–
329.53
–
50.55
1764.72
18.72
2772.92
(0.02)
–
2772.90
v crore
Revenue by location of customers
2017-18
80162.78
7355.33
8053.68
4485.12
3866.38
2174.35
5335.10
8429.36
39699.32
119862.10
2016-17
72357.51
6580.12
7059.39
5583.41
3354.10
2968.44
4950.40
7157.63
37653.49
110011.00
v crore
Non-current Assets
As at
31-3-2018
34930.93
1680.43
36611.36
As at
31-3-2017
32019.01
1653.55
33672.56
(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.
417
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 Corporate Executive Management 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 Corporate Executive Management. The performance of financial
services segment and finance lease activities of power development segment are measured based on segment profit (before
tax) after deducting the interest expense.
(iv) Segment composition
•
•
•
•
•
•
•
•
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
and 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 rural finance, housing finance, wholesale finance, mutual fund, wealth
management and general insurance (upto the date of sale).
Developmental projects segment comprises development, operation and maintenance of basic infrastructure projects,
toll and fare 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 equipment and cutting tools (till the date of sale), 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, 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, 2018.
418
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “ Related Party Disclosures”
(a) Name of the related parties with whom transactions were carried out during the current year/previous year and description of
relationship:
Associate Companies:
1.
L&T-Chiyoda Limited
3. Magtorq Private Limited
@ The Group has sold its stake on March 19, 2018
Joint Ventures:
2.
4.
Feedback Infra Private Limited @
L&T Camp Facilities LLC
Larsen & Toubro Electromech LLC*
1.
L&T-Sargent & Lundy Limited
3.
L&T Halol-Shamlaji Tollway Limited
5.
7. Krishnagiri Walajahpet Tollway Limited
9. 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
11.
13.
15.
17.
19.
21.
23. Raykal Aluminium Company Private Limited
25.
27. PNG Tollway Limited
29.
L&T Kobelco Machinery Private Limited
L&T Special Steels and Heavy Forgings Private Limited
2.
L&T Interstate Road Corridor Limited
4. Ahmedabad - Maliya Tollway Limited
L&T Chennai–Tada Tollway Limited
6.
L&T BPP Tollway Limited
8.
L&T Rajkot-Vadinar Tollway Limited
10.
12.
L&T Deccan Tollways Limited
L&T Samakhiali Gandhidham Tollway Limited
14.
16. Kudgi Transmission Limited
18.
20.
22. Panipat Elevated Corridor Limited
24. Krishnagiri Thopur Toll Road Limited
26. Western Andhra Tollways Limited
28. Vadodara Bharuch Tollway Limited
30.
L&T Sambalpur-Rourkela Tollway limited
L&T Infrastructure Development Projects Limited
L&T Transportation Infrastructure Limited
*The venture is classified as subsidiary w.e.f. August 16, 2017.
Provident Fund Trusts:
1.
2.
3.
4.
5.
6.
7.
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Larsen & Toubro Limited Provident Fund of 1952
Larsen & Toubro Limited Provident Fund
L&T Kansbahal Officers & Supervisory Provident Fund
L&T Kansbahal Staff & Workmen Provident Fund
L&T Construction Equipment Provident Fund Trust
L&T Valves Employees Provident Fund
Gratuity Trusts:
Larsen & Toubro Officers & Supervisors Gratuity Fund
1.
Larsen & Toubro Gratuity Fund
2.
Larsen and Toubro Technology Services Ltd. Eggas
3.
4.
L&T Shipbuilding Limited Employees Group Assurance Scheme
5. Nabha Power Limited Employees Group Gratuity Assurance Scheme
6.
L&T Hydrocarbon Engineering Ltd Group Gratuity Scheme
Superannuation Trusts:
1.
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
419
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Name of Key Management Personnel and their relatives with whom transactions were carried out during the current year/previous
year:
(a) Executive Directors:
1. Mr. A.M. Naik (Group Executive Chairman)*
2. Mr. S. N. Subrahmanyan (Chief Executive Officer and
Managing Director)#
3. Mr. R. Shankar Raman (Whole-time Director & Chief
4. Mr. Shailendra Roy (Whole-time Director)
Financial Officer)
5. Mr. D. K. Sen (Whole-time Director)
7. Mr. J. D. Patil (Whole-time Director)**
6. Mr. M. V. Satish (Whole-time Director)
(b) Non-executive Directors:
1. Mr. M. M. Chitale
3. Mr. M. Damodaran
5. Mr. Adil Zainulbhai
7. Mrs. Sunita Sharma
9. Mr. Ajay Shankar
11. Mrs. Naina Lal Kidwai
13. Mr. Narayanan Kumar@@
15. Mr. Sushobhan Sarker ###
17. Mr. Bahram Vakil ***
2. Mr. Subodh Bhargava
4. Mr. Vikram Singh Mehta
6. Mr. Akhilesh Krishna Gupta
8. Mr. Thomas Mathew T
10. Mr. Subramanian Sarma
12. Mr. Sanjeev Aga @@@
14. Mr. Arvind Gupta ##
16. Mr. Swapan Dasgupta @
Group Chairman w.e.f. October 1, 2017
*
** Appointed w.e.f. July 1, 2017
@@ Appointed w.e.f. May 27, 2016 ## Appointed w.e.f. July 1, 2017
### ceased w.e.f. May 2, 2018
w.e.f. July 1,2017 (till June 30, 2017 Whole-time Director)
#
@
ceased w.e.f. May 15, 2016
@@@ Appointed w.e.f. May 25, 2016
***
ceased w.e.f. August 1, 2016
(b) Disclosure of related party transactions:
Sr.
No.
Nature of transaction/relationship/major parties
(i)
Purchase of goods & services (including commission paid)
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Associates, including:
L&T-Chiyoda Limited
Total
(ii)
Sale of goods/contract revenue & services
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
1941.69
2399.97
156.61
1385.93
362.45
149.50
60.78
1677.03
545.47
52.29
2098.30
2460.75
Joint ventures, including:
423.05
1109.10
L&T Infrastructure Development Projects Limited
L&T Deccan Tollways Limited
L&T-MHPS Boilers Private Limited
Associate:
L&T-Chiyoda Limited
Total
134.85
87.37
178.75
0.17
0.17
423.22
0.42
1108.61
545.12
394.35
157.18
0.42
420
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
No.
Nature of transaction/relationship/major parties
(iii)
Purchase/lease of property, plant and equipment
Joint ventures:
Larsen & Toubro Electromech LLC
L&T Infrastructure Development Projects Limited
L&T-MHPS Turbine Generators Private Limited
Total
(iv)
Investments including subscription to equity and preference shares
considered as equity (including application money paid)
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
L&T Special Steels and Heavy Forgings Private Limited
Total
(v)
Subscription of preference share considered as debt in the financials
Joint venture:
L&T Special Steels and Heavy Forgings Private Limited
Total
(vi)
Purchase of investments from
Joint venture:
L&T Infrastructure Development Projects Limited
Total
(vii)
Inter corporate deposits given/(returned) (net)
Joint ventures:
L&T Special Steels and Heavy Forgings Private Limited
L&T Sapura Shipping Private Limited
Total
(viii) Charges paid for miscellaneous services
Joint ventures, including:
L&T Sapura Shipping Private Limited
L&T-Sargent & Lundy Limited
Associates, including:
L&T- Chiyoda Limited
Total
(ix)(a) Charges incurred for deputation of employees from related parties
Joint venture:
L&T Infrastructure Development Projects Limited
Total
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
0.01
0.01
261.01
261.01
214.43
214.43
–
–
398.19
398.19
7.08
2.37
9.45
0.04
0.04
–
–
0.01
–
–
260.65
214.43
–
211.89
186.30
2.25
4.27
2.37
0.04
0.16
0.16
(0.25)
(0.25)
–
–
2041.57
2041.57
387.50
387.50
6.66
6.42
13.08
4.63
4.63
0.14
0.02
–
(0.03)
(0.22)
–
–
2041.57
387.50
–
2.47
3.63
6.06
4.63
421
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
No.
Nature of transaction/relationship/major parties
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
(ix)(b) Charges recovered for deputation of employees to related parties
Joint ventures, including:
9.94
9.59
L&T Sapura Shipping Private Limited
L&T Infrastructure Development Projects Limited
L&T Special Steels and Heavy Forgings Private Limited
Associate:
L&T- Chiyoda Limited
Total
(x)
Dividend received
Associate:
Feedback Infra Private Limited
Total
(xi) Commission received, including those under agency arrangements
Joint venture:
L&T Kobelco Machinery Private Limited
Total
5.28
2.17
1.97
15.81
0.66
2.00
15.81
25.75
0.66
0.66
2.00
2.00
18.01
27.60
0.57
0.57
0.65
0.65
(xii)
Rent received, overheads recovered and miscellaneous income
Joint ventures, including:
92.30
94.89
L&T-MHPS Boilers Private Limited
L&T-Sargent & Lundy Limited
L&T-MHPS Turbine Generators Private Limited
Associates, including:
L&T- Chiyoda Limited
Key management personnel:
Mr. D.K. Sen
Total
(xiii)
Interest received from
Joint ventures, including:
L&T Special Steels and Heavy Forgings Private Limited
Associate:
L&T Camp Facilities LLC
Total
(xiv)
Interest paid to
Joint venture:
L&T Infrastructure Development Projects Limited
Total
40.99
13.60
23.52
0.08
102.05
0.20
33.06
23.55
0.08
115.93
106.90
0.20
107.10
33.06
33.06
5.23
0.07
100.19
82.48
0.20
82.68
–
–
5.60
2.14
1.21
18.01
0.57
0.65
35.50
17.70
9.64
5.23
0.07
78.98
0.20
–
422
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
No.
Nature of transaction/relationship/major parties
(xv)
Bad debts written off in respect of
Joint ventures, including:
Krishnagiri Thopur Toll Road Limited
Western Andhra Tollways Limited
L&T Interstate Road Corridor Limited
Total
(xvi)
Provision towards bad and doubtful debts (including expected credit
loss on account of delay) in respect of
Joint ventures, including:
PNG Tollway Limited
L&T-MHPS Boilers Private Limited
Total
(xvii)
Impairment loss/provision on investment in respect of
Joint venture :
L&T Infrastructure Development Projects Limited
Total
(xviii) Contribution to post employment benefit plan
Transaction with trust managed provident fund
Towards Employer’s contribution:
(a)
(i)
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Total
(b)
(i)
Transaction with approved gratuity fund
Towards Employer’s contribution:
Larsen & Toubro Technology Services Limited Eggas
L&T Hydrocarbon Engineering Ltd Group Gratuity Scheme
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
(ii)
Towards advance contribution/(refund):
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
(c)
(i)
Transaction with superannuation trust
Towards Employer’s contribution:
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
Total
2017-18
2016-17
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
–
–
22.69
22.69
–
–
115.40
115.40
30.61
30.61
(175.00)
(175.00)
3.25
3.25
–
–
–
–
–
21.66
–
103.95
14.19
9.86
5.01
1.17
(142.30)
(32.70)
3.25
0.55
0.55
24.11
24.11
281.00
281.00
113.35
113.35
35.61
35.61
–
35.61
3.32
3.32
0.31
0.07
0.13
22.11
–
281.00
100.99
5.15
–
23.59
6.26
–
–
3.32
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective
period.
423
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
xix. Compensation paid to Key Management Personnel (KMP):
Key Management Personnel
Executive Directors:
(a) Mr. A. M. Naik (Group Executive
Chairman up to September 30,
2017)
(b) Mr. S. N. Subrahmanyan
(c) Mr. R. Shankar Raman
(d) Mr. Shailendra Roy
(e) Mr. D. K. Sen
(f) Mr. M. V. Satish
(g) Mr. J. D. Patil *
Non-Executive Directors:
(a) Mr. A. M. Naik (Group Chairman
Short-term
employee
benefits
2017-18
Post-
employment
benefits
Other Long
term
benefits
Total
Short-term
employee
benefits
Post-
employment
benefits
2016-17
Other Long
term
benefits
Share-
based
payment**
v crore
Total
11.58
56.80 ^
19.38 ^^
87.76
21.86
5.83 32.21 ^^
42.70 102.60
13.99
9.16
7.96
6.37
5.86
3.14
3.70
2.42
1.83
1.69
1.52
0.81
3.29
1.50 #
–
–
–
–
–
–
–
17.69
11.58
9.79
8.06
7.38
3.95
4.79
13.26
9.00
8.13
6.20
5.96
–
3.51
2.38
1.93
1.57
1.44
–
–
–
–
–
–
–
–
–
–
12.53
3.87
–
–
–
–
29.30
15.25
10.06
7.77
7.40
–
–
–
w.e.f. October 1, 2017)
0.26
(b) Mr. Subramanian Sarma
–
(c) Other Non-Executive Directors
Total
70.53
^ Post-employment benefits include gratuity R 55.04 crore
*Appointed w.e.f. July 1, 2017.
**Represents fair value of employee stock options granted during 2016-17 to be vested over a period of time
–
–
16.66 32.21
^^ Represents encashment of past service accumulated leave
# Represents pension
16.33
4.22
81.90
0.40
–
19.78
16.99
4.22
172.21
15.39
4.71
84.51
15.39
4.71
59.10 192.48
–
–
–
–
(d) Amount due to/from related parties (including commitments):
Sr.
No.
Category of balance/relationship/major parties
(i)
Accounts receivable
Joint ventures, including:
L&T Deccan Tollways Limited
L&T-MHPS Boilers Private Limited
Krishnagiri Walajahpet Tollway Limited
L&T Infrastructure Development Projects Limited
L&T Samakhiali Gandhidham Tollway Limited
Associate
L&T-Chiyoda Limited
Total
(ii)
Accounts payable including other payable
Joint ventures, including:
L&T-MHPS Boilers Private Limited
L&T-MHPS Turbine Generators Private Limited
Associates, including
Magtorq Private Limited
L&T- Chiyoda Limited
Total
424
As at 31-3-2018
As at 31-3-2017
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
289.80
417.95
33.22
78.87
42.68
40.70
38.19
0.15
–
417.95
0.15
289.95
1148.30
1931.46
19.07
276.49
700.47
3.79
15.45
14.91
1167.37
1946.37
125.63
65.64
44.68
78.42
43.30
–
1171.96
611.61
2.65
11.40
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
No.
Category of balance/relationship/major parties
(iii)
Investment in Debt Securities
Joint ventures:
As at 31-3-2018
As at 31-3-2017
Amount Amounts for
major parties
Amount Amounts for
major parties
v crore
987.58
264.42
L&T Special Steels and Heavy Forgings Private Limited
Kudgi Transmission Limited
L&T Infrastructure Development Projects Limited
217.73
509.49
260.36
Total
(iv)
Loans & advances recoverable
Joint ventures, including:
987.58
264.42
1819.92
1862.64
L&T Special Steels and Heavy Forgings Private Limited
L&T Sapura Shipping Private Limited
L&T-MHPS Turbine Generators Private Limited
1400.00
191.60
113.75
Associates, including:
L&T Camp Facilities LLC
L&T- Chiyoda Limited
Total
(v)
Advances received in the capacity of supplier of goods/services
classified as “advances from customers” in the Balance Sheet
Joint ventures, including:
L&T-MHPS Boilers Private Limited
Total
(vi) Due to directors #:
(Key management personnel)
Mr. A. M. Naik
Mr. S. N. Subrahmanyan
Mr. R. Shankar Raman
Mr. Shailendra Roy
Mr. D. K. Sen
Mr. M. V. Satish
Mr. J. D. Patil
Total
(vii)
Post-employment benefit plan
(a)
(i)
Trust managed provident fund
Amount due to:
Larsen & Toubro Officers & Supervisory Staff Provident Fund
Total
24.40
27.24
18.54
6.26
1844.32
1889.88
23.21
23.21
55.82
17.00
17.00
50.14
17.00
9.77
11.58
7.39
5.32
5.19
4.50
2.28
50.14
55.82
10.11
10.11
9.47
10.63
10.63
–
–
264.42
1185.56
215.18
210.22
18.97
7.87
21.54
18.24
11.29
7.41
5.84
4.93
4.32
–
10.07
425
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [47] (contd.)
Sr.
No.
Category of balance/relationship/major parties
(b)
(i)
Approved gratuity fund
Amount due to:
Larsen & Toubro Officers & Supervisors Gratuity Fund
Larsen & Toubro Gratuity Fund
Total
(c)
(i)
Superannuation fund
Amount due to
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
Total
(viii) Capital commitment given
Joint ventures:
L&T Special Steels and Heavy Forgings Private Limited
Total
(ix)
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
Total
(x)
Revenue commitment received
Joint ventures, including:
L&T Deccan Tollways Limited
L&T Infrastructure Development Projects Limited
Krishnagiri Walajahpet Tollway Limited
L&T Samakhiali Gandhidham Tollway Limited
L&T BPP Tollway Limited
Total
(xi)
Provision for doubtful debts on outstanding balances in respect of
Joint ventures, including:
L&T-MHPS Boilers Private Limited
PNG Tollway Limited
Total
v crore
As at 31-3-2018
As at 31-3-2017
Amount Amounts for
major parties
Amount Amounts for
major parties
45.05
61.75
36.31
8.75
6.74
0.13
45.05
6.74
6.74
0.13
0.13
61.75
7.79
7.79
–
–
1237.64
3403.94
667.58
394.67
111.24
15.24
13.70
13.63
13.08
20.43
21.84
25.08
24.73
3428.67
138.67
138.67
32.03
32.03
115.07
1352.71
76.10
76.10
52.73
52.73
50.05
11.70
7.79
–
2232.20
1086.15
21.80
25.95
60.00
–
12.80
26.27
1.24
25.10
“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 R 4.11 crore (as at 31-3-2017: R 3.79 crore)
Note: 1. All related party contracts / arrangements have been entered on arms’ length basis.
2. The amount of outstanding balances as shown above are unsecured and will be settled/recovered in cash.
426
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [48]
Disclosure in respect of Leases pursuant to Ind AS 17 “Leases”:
(a) Where the Group is a Lessor:
(i)
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.
The 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
Present value of minimum lease payments receivable
(ii) Operating leases:
v crore
Present value of minimum
lease payments
As at
31-3-2018
307.42
937.55
8128.44
9373.41
As at
31-3-2017
329.66
841.79
8431.59
9603.04
Minimum Lease Payments
As at
31-3-2018
1333.70
4814.95
17251.74
23400.39
14026.98
9373.41
As at
31-3-2017
1493.73
5201.07
19641.82
26336.62
16733.58
9603.04
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
(b) Where the Group is a Lessee:
(i)
Finance leases:
As at
31-3-2018
89.75
97.44
10.42
197.61
R crore
As at
31-3-2017
79.35
71.09
1.45
151.89
A. Assets acquired on finance lease comprises of motor vehicles and land. 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
Less: Future Finance Charges
Present value of minimum lease payments
Minimum Lease Payments
As at
31-3-2018
0.20
0.02
0.14
0.36
0.10
0.26
As at
31-3-2017
0.67
0.22
0.13
1.02
0.17
0.85
C. Contingent Rent recognised in the Statement of Profit and Loss: R Nil (previous year: R Nil)
v crore
Present value of minimum
lease payments
As at
31-3-2018
0.20
–
0.06
0.26
As at
31-3-2017
0.60
0.19
0.06
0.85
427
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [48] (contd.)
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
As at
31-3-2018
202.78
585.07
131.06
918.91
R crore
As at
31-3-2017
193.65
629.95
220.86
1044.46
[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: R 425.48 crore (previous year: R 453.43 crore)
d. Contingent rent recognised in the Statement of Profit and Loss: R Nil (previous year: R Nil)
NOTE [49]
Basic and Diluted Earnings per share [EPS] computed in accordance with Ind AS 33 “Earning per Share”:
Particulars
2017-18
2016-17
Basic EPS
Profit after tax as per accounts (R crore)
Weighted average number of equity shares outstanding
Basic EPS (R)
Diluted EPS
Profit after tax as per accounts (R crore)
Weighted average number of equity shares outstanding
Add: Weighted average number of potential equity shares on account of employee
stock options
Weighted average number of equity shares outstanding for diluted EPS
Diluted EPS (R)
Face value per share (R)
A
B
A/B
A
B
C
D=B+C
A/D
7369.86
1,40,06,13,951
52.62
6041.23
1,39,85,23,545
43.20
7369.86
1,40,06,13,951
6041.23
1,39,85,23,545
35,69,417
1,40,41,83,368
52.49
2.00
47,40,600
1,40,32,64,145
43.05
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 earnings per share.
Particulars
2017-18
2016-17
Weighted average number of potential equity shares on account of conversion of foreign currency
convertible bonds
95,20,455
95,20,455
Note: The basic and diluted EPS and number of potential equity shares on account of conversion of foreign currency convertible bonds
for the year 2016-17 have been restated pursuant to the issue of bonus equity shares in the ratio of 1:2 (one bonus equity share of
R 2 each for every two equity share of R 2 each held).
428
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
Effect of previously unrecognised tax losses and tax offsets used during the current year
Tax expense in respect of earlier years
(ii) Deferred Tax:
Tax expense on origination and reversal of temporary differences
Effect of previously unrecognised tax losses and tax offsets on which deferred tax benefit
is recognised
Effect on deferred tax balances due to the change in income tax rate
Income tax expense reported in the consolidated statement of profit or loss [(i)+(ii)]
(b) Other Comprehensive Income (OCI) Section:
(i) Items not to be reclassified to profit or loss in subsequent periods:
(A) Current tax expense/(income):
On re-measurement of defined benefit plans
(B) Deferred tax expense/(income):
On re-measurement of defined benefit plans
(ii) Items to be reclassified to profit or loss in subsequent periods:
(A) Current tax expense/(income):
On gain/(loss) on cash flow hedges other than mark to market
On foreign currency translation
(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
2017-18
v crore
2016-17
3609.98
(42.62)
164.91
3732.27
(509.37)
(13.39)
(10.64)
(533.40)
3198.87
5.60
5.60
(0.13)
(0.13)
(30.00)
(0.49)
(30.49)
0.52
38.38
2.05
–
40.95
15.93
2899.88
(66.21)
0.68
2834.35
(766.30)
(61.46)
–
(827.76)
2006.59
(5.82)
(5.82)
(0.13)
(0.13)
(22.79)
–
(22.79)
1.04
241.38
1.08
(2.29)
241.21
212.47
–
–
–
(135.15)
134.85
(0.30)
429
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) Other items
(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 80 IA
(iv)
Tax effect on impairment and fair valuation losses recognised on which deferred tax
asset (DTA) is not recognised
Effect of previously unrecognised tax losses used to reduce tax expense
(v)
(vi) Tax effect of losses of current year on which no deferred tax benefit is recognised
Effect of tax paid on foreign source income which is exempt from tax in India
(vii)
u/s 10AA
(viii) Effect on deferred tax due to change in Income tax rate
(ix) Effect of tax benefit on business combination under common control
(x) Additional dividend tax on dividend distributed
(xi) Tax effect on various other Items
Total effect of tax adjustments [(i) to (xi)]
Tax expense recognised during the year
Effective tax Rate
(e)
(f)
(e)=(c)-(d)
(f)=(e)/(a)
2017-18
11639.16
34.608%
4028.08
(937.39)
–
45.76
85.15
2.37
(402.85)
257.28
(56.01)
749.94
(258.75)
(10.64)
(226.15)
34.81
(112.73)
(829.21)
3198.87
27.48%
v crore
2016-17
8887.36
34.608%
3075.74
(244.63)
(1.46)
41.48
20.80
3.38
(377.63)
140.06
(127.67)
289.18
(220.74)
–
(226.15)
(141.96)
(223.81)
(1069.15)
2006.59
22.58%
(c)
(i) Unused tax losses and unused tax credits for which no deferred tax asset is recognised in Balance sheet
Particulars
As at 31-3-2018
v crore
Expiry year
As at 31-3-2017
v crore
Expiry year
Tax losses (Business loss and unabsorbed depreciation)
- Amount of losses having expiry
- Amount of losses having no expiry
Tax losses (Capital loss)
Unused tax credits [Minimum Alternate Tax (MAT) credit not
recognised]
Total
2800.85
7176.81
4297.09
230.83
FY 2019-37
FY 2019-26
FY 2028-33
2527.68
7088.54
2645.30
151.16
FY 2018-37
FY 2019-25
FY 2028-32
14505.58
12412.68
(ii) Unrecognised deductible temporary differences for which no deferred tax asset is recognised in Balance Sheet
Sr.
No.
(a)
(b) Arising out of upward revaluation of tax base of assets (on account of indexation
Towards provision for diminution in value of investments
Particulars
benefit)
Total
430
As at
31-3-2018
1023.29
2335.48
v crore
As at
31-3-2017
350.47
2164.85
3358.77
2515.32
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [50] (contd.)
(d) Major components of Deferred Tax Liabilities and Deferred Tax Assets:
MAT credit
utilised
Deferred tax
liabilities/
(assets)
as at
31-3-2017
Charge/
(credit) to
Statement
of Profit
and Loss
Charge/(credit)
to other
comprehensive
income
Effect
due to
acquisition/
disposal/
Held for
sale
(Credit)
to Hedge
Reserve
(other than
through
OCI)
Exchange
Difference
v crore
Deferred tax
liabilities/
(assets)
as at
31-3-2018
Particulars
Deferred tax liabilities:
- Difference between book base and tax base
of property, plant & equipment, investment
property and intangible assets
- 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 base and tax base
of property, plant & equipment, investment
property and intangible assets
- Other items giving rise to temporary
differences
Deferred tax (assets):
1737.07
(51.98)
–
(4.77)
–
–
22.63
17.86
0.97
–
–
(0.01)
1.25
152.17
(14.06)
125.76
(11.15)
200.88
43.88
2215.88
(33.31)
(1604.93)
610.95
(1709.58)
(508.91)
(238.11)
(369.98)
(114.93)
(660.10)
1.33
36.17
22.72
2.29
(44.00)
(2.54)
(44.46)
31.09
(159.92)
(82.24)
–
–
–
–
–
–
–
–
90.88
–
–
–
(3341.08)
(500.09)
90.88
–
–
9.89
0.01
9.90
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1680.32
–
138.11
–
124.50
(1.52)
(1.52)
265.88
2208.81
(1570.89)
637.92
–
–
–
–
–
(2217.52)
(236.78)
(333.81)
(92.22)
(565.68)
–
(20.62)
–
(13.15)
–
25.92
0.22
–
9.90
12.33
5.00
30.92
(0.15)
(0.15)
4.32
(223.09)
4.32
(3702.87)
1570.89
(2131.98)
Offsetting of deferred tax (assets) with deferred
tax liabilities
Net Deferred tax (assets)
1604.93
(1736.15)
Net deferred tax liability/(assets)
(1125.20)
(533.40)
90.88
30.19
40.82
(0.15)
2.80
(1494.06)
431
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [51]
Disclosures pursuant to Ind AS 103 “Business Combinations”:
(a) Acquisition of Syncordis Group
(i) On December 15, 2017, the Group has acquired 100% stake in Syncordis S.A, Luxembourg, along-with its fully owned
subsidiaries viz. Syncordis France SARL, Syncordis Ltd and Syncordis PSF S.A. operating in the IT & Technology Services
segment. Additionally, on December 11, 2017, the Group has acquired 100% stake in Syncordis Software Services India
Private Limited, a wholly owned subsidiary of Syncordis S.A., Luxembourg.
(ii) Assets acquired and liabilities recognised on the date of acquisition are as follows:
Assets
Non-current assets
Customer Relationships
Other non-current assets
Current assets
Trade receivables
Cash and bank balances
Short term loans
Other current assets
Total Assets
Liabilities
Non-current Liabilities
Deferred Tax Liabilities
Current Liabilities
Trade payables
Other current liabilities
Provisions
Total Liabilities
Net Assets acquired
(iii) Calculation of Goodwill:
Syncordis Software Services
India Private Limited
Syncordis S.A. Luxembourg
(Consolidated)
v crore
0.37
0.57
0.11
0.04
0.18
–
–
0.26
1.09
1.35
0.18
0.18
1.17
31.76
27.65
–
12.68
13.18
45.66
0.36
18.09
1.14
72.09
91.32
6.26
59.20
65.46
25.86
v crore
Syncordis Software Services
India Private Limited
Syncordis S.A. Luxembourg
(Consolidated)
Purchase consideration:
Cash (A)
Present Value of contingent consideration payable over
future years (B)*
Total purchase consideration (C=A+B)
Less: Fair value of net assets acquired
Goodwill
* Gross amount of contingent consideration payable is R 103.38 crore
2.66
–
2.66
1.17
1.49
111.94
87.96
199.90
25.86
174.04
432
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [51] (contd.)
(iv) Goodwill is attributable to future growth of business out of synergies from this acquisition and assembled workforce and is
not deductible for tax purpose.
(v) These entities have reported revenue of R 50.21 crore and profit after tax of R 5.15 crore from the date of acquisition till
March 31, 2018.
(vi) Trade receivables acquired have been collected during the year.
(b) Acquisition of Esencia Group
(i) On June 1, 2017, the Group has acquired 100% stake in Esencia Technologies Inc., USA based company, along-with its fully
owned subsidiary viz. Esencia Technologies India Private Limited, operating in the IT & Technology Services segment.
(ii) Assets acquired and liabilities recognised on the date of acquisition are as follows:
Assets
Non-current assets
Trademarks
Customer Relationships
Other non-current assets
Current assets
Inventories
Trade receivables
Cash and bank balances
Other current assets
Total Assets
Liabilities
Non-current Liabilities
Deferred Tax Liabilities
Current Liabilities
Trade payables
Other current liabilities
Total Liabilities
Net Assets acquired
(iii) Calculation of Goodwill:
Purchase consideration:
Cash (A)
Present Value of contingent consideration payable over future years (B)*
Purchase consideration paid (C=A+B)
Less: Fair value of net assets acquired
Goodwill
* Gross amount of contingent consideration payable is R 39.10 crore
v crore
Esencia Technologies Inc.
6.24
53.62
0.32
1.13
12.95
4.34
6.52
2.75
14.71
60.18
24.94
85.12
22.80
17.46
40.26
44.86
v crore
Esencia Technologies Inc.
94.23
20.34
114.57
44.86
69.71
433
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [51] (contd.)
(iv) Goodwill is attributable to future growth of business out of synergies from this acquisition and assembled workforce and is
not deductible for tax purpose.
(v) These entities have reported revenue of R 121.73 crore and profit after tax of R 19.58 crore from the date of acquisition till
March 31, 2018 . Had the entities been acquired from April 1, 2017, they would have reported revenue of R 142.80 crore and
profit after tax of R 24.30 crore during 2017-18.
(vi) Trade receivables acquired have been collected during the year.
(c) Acquisition of L&T Electromech LLC
(i) On August 16, 2017, the Group has acquired 35% stake in Larsen & Toubro Electromech LLC, operating in the Hydrocarbon
Segment in Oman. Pursuant to this, the entity has been classified as subsidiary (earlier classified as Joint Venture)
(ii) Assets acquired and liabilities recognised on the date of acquisition are as follows:
Assets
Non-current assets
Current assets
Inventories
Trade receivables
Cash and bank balances
Other current assets
Total Assets
Liabilities
Current Liabilities
Short-term borrowings
Trade payables
Other current liabilities
Provisions
Total Liabilities
Net Assets acquired
(iii) Calculation of Capital Reserve:
Fair value of net assets acquired
Less: Acquisition date fair value of net assets (accounted as per equity accounting)
Capital Reserve
2.93
80.86
24.40
62.83
129.84
76.24
106.85
19.53
v crore
29.31
171.02
200.33
332.46
332.46
(132.13)
v crore
(132.13)
(132.78)
0.65
(iv) The entity has reported revenue of R 285.57 crore and profit after tax of R 18.66 crore from the date of acquisition till March
31, 2018 . Had the entity been acquired from April 1, 2017, it would have reported revenue of R 364.39 crore and profit after
tax of R 24.20 crore during 2017-18.
(v) Trade receivables acquired have been collected during the year.
434
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [52]
Disclosures pursuant to 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 on March 31, 2018:
Assets/Disposal Group
Port operation (Marine Infrastructure Developer Private Limited)
Non-current Assets (L&T Financial Consultants Limited)
Current Assets (L&T Vision Ventures Limited)
Reportable Segment
Developmental Projects
Financial Services
Others
(b) The Group has following non-current assets/disposal group recognised as held for sale as on 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
(c) The proposed sale are expected to be completed within 1 year from the respective reporting dates.
(d) The details of assets/ disposal group classified as held for sale and liabilities associated thereto are as under:
Group(s) of assets classified as held for sale
Particulars
Property, Plant and Equipment
Other Intangible assets
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
v crore
As at
31-3-2018
As at
31-3-2017
1464.24
1589.23
0.58
0.48
2.50
0.18
44.45
1.35
2.29
12.85
0.74
42.91
1512.43
1649.37
–
–
0.90
1.38
21.00
19.87
4.32
0.33
1459.69
1461.97
1450.08
1495.60
435
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE[53]
Disclosures pursuant to Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”
(a) Movement in provisions:
Sr.
No.
Particulars
1 Balance as at 1-4-2017
2
3
4
5
6
Additional provision during the year
Provision used during the year
Unused provision reversed during the period
Translation adjustments
Effect due to sale of subsidiary during the
period
Additional provision for unwinding of interest
and change in discount rate
Balance as at 31-3-2018
(1+2+3+4+5+6+7)
7
8
Product
warranties
Expected tax
liability in
respect of
indirect taxes
45.57
26.89
(12.49)
(13.26)
0.05
209.86
44.09
(34.12)
(9.44)
–
Litigation
related
obligations
Class of provisions
Contractual
rectification
cost-
construction
contracts
319.42
226.70
(1.00)
(212.21)
0.06
9.98
–
(0.67)
(0.64)
–
Provision
towards
constructive
obligation
763.23
–
–
(304.99)
v crore
Others**
Total
62.26
59.93
(38.09)
(7.72)
–
1410.32
357.61
(86.37)
(548.26)
0.11
(1.80)
–
–
–
–
–
(1.80)
0.13
45.09
–
210.39
0.48
9.15
0.35
333.32
–
458.24*
0.01
76.39
0.97
1132.58
* on account of share in loss of a joint venture
** includes liquidated damages/backwork charges adjusted against revenue/manufacturing, construction and operating expenses during the year.
(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, 2018 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 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.
436
Notes forming part of the Consolidated Financial Statements (contd.)
[NOTE 54]
Disclosure pursuant to Ind AS 112 “Disclosure of interest in other entities”
(a) Change in the Group’s ownership interest in a subsidiary (without ceding control)
(i) On account of divestment of part stake
During the year 2017-18, the Group has sold 0.48% stake in Larsen & Toubro Infotech Limited and 0.46% stake in L&T
Technology Services Limited. The proceeds on disposal of R 204.53 crore were received in cash. An amount of R 9.48 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 interests. The difference of R 195.05 crore between the
consideration received and the increase in the non-controlling interests has been credited to retained earnings.
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 R 2069.84 crore were received in cash. An amount of R 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 interests. The difference of R 1709.34 crore between the
consideration received and the increase in the non-controlling interests has been credited to retained earnings.
(ii) On account of dilution
During the year 2017-18, the Group’s continuing interest has reduced on account of dilution due to exercise of ESOP by
0.19%, 0.84% and 0.67% in L&T Finance Holdings Limited, in Larsen & Toubro Infotech Limited and in L&T Technology
Services Limited respectively. The proceeds on dilution of R 32.26 crore were received in cash. An amount of R 147.18 crore
(being the proportionate share of the carrying amount of the net assets of L&T Finance Holdings Limited, in Larsen & Toubro
Infotech Limited and in L&T Technology Services Limited) has been transferred to non-controlling interests. The difference
of R 114.92 crore between the increase in the non-controlling interests and the consideration received has been debited to
retained earnings.
Additionally, during the year 2017-18, the Group’s continuing interest has also reduced on account of dilution due to further
issue of shares to Qualified Institution Buyer by 2.42% in L&T Finance Holdings Limited after considering the infusion by the
Parent Company. The proceeds on dilution of R 1455.79 crore were received in cash (including share warrant money). An
amount of R 1377.82 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 interests. The difference of R 77.97 crore between the consideration received
and increase in the non-controlling interests has been credited to retained earnings.
During the year 2016-17, the Group’s continuing interest has 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 R 11.93 crore were received in cash. An amount of R 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 interests. The difference of R 9.84 crore between the increase in the non-controlling interests and the
consideration received has been debited to retained earnings.
(iii) The effect of divestment with ceding of control in subsidiary during the period is as under:
Sr.
No.
1
2
3
4
5
Name of company
L&T Cutting Tools Limited
EWAC Alloys Limited
Effect on consolidated
profit/(loss) after non-
controlling interest
2017-18
136.74
273.40
2016-17
v crore
Line item in Statement of Profit
& Loss in which the gain/(loss) is
recognised
– Exceptional Items
– Exceptional Items: R 281.01 crore
Current tax: R 7.61 crore
Larsen & Toubro Readymix and Asphalt Concrete
Industries LLC
L&T General Insurance Company Limited
L&T South City Projects Limited
Total
3.16
– Other income
–
–
413.30
402.43 Exceptional Items
95.81 Revenue from operations
498.24
437
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
(b) Disclosure of subsidiaries having material non-controlling interest:
(i)
Summarised Statement of Profit and Loss
Particulars
Revenue
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income
Profit/(loss) allocated to non-controlling Interest
Dividend to non-controlling Interest
L&T Finance Limited
2017-18
4930.71
116.26
(1.43)
114.83
281.64
–
2016-17
4042.46
(37.13)
4.50
(32.63)
196.60
–
Particulars
L&T Finance Holdings Limited
v crore
L&T Infrastructure Finance
Company Limited
2017-18
2618.19
138.29
(0.09)
138.20
32.45
–
2016-17
2695.39
53.64
(1.17)
52.47
12.10
–
v crore
Larsen & Toubro Infotech
Limited
Revenue
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income
Profit/(loss) allocated to non-controlling Interest
Dividend to non-controlling Interest
(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
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
438
2017-18
89.52
266.05
0.62
266.67
41.31
52.16
2016-17
60.82
120.37
(0.14)
120.23
(13.94)
46.75
2017-18
7203.05
1160.12
(99.41)
1060.71
166.99
50.60
2016-17
6329.75
937.56
215.95
1153.51
119.71
21.60
v crore
L&T Finance Limited
L&T Infrastructure Finance
Company Limited
As at
31-3-2018
17155.58
14635.78
2519.80
27048.22
21256.22
5792.00
8311.81
1031.65
As at
31-3-2017
16756.64
13500.70
3255.94
19066.50
15535.18
3531.32
6787.26
687.71
As at
31-3-2018
11043.29
6498.93
4544.35
15291.14
16250.27
(959.13)
3585.22
487.14
As at
31-3-2017
9862.51
3640.53
6221.98
15151.81
18199.52
(3047.71)
3174.27
470.24
v crore
L&T Finance Holdings Limited
Larsen & Toubro Infotech
Limited
As at
31-3-2018
1251.80
727.61
524.19
7942.77
781.30
7161.47
7685.66
2723.96
As at
31-3-2017
945.90
1230.79
(284.88)
5469.31
1028.15
4441.16
4156.28
1453.64
As at
31-3-2018
3997.88
1285.00
2712.88
1044.07
38.37
1005.70
3718.58
623.93
As at
31-3-2017
3084.98
1206.89
1878.09
1116.24
17.44
1098.80
2976.89
467.97
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [54] (contd.)
(iii) Summarised Statement of cash flows
Particulars
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Particulars
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
L&T Finance Limited
2017-18
(9001.93)
727.32
8328.44
53.84
2016-17
(2479.31)
(2508.89)
5085.55
97.35
L&T Finance Holdings Limited
v crore
L&T Infrastructure Finance
Company Limited
2017-18
(1239.24)
495.43
998.05
254.24
2016-17
(315.99)
(209.83)
587.03
61.21
v crore
Larsen & Toubro Infotech
Limited
2017-18
(157.92)
(2191.00)
2359.66
10.74
2016-17
(127.82)
(56.01)
144.09
(39.75)
2017-18
710.95
(249.52)
(407.49)
53.94
2016-17
1047.16
(927.63)
(43.70)
75.84
NOTE [55]
Disclosures pursuant to Ind AS 112 “Disclosure of interest in other entities” :- Joint Ventures and Associates
(a) Summarised Balance Sheet for material joint ventures:
Particulars
Current assets
Cash and cash equivalents
Other assets
Total current assets
Total non-current assets
Current liabilities
L&T-MHPS Boilers
Private Limited
L&T Special Steels and
Heavy Forgings Private
Limited
L&T Infrastructure
Development Projects
Limited (consolidated)
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
v crore
334.77
209.49
3371.25
2991.04
3706.02
3200.53
0.28
187.79
188.07
0.52
681.31
2931.87
165.32
3908.19
2807.33
165.84
4589.50
5739.20
574.84
622.09
1307.31
1386.16 18335.37 17581.97
(A)
(B)
Financial liabilities (excluding trade payables)
549.38
419.87
1434.18
1414.31
2249.49
3090.61
Other liabilities (including trade payables)
2533.92
2352.01
92.49
57.34
1196.65
1206.04
Total current liabilities
Non-current liabilities
(C)
3083.30
2771.88
1526.67
1471.65
3446.14
4296.65
Financial liabilities (excluding trade payables)
11.90
120.86
550.36
703.80 17827.71 16892.13
Other liabilities (including trade payables)
–
–
16.92
17.64
563.05
624.55
Total non-current liabilities
Non-controlling interest
(D)
(E)
11.90
120.86
567.28
721.44 18390.76 17516.68
–
–
–
–
132.04
151.94
Net assets
(A+B-C-D-E)
1185.66
929.88
(598.57)
(641.09)
955.93
1355.90
439
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [55] (contd.)
(b) Reconciliation of carrying amounts of material joint ventures:
Particulars
Opening net assets
Profit/(loss) for the year
v crore
L&T-MHPS Boilers
Private Limited
L&T Special Steels and
Heavy Forgings Private
Limited
L&T Infrastructure
Development Projects
Limited (consolidated)
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
As at
31-3-2018
As at
31-3-2017
929.88
731.16
(641.09)
(384.69)
1355.90
1626.46
241.47
221.28
(270.30)
(254.65)
(404.05)
(506.40)
Adjustment in opening retained earnings due to
–
–
–
–
–
223.03
stake dilution
Other comprehensive income
Infusion during the year
Equity component of other financial instruments
Other adjustments
Closing net assets
Group’s share in %
Group’s share
Goodwill
Parent’s investment in group companies
Regrouped to provisions
Other adjustments
Carrying amount
14.31
(22.51)
1.21
(1.75)
(0.79)
(0.08)
–
–
–
–
311.61
(0.05)
–
–
–
–
–
–
–
–
–
–
4.87
12.89
1185.66
929.88
(598.57)
(641.09)
955.93
1355.90
51.00%
51.00% 74.00%
74.00% 97.45%
97.45%
604.69
474.24
(442.94)
(474.41)
931.55
1321.32
–
–
–
–
–
–
–
–
–
–
–
–
393.87
393.87
33.30
33.30
458.24
494.77
–
–
(15.30)
(20.36)
(47.79)
16.24
604.69
474.24
–
–
1310.93
1764.73
(c) Summarised Statement of Profit and Loss of material joint ventures:
Particulars
Revenue
Interest Income
v crore
L&T-MHPS Boilers
Private Limited
L&T Special Steels and
Heavy Forgings Private
Limited
L&T Infrastructure
Development Projects
Limited (consolidated)
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2966.52
2490.66
127.87
129.96
2457.88
2600.07
19.22
27.57
0.16
0.12
9.79
0.55
Depreciation and amortisation
(58.63)
(55.82)
(49.28)
(51.10)
(440.78)
(356.59)
Interest expense
Income tax expense
(21.25)
(28.71)
(179.22)
(171.58)
(1608.02)
(1330.80)
(126.70)
(110.85)
–
–
(83.97)
55.44
Profit/(loss) from continuing operations
241.47
221.28
(270.30)
(254.65)
(404.05)
(506.40)
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income
241.47
221.28
(270.30)
(254.65)
(404.05)
(506.40)
14.31
(22.51)
1.21
(1.75)
(0.79)
(0.08)
255.78
198.77
(269.09)
(256.40)
(404.84)
(506.48)
440
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [55] (contd.)
(d) Financial Information in respect of individually not material joint ventures/associates
Particulars
Aggregate carrying amount of investment in individually immaterial joint venture/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
(e) Carrying amount of investments in joint ventures/associates
Particulars
Non-material associates
Non-material joint ventures
Sub-total
Material joint ventures
Total
(f)
Share in profit/(loss) of joint ventures/associates (net)
Particulars
Non-material associates
Non-material joint ventures
Sub-total
Material joint ventures
Total
(g) Commitments and contingent liabilities in respect of associates and joint ventures/associates
Particulars
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 associate
Contingent Liabilities-joint ventures:
Share of joint ventures’ contingent liabilities in respect of a legal claim lodged against the entity
NOTE [56]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management
(a) Foreign exchange rate and interest rate risk:
As at
31-3-2018
571.98
v crore
As at
31-3-2017
533.93
77.20
11.65
88.85
23.40
(6.63)
16.77
As at
31-3-2018
77.10
494.87
571.97
1915.62
2487.59
2017-18
18.67
58.53
77.20
(513.06)
(435.86)
v crore
As at
31-3-2017
104.00
429.93
533.93
2238.97
2772.90
v crore
2016-17
11.34
12.06
23.40
(418.67)
(395.27)
As at
31-3-2018
v crore
As at
31-3-2017
116.85
3470.55
24.49
24.49
694.16
175.35
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
441
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [56] (contd.)
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:
v crore
As at 31-3-2018
As at 31-3-2017
US Dollar
including
pegged
currencies
(3580.37)
EURO Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
Kuwaiti
Dinar
(243.74)
66.84
50.96
(179.21)
78.01
US Dollar
including
pegged
currencies
(4789.18)
EURO Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
Kuwaiti
Dinar
(614.86)
206.76
229.37
(383.61)
394.69
7260.23
(2192.00)
49.17
–
659.25
1273.26
8189.99 (2720.75)
262.73
9.09
592.60
583.17
(1705.20)
(239.02)
–
–
–
–
98.55
(255.27)
–
–
–
–
Particulars
Net exposure to foreign currency
risk in respect of recognised
financial assets/(recognised
financial liabilities)
Derivatives including embedded
derivatives for hedging
receivable/(payable)
exposures with respect to firm
commitments and forecast
transactions
Receivable/(payable) exposures
with respect to forward
contract and embedded
derivative not designated as
cash flow hedge
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 R 64.58 crore as at March 31, 2018 and R 75.07 crore as at March 31, 2017.
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, 2018 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.
442
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [56] (contd.)
(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:
Floating rate borrowings
Particulars
v crore
As at
31-3-2018
As at
31-3-2017
45476.71
37973.83
A hypothetical 50 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, as follows:
Particulars
Indian Rupee
Interest rates -increase by 0.50% in INR interest rate*
Interest rates -decrease by 0.50% in INR interest rate*
US Dollar
Interest rates -increase by 0.50% in USD interest rate*
Interest rates -decrease by 0.50% in USD interest rate*
* Holding all other variables constant
(b) Liquidity risk management:
Impact on profit and loss after
tax - Increase/(decrease)
2017-18
2016-17
v crore
Impact on equity -
Increase/(decrease)
As at
31-3-2018
As at
31-3-2017
(25.77)
25.77
(20.91)
20.91
(5.30)
5.30
(20.44)
20.44
(25.77)
25.77
(20.91)
20.91
(5.30)
5.30
(20.44)
20.44
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 0.50% 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 0.50% change in the fair market value of debt securities would result in a value change of +/- R 24.17 crore as at
March 31, 2018 and +/- R 33.07 crore as at March 31, 2017. A 5% change in the equity funds NAV would result in a value change
of +/- R 17.19 crore as at March 31, 2018 and +/- R 19.39 crore as at March 31, 2017 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 service 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
443
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [56] (contd.)
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 service 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 realization.
(iii) Reconciliation of loss allowance provision for financial services business -Loans:
Particulars
Loss allowance as on 1-4-2016
Provision on new financial assets
Transferred to and from 12-month ECL to
life time ECL
v crore
Loss allowance
measured at
12-month ECL
260.00
151.89
76.18
Loss allowance measured at life time ECL
Financial assets for which
credit risk has increased
significantly and credit not
impaired
456.38
5.14
(112.09)
Financial assets for which
credit risk has increased
significantly and credit
impaired
651.18
27.08
35.91
Higher/(lower) provision on existing
(145.03)
financial assets
Loss allowance as on 31-3-2017
Provision on new financial assets
Transferred to and from 12-month ECL to
life time ECL
Higher/(lower) provision on existing
financial assets
Loss allowance as on 31-3-2018
343.04
53.47
(11.53)
44.28
429.26
161.78
511.21
124.60
11.53
(97.35)
549.98
920.45
1634.62
648.32
–
177.24
2460.18
(iv) 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) Amounts written off:
Amount of financial assets written off during the period but still enforceable
Particulars
444
2017-18
2465.16
v crore
2016-17
1961.09
41.80
766.51
262.90
378.78
(373.69)
(137.61)
2899.78
2465.16
2017-18
502.61
v crore
2016-17
4.59
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”:
(a) Category-wise classification for applicable financial assets:
Sr.
No.
Particulars
I. Measured at fair value through Profit or Loss (FVTPL):
Investment in equity instruments
Investment in preference shares
Investment in mutual funds and units of fund
Investment in debentures and bonds
(i)
(ii)
(iii)
(iv)
(v) Derivative instruments not designated as cash flow hedges
(vi) Embedded derivatives not designated as cash flow hedges
(vii) Investment in security receipts
Sub-total (I)
II. Measured at amortised cost:
Investment in debentures and bonds
(i) Loans
(ii)
(iii) Trade receivables
(iv) Advances recoverable in cash
(v) Cash and bank balances
(vi) Other receivables
Sub-total (II)
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 designated as cash flow hedges
Sub-total (III)
Total (I+II+III)
(b) Category-wise classification for applicable financial liabilities:
Sr.
No.
Particulars
I. 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)
II. Measured at amortised cost:
(i) Borrowings
(ii) Trade payables
(iii) Others
Sub-total (II)
III. 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.
As at
31-3-2018
v crore
As at
31-3-2017
842.10
283.28
4514.30
1253.04
17.12
47.60
1016.88
7974.32
81409.71
429.83
34654.08
3428.45
8352.84
121.53
128396.44
4484.29
9208.41
865.18
8.72
14566.60
150937.36
799.20
70.88
10356.77
1133.33
65.88
204.77
505.27
13136.10
62831.98
431.14
28688.97
2109.23
5531.21
180.87
99773.40
3683.53
11203.09
1359.82
3.21
16249.65
129159.15
As at
31-3-2018
v crore
As at
31-3-2017
21.44
47.11
68.55
22.73
133.20
155.93
107524.08
37794.96
4798.61
150117.65
93953.95
30294.86
4252.63
128501.44
170.18
164.12
334.30
1.48
150521.98
559.99
83.98
643.97
2.20
129303.54
445
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.
Particulars
I.
Net gains/(losses) on financial assets and financial liabilities measured at fair value through
Profit or Loss and amortised cost:
A.
(i) Financial asset or financial liabilities mandatorily measured at fair value through profit and
loss:
v crore
2017-18
2016-17
1. Gains/(losses) on fair valuation or sale of Investments
(2160.12)
(71.70)
2. Gains/(losses) on fair valuation/settlement of derivatives:
(a) Gains/(losses) on fair valuation or settlement of forward contracts not designated as
59.41
77.33
cash flow hedges
(b) Gains/(losses) on fair valuation or settlement of embedded derivative contracts not
28.22
(36.27)
designated as cash flow hedges
(c) Gains/(losses) on fair valuation or settlement of futures not designated as cash flow
(125.74)
(56.89)
hedges
Sub-total (A)
B.
Financial assets measured at amortised cost:
(2198.23)
(87.53)
(i) Exchange gains/(losses) on revaluation or settlement of items denominated in foreign
220.53
(299.68)
currency (trade receivables, loans given etc.)
(ii) (Allowance)/reversal for expected credit loss during the year
(iii) Provision for doubtful debts (other than ECL)[net]
(iv) Gains/(losses) on derecognition:
(a) Bad debts written off [net]
(b) Gains/(losses) on transfer of financial assets (non-recourse)
Sub-total (B)
C.
Financial liabilities measured at amortised cost:
(946.71)
(1333.76)
(776.89)
(356.46)
(557.29)
(88.11)
(477.26)
(339.01)
(2537.62)
(2417.02)
(i)
Exchange gains/(losses) on revaluation or settlement of items denominated in foreign
currency (trade payables, borrowings availed etc.)
(172.42)
276.69
(ii) Unclaimed credit balances written back
Sub-total (C)
Total [I] = (A+B+C)
128.76
132.89
(43.66)
409.58
(4779.51)
(2094.97)
446
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
Sr.
No.
Particulars
v crore
2017-18
2016-17
II. Net gains/(losses) on financial assets and financial liabilities measured at fair value through
Other Comprehensive Income:
A. Gains recognised in Other Comprehensive Income:
(i) Financial assets measured at fair value through Other Comprehensive Income:
(a) Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc.
(51.18)
105.14
(ii) Derivative measured at fair value through Other Comprehensive Income:
(b) Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
640.56
349.57
flow hedges
(c) Gains/(losses) on fair valuation or settlement of embedded derivative contracts
(82.38)
(90.05)
designated as cash flow hedges
Sub-total (A)
Less:
507.00
364.66
B. Gains reclassified to Profit and Loss from Other Comprehensive Income
(i) Financial assets measured at fair value through Other Comprehensive Income:
1. On government securities, bonds, debentures etc. upon sale
(5.70)
110.46
(ii) Derivative measured at fair value through Other Comprehensive Income:
2.
3.
On forward contracts upon hedged future cash flows affecting the Profit and Loss or
related assets or liabilities
On embedded derivative contracts upon hedged future cash flows affecting the Profit
and Loss or related assets or liabilities
Sub-total (B)
Net gains recognised in Other Comprehensive Income [II]=[(A)-(B)]
C.
(i) Allowance/(reversal) for ECL recognised during the year in the Statement of Profit and Loss
Total [II] = (A-B+C)
III.
Interest and Other income/(expense):
A. Dividend Income:
Dividend income from investments measured at FVTPL
Sub-total (A)
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:
(i) Financial liabilities measured at amortised cost
(ii) Derivative instruments (including embedded derivatives) that are measured at fair value
through Other Comprehensive Income (reclassified to Profit and Loss during the year)
(iii) Financial liabilities measured at fair value through Profit or Loss
Sub-total (C)
Total [III] = (A+B+C)
434.30
(40.70)
(150.25)
(37.64)
278.35
228.65
(35.23)
193.42
32.12
332.54
(50.45)
282.09
2748.08
2748.08
748.63
748.63
10049.39
8651.44
981.94
8.20
834.75
118.15
11039.53
9604.34
(6969.13)
(6112.21)
(266.60)
(401.21)
(15.48)
8.04
(7251.21)
(6505.38)
6536.40
3847.59
447
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(d) Fair value of financial assets and financial liabilities measured at amortised cost:
Particulars
Note
Financial assets (financial services business):
As at 31-3-2018
As at 31-3-2017
Carrying
amount
Fair value
Carrying
amount
Fair value
v crore
Loans
Debentures and Bonds
Total
Financial liabilities:
Borrowings
Total
7,8,16,17
63382.87
63124.23
45576.25
45692.68
6,12
429.83
433.95
431.14
431.14
63812.70
63558.18
46007.39
46123.82
22,26,27
44982.93
46046.29
37192.96
38131.76
44982.93
46046.29
37192.96
38131.76
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. Accordingly these items have not been included in
the above table.
(e) Disclosure pursuant to Ind AS 113 “Fair Value Measurement” - Fair value hierarchy of financial assets and financial liabilities
measured at amortised cost:
v crore
As at 31-3-2018
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
8995.06
35298.14
18831.03
63124.23
Discounted cash flow
–
84.94
349.01
433.95
Discounted cash flow
8995.06
35383.08
19180.04
63558.18
811.49
11945.77
33289.03
46046.29 Discounted cash flow
811.49
11945.77
33289.03
46046.29
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
8872.64 21467.35 15352.69 45692.68 Discounted cash flow
–
86.26
344.88
431.14 Discounted cash flow
8872.64 21553.61 15697.57 46123.82
817.04 13927.57 23387.15 38131.76 Discounted cash flow
817.04 13927.57 23387.15 38131.76
Valuation technique Level 2: Future cash flows discounted using G-sec/LIBOR rates plus corporate spread.
448
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:
Particulars
Note
As at 31-3-2018
As at 31-3-2017
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
v crore
Financial assets:
Financial assets at FVTPL:
(i) Equity shares
(ii) Preference shares
(iii) Mutual fund
(iv) Debt instruments viz. government securities,
bonds and debentures
6, 12
6, 12
6, 12
6, 7,
12
(v) Derivative instruments not designated as cash
9,18
flow hedges
(vi) Embedded derivative instruments not
designated as cash flow hedges
(vii) Other investments
Financial assets at FVTOCI
(i)
Debt instruments viz. government securities,
bonds and debentures
(ii) Loans (financial services business)
9,18
6, 7,
12
8,17
(iii) Derivative financial instruments designated as
9,18
cash flow hedges
(iv) Embedded derivative financial instruments
9,18
designated as cash flow hedges
Total
Financial Liabilities:
Financial liabilities at FVTPL:
(i) Designated at FVTPL:
101.31
–
–
217.73
740.79
65.55
842.10
283.28
48.00
–
–
4385.66 10244.89
–
–
–
751.20
799.20
70.88
70.88
– 10244.89
828.60
1253.06
202.33
35.65
895.35
1133.33
–
–
17.12
–
65.88
–
65.88
47.60
–
204.77
–
204.77
–
–
17.12
47.60
4385.66
424.46
–
–
–
116.47
1029.03
1145.50
–
–
617.13
617.13
2849.72
2.10
1632.47
4484.29
1772.82
562.22
1348.50
3683.55
–
–
–
–
9208.41
9208.41
865.18
8.72
–
–
865.18
8.72
–
–
–
– 11203.09 11203.09
1359.82
–
1359.82
3.21
–
3.21
7761.15
1274.92
13504.85
22540.92 12268.04
2231.55 14886.15 29385.75
(a) Derivative instruments not designated as
23,29
cash flow hedges
(b) Embedded derivative instruments not
designated as cash flow hedges
(ii) Designated at FVTOCI:
(a) Derivative financial instruments
designated as cash flow hedges
23,29
23,29
(b) Embedded derivative financial instruments
23,29
designated as cash flow hedges
Total
–
–
–
–
–
21.44
47.11
170.19
164.12
402.86
–
–
–
–
–
21.44
–
22.73
–
22.73
47.11
–
133.20
–
133.20
170.19
–
559.99
–
559.99
164.12
–
83.98
–
83.98
402.86
–
799.90
–
799.90
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 share – Future cash flows are discounted using G-sec rates as at reporting date.
449
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(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 1-4-2016
Addition during the year
Disposal during the year
Gains/(losses) recognised in Profit or Loss
Balance as at 31-3-2017
Addition during the year
Disposal during the year
Gains/(losses) recognised in Profit or Loss
Balance as at 31-3-2018
498.63
253.52
–
(0.95)
751.20
143.66
(163.17)
9.10
740.79
157.62
6.02
(62.50)
(30.26)
70.88
–
–
858.17
5372.28
1295.46
11203.09
229.30
411.19
7116.00
13169.28
(14.84)
(5372.28)
(7.74)
(5457.36)
105.06
2243.85
1714.92
–
(15.62)
58.23
11203.09
6962.71
617.13
438.36
14886.15
9259.65
(1474.61)
(8957.39)
(9.61)
(10604.78)
(5.33)
65.55
(23.09)
2461.07
–
(16.85)
(36.17)
9208.41
1029.03
13504.85
(h) Sensitivity disclosure for level 3 fair value measurements:
Fair value as at
Particulars
As at
31-03-2018
As at
31-03-2017
Significant unobservable
inputs
v crore
655.47
674.21 Book value
64.27
55.94 1. Lease realisation: Net
realization per month
R 30 per sq/ft.
2. Capitalisation rate
12%”
21.05
65.55
21.05 Cost
70.88 Book value
2461.07
2243.85 Expected yield
Equity shares
Preference
shares
Debt
instruments
Loans
9208.41
11203.09 Market interest rates
Other
Investments
1029.03
617.13 Net Assets Value (NAV)
450
Sensitivity
2018: Increase/decrease of 5% in the book value would result in impact
on profit or loss by R 24.48 crore
2017: Increase/decrease in the book value by 5% would result in impact
on profit or loss by R 24.95 crore
2018: 1% change in net realization would result in +/- R 0.38 crore (post
tax- R 0.25 crore)
25 bps change in capitalization rate would result in +/- R 0.78 crore (post
tax- R 0.51 crore)
2017: 1% change in net realization would result in +/- R 0.31 crore (post
tax- R 0.20 crore)
25 bps change in capitalization rate would result in +/- R 0.64 crore (post
tax- R 0.42 crore)
Sensitivity is insignificant
2018: Increase/decrease in the book value by 5% would result in impact
on profit or loss by R 3.07 crore
2017: Increase/decrease in the book value by 5% would result in impact
on profit or loss by R 3.27 crore
2018: Increase/(decrease) in expected yield by 0.25% would result in
impact on fair valuation by R 43.65 crore and (R 43.63 crore) respectively
2017: Increase/(decrease) in expected yield by 0.25% would result in
impact on fair valuation by R 36.20 crore and (R 36.13 crore) respectively
2018: Increase/(decrease) in market interest rates by 0.25% would
result in impact on fair valuation by (R 24.24 crore) and R 24.73 crore
respectively
2017: Increase/(decrease) in market interest rates by 0.25% would
result in impact on fair valuation by (R 31.31 crore) and R 32.09 crore
respectively
2018: Increase/decrease in the NAV by 5% would result in impact on profit
or loss R 33.65 crore
2017: Increase/decrease in the NAV by 5% would result in impact on profit
or loss R 20.18 crore
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(i) Maturity profile of financial liabilities based on undiscounted cash flows:
Particulars
A. Non-derivative liabilities:
Borrowings
Trade payables
Other financial liabilities
Total
B. Derivative liabilities:
Forward contracts
Embedded derivatives
Total
Note
As at 31-3-2018
As at 31-3-2017
Within
twelve
month
After twelve
month
Total
Within
twelve
month
After twelve
month
v crore
Total
22,26,27
36008.78
87432.40
123441.18
27643.99
79975.57 107619.56
28
23,29
23,29
23,29
37030.83
764.44
37795.27
28846.78
1450.36
30297.14
3142.21
1730.27
4872.48
4368.85
194.69
4563.54
76181.82
89927.11
166108.93
60859.62
81620.62 142480.24
176.76
136.50
313.26
21.99
89.29
111.28
198.75
225.79
424.54
545.71
193.81
739.52
47.72
36.44
84.16
593.43
230.25
823.68
(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:
Particulars
(a) Receivable hedges
US Dollar
EURO
Malaysian Ringgit
Omani Riyal
Arab Emirates Dirham
Canadian Dollar
British Pound
Japanese Yen
Kuwaiti Dinar
Qatari Riyal
Australian Dollar
South African Rand
Danish Krone
Norwegian Krone
Thai Baht
Swedish Krona
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
15955.20
69.64
10243.19
5712.01 13970.76
70.07
8620.33
5350.43
1823.48
138.38
301.94
1414.98
56.96
68.97
923.19
85.20
17.07
179.55
18.11
56.96
97.34
0.65
1210.15
613.33
1439.43
138.38
301.94
–
–
331.20
83.83
14.86
916.91
522.52
331.20
–
324.75
172.04
309.74
15.01
1411.17
3.81
1229.22
17.59
1029.47
199.75
56.96
68.97
–
–
34.97
70.50
52.43
90.97
34.97
70.50
–
–
889.42
33.77
845.50
0.66
467.82
377.68
2039.77
222.73
1698.31
341.46
1424.98
224.64
1401.83
23.15
1476.18
25.90
102.69
9.87
16.91
1.43
27.03
18.55
56.32
5.40
12.34
9.39
2.12
9.32
1253.61
222.57
1184.17
15.58
1061.92
122.25
25.90
102.69
9.87
16.91
1.43
27.03
–
–
–
–
–
–
40.62
139.95
50.78
5.13
40.62
79.93
–
60.02
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
451
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
Particulars
(b) Payable hedges
US Dollar
EURO
Arab Emirates Dirham
British Pound
Japanese Yen
Kuwaiti Dinar
Swiss Franc
Chinese Yuan
Swedish Krona
Norwegian Krone
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
13132.22
67.43
7440.61
5691.61
9966.62
63.31
8641.16
1325.46
4954.52
80.88
4884.77
69.75
4103.84
73.31
3957.06
146.78
0.75
75.61
337.91
760.92
417.42
26.03
16.56
8.03
17.86
91.99
0.62
219.15
74.49
10.32
8.83
8.74
0.75
51.53
337.91
760.92
417.42
26.03
16.56
7.00
–
24.08
7.24
23.18
18.11
84.46
7.24
23.18
–
–
–
–
–
–
–
1150.03
0.72
845.92
304.11
786.31
220.22
786.31
279.05
67.45
279.05
63.51
9.63
63.51
–
–
–
–
–
–
–
1.02
9.56
8.80
6.10
3.46
(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 31-3-2018
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
–
–
–
–
138.13
64.85
138.13
–
(C) Forward covers taken to hedge exchange rate risk and accounted as net investment hedge:
Particulars
Receivable hedges
Saudi Riyal
US Dollar
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
187.39
28.73
17.43
71.83
187.39
–
–
28.73
785.74
–
19.44
–
27.79
–
757.95
–
(ii) Outstanding interest rate hedge instruments:
Interest rate swaps taken to hedge interest rate risk and accounted as cash flow hedge:
Particulars
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(%)
Within
twelve
months
(v crore)
524.94
After
twelve
months
(v crore)
248.64
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(%)
2038.16
7.88
Within
twelve
months
(v crore)
1107.12
After
twelve
months
(v crore)
931.04
Floating interest rate borrowings
773.58
7.48
452
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(iii) Outstanding commodity price hedge instruments:
Commodity forward Contract:
Particulars
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(v)
Copper (Tn)*
Aluminium (Tn)
Iron Ore (Tn)
Coking Coal (Tn)
Zinc (Tn)
Lead (Tn)
*Negative nominal amount represents sell position.
(193.29) 486405.65
266.11 138402.62
4055.89
60.65
33.91
11958.33
19.76 222813.00
10.99 160606.00
Within
twelve
months
(v crore)
(193.29)
266.11
60.65
33.91
19.76
10.99
After
twelve
months
(v crore)
–
–
–
–
–
–
Nominal
amount
(v crore)
As at 31-3-2017
Average
rate
(v)
106.78 353806.93
27.96 119901.16
71.66
3592.00
50.40 11494.00
0.23 150777.00
9.53 177153.00
Within
twelve
months
(v crore)
106.78
27.96
43.19
42.07
0.23
9.53
After
twelve
months
(v crore)
–
–
28.47
8.33
–
–
(k) Carrying amounts of hedge instruments for which hedge accounting is followed:
(A) Cash flow hedge:
Particulars
As at 31-3-2018
Interest rate
exposure
Currency
exposure
(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
538.62
197.60
219.76
98.81
66.58
12.57
21.02
–
–
–
–
–
(0.25)
–
(0.48)
–
(8.43)
–
(3.65)
–
–
–
–
–
Commodity
price
exposure
25.18
23.19
–
–
–
–
–
–
–
–
–
–
As at 31-3-2017
Interest rate
exposure
Currency
exposure
v crore
Commodity
price
exposure
630.41
559.96
408.33
63.21
(0.34)
–
(0.17)
–
29.03
(4.66)
3.34
1.39
127.37
20.60
(1.38)
–
116.91
–
(15.69)
–
–
3.47
–
–
–
–
–
–
–
–
–
–
–
–
–
–
453
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(B) Net Investment hedge:
Particulars
(i) Forward contracts
Current:
As at 31-3-2018
As at 31-3-2017
Currency
exposure
Interest rate
exposure
Commodity
price
exposure
Currency
exposure
Interest rate
exposure
Asset - Other financial assets
Liability - Other financial liabilities
Non-current:
Asset - Other financial assets
14.63
2.15
0.91
–
–
–
–
–
–
1.47
–
63.75
–
–
–
(l)
Breakup of cash flow hedging reserve and cost of hedging reserve:
v crore
Commodity
price
exposure
–
–
–
v crore
Particulars
As at 31-3-2018
As at 31-3-2017
Cash flow
hedging reserve
Cost of hedging
reserve
Cash flow
hedging reserve
Cost of hedging
reserve
Balance towards continuing hedges
Balance for which hedge accounting discontinued
240.83
208.39
(11.45)
–
329.86
29.76
(m) Reclassification of hedging reserve and cost of hedging reserve to Profit or Loss:
(12.10)
–
v crore
Particulars
2017-18
2016-17
Future cash flows are no longer expected to occur:
Revenue from operations
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
Other Income
Sales, administration and other expenses
–
(83.81)
0.52
(10.47)
441.59
331.25
212.54
241.35
(166.29)
(264.00)
(267.43)
(412.17)
0.03
–
203.70
(34.78)
454
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [57] (contd.)
(n) Movement of hedging reserve and cost of hedging reserve:
Opening balance
Hedging reserve
v crore
2017-18
2016-17
359.62
59.24
Changes in the spot element of the forward contracts which is designated as hedging
(4.49)
(154.69)
instruments for time period related hedges
Changes in fair value of forward contracts designated as hedging instruments
719.83
673.53
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/liability
Amount included in Progress Billing in balance sheet
Taxes 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
Less: Included in carrying amount of hedge item
Amount reclassified to Profit or Loss
Taxes related to above
Closing balance
–
(151.83)
(211.57)
1.24
(0.07)
(67.87)
183.49
(1.39)
(255.20)
(114.03)
(8.38)
(218.59)
449.22
359.62
v crore
2017-18
2016-17
(12.09)
(15.23)
(5.33)
(191.38)
–
6.49
(0.52)
(11.45)
(3.39)
198.94
(1.04)
(12.10)
NOTE [58]
Value of financial assets and inventories pledged as collateral for liabilities and/or commitments and/or contingent liabilities:
Particulars
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
Other assets
Total non-current financial assets pledged as security
v crore
As at
31-3-2018
As at
31-3-2017
1202.00
1400.63
11382.72
10120.27
1257.08
4579.09
650.94
319.97
2664.10
848.83
19071.83
15353.80
26397.11
33711.73
26.10
180.51
26423.21
33892.24
455
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59]
Additional information pursuant to Schedule III to the Companies Act, 2013 for the year ended 31-3-2018:
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 and Aggregates
Limited
L&T Geostructure LLP
L&T Infrastructure Engineering Limited
Heavy Engineering:
L&T Cassidian Limited
Hydrocarbon:
88.35% 49174.26
73.10%
5387.30
(31.38%)
(50.94)
70.85%
5336.36
0.02%
0.11%
0.07%
0.00%
11.04
63.21
40.19
0.03%
0.42%
0.02%
1.83
31.09
1.47
0.00%
0.00%
(0.17%)
–
–
(0.28)
0.02%
0.41%
0.02%
1.83
31.09
1.19
–
0.00%
(0.03)
0.00%
–
0.00%
(0.03)
L&T Hydrocarbon Engineering Limited
3.61%
2009.85
5.50%
405.62
81.23%
131.86
7.14%
537.48
IT & Technology Services:
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Thales Technology Services Private
6.68%
3.53%
3718.58
1965.34
15.74%
6.64%
1160.12
489.38
(61.24%)
13.36%
(99.41)
21.69
14.08%
6.79%
1060.71
511.07
Limited
0.00%
(0.26)
0.03%
2.27
0.11%
0.18
0.03%
Syncordis Software Services India Private
Limited
Esencia Technologies India Private Limited
Financial Services:
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
0.00%
0.00%
0.10%
13.81%
2.46%
1.67%
1.37
0.56
53.00
7685.66
1369.43
929.73
0.00%
0.00%
0.44%
3.61%
2.34%
1.89%
0.19
0.11
0.00%
0.01%
32.40
266.05
172.35
138.96
(0.31%)
0.38%
0.26%
(0.02%)
Private Limited
0.03%
15.47
0.03%
2.42
0.00%
L&T Infra Investment Partners Trustee
Private Limited
0.00%
0.05
0.00%
(0.01)
0.00%
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
Mudit Cement Private Limited
L&T Finance Limited
L&T Infra Investment Partners (The Fund)
Developmental Projects:
L&T Metro Rail (Hyderabad) Limited
Sahibganj Ganges Bridge-Company
Private Limited
456
6.44%
0.98%
0.00%
0.00%
0.11%
(0.03%)
14.93%
0.89%
3585.22
546.13
1.53
–
63.65
(19.31)
8311.81
496.45
1.88%
0.40%
0.00%
0.00%
0.27%
(0.08%)
1.58%
0.71%
138.29
29.10
(0.06)
0.01
19.69
(5.68)
116.26
52.51
(0.06%)
(0.70%)
0.00%
0.00%
0.00%
0.00%
(0.88%)
0.00%
3.84%
2136.91
(0.79%)
(58.36)
11.80%
19.15
(0.52%)
(39.21)
0.00%
–
0.00%
–
0.00%
–
0.00%
–
2.45
0.19
0.13
31.90
266.67
172.78
138.92
0.00%
0.00%
0.42%
3.54%
2.29%
1.84%
0.03%
2.42
0.00%
(0.01)
1.83%
0.37%
0.00%
0.00%
0.26%
(0.08%)
1.52%
0.70%
138.20
27.96
(0.06)
0.01
19.69
(5.68)
114.83
52.51
–
0.02
(0.50)
0.62
0.43
(0.04)
–
–
(0.09)
(1.14)
–
–
–
–
(1.43)
–
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (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)
Marine Infrastructure Developer Private
Limited
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 Vision Ventures Limited
Seawoods Realty Private Limited
Seawoods Retail Private Limited
L&T Electricals and Automation 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:
0.58%
320.53
(1.09%)
(80.55)
0.03%
0.05
(1.07%)
(80.50)
0.07%
0.36%
5.60%
1.93%
5.66%
0.00%
1.51%
0.25%
1.95%
5.44%
(0.01%)
0.00%
0.00%
0.01%
40.58
199.77
3116.06
1072.55
3147.54
–
838.18
136.73
1087.10
3027.95
(4.63)
0.01
0.01
4.47
1.33%
0.00%
1.03%
0.00%
740.78
–
575.18
–
0.00%
0.00%
0.00%
0.00%
3.33%
0.00%
(0.05%)
1.12%
0.29%
0.37%
0.00%
0.00%
0.00%
(0.03%)
6.91%
0.12%
(0.43%)
0.29%
(0.01)
(0.01)
0.19
0.01
245.17
–
(4.00)
82.34
21.15
26.96
(0.01)
–
–
(2.07)
0.00%
0.00%
0.00%
0.00%
2.23%
0.00%
0.00%
0.00%
0.00%
0.03%
0.00%
0.00%
0.00%
0.00%
–
–
–
–
3.62
–
–
–
–
0.05
–
–
–
–
509.40
8.93
(31.40)
21.35
0.76%
(0.03%)
1.85%
0.00%
1.24
(0.05)
3.00
(0.01)
0.00%
0.00%
0.00%
0.00%
3.30%
0.00%
(0.05%)
1.09%
0.28%
0.36%
0.00%
0.00%
0.00%
(0.03%)
6.78%
0.12%
(0.38%)
0.28%
(0.01)
(0.01)
0.19
0.01
248.79
–
(4.00)
82.34
21.15
27.01
(0.01)
–
–
(2.07)
510.64
8.88
(28.40)
21.34
L&T Shipbuilding Limited
(1.45%)
(809.15)
(5.99%)
(441.36)
15.14%
24.58
(5.53%)
(416.78)
Others:
Bhilai Power Supply Company Limited
L&T Power Limited
Kesun Iron & 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%
0.00%
0.06%
0.03%
0.00%
0.71%
0.00%
1.10%
0.05
5.04
0.00%
0.00%
–
0.20
0.00%
0.00%
–
–
0.00%
0.00%
(0.26)
35.43
16.00
–
0.00%
(0.01%)
0.08%
0.00%
–
(0.91)
5.95
(0.01)
0.00%
(0.04%)
0.00%
0.00%
392.61
0.48
611.65
(0.01%)
0.00%
3.00%
(0.46)
(0.08)
221.21
12.79%
0.00%
7.99%
–
(0.06)
–
–
20.76
0.00
12.97
–
0.20
–
(0.97)
5.95
(0.01)
0.00%
(0.01%)
0.08%
0.00%
0.27%
0.00%
3.11%
20.30
(0.08)
234.18
Limited
0.01%
3.23
0.00%
0.20
0.26%
0.41
0.01%
0.61
Larsen & Toubro Readymix and Asphalt
Concrete Industries LLC
0.00%
–
(0.12%)
(8.48)
0.00%
–
(0.11%)
(8.48)
457
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (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:
Larsen & Toubro Heavy Engineering LLC
(0.34%)
(190.74)
(1.86%)
(137.34)
(1.06%)
(1.71)
(1.85%)
(139.05)
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 Saudi LLC
Larsen & Toubro Kuwait Construction
General Contracting Company WLL
PT Larsen & Toubro Hydrocarbon
Engineering Indonesia
Larsen & Toubro Electromech LLC
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 and Toubro Infotech South Africa
(PTY) LTD
Larsen & Toubro Infotech GmbH
Larsen & Toubro Infotech Austria GmbH
L&T Information Technology Spain SL
Larsen & Toubro LLC
L&T Technology Services LLC
L&T Infotech S. DE R.L. DE C.V.
Syncordis S.A. Luxembourg
Syncordis France SARL
Syncordis Limited
Syncordis PSF S.A.
Esencia Technologies Inc.
Realty:
L&T Realty FZE
Electrical & Automation:
Henikwon Corporation Sdn. Bhd.
Kana Controls General Trading and
Contracting Company WLL
L&T Electrical & Automation FZE
L&T Electricals & Automation Saudi
Arabia Company Limited
458
0.00%
(0.06%)
0.00%
(0.71%)
(0.81%)
(2.31)
(35.07)
0.01
(396.55)
(448.24)
(0.02%)
0.43%
0.00%
0.28%
(0.02%)
(1.23)
32.03
–
20.72
(1.29)
(0.01%)
0.01%
0.00%
(1.16%)
(1.39%)
(0.02)
0.01
(0.00)
(1.88)
(2.26)
(0.02%)
0.43%
0.00%
0.25%
(0.05%)
(1.25)
32.04
(0.00)
18.84
(3.55)
0.00%
(1.13)
0.12%
8.81
(0.04%)
(0.06)
0.12%
8.75
0.00%
(0.21%)
–
(114.48)
0.00%
0.25%
–
18.66
0.00%
(0.63%)
–
(1.02)
0.00%
0.23%
–
17.64
0.00%
(0.36)
0.00%
(0.22)
(0.02%)
(0.02)
0.00%
(0.24)
0.36%
0.02%
0.01%
0.01%
0.25%
0.00%
0.01%
0.00%
0.10%
0.00%
0.03%
0.01%
0.00%
0.00%
0.02%
200.22
10.95
2.81
5.03
141.25
0.72
3.29
2.42
56.62
0.32
15.40
5.39
(0.01)
0.18
12.82
0.52%
0.05%
0.00%
0.02%
0.01%
0.00%
0.02%
0.00%
0.06%
0.00%
0.08%
(0.01%)
0.00%
0.00%
0.26%
38.63
3.37
0.29
1.60
0.85
0.15
1.17
0.01
4.07
0.31
5.77
(0.76)
(0.01)
(0.04)
19.47
(0.28%)
0.21%
(0.02%)
(0.46)
0.33
(0.03)
0.39%
0.31%
0.06%
0.24%
0.00%
0.39%
0.00%
0.40%
0.20%
0.00%
0.01%
0.08%
0.63
0.51
0.09
0.39
0.00
0.63
–
0.65
0.32
–
0.01
0.14
0.51%
0.05%
0.00%
0.03%
0.02%
0.00%
0.02%
0.00%
0.06%
0.00%
0.09%
(0.01%)
0.00%
0.00%
0.26%
38.17
3.70
0.26
2.23
1.36
0.24
1.56
0.01
4.70
0.31
6.42
(0.44)
(0.01)
(0.03)
19.61
0.01%
7.34
(0.04%)
(2.59)
0.01%
0.02
(0.03%)
(2.57)
(0.02%)
(11.63)
(0.01%)
(0.90)
(0.91%)
(1.48)
(0.03%)
(2.38)
(0.01%)
0.27%
(3.63)
151.53
(0.03%)
0.49%
(2.49)
35.82
(0.05%)
0.59%
(0.07)
0.96
(0.03%)
0.49%
(2.56)
36.78
(0.02%)
(12.38)
(0.11%)
(7.84)
(0.06%)
(0.11)
(0.11%)
(7.95)
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (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
PT. Tamco Indonesia
Servowatch Systems Limited
Tamco Electrical Industries Australia Pty
Ltd.
Tamco Switchgear (Malaysia) SDN. BHD.
Thalest Limited
Others:
Larsen & Toubro (East Asia) Sdn. Bhd.
Larsen & Toubro 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
L&T MBDA Missile Systems Limited
Hydrocarbon:
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T-Gulf Private Limited
L&T Hydrocarbon Caspian LLC
Amount
(v crore)
(2.82)
2.90
(3.77)
14.23
(0.13)
(0.27)
(106.29)
(47.37)
3463.19
(634.57)
17.23
–
0.70
0.07
–
–
0.67
18.67
As % of
consolidated
other
comprehensive
income
0.67%
(1.48%)
0.06%
47.28%
0.62%
0.01%
1.81%
(0.26%)
(0.57%)
(0.21%)
0.00%
0.00%
0.00%
0.00%
(0.14%)
0.00%
As % of
consolidated
total
comprehensive
income
(0.02%)
0.01%
(0.05%)
1.21%
0.01%
0.00%
(1.37%)
(0.63%)
(8.44%)
0.22%
0.00%
0.01%
0.00%
0.00%
0.00%
0.01%
Amount
(v crore)
1.08
(2.40)
0.10
76.76
1.00
0.01
2.94
(0.43)
212.25
(0.93)
(0.35)
–
–
–
–
(0.22)
0.00
(0.57)
Amount
(v crore)
(1.74)
0.50
(3.67)
90.99
0.87
(0.26)
(103.35)
(47.80)
3675.44
(635.50)
16.88
–
0.70
0.07
–
(0.22)
0.67
18.10
(0.06%)
(0.03%)
(35.60)
(18.14)
(0.04%)
0.04%
0.01%
1.04%
0.01%
0.00%
1.28%
(0.06%)
(10.11%)
7.66
577.76
8.06
(0.05)
713.04
(31.70)
48164.30
(5625.00)
0.11%
0.00%
0.00%
0.01%
0.01%
0.00%
0.01%
61.43
–
–
5.94
6.00
0.01
3.73
77.11
(0.05%)
0.19%
0.00%
0.00%
(1.44%)
(0.64%)
(8.61%)
0.23%
0.00%
0.01%
0.00%
0.00%
0.00%
0.01%
0.02%
10.44
0.14%
10.21
0.00%
–
0.14%
10.21
1.09%
604.68
1.67%
123.15
4.50%
7.30
1.73%
130.45
0.19%
0.06%
0.06%
0.00%
0.00%
0.00%
0.51%
0.03%
0.00%
107.27
35.66
32.78
0.42%
0.09%
0.07%
31.10
6.53
5.43
–
0.02
(3.02%)
0.00%
(222.58)
(0.01)
0.45
283.09
14.48
0.36
0.00%
0.05%
0.04%
0.00%
0.06
3.98
2.70
–
6.93%
0.02%
0.13%
0.55%
0.00%
0.00%
0.88%
0.00%
0.00%
11.25
0.04
0.21
0.56%
0.09%
0.08%
42.35
6.57
5.64
0.89
–
–
1.43
–
–
(2.94%)
0.00%
(221.69)
(0.01)
0.00%
0.07%
0.04%
0.00%
0.06
5.41
2.70
–
459
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [59] (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)
Developmental Projects:
L&T Infrastructure Development Projects
Limited (Consolidated)
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 & Systems,
Kish, (PJSC)
Total Joint Ventures
CFS Adjustment and elimination
Total
NOTE [60]
2.36%
1310.89
(5.61%)
(413.64)
1.58%
2.57
(5.46%)
(411.07)
0.04%
20.47
0.04%
3.01
(0.60%)
(0.97)
0.03%
2.04
0.00%
0.26
0.00%
(0.02)
0.00%
–
0.00%
(0.02)
0.00%
0.00%
(69.28%)
–
0.08%
5.74
0.00%
–
0.08%
5.74
0.04
2410.45
(38554.57)
55656.99
0.00%
(5.70%)
0.02
(454.53)
(420.41)
7369.86
(0.01%)
(12.44%)
(0.02)
22.70
(20.18)
162.33
0.00%
(5.85%)
0.00
(431.83)
(440.59)
7532.19
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:
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
Sr.
No.
1
2
3
4
5
Particulars
Inventories
Trade receivables
Loans - current
Other financial assets
Other current assets
Sr.
No.
1
2
3
4
Particulars
Trade payables
Other financial liabilities
Other current liabilities
Provisions
460
As at 31-3-2018
After twelve
months
Total
As at 31-3-2017
After twelve
months
973.83
527.34
3.34
–
8425.30
4847.80
34654.08
559.72
4194.59
46524.83
174.01
473.86
9.14
104.80
9880.93
4139.74
28688.97
486.45
3286.34
39056.82
As at 31-3-2018
After twelve
months
Total
As at 31-3-2017
After twelve
months
765.92
31.83
4746.00
161.99
37794.96
4848.99
27326.97
2483.75
1462.99
34.07
6556.30
193.60
30294.86
4828.64
23384.55
2667.81
Within
twelve
months
3965.73
28215.11
477.31
3181.54
29175.89
Within
twelve
months
28831.87
4794.57
16828.25
2474.21
Within
twelve
months
3873.97
34126.74
556.38
4194.59
38099.53
Within
twelve
months
37029.04
4817.16
22580.97
2321.76
v crore
Total
v crore
Total
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [61]
Disclosure pursuant to Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” on new Ind AS that has been issued
but is not effective as of the closing day of the reporting period:
(a)
Ind AS 115 Revenue from Contracts with Customers
The Ministry of Corporate Affairs notified Ind AS 115 “Revenue from Contracts with Customers” in respect of accounting periods
commencing on or after April 1, 2018 superseding Ind AS 11 “Construction Contracts” and Ind AS 18 “Revenue”.
The Group’s current revenue recognition policy is broadly aligned to the principles enunciated in Ind AS 115 and does not require
any material change except for realty business. In terms of Ind AS 115, revenue of realty business will be recognised at the time
of delivery of units to the customers as compared to revenue recognition based on percentage completion method currently
followed as per the Guidance note issued by the Institute of Chartered Accountants of India. The management is in the process
of implementing Ind AS 115 and does not expect any material impact on the Group’s financial position as at March 31, 2018 and
on the financial results of the Group in the first year of implementation viz. financial year commencing on April 1, 2018 except as
above.
(b)
Ind AS 21 “The Effects of Changes in Foreign Exchange Rates”
On March 28, 2018, the Ministry of Corporate Affairs notified Companies (Indian Accounting Standards) Amendment Rules, 2018
and inserted Appendix B, Foreign Currency Transactions and Advance Consideration in Ind AS 21.
In Appendix B, it is clarified that the date of transaction to determine the exchange rate to use on initial recognition of related
asset, expense or income is the date on which the initial recognition of the non-monetary asset or non-monetary liability arising
from the payment or receipt of advance consideration.
The Group’s existing accounting policy conforms to the above clarification.
NOTE [62]
Disclosure pursuant to Ind AS7 “Statement of cash Flows” - Changes in Liabilities arising from financing activities:
Sr. No.
Particulars
Non-current
borrowings (note
22)
Current borrowings
(note 26)
Current maturities
of long term
borrowings (note 27)
1
2
3
4
5
6
Opening balance
Proceeds from Borrowings (net)
Effect of changes in foreign exchange
rates
Interest accrued (net of interest paid)
Other changes (transfer within categories)
Closing balance
67340.58
14133.39
11.23
(326.42)
(8244.02)
72914.76
Amounts reported in Statement of cash flow under financing activities
Particulars
Proceeds from non-current borrowings
Repayment of non-current borrowings
Proceeds from other borrowings (net)
changes from financing cash flows (Refer Sr No. 2 above) (a)
Repayments on account of liability classified as held for sale (b)
Total changes from financing cash flows (a+b)
v crore
Total
93953.95
12641.28
58.62
870.23
–
16534.47
2680.02
56.03
61.33
–
10078.90
(4172.13)
(8.64)
1135.32
8244.02
19331.85
15277.47
107524.08
v crore
2017-18
46903.46
(36942.20)
2680.02
12641.28
(22.28)
12619.00
461
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [63]
Disclosure pursuant to Ind AS 20 “Accounting for Government Grants and Disclosure of Government Assistance”:
The Group’s exports qualify for various export benefits offered in the form of duty credit scrips under foreign trade policy framed
by Department General of Foreign Trade India (DGFT). Income accounted towards such export incentives amounts to R 208.06 crore
(previous year: R 27.23 crore).
NOTE [64]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2018.
NOTE [65]
Figures for the previous year have been regrouped/re-classified to conform to the figures of the current year.
462
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013]
Sr. No.
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.
1
Bhilai
Power
Supply
Company
Limited
31-Mar-18
–
–
2
L&T
Shipbuilding
Limited
31-Mar-18
–
–
3
L&T
Electricals
and
Automation
Limited
31-Mar-18
–
–
4
Hi-Tech
Rock
Products &
Aggregates
Limited
31-Mar-18
–
–
5
L&T
Seawoods
Limited
31-Mar-18
–
–
6
Kesun Iron
& Steel
Company
Private
Limited
31-Mar-18
–
–
7
L&T Valves
Limited
v crore
8
L&T Realty
Limited
31-Mar-18
–
–
31-Mar-18
–
–
11-Jul-95
0.05
13-Nov-07
444.00
12-Dec-07
7.44
01-Jan-08
0.05
13-Mar-08
1999.55
16-Jan-09
0.01
23-Nov-61
18.00
30-Nov-07
47.16
–
(1253.15)
(2.97)
10.99
1028.40
(0.27)
557.18
1039.95
2.34
2.39
2.39
–
–
–
–
–
–
–
–
–
99.90
4120.75
3311.60
3311.60
11.12
730.89
(441.36)
–
(441.36)
–
–
–
–
97.00
6.78
11.24
11.24
–
–
(2.07)
–
(2.07)
–
–
–
–
100.00
79.86
90.90
90.90
–
244.24
2.75
0.92
1.83
–
–
–
–
100.00
9
Chennai
Vision
Developers
Private
Limited
31-Mar-18
–
–
10
L&T Vision
Ventures
Limited
11
L&T Power
Limited
12
L&T
Cassidian
Limited
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
161.74
3189.69
3189.69
–
132.70
33.79
6.83
26.96
–
–
–
–
100.00
13
L&T
Aviation
Services
Private
Limited
31-Mar-18
–
–
0.29
0.02
0.02
–
–
–
–
–
–
–
–
–
95.00
501.73
1076.91
1076.91
24.19
930.64
(48.69)
(17.29)
(31.40)
–
–
–
–
100.00
89.34
1176.45
1176.45
854.39
39.52
32.63
11.48
21.15
–
–
–
–
100.00
14
Larsen
& Toubro
Infotech
Limited
15
L&T Finance
Holdings
Limited $
16
L&T
Housing
Finance
Limited $
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
14-Aug-08
0.01
22-Dec-06
0.05
09-Mar-06
0.05
15-Apr-11
0.05
06-Nov-09
45.60
23-Dec-96
17.20
01-May-08
3030.08
09-Oct-12
165.37
(0.01)
(4.68)
4.99
(0.05)
(10.17)
3701.40
5621.50
1,196.71
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: $ Reporting as per the Companies (Accounting Standards) Rules 2006 (I-GAAP)
0.01
–
–
–
–
(0.00)
–
(0.00)
–
–
–
–
100.00
10.87
6.24
6.24
–
–
(0.01)
–
(0.01)
–
–
–
–
68.00
0.02
5.06
5.06
5.06
–
0.20
–
0.20
–
–
–
–
99.99
–
–
–
–
–
(0.03)
–
(0.03)
–
–
–
–
100.00
18.06
53.49
53.49
–
18.83
(0.74)
0.17
(0.91)
–
–
–
–
100.00
1333.00
5051.60
5051.60
1560.30
6906.40
1468.42
308.30
1160.12
(303.38)
–
–
–
82.96
487.06
9138.64
9138.64
7840.39
449.93
394.68
26.84
367.84
–
–
(145.74)
–
64.01
10640.44
12002.52
12002.52
571.97
1193.06
255.27
88.91
166.36
(173.44)
–
–
–
64.01
463
PB
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.)
v crore
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 Finance
Limited $
18
L&T Capital
Markets
Limited
19
L&T
Investment
Management
Limited $
20
L&T Mutual
Fund Trustee
Limited
22
L&T Infra
Debt Fund
Limited $
21
L&T
Infrastructure
Finance
Company
Limited $
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
23
L&T Infra
Investment
Partners
Advisory
Private
Limited $
31-Mar-18
–
–
24
L&T Infra
Investment
Partners
Trustee
Private
Limited
31-Mar-18
–
–
31-Dec-12
1599.14
07-Feb-13
56.62
25-Apr-96
251.82
30-Apr-96
0.15
18-Apr-06
989.91
19-Mar-13
595.48
30-May-11
5.00
12-Aug-11
0.10
6987.61
(3.62)
230.12
1.38
2358.31
420.54
10.46
(0.05)
36070.22
44656.97
44656.97
2412.94
4997.45
434.53
144.61
289.92
–
–
–
–
64.01
27.19
80.19
80.19
27.93
93.72
34.90
2.50
32.40
–
–
–
–
64.01
104.06
586.00
586.00
118.84
615.51
17.30
–
17.30
–
–
–
–
64.01
0.06
1.59
1.59
1.25
0.05
(0.08)
(0.01)
(0.06)
–
–
–
–
64.01
22871.01
26219.23
26219.23
2179.79
2565.27
81.96
6.07
75.89
(151.46)
–
–
–
64.01
6230.53
7246.55
7246.55
–
543.24
149.17
(0.48)
149.65
–
–
–
–
64.01
1.61
17.07
17.07
13.68
7.26
3.36
0.95
2.41
–
–
–
–
64.01
0.02
0.06
0.06
0.03
0.03
(0.01)
–
(0.01)
–
–
–
–
64.01
25
L&T
Financial
Consultants
Limited
31-Mar-18
–
–
26
Mudit
Cement
Private
Limited
31-Mar-18
–
–
27
L&T Capital
Company
Limited
31-Mar-18
–
–
28
L&T Trustee
Company
Private
Limited
31-Mar-18
–
–
29
L&T Power
Development
Limited
31-Mar-18
–
–
30
L&T
Uttaranchal
Hydropower
Limited
31-Mar-18
–
–
31
L&T
Arunachal
Hydropower
Limited
31-Mar-18
–
–
32
L&T
Himachal
Hydropower
Limited
31-Mar-18
–
–
16-Jun-11
18.88
27-Dec-13
2.10
06-Apr-00
0.05
09-Jul-09
0.01
12-Sep-07
3112.70
13-Nov-06
180.50
24-Jun-10
40.39
22-Jun-10
200.05
44.77
(21.42)
15.95
(0.01)
3.36
892.05
0.19
(0.28)
0.46
16.46
16.46
8.15
7.74
8.53
2.58
5.95
–
–
–
–
100.00
–
–
–
–
–
0.01
–
0.01
–
–
–
–
100.00
2.07
3118.13
3118.13
3110.59
7.80
0.28
0.09
0.19
–
–
–
–
100.00
62.98
1135.53
1135.53
1.63
–
0.01
–
0.01
–
–
–
–
100.00
0.12
40.70
40.70
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
0.80
200.57
200.57
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
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
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Note: $ Reporting as per the Companies (Accounting Standards) Rules 2006 (I-GAAP)
425.21
488.87
488.87
4.26
87.00
24.90
5.21
19.69
–
–
(52.03)
–
64.01
56.04
36.73
36.73
–
–
(5.45)
0.23
(5.68)
–
–
–
–
64.01
464
465
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.)
37
33
L&T
Nabha
Infrastructure
Power
Engineering
Limited
Limited
36
L&T
Construction
Equipment
Limited
34
L&T
Metro Rail
(Hyderabad)
Limited
35
L&T
Technology
Services
Limited
v crore
40
L&T
Hydrocarbon
Engineering
Limited
Particulars
Sr.
no.
Sr. No.
38
L&T Thales
Technology
Services
Private
Limited
39
Sahibganj
Ganges
Bridge-
Company
Private
Limited
31-Mar-18
–
–
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
464
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
09-Apr-07
2325.00
24-Aug-10
2206.98
14-Jun-12
20.49
29-Jul-97
120.00
09-Dec-98
3.60
15-Feb-14
2.05
14-Jul-16
0.01
02-Apr-09
1000.05
822.54
(70.06)
1944.85
620.78
36.59
(2.32)
(0.01)
1009.80
7948.17
11095.71
11095.71
–
3778.16
282.48
37.31
245.17
–
–
–
–
100.00
11506.23
13643.14
13643.14
–
1408.71
(58.36)
–
(58.36)
–
–
–
–
100.00
627.60
2592.94
2592.94
322.45
3506.60
681.05
191.67
489.38
(81.70)
–
–
–
88.64
574.73
1315.51
1315.51
24.38
1151.50
650.48
141.08
509.40
–
–
–
–
100.00
41
Marine
Infrastructure
Developer
Private
Limited
31-Mar-18
–
–
42
L&T Infra
Contractors
Private
Limited
43
Esencia
Technologies
India Private
Limited
31-Mar-18
–
–
31-Mar-18
–
–
44
Syncordis
Software
Services
India Private
Limited
31-Mar-18
–
–
31.54
71.73
71.73
–
59.04
2.63
1.16
1.47
–
–
–
–
100.00
45
Larsen &
Toubro LLC
56.66
56.40
56.40
1.33
73.55
1.66
(0.61)
2.27
–
–
–
–
65.60
46
Larsen
& Toubro
Infotech,
GmbH
31-Mar-18
USD
65.18
31-Mar-18
EURO
80.81
0.01
0.01
0.01
–
–
–
–
–
–
–
–
–
100.00
6866.05
8875.90
8875.90
1370.59
11044.35
641.35
235.73
405.62
–
(60.90)
–
–
100.00
47
Larsen
& Toubro
Infotech
Canada
Limited
31-Mar-18
CAD
50.65
48
Larsen
& Toubro
Infotech LLC
31-Mar-18
USD
65.18
22-Jan-16
400.00
17-Mar-17
0.01
31-May-17
0.01
11-Dec-17
0.45
02-Jan-01
0.34
14-Jun-99
0.40
25-Apr-00
–
21-Jul-09
–
(79.47)
(0.01)
0.55
0.92
2.08
152.31
11.13
2.84
1566.28
1886.81
1886.81
–
–
(82.27)
–
(82.27)
–
–
–
–
97.00
0.00
0.01
0.01
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
0.32
0.88
0.88
–
3.78
0.62
0.15
0.47
–
–
–
–
88.64
0.26
1.62
1.62
–
4.36
0.71
0.18
0.53
–
–
–
–
82.96
1.72
4.13
4.13
–
3.31
0.04
0.03
0.01
–
–
–
–
99.19
138.83
291.55
291.55
–
86.12
4.31
3.03
1.27
(8.83)
–
–
–
82.96
31.10
42.23
42.23
–
110.16
4.83
1.28
3.55
–
–
–
–
82.96
0.68
3.52
3.52
–
6.79
0.32
–
0.32
–
–
–
–
82.96
465
51
L&T
Information
Technology
Services
(Shanghai)
Co., Ltd.
31-Dec-17
CNY
9.82
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 &
L&T Infotech
Toubro
Financial
International
Services
FZE
Technologies
Inc.
50
Larsen &
Toubro
Infotech
South Africa
(PTY) Limited
54
Larsen &
Toubro
Hydrocarbon
International
Limited LLC
52
L&T Realty
FZE
55
Thalest
Limited
Particulars
Sr.
no.
Sr. No.
v crore
56
Servowatch
Systems
Limited
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
31-Mar-18
CAD
50.65
31-Mar-18
ZAR
5.58
31-Mar-18
AED
17.75
31-Mar-18
USD
65.18
31-Dec-17
SAR
17.03
31-Mar-18
GBP
92.28
31-Mar-18
GBP
92.28
01-Jan-11
189.94
25-Jul-12
0.25
28-Jun-13
1.06
27-Jan-08
15.97
25-Sep-01
1788.08
17-Jun-13
0.85
04-Apr-12
1.23
04-Apr-12
23.53
10.28
4.92
(1.28)
(8.35)
(1017.69)
(2.99)
6.83
(41.67)
38.52
238.73
238.73
–
253.22
54.79
16.19
38.60
(40.18)
–
–
–
82.96
15.86
21.02
21.02
–
28.17
2.52
0.76
1.75
–
–
–
–
62.14
1.98
1.76
1.76
–
1.34
–
–
–
–
–
–
–
82.96
0.09
7.71
7.71
–
–
(2.54)
–
(2.54)
–
–
–
–
100.00
57
L&T Modular
Fabrication
Yard LLC
58
Larsen &
Toubro (East
Asia) SDN.
BHD
59
Larsen &
Toubro Qatar
LLC
60
L&T Overseas
Projects
Nigeria
Limited
243.39
1013.77
1013.77
568.23
0.04
(107.82)
–
(107.82)
–
–
–
–
100.00
61
L&T Electrical
& Automation
Saudi Arabia
Company
Limited LLC
31-Dec-17
OMR
165.91
31-Mar-17
MYR
14.65
31-Dec-17
QAR
17.54
31-Dec-17
NGN
0.18
31-Mar-18
SAR
17.38
6.50
4.35
4.35
–
–
(0.79)
0.98
(1.78)
–
–
–
–
100.00
62
Larsen &
Toubro Kuwait
Construction
General
Contracting
Company,
W.L.L
31-Dec-17
KWD
211.58
–
8.06
8.06
–
–
(0.13)
–
(0.13)
–
–
–
–
100.00
58.73
40.59
40.59
–
65.92
2.65
(0.25)
2.90
–
–
–
–
100.00
63
Larsen &
Toubro (Saudi
Arabia) LLC
64
Larsen Toubro
Arabia LLC
31-Mar-18
SAR
17.38
31-Dec-17
SAR
17.03
05-Jul-06
47.86
13-Jun-96
1.10
31-Mar-04
0.35
15-Jul-04
0.18
22-Aug-06
31.28
29-Nov-06
42.32
22-Jun-99
24.98
01-Jul-12
17.03
(46.79)
(1.32)
0.16
(0.17)
(42.99)
(41.44)
586.66
(411.48)
277.51
278.58
278.58
–
501.32
9.19
–
9.19
–
–
–
–
70.00
4.26
4.04
4.04
–
2.81
(0.14)
–
(0.14)
–
–
–
–
30.00
4.07
4.59
4.59
0.18
–
(0.03)
–
(0.03)
–
–
–
–
49.00
0.02
0.03
0.03
–
–
–
–
–
–
–
–
–
100.00
129.27
117.56
117.56
–
79.34
(8.71)
–
(8.71)
–
–
–
–
100.00
19.66
20.53
20.53
–
–
1.61
–
1.61
–
–
–
–
49.00
1312.27
1923.91
1923.91
–
1902.62
288.67
67.46
221.21
–
–
–
–
100.00
729.70
335.26
335.26
–
386.30
(85.44)
–
(85.44)
–
–
–
–
75.00
466
467
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
PT. Tamco
Larsen &
Indonesia
Toubro ATCO
Saudia LLC
67
Henikwon
Corporation
Sdn. Bhd.
Particulars
Sr.
no.
Sr. No.
68
Tamco
Electrical
Industries
Australia
Pty Ltd.
70
Larsen
& Toubro
Heavy
Engineering
LLC
71
L&T
Electrical &
Automation
FZE
66
Tamco
Switchgear
(Malaysia)
Sdn. Bhd.
v crore
72
Kana
Controls
General
Trading &
Contracting
Company
W.L.L
31-Mar-18
KWD
217.83
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
466
31-Dec-17
SAR
17.03
31-Mar-18
MYR
16.87
31-Mar-18
MYR
16.87
31-Mar-18
AUD
50.05
31-Dec-17
IDR
0.00
31-Dec-17
OMR
165.91
31-Mar-18
AED
17.75
08-Jul-07
1.70
29-May-07
168.68
03-Jul-12
10.88
23-Apr-08
82.44
23-Apr-08
12.19
07-Apr-08
93.99
04-Apr-08
1.77
10-Sep-13
2.18
(439.67)
433.13
(22.51)
(74.78)
(45.52)
(8.89)
176.36
(5.28)
679.26
241.29
241.29
–
52.53
0.42
1.03
(0.61)
–
–
–
–
100.00
73
Larsen
and Toubro
T&D SA
Propreitary
Limited
31-Mar-18
ZAR
5.58
263.51
865.31
865.31
–
500.58
21.99
6.52
15.47
–
–
–
–
100.00
24.52
12.89
12.89
–
42.11
(0.96)
–
(0.96)
–
–
–
–
100.00
17.27
24.93
24.93
–
2.74
(3.77)
–
(3.77)
–
–
–
–
100.00
105.80
72.47
72.47
–
59.42
2.71
0.40
2.32
–
–
–
–
100.00
110.57
195.67
195.67
–
49.12
(136.43)
(5.27)
(131.16)
–
–
–
–
70.00
209.35
387.48
387.48
–
430.27
33.25
0.34
32.91
–
–
–
–
100.00
30.60
27.49
27.49
–
29.36
(2.14)
–
(2.14)
–
–
–
–
49.00
74
L&T
Technology
Services LLC
75
L&T
Infotech
Austria
GMBH LLC
76
L&T Global
Holdings
Limited
77
L&T
Information
Technology
Spain, S.L.
78
Larsen
& Toubro
(Oman) LLC
79
Esencia
Technologies
Inc.
80
Syncordis
S.A.
31-Mar-18
USD
65.18
31-Mar-18
EURO
80.81
31-Mar-18
USD
65.18
31-Mar-18
EURO
80.81
31-Dec-17
OMR
165.91
31-Mar-18
USD
65.18
31-Dec-17
EURO
76.53
06-Sep-10
4.18
26-Jun-14
97.83
18-Jun-15
0.28
24-Feb-16
52.14
01-Feb-16
0.40
29-Jan-94
24.18
31-May-17
27.96
15-Dec-17
0.27
(0.95)
(41.21)
0.43
(83.84)
2.93
262.70
(15.13)
11.78
0.32
3.55
3.55
–
–
0.20
–
0.20
–
–
–
–
72.50
141.52
198.13
198.13
–
164.08
4.29
0.22
4.07
–
–
–
–
88.64
0.17
0.89
0.89
–
2.95
0.19
0.05
0.14
–
–
–
–
82.96
1306.85
1275.14
1275.14
1117.89
–
(47.37)
–
(47.37)
–
–
–
–
100.00
19.15
22.48
22.48
–
64.77
1.66
0.49
1.17
–
–
–
–
82.96
2927.42
3214.30
3214.30
–
2955.17
11.55
(0.07)
11.62
–
–
–
–
65.00
16.94
29.77
29.77
0.03
118.65
28.08
8.62
19.47
–
–
–
–
88.64
26.92
38.96
38.96
1.01
106.12
17.60
4.29
13.31
–
–
–
–
82.96
467
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
Larsen
Syncordis
and Toubro
France SARL
Electromech
LLC
31-Dec-17
OMR
165.91
86
L&T -
Sargent
and Lundy
Limited
31-Mar-18
–
–
83
Syncordis
Support
Services
S.A.
31-Dec-17
EURO
76.53
84
L&T
Infotech S.
DE R.L. DE
C.V.
31-Dec-17
MXN
3.24
v crore
88
L&T - MHPS
Boilers
Private
Limited
31-Mar-18
–
–
87
L&T - Gulf
Private
Limited
31-Mar-18
–
–
31-Mar-18
GBP
92.28
31-Dec-17
EURO
76.53
82
Syncordis
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
15-Dec-17
0.11
15-Dec-17
0.01
15-Dec-17
0.23
01-Mar-17
0.00
01-Jan-05
4.98
05-May-95
5.57
11-Jan-08
8.00
09-Oct-06
234.10
5.48
(0.02)
(0.04)
0.11
(126.40)
60.02
20.96
951.56
9.64
15.23
15.23
–
28.55
4.05
1.32
2.73
–
–
–
–
82.96
0.02
0.01
0.01
–
–
(0.01)
–
(0.01)
–
–
–
–
82.96
0.19
0.38
0.38
–
–
(0.04)
–
(0.04)
–
–
–
–
82.96
89
L&T - MHPS
Turbine
Generators
Private
Limited
90
Raykal
Aluminium
Company
Private
Limited
31-Mar-18
–
–
31-Mar-18
–
–
91
L&T Special
Steels and
Heavy
Forgings
Private
Limited
31-Mar-18
–
–
3.77
3.88
3.88
–
5.08
0.23
0.11
0.12
–
–
–
–
82.96
382.82
261.39
261.39
–
320.47
16.98
0.68
16.30
–
–
–
–
70.00
92
L&T
Howden
Private
Limited
93
L&T Sapura
Offshore
Private
Limited
28.02
93.61
93.61
38.12
95.06
11.16
1.34
9.82
–
–
–
–
50.0001
94
L&T
Kobelco
Machinery
Private
Limited
6.34
35.30
35.30
1.36
25.75
7.51
2.12
5.39
–
–
–
–
50.0002
3095.20
4280.86
4280.86
578.43
2966.52
368.17
126.70
241.47
–
–
–
–
51.00
95
L&T Sapura
Shipping
Private
Limited
96
L&T MBDA
Missile
Systems
Limited
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
27-Dec-06
710.60
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
02-Sep-10
158.85
05-Apr-17
0.05
(448.17)
0.29
(1165.17)
41.19
0.74
(9.87)
312.90
(0.02)
2220.43
2482.86
2482.86
150.32
963.29
60.21
2.69
57.52
–
–
–
–
51.00
0.63
0.97
0.97
–
–
(0.03)
–
(0.03)
–
–
–
–
75.50
2093.96
1495.39
1495.39
–
127.87
(270.30)
–
(270.30)
–
–
–
–
74.00
131.57
202.76
202.76
–
234.86
27.35
14.31
13.04
–
–
–
–
50.10
5.94
6.70
6.70
–
–
0.10
–
0.10
–
–
–
–
60.00
36.22
76.35
76.35
5.73
78.94
5.90
–
5.90
–
–
–
–
51.00
380.99
852.74
852.74
–
122.17
6.99
0.36
6.63
–
–
–
–
60.00
0.01
0.04
0.04
–
–
(0.02)
–
(0.02)
–
–
–
–
51.00
468
469
Sr. No.
Sr.
no.
Particulars
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.)
97
101
Vadodara
L&T
Bharuch Tollway
Infrastructure
Limited
Development
Projects
Limited $
31-Mar-18
–
–
102
L&T Interstate
Road Corridor
Limited
103
LT IDPL INDVIT
Services
Limited
99
Krishnagiri
Thopur Toll
Road Limited
98
Panipat
Elevated
Corridor
Limited
100
Western
Andhra
Tollways
Limited
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
31-Mar-18
–
–
v crore
104
L&T
Transportation
Infrastructure
Limited
31-Mar-18
–
–
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.
26-Feb-01
321.06
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
2565.42
(352.69)
(141.40)
(73.50)
(249.45)
42.95
19.87
156.04
2570.80
5457.28
5457.28
3700.19
467.97
(72.95)
40.36
(113.32)
–
–
–
–
97.45
497.60
229.20
229.20
–
70.45
(29.16)
–
(29.16)
–
–
–
–
97.45
474.53
411.88
411.88
74.59
144.41
33.27
3.30
29.97
–
–
–
–
97.45
263.83
246.83
246.83
79.02
75.69
15.42
4.34
11.08
–
–
–
–
97.45
1074.13
868.18
868.18
320.08
332.13
72.19
16.04
56.15
–
–
–
–
97.45
295.70
395.81
395.81
150.83
26.90
(4.38)
0.27
(4.66)
–
–
–
–
97.45
71.51
105.33
105.33
102.58
–
0.20
0.04
0.16
–
–
–
–
97.45
176.51
373.95
373.95
80.97
30.39
14.15
1.42
12.73
–
–
–
–
98.12
105
L&T Krishnagiri
Walajahpet
Tollway Limited
31-Mar-18
–
–
106
Devihalli
Hassan Tollway
Limited
31-Mar-18
–
–
107
L&T Halol
Shamlaji
Tollway Limited
31-Mar-18
–
–
108
Ahmedabad-
Maliya Tollway
Limited
31-Mar-18
–
–
109
L&T BPP
Tollway Limited
31-Mar-18
–
–
110
L&T Samakhiali
Gandhidham
Tollway Limited
31-Mar-18
–
–
111
L&T Deccan
Tollways
Limited
31-Mar-18
–
–
112
Kudgi
Transmission
Limited
31-Mar-18
–
–
23-Apr-10
90.00
27-Apr-10
90.00
09-Sep-08
795.35
09-Sep-08
149.00
25-May-11
247.20
05-Feb-10
80.54
20-Dec-11
285.34
30-Aug-13
192.60
35.63
(37.44)
(360.94)
(44.98)
(549.25)
(95.69)
(115.93)
113.39
723.57
1157.97
1157.97
–
84.47
(44.65)
–
(44.65)
–
–
–
–
47.75
1241.37
1345.39
1345.39
2.73
174.28
(47.34)
–
(47.34)
–
–
–
–
97.45
4942.90
4640.84
4640.84
3.19
360.71
(302.60)
–
(302.60)
–
–
–
–
97.45
1676.05
1660.90
1660.90
3.58
139.24
(104.79)
–
(104.79)
–
–
–
–
97.45
2058.99
2228.39
2228.39
42.10
290.50
(113.50)
–
(113.50)
–
–
–
–
97.45
1634.41
1940.40
1940.40
254.70
191.24
48.14
12.80
35.33
–
–
–
–
97.45
469
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: $ Reporting as per the Companies (Accounting Standards) Rules 2006 (I-GAAP)
992.78
1118.41
1118.41
25.48
152.40
27.94
5.42
22.52
–
–
–
–
97.45
312.07
364.62
364.62
1.81
46.82
(11.46)
–
(11.46)
–
–
–
–
97.45
468
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
Managers
Pte Limited
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.
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
113
L&T
Sambalpur
- Rourkela
Tollway
Limited
31-Mar-18
–
–
18-Oct-13
290.03
(8.80)
1020.13
1301.36
1301.36
1.73
305.31
(5.87)
–
(5.87)
–
–
–
–
97.45
31-Mar-18
SGD
49.82
30-Sep-13
0.00
–
0.00
0.00
0.00
–
–
(0.06)
–
(0.06)
–
–
–
–
97.45
31-Mar-18
–
–
16-Feb-09
169.10
(521.81)
1501.66
1148.96
1148.96
–
–
(66.14)
–
(66.14)
–
–
–
–
72.11
31-Mar-18
–
–
08-Sep-08
110.00
(122.75)
954.97
942.22
942.22
–
104.88
(46.48)
–
(46.48)
–
–
–
–
97.45
31-Mar-18
–
–
24-Mar-08
42.00
(5.36)
371.44
408.08
408.08
–
–
(0.30)
–
(0.30)
–
–
–
–
97.45
470
471
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part B: ”Associates/Joint ventures”
Sr. No.
1
2
3
4
5
Name of Associates
Sr
No.
L&T- Chiyoda
Limited
International
Seaports
(Haldia)
Private Limited
L&T Camp
Facilities LLC
Magtorq
Private Limited
Larsen &
Toubro
Qatar & HBK
Contracting
Co.WLL
1
2
3
4
5
6
7
Latest audited Balance Sheet Date
31-Mar-18
31-Mar-17
31-Dec-17
31-Dec-17
31-Mar-18
Date on which the Associate or Joint Venture was
associated or acquired
Shares of Associate/Joint Ventures held by the
company at the year end
Number
Amount of Investment in Associates/Joint
Venture (R crore)
Total Share capital (R crore)
Reserves closing (R crore)
Total No of shares
Extent of Holding %
26-Oct-94
11-Feb-05
13-Sep-07
28-Jul-04
30-Sep-12
45,00,000
98,30,000
4.50
9.83
9.00
112.48
44.06
21.76
90,00,000
4,40,58,020
2,450
4.33
8.70
(1.83)
5,000
100
0.18
0.35
(7.26)
196
50.00%
21.74%
49.00%
51.03%
9,000
4.42
21.00
10.65
21,003
42.85%
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 (R crore)
Profit/(Loss) for the year (R crore)
Considered in Consolidation
Not Considered in Consolidation
60.74
14.31
3.36
(3.53)
4.65
34.47
–
7.92
–
1.45
–
–
–
0.18
–
470
471
Statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part B: ”Associates/Joint ventures” (contd.)
Sr. No.
6
7
8
Name Of Associates
Sr
No.
Latest audited Balance Sheet Date
Date on which the Associate or Joint Venture was associated or acquired
Shares of Associate/Joint Ventures held by the company at the year end
Number
Amount of Investment in Associates/Joint Venture (R crore)
Total Share capital (R crore)
Reserves closing (R crore)
Total No. of shares
Extent of Holding %
Description of how there is significant influence
1
2
3
4
5
6
7
Indiran
Engineering
Projects and
Systems Kish
PJSC
Grameen
Capital India
Limited
Gujarat
Leather
Industries
Limited
31-Mar-18
31-Oct-09
31-Mar-17
5-Jun-15
27-Jun-91
875
0.39
0.78
(1.07)
1,750
50.00%
2,126,000
735,000
2.13
8.18
(7.66)
–
–
–
81,77,887
Refer Note 4
16.64%
50.00%
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 (R crore)
Profit / (Loss) for the year (R crore)
Considered in Consolidation
Not Considered in Consolidation
(0.15)
0.03
–
–
–
–
–
–
–
Notes:
1. Significant influence is demonstrated by holding 20% or more of the total voting power, or control of or participation in business decisions under an
agreement of the investee.
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.
S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)
R. SHANKAR RAMAN
Chief Financial Officer &
Whole-time Director
(DIN 00019798)
SUBODH BHARGAVA
(DIN 00035672)
VIKRAM SINGH MEHTA
(DIN 00041197)
N. HARIHARAN
Company Secretary
M. No. A3471
M. DAMODARAN
(DIN 02106990)
M. M. CHITALE
(DIN 00101004)
SUNITA SHARMA
(DIN 02949529)
SANJEEV AGA
(DIN 00022065)
Directors
Mumbai, May 28, 2018
472
PB
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
or failing him
having e-mail id
or failing him
having e-mail id
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 Third
Annual General Meeting of the Company, to be held at Birla Matushri Sabhagar,19, Marine Lines, Mumbai - 400020 on Thursday, August 23,
2018 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
Adoption of audited financial statements for the year ended March 31, 2018 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, 2018.
Dividend on equity shares for the financial year 2017-18.
Appoint Mr. Subramanian Sarma (DIN: 00554221) as a Director liable to retire by rotation.
Appoint Mrs. Sunita Sharma (DIN: 02949529), as a Director liable to retire by rotation.
Appoint Mr. A.M Naik (DIN: 00001514), as a Director liable to retire by rotation.
Appoint Mr. D.K Sen (DIN: 03554707), as a Director liable to retire by rotation.
Appoint Mr. Hemant Bhargava (DIN: 01922717), as a Director liable to retire by rotation.
Appoint Mr. A.M Naik (DIN: 00001514) aged 75 years, as Non-Executive Director
PB
473
Item No.
Resolutions
For
Against
9
Approve payment of remuneration to Mr. A.M Naik (DIN: 00001514), as Non-Executive Director
10
11
Issue listed/unlisted secured/unsecured redeemable non-convertible debentures, in one or more series/tranches/
currencies, aggregating up to R 6000 crore.
Ratification of remuneration payable to M/s R. Nanabhoy & Co. Cost Accountants (Regn. No. 00010) for the
financial year 2018-19.
Signed this ........................ day of ............... 2018
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 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.
474
PB
SEBI Notification dated June 8, 2018 – Amendment to Regulation 40 of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015
Dear Shareholder(s),
SEBI has, vide a notification dated June 8, 2018 amended Regulation 40 of Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 mandating transfer of securities only
in dematerialized form.
Accordingly, requests for effecting transfer of securities shall not be processed unless the securities are held in
Dematerialized form with effect from December 5, 2018. Therefore, please note that the RTA and the Company
will not be accepting any request for transfer of shares in physical form with effect from December 5, 2018. This
restriction shall not be applicable to the requests received for transmission or transposition of physical shares.
You may access this Notification from the website of SEBI.
Shareholders are accordingly requested to get in touch with any Depository Participant to open a Demat
account. You may visit the website of depositories viz., NSDL or CDSL for further understanding about the
demat procedure:
NSDL website: https://nsdl.co.in/faqs/faq.php (dematerialization)
CDSL website: https://www.cdslindia.com/investors/open-demat.aspx
You may also visit the Investors section of our website for detailed procedure for dematerialization of shares.
Shareholders, who are holding shares in physical form are requested to arrange for the dematerialization of
the said shares at the earliest to avoid any inconvenience in future for transfer of shares.
PB
475
NOTES
476
477
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
Mandatory updation of PAN and Bank details against your holding
Dear Shareholder(s),
The Securities and Exchange Board of India has vide its circular SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated 20th April, 2018
mandated that companies through their Registrar and Transfer Agents (“RTA”) take special efforts for collecting copies of
PAN and bank account details of their security holders holding securities in physical form.
Those security holders whose folio(s) do not have complete details relating to their PAN and Bank Account, or where there
is any change in the bank account details provided earlier, have to compulsorily furnish the details to the RTA / Company
for registration / updation.
In case your PAN and/or Bank details are not updated with the RTA, please do the needful at the earlest by following the
below mentioned procedure.
ACTION REQUIRED FROM YOU
You are requested to submit the following to update the records immediately
•
•
•
•
Enclosed format duly filled in and signed by the shareholder/s (available on page 478)
Self-attested copy of Pan Card of all the security holders
Cancelled Cheque leaf with name (if name is not printed on the cheque, bank attested copy of the pass book (first
page) showing name of account holder) of the First holder
Address proof (self-attested copies of recent Electricity or Telephone Bill and Ration Card, PAN Card and Aadhaar Card)
of the First holder
We request your co-operation in this regard.
In case if you have any queries or need any assistance, please contact:
Larsen & Toubro Limited
L&T House, N. M. Marg, Ballard Estate, Mumbai - 400 001
Tel. No. 022-67525656 Fax. No. 022-67525893
Website : www.larsentoubro.com
Email : igrc@Larsentoubro.com
For Larsen & Toubro Limited
Sd/-
N. Hariharan
Company Secretary (ACS 3471)
476
477
Format for Furnishing the PAN and Bank Details
To
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32, Gachibowli,
Financial District, Nanakramguda, Hyderabad - 500 032
Dear sir,
Unit: Larsen & Toubro Limited
I/ We furnish below our folio details along with PAN and Bank mandate details for updation and confirmation of doing the
needful. I/we are enclosing the self-attested copies of PAN cards of all the holders, original cancelled cheque leaf of first
holder, Bank pass book and address proof viz., Aadhaar card as required for updation of the details:
Folio No.
Address of the
1st named shareholder
Mobile No
E-Mail id
Bank Account Details : (for electronic credit of unpaid dividends and all future dividends)
Name of the Bank
Name of the Branch
Account Number (as appearing in
our cheque book)
Account Type (Savings / Current /
Cash Credit)
9 Digit MICR Number (as appearing
on the MICR cheque issued by the
bank) A photocopy of a cheque is
enclosed for verification
11 Digit IFSC Code
Savings
Current
Cash Credit
PAN No.
Name
First Holder :
Joint Holder 1 :
Joint Holder 2 :
Signature :
Date:
Place:
NB: The above details will not be updated if the supporting documents are not attached and not duly self attested.
478
PB
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
Dear Shareholder,
Date: ______________
We are privileged to have you as our shareholder. It has been our constant endeavour to improve the services to our Investors
and in this pursuit, we are once again sending you this Feedback Form, which is a self addressed prepaid Inland letter. We
request you to kindly spare some time and retum the same to us duly completed. We look forward to your feedback/valuable
suggestions.
Thanking you,
Yours faithfully,
For LARSEN & TOUBRO LIMITED
N. Hariharan
Company Secretary
M. No. A3471
Name and address of the shareholder
SHAREHOLDER’S FEEDBACK FORM
Phone No: (with STD code)
E-maii ID:
Folio No./DP ID & Client ID
Shareholders Satisfaction Survey Questionnaire
(please 3 the appropriate box)
A. Do you perceive the Company as creating shareholder value in the:
Short Term
Long Term or
(i)
(ii)
(iii) Both
Yes
Yes
Yes
No
No
No
B. Are you satisfied with the growth strategy of the Company?
Yes
No
Not aware
Excellent
Good
Poor*
Not
experienced
C.
D.
E.
F.
Please rate the contents and quality of Annual Report
Please rate the contents and quality of the website of the Company
Arrangements and presentations made at the last AGM
Quality and accuracy of response to your queries and complaints:
- by Company
- by Registrar
G.
Timeliness of response form
- the Company
- the Registrar
H.
Please rate the hospitality and efficiency of the persons attending to you when
you interact with
- Investors Relation Cell
- Office of Registrars
I.
Overall quality of service provided by
- the Company
- the Registrar
* Kindly let us know your experience in space provided overleaf
Do you have any grievance which has not been redressed
J.
Yes
No
Signature
Fold hereFold hereFold here
BUSINESS REPLY LETTER
Postage
will be
paid by
addresssee
No Postage
stamp
necessary
if posted in
India
B. R. PERMIT No.: MBI GPO - 0049
Mumbai G.P.O.
Mumbai - 400 001.
Larsen & Toubro Limited
Secretarial Department
L&T House, Ballard Estate,
Mumbai - 400 001.
* In case your response to any question overleaf is “Poor”, kindly share your experience and let us know the reason/
instances to enable us to investigate the matter.
In case of any queries, kindly contact our Registrar:
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
First FoldSecond FoldFold hereFold hereFold here AWARDS & RECOGNITION
Every year, L&T and its people receive a number of national and international awards that
acknowledge its varied accomplishments. Presented by the media, industry associations,
independent bodies and academia, they honour the Company’s contribution in various spheres
of business, technology, financial performance, growth and environmental protection.
For details of recent awards, please visit www.Larsentoubro.com
.
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