Size: 21cm X 26cm
LED BY TECHNOLOGY
EQUIPPED FOR GROWTH
7 4 t h A N N UA L R E P O RT
2 0 1 8 - 2 0 1 9
CHAiRMAN’S STaTEmEnT
annuaL rEporT 2018-19
A.M. NAik
Group Chairman
We look forward with optimism
to political leadership with the
vision, maturity and resolve
to usher in a resurgent era of
inclusive growth and prosperity.
Dear Shareholders
at the outset, our hearty
congratulations to the new
Government on winning a decisive
mandate in the General Elections.
With the uncertainties thrown up
by the polls now behind us, the
country can re-focus on its primary
goal of building a new future for
all its citizens. We look forward
with optimism to the new political
leadership which we believe possesses
the vision, maturity and resolve to
usher in a resurgent era of inclusive
growth and prosperity.
Economic Scenario
india’s GDp in FY2019 is estimated
to have grown by around 7 per cent.
While this is a laudable achievement
in the global context, it falls
marginally short of expectations due
to an interplay of macro-economic
and political factors. These include
the uncertainties which invariably
accompany our General Elections,
volatility in crude prices and
unpredictable currency fluctuations.
The economy also had to grapple
with a funding crunch for nFBCs
precipitated by the iL&FS debt default,
deceleration in the agriculture and
mining sectors and widening of fiscal
and current account deficits.
on a positive note, the country has
largely got back on track after the
initial disruptive effects of twin reform
measures, viz., Demonetisation and
GST. The longer-term benefits of
both these measures are gradually
being realised through an uptick in
tax collections on an expanding base
of tax payers. We also see the light at
the end of the tunnel in the case of
overleveraged corporate balance sheets
and high bank loan delinquencies.
imaginative steps such as the resolution
of stressed businesses under the
insolvency & Bankruptcy Code, bank
recapitalisation and more stringent
application of npa credit provisions
norms should help the sector back on
its feet. it is also heartening to note
that india now ranks 77th in the World
Bank’s Ease of Doing Business index,
continuing its ascent for the second
consecutive year.
Benign headline retail (Cpi) inflation
(a nominal anchor of monetary policy)
over a prolonged period has prompted
a softer monetary policy resulting in
lower interest rates. Eventually, this
should rev up private sector investment,
which has remained dormant for the
past few years.
1
CHAiRMAN’S STaTEmEnT
annuaL rEporT 2018-19
Though corporate earnings have registered reasonable
growth during FY19, Fiis have been withdrawing significant
tranches of money from secondary markets for the better
part of the year. Domestic money managers also rebalanced
their portfolios by favouring defensive sectors and reducing
allocations to cyclical sectors like infrastructure. The last few
months of FY19 have, however, witnessed a rebooting of
confidence in the future of the economy, with markets too
recording a significant inflow of Fii money.
While the private sector has been somewhat tentative
in increasing spends in FY19 (in areas of ppp, industrial
capex and certain segments of urban infrastructure), the
public sector has been far more forthcoming with vigorous
investments in key sectors. These include water, metro rail
networks, railways, roads and road adjacencies (special
bridges, expressways and city flyovers), power transmission
& distribution and hydrocarbon. The strong underlying
macro drivers of investments in these sectors are expected
to sustain into FY20 and beyond. Encouragingly, the
private sector also seems to have overcome its bashfulness,
and begun to show signs of revival in road concessions,
airports, healthcare, metals, mining and cement capacity
augmentation. Gross fixed capital formation rate improved
to 32.3% in FY19 from 31.4% in FY18, signalling a smart
rise in public investment spending.
on the international front, optimism and growth are being
held hostage to geo-political uncertainties, such as Brexit,
the flaring of protectionist tendencies and the combustible
issue of trade tariffs. Current consensus forecasts point to
a slowdown in the world economy in 2019, precipitated by
higher oil prices in 2018 and tempering of uS growth, even
as the uS Fed is under pressure to adopt an accommodative
monetary stance. against this backdrop, your Company’s
investments in targeted geographies are expected to yield
salutary returns. our clear thrust is towards renewable
energies, hydrocarbon expansion and non-oil revenues
in the middle East as well as significant investments in
infrastructure in non-middle East geographies where your
Company has consolidated its presence.
Group level Performance Overview
Your Company has once again turned in a stellar
performance on all key parameters. order inflows, which are
the lifeblood of any business with Engineering, procurement
and Construction (EpC) as its core, came in at R 176,834
crore in FY19 registering a strong growth of 16% over
FY18. The unexecuted order Book as on 31st march, 2019
stood at R 293,427 crore which gives us strong revenue and
2
margin visibility for the next few years. revenues in FY19
have clocked in at R 141,007 crore registering a resurgent
growth of 18% over FY18. paT touched an all-time high
of R 8,905 crore in FY19 representing a substantial growth
of 21% over FY18.
The touchstone of your Company has been its focus on
shareholder value creation and your Company has delivered
on this front in FY19 as well.
it gives me great pleasure to inform you that the Board
of Directors has recommended a Dividend of R 18.00 per
share. The corresponding dividend in the previous year was
R 16.00 per share.
international business
Geographical de-risking has always been part of your
Company’s game plan for international markets. across the
last decade, the strong organisation which we have built in
the oil-rich middle East region has paid handsome dividends,
while insulating us from the periodic ups and downs of the
domestic economy. The recent volatility in crude prices due
to political and economic crosscurrents has, however, led
to reduced investments in opEC regions. having proactively
readied itself for such an eventuality, your Company forayed
into select african countries, Bangladesh and Sri Lanka. This
sustained drive over the last few years has started yielding
results, with non-middle East business contributing to
around 45% of the international order Book.
meanwhile, L&T infotech (LTi) and L&T Technology Services
(LTTS) accelerated their growth thrust in the uS and
European markets.
Talent Management and Succession Planning
Your Company believes that people are the basic building
blocks of a business organisation, and places unrelenting
emphasis on nurturing, retaining and developing talent at all
levels of management. The wide canvas of businesses within
the Group offers unparalleled opportunities for professional
growth. Structured professional and leadership development
programmes, monetary and non-monetary rewards as well
as a conducive work environment and mentoring at various
levels form the backbone of hr initiatives of your Company.
i personally allocate quality time to mentoring the next
generation of leaders for the Group, apart from involvement
in strategy, business portfolio rationalisation and CSr.
Sustainable Development
Your Company views sustainability as the essential discipline
of balancing economic growth with social inclusiveness and
environmental conservation. our Sustainability policy mirrors
our values and ethos, while our Sustainability programme
is aligned to universally recognized development goals
and focused on measurable outcomes. We offer green
technology solutions for our clients, work continuously
on energy intensity reduction and shrinking our carbon
footprint. a ‘reduce, reuse, recycle and redeem’ principle
has helped us reduce consumption of natural resources.
most of our campuses are water positive and many
harness green energy. on the community front, the social
infrastructure which we help to build is introducing positive
change in the lives of thousands who live in proximity to
our campuses. The mantle of social responsibility extends
beyond the organization to a youthful army of your
Company’s employee volunteers known as ‘L&Teers’. it is
indeed heartening that many L&Teers, entirely of their own
volition, have made social change their personal mission.
in 2018-19 your Company moved to a higher level
of disclosure in the public domain and published its
first integrated report () which conforms to the
international integrated reporting Council (iirC) framework
and is in accordance with the Global reporting initiative
(Gri) Standards.
Total spends on CSr initiatives in 2018-19 by your Company
amounted to R 122 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.
The focus areas under CSr continue to be health, education,
skill building, water and sanitation.
Outlook
apart from the hustle of the election campaigns distracting
attention from economic policy-making, this year we had to
contend with global deceleration and financial constraints
cramping many economies. all this is likely to present
challenges to india’s growth story in FY20. We expect the
investment climate to improve in the second half of FY20,
as the new Government settles down. Financial markets
and capital inflows may witness volatility in the first half
of FY20 but gain relative stability in the latter half, given
india’s inherent potential as an investment destination in the
emerging markets space.
The traction that the country’s infrastructure development
has seen in the last few years will, to our minds, continue
in the future. retail (Cpi) inflation, projected by the rBi to
remain below 4% up to end-2019, should facilitate a soft
monetary policy in FY20. additionally, the decisive market
interventions of the central bank, the recent recapitalisation
of public sector banks and the ongoing resolution of chronic
stressed asset cases through iBC give us reason for a broadly
positive outlook.
Segments which hold promise in the current year
include:
1) infrastructure
a) Urban infrastructure
Your Company has for several years been at the
forefront of designing and constructing large and
complex civil infrastructure. our capabilities and track
record place us in pole position to make the most of
numerous emerging opportunities. These include:
airports, commercial buildings, hospitals, educational
institutions, convention centres, shopping malls, iT
buildings, affordable housing and high-end residential
real estate.
b) Smart Cities
Your Company leads the way in building smart city
infrastructure and is well-positioned for the projects
likely to be ordered out. We are looking at expanding
opportunities in intelligent traffic management and
surveillance systems, smart electric grids & lighting,
fibre optic cabling and transport & logistics systems.
The domain expertise available with L&T infotech and
L&T Technology Services positions your Company as a
formidable player in master Systems integration for smart
city projects.
c) Roads
While the focus of the national highways authority
of india continues to be on both EpC and the hybrid
annuity model, expressways as well as special bridges
and city flyovers are likely to buttress the overall roads
investment programme in the country.
d) Railways
With the execution of the first two legs of the Dedicated
Freight Corridor well underway, the focus has shifted
to the mumbai-ahmedabad high speed rail project,
rapid electrification of railway lines and track
upgradation / augmentation. all these are likely to
provide good business prospects in FY20.
3
CHAiRMAN’S STaTEmEnT
annuaL rEporT 2018-19
e) Metro Rail
in the last few years, urban planning authorities have
zeroed in on metro rail networks as the most viable
solution for decongesting urban traffic in our cities.
While over ten cities have operational metro rail
networks covering close to 600 km of inner city
networks, another 600 km are currently under
construction and around 1400 km are in the planning
stage. investment in this area is expected to continue
for many years as more and more cities move from
drawing board to execution phase over the years. Total
spends on metro rail networks in the country over
the next few years are expected to be in the region of
R 400,000 crore.
2) Water infrastructure
The sector has seen a surge in investments over the last
few years, and the momentum is expected to continue.
infrastructure for management of water resources within
the country, waste-water treatment facilities as well as large
lift irrigation systems are likely to see continued investment.
inland waterways infrastructure could receive focused
government attention from FY20 onwards.
3) Power Transmission & Distribution (PT&D)
prospects in india and other focused geographies continue
to be strong, with investments by Central as well as
State utilities offering good business opportunities. The
Saubhagya initiative launched by the Government in 2017
to transmit electricity to individual households along with
smart metering has given good business traction to your
Company. This programme is expected to extend into FY20
as well.
While building further on its presence in the middle East
markets, your Company has also successfully entered parts
of East africa, algeria, Egypt and countries in East asia.
These geographies are likely to provide continual growth
opportunities.
4) Hydrocarbon
This business has grown rapidly in FY19 in terms of order
inflows and revenues. it sees sizeable investment prospects
in domestic and international markets in both offshore and
onshore segments. prevailing oil prices, hovering around
uSD 70 per barrel (Brent Crude), should spur further
investment in oil producing countries, and ensure a pipeline
of continued investments in the production and processing
of hydrocarbons.
5) Heavy Engineering
Your Company’s competitive position is built around its
strong technological capabilities in designing and production
of sophisticated equipment for the oil & gas, fertiliser and
power sectors. on the back of significant all-round growth in
FY19, the business is expected to leverage strong domestic
and global business opportunities in FY20.
6) Defence Engineering
This business segment was formed keeping in mind the
abundant business opportunities that are likely to come up in
the domestic market on a continuing basis. Your Company’s
expertise spanning three decades, in both land-based and
naval systems, gives this business a competitive edge in
responding to the strong defence capex outlay that is likely
to sustain at a national level in the coming years.
7) Thermal Power Generation
This sector continues to face a host of challenges.
manufacturers of core power generation equipment must
contend with over-capacity, intensive competition and
inadequate coal supply. aggravating this is a customer base
weakened by financially-stressed ipps, public utilities in the
red and rural customers clamouring for more subsidised
power. Despite these prevailing conditions, your Company
sees the potential to bid for around 8 GW of upcoming
projects in the power EpC space as well as tenders for retro-
fitting existing power plants with state-of-the-art emission
control equipment. During the last year, we successfully
executed gas-fired power plant projects in Bangladesh and
are targeting similar opportunities in neighbouring countries.
8) Realty
The real estate sector is slowly picking up as demonstrated
in an increase in sales, a gradual reduction of unsold
inventory levels and improvement in absorption rates. Your
Company’s real estate development projects in mumbai as
well as Bengaluru are progressing well and are expected to
provide steady revenues and profits over the next few years.
The launch of new projects in mumbai and Chennai should
provide growth momentum to this business.
9) information Technology and Technology
Services (iT&TS)
This business segment, comprising two separate listed
entities (L&T infotech and L&T Technology Services) has
recorded strong revenue growth and increased profitability
over the last few years. The business is expected to continue
registering strong growth in FY20 while maintaining margins.
4
10) Financial Services
The nBFC space in india since mid-2019 has been
dominated by the unfortunate developments concerning
iL&FS. it has led to a liquidity squeeze, and made lenders
wary of rolling over short liability positions. Your Company’s
financial services business successfully weathered the
upheaval thanks to its robust financial structure, control on
aLm mismatches, short term strategy and sound operating
practices. The situation has since improved and the business
turned in a superlative financial performance in FY19 on all
key parameters even during a volatile year. The business has
delivered top quartile return on Equity (roE) in FY19 and
expects to continue this strong roE performance in FY20.
11) Development Projects
Your Company has a clutch of concessions in roads,
transmission lines, coal fired power plants, hydel power
plants and a large metro rail (in hyderabad). in FY19, we
successfully divested five road assets to an infrastructure
investment Trust (inviT) and a container port (in Kattupalli,
Tamil nadu) as part of our wide-ranging efforts to enhance
Group roE. Certain stretches of the hyderabad metro rail
have been completed in FY19 and it is expected that the
network will be commissioned fully in FY20. The focus here
is on monetisation of the value created in these businesses.
L&T-NxT
Your Company is an early adopter of digital technologies
among india’s E&C companies, and is adept at ioT, Lidar,
photogrammetry, Bim, ai and machine Learning. Launched
three years ago, the digital initiative yielded significant asset
productivity gains and process efficiencies to operations
ranging from pre-bid engineering and cost-estimation,
project execution and monitoring and supply chain
interactions.
on the strength of wide-ranging digital transformations
achieved successfully within the L&T group, we have
now launched a new strategic initiative ‘L&T-nxT’ to
extend this in-house experience and expertise to global
markets and create value for our clients in select industry
verticals. Leveraging the domain expertise of L&T across
diverse industry segments, L&T-nxT targets building a
business through the use of new age technologies, such
as iioT, digitalisation and analytics, artificial intelligence,
augmented / Virtual reality, Geo-spatial applications and
Cyber Security to partner our clients in their transformation
journey. We believe there is a huge opportunity ahead
with an increasing number of companies moving towards
industry 4.0 and adopting ‘Smart’ products, systems &
processes to unlock incremental value. While it is too early
to talk about financials, L&T-nxt is well positioned to capture
a significant market share and become one of the key
drivers for L&T’s growth in the long term.
Acquisition of Mindtree Limited
Your Company is in the process of acquiring a controlling
stake in mindtree Limited, a company operating in the
iT services space. We believe the acquisition would be
completed in the best interests of all stakeholders. For L&T,
it is a good opportunity to grow the iT&TS business portfolio
and create value for the shareholders.
Strategic Plan
Your Company’s 5-year strategic plan ‘LaKShYa’ is
the roadmap for growth and value addition. LaKShYa
extends from FY17 to FY21 and encompasses every major
performance parameter to achieve the over-arching goal of
boosting roE. Your Company is well on its way to achieving
its targets and has recorded progress on all fronts of the
Lakshya plan over the last three years (FY17 to FY19).
We remain confident of achieving the goal in FY21 (the
terminal year of the plan) and in the meantime, have been
developing the next strategic plan (to be launched from
FY22) to ensure steady, profitable growth into the future.
Acknowledgements
i would like to thank the leadership team of L&T headed
by mr. S.n. Subrahmanyan and all the employees for their
stellar contribution to the Company’s performance. i also
thank our customers, vendors and other stakeholders for
their confidence and trust in the Company. i acknowledge
and thank my fellow Board members for their invaluable
support in taking the Company to greater heights.
Thank You
a.m. naik
Group Chairman
5
CONTENTS ANNUAL REPORT 2018-19
CONTENTS
6
Company Information
Organisation Structure
Leadership Team
L&T Nationwide Network
& Global Presence
Corporate Social
Responsibility
Annual Business
Responsibility Report
(ABRR) 2018-19
Standalone Financials -
10 Year Highlights
Consolidated Financials
- 10 Year Highlights
Graphs
Route Map to the
AGM Venue
AGM Notice
Directors’ Report
7
8-9
10
12-13
14-18
20-41
42
43
44-45
46
47-63
64-167
Management Discussion
& Analysis
168-299
Auditors’ Report on
Standalone Financial
Statements
Balance Sheet
Statement of
Profit and Loss
300-309
310-311
312-313
Statement of Changes
in Equity
314
Cash Flow Statement
315-316
Notes Forming Part of the
Financial Statements
317-417
Auditors’ Report on
Consolidated Financial
Statements
Consolidated Balance
Sheet
418-429
430-431
Consolidated Statement
of Profit and Loss
432-433
Consolidated Statement
of Changes in Equity
434-435
Consolidated Cash Flow
Statement
436-437
Notes Forming Part of
the Consolidated Financial
Statements
Information Regarding
Subsidiary Companies
Proxy Form
Shareholder’s
Satisfaction Survey Form
– 2018-19
438-545
546-555
557-558
559-560
COMPANY inFormaTion
annuaL rEporT 2018-19
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)
MR. THOMAS MATHEW T.
independent Director
MR. D. K. SEN
Whole-time Director & Sr. Executive Vice president
(infrastructure)
COMPANY
INFORMATION
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
BoarD oF
DirECTorS
MR. JAYANT DAMODAR PATIL
Whole-Time Director & Sr. Executive Vice president
(Defence, L&T-nxT)
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 Fintech private Limited
74th annual General meeting at Birla matushri Sabhagar, 19, Sir Vithaldas Thackersey marg, mumbai - 400 020.
on Thursday, 1st august, 2019 at 3.00 p.m.
7
ORGANiSATiON STruCTurE annuaL rEporT 2018-19
88
99
LEADERSHiP TEam annuaL rEporT 2018-19
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)
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, L&T-NxT)
10
Hasit Joshipura
Sr. Vice President & Head
Electrical & Automation
As on 1st June, 2019
www.Larsentoubro.com
Game changers
don’t dream of change.
They engineer it.
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
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11
NATIONWIDE NETWORK & GlObal PREsENcE aNNUal REPORT 2018-19
NATIONWIDE
NETWORK
Rajpura
Chandigarh
New Delhi
Faridabad
Jaipur
Udaipur
Ahmedabad
Jamnagar
Vadodara
Bhopal
Pithampur
Lucknow
Guwahati
Varanasi
Durgapur
Ranchi
Jamshedpur
Serampore
Kolkata
Hazira
Madh
Mumbai
Panvel
Lonavala
Ahmednagar
Talegaon
Pune
Nagpur
Raipur
Rourkela
Cuttack
Bhubaneswar
Visakhapatnam
Hyderabad
Vijayawada
Pulicat
Kattupalli
Chennai
Kancheepuram
Puducherry
Bengaluru
Mysuru
Coimbatore
Kochi
Registered Office
Campus+
Power Plant
Shipyards
Offices
Knowledge City
Leadership Development Academy
Corporate Technology and Engineering Academy
Construction Skills Training Institutes*
+ ‘Campus’ denotes facilities for design and manufacture
* Part of L&T’s Corporate Social Initiatives
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13
CORPORATE SOCIAL RESPONSIBILITY ANNUAL REPORT 2018-19
CORPORATE
SOCIAL
RESPONSIBILITY
Rainwater harvesting through an anicut, at Village Kemriya,
Bhim Block, Rajasthan
Contributing towards Social
Development and Growth
L&T is an engineering and construction conglomerate
with a concern for the community. Building on over
eight 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 L&T’s 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.
In the recent years we consolidated CSR programmes
with a focus on certain development areas that align
with the global and national development agenda.
L&T received the highest ‘4 Good’ rating in the annual
The Economic Times ‘2 Good 4 Good’ CSR Rating
Scheme based on its performance and impact created
in CSR in the period 2016-18. A total of 35 companies
participated this year in the rating scheme presented by
The Economic Times, with knowledge partner KPMG.
Through the CSR theme ‘Building India’s Social
Infrastructure’ we are glad to contribute to social
change in India. Here is a snapshot of our CSR
interventions across four key thrust areas.
WATER & SANITATION
The Integrated Community Development Program of L&T
started in 2014-15, focused on making water - the very
‘necessity of life’ - available to six water stressed districts
in Rajasthan, Maharashtra and Tamil Nadu covering 20100
households across an area of 16844 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
1414
Handpump at Village Upla Karkala,Gram Panchayat
Lasadiya, Bhim Block in Rajasthan
Computer lab set up in Dr. Manibhai Desai Madhyamik and Uchhatar
Madhyamic School, Chondha Village, Navsari district, Gujarat
contribution of the community, helped in increasing the
water level in the water bodies in these villages and
retain soil moisture.
• The community groups like Village Development
Committees (VDCs), Farmers Groups 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.
• Agri-based livelihood options were created for
additional income generation benefitting 1800 no.
of families.
WASH Initiatives
The Swachha Bharat Program of GOI gave the necessary
impetus to initiate the sanitation drive in villages. L&T
trained local youth in masonary skills and used local
materials to achieve the following:
• Community-based monitoring committees to deter open
defecation.
• Construction of over 4000 well-designed household
toilet-cum-bathrooms and over 300 school toilets of
which 1108 HH toilets and 117 school toilets were built
in 2018-19. This work was recognised under Sanitation
Mission of by Government of Rajasthan by awarding it
for being the best sanitation programme in the state.
Impact
• Access to water for drinking, sanitation, irrigation,
cultivation of fodder and extra crops
• Ensured water availability to 10558 households
• Increased land productivity by converting 46% of fallow
land to cultivable land
• 40 hamlets, 11 revenue villages and 2 gram panchayat
are ODF benefitting 1108 families this year
• Improved economies, for 18300 households, raising the
aspirations of the people
The Kookara - Lasariya watershed project, Bhim Block
of Rajsamand District Rajasthan, enabled water holding
of 6948 lakh litres in one year (2018-19) and made 54
hectares of barren land cultivable.
EDUCATION
We commit ourselves to fulfill the dream of reaching
education to each and every child. This is done by making
schools accessible, helping retaining children in school by
improving the quality of education in terms of introducing
relevant curriculum, improving teaching methods, providing
infrastructure for a coducive learning environment in
schools and ensuring parent and community partcipation
in creating a learning environment at home and in the
1515
CORPORATE SOCIAL RESPONSIBILITY ANNUAL REPORT 2018-19
Science laboratory set up for high school students of Dr. Manibhai Desai Madhyamik
and Uchhatar Madhyamic School, Chondha Village, Navsari district, Gujarat
About 300 School kits issued to various tribal and rural schools
located near SSC Talegaon, Government Primary School at Village
Diwad, Block – Maawal, District Pune, Maharashtra
community. The future strategic plan for interventions
in the education sector includes initiating the STEM
Education Project in resource-poor government schools
to teach Science and Math through hands-on models
and digital content for better comprehension and
encouraging curiosity and scientific rigour among students
in government schools.
Interventions
• Basic Infrastructural support includes construction
or repairs of the classrooms, toilet blocks and water
stations for basic hygiene facilities, midday meal kitchens
and sports grounds.
• Educational support: Supplies like uniforms, text
books, note books and sports kits are provided to under-
privileged students in government and unaided low-
income schools in rural and tribal villages
• Balwadi programme: L&T strengthens early childhood
development programme 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 sent to anganwadis provide necessary
childhood development activities
- Training of Trainers for Balwadi teachers for capacity
building
• 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 and Technology:
- L&T has supported Government initiatives and
sponsored Mini Science Centres in rural schools,
simplifying complex scientific concepts and equipped
science laboratories for practical application of
learning
- To facilitate the access to e-learning technology
rural and tribal students, L&T has provided computer
labs and digital classrooms in several peri-urban and
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
16
Mobile Medical van operated by Stree Mukti Sanghatana
in New Mumbai slums
Patient check-up for TB respiratory diseases at Koldongri TB Clinic
School Management Committee (SMC) and parents are
invited for a dialogue to encourage students to continue
the education, as well as for sustaining L&T’s efforts in
future
Impact
• 350 schools gained better facilities that increased
enrolment and retention of students
• 2,23,023 students covered through our education
projects this year.
HEALTH
L&T’s CSR programme in the health sector aims at making
quality health care services accessible and affordable
without anyone having to face financial hardship.
L&T focuses on strengthening the government health
programme 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.
Interventions
Health Centres: A team around 90 well-qualified medical
and rehabilitation consultants and 3 professionally staffed,
well-equipped multi-speciality centres provide the following
services:
Physical health: Health Centres offer tertiary health
services including Family Planning surgeries, Day Care
General Surgeries, Endoscopy Procedures and Dental
Procedures. It also provides eye check-ups, 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.
This year, L&T’s Andheri Health Centre completed 50
years of service. The interior structure was refurbished
for better organization and crowd management. The
refurbishment increased waiting space and facilitates
patient education. There is a separate space for
registration, a nurses desk and a dispensary. New
services have been introduced, such as Ultrasonography
with 2D Echo, spacious pathology with electrolytes, an
opthalmology unit and health-check-up packages.
Health Camps:
• Two mobile health vans cover marginalised communities
across in and around Mumbai including Mumbai slums
and tribal blocks near Thane and Ahmednagar
• Specialised health camps covering Eye care, Anaemia
diagnosis and treatment, Basic and rubella vaccination
drives, Skin ailments, Geriatric care, Dental, Paediatric
and Gynaecological care
17
CORPORATE SOCIAL RESPONSIBILITY ANNUAL REPORT 2018-19
Bar Bending training in progress, CSTI, Serampore, Hooghly, West Bengal
Training with Bar-tying machine, CSTI, Serampore, Hooghly,
West Bengal
• Specialised health promotion programme with focus
on hygiene, reproductive health and family life education
for children and adolescents in Government remand and
corrective homes and homes for neglected children
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).
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%
This year a Gene Expert Study machine introduced at
Koldongri Clinic as an extension to the TB programme
along with appointment of a Laboratory technician
Dialysis centres: 3748 dialysis sessions have been
conducted with over 50 patients 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.
Impact: 255000 Lives touched through various health
services
SKILL DEVELOPMENT
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 8 states, providing free training
in construction skills for the large unorganised workforce
in the sector, making them employable.
• Vocational 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 skill courses include Tailoring,
Embroidery, Beautician Course, Food processing, Home
Management, Computer skills and Basic Education and
Basic Health.
Impact:
• 8769 youth completed various courses at CSTIs this year
• 19798 people have been trained in employable vocational
skills this year.
18
19
ANNUAL BUSiNESS RESPONSiBiLiTY REPORT 2018-2019
L&T is committed to fulfilling its economic,
environmental and social responsibilities while
conducting its business. it is conscious of its impact
on the society it operates in and has systems to either
eliminate or control adverse impact. The Company
works towards resource conservation, improving social
relations with the community in which it operates and
generating economic value. L&T’s sustainability roadmap
2021 aligned with Business plan LaKShYa 2021 has
produced positive results through various digitalization
initiatives.
The Business responsibility report (Brr) is prepared
in accordance with the national Voluntary Guidelines
on Social, Environmental and Economic responsibilities
of the Business (nVG – SEE) released by the ministry
of Corporate affairs, Government of india. The Brr
complies with the regulations 34 (2) (f) of the Securities
Exchange Board of india (SEBi) (Listing obligation and
Disclosure requirements) regulations 2015. Last year,
L&T published its 1st integrated report (ir) 2017-18,
as per the international integrated reporting Council
(iirC) reporting framework. The externally assured ir
was also in accordance with Global reporting initiative
(Gri) Standards ‘Comprehensive’ option. From FY2018,
the ir has replaced the Sustainability report of the
organization. The integrated report and previous
Sustainability reports can be accessed at
www.Lntsustainability.com
SECTiON A: GENERAL iNFORMATiON ABOUT THE COMPANY
1. Corporate identity number (Cin) of the Company: L99999MH1946PLC004768
2. name of the Company: Larsen & Toubro Limited
3. registered address: L&T House, Ballard Estate, Mumbai, 400 001, india
4. Website: www.Larsentoubro.com
5. E-mail id: sustainability-ehs@Larsentoubro.com
6. Financial Year reported: 1st April 2018 - 31st March 2019
7. Sector(s) that the Company is engaged in (industrial activity code-wise):
Group Class Sub Class Description
271
2710
manufacture of electric motors, generators, transformers and electricity distribution and
control apparatus
282
2824 28246
manufacture of parts and accessories for machinery / equipment used by construction and
mining industries
301
3011 30112
Building of warships and scientific investigation ships, etc.
30114
Construction of floating or submersible drilling platforms
410
421
4100 41001
Construction of buildings carried out on own-account basis or on a fee or contract basis
4210 42101
Construction and maintenance of motorways, streets, roads, other vehicular and pedestrian
ways, highways, bridges, tunnels and subways
42102
42103
Construction and maintenance of railways and rail-bridges
Construction and maintenance of airfield runways
20
Group Class Sub Class Description
422
4220 42201
Construction and maintenance of power plants
42202
42901
Construction / erection and maintenance of power, telecommunication and transmission lines
Construction and maintenance of industrial facilities such as refineries, chemical plants, etc.
4659 46594
Wholesale of 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
465
681
252
711
8. List three key products/services that the Company manufactures/provides (as in balance sheet)
1. Construction and project related activity
2. Manufacturing and trading activity
3. Engineering services
9. Total number of locations where business activity is undertaken by the Company
i. Number of international Locations : 35
ii. Number of National Locations : 100
10. markets served by the Company – Local/State/national/international/: All
SECTiON B: FiNANCiAL DETAiLS OF THE COMPANY
1. paid up Capital (inr) : R 280.55 crore
2. Total Turnover (inr) : R 86,987.86 crore
3. Total profit after taxes (inr) : R 6,677.70 crore
4. Total Spending on Corporate Social responsibility (CSr) as percentage of profit after tax (%): 1.822%
as per the section 135 of the companies act, 2013, the CSr spend is 2.003% of the average net profits 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):
21
Yes. The Business responsibility (Br) initiatives of the company are extended to the Subsidiary/associate Companies
and they are also encouraged to participate in Business responsibility initiatives of the parent organization. in addition,
companies like L&T Finance holdings, L&T infotech, L&T Technology Services (Listed entities) will have their separate
Business responsibility report (Brr) as a part of annual report. L&T hydrocarbon Engineering and other subsidiary
companies participate in our Business responsibility initiatives.
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with participate
in the BR initiatives of the Company? if yes, then indicate the percentage of such entity/entities? [Less than
30%, 30-60%, More than 60%]:
Yes. The 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.
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 : NA
• Name : Dr. Hasit Joshipura
• Designation : Member, Executive Committee, and Senior Vice President & Head - Electrical & Automation
b) Details of the Br head
S. No
Particulars
Details
1.
2.
3.
4.
5.
Din number (if applicable)
Not Applicable
name
Designation
Telephone number
Email iD
Major General Gautam kar (Retd.)
Head Corporate infrastructure & Administrative Services
+91-22-67052447
Sustainability-ehs@Larsentoubro.com
2. 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
22
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.
4
5
6.
7.
8.
9.
Do you have a policy/policies for
has the policy being formulated in consultation with the
relevant stakeholders?
Does the policy conform to any national /international
standards? if yes, specify? (50 words)
has the policy being approved by the Board?
Yes.
if yes, has it been signed by mD/owner/CEo/appropriate
Board Director?
Signed by the Group Executive Chairman
Does the company have a specified committee of the
Board/ Director/official to oversee the implementation of
the policy?
Yes.
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
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.
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
indicate the link for the policy to be viewed online?
www.Lntsustainability.com
has the policy been formally communicated 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 redressal
mechanism related to the policy/policies to address
stakeholders’ grievances related to the policy/policies?
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
10.
has the company carried out independent audit/
evaluation of the working of this policy by an internal or
external agency?
2a. if answer to S. no. 1 against any principle, is ‘no’, please explain why: (Tick up to 2 options) Not Applicable
S. No Questions
1.
2.
The company has not understood the principles
The company is not at a stage where it finds itself in
a position to formulate and implement the policies on
specified principles
P1
-----
-----
P2
P3
P4
P5
P6
P7
P8
P9
23
S. No Questions
3.
4.
5.
6.
The company does not have financial or manpower
resources available for the task
it is planned to be done within next 6 months
it is planned to be done within the next 1 year
any other reason (please specify)
P1
-----
-----
-----
-----
P2
P3
P4
P5
P6
P7
P8
P9
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
Annually
• 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 performance annually as per the Global Reporting
initiative (GRi) framework since 2008. From 2017-18, the Sustainability Reports have been replaced by
integrated Report (iR) which follows GRi Standards as well as international integrated Reporting Council (iiRC)
framework. The integrated Report is externally assured. We are following GRi Standard and 2017-18 report
was ‘in Accordance – Comprehensive’ report. The reports can be accessed at www.Lntsustainability.com and
sustainabilityreport.Larsentoubro.com.
24
SECTiON E
Principle 1: Businesses should conduct
and govern themselves with Ethics,
Transparency and Accountability
at Larsen & Toubro, Corporate Governance is fundamental
to the business and core to its existence. The philosophy
is based on the transparent governance & disclosure
practices, respect for human rights and individual dignity
and adherence to norms of moral and professional
conduct. L&T is a professionally managed indian multi-
national, committed to total customer satisfaction and
enhanced value creation. The Vision of the company is
inclusive, with a culture of caring and trust supplemented
by corporate policies. These are also applicable to all
subsidiary and associate companies.
The Company has laid down its Code of Conduct (CoC)
which is applicable to Board members, senior management
and employees. The objective is to remain committed,
vigilant towards ethical conduct of business processes.
all employees need to adhere to and provide an annual
declaration for their compliance with the CoC. The
objective is to increase the understanding and instill a sense
ownership of the Company.
The CEo & mD provided an annual declaration by the
Board members and senior management to CoC and
affirms its compliance. The CoC is available at
www.larsentoubro.com and periodical training is
conducted for relevant stakeholders to make them aware
of the CoC and amendments. all new employees undergo
training on the CoC in the induction program. The training
module on CoC is also hosted on L&T’s web-based any
Time Learning (aTL) portal. The Graduate Engineering
Trainees (GETs) and post Graduate Engineering Trainees
(pGETs) also learn about the CoC in the ‘praYaG’ &
‘SWaGaT’ (special orientation) training modules.
at the apex level in the governance structure, a CoC
committee comprising minimum five board members
meet at least twice a year to review the CoC and ensure
implementation across the organization. This apex
committee coordinates, interacts and provides feedback to
the Executive Committee (E Com) on all issues pertaining to
the CoC. The Compliance officer of the organization also
acts as Ex-officio secretary of the apex committee. its key
function is to ensure implementation of the CoC across the
organization, review all the instances of non-compliance
and augment the CoC if required. The Compliance officer
also oversees the function of unit-level CoC committees.
All L&T vendors and suppliers sign a Combined Code of Conduct covering
various aspects of governance.
at the unit level, the CoC committee comprises four
members from heads of human resources (hr), operations
and accounts department. The committee is chaired by the
unit head and meets at least once a quarter. The role
of the unit committee comprises creating awareness
amongst employees, motivating them to adhere to the
CoC and monitoring compliance. The investigation of
non-compliance cases, and reporting to the apex level
committee is also done by the unit CoC committee.
Senior officers from various locations are appointed as
coordinators for the respective locations/businesses/
corporate departments. The objective is to inculcate good
governance practices amongst employees. This ultimately
boosts L&T’s brand value.
25
Whistle Blower Policy
The policy was formulated in 2004, and is periodically
reviewed and updated. The objective is to have a vigilance
mechanism in place for directors, senior management
and employees to report their concerns about potential,
suspected and actual frauds, unethical, and violation to the
clauses of the CoC. The Whistle Blower policy is an effective
method available to employees to fearlessely report any
wrong practices, unethical behavior or non-compliance
which may have a detrimental impact on the organization
including financial damage and its brand devaluation.
During 2018-19, a total of 51 Complaints were received
through whistleblower policy and all these complaints were
scrutinized and addressed in accordance with the Company’s
protocol. 50 complaints were resolved and one complaint
is in the process of being resolved. The Whistle Blower
investigation committee and management maintain the
anonymity of the whistleblower at all times. The stakeholder
complaints are included in the director’s report section of the
annual report.
From the last two years, the Whistleblower policy has been
extended to suppliers and contractors as well to enable
them to report their concerns about unethical behavior,
misconduct, violation of legal and other requirements,
improper practices, actual or suspected fraud by the
company official without the fear of unfair treatment
or punishment (including loss of business). The senior
management and the audit committee of the Board are
apprised of the internal processes on a periodical basis,
which covers internal controls, statutory compliance, and
assurance.
The Company has established a Combined Code of Conduct
for the suppliers and vendors which covers various aspects,
such as compliance with environmental regulations,
health & safety, labour practices, human rights aspects,
minimum wages rule, freedom of association and collective
bargaining, prohibition on child labour, forced & compulsory
labour, ethical behavior, reducing negative impact on society
due to their operations, transparency in business processes
and environment conservation.
a new supplier needs to sign this combined CoC when
he/she wants to do business with the Company. So far
more than 22,000 suppliers have signed this CoC. Training
workshops, including capacity building programmes, are
periodically conducted for vendors and sub-contractors
which cover topics from Environment, health & Safety
(EhS), human rights, business process improvements and
sustainability. The Company ensures compliance by vendors
and suppliers to combined CoC through periodic quality
appraisal, EhS audits, and assessments.
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 endeavor 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 and certified Green Campus
(LDa Lonavala). our 24 campuses have adopted the zero-
wastewater discharge approach and continue to ensure
water positive status. Energy efficiency programmes
and climate change mitigation measures are extensively
implemented across L&T, contributing to 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
26
227 MLD Water Treatment Plant, Kolkata, West Bengal
L&T offers a variety of energy-saving low voltage switchgear
and coal gasifiers. Our green portfolio is focused on
minimizing 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 the 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) are
extensively practiced by our infrastructure business. The
Sustainability Roadmap 2021 targets increasing recycling/
use of recycled material by 5%.
Fly ash substitutes cement in construction, 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 requirements, 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 help
L&T to become a truly global conglomerate. The
Company nurtures its talent by motivating 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 include Human
Rights clauses. These causes are part of our contracts with
suppliers, partners, NGOs and extended across our supply
chain.
The Company recognizes the employees’ right to form
unions and associations affiliated with trade unions at its
27
Image
Image
L&T’s 24-acre Leadership Development Academy at Lonavala
L&T promotes good electrical practices among both
employees and customers
manufacturing campuses 5.75% of permanent employees
are covered under the unionized employee category.
L&T has provided direct employment to 90 Persons With
Disabilities (PWDs) and the supply chain has employed 41
Persons With Disabilities. In 2018-19, 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
Number of
permanent women
employees
Number of
contract workmen
2822
2,93,662
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 behavioral areas. Employees are given
opportunities for higher education through sponsorship in
reputed colleges and by way of corporate tie-ups.
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. The
ATLNext, a learning process automation, and analytical
platform has been hosted since last two years. 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, 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 PhD. 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
28
Image
L&T’s unique Safety Innovation School fosters a ‘safety culture’ across the workforce
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’. 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
the commencement of work. L&T is the first corporate
organization in India to be accredited as ‘Course Provider’
by the National Examination Board in Occupational Safety
& Health (NEBOSH), United Kingdom (UK) for delivering the
International General Certificate and by the Institution of
Occupational Safety & Health (IOSH), the UK for delivering
their course.
More than 4.1 million man-hours of safety training were
provided in FY 2018-19 to our workforce. Our wellness
programme ‘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 enhancing 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.
L&T maps both internal and external stakeholders
along with vulnerable, marginalized and disadvantaged
stakeholders. This enables us to understand that our
29
L&T helps rural communities accelerate development by joining
the Digital Highway
L&T engineers make models to help make STEM concepts
easier to grasp
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.
‘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.
We use the following communication channels to engage
with various stakeholders:
External Stakeholders
Stakeholders Engagement Modes
L&T is a pioneer in providing a counseling help-line for its
employees and their families in India in collaboration with
Tata Institute of Social Science (TISS).
Shareholders
and investors
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
30
Press Release, 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
(Shareholders interaction), Investors
meet and shareholder visits to works,
corporate website
Suppliers/
Contractors
Regular supplier, dealer and stockiest
meets
Media
Press Releases, Quarterly Results, Annual
Reports, Sustainability Reports, AGM
(Shareholders interaction), Access
information & respond to queries
L&T holds supplier meets to enhance supplier’s knowledge of new products
L&T has a number of policies to ensure non-
discrimination of any form
Community
Periodic feedback mechanism
Customers
Regular business interactions, Client
satisfaction surveys
Government
Press Releases, Quarterly Results, Annual
Reports, Sustainability Reports
For Internal stakeholders
Employees Employee satisfaction surveys
Employee engagement surveys for further
improvement in employees' engagement
process
Circulars, Messages from Corporate and
Line Management
Corporate Social initiatives
Welfare initiatives for employees and their
families
Online news bulletins to convey topical
developments
A large bouquet of print and on-line in-
house magazines - some location-specific,
some business-specific, a CSR program
newsletter
L&T Helpdesk, toll-free number
Principle 5: Business should respect and
promote Human Rights
L&T is an Indian Multi-National Company (MNC) with a
presence in over 35 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 is 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, the 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 the Workplace
is implemented to address sexual harassment at the
workplace. We conduct periodical training for employees
on various aspects of 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
31
L&T regularly organizes tree plantation drives in and around its
campuses and worksites
Our water conservation efforts have resulted in all 24 of
L&T’s campuses being water positive
Workers (Regulation of Employment and Conditions of
Service) Act 1996, the Industrial Disputes Act 1947 and
amendments thereof. Four complaints of sexual harassment
at workplace 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 complaint
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
Environmental 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 considerations
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 L&T’s
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 the regional
and global level) and how these can adversely impact their
operations. We also share with our vendors, opportunities
and benefits made available by following sustainability
practices. More than 22,000 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 2018-19. Water conservation and
rainwater harvesting are practiced within our premises;
additionally, our community interventions consist of
rainwater 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
32
Alternative energy sources at L&T campuses help lower
the Company’s carbon footprint
L&T’s green portfolio includes green buildings and a large
number of eco-friendly products, systems and solutions.
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).
We maintained the Carbon Neutrality for two of our
Campuses, i.e. Powai (Mumbai) and Chennai in 2018-19
as well. 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 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 the compliance to environmental
regulations, including submission of the compliance
report to the regulatory agency. During 2018-19, there
were no pending or unresolved show cause / legal notices
from CPCB / SPCB. Renewable energy at manufacturing
campuses is utilized, wherever feasible. Currently, eight
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 the sustenance of human lives
on this planet. L&T undertakes tree plantation both within
and outside its premises (as part of its CSR programme)
and engage with agencies / NGOs to conduct plantation
at public places, national parks and on Government land.
During the year 2018-19 more than 2,50,000 trees were
planted by our people in project locations across India. We
have planted more than 7 lakh trees in the 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
We engage 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.
33
L&T actively promotes best practices in business
communications through industry bodies like the ABCI
L&T has been recognized for its sanitation efforts by the
FICCI - Sanitation Council
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
Excellence for Sustainable Development (CESD)
• CII – Green Business Centre (GBC)
• Federation of Indian Chambers of Commerce and
• Industry (FICCI)
• Indian Electrical and Electronics Manufacturers
Association
• Indian Institute of Chemical Engineers (IIChE)
• National Safety Council
• National Fire Protection Institution
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 a 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-
related 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.
Principle 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
impact. The CSR interventions of the company are based
on the CSR Policy and one in line with the Companies
Act 2013 and CSR Rule 2014. The CSR Committee of the
Board oversees the implementation of CSR programmes
34
L&T has built over 200 check dams in water stressed areas
Over 5000 L&T employee volunteers ( L&Teers) give back
to society in a myriad ways
on a project mode through the 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
i.e. Water & Sanitation, Education, Health and
Skill-Development, as mentioned below:
Water & Sanitation
• Implementation of Integrated Community Development
(ICD) Programme with the objective to make safe
drinking water available for communities staying in the
water-stressed regions of Maharashtra, Tamil Nadu and
Rajasthan
• Creating access to sanitation facilities for the communities
by building toilets and bathrooms
• Implementing soil and moisture conservation
programmes, building water harvesting structures,
check dams, field bunds and promoting other agricultural
techniques
• Conducting tree plantation drives in and around L&T
facilities and at ICD locations
• Number of beneficiaries: 1,25,535
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, building and equipping
computer labs, providing teaching aids and running
capacity building programmes for teachers
• STEM (Science, Technology, Engineering and Math)
Education infrastructure support and capacity building of
teachers and students
• Running urban and rural community learning centres
to provide after-school academic support to children from
disadvantaged communities and helping them to cope
with their curriculum and prevent them from dropping out
• L&T Employee Volunteering Programme through which
‘L&Teers’ help augment the running of urban community
learning centres
• Conducting workshops on life skills and awareness on
social issues
• Conducting summer camps, sports activities and
extracurricular activities to help children expand their
horizons
• Number of beneficiaries: 2,42,984
Health
• Providing health and welfare activities for the
underprivileged across L&T’s facility/site locations in India
35
L&T’s healthcare facilities reach the neediest, at the last mile
L&T’s runner processing machinery adds value to tyre
majors around the world
• Conducting malnutrition and anaemia mitigation camps
• 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 10 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: 2,55,000
Skill-development
• Providing free training in various construction skills like
bar bending, formwork carpentry, masonry, scaffolding,
welding, electric wiring, etc. through Construction Skills
Training Institutes (CSTIs) to rural and urban youths to
enhance their employability
• Vocational training programmes for women: Tailoring,
beautician, home nursing and food processing courses
• Imparting vocational training skills among physically and
mentally-challenged individuals
• Imparting skills and development of self-help groups at
ICD locations
• Collaboration with state run technical institutes (ITIs)
• Number of beneficiaries: 28,567
The Company contributed R 121.68 Crores in 2018-19
towards CSR activities as per the Companies Act 2013.
Principle 9: Engage with and provide value
to customers
Projects, products and services designed, developed and
executed by L&T are significant in India as well as in select
geographies.
L&T offers products and services in diverse fields keeping in
mind changing customer demands and market trends. Such
changes are also incorporated into training, R&D, design &
testing, manufacturing, construction process and customer
interactions. 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 in its business model.
We have a robust EHS management framework
complemented by the active involvement of our vendors
and contractors working at our campuses and project
36
L&T’s high-tech asset management solutions help clients enhance their productivity
Digitalization initiatives across the Company
enhance execution excellence
training and capacity building programmes for customers.
Inputs received through customer feedback sessions are
incorporated into our operations. Senior management
actively reviews customer feedback and suggests corrective
and/or preventive action as required.
All of 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.
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 fulfil the various needs of its customers. Our
products are tested against the most 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.
Providing training to our product users / clients forms an
integral part of our services including training on preventive
maintenance. Adequate labelling is put on the products
for ease in understanding during transportation and use of
products.
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.
In all its products and service offerings, L&T engages with
customers through regular customer meets, customer
satisfaction surveys and market-based research, including
37
ANNEXURE: MAPPING TO THE SEBI FRAMEWORK
Question
Reference
Section
Description
Page Number
Section A: General information about the Company
1. Corporate identity number (Cin) of the Company
2. name of the Company
3. registered address
4. Website
5. Email id
6.
7. Sector(s) that the Company is engaged in (industrial
Financial Year reported
activitycode-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
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 (%)
ar
ar
ar
ar
ar
ar
ar
ar
ar
ar
ar
ar
5.
List of activities in which expenditure in 4 above has been incurred: ar
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)
ar
ar
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that
the Company does business with, participate in the Br initiatives
of the Company? if yes, then indicate the percentage of such
entity/entities? [Less than 30%, 30-60%, more than 60%]
Section D: BR information
1. Details of Director/Directors responsible for Br
a) Details of the Director/Director the Br policy/policies
• DIN Number • Name • Designation
b) Details of the Br head
• DIN Number (if applicable) • Name • Designation • Telephone
number • e-mail ID
38
20
20
20
20
20
20-21
21
21
21
21
21
21
21
21
21
21
21
21-22
22
ar
22-23
Description
Page Number
24
24
25-26
25-26
26-27
26-27
26-27
26-27
26-27
Question
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.
Reference
Section
ar
Does the Company publish a Br or a Sustainability report? What is the
hyperlink for viewing this report? how frequently it is published?
ar
Section E: Principle-wise Performance
Principle 1: 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?
ar
how many stakeholder complaints have been received in the past
financial year and what percentage was satisfactorily resolved by the
management?
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?
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.
ar
ar
ar
ar
ar
The Company is a
leading EpC solution
provider for Solar
photo Voltaic (pV)
based power plants
helping customers save
on the energy bills and
contribute to reduction
of GhG emissions from
consumption of indirect
energy.
39
Question
Reference
Section
Description
Page Number
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 and members of this
recognized employee association?
please indicate the number of complaints relating to child labour,
forced labour, involuntary labour, sexual harassment in the last financial
year and pending, as on the end of the finacial year.
What percentage of your under-mentioned employees were given
safety and skill upgradation training in the last year?
Principle 4: Valuing Marginalized Stakeholders
has the company mapped its internal and external stakeholders?
out of the above, has the company identified the disadvantaged,
vulnerable & marginalized stakeholders? are there any special initiatives
taken by the company to engage with the disadvantaged, vulnerable
and marginalized stakeholders.
Principle 5: Human Rights
Does the policy of the company on human rights cover only the
company or extend to the Group/Joint Ventures/Suppliers
Contractors/nGos/others?
how many stakeholder complaints have been received in the past
financial year and what percent was satisfactorily resolved by the
management?
Principle 6: Environment
Does the policy relate to principle 6 cover only the company or extends
to the Group/Joint Ventures/Suppliers/Contractors nGos/others?
Does the company have strategies/ initiatives to address global
environmental issues such as climate change, global warming, etc?
Does the company identify and assess potential environmental risks?
Does the company have any project related to Clean Development
mechanism?
has the company undertaken any other initiatives on – clean
technology, energy 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.
40
27-29
27-29
27-29
29-31
29-31
31-32
31-32
32-33
32-33
32-33
32-33
32-33
32-33
32-33
Question
Reference
Section
Description
Page Number
Principle 7: Responsible Public Advocasy
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?
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
33-34
34-36
34-36
34-36
34-36
34-36
36-37
36-37
36-37
41
10 YEAR HIGHLIGHTS ANNUAL REPORT 2018-19
STANDALONE FINANCIALS-10 YEAR HIGHLIGHTS
Description
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
Ind AS
IGAAP
v crore
2010-11
$$
2009-10
Statement of Profit and Loss
Gross revenue from operations
86988
74612
66301
63813
57558
57164
52196
53738
44296
37356
PBDIT^^
8684
7701
6481
5829
6488
6667
5473
6283
5640
4816
Profit after tax (excluding
extraordinary/exceptional items)
6363
4861
4560
4454
4699
4905
4169
4413
3676
3185
Profit after tax (including
extraordinary/exceptional items)
6678
5387
5454
5000
5056
5493
4384
4457
3958
4376
Balance Sheet
Net worth
Loan funds
52551
49174
46013
42135
37085
33662
29291
25223
21846
18312
10192
10561
10558
13924
12936
11459
8478
9896
7161
6801
Capital employed
62743
59735
56571
56059
50021
45121
37769
35119
29007
25113
Ratios and statistics
PBDIT as % of net revenue from
operations @
PAT as % of net revenue from
operations $
RONW % *
9.98
10.34
9.86
9.23
11.38
11.78
10.60
11.82
12.84
13.00
7.68
7.23
8.30
7.91
8.87
9.71
8.50
8.38
9.01
11.82
13.22
11.32
12.37
12.39
14.30
17.46
16.06
18.95
19.73
28.49
Gross Debt: Equity ratio
0.19:1
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
Basic earnings per equity share (R) #
47.63
38.46
39.00
35.81
36.31
39.57
35.55
32.41
29.04
32.79
Book value per equity share (R) ##
374.63
350.90
328.79
301.57
265.85
241.97
211.39
182.90
159.31
134.98
Dividend per equity share (R) ##
18.00
16.00
14.00
12.17
10.83
9.50
8.22
7.33
6.44
5.56
No. of equity shareholders
10,21,275
8,99,902
9,23,628
10,28,541
8,53,824
832,831
854,151
926,719
8,53,485
8,14,678
No. of employees
44,761
42,924
41,466
43,354
44,081
54,579
50,592
48,754
45,117
38,785
Figures for 2015-16 to 2018-19 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 extraordinay/exceptional items wherever applicable and other income.
@
$
PBDIT as % of net revenue from operations =[(PBDIT)/(gross revenue from operations less excise duty)].
Profit After Tax (PAT) as % of net revenue from operations =[(PAT including extraordinay/exceptional items )/(gross revenue from 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 2009-10 to 2011-12 include Hydrocarbon business which has been transferred w.e.f April 1, 2013 to a wholly owned subsidiary.
42
CONSOLIDATED FINANCIALS-10 YEAR HIGHLIGHTS
Ind AS
IGAAP
v crore
Description
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
Statement of Profit and Loss
Gross revenue from operations
141007
119862
110011
101975
92762
85889
75195
64960
52470
44310
PBDIT^^
16325
13641
11130
10463
11258
10730
9929
8884
7677
6423
Profit attributable to Group
shareholders (excluding
extraordinary/exceptional items)
Profit attributable to Group
shareholders (including
extraordinary/exceptional items)
Balance Sheet
Net worth
8713
7151
5920
4154
4470
4547
4911
4649
4238
3796
8905
7370
6041
4233
4765
4902
5206
4694
4456
5451
62375
54904
50217
44180
40909
37712
33860
29387
25051
20991
Non-controlling interest
6826
5201
3564
2893
4999
3179
2653
1753
1026
1087
Loan funds
Capital employed
Ratios and statistics
PBDIT as % of net revenue from
operations @
PAT as % of net revenue from
operations $
125555
107524
93954
88135
90571
80330
62672
47150
32798
22656
194756
167629
147735
135208
136479
121221
99185
78290
58875
44734
11.58
11.40
10.18
10.35
12.24
12.60
13.33
13.81
14.75
14.61
RONW % *
15.35
14.12
12.80
6.32
6.16
5.53
4.19
9.91
5.18
5.76
6.99
7.30
8.56
12.40
12.13
13.71
16.47
17.26
19.38
31.23
Gross debt: Equity ratio
1.81:1
1.79:1
1.75:1
1.87:1
2.21:1
2.13:1
1.85:1
1.61:1
1.31:1
1.08:1
Basic earnings per equity share (R) #
63.51
52.62
43.20
30.32
34.22
35.31
37.69
34.14
32.69
40.84
Book value per equity share (R) ##
444.67
391.78
358.83
316.20
293.29
271.10
244.40
213.09
182.65
154.70
Dividend per equity share (R) ##
18.00
16.00
14.00
12.17
10.83
9.50
8.22
7.33
6.44
5.56
Figures for 2015-16 to 2018-19 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 has 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 respective years.
43
GRAPHS ANNUAL REPORT 2018-19
L&T CONSOLIDATED - ORDER INFLOW
L&T CONSOLIDATED - SEGMENT-WISE ORDER INFLOW
2018-19
e
r
o
r
c
v
190000 –
170000 –
150000 –
130000 –
110000 –
90000 –
70000 –
50000 –
30000 –
–
16%
152908
35853
142995
7%
41507
101488
117055
176834
46805
130029
2016-17
Domestic
–
2017-18
–
2018-19
–
International
5142
3%
5068
3%
95743
54%
12638
7%
14371
8%
27871
16%
6017
3%
3016
2%
4049
2%
2919
2%
v crore
Infrastructure
Power
Heavy Engineering
Defence
Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
L&T CONSOLIDATED - GROSS REVENUE FROM OPERATIONS
L&T CONSOLIDATED - SEGMENT-WISE EXTERNAL REVENUE
2018-19
150000 –
130000 –
110000 –
90000 –
70000 –
e
r
o
r
c
v
110011
9%
37654
5696
4%
5068
4%
72418
51%
18%
119862
39699
80163
141007
45109
95898
12638
9%
14371
10%
15132
11%
50000 –
72357
30000 –
–
2016-17
Domestic
–
2017-18
–
2018-19
–
International
5787
4%
3752
3%
2174
1%
3971
3%
v crore
Infrastructure
Power
Heavy Engineering
Defence
Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
L&T CONSOLIDATED - ORDER BOOK
L&T CONSOLIDATED - SEGMENT-WISE ORDER BOOK
2018-19
310000 –
260000 –
210000 –
160000 –
110000 –
e
r
o
r
c
v
261341
1%
263107
12%
69757
62506
191584
200601
293427
63266
230161
60000 –
–
As at 31-3-2017
–
As at 31-3-2018
–
As at 31-3-2019
–
Domestic
International
44
5843
2%
39717
13%
2647
1%
221850
76%
11532
4%
4760
2%
7078
2%
v crore
Infrastructure
Power
Heavy Engineering
Defence
Engineering
Electrical &
Automation
Hydrocarbon
Others
L&T CONSOLIDATED - PBDIT AS % OF NET REVENUE
FROM OPERATIONS
L&T CONSOLIDATED - PAT AND RONW %
17000 –
15000 –
13000 –
11000 –
e
r
o
r
c
v
9000 –
7000 –
5000 –
–
16325
11.6
13641
11.4
11130
10.1
2016-17
2017-18
2018-19
–
–
– 14.0
– 13.5
– 13.0
– 12.5
– 12.0
– 11.5
– 11.0
– 10.5
– 10.0
– 9.5
– 9.0
–
e
g
a
t
n
e
c
r
e
P
e
r
o
r
c
v
10000 –
9000 –
8000 –
7000 –
6000 –
5000 –
4000 –
–
– 24.0
8905
– 22.0
7370
14.1
15.3
6041
12.8
2016-17
2017-18
2018-19
–
–
e
g
a
t
n
e
c
r
e
P
– 20.0
– 18.0
– 16.0
– 14.0
– 12.0
– 10.0
–
PBDIT
PBDIT as % of net revenue from operations
PAT
RONW
L&T CONSOLIDATED - SEGMENT-WISE EBIT (SEGMENT RESULTS)
L&T CONSOLIDATED - SEGMENT-WISE NET ASSETS
6000 –
5000 –
4000 –
3000 –
2000 –
1000 –
e
r
o
r
c
v
0
4
4
5
9
8
3
5
2017-18
2018-19
4
8
0
3
3
5
0
3
7
4
1
2
1
4
4
1
3
8
1
1
6
7
7
4
1
3
6
9
1
8
7
1
1
0
5
8
2
7
7
9
6
6
7
8
0 4
3
1
5
0
2
4
6
1
2
7
4
0
2
1
25000 –
0
4
9
3
2
0
5
2
2
2
20000 –
15000 –
e
r
o
r
c
v
10000 –
5000 –
31.03.2018
31.03.2019
6
1
1
3
2
6
8
2
3
0
1
5
2
2 2
4
2
9
1
1
4
4
8
0
1
3
2
0
8
2
2
8
2
1
2
5
8
3
1
1
3
6
1
2
5
6
2
9
1
9
6
8
1
1
8
9
6
9
1
7
0
7
1
8
3
5
1
0
6
7
4
8
8
5
– – – – – – – – – – –
– – – – – – – – – – –
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
e
c
n
e
f
e
D
g
n
i
r
e
e
n
g
n
E
i
&
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
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
e
c
n
e
f
e
D
g
n
i
r
e
e
n
g
n
E
i
&
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
Total Segment wise EBIT (segment results) 2017-18 : R 12336 crore and 2018-19 : R 15733 crore
Segment wise Net Assets as at 31.03.2018 R 74271 crore and as at 31.03.2019 R 81360 crore
L&T CONSOLIDATED - EPS
L&T STANDALONE - EPS & DPS
v
n
i
70.00 –
60.00 –
50.00 –
40.00 –
30.00 –
20.00 –
10.00 –
0.00 –
–
63.51
52.62
43.20
2016-17
–
2017-18
–
2018-19
–
Earning per share
50.00 –
45.00 –
40.00 –
39.00
38.46
47.63
35.00 –
v
n
i
30.00 –
25.00 –
20.00 –
15.00 –
10.00 –
–
14
16
18
2016-17
–
2017-18
–
2018-19
–
Earning per share
Dividend per share
45
ROUTE MAP ANNUAL REPORT 2018-19
46
i p a l
c
M u n i
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 Fourth
Annual General Meeting of LARSEN & TOUBRO
LIMITED will be held at Birla Matushri Sabhagar,
19, Marine Lines, Mumbai - 400 020 on Thursday,
August 1, 2019 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, 2019 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, 2019;
2) To declare a dividend on equity shares;
3) To appoint a Director in place of Mr. M.V. Satish (DIN:
06393156), who retires by rotation and is eligible for
re-appointment;
4) To appoint a Director in place of Mr. Shailendra Roy
(DIN: 02144836), who retires by rotation and is
eligible for re-appointment;
5) To appoint a Director in place of Mr. R. Shankar
Raman (DIN: 00019798), who retires by rotation and
is eligible for re-appointment;
6) To appoint a Director in place of Mr. J.D Patil (DIN:
01252184), who retires by rotation and is eligible for
re-appointment;
7) To consider and, if thought fit, to pass as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT pursuant to the provisions of
Sections 149, 152 and any other applicable provisions
of the Companies Act, 2013 and the rules made
thereunder read with Schedule IV to the Companies
Act, 2013 (including any statutory modifications
or re-enactment(s) thereof for the time being in
force) and applicable provisions of the Securities
and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and
based on the recommendation of the Nomination
and Remuneration Committee and approval of the
Board of Directors, Mr. M.M. Chitale (DIN: 00101004)
who was appointed as an Independent Director of
the Company for a term upto March 31, 2019 by the
shareholders and in respect of whom the Company
has received a notice in writing from the Director
under Section 160 of the Companies Act, 2013
proposing his candidature for the office of a Director
be and is hereby re-appointed as an Independent
Director of the Company for a term of five years with
effect from April 1, 2019 to March 31, 2024.“
8) To consider and, if thought fit, to pass as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT pursuant to the provisions
of Sections 149, 152 and any other applicable
provisions of the Companies Act, 2013 and the
rules made thereunder read with Schedule IV to
the Companies Act, 2013 (including any statutory
modifications or re-enactment(s) thereof for the time
being in force) and Regulation 17(1A) and other
applicable provisions of the Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and based on
the recommendation of the Nomination and
Remuneration Committee and approval of the Board
of Directors, Mr. M. Damodaran (DIN: 02106990)
who was appointed as an Independent Director of
the Company for a term upto March 31, 2019 by the
shareholders and in respect of whom the Company
has received a notice in writing from the Director
under Section 160 of the Companies Act, 2013
proposing his candidature for the office of a Director
be and is hereby re-appointed as an Independent
Director of the Company for a term of five years with
effect from April 1, 2019 to March 31, 2024 and also
continue as an Independent Director of the Company
after he attains the age of 75 years.”
47
NOTICE ANNUAL REPORT 2018-19
9) To consider and, if thought fit, to pass as a SPECIAL
RESOLUTION the following:
11) To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
“RESOLVED THAT pursuant to the provisions of
Sections 149, 152 and any other applicable provisions
of the Companies Act, 2013 and the rules made
thereunder read with Schedule IV to the Companies
Act, 2013 (including any statutory modifications or
re-enactment(s) thereof for the time being in force)
and other applicable provisions of the Securities and
Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and
based on the recommendation of the Nomination
and Remuneration Committee and approval of the
Board of Directors, Mr. Vikram Singh Mehta (DIN:
00041197) who was appointed as an Independent
Director of the Company for a term upto March 31,
2019 by the shareholders and in respect of whom
the Company has received a notice in writing from
the Director under Section 160 of the Companies
Act, 2013 proposing his candidature for the office
of a Director be and is hereby re-appointed as an
Independent Director of the Company for a term of
five years with effect from April 1, 2019 to March 31,
2024.“
10) To consider and, if thought fit, to pass as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT pursuant to the provisions of
Sections 149, 152 and any other applicable provisions
of the Companies Act, 2013 and the rules made
thereunder read with Schedule IV to the Companies
Act, 2013 (including any statutory modifications or
re-enactment(s) thereof for the time being in force)
and other applicable provisions of the Securities and
Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and
based on the recommendation of the Nomination
and Remuneration Committee and approval of
the Board of Directors, Mr. Adil Zainulbhai (DIN:
06646490) who was appointed as an Independent
Director of the Company for a term upto May 29,
2019 by the shareholders and in respect of whom
the Company has received a notice in writing from
the Director under Section 160 of the Companies
Act, 2013 proposing his candidature for the office
of a Director be and is hereby re-appointed as an
Independent Director of the Company for a term of
five years with effect from May 29, 2019 to May 28,
2024“
“RESOLVED THAT the scale of salary per month
of Mr. S.N Subrahmanyan (DIN: 02255382), Chief
Executive Officer and Managing Director of the
Company approved by the Members at the Annual
General Meeting held on August 22, 2017 be
substituted with the following scale, with effect from
April 1, 2020 and all other terms and conditions of
appointment shall remain the same–
Salary: R 23,20,000 - R 1,60,000 - R 24,80,000 with
an annual increment due on April 1 every year.“
12) To consider and, if thought fit, to pass as an
ORDINARY RESOLUTION the following:
“RESOLVED THAT the scale of salary per month
of Mr. R. Shankar Raman (DIN: 00019798), Chief
Financial Officer and Whole-time Director of the
Company approved by the Members at the Annual
General Meeting held on August 26, 2016 be
substituted with the following scale with effect from
April 1, 2020 and all other terms and conditions of
appointment shall remain the same–
Salary: R 16,25,000 - R 1,00,000 - R 17,25,000 with
an annual increment due on April 1 every year.“
13) To consider and, if thought fit, to pass as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT pursuant to the provisions of
Section 4, 13 and other applicable provisions, if any,
of the Companies Act, 2013 and the Companies
(Incorporation) Rules, 2014, (including any statutory
modification or re-enactment(s) thereof for the
time being in force) as amended from time to time,
and subject to the approval of the Registrar of
Companies, Maharashtra, Mumbai (“ROC”) and/
or of any other statutory or regulatory authority,
as may be necessary, Clause III (Objects Clause) of
the Memorandum of Association of the Company,
be and is hereby altered by inserting the following
Clause (ee) after the existing Clause III(e)
‘(ee) To carry on business of, designing, engineering,
developing, converting, manufacturing,
integrating, constructing, importing, exporting,
trading, acting as agents / dealers, selling or
otherwise disposing of, distributing, installing,
commissioning, Through Life Support, of all
kinds of defence, space and aerospace platforms,
48
embedded software solutions, systems, arms,
sensors, goods, equipment, sub-systems, parts
and components, consumables thereof, and / or
infrastructure in connection therewith including
upgradation, refit, retrofitment, refurbishment
and renovation thereof and any other hardware
or software in connection with the above;
providing all ancillary and / or related life cycle
services in connection therewith, including
but not limited to, supervision, operation &
maintenance, warranty services; to carry out
all activities for or in connection therewith or
related thereto;
RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby severally authorized
to do all such acts, deeds, matters and things as
may be necessary and incidental for giving effect to
this Resolution, including agreeing to any change to
the aforesaid Clause III(ee) of the Memorandum of
Association of the Company, as may be required by
the ROC and/or any statutory/regulatory authority.”
14) To consider and, if thought fit, to pass as a SPECIAL
RESOLUTION the following:
“RESOLVED THAT in supersession of the resolution
no. 11 passed by the Members at the 72nd Annual
General Meeting of the Company held on August
22, 2017 in this regard and in accordance with
the provisions of Sections 41, 42, 62 and other
applicable provisions, if any of the Companies
Act, 2013 (including any statutory modifications
or re-enactments thereof for the time being in
force) as amended from time to time, Foreign
Exchange Management Act, 1999, Securities
and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2018
(‘SEBI Regulations’), Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, enabling provisions
in the Memorandum and Articles of Association
of the Company as also provisions of any other
applicable laws, rules and regulations (including
any amendments thereto or re-enactment(s)
thereof for the time being in force) and subject
to such approvals, consents, permissions and
sanctions of the Securities and Exchange Board of
India (SEBI), Government of India (GOI), Reserve
Bank of India (RBI) and all other appropriate and/
or concerned authorities, or bodies and subject
to such conditions and modifications, as may be
prescribed by any of them in granting such approvals,
consents, permissions and sanctions which may
be agreed to by the Board of Directors of the
Company (‘Board’) (which term shall be deemed to
include any Committee which the Board may have
constituted or hereafter constitute for the time being
exercising the powers conferred on the Board by this
resolution), the Board be and is hereby authorized
to offer, issue and allot in one or more tranches,
to Investors whether Indian or Foreign, including
Foreign Institutions, Foreign Institutional Investors,
Foreign Portfolio Investors, Foreign Venture Capital
Fund Investors, Venture Capital Funds, Non-resident
Indians, Corporate Bodies, Mutual Funds, Banks,
Insurance Companies, Pension Funds, Individuals or
otherwise, whether shareholders of the Company or
not, through an issue of convertible bonds and/or
equity shares through depository receipts, including
by way of Qualified Institutions Placement (‘QIP’),
to Qualified Institutional Buyers (‘QIB’) in terms of
Chapter VI of the SEBI Regulations, through one
or more placements of Equity Shares (hereinafter
collectively referred to as “Securities”), whether by
way of private placement or otherwise as the Board
may determine, where necessary in consultation
with the Lead Managers, Underwriters, Merchant
Bankers, Guarantors, Financial and/or Legal Advisors,
Rating Agencies/ Advisors, Depositories, Custodians,
Principal Paying/Transfer/Conversion agents, Listing
agents, Registrars, Trustees, Auditors, Stabilizing
agents and all other Agencies/Advisors so that the
total amount raised through issue of the Securities
shall not exceed INR 4000 Crore (Rupees Four
Thousand Crore only) or US $600 Mn (US Dollars Six
Hundred Million), if higher.
RESOLVED FURTHER THAT for the purpose of
giving effect to the above, the Board be and is hereby
also authorised to determine the form, terms and
timing of the issue(s), including the class of investors
to whom the Securities are to be allotted, number of
Securities to be allotted in each tranche, issue price,
face value, premium amount in issue/ conversion/
exercise/ redemption, rate of interest, redemption
period, listings on one or more stock exchanges
in India or abroad as the Board may in its absolute
discretion deems fit and to make and accept any
modifications in the proposals as may be required by
the authorities involved in such issue(s) in India and/
or abroad, to do all acts, deeds, matters and things
and to settle any questions or difficulties that may
arise in regard to the issue(s).
49
NOTICE ANNUAL REPORT 2018-19
RESOLVED FURTHER THAT in case of QIP issue it
shall be completed within 12 months from the date
of passing of this resolution.
RESOLVED FURTHER THAT in case of QIP issue the
relevant date for determination of the floor price of
the Equity Shares to be issued shall be -
i)
ii)
in case of allotment of equity shares, the date of
meeting in which the Board decides to open the
proposed issue
in case of allotment of eligible convertible
securities, either the date of the meeting in
which the Board decides to open the issue of
such convertible securities or the date on which
the holders of such convertible securities become
entitled to apply for the equity shares, as may be
determined by the Board.
RESOLVED FURTHER THAT the Equity Shares so
issued shall rank pari passu with the existing Equity
Shares of the Company in all respects.
RESOLVED FURTHER THAT the Equity Shares to be
offered and allotted shall be in dematerialized form.
RESOLVED FURTHER THAT for the purpose of
giving effect to any offer, issue or allotment of
Securities, the Board, be and is hereby authorised on
behalf of the Company to do all such acts, deeds,
matters and things as it may, in absolute discretion,
deem necessary or desirable for such purpose,
including without limitation, the determination of
the terms thereof, for entering into arrangements
for managing, underwriting, marketing, listing and
trading, to issue placement documents and to sign all
deeds, documents and writings and to pay any fees,
commissions, remuneration, expenses relating thereto
and with power on behalf of the Company to settle
all questions, difficulties or doubts that may arise in
regard to such offer(s) or issue(s) or allotment(s) as it
may, in its absolute discretion, deems fit.
RESOLVED FURTHER THAT the Board be and is
hereby authorised to appoint Lead Manager(s) in
offerings of Securities and to remunerate them by
way of commission, brokerage, fees or the like and
also to enter into and execute all such arrangements,
agreements, memoranda, documents, etc. with Lead
Manager(s) and to seek listing of such securities.
RESOLVED FURTHER THAT the Company do apply
for listing of the new Equity Shares as may be issued
with the BSE Limited and National Stock Exchange of
India Limited or any other Stock Exchange(s).
RESOLVED FURTHER THAT the Company do apply
to the National Securities Depository Limited and/
or Central Depository Services (India) Limited for
admission of the Securities.
RESOLVED FURTHER THAT the Board be and is
hereby authorised to create necessary charge on
such of the assets and properties (whether present or
future) of the Company in respect of Securities and
to approve, accept, finalize and execute facilities,
sanctions, undertakings, agreements, promissory
notes, credit limits and any of the documents and
papers in connection with the issue of Securities.
RESOLVED FURTHER THAT the Board be and is
hereby authorised to delegate all or any of the
powers in such manner as they may deem fit.”
15) 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 the provisions of
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 13.00 lakhs
plus applicable taxes and out of pocket expenses
at actuals for travelling and boarding/lodging for
the financial year ending March 31, 2020 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 2019-20.”
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
N. HARIHARAN
COMPANY SECRETARY
M.NO – A3471
Mumbai, May 10, 2019
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 15 set out
above is annexed hereto.
50
[b] A MEMBER ENTITLED TO ATTEND AND VOTE IS
[g] All documents referred to in the accompanying
ENTITLED TO APPOINT A PROXY, TO ATTEND AND
VOTE INSTEAD OF HIMSELF, AND THAT A PROXY
NEED NOT BE A MEMBER. Pursuant to Section
105 of the Companies Act, 2013 and Rule 19 of
the Companies (Management & Administration)
Rules, 2014, a person can act as a proxy on behalf
of members not exceeding 50 and holding in the
aggregate not more than 10% of the total share
capital of the Company carrying voting rights. In case
a proxy is proposed to be appointed by a member
holding more than 10% of the total share capital of
the Company carrying voting rights, then such proxy
shall not act as a proxy for any other 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, July 30, 2019.
[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 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, July 26,
2019 to Thursday, August 1, 2019 (both days
inclusive).
[e] Members are requested to furnish bank details, email
address, change of address etc. to Karvy Fintech
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, July 25, 2019, 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.
Notice and the Explanatory Statement are open for
inspection at the Registered Office of the Company
on all working days, except Saturdays, between
11.00 a.m. and 1.00 p.m. up to the date of the
Annual General Meeting.
[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
83
84
85
86
87
88
89
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
23.08.2018
31.03.2018
28.09.2025
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 email 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 2018-19 transferred to the IEPF
Authority all shares in respect of which dividend has
remained unpaid or unclaimed for seven consecutive
years as on the due date of transfer i.e November 1,
2018. 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 website: www.iepf.gov.in.
51
NOTICE ANNUAL REPORT 2018-19
[l] SEBI has decided that securities of listed companies
can be transferred only in dematerialized form with
effect from April 1, 2019. In view of the above and
to avail various benefits of dematerlisation, members
are advised to dematerialize shares that are held by
them in physical form.
[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 Companies Act, 2013, read
with Rule 20 of the Companies (Management and
Administration) Rules, 2014, Standard 2 of the
Secretarial Standards on General Meetings and
Regulation 44 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the
Company is pleased to offer the facility of voting
through electronic means, as an alternate, to all
its Members to enable them to cast their votes
electronically. The facility of casting the votes by the
members using an electronic voting system from a
place other than venue of the AGM (remote e-voting)
will be provided by Karvy Fintech 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, July 25, 2019 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.
The members who 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,
July 29, 2019 at 9.00 a.m. and ends on Wednesday,
July 31, 2019 at 5.00 p.m. During this period
members of the Company holding shares either in
physical or dematerialised form, as on the cut-off
date of Thursday, July 25, 2019 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
Thursday, July 25, 2019, i.e. the commencement
of the book closure date are entitled to vote on the
Resolutions set forth in this Notice. Eligible members
who have acquired shares after the despatch of the
Annual Report and holding shares as on the cut-off
date i.e Thursday, July 25, 2019 may approach the
Company for issuance of the User ID and Password
for exercising their right to vote by electronic means.
Members who are already registered with 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,
(Membership No. 4206, COP No. 1774) or failing him
Mrs. Aparna Gadgil, Practicing Company Secretary,
(Membership No. 14713, COP No. 8430), to act as
the Scrutinizer for conducting the voting and remote
e-voting process in a fair and transparent manner.
Members are requested to follow the instructions
below to cast their vote through e-voting:
A.
In case a Member receives an e-mail from
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
52
shall comprise of minimum 8 characters
with at least one upper case (A-Z), one
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 https://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) above in (A), 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 Regulation 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 has cast his vote by
remote e-voting then he will not be eligible to
vote at the Meeting.
The Scrutinizer will submit his report to the
Chairman after completion of the scrutiny. The
result of the voting on the Resolutions at the
Meeting shall be announced by the Chairman or
any other person authorized by him immediately
after the results are declared.
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 https://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
53
NOTICE ANNUAL REPORT 2018-19
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 Online Query
Module to enable the Members to seek informations
/ clarifications pertaining to the Annual Report in
advance. Members can post their queries related
to the 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:
Pursuant to Regulation 44(6) of SEBI (Listing
Obligations and Disclosure Requirements)
Regulations, 2015, 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.
[q] KPRISM- Mobile service application by Karvy
Members are requested to note that Karvy has
launched a new mobile application - KPRISM and
website https://kprism.karvy.com for online service to
shareholders. Shareholders can download the mobile
application, register themselves (onetime) for availing
54
host of services viz., consolidated portfolio view
serviced by Karvy, Dividends status and send requests
for change of Address, change / update Bank
Mandate. Shareholders can also download Annual
reports, standard forms and keep track of upcoming
General Meetings , IPO allotment status and dividend
disbursements.
The mobile application is available for download
from the Android Play Store. Shareholders can also
scan the below QR code or alternatively visit the
link https://kprism.karvy.com/app/ to download the
mobile application.
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 15 of the
accompanying Notice dated May 10, 2019.
Item No. 7:
Mr. M.M Chitale (DIN: 00101004) was appointed as
an Independent Director of the Company with effect
from April 1, 2014 to March 31, 2019. Pursuant to the
provisions of the Companies Act, 2013 and SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, (“LODR Regulations”) an Independent Director
shall hold office for a term upto five consecutive years
on the Board of the Company and shall be eligible for
re-appointment on passing of a Special Resolution by
the Company and disclosure of such appointment in the
Board Report.
The Board of Directors at its meeting held on March 5,
2019 on the recommendation of the Nomination and
Remuneration Committee approved the re-appointment
of Mr. Chitale as Independent Director of the Company
for a second and final term of five years with effect from
April 1, 2019 to March 31, 2024 based on his skills,
experience, knowledge and report of his performance
evaluation. His re-appointment is subject to the approval
of the shareholders at this Annual General Meeting by
way of a Special Resolution.
The Company has received a notice in writing from the
Director under Section 160 of the Companies Act, 2013,
proposing his candidature for the office of Independent
Director of the Company.
In the opinion of the Board, Mr. Chitale fulfils the
conditions specified in the Companies Act, 2013
and rules made thereunder and LODR Regulations
for his re-appointment as an Independent Director of
the Company and is independent of the management.
A copy of the letter for appointment of Mr. Chitale
as an Independent Director setting out the terms and
conditions would be available for inspection without
any fee by the Members at the Registered Office of the
Company.
The Board considers that his association would be
of immense benefit to the Company as it has been
beneficial in the past and it is desirable to avail services
of Mr. Chitale as an Independent Director. Accordingly,
the Board recommends the resolution in relation to the
re-appointment of Mr. Chitale as an Independent Director,
for the approval by the shareholders of the Company.
Except Mr. M.M Chitale, being the appointee, none of the
Directors and Key Managerial Personnel of the Company
and their relatives are concerned or interested, in the
resolution set out at Item No. 7.
Item No. 8:
Mr. M. Damodaran (DIN: 02106990) was appointed as
an Independent Director of the Company with effect
from April 1, 2014 to March 31, 2019. Pursuant to the
provisions of the Companies Act, 2013 and SEBI(Listing
Obligations and Disclosure Requirements) Regulations,
2015, (“LODR Regulations”) an Independent Director
shall hold office for a term upto five consecutive years
on the Board of the Company and shall be eligible for
re-appointment on passing of a Special Resolution by
the Company and disclosure of such appointment in the
Board Report.
The Board of Directors at its meeting held on March 5,
2019 on the recommendation of the Nomination and
Remuneration Committee approved the re-appointment
of Mr. Damodaran as Independent Director of the
Company for a second and final term of five years with
effect from April 1, 2019 to March 31, 2024 based
on his skills, experience, knowledge and report of his
performance evaluation. His re-appointment is subject to
the approval of the shareholders at this Annual General
Meeting by way of a Special Resolution.
The Company has received a notice in writing from the
Director under Section 160 of the Companies Act, 2013,
proposing his candidature for the office of Independent
Director of the Company.
In the opinion of the Board, Mr. Damodaran fulfils
the conditions specified in the Companies Act, 2013
and rules made thereunder and LODR Regulations for
his re-appointment as an Independent Director of the
Company and is independent of the management. A copy
of the letter for appointment of Mr. Damodaran as an
Independent Director setting out the terms and conditions
would be available for inspection without any fee by the
members at the Registered Office of the Company.
Additionally, 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. Damodaran, aged 72 years, will
complete 75 years during his current proposed term.
The Board considers that his association would be of
immense benefit to the Company as it has been beneficial
in the past and it is desirable to avail services of Mr.
Damodaran as an Independent Director. Accordingly,
the Board recommends the resolution in relation to the
re-appointment of Mr. Damodaran as an Independent
Director, for the approval by the shareholders of the
Company.
Except Mr. M. Damodaran, being the appointee, none
of the Directors and Key Managerial Personnel of the
Company and their relatives are concerned or interested,
in the resolution set out at Item No. 8.
Item No. 9:
Mr. Vikram Singh Mehta (DIN: 00041197) was appointed
as an Independent Director of the Company with effect
from April 1, 2014 to March 31, 2019. Pursuant to the
provisions of the Companies Act, 2013 and SEBI(Listing
Obligations and Disclosure Requirements) Regulations,
2015, (“LODR Regulations”) an Independent Director
shall hold office for a term upto five consecutive years
on the Board of the Company and shall be eligible for
re-appointment on passing of a Special Resolution by
the Company and disclosure of such appointment in the
Board Report.
The Board of Directors at its meeting held on March 5,
2019 on the recommendation of the Nomination and
Remuneration Committee approved the re-appointment
of Mr. Mehta as Independent Director of the Company
for a second and final term of five years with effect from
April 1, 2019 to March 31, 2024 based on his skills,
experience, knowledge and report of his performance
evaluation. His re-appointment is subject to the approval
55
NOTICE ANNUAL REPORT 2018-19
of the shareholders at this Annual General Meeting by
way of a Special Resolution.
The Company has received a notice in writing from the
Director under Section 160 of the Companies Act, 2013,
proposing his candidature for the office of Independent
Director of the Company.
In the opinion of the Board, Mr. Mehta fulfils the
conditions specified in the Companies Act, 2013 and
rules made thereunder and LODR Regulations for his
re-appointment as an Independent Director of the
Company and is independent of the management. A
copy of the letter for appointment of Mr. Mehta as an
Independent Director setting out the terms and conditions
would be available for inspection without any fee by the
members at the Registered Office of the Company.
The Board considers that his association would be
of immense benefit to the Company as it has been
beneficial in the past and it is desirable to avail services
of Mr. Mehta as an Independent Director. Accordingly,
the Board recommends the resolution in relation to the
re-appointment of Mr. Mehta as an Independent Director,
for the approval by the shareholders of the Company.
Except Mr. Vikram Singh Mehta, being the appointee,
none of the Directors and Key Managerial Personnel
of the Company and their relatives are concerned or
interested, in the resolution set out at Item No. 9.
Item No. 10:
Mr. Adil Zainulbhai (DIN: 06646490) was appointed as
an Independent Director of the Company with effect
from May 30, 2014 to May 29, 2019. Pursuant to the
provisions of the Companies Act, 2013 and SEBI(Listing
Obligations and Disclosure Requirements) Regulations,
2015, (“LODR Regulations”) an Independent Director
shall hold office for a term upto five consecutive years
on the Board of the Company and shall be eligible for
re-appointment on passing of a Special Resolution by
the Company and disclosure of such appointment in the
Board Report.
The Board of Directors at its meeting held on March 5,
2019 on the recommendation of the Nomination and
Remuneration Committee approved the re-appointment
of Mr. Zainulbhai as Independent Director of the
Company for a second and final term of five years
with effect from May 29, 2019 to May 28, 2024 based
on his skills, experience, knowledge and report of his
performance evaluation. His re-appointment is subject to
the approval of the shareholders at this Annual General
Meeting by way of a Special Resolution.
The Company has received a notice in writing from the
Director under Section 160 of the Companies Act, 2013,
proposing his candidature for the office of Independent
Director of the Company.
In the opinion of the Board, Mr. Zainulbhai fulfils the
conditions specified in the Companies Act, 2013 and
rules made thereunder and LODR Regulations for his
re-appointment as an Independent Director of the
Company and is independent of the management. A
copy of the letter for appointment of Mr. Zainulbhai as an
Independent Director setting out the terms and conditions
would be available for inspection without any fee by the
members at the Registered Office of the Company.
The Board considers that his association would be of
immense benefit to the Company as it has been beneficial
in the past and it is desirable to avail services of Mr.
Zainulbhai as an Independent Director. Accordingly,
the Board recommends the resolution in relation to the
re-appointment of Mr. Zainulbhai as an Independent
Director, for the approval by the shareholders of the
Company.
Except Mr. Adil Zainulbhai, being the appointee, none
of the Directors and Key Managerial Personnel of the
Company and their relatives are concerned or interested,
in the resolution set out at Item No. 10.
Item No. 11:
At the Annual General Meeting of the Company held
on August 22, 2017, the shareholders had approved
payment of remuneration to Mr. S. N. Subrahmanyan
(DIN: 02255382) as the Chief Executive Officer and
Managing Director of the Company within the limits
and subject to the terms and conditions set out in
the resolution passed at that meeting read with the
explanatory statement. The resolution had approved
the following scale of salary payable to the Mr. S. N.
Subrahmanyan –
R 18,40,000 (Rupees Eighteen Lakh Forty Thousand only)
per month in the scale of R 12,00,000 – R 1,60,000 –
R 21,60,000 with annual increment due on April 1 every
year.
Mr. S. N. Subrahmanyan’s salary has reached the
maximum limit of salary as per the above scale w.e.f April
1, 2019. Hence, it is proposed that the existing scale of
salary payable to Mr. S. N. Subrahmanyan be revised with
effect from April 1, 2020 as under –
R 23,20,000 in the scale of R 23,20,000 – R 1,60,000
– R 24,80,000 with an annual increment due on April 1
every year.
56
Changes in the business environment particularly greater
integration of the Indian economy with the global
markets and easier migration of managerial resources
from one part of the world to other has necessitated that
the Company follows a contemporary and competent
remuneration policy in order to retain and reward talent
in line with the market. It is, therefore, necessary to
do periodic revisions in the ceilings that have been
contemplated in absolute sums of money.
The enhanced limits of salary will, however, continue
to be subject to the condition that the total managerial
remuneration payable shall not exceed the overall limit
of 10% of the net profits of the Company as approved
by the shareholders at their Meeting held on August 26,
2016.
The Nomination and Remuneration Committee and the
Board of Directors of the Company at their respective
Meetings held on January 25, 2019 recommended the
change in scale to the shareholders for approval. A copy
of the draft agreement proposed to be entered into with
Mr. S. N Subrahmanyan would be available for inspection
without any fee by the members at the Registered Office
of the Company.
The limits stipulated herein above are the maximum
limits and the Board may, on the recommendation of
the Nomination and Remuneration Committee, pay to
Mr. S. N. Subrahmanyan appropriate remuneration and
revise the same from time to time within the maximum
limits stipulated by this resolution.
The Board recommends this Resolution for approval of the
Shareholders.
Except Mr. S. N. Subrahmanyan, none of the Directors
and/or Key Managerial Personnel of the Company and/or
their relatives are concerned or interested in resolution
no. 11.
Item No 12:
At the Annual General Meeting of the Company held
on August 26, 2016, the shareholders had approved
payment of remuneration to Mr. R. Shankar Raman (DIN:
00019798) as the Whole-time Director and Chief Financial
Officer of the Company within the limits and subject to
the terms and conditions set out in the resolution passed
at that meeting read with the explanatory statement.
The resolution had approved the following scale of salary
payable to the Mr. R. Shankar Raman –
R 11,25,000 (Rupees Eleven Lakh Twenty Five Thousand
only) per month in the scale of R 6,50,000 – R 75,000
– R 10,25,000 – R 1,00,000 – R 15,25,000 with annual
increment due on April 1 every year.’
Mr. R. Shankar Raman’s salary has reached the maximum
limit of salary as per the above scale w.e.f April 1, 2019.
Hence, it is proposed that the existing scale of salary
payable to Mr. R. Shankar Raman be revised upwards with
effect from April 1, 2020 as under –
R 16,25,000 in the scale of R 16,25,000 – R 1,00,000
– R 17,25,000 with an annual increment due on April 1
every year.
Changes in the business environment particularly greater
integration of the Indian economy with the global
markets and easier migration of managerial resources
from one part of the world to other has necessitated that
the Company follows a contemporary and competent
remuneration policy in order to retain and reward talent
in line with the market. It is, therefore, necessary to
do periodic revisions in the ceilings that have been
contemplated in absolute sums of money.
The enhanced limits of salary will, however, continue
to be subject to the condition that the total managerial
remuneration payable shall not exceed the overall limit
of 10% of the net profits of the Company as approved
by the shareholders at their Meeting held on August 26,
2016.
The Nomination and Remuneration Committee and the
Board of Directors of the Company at their respective
Meetings held on January 25, 2019 recommended the
change in scale to the shareholders for approval. A copy
of the draft agreement proposed to be entered into with
Mr. R. Shankar Raman would be available for inspection
without any fee by the members at the Registered Office
of the Company.
The limits stipulated herein above are the maximum
limits and the Board may, on the recommendation of
the Nomination and Remuneration Committee, pay to
Mr. R. Shankar Raman appropriate remuneration and
revise the same from time to time within the maximum
limits stipulated by this resolution.
The Board recommends this Resolution for approval of the
Shareholders.
Except Mr. R. Shankar Raman, none of the Directors
and /or Key Managerial Personnel of the Company and /
or their relatives are concerned or interested in resolution
no. 12.
Item No. 13:
As the shareholders of the Company are aware, the
Company has been engaged in the manufacture
57
NOTICE ANNUAL REPORT 2018-19
and supply of defence equipment and systems and
aerospace systems and sub-systems. The Company
provides indigenous, design-to-delivery backed by
throughlifesupport solutions across the defence spectrum
including defence platforms & systems, equipment,
sensors & electronics as well as specialised turnkey
defence construction solutions, structures, smart
infrastructure and modernisation of existing facilities.
Defence manufacturing is covered under licensing under
the Industrial Development and Regulation Act, 1951
(‘IDRA/Act’), mentioned at Sr. No. 37 of the Schedule I
of the Act and also included at Sr. No. 13 of Schedule
II of Notification S.O. 477 (E) dated 25th July 1991 and
further amended vide Notification S.O.11 (E) dated 3rd
January 2002. Over the years, from 2002 when Defence
production was opened up for the Private Sector, the
Company obtained various industrial licences under the
Act for the manufacture of defence goods.
Thereafter vide Notification S.O. 1636 (E) issued by
Ministry of Home Affairs in May 2017, licenses for some
of the above segments which were earlier issued under
IDRA were required to be brought under the Arms Act
1959. The process / procedure for the same was awaited.
The Government of India issued the Notification under
the Arms Act, 1959 vide S.O. No. 6203(E) dated 14th
December, 2018 as amended by vide S.O. No. 1501(E)
dated 2nd April, 2019, authorising Secretary, Department
for Industrial Policy and Promotion (DIPP) (Presently
Department of Promotion of Industry and Internal Trade),
in the Government of India in the Ministry of Commerce
& Industry, to issue licenses under the Arms Act, 1959
in addition to DIPP’s authority to issue licenses under the
IDRA.
The Company’s defence activities primarily fall within
the scope of mechanical and electrical engineering
and, in fact, prior to the internal restructuring of the
Company’s business activities, were carried on as
part of the Company’s ‘heavy engineering’ business.
The Company has the specific authority to undertake
engineering related activities in terms of Clause III(b) of its
Memorandum of Association which reads as follows:
“To carry on business as civil, mechanical, electrical,
chemical and agricultural engineers, as manufacturers,
and as importers and exporters, commission agents (and
merchants and as agents for ships and ship-owners and
as agents) for foreign manufacturers and merchants”
The Company is also authorised to undertake business
as manufacturers in respect of goods, merchandise and
services of all kinds and as an export house in terms of
Clause III(k)(10) of its Memorandum of Association which
reads as follows:
“To carry on business as exporters, dealers, manufacturers
or agents in respect of goods, merchandise and services
of all kinds and as an export house.”
The Company’s Memorandum of Association also enables
it to “carry on any other trade or business whatsoever as
can in the opinion of the Company be advantageously
or conveniently carried on by the Company by way of
extension or in connection with any of the Company’s
business or as calculated directly or indirectly to develop
any branch of the Company’s business or to increase
the value of or turn to account any of the Company’s
assets, property or rights” (Clause III(n)) of the Company’s
Memorandum of Association.
Post December, 2018 Notification as amended by the
notification dated 02nd April, 2019, multiple of the
Company’s licenses for the defence business now come
under the purview of the Arms Act, 1959 while the
issuing authority remains under the Department for
Promotion of Industry and Internal Trade (erstwhile DIPP).
Ministry of Commerce & Industry has therefore advised
the Company to include a specific clause with respect to
defence goods in the Memorandum of Association, which
is a requirement under the Arms Act, 1959 and its Rules.
Whilst the Company has adequate authority under its
existing Memorandum of Association to manufacture and
supply defence equipment, which is also evidenced by
the fact that the Company has, in the past, been granted
industrial licences under the IDRA for the manufacture of
defence products, the Board of Directors is of the opinion
that it would be beneficial to include a specific object
clause in the Company’s Memorandum of Association
which expressly authorises the Company to undertake
defence-related activities.
Defence is a focussed growth area of business for
the Company and a separate reporting segment and
therefore it is appropriate to amend the Memorandum
of Association to include a specific clause with respect
to defence goods of all types in the Object Clause of the
Company’s Memorandum of Association.
A draft copy of the Memorandum of Association will be
available for inspection at the Registered Office of the
Company.
The Board recommends this resolution for the approval of
the shareholders.
58
None of the Directors and /or Key Managerial Personnel
of the Company and /or their relatives are concerned or
interested in resolution no. 13.
Item No. 14:
The Company requires adequate capital to meet the
needs of growing business. While it is expected that the
internal generation of funds would partially finance the
need for capital, fund raising would be another source of
funds and hence it is thought prudent for the Company
to have enabling approvals to raise a part of the funding
requirements for the said purposes as well as for such
other corporate purposes as may be permitted under
applicable laws through the issue of appropriate securities
as defined in the resolution, in Indian or international
markets.
The fund raising may be through a mix of equity/ equity-
linked instruments, as may be appropriate. Members
approval is sought for the issue of equity shares, securities
linked to or convertible into Equity Shares or depository
receipts of the Company. SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 also provide
that the Company shall, in the first instance, offer all
Securities for subscription pro-rata to the Shareholders
unless the Shareholders in a general meeting decide
otherwise. Members approval is sought for issuing any
such instrument as the Company may deem appropriate
to parties other than the existing shareholders. Whilst no
specific instrument has been identified at this stage, in the
event the Company issues any equity linked instrument,
the issue will be structured in a manner such that the
additional share capital that may be issued would not be
more than 5% of the paid-up capital of the Company (as
at the date when the Board recommended passing of the
Special Resolution). The equity shares, if any, allotted on
issue, conversion of securities shall rank in all respects pari
passu with the existing Equity Shares of the Company.
The Company may also opt for issue of securities through
Qualified Institutions Placement (QIP). A QIP of the shares
of the Company would be less time consuming and more
economical than other modes of raising capital.
Accordingly, the Company may issue securities by way
of a QIP in terms of Chapter VI of the Securities and
Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018 (‘SEBI Regulations’).
These securities will be allotted only to Qualified
Institutional Buyers (QIBs) as per the SEBI Regulations and
there will be no issue to retail individual investors and
existing retail shareholders. The resolution proposed is an
enabling resolution and the exact price, proportion and
timing of the issue of the securities will be decided by the
Board based on an analysis of the specific requirements
after necessary consultations. Therefore, the proposal
seeks to confer upon the Board the absolute discretion to
determine the terms of issue in consultation with the Lead
Managers to the Issue.
As per Chapter VI of the SEBI Regulations, an issue of
securities on QIP basis shall be made at a price not less
than the average of the weekly high and low of the
closing prices of the related shares quoted on the stock
exchange during the two weeks preceding the “relevant
date.” The Board may, at its absolute discretion, issue
equity shares at a discount of not more than five percent
or such other discount as may be permitted under
applicable regulations to the ‘floor price’ as determined
in terms of the SEBI Regulations, subject to Section 53 of
the Companies Act, 2013.
As the pricing of the offer cannot be decided except
at a later stage, it is not possible to state the price of
shares to be issued. However, the same would be in
accordance with the provisions of the SEBI Regulations,
the Companies Act, 2013, or any other guidelines /
regulations / consents as may be applicable or required.
In case of issue of convertible bonds and/or equity shares
through depository receipts the price will be determined
on the basis of the current market price and other
relevant guidelines.
The “relevant date” for the above purpose, shall be -
i)
ii)
in case of allotment of equity shares, the date of
meeting in which the Board decides to open the
proposed issue
in case of allotment of eligible convertible securities,
either the date of the meeting in which the Board
decides to open the issue of such convertible
securities or the date on which the holders of such
convertible securities become entitled to apply for the
equity shares, as may be determined by the Board.
The Stock Exchange for the same purpose is BSE Limited /
National Stock Exchange of India Limited.
The Shareholders through a resolution passed at their
meeting held on August 22, 2017, had approved issue
of Securities for an aggregate sum of up to US$ 600
Million (or its rupee equivalent) or INR 4000 Crore, if
higher. The Company has not raised any funds under
the said approval. However, Shareholders resolution for
QIP issuance is valid for a period of 12 months from
the date of passing of the resolution. Accordingly, the
59
NOTICE ANNUAL REPORT 2018-19
Shareholders approval is sought for renewal of the
approval.
The Board recommends this Resolution for approval of the
Shareholders.
None of the Directors and / or Key Managerial Personnel
of the Company and / or their relatives are concerned or
interested, in the resolution set out at Item No. 14, except
to the extent of their shareholding in the Company.
Item No. 15:
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 2019-20, at a
remuneration of R 13.00 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 Board recommends 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. 15.
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED
N. HARIHARAN
COMPANY SECRETARY
M.NO – A3471
Mumbai, May 10, 2019
The route map for the venue of the Annual General Meeting of the Company is given on page 46 of this Annual Report 2018-19
60
(ANNEXURE TO NOTICE DATED MAY 10, 2019)
DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT AT THE FORTHCOMING
ANNUAL GENERAL MEETING
[Pursuant to Regulation 36(3) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015
and Secretarial Standard 2 on General Meetings]
Mr. M. V. Satish
Mr. Shailendra Roy
Mr. R. Shankar Raman
Mr. J. D. Patil
February 12, 1957
January 29, 2016
September 18, 1952
March 9, 2012
December 20, 1958
October 1, 2011
December 16, 1954
July 1, 2017
BE (Civil)
Vast experience in Construction,
Business Development, Contracts
Management and Property
Development in India and GCC
region
1.
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)
Nil
Memberships/
Chairmanships
of committees
across all
companies
B. Tech
Vast experience in Thermal Power,
Heavy Engineering, Defence &
Aerospace Industry
B.Com, ACA and ACMA
Vast experience in the Finance,
Taxation, Risk Management, Legal
and Investor Relations
M. Tech (Mechanical Engineering)
Vast Experience in Defence and
Aerospace Industry
1.
2.
L&T Shipbuilding Limited
L&T MBDA Missile Systems
Limited
1.
2.
3.
4.
5.
6.
7.
8.
L&T Infrastructure Development
Projects Limited
L&T Finance Holdings Limited
L&T Investment Management
Limited
Larsen & Toubro Infotech
Limited
L&T Hydrocarbon Engineering
Limited
L&T Seawoods Limited
L&T Realty Limited
L&T Metro Rail (Hyderabad)
Limited
1.
L&T Power Development
Limited
L&T-Sargent & Lundy Limited
2.
3. Nabha Power Limited
4.
L&T-MHPS Boilers Private
Limited
L&T-MHPS Turbine Generators
Private Limited
5.
6. Raykal Aluminium Company
7.
Private Limited
L&T Special Steels and Heavy
Forgings Private Limited
L&T Howden Private Limited
L&T Power Limited
8.
9.
Member
Nomination and Remuneration
Committee
1.
L&T-MHPS Turbine Generators
Private Limited
L&T-MHPS Boilers Private
Limited
2.
Member
Audit Committee
1.
2.
L&T Finance Holdings Limited
L&T Infrastructure Development
Projects Limited
L&T Metro Rail (Hyderabad)
Limited
3.
3. Nabha Power Limited
4.
L&T Special Steels and Heavy
Forgings Private Limited
Stakeholders Relationship
Committee
Larsen & Toubro Limited
Corporate Social Responsibility
Committee
L&T Power Development Limited
Nomination & Remuneration
Committee
1. L&T Infrastructure Development
Projects Limited
Stakeholders Relationship
Committee
L&T Finance Holdings Limited
Corporate Social Responsibility
Committee
1. Larsen & Toubro Limited
2. L&T Seawoods Limited
3. L&T Investment Management
Limited
Nil
61
NOTICE ANNUAL REPORT 2018-19
Mr. M. V. Satish
Mr. Shailendra Roy
Mr. R. Shankar Raman
Mr. J. D. Patil
8 of 9
9 of 9
4. L&T Infrastructure Development
Projects Limited
5. L&T Realty Limited
6. L&T Finance Holdings Limited
Risk Management Committee
1.
L&T Finance Holdings Limited
2.
Larsen & Toubro Limited
9 of 9
9 of 9
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Nil
Nil
Nil
Nil
Mr. M. M. Chitale
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Adil Zainulbhai
November 16, 1949
July 6, 2004
May 4, 1947
October 22, 2012
October 30, 1952
October 22, 2012
December 18, 1953
May 30, 2014
Name of the
Director
Number of
Meetings
attended
during the
year
Shareholding
of Non-
Executive
Directors
Relationships
between
directors
inter-se
Name of the
Director
Date of Birth
Date of
Appointment
on the Board
Qualifications
B.Com, F.C.A.
IAS, B.A. (Eco.) and LLB
He has held a number of important
positions in both the Central
and State Governments and in
India’s Financial Sector. His areas
of expertise include Financial
Management, Securities Markets,
Corporate Governance, Public
Administration and Leadership.
He is presently an independent
consultant and corporate advisor,
coach and mentor and sits on
the Boards of several reputed
companies.
1. Biocon Limited
2. Crisil Limited
3. Hero Motocorp Limited
Tech Mahindra Limited
4.
5.
Interglobe Aviation Limited
6. Kerala Infrastructure Fund
Management Limited
Expertise
Vast experience in the field of
Finance and Accounts
1.
Larsen & Toubro Infotech
Limited
2. ASREC (India) Limited
3.
Essel Propack Limited
4. Atul Limited
5.
6. R R Kabel Limited
7. Bhageria Industries Limited
Lodha Developers Limited
Directorships
held in
other public
companies
including
private
companies
which are
subsidiaries
of public
companies
(excluding
foreign
companies)
62
Bachelor of Technology - B.Tech
(Mechanical) 1977, Masters in
Business Administration – Harvard
Business School
Management Consultancy,
Telecommunications, Infrastructure,
High Tech, Financial Services
Graduate in Mathematics; Masters
in Economics-Oxford University; IAS
He has served the Public Sector Oil
Company “Oil India Limited” as
its Advisor (Strategic Planning). He
had been a member of the National
Council of the Confederation of
Indian Industry (CII) and Chairman
of its Hydrocarbons committee.
1. Mahindra & Mahindra Limited
L&T Hydrocarbon Engineering
2.
Limited
1. Reliance Industries Limited
2. Network18 Media &
Investments Limited
3. Colgate-Palmolive (India)
Limited
4. Apollo Tyres Limited
5. HT Media Limited
6.
Jubiliant Foodworks Limited
3. Reliance Jio Infocomm Limited
4. Cipla Limited
5. Reliance Retail Ventures
Limited
TV18 Broadcast Limited
6.
7. Piramal Foundation
Name of the
Director
Memberships/
Chairmanships
of committees
across all
companies
Number of
Meetings
attended
during the
year
Shareholding
of Non-
Executive
Directors
Relationships
between
directors
inter-se
Mr. M. M. Chitale
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Adil Zainulbhai
Chairman
Audit Committee
1.
2.
3.
Larsen & Toubro Limited
Essel Propack Limited
Larsen & Toubro Infotech
Limited
4.
Lodha Developers Limited
Nomination and Remuneration
Committee
1. ASREC (India) Limited
2. Atul Limited
Member
Audit Committee
1. ASREC (India) Limited
2. Principal Asset Management
Co. Private Limited
3. R R Kabel Limited
4. Atul Limited
Nomination and Remuneration
Committee
1. Principal Asset Management
Company Private Limited
Essel propack Limited
Lodha Developers Limited
2.
3.
4. R R Kabel Limited
Corporate Social
Responsibility Committee
1. ASREC(India) Limited
2.
Essel Propack limited
Chairman
Audit Committee
1. CRISIL Limited
2.
Interglobe Aviation Limited
Stakeholders Relationship
Committee
1. CRISIL Limited
Tech Mahindra Limited
2.
Risk Management Committee
1. Hero MotoCorp Limited
Member
Audit Committee
1. Hero MotoCorp Limited
2.
Larsen & Toubro Limited
3. Biocon Limited
4.
Nomination and Remuneration
Committee
1. CRISIL Limited
2.
Interglobe Aviation Limited
Stakeholders Relationship
Committee
1. Hero MotoCorp Limited
Risk Management Committee
Tech Mahindra Limited
1.
Tech Mahindra Limited
Chariman
Corporate Social
Responsibility Committee
1.
Larsen & Toubro Limited
Stakeholders Relationship
Committee
1.
Member
Audit Committee
1. Colgate-Palmolive (India)
Jubiliant Foodworks Limited
Limited
Jubiliant Foodworks Limited
2.
3. HT Media Limited
Nomination and Remuneration
Committee
1. Colgate-Palmolive (India)
Limited
2. Mahindra and Mahindra
Limited
Jubiliant Foodworks Limited
3.
Corporate Social
Responsibility Committee
1. Mahindra and Mahindra
2.
Limited
L&T Hydrocarbon Engineering
Limited
Risk Management Committee
1. Colgate-Palmolive (India)
Limited
9 of 9
8 of 9
8 of 9
Chairman
Audit Committee
1. Network18 Media &
Investment Limited
2. Reliance Jio Infocomm Limited
3. Reliance Retail Ventures
Limited
TV18 Broadcast Limited
4.
Stakeholders Relationship
Committee
Network18 Media & Investment
Limited
Corporate Social
Responsibility Committee
1. Network18 Media &
Investment Limited
2. Reliance Jio Infocomm Limited
3. Reliance Retail Ventures
Limited
4.
TV18 Broadcast Limited
Nomination and Remuneration
Committee
1. Reliance Industries Limited
2. Cipla Limited
Risk Management Committee
Reliance Industries Limited
Member
Audit Committee
Reliance Industries Limited
Corporate Social
Responsibility Committee
Cipla Limited
Nomination and Remuneration
Committee
Larsen & Toubro Limited
Reliance Retail Ventures Limited
Reliance Jio Infocomm Limited
Network18 Media & Investment
Limited
TV18 Broadcast Limited
Risk Management Committee
Cipla Limited
9 of 9
2443 Shares
225 Shares
1327 Shares
150 shares
Nil
Nil
Nil
Nil
63
Board RepoRt ANNUAL RepoRt 2018-19
Board report
Dear Members,
the Directors have pleasure in presenting their 74th
Annual Report and Audited Financial Statements for the
year ended 31st March 2019.
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
2018-19
v crore
2017-18
v crore
9811.19
7881.31
1067.95
1049.46
8743.24
6831.85
474.93
430.53
9218.17
7262.38
2540.47
1875.08
profit for the period carried to
Balance Sheet
6677.70
5387.30
Add: Balance brought forward
from previous year
Less: Ind AS 115 transition
adjustment
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
arrangement
Balance available for disposal
(which the Directors
appropriate as follows)
Less: Debenture Redemption
Reserve
14250.01 11225.53
701.58
–
2596.78
2278.69
(20.36)
2.50
–
15.55
17608.99 14352.19
81.32
102.18
Balance to be carried forward
17527.67 14250.01
STaTE oF CoMPaNY aFFaIrS:
the total income for the financial year under review was
R 89,757 crore as against R 76,224 crore for the previous
financial year registering an increase of 18%. the
profit before tax from continuing operations including
exceptional items was R 9,218 crore for the financial year
under review as against R 7,262 crore for the previous
financial year, registering an increase of 27%. the profit
after tax from continuing operations including exceptional
items was R 6,678 crore for the financial year under
review as against R 5,387 crore for the previous financial
year, registering an increase of 24%.
aMoUNT To BE CarrIEd To GENEraL rESErVE:
the Company has not transferred any amount to the
general reserve during the current financial year.
dIVIdENd:
the Directors recommend payment of dividend of R 18
(900%) per equity share of R 2/- each on the share capital
amounting to R 2,759 crore (including DDt amounting to
R 234 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 provided as Annexure ‘G’ forming a part of this Board
Report and also uploaded on the Company’s website at
http://investors.larsentoubro.com/Listing-Compliance.aspx.
CaPITaL & FINaNCE:
During the year under review, the Company allotted
13,59,929 equity shares of R 2/- each upon exercise
of stock options by the eligible employees under the
employee Stock option Schemes.
the Company repaid long-term borrowings of USD
233 million (approx. R 1610 crore including secured
debentures of R 400 crore) during the year under
review on scheduled due dates. on the other hand, the
Company raised USD 100 million of foreign currency
borrowings and R 90 Crore of Rupee term Loan as fresh
unsecured long-term borrowings for meeting business
requirements and certain capital expenditure.
the Company has not defaulted on any of its dues to the
financial lenders.
the Company’s borrowings are rated by CRISIL and
ICRA. the details of the same are given on page 105 in
Annexure ‘B’ - Report on Corporate Governance forming
part of this Board Report and is also available on the
website of the Company.
64
dIVESTMENT oF ELECTrICaL & aUToMaTIoN
BUSINESS:
Accordingly, the Company decided not to proceed with
the buyback.
As disclosed in our previous Report, on 1st May 2018,
the Company had 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 Company has been informed by Schneider
electric that it has received a communication dated 18th
April 2019 from the Hon’ble Competition Commission
of India (CCI) approving the proposed combination
subject to the amendment filed by Schneider electric.
the Company is awaiting the detailed order of the CCI
and the timelines for divestment cannot be ascertained
as of now and are expected to be prolonged. In view of
the above, the e&A business is disclosed as a continuing
operation and has not been classified as discontinued
operation as on March 31, 2019.
BUYBaCK oF EQUITY SHarES:
the Company had proposed a buyback of up to
6,10,16,949 equity shares from its equity shareholders
as on the record date, being october 15, 2018, on a
proportionate basis by way of the tender offer route
through the stock exchange mechanism at a price of
R 1,475 per equity share, aggregating up to R 9,000
crore, in accordance with the applicable provisions of the
Companies Act, 2013 and the Securities and exchange
Board of India (Buy-Back of Securities) Regulations,
2018 (‘Buyback Regulations’ and such buy back herein
after referred to as ‘Buyback’), inter alia, considering the
debt-equity ratio requirement on the basis of standalone
financial statements, post buyback.
pursuant to the approval of the Buyback by the
shareholders of the Company, a draft letter of offer
(‘DLoF’) was submitted to the Securities and exchange
Board of India (‘SeBI’) in terms of Regulation 8(i)(a) of the
Buyback Regulations, for their comments.
By way of a letter dated 18th January 2019, SeBI advised
the Company not to proceed with the buyback offer
since the ratio of the aggregate of secured and unsecured
debts owed by the Company and its subsidiaries after
buyback (assuming full acceptance) would be more
than twice the paid-up capital and free reserves of the
Company based on consolidated financial statements of
the Company.
CaPITaL EXPENdITUrE:
As at 31st March 2019 the gross property, plant and
equipment, investment property and other intangible
assets including leased assets, stood at R 12,174.29 crore
and the net property, plant and equipment, investment
property and other intangible assets, including leased
assets, at R 7,934.32 crore. Capital expenditure during the
year amounted to R 1,571.41 crore.
dEPoSITS:
the Company has not accepted deposits from the public
falling within the ambit of Section 73 of the Companies
Act, 2013. the Company does not have any unclaimed
deposits as of date. All unclaimed deposits have been
transferred to Investor education & protection Fund.
pursuant to the Ministry of Corporate Affairs (MCA)
notification dated 22nd January 2019 amending the
Companies (Acceptance of Deposits) Rules, 2014,
the Company is required to file with the Registrar of
Companies (RoC) requisite returns in Form Dpt-3 for
outstanding receipt of money/loan by the Company,
which is not considered as deposits.
the Company would be complying with this requirement
within the prescribed timelines.
dEPoSITorY SYSTEM:
As the members are aware, the Company’s shares are
compulsorily tradable in electronic form. As on 31st
March 2019, 98.47% of the Company’s total paid
up capital representing 138,13,25,258 shares are in
dematerialized form.
SeBI (Listing obligations & Disclosure Requirements)
Regulations, 2015 mandate that the transfer, except
transmission and transposition, of securities shall be
carried out in dematerialized form only with effect from
1st April 2019. 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. the Company has, directly as
well as through its RtA, sent intimation to shareholders
who are holding shares in physical form, advising them to
get the shares dematerialized.
65
Board RepoRt ANNUAL RepoRt 2018-19
TraNSFEr To INVESTor EdUCaTIoN aNd
ProTECTIoN FUNd:
SUBSIdIarY / aSSoCIaTE / JoINT VENTUrE
CoMPaNIES:
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 the Registrar to locate the
shareholders who have not claimed their dues.
During the year, the Company has transferred a sum
of R 3,93,12,966 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 24,34,13,796 as on 31st March 2019.
the Company has also sent communications to members
whose dividends are unclaimed requesting them to
provide/update bank details with 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) of
the Companies Act, 2013 and Rule 6(3)(a) of the Investor
education and protection Fund Authority (Accounting,
Audit, transfer and Refund) Rules, 2016 (‘IepF Rules’),
the Company has transferred 3,634 equity shares of R 2
each (0.0003% of total number of shares) held by 257
shareholders (0.024 % 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 2010-11. Subsequent
to the transfer, the concerned shareholders can claim
the said shares along with the dividend(s) by making
an application to IepF Authority in accordance with
the procedure available on www.iepf.gov.in and on
submission of such documents as prescribed under the
IepF Rules.
the Company sends specific advance communication to
the concerned shareholders at their address registered
with the Company and also publishes notice in
newspapers providing the details of the shares due for
transfer so as to enable them to take 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.
During the year under review, the Company subscribed to
/ acquired equity / preference shares in various subsidiary
/ associate / joint venture companies. these subsidiaries
include companies in 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 Construction Machinery
Limited
L&t Metro Rail (Hyderabad)
Limited
L&t MBDA Missile Systems
Limited
L&t Uttaranchal Hydropower
Limited
Type of
Shares
equity
equity
equity
No. of shares
10,000
22,01,98,631
4,84,500
preference
24,94,00,000
the Company has entered into a share purchase
agreement dated 18th March 2019 with Mr. V. G.
Siddhartha, Coffee Day trading Limited and Coffee
Day enterprises Limited (‘Sellers’) for acquisition
of 3,33,60,229 equity shares of Mindtree Limited
aggregating to 20.32% of the paid-up equity share
capital of Mindtree Limited.
the Company proposed to acquire, subject to the
regulatory approvals, additional equity shares upto 15%
of the voting share capital from the stock exchanges and
make an open offer aggregating to 31% of the voting
share capital of Mindtree Limited, in accordance with the
requirements of SeBI (Substantial Acquisition of Shares
and takeover) Regulations, 2011. the Company has since
received the approval from Competition Commission
of India and Anti-trust authorities of US and Germany.
pursuant to the above, the Company has acquired
3,27,60,229 equity shares of Mindtree Limited from the
Sellers on 30th April 2019. Further, 98,29,859 equity
shares of Mindtree Limited have been acquired in the
open market upto 9th May 2019.
Subsequent to the year under review, the Company
has acquired entire stake held by tamil Nadu Industrial
Development Corporation (tIDCo) in L&t Shipbuilding
Limited on 10th April 2019. With this acquisition, L&t
Shipbuilding Limited is now a wholly owned subsidiary of
the Company.
66
B)
Equity shares sold / transferred / reduced during
the year:
Name of the Company
Marine Infrastructure Developer private
Limited (Note 1)
L&t technology Services Limited (Note 2)
Larsen & toubro Infotech Limited (Note 2)
L&t Seawoods Limited (Note 3)
Number of
shares
38,80,00,000
87,71,569
1,29,09,603
34,50,00,000
Note:
1. the Company has sold its entire stake in Marine
Infrastructure Developer private Limited, a subsidiary,
to Adani ports and Special economic Zone Ltd.
2. the Company has sold shares of L&t technology
Services Limited and Larsen & toubro Infotech Limited
in the open market towards meeting its mandatory
obligation to reduce promoter shareholding in these
companies. With the above sale, the minimum public
shareholding obligation in Larsen & toubro Infotech
Limited has been complied.
3. pursuant to an order dated 13th December 2018
passed by the National Company Law tribunal,
Mumbai bench, the equity share capital of L&t
Seawoods Limited, a wholly owned subsidiary,
was reduced to the extent of 34.50 crore shares
aggregating to R 345 crore.
Subsequent to the year under review, the Company
has divested its entire stake in L&t Kobelco Machinery
private Limited, a subsidiary, to Kobe Steel, Ltd. on
17th April 2019.
C) Companies Struck off:
pursuant to the application made in the previous year,
the following companies were struck off by Ministry of
Corporate Affairs under the provisions of Companies Act,
2013 during the year under review:
Name of the Company
date of Strike off
Seawoods Retail private Limited
26th June 2018
Seawoods Realty private Limited
26th June 2018
L&t trustee Company private Limited 8th August 2018
d)
Performance and Financial Position of 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 546 to
555 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 provided as required under section 186
of the Companies Act, 2013, Regulation 34(3) and
Schedule V of the SeBI (Listing obligations & Disclosure
Requirements) Regulations, 2015 in Note 37 and Note 38
forming part of the financial statement.
ParTICULarS oF CoNTraCTS or arraNGEMENTS
WITH rELaTEd ParTIES:
the Audit Committee and the Board of Directors have
approved the Related party transactions policy, signifying
the threshold limits 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 2018-19 and estimated transactions for
FY 2019-20.
there were no materially significant related party
transactions that may have conflict with the interest of
the Company.
MaTErIaL CHaNGES aNd CoMMITMENTS
aFFECTING THE FINaNCIaL PoSITIoN oF THE
CoMPaNY, BETWEEN THE ENd oF THE FINaNCIaL
YEar aNd THE daTE oF THE rEPorT:
other than stated elsewhere in this report, there are no
material changes and commitments affecting the financial
position of the Company between the end of the financial
year and the date of this report.
67
Board RepoRt ANNUAL RepoRt 2018-19
CoNSErVaTIoN oF ENErGY, TECHNoLoGY
aBSorPTIoN, ForEIGN EXCHaNGE EarNINGS aNd
oUTGo:
dETaILS oF dIrECTorS aNd KEY MaNaGErIaL
PErSoNNEL aPPoINTEd/ rESIGNEd dUrING THE
YEar:
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, Directors of the Company.
Mr. S. N. Subrahmanyan is the Chairman of the
Committee.
the Company has formulated a risk management policy
and has in place a mechanism to inform the Board
Members about risk assessment. the risk assessment
includes review of geo-political developments, business
environment, growth opportunities, geographical
expansion, capability development, talent management,
brand and reputation protection and enhancement, cyber
security and risk minimization initiatives. the Committee
periodically reviews the risk to ensure that executive
management controls risk by means of a properly
designed framework.
A detailed note on risk management is given under
financial review section of the Management Discussion
and Analysis on pages 296 to 298 of this Annual Report.
CorPoraTE SoCIaL rESPoNSIBILITY:
the Corporate Social Responsibility Committee comprises
of Mr. Vikram Singh Mehta, Mr. R. Shankar Raman and
Mr. D. K. Sen as the Members. Mr. Vikram Singh Mehta is
the Chairman of the Committee.
the CSR policy framework is available on the 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 pages 96 and 97 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,
2014 are given in Annexure ‘C’ forming part of this Board
Report.
Mr. M.M Chitale, Mr. M. Damodaran and Mr. Vikram
Singh Mehta were appointed as Independent Directors
of the Company with effect from April 1, 2014 to March
31, 2019. pursuant to the recommendation of the
Nomination and Remuneration Committee, the Board
at its Meeting held on March 5, 2019 has approved the
re-appointment of Mr. M.M Chitale, Mr. M. Damodaran
and Mr. Vikram Singh Mehta for a further term of five
years from April 1, 2019 to March 31, 2024, subject to
the approval of shareholders through special resolution.
Special resolution for continuation of Mr. M. Damodaran
as an Independent Director, who would attain the age
of 75 years during his current tenure forms part of the
Notice being sent to the shareholders.
Mr. Adil Zainulbhai was appointed as Independent
Director of the Company with effect from May 30, 2014
to May 29, 2019. pursuant to the recommendation of
the Nomination and Remuneration Committee, the Board
at its Meeting held on March 5, 2019 has approved
the re-appointment of Mr. Adil Zainulbhai for a further
term of five years from May 29, 2019 to May 28, 2024,
subject to the approval of shareholders through special
resolution.
Based on their skills, experience, knowledge and report
of their performance evaluation, the Board was of the
opinion that their association would be of immense
benefit to the Company and it would be desirable to avail
their services as Independent Directors.
Mr. Subhodh Bhargava was re-appointed as Independent
Director with effect from March 30, 2017 for a
second term of five years which was approved by the
shareholders through a special resolution. At the time of
his re-appointment, he had attained the age of 75 years
and accordingly he shall continue in his present term until
March 29, 2022. His re-appointment is in compliance
with regulation 17(1A) of the SeBI (Listing obligations &
Disclosure Requirements) Regulations, 2015 which was
effective from 9th May 2018.
Mr. R. Shankar Raman, Mr. Shailendra Roy, Mr. M.V Satish
and Mr. J. D. patil retire by rotation at the ensuing AGM
and being eligible offer themselves for re-appointment.
the notice convening the AGM includes the proposal for
re-appointment of Directors.
68
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 82 and 83 of
this Annual Report.
aUdIT CoMMITTEE:
the Company has in place an Audit Committee in terms
of the requirements of the Companies Act, 2013 read
with the rules made thereunder and Regulation 18 of
the SeBI (Listing obligations & Disclosure Requirements)
Regulations, 2015. the details relating to the same are
given in Annexure ‘B’ - Report on Corporate Governance
forming part of this Board Report. Members are requested
to refer to pages 88 to 90 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 90 to 94 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, 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 the Annual Return in Form
MGt-9 is attached as Annexure ‘F’ to this Report.
the Annual Return of the Company will be available on
its website www.larsentoubro.com.
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 controls to be followed by the
Company and such internal financial controls are
adequate and operating efficiently;
f)
the Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and were
operating effectively.
69
Board RepoRt ANNUAL RepoRt 2018-19
adEQUaCY oF INTErNaL FINaNCIaL CoNTroLS:
dISCLoSUrE oF rEMUNEraTIoN:
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 2019, 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,
individual directors and the Chairman has to be made. All
Directors responded through a structured questionnaire
giving feedback about the performance of the Board, its
Committees, Individual directors and the Chairman.
For the year under review, the questionnaire was modified
suitably, based on the comments and suggestions
received from Independent Directors. As in the previous
years, an external consultant was engaged to receive the
responses of the Directors and consolidate/ analyze the
responses. the same external consultant’s It platform
was used from initiation and till conclusion of the entire
board evaluation process. this ensured that the process
was transparent and independent of involvement of
the Management or the Company’s It system. this has
enabled unbiased feedback.
the Board performance evaluation inputs, including areas
of improvement, for the Directors, Board processes and
related issues for enhanced Board effectiveness were
discussed in the meeting of the Independent Directors
held on 30th November 2018 and in the subsequent
Meetings of Nomination and Remuneration Committee
and the Board. the Group Chairman had a discussion
with all the Independent Directors individually and the
Chairman of Nomination and Remuneration Committee
had a discussion with all the executive Directors
individually.
Most of the suggestions from the Board evaluation
exercise of FY 2017-18 have been suitably implemented
such as meetings of Chairman of NRC with individual
directors and Action taken Report of Board decisions.
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.
CoMPLIaNCE WITH SECrETarIaL STaNdardS oN
Board aNd GENEraL MEETINGS:
the Company has complied with Secretarial Standards
issued by the Institute of Company Secretaries of India on
Board Meetings and General Meetings.
ProTECTIoN oF WoMEN aT WorKPLaCE:
the Company has formulated a policy on ‘protection of
Women’s Rights at Workplace’ as per the provisions of the
Sexual Harassment of Women at Workplace (prevention,
prohibition & Redressal) Act, 2013. the policy has been
widely disseminated. the Company has constituted
Internal Complaints Committees as per the above Act.
there were 4 complaints received during the F.Y. 2018-19.
All the 4 complaints were investigated and appropriate
action was taken.
Awareness workshops and training programs are
conducted across the Company to sensitize employees
to uphold the dignity of their colleagues at workplace
specially with respect to prevention of sexual harassment.
oTHEr dISCLoSUrES:
•
ESoP disclosures: there has been no material
change in the employee Stock option Schemes
(eSop schemes) during the current financial year.
the eSop Schemes are in compliance with Securities
and exchange Board of India (Share Based employee
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
70
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,
are provided in Annexure ‘B’ forming part of this
Report.
•
Integrated reporting: pursuant to SeBI Circular
on Integrated Reporting, the Company is complying
with the applicable requirements of the Integrated
Reporting Framework. the Sustainability Report has
been replaced by an Integrated Report which tracks
the sustainability performance of the organization
and its interconnectedness with the financial
performance, showcasing how the Company is
adding value to its stakeholders.
the Integrated Report encompasses areas such
as Corporate Governance, the IR & Sustainability
Structure, Sustainability Roadmap 2021, Risks &
opportunities, enhancement of Financial Capital,
Manufactured Capital, Intellectual Capital, Human
Capital, Natural Capital and Social & Relationship
Capital and alignment to sustainable development
goals. It also covers strategy, business model and
resource allocation.
the integrated Report for the year 2017-
18 is available on the Company’s website
http://www.larsentoubro.com/corporate/
sustainability/integrated-report/ and the report for
the year 2018-19 shall be published shortly.
•
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 initiates sustainable
activities.
• MSME: the Ministry of Micro, Small and Medium
enterprises vide their Notification dated 2nd
November 2018 has instructed all the Companies
registered under the Companies Act, 2013, with a
turnover of more than Rupees Five Hundred crore to
get themselves onboarded on the trade Receivables
Discounting system platform (tReDS), set up by
the Reserve Bank of India. In compliance with this
requirement, the Company is in the process of
registering itself on tReDS through one of the service
providers.
the Company would be complying with the
requirement of submitting a half yearly return to the
Ministry of Corporate Affairs within the prescribed
timelines.
VIGIL MECHaNISM:
As per the provisions of Section 177(9) of the Companies
Act, 2013 (‘Act’), the Company is required to establish an
effective Vigil Mechanism for directors and employees to
report genuine concerns.
the Company has a Whistle-blower policy in place since
2004 to encourage and facilitate employees to report
concerns about unethical behaviour, actual/ suspected
frauds and violation of Company’s Code of Conduct
or ethics policy. the policy has been suitably modified
to meet the requirements of Vigil Mechanism under
the Companies Act, 2017. 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 policy also
establishes adequate mechanism to enable employees
report instances of leak of unpublished price sensitive
information. 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 page 98 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 20 to 41).
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.
71
Board RepoRt ANNUAL RepoRt 2018-19
CoNSoLIdaTEd FINaNCIaL STaTEMENTS:
Your Directors have pleasure in attaching the
Consolidated Financial Statements pursuant to Section
129(3) of the Companies Act, 2013 and Regulation 34 of
the SeBI (Listing obligations & Disclosure Requirements)
Regulations, 2015 and prepared in accordance with
the 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 the Ministry of
Corporate Affairs in exercise of the powers conferred by
Section 133 of the Companies Act, 2013.
aUdIT rEPorT:
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 observation of the Secretarial Auditor is
self-explanatory.
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 till the conclusion of 75th Annual
General Meeting of the Company.
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 Auditors have also furnished a declaration confirming
their independence as well as their arm’s length
relationship with the Company as well as declaring
that they have not taken up any prohibited non-audit
assignments for the Company.
the 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.
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 10th May, 2019, 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 2020 at a
remuneration of R 13 lakhs.
A proposal for ratification of remuneration of the Cost
Auditor for the financial year 2019-20 is placed before
the shareholders.
the Report of the Cost Auditors for the financial year
ended 31st March 2019 is under finalization and shall
be filed with the Ministry of Corporate Affairs within the
prescribed period.
the provisions of Section 148(1) of the Companies Act,
2013 are applicable to the Company and accordingly the
Company has maintained cost accounts and records in
respect of the applicable products for the year ended 31st
March 2019.
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)
Also see pages 98 and 99 forming part of Annexure ‘B’ of
this Board Report.
Date : 10th May 2019
place : Mumbai
72
annexure ‘a’ to the Board report
Information as required to be given under Section 134(3)
(m) read with Rule 8(3) of the Companies (Accounts)
Rules, 2014.
a. CoNSErVaTIoN oF ENErGY:
(i)
Steps taken or impact on conservation of
energy:
Implementation of LeD lights in He-Hazira
campus and other project sites and Solar pipes in
SG fabrication area.
Installation and Usage of Grid power network in
place of DG sets in LSR/ISR process.
pre-heating of circular Seam with energy
efficient IR Burners.
procurement of renewable energy of
approximately 54 Lacs KwH for He east & West
plants.
plate Fabrication Shop furnace automation
control with pLC and HMI.
Replacement of 22 Kw (2 no’s) induction motor
with new Yaskawa Drive on Gantry Yard Crane.
Usage of Facing Lathe Chuck, Ravensberg Lathe
Chuck and Cantilever crane Lt.
Interlocking of coolant pump with drilling
operation on Kolb Machine to avoid the idle
running of coolant motor ensuring optimal
utilization of electrical energy.
Built operate and transfer (Bot) project with
ZeRo Capital expenditure (Capex) and operating
expenditure (opex) with energy Service
Companies (eSCo) in all bays for replacement of
264 nos. of Metal Halide Lamps.
Retrofitting of Hydraulic press with Ie 2 class
energy efficient motor.
Implementation of Smart energy Saving function
in SKoDA FHB machine to sense idle operation
and turn auxiliary motors off.
Replacement of semitransparent FRp Roof sheets
for Daylight harvesting in shops.
zz
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zz
zz
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zz
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zz
zz
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zz
zz
zz
Replacement of 150 W MH Street lights (phase #
1) with 90 W LeD fittings (12 nos.)
Retrofitting of Slip Ring induction motor based
eot crane to energy efficient Squirrel Cage
motors.
Identification of compressed air Leaks through
Ultrasonic Leak detection system and arrest them
in various shops.
Implementation of Compressor leakage testing &
reduction of use of compressor.
Revision in heating rate in pFS shop for heat
exchangers.
Installation of transparent roof sheets in LeMF
store.
Reduction in natural gas consumption for LSR/
ISR furnace by sequential operation of furnace
burners.
Iot projects implementation for eSSC, SAW
process to save energy and reduce cycle time at
Hazira.
Conversion of cycle into Induction heating &
effective loading leading to energy saving in
furnace.
Usage of permanent flue gas analyzers for fix
type furnaces.
Installed energy efficient burners for Furnaces
and pre heating.
zz
Implementation of 100% pID based LSR/ISR.
zz
zz
zz
zz
Development of Smart energy Management
System at VHeW for real time trend of energy
Intensive processes with pareto charts, report
and alerts.
Development of energy efficient screw chiller
with BMS system for 120t AC plant.
Implemented robots on MDU DMC molding
machines by improving oee; optimizing cycle
time at Ahmednagar location.
Implementation of timers for Flow Lines, Battery
Chargers, Water Coolers, Auto switching off
shop floor lights at Mahape location.
Qualification of 15 kW small curing oven in place
of 50 kW curing oven for smaller batch size
zz
Installation of VFD at Scrubber and FDVS system
of plating shop at Vadodara.
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
zz
zz
zz
zz
zz
zz
zz
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zz
zz
zz
Installation of censors in welding machines
and batching plant to identify consumption of
electricity in case machines are lying idle.
Replacement of conventional light fittings
with LeD in production/Utility areas at eWL
Kancheepuram factory and Kansbahal works.
Replacement of 33KV, 1250 KVA transformer
with Level II energy efficient transformer due to
failure of old transformer at eWL Kancheepuram
factory.
periodically conduct “tag-Your-Leak” survey at
Kansbahal Works
De dusting line Replaced Cogged belt in Blower
instead of V belt and maintained the rated RpM
and avoided the V belt slippage in the pulley.
Replaced vertical gland pump 5Hp with AoD
pump
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
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.
Initiative has been taken for replacement of
Air-Cooled Chiller with Water Cooled Chiller.
Commissioned Air Compressor with Variable
Speed Drive which reduced the air pressure from
5.5 to 6.5 bar to 5.2 bar constant pressure.
zz
Utilisation of Solar Lights for lighting around
compound walls.
(ii) Steps taken by the Company for utilizing
alternate sources of energy:
zz
Shift towards usage of windmill power in the
place of State electricity Board at Kanchipuram
factory
zz
Solar panels installed at project sites
(iii) Capital investment on energy conservation
equipments:
NIL
74
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:
Usage of triple Blend concrete for the
construction of the extradosed Bridge at
Barapullah, Delhi.
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Implementation of formwork having height of
10 metre for the first time in India at Medigadda
Barrage, telangana.
Development of Iot based digital solution for
concrete pour management at Medigadda
Barrage, telangana.
Usage of Secant pile as a cost effective and
technically viable alternative for Jet grouting Cut
off at Medigadda Barrage, telangana.
Achieved better quality and faster erection time
by usage of Large diameter Single stage Anchor
Rod at Medigadda Barrage, telangana.
Development of Iot based digital solution
for Boulder transportation management at
Kundankulam Nuclear power plant Hydro
technical Structures package.
Innovative use of In-house designed Auger
Cleaner, Rock Splitter and Rock buster to check
noise and environment pollution for construction
of under- ground sections at Mumbai Metro
project.
Utilization of Floating barge for batching plant
set up at Mumbai trans Harbour Link project.
Adaptation of Reverse Circulation Drill (RCD)
for Marine piling at Mumbai trans Harbour Link
project.
Launched 1500 ton truss structure by utilizing
push Launching at Hyderabad Metro Rail project.
Implementation of pile Base Grouting in a Bridge
project at Khulna Mongla.
Development of Insert Free tetrapod lifting
arrangement.
Installed strand jack arrangement for skidding
and lowering of objects in shipbuilding.
zz
zz
zz
zz
zz
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zz
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zz
zz
zz
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zz
zz
Usage of Analytics tools such as BI Dashboard:
15/30, pRotoN, CReMS and ConstZon.
Utilization of smart stations, smart officer with
20+ applications, asset trackers in the factories.
Initiated use of Drawing Automation, Advance
Metrology, Advanced NDt and IeMQS-
operational under SMARt processes.
Implementation of Workmen Management
System (Uberization), Smart Glass, Safety
through VR under SMARt service.
Development of capabilities in High-end Finite
element Analysis including advanced non-linear
FeA, Analysis of complex Heat exchanger models
etc.
Development of capability for CFD simulation in
areas such as Conjugate Heat transfer analysis
and analysis with Reaction kinetics.
technology for Simulation of Manufacturing
processes such as multi-layer weld overlay, heat
treatment and forming and its application for
ongoing jobs.
Designing of Synloop Boiler with conventional
‘U’ type configuration.
Development of phosphoric Acid Heaters with
metallic tubes.
optimization of design of support arrangement
in Heavy Reactors.
optimization of design for internals of Nuclear
Steam Generator.
Developed autonomous UnderWater Vehicle
(AUV), AMoGH, meeting Indian Navy
requirements for underwater surveillance.
technology absorption from National Institute
of ocean technology, Chennai for Remote
operated Vehicles (RoV) for 500m to 6000m for
unmanned underwater intervention & support
like diver support, Submarine rescue, mine
counter measure, etc
technology absorption from National Institute
of oceanography, Goa for Autonomous
Underwater Vehicle (AUV) Maya- 200m
configurable to meet military & civilian
application.
zz
Implemented Integrated Life Support System –
for tejas Aircraft (oxygen Generation System)
zz
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zz
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zz
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zz
zz
zz
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Developed Chemical Warfare Agent Detection
System
Designed absorption of K9 armoured vehicle
manufacturing technology from Korea
Development of complete turn- key solution
consisting of Search radar, track radar &
antiaircraft Gun
Development of Manoeuvrable expandable
Aerial target (MeAt) which includes Airframe
design, Avionics development including in house
Flight Control Computer.
Development of Catapult Bungee Launcher.
Developed Fire Control Radar which tracks radar
for short range air defence application.
Developing swarming algorithms and
implementation with a cluster of UAVs.
Development of fully mechanized remote
weapon station for guns giving capability to fire
without being exposed to enemy.
Complete WaterJet propulsion system developed
in-house to benchmark performance against
imported system for IBs.
Developed High power high efficiency DC-DC
converters with critical technology for increasing
the endurance for Air independent propulsion
(AIp) systems.
Development of design of Avionics LRUs
with Standby engine Instrument and Standby
Instrumentation System for Helicopter platforms
zz Work in progress with IIt Delhi under IMpRINt
program for real-time imaging sonar suitable for
variety of applications like AUVs, RoVs, Divers,
etc
Development of System for underwater Acoustic
Signal Monitoring
Development of non-destructive testing and
geotechnical investigation of India’s longest
bridge (Dhola-Sadia Bridge) in Assam.
Designing and construction of Geocell and
Geogrid stabilized base layers for heavy duty
pavements.
establishment of state of art testing facility
for Geosynthetic materials used for various
applications in construction projects.
zz
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zz
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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establishment of state of art chemical testing
facility for construction materials especially
testing of potable water, industrial water and
sewer waste water.
Launch of the new R&D brochure highlighting
the capabilities and achievements of the R&D
centre.
Development of in-house “Chloride Migration
test” set-up for qualification of concrete mixes
for mega structures.
Designing of high resilient modulus (in excess of
3000 Mpa) dense bituminous macadam mixes
for major highway project.
Complete digitization of the testing activities
at R&D laboratory with implementation of
Laboratory Information Management Software
(LIMS).
Development of high flow concrete mix for
(CFA)-Continuous flight auger system for pile
casting
Development of accelerated mix design method
for concrete using ppC, opC+Fly ash and opC of
high strength cement of 53 grade.
Development of durability of concrete testing
methods and correlations
evaluation of light gauge sections for formwork
Development of pre-stressing strands relaxation
test facility as per IS 14268 and AStM A416
Development of maturity curves for tetra mix
concrete
Determining the suitable anchor cone assembly
for climbing formwork
evaluation of the proximity switches for nuclear
projects under various environmental conditions
Development of customized DBM mix designed
at LtCRtC for extreme weather conditions were
approved and adopted for construction at Bar
Bilara Jodhpur Road project, Rajasthan.
Controlled low strength material-CLSM has been
implemented at CStI administrative block to
fill the hollow portions below the tiles due to
improper consolidation / settlement of soils
Geo-concrete is placed for a ramp portion of
heavy vehicle service station at Kanchipuram
yard
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CFA pile casting using high flow concrete at
NpCIL project in Haryana through DFI.
Quantitative data analytics on HSD rebar
mechanical properties
Introduced DG500 KVA AMF panel to turn on
automatically the eB & DG and implementation
of online monitoring system.
Implemented online monitoring of Water meters
& report generation automatically, energy meter
readings and monitoring shop wise consumption
at Formwork unit.
Automation of Ro plant and receipt of the
running parameters by SMS such as pressure
flow, reject water volume, total consumption,
pH, tDS.
Implemented online LpG consumption
monitoring system in paint shop for monitoring
efficient gas consumption.
zz
online seamless data transfer system
implemented for water consumption monitoring.
zz Monitoring LpG Leakage system implemented
in LpG line to reduce the wastage at Formwork
Factory, puducherry.
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Development of p55 manual bending machine
fixtures as per site requirement.
Development of Robomaster Double Bender
Sleeve for tL projects 16mm short length hook
job bending.
Implementation of stirrup making machine
magnet tray for coil iron dust collecting, to
segregate iron dust and mud separately.
Reduction in water consumption through
arresting the leakage and replacement with new
push type tap to all gardens and labour.
Developed the twinmaster 12S Machine Manual
control device to minimize coil feeding and
setting time for increasing the productivity.
to develop the clamping system in p42 manual
bending machine to minimize the man power
(helper).
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
76
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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
Development of “Closed Door operation”
feature in the domestic LV Switchboards.
Development of GV3N range of Gas Insulated
Switchgear (GIS) and ‘SMARt’ RMUs to cater to
requirements in Smart Cities and IpDS projects.
Development of feeder pillar designs (Metallic/
Non-metallic).
Development of ethernet switches and Data
concentrators to complement LV, MV product
offerings.
Development of Slip power recovery system
using indigenous developed IGBt based Active
front end (AFe) and inverter for large Motors.
Introduction of advanced Smart Metering
Infrastructure with RF based L&t make Smart
Meters at Indore using public and private (Govt.
Community Cloud) cloud infrastructure for
hosting solution required for Smart Metering.
Development of LtLK MCBs for submersible
pumps, typically replacing traditional rewireable
fuses in agricultural sector.
optimized the capacity of Laminar cooling water
system for SAIL, RSp Hot Strip Mill project.
Development of High Rate Mill Scale filtration
system design and manufactured indigenously
for SAIL, RSp, Hot Strip Mill project, with basic
design for the Filters from envirotherm GmbH,
Germany.
Development of design of Scale pit & Settling
tank for SAIL RSp Hot Strip Mill.
Developed capability to design Single Flight pipe
Conveyors for a diameter as high as 600 mm
and upto a length of 8 km.
zz
Developed twin wagon loading system with cross
transfer car & wagon positioner.
zz
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Designed rotary silo extractor for coal handling
of power plant for an export order.
Installation of specialized fixed stacker with twin
track arrangement for coal handling in port
Stockyard.
Designed and manufactured track mounted
mobile roll crusher (for Coal application).
Developed skid mounted crushing plant with
impactor to meet specific customer application.
Development of higher capacity surface miner
KSM404 and operational in coal application.
Developed segmented roll design for better
service life of Roll Crusher.
Implementation of MIG welding in place of
SMAW welding
(ii) Benefits derived like product improvement,
cost reduction, product development or import
substitution:
zz
zz
zz
zz
zz
zz
zz
Usage of Analytics has resulted in Real time
monitoring, Quick decision making, Multiple
data source and Drill down available for BI
dashboard.
Usage of Smart factory has resulted in increase
in productivity by 30%, reduction in cycle time,
effective utilization of machine, cost control and
easy and fast transaction/communication.
Implementation of Smart process has resulted
into additional engineering capacity, improved
visualization and reduction in planning efforts.
Initiation of Smart service has resulted into
efficiency in communication, connecting
workmen with messages, effective handling
of site queries and immersive trainings for
workmen.
entry in light weight AUV market with
immediate business potential in South Asia
technology enabler to develop variants for other
platforms and to Develop products for High
Altitude survival kits.
Development of Remote operated Gun Mount
(RoGM) has resulted in unleashing the potential
to be incorporated in various upcoming/
in-service armored vehicles in India
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zz
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Development of WaterJet propulsion system has
provided indigenous solution for propulsion of
high speed boats & ships.
Indigenous Sonar sensor solution for various
underwater application
the digitalization of testing activities at R&D
centre will save precious time and manpower.
Implementation of LIMS at the project sites
enables us to build a comprehensive material
performance data base and thus aide in
improvement of quality of construction materials
used at site.
Development of high flow concrete mix for
(CFA)-Continuous flight auger system for pile
casting
Development of accelerated mix design method
for concrete using cement and cementitious
materials
zz
Development of durability of concrete testing
methods and correlations
(iii) Information regarding technology imported
during the last 3 years:
S.
No.
Technology
Imported
a)
Flue Gas
Desulphurization
Year
of
Import
2016
b)
UV disinfection
system
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.
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.
78
S.
No.
Technology
Imported
c)
Vortex Grit
Removal
in Sewage
treatment plant
Year
of
Import
Status of absorption
& reasons for non-
absorption, if any
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.
2017
d) MBR (Membrane
Bioreactor)
technology
2017
Fully absorbed this
technology and are
implementing the same
with other projects like
318 MLD WWtp at
Coronation pillar, DJB –
Cluster Stps.
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.
Year
of
Import
2018
S.
No.
Technology
Imported
Magnetic Field
Analysis for
Underground
220kV power
cables inside
power Duct
Unistage tire
Building machine
passenger- 12-17
and electrical
platen Heating
System
3D Virtual Reality
Model in Ctp-14
2017
2017
e)
f)
g)
(iv) Expenditure incurred on research &
development:
Capital
Recurring (Includes customer funded
R 0.52 crore)
Total
total R&D expenditure as a percentage of
total turnover
v crore
2018-19
47.95
168.75
216.70
0.25%
C. ForEIGN EXCHaNGE EarNINGS aNd oUTGo:
Foreign exchange earned
Foreign exchange used
v crore
2018-19
20211.96
20212.38
Status of absorption
& reasons for non-
absorption, if any
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.
Indigenized Rubber
processing Machines by
designing, developing
specifications and
adapting to International
customers’ needs.
enhancing the
demonstration
capabilities for the civil
components viz., track,
embankment, bridges,
drain, retaining wall, etc.
79
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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 shareholder 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 companywide operations review and plays a key role in strengthening linkages between
the ICs and the Company’s Board, as well as in rapidly realizing inter-IC synergies. In addition, the eCom
deliberates upon strategic issues that cut across ICs and Corporate. the agenda includes:
zz
Review of major order prospects (Standalone/ Group) / “Integrated offerings”
80
zz
zz
zz
zz
zz
zz
zz
Review of consolidated financials including working capital, cash flow, capital structure, etc.
Review of Monthly / Quarterly / Yearly financial performance
Review of Revenue, Capital & Manpower Budget and performance there against
Review and discuss strategic issues which impact the entire organization, viz.,
i.
ii.
International business expansion
IC synergies
iii. HR Update/ talent Management / Service contract extensions for senior management personnel
iv. Digitalization & Analytics initiatives
Approval of common policies
Sharing of best practices, etc.
Strategic plans and business portfolio reviews
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):
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.
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.
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 2019, the Board comprises 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, including one Independent Woman Director. the composition of the Board, as on 31st
March 2019, is in conformity with the provisions of the Companies Act, 2013 and Regulation 17 of the SeBI
(Listing obligations & Disclosure Requirements) Regulations, 2015 (‘SeBI LoDR Regulations’).
81
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
b. Meetings of the Board:
the Meetings of the Board are generally held at the Registered office of the Company at L&t House, Ballard
estate, Mumbai 400 001 and also if necessary, in locations, where the Company operates. the Meetings of the
Board have been held at regular intervals with a time gap of not more than 120 days between two consecutive
Meetings. During the year under review, 9 meetings were held on 5th April 2018, 28th May 2018, 25th July
2018, 23rd August 2018, 31st october 2018, 25th January 2019, 5th March 2019, 25th March 2019 and 26th
March 2019.
the Independent Directors met on 30th November 2018 to discuss, interalia, the performance evaluation of the
Board, Committees, Chairman and the individual Directors.
the Company Secretary prepares the agenda and the explanatory notes, in consultation with the Group
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 discussions 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 and dated by the
Chairman of the Board at the next meeting.
the following is the composition of the Board of Directors as on 31st March 2019. 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
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.
GC
Ceo & MD
eD
eD
eD
eD
eD
ID
ID
ID
ID
NeD
ID
ID
NeD
ID
9
9
9
9
9
9
9
9
9
9
9
1
9
9
9
9
No. of Board
Meetings
attended
9
8
9
9
9
8
9
9
9
8
8
1
9
9
2
9
attendance at
last aGM
YeS
YeS
YeS
YeS
YeS
YeS
YeS
YeS
YeS
YeS
YeS
–
YeS
YeS
No
YeS
82
Name of director
Category
Meetings held
during the year
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga
Mr. Narayanan Kumar
Mr. Arvind Gupta (Note 2)
Mr. Hemant Bhargava (Note 1) *
Meetings held during the year are expressed as number of meetings eligible to attend.
Note: 1. Representing equity interest of LIC
ID
NeD
ID
ID
ID
NeD
NeD
9
9
9
9
9
9
7
No. of Board
Meetings
attended
9
9
9
8
9
8
2
attendance at
last aGM
YeS
YeS
No
YeS
YeS
YeS
No
2. Representing equity interest of SUUtI
$ - Ceased to be a Director w.e.f. 2nd May 2018
* - Appointed as a Director w.e.f. 28th May 2018
GC – Group Chairman
Ceo & MD – Chief executive officer & Managing Director
eD – executive Director
NeD – Non-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 17A of the SeBI LoDR Regulations.
the names of the listed entities (whose equities and debt securities are listed) wherein the Director holds
directorships as on 31st March 2019 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
Names of Listed entities where he
holds directorship
Larsen & toubro Limited
Larsen & toubro Infotech Limited
L&t technology Services Limited
Larsen & toubro Limited
Larsen & toubro Infotech Limited
L&t technology Services Limited
L&t Metro Rail (Hyderabad) Limited
Larsen & toubro Limited
Larsen & toubro Infotech Limited
L&t Finance Holdings Limited
L&t Infrastructure Development projects
Limited
L&t Metro Rail (Hyderabad) Limited
Larsen & toubro Limited
Nabha power Limited
Larsen & toubro Limited
Larsen & toubro Limited
Larsen & toubro Limited
Category of directorship
Group Chairman
Non-executive Chairman
Non-executive Chairman
Chief executive officer and
Managing Director
Vice- Chairman
Vice- Chairman
Chairman
Whole-time Director and Chief
Financial officer
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director
Whole-time Director
Non-executive Director
Whole-time Director
Whole-time Director
Whole-time Director
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Name of director
Mr. M. M. Chitale
Mr. Subodh Bhargava
Mr. M. Damodaran
Mr. Vikram Singh Mehta
Mr. Adil Zainulbhai
Mr. Akhilesh Gupta
Mrs. Sunita Sharma
Mr. thomas Mathew t.
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Names of Listed entities where he
holds directorship
Larsen & toubro Limited
essel propack Limited
Atul Limited
Larsen & toubro Infotech Limited
Lodha Developers Limited
Bhageria Industries Limited
Larsen & toubro Limited
Batliboi Limited
Nicco parks & Resorts Limited
Larsen & toubro Limited
Crisil Limited
Hero Motocorp Limited
tech Mahindra Limited
Biocon Limited
Interglobe Aviation Limited
Larsen & toubro Limited
Colgate-palmolive (India) Limited
Ht Media Limited
Apollo tyres Limited
Mahindra & Mahindra Limited
Jubiliant Foodworks Limited
Larsen & toubro Limited
Reliance Industries Limited
Network18 Media & Investment Limited
Reliance Jio Infocomm Limited
Cipla Limited
tV18 Broadcast Limited
Larsen & toubro Limited
Larsen & toubro Limited
Larsen & toubro Limited
L&t Finance Holdings Limited
L&t Infra Debt Fund Limited
L&t Infrastructure Finance Company
Limited
Larsen & toubro Limited
Larsen & toubro Limited
Larsen & toubro Limited
Cipla Limited
Max Financial Services Limited
Altico Capital India Ltd
Nayara energy Limited
Category of directorship
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Chairman- Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Chairman- Independent Director
Independent Director
Independent Director
Chairman - Independent Director
Independent Director
Nominee Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Non- executive Director
Independent Director
Independent Director
Independent Director
Chairperson
Non-executive Director
84
Name of director
Mr. Sanjeev Aga
Mr. Narayanan Kumar
Mr. Arvind Gupta
Mr. Hemant Bhargava
Category of directorship
Names of Listed entities where he
holds directorship
Independent Director
Larsen & toubro Limited
Independent Director
Larsen & toubro Infotech Limited
UFo Moviez India Limited
Chairman and Independent Director
pidilite Industries Limited
Independent Director
Mahindra Holidays & Resorts India Limited Independent Director
Larsen & toubro Limited
Independent Director
Independent Director
L&t technology Services Limited
Independent Director
MRF Limited
Independent Director
Mphasis Limited
Chairman - Independent Director
take Solutions Limited
Independent Director
entertainment Network (India) Limited
Independent Director
Bharti Infratel Limited
Nominee Director
Larsen & toubro Limited
Independent Director
the State trading Corporation of India
Limited
Larsen & toubro Limited
the tata power Company Limited
Voltas Limited
ItC Limited
LIC Housing Finance Limited
Nominee Director
Nominee Director
Non-executive Director
Non- executive Director
Chairman
As on 31st March 2019, 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. Adil Zainulbhai
Mr. Akhilesh Gupta
Mrs. Sunita Sharma
Mr. thomas Mathew t.
No. of other company
directorships
4
3
8
9
2
1
2
7
2
6
6
6
0
1
4
No. of Committee
Membership
0
2
4
1
0
0
0
3
1
5
2
1
0
0
2
No. of Committee
0
0
0
0
0
0
0
4
0
4
1
5
0
1
2
85
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Name of director
Mr. Ajay Shankar
Mr. Subramanian Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga
Mr. Narayanan Kumar
Mr. Arvind Gupta
Mr. Hemant Bhargava
No. of other company
directorships
1
1
4
4
9
2
8
No. of Committee
Membership
2
0
5
3
3
0
1
No. of Committee
0
0
0
2
4
0
0
zz
zz
other Company Directorships includes directorships in all entities whose securities are listed. However, it
excludes private limited companies, foreign companies and Section 8 companies.
the details of Committee Chairmanships / Memberships are disclosed as per Regulation 26 of the SeBI
LoDR Regulations.
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
zz
zz
zz
Minutes of meeting of Board of Directors, Audit Committee, Nomination & Remuneration Committee,
Stakeholders Relationship Committee and Corporate Social Responsibility Committee
Details of any joint venture, acquisitions of companies or collaboration agreement or sale of investments,
subsidiaries, assets 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
zz
Developments in respect of human resources/industrial relations
zz
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
Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of
adverse exchange rate movement, if material.
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.
86
e. Board Skill Matrix:
the matrix setting out the skills / expertise/competence of the Board of Directors is given below:
Sr.
No
1
2
3
4
5
6
Experience / Expertise /
attribute
Comments
Leadership
Industry knowledge and
experience
experience and exposure in
policy shaping and industry
advocacy
Governance including legal
compliance
expertise/experience in Finance
& Accounts / Audit / Risk
Management areas
Global experience /
International exposure
Ability to envision the future and prescribe a strategic goal for
the Company, help the Company to identify possible road maps,
inspire and motivate the strategy, approach, processes and other
such key deliverables and mentor the leadership team to channelize
its energy/efforts in appropriate direction. Be a thought leader
for the Company and be a role model in good governance and
ethical conduct of business, while encouraging the organisation to
maximise shareholder value. Should have had hands on experience
of leading an entity at the highest level of management practices.
Should possess domain knowledge in businesses in which the
Company participates viz. Infrastructure, power, Heavy engineering,
Defence, Hydrocarbon, Financial Services, Information technology
and technology Services. Must have the ability to leverage the
developments in the areas of engineering and technology and other
areas as appropriate for betterment of Company’s business.
Should possess ability to develop professional relationship with the
policy makers and Regulators for contributing to the shaping of
Government policies in the areas of Company business.
Commitment, belief and experience in setting corporate governance
practices to support the Company’s robust legal compliance systems
and governance policies/practices.
Ability to understand financial policies, accounting statements and
disclosure practices and contribute to the financial/risk management
policies/practices of the Company across its business lines and
geography of operations
Ability to have access and understand business models of global
corporations, relate to the developments with respect to leading
global corporations and assist the Company to adapt to the local
environment, understand the geo political dynamics and its relations
to the Company’s strategies and business prospects and have a
network of contacts in global corporations and industry worldwide.
the above list of core skills/expertise/competencies identified by the Board of Directors as required in the
context of its business(es) and sector(s) for it to function effectively, are available with 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 in compliance with the provisions of the
Companies Act, 2013, SeBI LoDR Regulations and are also 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 (except Risk Management Committee) are convened by the Company Secretary in consultation with
87
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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
zz
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.
Approval of payment to statutory
auditors for any other services rendered
by the statutory auditors.
Discussion with statutory auditors
before the audit commences, about the
nature and scope of audit as well as
post-audit discussion to ascertain any
area of concern.
Reviewing, with the management, the
annual financial statements and the
audit report before submission to the
board for approval, with particular
reference to:
1. 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
88
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.
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.
zz
zz
zz
zz
zz
Discussion with internal auditors about
any significant findings and follow up
there on.
zz
zz
zz
zz
zz
zz
zz
zz
zz
zz
Reviewing the findings of any internal
investigations by the internal auditors
into matters where there is suspected
fraud or irregularity or a failure of
internal control systems of a material
nature and reporting the matter to the
board.
to look into the reasons for
substantial defaults in the payment
to the depositors, debenture holders,
shareholders (in case of non-payment of
declared dividends) and creditors.
to review the functioning of the Whistle
Blower mechanism.
Approval of appointment of CFo (i.e.,
the whole-time Finance Director or
any other person heading the finance
function or discharging that function)
after assessing the qualifications,
experience & background, etc. of the
candidate.
Carrying out any other function as is
mentioned in the terms of reference of
the Audit Committee.
the recommendation for appointment,
remuneration and terms of
appointment of cost auditors of the
Company.
Review and monitor the auditor’s
independence and performance, and
effectiveness of audit process.
Review the management discussion
and analysis of financial condition and
results of operations.
Approval or any subsequent
modification of transactions of the
Company with related parties.
Reviewing the utilization of loans and/
or advances from/investment in the
subsidiary companies exceeding rupees
100 crore or 10% of the asset size
of the subsidiary, whichever is lower
including existing loans / advances /
investments.
zz
zz
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, when necessary.
ii) Composition:
As on 31st March 2019, the Audit
Committee comprised of four Independent
Directors.
iii) Meetings:
During the year ended 31st March 2019, 8
meetings of the Audit Committee were held
on 27th April 2018, 27th May 2018, 24th
July 2018, 23rd August 2018, 30th october
2018, 13th December 2018, 24th January
2019 and 27th February 2019.
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
Mr. Narayanan
Kumar #
Member
8
8
1
8
6
8
6
1
8
6
Meetings held during the year are expressed as
number of meetings eligible to attend.
@ ceased to be a member w.e.f. 2nd May 2018
# appointed as a member w.e.f 28th May 2018
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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.
the Corporate Audit Services team of the
Company also covers the internal audit of all
ICs and Subsidiary Companies. An in-depth
audit is conducted by the team. the major
deviations are highlighted and discussed
with the concerned IC and / or subsidiary
company Boards and the report highlighting
the variations and the suggested corrective
actions are also placed before the Audit
Committee of the Company. Some
subsidiaries have engaged external firms for
conducting internal audit.
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);
90
zz
Recommend to the Board, all
remuneration, in whatever form,
payable to senior management.
ii) Composition:
As at 31st March 2019, the Committee
comprised of 3 Independent Directors and
the Group Chairman.
iii) Meetings:
During the year ended 31st March
2019, 7 meetings of the Nomination &
Remuneration Committee were held on 5th
April 2018, 28th May 2018, 25th July 2018,
31st october 2018, 25th January 2019,
22nd February 2019 and 25th March 2019.
the attendance of Members at the Meetings
was as follows:
Name
Status
Mr. Subodh Bhargava
Chairman
Mr. A. M. Naik
Member
Mr. Adil Zainulbhai Member
Mr. Thomas
Mathew T.
Member
No. of
Meetings
Attended
No. of
meetings
during
the year
7
7
7
7
7
7
7
7
Meetings held during the year are expressed
as number of meetings eligible to attend.
iv) Board Membership Criteria:
While screening, selecting and
recommending to the Board new members,
the Committee ensures that the Board
is objective, there is absence of conflict
of interest, ensures availability of diverse
perspectives, business experience,
legal, financial & other expertise,
integrity, 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 all the applicable regulations
of the SeBI LoDR Regulations. 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 the
SeBI LoDR Regulations.
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 LoDR Regulations.
the Board has taken on record the
declaration and confirmation submitted
by the Independent Directors and after
assessing the veracity of the same, the
Board is of the opinion that the Independent
Directors fulfill the conditions specified
in the SeBI LoDR Regulations and are
independent of the management.
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
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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 1,00,000/- per
meeting of the Board and R 50,000/- for
Audit Committee and Nomination and
Remuneration Committee meetings and
R 35,000/- for Stakeholders Relationship
Committee and Corporate Social
Responsibility Committee meetings during
the year to the Independent Directors / Non-
executive Directors. the commission is paid
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 provides 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 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 LoDR Regulations, 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
Independent directors:
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, assessment of their
independence, 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 interacts with all
the Non-executive Directors & Independent
Directors on a one-to-one basis. the NRC
Chairman also interacts with the executive
Directors.
Members are also requested to refer to
page 70 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
92
& 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
exist several structured core developmental
programs, conducted by reputed institutions
like IIM-Bangalore, IIM-Calcutta, XLRI,
Symbiosis and NMIMS for deserving
employees to develop superior management
skills and capabilities. A host of strategic
and behavioral 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 2019:
(a) Executive directors:
the details of remuneration paid /
payable to the executive Directors for
2018-19 is as follows:
v crore
Total
Retirement
Benefits
Commission
Names
Salary
Perquisites Perquisites
related to
ESOPs*
21.508
0.272
5.671
2.332
2.630
3.743
7.270
0.198
0.520
1.710
1.590
2.400
7.049 14.121
12.154 25.075
18.603 48.454
Mr. S. N.
Subrahmanyan
Mr. R. Shankar
Raman
Mr. Shailendra
N. Roy
Mr. D. K. Sen
Mr. M. V.
Satish
Mr. J. D. Patil
*Represents the 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.
4.186
5.985
1.230
1.230
0.120
0.220
6.998
9.383
1.462
1.948
5.283
1.050
0.180
1.710
8.223
-
-
-
zz
Notice period for termination of
appointment of Chief executive
officer & Managing Director and
other Whole-time Directors is six
months on either side.
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
zz
zz
zz
No severance pay is payable on
termination of appointment.
Details of options granted under
employee Stock option Schemes
are provided on the website of the
Company www.larsentoubro.com.
Apart from eSops of the Company,
Mr. S. N. Subrahmanyan has also
been vested 40,000 stock options
in Larsen & toubro Infotech
Limited and L&t technology
Services Limited each and he has
exercised the same. Similarly, Mr.
R. Shankar Raman has been vested
20,000 stock options in Larsen
& toubro Infotech Limited and
he has exercised the same. the
perquisite amount on exercise of
these options is 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 2018-19 is as follows:
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
Mrs. Sunita Sharma #
Mr. Thomas Mathew
T.
Mr. Ajay Shankar
Mr. Subramanian
Sarma
Ms. Naina Lal Kidwai
Mr. Sanjeev Aga
Sitting
Fees for
Board
Meeting
0.088
0.088
0.088
0.078
0.078
Sitting
Fees for
Committee
Meeting
0.034
0.038
0.034
0.028
0.017
Commission
Others
v crore
Total
5.000
0.381
0.531
0.383
0.349
3.033* 8.155**
0.507
0.653
0.489
0.444
NIL
NIL
NIL
NIL
0.008
0.004
0.047#
0.088
0.088
0.020
0.088
0.088
NIL
0.088
0.078
0.034
NIL
NIL
0.034
0.014
NIL
NIL
0.038
0.354
0.174
0.013
0.308
0.280
NIL
0.174
0.260
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
0.059
0.476
0.262
0.033
0.430
0.382
NIL
0.262
0.376
94
Names
Commission
Others
v crore
Total
Sitting
Fees for
Board
Meeting
0.088
0.078
0.020
Sitting
Fees for
Committee
Meeting
0.030
NIL
NIL
Mr. Narayanan Kumar
Mr. Arvind Gupta #
Mr. Hemant Bhargava
@ #
* Others include pension of R 3 crore and perquisite value of
0.279
0.155
0.017
NIL
NIL
NIL
0.397
0.233
0.037
housing and medical R 0.033 crore
** Does not include the perquisite value related to ESOPs
exercised during the year in respect of stock options granted
over the past several years by Larsen & Toubro Infotech
Limited and L&T Technology Services Limited of R 213.39
crore.
@ Appointed as a Director w.e.f. 28th May 2018
$ Ceased to be a Director w.e.f. 2nd May 2018
# Payable to respective Institutions they represent.
Mr. A. M. Naik has exercised 5,49,375
& 10,40,000 vested outstanding
stock options which were granted
in Larsen & toubro Infotech Limited
and L&t technology Services Limited
respectively. the perquisite amount on
exercise of these options are R 213.39
crore.
Details of shares and convertible
instruments held by the Non-executive
Directors as on 31st March 2019 are as
follows:
Names
Mr. A. M. Naik
Mr. M. M. Chitale
Mr. Subodh Bhargava
Mr. M. Damodaran
Mr. Vikram Singh Mehta
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 *
Mr. Hemant Bhargava *
Mr. Hemant Bhargava
No. of Shares held
4,24,958
2,443
1,125
225
1,327
150
7,680
4,500
150
94,650
1,500
150
150
150
100
100
90
* 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
zz
zz
Resolving the grievances of the security
holders of the company including
complaints related to transfer/
transmission of shares, non-receipt of
annual report, non-receipt of declared
dividends, issue of new/duplicate
certificates, general meetings etc.
Review of measures taken for
effective exercise of voting rights by
shareholders.
Review of adherence to the service
standards adopted by the company
in respect of various services being
rendered by the Registrar & Share
transfer Agent.
Review of the various measures and
initiatives taken by the company for
reducing the quantum of unclaimed
dividends and ensuring timely receipt
of dividend warrants/annual reports/
statutory notices by the shareholders of
the company.
ii) Composition:
As on 31st March 2019 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 2019, 4
meetings of the Stakeholders’ Relationship
Committee were held on 28th May 2018,
25th July 2018, 31st october 2018 and
25th January 2019.
the attendance of Members at the Meetings
was as follows-
Name
Status
No. of
Meetings
Attended
No. of
meetings
during
the year
Mrs. Sunita Sharma
Mr. Ajay Shankar
Chairperson
Member
Mr. Shailendra Roy
Member
4
4
4
0
4
4
Meetings held during the year are expressed
as number of meetings eligible to attend.
the meetings were chaired by Mr. Ajay
Shankar in the absence of Ms. Sunita
Sharma.
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
3
135
122
16
44
62
10057
9601
500
3007
2905
164
Demat / Remat
7
1969
1844
132
* Investor complaints / queries shown outstanding as on
31st March 2019 have been subsequently resolved to
the complete satisfaction of the investors. The Company
repeatedly sends reminders to shareholders regarding
unclaimed shares and dividends. This results in an increase
in the number of queries received.
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 40 meetings during the
year and approved the transfer of shares
lodged with the Company. pursuant to SeBI
press release dated 3rd December 2018,
requests for effecting physical transfer of
securities subsequent to 1st April 2019,
shall not be approved by the Share transfer
Committee.
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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 2019, the CSR Committee
comprised of 1 Independent Director and 2
executive Directors.
iii) Meetings:
During the year ended 31st March 2019,
5 meetings of the CSR Committee were
held on 21st May 2018, 4th July 2018, 8th
August 2018, 1st November 2018 and 14th
March 2019.
the attendance of Members at the Meetings
was 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
5
5
5
5
5
5
iv) CSr activities & Impact assessment:
the Company, through its CSR Committee,
is committed to improve the social
infrastructure of the country. 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
96
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
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 more
than 6.5 lakh individuals through our CSR
programs in 2018-19.
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 115 to 120 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:
zz
Review of the existing Risk
Management policy, framework and
processes, Risk Management Structure
and Risk Mitigation Systems. Broadly,
the key risks will cover strategic risks
of the group at the domestic and
international level, including Sectoral
developments, risk related to market,
competition, political and reputational
issues etc.
zz
Review of the operational risks
including client quality, manpower
availability, logistics and other aspects
which impact the Company and the
group.
zz
Review of the cyber security risks.
ii) Composition:
As on 31st March 2019, the Apex Risk
Management Committee comprised of 2
executive Directors and 1 Non-executive
Director.
iii) Meetings:
During the year ended 31st March 2019,
5 meetings of the Apex Risk Management
Committee were held on 6th April 2018,
25th May 2018, 5th July 2018, 21st
November 2018 and 15th January 2019.
the attendance of Members at the Meetings
was as follows-
Name
Status
No. of
meetings
during the
year
No. of
Meetings
Attended
Mr. S. N. Subrahmanyan Chairman
Mr. R. Shankar Raman
Member
Mr. Subramanian Sarma Member
5
5
5
5
4
4
G. oTHEr INForMaTIoN
a) directors’ Familiarization Program:
All our directors are aware and are also
updated as and when required, of their role,
responsibilities & liabilities.
the Company holds Board meetings at its
registered office and also if necessary, in
locations, where it operates. Site / factory
visits are organized at various locations for the
Directors.
the internal newsletters of the Company, the
press releases, etc. are circulated to all the
Directors so that they are updated about the
operations of the Company.
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
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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 68 of the Board Report.
c) Vigil Mechanism / Whistle Blower Policy :
the Company has a Whistle Blower policy in
place since April 2004. the said policy was
modified in line with the requirements of the
Vigil Mechanism under the Companies Act,
2013. 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 and instances of
leak of unpublished price sensitive information.
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 refer to page 71 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.
98
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
286,000 people with revenues over $43
billion. Deloitte India has more than 10,000
professionals operating out of 13 cities –
Ahmedabad, Bangalore, Vadodara, 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, which include 2,500+
professionals in Audit, 2,350 + in Tax, 1,900+ in
Consulting, and 1000+ in Financial Advisory.
For the financial year 2018-19, the total fees
paid by the Company and its subsidiaries, on
a consolidated basis, to Deloitte Haskins &
Sells LLP, Statutory Auditor and all entities in
the network firm/network entity of which the
statutory auditors are a part thereof for all the
services provided by them is R 10.95 crore.
Also refer to page 72 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 and Senior Management Personnel.
S. N. Subrahmanyan
Chief Executive Officer & Managing Director
Date: 10th May 2019
Place: Mumbai
f) General Body Meetings:
The last three Annual General Meetings of the
Company were held as under:
Date
Financial
Year
2017-2018 23rd August
2018
2016-2017 22nd August
2017
2015-2016 26th August
2016
Venue
Time
Birla Matushri
Sabhagar
St. Andrews
Auditorium
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 23rd August
2018:
zz
zz
To appoint Mr. A.M. Naik as a Non-
Executive Director of the Company with
effect from 1st October 2017 who has
attained the age of 75 years.
To approve the payment of remuneration
to Mr. A.M. Naik, being in excess of fifty
percent of the total annual remuneration
payable to all the Non-Executive Directors.
zz
To approve raising of finances through issue
of debentures upto R 6000 crore.
Annual General Meeting held on 22nd August
2017:
zz
To re-appoint Mr. Subodh Bhargava as an
Independent Director of the Company for a
five year term upto 29th March 2022.
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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 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.
Note : the resolution relating to raising of
finances have been taken at each of the above
AGMs since the validity of the resolution is one
year.
g) approval of Members through Postal Ballot:
the members approved a Special Resolution
under Section 110 of the Companies Act,
2013 read with the Rule 22 of the Companies
(Management and Administration) Rules, 2014
on 1st october 2018 permitting the Company
to buyback six crore equity Shares or higher of
the Company from all the equity shareholders
on a proportionate basis through the tender
offer Mechanism for acquisition of shares
through stock exchange under the Securities
and exchange Board of India (Buyback of
Securities) Regulations, 2018 at a maximum
price of R 1,500 per equity share aggregating to
R 9,000 crore. 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
35,59,085
91,21,15,907
91,56,74,992
99.85
86,531
12,87,614
13,74,145
0.15
ToTaL
36,45,616
91,34,03,521
91,70,49,137
100.00
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 along with postal Ballot Notice and
Ballot Form. the calendar of events containing
the activity chart is filed with the Registrar of
Companies within 7 days of the passing of the
Resolution by the Board of Directors. 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 No. 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 are provided to the Stock
100
exchanges and also available on our
website http://investors.larsentoubro.com/
Announcements.aspx.
5. there were no instances of non-compliance,
penalties, strictures imposed on the
Company by the Stock exchanges on any
matter related to the capital markets, during
the last three years.
6. the policies for determining material
subsidiaries and related party transactions
are available on our website http://investors.
larsentoubro.com/Listing-Compliance.aspx.
7. Details of risk management including
foreign exchange risk, commodity price risk
and hedging activities form a part of the
Management Discussion & Analysis. please
refer to pages 296 to 298 of this Annual
Report.
8. As required under the provisions of SeBI
LoDR Regulations, a certificate confirming
that none of the Directors on the Board
have been debarred or disqualified by the
Board/Ministry of Corporate Affairs or any
such statutory authority obtained from M/s
S. N. Ananthasubramanian & Co., Company
Secretaries is a part of the Corporate
Governance report.
9. Details in relation to the Sexual Harassment
of Women at Workplace (prevention,
prohibition and Redressal) Act, 2013 form
a part of the Board Report. please refer to
page 70 of this Annual Report.
i) Means of communication:
Financial Results
and other
Communications
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.
Advertisements relating to
IepF, e-Voting, AGM related
compliances, etc. are published
in the Financial express &
Loksatta
News Releases
Website
Filing with Stock
exchanges
Annual Report
and Annual
General Meeting
Management
Discussion &
Analysis
official news releases are sent
to stock exchanges as well as
displayed on the Company’s
website: www.larsentoubro.com.
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 would
also be made available on the
websites of the 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.
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 last three Annual
General Meeting in co-ordination
with NSDL/Karvy. the Company
will continue to provide webcast
facility in future. the Company
suitably responds to the queries,
if any, raised by the shareholders
through the webinar.
this forms a part of the Annual
Report which is mailed to the
shareholders of the Company.
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
presentations
made to
Institutional
Investors and
Analysts
the schedule of analyst /
institutional investor meets and
presentations made to them on
a quarterly basis are informed
to the Stock exchanges and also
displayed on the 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 LoDR
Regulations, 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 year
2010-11. the details are given in the Board Report.
please refer to page 66 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, 1st August
2019 at Birla Matushri Sabhagar, New Marine
Lines, Mumbai – 400020 at 3.00 p.m.
102
b) Financial calendar:
1. Annual Results of
10th May 2019
2018-19
2. Mailing of Annual
First week of July 2019
Reports
3. First Quarter Results
During the last week of
July 2019 *
4. Annual General
1st August 2019
Meeting
5. payment of Dividend
5th August 2019
6. Second Quarter
results
7. third Quarter results
During third week of
october 2019 *
During third week of
January 2020 *
* tentative
c) Book Closure:
the dates of Book Closure are from Friday,
26th July 2019 to thursday, 1st August 2019
(both days inclusive) to determine the members
entitled to the dividend for financial year
2018-2019.
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 admitted for trading on London Stock
exchange.
e) Listing Fees to Stock Exchanges:
the Company has paid the Listing Fees for
the year 2019-2020 to BSe and NSe. Fees to
London Stock exchange and Luxembourg Stock
exchange will be paid on receipt of the bill.
f) Custodial Fees to depositories:
the Company has paid custodial fees for the
year 2019-2020 to Central Depository Services
(India) Limited (CDSL) and fees to National
Securities Depository Limited (NSDL) will be paid
on receipt of the invoice.
g) Stock Code / Symbol:
Month
L&T NSE Price (v)
NIFTY
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 2018-19:
Month
L&T BSE Price (v)
BSE SENSEX
2018
April
May
June
July
High
Low Month
Close
High
Low
Month
Close
1405.00
1291.80
1400.60 35213.30 32972.56 35160.36
1424.50
1311.00
1367.60 35993.53 34302.89 35322.38
1395.95
1205.60
1271.30 35877.41 34784.68 35423.48
1346.80
1243.50
1302.60 37644.59 35106.57 37606.58
August
1373.90
1226.05
1369.10 38989.65 37128.99 38645.07
September 1389.00
1250.00
1266.65 38934.35 35985.63 36227.14
October
1303.00
1183.40
1298.35 36616.64 33291.58 34442.05
November 1435.00
1321.95
1429.65 36389.22 34303.38 36194.30
December
1459.10
1344.50
1438.50 36554.99 34426.29 36068.33
2019
January
1449.00
1268.00
1313.40 36701.03 35375.51 36256.69
February
1334.50
1202.30
1294.50 37172.18 35287.16 35867.44
March
1414.95
1276.35
1384.05 38748.54 35926.94 38672.91
)
V
(
E
S
B
-
T
&
L
2000
1900
1800
1700
1600
1500
1400
1300
1200
1100
1000
900
800
700
600
Stock Performance
L&T BSE (v) BSE SENSEX
Apr
18
May
18
Jun
18
Jul
18
Oct
18
Sep
18
Nov
Aug
18
18
Daily Closing Price
Dec
18
Jan
19
Feb
19
Mar
19
40000
39000
38000
37000
36000
35000
34000
33000
32000
X
E
S
N
E
S
E
S
B
Low Month
Close
High
2018
1405.00
April
1424.95
May
1396.00
June
1346.90
July
August
1374.00
September 1390.00
October
1304.00
November 1438.15
1459.70
December
1290.20
1311.00
1206.00
1242.90
1226.00
1250.15
1182.50
1321.60
1343.65
Low
High
Month
Close
1400.90 10759.00 10111.30 10739.35
1370.40 10929.20 10417.80 10736.15
1275.10 10893.25 10550.90 10714.30
1302.30 11366.00 10604.65 11356.50
1369.55 11760.20 11234.95 11680.50
1272.10 11751.80 10850.30 10930.45
1297.50 11035.65 10004.55 10386.60
1432.50 10922.45 10341.90 10876.75
1437.55 10985.15 10333.85 10862.55
2019
January
February
March
)
V
(
E
S
N
-
T
&
L
2000
1900
1800
1700
1600
1500
1400
1300
1200
1100
1000
1445.00
1334.55
1415.00
1268.20
1201.10
1277.05
1314.30 10987.45 10583.65 10830.95
1292.95 11118.10 10585.65 10792.50
1385.30 11630.35 10817.00 11623.90
Stock Performance
L&T NSE (v) NSE NIFTY
Apr
18
May
18
Jun
18
Jul
18
Oct
18
Sep
18
Nov
Aug
18
18
Daily Closing Price
Dec
18
Jan
19
Feb
19
Mar
19
13000
12500
12000
11500
11000
10500
10000
9500
Y
T
F
I
N
E
S
N
i) registrar and Share Transfer agents (rTa):
Karvy Fintech pvt. Ltd. (previously known as
Karvy Computershare private Limited)
Unit: Larsen & toubro Limited
Karvy Selenium tower B,
plot number 31 & 32
Financial District Gachibowli,
Nanakramguda,
Hyderabad, telangana - 500 032.
j) Share Transfer System:
pursuant to SeBI press releases dated 3rd
December 2018 and 27th March, 2019, except
in case of transmission or transposition of
securities, requests for effecting transfer of
securities subsequent to 1st April 2019, shall
not be processed by the Company unless the
securities are held in the dematerialized form
with a depository. the share related information
is available online.
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
physical shares received for dematerialization are
processed and completed within a period of 21
days from the date of receipt.
the number of shares held in dematerialized
and physical mode as on 31st March 2019 is as
under:
As required under Regulation 40 of the
SeBI LoDR Regulations, 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 2019:
No. of Shares
Shareholders
Shareholding
Upto 500
501 – 1000
1001 – 2000
2001 – 3000
3001 – 4000
4001 – 5000
5001 – 10000
10001 &
ABOVE
TOTAL
Number
%
Number
9,73,313
90.84
8,75,23,827
4.43
2.52
0.86
0.36
0.24
0.39
3,48,50,397
3,75,10,498
2,24,84,508
1,33,18,394
1,14,86,494
2,92,59,587
47,445
27,037
9,235
3,840
2,558
4,210
3,851
%
6.24
2.48
2.67
1.60
0.95
0.82
2.09
0.36
116,62,95,680
83.14
10,71,489 100.00 140,27,29,385
100.00
l) Categories of Shareholders is as under:
Category
31.03.2019
31.03.2018
No. of
Shares
%
No. of
Shares
%
Financial Institutions
30,15,15,029
21.49
33,25,25,270
23.73
Foreign Institutional
Investors
26,22,44,271
18.70
25,81,41,851
18.42
Shares underlying GDRs
2,28,26,592
1.63
2,96,43,045
2.12
Mutual Funds
22,89,29,940
16.32
20,23,45,408
14.44
Bodies Corporate
9,01,82,021
Directors & Relatives
15,76,870
6.43
0.11
8,99,08,301
14,21,965
6.42
0.10
L&T Employees Welfare
Foundation
17,21,28,421
12.27
17,21,28,421
12.28
General Public
32,33,26,241
23.05
31,52,55,195
22.49
TOTAL
140,27,29,385 100.00 140,13,69,456 100.00
m) dematerialization of shares & Liquidity:
the Company’s Shares are required to be
compulsorily traded in the Stock exchanges in
dematerialized form.
104
No. of shares
Held in dematerialized form in NSDL
Held in dematerialized form in CDSL
Physical
Total
131,63,58,855
6,49,66,403
2,14,04,127
140,27,29,385
% of
total
capital
issued
93.84
4.63
1.53
100.00
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 2019:
(iii)
(i)
(ii)
USD 200 million
NIL
0.675% USD 200 million Foreign Currency Convertible
Bonds due 2019
Principal Value of the Bonds issued
Principal Value of Bonds converted to
GDRs since issue
Principal Value of Bonds outstanding
as at 31st March 2019
Underlying Equity Shares / GDR’s
issued pursuant to conversion as per
(ii) above
Underlying Equity Shares / GDR’s that
may be issued pursuant to conversion
notices in respect of (iii) above
95,20,455
shares
USD 200 million
NIL
(iv)
(v)
these Convertible Bonds are listed on the
Singapore exchange Securities trading Limited.
o) Listing of debt Securities:
the redeemable Non-Convertible debentures
issued by the Company are listed on the
Wholesale Debt Market (WDM) of National Stock
exchange of India Limited (NSe) 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) Credit rating:
Rating
Agency
Type of
Instrument
CRISIL
Limited
Non-Convertible
Debentures
Inflation-linked
Capital- Indexed
Non-Convertible
Debentures
Rating
‘CRISIL AAA/Stable’
‘CRISIL AAA/Stable’
Commercial Paper
‘CRISIL A1+’
ICRA
Limited
Non-Convertible
Debentures
Programme
‘[ICRA] AAA
(stable)’
Commercial Paper
‘[ICRA] A1+’
r) 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.
s) address for correspondence:
Larsen & toubro Limited,
L&t House, Ballard estate,
Mumbai 400 001.
tel. No. (022) 6752 5656,
Fax No. (022) 6752 5893
Shareholder correspondence may be directed
to the Company’s Registrar and Share transfer
Agent, whose address is given below:
1. Karvy Fintech 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.karvyfintech.com
2. Karvy Fintech 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
t)
Investor Grievances:
the Company has designated an exclusive e-mail
id viz. IGrC@LarSENToUBro.CoM to enable
investors to register their complaints, if any.
u) Securities dealing Code:
pursuant to the SeBI (prohibition of Insider
trading) Regulations, 2015 (‘SeBI pIt
Regulations’), the Company had 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. 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 pIt Regulations / Code. pursuant to the
enactment of the SeBI (prohibition of Insider
trading) (Amendment) Regulations, 2018, the
Company has suitably modified the provisions of
the Code and formulated requisite policies which
are effective from 1st April 2019.
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
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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.
v) 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 assessment,
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
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.
w) 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 pIt
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.
x)
ISo 9001:2015 Certification:
the Company’s Secretarial Department which
provides secretarial services and investor services
for the Company and its Subsidiaries and
Associates is ISo 9001:2015 certified.
y) Secretarial audit as per SEBI requirements:
As stipulated by SeBI, a Qualified practicing
Company Secretary carries out Reconciliation
of Share Capital Audit to reconcile the total
admitted capital with National Securities
Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL) and
the total issued and listed capital. this audit is
carried out every quarter and the report thereon
is submitted to the Stock exchanges. the Audit
confirms that the total Listed and paid-up capital
is in agreement with the aggregate of the total
number of shares in dematerialized form and in
physical form.
the secretarial department of the Company
at Mumbai is manned by competent and
experienced professionals. the Company has
a system to review and audit its secretarial
106
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.
z)
Secretarial audit as per Companies act,
2013:
pursuant to the provisions of Section 204(1)
of the Companies Act, 2013, M/s. S. N.
Ananthasubramanian & Co., Company
Secretaries, conducts the secretarial audit of the
compliance of applicable statutory provisions and
the adherence of good corporate practices by
the Company.
pursuant to the SeBI circular no. CIR/CFD/
CMD1/27/2019 dated 8th February 2019,
the Company has obtained an annual
secretarial compliance report from M/s. S.
N. Ananthasubramanian & Co., Company
Secretaries and shall submit the same to the
Stock exchanges within the prescribed timelines.
aa) 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) as well as an external
consultant 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.
the review is placed before the Board of the
respective IC / group company. existing internal
controls are also reviewed. the audit process
includes planning the audit, discussion with
auditee before audit commencement to explain
the scope and purpose of the audit, verifying
the compliances based on the supporting
documentation, post audit meeting for
explaining the observations, etc.
bb) Group Governance Policy:
Vide its circular dated 10th May 2018, SeBI has
introduced the concept of Group Governance
Unit. the circular expects listed companies to
monitor their governance through a Governance
Committee and establishment of a strong and
effective group governance policy.
“Corporate Governance” in the Company
and its subsidiaries broadly includes strategic
supervision by the Board and its Committees,
compliance of Code of Conduct, Statutory
Compliance including compliance of Companies
Act / applicable SeBI Regulations, avoiding
conflict of interest, Risk Management, Internal
Controls and Audit.
the Company has three listed entities within
the group. each of these entities have their own
Board and Board Committees in compliance
with the Companies Act 2013 & SeBI LoDR
Regulations. the oversight of their subsidiaries
(34 subsidiaries) is as per Companies Act 2013
& SeBI LoDR Regulations. the Board Report and
the annexures of these listed companies contains
various disclosures dealing with subsidiary
companies.
each of these listed entities has one executive
Director and one Independent Director of the
Company on its Board. Any financial assistance
to the above companies or purchase/sale by the
Company of their shares, is dealt with by the
Company’s Board.
these listed entities publish their independent
Auditors’ certificate on Corporate Governance,
secretarial audit report of practising Company
Secretary and Ceo/CFo’s certificate for internal
controls for financial reporting.
Responsibility of the Company’s corporate team
in the areas of statutory compliance (including
corporate laws), Risk Management, Internal
Controls and Internal Audit, covers all unlisted
subsidiaries. the three listed entities have their
own teams to carry out these functions.
the Company has a multi –tier governance
system, where major business divisions operate
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
as Independent Companies (ICs). these ICs
are not legal entities, however, have their own
Ceo’s, Functional Heads and Independent
Boards, including external independent members
from the respective business sectors, executive
Directors of the Company and Senior executives
from the IC’s. All IC’s have independent directors
of the Company as their Board Members.
the ICs have separate internal teams to
oversee their legal and compliance functions.
All Subsidiary Companies associated with the
respective ICs are reviewed by their respective IC
Boards.
the subsidiary companies also function
independently and have separate Boards which
consists of representatives of the Company
who are senior executives of the Company,
representatives of Joint Venture partners,
representative of the Company’s Board as well
as Independent Directors as required by law. As
per law, these companies, wherever required,
also have Audit Committee, Nomination &
Remuneration Committee and CSR Committee.
Major subsidiary companies have some executive
Directors and Independent Directors of the
Company on their Board. the Key Managerial
personnel of subsidiary companies like Chief
executives, Chief Financial officers and Company
Secretaries are mostly employees of the
Company or are nominated by the Company as
per the terms of the Joint Venture Agreement.
the subsidiary companies’ performance is also
reviewed by the Company’s Board periodically
(included in quarterly results presented to the
Company’s L&t Board). F&A heads of some
of the subsidiary companies are functionally
reporting to senior executives in the Company.
thus, the overall functioning of these Subsidiary
companies is monitored by the Group directly or
through their respective IC’s.
A voluntary Secretarial Audit is conducted for
all subsidiary companies, including foreign
companies and companies which are not
108
covered under the purview of Companies Act,
2013. thus, there is a complete audit of the
compliance of applicable statutory provisions and
adherence to good corporate practices.
the Company’s Code of Conduct (Code) is
required to be adhered by all group companies
covering employees, directors, suppliers,
contractors, etc. In addition to this, the
subsidiaries set up their own vigil mechanism, if
they meet the thresholds given in the Companies
Act. the Audit Committee / Board of these
companies monitor this mechanism. the Vigil
Mechanism Framework to report breach of
code is a structured process, which encourages
and facilitates all covered, to report without
fear, wrongdoings or any unethical or improper
practice which may adversely impact the image,
credibility and/or the financials of the company,
through an appropriate forum.
the Secretarial Department of the Company has
qualified Company Secretaries (CS) with vast
experience in the field of compliance and law.
It consists of fulltime professionals dedicated to
performing corporate secretarial and subsidiary
governance duties. Qualified CS in secretarial
department monitor the compliance related to
subsidiaries under Companies Act / Rules. the
Company’s Secretarial Department develops a
broad Governance policy for the Company and
its group of subsidiaries.
the Company’s Secretarial Department is
involved in all major corporate actions of
subsidiaries like Ipo’s, raising of capital,
restructuring, major financial assistance to
subsidiaries etc.
Appropriate disclosures related to subsidiaries
are made in financial statements / directors’
report of the Company as well as its subsidiaries
as per Companies Act 2013 / applicable
SeBI Regulations and applicable Accounting
Standards. All companies are subject to Statutory
Audit and applicable Secretarial Audit.
Independent Auditor’s Certificate on Corporate Governance
TO THE MEMBERS OF
LARSEN & TOUBRO LIMITED
SVP/2019-20/7484
UDIN: 19039826AAAAAK2826
INDEPENDENT AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE
1. This certificate is issued in accordance with the terms of our engagement letter dated September 29, 2018.
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, 2019, 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 from time to time.
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, 2019.
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 10, 2019
SVP/2019-20/7484
UDIN: 19039826AAAAAK2826
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/ W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
109
ANNExURE TO THE BOARD REPORT ANNUAL REPORT 2018-19
Independent Auditor’s Certificate in respect of the implementation of
Employee Stock Option Schemes of the Company
TO THE MEMBERS OF
LARSEN & TOUBRO LIMITED
SVP/2019-20/7485
UDIN: 19039826AAAAAL5806
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 29, 2018.
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. 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, 2019 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.
Implementation of the Schemes in accordance with the provisions of the Regulations and Resolutions and
compilation of the relevant information for financial reporting is the responsibility of the Management of the
Company. This includes the design, implementation and maintenance of internal control necessary to ensure
accurate compilation of information necessary of the purpose and maintenance of all accounting and other relevant
supporting records and documents and applying an appropriate basis of preparation of the relevant information for
financial reporting; and making estimates that are reasonable in the circumstances.
AUDITOR’S RESPONSIBILITy
4.
It is our responsibility to certify whether the Company has complied with the applicable provisions of the
Regulations and Resolutions during the year ended March 31, 2019, in implementing the Schemes on the basis of
information compiled or collated by Management and the accounting and other relevant supporting records and
documents provided to us for our examination.
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.
110
CRITERIA AND SCOPE
7. The criteria against which the information is evaluated are the following:
a)
the Schemes;
b)
the Regulations;
c)
the Resolutions; and
d) Written representation provided by the Management.
OPINION
8. Based on our examination of the accounting and other relevant supporting records and documents maintained
by the Company as aforesaid, and according to the information and explanations given to us, in our opinion, the
Company has complied with the applicable provisions of the Regulations and Resolutions in implementing the
Schemes during the year ended March 31, 2019.
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. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
Mumbai, May 10, 2019
SVP/2019-20/7485
UDIN: 19039826AAAAAL5806
111
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
CErTIFICaTE BY a CoMPaNY SECrETarY IN PraCTICE
[pursuant to clause (i) of point (10) of para C of Schedule V of Securities and exchange Board of India
(Listing obligations and Disclosure Requirements) Regulations, 2015]
We have examined the following documents:
i) Declaration of non-disqualification as required under Section 164 of Companies Act, 2013 (‘the Act’);
ii) Disclosure of concern or interests as required under Section 184 of the Act;
(hereinafter referred to as ‘relevant documents’),
As submitted by the Directors of Larsen and Toubro Limited (‘the Company’) bearing CIN: L99999MH1946PLC004768
and having its registered office at L & t House, Ballard estate, Mumbai 400001, to the Board of Directors of the
Company (‘the Board’) for the Financial Year 2019-20. We have considered non-disqualification to include non-
debarment by Regulatory / Statutory Authorities.
It is the responsibility of Directors to submit relevant documents with complete and accurate information in accordance
with the provisions of the Act.
Based on our examination of relevant documents made available to us by the Company and such other verifications
carried out by us as deemed necessary and to the extent possible, in our opinion and to the best of our information and
knowledge and according to the explanations provided by the Company, its officers and authorized representatives,
we certify that as on date of this Certificate, none of the Directors on the Board of the Company, as listed hereunder,
have been debarred or disqualified from being appointed or continuing as Directors of the Company by Securities and
exchange Board of India/ Ministry of Corporate Affairs or any such statutory authority.
Name of director
Sr.
No.
director Identification Number
(dIN)
Mr. Anilkumar Manibhai Naik
Mr. Sekharipuram Narayanan Subrahmanyan
Mr. Ramamurthi Shankar Raman
Mr. Shailendra Narain Roy
Mr. Dip Kishore Sen
Mr. M. V. Satish
Mr. Jayant Damodar patil
Mr. Mukund Manohar Chitale
Mr. Subodh Kumar Bhargava
Mr. Meleveetil Damodaran
Mr. Vikram Singh Mehta
Mr. Adil Siraj Zainulbhai
Mr. Akhilesh Krishna Gupta
Mrs. Sunita Sharma
Mr. thomas Mathew t.
Mr. Ajay Shankar
Mr. Subramanian Sarma
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
112
00001514
02255382
00019798
02144836
03554707
06393156
01252184
00101004
00035672
02106990
00041197
06646490
00359325
02949529
00130282
01800443
00554221
Sr.
No.
18
19
20
21
22
Name of director
Mrs. Naina Lal Kidwai
Mr. Sanjeev Aga
Mr. N. Kumar
Mr. Arvind Gupta
Mr. Hemant Bhargava
director Identification Number
(dIN)
00017806
00022065
00007848
00090360
01922717
this Certificate has been issued at the request of the Company to make disclosure in its Corporate Governance Report of
the Financial Year ended 31st March, 2019.
For S. N. ananthasubramanian & Co.
Company Secretaries
Firm Registration No. p1991MH040400
S. N. ananthasubramanian
partner
FCS : 4206
Cop No. : 1774
thane, May 2, 2019
113
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
To the Board of directors of Larsen & Toubro Limited
Dear Sirs,
Sub: CEo / CFo Certificate
{Issue in accordance with provisions of regulation 17(8) of SEBI (Listing obligations & disclosure
requirements) regulations, 2015}
We have reviewed the consolidated financial statements, read with the consolidated cash flow statement of Larsen &
toubro Limited for the year ended 31st March 2019 and that to the best of our knowledge and belief, we state that;
(a)
(i) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that may be misleading;
(ii) these statements present a true and fair view of the Company’s affairs and are in compliance with current
accounting standards, applicable laws and regulations.
(b) there are, to the best of our knowledge and belief, no transactions entered into by the Company during the year
which are fraudulent, illegal or in violation of the Company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting. We have evaluated
the effectiveness of internal control systems of the Company and have disclosed to the Auditors and the Audit
Committee, deficiencies, if any, in the design or operation of such internal controls of which we are aware and steps
taken or proposed 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 except as disclosed in note
I(i) and note 65 to the consolidated financial statements; and
(ii) that there were no instances of significant fraud of which we have become aware.
Yours sincerely,
r. Shankar raman
Chief Financial officer &
Whole-time Director
S. N. Subrahmanyan
Chief executive officer &
Managing Director
place: Mumbai
Date: May 10, 2019
114
annexure ‘C’ to the Board report
CSr aCTIVITIES For 2018-19
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
zz
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 .
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.
zz
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. Vikram Singh Mehta Chairman
2. Mr. R. Shankar Raman Member
3. Mr D. K. Sen
Member
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 6073.54 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 121.47 Cr. as CSR expenditure during the financial
year 2018-19.
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 121.47
Cr during the financial year 2018-19. As against
this mandate, the Company spent R 121.68 Cr
towards various activities for the benefit of the
community. this exceeds the required spend
by R 0.21 Cr. the CSR spend for FY 2018-19 is
2.003% of net profit.
115
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
b. amount unspent, if any
Nil
c. Manner in which the amount was spent in
the financial year is detailed below:
As per table enclosed
6. reasons for not spending the amount during the
financial year.
NA
7. CSr Committee responsibility Statement:
the CSR Committee hereby affirms that:
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
zz
zz
committees formed for implementation of the
CSR policy;
the Company has constituted a mechanism to
monitor and report on the progress of the CSR
programs;
the activities undertaken by the Company as
well as the implementation and monitoring
mechanisms are in compliance with its CSR
objectives and CSR policy.
S. N. Subrahmanyan
Vikram Singh Mehta
Chief executive officer &
Managing Director
DIN: 02255382
Chairman – CSR
Committee
DIN: 00041197
116
S. No. CSR Project or activity identified
1
2
3
School support programme-
Enhancing the quality of
education and learning levels
in government schools/
schools running for children
from underprivileged
backgrounds (teachers
training, play way methods,
support for English and
Mathematics, capacity
building, promoting extra
curricular activities)
Community based
programmes- Study Centres/
balwadis/anganwadis run
for developing pre school
foundation, promoting healthy
and hygienic environment for
education, developing the
learning levels of children at
par with their mainstream
grades and providing
nutritional supplements
Providing infrastructure
support for education
(drinking water and sanitation
facilities, renovation of
classrooms, water proofing
of school buildings, providing
furniture and light fittings,
donation of computers,
up gradation of libraries,
playground development,
distribution of solar lamps)
Sector in
which the
project is
covered
Education
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Gujarat (Hazira, Ahmedabad,
Ranoli), Karnataka (Bangalore,
Mysore), Maharashtra (Powai,
Mumbai), New Delhi, Orissa
(Raigada, Bhubaneswar),
Rajasthan (Jaipur), Tamil Nadu
(Coimbatore, Chennai), West
Bengal (Kolkata)
Amount
outlay
(budget)
project or
programe
wise
(R In Lakh)
251.182
Overhead
(R In
Lakh)
Direct
expenditure
on projects
or programs
(R In Lakh)
Cumulative
expenditure
upto to the
reporting
period
(R In Lakh)
Amount spent:
direct or through
implementing
agency
234.830
11.701
246.531
Implementing
agency
Education
Karnataka (Mysore), Maharashtra
(Powai, Mumbai, Mahape), Tamil
Nadu (Chennai, Coimbatore)
300.600
283.600
14.131
297.731
Implementing
agency
1,300.970
1,209.948
60.291
1,270.239 Direct
Education
Andhra Pradesh (Hyderabad,
Nagarnar, Vizag), Assam
(Guwahati), Bihar (Bettiah,
Muzaffarpur), Chandigarh, Goa
(Mandovi), Gujarat (Ahmedabad,
Botad, Dahod, Hazira, Mehsana,
Sarodi, Surat, Unchamala,
Vadodara), Himachal Pradesh
(Lahaul), Jharkhand (Jamshedpur),
Karnataka (Bangalore,
Mysore, Nandawadagi), Kerala
(Thrissur), Madhya Pradesh
(Alirajpur, Bhopal, Kalisindh,
Khargone, Malwa), Maharashtra
(Ahmednagar, Aurangabad,
Mumbai, Nagpur, Talegaon,
Thane), New Delhi, Orissa
(Berhampur, Kalahandi, Kalampur,
Koksara, Raigada, Rourkela,
Sundergarh), Puducherry, Punjab
(Mohali), Rajasthan (Banswara,
Ganganagar, Gangapur,
Jhunjhunu, Nagaur, Ratangarh),
Tamil Nadu (Chennai, Dindigul,
Erode, Kalpakkam, Kanchipuram),
Telangana (Hyderabad,
Karimnagar, Khammam), Uttar
Pradesh (Ghazipur, Hirapur),
West Bengal (Kolkata, Purulia,
Rampurhat)
117
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
S. No. CSR Project or activity identified
Sector in
which the
project is
covered
Education
Projects or Programes
1. Local Area or other
2. Specify the state and district
where projects or program was
undertaken
Gujarat (Chondha, Hazira),
Haryana (Faridabad), Karnataka
(Mysore), Maharashtra (Mahape,
Mumbai), New Delhi, Orissa
(Kansbahal), Tamil Nadu (Chennai,
Coimbatore)
Education
Education
Gujarat (Hazira, Vadodara),
Haryana (Faridabad), Himachal
Pradesh (Kasauli), Maharashtra
(Mahape, Pune, Talegaon),
Rajasthan (Kota), Tamil Nadu
(Chennai)
Gujarat (Hazira), Maharashtra
(Pune)
Amount
outlay
(budget)
project or
programe
wise
(R In Lakh)
933.680
Overhead
(R In
Lakh)
Direct
expenditure
on projects
or programs
(R In Lakh)
Cumulative
expenditure
upto to the
reporting
period
(R In Lakh)
Amount spent:
direct or through
implementing
agency
876.722
43.686
920.408
Implementing
agency
157.614
148.393
7.394
155.787 Direct
36.794
34.867
1.737
36.604 Direct
Health
Gujarat (Surat), Maharashtra
(Mumbai, Thane, Ahmednagar)
682.520
622.933
31.040
653.973 Direct
122.452
114.403
5.700
120.103 Direct
48.505
46.121
2.298
48.419
10.622
9.560
0.476
10.036
Implementing
agency
Implementing
agency
Andhra Pradesh (Vizag),
Chhattisgarh (Raipur), Gujarat
(Vadodara), Maharashtra
(Nagpur), Orissa (Bhubaneswar,
Raigada), Rajasthan (Jaipur)
Andhra Pradesh (Vizag), Gujarat
(Hazira), Kerala (Kannur), New
Delhi, Tamil Nadu (Dindigul)
Chhattisgarh (Raipur), Gujarat
(Ahmedabad, Vadodara),
Jharkhand (Jamshedpur),
Karnataka (Bangalore), Kerala
(Kochi), Madhya Pradesh (Bhopal),
Maharashtra (Pune), New
Delhi, Orissa (Bhubaneswar),
Rajasthan (Jaipur), Tamil Nadu
(Chennai, Coimbatore), Telangana
(Hyderabad), Uttar Pradesh
(Lucknow), West Bengal (Kolkata)
Providing infrastructure
support for education
(drinking water and sanitation
facilities, renovation of
classrooms, water proofing
of school buildings, providing
furniture and light fittings,
donation of computers,
up gradation of libraries,
playground development,
distribution of solar lamps)
Providing educational aids to
children- books, stationary,
sports equipment, uniforms,
school bags, shoes, woolen
clothes, raincoats etc.
Awareness programmes
(health and hygiene, road
safety, career guidance,
personality development)
Community Health Centres
(running multi-specialty center
offering diagnostic services
including family planning,
gynecological, pediatric,
immunization, chest & TB,
ophthalmic consultation,
dialysis services, HIV/
AIDS awareness, detection,
treatment, counseling services
at free / nominal cost to the
community)
Health Camps (general, eye,
dental, vaccinations) and
health awareness
Health
Health Camps (general, eye,
dental, vaccinations) and
health awareness
Blood donation camps
Health
Health
4
5
6
7
8
9
10
118
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
Infrastructure support to
medical centres
Health
Infrastructure support to
medical centres
Health
Orissa (Raigada), Tamil Nadu
(Chennai, Vanur), Telangana
(Mahadevpur), Uttar Pradesh
(Lucknow), Uttarakhand
(Rudraprayag)
Gujarat (Hazira), Haryana
(Faridabad), Maharashtra
(Mumbai), Tamil Nadu (Chennai,
Kanchipuram), West Bengal
(Kolkata)
Amount
outlay
(budget)
project or
programe
wise
(R In Lakh)
38.649
Overhead
(R In
Lakh)
Direct
expenditure
on projects
or programs
(R In Lakh)
Cumulative
expenditure
upto to the
reporting
period
(R In Lakh)
Amount spent:
direct or through
implementing
agency
22.135
1.102
23.237 Direct
547.470
519.831
25.903
545.734
Implementing
agency
Construction Skill Training
Institute - CSTI
Skill Building Andhra Pradesh (Amaravati),
3,945.874
3,751.983 186.960
3,938.943 Direct
Gujarat (Ahmedabad), Karnataka
(Bangalore), Maharashtra (Panvel,
Nagpur), Orissa (Cuttack), Tamil
Nadu (Kanchipuram, Pulicat),
Telangana (Hyderabad, Jadcherla),
Uttar Pradesh (Pilkhuwa), West
Bengal (Kolkata)
14
Vocational and Computer
training for youth
Skill Building Gujarat (Hazira), Maharashtra
35.217
33.483
1.668
35.151 Direct
(Nagpur), Uttar Pradesh
(Lucknow), West Bengal (Kolkata)
15
Vocational Training
Skill Building Andhra Pradesh (Vizag), Gujarat
244.363
232.160
11.568
243.728 Direct
(Vadodara), Madhya Pradesh
(Bhopal, Malwa), Maharashtra
(Pune), Orissa (Raigada),
Rajasthan (Chhabra, Jaipur), Tamil
Nadu (Kanchipuram)
Vocational Training
Skill Building Maharashtra (Ahmednagar, Pune),
98.600
93.727
4.670
98.397
Women empowerment
through vocational training
Skill building for differently
abled (Neev)
New Delhi, West Bengal (Kolkata)
Skill Building Gujarat (Hazira, Ahmedabad),
Orissa (Raigada), West Bengal
(Kolkata)
Skill Building Andhra Pradesh (Vizag),
181.853
156.080
7.777
163.857
42.856
39.939
1.990
41.929 Direct
Implementing
agency
Implementing
agency
Jharkhand (Jamshedpur), Kerala
(Kochi), Maharashtra (Nagpur,
Pune), Tamil Nadu (Chennai,
Coimbatore), Telangana
(Hyderabad), West Bengal
(Kolkata)
Andhra Pradesh (Vizag), Bihar
(Madhepura, Patna), Gujarat
(Gandhinagar), Jharkhand
(Ranchi), Maharashtra (Mumbai),
Rajasthan (Hindaun City), Uttar
Pradesh (Varanasi)
Maharashtra (Ahmednagar),
Rajasthan (Rajsamand), Tamil
Nadu (Coimbatore, Vellore)
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
Water &
Sanitation,
Health,
Education,
Skill Building
Environment Gujarat (Vadodara), Maharashtra
(Mahape, Mumbai, Nashik, Powai,
Talegaon), New Delhi
372.537
348.136
17.347
365.483 Direct
2,589.480
2,335.884 131.028
2,466.912
Implementing
agency
217.658
183.370
9.137
192.507 Direct
119
11
12
13
16
17
18
19
20
21
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
S. No. CSR Project or activity identified
22
Tree plantation and
environment protection
23
Awareness programmes
- environment, energy
conservation,road safety
24
Employee Volunteering
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
Environment Andhra Pradesh (Vizag),
Chandigarh, Gujarat (Hazira),
Jharkhand (Jamshedpur), Madhya
Pradesh (Bhopal), Maharashtra
(Talegaon), Rajasthan (Jaipur),
Tamil Nadu (Chennai, Coimbatore)
Environment Andhra Pradesh (Vizag), Gujarat
Employee
volunteers
(Vadodara), Maharashtra
(Ahmednagar), Tamil Nadu
(Chennai, Nagapattinam)
Andhra Pradesh (Vizag), Gujarat
(Hazira, Ranoli, Vadodara),
Karnataka (Mysore), Maharashtra
(Mumbai), New Delhi, Tamil Nadu
(Chennai, Coimbatore)
Amount
outlay
(budget)
project or
programe
wise
(R In Lakh)
115.164
Overhead
(R In
Lakh)
Direct
expenditure
on projects
or programs
(R In Lakh)
Cumulative
expenditure
upto to the
reporting
period
(R In Lakh)
Amount spent:
direct or through
implementing
agency
108.383
5.400
113.783 Direct
64.768
61.684
3.073
64.757
Implementing
agency
122.245
108.632
5.413
114.045 Direct
Total
12,461.673
11,576.804
591.490
12,168.294
120
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 2018-19, the percentage increase in remuneration of each Director & Company
Secretary during the financial year 2018-19 and comparison of the remuneration of each of the Key
Managerial Personnel against the performance of the company:
Name of the Director/
KMP
Designation
A. M. Naik
Group Chairman
S. N. Subrahmanyan
R. Shankar Raman
Shailendra Roy
D. K. Sen
M. V. Satish
J. D. Patil
Chief Executive Officer &
Managing Director
Whole-time Director & Chief
Financial Officer
Whole-time Director & Senior
Executive Vice President
(Power, Heavy Engineering &
Defence)
Whole-time Director & Senior
Executive Vice President
(Infrastructure)
Whole-time Director & Senior
Executive Vice President
(Buildings, Minerals & Metals)
Whole-time Director & Senior
Executive Vice President
(Defence)
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
Ajay Shankar
Independent Director
Subramanian Sarma
Non- Executive Director
2018-19
Total
Remuneration
Ratio of remuneration
of director to the
median remuneration $
Percentage
increase in
Remuneration
v crore
8.155*
48.454
25.075
14.121
6.998
9.383
8.223
0.507
0.653
0.489
0.444
0.059
0.476
0.262
0.033
0.430
0.382
NIL
100.52
597.28
309.10
174.08
101.93
52.36
45.59
16.95
86.26
(13.19)
115.65
27.11
101.37
108.16
6.24
8.04
6.03
5.46
8.15
5.86
3.22
0.41
5.30
4.70
-
24.45
30.50
63.08
60.10
(82.92)
50.95
34.10
(45.17)
25.49
13.88
-
121
ANNexuRe TO THE BOARD REPORT ANNUAL REPORT 2018-19
Name of the Director/
KMP
Designation
Naina Lal Kidwai
Independent Director
Sanjeev Aga
Independent Director
Narayanan Kumar
Independent Director
Arvind Gupta ^
Nominee of SUUTI
Hemant Bhargava #^
Nominee of Life Insurance
Corporate of India
N. Hariharan
Company Secretary
2018-19
Total
Remuneration
Ratio of remuneration
of director to the
median remuneration $
Percentage
increase in
Remuneration
v crore
0.262
0.376
0.397
0.233
0.037
1.228
3.22
4.63
4.89
2.86
0.53
34.10
18.36
103.33
380.75
**
15.14
4.03
$ 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 2018-19.
* Does not include the perquisite value related to ESOPs exercised during the year in respect of stock options
granted over the past several years by Larsen & Toubro Infotech Limited and L&T Technology Services Limited of
R 213.39 crore.
^ Part of the remuneration has been paid to the financial institution he/she represents.
** Details not given as Mr. Hemant Bhargava was a director only from 28th May 2018
@ Ceased to be a Director w.e.f. 2nd May 2018
# Appointed as a Director w.e.f. 28th May 2018
B. Percentage increase in the median remuneration of all employees in the financial year 2018-19:
The median remuneration of employees of the Company during the financial year was R 8.11 lakh. In the financial
year, there was an increase of 2% in the median remuneration of employees.
C. Number of permanent employees on the rolls of Company as on 31st March 2019:
There were 44,332 permanent employees on the rolls of Company as on 31st March 2019.
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
2018-19 was 5.45% whereas there is decline in the managerial remuneration by 16.20% because managerial
remuneration in financial year 2017-18 included perquisite value of R 47.98 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 2017-18 by a Key Managerial Personnel. Adjusted for the above, the increase in managerial
remuneration works out to 23.34% which is in line with growth of 23.95% in Profit after Tax for the year 2018-19
as the variable component of managerial remuneration is linked to growth in Profit after Tax.
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.
122
annexure ‘E’ to the Board report
Form No. Mr-3
SECrETarIaL aUdIT rEPorT
For THE FINaNCIaL YEar ENdEd 31ST MarCH 2019
[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 2019, 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,
2019 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;
iii. the Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
iv. Foreign exchange Management Act, 1999 and
the rules and regulations made thereunder to the
extent of Foreign Direct Investment, overseas Direct
Investment and external Commercial Borrowings;
v.
the following Regulations and Guidelines prescribed
under the Securities and exchange Board of India
Act, 1992 (‘SeBI Act’):
a. the Securities and exchange Board of India
(Substantial Acquisition of Shares and takeovers)
Regulations, 2011;
b. the Securities and exchange Board of India
(prohibition of Insider trading) Regulations,
2015;
c. the Securities and exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2009 (upto 10th November, 2018)
and Securities and exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2018 (with effect from 11th
November, 2018) - Not applicable as there
was no reportable event during the financial
year under review;
d. the Securities and exchange Board of India
(Share Based employee Benefits) Regulations,
2014;
e. the Securities and exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
f.
the Securities and exchange Board of India
(Registrars to an Issue and Share transfer Agents)
Regulations, 1993 regarding the Companies Act
and dealing with client - Not applicable as the
Company is not registered as registrar to
Issue and Share Transfer agent during the
financial year under review;
g. the Securities and exchange Board of India
(Delisting of equity Shares) Regulations,
2009 - Not applicable as the Company has
not delisted/ proposed to delist its equity
shares from any Stock Exchange during the
financial year under review;
123
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
h. the Securities and exchange Board of India
zz
(Buyback of Securities) Regulations, 1998 (up to
10th September 2018) and the Securities and
exchange Board of India (Buyback of Securities)
Regulations, 2018 (with effect from 11th
September 2018).
vi. the Company has informed that there are no laws
which are specifically applicable to the Company.
zz
We have also examined compliance with the applicable
provisions of the following:
(i) Secretarial Standards with regard to Meetings of
Board of Directors (SS-1) and General Meetings (SS-2)
issued by the Institute of Company Secretaries of
India;
(ii) the Securities and exchange Board of India
(Listing obligations and Disclosure Requirements),
Regulations, 2015 (LoDR Regulations) and Listing
Agreements entered into by the Company with
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
except the following:
the Company had at its Board Meeting held on 26th
March, 2019 enabled a proposal for raising additional
long term borrowings through issue of secured /
unsecured debentures / bonds / terms loans including
hybrid instruments that do not dilute shareholders voting
rights up to an amount not exceeding R 7,000 crore
(or USD 1 billion, which is higher), in respect of which
applicable provisions of SeBI (Listing obligations and
Disclosure Requirements) Regulations, 2015 have not
been duly complied with, as there was an inadvertent
delay in intimating the stock exchanges.
We further report that:-
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;
124
Adequate notice is given to all Directors of the
schedule of the Board and Committee Meetings and
Agenda & detailed notes on agenda were sent at
least seven days in advance except for the meetings
where consent of the Directors was obtained for
receiving notice and agenda and notes to agenda less
than seven days before the meeting;
there exists a system for seeking and obtaining
further information and clarifications on the
agenda items before the meeting for meaningful
participation at the meeting;
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
above referred laws, rules, regulations, guidelines,
standards etc:
zz
zz
Redeemed Non-Convertible debentures aggregating
to R 400 crore on 7th January 2019;
the Members have pursuant to Section 68 of the Act
and applicable SeBI Regulations approved by way
of Special Resolution on 1st october 2018 through
postal ballot, a proposal to buyback equity shares of
the Company of up to 25% of aggregate of paid up
capital and free reserves of the Company, by utilizing
an amount not exceeding R 9000 crore. SeBI vide its
letter SeBI/Ho/CFD/DCR1/oW/p/2019/2008/1 dated
18th January 2019 advised the Company not to
proceed with the aforesaid proposal of buyback of
shares.
zz
the Company entered into a Share purchase
Agreement to acquire 20.15% of voting share capital
of Mindtree Limited (target Company) and an order
to acquire up to 15% of voting share capital of the
target Company was placed with the broker on 18th
March, 2019 thereby triggering compliance with SeBI
(Substantial Acquisition of Shares and takeovers)
Regulations, 2011. Consequently, the Company
has filed Draft open offer letter dated 2nd April
2019 with SeBI to acquire further 31% of the voting
share capital of the target company, such that the
Company holds up to 66.15% of the voting share
capital of the target company.
For S. N. aNaNTHaSUBraMaNIaN & Co.
Company Secretaries
Firm Registration No p1991MH040400
S. N. aNaNTHaSUBraMaNIaN
partner
FCS
: 4206
Cop No. : 1774
this Report is to be read with our letter of even date
which is annexed as Annexure A and forms an integral
part of this report.
Date : May 2, 2019
place : thane
annexure-‘a’
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, 2019, 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 : 4206
Cop No. : 1774
Date : May 2, 2019
place : thane
125
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
annexure ‘F’ to the Board report
ForM No. MGT-9
EXTraCT oF aNNUaL rETUrN
as on the financial year ended on March 31, 2019
[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 and transfer Agent, if any
Karvy Fintech 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 #
14.78
28.15
37.12
# on the basis of gross turnover
III. ParTICULarS oF HoLdING, SUBSIdIarY aNd aSSoCIaTE CoMPaNIES –
Sl. No Name of the
Address of the Company
CIN/GLN
Company
AHMEDABAD-MALIYA
TOLLWAY LIMITED
BHILAI POWER SUPPLY
COMPANY LIMITED
1
2
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
9TH FLOOR, AMBADEEP BUILDING,
14, KASTURBA GANDHI MARG,
CONNAUGHT PLACE, NEW
DELHI-110001
126
U45203TN2008PLC069211
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
97.45 Section 2(87)(ii)
U74899DL1995PLC070704
SUBSIDIARY
99.90 Section 2(87)(ii)
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Sl. No Name of the
Address of the Company
CIN/GLN
U70101TN2008PTC068877
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
Company
CHENNAI VISION
DEVELOPERS PRIVATE
LIMITED
DEVIHALLI HASSAN
TOLLWAY LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
ESENCIA
TECHNOLOGIES INC
2350 MISSION COLLEGE BLVD
SUITE 490, SANTA CLARA, CA
95054, USA
ESENCIA
TECHNOLOGIES INDIA
PRIVATE LIMITED
3RD FLOOR, 26TH, 5TH BLOCK,
5TH CROSS, KORAMANAGALA,
BANGALORE 560095
GRAPHENE
SEMICONDUCTORS
SERVICES PRIVATE
LIMITED
#1154, 10TH B CROSS ,
YELAHANKA NEW TOWN ,
BANGALORE,
KARNATAKA -560064
U45203TN2010PLC075491
SUBSIDIARY
97.45 Section 2(87)(ii)
0479598-9
SUBSIDIARY
78.88 Section 2(87)(ii)
U74140KA2011PTC061480
SUBSIDIARY
78.88 Section 2(87)(ii)
U74900KA2013PTC068574
SUBSIDIARY
78.88 Section 2(87)(ii)
GRAPHENE
SOLUTIONS PTE LTD
30 CECIL STREET, #19-08,
PRUDENTIAL TOWER, SINGAPORE
201524512K
SUBSIDIARY
78.88 Section 2(87)(ii)
GRAPHENE
SOLUTIONS SDN.BHD
GRAPHENE
SOLUTIONS TAIWAN
LTD.
HENIKWON
CORPORATION SDN.
BHD
C-2-20, SME1, SME
TECHNOPRENEUR CENTRE, 2270,
JALAN USAHAWAN 2, CYBER 6 ,
63000 CYBERJAYA, SELANGOR,
MALAYSIA
6F, NO. 378, CHANGCHUN ROAD,
ZHONGSHAN DISTRICT, TAIPEI
CITY 104, TAIWAN (R.O.C)
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
KRISHNAGIRI THOPUR
TOLL ROAD LIMITED
KUDGI TRANSMISSION
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
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM,
CHENNAI - 600089
L&T - GULF PRIVATE
LIMITED
L&T ARUNACHAL
HYDROPOWER
LIMITED
L&T AVIATION
SERVICES PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
1231163-D
SUBSIDIARY
78.88 Section 2(87)(ii)
50787314
SUBSIDIARY
78.88 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)
U45203TN2005PLC057930
SUBSIDIARY
97.45 Section 2(87)(ii)
U40106TN2012GOI111122
SUBSIDIARY
97.45 Section 2(87)(ii)
U74140MH2008PTC177765
SUBSIDIARY
50.0002 Section 2(87)(ii)
U40300MH2010PLC204778
SUBSIDIARY
100.00 Section 2(87)(ii)
U62100MH2009PTC196917
SUBSIDIARY
100.00 Section 2(87)(ii)
127
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Sl. No Name of the
Address of the Company
CIN/GLN
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Company
L&T BPP TOLLWAY
LIMITED
L&T CAPITAL
COMPANY LIMITED
L&T CAPITAL
MARKETS LIMITED
L&T CAPITAL
MARKETS(MIDDLE
EAST) LIMITED
L&T CASSIDIAN
LIMITED#
L&T CHENNAI TADA
TOLLWAY LIMITED
L&T CONSTRUCTION
EQUIPMENT LIMITED
L&T CONSTRUCTION
MACHINERY LIMITED
L&T DECCAN
TOLLWAYS LIMITED
L&T ELECTRICAL &
AUTOMATION FZE
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.
501,502, LEVEL 5, LIBERTY
HOUSE, DUBAI INTERNATIONAL
FINANCIAL CENTRE,
DUBAI - 506895 UAE
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
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 FINANCIAL
CONSULTANTS
LIMITED
L&T GLOBAL
HOLDINGS LIMITED
BRINDAVAN, PLOT NO. 177,
C.S.T. ROAD, KALINA,SANTACRUZ
(EAST),MUMBAI - 400 098,
MAHARASHTRA, INDIA.
UNIT 7, LEVEL 3, GATE
PRECINCT, BUILDING 2, DUBAI
INTERNATIONAL FINANCIAL
CENTRE, P.O BOX 63671, DUBAI,
UAE
128
U45203TN2011PLC080786
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
97.45 Section 2(87)(ii)
U67190MH2000PLC125653
SUBSIDIARY
100.00 Section 2(87)(ii)
U67190MH2013PLC240261
SUBSIDIARY
63.91 Section 2(87)(ii)
2908
SUBSIDIARY
63.91 Section 2(87)(ii)
U29253MH2011PLC216258
SUBSIDIARY
100.00 Section 2(87)(ii)
U45309TN2008PLC066938
SUBSIDIARY
97.45 Section 2(87)(ii)
U29119MH1997PLC109700
SUBSIDIARY
100.00 Section 2(87)(ii)
U29248MH2018PLC318481
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2011PLC083661
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
63.91 Section 2(87)(ii)
U65910WB1993FLC060810
SUBSIDIARY
63.91 Section 2(87)(ii)
U65100MH2011PLC299024
SUBSIDIARY
63.91 Section 2(87)(ii)
CL2106
SUBSIDIARY
100.00 Section 2(87)(ii)
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Sl. No Name of the
Address of the Company
CIN/GLN
U45203TN2008PLC069210
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
47.75 Section 2(87)(ii)
Company
L&T HALOL-SHAMLAJI
TOLLWAY LIMITED
L&T HIMACHAL
HYDROPOWER
LIMITED
L&T HOUSING
FINANCE LIMITED
L&T HOWDEN PRIVATE
LIMITED
L&T HYDROCARBON
CASPIAN LLC
L&T HYDROCARBON
ENGINEERING
LIMITED
L&T HYDROCARBON
INTERNATIONAL FZE
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
AGHA NEMATULLA STREET 224,
NARIMANOV DISTRICT BAKU CITY,
AZERBAIJAN
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
U40102HP2010PLC031697
SUBSIDIARY
100.00 Section 2(87)(ii)
U45200MH1994PLC259630
SUBSIDIARY
63.91 Section 2(87)(ii)
U31401MH2010PTC204403
SUBSIDIARY
50.10 Section 2(87)(ii)
1503665631
SUBSIDIARY
50.00 Section 2(87)(ii)
U11200MH2009PLC191426
SUBSIDIARY
100.00 Section 2(87)(ii)
WAREHOUSE NO. LV 38-B,
HAMRIYAH FREE ZONE, SHARJAH,
UAE
17744
SUBSIDIARY
100.00 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 INFORMATION
TECHNOLOGY SPAIN
SOCIEDAD LIMITADA
PASEO DE LA CASTELLANA
81 STREET, FLOOR 11, 28046,
MADRID, SPAIN
L&T INFOTECH
FINANCIAL SERVICES
TECHNOLOGIES INC
2810, MATHESON BLVD EAST
SUITE 500, MISSISSAUGA, ONL4W
4X7 CANADA
L&T INFOTECH S. DE.
RL.C.V
L&T INFRA
CONTRACTORS
PRIVATE COMPANY
LIMITED
L&T INFRA DEBT
FUND LIMITED
BOSQUE DE CIRUELOS 180, SUITE
PP 101, COL.BOSQUES DE LAS
LOMAS, 11700 MEXICO CITY,
MEXICO
L&T HOUSE, BALLARD ESTATE, N
M MARG, MUMBAI 400001
PLOT NO. 177, CTS 6970,
6971,VIDYANAGARI MARG, C.S.T.
ROAD, KALINA,SANTACRUZ
(EAST), MUMBAI - 400098
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
L&T INFRA
INVESTMENT
PARTNERS TRUSTEE
PRIVATE LIMITED
PLOT NO. 177, VIDYANAGARI
MARG, C.S.T. ROAD,
KALINA,SANTACRUZ (EAST),
MUMBAI - 400098
L&T INFRASTRUCTURE
DEVELOPMENT
PROJECTS LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
310000400714060 (JIADING)
SUBSIDIARY
74.80 Section 2(87)(ii)
Tome 34332
SUBSIDIARY
74.80 Section 2(87)(ii)
770556-5
SUBSIDIARY
74.80 Section 2(87)(ii)
N-2017020633
SUBSIDIARY
74.80 Section 2(87)(ii)
U45400MH2017PTC292586
SUBSIDIARY
100.00 Section 2(87)(ii)
L67100MH2013PLC241104
SUBSIDIARY
63.91 Section 2(87)(ii)
U67190MH2011PTC218046
SUBSIDIARY
63.91 Section 2(87)(ii)
U65900MH2011PTC220896
SUBSIDIARY
63.91 Section 2(87)(ii)
U65993TN2001PLC046691
SUBSIDIARY
97.45 Section 2(87)(ii)
129
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Sl. No Name of the
Address of the Company
CIN/GLN
Company
L&T INFRASTRUCTURE
ENGINEERING
LIMITED
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
L&T KRISHNAGIRI
WALAJAHPET
TOLLWAY LIMITED
L&T MBDA MISSILE
SYSTEMS LIMITED
L&T METRO RAIL
(HYDERABAD)
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
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
52
53
54
55
56
57
58
59
60
61
62
63
L&T POWER
DEVELOPMENT
LIMITED
64
L&T POWER LIMITED
65
L&T RAJKOT-VADINAR
TOLLWAY LIMITED
66
L&T REALTY FZE
67
L&T REALTY LIMITED
68
L&T SAMAKHIALI
GANDHIDHAM
TOLLWAY LIMITED
130
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
U74140TN1998PLC039864
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
100.00 Section 2(87)(ii)
U67190TN2006PLC059527
SUBSIDIARY
63.91 Section 2(87)(ii)
U45203TN2006PLC058735
SUBSIDIARY
97.45 Section 2(87)(ii)
U65991MH1996PLC229572
SUBSIDIARY
63.91 Section 2(87)(ii)
U29253MH2010PTC210325
SUBSIDIARY
51.00 Section 2(87)(ii)
U45203TN2010PLC075446
SUBSIDIARY
97.45 Section 2(87)(ii)
U29308MH2017PLC293402
SUBSIDIARY
51.00 Section 2(87)(i) &
2(87)(ii)
U45300TG2010PLC070121
SUBSIDIARY
100.00 Section 2(87)(ii)
1001910
SUBSIDIARY
70.00 Section 2(87)(ii)
U65993MH1996PLC211198
SUBSIDIARY
63.91 Section 2(87)(ii)
601723
SUBSIDIARY
100.00 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)
Sl. No Name of the
Address of the Company
CIN/GLN
U45206TN2013PLC093395
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
97.45 Section 2(87)(ii)
69
70
71
72
73
74
75
76
77
78
79
Company
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
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
L&T TRANSPORTATION
INFRASTRUCTURE
LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
L&T UTTARANCHAL
HYDROPOWER
LIMITED
VILLAGE BEDUBAGAR P.O
AUGUSTMUNI RUDRAPRAYAG
RUDRA PRAYAG UR 246421
80
L&T VALVES LIMITED
L&T VISION VENTURES
LIMITED
L&T-MHPS BOILERS
PRIVATE LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T-MHPS TURBINE
GENERATORS PRIVATE
LIMITED
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
L&T-SARGENT &
LUNDY LIMITED
LARSEN & TOUBRO
(EAST ASIA) SDN. BHD
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
SUITE 702, 7TH FLOOR, WISMA
HANGSAM, JALAN HANG LEKIR,
50000 KUALA LUMPUR, MALAYSIA
81
82
83
84
85
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
78.88 Section 2(87)(ii)
0479598-9
SUBSIDIARY
78.88 Section 2(87)(ii)
U72200TN2006PTC059421
SUBSIDIARY
58.37 Section 2(87)(ii)
U45203TN1997PLC039102
SUBSIDIARY
98.12 Section 2(87)(ii)
U31401UR2006PLC032329
SUBSIDIARY
100.00 Section 2(87)(ii)
U74999MH1961PLC012188
SUBSIDIARY
100.00 Section 2(87)(ii)
U74210TN2006PLC061845
SUBSIDIARY
68.00 Section 2(87)(ii)
U29119MH2006PTC165102
SUBSIDIARY
51.00 Section 2(87)(ii)
U31101MH2006PTC166541
SUBSIDIARY
51.00 Section 2(87)(ii)
U74210MH1995PLC088099
SUBSIDIARY
50.0001 Section 2(87)(ii)
390357-T
SUBSIDIARY
30.00 Section 2(87)(i)
131
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Sl. No Name of the
Address of the Company
CIN/GLN
86
87
88
89
90
91
92
93
94
95
96
97
Company
LARSEN & TOUBRO
ATCO SAUDIA LLC
LARSEN & TOUBRO
ELECTROMECH LLC
LARSEN & TOUBRO
HEAVY ENGINEERING
LLC
LARSEN & TOUBRO
HYDROCARBON
INTERNATIONAL
LIMITED LLC
LARSEN & TOUBRO
INFOTECH AUSTRIA
GMBH
LARSEN & TOUBRO
INFOTECH CANADA
LIMITED
LARSEN & TOUBRO
INFOTECH GMBH
LARSEN & TOUBRO
INFOTECH LIMITED
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
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
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
C/O, OBERHAMMER,
RECHTSANWALTE GMBH,
KARLSPLATZ, 3/1, VIENNA
2810, MATHESON BLVD EAST
SUITE 500, MISSISSAUGA, ONL4W
4X7 CANADA
EURO-ASIA BUSINESS CENTRE,
MESSE-ALLEE 2, D-04356, LEIPZIG,
GERMANY
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
2051053464
SUBSIDIARY
100.00 Section 2(87)(ii)
FN435491D
SUBSIDIARY
74.80 Section 2(87)(ii)
1415026
SUBSIDIARY
74.80 Section 2(87)(ii)
HRB15958
SUBSIDIARY
74.80 Section 2(87)(ii)
L72900MH1996PLC104693
SUBSIDIARY
74.80 Section 2(87)(ii)
LARSEN & TOUBRO
INFOTECH LLC
1220, N. MARKET ST., SUITE 806,
WILMINGTON, DE 19801, USA
270596763
SUBSIDIARY
74.80 Section 2(87)(ii)
MARTIN LINGES VEI 25, 1364
FORNEBU, 0219 BAERUM,
NORWAY
OFFICE LOB 16 G 08, POST
BOX 41558, HAMRIYAH FREE
ZONE, SHARJAH, UNITED ARAB
EMIRATES
PLOT NO. 3, BUILDING NO.1,
SHARQ, KUWAIT
LARSEN & TOUBRO
INFOTECH NORGE AS
LARSEN & TOUBRO
INTERNATIONAL FZE
LARSEN &
TOUBRO KUWAIT
CONSTRUCTION
GENERAL
CONTRACTING
COMPANY, WITH
LIMITED LIABILITY
921 974 248
SUBSIDIARY
74.80 Section 2(87)(ii)
0067
SUBSIDIARY
100.00 Section 2(87)(ii)
117668
SUBSIDIARY
49.00 Section 2(87)(i)
98
LARSEN & TOUBRO
LLC
99
100
101
102
LARSEN & TOUBRO
OMAN LLC
LARSEN & TOUBRO
QATAR LLC
LARSEN & TOUBRO
SAUDI ARABIA LLC
LARSEN & TOUBRO
TANDD SA (PTY)
LIMITED
113, BARKSDALE PROFESSIONAL
CENTRE, NEWARK CITY, COUNTRY
OF NEW CASTLE, G56 ZIP
CODE-19711, U.S.A
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
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)
1010154437
SUBSIDIARY
100.00 Section 2(87)(ii)
2010/018159/07
SUBSIDIARY
72.50 Section 2(87)(ii)
132
103
104
105
106
107
108
109
110
111
112
113
114
115
116
Sl. No Name of the
Address of the Company
CIN/GLN
Company
2011/007226/07
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
56.03 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
ALMADA TOWER, PRINCE TURKI
STREET, AL KHOBAR, SAUDI
ARABIA
LTH MILCOM PRIVATE
LIMITED
L & T HOUSE, BALLARD ESTATE,
MUMBAI 400001
LTIDPL INDVIT
SERVICES LIMITED
(formerly known as
L&T WESTERN INDIA
TOLLBRIDGE LIMITED)
LTR SSM PRIVATE
LIMITED
MUDIT CEMENT
PRIVATE LIMITED
NABHA POWER
LIMITED
Neilsen+Partner
Unternehmensberater
GMBH
NIELSEN&PARTNER
Co., Ltd.
MOUNT POONAMALLE
ROAD, POST BOX NO. 979,
MANAPAKKAM, CHENNAI
- 600089
L&T HOUSE, BALLARD ESTATE,
N M MARG, MUMBAI,
MAHARASHTRA - 400001
5TH FLOOR, DCM BUILDING,
16, BARAKHAMBA ROAD,
CONNAUGHT PLACE, NEW
DELHI - 110001
PO BOX NO-28, NEAR VILLAGE
NALASH, RAJPURA, PATIALA,
PUNJAB-140401
GROSSER BURSTAH 45, 20457
HAMBURG, GERMANY
12 A FLOOR UNIT B1, B2 SIAM
PIWAT TOWER, 989 RAMA 1
ROAD, PATHUMWAN, BANGKOK
10330, THAILAND
2051049523
SUBSIDIARY
75.00 Section 2(87)(ii)
U74999MH2015PTC267502
SUBSIDIARY
56.67 Section 2(87)(ii)
U45203TN1999PLC042518
SUBSIDIARY
97.45 Section 2(87)(ii)
U70109MH2018PTC314632
SUBSIDIARY
99.00 Section 2(87)(ii)
U26942DL1990PTC041941
SUBSIDIARY
63.91 Section 2(87)(ii)
U40102PB2007PLC031039
SUBSIDIARY
100.00 Section 2(87)(ii)
HRB 60455
SUBSIDIARY
74.80 Section 2(87)(ii)
0105561057293
SUBSIDIARY
74.80 Section 2(87)(ii)
NIELSEN&PARTNER
Pty Ltd
52 MARTIN PLACE, LEVEL 23,
SYDNEY NSW 2000
ACN 624 699 627
SUBSIDIARY
74.80 Section 2(87)(ii)
NIELSEN+ PARTNER
S.A.
NIELSEN+PARTNER
Pte Ltd.
NIELSEN+PARTNER
Unternehmensberater
AG
PANIPAT ELEVATED
CORRIDOR LIMITED
51, BOULEVARD GRANDE
DUCHESSE CHARLOTTE, L - 1330
LUXEMBOURG
11 COLLYER QUAY
#09-09 THE ARCADE, SINGAPORE
049317
STAMPFENBACHSTRASSE 52,
CH-8006 ZüRICH, SWITZERLAND
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM,
CHENNAI - 600089
MOUNT POONAMALLE
ROAD, POST BOX NO.979,
MANAPAKKAM, CHENNAI
- 600089
117
PNG TOLLWAY
LIMITED
118
119
120
PT TAMCO INDONESIA JALAN RAYA PASAR SERANG, NO.
15, KANDANG RODA, CIKARANG
BEKASI 17330, INDONESIA
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
R.C.S. Luxembourg B213716
SUBSIDIARY
74.80 Section 2(87)(ii)
RCB Reg. No. 201306219M
SUBSIDIARY
74.80 Section 2(87)(ii)
UID: CHE-113.683.377
SUBSIDIARY
74.80 Section 2(87)(ii)
U45203TN2005PLC056999
SUBSIDIARY
97.45 Section 2(87)(ii)
U45203TN2009PLC070741
SUBSIDIARY
72.77 Section 2(87)(ii)
C2-18.177.HT.01.01.HT 94
SUBSIDIARY
100.00 Section 2(87)(ii)
AHU-0110258.AH.01.09
SUBSIDIARY
95.00 Section 2(87)(ii)
U13203OR1999PTC005673
SUBSIDIARY
75.50 Section 2(87)(ii)
133
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Sl. No Name of the
Address of the Company
CIN/GLN
Company
RULETRONICS
LIMITED, UK
RULETRONICS
SYSTEMS INC
RULETRONICS
SYSTEMS PRIVATE
LIMITED
SAHIBGANJ GANGES
BRIDGE-COMPANY
PRIVATE LIMITED #
SEASTAR LABS
PRIVATE LIMITED
121
122
123
124
125
126
SERVOWATCH
SYSTEMS LIMITED
271 US HIGHWAY 46, SUITE C104,
NJ 7004
7946822
43 FARNSWORTH COURT, WEST
PARKSIDE, LONDON SE10 0QG
24A-1611/2,46965,DWARAKA,
APARTMENTS 401, ALLASANI,
PEDDANNA STREET, ELURU,
ANDHRA PRADESH
L&T HOUSE BALLARD ESTATE
MUMBAI 400001
501, SARKAR-1, OPP.
GANDHIGRAM RAILWAY STATION,
ASHRAM ROAD,
AHMEDABAD - 380 009
THE WOODROPE BUILDING,
WOODROLFE ROAD, TOLLESBURY,
MALDONESSEX CM9 8SE, UNITED
KINGDOM
127
SYNCORDIS FRANCE
SARL
8, RUE, PAUL BELMONDO, PARIS,
FRANCE - 75012
128
SYNCORDIS LIMITED
129
SYNCORDIS PSF S.A.
130
131
132
133
SYNCORDIS S.A.
LUXEMBOURG
SYNCORDIS
SOFTWARE SERVICES
INDIA PRIVATE
LIMITED
TAMCO ELECTRICAL
INDUSTRIES
AUSTRALIA PTY LTD
TAMCO SWITCHGEAR
(MALAYSIA) SDN BHD
134
THALEST LIMITED
BEACON HOUSE, 15
CHRISTCHURCH ROAD,
BOURNEMOUTH, DORSET,
ENGLAND, UK -BH13LB
105, ROUTE D’ARLON, L-8009,
STRASSEN, LUXEMBOURG
105 ROUTE D’ARLON, L-8009
STRASSEN RCS LUXEMBOURG B
NUM’ERO 105331
4TH FLOOR, ROOP EMERALD,
NO.45, NORTH USMAN ROAD T.
NAGAR 600017
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
135
VADODARA BHARUCH
TOLLWAYS LIMITED
136
WESTERN ANDHRA
TOLLWAYS LIMITED
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
MOUNT POONAMALLE
ROAD, POST BOX NO 979,
MANAPAKKAM, CHENNAI
- 600089
134
Holding/
Subsidiary/
Associate
SUBSIDIARY
% of Shares
held
Applicable Section
74.80 Section 2(87)(ii)
0450075646
SUBSIDIARY
74.80 Section 2(87)(ii)
U72200AP2014PTC094911
SUBSIDIARY
74.80 Section 2(87)(ii)
U45309MH2016PTC283661
SUBSIDIARY
100.00 Section 2(87)(ii)
U72900GJ2015PTC083374
SUBSIDIARY
78.88 Section 2(87)(ii)
2159287
SUBSIDIARY
100.00 Section 2(87)(ii)
514135862
10045506
B217963
B105331
SUBSIDIARY
74.80 Section 2(87)(ii)
SUBSIDIARY
74.80 Section 2(87)(ii)
SUBSIDIARY
74.80 Section 2(87)(ii)
SUBSIDIARY
74.80 Section 2(87)(ii)
U72900TN2015FTC101675
SUBSIDIARY
74.80 Section 2(87)(ii)
ACN006140512
SUBSIDIARY
100.00 Section 2(87)(ii)
775268-H
SUBSIDIARY
100.00 Section 2(87)(ii)
01201246
SUBSIDIARY
100.00 Section 2(87)(ii)
U45203TN2005PLC058417
SUBSIDIARY
97.45 Section 2(87)(ii)
U45203TN2005PLC057931
SUBSIDIARY
97.45 Section 2(87)(ii)
Company
ARDOM TELECOM
PRIVATE LIMITED
GUJARAT LEATHER
INDUSTRIES LIMITED
@@
INDIRAN
ENGINEERING
PROJECTS AND
SYSTEMS KISH (LLC)
INTERNATIONAL
SEAPORTS (HALDIA)
PRIVATE LIMITED
1
2
3
4
5
6
7
8
9
Sl. No Name of the
Address of the Company
CIN/GLN
U64100HR2009PTC048269
Holding/
Subsidiary/
Associate
ASSOCIATE
% of Shares
held
Applicable Section
7.76 Section 2(6)
609B & 610, 6TH FLOOR, WELL
DONE TECH PARK, SOHNA ROAD,
SECTOR-41, GURGAON - 122018
NO 3001, GIDC INDUSTRIAL
ESTATE, ANKLESHWAR, GUJARAT
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)
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
U65923MH2007PTC168721
ASSOCIATE
23.87 Section 2(6)
@@ The Company is under Liquidation
# Under Process of Strike Off
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)
Individual/HUF
b) Central Govt
c)
State Govt (s)
d) Bodies Corp.
e) Banks / FI
f) Any Other….
Sub-total (A) (1):-
(2) Foreign
a) NRIs -Individuals
b) Other –Individuals
c) Bodies Corp.
d) Banks / FI
e) Any Other….
Sub-total (A) (2):-
Total shareholding of Promoter
(A) =(A)(1)+(A)(2)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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
135
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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
B
1.
Public Shareholding
Institutions
a) MutualFunds
b) Banks / FI
c) Central Govt
d)
State Govt(s)
e) Venture Capital Funds
202,331,530
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
14.44
228,916,062
2.64
0.22
0.00
0.00
7,652,527
3,590,744
0
0
13,878
45,887
0
0
0
228,929,940
7,698,414
3,590,744
0
0
f)
i)
j)
Insurance Companies
297,215,504
675
297,216,179
21.21
294,374,166
675
294,374,841
FIIs
Foreign Venture Capital
Funds
962,363
52,558
1,014,921
0
0
0
0.07
0.00
848,582
0
52,558
0
901,140
0
% Change
during the
year
% of Total
Shares
16.32
0.55
0.26
0.00
0.00
20.99
0.06
0.00
1.88
-2.09
0.04
0.00
0.00
-0.22
-0.01
0.00
540,570,533
113,211
540,683,744
38.58
535,382,081
112,998
535,495,079
38.18
-0.41
92,102,289
411,087
92,513,376
40,666
3,260
43,926
6.60
0.00
91,182,843
411,168
91,594,011
39,713
3,260
42,973
6.53
0.00
239,795,903
24,053,909
263,849,812
18.83
249,613,337
20,377,228
269,990,565
19.25
0.00
0.00
0.42
29,385,457
0
29,385,457
2.10
31,436,696
5
31,436,701
2.24
0.14
Sub-total (B)(1):-
2. Non-Institutions
a) Bodies Corp.
i)
Indian
ii) Overseas
b)
Individuals
i)
Individual
shareholders
holding nominal
share capital upto
R 2 lakh
Individual
shareholders holding
nominal share
capital in excess of
R 2 lakh
c) Others (specify)
ii)
i)
ii)
iii)
Directors & Relatives
Foreign Nationals
Foreign Portfolio
Investors
iv) Non-Residents
v)
vi)
Trust
Qualified Foreign
Investor
vii)
IEPF
viii) Alternate Investment
Funds
1,421,590
547,173
257,126,930
12,173,050
172,101,772
0
1,288,543
1,730
375
21,705
1,421,965
568,878
0.10
0.04
1,576,520
547,173
350
21,705
1,576,870
568,878
0
257,126,930
18.35
261,343,131
0
261,343,131
540,579
12,713,629
26,649
172,128,421
0
0
0
0
1,288,543
1,730
0.91
12.28
0.00
0.09
0.00
12,841,446
172,128,421
0
1,292,037
1,115,268
477,413
13,318,859
0
0
0
0
172,128,421
0
1,292,037
1,115,268
Sub-total (B)(2):-
805,985,103
25,057,564
831,042,667
59.30
823,116,585
21,291,129
844,407,714
Total Public Shareholding
(B)=(B)(1)+ (B)(2)
C.
Shares held byCustodian
for GDRs & ADRs
1,346,555,636
25,170,775 1,371,726,411
97.88 1,358,498,666
21,404,127 1,379,902,793
29,643,045
0
29,643,045
2.12
22,826,592
0
22,826,592
0.11
0.04
18.63
0.95
12.27
0.00
0.09
0.08
60.20
98.37
1.63
Grand Total (A+B+C)
1,376,198,681
25,170,775 1,401,369,456
100.00 1,381,325,258
21,404,127 1,402,729,385
100.00
0.01
0.00
0.28
0.04
-0.01
0.00
0.00
0.08
0.90
0.49
-0.49
0.00
136
(ii) Shareholding of Promoters
Sl
Shareholders Name
Shareholding at the beginning of the year
%of Shares
No. of Shares
Pledged/
encumbered
to total
shares
% of total
Shares of
the Company
Shareholding at the end of the year
No. of Shares
% of total
Shares of
the Company
%of Shares
Pledged/
encumbered
to total
shares
% change
in share
holding
during the
year
1
Total
NIL
NIL
NIL
NIL
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
Sl.
No.
1
2
At the beginning of the year
Date wise Increase / Decrease in
Promoters Share holding during
the year specifying the reasons for
increase /decrease (e.g. allotment /
transfer / bonus / sweat equity etc):
3
At the End of the year
Shareholding at the beginning of the
year
Cumulative Shareholding during the
year
No. of shares % of total shares
of the Company
No. of shares % of total shares
of the Company
NIL
NIL
NIL
NIL
(iv) Shareholding Pattern of top ten Shareholders (other than directors, Promoters and Holders of Gdrs
and adrs):
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
18.31
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.)
Shareholding at the
beginning of the Year
13/07/2018
27/07/2018
27/07/2018
07/09/2018
07/09/2018
31/12/2018
08/03/2019
15/03/2019
22/03/2019
29/03/2019
29/03/2019
30/03/2019
At the end of the year
Reason
Increase/
Decrease
in share
holding
-125 Transfer
100 Transfer
-100 Transfer
1925 Transfer
-1800 Transfer
-5968339 Transfer
-970666 Transfer
-3156652 Transfer
-3167862 Transfer
4762654 Transfer
-1411581 Transfer
-450 Transfer
256589578
256589453
256589553
256589453
256591378
256589578
250621239
249650573
246493921
243326059
248088713
246677132
246676682
246676682
18.31
18.30
18.30
18.30
18.30
17.87
17.80
17.57
17.35
17.69
17.59
17.59
17.59
137
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Sl.
No.
2
3
Name of the Share Holder
Date
L&T EMPLOYEES WELFARE
FOUNDATION
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
At the end of the year
Shareholding at the
beginning of the Year
01/04/2018
06/04/2018
06/04/2018
13/04/2018
13/04/2018
20/04/2018
27/04/2018
27/04/2018
04/05/2018
04/05/2018
11/05/2018
11/05/2018
18/05/2018
18/05/2018
25/05/2018
25/05/2018
01/06/2018
01/06/2018
08/06/2018
08/06/2018
15/06/2018
15/06/2018
22/06/2018
22/06/2018
29/06/2018
29/06/2018
06/07/2018
06/07/2018
13/07/2018
20/07/2018
20/07/2018
27/07/2018
27/07/2018
Reason
Increase/
Decrease
in share
holding
5968 Transfer
-278 Transfer
1560 Transfer
-7498 Transfer
383 Transfer
1003 Transfer
-3000 Transfer
775 Transfer
-233608 Transfer
1047 Transfer
-105376 Transfer
2203 Transfer
-428934 Transfer
54515 Transfer
-582788 Transfer
6070 Transfer
-323200 Transfer
4842952 Transfer
-5881000 Transfer
4302 Transfer
-306000 Transfer
853 Transfer
-1180 Transfer
30968 Transfer
-2658 Transfer
2191 Transfer
-30122 Transfer
1268 Transfer
101624 Transfer
-25000 Transfer
245 Transfer
-5237 Transfer
287608 Transfer
138
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
12.28
172128421
172128421
56649372
56655340
56655062
56656622
56649124
56649507
56650510
56647510
56648285
56414677
56415724
56310348
56312551
55883617
55938132
55355344
55361414
55038214
59881166
54000166
54004468
53698468
53699321
53698141
53729109
53726451
53728642
53698520
53699788
53801412
53776412
53776657
53771420
54059028
12.27
4.04
4.04
4.04
4.04
4.04
4.04
4.04
4.04
4.04
4.03
4.03
4.02
4.02
3.99
3.99
3.95
3.95
3.93
4.27
3.85
3.85
3.83
3.83
3.83
3.83
3.83
3.83
3.83
3.83
3.84
3.84
3.84
3.84
3.86
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.)
03/08/2018
03/08/2018
10/08/2018
10/08/2018
17/08/2018
17/08/2018
24/08/2018
24/08/2018
31/08/2018
31/08/2018
07/09/2018
07/09/2018
14/09/2018
14/09/2018
21/09/2018
21/09/2018
28/09/2018
28/09/2018
05/10/2018
05/10/2018
12/10/2018
12/10/2018
19/10/2018
26/10/2018
02/11/2018
02/11/2018
09/11/2018
16/11/2018
23/11/2018
23/11/2018
30/11/2018
30/11/2018
07/12/2018
14/12/2018
21/12/2018
21/12/2018
28/12/2018
28/12/2018
Reason
Increase/
Decrease
in share
holding
-50000 Transfer
1199 Transfer
-100016 Transfer
2235 Transfer
-40000 Transfer
1690 Transfer
-170000 Transfer
634 Transfer
-109844 Transfer
4508 Transfer
-142600 Transfer
734 Transfer
-302441 Transfer
2656 Transfer
-25000 Transfer
5987 Transfer
-275385 Transfer
623751 Transfer
-410000 Transfer
388091 Transfer
-40000 Transfer
9533 Transfer
4372 Transfer
12839 Transfer
-30118 Transfer
1332 Transfer
1468 Transfer
1541 Transfer
-225000 Transfer
6770 Transfer
-130000 Transfer
1702 Transfer
25636 Transfer
507987 Transfer
-25000 Transfer
2528 Transfer
-1965 Transfer
2642 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
3.85
3.85
3.85
3.85
3.84
3.84
3.83
3.83
3.82
3.82
3.81
3.81
3.79
3.79
3.79
3.79
3.77
3.81
3.79
3.81
3.81
3.81
3.81
3.81
3.81
3.81
3.81
3.81
3.79
3.79
3.79
3.79
3.79
3.82
3.82
3.82
3.82
3.82
54009028
54010227
53910211
53912446
53872446
53874136
53704136
53704770
53594926
53599434
53456834
53457568
53155127
53157783
53132783
53138770
52863385
53487136
53077136
53465227
53425227
53434760
53439132
53451971
53421853
53423185
53424653
53426194
53201194
53207964
53077964
53079666
53105302
53613289
53588289
53590817
53588852
53591494
139
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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.)
4
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.)
140
Reason
Increase/
Decrease
in share
holding
201222 Transfer
-75128 Transfer
12285 Transfer
-100000 Transfer
88631 Transfer
2358 Transfer
-50000 Transfer
195625 Transfer
-35625 Transfer
3329 Transfer
-118 Transfer
3769 Transfer
-1504 Transfer
1020483 Transfer
5607 Transfer
201483 Transfer
-1052 Transfer
3463 Transfer
-750 Transfer
5649 Transfer
-3577 Transfer
16774 Transfer
-2862 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
3.84
3.83
3.83
3.82
3.83
3.83
3.83
3.84
3.84
3.84
3.84
3.84
3.84
3.91
3.91
3.93
3.93
3.93
3.93
3.93
3.93
3.93
3.93
3.93
53792716
53717588
53729873
53629873
53718504
53720862
53670862
53866487
53830862
53834191
53834073
53837842
53836338
54856821
54862428
55063911
55062859
55066322
55065572
55071221
55067644
55084418
55081556
55081556
35257393
2.52
31/12/2018
04/01/2019
04/01/2019
11/01/2019
11/01/2019
18/01/2019
25/01/2019
25/01/2019
01/02/2019
01/02/2019
08/02/2019
08/02/2019
15/02/2019
15/02/2019
22/02/2019
01/03/2019
08/03/2019
08/03/2019
15/03/2019
15/03/2019
22/03/2019
22/03/2019
29/03/2019
At the end of the year
Shareholding at the
beginning of the Year
06/04/2018
06/04/2018
20/04/2018
15/06/2018
06/07/2018
22/02/2019
31/03/2019
100 Transfer
-150 Transfer
50 Transfer
-11621555 Transfer
1205458 Transfer
-17702702 Transfer
-100 Transfer
35257493
35257343
35257393
23635838
24841296
7138594
7138494
2.52
2.52
2.52
1.69
1.77
0.51
0.51
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
2.04
Name of the Share Holder
Date
Sl.
No.
5
ICICI PRUDENTIAL CAPITAL
PROTECTION ORIENTED FUND
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
Shareholding at the
beginning of the Year
06/04/2018
06/04/2018
13/04/2018
13/04/2018
20/04/2018
27/04/2018
27/04/2018
04/05/2018
04/05/2018
11/05/2018
11/05/2018
18/05/2018
18/05/2018
25/05/2018
25/05/2018
01/06/2018
01/06/2018
08/06/2018
08/06/2018
15/06/2018
15/06/2018
22/06/2018
22/06/2018
29/06/2018
29/06/2018
06/07/2018
06/07/2018
13/07/2018
13/07/2018
20/07/2018
20/07/2018
27/07/2018
27/07/2018
03/08/2018
03/08/2018
10/08/2018
Reason
Increase/
Decrease
in share
holding
394557 Transfer
-1816468 Transfer
290 Transfer
-768442 Transfer
-603009 Transfer
22 Transfer
-872861 Transfer
366 Transfer
-102641 Transfer
2510 Transfer
-154812 Transfer
2298 Transfer
-670298 Transfer
423 Transfer
-167988 Transfer
805 Transfer
-304201 Transfer
4281 Transfer
-512790 Transfer
2306 Transfer
-10352 Transfer
7005 Transfer
-489438 Transfer
10395601 Transfer
-275250 Transfer
2258730 Transfer
-3283938 Transfer
951526 Transfer
-1466390 Transfer
598730 Transfer
-801923 Transfer
85789 Transfer
-1957396 Transfer
66888 Transfer
-2815768 Transfer
622 Transfer
28612818
29007375
27190907
27191197
26422755
25819746
25819768
24946907
24947273
24844632
24847142
24692330
24694628
24024330
24024753
23856765
23857570
23553369
23557650
23044860
23047166
23036814
23043819
22554381
32949982
32674732
34933462
31649524
32601050
31134660
31733390
30931467
31017256
29059860
29126748
26310980
26311602
2.07
1.94
1.94
1.89
1.84
1.84
1.78
1.78
1.77
1.77
1.76
1.76
1.71
1.71
1.70
1.70
1.68
1.68
1.64
1.64
1.64
1.64
1.61
2.35
2.33
2.49
2.26
2.33
2.22
2.26
2.21
2.21
2.07
2.08
1.88
1.88
141
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Name of the Share Holder
Date
Sl.
No.
10/08/2018
17/08/2018
17/08/2018
24/08/2018
24/08/2018
31/08/2018
31/08/2018
07/09/2018
07/09/2018
14/09/2018
14/09/2018
21/09/2018
21/09/2018
28/09/2018
28/09/2018
05/10/2018
05/10/2018
12/10/2018
12/10/2018
19/10/2018
19/10/2018
26/10/2018
26/10/2018
02/11/2018
02/11/2018
09/11/2018
09/11/2018
16/11/2018
16/11/2018
23/11/2018
23/11/2018
30/11/2018
30/11/2018
07/12/2018
07/12/2018
14/12/2018
14/12/2018
21/12/2018
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
142
Reason
Increase/
Decrease
in share
holding
-172561 Transfer
576 Transfer
-237596 Transfer
364619 Transfer
-366218 Transfer
1492 Transfer
-1112624 Transfer
1243 Transfer
-121574 Transfer
48688 Transfer
-93375 Transfer
106189 Transfer
-6030 Transfer
571671 Transfer
-26189 Transfer
233144 Transfer
-313777 Transfer
2467 Transfer
-450 Transfer
413671 Transfer
-206250 Transfer
706201 Transfer
-809340 Transfer
2992 Transfer
-734217 Transfer
885 Transfer
-227298 Transfer
1773 Transfer
-699136 Transfer
13359 Transfer
-71502 Transfer
305852 Transfer
-494024 Transfer
8603 Transfer
-10234 Transfer
3893 Transfer
-336664 Transfer
2328 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.86
1.86
1.85
1.87
1.85
1.85
1.77
1.77
1.76
1.76
1.76
1.76
1.76
1.80
1.80
1.82
1.80
1.80
1.80
1.83
1.81
1.86
1.80
1.80
1.75
1.75
1.74
1.74
1.69
1.69
1.68
1.70
1.67
1.67
1.67
1.67
1.64
1.64
26139041
26139617
25902021
26266640
25900422
25901914
24789290
24790533
24668959
24717647
24624272
24730461
24724431
25296102
25269913
25503057
25189280
25191747
25191297
25604968
25398718
26104919
25295579
25298571
24564354
24565239
24337941
24339714
23640578
23653937
23582435
23888287
23394263
23402866
23392632
23396525
23059861
23062189
Name of the Share Holder
Date
Sl.
No.
21/12/2018
28/12/2018
28/12/2018
31/12/2018
31/12/2018
04/01/2019
04/01/2019
11/01/2019
11/01/2019
18/01/2019
25/01/2019
25/01/2019
01/02/2019
01/02/2019
08/02/2019
08/02/2019
15/02/2019
15/02/2019
22/02/2019
22/02/2019
01/03/2019
01/03/2019
08/03/2019
08/03/2019
15/03/2019
15/03/2019
22/03/2019
22/03/2019
29/03/2019
29/03/2019
At the end of the year
Shareholding at the
beginning of the Year
06/04/2018
13/04/2018
20/04/2018
27/04/2018
27/04/2018
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
6
ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LIMITED
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
Reason
Increase/
Decrease
in share
holding
-46408 Transfer
135405 Transfer
-95007 Transfer
533 Transfer
-4570 Transfer
1896 Transfer
-3438 Transfer
1111 Transfer
-4994 Transfer
458538 Transfer
35829 Transfer
-34220 Transfer
2798 Transfer
-1226382 Transfer
1991 Transfer
-373282 Transfer
225021 Transfer
-273961 Transfer
17692189 Transfer
-6720 Transfer
3011204 Transfer
-11545250 Transfer
4326497 Transfer
-545533 Transfer
1920 Transfer
-1311973 Transfer
10232 Transfer
-1438021 Transfer
422765 Transfer
-127676 Transfer
308760 Transfer
96947 Transfer
-24835 Transfer
8994 Transfer
-142580 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.64
1.65
1.64
1.64
1.64
1.64
1.64
1.64
1.64
1.68
1.68
1.68
1.68
1.59
1.59
1.56
1.58
1.56
2.82
2.82
3.03
2.21
2.52
2.48
2.48
2.39
2.39
2.29
2.32
2.31
2.30
1.84
23015781
23151186
23056179
23056712
23052142
23054038
23050600
23051711
23046717
23505255
23541084
23506864
23509662
22283280
22285271
21911989
22137010
21863049
39555238
39548518
42559722
31014472
35340969
34795436
34797356
33485383
33495615
32057594
32480359
32352683
32321704
25773363
26082123
26179070
26154235
26163229
26020649
1.86
1.87
1.87
1.87
1.86
143
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Name of the Share Holder
Date
Sl.
No.
04/05/2018
11/05/2018
18/05/2018
25/05/2018
01/06/2018
01/06/2018
08/06/2018
15/06/2018
22/06/2018
29/06/2018
06/07/2018
13/07/2018
20/07/2018
27/07/2018
03/08/2018
03/08/2018
10/08/2018
17/08/2018
24/08/2018
31/08/2018
31/08/2018
07/09/2018
14/09/2018
21/09/2018
28/09/2018
28/09/2018
05/10/2018
12/10/2018
12/10/2018
19/10/2018
26/10/2018
02/11/2018
02/11/2018
09/11/2018
16/11/2018
23/11/2018
30/11/2018
30/11/2018
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
144
Reason
Increase/
Decrease
in share
holding
-19068 Transfer
-499160 Transfer
-222434 Transfer
-509598 Transfer
189742 Transfer
-35189 Transfer
-77974 Transfer
248338 Transfer
-293855 Transfer
-79529 Transfer
450741 Transfer
391713 Transfer
97681 Transfer
185046 Transfer
245584 Transfer
-83848 Transfer
-186592 Transfer
-24160 Transfer
-1274521 Transfer
217008 Transfer
-207851 Transfer
-144535 Transfer
-233481 Transfer
-68326 Transfer
89491 Transfer
-1921 Transfer
916421 Transfer
1813815 Transfer
-1343335 Transfer
252528 Transfer
-9927 Transfer
1179585 Transfer
-1047765 Transfer
144637 Transfer
-54896 Transfer
-36126 Transfer
17967 Transfer
-15024 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.86
1.82
1.80
1.77
1.78
1.78
1.77
1.79
1.77
1.76
1.80
1.82
1.83
1.84
1.86
1.86
1.84
1.84
1.75
1.76
1.75
1.74
1.72
1.72
1.72
1.72
1.79
1.92
1.82
1.84
1.84
1.92
1.85
1.86
1.86
1.85
1.85
1.85
26001581
25502421
25279987
24770389
24960131
24924942
24846968
25095306
24801451
24721922
25172663
25564376
25662057
25847103
26092687
26008839
25822247
25798087
24523566
24740574
24532723
24388188
24154707
24086381
24175872
24173951
25090372
26904187
25560852
25813380
25803453
26983038
25935273
26079910
26025014
25988888
26006855
25991831
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.)
7
GENERAL INSURANCE
CORPORATION OF INDIA
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
07/12/2018
14/12/2018
21/12/2018
28/12/2018
31/12/2018
04/01/2019
11/01/2019
18/01/2019
25/01/2019
01/02/2019
08/02/2019
15/02/2019
22/02/2019
01/03/2019
08/03/2019
15/03/2019
22/03/2019
29/03/2019
At the end of the year
Shareholding at the
beginning of the Year
06/04/2018
18/05/2018
13/07/2018
27/07/2018
10/08/2018
17/08/2018
24/08/2018
12/10/2018
19/10/2018
26/10/2018
02/11/2018
30/11/2018
07/12/2018
14/12/2018
21/12/2018
08/02/2019
At the end of the year
Reason
Increase/
Decrease
in share
holding
540765 Transfer
566 Transfer
-377775 Transfer
228051 Transfer
8955 Transfer
-612385 Transfer
55321 Transfer
-224797 Transfer
214082 Transfer
732818 Transfer
420151 Transfer
34022 Transfer
-133053 Transfer
329275 Transfer
-1489240 Transfer
-695458 Transfer
32141 Transfer
22146 Transfer
-10000 Transfer
-5055 Transfer
25000 Transfer
2918 Transfer
25213 Transfer
20000 Transfer
30000 Transfer
5000 Transfer
25000 Transfer
60000 Transfer
27463 Transfer
-305539 Transfer
-155000 Transfer
-10000 Transfer
-135000 Transfer
100000 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
26532596
26533162
26155387
26383438
26392393
25780008
25835329
25610532
25824614
26557432
26977583
27011605
26878552
27207827
25718587
25023129
25055270
25077416
25077416
24700000
24690000
24684945
24709945
24712863
24738076
24758076
24788076
24793076
24818076
24878076
24905539
24600000
24445000
24435000
24300000
24400000
24400000
% of total
shares
of the
Company
1.89
1.89
1.87
1.88
1.88
1.84
1.84
1.83
1.84
1.89
1.92
1.93
1.92
1.94
1.83
1.78
1.79
1.79
1.79
1.76
1.76
1.76
1.76
1.76
1.76
1.77
1.77
1.77
1.77
1.77
1.78
1.75
1.74
1.74
1.73
1.74
1.74
145
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Name of the Share Holder
Date
Sl.
No.
8
SBI - ETF SENSEX
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
06/04/2018
06/04/2018
13/04/2018
20/04/2018
20/04/2018
27/04/2018
04/05/2018
11/05/2018
18/05/2018
25/05/2018
01/06/2018
08/06/2018
15/06/2018
22/06/2018
22/06/2018
29/06/2018
29/06/2018
06/07/2018
13/07/2018
13/07/2018
20/07/2018
27/07/2018
27/07/2018
03/08/2018
03/08/2018
10/08/2018
10/08/2018
17/08/2018
24/08/2018
31/08/2018
31/08/2018
07/09/2018
07/09/2018
14/09/2018
14/09/2018
21/09/2018
Reason
Increase/
Decrease
in share
holding
134030 Transfer
-2979 Transfer
1028656 Transfer
309199 Transfer
-9900 Transfer
132040 Transfer
96004 Transfer
158200 Transfer
129974 Transfer
86034 Transfer
95095 Transfer
160502 Transfer
81149 Transfer
346851 Transfer
-50541 Transfer
56921 Transfer
-70108 Transfer
99892 Transfer
100148 Transfer
-1471 Transfer
83293 Transfer
109883 Transfer
-168 Transfer
255919 Transfer
-15344 Transfer
117685 Transfer
-4 Transfer
40351 Transfer
108278 Transfer
201011 Transfer
-1107 Transfer
161822 Transfer
-133 Transfer
145943 Transfer
-3468 Transfer
120331 Transfer
146
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.46
20499688
20633718
20630739
21659395
21968594
21958694
22090734
22186738
22344938
22474912
22560946
22656041
22816543
22897692
23244543
23194002
23250923
23180815
23280707
23380855
23379384
23462677
23572560
23572392
23828311
23812967
23930652
23930648
23970999
24079277
24280288
24279181
24441003
24440870
24586813
24583345
24703676
1.47
1.47
1.55
1.57
1.57
1.58
1.58
1.59
1.60
1.61
1.62
1.63
1.63
1.66
1.65
1.66
1.65
1.66
1.67
1.67
1.67
1.68
1.68
1.70
1.70
1.71
1.71
1.71
1.72
1.73
1.73
1.74
1.74
1.75
1.75
1.76
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.)
28/09/2018
28/09/2018
05/10/2018
12/10/2018
19/10/2018
26/10/2018
02/11/2018
02/11/2018
09/11/2018
16/11/2018
16/11/2018
23/11/2018
30/11/2018
07/12/2018
07/12/2018
14/12/2018
14/12/2018
21/12/2018
28/12/2018
28/12/2018
31/12/2018
04/01/2019
11/01/2019
18/01/2019
18/01/2019
25/01/2019
25/01/2019
01/02/2019
01/02/2019
08/02/2019
08/02/2019
15/02/2019
15/02/2019
22/02/2019
01/03/2019
01/03/2019
08/03/2019
08/03/2019
Reason
Increase/
Decrease
in share
holding
2828 Transfer
-21653 Transfer
89332 Transfer
2163979 Transfer
63501 Transfer
120362 Transfer
53684 Transfer
-20002 Transfer
77711 Transfer
135537 Transfer
-41779 Transfer
217940 Transfer
274699 Transfer
244363 Transfer
-18004 Transfer
21588 Transfer
-69999 Transfer
87012 Transfer
49178 Transfer
-26272 Transfer
30027 Transfer
179946 Transfer
232627 Transfer
159234 Transfer
-418 Transfer
172860 Transfer
-157 Transfer
183860 Transfer
-26625 Transfer
160106 Transfer
-2050 Transfer
28442 Transfer
-635646 Transfer
600002 Transfer
264523 Transfer
-34767 Transfer
723837 Transfer
-5618 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.76
1.76
1.77
1.92
1.93
1.93
1.94
1.94
1.94
1.95
1.95
1.96
1.98
2.00
2.00
2.00
2.00
2.00
2.01
2.00
2.01
2.02
2.04
2.05
2.05
2.06
2.06
2.07
2.07
2.08
2.08
2.08
2.04
2.08
2.10
2.10
2.15
2.15
24706504
24684851
24774183
26938162
27001663
27122025
27175709
27155707
27233418
27368955
27327176
27545116
27819815
28064178
28046174
28067762
27997763
28084775
28133953
28107681
28137708
28317654
28550281
28709515
28709097
28881957
28881800
29065660
29039035
29199141
29197091
29225533
28589887
29189889
29454412
29419645
30143482
30137864
147
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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.)
9
NPS TRUST- A/C KOTAK
PENSION FUND SCHEME
E - TIER
15/03/2019
22/03/2019
22/03/2019
29/03/2019
At the end of the year
Shareholding at the
beginning of the Year
Reason
Increase/
Decrease
in share
holding
1635337 Transfer
333988 Transfer
-266 Transfer
170309 Transfer
06/04/2018
13/04/2018
20/04/2018
27/04/2018
04/05/2018
11/05/2018
18/05/2018
01/06/2018
08/06/2018
15/06/2018
22/06/2018
29/06/2018
06/07/2018
13/07/2018
20/07/2018
27/07/2018
03/08/2018
10/08/2018
17/08/2018
24/08/2018
24/08/2018
31/08/2018
07/09/2018
14/09/2018
21/09/2018
28/09/2018
05/10/2018
12/10/2018
19/10/2018
26/10/2018
95745 Transfer
33974 Transfer
5850 Transfer
17064 Transfer
30825 Transfer
38357 Transfer
9175 Transfer
512 Transfer
18049 Transfer
38328 Transfer
12300 Transfer
104277 Transfer
10282 Transfer
44343 Transfer
73092 Transfer
32995 Transfer
5755 Transfer
154086 Transfer
46386 Transfer
66318 Transfer
-1000 Transfer
37653 Transfer
60838 Transfer
28672 Transfer
13365 Transfer
28252 Transfer
211218 Transfer
193356 Transfer
160800 Transfer
105156 Transfer
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
148
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
2.27
2.29
2.29
2.30
2.30
0.86
31773201
32107189
32106923
32277232
32277232
12005742
12101487
12135461
12141311
12158375
12189200
12227557
12236732
12237244
12255293
12293621
12305921
12410198
12420480
12464823
12537915
12570910
12576665
12730751
12777137
12843455
12842455
12880108
12940946
12969618
12982983
13011235
13222453
13415809
13576609
13681765
0.86
0.87
0.87
0.87
0.87
0.87
0.87
0.87
0.87
0.88
0.88
0.89
0.89
0.89
0.89
0.90
0.90
0.91
0.91
0.92
0.92
0.92
0.92
0.93
0.93
0.93
0.94
0.96
0.97
0.98
Name of the Share Holder
Date
Sl.
No.
02/11/2018
16/11/2018
16/11/2018
30/11/2018
30/11/2018
07/12/2018
14/12/2018
14/12/2018
21/12/2018
28/12/2018
28/12/2018
31/12/2018
31/12/2018
04/01/2019
04/01/2019
11/01/2019
18/01/2019
25/01/2019
01/02/2019
08/02/2019
15/02/2019
22/02/2019
01/03/2019
08/03/2019
15/03/2019
22/03/2019
29/03/2019
At the end of the year
Shareholding at the
beginning of the Year
06/04/2018
06/04/2018
13/04/2018
13/04/2018
20/04/2018
20/04/2018
27/04/2018
27/04/2018
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
10 RELIANCE CAPITAL TRUSTEE
CO LTD
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
Reason
Increase/
Decrease
in share
holding
109941 Transfer
5100 Transfer
-10779 Transfer
1211 Transfer
-5250 Transfer
-3150 Transfer
80231 Transfer
-140 Transfer
79586 Transfer
128450 Transfer
-65000 Transfer
63350 Transfer
-584 Transfer
27000 Transfer
-2000 Transfer
98380 Transfer
53860 Transfer
228152 Transfer
76600 Transfer
27412 Transfer
146773 Transfer
93135 Transfer
32600 Transfer
108592 Transfer
24840 Transfer
90306 Transfer
40959 Transfer
29745 Transfer
-843 Transfer
165486 Transfer
-340000 Transfer
18000 Transfer
-44404 Transfer
217000 Transfer
-64368 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
13791706
13796806
13786027
13787238
13781988
13778838
13859069
13858929
13938515
14066965
14001965
14065315
14064731
14091731
14089731
14188111
14241971
14470123
14546723
14574135
14720908
14814043
14846643
14955235
14980075
15070381
15111340
15111340
14776397
14806142
14805299
14970785
14630785
14648785
14604381
14821381
14757013
% of total
shares
of the
Company
0.98
0.98
0.98
0.98
0.98
0.98
0.99
0.99
0.99
1.00
1.00
1.00
1.00
1.00
1.00
1.01
1.02
1.03
1.04
1.04
1.05
1.06
1.06
1.07
1.07
1.07
1.08
1.08
1.05
1.06
1.06
1.07
1.04
1.05
1.04
1.06
1.05
149
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Name of the Share Holder
Date
Sl.
No.
04/05/2018
04/05/2018
11/05/2018
11/05/2018
18/05/2018
18/05/2018
25/05/2018
25/05/2018
01/06/2018
01/06/2018
08/06/2018
08/06/2018
15/06/2018
15/06/2018
22/06/2018
22/06/2018
29/06/2018
29/06/2018
06/07/2018
06/07/2018
13/07/2018
13/07/2018
20/07/2018
20/07/2018
27/07/2018
27/07/2018
03/08/2018
03/08/2018
10/08/2018
10/08/2018
17/08/2018
24/08/2018
24/08/2018
31/08/2018
31/08/2018
07/09/2018
07/09/2018
14/09/2018
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
150
Reason
Increase/
Decrease
in share
holding
701767 Transfer
-581523 Transfer
205167 Transfer
-46372 Transfer
69492 Transfer
-45668 Transfer
309632 Transfer
-606 Transfer
207073 Transfer
-62000 Transfer
345031 Transfer
-446448 Transfer
98840 Transfer
-354868 Transfer
197369 Transfer
-385157 Transfer
262823 Transfer
-80051 Transfer
288501 Transfer
-287831 Transfer
8496 Transfer
-143567 Transfer
92100 Transfer
-7495 Transfer
424630 Transfer
-421 Transfer
371783 Transfer
-3143 Transfer
1649 Transfer
-14030 Transfer
4245 Transfer
775144 Transfer
-313132 Transfer
378260 Transfer
-380152 Transfer
8008 Transfer
-3081 Transfer
9316 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.10
1.06
1.08
1.07
1.08
1.07
1.10
1.10
1.11
1.11
1.13
1.10
1.11
1.08
1.10
1.07
1.09
1.08
1.10
1.08
1.08
1.07
1.08
1.08
1.11
1.11
1.13
1.13
1.13
1.13
1.13
1.19
1.17
1.19
1.17
1.17
1.17
1.17
15458780
14877257
15082424
15036052
15105544
15059876
15369508
15368902
15575975
15513975
15859006
15412558
15511398
15156530
15353899
14968742
15231565
15151514
15440015
15152184
15160680
15017113
15109213
15101718
15526348
15525927
15897710
15894567
15896216
15882186
15886431
16661575
16348443
16726703
16346551
16354559
16351478
16360794
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.)
14/09/2018
21/09/2018
21/09/2018
28/09/2018
28/09/2018
05/10/2018
05/10/2018
12/10/2018
12/10/2018
19/10/2018
19/10/2018
26/10/2018
26/10/2018
02/11/2018
02/11/2018
09/11/2018
09/11/2018
16/11/2018
16/11/2018
23/11/2018
23/11/2018
30/11/2018
30/11/2018
07/12/2018
07/12/2018
14/12/2018
14/12/2018
21/12/2018
21/12/2018
28/12/2018
28/12/2018
31/12/2018
31/12/2018
04/01/2019
04/01/2019
11/01/2019
11/01/2019
18/01/2019
Reason
Increase/
Decrease
in share
holding
-282 Transfer
1341 Transfer
-105046 Transfer
267198 Transfer
-505324 Transfer
59126 Transfer
-227706 Transfer
65614 Transfer
-126402 Transfer
579218 Transfer
-2765 Transfer
433025 Transfer
-413 Transfer
1043310 Transfer
-27 Transfer
347402 Transfer
-112 Transfer
15561 Transfer
-85258 Transfer
111 Transfer
-132502 Transfer
215191 Transfer
-236726 Transfer
73031 Transfer
-91062 Transfer
218733 Transfer
-281375 Transfer
45771 Transfer
-263772 Transfer
43941 Transfer
-734 Transfer
8952 Transfer
-534 Transfer
271901 Transfer
-21369 Transfer
389485 Transfer
-312758 Transfer
30 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.17
1.17
1.16
1.18
1.14
1.15
1.13
1.14
1.13
1.17
1.17
1.20
1.20
1.27
1.27
1.30
1.30
1.30
1.29
1.29
1.28
1.30
1.28
1.29
1.28
1.30
1.28
1.28
1.26
1.26
1.26
1.26
1.26
1.28
1.28
1.31
1.29
1.29
16360512
16361853
16256807
16524005
16018681
16077807
15850101
15915715
15789313
16368531
16365766
16798791
16798378
17841688
17841661
18189063
18188951
18204512
18119254
18119365
17986863
18202054
17965328
18038359
17947297
18166030
17884655
17930426
17666654
17710595
17709861
17718813
17718279
17990180
17968811
18358296
18045538
18045568
151
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Name of the Share Holder
Date
Sl.
No.
18/01/2019
25/01/2019
01/02/2019
01/02/2019
08/02/2019
08/02/2019
15/02/2019
15/02/2019
22/02/2019
22/02/2019
01/03/2019
01/03/2019
08/03/2019
08/03/2019
15/03/2019
15/03/2019
22/03/2019
22/03/2019
29/03/2019
29/03/2019
At the end of the year
Shareholding at the
beginning of the Year
08/03/2019
15/03/2019
22/03/2019
29/03/2019
At the end of the year
Shareholding at the
beginning of the Year
20/04/2018
27/04/2018
01/06/2018
08/06/2018
22/06/2018
24/08/2018
31/08/2018
25/01/2019
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
11 NOMURA INDIA INVESTMENT
FUND MOTHER FUND
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons 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 reasons for increase
and decrease (e.g. allotment/
transfer/bonus/sweat etc.)
Reason
Increase/
Decrease
in share
holding
-17549 Transfer
7939 Transfer
20117 Transfer
-351633 Transfer
8372 Transfer
-661396 Transfer
414242 Transfer
-270655 Transfer
245252 Transfer
-12719 Transfer
61697 Transfer
-90 Transfer
464991 Transfer
-223 Transfer
950 Transfer
-113336 Transfer
317598 Transfer
-145225 Transfer
1721273 Transfer
-5059 Transfer
-150103 Transfer
-810725 Transfer
-90000 Transfer
-250000 Transfer
-36000 Transfer
-64000 Transfer
-69006 Transfer
-30000 Transfer
-3000 Transfer
-9000 Transfer
-8000 Transfer
-59294 Transfer
152
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
1.29
1.29
1.29
1.26
1.26
1.22
1.25
1.23
1.24
1.24
1.25
1.25
1.28
1.28
1.28
1.27
1.29
1.28
1.41
1.41
1.41
1.03
1.01
0.96
0.95
0.93
0.93
0.97
0.97
0.96
0.96
0.96
0.96
0.95
0.95
0.95
18028019
18035958
18056075
17704442
17712814
17051418
17465660
17195005
17440257
17427538
17489235
17489145
17954136
17953913
17954863
17841527
18159125
18013900
19735173
19730114
19730114
14377891
14227788
13417063
13327063
13077063
13077063
13596609
13560609
13496609
13427603
13397603
13394603
13385603
13377603
13318309
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.)
01/02/2019
08/02/2019
22/02/2019
01/03/2019
08/03/2019
15/03/2019
22/03/2019
29/03/2019
At the end of the year
(v) Shareholding of directors and Key Managerial Personnel:
Reason
Increase/
Decrease
in share
holding
-15706 Transfer
-153800 Transfer
-100000 Transfer
-200000 Transfer
-124000 Transfer
-51525 Transfer
-40000 Transfer
-185000 Transfer
Cumulative Shareholding
during the Year
No. of
Shares
% of total
shares
of the
Company
0.95
0.94
0.93
0.92
0.91
0.90
0.90
0.89
0.89
13302603
13148803
13048803
12848803
12724803
12673278
12633278
12448278
12448278
Sl.
No.
1
2
3
Name of Director / KMP
A. M. NAIK
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc);
S. N. SUBRAHMANYAN
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
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):
Shareholding at the
beginning of the year
No. of
shares
At the Beginning of the year
424,958
% of total
Shares
of the
Company
0.03
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
11-Aug-18
213,084
0.02
52,500 ESOP exercise
424,958
0.03
At the End of the year
At the beginning of the year
11-Aug-18
306,000
0.02
22,500 ESOP exercise
265,584
0.02
At the End of the year
328,500
0.02
153
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
11-Aug-18
75,125
15,000
% of total
Shares
of the
Company
0.01
ESOP exercise
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
46,054
0.00
90,125
0.01
At the End of the year
At the beginning of the year
64,312
0.00
46,054
0.00
Sl.
No.
4
5
6
Name of Director / KMP
SHAILENDRA N. ROY
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
D. K. SEN
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
M. V. SATISH
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
7
J. D. PATIL
At the End of the year
As on the date of
appointment as director
172,260
0.01
64,312
0.00
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
11-Sep-18
24-Sep-18
08-Oct-18
23-Oct-18
500
500
340
500
Market
Purchase
Market
Purchase
Market
Purchase
Market
Purchase
8
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):
At the End of the year
At the beginning of the year
2,443
0.00
174,100
0.01
At the End of the year
2,443
0.00
154
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
1,125
% of total
Shares
of the
Company
0.00
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
At the End of the year
At the beginning of the year
225
0.00
1,125
0.00
At the End of the year
At the beginning of the year
1,327
0.00
225
0.00
At the End of the year
At the beginning of the year
225
0.00
1,327
0.00
02-May-18
-225
Ceased as
Director
At the End of the year
At the beginning of the year
150
0.00
At the End of the year
At the beginning of the year
7,680
0.00
–
0.00
–
-
150
–
Sl.
No.
9
10
11
12
13
14
Name of Director / KMP
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):
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):
At the End of the year
7,680
0.00
155
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Sl.
No.
15
16
17
18
19
Name of Director / KMP
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
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):
THOMAS MATHEW T.
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc):
AJAY SHANKAR
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc):
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
1,500
% of total
Shares
of the
Company
0.00
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
At the End of the year
At the beginning of the year
4,500
0.00
1,500
0.00
At the End of the year
At the beginning of the year
150
0.00
4,500
0.00
At the End of the year
At the beginning of the year
150
0.00
150
0.00
At the End of the year
At the beginning of the year
150
0.00
150
0.00
At the End of the year
150
0.00
156
Sl.
No.
20
21
22
23
24
Name of Director / KMP
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):
ARVIND GUPTA jointly with
ADMINISTRATOR OF THE
SPECIFIED UNDERTAKING
OF THE UNIT TRUST OF
INDIA
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc):
HEMANT BHARGAVA
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):
HEMANT BHARGAVA
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc):
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
31,650
% of total
Shares
of the
Company
0.00
05-Apr-18
25-Jan-19
31,500
31,500
ESOP exercise
ESOP exercise
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
150
0.00
94,650
0.01
At the End of the year
At the beginning of the year
100
0.00
150
0.00
At the End of the year
As on 28th May 2018
100
0.00
100
0.00
At the End of the year
As on 28th May 2018
90
0.00
100
0.00
At the End of the year
90
0.00
157
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
Shareholding at the
beginning of the year
No. of
shares
At the beginning of the year
34,710
% of total
Shares
of the
Company
0.00
Cumulative Shareholding
during the year
No. of
shares
% of total
Shares
of the
Company
Sl.
No.
25
Name of Director / KMP
N. HARIHARAN
Date wise Increase / Decrease
in Promoters Share holding
during the year specifying the
reasons for increase /decrease
(e.g. allotment / transfer /
bonus/sweat equity etc):
V.
INdEBTEdNESS
Indebtedness of the company including interest outstanding /accrued but not due for payment as on
31st March 2019
At the End of the year
34,710
0.00
Secured Loans
excluding
deposits
Unsecured
Loans
deposits
v crore
Total
Indebtedness
Indebtedness at the beginning of the
financial year
i) principal Amount*
525.17
10035.83
ii)
Interest due but not paid*
iii) Interest accrued but not due*
–
–
–
–
Total (i+ii+iii)
525.17
10035.83
Change in Indebtedness during the
financial year
Addition^
Reduction
exchange gain / (loss)
Interest accrued but not due
Net change
Indebtedness at the end of the
financial year
i)
ii)
principal Amount*
Interest due but not paid*
iii)
Interest accrued but not due*
Total (i+ii+iii)
4741.36
(5247.89)
5.90
–
(500.63)
15111.71
(15345.60)
365.09
–
131.20
24.54
10167.03
–
–
–
–
24.54
10167.03
–
–
–
–
–
–
–
–
–
–
–
–
–
10561.00
–
–
10561.00
19853.07
(20593.49)
370.99
–
(369.43)
10191.57
–
–
10191.57
*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.
158
VI. rEMUNEraTIoN oF dIrECTorS aNd KEY MaNaGErIaL PErSoNNEL
a. rEMUNEraTIoN To MaNaGING dIrECTor, WHoLE-TIME dIrECTorS aNd / or MaNaGEr:
Sl.
No.
1
2
3
4
5
Particulars of Remuneration
Gross salary
(a) Salary as per provisions
contained in section 17(1) of
the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961
(c) Profits in lieu of salary under
section 17(3) Income tax Act,
1961
Stock Option
Sweat Equity
Commission
- as % of profit
- others, specify…
Others (Contribution to Provident
Fund & Superannuation Fund)
Total (A)
Ceiling as per the Act
R SHANKAR RAMAN
Name of MD / WTD / Manager
D.K SEN
SHAILENDRA ROY
M.V SATISH
J. D. PATIL
V crore
Total
Amount
S N
SUBRAHMANYAN
2.400
1.710
1.590
1.230
1.230
1.050
9.210
21.780
7.468
3.150
0.120
0.220
0.180
32.918
–
–
–
18.603
5.671
–
–
–
12.154
3.743
–
–
–
7.049
2.332
48.454
25.075
14.121
–
–
–
4.186
1.462
6.998
–
–
–
5.985
1.948
9.383
–
–
–
–
–
–
5.283
1.710
8.223
53.260
–
16.866
112.254
877.50
B. rEMUNEraTIoN To oTHEr dIrECTorS
Sl.
No.
Particulars of
Remuneration
A M Naik# M M Chitale
Subodh
Bhargava
M
Damodaran
Vikram Singh
Mehta
Sushobhan
Sarker
Adil
Zainulbhai
Name of Directors
Akhilesh
Gupta
Sunita
Sharma*
Thomas
Mathew T
Ajay Shankar Subrmanian
Sarma
Naina Lal
Kidwai
Sanjeev Aga Narayanan
Kumar
Arvind
Gupta*
Hemant
Bhargava*
0.126
0.122
0.106
0.095
0.122
0.088
0.122
0.102
0.088
0.116
0.118
0.381
0.531
0.383
0.349
0.354
0.174
0.308
0.280
0.174
0.260
0.279
0.507
0.653
0.489
0.444
0.476
0.262
0.430
0.382
0.262
0.376
0.397
0.012
0.047 *
0.059
0.059
0.476
0.262
0.020
0.013
0.033
0.033
0.507
0.653
0.489
0.444
0.430
0.382
–
0.262
0.376
0.397
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
0.122
5.000
3.033
8.155
8.155
V crore
Total
Amount
1.205
3.473
–
4.678
0.078
0.020
0.252
0.155
0.017
0.233
0.233
0.037
0.037
5.232
3.033
8.517
13.195
125.449
965.25
@ Others includes pension of R 3 crore and perquisite value of housing and medical R 0.033 crore
* Paid to the institutions they represent
#
Does not include the perquisite value related to ESOPs exercised during the year in respect of stock options granted over the past several years by Larsen & Toubro Infotech Limited and L&T Technology Services
Limited of R 213.39 crore.
159
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
C. rEMUNEraTIoN To KEY MaNaGErIaL PErSoNNEL oTHEr THaN Md / MaNaGEr / WTd
Particulars of Remuneration
Key Managerial Personnel
CEO
Company
Secretary (N.
Hariharan)
CFO
V crore
Total
Sl.
No.
1
2
3
4
5
Gross salary
(a) Salary as per provisions contained
in section 17(1) of the Income-tax
Act, 1961
(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
1.136
0.004
Not Applicable
Not Applicable
authority [rd/
NCLT/CoUrT]
appeal made,
if any (give
details)
0.088
1.228
details of
Penalty/
Punishment/
Compounding
fees imposed
NIL
NIL
NIL
VII. PENaLTIES / PUNISHMENT/ CoMPoUNdING oF oFFENCES:
Type
Section of the
Companies act
Brief
description
a. CoMPaNY
penalty
punishment
Compounding
B. dIrECTorS
penalty
punishment
Compounding
C. oTHEr oFFICErS IN dEFaULT
penalty
punishment
Compounding
160
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
of the Company and the cash requirement for financing
the Company’s future growth. In line with the past
practice, the payout ratio is expected to grow in
accordance with the profitable growth of the Company
under normal circumstances.
dECLaraTIoN oF dIVIdENd
Dividend shall be declared or paid only out of-
1) Current financial year’s profit:
a) after providing for depreciation in accordance
with law;
b) after transferring to reserves such amount as
may be prescribed or as may be otherwise
considered appropriate by the Board at its
discretion
2) the profits for any previous financial year(s) after
providing for depreciation in accordance with law
and remaining undistributed; or
3) out of 1) & 2) both.
the circumstances under which shareholders may not
expect dividend/or when the dividend could not be
declared by the Company shall include, but are not
limited to, the following:
a. Due to operation of any other law in force;
b. Due to losses incurred by the Company and the
Board considers it appropriate not to declare dividend
for any particular year;
c. Due to any restrictions and covenants contained in
any agreement as may be entered with the Lenders
and
d. Due to any default on part of the company.
FaCTorS aFFECTING dIVIdENd dECLaraTIoN
the Dividend pay-out decision of any company, depends
upon certain external and internal factors-
External Factors:
•
Legal/ Statutory Provisions and Regulatory concern:
the Board should keep in mind the restrictions
imposed by Companies Act, any other applicable
laws with regard to declaration and distribution
161
aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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.
162
annexure ‘H’ to the Board report
NoMINaTIoN aNd rEMUNEraTIoN PoLICY
2. dEFINITIoNS:
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;
zz
Devising a policy on Board diversity;
2.1. act means the Companies Act, 2013 or Companies
Act, 1956 as may be applicable and Rules framed
thereunder, as amended from time to time.
2.2. Board means Board of Directors of the Company.
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. Presently,
persons in Sr. Vice President grade and F&a
heads of Independent Companies reporting to
Whole-time directors will be covered as Senior
Management Personnel.
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
Formulate the criteria for determining
qualifications, positive attributes and
independence of a director.
zz
Identify persons who are qualified to become
Director and persons who may be appointed
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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.
3.2. Policy for appointment and removal of director,
KMP and Senior Management
3.2.1. appointment criteria and qualifications
a) the Committee shall identify and ascertain the
integrity, qualification, expertise and experience
of the person for appointment as Director and
recommend to the Board his/her appointment.
Appointment and Remuneration of KMp or
Senior Management personnel is in accordance
with the HR policy of the Company. the
Company’s policy is committed to acquire,
develop and retain a pool of high calibre talent,
establish systems and practises for maintaining
transparency, fairness and equity and provides
for payment of competitive pay packages
matching industry standards.
b) A person should possess adequate qualification,
expertise and experience for the position he / she
is considered for appointment. the Committee
has discretion to decide whether qualification,
expertise and experience possessed by a person
is sufficient / satisfactory for the concerned
position.
c) the Company shall not appoint or continue the
employment of any person as Director who has
attained the retirement age fixed by the Board or
as approved by the Shareholders pursuant to the
requirement of the Act/LoDR.
3.2.2. Term / Tenure
a) Executive directors:
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.
b)
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
Company in any other capacity, either
directly or indirectly.
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.
c) Maximum Number of directorships:
-
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
164
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 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
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
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aNNEXUrE to tHe BoARD RepoRt ANNUAL RepoRt 2018-19
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
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.
director:
5. CHaIrPErSoN
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 R 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:
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.
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 Chairman of the Nomination and Remuneration
Committee meeting could be present at the Annual
General Meeting or may nominate some other
member to answer the shareholders’ queries.
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. CoMMITTEE MEMBErS’ INTErESTS
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
166
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
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.
Senior Management and regularly reviewing the plan;
11.4 to consider any other matters as may be requested by
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.
the Board.
11.5 professional indemnity and liability insurance for
Directors and senior management.
12. MINUTES oF NoMINaTIoN aNd rEMUNEraTIoN
CoMMITTEE MEETING
proceedings of all meetings must be minuted and signed
by the Chairman of the Committee at the subsequent
meeting. Minutes of the Committee meetings will be
tabled at the subsequent Board and Committee meeting.
13. rEVIEW & aMENdMENT:
the policy shall be reviewed as and when required
to ensure that it meets the objectives of the relevant
legislation and remains effective. the executive
Committee has the right to change/amend the policy as
may be expedient taking into account the law for the
time being in force.
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MANAGEMENT DISCUSSION AND ANALYSIS ANNUAL REPORT 2018-19
MANAGEMENT
DISCUSSION
AND
ANALYSIS
Indian Economy
The year 2018-19 saw the Indian economy yielding the
benefits of structural reforms, viz Goods & Service Tax
(GST), Demonetisation and Insolvency & Bankruptcy Code
(IBC). The year witnessed a pick-up in project awards,
improved clearances and fund allocation, resulting in a
pick-up in execution momentum in the domestic market.
The domestic economy continues to be driven by public
sector investments, mainly in areas of water supply,
irrigation, urban transportation, crude exploration and
refining, roads allied infrastructure and rural electrification.
The domestic investment momentum was healthy despite
the multiple challenges on the economic front, with volatile
crude oil prices, currency swings, pressure on fiscal and
current account deficits, sharp temporary contraction in
liquidity and the general elections held in Q1 of FY2019-20.
The Government’s ‘Make in India’ initiative for the Defence
sector continues to progress slowly due to bureaucratic
inertia and complex procurement procedures.
Investment by private sector saw significant traction,
with pick up in award of large value contracts in airport
expansion and health sector. Also some momentum was
seen in private sector capacity expansion. However, the
overhang of bad debt, rising policy uncertainties and low-
capacity utilization continue to impact the Indian industry
capex. The power and manufacturing sectors remained the
worst affected. Surplus inventory in the residential sector
and limited pick-up in requirement of new construction led
to lower investments.
The general elections held in Q1 of FY 2019-20 could
result in volatility in the domestic market and slowdown
in Government machinery, although the effects will be
transitory in nature.
Global Economy
In the year 2018-19, the global economy saw significant
volatility. The US economy has accelerated at its finest pace
in last four years due to monetary stimulus and tax cuts
during the current year. The biggest risk facing economies
is the growing evidence that global growth and trade are
weakening. The slowing of the Chinese economy, along
with growing evidence of European growth under pressure,
cast a big cloud of uncertainty.
Unsettled trade tensions and developments around Brexit
may continue to impact the cross- border trades, while
oil-price volatility may impart a further downside risk to
the outlook in the investment climate in the Middle East
markets.
The Company has identified certain thrust areas and
strategies, viz. leveraging ongoing digitalisation efforts,
operational efficiencies, reducing working capital levels,
unlocking business values, forays into new geographies,
168
innovating business, inorganic growth and continuing ROE
enhancement.
DIGItALISAtION AND It INItIAtIVES
As part of the Lakshya 2016-21 plan, Digital was identified
as one of the major initiatives for the Company. In
February 2016, a team was constituted to implement
digital solutions with a focus on operational effectiveness,
facilitating timely completion and cost savings.
The initial concentration of digital solutions has been
mainly in the Construction business, the largest segment
of the Company. The digital solutions aim to improve
utilization of equipment, increased productivity, savings in
fuel, reduction in material wastage and real-time visibility
of all aspects of operations, thereby enabling better
monitoring and effective data-based decision making to
remove bottlenecks and improve timely completion.
Digital journey
The Company has established a young, talented and
spirited team responsible for creating digital solutions and
driving their implementation.
The team operates through a Hub and Spoke model with
a central team at the Divisional Corporate Office level.
This team defines the digital strategy, the technology
and architecture choices, the vendor selection and
development, solution design and development.
The Digital Officers and their small teams at the business
level seek requirements from the businesses and also take
charge of the roll outs. Every project site has an identified
Digital Champion who helps implement, monitor and spur
usage at the sites.
Over the years, the Company’s digitalisation journey has
come a long way and a very large number of solutions have
been developed and deployed at scale across hundreds of
the project sites.
Remote Monitoring of Equipment at
Project Sites
The usage of a variety of Plant and Equipment at project
sites helps greatly in ensuring faster construction and
better quality. L&T has a large fleet of equipment of various
makes and models and of different vintages, sourced from
various OEMs.
The Company’s digital solution ‘Asset Insight’ remotely
monitors various performance parameters of the
equipment using the Internet of Things (IOT) technology.
Installing multiple sensors and an intelligent gateway on
the equipment, enables the business to obtain real-time
operational, production and condition data on the
equipment, without human intervention.
Some of these data points are location, movement,
switch on and switch off time, idling time and work done,
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MANAGEMENT DISCUSSION AND ANALYSIS ANNUAL REPORT 2018-19
number of hours worked, pressure, temperature and fuel
consumption and many other variables, depending on the
type of equipment.
Out of the 12000 equipment identified, currently about
9500 equipment at project sites are connected and
streaming data in real time for monitoring.
All the data is analysed and insights shown to the end users
and managers through user-friendly dashboards to enable
them to take action to optimise usage, improve utilization,
redeploy where necessary and realize benefits.
Workmen Availability and Productivity
Workmen are key to a project site and their availability
and productivity have a major role in completing a project
in time. Digital solutions are implemented for mobilizing
workmen, on-boarding workmen and monitoring
productivity of workmen. These solutions use technologies
like mobility, wearables and RFID suitably tailored to meet
specific needs.
Workmen Safety
The safety of workmen is paramount. Digitalisation can
play an important role in improving the safety levels of
the workmen and the following solutions have been
implemented to achieve the same:
a. Safety Processes Digitalisation – All safety checklists
and processes have been digitalized by putting them on
a mobile App. This ensures better compliance and also
saves time required for approvals and corrections.
b. Safety Inspections are also recorded on an App for all
kinds of assets, tools and tackles, harnesses and slings,
etc. This ensures that inspections are carried out with
rigour and at the right periodicity to ensure safety.
c. Safety training – Using Virtual Reality (VR) &
Augmented Reality (AR)
The Company has developed Immersive Virtual Reality
and Augmented Reality films demonstrating the
correct safety practices covering a number of scenarios
like working at a height, material handling, heavy
vehicle management, working at an excavation site,
working with HT lines, safety barricading, work permits
and working in a marine environment. These films,
translated in multiple Indian languages, are deployed
on headgear at the sites and are administered to all the
workmen. They help create a vivid immersive experience
and imprint the rules of safety firmly in the minds of the
workmen
Geospatial Solutions
A variety of data acquisition technologies are used, ranging
from GNSS (Global Navigational Satellite systems) to aerial
vehicles (piloted and unmanned), drones, mobile vehicles
on land and terrestrial total stations. These capture data
through optics, Laser technology (LIDAR), radio waves
(RADAR) and thermal imaging.
These images are processed using complex geospatial
engineering techniques and powerful data processing
software. These results are communicated to end users
and design engineers through user-friendly web pages and
integrated with other data and applications as required.
Geospatial technologies thus enable the business to
perform pre-bid surveys essential for bid making much
faster and with a much higher degree of accuracy and thus
can make engineering estimations more accurate.
Materials tracking Solutions
A number of generic and project-specific solutions
have been deployed to track materials from issue to
consumption for a variety of materials and also to establish
traceability and for reconciliation of materials. These
solutions use technology such as GPS, RFID, Barcode and
QR codes, combined with mobility solutions and web
portals.
Analytics
The Company has established a Big Data Analytics platform
called ‘Alchemy’. The data from all the digital solutions
deployed are pumped into this platform and a number
of analytics operations are performed to gain insights on
aggregated data and combinations of data from different
systems across the value chain. Descriptive analytics is being
performed and the company is also moving into predictive
and prescriptive analytics.
All these insights from running the algorithms and
performing analytics are presented to the users in a
rich visualisation platform as user-friendly dashboards,
facilitating quick action for realising benefits.
Digital Initiatives in Manufacturing:
The focus of digitalisation in businesses like Heavy
Engineering, Defence, Power, Hydrocarbon and Electrical
& Automation has been on manufacturing. Industry
4.0 processes are adapted to increase automation in
manufacturing and connected machines ensuring visibility
across the manufacturing cycle. The large welding
machines at the Company’s Hazira factory have not only
been connected but also automated to ensure significantly
170
higher outputs and consistent quality. Advanced
technologies like 3D scanning, laser marking and mapping
are used to ensure accuracy in the manufacturing and
fabrication processes. A number of industrial robots have
also been installed at various factories to speed up the
cycles and ensure precision at all times.
The success of such an initiative is also determined by
effective change management, which is addressed through
the top management clearly articulating the necessity and
importance of digitalisation and its benefits at every forum.
Digital has been incorporated into the curriculum of all
the important training programmes in the Company and
sessions are being held regularly.
Special newsletters on digital initiatives have been
published and dissemination of information to all the
staff is being done regularly through various employee
engagement solutions.
A Digital Council consisting Chief Digital Officers from
all the businesses has been formed in order to share best
practices, inspire each other and build synergies.
CORPORAtE HR INItIAtIVES
L&T is rapidly evolving. The Company’s current growth
strategy is in line with the perspective plan to augment
its presence in platforms and services to future-proof its
portfolio. L&T ranked #22 on Forbes Global 2000 – Worlds
Best Employers list. This was possible by developing and
nurturing a powerful and preferred employer brand.
Various HR initiatives have been curated and implemented
with consistency to build this brand. HR practices at L&T are
developed to address diverse needs of both millennials and
veterans. Diversity has been a touchstone at L&T, keeping
with the multicultural plurality of the nation.
campuses in Mysuru and Madh. CTEA develops and
conducts technical, functional and business-specific training
programs.
L&T is a pioneer in running Development Centres (DCs).
Over 16,000 assessments have been conducted to identify
and develop leadership behaviour at all levels. This is
critical for succession planning. The DC process uses the
expertise of high quality external assessors, with systematic
interventions and a culture of constructive feedback.
A robust 7-step leadership pipeline development model has
been institutionalised at L&T for over a decade. Each step
is curated and delivered by eminent faculty, suited to L&T’s
dynamic business needs. The Company has partnered with
world-renowned domestic and international B-schools such
as INSEAD, Ross Business School, Harvard Business School,
IIM Ahmedabad, etc. Each step is a learning journey
coupled with high-impact action learning projects (ALP)
undertaken by participants, which are periodically reviewed
by eminent faculty as well as top management within L&T.
This ensures direct application of learnings at workplace,
thereby yielding a higher ROI and learning retention. The
7-step model has become a benchmark and earned L&T
the prestigious Brij Mohan Munjal Award for Business
Excellence through Learning & Development.
L&T believes in nurturing a multi-generational workforce
and grooming young talent. Through its efforts in
sustaining a healthy association with top Engineering
and MBA institutes, L&T today boasts of a demographic
dividend with 65% employees under 35 years of age.
Engagement studies have shown that L&T is a very
safe place to work for women. Both employment and
retention of women at L&T is rapidly increasing due to this
confidence.
L&T’s Leadership Development Academy (LDA) at Lonavala
is a crucible for ideas and learning. It is a sought-after
destination for all kinds of learning interventions, with its
sprawling green campus and state-of-the-art facilities.
Some specific domain-oriented programmes have also been
developed, such as the L&T Build India Scholarship, through
collaboration with top IITs and NITs, to impart niche domain
skills relevant to L&T’s continued success.
L&T has digitalised its learning delivery. An AI-driven
digitalised platform, called ATLNext, caters to the myriad
learning needs of a widely distributed and young on-the-go
workforce.
The Institute for Project Management (IPM) was set up by
L&T at Vadodara and Chennai. This is a unique institution
with its own Dean and Faculty. It has collaborations
with leading universities for imparting project execution
skills to L&T-ites. There is also an academy called Centre
for Technology & Engineering Application (CTEA), with
All the business entities at L&T have an Employee
Assistance Program (EAP), in line with the Company’s caring
culture. For instance, L&T has tied up with Tata Institute
of Social Sciences (TISS), for an EAP titled iCALL, a mental
health initiative.
Also implemented in L&T are various multiple outreach
programmes, involving skill development and upliftment
schemes. As L&T takes strides towards the new world of
digitalisation, services and platforms, the synchrony of head
and heart in HR practices continues to reinforce confidence
amongst its stakeholders for a bright future.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
INFRASTRUCTURE
BUSINESS
Domestic Construction Sector
The Infrastructure segment – especially the EPC
sector – has witnessed a decent order inflow in the last
four quarters, driven mainly by Government Capex. On
the other side, private / corporate Capex has declined
for 7 years in succession over FY12-FY18. The Power
sector, especially, faces an over-supply situation, with
corporates in the sector having created significant
capacity over the past decade in transmission and
distribution to drive investments.
Given the favourable macro situation, the
implementation rate of infra projects has improved
considerably in FY 2018-19, also driven by general
elections in Q1 of FY 2019-20.
On the irrigation front, apart from Telangana, Andhra
Pradesh, Karnataka, Gujarat, Haryana and Madhya
Pradesh, Odisha has also significantly enhanced its
irrigation investments.
Urban Infrastructure, which is the key focus of the
current Government, played a key role over the years
and is likely to continue in future with implementation
of Smart Cities, Water Infrastructure, Housing for All
under Pradhan Mantri Awas Yojana.
The Railways, always a key focus area, received a
decent share of India’s overall Budget, and have been a
Statue of Unity, Gujarat, built by L&T is the world’s tallest statue.
consistent spender of almost its entire budget amount
during the last few years.
In the Roads sector, the EPC mode, which contributed
65–70% of the total cost of projects awarded by NHAI
during the FY14–16 periods, has taken a backseat.
Single-segment road players have seen a relatively lower
inflow of ‘new’ orders – on the back of slowdown in
order award activity by NHAI. NHAI has awarded only
550 km of projects in FY 18-19 as compared to 7400
km in the previous year – leading to muted inflows.
Moreover, over the last two fiscals, the HAM Model has
taken the sweet spot, with EPC projects forming just
30–35% of the cost of projects awarded. A comeback
of the EPC mode in FY 2019-20 will be a game changer
for the sector.
Global Construction Sector
The global construction sector has hit a peak in the
construction cycle during the past 10 years (2008-
2018). 2019 is expected to be a turning point for the
global construction industry, and the impact of cooling
down is being felt gradually. The emerging markets
dominated the overall global infra growth over the last
few years, while the developed markets have not fully
regained their pre-crisis volumes.
Going ahead, slowing GDP growth and tighter financial
and monetary conditions will drive the deceleration in
certain infra verticals.
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Bengaluru International Airport - One of 11 built by L&T
The Middle East infra / construction market is undergoing
an encouraging paradigm shift, with a steady recovery
in certain regions. A moderate recovery in oil prices is
expected to play a decisive role in boosting investments in
both infrastructure and capital projects. In addition, massive
projects in Social Infra, Smart Environment, Transportation
Infra and Renewable Energy are expected to be game-
changers which aren’t linked to the oil industry.
BUILDINGS AND FACtORIES
Dedicated engineering design centres, competency
cells, advanced formwork systems, mechanized
project execution, a wide network of consultants
and vendors, digitised project control and a talented
pool of employees helps sustain leadership position,
retaining key customers, entering new geographies
and securing major orders. Construction excellence,
technology, experience and expertise gained over
several decades gives the business a competitive
advantage in the construction industry.
Overview:
L&T’s Buildings & Factories (B&F) business is an
industry leader in Engineering, Procurement
and Construction (EPC) of projects ranging
from airports, hospitals, stadiums, retail spaces,
educational institutions, IT parks, office buildings,
data centres to elite residential buildings, high-rise
structures, mass housing complexes, cement plants,
industrial warehouses and other factory structures.
The business has a track-record of building tall,
large and complex structures across India and
overseas. It also offers total solutions including
in-house design expertise using advanced systems
like BIM 3D, 4D and BIM 360 field, an efficient
supply chain management and extraordinary project
management expertise across all the business lines
cited here.
Business Environment
The last few years have been extremely challenging for
the construction industry, but improvement is evident.
The difficulties in the implementation of RERA and GST
have settled down. The country’s increasing impetus on
developing infrastructure has attracted investment from
major global players.
Private-sector investments in airports have shown positive
trends, and the business was awarded major airport
projects during the year.
The automobile industry is expected to register growth in
the forthcoming quarters. The manufacturing segment too
is on an upswing.
Although IT majors are wary of expansion plans, there
is some movement in the sector as a few of them are
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Govt Medical College Baripada, Odisha
ICC Towers, Mumbai
showing positive signs of developing a new IT campus in
the upcoming year.
The developer market for commercial spaces is picking up,
particularly in metros and Tier -2 cities of India.
The Government’s ambitious new health insurance scheme,
Ayushman Bharat has got off to a good start. With the
announcement of setting up new All India Institutes of
Medical Science (AIIMS) in Tamil Nadu, Telangana and
Gujarat, the overall business scenario seems positive for the
segment.
Bengaluru and Hyderabad. Orders were also secured for
engineering, procurement and construction of one of the
tallest office structures in Amravati, construction of Cancer
hospitals at 18 locations in Assam, expansion of the IIT
Campus at Hyderabad, a commercial complex from a major
developer and construction of a botanical garden at Oman.
Key projects commissioned by the business during the year
include:
• Statue of Unity, Gujarat (at 182 m high, the tallest statue
in the world, completed in just 33 months)
The huge inventory level of 6.6 lakh houses has drastically
reduced investment in the elite housing sector. Affordable
and mass housing has picked up, and more projects are
expected in FY 2019-20, which will create good prospects
for the business.
Government orders have slowed down and will continue
to remain so, with general elections in first quarter of
FY 2019-20.
• Kannur International Airport
• ITC Kapurthala
• AP Housing – West Godavari
• Apollo OMR, Chennai
• Duqm Airport, Oman
• Sindhudurg Airport
Major Achievements
The year’s Order Book includes breakthrough orders for
airports and hospitals from prestigious clients.
Major orders were secured in the airports segment
including the expansion of international airports: Delhi,
174
During the year the business won the following awards:
1. Received six British Sword of Honor awards and five-star
certification from the British Safety Council, for third
time in a row
Motera Cricket Stadium, Gujarat, will be the world’s largest
cricket stadium
ITC Food Manufacturing and Logistics Facility, Kapurthala
2. Fourteen Projects won Gold Awards and one project
won a Silver Award from The Royal Society For
Prevention of Accidents ( RoSPA)
3. Eight projects won National Infrastructure &
Construction Awards 2018
4. Four projects won CIDC Vishwakarma Awards
5. Four projects won ICI Awards
6. Won a Construction Week Award 2018, a MEED
Quality Award for the Year 2018 in Oman and a MACE
Global - Health, Safety & Well Being Award - 2018 for
outstanding safety performance on site
Significant Initiatives
Apart from being the front-runner in adopting technology
to improve productivity, the business has been using
integrated digital tools like BIM, GIS, RFID, LIDAR and other
technologies effectively in its project sites.
Digitalisation
Initiatives for digital stores have started to enable accurate
analysis of stock at site. The business will continue to use
collaborative digital tools to achieve cost optimization and
construction excellence. It is a pioneer in using robotics
in the construction space. At a few sites, robotic internal
plastering and painting is being attempted; this is 30 times
more efficient than manual application. The business is
also a leader in productivity monitoring using RFID tags
interlinked with biometrics. It has successfully employed
visual analytics and AI in weighbridge solutions.
Environment, Health and Safety
Safety at work is of utmost importance to the business.
It continuously strives for a safety culture by organizing
various training and awareness programmes throughout
the year. The business has been using virtual reality devices
and training modules for safety training. Various initiatives
have been taken up to digitally monitor, record and review
all safety and quality related aspects at site.
Human Resources
The business strongly believes that people are the prime
assets of the organization, and implements new initiatives
to train and motivate them. A new initiative – Building the
Future – was adopted during the year. Over 500 employees
were offered the opportunity to come up with suggestions
on select parameters – with the objective of getting fresh,
out-of-the-box recommendations towards building the
growth strategy. Shortlisted employees were then grouped
into teams to present their ideas to the senior leadership
team.
The Front-Line Supervisor Programme (FLS) was
conceptualized in October 2015 with the objective of
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Delhi Metro Phase 3 snakes its way across Delhi-Haryana Border
ITC Green, Bnegaluru - one of the many leisure resorts being
developed by L&T
strengthening the bottom layer of the organization
pyramid. Since inception, 521 FLSs (FY 2018-19: 244) have
been inducted in 15 batches under various functions like
Concrete, Shuttering & Reinforcement, Finishes, P&M and
MEP. After the training, they undergo NSDCI (National Skill
Development Corporation of India) Board assessment, and
are deployed at project sites accordingly.
Initiatives to strengthen the teams of sub-contract
workmen have been taken. Periodic meetings were held
to enable them understand benefits such as BOCW, PF,
etc. Aadhar camps were held to facilitate registration /
modification. Skill training was imparted through L&T’s
in-house Construction Skills Training Institute.
Risk and Concerns
The liquidity crunch has been prevailing in the real estate
market for over a year, and many owners / developers
are financially stressed. The Regulatory compliance by
developers to arrange loans for projects is becoming
stringent and therefore there has been a delay in financial
closures / tie-ups by developers. To avoid any liquidity risk,
robust screening of customer profiles and their liquidity
position is undertaken before bidding for any construction
contract as well as during execution.
Outlook
• The Government’s continued focus on affordable housing
and infrastructure development is expected to drive
growth. The Government has provided ’infrastructure
status’ to affordable housing. The relaxation in GST will
help the sector to steadily improve in FY 2019-20.
• Airport traffic growth in the country will necessitate
airport expansion within the country. The Government’s
plan of privatizing 6 major airports is in progress.
• The Healthcare sector has been accorded ‘infrastructure
status’. The Government is going to increase public
health spending to 2.5% of GDP by 2025.
• The High-speed Railway projects – modernization of
railway stations, the Ahmedabad – Mumbai High-speed
rail and depots are expected to gain momentum in
FY 2019-20. Government investment in educational
institutions like IITs in various parts of India is likely to
increase the prospect base.
• With ‘Make in India’ gaining pace, the automobile,
pharma and electronics industries are coming up with
expansion plans.
On international front, there are promising opportunities
in Sri Lanka, Bangladesh, the GCC and Africa. The GCC
countries are continuing to invest in infrastructure. Saudi
Arabia’s development plan worth USD 53 bn (SAR200 bn),
which is in line with the goals of Vision 2030, gives an
optimistic outlook for business in this region.
The business has been proving its mettle repeatedly, and
it is set to execute challenging projects in hand within
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Prestige Lakeside Habitat, Bengaluru
Garden Reach Flyover, Kolkata
prescribed timelines. With a positive market scenario, a
healthy order book, amicable customer relationship, a
highly talented employee pool and strong focus on making
project sites highly digitised and automated, the business
will continue to retain its position as market leader in the
industry.
Overall, the environment is promising – yet challenging
due to increased competition, long duration for procedural
matters, slow fund allocation in government funded jobs
and liquidity crunch and time taken to obtain statutory
approvals in private jobs.
The business leverages its vast experience in project
management, engineering design and construction
management to achieve operational efficiency.
It has engineering design centres in Mumbai,
Faridabad and Chennai. It also has Offshore
Engineering Centres in Mumbai, besides area
offices in India and the GCC countries. In addition,
it has a Competency Development Center at
Kancheepuram and a Workmen Training Centre
at L&T’s Construction Skill Training Institute (CSTI),
Ahmedabad.
TRANSPORTATION
INFRASTRUCTURE
Overview:
L&T’s Transportation Infrastructure business is
well-diversified in terms of its product range and
geography of operations. The business offers
services in the areas of roads, runways (airside
infrastructure) and elevated corridors (RREC),
railways (mainline and mass transit systems). It has
presence across India, East Africa, Bangladesh and
various GCC countries.
Business Environment
Over the last 5 years, the budgetary support for road
construction has seen a steady increase and the quantum
of projects being awarded increased accordingly.
Construction of highways continued at the rate of 27
km per day in FY 2018-19, maintaining the steady
flow of construction from FY 2017-18. In FY 2018-19,
24,452 km roads wer awarded and 9829 km of roads were
constructed.
The Government enhanced its focus on awarding projects
in the Hybrid Annuity Mode. In FY 2017-18 NHAI took
the decision to have mix of BOT / EPC / HAM projects in
the ratio of 10:30. In FY 2018-19, the Government has
been focused on awarding more projects in the EPC / HAM
model in 50:50 ratio.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRASTRUCTURE BUSINESS ANNUAL REPORT 2018-19
Railway electrification by L&T on Eastern Dedicated Freight Corridor
Rigid Overhead Contact System in Phase 3 Tunnel, Delhi Metro
The National Highway Network is to be expanded from
96,000 km to 200,000 km over the 5-year period from
2017 to 2022. The Government is also focused on
developing a strong express highway network. Bharatmala
Pariyojana Phase 1 has been launched in 2017 with some
portion awarded.
The year saw a significant number of smaller competitors
emerging in the market, consequently intensifying the
competition.
In FY 2018-19, major metropolitan airports began
to undergo capacity enhancement. In addition, the
Government continued to develop new airports by
sanctioning the development of a new greenfield airport
in Hirasar, Gujarat. The Prime Minister of India launched
the construction of Navi Mumbai airport, and the bidding
process is underway.
Track renewal touched a record high of ~ 5,000 km for the
year 2018-19. Railway electrification of ~ 5200 km (against
the annual target of 6,000 km in 2018-19) was higher than
last year’s 4100 km. Tendering commenced in MHSRCL
for Mumbai Ahmedabad High Speed Rail project. A bid
has been invited for one of the largest civil packages – a
237 km viaduct on the Maharashtra-Gujarat border to
Vadodara.
The Metro Policy has been changed and it is now
mandatory to adopt the Public-Private Partnership (PPP)
mode to avail central assistance for new projects. Projects
are being implemented on an EPC basis – a paradigm shift
from the conventional BOQ methods.
It is envisaged to electrify the entire railway network by
the year 2022. New projects, including port connectivity,
dedicated rail links etc, are being implemented through
SPVs owned by a State-Centre JV. Tendering for three new
dedicated freight corridors is to be initiated in next 2-3
years.
Major Achievements
L&T’s transportation business won the largest value single
domestic order for the expansion of Delhi International
Airport. The business expanded its customer base during
the year, securing various orders for construction of
highways as well as city infrastructure development
projects. Major orders received during the year include:
• 8-Lane Mumbai – Nagpur Expressway (57.9 km),
Maharashtra
• Construction of utilities and roads for Amaravati
Government Complex and Zone 12 A projects
• A Design & Build Systems Package for a Mass Transit
System in Dhaka
• Overhead electrification and signaling &
telecommunication package in the Eastern Dedicated
Freight Corridor
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Table top runway for Kannur International Airport
Dhaka Metro, Bangladesh
L&T’s Roads business was successful in executing various
projects, viz. the 99 km Manwath-Bheed Road project,
the 2-lane highway in Maharashtra, and the flyover from
Jinjira Bazaar to Batanagar in West Bengal. Commercial
operations commenced at Kannur International Airport in
Kerala and Sindhudurg Airport in Maharashtra.
initiatives which are specific to linear projects. Prominent
among them is the ’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 gate
alerts to both driver and LC gate operator.
During the year, L&T’s Railways business successfully
executed various projects, viz. Hospet – Harlapur Railway
Construction, Rewari – Manheru Composite Project,
Singapur – Titlagarh Railway Electrification, Lucknow –
Sitapur Gauge Conversion project. It also commissioned the
Delhi Sarai Rohilla – Rewari section.
L&T’s Mass Transit System business was successful in
executing various projects, viz. the Delhi Metro U/G
Electrification Package CE 08 (50 TKM), the Delhi Metro
Track Package CT 11 (43 TKM) and the Lucknow Metro
Electrification Package LKE 1 & 2 (51 TKM).
In the Dedicated Freight Corridor CTP 1 & 2 project, the
business completed the trial run of a full-length goods train
on the 664 TKM Rewari – Madar section.
Significant Initiatives
Extensive use of Project Management tools, such as TILOS,
has resulted in efficient planning of complex mega projects
and effective utilisation of P&M. L&T’s Railways business is
at the forefront of the implementation of innovative digital
The business has initiated cost-reduction measures by
reducing external hiring of equipment through optimum
resource utilization across sites. It has also optimized bulk
material usage by focusing on wastage control and process
optimization for bulk material reconciliation.
Digitalisation
Digitalisation has become an integral part of business
processes. It has opened up new-age capabilities to
measure, analyze and improve on business performance,
and even necessitated new sets of operational indicators
like actual productive hours (or vice versa) and operations
for key productive equipment. Initiatives include:
• Solutions for project monitoring through Procube (Mobile
and Web combined application)
• Access of geospatial solutions through user-friendly
portals for mapping topography, road layouts, project
ROW, land status, obstruction management and linear
progress monitoring which are helping project teams to
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Mafraq-Ghweifat Highway, Abu Dhabi
Sambalpur Rourkela Road Project
plan and execute better with a higher degree of project
progress visualization
occupational hazards and led to improved quality and
adherence to safe practices.
• 3D Machine Control System deployed on motor graders
for automated control of its complex operation, doubling
productivity and lowering manpower.
• New-age digital solutions such as QT and the AI Chat
Bot on Highway Engineering guidelines on Quality
specifications
Environment, Health and Safety
During the year, the business won four International Safety
awards, i.e. 2 Gold Awards and 1 Silver Award from RoSPA
(Royal Society for the Prevention of Accidents) and a Pass
certificate from British Safety Council (BSC).
It also won four prestigious safety awards from National
Safety Council (NSC). The OPGC - MGR Railway Corridor
project won the prestigious ‘Shreshtha Suraksha Puraskar’
(Silver Trophy) in the Construction sector for the year 2018,
which is the second highest honour instituted by the NSC.
Despite all the accolades, the business continues to face
challenges in creating a high level of safety awareness
across linear projects spanning hundreds of kilometres. To
combat the challenges, SPARSH, the Augmented Reality
(AR) Application on Golden Rules of Safety and Virtual
Reality (VR) training modules, have been implemented.
This has increased awareness on quality as well as on
With its overarching safety framework, the business
continues to progressively better the safety quotient of the
projects it undertakes.
Human Resources
The business focussed on strengthening the base of the
Organizational Pyramid and thus increased its intake of
trainees and Front-Line Supervisors.
Emphasis is laid on in-house training, with over 100
in-house trainers. They constantly update their technical
knowledge by attending seminars and conferences and
also their teaching skills by attending the ‘Train the Trainer’
programmes that are organised regularly.
A Chat Bot – QT has also been introduced to address
queries that the employees may have regarding MoRTH
specifications and IRC codes.
Risks and Concerns
The business spans multiple projects simultaneously, many
of which are mega jobs. Infrastructure projects in general
are dependent on numerous approvals and clearance,
from authorities like the Government and local regulatory
bodies. This includes land acquisitions, change orders,
extension of time and schedule revisions.
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First-in-India: Mechanized simultaneous stringing of conductors at
Western Dedicated Freight Corridor
Solapur-Sangareddy Road Project
Delays in these clearances from the authorities result in
additional cost to the business.
Matters relating to change in legislation, approval of
estimates for pre-construction activities and delay in
detailed engineering lock up the resources of the business.
Outlook
The Government is aiming to spend close to R 7 lakh crore
over the next five years to develop 83,677 km of roads,
including the Bharat Mala Pariyojana worth R 5.4 lakh crore
as the road sector is opening up. The Government aims to
step up to its ambitious target of building 45 km of roads
per day in FY 2020.
The Department of Civil Aviation (DCA) envisages that 100
new airports will be built in the country over the next 10
to 15 years. The DCA is also working on the cargo policy,
which will provide a boost to the nation’s logistics capacity.
The development of various industrial development
corridors identified across the country and the nodes
that have been identified in these corridors have led to
announcement of various city infrastructure development
projects. Of the various corridors under development, the
East Coast economic corridor has seen the Amaravati node
under rapid development – with L&T currently executing 6
projects and more phases expected. The Delhi – Mumbai
Industrial Corridor is at an advanced stage, with multiple
projects already awarded and with plenty more in the
pipeline. Several other industrial corridors such as the
Amritsar – Delhi – Kolkata Industrial Corridor and the
Chennai – Bangalore Industrial Corridor are in the Detailed
Project Report (DPR) stages.
The Indian Railways is planning its highest outlay of R 1.58
lakh crore for FY 2019-20 – an increase of over 8% of last
year outlay of R 1.46 lakh crore.
After the Dedicated Freight Corridor projects, the High
Speed Rail Project is the next big ticket opportunity,
the business is positively looking at the start of 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, the L&T accessible
value stands at R 59,000 crore, comprising packages for
viaducts, undersea tunnels, stations, maintenance depots,
track, electrification and signaling. L&T’s Railways business
will focus on track, electrification and signaling and
telecommunication. It is expected that all tenders for the
MAHSR will be awarded in FY 2019-20.
Apart from MAHSR, the conventional projects of the
Indian Railways continue to get a big thrust, backed by
strong institutional funding like LIC. The Indian Railways is
planning to tackle mainline capacity constraints through
capacity augmentation (doubling and tripling) of ~5,000
km in next three years, out of which ~2000 km is likely
to be awarded under the EPC concept. Around 13,500
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
One of India’s longest cable-stayed bridges across River Mandovi, Goa
km of electrification is expected to be awarded under the
banner of ‘Mission Electrification’ over next three years. The
business looks forward to achieving success in the majority
of these opportunities. It intends to participate in the major
portion of these projects through EPC tendering.
multilateral agencies in select countries of South Asia (Sri
Lanka and Bangladesh), Africa and the Middle East.
All these projects provide good opportunities to the
business.
India is well on its way to creating a world-class MRT
system as an integral part of community infrastructure
development across all metro and major Tier 1 and Tier 2
cities.
The upcoming RRTS (Regional Rapid Transit System) in NCR
region provides significant opportunities in system works.
NCRTC is implementing RRTS in three elevated corridors on
priority basis:
• Delhi – Ghaziabad – Meerut corridor of 90 km
• Delhi – Gurgaon – Rewari – Alwar corridor of 180 km
• Delhi – Sonpat – Panipat corridor of 111 km
As part of increasing the speed and safety of conventional
high-density mixed corridors, there is a significant thrust
towards European Train Control Systems – Level 2. In the
first phase, the Indian Railways is installing ETCS level 2 on
trial basis. This covers 4 sections of 640 RKM. A provision
of R 77,192 crore has been made in FY 2018-19.
The Railways business is exploring opportunities in main
line railway funded by the Indian line of credit and
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HEAVY CIVIL INFRAStRUCtURE
Overview:
L&T’s Heavy Civil Infrastructure business is foremost
among its peers for its pioneering achievements in
the design, engineering and construction of projects
in the areas of metros, nuclear, special bridges,
hydel, ports, tunnels and defence. The business has
a strong presence in India, the Middle East, Bhutan
and Bangladesh. The goal of the business is to
leverage its vast experience in project management,
engineering design and construction management
to become a one-stop total infrastructure solutions
provider to both its domestic and international
customers. Dedicated engineering design centres,
competency cells, advanced skill-training centres, a
wide network of consultants and vendors, digitised
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.
Kakrapar Atomic Power Plant, Gujarat, under construction
Medigadda Barrage Project, Telanaga - a part of the world’s largest multi-stage lift
irrigation project
The business is both a pioneer and the current
leader in the domestic metro segment. It provides
extensive end-to-end engineering and construction
services for both elevated and underground
metro systems. The metro vertical has expertise in
several major areas – elevated viaduct construction
using segmental, u-trough, i-girder methods and
balanced cantilever construction, underground
tunnel construction using the new Austrian
tunneling method, cut-and-cover and TBM (tunnel
boring machine) methods, underground station
construction using top-down and bottom-up
approaches and elevated metro stations with
expertise in the spine beam concept (lean).
In the nuclear sector, the business has been a
forerunner by contributing to the majority of
India’s nuclear power plants. The business provides
EPC solutions in civil, mechanical, electrical and
instrumentation, design capacity for end-to-end civil
works including seismic qualification, procurement
and construction services and modular construction
technology. Its expertise extends to both pressurized
heavy water reactor (PHWR) and light water reactor
(LWR) technologies.
The business has significantly contributed to the
development of ports by designing and executing
berthing structures including liquid jetties, container
terminals, multipurpose berths and ferry terminals.
L&T’s hydel business has expertise in areas like
diversion weirs, barrages, concrete / earthen /
rockfill dams, including rcc (roller-compacted
concrete) dams, underground tunnels of various
geometry and diameter (both concrete lined and
steel lined), open and underground de-silting
chambers, large underground powerhouses
and surface powerhouses, pressure shafts, drop
shafts and surge shafts / surge chambers, hydro-
mechanical components such as gates, penstocks,
etc., including erection of electro-mechanical
equipment and specialised underground structures.
In the area of special bridges, L&T has capabilities
in bridge building cover design. It has extensive
experience in executing a wide range of bridges of
different span lengths using ingenious cutting edge
construction techniques, viz. incremental launching,
segmental construction, cable stay, precast,
pre-stressed concrete, steel and concrete composite
construction.
In the area of defence infrastructure, L&T offers
single-point EPC solutions, from concept to
commissioning, in the form of infrastructure
facilities for defence bases, underground facilities,
surveillance, etc.
L&T Geostructure LLP (LTGS) has expertise in deep
piling and diaphragm walls, multi-cellular intake
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Cable-stayed bridge across Durgam Cheruvu Lake, Telangana
Cut-off-wall, Polavaram Dam, Andhra Pradesh
wells for river-linking, marine terminals with berths
and jetties and deep cut-off walls. These activities
are facilitated by specialist staff and state-of-the-art
equipment.
Business Environment
Infrastructure development is imperative for the economic
development of a nation. The Government has identified
infrastructure development as the key to India’s growth and
has initiated necessary steps to improve road, rail, ports,
airports and strategic infrastructure to promote India’s
industrial output, while simultaneously tackling bottlenecks
to boost GDP growth.
Metros
The business has emerged as the prominent builder of
metro systems in the country, having constructed 150 km
of viaducts, 48 km of twin tunnels and 87 stations. L&T is
also executing packages in Riyadh and Qatar metro, which
are testaments to our technical prowess.
The vision of the Union Government is to implement metro
rails across 50 Indian cities, with a network of more than
700 km within the next few years. More than 600 km of
metro rail projects are under implementation in various
cities in India. Robust growth continues to be expected in
this sector in the coming years, with more than 1000 km of
upcoming projects.
Defence
The Indian defence sector is of high strategic importance
to the country. The Ministry of Defence has identified
an urgent need to upgrade the country’s defence
infrastructure.
The defence procurement procedure emphasises the
utilisation of immense potential to leverage the manpower
and engineering capability within the country to attain
self-reliance in the defence sector. The concept of ‘Make in
India’- remains the focal point of the defence acquisition
policy / procedure.
Large-scale development of underground infrastructure for
strategic assets is set to be undertaken by the DRDO, with
an overall outlay in excess of R 20,000 crore. Projects likely
to be awarded include hardened shelters, hangars and IAF
runways.
Nuclear Power
India’s total nuclear power generation capacity is 6219
mwe, which comprises 3 percent of the country’s overall
power generation. Its energy policy calls for 25 percent
of electricity to be generated from nuclear power by
2050. In the domestic arena, the business is expecting the
Government to move forward with a proposal for 10 PHWR
fleet reactors.
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Riyadh Metro - L&T is building metro networks in India and select geographies
In May 2017, the cabinet approved a fleet of ten 700 mwe
PHWRs at Hissar (Haryana), Kaiga (Karnataka), Chutka
(Madhya Pradesh) and Mahi Banswara (Rajasthan), as a
‘fully home-grown initiative’ for about R 700 billion (USD
10 billion).
Special Bridges
India is witnessing significant interest from international
funding agencies like JICA, the World Bank, ADB and
BRICS in the infrastructure segment, specifically in mega
bridge construction projects. Key investments in bridge
infrastructure include:
• JICA funding for Dhubri Phulbari bridge in Assam
• JICA funding for high speed rail
• BRICS funding for Pan Bazaar bridge in Guwahati, Assam
• World Bank funding for Sharda river bridge project in U.P.
The Government has approved new DFCC packages such
as the east-west corridor between Kolkata and Mumbai,
the north-south corridor between Delhi and Chennai and
east coast corridor between Kharagpur and Vijayawada.
These projects are expected to bring in new business in the
coming years.
Hydel and tunnels
India ranks 5th globally in terms of exploitable hydro-
potential. As per the assessment made by CEA, India has
economically exploitable hydropower potential to the tune
of 148,700 MW of installed capacity, whereas only 48,974
MW (33%) has been commissioned to date. In addition,
56 pumped storage projects have also been identified with
a probable installed capacity of 94,000 MW. In totality,
India is endowed with hydro-potential of about 2,50,000
MW. The domestic hydel sector is gathering pace this year,
with the Government clearing a few hydel projects. Jammu
& Kashmir has predominantly become the focus of the
domestic hydel scene. Orders likely to be awarded in the
upcoming years include the 1856 MW Sawalkote HEP, the
Kalpasar Project – Bhadbhoot Barrage, the Lakhwar HEP,
the Par-Tapi-Narmada Link Project, the Damanganga Pinjal
Link Project, the 1000 MW Tunga PSP and the 850 MW
Ratle HEP.
Ports and Harbours
To continue its support to the port sector, the Government
has announced a 10-year tax holiday to enterprises that
develop, maintain and operate ports, inland waterways and
inland ports. Plans to develop 10 coastal economic regions
as part of the vision to revive the country’s Sagarmala
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Mumbai Trans Harbour Link
(string of ports) project is also on. Private investment
in the port sector has picked up pace recently. Marine
infrastructure projects involving dry-docks, marine intake
structures and defence naval base projects are expected to
kick start in FY2019-20.
Major Achievements
Orders Won
• Mumbai coastal road project
Other Key Achievements
• 16,722 cu.m of cement was poured on a single day
December 22,2018 at the Meddigadda Barrage project in
Telangana
• 10-metre formwork was designed and implemented at
the Meddigadda Barrage project
• Reverse circulation drilling rig deployed for the first time
in India in Mumbai Trans Harbour Link Project
• Construction of Thane creek bridge connecting Mumbai
to Navi Mumbai
• Underground metro packages in phase 2 of Bengaluru
• Balanced Cantilever bridge over river Gomathi
constructed in a record time of 8 months for Lucknow
metro project despite adverse geographical conditions
using in-house-designed form travelers
metro
Projects Completed
• Delhi Metro packages CC77 (Escorts Mujesar –
Ballabhgarh Section of Violet Line) and CC27 (Hauz Khas
- Vasant Vihar Section of Magenta Line) of DMRC
• Lucknow Metro Elevated Package LKCC07 (Kd Singh
Babu - Munshipulia Section of North-South Line)
• Chennai Metro Underground Stations CMRL UG 02 (LIC,
Thousand Lights and Government Estate Stations) and
UG 03 (Nandanam, Agdms, Saidapet And Teynampet
Stations)
• Mandovi Cable-Stayed Bridge in Panjim, Goa
• Mumbai Metro project achieved the first breakthrough in
tunneling September24, 2018 in metro line 3
Digitalisation
The business has implemented several digital initiatives
to enhance productivity and operational efficiency.
These include extensive use of BIM (building information
modelling) across the whole life cycle of projects, project
management tools, augmented / virtual reality- based
training modules and geospatial drones.
Digital initiatives implemented include concrete
management system, boulder / aggregate management
system, bid preparatory system, digital monitoring of
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Station Building, Doha Metro
A rail bridge on the Western Dedicated Freight Corridor section being built by L&T
workmen and plant and machinery, and digitised EHS audit
reports.
Environment, Health and Safety
To promote a healthy work environment among its
employees, the business has updated and implemented
EHS procedures, training and also the use of EHS leadership
skills. These initiatives support the journey to achieve
its vision of ‘Zero Harm’. The business has launched
the corporate EHS strategic plan 2018-19 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 FY 2018-19:
• Successful completion of the IMS transition audit from
OHSAS 18001:2007 to ISO 45001:2018 (new standard)
and recertification for ISO 14001:2015
• Launching various apps in order to move towards the
digitalisation of EHS and centralised control of EHS
related standardisation in all projects
• Implementing key EHS training initiatives including
Scaffold Inspector Competence Training for key EHS and
formwork staff, IOSH Managing Safely Certification,
NEBOSH Certification Courses, EHS Lead Auditor
Training, ISQEM Approved Marine Safety Training and
online EHS Certification Courses for all employees. In
recognition of the impact of the EHS initiatives of the
business, it has won various awards at different levels and
categories from national and internationally renowned
organizations, including NSC India, BSC, OSHAI and
various client awards.
Human Resources
In line with L&T’s philosophy and strategic focus on human
resource (HR) development, the business has been placing
much emphasis on people development, engagement and
building leadership for the future. The business has been
continuously focusing on the attraction, retention and
engagement of talent, the prime mover of success for the
business. This helps to meet the evolving complexities and
challenges for pioneering infrastructure megaprojects and
their successful execution and achievement of Lakshya
2021 objectives.
Talent is nurtured across the business and with a focus
on growing leaders through various initiatives. The
business endeavours to create a learning environment
that provides growth opportunities to all employees across
projects through a Talent Engagement and Development
Centre (TEDC) which was declared national winner in
2018 National Human Resources Development Network
(NHRDN)’s ‘best of breed’ HR competition.
The talent development team conducts various
competency-based training and development programmes,
such as drive for results, communication and presentation
skills and team development.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Lucknow Metro - one of the fastest completed metro projects in India
To foster the development of a skilled workforce for the
increasing quantum of underground metro work, the
Tunneling Excellence Academy at Kancheepuram (near
Chennai) has been inaugurated. This unique academy
is dedicated to imparting skills and developing know-
how across a broad spectrum of tunneling activities.
Additionally, the business has also launched strong
diagnostic-based organisational development interventions
for various project sites in order to bring about strategic
alignment and team cohesion. These interventions cover
the entire staff at the site and draw keen involvement
from the senior project leadership team. The business
also conducts various employee engagement programs,
communications sessions and town-hall meetings across
office clusters and project sites.
Risks and Concerns
Key to the success of the business is its emphasis on
excellence and efficiency in operation management with a
strict focus on principles of good governance. Major risks
for the business are delay in obtaining right of way (ROW),
work front approvals / clearances and design approvals.
Risk management involves methodical identification of
the risks surrounding the activities of the business, while
reviewing and identifying the events and the probability of
their occurrence, in tandem with creating and systematizing
the tools required to tackle them. It requires supervising the
risk management approach, effectiveness and control. The
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business promotes and monitors internal risk management
practices in each of its business segments through board-
work. The risk team ensures appropriate systems of risk
management and internal control.
Outlook
The Indian construction sector has witnessed healthy order
inflows over the past few years, supported by the increased
pace of infrastructure project awards – particularly from the
transportation and urban infrastructure segment.
Multiple reform measures in the infrastructure sector
have also supported improvement in the pace of project
execution.
In the metro segment, new development phase projects
coming up in Tier 1 and 2 cities, coupled with decongestion
projects like Regional Rapid Transit System (RRTS), looks
promising. Metro project packages that are expected in FY
2019-20 are Delhi metro phase 4, Chennai metro phase
2, Kanpur metro, Mumbai metro, Agra metro and Meerut
metro among others. The Mumbai-Ahmedabad High
Speed Rail Project is expected to begin shortly. It consists
of various packages and notice inviting tender for package
C2 underground tunneling and stations and C4 package –
viaduct and station got released recently. Feasibility studies
for other High Speed Rail (HSR) routes are also going on.
55 MWp Solar Tracker Plant at Theni, Tamil Nadu
River-linking projects provide major business opportunities
in the coming years.
The business sees future opportunities in ports. The
‘Sagarmala Project’ initiative focuses on the upgradation
and development of new ports as a promising prospect
for the future. Opportunities are expected for marine
infrastructure projects involving dry-docks and marine
intake structures.
New opportunities are emerging for road and railway
tunnel projects in Maharashtra and the northern Himalayan
States of Jammu & Kashmir and Uttaranchal.
The continuous thrust of the Government on increasing
nuclear power capacity of the country provides various
business opportunities in the nuclear business. The business
is expecting the Government to move forward with a
proposal for 10 PHWR fleet reactors.
POWER tRANSMISSION &
DIStRIBUtION
Overview:
L&T’s Power Transmission and Distribution business
vertical is a leading EPC player in the field of power
transmission & 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
including floating and linear solar, battery energy
storage systems and mini / micro grid projects.
Besides being a dominant player in the Indian
subcontinent, the business enjoys a significant share
and a strong reputation in the Middle East, Africa
and ASEAN markets.
L&T’s Substation Business Unit focuses on providing
turnkey solutions for Extra High Voltage (EHV) air
insulated / gas insulated substations for utilities
and power plants, EHV cable systems and complete
electrical and instrumentation solutions for various
infrastructure projects, such as metros, airports, etc.
L&T’s Power Distribution Business Unit provides
a range 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. In addition, the business
executes aerial / underground communication
backbone networks, typically spread across a vast
geography.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
765 kV Gas Insulated Substation, Hyderabad
220 kV Alusteng-Drass Transmission Line, Jammu
L&T’s Transmission Line business offers turnkey EPC
solutions for 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 sixteen lakh tones of tower components,
over the years. The Testing and Research station
at Kancheepuram is accredited by NABL (National
Accreditation Board for Testing and Calibration
Laboratories) and is one of the largest in Asia, apart
from being amongst the most renowned testing
centres in the world.
L&T’s Solar business provides single-point EPC
turnkey solutions 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 to produce different module-mounting
structure types – such as Fixed Tilt, Seasonal Tilt
and HSAT – offering the customer a range of
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,
ranging from rooftop systems to floating solar
systems.
The international units of the business in the
Middle East, Africa and the ASEAN region
offer complete solutions in the field of power
transmission and distribution. These include
substations, power transmission lines, EHV cabling,
distribution networks, solar plants and Electrical,
Instrumentation and Controls (EI&C) works 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 African unit is currently focused on the northern
and eastern regions, having established a presence
in Algeria, Morocco, Egypt, Kenya, Ethiopia,
Malawi, Botswana and Tanzania. L&T is executing
projects in the ASEAN countries of Malaysia and
Thailand, while seriously pursuing opportunities
in the other countries of the region, including
Myanmar and the Philippines.
Larsen & Toubro Saudi Arabia LLC (LTSA) is a
wholly-owned subsidiary providing engineering,
construction and contracting services in the sphere
of T&D in the Kingdom of Saudi Arabia.
Business Environment
With the continued thrust on achieving electrification
of 100% households through a slew of Government
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Bringing light to 30,000+ villages across India
380 kV Switching Station, Saudi Arabia
schemes including ‘Saubhagya’, the distribution sector in
India remained upbeat in FY 2018-19 as well. Ahead of
the Assembly elections, electrification of more than 7 lakh
households was completed on a war footing in UP, Bihar
and Jharkhand.
In the domestic T&D space, investments were driven by
State utilities, albeit through centrally sponsored schemes
or multilateral funding. With the general lack of investment
in conventional power generation and industry segments,
the centrally-driven transmission schemes were less than
the prevailing levels. States like Bihar, Jharkhand, Madhya
Pradesh, West Bengal, Telangana and Andhra Pradesh have
strengthened their intra-state transmission line networks
and associated substations.
Converting HT and LT distribution lines into underground
cables in cities and towns to improve the reliability of
the network, especially in cyclone-prone coastal areas
and industrial townships, provided ample opportunities
to the business. Orders were awarded for strengthening
distribution systems and feeder separation works under
schemes like the Integrated Power Development Scheme.
Creating optical fiber networks for broadband connectivity
of Gram Panchayats opened up interesting opportunities
in the states of Telangana and Andhra Pradesh. Rapid
urbanization has led to investments in the expansion of
metro projects across Tier 1 and Tier 2 cities. To ensure
reliable power supply for sprawling urban agglomerations,
substation networks are being strengthened along with
associated transmission lines. One such example is the 400
kV ring around Amaravati – the new capital city of Andhra
Pradesh.
Despite the fact that the solar industry faced lower capacity
addition in FY 2018-19 compared to the previous year in
the face of safeguard duties and GST ambiguities, L&T’s
solar business portfolio surpassed a cumulative capacity of
2 GW.
Several state governments have taken up rural
electrification through solar rooftop systems. Such systems
are also being installed on Government buildings, such
as under West Bengal’s ‘Alo Shree’ scheme. The ‘Kusum’
scheme provides impetus to solar-powered irrigation
systems.
Construction opportunities in the neighbouring SAARC
countries witnessed significant momentum. In the Middle
East, though the macro-economic scenario was mixed
in FY 2018-19, witnessing capex cuts and intensifying
competition, L&T garnered a major portion of the
opportunities that arose. Coupled with the re-entry into the
132 kV cable segment, this augurs well for the business in
a country where there are significant opportunities.
In Kuwait, significant investments, such as township
development, are witnessed. In Africa, the business has
made an entry into Tanzania through a substation and
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
132/33/11kV Substation, Umm Al Quawain, UAE
transmission line of 220 kV, which augurs well for the
strengthening of L&T’s position in Upper East Africa.
Consolidating the breakthroughs achieved in countries
forayed into, exploring renewable energy opportunities and
opening up of select West African countries will hold the
key to success in the coming year.
With on-schedule completion of the projects in Malaysia
and Thailand, the business has demonstrated its capabilities
and has won recognition in the ASEAN market.
Major Achievements
Projects Completed and Commissioned
• Several key 400 kV and 765 kV substation projects
including those at Tughlakabad, Tumkur, Baripada and
Gwalior
• 28 substations and over 1400 km of overhead and
underground transmission corridors in the Middle East
Orders Won
• Power Supply System – involving receiving substations
and the EHV cable feeders from grid substations – for
Bengaluru, Mumbai and Dhaka Metro projects
• 765 kV and 400 kV transmission lines from a reputed
TBCB player
• Electrical Main Plant package for Kudankulam Nuclear
Power Project expansion
• Construction of over 500 MW capacity of grid-connected
solar PV plants across India
• Various solar PV EPC orders
• Transmission corridors exceeding 3000 km
• The first-of-its-kind solar PV + 8MWhr storage project
• 220 kV Drass transmission line in Jammu & Kashmir
• 765 kV Jharsguda-Angul transmission line for PGCIL,
• 220 kV Transmission System in Africa, marking entry
into both substation and transmission line sectors in the
African market
• 400 kV Khandwa-Pithampur-Bhatnawar corridor in
• Many orders for developing 132 kV substations and 132
Madhya Pradesh
kV cable sections in UAE
• 400 kV Yermarus- Bellary transmission line in Karnataka
• A major part of a large-scale BESS project in Andaman
• A major power system revamp order of more than USD
100 million from an oil & gas customer in Algeria
Islands
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400 kV Ibri-Izki Transmission Line, Oman
250 MW Solar PV Plant at Rewa, Madhya Pradesh
The business earned many awards and much recognition
during the year for multiple initiatives. These include:
• ASSE GCC HSE Excellence awards for several projects in
Middle East
• ‘Best Performing Power T&D Organization’ award from
Central Board of Irrigation & Power
• Award for Outstanding Contribution to 100%
Electrification of Bihar
• Excellence awards from Power Grid for Transmission Line
and Substation construction under various categories
• Solar technovation awards under three categories from
Solar Quarter.
• Best Solar EPC Company and Best Microgrid Company
awards from EQ International
• Recognition by Navigant Research as one among the top
ten global players in microgrid
• Taqdeer award from Government of Dubai for excellence
in labour welfare practices
• MEED Quality awards for substation projects in Kuwait
and Saudi Arabia
• EIA Compliance Award for Marudi substation project
from Sarawak Energy Berhad, Malaysia
Significant Initiatives
The business has augmented its capabilities for building
digital substations, linear solar plants and certain packaged
solutions for solar applications. The tower-component
manufacturing capacity has been augmented to cater to
the demand of adjacent segments and more countries.
Several operational excellence initiatives in the areas of
on-time delivery, profitability enhancement, working capital
management and risk management are being pursued.
A unique set-up for integrated, real-time scheduling and
monitoring of projects to aid the site team for improved
project delivery has been operationalised.
Digitalisation
With a major thrust on Digitalisation as a key enabler, the
initiatives rolled out across the business lines in recent
years have started to bear fruit. These initiatives include
efficiency improvement and next level of automation in
factories, 3D/4D BIM, deployment of drones and mobility
devices for project progress monitoring, connecting plant
and machinery for asset monitoring, using geospatial
technologies for surveys, integrated material management,
quality incident reporting, etc.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
275/132/33kV Gas Insulated Substation, Samalaju, Malaysia
State of the art Tower Manufacuring Facility, Puducherry
Environment, Health and Safety
EHS practices in business are aligned with a corporate EHS
policy that is strictly followed along with clear policies laid
out at the business level as well. An external IMS audit by
BVQI was completed and certification obtained. The EHS
policy is supported by standard operating procedures (SOPs)
at the business-unit level and the aim of ‘Zero Harm’ is
cascaded down to the project level through various digital
and technical initiatives as follows:
• Virtual Reality initiatives:
u Implemented Virtual Reality 9 modules in 9 languages
for Transmission Line (TL) and Sub Station (SS) Business
Units for workmen.
u 4 HTC Vive Virtual Reality Interactive training modules
were developed in English and Hindi for frontline
supervisors and staff at sites.
• EHS Mobile application: 10 modules were developed,
including an EHS Observation Log to identify unsafe acts
and condition and action taken.
• Various awards were received from and recognition
accorded by international and national organizations like
FICCI, RoSPA, BSC and NSC. Appreciation certificates
were received from clients for implementing EHS
management systems and achieving millions of safe
man-hours.
Human Resources
Committed to the development of its people, the business
endeavours to create an ecosystem that addresses
performance and contributes to its success. Employees are
given opportunities to develop their skills and capabilities
through on-the-job experience. These are supplemented by
robust classroom programmes. The L&T Institute of Project
Management and the Indian Institute of Technology,
Madras have partnered to create bespoke programmes in
Project Execution, Projects Management and Engineering
& Design Management. These programmes implement the
development plan through peer interaction, experiential
learning, case studies and simulation and faculty
intervention. 240 young managers underwent training in
the IPM/IIT programme during the year.
• EHS Training & Awareness programme: A workshop
was conducted for key project managers on effective
implementation of EHS Management System process,
Safety Challenges faced at site while implementing the
EHS Management system and Learning and Knowledge
on best practices followed.
In keeping with the increasing presence in international
markets, the business is building a cadre of young
professionals drawn from various nationalities. The
Graduate Engineer Trainee scheme was extended to Saudi
Arabia, Kenya and Botswana and 30 trainees joined this
year. This initiative will be strengthened by inducting
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Large scale solar cum storage project in Andaman
400/132kV Substation, Nkhoma, Malawi
trainees from Egypt, Algeria, Thailand and Tanzania in the
coming year.
Risks and Concerns
The diversification attempts by CPSUs like Power Grid and
NTPC, logistical and design aspects, the general elections
in Q1 of FY 2019-20, the financial health of state utilities
and fund availability will remain key determinants for the
business.
In the Middle East, input costs are bound to increase with
the introduction of VAT and removal of subsidies on fuel,
power and water. Prioritization of spending / budgetary
allocation, the friction between Qatar and other Gulf
countries, the slowdown in Oman and related delays
in project finalization are potential risks. With growing
business opportunities and increasing contractual exposure
to customers in domestic and international markets,
efforts are being made to integrate a well-established risk
management framework into business operations.
Outlook
In the substation business, the increasing cost of land
acquisition related delays have led power grid / state
utilities to increasingly opt for GIS substations due to the
smaller footprint they occupy.
On the power distribution front, crucial issues remain – the
centrally-driven scheme for last-mile connectivity and
various distribution reforms projects 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. 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.
As the power transmission / transformation capacities to
cater to the growing demand of urban centres increase,
new opportunities will arise for EHV cabling projects in
large cities. Grid integration of intermittent renewable
energy and the emerging prospects of distributed
generation require investments in power quality devices
such as STATCOM and SVC to ensure voltage stability,
reactive power compensation and reduction of harmonics.
It is expected that the investments in higher voltage levels
viz. 400kV & 765kV from state transmission utilities –
including those affected by funding delays - will gather
momentum. The delayed second phase orders of Green
Energy Corridors are likely to be awarded in the coming
year. The Tariff Based Competitive Bidding (TBCB) space
is witnessing consolidation with 2 to 3 major players in
the fray. Increasing number of projects are likely to get
allocated through TBCB mode.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Micro Grid Project for rural electrification, Bihar
The power supply system prospects for various metro
projects are visible, especially in the Central and Western
parts of the country. With an established presence in
Nepal and Bangladesh, the business is better positioned
to exploit the upcoming transmission line and substation
opportunities in those countries.
The solar power market is poised to remain upbeat,
with yearly solar capacity additions pursuing an upward
trajectory. The private PPA market in select states is
expected to pick up based on encouraging open-access
policies and growing solar power viability. Clarity emerging
on GST and duties will help the sector, with capacity
addition of more than 10 GW of solar capacity in the
coming year.
Advanced battery energy storage solutions will see a rise
due to grid stability requirements and the need to electrify
rural households. With upcoming state solar policies
focusing on rooftop projects with net metering schemes,
the prospects for the rooftop segment look positive.
To harness solar power for rural India, the Government
of India has formulated the ‘Kisan Urja Suraksha evam
Utthaan Mahabhiyan’ (KUSUM) scheme, which aims at
solarizing the agriculture sector through the ubiquitous use
of solar power for tube wells and lift irrigation projects.
Emerging areas like floatovoltaics and hybrid projects hold
promise.
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With a strong domestic solar portfolio backed by
experience and expertise, the solar business is geared up to
enter international markets as the renewable opportunities
galore in countries where there is already an established
presence in the T&D sector.
In the Middle East, the business is cautiously optimistic in
its outlook as oil prices are hovering in the lower ranges,
commodity prices are fluctuating, fierce competition is
faced and changes are being introduced in the customer
organization / bid process (example: newly formed
Department of Energy in Abu Dhabi). 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,
growth in power distribution throughout the Middle East is
expected to be fuelled by GCC grid formation, upgradation
to higher voltage levels, integration of renewable energy
sources to the existing power grid and interconnections of
transmission networks.
The business is concentrating on key African economies
that have a clear road map to build a transmission
and distribution network 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. The footholds gained in Algeria, Morocco and
Egypt have grown stronger and the T&D space in these
economies is vibrant with many opportunities.
5 MLD Sewage Treatment Plant, Nellore
10.6 MLD Water Treatment Plant, Bagidora
The rising power demand in ASEAN countries paves the
way for significant investments in grid interconnections,
grid development and strengthening. With an increasing
share in Thailand and Malaysia, the business expects to
exploit potential in Myanmar and other countries of the
region. With only 35% of the country connected to an
overloaded grid, significant opportunities are seen in
Myanmar, especially through bilateral / multilateral funding.
The overall outlook for the PT&D sector remains promising
on both the domestic and the international fronts. The
business looks forward to maintaining its lead position in
established markets and gain significantly in new growth
areas and target countries, ably supported by its initiatives
in cost leadership, technology adoption and delivery
excellence.
WAtER & EFFLUENt tREAtMENt
Overview:
The world is undergoing unprecedented changes,
with rising temperatures, changing climates and
decreasing fresh water levels. The world relies on
0.75% of the available fresh water resources which,
according to experts, are being badly managed.
Several countries have already started innovating
and educating their people on how to reduce their
water footprint in order to conserve water for future
generations.
L&T Construction’s Water and Effluent Treatment
business specializes in water infrastructure. This
covers urban and rural water supply, industrial
water supply, water treatment plants, sewage
treatment plants, sewage networks, effluent
treatment plants, desalination plants, micro and lift
irrigation projects, canal rehabilitation, unaccounted
for water (UFW) and water management contracts.
The business also engages in area development jobs
aiming to provide holistic water infrastructure to
specific areas, thereby meeting the smart city norms.
L&T’s increasing technology capability to execute
jobs efficiently with reduced lead times has led to
increased client confidence in the business as a
provider of end-to-end water solutions.
The business has been a pioneer in delivering
Water Infrastructure projects in India, Sri Lanka,
Qatar, the UAE, Oman and Tanzania. It is currently
involved in executing around 150 projects on the
domestic water infrastructure front. The business
is omnipresent in India – from Moga (Punjab) in
the north to Tirunelveli (Tamil Nadu) in the south,
and from Sauni Yojana (Gujarat) in the west to
Barrackpore (West Bengal) in the east.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
74 MLD Water Treatment Plant at Bisalpur Tonk Unniyara
375 MLD Sewage Treatment Plant at Jebel Ali, UAE
Business Environment
The Indian water infrastructure market is growing steadily.
The demand-supply gap in both urban and rural areas
has increased. It is imperative to focus on creation of
wastewater infrastructure to boost the quality of urban
life. The increasing population necessitates increase in
agricultural produce and more irrigation schemes.
The Government is driving infrastructure development
through various schemes such as the National Rural
Drinking Water Programme (NRDWP), AMRUT (Atal Mission
for Rejuvenation and Urban Transformation), Namami
Gange, Pradhan Mantri Krishi Sinchayee Yojana and Delhi-
Mumbai Industrial Corridor Development. In addition, large
investments have been proposed by multi-lateral funding
agencies for water supply and sewer projects to improve
the quality of urban life.
Governments and courts have mandated the use of
tertiary-treated wastewater to meet the water requirements
of industries.
Huge opportunities are available in the Middle East,
ASEAN countries and East Africa. There is a positive
outlook towards these prospects and consistent business
development efforts are being driven to enlarge the global
footprint of the business.
L&T has been setting benchmarks by creating water
infrastructure to irrigate 7.3 lakh hectares of land, transport
water and sewerage through 5 lakh km of pipelines,
supply 5100 MLD of potable water and treat 2100 MLD of
wastewater. All these projects cater to the needs of more
than 90 million people.
Major Achievments
In FY 2018-19, the business won several repeat orders,
and added 6 new customers. The orders won came from
a diversified portfolio of rural and urban water supply
schemes, water management, integrated infrastructure
development, lift irrigation schemes, effluent treatment
plants and underground sewerage schemes. These include:
• ISP Kalisindh Project - Phase I and Parwati Project - Phase
I from Narmada Valley Development Authority, Madhya
Pradesh
• Athikadavu Avinashi Irrigation Project from Water
Resource Department, Tamil Nadu
• Multi Village Rural Water Supply Scheme to Satna
Bansagar from Madhya Pradesh Jal Nigam
• Coimbatore and Vellore Sewerage Schemes, Tamil Nadu
• Garwah Lift Irrigation Scheme from Water Resource
Department, Government of Jharkhand
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Al Shammal Water Treatment Plant at Qatar
Common Effluent Treatment Plant, Narol
• Industrial Area Sewage Treatment Works from ASHGAL,
Qatar
• Drinking Water Supply Projects in Srikakulam and East
Godavari District from Andhra Pradesh Drinking Water
Supply Corporation
• Ranchi Smart Infrastructure Project from Jharkhand
Urban Infrastructure Development Company Limited
During the year, the business was conferred 48 prestigious
awards, which are a testimony to its operational excellence.
These include:
• Various awards from Water Digest, Dun & Bradstreet,
EPC World, Global Water Summit, Construction Times,
ET Now, Business Television India, etc.
• Formation of an R&D Cell and Incubation Center with
technology experts for innovation and growth of the
business
• Deployment of Business Development Managers to
strategic domestic and international locations, targeting
geographic expansion
• Embracing digital facilitators, by using custom-made apps
designed to ease day-to-day operations, e.g. the Locate
Measure Navigate on Phone (LMNoP+) app used for
offline positioning and tracking
• Addressing and finding workable and innovative
solutions for the key challenges envisaged by the
business during the BEST (Business Excellence for
Sustainable Transformation) Conclave
• Recognition of L&T’s Water business by Water Digest as
• Formation of a dedicated team to focus on developing
the ‘Best Water Company of the Year 2018’
• The prestigious Golden Peacock National Quality Award
for the year 2019
Significant Initiatives
With its continuous efforts, L&T has sustained its position
as market leader. The business is reaping the benefits of
implementing various unique initiatives and also exceeding
customer expectations. Key initiatives included:
solutions using Artificial Intelligence and Machine
Learning
• Introduced Productivity Excellence – Analysis &
Realization League (PEARL) to monitor the productivity of
the project sites in a competitive manner.
Digitalisation
While driving digitalisation over the past three years to
improve efficiency and productivity, the business, in the
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Medak and Sangareddy Water Supply Project
Overview of Nagaur 250 MLD Water Treatment Plant and 5310 ML
Raw Water Reservoir
current year, focused mainly on improving the utilisation
of the digital initiatives implemented. Major initiatives
implemented this year include:
facility will also be utilised to impart BIM-related
trainings.
• Predictive Analytics for E-Pragati: A predictive model
to identify and highlight the activities likely to be delayed,
enabling the project manager to take proactive steps to
avoid project delays.
• Artificial Intelligence for Safety: SWADESH (Safe
Workplace using Advance Data analytics in ESH), an
NLP-based AI solution was developed to assess safety
observations based on the severity of its potential
impact, the number of repetitions, the location of work
and staging height where it was recorded. The online
dashboard highlights and tracks the safety performance
of projects based on key indices like Risk Score,
Repetition Percentage and Average Repetition Risk Score.
• M-FLOW: A mobile-based application used for tracking
material issued to sub-contractors, stock availability,
consumed and balance items and material reconciliation,
web-portal with dashboard and reports for analysis by
store-in-charge, planning and project team.
• PrathiBIMb: A modern AR / VR collaboration facility
lab with the latest BIM software and tools to create,
collaborate and coordinate project BIM models. The
Environment, Health and Safety
• Committed to the mission of ‘Zero Harm’, the business
clocked 106 million safe man-hours in the year.
• 5 Lakh man-hours were invested in EHS awareness and
training
• More than 8 lakh saplings were planted and 3600 units
of blood donated.
• SafeArmZTM is a patented digital solution built by the
business for proactive risk control measures at site. It
enables paperless workflow approvals.
• The business has successfully completed its DNV-GL
Transition Audit from OHSAS 18001:2007 to ISO
45001:2018.
• The business bagged several awards for safety from
RoSPA (Royal Society of Prevention of Accidents), British
Safety Council and Confederation of Indian Industry,
as well as many appreciation certificates from various
clients.
200
Pump house for Mohanpura Lift Irrigation Scheme
Sewage Treatment Plant at Rampur
Human Resources
In view of fast growth, the business has been augmenting
manpower resources. As part of the initiative to augment
the strength of front-line supervisors, ITI trainees were
inducted during the year and they are being trained
through a 12-month intensive Front-Line Supervisors (FLS)
Training Programme.
During the year, the business launched several key
development initiatives. The first batch of 21 participants
successfully passed out of the Project Managers
Development Programme (PMDP), a focused developmental
intervention aiming at building a strong project leadership
pipeline. C.R.E.A.T.E (Customer Relationship Enhancement
by Augmented Training for Expertise) was launched in
February 2019 with the aim of holistic augmentation of
competencies related to business development related in
identified participants. Currently, 21 staff members are
attending Wave 1 of C.R.E.A.T.E.
The business has launched an e-learning course on its
Quality Management Systems. The course is hosted on
L&T’s e-learning platform ‘Any Time Learning’.
Risks and Concerns
The major risks for the business are delay in obtaining Right
of Way (RoW), work front, approvals / clearances, volatility
in commodity prices (mainly steel) and longer operation
and maintenance periods.
The business is adequately prepared to meet these
challenges. It has a robust risk management framework to
mitigate the risks by proactive monitoring, healthy client
and supplier relationships, strategic tie-ups and digital
initiatives and in-depth risk reviews during the pre-bid,
execution and close out stage. The reviews involve all the
key stakeholders, including project teams, business units
and corporate teams, thereby ensuring early identification
of key risks and consequently timely planning of the
necessary mitigation measures.
Outlook
On the domestic front, water infrastructure will continue
being integral to the sustenance and the well-being of the
general populace. Consequently, the thrust to improve the
water infrastructure in India will continue. Policy changes
mandating the reuse of wastewater are also expected.
Emerging prospects are envisaged in water management,
ultra-mega STPs, micro irrigation, desalination, river
interlinking and proposals to develop brownfield cities into
smart infrastructure projects.
However, the general elections could delay the clearances,
given the political expediency of poll promises like
minimum basic income and farm loan waivers could also
impact funding, affecting timely project deliveries in the
forthcoming year.
Challenging competition is foreseen, as the business
environment is populated by geographically restricted
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Utility
Citizen-centric Apps
L&T offers a bouquet of Smart City solutions
but entrenched domestic players as well as multinational
companies focused on expansion into the Indian market.
Significant investments in water infrastructure are
anticipated and targeted in Oman, Qatar and the UAE. The
business is focusing on consolidating in the Middle East and
is planning to expand its footprint by entering into a few
select countries in East Africa and the ASEAN region.
SMARt WORLD &
COMMUNICAtION
Overview:
L&T entered the Smart World & Communication
business in the year 2016, specifically to address the
need for a safe, smart and digital India. It continues
to retain its market leadership in the overall sectors
within which it operates.
The business has three segments:
• Integrated Smart Solutions
• Security Solutions
• Communication & Telecom Infra
202
In this domain, L&T is at the forefront, collaborating
with the Government in leveraging technologies to
meet those goals. 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.
The business has expertise in the areas of city
surveillance, intelligent traffic management
systems, transport and logistics management,
communication networks (including backbone,
telecom infrastructure), smart governance and
education, critical infrastructure, smart metering
and emergency response and early warning
dissemination systems.
With this unique positioning and technology-driven
portfolio, the business has been able to attract
talent from across various industries and has
recruited a diverse pool of resources spanning
technology and domain specialists from relevant
business verticals. A strong team of technical
experts at the project level and centralised support
level enable the business to successfully integrate its
projects.
With the Smart City Mission gaining momentum,
the Smart World & Communication business is well
positioned to be a key Master System Integrator
(MSI) to manage smart city projects, end-to-end.
L&T’s Integrated Command & Control Centre manged traffic, people movement and surveillance of over 20 crore pilgrims at the Kumbha Mela
Business Environment
The Government of India has fast-tracked its investments to
leverage smart and digital technologies for cities and rural
parts of India, focusing on a safe, smart and connected
India under the ‘smart city’ mission.
NITI Aayog has initiated a national programme in the
area of Artificial Intelligence, including research and
development of its applications. Combining cyber and
physical systems has great potential to transform not only
the innovation ecosystem but also economies and the way
we live.
To invest in research, training and skilling in robotics,
artificial intelligence, digital manufacturing, big data
analysis, quantum communication and the internet of
things, the Department of Science & Technology will launch
a Mission on Cyber Physical Systems. This will support the
establishment of centres of excellence.
The Government has approved the National Mission on
Interdisciplinary Cyber-Physical Systems (NMICPS) at a total
outlay of R 3660 crore for a period of five years.
However, there are new entrants in this sector. Aggressive
bids and PSUs provide stiff competition. The Quality and
Cost Based Selection (QCBS) process adopted by the
authorities has ensured that only serious players with a
strong balance sheet and relevant experience are selected
as Master System Integrator (MSI) to implement projects of
national importance.
Major Achievments
The business received several major orders, as follows:
a. Integrated Command & Control Centre for Prayagraj
Smart City
b. Intelligent City Management System for Panaji Smart
City
c. City Network, City Wi-fi, Smart Kiosk and Variable
Message Display for Pimpri Chinchwad Smart City
d. Common Cloud Based DC and DR, Citizen Application,
and E-Governance Application along with Integrated
Command and Control Centre (ICCC) for Tamil Nadu
10 Smart City
e. Pan-city Information & Communication Technology (ICT)
Solution for Tirupati Smart City
f. Supply & Maintenance of hi-tech labs for high schools
in Tamil Nadu under E-Siksha project
g. Installation and maintenance of security cameras for
surveillance add-on for Mumbai city
h. Communication System of Bengaluru Metro
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Data Center, Hyderabad
Intelligent Traffic Management System at a critical junction, Hyderabad
i. Establishing IPMPLS network infrastructure in Andhra
• Strategic initiatives in areas like the Internet of Things
Pradesh (APSFL) and implementation and integration of
EMS, NOC, NMS and related infrastructure Telangana
(T-Fibre)
During the year, the business successfully commissioned
several Smart City projects in Nagpur, Pune, Vizag,
Raipur and Prayagraj Phase 1. It entered the O&M phase
during the year. The highlight of FY 2018-19 was project
management of the world’s largest religious gathering,
the Kumbh Mela at Prayagraj, UP, with successful
implementation and monitoring using Artificial Intelligence
for crowd management.
The business successfully commissioned the Smart Metering
project, under Energy Efficiency Services Limited (EESL),
for the New Delhi Municipal Corporation (NMDC) thus
enabling NDMC become the first distribution company
(DISCOM) in India to implement a 100% smart metering
solution.
Significant Initiatives
The business has taken the following initiatives in the areas
of tendering, technology, supply chain management and
operational efficiency improvement:
• Upselling during the Operation & Maintenance phase
• Establishing price discovery mechanisms such as zero
level costing, historical benchmarks, market intelligence,
XaaS Costing Model
(IOT), Artificial Intelligence (AI), Cyber Security &
Geospatial.
• Centralized and dedicated support for all operational
projects for maintenance of SLAs with contractual tie-ups
with the OEMs
• Setting up a Technology Excellence Centre on the campus
of the business to foster innovation in its segment, it is
geared to play a crucial part in the roll-out of emerging
technology interventions
• About 100+ certifications have been obtained by the
employees in courses such as CCNA, CCNP, CCIE, MS
Azure, CISM, etc. which provide the business an edge
over the competition
In the year under review, the business has won 18
prestigious awards, including: -
• Smart City of the Year and Smart City Wi-fi Solution
– for Nagpur Smart City – Awarded by Asian Business
Exhibitions and Conferences Limited and DigiAnalysys
respectively
• Smart Energy for Energy Efficiency Services Limited (EESL)
Project- Awarded by ASIA Smart City Awards 2018
organised by CMO Asia
• Geographic Information System Solution – (Gold) for
Gujarat City Surveillance & Intelligent traffic Management
System project – Awarded by Constructech
204
Smart Pole, Vizag
Tourist Information Kiosk, Jaipur
• Best Wi-Fi Solution Provider of the Year for BSNL Wi-fi
Project – Awarded by DigiAnalysys
• Outstanding contribution towards building smart cities to
Smart World & Communication – Awarded by CMO Asia
• E-governance Initiative of the Year for Prayagraj Smart
City project –Awarded by Federation of Indian Chambers
of Commerce and Industry
Digitalisation
The business has implemented 28 digital solutions across
its project sites and functional departments. Two of the
solutions are copyright registered. Digitalisation tools
are implemented to shorten the process time, leading
to savings. The operations monitoring tool developed
for Smart Cities won a Gold award from Constructech
magazine, Chicago.
The business has rolled out various tools in the area of
Tendering, Supply chain, Finance, Safety, etc. such as:
• Execution with Safety & Quality (AR – VR Video Training)
• For HR / Quality / Safety & Digital (HR BOT)
• Mobile Based Workmen / O&M Engineer Attendance
Tracking (Workmen)
Environment, Health and Safety
EHS is an integral part of the organization and the
projects. It is given utmost importance due to the constant
uncertainties, complex projects and several of them in
highly populated cities and sensitive areas. In EHS, the
business is committed to bring forward solutions which are
entirely digital and sustainable over a long period of time.
Key initiatives include:
• Launch of sustainable and innovative digital solutions
like SafeArmZTM and VIEW EHS - digitising the entire EHS
systems and procedures.
• Incident-free operations for the last five years
• A plan to transition to latest ISO 45001:2018 standards
in the upcoming financial year
• Training programmes, viz. Safe Execution Engineer’s (SEE)
Training and Contractor Workmen Training (CWT)
• Contributed to sustainability by planting 17259 saplings
and donating 297 units of blood
• Won various awards for excellence demonstrated in
implementation of EHS Management systems, including
2 RoSPA Gold Awards and 1 OSHAI Gold Award.
Human Resources
The average age of the team of this business is 32.6
years. The team comprises a diversified pool of engineers
specialising in the areas of cybersecurity, cloud, information
& communication technology, surveillance, server &
storage, solution architecture, command and control, etc.
Key resources with over a decade of experience add to
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Command & Control Centre, Mumbai
capability building, giving the business an edge over the
competition.
Risks and Concerns
The projects of the business are funded through Union
budget and State budget allocations and do not
pose a financial risk. Operational risks – such as short
implementation period, deferred payment terms and
stringent SLA requirements – are viewed by Master
Service Integrator. However, adequate planning and
stakeholder engagements mitigates delay in approvals from
the competent authority. The business has centralised,
dedicated support for all the operational projects for
maintenance of SLAs. Due diligence on the stakeholders
and adequate planning helps the business keep up with
project timelines. Digital interventions at every stage
of project implementation – right from planning to
operations monitoring – helps the management to take
appropriate action to pre-empt and overcome challenges.
A strong team of technical experts at the project level and
centralised support helps successful integration of the
projects.
Outlook
FY 2019-20 looks promising for the business as more
initiatives are being taken to make cities smart and safe, as
well as digital initiatives in social sectors like E-shiksha and
‘smart villages’ which are connected.
206
The Government’s interest in the security and surveillance
segment for the year 2020 remains a high priority. In areas
of enhancing homeland security, Police Modernization has
been provided a budget outlay of over R 3000 crore. City
surveillance/Intelligent Traffic Management System projects
are expected to come up in Delhi, Chennai and Bangalore.
Perimeter protection projects to protect the critical
infrastructure of the nation and surveillance at railway
stations and in coaches are expected to take off in
FY 2019-20.
The network spectrum for strengthening communication
for the Indian Armed Forces is in the finalization stage.
The Government’s Smart Cities mission is expected to see
ICT projects rollout in at least 25 smart cities with an outlay
of R 5000 crore. The Government has plans to convert
1 lakh villages into Digital Villages over the next five years.
The IOT solutions implemented in the smart cities and the
benefits derived from these systems to the urban citizens
will be extended to the rural population
With the Government’s Smart Meter National Program to
cut AT&C losses to below 12% by 2022, a special thrust on
the roll-out of smart meter infrastructure is expected across
multiple states.
The Government has proposed to setup five lakh wi-fi
hotspots which will provide broadband access to five crore
Bucket Wheel Stacker Reclaimer Machines at Adani Dhamra Port - DPCL.
rural citizens and had provided R 6,000 crore in FY 2019-20
for creation and augmentation of Telecom infrastructure.
The roll-out of Network Infrastructure, under the Bharatnet
scheme, of the balance states under the USOF funding is
also expected.
Technology will be the biggest driver in improving the
quality of education and our foray into this social sector has
begun with the Tamil Nadu High Tech Lab.
With the Government’s continuous interest in this sector
and increased budgetary allocation year-on-year, the
sector remains lucrative for investment, though faced with
stiff competition. But L&T, with its experienced team and
previous experience in executing complex technological
projects, has an advantage in the market, and remains
positive for the year 2020.
MEtALLURGICAL AND
MAtERIAL HANDLING
Overview:
L&T’s Metallurgical and Material Handling (MMH)
business offers complete EPC solutions for the
metal (ferrous and non-ferrous) and bulk material
handling sectors across the globe. The business
undertakes end-to-end engineering, procurement,
manufacture, supply, construction, erection and
commissioning. It also offers custom-engineered,
specialised material handling solutions and a wide
range of comprehensive mineral ore crushing
solutions for the power, port, steel, cement
and mining sectors. The business commands a
leadership position in the sectors it serves and has
world-class manufacturing facilities at Kansbahal
(Odisha) and Kancheepuram (Tamil Nadu).
Business Environment
The steel sector witnessed inorganic growth during
the year and is expected to provide momentum in new
expansions.
Major non-ferrous domestic players have firmed up their
capacity expansion and investment plans, buoyed by
steady base-metal prices and a spurt in domestic demand.
However, during the year, the copper segment witnessed
temporary turbulence due to heightened environmental
concerns.
A dry spell in private investment in the power sector
continued during the year. In line with the Government
of India’s Sagarmala initiative, major ports undertook
investment in the mechanisation of dry bulk systems.
Specialized conveying packages connecting mines
and ports to end users have seen momentum during the
year.
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
L&T’s KSM-404, the largest surface miner in Indian coal mine at Gevra, Chhattisgarh
Coke Oven Battery
Coal India Limited (CIL)’s production fell marginally short of
its target, despite registering higher growth in FY 2018-19,
compared to the previous year. South Eastern Coalfields
Ltd (SECL), one of the largest users of surface mining
technology for excavation of coal, is considering surface
mining of Kusmunda mines through the departmental
route – a shift from its outsourced model. Other subsidiaries
of CIL are also considering augmentation of their fleets of
surface miners and crushers in FY 2019-20.
Cement sector growth was in line with industry
expectations during the year, with a minor spurt in the
demand in the second half of FY 2018-19. The demand
for manufactured sand provided momentum for L&T’s
advanced manufacturing systems across India, specifically in
the western and southern regions.
The business environment in the Gulf region has become
conducive to growth, supported by political stability in the
region, the stabilization of oil prices and the emphasis of
the local Governments on developing a non-oil economy.
Major Achievements
With the limited opportunities available during current year,
business has managed to stay ahead of its competitors.
Major orders booked are Lead-Zinc Beneficiation at RD
Mines from Hindustan Zinc Limited, Alumina Refinery
Expansion at Rayagada from Utkal Alumina International
Limited and an Ash Handling Package at Patratu from
BHEL. Orders were also received for various products
(sand plants, surface miners, crushers, material handling
equipment).
Marquee projects commissioned / at an advanced stage of
completion in the year 2018-19 are:
• Coke Oven Batteries A&B, JSW, Dolvi
• Blast Furnace 8, SAIL, Bhilai
• Coke Dry Quenching (CDQ) unit 11, Tata, Jamshedpur
• Pet Coke Handling, IOCL, Paradip
• Coal Handling Plant, NCL, Nigahi / Khadia
• Coal Handling Plant, RRVUNL, Chhabra
• Alumina Refinery, EGA, Abu Dhabi
• Pipe Mill Project, Al Gharbia Pipe Company LLC, Abu
Dhabi
Significant Initiatives
The business has strategic alliances with leading global
technologists to offer comprehensive EPC solutions across
various sectors. During the year, the business entered
into key alliances with companies such as Rio Tinto,
Thyssenkrupp and China Power for alumina smelter and
speciality areas.
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LSAW Pipe Mill Project, UAE
Lead-Zinc Beneficiation Plant, HZL SK Mines, Dariba
On the products side, the business has augmented its
capability for in-house manufacturing of ship unloaders,
with engineering and design support from foreign
technologists.
The business lays much emphasis on EHS in order to
achieve ‘Zero Harm’ in its operations. It implements EHS
procedures, imparts EHS training and ensures review of site
EHS standards by the leadership.
The business is developing real-time monitoring systems for
stockyard machines and wagon unloading systems through
IOT and linked customized dashboards for optimum utility
of the system for customers. Digital AI Weighment systems
have been introduced at the Company’s Kancheepuram
Works.
Digitalisation
In line with the Company’s overall philosophy, extensive
thrust is placed upon digitalisation through multiple
initiatives viz. Project Progress Monitoring, Connected
Workforce and Assets, Material Tracking, Online Quality
and Safety Monitoring and Integrated Engineering (3D and
Building Information Modelling).
Environment, Health and Safety
In line with our corporate EHS Policy, intensive efforts are
made to integrate EHS with the management systems.
While leadership commitment to EHS is demonstrated at
all levels, concerted efforts are made to involve and engage
every employee, including workmen, in the safety cultural
transformation.
The business has launched various programmes to achieve
the outcomes set by the EHS management system.
Initiatives taken up during FY2018-19 include:
• Successful completion of certification audit for ISO
45001:2018 (new standard) and recertification audit for
ISO 14001:2015.
• Enhanced EHS monitoring and reporting capabilities
using various digital tools such as EHS Observation,
Permit to Work (PTW), Safety Task Assignment, EHS
Violation Memo, SOSC (Safety Observation and Safety
Contact), FIRI (First Information Report of Incident),
Rigging Permit, etc.
• A high level of management commitment is
demonstrated by deployment of competent Rigging
Engineers at site and restricting crane loading to 75% of
the rated capacity to ensure safe material handling at all
sites.
• Effective competency building programmes for site
teams, such as Scaffold Competency (certified by STI-
USA) for line teams, IOSH – Managing Safely certification,
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MANAGEMENT DISCUSSION AND ANALYSIS INFRAStRUCtURE BUSINESS ANNUAL REPORT 2018-19
Stacker Reclaimers at work at Suratgarh Power Plant
NEBOSH IGC courses, Internal EHS Auditor course, EHS
Lead Auditor course, Online EHS certification courses,
etc.
• Various awards and accolades have been received by the
business in recognition of its efforts, from Ministry of
Labour and Employment, FICCI, CII and customers.
Human Resources
Interventions to advance the skill levels of employees
were implemented through a string of strategic and
leadership-based training programmes, both technical and
behavioural, at offices and at various sites. These initiatives
will enhance organisational capabilities and produce leaders
to meet the emerging challenges on all fronts and ensure
that the organization is future ready.
Risks and Concerns
The volatility in steel prices in the domestic market and
LME base metal prices will be a concern in the year ahead.
Post-election domestic policy deliberation by the new
Government may make a significant impact on business
investments.
Outlook
The demand for metals such as steel, copper, aluminium
and zinc will continue to be driven by the Government’s
emphasis on infrastructure – urbanisation, roads and
210
highways, housing and Dedicated Freight Corridors, the
auction of mine / mine linkages, the Sagarmala initiative
combined with synergized policy implementation between
State and Centre and the rise in automotive production.
This will create lucrative business opportunities in greenfield
expansions by producers.
The FDI limit in the mining and exploration of metal and
non-metal ores has been increased to 100% under the
automatic route, giving a significant boost to the sector.
In FY 2019-20, prospects are envisaged in the domestic
cement sector, with capacity additions / augmentation
being planned by major players to order core equipment
and products. The steel sector is expected to witness
moderate brownfield expansion, with a thrust on
debottlenecking plant capacity and asset synchronization
to achieve higher operational efficiencies of the newly
acquired assets.
Base metal sector companies are on overdrive, with
investments in new expansions. The aluminium sector is
expected to be bullish on value-added downstream product
lines, despite issues like mine allocation, volatile LME prices
and high global Inventory. Copper investment is attracting
stringent environmental scrutiny, although it is expected to
witness significant investment to correct the import-export
imbalance. The zinc and lead sectors are doing well and
expect a good run in the coming year.
Implementation of the Ministry of Environment & Forest
(MOEF) notifications and the Sagarmala initiative by
Ministry of Shipping will lead to considerable prospects in
dry bottom ash systems, pipe conveyors, dry bulk terminals
in ports and mechanization of iron ore and bauxite through
environment-friendly solutions.
Steady growth in the product business is expected, owing
to medium-to-high growth in core industrial sectors,
particularly cement, coal mines and construction. Sand
mining from river beds is banned due to environmental
reasons, and consequently the user-friendly sand
manufacturing machine will find extensive use in
construction. The business has already established a
leadership position.
On the domestic front, the business continues to
experience challenges, such as delayed decisions of new-
capacity additions in the steel sector, muted investment in
the power sector, delays in land acquisition and clearances
from the Ministry of Environment & Forests, which may
further accentuate due to general elections in first quarter
of FY 2019-20, resulting in delayed decisions.
Key opportunities are emerging in the GCC (especially
Saudi Arabia), Egypt, Zambia and South Africa for alumina,
zinc and copper smelters, pellet beneficiation and specialty
areas such as port handling and freight handling packages.
However, some amount of negative impact is expected
to arise from customer preference for the EPCM option
rather than EPC route for big projects in the international
segment.
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MANAGEMENT DISCUSSION AND ANALYSIS POWER BUSINESS ANNUAL REPORT 2018-19
POWER
BUSINESS
Overview:
L&T’s Power business is one of the leading EPC
players in India that is known to deliver ‘design
to commission’ business solutions for the thermal
power Industry.
Building on its core competencies, the business
has swiftly built the necessary capabilities and
undertaken projects in newly-emerging technologies
in the thermal power plant industry, like Flue Gas
Desulphurization (FGD) for example.
The business has a track record of providing
end-to-end solutions for executing large and
complex projects. It has comprehensive in-house
capabilities including engineering, state-of-the-art
manufacturing facilities, project management
expertise and erection-to-commissioning, which
is unparalleled in India and provides complete
satisfaction of quality of delivery to the customer.
L&T’s integrated power equipment manufacturing
facility in Hazira, Gujarat is one of the most
advanced in the world where it manufactures
ultra-supercritical/ supercritical boilers, turbines,
generators, pulverisers, axial fans, air-preheaters
and electrostatic precipitators, which has added
more than 8 GW of supercritical power generation
capacity to grid since its inception.
225 MW Sikalbaha Combined Cycle Power Plant, Bangladesh
The business is now gearing up to make its
footprints in Nuclear power plants. It has taken
necessary steps to undertake STG island contracts in
upcoming PHWR nuclear based power plants.
Following are the JVs within its fold:
L&t-MHPS Boilers Pvt. Ltd., a joint venture with
Mitsubishi Hitachi Power Systems Limited (MHPS)
Japan, for the engineering, design, manufacture,
erection and commissioning of ultra-supercritical/
supercritical boilers in India up to a single unit of
1000 MW.
L&t-MHPS turbine Generators Pvt Ltd., a joint
venture with Mitsubishi Hitachi Power Systems
Limited (MHPS), Japan and Mitsubishi Electric Corp.
(MELCO), for manufacture of STG equipment of
capacity 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.
L&t Howden Pvt. Ltd., a Joint Venture with
Howden Holdings B.V. L&T Howden is in the
business of regenerative air-preheaters and variable
pitch axial fans (equipment, after-market spares and
services) for power plants.
212
2x660 MW Jaypee Nigrie Thermal Power Plant, Madhya Pradesh
L&t Sargent & Lundy, a joint venture with Sargent
& Lundy LLC, USA which is engaged in the business
of providing design, engineering and project
management services for power sector.
Business Environment
In the current year, the power industry witnessed a spurt in
ordering for FGDs. Installation of FGD systems in existing
and upcoming thermal power plants has been made
mandatory by the Ministry of Environment, Forest and
climate Change, (MOEFCC), Government of India to curtail
SO2 emissions. The Central Government has taken the lead
in ordering of FGD systems while power plants in the state
and private sector have started floating tenders, which
would ensure ordering in the upcoming financial year.
It is estimated that the total installed capacity where FGD is
to be installed stands at around 156 GW involving 430 FGD
units. The business sees enormous potential in this area
and is geared to undertake more such jobs on an EPC basis.
The business also has the right combination of technology
capabilities namely CT-121 from the world-renowned
Chiyoda Corporation, Japan and its own in-house capability
in engineering and project management, giving it a
competitive edge.
In the mainstream of EPC jobs in coal based projects,
India saw very low ordering this financial year. The tender
pipeline had practically dried up and most of the tenders
have been deferred to next year. The power sector
continues to face challenges like availability of funds, low
plant load factor, financial stress, load balancing, coal
and water availability issues, payment assurances, etc.
Further, muted demand from the private sector and excess
manufacturing capacity of suppliers continues to put
pressure on EPC prices.
Major Achievements
Following are some of the major achievements by the
business during the year:
• Achieved Commercial Operations Date for the 1st unit in
a project in Madhya Pradesh
• Achieved completion of Performance Guarantee test in a
project in Rajasthan.
• Gas Turbine Generator synchronization for a Bangladesh
Gas based power plant project within the contractual
period.
• First 1,000 MW Turbines to be manufactured in the
country by L&T-MHPS Turbine Generator (2 x 1,000 MW
Turbines)
• Award for Significant Improvement in Productivity at the
IMTMA Ace Microsmatic Productivity Championship.
The business bagged 4 contracts from NTPC for FGD and
export orders in L&T-MHPS Boilers. A strong Order Book
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MANAGEMENT DISCUSSION AND ANALYSIS POWER BUSINESS ANNUAL REPORT 2018-19
2x800 MW Sri Damodaram Sanjeevaiah Thermal Power Plant, Andhra Pradesh
Boiler internals being manufactured at Hazira, Gujarat
ensured that the factory at Hazira operated at almost full
utilization.
Significant Initiatives
During the year, the business has taken a few initiatives
like implementation of business excellence model, cost
optimization and vendor profiling among others.
With the help of leading consultants, the business has
focused on reducing its direct and indirect cost to strive for
cost leadership.
Digitalisation
In the area of digitisation, the business has implemented
various IT driven processes like IOT technology deployment
on various plants and machineries at site to improve its
machine utilization, work density in different zones, health
of machines and their duty cycles,
Other initiatives like GPS tracking of moving vehicles like
pick and carry cranes, trucks, tipper and trailers to improve
efficiency and Virtual Reality to improve safety conditions
at sites, Hawk-Eye (cloud based solution) for project
monitoring and use of drones for site survey are at various
stages of implementation.
Environment, Health and Safety
The business considers safety as an integral part of
its operations, on par with time and cost factors. The
business believes that ‘safety’ is the differentiator between
L&T and other organisations. It has now moved to next
level of safety implementation by embracing the digital
environment for a safer workplace. Embracing initiatives
like Virtual Reality to improve the safety conditions at
sites is one such example. The various other initiatives like
safety campaigns, observing ‘safety month’ and varied
programmes at sites reaffirm the business commitment
towards a robust safety management system.
Human Resources
Emphasis on training and development of the workforce
has been the focus area. The business realizes the
importance of talent preservation and has implemented
various initiatives like Promoting Perpetual Leadership
(PROPEL) for grooming of its talent. This includes
competency building programs for leadership development
to make them ready for next level, and various other
engagement programs like Instant Motivation for
Praiseworthy Actions (IMPACT) awards to motivate
and sustain employees who showcased above average
commitment.
Risks and Concerns
Despite an increasing focus on renewable energy, the
business is confident that coal will continue to be the
mainstay of the domestic power sector for providing
stable, reliable and robust base load power supply and will
continue to offer sustained market opportunities.
214
Supercritical turbine being manufactured at Hazira, Gujarat
3x660 MW Koradi Thermal Power Plant, Maharashtra
Excess manufacturing capacity, however will continue
to drive the prices aggressively and would reflect in the
financials of EPC players.
Outlook
Looking ahead, the business is confident of a revival of
capacity addition in the thermal power sector to match
projected rise in demand for power, in line with projected
economic growth in the country.
Coal fired stations will continue to be in demand as it
would ensure stable power and provide peaking power
requirements and ensure a balanced grid.
The business anticipates growth in power demand, which
would require capacity addition and enhancement in
the areas of generation, transmission and distribution.
Due to anticipated demand, the business sees a market
opportunity of around 7GW in next year for coal based
thermal power plant business.
The business sees around 40 GW of ordering in FGD
systems in the next year, and opportunities in the
replacement market.
The Government has an ambitious plan to increase the
nuclear power production to 23 GW by 2031 from the
current level of 7GW. The business sees large value
opportunities in this segment. It is gearing up in terms
of manufacturing capability and procuring the requisite
technology to produce turbines of 700 MW capacity
relating to PHWR nuclear power plants.
The Business is also taking the necessary steps to make
itself a serious player to undertake STG island contracts in
PHWR nuclear based Power Plants.
Gas based plants are not expected to revive in India soon.
The business continues to focus in markets outside India
for gas based power plants. The target countries are
Bangladesh, Sri Lanka, Myanmar, GCC countries. The
business has taken steps to strengthen its presence in the
Middle East to encash available opportunities in this sector.
The L&T-MHPS Boiler JV is looking forward to encashing
upcoming opportunities in the domestic market and
will continue to explore business opportunities in the
international market for direct export orders. In addition,
the Company is looking forward to gaining a foothold in
the Selective Catalytic Reduction system market in India
which is likely to open up in the second half of FY 2019-20.
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MANAGEMENT DISCUSSION AND ANALYSIS HEAVY ENGINEERING BUSINESS ANNUAL REPORT 2018-19
HEAVY
ENGINEERING
BUSINESS
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 and nuclear
power, including critical revamp and up-gradation
projects.
The business is a leading supplier of hydro-
processing reactors, high-pressure heat exchangers,
waste heat boiler packages, ammonia converters,
urea reactors, urea strippers and other critical
equipment for process plants. Equipment supplied
to the nuclear power sector includes steam
generators, end shield assemblies and pressurizers.
In addition, the business also provides modification,
revamp and upgradation (MRU) services.
The Piping business unit fabricates critical piping
spools for the power, refinery, petrochemical,
fertilizer and chemical sectors and has a track
record of exporting piping spools globally. The unit
has achieved international recognition through
an impeccable track record of executing large
and complex projects, including high-end reactors
and high-pressure heat exchangers, creating
global benchmarks. Its capabilities include state-of
the art, fully-integrated, globally-benchmarked
manufacturing facilities and an experienced and
216
One of the two EO reactors delivered to RAPID Petronas Refinery, Malaysia
highly-skilled talent pool. The sustainability and
safety standards at manufacturing facilities located
in Mumbai, Hazira and Vadodara are at par with
international standards.
The business has a JV with Nuclear Power
Corporation of India (NPCIL), L&T Special Steels and
Heavy Forgings Private Limited (LTSSHF) to cater to
the demand for critical forgings required for the
Indian Nuclear Power program and for other crucial
sectors like defence, hydrocarbon and oil & gas.
The JV has set up a fully-integrated forging facility
(from steel scrap to finished forgings of alloy steels,
carbon steel and stainless steels) with a capacity
to produce single piece ingots up to 200 MT and
forgings up to 120 MT in the first phase.
The JV has also been able to develop special steel
grades and meet the needs of customers in the
oil and gas segment, where it has been getting
repeat orders. It has already qualified itself as
the only indigenous producer of large and heavy
forgings for prestigious Naval Programs. The entity
has successfully completed development of the
special steel grades for forgings required in naval
applications. Having established the capabilities, the
JV is expecting significant new opportunities, once
orders for 6 Nuclear Submarines are placed under
the Government’s Make in India initiative.
India’s heaviest Hydrocracking Reactor (1858 MT) for HPCL
Visakh Refinery
Nuclear Steam Generator Cone Shell - 16 MT
Business Environment
The Business witnessed a spurt in the demand for
equipment for the Oil & Gas sector (Downstream) in FY 19,
mainly due to stable oil prices and the implementation of
Marine Pollution norms i.e. IMO 2020. The investments by
Oil Public Sector Undertakings are currently underway to
comply with the BS-VI clean fuel standards.
The fertilizer industry saw limited growth in terms of energy
saving projects viz. Kribhco Fertilizer and Indo Gulf Fertilizer,
while the nuclear business was impacted by delay in the
procurement of fleet orders.
Competition from European and other Indian fabricators
continues to be fierce. Korean, Japanese and European
companies are getting preference due to ECA (Export
Credit Agency) financing requirements, prevalent mainly in
Europe. Surplus capacities and limited demand has resulted
in aggressive competition, putting extensive pressure on
pricing and deliveries.
Major Achievements
During the year, the business experienced a spurt in order
inflows with major orders being received in the Oil & Gas
sector for critical reactors, coke drums, slug catchers, LNG
equipment, Ethylene Oxide reactors, mainly for projects in
the Middle East, China and USA. The LTSSHF JV received an
order for supply of steam generator forgings for 6 units to
be set up in ‘fleet’ mode.
Major projects under execution are Atmospheric Residue
Desulfurization (ARDS) reactors for ADNOC Refinery in
UAE, steam generators for Gorakhpur Haryana Anu Vidyut
Pariyojana (GHAVP) Unit -1& 2 for NPCIL and Hydrocracker
Unit Reactors in Duqm Oman.
Significant Initiatives
The business has focused on operational excellence
initiatives to deal with the challenging market scenario and
to enhance its competitiveness further. Major initiatives
include – On Time Delivery, First Time Right Work Culture,
Talent Management and Organization Excellence. These
initiatives have contributed to significant improvement in
increasing our speed in manufacturing and enhanced our
capabilities further.
Digitalisation
Digitalisation has been identified as a key driver for
improving quality and productivity. Several digitalisation
projects for improving monitoring of projects and resources,
and creating dashboards have been taken up by the
business. The Product & Technology Development Centre
supports the business units to develop new products and
manufacturing technologies.
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MANAGEMENT DISCUSSION AND ANALYSIS HEAVY ENGINEERING BUSINESS ANNUAL REPORT 2018-19
Spools undergoing heat treatment at L&T’s forging plant, Hazira
Lower portion of cryostat being built for ITER, world’s first fusion
energy project
Environment, Health and Safety
The Heavy Engineering business has maintained high
standards of Occupational Health and Safety, and several
initiatives like Reported Safety Concerns, EHS Awareness
and Training sessions, and Theme Based Inspections are
undertaken to provide a safe and healthy workspace
for employees, customers and other stakeholders. The
rigorous implementation of various processes has resulted
in a YoY improvement in the business’ safety performance
parameters.
Human Resources
The Business has built a committed and experienced team
of professionals, and adopted various policies and initiatives
in order to sustain healthy employee relations, professional
development and employee engagement. A cultural
transformation through a combination of the Performance
Management System, mentoring and digitalisation remains
the key driver of these initiatives. These initiatives are
communicated to all employees through various forums
like SAMVAAD-2018. For nurturing new generation leaders
and Talent Development, mentoring of key talents by senior
leaders was initiated. Long Service Awards, Team Building
Workshops, non-monetary recognition events, etc., are
periodically undertaken to enhance employee motivation
levels.
Risks and Concerns
The Business has a complete Risk Management framework
in place in line with the Corporate Risk Management
Policy. This ensures a structured review of all the projects
at appropriate levels and across the entire life cycle of
projects. The framework includes detailed review and
monitoring of various risk factors like financial risk, currency
and commodity risks, schedule and capacity risk, client and
supplier related risks, country clearance, technological and
scale challenges, among others. The risks are mitigated
through regular reviews and implementation of appropriate
risk mitigation measures. This framework has helped the
Heavy Engineering business to maintain a healthy order
book and ensure that there are no material weaknesses.
Outlook
Signs of a global economic slowdown and general elections
held in Q1 of FY 2019-20 may result in reduced demand
for heavy engineering equipment in the first half of FY
2019-20. Increasingly, customers are adopting strategies
like reverse auction and qualifying new suppliers. This
is resulting in further competitive pressures. On the
domestic front, companies are striving to build references
through technology tie ups with European and Japanese
manufacturers.
218
8 ARDS Reactors (7000 MT) ready for delivery to RAPID Project, Malaysia
The second half is likely to provide Nuclear Fleet
procurement opportunities (700 MWe PHWR projects).
The domestic Refinery sector is likely to show a revival of
the Capex cycle from Oil PSUs (IOCL, HPCL, CPCL and
BPCL). Emergence of new refineries (RRPL- Ratnagiri, and
HRRL- Barmer) and overall business expansion due to FDI
inflows will provide avenues for the equipment business in
Q4 FY20 / FY21. In the Fertilizer sector, major opportunities
are expected from Talcher Fertilizers Limited.
With the Cabinet Committee on Security (CCS) clearing the
proposal for the GOI’s investment in 10 domestic nuclear
power plant reactors (10X700MWe) through bulk ordering
in May 2017, new opportunities have been opened up
for LTSSHF. NPCIL has also initiated the process for the
procurement of critical equipment/ components like end-
shield stainless steel plates and forgings for pressurizers and
Breed Cooler Condenser (BCD) for these 10 units.
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MANAGEMENT DISCUSSION AND ANALYSIS DEFENCE BUSINESS ANNUAL REPORT 2018-19
DEFENCE
BUSINESS
Overview:
The defence, aerospace and shipbuilding businesses
of the Company have been integrated into a
separate vertical, L&T Defence Engineering, for
segment reporting. The business has been engaged
in conceptual design-to-realisation-to-delivery of
equipment, systems, solutions and platforms across
chosen defence segments, from surveillance to
strike capabilities, this vertical also provides through-
life support for the systems supplied by them. The
portfolio encompasses engineering equipment and
systems ranging from propulsion systems to enable
mobility, logistic solutions to naval & land platforms
such as warships, submarines and armoured
systems. The Company’s defence solutions span the
value chain from building platforms and systems to
through-life support in a unified manner.
L&T has been active in the defence and strategic
sector since the mid-80s, by associating with the
Defence Research & Development Organisation
(DRDO) and naval indigenisation programs - well
ahead of the opening up of the sector for private
Industry participation. At that time, the defence
initiatives focussed partnering DRDO Laboratories in
the design and prototype development of complex
weapon systems. It also focussed on the design,
development, qualification and delivery of special
purpose engineering equipment for naval platforms
220
MRSAM Mobile Launcher System
being built by MoD shipyards and under DRDO
programs.
Over the years, the business portfolio grew in
scale and maturity to include indigenous design,
development, industrialization and serial production
of a range of naval and land weapon launch and
engineering systems, fire control systems, missiles
and space launch vehicle subsystems, radar systems
and sensors, military communication systems and
avionics. This evolutionary journey has led to the
development of capabilities in design, engineering
and construction of naval platforms (submarines
and warships) and armoured systems.
The operations span across two R&D centres, three
Design & Engineering Centres and production
centres at nine locations spread across India to serve
the defence and aerospace sectors. These include:
• Submarine Hull-building Facility, Hazira
• Armoured Systems Complex at Hazira for
manufacturing, integration and testing of
armoured systems
• Precision Manufacturing and Systems Complex,
Coimbatore for aerospace and missile
manufacturing
• Advanced Composites facilities at Vadodara and
Coimbatore
Pinaka Guided Launcher System
155mm/ 52 Cal Tracked Self Propelled Gun K9 VAJRA-T
• Strategic Systems Complex, Talegaon, Pune, for
weapon and engineering systems and sensors
• Strategic Electronics Centre at Bangalore
• Marine Switchgear and Control Systems, Navi
Mumbai,
• A modern shipyard at Kattupalli, near Chennai
• A facility at Vizag under the Government Owned
Contractor Operated (GOCO) model for a
Strategic Program
• R&D Centres at Powai and Bangalore for targeted
product, systems and technologies
• Design and Engineering Centres at Powai and
Chennai for warship, submarine and weapon and
engineering equipment
The Defence Business is structured into two business
groups:
1. Defence and Aerospace
2. Defence Shipbuilding
1. Defence and Aerospace
Over the years, the Defence and Aerospace (D&A)
business has built a portfolio spanning a wide range
of indigenous products, systems, solutions, platforms
and technologies. This has been achieved through
in-house efforts as well as by teaming up with DRDO
and participation in the Indian Navy’s indigenisation
program for realisation of defence systems within the
country. Till date, the D&A strategic business group
has indigenously developed more than 250 defence
products and over 50 of them have been industrialised
and delivered in serial production mode.
The business model is uniquely differentiated
with a focus on in-house technology and product
development, with innovation at the core of our
offerings. This is augmented by our mature and
equitable partnerships with global majors, to maintain
our market lead position in an environment where the
Government is aggressively pursuing an indigenisation
agenda while most indigenous players are dependent
on ToT model to pursue defence production. The
business thus continues investing in R&D to develop
new age technologies and products such as unmanned
systems (all four segments), robotics, additive
manufacturing (3D printing) and artificial intelligence.
The D&A group also has a Joint Venture (JV) with
MBDA, a global leader in missiles and missile systems.
The JV is well positioned to indigenously offer advanced
missile systems to the Indian Armed Forces.
2. Defence Shipbuilding
L&T’s Shipbuilding offers end-to-end solutions
for design, construction and through-life support
for defence platforms. L&T operates two defence
shipyards – one at Hazira Manufacturing Complex
and another greenfield mega shipyard at Kattupalli,
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MANAGEMENT DISCUSSION AND ANALYSIS DEFENCE BUSINESS ANNUAL REPORT 2018-19
L&T built Offshore Patrol Vessels help the Indian Coast Guard keep our shores safe
near Chennai. Located across a sprawling 900-acre
complex, the Kattupalli Shipyard is India’s largest yard,
designed in-house and built to globally benchmarked
technological practices. Dedicated design centres for
warships and submarines are equipped with latest
integrated 3D design, analysis, virtual reality and
Product Lifecycle Management tools, interfaced with
project management and ERP systems on one hand and
production machinery in the workshops, in line with
global best practices. This is the only yard in India with
Industry 4.0 practices in place and pursuing modular
construction based on indigenous solutions.
The Shipyard has been largely engaged in New Build
and refits / repairs of defence ships of the Indian Navy
and Indian Coast Guard. The Shipyard, since 2010, has
designed, constructed and delivered 50 Defence Vessels
which include a Floating Dock (Navy), Interceptor Boats
and Offshore Patrol Vessels (Coast Guard) in record
time. The unique capability of the business to achieve
on-time or ahead of contractual delivery, performance
in all the contracts for Defence Vessels is a benchmark
in itself for the Indian Shipbuilding Industry to emulate.
Business Environment
Over the last five years, the Government of India, in
its quest to boost defence manufacturing, has taken
substantive steps to ease licensing in defence, promote
exports, preferential categorization of acquisition in favour
of indigenisation of defence systems, accelerating process
of Acceptance of Necessity and RFPs and encouraging
private sector participation in the defence sector. The intent
of the Government to achieve higher indigenization and
self-reliance is visible in the latest policy measures such as
Strategic Partnership, simplified Make II procedure, defence
corridors in Tamil Nadu and Uttar Pradesh and the draft
Defence Production Policy. Defence procurement policies
and procedures continue to evolve with earnest and
positive impetus towards ‘Make in India’.
While various policy initiatives are in the right direction,
the challenge resides in time-bound implementation,
convergent and concurrent actions. While the GoI has
taken steps to ensure ease of doing business by issuing a
series of amendments to DPP under 4 rounds of Business
Process Restructuring initiatives and also addressed many
issues to grant a level playing field, the concerns of private
sector remain unaddressed as Defence PSUs are still being
preferred for key programs in the pipeline, based on earlier
decisions. With these earnest efforts by the Government,
the stage is set to leverage indigenous capabilities and
infrastructure created by L&T across domains and segments
over years to come.
Major Achievements
• Delivery and commissioning of the 1st Indian Weapon
System, for a foreign Navy is a significant breakthrough
for L&T
222
Floating Dock
Modular Bridging Systems built by L&T give our Armed Forces enhanced mobility
• Dedication to the nation of L&T’s Armoured Systems
Complex at Hazira by the Honourable Prime Minister in
presence of Hon. Defence Minister
• Significant weapons systems delivered included K-9
Vajra Howitzers, Pinaka MRLS, BM21, Akash Air Defence
Systems – many of which were displayed at the Republic
Day Parade
• Delivery of multiple weapon launch systems (land and
naval), engineering systems and missile systems to the
Indian Armed forces
• Announcement on operationalization of deterrence
patrol by INS Arihant by our Honourable Prime Minister –
testimony to the platform’s build quality
• Handover of three Offshore Patrol Vessels (OPVs) to
Indian Coast Guard – all ahead of schedule.
• Benchmark-setting delivery: OPV-1 was the first
First-in-Class ship since 1963 to be delivered within the
contracted schedule
• Ahead-of-schedule deliveries of Interceptor Boats (IBs) to
Indian Coast Guard (8 boats in FY 19)
New Orders
• Supply of 10m short span bridges received from MoD.
• Order from MBDA France for MICA missile rear section
and launcher integration.
Significant Initiatives
In addition to the focus on defence manufacturing to serve
the Indian Armed Forces, direct exports are being targeted
as an additional engine for growth.
L&T has been working closely with DPSUs over the
years and the relationship was taken to the next level by
signing MoUs with BEL and BEML. This will aid L&T and
the partners to target specific programs and explore new
opportunities for both domestic and international markets.
Besides having a strong focus on R&D, digitalisation to
enhance productivity, building synergy across work centres
and business sustainability, the business is also working on
strengthening partnerships to explore and target newer
markets. During the year, a new facility for production of
Armoured Systems was created in L&T’s Hazira Complex
with ‘Industry 4.0’ set-up, which has already started rolling
out K9 Vajra-T Howitzers. The business, in its association
with DRDO in development of indigenous systems made
marked contributions to 17 of the 20 systems for which
DRDO conducted successful launch trials during the year,
by supplying critical systems such as Launchers, Fire Control
Systems, Stabilisation Systems, Missile Airframes, etc.
Digitalisation
The digitalisation journey for the business dates back to the
late eighties with progressive implementation of Computer
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MANAGEMENT DISCUSSION AND ANALYSIS DEFENCE BUSINESS ANNUAL REPORT 2018-19
L&T has made a vital contribution to India’s first nuclear -powered submarine
Aided Design, 3D modelling, Walkthroughs, Virtual Reality,
Digital Manufacturing techniques, Laser based Metrology,
Integration, etc. These techniques have been applied
across the value chain from digital design through platform
manufacturing and system integration. In recent years, the
business embarked upon utilising Industry 4.0 technologies
to make operations efficient and stay ahead of delivery
schedules all the times. The business has initiated IoT
implementation in manufacturing centres to add a new
edge to operational efficiencies. While a range of digital
initiatives have already been implemented, many more are
in the implementation phase.
Environment, Health and Safety
The business has displayed exemplary performance on
safety track record across work centres and customer
locations and also at Business Partners premises. The
awards won by Powai and Kattupalli work centres
accentuate the resolve for championing safety as our
core value. The business continued to focus on the triple
bottom line and green initiatives and achieved significant
y-o-y reduction in water and energy consumption, keeping
sustainability in mind. The Miyawaki forest development
project at Talegaon unit has been a unique success story for
many to emulate. This has already become natural habitat
for fauna, migratory birds, peacocks, etc.
Image for representational purposes only
Human Resources
HR initiatives have been aligned to the overall business
strategy by focussing on identifying and grooming high
potential talent, critical for having a competitive advantage
through various management and leadership programmes.
The business has implemented a Technology Leadership
Programme to maintain its market leadership position and
continue to focus on development of niche technologies.
Attention to leadership and talent development continues
as a business imperative. Further, with renewed emphasis,
the business has embarked on an employee engagement
initiative to retain, grow talent and continue to be an
employer of choice.
Risks and Concerns
The defence sector as a whole, exhibits a cyclical nature
in terms of business growth opportunities. In L&T’s case, a
bouquet of products across segments, developed through
in-house efforts, has ensured that the risk is limited to
deferment of orders. The impact of diversion of funds to
social spending ahead of the Lok Sabha elections and GST
reimbursements to OEMs may impact the project awards
and progress.
Outlook
Defence Business
The Defence Production Policy awaiting final clearance by
the Government has set clear targets for the quantum of
224
Tactical Unmanned Aerial Vehicle designed and built by L&T
L&T has provided systems for most of India’s space missions - including those to the
moon and Mars
defence production, both domestic and exports by 2025.
The policy explicitly lists 13 segments for which indigenous
capability will be built and imports will be disallowed. This
augurs well with the industry to develop capabilities and
capacities over a mid to long-term basis. The company has
already been working in capability and capacity building in
many of these segments and has a proven track record in
many of them.
Since 2014, programs worth more than R 4.5 Lakh crores
have been cleared for acquisition with 2/3rd of them
categorised for Indigenous acquisition. The Private Sector
has been allowed to compete for more than 50% of the
programs categorised as indigenous acquisition – a major
change compared to preceding five years, when it was
below 5%.
The defence production market shows promise of
significant pick-up in the medium to long term as the
Government implements some of the policy initiatives still
in the pipeline. The Indian Navy’s aggressive fleet expansion
plan, combined with the ‘Make in India’ initiative of
the Government provides wider opportunities to Indian
shipyards for construction of warships and submarines for
defence forces.
Aerospace Business
The Indian Space Research Organization (ISRO) has started
working on its ambitious plan of Gaganyaan 2022 and
has also initiated actions to involve the industry in Launch
Vehicle Integration which is likely to create sizeable
opportunities. In-line with this, L&T and HAL have signed
a consortium agreement to produce the complete launch
vehicle for ISRO.
The strategic partnership policy has been created to bring
in private sector participation in addition to the production
lines of the DPSUs for manufacturing defence platforms
within the country. During the year, two programs have
been approved for procurement under SP viz. Naval Utility
Helicopters (NUH) and Program 75(I) for construction of
Conventional AIP Submarines indigenously. While, the EoI
for NUH program has been released for Indian and Foreign
OEMs in FY 2018-19, the same is expected for P75(I) in
the first quarter of FY 2019-20. L&T, having been a vital
contributor for indigenous production with experience
across segments, is well placed to be a Strategic Partner to
the Government of India and indigenously build platforms
that were earlier fully imported or assembled with
dominating import content.
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MANAGEMENT DISCUSSION AND ANALYSIS ELECtRICAL & AUtOMAtION BUSINESS ANNUAL REPORT 2018-19
ELECTRICAL &
AUTOMATION
BUSINESS
Overview:
L&T’s Electrical & Automation business is a leading
provider of electrical equipment in India. It is
structured into two Strategic Business Groups
(SBGs) – Products SBG and Projects SBG.
The business is engaged in manufacturing low and
medium voltage electrical switchgear products (both
standard and customized), energy meters, apart
from executing projects in the control & automation
space. The products are widely accepted in both
domestic and international markets, particularly
in South East Asia, the GCC, select African
geographies and the UK.
L&T’s low voltage switchgear commands the
highest market share in India. Its medium voltage
switchgear products enjoy a market-leading share in
Malaysia.
The Company’s low voltage switchgear is
manufactured at three locations in India - Vadodara,
Mahape (Navi Mumbai) and Ahmednagar. The
medium voltage product segment has two
manufacturing units, one in India (Ahmednagar)
and the other in Malaysia. The low voltage
switchgear and agricultural products are marketed
through a network of over 650 stockists.
City Command & Control Centre, Vadodara Municipal Corporation.
L&T is one of the largest manufacturer of single-
phase energy meters in Asia and enjoys a market-
leading position.
The range of automation products, such as drives
and PLCs, are sold through around 75 Integrated
Solution Providers. In addition, it also serves the
retail market through a network of 165 Retail
Distributors (called Primary Trading Partners) and
around 350 Distribution Select Partners (DSPs).
The business serves a wide range clients across
sectors – metro rail, airports, renewable energy/
solar, defence, hospitals, educational institutions,
data centres, realty projects, auto, food & beverage,
chemical, pharma, textile, sugar, automobile and
steel. Additionally, the business supports the
Indian agricultural ecosystem through innovative
control-gear products as well as new-generation
solar-energy supported products.
The industrial automation presence of the business
is supported by an in-house manufacturing
capability for control panels, strong in-house design
and development teams and its own copyright
software solution – i-Visionmax®. It also has tie-ups
with global players in the automation industry.
The business has five DSIR-approved R&D facilities
and two NABL-accredited testing laboratories
to test products across diverse parameters. The
226
L&T offers India’s widest range of switchgear to a variety of sectors
design and development team collaborates with
international laboratories, testing centres and
academic institutions. The business is supported by
state-of-the-art tooling facilities which produce a
range of high-precision tools to serve the needs of
the business as well as those of external customers.
The business has an international presence through
its subsidiary, the TAMCO group of companies,
which manufactures low and medium voltage
switchgear. It caters to international markets, i.e.
the Middle East, Europe, Africa, North and South
Asia, Australia and New Zealand.
L&T Electrical & Automation FZE (LTEAFZE) is a
100% subsidiary of L&T International FZE. It is
located at Jebel Ali Free Zone in Dubai and caters to
customers in the Middle East and Africa. It provides
turnkey engineering, assembly, integration of
electrical, instrumentation and telecommunication
solutions. LTEAFZE currently is doing work for two
major projects in GCC, notably the Doha and Riyadh
metros.
L&T Electrical & Automation Saudi Arabia Company
Limited (LTEASA), located at Dammam in Saudi
Arabia, is a wholly owned subsidiary of L&T. It
offers to the Gulf market a spectrum of products
and services, such as Air Insulated Switchgear
(AIS), Gas Insulated Switchgear (GIS), Ring Main
Units, LV Switchgear and Motor Control Centres
(MCC) - fixed / draw out, pre-fabricated / packaged
sub-stations.
Henikwon Corporation is a leading manufacturer of
low voltage and medium voltage bus duct systems
for the building and infrastructure segments. It
caters to customers in South East Asia, India and the
Middle East.
Servowatch Systems Limited, Bond Instrumentation
& Process Control Limited and Servowatch Inc,
(USA) offer technology in the control & automation
space for marine applications as well as other
emerging segments. It is recognised as a global
leader in system integration for modern naval
platforms, super yacht installations and commercial
marine operators.
Business Environment
FY 2018-19 witnessed several technological shifts –
from PLC (Programmable Logic Controllers) to PAC
(Programmable Automation Controllers) in the equipment
space, the emergence of IIoT analytics to facilitate
monitoring and service management and the emergence
of intelligent solutions. These are some of the key factors
fuelling the market growth for the business. Additionally,
the business is very sensitive to macro-economic situations
and scenarios, including Government policies and macro-
economic stability.
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MANAGEMENT DISCUSSION AND ANALYSIS ELECtRICAL & AUtOMAtION BUSINESS ANNUAL REPORT 2018-19
Air-insulated Switchgear
In order to reduce AT&C (Aggregate Technical &
Commercial) losses, the Government has launched a
scheme to convert all energy meters to smart prepaid
meters. This bodes well for the metering business of
the Company. Revision in agricultural MSP, targeted
improvement of farmers income and other such
initiatives have led to increased demand. The business
has seen improved prospects from industries like textiles,
Infrastructure and from Government-funded schemes like
DDUJY and IPDS. Growth opportunities have arisen from
segments such as affordable housing, airports, renewable
energy, hospitals, educational institutions, data centres and
telecom.
The trade war between the US and China and the Brexit
chaos pose risks at the global level. However, the Indian
economy continues to move from strength to strength and
reap the benefits of the economic slowdown in China.
Cues of pick-up in Malaysia can be seen, while Gulf
countries continue to be sluggish, with no sign of revival
in sight. However, the swinging oil prices and plans for
expansion in this space have led to increased capex outlay
in GCC countries like the UAE, Kuwait and Iraq.
Major Achievements
• Grants for 34 patents, 33 trademarks and 26 design
applications in India, as well as 3 foreign patent grants
(one each in China, Malaysia and Europe).
• Electrical Standard Products business
- 20% Healthy New Product Intensity (NPI) index
powered by focused R&D activities
• Electrical Systems & Equipment business
- Breakthrough in Africa for business with an order from
the Dangote Group.
- Attained success with wind players
- Ahmednagar Switchgear Works factory has become
the first Indian factory approved by global wind majors
Significant Initiatives
Multiple value engineering and procurement optimisation
measures have helped generate operational cost-
efficiencies and savings, across the business. A few, key
vertical-specific initiatives include:
Electrical Standard Products
- Total Quality Management (TQM) remained a key
focus area for business. It has applied for the coveted
Deming Prize – the highest Quality award – which will
help the business to garner further opportunities from
international markets.
- New products introduced included MCCBs and variants
of Omega ACBs for new emerging markets, contactors
228
Smart Meters
for power quality control, the ENGEM range of wiring
accessories, products for the agriculture segments, etc.
Metering and Protection Systems
Ongoing implementation of operational excellence
initiatives such as Value Engineering, Lean Manufacturing,
5S, etc. have helped it to achieve cost efficiencies and to
remain competitive.
Switchboard Business
By shifting its low voltage switchboard manufacturing
operations from Ahmednagar to Coimbatore the business
has increased its manufacturing capacity for medium
voltage products.
Electrical Systems and Equipment
-
Introduced a range of new products for the utilities
segment i.e. feeder pillars, CSS (Compact Sub Stations)
and Front RMU (Ring Main Unit) with FRTU (Feeder
Remote Terminal Unit)
- New products for infrastructure projects (metros,
airports, smart cities and high-end residential
complexes) in global markets: Sub-Main Distribution
Board (SMDB) and GIS for the wind segment
Control and Automation
- Successfully developed its in-house AC drives of Series
690V and MV range, thereby reducing dependence on
imports.
- Upgradation of the in-house developed SCADA
i-Visionmax® which is gaining increased acceptance in
the market.
Digitalisation
The business has embarked on number of enterprise-wide
transformation initiatives towards digitalisation and data
analytics in alignment with its business strategy. These
include:
- Project Maitri – IoT-based Smart Asset Management
Solution
- Asset Intelligence Management
- Collaboration, Document Management System,
Workflow Management
- Digital Training & Education
- Augmented Reality
- Virtual Factory Visit (VR)
- Sales Force Automation solutions
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MANAGEMENT DISCUSSION AND ANALYSIS ELECtRICAL & AUtOMAtION BUSINESS ANNUAL REPORT 2018-19
Switchboard installation at a national infrastructure site
SCADA Systems
Environment, Health and Safety
Energy conservation remained a major focus area in
FY 2018-19 across all manufacturing locations. Various
initiatives undertaken have saved total energy of
2392491 kWh. Notable conservation initiatives across all
manufacturing locations include the use of LED lights,
optimum temperature setting for ACs, installation of solar
panels to reduce conventional energy consumption and
the implementation of energy-saving options on CNC
machines.
Regarding safety, seven Lost Time Incidents were reported
during the year from different project sites and factories
of the business. There were no accidents reported at the
Mahape, Ahmednagar, Coimbatore and Mysuru locations.
The business has increased safety training man-hours.
During the year, it spent 88% more man-hours in training
in comparison with the last financial year. This has
resulted in higher safety awareness among employees and
consequently fewer Near-Miss Incidents in the year.
Human Resources
The sustained focus on employee development and
engagement complements consistent business results.
Enhanced workforce productivity is testament to innovative
HR initiatives implemented year after year. The unique
leadership development framework of STEP initiatives equip
managers with the necessary leadership competencies
required at different managerial levels. The business’s
ability to scale-up operations through the right talent mix
as well as to provide an eco-system conducive to high
performance, reflects a robust engagement matrix.
Engagement frameworks on Rewards & Recognition (R&R)
including Annual Awards and My-Day-My-Way stand out
amongst the most popular and widely recognised initiatives
across the business. Beyond engagement outcome and
predictors, several human capital initiatives are designed to
suit the business’s strategy.
Risks and Concerns
Some parts of the businesses such as Meters, Control
& Automation projects and supply of products to
utilities are dependent on Government contracts and the
stability of the Government’s policies is essential to its
growth. This risk is mitigated by an attempt to diversify the
customer base.
Private sector investments are also a driver for the business’s
growth. Political and policy stability will, in turn, determine
private sector growth. Any instability is a risk to the
business and mitigation is again being attempted through a
focus on products in emerging technologies, such as solar,
in which projects are likely to be relatively Government and
policy-agnostic.
230
Range of U Power Omega Air Circuit Breakers
The increasing barriers to imports in some of the GCC
countries resulting from an emphasis on local content
and presence poses a challenge. Country-specific business
models to deal with local legislation in this regard are
being mooted to mitigate this risk. The oil & gas industry
is a major customer for the business across geographies.
Investment in this space is directly related to the stability
of oil prices. A more balanced customer base with
increased focus on new technologies, i.e., renewables and
infrastructure, are mitigation approaches.
Outlook
GDP growth in India is expected to be at around 7% and
CPI & WPI Inflation remained subdued. To fuel industrial
growth, RBI announced rate cuts with a focus on improving
credit and liquidity.
Significant opportunities will be provided to the business by
new infrastructure, public transport systems, airports and
support to renewable energy. Government programmes
like UDAY, Smart Cities, Smart Grid, Pradhan Mantri Krishi
Sinchayee Yojana, Pradhan Mantri Kisan Samman Nidhi
Yojana, Digital Villages, India’s Electric Vehicles mission
and increased focus on renewable energy will provide new
opportunities for the business.
Opportunities in the GCC region will emerge from the
impetus to large renewable energy projects, the creation
of new urban infrastructure and an increased focus on
automation across sectors, notably in oil & gas. Growth in
Africa is also expected to increase and the presence of the
business in select geographies will be beneficial.
During the early part of FY19, L&T entered into a
definitive agreement with M/s Schneider Electric, a French
multinational company, to divest its Electrical & Automation
business in line with the Company’s policy to exit non-core
businesses, subject to approvals from regulatory authorities.
The Competition Commission of India in its letter dated
April 18, 2019 has accorded approval, subject to certain
amendments the details of which are awaited.
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MANAGEMENT DISCUSSION AND ANALYSIS HYDROCARBON BUSINESS ANNUAL REPORT 2018-19
HYDROCARBON
BUSINESS
Overview:
L&T’s Hydrocarbon business provides integrated
‘design to build’ turnkey solutions for the global oil
& gas industry and fertiliser sector. The Company
executes projects for oil and gas extraction and
processing, petroleum refining, chemicals and
petrochemicals, cross-country pipelines and
terminals. In-house capabilities range from front-end
design through detail engineering, procurement,
fabrication, project management, construction
and installation up to commissioning services.
L&T’s Hydrocarbon business is housed primarily
in a wholly owned-subsidiary, L&T Hydrocarbon
Engineering Limited (LTHE).
The business has a fully integrated capability
chain, including in-house engineering and R&D
centres, world-class modular fabrication facilities
as well as onshore construction and offshore
installation capabilities. Major facilities in India
include Engineering & Project Management
Centres at Mumbai, Vadodara and Chennai, as
well as Fabrication Yards at Hazira (near Surat) and
Kattupalli (near Chennai). The Company’s overseas
presence is primarily in the Middle East, i.e. in the
UAE (Sharjah), Saudi Arabia (Al-Khobar), Kuwait
and Oman (Muscat). The business also has a major
Modular Fabrication and Heavy Engineering Facility
at Sohar in Oman.
232
40,000 MTPA Melamine Plant for Gujarat State Fertilizers & Chemicals,
Vadodara, India
The business caters to clients across the hydrocarbon
value-chain through the following business verticals:
Offshore
Lumpsum turnkey EPCIC solutions are offered to the
global offshore oil & gas industry encompassing wellhead
platforms, process platforms and modules, subsea
pipelines, brownfield developments, offshore drilling
rigs (upgrade and new-builds), floating production
storage and off-loading (FPSO) modules, deep-water
subsea systems, offshore windfarm projects and
decommissioning projects.
The business has comprehensive engineering capabilities
covering the complete project life cycle from feasibility
studies, concept, FEED, 3-D model based detailed
engineering, special studies to commissioning for
offshore projects. The offshore capability is supplemented
by a self-propelled heavy-lift-cum- pipe-lay vessel – LTS
3000 – held in a joint venture with Sapura Energy Bhd
and a recently-acquired pipe-lay barge – LTB 300 – which
will be an enabler in augmenting the Company’s offshore
installation capabilities.
Onshore
The business vertical provides EPCC solutions for a
wide range of onshore hydrocarbon projects covering
upstream oil & gas processing, refining, petrochemicals,
fertilisers (ammonia & urea complexes), cryogenic storage
A fully-integrated gas platform - the heaviest in Saudi Aramco’s history - installed by float-over method at Hasbah Field in Saudi Arabia
tanks and LNG regasification terminals and cross-country
pipelines. The business has a track record of successful
simultaneous execution of multiple mega projects having
diverse technologies from process licensors like UOP, Axens,
Haldor Topsøe, Lummus Technology, Scientific Design, Black
& Veatch, Ortloff, Air Products, ExxonMobil, Merichem,
Foster Wheeler, Casale, BOC Parsons, Invista and Davy
Process Technologies.
The Company’s Design Engineering Centres – L&T Chiyoda
for onshore engineering and L&T GULF for pipeline
engineering – enable it to offer its clients the complete
spectrum of FEED, process and detailed engineering.
In-Kingdom EPC prospects in Saudi Arabia are addressed
through the Company’s subsidiary, LT Arabia, registered as
an IKEPC Company.
Construction Services
This business vertical renders turnkey construction services
for refineries, petrochemicals, chemical plants, fertilisers,
gas gathering stations, crude oil & gas terminals and
underground cavern storage systems for LPG and cross-
country oil & gas pipelines.
Its major capabilities include heavy lift competency,
application of 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
machines and other plant and machinery for electro-
mechanical construction works. The business has executed
projects for major private sector customers as well as major
oil PSUs.
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.
Modular Fabrication Services
Comprehensive modular solutions are offered, with a
unique combination of Modular Fabrication Facilities
backed by rich and extensive experience in Project
Engineering, Procurement and Installation / Construction,
Testing and Commissioning (EPIC/EPCC) in both Offshore
and Onshore domains, in primarily the oil & gas sector.
This includes fabrication and supply of modules and
static equipment for offshore oil & gas fields, refineries,
petrochemical plants and fertiliser complexes. World-class
modular fabrication facilities are strategically located at
Hazira (India’s west coast), Kattupalli (India’s east coast) and
Sohar (Oman) with a combined annual capacity in excess
of 2,00,000 MT (depending on the product mix). These
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MANAGEMENT DISCUSSION AND ANALYSIS HYDROCARBON BUSINESS ANNUAL REPORT 2018-19
3-D model of Normal Paraffin & Derivative Complex under execution for
Farabi Petrochemicals at Yanbu, Saudi Arabia
One of the 4 decks of SFNY-4D project installed in Safania Field
for Saudi Aramco
facilities offer year-round delivery capability with robust
QHSE performance and are equipped with state-of-the-art
infrastructure and machinery for operational and logistical
flexibility, project management and cost competitiveness.
The business is also equipped to supply foundations and
other modules for offshore wind farm projects and modular
e-houses.
These all-weather waterfront facilities have easy access to
clients across the globe and have load-out jetties suitable
for the dispatch of large and heavy modules via ocean
going vessels and barges.
Advanced Value Engineering & technology
Services (AdVENt):
The Company’s erstwhile Engineering Services vertical
has been restructured into a specialized vertical. Known
as ‘AdVENT’, it offers customer-centric solutions for the
Hydrocarbon industry and emerging industries while
addressing the specific needs of the changing energy
sector.
Leveraging its expertise in high-end engineering and
execution of large-scale technologically complex EPC
projects, AdVENT delivers comprehensive solutions
encompassing Design & Engineering, Project Management,
Strategic Project delivery, Modularisation, Asset
Management and Turnaround Services.
AdVENT is involved in implementation of indigenous
2G (Second Generation) Ethanol Technology through
upcoming plants based on agro-waste under the National
Biofuel Policy.
Business Environment
FY 2018-19 witnessed fluctuating commodity as well as
currency markets. Oil prices exhibited significant volatility
with Brent crude price soaring to USD 86 per barrel in
early October 2018 and subsequently nosediving to a
low of USD 51 in December 2018. However, the business
environment in the Middle East for oil & gas projects is
quite buoyant, with large-scale projects under various
stages of development. There are now visible signs of
higher capital expenditure in both Onshore and Offshore
businesses.
Saudi Arabia has reported a rise in oil and gas reserves
up to 268.5 billion barrels. Abu Dhabi has passed an
AED 132 Bn budget for the next 5 years, with increased
focus on gas production, unconventional and new
developments. Also, ADNOC is allowing more international
companies to independently mine for oil & gas. However,
localisation content and value norms in the GCC countries
are becoming intense, with significant weightage given
while awarding projects.
Indian refineries are in a healthier financial position due
to higher refining margins and a lower subsidy burden.
234
LTB 300, a pipelay-cum-work barge undertaking offshore installation
Significant investments are planned by PSUs in the
debottlenecking of existing assets, expansion of existing
refineries and integrating refineries with petrochemical
complexes.
The Government has its focus on the LNG Infrastructure.
Consequently, it has slashed the import duty from 5%
to 2.5%. Also, enhanced oil and gas recoveries are
subsidized by the Government for royalties. The Indian
market is becoming increasingly attractive to international
competitors, with India’s ambitious plan to enhance its
refining capacity by 2030.
Consolidation continues in the industry as service providers
seek to create value through integrated offerings to clients.
Intensity in competition is increasing by the day, with the
prevalence of predatory pricing among service providers.
Major Achievements
Offshore
Projects Completed
During the year, the offshore vertical handed over three
wellhead platforms ahead of schedule to ONGC for their
Neelam Redevelopment Project. The balance process
platform, along with an associated bridge, is progressing
on schedule. The Company also completed Transportation
& Installation (T&I) for Daman Development Project and
achieved substantial completion for ONGC’s Pipeline
Replacement Project – 4 (PRP4) project. It also completed
the Safaniya 4 Deck project and upgraded 17 Tower Cranes
for Saudi Aramco.
Orders Won
• EPCI contract in consortium with Subsea7 for three oil
production deck manifolds and subsea pipelines in the
Zuluf and Berri Fields of Saudi Aramco.
• Contract in consortium with Baker Hughes and
McDermott International for ONGC’s largest deepwater
oil & gas project, the development of block DWN-98/2 in
the Krishna Godavari basin.
• EPCI contract from ONGC for development of Cluster
8 marginal field involving three wellhead platforms, 1
bridge-connected wellhead-cum-riser platform, a ~59 km
pipeline, 3 clamp-on structures and modification of two
platforms.
Onshore
Projects Completed
• Gathering Centre, GC-30, in North Kuwait for Kuwait Oil
Company
• SNDC-2 and KDC-2 projects for PDO, Oman
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MANAGEMENT DISCUSSION AND ANALYSIS HYDROCARBON BUSINESS ANNUAL REPORT 2018-19
Saih Nihaydah Gas Compression Project (SNDC2) for Petroleum Development Oman (PDO)
• Off-gas treatment (urea plant) was successfully
• First breakthrough project in Algeria – EPCC contract
commissioned for GSFC
from Sonatrach for South West Gas Fields Development
Project.
• Mechanical completion of a melamine plant for GSFC
• Mechanical completion for IOCL Haldia’s Coke Drum
System Package (CDSP)
Construction Services
Projects Completed
Orders Won
• Two fertiliser plants of 2,200 TPD ammonia and 3,850
TPD urea at Barauni (Bihar) and Sindri (Jharkhand)
on EPCC basis in consortium with TechnipFMC from
Hindustan Urvarak and Rasayan Limited (HURL) - a major
breakthrough in the fertiliser segment, offering complete
ammonia plants.
Successful commissioning of ROGC, PCG DTA, PX-04,
MEG, LDPE and ECSP plants for Reliance Industries Limited,
Jamnagar.
Orders Won
• Pipeline and associated works in the south-eastern region
of India from IOCL
• Upgradation of facilities of Mangala Terminal at Barmer
• Seven cracker furnaces of 1200 KTPA Dual Feed Cracker
Unit (DFCU) on EPC basis from HPCL-Mittal Energy.
for Vedanta
• EPCC order from IOCL for 357 KTPA Mono Ethylene
Glycol (MEG) Plant and a 180 KTPA Ethylene Recovery
Unit (ERU) under LSTK-1 Package.
• EPC contract from KOC for installation of New Strategic
Gas Export Pipelines, 48” diameter, spanning 145 km
from North Kuwait to Mina Al Ahmadi Refinery.
• Additional scope in existing contracts
Modular Fabrication
Projects Completed
• Launching of Hasbah II Tie-in Platform (TP-II) - the
heaviest Gas Platform in Saudi Aramco’s history.
• Supply of fabricated and modularised CCR, NHT, MHC
Heaters to JNK Korea for Dangote Oil Refining Company
Limited, Nigeria.
236
Construction of the world’s largest ethylene cracker (1.4 MMTPA) for Reliance Industries, Jamnagar, India
Orders Won
The business secured a breakthrough order from an
international customer for process and pipe-rack modules.
AdVENt
Orders Won
• EPCM contract for an ethanol production unit from the
off-gas of IOCL’s Panipat refinery
• Various projects from BASF Corporation, BHEL, Cairn
Oil & Gas, IOCL, Coromandel Fertilizers, Gujarat
Chemical Port Terminal Company Limited, ONGC, SKI
Carbon Black, Gujarat Alkalies and Chemicals Limited
and others
Significant Initiatives
The business has a vision: to ‘Revolutionize the
Hydrocarbon Industry’ and a mission of ‘Execution Par
Excellence’.
The Company lays continued emphasis on sharper
bidding to enhance its market share and execute projects
within time and cost to protect bid margins. The business
continued its journey with its Operational Excellence
initiative, which aims to achieve refined cost structures,
align operations for timely project deliveries and optimize
fund deployment. This initiative has yielded results for the
Company, reflecting in enhanced cost-competitiveness
in its bids and further improvement in its bottom-line for
projects under execution. The business has now embarked
on an initiative for cost-reduction through Design Value
Improvement.
Its capability-building initiative has led to significant
progress in terms of building portfolio and project
leadership as well as functional group development. This
initiative aims to build globally benchmarked project
leadership teams to execute large international projects
and develop and institutionalize an international project
capability development engine.
Through its Perspective Plan 2026, the Company lays
strategic thrust on new business segments like Offshore
Wind Energy and is gearing up for emerging Waste-to-
Value projects.
Digitalisation
The Company is geared towards introducing and
implementing innovative practices and has adopted digital
technology for global delivery.
The Company is enhancing its current practices through
digital / new-age technological advances including
Integrated Project Management System (IPMS). The
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MANAGEMENT DISCUSSION AND ANALYSIS HYDROCARBON BUSINESS ANNUAL REPORT 2018-19
Laying of 36” x 67 km-long natural gas pipeline from Anjar to Mundra in Gujarat
for Gujarat State Petronet Limited on EPC basis
Load-out of BSE-11A Topside for Bassein Development 3 Well
Platform & Pipeline Project of ONGC from Modular Fabrication
Facility at Hazira, India
business has also launched digital fabrication and
construction initiatives in order to improve productivity.
Environment, Health and Safety
Much emphasis is laid upon the Environment, Health,
Safety and Sustainability aspects of the Company. It
remains committed to achieving HSE excellence at the
workplace and beyond by continuously striving to improve,
protect and develop the health, safety and environmental
assets of its employees and stakeholders.
The business strongly believes that every incident is
preventable and is committed, through its ‘Zero Incident
Credo’, to providing a safe and healthy workplace. During
the year, the business delivered over 112 million safe man
hours at a stretch across a dozen successful projects both in
domestic and international markets. All the three Modular
Fabrication Facilities maintained a zero Lost Time Injury (LTI)
record for the financial year.
The Company drives HSE excellence across the EPC value
chain from engineering to commissioning of projects,
applied to all stakeholders by reinforcing a safe working
culture through various initiatives:
• HSE Assurance Audits were initiated and carried out for
all the verticals to ensure the effective implementation of
the HSE management system across the business.
• Theme-based campaigns were observed on World
Environment Day, Fire Service Week, L&T Safety Day,
Road Safety Week and National Safety Day to create
awareness and engage employee and contractors on HSE
aspects
• Conducting various HSE training programmes, mock
drills, near-miss incident reporting
The business received recognition of the safe practices by
way of following accolades:
• National Safety Council Award for the Lowest Accident
Frequency Rate in September 2018
• Safety Innovation Award 2018 for implementing
Innovative Safety Management Systems by the Institution
of Engineers (Delhi)
• Golden Peacock Environment Management Award
for 2018 for commitment towards Environment
Management
• Challenger’s Award – Mega Large Business in Engineering
Sector at the Sustainability 4.0 awards 2018 co-hosted by
Frost & Sullivan and the Energy and Resource Institute
• ASSE GCC HSE Excellence Platinum Award & Gold Award
for 2018 for Management of Driving Safety
238
Load-out of two mega Tie-in Platforms (7000 MT each) for Hasbah Field, Saudi Aramco from L&T Hydrocarbon Engineering’s Oman facility
As a responsible corporate citizen, the Company is
determined to continue operating in an environmentally
sustainable manner by preserving resources, mitigating
negative impacts and improving efficiency. The Company
received the Sustainability 4.0 Award 2018 under the
Challengers Category from Frost & Sullivan and TERI.
Human Resources
The business focuses on acquiring a unique and diverse
set of talented and passionate individuals. It has adopted
various policies and initiatives for the sustenance of healthy
employee relations, employee growth and development as
well as work satisfaction.
The organisation utilises state-of-art training infrastructure
and resources to develop the project management skills
as well as functional and leadership competencies of its
employees. It also nurtures and grooms talent.
The design and deployment of the GENIE Engagement
survey and the GPTW with the subsequent business-specific
and managerial level interventions undertaken and
communicated through the multiple forums of ‘IGNITE’ like
‘Town Hall’, webcast, video conferencing bears testimony
to the commitment to create a highly engaged work-force.
The Company inculcates a culture of appreciation through
various Reward & Recognition interventions. The ‘I-TOO’
recognition framework, initiatives like ICONS, Long Service
Awards, Talent Champions, Team Building Workshops,
non-monetary recognition events, etc., are periodically
undertaken to enhance the employee motivation.
Risks and Concerns
The major risks – such as impact of fluctuating oil
process, onerous contract terms by client, tight schedule,
counterparty risk, localization requirements, forex
exposure, vendor default, delay in material delivery,
QHSE, Productivity, etc. – are mitigated through specific
actions like operational excellence initiatives, alliances, cost
optimisation, improved customer intimacy, compliance
with stringent QHSE standards, proactive hedging, strong
contract and claims management and identification of key
personnel and talent at the pre-bid stage.
Localisation is increasingly becoming a key differentiator.
ADNOC is driving an In-Country Value (ICV) programme,
while Saudi Aramco is driving an In-Kingdom Total Value
Add (IKTVA) programme with the objective of growing and
diversifying their economies and creating opportunities
for their nationals in the private sector. The Company has
executed a Memorandum of Understanding with Saudi
Aramco for commitment to IKTVA with a Five Year Plan.
The South East Asian region continues to protect local
players under the ‘Bumiputra’ concept.
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MANAGEMENT DISCUSSION AND ANALYSIS HYDROCARBON BUSINESS ANNUAL REPORT 2018-19
Mangalore Aromatic Complex for ONGC-Mangalore Petrochemicals Limited, India
Proactive Risk Management is an integral part of the overall
governance process to identify, segregate, mitigate, control
and monitor various risks at all levels – business, prospect
and operational.
The Company’s risk management policy and guidelines
have enabled it to create a consistent set of standard tools
and templates, incorporating global best practices and
procedures. This enables the Company to build the ability
to anticipate challenges and opportunities in order to
achieve its strategic objectives.
Outlook
US oil production is expected to grow by around 1.2 million
barrels per day in 2019, and will be balanced by production
cuts by OPEC countries and their allies. Oil prices are
expected to be range-bound around USD 60 to 70 per
barrel during FY 2019-20.
India will be Asia’s fastest-growing economy in the next
four years i.e. 2019-23. Oil demand in India is growing at
CAGR of about 4.5%. The gas energy mix is expected to
shift from the current level of 6.5% to about 15% by 2022.
India is planning to double its annual gas production to 60
BCM by 2022. The Government of India is incentivizing
Enhanced Oil Recovery (EOR) projects. Also, India has an
ambitious plan to enhance its refining capacity from about
248 MMTPA to about 438 MMTPA by 2030.
The Indian Government is keen on India’s becoming a gas-
based economy. This will provide significant opportunities
for LNG import terminals and gas pipelines. India is the
fourth largest LNG importer in the world. LNG imports
into the country accounted for about one-fourth of total
gas demand, which is estimated to double over the next
five years. The Government of India aims to increase the
use of biofuels / alternative fuels to cut its oil import bill
by 10% by 2022 and plans to build 2-G ethanol plants
using agricultural residue. The Company is well poised to
undertake execution of these 2-G ethanol plants and is
gearing up for other Waste-to-Value projects. This serves as
a significant opportunity to the business in upcoming years.
During the year, 55 oil and gas exploration areas were
awarded under the first round of Open Acreage Licensing
Policy (OALP). The Government has auctioned an additional
14 blocks in the second round and 23 blocks in the third
round. ONGC is also planning to invest USD 3 billion to
explore ultra-deepwater fields in Cluster 3 on the east coast
of India. E&P activities are also picking up in Vietnam and
Myanmar.
Refinery capacity additions of about 17 MMTPA along
with petrochemical integration are planned in FY 2019-
20. Deregulation of fuel prices is encouraging overseas
companies to invest in retail and refinery projects. India’s
domestic polymer demand is growing at about 8.5% per
annum and India is currently the net importer of polymers.
240
Group Gathering Station-11 for RIL’s Coal Bed Methane
Field Development Project, Shahdol, Madhya Pradesh
Panoramic view of PTA Plant for JBF Industries, Mangalore
The widening demand- supply gap for petrochemicals,
coupled with enhanced returns for integrating
petrochemical complexes vis-à-vis standalone refinery, is
driving the integrated refinery and petrochemical complex
model.
There is increasing thrust on modularization to reduce site
presence. Modular Fabrication and AdVENT businesses
are aggressively exploring alternative product lines as well
as strategic partnerships to enhance yard utilisation and
provide integrated modular solutions.
In the international arena, GCC region and Algeria will
see higher outlays for gas, downstream and petrochemical
projects.
Saudi Aramco plans to invest over USD 140 Bn in oil,
gas and petrochemical projects over the next five to six
years. The UAE is planning a USD 36 Bn spend over the
next five years, with a focus on gas production. Kuwait is
also diversifying into the petrochemicals segment and has
announced a USD 115 Bn investment plan, roughly divided
equally between the upstream and downstream sectors.
Qatar is planning to invest to USD 5 Bn in the offshore
sector to increase its LNG Liquefaction Capacity to 100
MMTPA. These prospects will provide significant business
opportunities for the Company in the region.
Algeria has plans to invest about USD 55 Bn in the next
5 years. The recent breakthrough in Algeria will open up
significant opportunities for the Company to leverage its
modular fabrication capabilities.
Shale gas / oil will continue to drive petrochemical and
LNG liquefaction investments in the US, which will offer
opportunities for high value engineering and modular
fabrication services.
On the other hand, competition intensity is expected
to remain high with predatory pricing, especially by
competitors with large underutilised assets. Also, clients
are expecting EPC contractors to share the benefit of value
addition over the tenure of the project.
However, the business is confident of maintaining its credo
of being cost-competitive and ensuring on-time delivery
of large, critical and complex projects, worldwide. The
business will accomplish this by virtue of its customer
focus and responsiveness, sustenance of experienced and
highly skilled human resources, world-class Quality and
HSE practices, a culture of excellence, distinctiveness in
corporate governance, extensive IT-enabled processes,
digitalisation and state-of-the-art IT security practices.
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MANAGEMENT DISCUSSION AND ANALYSIS INFORMAtION tECHNOLOGY BUSINESS ANNUAL REPORT 2018-19
INFORMATION
TECHNOLOGY
BUSINESS
Overview:
Larsen & Toubro Infotech Ltd. (LTI) is a global
technology consulting and digital solutions company
helping more than 300 clients succeed in a
converging world. With operations in 30 countries,
it goes the extra mile to help clients accelerate their
digital transformation with LTI’s Mosaic platform
enabling their mobile, social, analytics, IoT and
cloud-based journeys. Founded 20 years ago as the
information technology arm of the Larsen & Toubro
group, LTI’s unique heritage gives it an unrivalled
real-world expertise to solve the most complex
challenges of enterprises across all industries. LTI
is headquartered in Mumbai and has a presence
across the globe, significantly in North America and
Europe.
Its clients comprise some of the world’s largest and
most well-known organisations, including over 65
of the 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 and
maintenance, enterprise solutions, infrastructure
management services and cyber security, testing,
analytics, AI and cognitive, enterprise integration
and mobility and platform based solutions.
242
LTI’s global headquarters in Powai, Mumbai,
To augment its digital capabilities, LTI announced
two acquisitions in FY19. In January 2019, it
acquired Ruletronics, a Pure-play Pega® consulting
and implementation company with offices in the
UK, USA and India. In February 2019, it acquired
Germany based NIELSEN+PARTNER (N+P), an
independent Temenos WealthSuite specialist. This
acquisition is synergistic to Syncordis acquisition
that LTI announced in 2017. Together with
Syncordis, N+P strengthens LTI’s capabilities as a
global expert in Temenos suite of products and
enriches offerings to Banking clients.
LTI is at an inflection point. It is right sized to
re-skill its employees with digital technologies
while having the resources of an established player
to invest in capabilities enhancement, which
would power its multi-year growth trajectory.
Business Environment
The global IT-BPM industry grew by 4.9% and the IT-BPM
market excluding hardware stood at USD 1.4 trillion in
FY 2018-19. Indian IT-BPM industry revenues excluding
hardware stood at USD 162 billion in FY19. The industry
added ~USD 11 billion in incremental revenues last year,
representing year-on-year growth of ~7% in USD terms.
IT-BPM export revenues for the industry for FY19 are
expected to reach USD 136 billion, a growth of 8.3% over
the past year. Domestic IT-BPM revenues are estimated at
R 1.5 trillion, a growth of 6.6% from R 1.4 trillion in FY18.
Mosaic Experience Center at LTI Headquarters, Mumbai
LTI’s state-of-the-art Delivery Centre in Johannesburg, South Africa
Digital revenues grew more than 30% to reach
USD 33 billion and now represents over one-fifth of the
IT industry revenue. Primarily there are six technologies
from the suite which are driving this phenomenal growth
– Intelligent Automation, Robotics, Cloud, IoT, Immersive
Media and Blockchain. In the age of digital technologies,
the IT industry has been adept at building the necessary
skills and capabilities to address new and changing
customer demands. Over the past few years, firms have
made substantial investments in building their portfolio of
capabilities around these technologies and have set up a
number of labs and Centres of Excellence to deliver digital
services to customers.
Technology-led operations is a big business driver for large
Banking and Financial services clients and the business is
also witnessing APIfication of the application landscape
to drive simplicity. In the Insurance sector, digital is driving
an unprecedented shift towards lower cost structures and
greater agility while focusing on enhancing the customer
experience.
In the manufacturing sector, especially in the automotive
space, the OEMs are re-evaluating their spend priorities
in the light of transformative changes based on the
convergences of disruptive forces including connectivity,
electrification and autonomy. These changes have provided
LTI opportunities in digital customer experience, increased
spending on analytics, platform for launch of mobility
services, etc. Given the volatility in commodity prices,
energy clients continue to evaluate their capital spend with
prudence to manage their profitability.
The advent of new technologies has flooded the
market with new players and blurred the lines between
Telecom, Media and Hi-Tech companies. Adding to
these complexities, consumers are moving towards new
digitalised sources for their content like voice command
devices, wearable devices, application based streaming, etc.
Amid all this technological change, media companies are
forced to re-imagine both their business models and their
systems to align to new market and digital realities.
Major Achievements
1. A leading payments company in the Nordic region
chose LTI as its primary IT partner post vendor
consolidation
2. A world leader in vertical transportation has chosen
LTI as its strategic partner for implementing Microsoft
Dynamics 365 as their core platform to transform their
services business in the areas of Sales, Call Centre and
Field Services
3. Selected by a global fintech company to provide agile
assurance support for building an industry leading
wealth management platform
4. A global life sciences major, a new client, has awarded
LTI a multi-year strategic deal for end- to-end SAP
support, maintenance, analytics and enhancement
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MANAGEMENT DISCUSSION AND ANALYSIS INFORMAtION tECHNOLOGY BUSINESS ANNUAL REPORT 2018-19
LTI’s Delivery Centre in Warsaw, Poland
Lobby area at LTI Headquarters, Mumbai
5. Awarded Cybersecurity project by a global energy giant
to implement, configure and integrate Micro Focus
ArcSight and Splunk Enterprise Security
in their digital transformation journey by being sharply
focused on their business outcomes. Some of the practices
used to attain this are:
6. Multi-year, multi-million dollar managed services deal
• Operate to transform- leveraging automation in everyday
across the globe for a world leader in the pharma space
operations and solving for the unstated needs
7. A US Insurance major has engaged LTI as strategic
IT partner for its largest technology modernization
programme using the Guidewire product suite
• Empowering clients to be data-driven organizations by
harnessing the power of analytics
• Helping clients experience transformation for their
8. A global financial services group headquartered in
customers and/or employees
Europe selected LTI to transform user experience across
their branches in Africa
9. Multi-year multi-million dollar deal in the area of
ERP, Data and Analytics with a global consumer and
pharmaceutical conglomerate
10. Selected as the strategic IT Partner by a global electric
manufacturing major for complete transformation of its
legacy IT systems globally
11. A global auto major selected LTI for a SAP security
engagement and to build an enterprise outreach
platform using Big Data Analytics and enterprise
integration that will cater to all the client’s recalls
Significant Initiatives
Client centricity is at the nucleus of LTI’s corporate
strategy. Customers are now more focused on their Digital
Transformation than ever before and LTI helps its clients
• Digitise the core by leveraging our real world know how
of the client’s industry domain
LTI is making significant investments in augmenting its
existing capabilities like Cloud services and Analytics,
incubating newer service lines like Blockchain and
Cybersecurity and expanding its portfolio of offerings
through acquisitions.
Recognizing LTI’s consistent ability to outperform
competitors across domains and services, the Company
topped the list of ‘Challengers’ in the Everest Group’s PEAK
MatrixTM Service Provider of the Year 2019, for the second
year in a row. The Challengers List includes companies with
revenues less than USD 2 billion.
Human Resources
LTI crossed the milestone of having more than 25,000
employees during FY19. Hiring, engaging, retaining talent
244
with gender diversity continues to be the major focus areas
for LTI. As a talent and innovation driven organisation, LTI’s
top priority is attracting the best people and investing to
further develop their highly specialized skills. Strengthening
the commitment to nurture the biggest asset - People, LTI
started an HR transformation initiative - Mission Ubuntu.
This initiative is steered by a cross-functional taskforce to
enhance every aspect of employees’ work-life through
policy intervention and process improvement. Mission
Ubuntu sketches an employee’s journey through LTI as a
nine-step process starting from his/ her onboarding.
LTI has also institutionalized five key beliefs across the
organization:
• Be agile • Go the extra mile • Push frontiers of innovation
• Keep learning • Solve for society
These five guiding principles have helped the employees to
be nimble towards changes, work beyond the call of duty
to serve its clients and innovate on a day-to-day basis to
transform the approach to work.
Risks and Concerns
Failure to align the services portfolio with newer and
in-demand technologies, may lead to lower operating
revenue. Evolving geo political and economic conditions
may affect the client’s business and/or the entity’s delivery.
This may impact the business opportunities and business
operations. Changes in immigration policies of countries
where LTI has significant business may affect ability to
position consultants at client locations.
With a majority of the revenue being foreign currency
denominated, the business carries translation and
transaction foreign exchange risks. However, expenses in
respective currencies provide a natural hedge.
Employees are the real assets for the IT industry. In order
to compete effectively, the ability of the business to attract
and retain qualified employees is critical. Attrition of
experienced and talented employees impacts organisational
knowledge and relationships.
Outlook
A healthy deal pipeline, continued large deal momentum
and uptick in digital services across all verticals gives a sense
of optimism for future growth. With deep-rooted industry
experience and one of the industry’s most dynamic teams,
LTI is well positioned to solidify its position as next-gen IT
services Company.
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MANAGEMENT DISCUSSION AND ANALYSIS TECHNOLOGY SERVICES BUSINESS ANNUAL REPORT 2018-19
TECHNOLOGY
SERVICES
BUSINESS
Overview:
L&T Technology Services Limited (LTTS) is a
leading global pure-play Engineering Research &
Development (ER&D) services company. It 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. LTTS
customer base includes over 50 Fortune 500
companies and 51 of the world’s top engineering
research and development (ER&D) companies,
across industrial products, transportation, telecom
& hi-tech, medical devices and the process
industries. The business also provides digital
engineering advisory services to some of the world’s
leading establishments. The key differentiators
for the business are its customer-centric industry
innovations, domain expertise and multi-vertical
presence spanning major industry segments.
Transportation
LTTS offers the complete gamut of engineering
services and solutions for its global customers in the
transportation industry, including OEMs and Tier 1
suppliers in the automotive, trucks & off-highway
vehicles and aerospace sectors. In the automotive
sector, LTTS helps its customers through advanced
technologies such as autonomous driving and electric
Mixed Reality and VR technologies create delightful immersive
experiences for industries ranging from transportation to smart homes
vehicles. In the aerospace sector, LTTS’s services cover
aerostructures, aero systems, aero engines and avionics.
Its digital offerings in this segment span in-flight
entertainment and connectivity, air traffic management
and drone-based solutions. LTTS also has over a decade
of domain expertise in enabling leading brands in the
trucks and off-highway segment. LTTS caters to customer
requirements through specialized state-of-the-art
research and test labs for power electronics, tear down
and smart manufacturing across its global delivery
centres.
Industrial Products
Through its extensive expertise in industrial products,
LTTS helps its OEM customers across building
automation, home and office products, energy, process
control and machinery. LTTS home-grown building
management solution, iBEMS, breaks the silos between
various systems in a facility and enables cost savings,
energy management and quicker decision- making by
using predictive analytics and real-time insights. LTTS
Industrial Products segment facilitates end-to-end
product development guidance, deep domain expertise
across software, electronics, connectivity, mechanical
engineering, industrial networking protocols, User
Interface/User Experience (UI/UX), test frameworks and
enterprise control solutions.
246
LTTS’ Healthcare practice helps OEMs develop sophisticated
medical devices at affordable costs
LTTS helps automotive firms harness the power of advanced telematics,
intersecting security, implementation ROIs, and end-user satisfaction
telecom and Hi-tech
LTTS has vast experience in product development,
digitalisation, user experience engineering and testing &
certification. LTTS offers its customers a one stop-solution
covering the gamut of services in product variant
development, 5G capabilities, simulation & automation,
and product and midlife support. LTTS Narrow Band IoT
(nBIoT) solution, ‘nBon’, was developed with low memory
and low power footprint. It provides thorough IoT device
management, enabling easy integration with custom target
platforms.
Process Industry
LTTS provides its services in E/EPCM (Engineering,
Procurement and Construction Management), 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 W.A.G.E.S. (water,
air, gas, electricity, and steam) management solution,
integrated with sensors and smart meters, implements
a Supervisory Control and Data Acquisition (SCADA)
system. LTTS has broad expertise in traditional EPCM and
operational maintenance projects, as well as contemporary
digital engineering enterprises. LTTS is furthering its
engineering footprint to include the digital sphere, and
is working with its customers across the globe on ‘Smart
Manufacturing’ technologies such as automation, IoT,
analytics and augmented reality (AR).
Medical Devices
LTTS helps medical device OEMs address industry
challenges, accelerate time-to-market and optimize costs,
leveraging its deep domain expertise and best-in-class
technological capabilities. It focuses on delivering solutions
in diagnostics, patient mobility services, musculoskeletal
services, life sciences, surgical services, cardiovascular,
home healthcare and general medical. LTTS has designed
and developed innovative products and solutions such
as the world’s first drug patch applicator, smart inhalers,
connected hospitals, integrated reusable vessel sealing
and surgical staplers for emerging markets, along with
the world’s first airway clearance system with Bluetooth
connectivity, among others.
Business Environment
According to NASSCOM, by FY2022, the global ER&D
spend will be on an upward trajectory and reach USD 2
trillion. Indian ER&D exports are projected to leap from USD
28 billion in FY2019 to USD 42 billion in 2022 – a CAGR of
14%. Within ER&D, the share of digital engineering is likely
to increase significantly. Zinnov estimates that corporations
spent USD 293 billion in 2018 on digital engineering, which
will grow to USD 667 billion by 2023.
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MANAGEMENT DISCUSSION AND ANALYSIS tECHNOLOGY SERVICES BUSINESS ANNUAL REPORT 2018-19
Headquartered at Knowledge City, Vadodara, L&T Technology Services helps clients gain the competitive edge by building smart products, enabling smart
manufacturing and offering smart services.
Increased industry focus on emerging technologies viz.
Artificial Intelligence (AI), Internet of Things (IoT), Machine
to Machine (M2M) communication, Augmented Reality
(AR) / Virtual Reality (VR), 5G, Cyber Security, Advanced
Robotics, Mobile Applications and Blockchain are finding
use-cases across verticals. This increased digital affinity from
the enterprises worldwide has resulted in business models
shifting to platforms, data monetization and go-to-market
strategies that stand out.
transportation: Autonomous vehicles, electric cars,
connected cars, ADAS, Factory 4.0 are some major trends
shaping the automotive industry. Predictive maintenance,
shop-floor automation, in-flight connectivity and digital
twins are driving growth in aerospace and defence. The
trucks and off-highway segment is benefitting from the
growing demand in construction, logistics, agriculture and
mining sectors.
Industrial Products: Major trends in this segment are
related to Industry 4.0 such as smart manufacturing,
robotics, artificial intelligence and the Internet of Things
(IoT). Significant investments are being made in product
simulation, predictive asset management, factory & plant
automation, cloud computing, smart sensors and 3D
printing.
telecom & Hi-tech: In Telecom, 5G, virtualization of
functions as well as robotic process automation are the
primary trends. Customer engagement and monetization
have become more effective, leveraging AI, ML and
data analytics. The consumer electronics segment has
experienced faster time-to-market driven by connected and
smart devices, data monetization and open source systems.
The semiconductor space is being driven by connected
chips and integrated API platforms while in media and
entertainment, OTT platforms & services, AI / ML- based
content recommendations and targeted advertising are the
major trends.
Process Industry: The need to ascertain cost-optimization
in plants is a major element that is driving the expansion of
asset management in manufacturing. The need to ensure
prevention of potential asset failures and precautionary
measures is expected to motivate the development of
this market. Moreover, plant digitalisation and cloud-
based asset management are enhancing overall safety,
productivity and compliance.
Medical Devices: This segment is expected to be driven
by preventive healthcare leveraging increasing adoption
of technologically advanced smart wearables and
real-time monitoring. The rising need for early diagnosis
and prevention of diseases and compliance to stricter
regulatory environments are key priorities for medical
devices OEMs.
248
Industrial Digitalization creates enormous opportunities for companies
to increase customer value through streamlining processes
Predictive analytics solutions foster real time machinery condition monitoring for
manufacturers
Major Achievements
transportation
• Secured multimillion-dollar deals, with two leading
automotive manufacturers, in the space of HIL simulation
and autonomous validation and infotainment assessment
respectively
• Deployed several cutting-edge technologies for PMA
(Part Manufacturing Approval), digital innovation and
recognition for aircrafts, advanced rail signalling design
and RAMS and special purpose text fixture design
• Implemented several of its homegrown offerings in
transportation domain such as its cognitive AI framework
AiKno™ in MRO and after-market activities, its
application solution for shop floor material tracking and
asset management and its flight infotainment services
and response improvement solution
Industrial Products
• Won a major deal with the world’s leading software
company for ‘smart building’ consultancy
• Signed a multi-year contract to provide digital content
management services for a reputed technology
company’s industrial products segment
• Won a landmark project to be the ER&D partner for a US
Industrial Automation major and a large deal in smart
manufacturing for a leading automotive major in the US.
• Facilitated major innovations for the electrical vehicles
market such as a high-efficiency DC to DC convertor and
on-board charger and environmental cleaning solutions
for the marine industry to facilitate emission reduction
• Helped various global customers in mining and discrete
manufacturing with machine automation
telecom and Hi-tech
• Awarded a network deployment automation project by a
leading telecom customer
• Setup a 5G lab for designing and building future ready
solutions for a leading semi-conductor company in the
US
• Involved in the development of the new-age
smartphones capabilities for two top-tier OEMs
• Developed a next-gen digital signage solution called
FlyBoard
• Created an in-house OTT solution framework
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MANAGEMENT DISCUSSION AND ANALYSIS tECHNOLOGY SERVICES BUSINESS ANNUAL REPORT 2018-19
Design Thinking Studio at LTTS’ Bangalore campus
• Developed Iron Home, a next-gen smart home security
platform
Process Industry
• Won a multimillion-dollar digitalisation project from
ExxonMobil in April 2018
• Signed a high-value deal with a multi-national chemical
company for a digital engineering project, which is one
of the largest in this domain
• Won a large deal with one of the biggest tyre
manufacturers
• Expanded footprint in Europe with two large deals – one
involving development of high-end capabilities for a
customer in the beverage and brewery industry and
another deal to execute an EPCM order for a greenfield
project with a German chemical major
• Currently executing a multi-year deal with Covestro to
implement digitalisation-based engineering programmes
across their 8 global locations
• Delivered customised digital solutions for a brewery
major in North America for the first time and executed 6
pilot projects that are currently being scaled-up globally
250
Medical Devices
• Expanded footprint in Japan by signing large deals with 4
customers in medical devices, electromedical equipment
and medical kit products
• Secured a deal with a global pharmaceutical company for
developing a mobile platform for diabetic therapy
• Assisted a leading medical equipment manufacturer by
enhancing the reliability of their slide-maker strainer
equipment
• Partnered with a leading in-vitro diagnostics company
to launch an efficient automated blood cell counter for
price-sensitive, small and medium sized labs
• Developed a cybersecurity framework for medical devices
to complement its solutions for Internet of Medical
Things to facilitate secured connectivity and monitoring
of medical devices
Significant Initiatives
The business aspires to continue being a global leader in
the ER&D segment. LTTS has undertaken several significant
initiatives to achieve this objective. These initiatives include:
IP and Solutioning
To capitalize on the disruptions and current digitalisation
wave, the business is investing in building new age
Solar connectivity drone capable of maintaining a continuous flying time of 12 months enables low cost mass connectivity to rural areas
solutions and technology platforms. In FY19, LTTS was able
to scale-up its portfolio of platforms and solutions, as well
as incubate new ones to address requirements in emerging
areas.
There was a significant jump in the number of pilots and
POCs that were done by LTTS around these platforms for
customers. Some interesting and challenging assignments
executed include:
• Sensorising and connecting oil tanks of an oil major to
monitor oil level in tanks. Sensorisation and connectivity
are two big challenges and LTTS established this
framework using its own IOT platform.
• Working with a leading data-centre services provider to
implement predictive maintenance solutions that ensure
uptime of the utilities infrastructure.
• Partnering for a complete NB IOT Modem SoC with
a company building solutions for utilities and energy
industry. This meant an integration of LTTS NB IOT IP with
the partner’s RF IP.
Mergers and Acquisitions
LTTS acquired Bengaluru-based Graphene Semiconductors
to strengthen its offshore presence and deepen its expertise
in VLSI chip design and embedded software. Graphene
complements the strategic acquisition of US-based Esencia
Technologies in 2017 and will act as a force multiplier to
enhance the business’s capabilities in the semiconductor
and product OEM space.
Expanding International Presence
The business has established design centres and centres of
excellences across the globe. It has inaugurated its Digital
Engineering Centre in Gothenburg, Sweden. Located in the
Lindholm Science Park, the Centre will act as a near-shore
development facility for customers in the region, providing
proximity and support to their agile transformation
initiatives. The business has also opened branches in
Malaysia and South Africa and has initiated processes to
establish a presence in China and Saudi Arabia in the next
financial year.
Awards and Recognitions
Several global customers, reputed industry forums, global
consultancies and media publications recognised the
business in the highest echelons of engineering services
innovators for its innovative products and solutions.
Organisational Awards
• Recognized as the ‘Best Company of the Year’, and was
also conferred the prestigious ‘Excellence in Corporate
Social Responsibility’ award by the Indo-American
Chamber of Commerce (IACC)
251
MANAGEMENT DISCUSSION AND ANALYSIS tECHNOLOGY SERVICES BUSINESS ANNUAL REPORT 2018-19
An engineer wearing a mixed reality headset that helps solve contemporary business
problems
LTTS has patented multi-voltage booster technology for a
welding power source
• Awarded the HR Department of the Year distinction 2018
at the Delaware Valley Awards by the Rosen Group
technology Awards
• The AiKno™ framework was selected as one of the
Top 50 use cases in the NASSCOM Artificial Intelligence
Game Changer Awards 2018
• Honoured with the 2018 IoT Platforms Leadership Award
by IoT Evolution , a US-based technology publication, for
their IoT-powered Condition-Based Monitoring Solution
‘Integrated MCare’ powered by the Company’s IoT
platform UBIQWeise2.0™
Research and Analysts Awards
• Positioned in the ‘Leadership Zone’ in the broadcasting
vertical of the Zinnov Zones 2018 Media & Entertainment
Services Report
• Recognized as a ‘Leader’ for Embedded System
Engineering Services and positioned among the top 3
leading companies by the Everest Group
• Rated as a Leader in 6 market categories across 3
industries in the US market in the inaugural edition of
ISG Provider Lens™
• Acknowledged as a Leader in IoT Technology & Services
by Zinnov across 12 unique expertise areas as compared
to 7 in 2017
Environment, Health and Safety
At LTTS, it is a constant endeavour to extend sustainable
and eco-friendly processes, services and solutions that
contribute to sustainability throughout their life cycle.
Facilities created within the premises have adequate green
spaces and tree cover.
LTTS constantly works on health, safety and providing
an environment conducive to well-being. Since many
of the employees work at client locations in factories
for deployment of projects, they have been trained on
‘Zero Harm’ to ensure their safety and foster continuous
improvement.
Human Resources
The Company’s HR policies have strongly focussed on
creating a culture of excellence and achievement. Abiding
by the People, Process and Portals parameters, the business
is striving towards making the employees at all levels an
integral part of the decision-making system. There has been
an enhancement of skills, efforts and achievements and
employee satisfaction levels through various initiatives like:
• WIZneers, an internal platform to create a community
of technology architects within the Company. Under
this initiative, employees come together every fortnight
to discuss and ideate on next-gen technology trends in
the engineering services space like Blockchain, Artificial
Intelligence and Machine Vision among others
252
Providing insights into products and equipment health through Augmented Reality
• Just Code, a hackathon, aimed at offering employees an
opportunity to plunge into an idea and convert it into a
product
• Illuminate, a programme which aims to leverage internal
talent and create a pool of high potentials who can be
moved across functions and to groom high potential
candidates to take up higher roles and responsibilities
• LEAD, a programme designed to help senior employees
start their development journey as leaders
• ALP (Accelerating Leadership Potential), an initiative
for refining the leadership skills of leaders have already
acquired, and for developing those essential for the
greater responsibilities ahead
Risks and Concerns
Economic slowdown in key geographies or cyclical
downturns in key segments could materially affect the
revenue growth and profitability. Changing immigration
laws and policies can impact the Company’s ability to
provide services to customers. Exchange rate fluctuations
could materially impact the results of operations.
Outlook
An interplay of digital and ER&D with increased industry
focus on emerging technologies including Artificial
Intelligence (AI), Internet of Things (IoT), Machine to
Machine (M2M) communication, Augmented Reality (AR) /
Virtual Reality (VR), 5G, Cyber Security, Advanced Robotics,
Mobile Applications and Blockchain are finding use-cases
across verticals and are enabling companies to discover
new revenue streams, while strengthening existing ones
and serving the customers with much higher operational
efficiency.
Essentially, the growth in the ER&D ecosystem will be
driven by a convergence of emerging technologies and
business model innovations, along with the growth
of technology enterprises and start-ups constituting a
dynamic global engineering ecosystem. This will be in an
environment replete with strict data protection directives,
increasing instances of cyber terrorism and the rising need
for cloud-based cybersecurity solutions among enterprises.
LTTS aspires towards industry-leading, innovation-led
profitable growth.
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MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL SERVICES BUSINESS ANNUAL REPORT 2018-19
FINANCIAL
SERVICES
BUSINESS
Overview:
L&T Finance Holdings (LTFH) 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. L&T
Finance Holdings Ltd. is a NSE and BSE listed
company and is also registered with RBI as an NBFC
and a Core Investment Company (CIC). It conducts
its financial services businesses through various
subsidiaries. L&T Financial Services (LTFS) is the
brand name of L&T Finance Holdings Ltd.
Functionally, the structure of the Financial Services
business is as follows:
• Rural Finance comprising Farm Equipment
Finance, Two-wheeler Finance and Micro Loans
• Wholesale Finance comprising Infrastructure
Finance, Structured Corporate Finance and Debt
& Capital Market
• Housing Finance comprising Home Loans & LAP
and Real Estate Finance
• Mutual Funds
• Wealth Management
254
Farm Equipment Finance
Business Environment
India’s GDP is estimated to have grown by 7% in FY
2018-19 on the back of lower growth in agriculture and
mining sectors, lower Government spending on public
administration and weaknesses in domestic and external
demand conditions. However, the gross fixed capital
formation rate improved from 31.4% in FY18 to 32.3%
in FY19, reflecting a good pick up in investment spending,
and bodes well for the financial services industry.
The Indian economy faced a slew of challenges
around mid-FY19 from the external front triggered
by a sharp increase in global Brent price, which led to
a sharp depreciation in the Rupee, along with other
emerging market currencies. Around the same time,
the debt defaults by the IL&FS group triggered a crisis
of confidence for the NBFC sector – a critical source of
finance for the real estate sector. The AAA rated NBFCs
with a strong promoter and shareholder backing and
proactive economic intelligence and risk management
units withstood volatile market conditions without hurting
core operations – L&T Finance being one of them.
During the year, the various segments of business
performed under the stated business environment:
Farm equipment finance growth was led by record growth
in the tractor industry. Increased urbanisation, sustained
Two-wheeler finance
Providing micro-loans to small-scale entrepreneurs
focus on road infrastructure development and increasing
fuel prices pushed consumers towards two-wheelers
during the year, resulting in an increase in two-wheeler
finance. Increase in micro loans on the back of increasing
penetration in existing geographies and opening of new
geographies.
In the Wholesale Finance segment, the disbursements
were focused on Infrastructure Financing, especially
in Renewables and Roads and kept in line with the
opportunities available for Sell-down. This enabled the
Company to maintain the wholesale book around the
same level and move towards increased retailisation of the
balance sheet.
Disbursement registered a growth in home loans while
de-growth in the Real Estate sector. The real estate sector
stabilised based on the implementation of regulatory
frameworks (RERA, GST reforms) leading to price
stabilisation.
FY19 remained a challenging year for the Wealth
Management industry. Market volatility coupled with a
reduction in MF fees on account of regulatory measures
impacted the business in the short term.
Significant Initiatives
FY19 has been a landmark year for the business, marked
by the effective execution of the strategy put in place. The
specific focus for the year was on the following areas:
a) Improved competitive position across all products
Being in the ‘Right Businesses’ forms an important
part of the strategy, in which 5 core businesses were
identified by the Company. The core businesses were
identified based on a 3-filtered approach – industry
attractiveness, company profitability and our ability to
extract value from it.
b) Established fees as a second line of income to
counter interest rate cycle
As a hedge against interest rate cycles, the Company
has established ‘fees’ as a second line of income. Fee
income generation happens through various modes
such as processing fees, subvention income, cross
selling income, advisory fees and underwriting fees
among others.
c) Increased ‘Retailisation’ of balance sheet
The Company is focusing on building a well-diversified
book. Strong sell-down capabilities have helped the
Company to limit the wholesale book growth without
slowing down the business.
d) Digital initiatives and data analytics used to
unlock RoE
In the field of digital and data analytics, the Company
primarily concentrates on optimising credit cost,
collection cost and productivity rather than just focusing
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MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL SERVICES BUSINESS ANNUAL REPORT 2018-19
Housing Finance
Real Estate Finance
on more commonly talked about areas like cross-selling
or customer acquisition. The Company believes in using
the power of data to provide a strategic competitive
advantage, improve productivity and enhance
performance.
e) Strengthening balance sheet with improved asset
quality, increase in provision coverage ratio (PCR)
and maintaining macro-prudential provisions
We believe that true greatness is achieved by a
Company only by having a low Sigma, which means
minimising the variability of returns, along with
earnings and growth. A strong risk management
framework, improving portfolio quality and
continuously improving PCR are important contributors
to achieve a low Sigma.
f) Robust ALM Framework
The Company is comfortably placed with respect to
both liquidity and interest rate risks, due to its robust
ALM and strong risk management framework. The
Company enjoys positive gaps in both Structural
Liquidity and Interest Rate Sensitivity. In addition to this,
a positive gap was maintained consistently even under
‘1 in 10’ stress scenario in the 1-month bucket.
Major Achievements
LTFH increased its market share in Farm Equipment
Finance from 12.5% to 14% in FY19. Through rigorous
execution of digital propositions on the ground and domain
expertise, LTFH has been able to increase its market share
in Two-Wheeler Finance from 8.2% to 11%. With the
implementation of 100% automated credit decision, LTFH
has been able to improve collection efficiencies and reduce
NPAs. With this clear strategy in place, LTFH has enhanced
the disbursements in Farm Equipment and Two-Wheeler
Finance by 19% and 67% respectively. Similarly, the Farm
Equipment and Two-Wheeler Finance book has grown by
27% and 68% respectively through increased penetration
in the identified branches.
In Micro Loans, LTFH has been able to increase
disbursements by 51% and book by 60% during the year.
This was on the back of increasing penetration in existing
geographies and opening of new geographies in existing
states and new states such as Jharkhand and Tripura.
New states entered in the previous year and this year have
contributed 28% to the business during the last quarter.
An increase in business has been achieved with improved
collection efforts and a reduction in debtors YOY. This has
resulted in regular collection efficiency being brought back
to pre-demonetisation levels.
256
Wholesale Finance
A wide range of Mutual Funds to suit every investment need
With tightening of liquidity, the business saw lower growth
in the Order Book for Infrastructure Financing and a decline
in the Asset Book for Structured Corporate Finance. During
the year, the Company started building a Government
Securities (G-Sec) book which will also act as a low-cost
liquidity reservoir in adverse market conditions.
The Company focuses on the Home Loan market with an
emphasis on direct sourcing of salaried customers through
developer relations and an analytics led sourcing model.
Our digital lending model of paperless sanction of home
loans to salaried customers is a unique offering that has
helped in quick turnaround of proposals. During the NBFC
crisis in FY19, the Company has continued to support real
estate projects funded by us, while selectively sourcing
new business. In the Mutual Fund business, the AUM of
the Company increased by 13% to R 69,689 crore during
FY19 as against R 61,603 crore in FY18. The Wealth
management business increased its focus on Dubai, where
the yield on the assets is higher and serves as a natural
hedge to the India business.
Human Resources
In its journey to create value sustainably by delivering
top quartile ROE, the Human Resources function of L&T
Financial Services has ensured that employees at all levels
are aligned to this objective through effective performance
management and a two-way communication processes.
Our culture of ‘results and not reasons’ is instrumental in
driving accountability and clarity across the organisation.
The focus is to simultaneously build the capability of
employees so that they can be held accountable. Building
capability of employees will enable the organisation to
achieve sustainable and long-lasting success.
Environment, Health and Safety
LTFH aligns its social responsibility theme and commitment
with the United Nation’s global development agenda of
Sustainable Development Goals (SDG). The core areas
of Integrated Water Resource Management (IWRM)
and Digital Financial Inclusion are designed to ensure
sustainable livelihood opportunities with the intent to
bring the deserving but vulnerable population into the
mainstream economy. IWRM programme engages with
the communities and more specifically farmers and
implement interventions which address their core needs
in water and soil health management. Climate change is
leading to increasing incidents of natural disasters in India.
The business supports disaster recovery efforts through
a number of practical methods. These include prompt
affected area assessments and a provision for immediate
relief. The business considers safety as an integral part of its
business operations and due importance has been given to
maintaining safety standards.
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MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL SERVICES BUSINESS ANNUAL REPORT 2018-19
Wealth Management
LTFS’ ‘Digital Sakhi’ programme aims at digital financial inclusion
of rural women
Risks and Concerns
Restrictive regulatory prescriptions for the NBFC sector
not accompanied with the reforms of the long-term bond
market may adversely impact the profitability of a set of
mid-sized NBFCs and HFCs (housing finance companies)
with possible negative implications for India’s financial
sector’s stability.
However, with the help of in-depth business knowledge
and strong managerial capabilities, deep market
penetration, risk mitigation through various market and
credit checks, robust early warning systems, extensive use
of analytics and best in class turnaround time proposition,
the business is confident of managing the hazards of
adverse business conditions.
At this juncture, there are several uncertainties that cloud
India’s growth outlook and macroeconomic stability during
FY20. The investment spend may get impacted due to
faltering growth impacting India’s trade balance, political
uncertainties due to upcoming general elections, in case of
Brent crude price resurging, fiscal slippages, etc.
Outlook
Several global forecasters including the International
Monetary Fund have lowered their projections for global
economic growth in 2019 from a year earlier on the back
of ongoing trade frictions, tightening of financial conditions
and the Brexit related uncertainties. Global slowdown, tight
financial conditions and political uncertainty in the election
year may impact India’s GDP growth during FY20. Past
experience shows that India’s growth mix remains skewed
towards consumption and away from investment during
the General Election year. Financial markets and capital
inflows too may witness heightened volatility during FY20.
Moreover, the new political regime is likely to follow fiscal
prudence in H2, FY20, which may adversely impact public
investments and growth in the latter part of the year.
On the positive side, retail (CPI) inflation is projected
by Reserve Bank of India (RBI) to remain below 4% up
to December, 2019. This should enable the Monetary
Policy Committee of RBI to implement an easy monetary
policy during a major part of FY20. Additionally, the RBI’s
continued purchase of Government bonds (open market
operations), recent recapitalisation of Public Sector Banks
(PSBs), release of five PSBs from the Prompt Corrective
Action Framework (PCA) and the ongoing resolution of
chronic stressed asset cases through IBC should remain
supportive of the lending environment.
258
DEVELOPMENT
PROJECTS
BUSINESS
The Development Projects business segment comprises:
a) Infrastructure projects executed through its joint
venture company L&T Infrastructure development
projects 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) Katupalli port under its subsidiary Marine
Infrastructure Developer Private limited was divested
in Q1 of FY 18-19
The operations of the Development 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.
765 kV DC Kudgi Transmission Line project
L&t INFRAStRUtURE
DEVELOPMENt PROJECtS
LIMItED (L&t IDPL)
Overview:
L&T Infrastructure Development Projects Limited
(L&T IDPL) is a pioneer of the Public-Private-
Partnership (PPP) model of development in India,
which involves the development of infrastructure
projects by private sector players in partnership
with the Central and State Governments. Since its
inception in 2001, the Company has completed
landmark infrastructure projects across key
sectors like roads, bridges, transmission lines,
ports, airports, renewable energy and urban
infrastructure. It is one of India’s largest road
developers, as measured by lane kilometers under
concession agreements signed with Union and
State Government authorities.
Currently its portfolio includes 10 operational road
projects covering 4434 lane km and transmission
lines at Kudgi, Karnataka covering 482 kms.
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MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENt PROJECtS BUSINESS ANNUAL REPORT 2018-19
Vadodara Bharuch Toll Plaza
Two decades of extensive experience in working
with Governments, multi-lateral agencies,
international and domestic financial institutions
and corporate entities has helped the Company
to develop proven competencies in Viability
Assessment, Financial Closure, Project Management,
Operations & Maintenance and Portfolio
Management of Infrastructure Assets across various
sectors.
The Canada Pension Plan Investment Board (CPPIB)
made substantial financial investments in L&T IDPL
in two investment tranches during 2014-15. This
is the first direct private investment by the largest
Canadian pension fund into an Indian Infrastructure
Development company.
Business Environment
transportation Sector
The Government of India has provided a strong thrust to
the Infrastructure sector and specifically to the highway
sector, in the last Union Budget. The ambitious Bharatmala
Programme has been approved for providing seamless
connectivity to develop about 35000 km in Phase-I at an
estimated cost of R 5,35,000 crore. A significant slice of
these projects is expected to be bid out under the Hybrid
Annuity Model (HAM), which would be of interest to the
company.
260
transmission Lines
After the Kudgi transmission line in Karnataka, the
company participated in two new bids.
There is substantial opportunity in new transmission lines
coming up since generating capacity is increasing, especially
from renewable sources. The National Committee has fast-
tracked power evacuation system for the green corridor
for renewable energy in Gujarat and Rajasthan. Business
opportunities in transmission lines of approximately
R 30000 crore are also available from system strengthening
of networks and power evacuation from generators to the
grid. Based on the National Committee’s recommendation,
currently REC and PFC have come out with 9 bids for
transmission lines under the ‘Green Corridor’ programme.
Furthermore, 3 bids have been cleared by the National
Committee for Tamil Nadu, Karnataka and Andhra Pradesh.
Major Developments
toll Collections and Operations
The total gross income from toll collections in 10 toll road
subsidiaries (excluding the five subsidiaries transferred to
InvIT) moved up by 23% over the previous financial year.
This includes both traffic growth and annual revision of
tariff.
In NHAI projects managed by the Company (including InvIT
projects), gross income from toll collections increased by
An elevated road corridor decongests the bustling metropolis of Nashik
12% while Electronic Toll Collection (FASTag) increased by
66% over the previous period. Currently, over a quarter
of all tolls are being collected under FASTag electronic toll
collection.
Kudgi transmission Line
The project faced a force majeure event in May 2018 when
5 of the 1162 towers collapsed due to unprecedented
strong winds at Bannigola village in Karnataka. No one
was injured during the event. The in-house team restored
the towers and ensured power flow in a record time of 33
days. Except for this one-off situation, the project continues
to perform well.
Major Achievements
During the year 2018-19, L&T IDPL monetized 5 of its road
operational projects by selling its stake to an Infrastructure
Investment Trust (IndInfravit Trust) set up by the Company
as a sponsor. The said Trust was successfully listed with an
issuance of units aggregating to R 3700 crore, of which
15% is held by the Company. The other large investors
of this first privately placed Trust are pension funds from
Canada (CPPIB and OMERS holding approx. 30% and
22% of the units, respectively) and Allianz Capital Partners,
Germany, a large global insurance group, holding 25%.
One of the road subsidiaries received a favourable
arbitration award from the Arbitration Tribunal for a
change of scope claim. In another subsidiary, a settlement
agreement was reached with NHAI on a project terminated
in 2016, thereby relieving the lenders of a stressed asset.
Significant Initiatives
International investment for Indian infrastructure assets was
attracted through the Company- sponsored Infrastructure
Investment Trust InVIT - the first on a private placement
basis.
Asset Monitoring Systems for structures and highways
of operating projects is underway, which will help in
inventorying and monitoring of assets.
Project LEAP, a business process re-engineering exercise,
was completed during the year
Digitalisation
• Rapid increase in FASTag electronic toll collection was
made possible by streamlining our digital equipment
at toll plazas. This has led to faster throughput of
vehicles at toll plazas and reduced queues. It has also
led to a less-cash operation. The Company has worked
collaboratively with NHAI and other stakeholders to
minimize reconciliation issues in FASTag collections.
• Highway route operation, maintenance and equipment
function has been mobile enabled.
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MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENt PROJECtS BUSINESS ANNUAL REPORT 2018-19
Rajkot-Jamnagar Highway
• A dashboard using Tableau software called ’Revenue
Assurance Dashboard’, conceptualised by PwC and
developed with the internal IT team, has been rolled out
and used by SPV managers.
• To monitor the FASTag traffic/revenue, the data is being
pulled through API from the acquiring bank and the
process is fully automated.
Environment, Health and Safety
The Company and its subsidiaries are committed to
providing a safe and healthy workplace for their employees
and stakeholders and to conserving the environment. EHS is
one of the essential pillars of a good and robust corporate
governance structure.
To achieve the Company’s stated EHS objectives, the
following key initiatives have been implemented.
• 31 Standard Operating Procedures (SOPs) have been
formulated to:
n define individual responsibilities and procedures
relating to environmental, health and safety matters
n incorporate EHS considerations in all business processes
• Digitisation of the records and review all accidents,
occupational health and safety related incidents by
262
adopting a system called Route Operations Management
System (ROMS) and reporting immediately to the
concerned project head and functional head in the form
of Preliminary Accident Information Report (PAIR) and
Final Accident Information Report (FAIR).
• Monitoring to ensure that the employees avail of the
medical check-up facility for themselves and their
families.
The Company’s Interstate Road Corridor SPV received the
Silver Award for Excellence in Highway Safety from the
Ministry of Road Transport and Highways.
Human Resources
Employees are the backbone of the organisation. The
HR Team concentrates on certain key areas, including
recruitment of some of the best talent in the market
and keeping them engaged by providing access to
learning opportunities, Development Centres, challenging
business assignments, and individual need-based specific
development interventions.
The Development Centre is a systematic and objective
method to measure competence to provide insights into
the strengths and development areas of individuals.
Employees attended a fair mix of training on technical and
behavioural programmes during the period in review.
A section of the Hyderabad Metro
Outlook
L&T IDPL would constantly evaluate new opportunities with
worthwhile returns. The business sees major opportunities
in the transmission line sector and also the roads sector
under the Hybrid Annuity Model. The InvIT is expected to
look at the secondary market for operational and revenue
generating projects.
L&t MEtRO RAIL (HYDERABAD)
LIMItED
Overview:
L&T Metro Rail (Hyderabad) Limited (L&TMRHL),
incorporated in August 2010, is a special purpose
vehicle to undertake, construct, operate and
maintain the Metro Rail System, including Transit
Oriented Development (TOD), in Hyderabad under
Public Private Partnership model on a Design, Build,
Finance, Operate and Transfer (DBFOT) basis. It is
the largest TOD in India and the world’s largest
PPP project in the urban transportation sector. The
Company entered into a Concession Agreement
with the erstwhile Government of Andhra Pradesh
on 04.09.2010.
The Metro Rail system is in Phase I, which includes
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. This entire distance
is further sub-divided into 6 stages for ease of
implementation.
The concession period of the project is 35 years
from the appointed date of July 5, 2012, and
includes the initial construction period of 5 years.
The concession period is extendable for a further
period of 25 years subject to the fulfilment of
certain conditions by the L&TMRHL as set out in the
Concession Agreement.
The Concession Agreement includes rights for Real
Estate development of 18.5 million sq. ft., with
strategically located land parcels interspersed at
prime city locations, adjoining metro stations and
metro corridors.
The Company has tied up the entire debt for the
project, which includes the cost of the rail system,
and 6 million sq. ft. TOD, and achieved financial
closure on 1st March 2011.
The progress of the project as of March 2019 is as
follows: -
• Stage 1, 2 and 3 were operationalized in
November 2017 itself. Commercial operations of
16 km (from Ameerpet to LB Nagar) of Stage 5
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MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENt PROJECtS BUSINESS ANNUAL REPORT 2018-19
India’s longest extra-dosed, cable stayed bridge over the Narmada, Gujarat
and 10 km in Stage 4/1 (from Ameerpet to Hi-Tec
City) were inaugurated by the Hon’ble Governor
on September 24, 2018 and March 20, 2019
respectively.
• Received time extension from Government for
achieving final COD by December 31, 2019.
Accordingly, the lenders have also accorded
sanction of extension of time for COD up to two
years i.e., up to July 2019, with corresponding
increase in loan period.
• Construction work in remaining part of Stage 4
(Hi-Tec City to Raidurg) in Corridor 3 and stage
6 (JBS to MGBS) forming part of Corridor 2 are
proceeding at a brisk pace, and is expected to
commence commercial operations during first half
of the FY 2019-20.
• The TOD Project at Errum Manzil Mall (0.35
million sq. ft.) commenced commercial
operations from August 2018. Musarambagh
mall (0.24 million sq. ft.) is expected to
commence commercial operations in April 2019.
Construction work (0.5 million sq. ft. of office
space) at Raidurg Site is underway.
Business Environment
About 10 million transport trips are performed every day
in Hyderabad city, and a major share is undertaken by bus
264
transport (50%). The city’s roads are congested with 8%
road area, and traffic proceeds at the very low average
speed of about 12 kmph. The Company is poised to
provide safe and punctual travel and has been working on
various value-added initiatives to minimize the commuters’
pain points, such as last-mile connectivity, digital ticketing,
mobile apps, etc., which ensures higher ridership to the
metro system.
Establishing successful last-mile connectivity is a challenge
and discussions with the Government are in progress to
intensify steps to this end.
Significant Initiatives
• The Company is exploring various non-fare revenue
generating options, viz.:
u Leasing out space for erecting mobile towers
u Skywalks connecting to malls and metros
u Tie up with cab operators
u Leasing out optical fibre spare capacity
u Training metro staff with the existing infrastructure
u Consultancy services for other metros
u Focus on improving advertising income
Coimbatore Bypass Road
International Sea Port at Haldia
• Re-negotiate and amicably settle claims of contractors.
• Working on favourable resolution of the waiver of arrears
of power charges, sub-lease, security, compensation for
delays and scope change, concession period extension
and other issues pending with the State Government.
seamless, accurate and up-to-date accounting has been
facilitated.
• An initiative to digitalise information regarding Bank
Guarantees has been undertaken to synchronize
information across the company in a centralized manner.
• Discussions held with TSRTC, to emphasize that the
• The Company has implemented a digital signature
nature of transport services is complementary rather than
competitive, in order to improve last-mile connectivity.
Steps have been taken to organise private transport for
pick up and drop at metro stations and encourage large
corporates to provide transport to their employees to and
from metro stations.
• Completed sign ups in the TOD retail malls with major
international and national retail brands viz. Decathlon,
Marks & Spencer, PVR, Lifestyle, Shoppers Stop,
Starbucks, Reliance Retail, etc.
• Naming rights for stations and advertisement wraps
for trains are also added to the advertisement order
stack-up.
Digitalisation
• The Company put in place the automation of the
Fare Revenue Accounting System by integrating the
AFC (Automatic Fare Collection System) with the SAP
Accounting System. Through this automation process,
system over the traditional document signature for all the
invoices raised to customers from various departments of
LTMRHL to ensure strengthen security, cut costs, improve
digital work flow and save time, avoid paper printing and
effectively utilize storage space.
Awards and Recognition
The Hyderabad metro project has been adjudged the Best
Green Building Project by the ET NOW CSR Leadership
Awards ceremony. Other prestigious awards received by the
Company during the Financial Year 2018-19 include:
1. Golden Peacock Innovative Product / Service award on
Leadership for Business excellence and innovation.
2. Exceptional Metro Rail project award from Metro Rail
India Summit
3. Best Urban Mass Transit Project award from GOI,
Ministry of Housing & Urban Affairs
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MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENt PROJECtS BUSINESS ANNUAL REPORT 2018-19
4 - laning of Halol Godhra Shamlaji highway executed
4. Infrastructure Project of the Year (Outstanding Concrete
Structure (Architects Award) from ICI Ultra Tech Award
been used for constructing the track, viaduct as well as
metro coaches.
5. Outstanding Public-Private-Partnership (PPP) Project
in the Metro Sector in India from Rail Analysis India
Awards 2019
6. International Leadership Innovation Excellence Award
from the Institute of Economic Studies
7. Mobility Maven Special Awards 2018 from CIO 100 –
International Data Group (IDG)
Environment, Health and Safety
L&T Metro Rail Hyderabad Limited considers Environment,
Health and Safety as an integral part of its business
philosophy. The management of LTMRHL is committed
to conserving the environment and providing a safe and
healthy workplace.
• The metro system provides a welcome relief from the
heavy air pollution caused by the growing number of
vehicles and the congestion on roads.
• It operates on electric systems, thereby curbing emissions.
• Sound pollution will be minimal, thanks to the efficiency
of the coaches and the advanced engineering that has
Safety Features
- Hyderabad Metro rail trains run on Automatic Train
Operation (ATO) mode with an Automatic Train
Protection (ATP) System that continuously monitors and
ensures safe train operations.
- All vital train-borne equipment, the Station Equipment
(computer-based interlocking (CBI) and wayside ATP),
and vital signalling equipment are highly safe, and
back-ups are available to ensure safe and uninterrupted
train operation.
- Passenger emergency stop plungers are provided on
each platform and in the Station Control Room (SCR) to
stop a train immediately in case of emergency.
Human Resources
The Company has introduced employee-focused initiatives
during current year:
• Launch of voice-enabled BOT called LISA (LTMRHL
Interactive Service Application) for employees of LTMRHL
to enable resolution of service requirements
• Launch of LnT (Leaders of new Tomorrow) – An idea
incubation programme to inculcate the start-up mindset
amongst the employees
266
A two-lane road transformed into a 6-lane highway
• Implementation of Project Parivartan – Competency
Development Programme (a pilot project, based on
heuristic study, to inculcate habit of using the e-learning
platform in a classroom atmosphere)
Risks and Concerns
With progress achieved, the construction risk by way of
non-availability of required Right of Way (RoW) and delay
in approvals from Railways is mitigated to a large extent,
except for one stage. The operational risks of safety of
commuters and assets and alternative modes of transport
are addressed by having a robust in-house team to check
the safety measures and holding discussions with nodal
agencies of alternative modes of transport to work in a
complementary manner.
Outlook
• Overall ridership expected to increase to approximate 10
lakhs per day on the opening of stages 4/2 and 6/1 in FY
2019-20, thus taking the total metro operations to 66
km. For the balance 5.5 km of stage 6/2, Right-of-Way
clearance is yet to come from the Government.
The Government of Telangana has plans to implement
Phase II of Metro project covering 85 km (including
the airport link). This will significantly enhance average
ridership due to the network effect.
• The Company intends to begin a large integrated
development at Raidurg with a potential to develop 3.5
million sq. ft. comprising retail and grade A office space.
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 of projects in thermal and
hydel power generation projects aggregating to
1499 MW.
In the hydel sector L&T Uttaranchal Hydropower
Limited is executing a hydel power project of
capacity 99 MW in the state of Uttarakhand, which
is in advanced stage of construction. The other
three hydel projects in Arunachal Pradesh and
Himachal Pradesh are under hold.
In thermal sector, Nabha Power Limited owns and
operates a 2X700 MW super critical thermal power
plant at Rajpura, Punjab.
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MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENt PROJECtS BUSINESS ANNUAL REPORT 2018-19
2 x 700 MW Rajpura Thermal Power Plant, Punjab
Nabha Power Limited (NPL)
The Company has Power Purchase Agreement (PPA) with
Punjab State Power Corporation Limited (PSPCL) for selling
all the power generated from this plant for a period of
twenty-five years. The plant is built on the supercritical
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 the 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
Bhakra-Nangal distributary is the perennial source of water
for the plant under an allocation by the State Government.
The plant is operated by an in-house team of experienced
operations and maintenance professionals.
The power plant has been running successfully for over
five years with an availability of over 85% during FY19.
NPL has been the most reliable source of power for the
state of Punjab and has supported its requirements with
uninterrupted supply during the peak season. NPL also
happens to be the lowest cost power producer within
Punjab with benchmark operational efficiency.
Business Environment
India’s Electricity Generation grew at 5.4% in FY 19 and
there was an addition of 2.12 GW of Thermal Energy
Capacity Additions in the same period. The Power Demand
in Punjab was 4541 MW (Q4 FY19) registering an 8%
increase over the demand in the corresponding period
last year. Coal shortages continue to plague power plants,
resulting in higher merchant power rates. The Average
Power Purchase rate was R 3.92/KWh in FY19 vs R 3.25/
KWh in FY18. Being at the top of the merit order, average
energy charge for NPL remained at R 3.30/KWh.
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
• Received a partial payment from PSPCL, based on
a favourable Supreme Court judgement in the coal
washing matter
• Achieved an availability rate of over 85%
• Plant operated at PLF of 74% despite plant shutdown
due to forced outages
• Secured highest ever imported coal approval of 9.5 Lakh
MT
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The 221.4 km Beawar – Pali – Pindwara road in Rajasthan is the
longest four lane road project developed under the (PPP) model
in the National Highways sector.
Devihalli Hassan Toll Road
• Ensured complete coverage by CIMFR at SECL through
intense efforts
e-logbooks which maintains logs of work done by shift
engineers to facilitate no-overlap.
• CSR initiatives in the area of development of village
infrastructure, education, skill building, gender equality,
health and environment were implemented during the
year
• Real time capturing of vital power plant parameters
like plant availability, financial data like profitability
and billing and making it available on a management
dashboard along with relevant historical data.
• During the year, the business was awarded and
decorated with the following:
i) Excellent Energy Efficiency Unit Award by CII,
Hyderabad
ii) High Efficiency Leadership and Innovation award by
PEABODY ENERGY, USA
iii) Energy Conservation Award by Punjab Energy
Development Agency, Govt. of Punjab
Digitalisation
Steps taken towards digitalisation are:
• Upgradation of the Maximo mobility application – an ERP
system which plays a crucial role in asset management,
approval of PO/ PR, maintaining logs of plant operations
and other HSE functions like Hazard reporting
• Development of Mobility apps for approval of Purchase
Requisition, Purchase Orders approvals and maintain
Environment, Health and Safety
The entity is committed to generate reliable and
environment-friendly power under safe working conditions.
A policy on Quality, Environment, Health and Safety
has been put in place. Emphasis is laid on continual
improvement of our processes and practices to achieve
improved environmental, health and safety performance.
Training on EHS for employees and stake holders is
undertaken on a regular basis to foster a culture of health
and safety.
Human Resources
The business has built a committed team of professionals
experienced in the field of operations and maintenance
of power plants. Special emphasis is given to training
and development of the workforce through various
training programs. In addition to the competency building
programs, the business also focusses on soft skills and
leadership development.
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MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENt PROJECtS BUSINESS ANNUAL REPORT 2018-19
NH-14 Palanpur-Swaroopganj Highway
Risks and Concerns
As regards the financial risks, the financial health of the
state Discoms remains an area of concern, considering that
they are the sole customer. Also, the entity is exposed to
cashflow stress pending dispute resolution with PSPCL on
certain aspects, though it is fairly positive on the outcome,
the risk of unfavourable resolution exists.
risk identification, assessment and evaluation, strategy
and mitigation and monitoring and review mechanism.
The company has implemented multiple measures in
each of the risk areas to ensure a pro-active approach
and timely mitigation including but not limited to timely
major maintenance and repairs, coal import sanctions on
domestic shortages, etc.
Being a coal based thermal plant, availability of coal fuel,
quality of coal received, storage loss, supply chain logistics
for fuel including lead time between requisition and arrival
of coal wagons, transit loss in terms of quality, as well as
quantity of coal continues to be a major operational risk for
the business.
Demand Supply situation of coal as well as power and
the overall market scenario brings about certain business
volatility and strategic risks.
Additionally, environmental compliances, as well as
Government Policies on various aspects of thermal power
pose multiple concerns for the business.
The risk management policy of the company provides
for a robust risk management framework which involves
Outlook
Punjab is expected to witness a flat growth in demand for
electricity during FY 20.
NPL is likely to remain the lowest cost power producer
amongst the IPPs in the state with expected plant load
factor of 78% in FY20. On the fuel side coal supply
continues to be challenging in the FY 20.
The business has embarked on a five-year strategic plan
under the ‘Lakshya 2021’ program of the group. Major
focus areas for NPL during FY20 would be maximising
plant availability, resolution of long pending litigations,
improving operational efficiency, reducing under recoveries
in coal, enhancing fuel quality, resolving the regulatory
issues, cost management, digitalisation initiatives and EHS
compliance.
270
OTHERS
Artist’s impression
Crescent Bay, Parel
Others’ business comprises:
2. Crescent Bay (Parel, Mumbai)
a. Realty Business
b. L&T Valves Limited
c. Construction Equipment and others
REALtY BUSINESS
Overview:
The Realty business is engaged in development
of Residential and Commercial projects for sale or
lease. The business has its own land bank, as well as
operates through partnerships with co-developers,
in form of Limited Liability Partnerships (LLPs) with a
vertical sharing ratio.
Residential Segment
1. Emerald Isle (Powai, Mumbai)
Emerald Isle is a flagship residential development
of L&T Realty. It is a development on ~20 acres of
land in Powai, Mumbai. The development comprises
of 2 phases. Phase I comprises 8 towers which are
completed. Phase II comprises of 8 towers out of
which 4 towers have been launched for sale.
L&T Realty is developing a premium residential
housing project at Parel, Mumbai on a revenue
share basis with Omkar Realtors. The development
comprises of 6 high-rise towers forming a crescent
shape, named Crescent Bay. The development of 5
towers out of 6 have been completed.
3. Raintree Boulevard (Bengaluru)
Raintree Boulevard is a premium integrated
development consisting of commercial, residential
and retail on ~67 Acres of land in Hebbal, Bengaluru.
The residential development is ~39 L. sq. ft. of
saleable area spread over 29 acres of Land. Phase I
development is in advanced stage of completion.
Commercial Segment
1. Seawoods Grand Central Project
Seawoods Grand Central in Navi Mumbai is a
landmark development and is India’s first Transit-
Oriented Development (TOD). Spread across 40 acres,
Seawoods Grand Central is a unique combination of
Commercial, Retail and Hospitality. It has completed
development of ~2.6 M sq. ft. of grade A commercial
and retail space.
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MANAGEMENT DISCUSSION AND ANALYSIS OtHERS ANNUAL REPORT 2018-19
Artist’s impression
L&T Business Towers - Powai West
2. L&t Business Park
L&T Business Park at Powai is ~15 acres, a campus
hosting ~1.5 M sq. ft. of high-quality office space.
Further developments are being undertaken in the
campus.
3. technology Park, Bengaluru
L&T Realty’s project in Bengaluru has a potential
development of Grade A commercial office spaces of
~3.3 M sq. ft. which will be taken up in phases. The
first phase development of ~1.1 M sq. ft. is already in
progress.
L&T Realty has gained capabilities and competencies
to capitalise on opportunities by leveraging its key
strengths which are:
• Brand Commitment: Enjoys unparalleled trust
amongst customers for capabilities to complete and
deliver projects enabling premium realisations in the
micro markets.
• Execution: Possesses capabilities and partnerships for
successful completion of projects and deliver promised
quality and ensure safety practices.
• transparency: Follows a strong culture of corporate
governance and ensures transparency and high levels
of business ethics.
• Highly qualified execution team: Employs
experienced, capable and highly qualified design and
272
project management teams who oversee and execute
all aspects of project development.
Business Environment
Growth of the real estate sector is integral to the growth of
the economy. The housing sector alone contributes 5-6 %
to the country’s Gross Domestic Product (GDP), with a 11%
CAGR over the last decade.
The real estate sector comprises four sub sectors - housing,
retail, hospitality and commercial. The growth of this sector
is well influenced by growth of urbanisation, corporate
environment and the demand for office space as well as
accommodation.
The Government of India and the State Governments are
taking multiple initiatives to encourage development in the
sector. Policies like Pradhan Mantri Awas Yojna (PMAY),
credit-linked subsidy scheme, extension of income tax
benefits, the implementation of the Real Estate Regulation
Act (RERA), changes in the GST Laws to remove the
anomalies of tax rates on under-construction properties,
etc., are helping the sector towards growth and an
organised playing field. RERA is leading to transformative
changes in the sector to improve consumer confidence.
The residential segment constitutes 80% of the real estate
industry. The residential real estate trends across markets
are towards smaller ticket size, compact units to address
larger market sizes. Relatively slower sales in the year
have resulted in inventory build-up, causing stagnancy or
pressure on price realisation.
India’s Largest Transit Oriented Development - Seawoods Residences.Navi Mumbai
Artist’s impression
The commercial segment consisting of sectors like IT/
ITeS, retail, consulting and e-commerce have registered
high demand for office space in recent times. The
commercial segment is doing well with stable rental
appreciations and lower vacancies. Office space demand
in the country increased to ~ 36 million sq. ft. (m sq. ft.)
during FY 2018-19, duly supported by strong growth of
absorption. Office property demand is expected to remain
high with annuity seeking investors, both domestic and
international, increasingly expanding real estate exposures
to hold office and retail assets in India. The successful REIT
by Embassy Developers has opened a new chapter in the
Commercial real estate segment.
Major Achievments
• Emerald Isle Residential Development (Ph. I) at Powai
comprising of 8 towers (789 flats) having Saleable Area
of ~13.87 L. sq. ft. completed in the current financial
year.
• Successfully concluded commercial asset sale transaction
in Powai.
• Lease hold Rights obtained from CIDCO for Seawoods
Transit Oriented Development Project.
Awards and Recognition
L&T Realty has been honoured with several awards over the
years. During FY 2018-19, the following awards have been
received:
• Most trusted Brand in Real Estate – L&T Realty (Hindustan
Times Real Estate Awards 2018, Mumbai)
• Iconic Real Estate Brand – L&T Realty (Times Realty Icons
2018 Awards, Mumbai)
• Most Iconic Commercial Project of the year – Seawoods
Grand Central (Real Estate & Infrastructure Round Table
& Awards – DNA)
• Developer of the Year – Commercial (L&T Seawoods Ltd.)
– 10th Realty+ Conclave and Excellence Awards 2018
• Integrated Township Project of the year – Raintree
Boulevard – 10th Realty+ Conclave and Excellence
Awards 2018
• Best Mixed-Use Township Award – Raintree Boulevard –
Times Business Awards
Digitalisation
Sales Force CRM will enable capturing customer sentiments
at each touch point. The features focused are lead
generation and nurturing, retargeting, remarketing,
advocacy, social listening, customer journey from lead to
booking of apartment to hand-over will be taken care.
L&T Employee Campus App will have features for
employees and visitors based on their specific needs
and access requirements. Key features include a
Welcome and Campus Policy, cafeteria related information,
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MANAGEMENT DISCUSSION AND ANALYSIS OtHERS ANNUAL REPORT 2018-19
Raintree Boulevard - A mixed-use development at Hebbal, Bengaluru
Artist’s impression
indoor navigations, digital signage, parking, access,
emergency buttons and a gate pass. Employees can also
avail of features like booking meeting rooms and bus
tracking.
Human Resources
L&T Realty believes that employees are key contributors
to the success of the organisation and endeavours to
acknowledge the contribution made by employees.
The leadership focus is towards the following:
• Attracting and retaining talented, performing employees
• Employee development through training, engagement,
awareness and wellness
L&T Realty is the most preferred employer in the
sector because of professional management, learning
work culture, focus on safety and a long-term career-
oriented work environment. During the year, 530 men
days were dedicated for competency enhancement and
skill development of the employees through various
trainings.
Rewarding and recognizing consistent superior
performance is essential to build a stronger organisation
and create a talent pipeline. The business has a fast-track
program for high performing employees to provide them
with challenging opportunities to grow faster.
Risks and Concerns
Prevailing market conditions, meeting customer
preferences, obtaining various approvals, price fluctuation,
increasing cost of housing loans, liquidity crunch, delay
in execution of projects / approvals, increase in costs of
steel, cement, increase in minimum wages and regulatory
changes are the areas where business is susceptible to risks.
L&T Realty has appropriate/adequate risk mitigation plans
for business processes at all levels.
Outlook
The Indian Real Estate sector aims to reach USD 180 billion
by the year 2020, with both commercial and residential
segments gaining momentum. Cities like Bengaluru,
Chennai, and Hyderabad have become development hubs.
The steady demand for residential real estate from the IT
sector and the implementation of various infrastructure
initiatives will be amongst the key reasons for higher
demand in these areas. Brands like L&T Realty are well
accepted by customers for transparency and delivery
capabilities, apart from providing well designed projects in
premium locations and strong liquidity. It is ideally placed to
strengthen its development foot print by joining hands with
owners of land parcels.
The business is confident about steady growth in the
Commercial segment. It will continue to launch new
residential projects in Mumbai, Chennai and a few other
large cities.
274
VlavTrac - a revolutionary traceability solution for L&T valves
L&t VALVES LIMItED
Overview:
L&T Valves (LTVL) is a leading manufacturer of
industrial valves. The business leverages fifty years
of manufacturing excellence to serve key sectors
of the economy such as oil and gas, power,
petrochemicals, chemicals, water as well as defence
and aerospace. L&T Valves manufactures a wide
range of products such as Gate, Globe, Check, Ball,
Butterfly and Plug valves as well as automation
solutions.
LTVL is a market leader in India. Over the years, it
also has made forays into international markets in
select geographies. It operates two manufacturing
facilities in southern India (Kancheepuram and
Coimbatore) which are equipped with state-of-the-
art design and manufacturing infrastructure, while
maintaining high standards in the area of health,
safety and environment.
Business Environment
A large volume of the business revenues accrues from
the oil and gas sector and through supplies to projects.
Oil prices are a key driver. With oil prices recovering
during FY 2018 -19, the consumption was driven by
project activity in the domestic and international arenas.
Investments in the downstream market gathered traction
as refinery projects got underway in Middle East. Overall,
an increased procurement activity was witnessed in oil and
gas sector.
Besides oil and gas, power is another sector of interest.
Owing to the structural and regulatory stress in this sector,
the market growth remained muted during FY 2018-19
with no significant capacity additions in the thermal sector.
Demand in process industries took a positive turn on the
backdrop of favorable IIP and PMI indices.
FY 2019 also witnessed an increasing trend of localization
and protectionist policies across the globe. The business
has taken note of such trends in specific markets like the
Middle East and the US and has planned accordingly.
Industrial valves is a highly fragmented market which
operates in a highly competitive environment. While the
business faced intense competition during FY 2018-19, it
has successfully mitigated these challenges and recorded a
robust growth during the year.
Major Orders Received
The entity recorded a growth over 100%. Some of the
order highlights include:
• Orders received from US distributor (QRC)
• Haradh Hawiyah Gas Compression project (Saudi Arabia)
from Tecnicas Reunidas
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MANAGEMENT DISCUSSION AND ANALYSIS OtHERS ANNUAL REPORT 2018-19
L&T Valves’ products and services enhance safety, reliability and performance worldwide
• Kuwait Oil Company’s Gathering Centre GC 32 (Kuwait)
• Initiated brand labelling products from other
from Petrofac International Ltd.
manufacturers based in USA, Europe and India
• Unique bi-directional check valve provided for defence
applications
• KOCHI PDPP from BPCL
Significant Initiatives
The business implemented multiple strategic initiatives in
the form of geographic, channel and product expansion
during FY 2018-19.
• Expansion into US Markets:
- Commencement of distribution business in the USA
(largest market for valves) by entering into distribution
agreements with a few major distribution companies
• Introduced a new line of business, ‘After Market’ to cater
to service and spares needs of customers across the globe
• Embarked upon a major cost reduction journey through
design optimization and other initiatives in the areas of
sourcing and logistics, helping to remain competitive and
benchmark costs with competitors
• Initiated a number of operational excellence initiatives
during the year to improve cost competitiveness, on- time
delivery performance, quality and lead time reduction
Digitalisation
A few of the major digital initiatives taken include:
• Smart Glass – Real time tour for customers from off-sites
- Strong entry in this market resulting in orders worth
and inspections from customer locations
USD 12 Mn.
- Successful pilot run for assembly and testing of
valves in USA on contract basis – demonstrating local
presence and strengthening the brand image there
• Digitalisation of stores and material handling through Bar
coding, RFID, etc.
• Design automation and Test Stand automation
• Expanding spread to Europe by establishing distribution
network
• Integration of Product Life Cycle Management tool with
ERP (SAP)
• Expansion of product range to increase its share of
revenue from the existing customer base
• Search Engine - single door access to customers for
product documentation
276
The first HIPPS (High Integrity Pressure Protection System) designed and manufactured in India.
Environment, Health and Safety
Environment, Health and Safety consciousness is a core
value and the business is committed to achieving EHS
excellence at all workplaces. Various initiatives in the area
of health, safety and environment helped the Company
achieve a ‘zero man days lost’ record during the year as
also receive recognition and awards in these areas.
• Awarded the state level Health & Safety award by
National Safety Council, Tamil Nadu chapter
are undertaken to motivate employees and maintain a
harmonious work place.
Risks and Concerns
The entity has a robust risk management framework in
place and has implemented a risk management policy to
identify, monitor and mitigate major risks faced by the
business. Taking note of the large quantum of ‘projects’
business, it has implemented a pre-bid risk review process
during FY 2018-19.
• 10KW solar lighting systems installed in KPM for office
lighting
• Water Consumption is down to 46.5 litres/employee/day
compared to 63.43 litres in FY 17-18
Increased competition, low entry barriers, aggressive pricing
strategies, increasing trend in protectionist policies, supply
chain capacity constraints and execution delays affecting
delivery performance are seen as some of the main risks
faced.
• Single use, throw-away plastic items restricted at both
the plants
During FY 2018-19, the business undertook various risk
mitigation initiatives including:
Human Resources
The business has built a committed and experienced
team of professionals across its manufacturing plants and
corporate and marketing offices. Special emphasis is given
to training and development of the workforce through
various training programs. In addition to the competency
building programs, focus is also on soft skills and
leadership development. Various engagement initiatives
• Geographic, product and channel expansion
• Improving cost competitiveness through cost reduction
measures
• Special efforts to expand its sourcing base, both locally
and overseas
• Addressed supply chain constraints in terms of cost,
capacity and lead times by altering processes
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MANAGEMENT DISCUSSION AND ANALYSIS OTHERS ANNUAL REPORT 2018-19
Komatsu HD785 Dump Truck
Komatsu PC350LC-8M0 Hydraulic Excavator
• Introduced a variety of operational excellence initiatives
to enhance execution efficiency and improve the on-time
delivery performance. These include:
- Shop-floor lean improvements
- Digitised planning and procurement
- Online integration of shop floor activities
Outlook
A comprehensive analysis of the market provides pointers
to immense opportunities in terms of head room available
in the oil and gas sector as also the high potential for
growth in geographies like America, Europe, Middle
East, Africa and Asia Pacific. A focused effort to pursue
prospects in Europe and America will not only help
expand its customer base but also help in de-risking its
dependence on existing markets. Similarly, opportunities
in the distribution space, which is the preferred channel in
some of the major markets, will also help in mitigating high
exposure to projects.
On the domestic front and in the oil and gas sector,
investments are expected in debottlenecking and capacity
expansion projects in the year FY 2019-20. It also shall track
investments in pipeline and marketing terminals which are
likely to come up. Opportunities are opening up in defence
and nuclear space which augur well for the business’s
established track record in this area.
Globally, in an environment of stable oil prices, the business
outlook shall remain positive. Investments in oil and gas
projects are expected to continue in the Middle East and
some parts of Africa. Similarly, project implementations
in downstream and gas development are expected to
continue in Europe. Overall, prospects from EPC players are
expected to continue at the same levels.
Setting up of an ‘after-market’ business has opened up
new opportunities across the world and the Company
expects a positive impact of this initiative on its order
inflows during FY 2019-20.
CONSTRUCTION EQUIPMENT &
OTHERS
Overview:
The Construction Equipment & Others (CE&O)
business manufactures, distributes and provides
after-sales support for construction and mining
equipment for diverse industries and applications.
The business also manufactures and markets Tyre
Curing Presses, Tyre Building Machines and provides
solutions for the tyre manufacturing industry
globally.
The CE&O business consists of two broad segments,
namely, Construction & Mining Machinery
278
L&T 1190D Soil Compactor
L&T 2490HD Pneumatic Tyred Roller
(CMM) and Rubber Processing Machinery (RPM).
CMM further comprises the Construction &
Mining Machinery business unit (CMB) and
L&T Construction Equipment Limited (LTCEL), a
wholly-owned subsidiary of L&T. The RPM business
comprises L&T Rubber Processing Machinery
business unit (LTRPM) and L&T Kobelco Machinery
Private Limited (LTKMPL), a Joint Venture with Kobe
Steel, Ltd., Japan (with L&T holding a 51% stake
and 49% by Kobe). In April 2019, L&T fully exited
its investment in LTKMPL with Kobe buying over
the 51% stake held by L&T in LTKMPL, while LTRPM
continues to represent LTKMPL for marketing its
products.
The CMB division focuses on distribution and after
sales service for hydraulic excavators and dump
trucks manufactured by Komatsu India Private
Limited (KIPL) and other mining and construction
equipment manufactured by Komatsu worldwide.
It also handles the distribution of a range of
construction equipment including hydraulic
excavators, wheel loaders and compactors
manufactured by LTCEL and Mining Tipper Trucks
manufactured by Scania India.
LTCEL, located in Doddaballapur near Bangalore,
manufactures vibratory compactors, wheel loaders,
hydraulic excavators, asphalt paver finishers,
pneumatic tyred rollers, skid steer loaders,
hydraulic power packs, cylinders, pumps and other
components.
LTRPM, located in Kancheepuram near Chennai,
manufactures and markets rubber processing
machinery i.e. mechanical and hydraulic tyre curing
presses, tyre building machines, conveyor systems
and tyre automation systems for the tyre industry
both domestically and globally. LTKMPL is in the
business of designing, engineering, manufacturing,
installation and servicing of rubber processing
machinery (mixers and twin-screw roller head
extruders) and spares.
The Product Development Centre (PDC) based
at Coimbatore, renders engineering and product
development support for all the businesses.
Business Environment
Construction and Mining Machinery Business
Construction and mining sectors are the key demand
drivers of CMM business.
During the year, highway construction increased from 27
Km/day to 29 Km/day, rail-track construction increased
from 5.1 Km/day to 5.8 Km/day and cargo handling
capacity at major ports increased from 1451 MMT to 1540
MMT.
In the mining sector, coal production registered a growth
of ~ 5.7% over the previous year. In the cement sector, the
installed capacity increased from 455 MT to 478 MT with
an increase in overall production from 296 MT to 328 MT
in FY 19. The auction of around 24 limestone mines was
completed during FY 2018-19.
279
MANAGEMENT DISCUSSION AND ANALYSIS OTHERS ANNUAL REPORT 2018-19
L&T 9020sx Wheel Loader
Scania P440 Tipper Truck
However, with NBFC crisis impacting liquidity in the
economy, stiff competition from domestic equipment
manufacturers and a number of Chinese mining equipment
manufacturers – especially in dump truck, tipper and wheel
loader segments – impacted growth.
• VPR Mining Infra – Scania mining trucks
• National Mineral Development Corp. – Komatsu mining
equipment and spares
• PC Patel Infra – Komatsu mining equipment
Rubber Processing Machinery Business
The performance of the automobile and tyre industries are
the major influencing factors for the business. The global
auto industry registered a moderate growth and did well
in markets like India, Russia and Brazil in the current year.
However, China saw a steep fall in passenger car sales and
the US market remained flat.
India produces about 3.5 million passenger cars per year,
although the last quarter of FY 2018-19 did see a bit of
de-growth. In the commercial vehicles (CV) segment,
the current year has witnessed growth as high as 25%,
because of the low base effect.
In the OTR (Off The Road) market in India, the demand
for tyres has been good and many of the customers have
gone ahead with expansion plans, providing good business
opportunities. The segment saw a growth of 20 % over the
previous year.
Major Orders Received in CMB
The following major orders were received during the year:
• Singareni Collieries Company Limited – Komatsu mining
equipment and spares
Significant Initiatives
Construction and Mining Machinery Business
CMB introduced a number of business expansion activities
during FY 2018-19. It introduced new equipment models
for the construction and mining equipment such as an 80T
excavator with a large bucket, rock body Scania tippers,
etc., which helped in delivering additional sales. With the
availability of spares being brought closer to customer sites,
the availability guarantee of the machines has increased
from 84% to 92% and thereby increasing sales of spares
for the business.
With the continued focus on capturing the hiring segment,
CMB promoted lease financing programmes with low
investment and low EMI. In order to retain customers
and overcome the competition, CMB has been educating
customers to evaluate the equipment on the basis of lower
life-cycle costs, quick serviceability, etc.
CMB’s 6th Service centre was opened in May 2018 in
Singrauli covering over 800 machines in the region.
Rubber Processing Machinery Business
An array of newer models was developed and newer
variants were introduced into the market viz. a new low
280
PCR Floor Mounted Hydraulic Press
PCR Hydraulic press
deck height series of passenger car tyre hydraulic press and
a new variant of tyre building machine (TBM) called Zeus
being exported to a tyre manufacturer in US and targeting
new customers in the US and European markets.
LTRPM also strengthened its portfolio on Tyre Handling
Automation Solutions and increased its focus on product
support and services. Apart from these, LTRPM also focused
on a number of process-related initiatives such as design
process modernisation, long-term vendor contracts with
360-degree support, product reliability enhancements,
digitalisation, etc.
As part of the plan of expanding global reach, LTRPM also
set up its office in the United States and has identified a
similar plan for Europe. During the year 2018-19, a new
technology called Hyper Cooled Rotor KCS 3.0, with a
higher cooling capacity was introduced by LTKMPL, which is
suitable for mixing rubber at lower temperatures.
Digitalisation
On the digital front, the LTRPM business has established a
system for updating the material status on a continuous
basis, both for in-house and purchased parts. QR code
based traceability for the components has been introduced.
Digitalisation in CMB was implemented in stages
throughout the year, which offered superior ICT tools,
customer savings through machine performance
monitoring and enhanced financier comfort.
Environment, Health and Safety
Safety Officers have been appointed at all the units and
report to management personnel responsible for ensuring
the safety practices are strictly adhered to. Safety audits are
conducted regularly to ensure that the safety practices are
in place and being followed.
The manufacturing unit of LTCEL has been certified
for its Integrated Management System (Environmental
management systems as per ISO 14001:2004 and
OHSAS 18001:2007 for Occupational Health and Safety
Management systems).
Human Resources
The Company has progressively built a team of
committed professionals across its manufacturing
plants and corporate offices. Emphasis on training and
development of the workforce has been the focus area.
Additionally, competency building programs for leadership
development and various engagement initiatives have
been undertaken to sustain the employees’ motivation
and maintain a harmonious work place. Consequently, the
Industrial Relations scenario has remained cordial in the
manufacturing units of the group. There were no cases of
violations during the year under the whistle blower policy
and policy on ‘Protection of Women’s Rights at Workplace’.
Risks and Concerns
Foreign currency fluctuation poses one of the major risks,
as the LTRPM business has significant portion of imports
281
MANAGEMENT DISCUSSION AND ANALYSIS OTHERS ANNUAL REPORT 2018-19
OTR Mechanical press
TBR Hydraulic Press
and also exports goods. However, the business has
mitigation plans in place to counter the impacts of currency
volatility. Increased market competition and macro-
economic volatility is a continuing concern for the business.
Outlook
Construction and Mining Machinery Business
CMB plans to strengthen position in the premium segment
and also increase its focus on large contractors, large
irrigation projects and coal OB (overburden) removal
contractors.
Government initiatives in infrastructure development,
affordable housing etc. are expected to drive demand in
the cement sector, which in-turn will boost demand for
dump trucks, dozers and other mining equipment.
The dozer segment is expected to grow by ~25%. Demand
for Komatsu excavators is expected to increase by ~11%
for FY 2019-20. The motor graders segment is expected to
increase by ~14%.
With ~60% of demand for mining equipment coming from
Coal PSUs, CMB is planning to target selective tenders
along with Komatsu.
In the parts and services segment, CMB plans to introduce
newer and more innovative, user-friendly spares. It also
plans to develop dealers for construction equipment
component repairs.
Rubber Processing Machinery Business
The global tyre market totalled USD 73.9 Bn in 2017 and is
expected to grow up to USD 98.56 Bn in 2024 at a CAGR
of 4.2% as per the market research, with light-vehicle tyres
accounting for around 60% of sales and truck tyres 30%.
Few brownfield projects have been announced in the Truck
Bus Radial and Off The Road segments. In the international
market, tyre industries have announced few projects for
investment. LTRPM’s discussions with some of the leading
players in Europe and US should give the unit good
opportunities for better order inflow in FY 2019-20.
CMB also expects the spares and auxiliaries business to
grow by ~13% and plans to introduce newer attachments
to boost sales.
In the domestic market, with the Indian auto slow down
and the general elections held in Q1 of FY 2019-20, the
order inflow for FY 2019-20 may face some difficulties.
282
Financial Review 2018-19
I. L&T CONSOLIDATED
A. PERFORMANCE REVIEW
Indian economy is poised to gain out of structural reforms
like GST, IBC etc. and initiatives such as Demonetisation.
The year witnessed pick up in project awards and
improved execution environment. Backed by incremental
tax revenues and widening tax base, it is likely to give
Central Government good financial wherewithal to fund
infrastructure capex as well as uplift weaker sections
of society through social spending. State governments
have also steadily increased investment in public sector
infrastructure projects such as state roads, transmission
and distribution networks, metro rail networks and
irrigation facilities. With Insolvency & Bankruptcy Code
maturing, bank finances were channelled to growth prone
areas, resulting in pick up in private sector investments,
especially in health sector and in other services sector.
This added with Governments thrust on infrastructure
growth saw pick up in airports expansion although
decision making in areas such as defence manufacturing
towards Make in India programme is yet to gather the
required momentum.
Public sector spends reflects strong investment
momentum in areas of compliance requirements in
refinery, reduction in import dependence in fertiliser,
water supply & distribution, Metro Rail Networks, Road
adjacencies (special bridges, expressways and city flyovers)
and Transmission & Distribution. The strong underlying
macro drivers of investments in these sectors are expected
to continue well into FY 2019-20 and beyond, though the
General Elections in first quarter of FY 2019-20 may have
some impact on decision making process.
On the global front, the year gone by has seen significant
volatility. Increase in protectionist barriers, sensitive geo-
political developments, moderation of growth in China,
oil price & commodity price fluctuations, are impacting
the way of doing business. The business environment
remained competitive, with surplus capacity causing
pricing pressures.
In this backdrop, the Group recorded stellar performance
of its businesses in diverse sectors. The Company
continued to focus on its goal of maximizing shareholder
value by divesting assets identified for sale, achieving
operational excellence through digital initiatives in
furtherance to improve cost competitiveness, containing
working capital along with better funds management
and investing in value accretive acquisitions. During the
year the Company concluded the stake sale in a container
port in Tamil Nadu on receipt of regulatory approvals. The
Company also monetized 5 road projects by transferring
them to a listed Infrastructure Investment Trust (IndInfravit
Trust). The Company has received an approval from
Competition Commission of India (CCI) for divestment
of its Electrical & Automation business, subject to
compliance to certain conditions the details of which are
awaited. L&T Metro Rail (Hyderabad) Limited, a subsidiary
company, commissioned additional 26 km stretch of
metro rail network in the city of Hyderabad during the
year. The year also saw growth momentum in its listed
subsidiaries namely L&T Infotech Limited, L&T Technology
Services and L&T Financial Services with all three of them
recording notable growth.
As at March 31, 2019, L&T Group comprises 110
subsidiaries, 8 associates, 27 joint venture companies
and 31 joint operations. Most of the group companies
are strategic extensions of the project and product
businesses of L&T, while hydrocarbon business is housed
in a separate set of group companies to provide the
desired focus and independent functioning. Majority
of the subsidiaries support L&T’s core businesses and
enable access to new geographies, products and business
segments. Certain distinct service businesses such as
Information Technology, Technology Services and Financial
Services are housed in separate listed subsidiaries.
The development projects business reside in separate
subsidiaries and joint venture Companies.
Order Inflow and Order Book
L&T Group achieved order inflow of R 176834 crore
during the year 2018-19, registering a growth of 15.6%
over the previous year. Focus on infrastructure at both
the Centre and States, coupled with pick up in select
private sector investments, have resulted in order inflow
growth. The year witnessed increased investment by
State authorities, especially in water supply & distribution
and irrigation sectors. Big ticket orders were received
from public sector entities mainly in Infrastructure and
Hydrocarbon. During the year, Hydrocarbon business
achieved a breakthrough in Algeria on receipt of large
value order which boosted International order inflow. This
resulted in lowering the composition of business from
Middle East.
Order Inflow growth was mainly driven by Infrastructure
segment, contributing 54% of the total order inflow for
the year and Hydrocarbon contributing 16%. Growth was
achieved with increased large value orders received from
airport, metro, water supply & distribution, lift irrigation,
health and refinery segment.
283
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW ANNUAL REPORT 2018-19
R crore
220000 –
Order Inflow
15.6%
165000 –
152908
23%
35853
110000 –
5500 –
77%
117055
176834
46805
26%
130029
74%
0 –
–
2017-18
–
2018-19
–
Domestic
International
A robust order book of R 293427 crore as at March 31,
2019 gives multi-year revenue and margin visibility to
the Company. With current year order inflow being
largely domestic centric, the composition of international
order book declined to 22% as at March 31, 2019, as
compared to 24% in the previous year.
Infrastructure segment continues to contribute 76% of
the consolidated order book. With increased opportunities
in Hydrocarbon sector, the share in order book has
increased from 10% to 14%. As the year saw major order
awards from State Government’s, the share of order book
from State Governments has increased, with reduced
share of orders from Central Government.
R crore
375000 –
300000 –
225000 –
24%
Order Book
11.5%
263107
62506
293427
63266
22%
150000 –
75000 –
0 –
–
76%
200601
230161
78%
2017-18
–
2018-19
–
Domestic
International
Order Book Composition
R crore
39717
14%, (10%)
5843
2%, (1%)
2647
1%, (1%)
4760
1%, (1%)
11532
4%, (5%)
7078
2%, (4%)
Infrastructure
Power
Defence
Engineering
Heavy Engineering
Electrical &
Automation
Hydrocarbon
221850
76%, (78%)
Others
Total Order Book: R 293427 crore as at 31st March 2019
[Figures in brackets relate to previous year]
Consolidated Revenue from Operations
L&T Group recorded revenue of R 141007 crore during
the year, registering a growth of 17.6%. Revenue
earned from international operations comprised 32% as
compared to 33% in the previous year.
Gross Revenue from Operations
R crore
175000 –
140000 –
105000 –
70000 –
35000 –
0 –
–
17.6%
141007
45109
32%
95898
68%
119862
33%
39699
67%
80163
2017-18
–
2018-19
–
Domestic
International
The growth in revenue was achieved with pick up
of execution momentum in project businesses and
substantial growth in services businesses. In product
business, Electrical & Automation business achieved good
growth on better offtake in Electrical Standard Products
& higher demands in Metering Protection Systems, while
Valves revenue was impacted due to delays in client
clearances. Pick up in execution momentum in large value
orders in order book in Transportation Infra, Heavy Civil
Infra, Water Effluent and Treatment, Hydrocarbon and
Defence, led the revenue growth in project business.
Revenue in Realty business on application of Ind AS 115
from April 1, 2018, is now recognized based on ‘Hand-
over’ of residential units, change from earlier cost
based percentage completion method. This may lead to
lumpiness in revenue and profit recognition for a given
period.
Share of revenue of Services business increased from 18%
to 19%, with similar share being reduced of Infrastructure
segment.
Segmentwise Gross Revenue
R crore
5068
3%, (3%)
5935
4%, (4%)
12638
9%, (8%)
14553
10%, (9%)
15176
11%, (10%)
6093
4%, (5%)
2514
2%, (1%)
3849
3%, (3%)
3983
3%, (5%)
73204
51%, (52%)
Infrastructure
Power
Defence
Engineering
Heavy Engineering
Electrical &
Automation
Hydrocarbon
IT & Technology
Services
Financial Services
Developmental
Projects
Others
* includes inter segment revenue R 2006 crore for FY 19 and R 2046 crore for FY 18
[Figures in brackets relate to previous year]
284
Operating Cost and PBDIT
Manufacturing, Construction and Operating (MCO)
expenses at R 99281 increased by 19.2% over FY 2017-
18. These expenses mainly comprise cost of construction
material, raw materials and components, subcontracting
expenses and interest costs in Financial Services business.
This represent 70.4% of revenue, an increase by 90
bps, mainly due to cost overruns encountered in some
roads, elevated corridor projects in the Transportation
Infrastructure vertical.
Operating expenses & Profitability
2018-19
[% to revenue]
11.6%
(11.4%)
5.2%
(6.4%)
12.8%
(12.7%)
Mfg. Contruction &
Operating Expenses
Staff Expenses
Sales, Administration &
Other expenses
Operating Profit (PBDIT)
70.4%
(69.5%)
[Figures in brackets relate to previous year]
Staff expenses for the year 2018-19 at R 18101 crore
increased by 18.5% over the previous year. Staff Cost
as a percentage of revenue marginally increased to
12.8% from 12.7%, representing normal increments
and increase in manpower in the services business. The
Group is sustaining its focus on improved productivity,
digitalisation and manpower rationalisation.
Sales and administration expenses decreased by 4.3%
y-o-y to R 7301 crore, mainly on lower provisions towards
customer receivables and credit losses.
The Group operating profit at R 16325 crore for the year
2018-19 registered a healthy growth of 19.7% y-o-y.
The EBITDA margins for the year also improved by 20
basis points to 11.6%. Favourable job mix, coupled with
execution efficiencies in Defence, Heavy Engineering
and Hydrocarbon, cost optimization measures in product
businesses, monetization of a Realty asset and container
port at Kattupalli and strong growth in IT & TS businesses,
contributed in offsetting the impact of cost overruns
encountered in some projects in the Infrastructure
segment.
Depreciation and Amortization charge
Depreciation and amortization charge for the year
2018-19 increased by 8.1% to R 2084 crore, compared
to R 1929 crore in previous year. The increase was largely
due to impairment of assets in hydel projects.
Other Income
Other income at R 1852 crore, increased by 38%
over R 1342 crore, consists of profit on sale of liquid
investments, interest and dividend income from treasury
investments. The growth was on account of higher
interest income, lower charge towards mark-to-market
(MTM) of derivatives and higher cross-sell income in
Financial Services.
Finance cost
The interest expenses for the year 2018-19 at R 1806
crore was higher by 17.4% in comparison to R 1539 crore
for the previous year. The increase was attributable to the
higher interest cost in L&T Hyderabad Metro Rail upon
partial commencement of operations. Further, higher
proportion of interest bearing advances in Infrastructure
businesses resulted in increase in average borrowing
cost for the year to 7.9%, as compared to 7.3% in the
previous year.
Exceptional Items
Exceptional items of R 295 crore during the year
represents recognition of certain customer dues (covered
in insolvency proceedings), now considered as recoverable
based on favourable NCLAT order received during this
year.
Tax Expense
Income Tax charge for FY 2018-19 increased to R 4343
crore compared to R 3199 crore in FY 2017-18 on
increased profits and higher effective tax rate.
Consolidated Profit after Tax and EPS
Consolidated Profit after Tax (PAT) at R 8905 crore for the
year 2018-19 rose by 20.8% over the previous year at
R 7370 crore.
Consolidated Basic Earnings per Share (EPS) for the year
2018-19 at R 63.51 registered a substantial growth over
previous year at R 52.62.
Return on Consolidated Net Worth
The Net Worth, as on March 31, 2019, at R 62375 crore,
reflects net increase of R 7471 crore, as compared to the
position as on March 31, 2018. Return on Net worth
(RONW) for the year 2018-19 was higher at 15.3%,
compared to 14.1% in the previous year, driven by
increase in net earnings.
285
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REvIEW ANNUAL REPORT 2018-19
R crore
70000 –
60000 –
50000 –
40000 –
30000 –
20000 –
10000 –
0 –
–
Return on Equity
54904
14.1%
62375
15.3%
2017-18
–
2018-19
–
Net worth
RONW%
Liquidity & Gearing
Cash flow from operations (excluding change in loans
and advances towards financing activities) increased to
R 9139 crore as compared to R 6428 crore in the previous
year due to better operational efficiencies and thrust on
customer collections. Borrowings increased by R 4319
crore to sustain higher level of operations. During the
year, additional funds were generated from divestment of
stake in subsidiary companies and treasury income.
Funds were used for strategic investments and
investments in S&A companies. Further, the group
incurred capital expenditure of R 3475 crore, payment
of dividend R 2647 crore and net interest expense of
R 2982 crore during the year. There was a net decrease of
R 275 crore in the cash balances as at March 31, 2019 as
compared to the beginning of the year.
9139
4319
2885
v crore
FY 18-19 FY 17-18
6428
(3691)
1413
Consolidated Fund Flow Statement
Particulars
Operating activities
Borrowings/(Repayment) of Borrowings
Receipt from/(Payment to) minority
interest (net)
Treasury and dividend income
ESOP Proceeds (net)
Decrease/(lncrease) in cash balance
Sources of Funds
Capital expenditure (net)
Purchase/(Sale) of other investments
Net investment/(divestment)
Dividend paid
Interest paid
Utilisation of Funds
The total borrowings as at March 31, 2019 stood at
R 125555 crore as compared to R 107524 crore as at
March 2019. The gross debt equity ratio increased to
1.81:1 as at March 31, 2019 from 1.79:1 as at March 31,
2018. The net debt equity ratio stood at 1.52:1, same as
at March 31, 2018.
3278
50
(3254)
4224
2015
(2175)
(477)
2390
2471
4224
987
11
275
17616
3475
8252
260
2647
2982
17616
Infrastructure Segment
B. SEGMENT WISE PERFORMANCE (GROUP)
1.
Infrastructure segment now includes Metallurgical and
Material Handling (MMH) business, which was reported
under “Other” segment last year. Accordingly, previous
year figures have been regrouped wherever necessary.
Infrastructure segment won orders worth R 95743
crore, higher by 2.8% over the previous year, mainly
from domestic state government and private customers.
Large value orders were bagged by Building & Factories,
Heavy Civil Infrastructure, Transportation Infrastructure
and Water Effluent Treatment businesses. Strong
investment by private sector in the airport segment and
health segment boosted the order inflow momentum
of Building and Factories. The demand from Housing
segment however grew meagerly on account of unsold
inventory. Water Effluent & Treatment business registered
a significant growth with order wins from Madhya
Pradesh for Water Supply & distribution and irrigation
projects. Smart World & Communication registered
growth benefitting from social sectors like E-shiksha and
growth in communication network. The order inflow
momentum was maintained in Power Transmission and
Distribution business on orders received from Power
Utilities and Middle East. The Order Inflow growth was
impacted in the Heavy Civil Infrastructure, Transportation
Infrastructure and Metallurgical and Material Handling
business by deferral of some large value orders.
The share of international order inflow remained at 16%,
same as previous year, with reduced contribution from
Middle East compensated by higher proportion of orders
from South East Asian and African countries. International
order wins were predominantly in Power Transmission &
Distribution, with Buildings & Factories and Transportation
Infrastructure each receiving one large value order from
international market.
R crore
125000 –
100000 –
75000 –
50000 –
25000 –
0 –
–
Order Inflow
2.8%
93167
14468
16%
95743
14846
16%
84%
78699
80897
84%
2017-18
–
2018-19
–
Domestic
International
286
Infrastructure segment clocked gross revenue of R 73204
crore for the year 2018-19 registering 15.4% growth
over the previous year. With strong executable opening
order book, supported by necessary operational actions
and statutory clearances, the execution progress picked
up, resulting in revenue growth. All businesses of the
segment registered a strong growth, except Smart World
& Communications due to delay in receipt of clearances
and new awards and in Metallurgical & Material Handling
business on two large value projects in the portfolio
encountering challenges for execution clearances.
Revenue from international operations constituted 26%
of the total revenues of the segment during the year as
compared to 29% in the previous year, with reduced mix
of international orders in opening order book.
Infrastructure Segment earned operating profit of
R 6154 crore. There was a decline in margins from
9.8% to 8.5% due to cost and time overruns in certain
projects in roads and elevated corridors in Transportation
Infrastructure, lower capacity utilization in Smart World &
Communications and Metallurgical & Material Handling
business.
Gross Revenue and OPM%
15.4%
a result of the mandate from Ministry of Environment,
Forest and Climate Change. However, in the main stream
of EPC jobs in coal based projects, the tender pipeline
during FY 2018-19 was quite thin.
R crore
4500 –
3000 –
Order Inflow
20.9%
2414
1500 –
86%
2067
2919
475
16%
2444
84%
14%
0 –
–
347
2017-18
–
2018-19
–
Domestic
International
Power segment revenue declined y-o-y by 35.8% to
R 3983 crore, on the back of declining order book and
delay in receipt of new awards. With pick up in execution
momentum for order received from Bangladesh in
previous year, composition of revenue from international
projects increased to 35% of total revenue for the
segment, from 24% in previous year.
Segment operating profit though reduced to R 177
crore from R 208 crore from previous year, the margins
improved from 3.4% in FY 2017-18 to 4.5% in FY 2018-
19 on higher proportion of international orders.
R crore
100000 –
80000 –
60000 –
40000 –
20000 –
0 –
–
29%
63417
18142
9.8%
71%
45275
73204
19109
26%
8.5%
54095
74%
2017-18
–
2018-19
–
Domestic
International
OPM %
R crore
8000 –
6000 –
4000 –
2000 –
0 –
–
Gross Revenue and OPM%
(35.8%)
6208
1468
24%
76%
4740
3.4%
2017-18
3983
1384
4.5%
2599
35%
65%
–
2018-19
–
The Funds employed by the segment at R 23940 crore
as at March 31, 2019 increased by 7.6% vis-à-vis March
31, 2018, reflecting larger scale of operations. Increase
in Gross Working Capital due to buildup of project
work-in-progress and increase in receivables was partially
compensated by better vendor credit management and
increase in customer advances on new order wins.
2. Power Segment
Power segment bagged orders worth R 2919 crore as
compared to R 2414 crore in the previous year. The
current year order inflow was mainly on back of domestic
orders won for Flue Gas Desulphurisation projects as
Domestic
International
OPM %
The Funds employed by the segment stood at R 1192
crore as at March 31, 2019 higher than R 844 crore as on
March 31, 2018 due to delay in collection of retention
amount in jobs nearing completion and higher carrying
value of Investment in Joint Ventures under Power Group,
consolidated through equity method under Ind AS.
3. Heavy Engineering Segment
Defence and Aerospace business which was part of Heavy
Engineering segment last year is reported as a separate
segment from the current financial year. Accordingly,
previous year figures have been regrouped wherever
necessary.
287
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW ANNUAL REPORT 2018-19
Heavy Engineering segment comprises of engineered-
to-order critical equipment, piping and systems for core
sector industries like fertiliser, petrochemical, refinery, oil
& gas, gasification, thermal and nuclear power.
Heavy Engineering segment recorded order inflow of
R 4049 crore for the year ending March 31, 2019, higher
by 78.1% as compared to the previous year. Growth
during the year was mainly driven by increased demand
for clean fuel projects complying with EUR6/BS-VI norms
and change in MARPOL regulation norms by 2020. With
significant orders received from EPC customers from
Europe & USA in oil & gas segment, share of orders from
international increased from 25% in previous year to 67%
in current year.
R crore
6000 –
4000 –
2000 –
0 –
–
Order Inflow
78.1%
2273
563
1710
25%
75%
2017-18
–
4049
2728
67%
1321
2018-19
33%
–
Domestic
International
Segment gross revenue of R 2514 crore registered a
growth of 53.7% compared to the previous year on
the back of improved order book coupled with good
execution progress in refinery, oil and gas equipment
business. Revenue from international operations
constituted 47% of the total revenue for the segment.
The segment recorded a significant increase in the
operating profit for the year at R 532 crore, registering
margin growth from 21.1% to 24.5% on accrual of other
income and write back of provisions that were no longer
required.
Gross Revenue and OPM%
53.7%
R crore
3000 –
2000 –
1000 –
1635
45%
738
55%
0 –
–
21.1%
897
2017-18
2514
1184
47%
24.5%
1330
53%
–
2018-19
–
Domestic
International
OPM %
Funds employed by the segment as on March 31, 2019
at R 2503 crore, registered an increase of 3% over the
288
previous year on additional capex and increase in working
capital to support increased business volume.
4. Defence Engineering Segment
Defence Engineering comprising Defence and Aerospace
business (part of Heavy Engineering Segment till end
FY 2017-18) & Shipbuilding business (part of “Others”
segment till end FY 2017-18) is being reported as a
separate segment since April 2018. Marine switchgear
business which was earlier part of Electrical & Automation
Segment is a part of the segment from October 2018
onwards.
Defence engineering segment recorded order inflow
of R 3016 crore for the year ending March 31, 2019,
lower by 18.6% as compared to the previous year due
to deferral of a major order in Shipbuilding business.
International orders constitutes 17% of the total order
inflows compared to 12% in the previous year.
Order Inflow
(18.6%)
3706
454
12%
R crore
4500 –
3000 –
1500 –
88%
3252
3016
506
17%
2510
83%
0 –
–
2017-18
–
2018-19
–
Domestic
International
Segment gross revenue of R 3849 crore improved by
19.5% compared to the previous year. Growth was mainly
contributed by better execution of certain defence order
partially offset by de-growth in Shipbuilding business.
Revenue from international operations constituted 9% of
the total revenue for the segment.
The operating margin improved from 8.2% in previous
year to 16.2% in current year upon accelerated progress
on a defence order and cost savings in a project in the
shipbuilding business.
Gross Revenue and OPM%
19.5%
R crore
5000 –
6%
2500 –
3220
183
3037
94%
8.2%
3849
332
16.2%
9%
3517
91%
0 –
–
2017-18
–
2018-19
–
Domestic
International
OPM %
Funds employed by the segment as on March 31, 2019 at
R 2862 crore decreased 8.1% y-o-y, on account of better
collections.
5. Electrical & Automation Segment (E&A)
E&A business recorded gross revenue of R 6094 crore
for the year, an increase of 10.6% over the previous
year. Revenue from international operations marginally
declined to 27% of the total revenues of the segment.
Segment operating profit for the year improved to R 1012
crore, a 23.1% increase over previous year. Operating
margins improved during the year by 150 basis points
to 17.5%, owing to better operational efficiencies and
favourable product mix.
R crore
7500 –
6000 –
4500 –
3000 –
1500 –
0 –
–
Gross Revenue and OPM%
10.6%
5508
28%
1546
16.0%
72%
3962
6094
1645
27%
17.5%
4449
73%
2017-18
–
2018-19
–
Domestic
International
OPM %
Funds employed at R 2280 crore marginally decreased by
1.3% y-o-y aided by better collections from customer
Segment performance is after adjusting performance
of marine switchgear business which was part of the
segment till September 2018, thereafter transferred
to Defence Engineering segment as a part of business
portfolio restructuring.
The Company entered into a definitive agreement 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. CCI approval, subject to certain
amendments details of which is awaited, is received. The
business transfer will be effected on acceptance of the
amendments and consequent completion of all formalities
and approvals.
6. Hydrocarbon Segment
to R 27871 crore during the year, driven by a number of
large value onshore orders, recording a growth of 76.3%.
The business achieved break through success in new
region – Algeria during the year, resulting in composition
of international orders increasing to 45% from 38% in
the previous year.
R crore
35000 –
28000 –
21000 –
14000 –
7000 –
0 –
–
Order Inflow
76.3%
15811
38%
5941
62%
9870
27871
12492
45%
15379
55%
2017-18
–
2018-19
–
Domestic
International
Segment revenue at R 15176 crore for the year grew
by 29.1% y-o-y, enabled by on time execution of large
orders in onshore and fast track projects in offshore
business. International revenue declined to 53% of the
total revenue of the segment as compared to 58% in
the previous year, due to reduced share of international
orders in opening order book and orders received during
the year are yet to pick up execution momentum.
Segment operating profit for the year improved to
R 1330 crore, with margins improving by 110 basis points
from 7.7% to 8.8% reflecting operational / execution
efficiencies.
R crore
18000 –
12000 –
6000 –
Gross Revenue and OPM%
29.1%
58%
11760
6769
7.7%
42%
4991
15176
7971
53%
8.8%
7205
47%
0 –
–
2017-18
–
2018-19
–
Domestic
International
OPM %
Hydrocarbon segment registered a strong performance
with large growth in order inflow and profitable revenue
growth. The segment secured fresh orders aggregating
Funds employed by the segment at R 2128 crore increased
by 53.6% as compared to March 31, 2018 reflecting
higher investible surplus.
289
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW ANNUAL REPORT 2018-19
7.
IT & Technology Services (IT & TS)
IT & TS segment comprises Larsen & Toubro Infotech
group of companies and Larsen & Toubro Technology
Services group of companies, which were listed in FY
2016-17. Segment recorded gross revenue of R 14553
crore for the year ended March 31, 2019 registering a
growth of 28.1% over the previous year. International
revenue constitutes a steady 90% the total revenue of the
segment.
The Segment Operating profit was at R 3336 crore for the
year 2018-19 as compared to R 2391 crore in the previous
year. Operating margin improved by 180 basis points
mainly on account of depreciation of rupee and better
operational efficiencies.
Gross Revenue and OPM%
28.1%
R crore
18000 –
12000 –
6000 –
11357
21.4%
14553
23.2%
0 –
–
2017-18
–
2018-19
–
Revenue
OPM %
The Funds employed by the segment at R 7071 crore as
at March 31, 2019 is higher by 31.4% as compared to
March 31, 2018 due to investment on acquisition of new
subsidiaries.
During the year, the company divested 7.5% stake in
L&T Infotech and 8.5% 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. L&T’s shareholding in LTI and LTTS as on
March 31, 2019 is 74.80% and 78.88% respectively.
8. Financial Services (FS)
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. Segment
revenue grew 25.6% y-o-y at R 12638 crore during the
year ended March 31, 2019 aided by growth in the loan
assets.
R crore
18000 –
Gross Revenue
25.6%
12638
12000 –
10064
6000 –
0 –
–
2017-18
–
2018-19
–
Disbursal of fresh Loans and Advances in Wholesale,
Real Estate, Micro Loans and Farm portfolio amounted to
R 58224 crore during the year ended March 31, 2019, a
decline of 13% y-o-y. The Asset Book stood at R 99121
crore as at March 31, 2019 recording a growth of 16%
y-o-y. The Net interest margins at 6.8% improved over
5.9% in the previous year.
Total Assets and NIM %
R crore
120000 –
100000 –
80000 –
60000 –
40000 –
20000 –
0 –
–
104842
6.8
86089
5.9
2017-18
–
Total Assets
2018-19
NIM%
–
The Gross Non-Performing Assets (GNPA) ratio decreased
from 8.7% (restated) as at March 31, 2018 to 5.9% as at
March 31, 2019. LTFH has been strengthening its balance
sheet throughout the year by building macro prudential
provisions for unanticipated future event risk, over and
above the expected credit losses on GS3 and standard
asset provisions. The coverage on GNPA is maintained at
61% (restated as per new RBI norms) for the year ended
March 31, 2019. Net NPA ratio has reduced to 2.40%
(restated) as at 31st March 2019 against 3.34% as on
31st March 2018.
LTFH also witnessed growth in its Investment & Wealth
Management businesses. Average Assets under
290
Management (AAUM) in Investment Management
business increased to R 70944 crore during the year
ended March 31, 2019, a growth of 8%. Average Assets
under Service (AAUS) in Wealth Management business
increased to R 28164 crore during the year ended March
31, 2018, registering a growth of 53% over the previous
year.
9. Developmental Projects (DP)
Development projects comprises concessions acquired
through competitive bidding process for the development
of Power projects, Roads, Bridges, Hyderabad Metro Rail
and a Power Transmission Line project. Total portfolio
of the group consists of 2 power projects, 10 roads &
bridges projects, 1 transmission line project & 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 developmental
projects, not considering the 3 hydel power projects
under hold, is pegged at R 42809 crore, for which equity
commitment is R 9256 crore with R 8411 crore having
been infused as at March 2019.
The segment recorded revenue of R 5068 crore for
the year ended March 31, 2019, higher as compared
to R 4294 crore in the previous year with pick up in
operational revenue on progressive commissioning of
Hyderabad Metro, sale of container port at Kattupalli and
higher revenue from Rajpura power plant.
The segment clocked operating profit of R 522 crore for
the year 2018-19, improving over R 270 crore earned
in FY 2017-18, on higher operational revenue from
Hyderabad Metro coupled with divestment gain on sale of
Kattupalli port which were partly offset by impairment in
hydel projects.
Gross Revenue & EBITDA
18.0%
5068
522
4294
270
R crore
7500 –
5000 –
2500 –
0 –
–
The Company received regulatory clearances and
divested its investment in a container port in Kattupalli,
Tamil Nadu. The company also transferred during the
year 5 road projects to IndInfravit, an investment trust,
sponsored by L&T IDPL limited.
10. “Others” Segment
Others Segment covers Realty, Construction and Mining
Machinery, Industrial machinery and Products and Valves
businesses. Metallurgical and Material Handling (MMH)
and Shipbuilding businesses, which were reported
under “Other” segment last year, now reported under
Infrastructure segment and Defence Engineering Segment
from April 1st, 2018 respectively. Accordingly, previous
year figures have been regrouped wherever necessary.
Revenue for the segment registered a growth of 33.5%
from R 4444 crore in 2017-18 to R 5935 crore in 2018-19
mainly from Realty business on recognition of revenue
on completed performances under the newly introduced
accounting standard for revenue recognition (Ind AS 115).
Construction Equipment and others has recorded growth
with higher demand for wheel loaders and compactors
and receipt of a major order in RPM business. Valves
business, despite growth in order intake, faced revenue
slowdown due to delay in customer clearances and supply
chain challenges. Operating margin declined as compared
to previous year mainly due to provisioning for inventory,
an unrecoverable advance in a project in Realty and write
off of sticky receivables and non-moving inventory in
valves business.
R crore
7500 –
5000 –
2500 –
Gross Revenue
33.5%
4444
1477
2967
5935
2994
2941
0 –
–
2017-18
–
2018-19
–
Industrial Machinery, Products & Others
Realty
II. L&T STANDALONE
PERFORMANCE REVIEW
2017-18
–
Gross Revenue
2018-19
EBITDA
–
L&T’s standalone financials captures the performance
of Infrastructure segment, Power, Heavy Engineering,
Defence Engineering, Electrical & Automation, Realty
291
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW ANNUAL REPORT 2018-19
and Others segment comprising, a part of Hydrocarbon
business and Construction & Mining Machinery business.
Realty business is a separate reportable segment for FY
2018-19, as it crossed the profit threshold.
L&T standalone continues to be major contributor to
topline as well as bottom-line of the group performance.
In line with group performance, the standalone
performance has equally delivered good performance on
all operational parameters.
The Company continued to focus on shareholder value
enhancement driven by operating margin improvement,
working capital reduction and unlocking of capital
earning sub-par returns.
Order Inflow and Order Book
Order inflow during 2018-19 grew by 6.8% at R 112508
crore as compared to R 105302 crore in the previous year.
Infrastructure segment contributed 82% of the total
order inflow during the year as compared to 85% in the
previous year. Power business registered growth with
receipt of awards for Flue Gas De-sulpharisation projects.
Heavy Engineering order inflow reported growth due
to step up of capex in overseas market. E&A business is
witnessing some pick up in industrial demand, mainly in
Electrical Standard Products which is reflected through
modest growth in order inflow.
International order inflow increased to 16% of the total
order inflow for 2018-19 as compared to 15% in the
previous year.
R crore
150000 –
125000 –
100000 –
75000 –
50000 –
25000 –
0 –
–
Order Inflow
6.8%
105302
15919
15%
112508
18083
16%
85%
89383
94425
84%
2017-18
–
2018-19
–
Domestic
International
Order Book as at March 31, 2019 stood at R 247023
crore, 88% of which is contributed by Infrastructure
segment. International orders constituted 16% of the
current order book. L&T continues to carry a healthy order
book to revenue ratio at 2.84 providing better visibility of
revenue over the medium term.
R crore
320000 –
240000 –
160000 –
80000 –
0 –
–
R crore
4720
2%
11259
5%
5368
2%
Order Book
8.6%
227523
40691
18%
82%
186832
247023
39452
16%
207571
84%
2017-18
–
2018-19
–
Domestic
International
Order Book Composition
4090
1.7%
1395
0.5%
Infrastructure
Power
Defence
Engineering
Heavy Engineering
Electrical &
Automation
Hydrocarbon
Realty
Others
943
0.4%
1354
0.4%
217894
88%
Total Order Book: R 247023 crore as at 31st March 2019
Revenue from Operations
L&T achieved revenue of R 86988 crore reflecting growth
of 16.6% over the previous year. The growth was mainly
driven by infrastructure projects in Transportation Infra,
Heavy Civil Infra, Power Transmission and Distribution
Infra and Water Effluent Treatment business.
Power segment revenue declined over the previous year
as a result of depleted order book. Defence engineering
segment registered growth of 13.6%, Electrical &
Automation grew by 11.6%.
Gross Revenue from Operations
16.6%
R crore
120000 –
90000 –
60000 –
22%
74612
16488
30000 –
78%
58124
86988
19190
22%
67798
78%
0 –
–
2017-18
–
2018-19
–
Domestic
International
292
Operating Cost and PBDIT
Manufacturing, Construction and Operating (MCO)
expenses, comprising cost of construction material, raw
materials, components and subcontracting expenses,
amounted to R 69903 crore registering an increase
of 19.2%. MCO expenses as percentage of revenue
increased by 180 basis point over the previous year mainly
due to cost overruns in some of the infrastructure projects
and increase in commodity prices.
Operating expenses & Profitability
2018-19
[% to revenue]
10.0%
(10.3%)
2.7%
(3.6%)
7.0%
(7.5%)
Mfg. Contruction &
Operating Expenses
Staff Expenses
Sales, Administration &
Other expenses
Operating Profit (PBDIT)
80.4%
(78.6%)
[Figures in brackets relate to previous year]
Staff expenses for the year at R 6082 crore increased by
8.3% y-o-y mainly due to increase in manpower strength
to 44761 as on March 31, 2019 compared to 42924 as at
March 31, 2018 and annual pay revisions.
Sales and administration expenses for the year at R 2318
crore decreased by 13.4% y-o-y, mainly due to lower
provision of doubtful debts.
Profit before depreciation, interest and tax excluding
other income (PBDIT) was R 8684 crore for the year,
higher by 12.8% over the previous year.
Depreciation and Amortization charge
Depreciation and amortization charge for the year 2018-
19 marginally increased by 1.8% and was at R 1068 crore,
as compared to R 1049 crore in the previous year.
Other Income
Other income mainly comprises income from company’s
treasury operations, dividends and income from group
companies. Other income for the year 2018-19 at R 2769
crore, increased as compared to R 1613 crore for the
previous year mainly due to higher earnings on larger
treasury investment and dividend from subsidiaries.
Finance cost
The interest expenses for the year at R 1641 crore were
higher by 14.6% vis-à-vis R 1432 crore for the previous
year. The increase is attributable to higher quantum of
interest bearing customer advances, increased borrowings
from group companies and higher interest on leave
liability due to decrease in discount rate. The average
borrowing cost for the year 2018-19 was majorly in line
with previous year at 7.6%.
Exceptional Items
Exceptional items of R 475 crore for the year 2018-19
include gain on dilution of stake in L&T Infotech and L&T
Technology Services and recovery of an outstanding under
Insolvency & Bankruptcy Code. The company provided for
impairment of its investment in a subsidiary and a JV.
Profit after Tax and EPS
Profit after Tax (PAT), including exceptional items, for the
year 2018-19 at R 6678 crore, registered a growth of
24% as compared to R 5387 crore in the previous year.
The Basic Earnings per Share (EPS) for the year 2018-19 at
R 47.63 showed significant growth compared to previous
year at R 38.46.
Profit After Tax
6678
5387
R crore
7500 –
6000 –
4500 –
3000 –
1500 –
0 –
–
2017-18
–
2018-19
–
Other comprehensive income (OCI)
Other Comprehensive income during year reflected a loss
of R 119 crore, vis-à-vis loss of R 51 crore in the previous
year, mainly due to impact of fair valuation of Corporate
Bonds.
Return on Net Worth
Net worth of the Company as on March 31, 2019 at
R 52551 crore increased by R 3377 as compared to the
position as on March 31, 2018 representing largely the
net earnings accretion, including gains on divestment of
stake in L&T Infotech, L&T Technology Services.
293
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW ANNUAL REPORT 2018-19
R crore
60000 –
50000 –
40000 –
30000 –
20000 –
10000 –
0 –
–
Return on Equity
49174
11.3
52551
13.2
Total borrowings as at March 31, 2019 stood at R 10192
crore as compared to R 10561 crore in the previous year.
Proportion of short term borrowings decreased to 36% as
compared to 39% as at March 2019. The loan portfolio
of the Company comprises a mix of domestic and suitably
hedged foreign currency loans. The gross debt equity ratio
decreased to 0.19:1 as at March 31, 2019 from 0.21:1 as
at March 31, 2018. The net debt equity ratio was nominal
at 0.04:1 as at March 31, 2019 same as previous year.
III. STRATEGY, BUSINESS MODEL AND RESOURCE
ALLOCATION
2017-18
–
2018-19
–
Strategy Formulation
Net Worth
RONW %
Return on Net worth (RONW) including exceptional items
for the year 2018-19 at 13.2% is higher as compared to
11.3% in the previous year.
Liquidity & Gearing
Business operations generated cash flows of R 2249
crore during the year as compared to R 2952 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,
divestment of stake in S&A companies, treasury income
and liquidation of other investments was mainly used for
investments in S&A Companies of R 1012 crore and capex
of R 786 crore, in addition to payment of dividend and
interest of R 2597 crore and R 1381 crore respectively,
besides loan repayment of R 483 crore.
Fund flow statement
Particulars
Operating activities
Net divestment/ (investment)
Treasury and dividend income
(Increase)/decrease in cash balance
ESOP Proceeds (net of buyback
expenses)
Sources of Funds
Capital expenditure (net)
Repayment of Borrowings (net of
additional borrovvings)
Purchase/(Sale) of Other
investments
Dividend paid
Interest paid
Utilisation of Funds
v crore
2018-19
2249
3169
1962
447
11
2017-18
2952
(1456)
3635
(1250)
50
7838
786
483
3931
1013
(62)
2591
(621)
2597
1381
7838
2279
1322
3931
294
Business strategy formulation underpins the Company’s
long-term growth plans. Strategic plan covers a period of
5 years through a collaborative and consultative process
across the organisation. In addition, given the emerging
trends in technology and digitalisation and emergence
of new business models, the company has embarked on
development of a Perspective Plan with a horizon of 7-10
years. The objective is to identify new businesses and
offerings that have significant potential to scale up, given
the underlying macro trends. The focus would be on
identifying new areas for expansion that would need to
be seeded now, so that they could evolve into large -scale
businesses over the long term.
The inputs from the Perspective Plan, the 5-year strategic
plan and broad financial goals are built into annual
budgets every financial year.
The current 5-year strategic plan sharply focused on
improvement in Return on Equity (RoE) ends in 2020-21.
Strategy Formulation Schematic
E
V
I
T
C
E
J
B
O
S
E
N
I
L
E
M
I
T
E
P
O
C
S
Perspective Plan
5 Year Strategic Plan
Operating Plan
• Long Term Business
Vision
• Assessing Global
Megatrends
• Assessment Of
Emerging
Technologies & New
Growth Opportunities
• New Growth
Initiatives
• Mid-Long term
Business Outlook
• Assessment of
Global and Domestic
Macro Environment
• 5 Year Business Plan
• Key Strategic
Initiatives
• Course Correction
• Annual Business Plan
• KPIs: Order Wins,
Revenues, Profits,
Working Capital and
Roe Targets
• Productivity Targets
7-10 Years
5 Years
Annual
• Business Portfolio
• Geographical Business
• Detailed Growth Plan
• Assessment Of Macro
Strategy
• Investment In
Emerging Businesses
• Organization Structure
• Leadership Pipeline
• Long Term Capex
Outlay
Investment
• Medium Term
Opportunities
• CRM Plan
• Employee
Engagement
• Annual Budgets
• Order Prospect
Pipeline
• Bid Management
Policies
• Key Account
Management
• Order Book Execution
• Strategic Partnerships
Plan
• Capex And Liquidity
Plan
• Quality Control
Business Model and Portfolio Strategy
The Company serves the Government and large corporate
customers across multiple sectors, both in India as well
as globally. The Realty and Financial Services businesses
provide B2C offerings as well in addition to B2B products/
services.
The Company focuses on its proven core competencies
of conceptualising, executing and commissioning
large, complex infrastructure projects in the areas of
Roads and Bridges, Power Transmission & Distribution,
Thermal, Hydel, Solar and Nuclear Power Plants, Water
and Irrigation Infrastructure, Residential, Commercial,
Institutional and Factory Buildings, Real Estate
Development, Airports, Metro and Conventional Railways,
Onshore and Offshore Hydrocarbon facilities and
Metallurgical projects. An integrated EPC (Engineering,
Procurement & Construction) business strategy forms
the backbone of the Company’s business portfolio. The
Company has also undertaken development projects such
as Hyderabad Metro, road operations and tolling (through
IDPL) and Nabha Power among others.
The diversified but cyclical nature of the EPC business is
counterbalanced through a portfolio of manufacturing
and services businesses. Manufacturing is mainly
concentrated around defence and shipbuilding, heavy
custom-built equipment catering to process industries,
electrical products and systems (made-to-stock and made-
to-order), material handling equipment and industrial
products & machinery. The services businesses cater to
sectors of Information Technology, Technology Services,
Smart World & Communication, Realty and Financial
Services.
The Company has extensive manufacturing facilities
at Hazira, Vadodara, Ahmednagar, Talegaon, Chennai,
Coimbatore, Kattupalli and Oman. Partnerships with
several large global process and technology licensors have
also been established. The construction projects follow
the EPC model, executing large, complex turnkey projects.
These are executed by deploying a combination of the
Company’s own employees and an extensive contract
workforce. The IT and Technology Services companies
also have extensive partnerships with established global
software product and technology companies.
The Company is increasingly leveraging digital solutions
and analytics across various parts of its businesses,
spanning areas such as remote asset management,
material tracking, employee productivity enhancement,
safety and procurement, among others.
The business portfolio spans across domestic and
international markets in line with the strategy of having a
well-balanced, geographically diversified business.
Business Portfolio Schematic:
Infrastructure
Energy
Transportation
Power Transmission & Distribution
• Buildings and Factories
• Heavy Civil
•
•
• Water & Effluent Treatment
• Metallurgical & Material Handling
• Hyderabad Metro
•
IDPL ( Road Tolling & Operations)
• Hydrocarbon Engineering
•
•
Power
Power Development (Nabha Power, Others)
Engineering,
Procurement &
Construction
Manufacturing
Services
• Defense and Shipbuilding
• Heavy Engineering
•
• Others (Valves, Construction & Mining
Electrical & Automation
Equipment, etc.)
Information Technology
Technology Services
Financial Services
Smart World & Communication
•
•
•
•
• Realty
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 and tactical elements such as:
•
•
Enabling growth of the profitable services segment
Incubating new businesses to tap future growth
opportunities – asset light, capex light, new-age
businesses
• Maintaining an optimum mix between domestic and
international business
•
Ensuring realisation of margins embedded in the
Order Book through execution, operational excellence
and digitalisation initiatives
• Unlocking Capital from asset earning sub par returns
In the first 3 years of the plan, RoE has improved from
9.9% in 2016-17 (base year) to 15.3% in 2018-19 and is
on course to achieve the target of 18% by 2021.
Resource Allocation
The Company has a well laid-out plan for resource
allocation to meet its strategic objectives. Strategic
initiatives include:
• Maintaining adequate liquidity on the Balance Sheet
to exploit organic and inorganic growth opportunities
and fund emerging businesses such as Smart City
295
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW ANNUAL REPORT 2018-19
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
•
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
Over the past decade, the Company institutionalized
an enterprise-wide Risk Management framework. The
framework provides process of identifying, quantifying
and mitigating risks which is well integrated with the
business of the Company. Guided by the Corporate
Risk Management framework, each business vertical
has in place a Risk Management Policy, structure and
procedures to cater to the unique nature of its business.
The Company’s risk management processes ensure that
the Company accepts risks as per the boundary conditions
based on the risk appetite of the organisation.
The Audit Committee of the Board and a board appointed
Apex Risk Management Committee (ARMC) oversee the
efficacy of the risk management processes. The risk level
of each business is discussed in detail in the respective
management / business Board meetings. The ARMC
is regularly informed of the critical risks affecting the
Company for their review and guidance. Mitigation plans
are drawn up and implemented as deemed appropriate
within the overall Enterprise Risk Management framework
of the company.
The risk management processes are developed especially
for project businesses, which constitute a larger portfolio
in the group. The key stages specifically covered by risk
reviews include country clearance in case of venturing
into a new country, pre-bid proposal clearance,
execution risk reviews and project close-out reviews.
Based on an authorization matrix as determined by
the Risk Management Committee, the proposals are
reviewed and cleared for submitting the bid. Execution
risk reviews of the projects are held at regular intervals
to track the project performance with an emphasis on
identification of risks and their mitigation. An evaluation
of the effectiveness of mitigation measures is periodically
carried out. Close-out risk reviews are held to capture key
learnings from the projects and what went right/wrong
analysis, which helps in factoring in the learnings while
making future bids. The principles of risk management
have been strongly embedded at various levels of the
organisation, with business treating it as an enabler and
not just a process to comply with.
The Company emphasises on continuous learning and
has initiated several initiatives to improve risk awareness
across the organization. These include workshops,
knowledge sessions and training content deployed on
online learning platforms.
The top enterprise-level risks for the Company and the
mitigation measures being implemented are:
Geopolitical Risks: The Company monitors the risks such
as sanctions, trade barriers, protectionist policies and
geopolitical conflicts. Appropriate mitigation strategies
are in place addressing geographical concentration,
strategic sourcing options, regular monitoring of
international sanctions and other economic measures.
Underperformance of key sectors: Growth in key
sectors like power, nuclear, defence and metals &
minerals, etc., could be impacted by a number of factors,
such as budgetary allocation, slow pace of decision-
making, lack of investment demand, green initiatives and
delays in environmental clearances. Being a diversified
conglomerate helps mitigate the risk of such a slowdown
in some sectors as we see compensating growth in certain
other sectors.
Competition: Competition from foreign and domestic
players has considerably increased in the past few
years. Customers have found it easier to impose less
attractive commercial terms and also shrink project
duration. The Company’s competitive strength is derived
from excellence in executing projects of varying sizes,
reputation for quality, technology, cost-effectiveness and
project management expertise.
Reputation and Brand: The Company addresses the
potential risk of erosion of reputation and brand value
through a strong corporate governance framework. It has
a Compliance Policy in place, mandating adherence to a
Code of Conduct and Internal Controls, complemented by
regular knowledge-sharing across the organisation.
Cyber security: As IT systems get increasingly inter-
connected, cyber security has become a key concern for
Governments and businesses. The Company has taken
several steps to mitigate the cyber risks. These include
roll-out of an enterprise-wide cyber security framework
that provides for technology solutions to enforce
296
detective and preventive controls and employee education
to create awareness of cyber risk.
Other Operational Risks:
Execution challenges: The Company faces execution
challenges like 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 ensure timely mitigation.
Counter Party Risks: The 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 is crucial for project success. Learnings
from the past projects are incorporated in the inter-se
agreements with the partners and clauses on liability of
each partner is carefully drafted after legal due diligence
is exercised.
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. It ensures regular follow-up
for delay in payments from clients, and has ensured
improvement in the 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.
FINANCIAL RISKS
Inflation remained broadly contained in India, however
growth concerns remained. Indian currency depreciated in
line with other emerging market currencies for the year.
Capital structure, liquidity and interest rate risks
The Company maintains a conservative capital structure.
Low gearing levels equip the Company to balance
business stresses on one hand and raise growth capital on
the other. This policy also provides flexibility for fund-
raising options in the future, which is especially important
in times of global economic volatility.
The US Dollar remained strong in 2018-19, primarily
on the back of strong growth divergence between the
US and rest of the world including emerging market
countries. While the Indian currency depreciated in line
with other emerging market currencies. The last quarter
of 2018-19 witnessed elevated financial market volatility
primarily due to fading impact of stimulus in the US and
emerging growth concerns in Europe and China. Inflation
in India remained broadly contained, though growth
concerns continued.
Despite the lower liquidity environment in FY 18-19 on
the back of slower consumer demand and sluggishness
around investments in the private sector, the Company
managed to restrain the working capital usage, both
at a gross and net level. The Company has been
investing capital into subsidiaries as scheduled and
also to optimise overall Group interest rate costs. The
Company also decided to use the surplus cash available
with it to acquire shares of Mindtree Limited from some
existing shareholders of Mindtree and launched an
open offer with an intent to acquire controlling stake in
the Company. The acquisition is in line with the stated
strategy of growing the Company’s services business;
however, the transaction is not expected to result in
material impact on gearing.
The Company plans to maintain adequate liquidity on
the Balance Sheet to deal with slow recovery / downturn
in economic conditions. With the implementation of the
Large Exposure Framework guidelines of RBI from April 1,
2019, the banking limits sanctioned by domestic banks
to any of the Group companies will need to fit within
25% of Tier 1 capital of banks v/s 40% of Tier 1 and Tier
2 capital prevalent till now. This is likely to constrain the
availability of bank limits (both fund-based and non-fund-
based) and also impact the pricing of the same for the
Group (unless some regulatory relaxation is granted) and
may have some adverse impact on the growth plans of
the Group.
The Company judiciously deploys its periodical surplus
funds in short-term investments in line with the Corporate
Treasury policy. The Company constantly monitors the
liquidity levels, economic and capital market conditions
and maintains access to the lowest cost 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.
297
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RevIew ANNUAL REPORT 2018-19
Foreign exchange and Commodity Price Risks
The businesses of the Company are exposed to
fluctuations in foreign exchange rates and commodity
prices. Additionally, it has exposures to foreign currency
denominated financial assets and liabilities. The business-
related financial risks, especially involving commodity
prices, by and large, are managed contractually through
price variation clauses, while the foreign exchange rate
risks and residual commodity price risks are managed by
treasury products.
The disclosure of commodity exposures as required under
clause 9(n) of Part C of Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015 in the format specified vide SEBI Circular dated
15th November 2018 is given on page 299 of this Annual
Report.
Financial risk management is governed by the Risk
Management framework and policy approved by the
Audit Committee and authorised by the Board. Financial
risks in each business portfolio are measured and
managed by corporate treasury.
Despite currency weakness and elevated financial market
volatility, the Company’s robust financial risk management
processes ensured financial costs remain under control.
v. INTeRNAL CONTROLS
At L&T, Internal Controls are a key pillar of Corporate
Governance. The Company has a robust Internal Control
framework in place, developed on COSO-model. The
framework provides for Internal Controls commensurate
with the nature, size and complexity of business both at
entity level and process level.
Internal Controls at L&T cover not only Disclosure and
Reporting systems and activities (“Internal Controls
on Financial Reporting”) but also the entire gamut
of business operations and processes (“Operational
Controls”) to meet the requirements of the Companies
Act, 2013. They are seen as an aid to efficient business
operations and not as a set of rules that circumscribe
authority. A well-defined Authorisation / Authority matrix
is at the heart of Internal Controls in the Organisation
to ensure that all transactions are genuine and are
authorised at appropriate level of management.
The responsibility for establishing, operating and
upgrading the internal controls system is on the executive
management assisted by Internal Control teams operating
at Corporate level as well as in the businesses. The teams
formulate and upgrade processes and standard operating
procedures on an ongoing basis and share best practices
across the organisation. The Corporate Audit department
is tasked with testing of internal controls (design as well
as operating effectiveness) and follow up for adequate
remedial actions where controls gaps and weaknesses are
observed. The Audit Committee guides and evaluates the
efficacy of the Corporate Audit function and reviews the
major observations each quarter.
Employees are guided by the ‘Code of Conduct’ that
reflects and reinforces the unique corporate culture
and values. A separate ‘Code of Conduct’ for Business
Partners seeks to ensure they align to Company’s values.
Whistleblower mechanism is an important element of the
internal control system encouraging both employees and
business partners to report genuine concerns, misconduct
or fraud without any fear of punishment or unfair
treatment. The operation of Whistleblower mechanism is
overseen by the Audit Committee.
298
Disclosure of commodity exposures as required under clause 9(n) of Part C of Schedule v of the SeBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
Sr
No
1
2
3
4
5
6
7
8
9
10
11
Commodity Name
Silver (Buy)
Copper (Buy)
Copper (Sell)
Steel (Buy)
exposure in
INR towards
the particular
commodity
(R crore)
exposure in
Quantity terms
towards the
particular
commodity
(Tn)
348.02
898.91
75.76
19,492.24
(550.25)
(12,224.00)
8,882.57
18,79,071.36
Aluminium (Buy)
800.93
48,661.81
Aluminium (Sell)
(121.36)
(9,200.00)
Iron Ore (Buy)
60.30
1,26,582.00
Coking Coal (Buy)
Zinc (Buy)
Lead (Buy)
59.26
52.82
55.79
52,122.00
2,740.00
3,928.80
Cement (Buy)
2,297.62
41,80,105.46
% of such exposure hedged through
commodity derivatives
Domestic market
International market
Total
OTC exchange
OTC exchange
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
51.18
100.00
–
60.89
20.27
55.35
55.27
81.75
73.86
–
–
–
–
–
–
–
–
–
–
–
–
–
51.18
100.00
–
60.89
20.27
55.35
55.27
81.75
73.86
–
299
Auditors’ report on Standalone Financial StatementS annUal RePoRt 2018-19
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 Audit of standalone Financial statements
opinion
We have audited the accompanying standalone financial statements of larsen & toubro limited (the “company”), which comprise the
Balance Sheet as at march 31, 2019, and the Statement of Profit and loss (including other comprehensive income), the Statement
of cash Flows and the Statement of changes in equity for the year then ended, and a summary of significant accounting policies and
other explanatory information and which includes 29 joint operations whose legal status is an entity.(Hereinafter referred to as the
“Standalone Financial Statements”).
in our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the companies act, 2013 (the “act”) in the manner so required and give a true and
fair view in conformity with indian accounting Standards prescribed under Section 133 of the act read with the companies (indian
accounting Standards) Rules 2015, as amended (“ind aS”) and other accounting principles generally accepted in india, of the state
of affairs of the company as at march 31, 2019 and its profit/loss, total comprehensive income/loss, its cash flows and the changes in
equity for the year ended on that date.
Basis for opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on auditing (Sas) specified under
section 143(10) of the companies act, 2013. our responsibilities under those Standards are further described in the auditor’s
Responsibilities for the audit of the Standalone Financial Statements section of our report. We are independent of the company
in accordance with the code of ethics issued by the institute of chartered accountants of india (icai) together with the ethical
requirements that are relevant to our audit of the standalone financial statements under the provisions of the companies act, 2013 and
the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the icai’s
code of ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion
on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. these matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
Revenue recognition – accounting for construction contracts
Key audit matter
description
there are significant accounting judgements including estimation of costs to complete, determining the
stage of completion and the timing of revenue recognition.
the company recognises revenue and profit/loss on the basis of stage of completion based on the
proportion of contract costs incurred at balance sheet date, relative to the total estimated costs of the
contract at completion. the recognition of revenue and profit/loss therefore rely on estimates in relation to
total estimated costs of each contract.
cost contingencies are included in these estimates to take into account specific uncertain risks, or disputed
claims against the company, arising within each contract. these contingencies are reviewed by the
management on a regular basis throughout the contract life and adjusted where appropriate.
300
Principal audit
Procedures
the revenue on contracts may also include variable consideration (variations and claims). Variable
consideration is recognised when the recovery of such consideration is highly probable.
Refer to note number. 1(e) of the Standalone Financial Statements
our procedures included :
•
•
•
•
•
•
testing of the design and implementation of controls involved for the determination of the estimates
used as well as their operating effectiveness;
testing the relevant information technology systems’ access and change management controls relating
to contracts and related information used in recording and disclosing revenue in accordance with the
new revenue accounting standard;
testing a sample of contracts for appropriate identification of performance obligations;
For the sample selected, reviewing for change orders and the impact on the estimated costs to
complete;
engaging technical experts to review estimates of costs to complete for sample contracts; and
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings
assessment of the carrying value of unquoted equity instruments in loss making subsidiaries and joint ventures.
Key audit matter
description
the impairment review of unquoted equity instruments and debt, with a carrying value of R 2,669 crore,
is considered to be a risk area due to the size of the balances as well as the judgmental nature of key
assumptions, which may be subject to management override.
the carrying value of such unquoted equity instruments and debt is at risk of recoverability. the net worth of
the underlying entities has significantly eroded and the orders in hand are below the break-even production
levels of this facilities. the estimated recoverable amount is subjective due to the inherent uncertainty
involved in forecasting and discounting future cash flows.
Principal audit
Procedures
Refer to note number 1(j) of the Standalone Financial Statements
Besides obtaining an understanding of management’s processes and controls with regard to testing the
impairment of the unquoted equity instruments in loss making subsidiaries and joint ventures.
our procedures included the following:
•
•
•
•
•
engaged internal fair valuation experts to challenge management’s underlying assumptions and
appropriateness of the valuation model used;
compared the company’s assumptions with comparable benchmarks in relation to key inputs such as
long-term growth rates and discount rates;
assessed the appropriateness of the forecast cash flows within the budgeted period based on their
understanding of the business and sector experience;
considered historical forecasting accuracy, by comparing previously forecasted cash flows to actual
results achieved; and
Performed a sensitivity analysis in relation to key assumptions.
Revenue recognition and measurement of contract assets in respect of un-invoiced amounts and measurement of receivables in
respect of overdue invoices.
Key audit matter
description
the company, in its contract with customers, promises to transfer distinct services to its customers
which may be rendered in the form of engineering, procurement and construction (ePc) services through
design-build contracts, and other forms of construction contracts. the recognition of revenue is based on
contractual terms, which could range from cost plus fee to agreed unit price to lump-sum arrangements.
at each reporting date, revenue is accrued for costs incurred against work performed that may not have
been invoiced. identifying whether the company’s performance have resulted in a service that would be
billable and collectable where the works carried out have not been acknowledged by customers as of the
reporting date, or in the case of certain defence contracts, where the evidence of work carried out and
cost incurred are covered by confidentiality arrangements involves a significant amount of judgment.
301
Auditors’ report on Standalone Financial StatementS
annUal RePoRt 2018-19
•
•
Recognition of revenue before formal acknowledgment of receipt of services by the customer could
lead to an over or under-statement of revenue and profit, whether intentionally or in error; and
assessing the recoverability of amounts overdue against invoices raised which have remained
unsettled for a significantly long period after the end of the contractual credit period also involves a
significant amount of judgment.
Refer to note number 1(e) and 1(m) of the Standalone Financial Statements
Principal audit Procedures the procedures performed included the following:
•
•
•
•
•
•
•
•
obtained an understanding of the company’s processes in collating the evidence supporting
execution of work for each disaggregated type of revenue. auditors have also obtained an
understanding of the design of key controls for quantifying units of items / services that would be
invoiced and the application of appropriate prices for each of such services;
tested the design and operating effectiveness of management’s key controls in collating the units of
services delivered and in the application of accurate prices for each of such services for samples of
the un-invoiced revenue entries, which included testing of access and change management controls
exercised in respect of related information systems;
tested samples of un-invoiced revenue entries with reference to the reports from the information
system that records the costs incurred against the services delivered to confirm the work performed
and application of appropriate margin applied for the respective services. the auditors have also
tested whether appropriate adjustments have been made for the element of variable consideration
related to committed service levels of performance. With regard to incentives, auditors tests were
focused to ensure that accruals were restricted to only those items where contingencies were
minimal;
tested cut-offs for revenue recognized against un-invoiced amounts by matching the revenue accrual
against accruals for corresponding cost;
For defence contracts which are covered under by statutory confidentiality arrangements, the
auditors have compared the revenue recognised with amounts collected from customers to ensure
that the gap between revenue recognised and collections is below the materiality threshold;
extended the testing upto the date of approval of financial statements by the Board of directors
of the Parent entity to verify adjustments, if any, that may have been necessary upon receipt of
approvals from customers for services delivered prior to the reporting date and/or collections there
against;
Reviewed the delivery and collection history of customers against whose contracts un-invoiced
revenue is recognised; and
Verification of subsequent receipts, post balance sheet date.
evaluation of uncertain tax positions
Key audit matter
description
the company has material uncertain tax positions including matters under dispute which involves
significant judgment to determine the possible outcome of these disputes.
Principal audit Procedures our procedures included the following:
Refer to note. number 1(u) and 1(w) of the Standalone Financial Statements
•
•
obtained understanding of key uncertain tax positions;
obtained details of completed tax assessments and demands for the year ended march 31, 2019
from the management;
• We along with our internal tax experts –
i.
discussed with appropriate senior management and evaluated the management’s underlying
key assumptions in estimating the tax provision;
ii. assessed management’s estimate of the possible outcome of the disputed cases; and
iii. considered legal precedence and other rulings in evaluating management’s position on these
uncertain tax positions.
•
additionally, considered the effect of new information in respect of uncertain tax positions as at
april 1, 2018 to evaluate whether any change was required to management’s position on these
uncertainties.
302
information other than the standalone Financial statements and Auditor’s report
the respective Board of directors of the company and its Joint operation companies are responsible for the preparation of other
information. the other information comprise the information included in the management discussion and analysis, Board’s Report
including annexures to Board’s Report, Business Responsibility Report, corporate Governance and Shareholder’s information, but does
not include the standalone financial statements and our auditor’s report.
our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
in connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated.
if, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
management’s responsibility for the standalone Financial statements
the company’s Board of directors is responsible for the matters stated in section 134(5) of the companies act, 2013 (the “act”) with
respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial
performance, total comprehensive income, cash flows and changes in equity of the company including its joint operation companies in
accordance with the ind aS and 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 financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error.
in preparing the standalone financial statements, management is responsible for assessing the company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
those Board of directors are also responsible for overseeing the company’s financial reporting process.
Auditor’s responsibility for the Audit of the standalone Financial statements
our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with Sas will always detect a material misstatement
when it exists. misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
as part of an audit in accordance with Sas, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
•
•
•
•
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. the risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the act, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls systems in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on company’s ability
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Auditors’ report on Standalone Financial StatementS
annUal RePoRt 2018-19
to continue as a going concern. if we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the company to cease to continue as a going concern.
•
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its joint operations to express
an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit
of the standalone financial statements of such entities included in the standalone financial statements.
materiality
materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
Communication with those charged with governance
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
other matters
(a) We did not audit the financial information of 24 joint operations included in the standalone financial statements whose financial
information reflect total assets of R 4,540.71 crore as at march 31, 2019, total revenues of R 6,018.63 crore and net cash outflows
amounting to R 170 crore for the year ended on that date, as considered in the standalone financial statements. the financial
information of these joint operations have been audited by the other auditors whose reports has 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 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 these matters.
(b) the standalone financial statements also includes the financial information of 4 joint operations which have not been audited
by their auditors, whose financial information reflect total assets of R 41.12 crore as at march 31, 2019 and total revenues of
R 4.99 crore and net cash outflows amounting to R 0.13 crore for the year ended on that date, as considered in the standalone
financial statements. the financial information of these joint operations has been unaudited and has been furnished to us by
the management and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures
included in respect of these joint operations, is based solely on such unaudited financial information which is certified by
management. in our opinion and according to the information and explanation given to us by the management, the financial
information of these joint operations are not material to the company.
report on other Legal and regulatory requirements
as required by the companies (auditor’s Report) order, 2016 (“the order”), issued by the central Government of india in terms of sub-
section (11) of section 143 of the companies act, 2013, we give in the annexure a statement on the matters specified in paragraphs 3
and 4 of the order, to the extent applicable
as required by Section 143(3) of the act, we report 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.
304
b)
c)
d)
in our opinion, proper books of account as required by law have been kept by the company so far as it appears from our
examination of those books.
the Balance Sheet, the Statement of Profit and loss, and the cash Flow Statement dealt with by this Report are in agreement with
the books of account.
in our opinion, the aforesaid standalone financial statements comply with the accounting Standards specified under Section 133
of the act, read with Rule 7 of the companies (accounts) Rules, 2014.
e) on the basis of the written representations received from the directors as on march 31, 2019 taken on record by the Board of
directors, none of the directors is disqualified as on march 31, 2019 from being appointed as a director in terms of Section 164 (2)
of the act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating
effectiveness of such controls, refer to our separate Report in “annexure a”.
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, in our opinion and to the best of our information and according to the explanations given to us:
i.
ii.
the company has disclosed the impact of pending litigations on its financial position in its financial statements;
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;
iii. there has been no delay in transferring amounts, required to be transferred, to the investor education and Protection Fund by
the company.
For deLoitte HAsKiNs & seLLs LLp
chartered accountants
(Firm Registration no. 117366W/W-100018)
sANjiv v. piLgAoNKAr
(Partner)
(membership no. 039826)
mUmBai, may 10, 2019
ANNeXure “A” to tHe iNdepeNdeNt Auditor’s report
(Referred to in paragraph 1 (f) under ‘Report on other legal and Regulatory Requirements’ section of our report of even date)
report on the internal Financial Controls over Financial reporting under Clause (i) of sub-section 3 of section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of larsen & toubro limited (the “company”) as at march 31,
2019 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, which is applicable to 1 of the 29 joint operations, being a company
incorporated in india audited by another auditor.
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
305
Auditors’ report on Standalone Financial StatementS
annUal RePoRt 2018-19
audit of internal Financial controls over Financial Reporting (the “Guidance note”) issued by the institute of chartered accountants
of india and the Standards on auditing prescribed under Section 143(10) of the companies act, 2013, to the extent applicable to an
audit of internal financial controls. those Standards and the Guidance note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. the procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditor of the joint operation,
which is a company incorporated in india, in terms of their report referred to in the other matters 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, 2019, 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
corresponding report of 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)
sANjiv v. piLgAoNKAr
(Partner)
(membership no. 039826)
mUmBai, may 10, 2019
306
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
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 are held in the name of the company as at the balance sheet date, except the
following:
v crore
type of asset
total no. of
cases
Leasehold /
freehold
gross block as at
march 31, 2019
Net block as at
march 31, 2019
remarks
land
Buildings
3
2
Freehold
Freehold
1.27
3.53
1.27
0.59
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.
(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 companies act, 2013 (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, 2019 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, Goods and Service tax, customs duty, cess and other material statutory dues applicable to it to the
appropriate authorities.
(b) there were no undisputed amounts payable in respect of Provident Fund, employees’ State insurance, income-tax, Goods and
Service tax, customs duty, cess and other material statutory dues in arrears as at march 31, 2019 for a period of more than
six months from the date they became payable.
307
Auditors’ report on Standalone Financial StatementS
annUal RePoRt 2018-19
(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, 2019 on account of disputes are given below:-
Name of
statute
Nature of dues
period to which
Amount relates
Forum
where
dispute is
pending
classification dispute and other
matters
Supreme
court
2002-2003, 2003-
2004, 2011-12 to
2015-16
Amount
involved
(v crore)
Amount
unpaid
(v crore)
7.34
6.79
the central
excise
act,1944,
Service tax
under Finance
act, 1994 and
customs act,
1962
the central
Sales tax act,
entry tax, local
Sales tax act,
Works contract
tax act and
Goods &
Services tax act
308
dispute regarding questions of law,
classification dispute and other
matters
disallowance of cenVat credit,
short payment of service tax,
mRP Valuation disputes, dispute
regarding classification of services,
disallowances of excise duty
exemption, non maintenance of
Separate Books of accounts, export
rebate disallowance, and other
matters.
disallowance of cenVat credit,
short payment of service tax ,service
tax rate dispute, valuation dispute
and other matters
taxability of sub-contractor
turnover, rate of tax for declared
goods, disallowance of labour
turnover and non- submission of
forms
dispute regarding questions of law,
classification dispute, local Vat and
Works contract disputes.
non submission of Forms,
classification disputes, inter-state
sale turnover, Rate of tax of
declared goods, labour & service
charges disallowed, disallowance
of exemptions claimed for imports
& Sales in transit, Sale mismatch
& levy of tax on import of goods
through Way bill, Road permit issue
and other matters
dispute regarding questions of
law, classification dispute, sales
in transit, high sea sales, non-
submission of c forms & e1 forms,
disallowance of itc, valuation of
goods and other matters
High court
2003-04 to 2012-13
114.28
85.25
ceStat
1991-92, 2001-02 to
2013-14, 2016-17
303.46
297.35
commissioner
(appeal)
2006-07 to 2012-13
7.27
6.13
Supreme
court
2000-01 to 2006-07,
2010-11
16.07
7.03
High court
Sales tax/Vat
tribunal
1986-87, 1987-88,
1993-94, 1994-95,
1999-00 to 2012-13
1989-90, 1991-92,
1993-94 to 1996-97,
1999-00 to 2015-16
71.55
65.18
593.04
510.07
commissioner
(appeal)
1999-00 to 2015-16
31.92
30.66
additional
commissioner
2005-06, 2007-08 to
2014-15
4.08
3.10
Joint
commissioner
Joint
commissioner
(appeal)
2007-08 to 2015-16
14.04
10.00
1995-96, 1996-97,
1999-00 to 2017-18
2,443.83
2,377.28
Name of
statute
Nature of dues
the central
Sales tax act,
entry tax, local
Sales tax act,
Works contract
tax act and
Goods &
Services tax act
dispute regarding questions of
law, classification dispute, sales
in transit, high sea sales, non-
submission of c forms & e1 forms,
disallowance of itc, valuation of
goods and other matters
period to which
Amount relates
Amount
involved
(v crore)
Amount
unpaid
(v crore)
1996-97 to 2017-18
531.73
528.68
1996-97 to 2016-17
8.80
8.22
Forum
where
dispute is
pending
assistant/
deputy
commissioner
assessing /
commercial
tax officer
income tax act,
1961
demand arising out of Regular
assessment/Reassessment
itat
2004-05 & 2009-10 to
2012-13
1,066.36
287.60
demand arising out of Regular
assessment/Reassessment
cit(a)
2015-16
569.35
569.35
(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)
sANjiv v. piLgAoNKAr
(Partner)
(membership no. 039826)
mUmBai, may 10, 2019
309
BALANCe SHeet annUal RePoRt 2018-19
Balance sheet as at march 31, 2019
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 31-3-2019
v crore
v crore
as at 31-3-2018
v crore
v crore
2
2
3
4
4
5
6
7
49(e)
8
9
10
11
12
13
14
15
16
42
20139.47
1732.65
577.00
4694.98
28216.82
2733.41
4866.08
1293.86
1995.18
6571.93
580.92
381.26
228.52
171.69
22449.12
841.86
3347.25
3220.44
6272.46
452.10
474.98
193.09
200.77
25116.93
400.62
3093.34
2500.05
22994.26
1684.13
438.54
4344.98
22917.45
3183.75
1134.31
992.33
3441.59
43800.33
44090.65
41.72
125725.69
36014.41
40499.93
388.00
115606.68
310
Balance sheet as at march 31, 2019 (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:
due to micro enterprises and small enterprises
due to others
other financial liabilities
other current liabilities
Provisions
current tax liabilities(net)
totAL eQuitY ANd LiABiLities
Note
as at 31-3-2019
v crore
v crore
as at 31-3-2018
v crore
v crore
17
18
19
20
21
22
23
24
25
26
27
28
280.55
52270.17
280.27
48893.98
52550.72
49174.25
2391.87
53.75
5495.16
108.64
2445.62
497.62
0.58
5603.80
472.87
1.27
3668.25
4131.45
201.86
36076.36
1857.85
4129.57
936.27
137.71
30957.29
1878.00
45935.77
22550.64
1423.83
320.91
125725.69
38038.84
20845.46
1102.22
367.97
115606.68
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
SanJiV V. PilGaonKaR
Partner
membership no. 39826
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. m. cHitale
(din 00101004)
SUnita SHaRma
(din 02949529)
mumbai, may 10, 2019
n. HaRiHaRan
company Secretary
m. no. a3471
ViKRam SinGH meHta
(din 00041197)
SanJeeV aGa
(din 00022065)
n. KUmaR
(din 00007848)
directors
311
stAtemeNt oF PRoFit and loSS annUal RePoRt 2018-19
statement of profit and Loss for the year ended march 31, 2019
2018-19
2017-18
Note
v crore
v crore
v crore
v crore
31
32
33
34
35
36
46
86987.86
2768.84
89756.70
74611.65
1612.67
76224.32
7832.79
–
29099.38
1786.14
2341.99
22021.74
(1296.12)
8117.47
7942.99
149.10
22236.60
1531.22
1808.79
19620.99
(1047.41)
6378.22
69903.39
6082.49
2319.78
1641.39
1067.95
81015.00
1.54
81013.46
8743.24
474.93
9218.17
58620.50
5614.74
2680.73
1432.23
1049.46
69397.66
5.19
69392.47
6831.85
430.53
7262.38
1875.08
5387.30
5387.30
49(a)
49(a)
2687.22
(146.75)
1974.07
(98.99)
2540.47
6677.70
6677.70
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, stock-in-trade
and work-in-progress
other manufacturing, construction and operating expenses
employee benefits expense
Sales, administration and other expenses
Finance costs
depreciation, amortisation, impairment and obsolescence
less: overheads capitalised
total expenses
profit before exceptional items and tax
exceptional items
profit before tax
tax expenses
current tax
deferred tax
profit after tax
carried forward
312
statement of profit and Loss for the year ended march 31, 2019 (contd.)
2018-19
Note
v crore
v crore
6677.70
2017-18
v crore
v crore
5387.30
Brought forward
other Comprehensive income
A
items that will not be reclassified to profit or Loss :
Gain/(loss) on remeasurements of the defined benefits plan
income tax (expenses)/income on remeasurements of the defined
benefits plan
B
items that will be reclassified to profit and Loss
debt instruments through other comprehensive income
income tax (expenses)/income on debt instruments through other
comprehensive income
exchange differences in translating the financial statements of
foreign operations
income tax (expenses)/income on exchange differences in translating
the financial statements of foreign operations
effective portion of gains/(losses) on hedging instruments in a
cash flow hedge
income tax (expenses)/income on effective portion of gains/(losses)
on hedging instruments in a cash flow hedge
cost of hedging reserve
income tax (expenses)/income 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
(31.30)
10.94
(78.85)
16.68
9.31
(3.25)
(89.27)
30.59
25.39
(8.87)
3.82
(1.32)
(20.36)
2.50
0.27
(11.12)
(62.17)
(10.85)
(1.41)
0.49
6.06
(0.92)
(64.52)
22.40
0.59
(0.14)
(42.12)
0.45
(50.94)
5336.36
38.46
38.37
2.00
(58.68)
16.52
(118.63)
6559.07
47.63
47.54
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
SanJiV V. PilGaonKaR
Partner
membership no. 39826
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. m. cHitale
(din 00101004)
SUnita SHaRma
(din 02949529)
mumbai, may 10, 2019
n. HaRiHaRan
company Secretary
m. no. a3471
ViKRam SinGH meHta
(din 00041197)
SanJeeV aGa
(din 00022065)
n. KUmaR
(din 00007848)
directors
313
stAtemeNt oF cHanGeS in eqUitY annUal RePoRt 2018-19
statement of changes in equity for the year ended march 31, 2019
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 alloted during the year
2018-19
2017-18
number of
shares
1,40,13,69,456
13,59,929
v crore
280.27
0.28
number of
shares
93,29,65,803
16,38,898
46,67,64,755
issued, subscribed and fully paid up equity shares outstanding at the end of the year
1,40,27,29,385
280.55 1,40,13,69,456
B. other equity
Particulars
Balance as at 1-4-2017
Profit for the year (a)
Other Comprehensive Income (b)
Total Comprehensive Income for the year (a+b)
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 amalgamation [refer note 60(b)]
Applications during the year
Dividend paid for the previous year
Dividend distribution tax paid for the previous year
Balance as at 31-3-2018
Change in accounting policy [Ind AS 115]
[Note 48(h) & 1(e)]
Restated balance as at 1-4-2018
Profit for the year (c)
Other Comprehensive Income (d)
Total Comprehensive Income for the period (c+d)
Issue of equity shares
Transfer to non- financial assets/liability
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 31-3-2019
in terms of our report attached
For deloitte HaSKinS & SellS llP
chartered accountants
Firm's Registration no.117366W/W-100018
by the hand of
SanJiV V. PilGaonKaR
Partner
membership no. 39826
314
mumbai, may 10, 2019
Share
application
money
pending
allotment
Equity
component
of foreign
currency
convertible
bonds
Reserves and surplus
Capital
reserve
Capital
reserve on
business
combination
Securities
premium
Employee
share
options
(net)
Debenture
redemption
reserve
–
–
–
–
–
–
–
–
–
–
3.56
–
–
3.56
3.56
–
–
(3.56)
–
–
–
–
–
–
153.20
–
–
–
–
–
–
–
–
–
–
–
–
–
153.20
153.20
–
–
–
–
–
–
–
–
–
153.20
10.52
–
–
–
–
–
–
–
–
–
–
–
–
–
10.52
10.52
–
–
–
–
–
–
–
–
–
10.52
8318.85
–
–
–
137.63
–
(0.13)
(93.35)
0.02
–
–
–
8363.02
8363.02
–
–
–
108.97
–
–
–
–
–
8471.99
–
–
–
–
–
–
–
–
–
(6.36)
–
–
–
(6.36)
(6.36)
–
–
–
–
–
–
–
–
–
(6.36)
177.25
–
–
–
–
–
–
–
(21.66)
(47.00)
–
–
–
–
108.59
108.59
–
–
–
–
–
(12.13)
10.45
106.91
356.76
–
–
–
–
–
–
–
102.18
–
–
–
–
–
458.94
458.94
–
–
–
–
–
(18.68)
–
–
–
440.26
General
reserve
25373.60
–
–
–
–
–
–
21.66
–
0.52
–
–
–
25395.78
25395.78
–
–
–
–
–
112.13
–
–
–
25507.91
Hedging
reserve
Foreign
currency
translation
reserve
Items of Other Comprehensive Income
Debt
instruments
through
Other
Comprehen-
sive Income
65.78
–
(10.85)
(10.85)
–
–
–
–
144.11
–
(41.67)
(41.67)
–
(0.28)
–
–
0.55
–
(0.92)
(0.92)
–
–
–
–
Retained
earnings
11225.53
5387.30
2.50
5389.80
–
–
–
–
(102.18)
–
15.55
–
(1960.76)
(317.93)
14250.01
(701.58)
13548.43
6677.70
(20.36)
6657.34
–
–
(81.32)
(2243.18)
(353.60)
17527.67
–
–
–
–
–
–
(0.37)
(0.37)
–
6.06
6.06
–
–
–
–
–
–
5.69
–
–
–
–
–
–
102.16
102.16
–
(42.16)
(42.16)
–
(0.38)
–
–
–
–
59.62
–
–
–
–
–
–
54.93
54.93
–
(62.17)
(62.17)
–
–
–
–
–
–
(7.24)
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)
n. HaRiHaRan
company Secretary
m. no. a3471
ViKRam SinGH meHta
(din 00041197)
SanJeeV aGa
(din 00022065)
directors
m. m. cHitale
(din 00101004)
SUnita SHaRma
(din 02949529)
n. KUmaR
(din 00007848)
v crore
186.59
0.33
93.35
280.27
v crore
Total other
equity
45826.15
5387.30
(50.94)
5336.36
137.63
(0.28)
(0.13)
(93.35)
–
(47.00)
9.73
3.56
(1960.76)
(317.93)
48893.98
(701.58)
48192.40
6677.70
(118.63)
6559.07
105.41
(0.38)
–
10.45
(2243.18)
(353.60)
52270.17
statement of Cash Flows for the year ended march 31, 2019
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
expenditure on buyback
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:
expenditure on acquisition of fixed assets
Sale of fixed assets (including advance received)
investment in subsidiaries, associates and joint venture companies
divestment of stake in subsidiaries, associates and joint venture companies
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
deposits/loans (given) - subsidiaries, associates, joint venture companies and third parties
deposits/loans repaid - subsidiaries, associates, joint venture companies and third parties
advance given towards equity commitment (addition)
interest received
dividend received from subsidiaries and joint venture companies
dividend received from other investments
Settlement of derivative contracts related to current investments
Net cash (used in)/from investing activities
2018-19
v crore
2017-18
v crore
8743.24
6831.85
(1512.12)
1067.95
(67.59)
3.64
17.38
1641.39
(499.95)
(594.24)
(251.15)
22.60
74.70
8645.85
(9810.89)
(345.65)
6444.64
4933.95
(2684.73)
2249.22
(1571.41)
785.16
(469.84)
4181.49
(17.49)
3.82
1146.61
(3702.01)
(12969.83)
12427.56
–
452.57
1330.60
178.70
(22.60)
1753.33
(3228.67)
1049.46
(19.71)
1.66
–
1432.23
(496.89)
(60.18)
2233.22
125.74
69.77
7938.48
(12269.46)
(705.73)
9753.03
4716.32
(1764.32)
2952.00
(1136.78)
123.32
(3420.51)
1068.38
(75.00)
–
375.80
370.98
(12708.16)
13698.56
(19.45)
439.88
502.51
2693.08
(125.74)
1786.87
315
stAtemeNt oF caSH FloWS annUal RePoRt 2018-19
statement of Cash Flows for the year ended march 31, 2019 (contd.)
C. Cash flow from financing activities:
Proceeds from fresh issue of share capital (including share application money)[net]
Proceeds from non-current borrowings [note 62]
Repayments of non-curent 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 {2017-18: included R 0.09 crore
transferred under scheme of amalgamation [Note 60(b)]}
2018-19
v crore
11.31
789.05
(974.33)
(606.49)
308.95
(2243.18)
(353.60)
(1380.96)
(4449.25)
(446.70)
3187.75
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
Cash and cash equivalents at end of the year
2741.05
3187.75
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 bank balances disclosed under non-current assets [note 7]
total Cash and cash equivalents as per Balance sheet
add : Unrealised exchange (gain)/loss on cash and cash equivalents
less : other bank balances disclosed under current assets [note 13]
less : cash and bank balances 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.
2018-19
v crore
2733.41
4866.08
289.76
7889.25
7.64
4866.08
289.76
2741.05
2017-18
v crore
3183.75
1134.31
319.52
4637.58
4.00
1134.31
319.52
3187.75
in terms of our report attached
For deloitte HaSKinS & SellS llP
chartered accountants
Firm's Registration no.117366W/W-100018
by the hand of
SanJiV V. PilGaonKaR
Partner
membership no. 39826
mumbai, may 10, 2019
316
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. m. cHitale
(din 00101004)
SUnita SHaRma
(din 02949529)
n. HaRiHaRan
company Secretary
m. no. a3471
ViKRam SinGH meHta
(din 00041197)
SanJeeV aGa
(din 00022065)
n. KUmaR
(din 00007848)
directors
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 the 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 its meeting held on may 10, 2019.
(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:
(i)
(ii)
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
(iii) 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
the company has adopted ind aS 115 “Revenue from contracts with customers” effective april 1, 2018. ind aS 115 supersedes
ind aS 11 “construction contracts” and ind aS 18 “Revenue”. the company has applied ind aS 115 using the modified
retrospective method and the cumulative impact of transition to ind aS 115 has been adjusted against the Retained earnings as at
april 1, 2018. accordingly, the figures of the previous year are not restated under ind aS 115.
the company recognises revenue from contracts with customers when it satisfies a performance obligation by transferring
promised good or service to a customer. the revenue is recognised to the extent of transaction price allocated to the performance
obligation satisfied. Performance obligation is satisfied over time when the transfer of control of asset (good or service) to a
customer is done over time and in other cases, performance obligation is satisfied at a point in time. For performance obligation
satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance
obligation. the progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost
attributable to the performance obligation.
317
Notes FoRminG PaRt oF tHe Financial StatementS annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
transaction price is the amount of consideration to which the company expects to be entitled in exchange for transferring good
or service to a customer excluding amounts collected on behalf of a third party. Variable consideration is estimated using the
expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are
as per business practice and there is no financing component involved in the transaction price.
costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in Profit & loss
immediately in the period in which such costs are incurred. incremental costs of obtaining a contract, if any, and costs incurred to
fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a
proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.
Significant judgments are used in:
1. determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue
recognition is done by measuring the progress towards complete satisfaction of performance obligation. the progress is
measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance
obligation.
2. determining the expected losses, which are recognised in the period in which such losses become probable based on the
expected total contract cost as at the reporting date.
(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. Revenue from sale of goods including contracts for supply/commissioning of complex plant and equipment is recognised
as follows:
Revenue from sale of manufactured and traded goods is recognised when the control of the same is transferred to the
customer and it is probable that the Group will collect the consideration to which it is entitled for the exchanged goods.
Performance obligations in respect of contracts for sale of manufactured and traded goods is considered as satisfied
at a point in time when the control of the same is transferred to the customer and where there is an alternative use of
the asset or the company does not have either explicit or implicit right of payment for performance completed till date.
in case where there is no alternative use of the asset and the company has either explicit or implicit right of payment
considering legal precedents, performance obligation is considered as satisfied over a period of time and revenue is
recognized over time.
B. Revenue from construction/project related activity is recognised as follows:
1. cost plus contracts: Revenue from cost plus contracts is recognized over time and is determined with reference
to the extent performance obligations have been satisfied. the amount of transaction price allocated to the
performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as
agreed with the customer.
2.
Fixed price contracts: contract revenue is recognised over time to the extent of performance obligation satisfied
and control is transferred to the customer. contract revenue is recognised at allocable transaction price which
represents the cost of work performed on the contract plus proportionate margin, using the percentage of
completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total
estimated contract costs.
impairment loss (termed as provision for foreseeable losses in the financial statements) is recognized in profit or loss to
the extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the company
expects to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfill such
remaining performance obligations). in addition, the Group recognises impairment loss (termed as provision for expected
318
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
credit loss on contract assets in the financial statements) on account of credit risk in respect of a contract asset using
expected credit loss model on similar basis as applicable to trade receivables.
For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised
losses as the case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as “due
from customers”. For contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus
recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contract liability and termed
as “due to customers”. amounts received before the related work is performed are disclosed in the Balance Sheet as
contract liability and termed as “advances from customer”. the amounts billed on customer for work performed and
are unconditionally due for payment i.e only passage of time is required before payment falls due, are disclosed in
the Balance Sheet as trade receivables. the amount of retention money held by the customers pending completion of
performance milestone is disclosed as part of contract asset and is reclassified as trade receivables when it becomes due
for payment.
c. Revenue from property development activities:
(i) effective april 1, 2018, Revenue from property development activities is recognised when performance obligation
is satisfied, customer obtains control of the property transferred and a reasonable expectation of collection of the
sale consideration from the customer exists. the costs incurred on property development activities are carried as
“inventories” till such time the aforesaid conditions are fulfilled.
(ii)
For the periods ended on or before march 31, 2018, the revenue from the 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.
2.
3.
4.
all critical approvals necessary for commencement of the project have been obtained;
contract costs for work performed (excluding cost of land/developmental rights and borrowing cost) constitute
at least 25% of the estimated total contract costs representing a reasonable level of development;
at least 25% of the saleable project area is secured by contracts or agreements with buyers; and
at least 10% of the total revenue as per the agreements of sale or any other legally enforceable documents
is realised at the reporting date in respect of each of the contracts and the parties to such contracts can be
reasonably expected to comply with the contractual payment terms.
the costs incurred on property development activities are carried as “inventories” till such time the outcome of the
project cannot be estimated reliably and all the aforesaid conditions are fulfilled. When the outcome of the project
can be ascertained reliably and all the aforesaid conditions are fulfilled, revenue from property development activity
is recognised at cost incurred plus proportionate margin, using percentage of completion method. Percentage of
completion is determined based on the proportion of actual cost incurred to date to the total estimated cost of the
project. For the purpose of computing percentage of construction, cost of land, developmental rights and borrowing
costs are excluded.
expected loss, if any, on the project is recognised as an expense in the period in which it is foreseen, irrespective of the
stage of completion of the contract
d. Revenue from rendering of services is recognised over time as and when the customer receives the benefit of the
company’s performance and the company has an enforceable right to payment for services transferred.
Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.
e.
Revenue from contracts for rendering of engineering design services and other services which are directly related to the
construction of an asset is recognised on the same basis as stated in (B) supra.
F.
commission income is recognised as and when the terms of the contract are fulfilled.
G. other operational revenue represents income earned from the activities incidental to the business and is recognised
when the performance obligation is satisfied and right to receive the income is established as per the terms of the
contract.
319
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
(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. Government grants, which are revenue in nature and are towards compensation for the qualifying costs, incurred by
the company, are recognised as other 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 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.
d. other items of income are accounted as and when the right to receive such income arises and it is probable that the
economic benefits will flow to the company and the amount of income can be measured reliably.
(f) exceptional items
an item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the
performance of the company is treated as an exceptional item and disclosed as such in the financial statements.
(g) property, plant and equipment (ppe)
PPe is recognised when it is probable that future economic benefits associated with the item will flow to the company and the
cost of the item can be measured reliably. PPe is stated at original cost net of tax/duty credits availed, if any, less accumulated
depreciation and cumulative impairment, if any. 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 are 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.
320
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
(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 company and the cost of the asset can be measured reliably. intangible assets are stated at original cost net of tax/duty
credits availed, if any, less accumulated amortisation and cumulative impairment. 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.
B.
c.
d.
e.
F.
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the company has intention to complete the intangible asset and use or sell it;
the company has ability to use or sell the intangible asset;
the manner in which the probable future economic benefits will be generated including the existence of a market for
output of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
the company has ability to reliably measure the expenditure attributable to the intangible asset during its development.
development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.
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 financial year with the effect of any changes in the estimate being accounted for on
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 financial 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, intangible assets and investments are tested
for impairment so as to determine the impairment loss, if any. intangible assets with indefinite life are tested for impairment each
year.
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Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
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, such that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss is recognised for the asset (or cash generating unit) in prior years. a reversal
of an impairment loss is recognised immediately in the Statement of Profit and loss.
(k) employee Benefits
(i)
Short term employee benefits:
employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and
performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term
employee benefits and are expensed in the period in which the employee renders the related service.
(ii) Post-employment benefits:
a. defined contribution plans: the company’s superannuation scheme, state governed provident fund scheme, employee
state insurance scheme and employee pension scheme are defined contribution plans. the contribution paid/payable
under such 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.
322
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
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. 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.
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 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 taken 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. debt
instruments at FVtPl is a residual category for debt instruments, if any, and all changes are recognised in Profit or
loss.
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Notes FoRminG PaRt oF tHe Financial StatementS
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Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
2.
investments in debt instruments that meet the following conditions are subsequently measured at amortised cost
(unless the same designated as fair value through profit or loss):
•
•
The asset is held within a business model whose objective is to hold assets in order to collect contractual cash
flows; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
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.
4.
5.
6.
investment in equity instruments issued by subsidiary, associate and joint venture companies are measured at cost
less impairment.
investment in preference shares of the subsidiary companies are treated as equity instruments if the same are
convertible into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose
of redemption of such investments. investment in preference shares not meeting the aforesaid conditions are
classified as debt instruments at FVtPl.
investments in equity instruments issued by other than subsidiaries are classified as at FVtPl, unless the related
instruments are not held for trading and the company irrevocably elects on initial recognition to present
subsequent changes in fair value in other comprehensive income.
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.
2.
the right to receive cash flows from the asset has expired, or
the company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a pass-through arrangement; and (a)
the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
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.
324
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
(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.
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 premium element and the spot element of a forward contract is separated
and only the change in the value of the spot element of the forward contract is designated as the hedging instrument.
Similarly, wherever applicable, the foreign currency basis spread is separated from the financial instrument and is
excluded from the designation of that financial instrument as the hedging instrument in case of time period related
hedges. the changes in the fair value of the premium element of the forward contract or the foreign currency basis
spread of the financial instrument is accumulated in a separate component of equity as “cost of hedging reserve”. the
changes in the fair value of such premium element or foreign currency basis spread are reclassified to Profit or loss as a
reclassification adjustment on a straight line basis over the period of the forward contract or the financial instrument.
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.
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Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
(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 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 bank balances.
(p) securities premium
(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.
(q) Borrowing Costs
Borrowing costs include finance costs 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 finance costs. in cases where hedging instruments are acquired for protection against exchange rate risk related to borrowings
and are accounted as hedging a time-period related hedge item, the borrowing costs also include the amortization of premium
element of the forward contract and foreign currency basis spread as applicable, over the period of the hedging instrument.
Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time
the asset is ready for its intended use or sale. a qualifying asset is an asset that necessarily requires a substantial period of time
to get ready for its intended use or sale. all other borrowing costs are recognised in Profit or loss in the period in which they are
incurred.
(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. the share based payment equivalent to the fair value as on the date of grant of employee stock
options granted to key managerial personnel is disclosed as a related party transaction in the year of grant.
(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 finance costs on those
foreign currency borrowings; and
326
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
B.
exchange differences on transactions entered into in order to hedge certain foreign currency risks.
(iii) exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or receipt
of advance consideration is used for initial recognition of related asset, expense or income.
(iv) 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 finance costs 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.
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Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the company’s
financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and
laws enacted or substantively enacted as at the Balance Sheet date.
deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated
with investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits
will be available against which those deductible temporary differences can be utilised. the carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits
will be available to allow all or part of the asset to be recovered.
deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and
carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
the measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
transaction or event which is recognised outside Profit or loss, either in other comprehensive income or in equity, is recorded
along with the tax as applicable.
(v)
interests in joint operations
the company as a joint operator recognises in relation to its interest in a joint operation, its share in the assets/liabilities held/
incurred jointly with the other parties of the joint arrangement. Revenue is recognised for its share of revenue from the sale of
output by the joint 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;
328
Notes forming part of the Financial statements (contd.)
Note [1] (contd.)
significant Accounting policies (contd.)
(iii) funding related commitment to subsidiary, associate and joint venture companies; and
(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 the financial statements in conformity with ind aS requires that the management of the company makes
estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets
and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. the estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant
and equipment & intangible assets, allowance for expected credit loss, 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.
329
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [2]
property, plant and equipment & Capital work-in-progress
Class of assets
As at
1-4-2018
Additions
Land
Freehold
Leasehold ^
Sub total - Land
Buildings ^
Plant and
equipment
Owned
Leased out
Sub total- Plant &
equipment
Computers
Office equipment
Furniture and
fixtures
Vehicles
Other assets
Ships
Aircraft
Sub total - Other
Assets
Total
370.85 352.34
85.97
0.05
456.82 352.39
2198.99 159.96
5558.46 694.55
–
5560.57 694.55
2.11
337.79
154.28
154.11
84.15
32.04
8.99
208.75
53.73
36.73
195.22
–
–
231.95
–
9303.26 1385.81
Previous year
Add: Capital work-in-progress
8637.80 852.49
Cost/Valuation
Trf (to)/from
investment
property
Foreign
currency
fluctuation
Business
combination $
Deductions
As at
31-3-2019
Up to
31-3-2018
For the
period*
Business
combination$
Depreciation
Trf (to)/from
investment
property
Foreign
currency
fluctuation
v crore
Impairment
Book value
Deductions
Up to
31-3-2019
Up to
31-3-2018
Up to
31-3-2019
As at
31-3-2019
As at
31-3-2018
–
–
–
–
–
–
–
–
–
–
–
–
–
0.43
–
0.43
(6.46)
–
–
–
3.79
20.80
–
20.80
17.66
–
701.96
3.51
86.02
787.98
3.51
2351.54 300.04
–
1.02
1.02
91.40
–
–
–
–
–
–
–
–
19.72
–
19.72
186.06
–
186.06
6086.67 2156.75 717.56
0.20
6088.78 2157.98 717.76
1.23
2.11
0.25
0.48
0.42
17.67
5.77
6.72
404.52 202.68
93.03
181.03
68.95
156.80
69.49
30.70
22.13
1.59
29.77
234.30
81.74
35.05
–
–
–
36.73
195.22
14.21
6.15
4.72
10.26
–
(6.03)
–
26.25
–
284.45
20.36
231.95
14.98
10436.90 2928.29 982.53
–
–
–
(1.19)
–
–
–
3.08
–
–
–
2.39
–
4.53
4.53
393.32
–
–
–
87.25
370.85
701.96
82.46
81.49
783.45
453.31
1870.97 1811.70
87.25
–
–
–
–
–
–
11.13
–
11.13
116.37 2769.07
1.43
116.37 2770.50
–
15.01
–
15.01
15.01
–
15.01
3302.59 3386.70
0.88
3303.27 3387.58
0.68
0.18
0.32
0.22
16.81
5.53
4.10
255.54
118.52
87.20
–
0.01
0.24
–
0.01
0.24
148.98
62.50
69.36
135.11
61.24
84.92
–
0.86
20.13
97.52
–
–
–
–
18.93
16.41
–
–
–
136.78
127.01
–
17.80
178.81
22.52
189.07
–
(1.19)
–
15.79
–
35.34
165.33 3762.47
–
–
102.51 102.51
196.61
211.59
6571.93 6272.46
–
–
–
–
–
–
–
–
–
–
–
–
2.17
56.36
2.39
135.23
9303.26 2011.58 984.77
0.43
0.45
0.98
69.01 2928.29
– 102.51
580.92
452.10
7152.85 6724.56
* R 0.38 crore pertains to foreign currency fluctuation
$ Refer Note [60(b)]
^ The Company has signed an agreement with Gargi Brew Spirit Training Alliance Private Limited for assignment and sale of its leasehold land together
with buildings and superstructures situated at Nashik, Maharashtra for a consideration of R 11 crore (Book value as at March 31, 2019 R 0.62 crore). The
memorandum of understanding is executed on April 6, 2019.
The criteria for classifying the said land and building as held for sale is met after the reporting date, hence the same is not shown as held for sale in the
financial statement as at reporting date.
The above land and building is presented in assets of EAIC segment. [Note 47(a)].
330
Notes forming part of the Financial statements (contd.)
Note [2] (contd.)
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 65.75 crore, including 2615
shares of R 50 each, 80 shares of R 100 each. (previous year: 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).
B.
in various apartments : R 9.42 crore. (previous year: R 9.42 crore).
c.
in various co-operative societies : R 0.36 crore (previous year: R 0.36 crore) for which share certificates are yet to be
issued.
d.
in proposed co-operative societies R 30.59 crore. (previous year: R 29.90 crore).
(ii) ownership accommodations of R 3.53 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 11.75 crore representing undivided share in properties at various locations. (previous year: of
R 7.68 crore).
c) additions during the year and capital work-in-progress include R 26.72 crore (previous year: R 11.42 crore) being borrowing cost
capitalised in accordance with accounting Standard (ind aS) 23 on “Borrowing costs”. asset class wise break-up of borrowing
costs capitalised during the year is as follows:
class of assets
2018-2019
2017-2018
v crore
Buildings (owned)
Plant and equipment
total
25.99
0.73
26.72
11.35
0.07
11.42
d)
e)
the average capitalisation rate for borrowing cost is 7.68 % (previous year: 7.24 %).
in addition to depreciation, obsolescence amounting to R 6.35 crore (previous year: R 4.54 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, 2018 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 joint venture 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.
Buildings
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
331
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [2] (contd.)
b.
estimated useful life of following assets is different than useful life as prescribed in schedule ii of the companies act, 2013.
Sr. no category of assets
Sub-category of assets
1.
2.
aircrafts
–
owned Vehicles
motor cars
a assets used in Heavy engineering and Shipbuilding Business:
Sr.
no
1.
category of assets
Sub-category of assets
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:
Useful life as per
Schedule ii (in years)
Useful life
adopted (in years)
20
8
18
7
Useful life as per
Schedule ii (in years)
Useful life adopted
(in years)
10-30
5-15
5-30
10-30
50
10-30
5-15
15
5
Sr.
no
1.
category of assets
Sub-category of assets
Plant & equipment General
Specialized 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
1.
2.
3.
4.
5.
category of assets
Sub-category of assets
office equipment
assets deployed at project site
air conditioning and
refrigeration equipment
assets deployed at project site
canteen equipment
assets deployed at project site
laboratory equipment
assets deployed at project site
Photographic equipment
assets deployed at project site
d assets used in Power business:
Useful life as per
Schedule ii (in years)
Useful life adopted
(in years)
5
15
15
10
15
3
3
3
3
3
Sr.
no
1.
category of assets
Sub-category of assets
Useful life as per
Schedule ii (in years)
Useful life adopted
(in years)
Plant & equipment
Site facilities
15
4
j)
carrying value of Property, plant and equipment pledged as collateral for liabilities and/or commitments as at march 31, 2019 -
R 0.09 crore (as at march 31, 2018: R 0.09 crore)
332
Notes forming part of the Financial statements (contd.)
Note [3]
investment property
Class of assets
Land
Buildings
Total
As at
1-4-2018
50.41
472.75
523.16
Cost
Transferred
from/(to) PPE/
Inventory
Additions
Deductions
As at
31-3-2019
As at
31-3-2018
For the year
Depreciation
Transferred
from/(to) PPE/
Inventory
v crore
Book Value
Deductions
Upto
31-3-2019
As at
31-3-2019
As at
31-3-2018
7.08
0.54
7.62
0.43
5.14
52.78
(9.36)
(8.93)
106.74
357.19
111.88
409.97
–
48.18
48.18
–
15.49
15.49
–
(1.34)
(1.34)
–
–
52.78
50.41
13.54
13.54
48.79
308.40
424.57
48.79
361.18
474.98
Previous year
431.76
57.58
37.00
3.19
523.16
35.06
13.96
0.39
1.23
48.18
Add: Capital work-in-progress
20.08
–
381.26
474.98
(a) additions during the year and capital work-in-progress include R 1.38 crore (previous year: R 5.80 crore) being borrowing cost
capitalised in accordance with accounting Standard (ind aS) 23 on “Borrowing costs”. asset class wise break-up of borrowing
costs capitalised during the year is as follows:
Buildings (owned)
class of assets
R crore
2018-2019
2017-2018
1.38
5.80
(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:
class of assets
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
2018-19
2017-18
179.92
67.41
171.63
64.32
(ii)
Fair value of investment property : R 2932.97 crore as at march 31, 2019 (R 2487.24 crore as at march 31, 2018)
(iii) the fair values of investment properties have been determined with the help of independent valuers on a case to case basis.
Fair value of properties that are evaluated by independent valuers R 2932.97 crore (R 2487.24 crore as at march 31, 2018).
Valuation is based on government rates, market research, market trend and comparable values as considered appropriate.
333
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [4]
intangible assets & intangible assets under development
Class of assets
As at
1-4-2018
Additions
Business
Transfer $
Deductions
As at
31-3-2019
Up to
31-3-2018
For the
period
Business
Transfer $
Deductions
Up to
31-3-2019
As at
31-3-2019
As at
31-3-2018
Cost
Amortisation
Book value
Specialised softwares
195.64
23.16
Technical knowhow
99.06
7.48
New product design and
161.40
67.99
development
Total
456.10
98.63
–
–
–
–
–
–
–
–
218.80
160.23
14.16
106.54
29.65
13.37
229.39
73.13
35.67
554.73
263.01
63.20
–
–
–
–
–
–
–
–
174.39
44.41
35.41
43.02
63.52
69.41
108.80
120.59
88.27
326.21
228.52
193.09
Previous year
339.67
115.05
1.38
456.10
215.00
47.33
0.68
263.01
v crore
Add: Intangible assets under development
$ Refer to Note [60(b)]
(a) additions during the year
171.69
200.77
400.21
393.86
Class of assets
Specialised softwares
Technical knowhow
New product design and development
Total
FY 2018-19
FY 2017-18
Internal
development
–
–
67.99
67.99
Acquired
- external
23.16
7.48
–
30.64
Total
23.16
7.48
67.99
98.63
Internal
development
0.11
–
48.53
48.64
Acquired
- external
11.31
55.10
–
66.41
(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
11.42
55.10
48.53
115.05
Sr. no
1.
2.
3.
class of assets
Specialised softwares
technical knowhow
new product design and development
minimum useful life
(in years)
3
3
3
maximum useful life
(in years)
6
10
6
334
Notes forming part of the Financial statements (contd.)
Note [5]
Non-current Assets: Financial Assets - investments
Particulars
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
(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
(a) Subsidiary company
(b) Joint venture company
(c) other investments in Subsidiary company
details of Non-current Assets: Financial Assets - investments
Particulars
(A) Investments in fully paid equity instruments
(a) Subsidiary companies:
17591.01
4.42
1539.51
97.35
888.68
–
18776.86
4.42
2991.26
136.64
19232.29
21909.18
867.35
217.73
888.68
18.50
20139.47
1085.08
–
22994.26
Number of units
As at
31-3-2019
Face value
per unit
v
As at
31-3-2019
v crore
As at
31-3-2018
v crore
(i)
Investments in fully paid equity instruments:
L&T Valves Limited
Bhilai Power Supply Company Limited
Hi-Tech Rock Products & Aggregates Limited
Kesun Iron & 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 0.05 crore)]
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 [Net of provision R 430.68 crore (previous year: R Nil)]
L&T Electricals and Automation Limited
L&T Hydrocarbon Engineering Limited
L&T Technology Services Limited (quoted)
Larsen & Toubro Infotech Limited (quoted)
Carried forward
100
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
2
1
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
2,42,71,75,964
3,11,27,00,000
51,157
4,71,60,700
1,65,45,50,000
43,06,80,000
74,38,796
1,00,00,50,000
7,80,09,994
12,97,84,034
161.23
0.05
0.05
0.01
45.60
0.05
–
3468.17
82.82
2427.18
3112.70
0.05
47.16
1654.55
–
40.36
1000.05
805.49
108.05
12953.57
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
13652.09
335
As at
31-3-2019
v crore
As at
31-3-2018
v crore
12953.57
–
13652.09
–
0.23
0.01
1.05
21.85
53.16
–
–
13029.87
0.23
1.06
21.85
53.16
–*
–**
13728.39
–
–
–
67.78
37.06
77.26
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [5] (contd.)
details of Non-current Assets: Financial Assets - investments (contd.)
Particulars
(i)
Investments in fully paid equity instruments: (contd.)
Brought forward
Larsen & Toubro Hydrocarbon International Limited LLC [Net of provision R 0.68
crore (previous year: R 0.68 crore)]
Larsen & Toubro LLC
L&T Construction Machinery Limited
Larsen & Toubro (Saudi Arabia) LLC
L&T Infrastructure Engineering Limited
L&T Global Holdings Limited
Seawoods Realty Private Limited
Seawoods Retail Private Limited
Number of units
As at
31-3-2019
Face value
per unit
v
SAR 1000
450
USD 1
SAR 1000
10
USD 100
50,000
10,000
625
36,00,000
80,000
(ii) Preference shares-(equity portion):
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
10
9,00,00,000
preference shares, October 22, 2028 [Net of provision R 67.78 crore (previous
year: R Nil)]
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
preference shares, June 24 2029 [Net of provision R 37.06 crore (previous
year: R Nil)]
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
preference shares, April 16, 2030 [Net of provision R 77.26 crore (previous
year: R Nil)]
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable
at par preference shares, May 28, 2030 [Net of provision R 300.25 crore
(previous year: R Nil)]
10
5,00,00,000
10
11,00,00,000
10
42,18,60,000
–
300.25
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable
10
25,00,00,000
–
177.98
at par preference shares, August 10, 2030 [Net of provision R 177.98 crore
(previous year: R Nil)]
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at
par preference shares, September 29, 2030 [Net of provision R 47.67 crore
(previous year: R Nil)]
10
7,50,00,000
5.57
53.24
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
276.24
par preference shares, March 28, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at
10
41,61,29,994
295.40
295.40
par preference shares, November 19, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at
10
1,28,70,000
9.17
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
132.00
par preference shares, December 19, 2032
(iii) Preference share considered equity as per terms:
1053.49
1761.49
L&T Seawoods Limited -10% Non-cumulative, optionally convertible
2
82,60,00,000
826.00
826.00
redeemable preference shares, March 30, 2022
Carried forward
826.00
826.00
336
Notes forming part of the Financial statements (contd.)
Note [5] (contd.)
details of Non-current Assets: Financial Assets - investments (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, May 12, 2022
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
L&T Hydrocarbon Engineering Limited -10% Non-cumulative, optionally
convertible redeemable at par preference shares, February 6, 2029
L&T Hydrocarbon Engineering Limited -12% Non-cumulative,optionally
convertible redeemable at par preference shares, October 19, 2030
L&T Hydrocarbon Engineering Limited -12% Non-cumulative,optionally
convertible redeemable at par preference shares, March 30, 2031
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally
convertible redeemable preference shares, July 17, 2029
Number of units
As at
31-3-2019
Face value
per unit
v
As at
31-3-2019
v crore
As at
31-3-2018
v crore
4,80,00,000
826.00
48.00
826.00
48.00
4,22,50,000
42.25
42.25
4,20,00,000
42.00
42.00
2
2
2
10
50,00,00,000
500.00
500.00
10
13,00,00,000
130.00
130.00
10
13,00,00,000
130.00
130.00
2
1,14,04,50,000
1140.45
891.05
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 [Net of provision R 28.74 crore (previous year: R Nil)]
Total - (a) = (i)+(ii)+(iii)+(iv)
(b) Associate companies:
3507.00
3257.60
0.65
–
0.65
17591.01
0.64
28.74
29.38
18776.86
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 [R 1000 (previous year: R 1000)]
L&T Chennai-TADA Tollway Limited [R 1000 (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 1723 crore
(previous year: R 950 crore)]
L&T Kobelco Machinery Private Limited ^
L&T-MHPS Boilers Private Limited
Carried forward
100
9,000
4.42
4.42
4.42
4.42
10
10
10
10
10
10
10
100
100
100
1,50,30,000
31,28,69,096
2,55,00,000
11,93,91,000
–
–
–
15.03
973.48
25.50
119.39
1133.40
–
–
–
15.03
1746.48
25.50
119.39
1906.40
337
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [5] (contd.)
details of Non-current Assets: Financial Assets - investments (contd.)
Particulars
Number of units
As at
31-3-2019
Face value
per unit
v
As at
31-3-2019
v crore
As at
31-3-2018
v crore
(i)
Investments in fully paid equity instruments: (contd.)
Brought forward
L&T-MHPS Turbine Generators Private Limited
L&T Rajkot-Vadinar Tollway Limited [R 1000 (previous year: R 1000)]
L&T Samakhiali Gandhidham Tollway Limited
L&T Special Steels and Heavy Forgings Private Limited [Net of provision
R 419.28 crore (previous year: R Nil)]
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):
10
10
10
10
10
10
10
10
10
36,24,06,000
100
13,000
41,92,84,000
1,08,64,000
27,82,736
2,24,22,660
37,750
5,10,000
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
non-convertible redeemable at par preference shares, December 8, 2024 [Net
of provision R 78.33 crore (previous year: R Nil)]
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
non-convertible redeemable at par preference shares, December 8, 2025 [Net
of provision R 97.91 crore (previous year: R Nil)]
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
non-convertible redeemable at par preference shares, December 8, 2026 [Net
of provision R 84.41 crore (previous year: R Nil)]
10
15,54,00,000
10
17,76,00,000
10
14,20,80,000
1133.40
362.41
–
0.01
–
10.86
0.82
22.42
0.04
0.51
1530.47
2.24
6.80
9.04
1906.40
362.41
–
0.01
419.28
10.86
0.82
22.42
0.04
0.03
2722.27
2.24
6.10
8.34
–
–
78.33
97.91
–
–
1539.51
84.41
260.65
2991.26
Total - (c) = (i)+(ii)+(iii)
(d) Other companies:
International Seaport Dredging Limited [Net of provision R 15.90 crore (previous
year: R 15.90 crore)]
BBT Elevated Road Private Limited
Utmal Multi purpose Service Co-operative Society Limited (B Class) [R 30,000
(previous year: R 30,000)]
Tidel Park Limited [Note 45(f)]
VP Global Fibre and Yarns Private Limited [R 22,900 (previous year: R 20,600)]
New Vision Wind Power Private Limited [R 27,000 (previous year: R Nil)]
The New India Assurance Company Limited
ICICI Securities Limited
Total - (A) =(a)+(b)+(c)+(d)
338
10000
10
15,899
1,00,000
–
0.10
–
0.10
100
10
100
10
10
5
300
40,00,000
229
2,700
6,24,996
8,13,720
–
65.58
–
–
11.93
19.74
97.35
19232.29
–
64.27
–
–
22.28
50.00
136.64
21909.18
Notes forming part of the Financial statements (contd.)
Note [5] (contd.)
details of Non-current Assets: Financial Assets - investments (contd.)
Particulars
(B) Investment in preference shares (Debt portion) of:
(a) Subsidiary company:
Number of units
As at
31-3-2019
Face value
per unit
v
As at
31-3-2019
v crore
As at
31-3-2018
v crore
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
10
9,00,00,000
40.73
38.70
preference shares, October 22, 2028
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
10
5,00,00,000
21.29
20.36
preference shares, June 24 2029
L&T Shipbuilding Limited -12% Cumulative, non-convertible redeemable at par
10
11,00,00,000
43.48
41.93
preference shares, April 16, 2030
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at par
10
42,18,60,000
165.00
159.32
preference shares, May 28, 2030
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at par
10
25,00,00,000
95.96
92.87
preference shares, August 10, 2030
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at par
10
7,50,00,000
28.42
27.55
preference shares, September 29, 2030
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at par
10
25,90,00,000
96.42
93.67
preference shares, December 8, 2030
L&T Shipbuilding Limited -9% Non-cumulative, non-convertible redeemable at par
10
21,60,00,000
79.23
77.11
preference shares, February 4, 2031
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at par
10
38,80,00,000
127.74
126.12
preference shares, March 28, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at par
10
41,61,29,994
128.45
127.95
preference shares, November 19, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at par
10
1,28,70,000
3.97
3.95
preference shares, November 23, 2032
L&T Shipbuilding Limited - 9% Non-cumulative, non-convertible redeemable at par
10
18,93,29,994
57.99
57.82
preference shares, December 19, 2032
Total - (a)
(b) Joint Venture company:
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
non-convertible redeemable at par preference shares, December 8, 2024 [Net of
provision R 77.77 crore (previous year: R Nil)]
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
non-convertible redeemable at par preference shares, December 8, 2025 [Net of
provision R 79.12 crore (previous year: R Nil)]
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative,
non-convertible redeemable at par preference shares, December 8, 2026 [Net of
provision R 56.28 crore (previous year: R Nil)]
Total - (b)
Total - (B)
(C) Other investments:
Subsidiary companies: In limited liability partnership:
L&T Geo structure LLP
Total - (C)
Total Non Current Investment = (A)+(B)+(C)
888.68
867.35
10
15,54,00,000
10
17,76,00,000
–
–
78.75
80.89
10
14,20,80,000
–
–
888.68
58.09
217.73
1085.08
18.50
18.50
20139.47
–
–
22994.26
339
Notes forming part of the financial StatementS annUal report 2018-19
Notes forming part of the Financial statements (contd.)
Note [5] (contd.)
Details of Non-current Assets: Financial Assets - Investments (contd.)
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
as at
31-3-2019
v crore
as at
31-3-2018
v crore
4413.37
53882.38
4597.03
50537.78
15726.10
3800.71
18397.23
967.21
(c) aggregate amount of impairment in value of investments
^ Subsequent to the year under review, the company has divested its entire stake in l&t Kobelco machinery private limited to Kobe
Steel, ltd. on april 17, 2019. Since the criteria for classifying the said investment as held for sale is not met as at reporting date, the
same has not been classified as held for sale in the financial statements.
the above investment forms part of the unallocable corporate assets. [note 47(a)].
* previous period included provision of R 0.01 crore.
** previous period included provision of R 0.01 crore.
Note [6]
Non-current Assets: Financial Assets - Loans
particulars
Unsecured security deposits, considered good:
less: allowance for expected credit loss
Unsecured long term loan and advances to related parties:
Subsidiary companies, cosidered good [note 37 & 38 (a)]
Joint venture companies, considered good [note 37 & 38 (a)]
less: allowance for expected credit loss
other loans, considered good:
Secured
Unsecured
Note [7]
Non-current Assets: Financial Assets - others
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
as at 31-3-2019
as at 31-3-2018
v crore
104.71
28.30
1463.59
263.00
v crore
76.41
454.50
1200.59
0.08
1.07
1732.65
v crore
104.44
26.15
1379.11
–
v crore
78.29
225.50
1379.11
0.23
1.00
1684.13
as at 31-3-2019
as at 31-3-2018
v crore
289.76
102.43
–
10.54
–
174.27
577.00
v crore
319.52
91.54
0.02
1.99
19.45
6.02
438.54
340
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, acquisition, etc.
total
less: amount reflected under current assets [note 13]
amount reflected under other financial assets - non-current [note 7]
v crore
as at
31-3-2019
as at
31-3-2018
25.25
24.51
25.97
24.18
4372.34
4423.56
4133.80
289.76
464.80
513.49
193.97
319.52
Note [8]
other non-current assets
Particulars
capital advances:
Secured
Unsecured
advance recoverable other than in cash
current tax receivable (net)
Note [9]
Current Assets: inventories
Particulars
Raw materials [include goods-in-transit R 14.83 crore
(previous year: R 2.46 crore)]
components [include goods-in-transit R 19.29 crore
(previous year: R 17.19 crore)]
construction materials [include goods-in-transit R 114.39 crore
(previous year: R 56.16 crore)]
manufacturing work-in-progress
Finished goods
Stock-in-trade [include goods-in-transit R 38.79 crore
(previous year: R 26.31 crore)]
Stores and spares [include goods-in-transit R 2.10 crore
(previous year: R 3.61 crore)]
loose tools
Property development related work-in-progress
as at 31-3-2019
as at 31-3-2018
v crore
1.84
19.29
1636.04
1690.08
3347.25
v crore
7.84
28.28
1405.00
1652.22
3093.34
as at 31-3-2019
as at 31-3-2018
v crore
332.93
296.27
144.09
372.92
230.41
386.27
118.89
3.69
1334.97
3220.44
v crore
318.49
286.15
63.10
333.96
154.24
285.20
68.70
3.81
986.40
2500.05
341
note: during the year R 1.09 crore (previous year: R 12.87 crore) was recognised as expense towards write-down of inventories
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [10]
Current Assets: Financial Assets - investments
Particulars
(a) Government and trust securities
(B) debentures and bonds
(i) Subsidiary companies
(ii) Joint venture companies
(iii) other debentures & bonds
(c) mutual funds
details of Current Assets: Financial Assets - 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
8.33% Government of India Bonds 2026
8.32% Government of India Bonds 2032
6.90% Oil Mktg Cos GOI Special Bonds 2026
9.20% Government of India Bonds 2030
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:
9.50% L&T Metro Rail (Hyderabad) Limited SR-F NCD November 26, 2030
9.55% L&T Metro Rail(Hyderabad) Limited SR-F NCD September 28, 2030
Total- (i)
(ii) Joint venture companies:
1000000
1000000
1,500
1,000
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
Carried forward
342
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
–
–
–
–
–
230
240
270
280
290
310
as at 31-3-2019
as at 31-3-2018
v crore
v crore
924.53
v crore
v crore
1205.99
273.07
741.94
1123.75
–
769.84
1298.35
2138.76
1631.69
4694.98
2068.19
1070.80
4344.98
Number of units
As at
31-3-2019
Face value
per unit
v
As at
31-3-2019
v crore
As at
31-3-2018
v crore
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
–
–
–
–
–
75,00,000
–
–
1,77,84,000
2,45,00,000
10,00,000
2,10,00,000
1,33,00,000
–
–
–
–
–
–
–
–
–
80.47
–
–
199.04
293.64
10.32
202.02
139.04
–
–
–
–
924.53
162.61
110.46
273.07
–
–
–
–
–
25.84
26.96
30.19
31.00
31.94
35.03
180.96
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
292.58
Notes forming part of the Financial statements (contd.)
Note [10] (contd.)
details of Current Assets: Financial Assets - investments (contd.)
Particulars
(ii) Joint venture companies: (contd.)
Brought forward
9.50% Kudgi Transmission Limited SR-Q NCD April 25, 2034
9.50% Kudgi Transmission Limited SR-R NCD April 25, 2035
9.50% Kudgi Transmission Limited SR-S NCD April 25, 2036
9.50% Kudgi Transmission Limited SR-T NCD April 25, 2037
9.50% Kudgi Transmission Limited SR-U NCD April 25, 2038
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 Company Limited NCD August 21, 2072
8.20% PFC Limited Tax Free Bonds February 01, 2022
8.46% PFC Limited Tax Free Bonds August 30, 2028
1.44% Inflation Indexed Bonds Junuary 05, 2023
8.41% NTPC Limited Tax Free Bonds SR-1A December 16, 2023
8.46% REC Limited 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 Limited Pertetual October 18, 2022
9.50% YES Bank Limited 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
Ecap Equities Limited SR-G9G806B August 27, 2019
Ecap Equities Limited SR-G9G806C August 28, 2019
Ecap Equities Limited SR-G9G806D August 29, 2019
Ecap Equities Limited SR-G9H804A September 02, 2019
Ecap Equities Limited SR-G9H804B September 03, 2019
Ecap Equities Limited SR-G9H804C September 04, 2019
Ecap Equities Limited SR-G9H804D September 05, 2019
Ecap Equities Limited SR-I9J804A November 11, 2019
Ecap Equities Limited SR-I9J804B November 12, 2019
Ecap Equities Limited SR-I9J804C November 13, 2019
Ecap Equities Limited SR-L9K801A December 30, 2019
Ecap Equities Limited SR-L9K801B December 31, 2019
Carried forward
Face value
per unit
Number of units
As at
31-3-2019
As at
31-3-2019
As at
31-3-2018
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000
1000000
100
1000
1000000
1000000
1000000
1000000
1000000
1000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
–
360
390
410
350
960
250
2,500
1,037
3,54,355
67
50,00,000
79,162
370
–
–
500
1,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
25
25
25
25
25
25
25
25
25
25
25
25
180.96
–
40.64
44.08
46.39
39.64
108.82
28.36
253.05
741.94
110.64
37.36
7.11
55.03
8.32
39.26
–
–
55.34
105.52
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
28.35
28.35
28.35
28.80
28.14
28.58
28.60
28.63
28.63
29.12
26.87
26.92
757.92
292.58
39.60
43.25
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
–
–
–
–
–
–
–
–
–
–
–
–
922.53
343
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [10] (contd.)
details of Current Assets: Financial Assets - investments (contd.)
Particulars
(iii) Other debentures and bonds: (contd.)
Brought forward
Ecap Equities Limited SR- L9K801C January 01, 2020
Ecap Equities Limited SR- L9K801D January 02, 2020
Ecap Equities Limited SR- H9G801A August 23, 2019
Ecap Equities Limited SR- G9G806A August 26, 2019
Ecap Equities Limited SR- B0A901A February 17, 2020
Ecap Equities Limited SR- B0A9011B February 18, 2020
Ecap Equities Limited SR- B0B905A March 13, 2020
Ecap Equities Limited SR- B0B905B March 16, 2020
Ecap Equities Limited SR- B0B905C March 17, 2020
Ecap Equities Limited SR- B0B905D March 18, 2020
Ecap Equities Limited SR- B0B905E March 19, 2020
Ecap Equities Limited SR- B0B905F March 20, 2020
6.86% IIFCL Tax Free Bonds March 26, 2023
7.18% IRFC Limited Tax Free Bonds February 19, 2023
Total- (iii)
(C) Mutual funds (unquoted):
JM Arbitrage Advantage Fund-Direct-Monthly Dividend Payout
JM Balanced Fund Direct Plan-Annual Dividend Payout Option
L&T Short Term Bond Fund-Direct Growth
Aditya Birla Sun Life Corporate Bond Fund-Direct-Growth
JM Equity Fund Monthly Dividend Payout
L&T Emerging Businesses Fund-Direct Plan-Growth
Kotak Emerging Equity-Direct-Growth
L&T Midcap Fund-Growth-Direct
LIC MF Arbitrage Fund-Direct Plan-Growth
LIC MF Short Term Debt Fund-Direct Plan-Growth
Aditya Birla Sun Life Midcap Fund-Direct Plan-Growth
Kotak Small Cap Fund-Direct-Growth
AXIS Overnight Fund-Direct-Growth
HSBC Large & Midcap Equity Fund-Growth-Direct
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)
344
Face value
per unit
Number of units
As at
31-3-2019
As at
31-3-2019
As at
31-3-2018
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
10000000
1000
1000
25
25
25
25
25
25
25
25
25
25
25
25
1,35,000
3,50,000
10
10
100
100
10
10
100
100
10
10
100
10
10
10
–
–
28,01,47,507
7,59,81,604
–
1,98,02,764
2,48,95,439
73,29,229
1,50,00,000
4,00,00,000
50,48,149
66,98,911
2,00,000
2,50,00,000
757.92
26.77
26.65
26.33
26.56
26.78
26.78
26.21
26.21
26.21
26.21
26.21
26.11
13.16
35.64
1123.75
2138.76
–
–
514.42
548.08
–
51.53
103.98
104.59
15.16
40.81
155.97
52.09
20.06
25.00
1631.69
4694.98
922.53
–
–
–
–
–
–
–
–
–
–
–
–
27.76
348.06
1298.35
2068.19
203.48
571.42
–
295.89
–
–
1070.80
4344.98
as at
31-3-2019
v crore
as at
31-3-2018
v crore
3063.29
3063.29
3274.18
3274.18
1631.69
1070.80
Notes forming part of the Financial statements (contd.)
Note [11]
Current Assets: Financial Assets - trade receivables
Particulars
considered good Unsecured
less: allowance for expected credit loss
credit impaired
less: allowance for expected credit loss
Note [12]
Current Assets: Financial Assets - 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]
Current Assets: Financial Assets - other bank balances
Particulars
Fixed deposits with banks
earmarked balances with banks-unclaimed dividend
earmarked balances with banks-Section 4(2)(1)(d)ReRa*
margin money deposits with banks
cash and bank balances not available for immediate use [note 7(a)]
* Real estate (Regulation and development) act, 2016
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
29443.07
1411.31
1044.25
859.19
24164.69
1437.24
28031.76
22727.45
977.73
787.73
185.06
28216.82
190.00
22917.45
as at 31-3-2019
as at 31-3-2018
v crore
1862.18
174.42
2.04
694.77
2733.41
v crore
1798.20
435.01
2.37
948.17
3183.75
as at 31-3-2019
as at 31-3-2018
v crore
647.64
84.64
–
–
4133.80
4866.08
v crore
869.24
63.69
7.38
0.03
193.97
1134.31
345
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [14]
Current Assets: Financial Assets - Loans
Particulars
Unsecured security deposits, considered good
less: allowance for expected credit loss
Unsecured security deposits, credit impaired
less: allowance for expected credit loss
Unsecured long term loans and advances to related parties:
Subsidiary companies, considered good [note 37&38 (a)]
Joint venture companies, considered good [note 37&38 (a)]
other secured loans, considered good
Note [15]
Current Assets: Financial Assets - others
Particulars
advances to related parties:
Subsidiary companies
associate companies
Joint venture companies
advances recoverable in cash
Premium receivable on financial guarantee contracts
Forward contract receivable
embedded derivative receivable
doubtful advances:
deferred credit sale of ships
other loans and advances
less: allowance for expected credit loss
346
as at 31-3-2019
as at 31-3-2018
v crore
317.14
0.45
5.07
5.07
v crore
v crore
v crore
296.27
0.45
316.69
295.82
5.89
5.89
–
914.75
62.27
0.15
1293.86
–
678.04
18.20
0.27
992.33
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
734.58
730.02
8.07
509.92
12.59
675.69
4.94
53.95
27.11
88.48
115.59
115.59
755.52
2387.73
4.34
270.73
23.27
700.51
0.80
54.21
27.11
129.60
156.71
156.71
–
1995.18
–
3441.59
Notes forming part of the Financial statements (contd.)
Note [16]
other current assets
contract assets [Refer note 48(d)]
Particulars
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
due from customers (construction and project related activity)
Retention money including unbilled revenue
28277.43
11953.54
25587.80
10937.36
advance recoverable other than in cash
Government grants receivable
others
doubtful other loans and advances
less: Provision for doubtful advances
40230.97
3770.60
89.08
–
–
44090.65
7.00
7.00
36525.16
3878.62
93.56
2.59
–
40499.93
6.99
6.99
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
as at 31-3-2019
as at 31-3-2018
number of
shares
v crore
number of
shares
v crore
1,62,50,00,000
325.00
1,62,50,00,000
325.00
1,40,27,29,385
280.55
1,40,13,69,456
280.27
(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
2018-19
2017-18
number of
shares
v crore
number of
shares
1,40,13,69,456
13,59,929
–
280.27
0.28
–
93,29,65,803
16,38,898
46,67,64,755
v crore
186.59
0.33
93.35
year
1,40,27,29,385
280.55 1,40,13,69,456
280.27
(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.
347
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [17] (contd.)
equity share capital (contd.)
(d) shareholder holding more than 5% of equity shares:
name of the shareholders
life insurance corporation of india
l&t employees Welfare Foundation
as at 31-3-2019
as at 31-3-2018
number of
shares
Shareholding
%
number of
shares
Shareholding
%
24,66,76,682
17.59
24,63,52,777
17,21,28,421
12.27
17,21,28,421
17.58
12.28
(e) shares reserved for issue under options outstanding on un-issued share capital:
Particulars
as at 31-3-2019
as at 31-3-2018
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 #
28,85,240
0.58*
42,65,623@
0.85*
0.675% 5 years & 1 day US$ denominated foreign currency convertible
bonds (FccB) ##
95,20,455
1.90**
95,20,455@
1.90**
*
the equity shares will be issued at a premium of R 71.99 crore (previous year: R 94.42 crore)
** the equity shares will be issued at a premium of R 1214.50 crore (previous year: R 1214.50 crore) on the exercise of options
by the bond holders
#
note 17(h)(i) 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, 2019 are 46,67,64,755 (previous period of five years ended march 31, 2018: 77,50,59,331 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, 2019 – nil (previous period of five years ended march 31, 2018: 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.
348
Notes forming part of the Financial statements (contd.)
Note [17] (contd.)
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)
2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18
267.10
2006(A)
2002(B)
2003(B)
7.80
2.00
2.00
2.00
2006
7.80
7.80
2.00
19-4-2002
19-4-2003
7.80
23-5-2003 onwards 23-5-2003 onwards
23-5-2004 onwards 23-5-2004 onwards
267.10
267.10
1-9-2006 onwards
1-9-2007 onwards
267.10
1-7-2007 onwards
1-7-2008 onwards
2.00
19-4-2002
19-4-2003
2.00
1-6-2000
1-6-2001
19,800
–
–
–
13,200
–
–
–
48,375
–
–
–
32,250
–
–
–
89,325
–
–
–
59,550
–
–
–
70,767
–
–
–
47,178 4,87,892 4,27,131
–
–
– 17,700
– 29,789
–
–
–
– 1,76,584 35,49,464 34,91,467
–
– 1,08,685
–
–
–
6,200
–
– 4,94,210
– 39,708
– 13,200
– 32,250
– 59,550
– 47,178
– 4,15,042
– 1,36,876
– 28,94,772
– 19,800
–
–
–
19,800
–
–
48,375
– 48,375
–
–
–
89,325
– 89,325
–
–
–
– 70,767
70,767
– 6,22,567
49,313
– 1,05,342
–
71,600
25,200
– 2,34,441 1,56,962
– 19,800
– 48,375
– 89,325
– 70,767 1,73,309 4,87,892
– 19,800
–
– 48,375
–
– 89,325
–
– 70,767
10,750 1,30,806
– 1,62,559 3,57,086
– 2,05,321
– 43,42,684
– 2,02,516 3,51,935 4,51,376
– 6,39,890 5,73,580
2,805 11,25,488 9,15,424
–
–
–
–
– 27,11,931 35,49,464
– 9,76,795 15,63,209
– 17,35,136 19,86,255
Nil
4.15
3.74
contractual life of options (in years)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
4.95
4.72
* Record date: July 14, 2017
iii. the number and weighted average exercise price of stock options are as follows:
Particulars
(a) options granted and outstanding at the beginning of the year
(B) options granted 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
2018-19
2017-18
no. of stock
options
42,65,623
–
–
–
–
–
6,65,090
13,59,929
6,85,544
28,85,240
9,87,545
Weighted
average
exercise
price (R)
223.35
–
–
–
–
–
257.28
222.40
139.58
251.52
264.28
no. of stock
options
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
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
349
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [17] (contd.)
equity share capital (contd.)
iv. Weighted average share price at the date of exercise for stock options exercised during the year is R 1272.80 (previous year:
R 1106.67) per share.
v.
a.
B.
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.
expense on employee Stock option Schemes debited to the Statement of Profit and loss during 2018-19 is R 73.07 crore
(previous year: R 68.98 crore) net of recoveries of R 1.63 crore (previous year: R 0.79 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 17.15 crore (previous year: R 7.16 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 986.95 (previous year: R 965.25) per option
viii. the fair value has been calculated using the Black-Scholes option Pricing model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
Sr.
no.
Particulars
(a) Weighted average risk-free interest rate
(B) Weighted average expected life of options
(c) Weighted average expected volatility
2018-19
7.44%
4.09 years
25.73%
2017-18
6.83%
4.17 years
27.92%
(d) Weighted average expected dividends over the life of the option
R 65.41 per option
R 58.37 per option
(e) Weighted average share price
(F) Weighted average exercise price
(G) method used to determine expected volatility
R 1225.00 per option
R 1178.47 per option
R 257.28 per share
R 229.73 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, 2019 is R 106.91 crore (previous year: R 108.59 crore), including
R 52.29 crore (previous year: R 76.12 crore) for which the options have been vested to employees as at march 31, 2019.
(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 0.19:1 as at march 31, 2019 (as
at march 31, 2018 0.21:1).
(j) during the year ended march 31, 2019, the company paid the final dividend of R16 per equity share for the year ended
march 31, 2018 amounting to R 2243.18 crore and dividend distribution tax of R 353.60 crore.
(k) on may 10, 2019, the Board of directors has recommended the final dividend of R18 per equity share for the year ended
march 31, 2019 subject to approval of shareholders. on approval, the total dividend payment based on number of shares
outstanding as at march 31, 2019 is expected to be R2524.91 crore and the payment of dividend distribution tax is expected to be
R 233.66 crore.
350
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 [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)(iv)]
Hedging reserve [note 1(m)] & [note 45(l)]
cash flow hedging reserve
cost of hedging reserve
debt instruments through other comprehensive income [note 1(m)]
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
–
153.20
10.52
(6.36)
8471.99
177.63
(70.72)
211.51
(102.92)
106.91
440.26
25507.91
17527.67
5.69
59.62
(7.24)
52270.17
55.45
4.17
114.50
(12.34)
v crore
3.56
153.20
10.52
(6.36)
8363.02
108.59
458.94
25395.78
14250.01
(0.37)
102.16
54.93
48893.98
*
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 is not to be utilised by the company except to redeem debentures.
# general reserve : the company created a General reserve in earlier years pursuant to the provisions of the companies act,1956
where in certain percentage of profits was 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 .
351
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [19]
Non-current liabilities: Financial liabilities-Borrowings
Particulars
Unsecured:
Redeemable non-convertible fixed rate debentures [note 19(a)(ii)]
Redeemable non-convertible inflation linked debentures [note 19(a)(iii)]
0.675% Foreign currency convertible bonds [note 19(b)]
term loan from banks [note 19(c)]
Finance lease
as at 31-3-2019
as at 31-3-2018
v crore
2180.66
120.48
–
90.67
0.06
2391.87
v crore
2179.85
116.96
1245.64
1952.51
0.20
5495.16
19(a) (i)
Secured redeemable non-convertible fixed rate debentures (privately placed):
Face value per
debenture (R)
date of
allotment
as at
31-3-2019
R crore
as at
31-3-2018
R crore
interest for the
year 2018-2019
terms of repayment for debentures
outstanding as at 31-3-2019
1000000
January 5,
2009
less:
–
–
–
408.58
–
–
408.58 current maturity of long term borrowings [note 24]
– Borrowings non-current [note 19]
Security: the debentures were 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
as at
31-3-2019
R crore
as at
31-3-2018
R crore
interest for the
year 2018-19
terms of repayment for debentures
outstanding as at 31-3-2019
1
2
3
4
5
1000000
april 10,2012
273.56
273.51
1000000
may 26,2011
322.71
322.61
1000000
may 11,2010
324.32
324.22
1000000
april 13,2010
216.95
216.89
1000000
September
24, 2015
1043.12
1042.62
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.
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
2180.66
2179.85
Borrowings – non-current [note 19]
352
Notes forming part of the Financial statements (contd.)
Note [19] (contd.)
19 (a) (iii) Unsecured redeemable non-convertible inflation linked debentures:
Face value per
debenture (R)
date of
allotment
as at
31-3-2019
R crore
as at
31-3-2018
R crore
interest for the year
2018-19
terms of repayment for debentures
outstanding as at 31-3-2019
1000000
may 23,2013
120.48@
116.96@ 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 1363.39 crore as at
march 31, 2019 (as at march 2018: R 1245.64 crore) represent 200000 bonds of $1000 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 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.
19(c) details of term loans (Unsecured):
Sr.
no.
1
2
3
4
5
6
7
8
Total
less:
as at
31-3-2019
R crore
–
–
–
1382.59
691.28
694.19
31.79
58.88
2858.73
2768.06
90.67
as at
31-3-2018
R crore
326.21
38.04
163.36
1301.68
650.83
–
–
–
2480.12
Rate of interest
terms of repayment of term loan outstanding as at 31-3-2019
USd liBoR + Spread
USd liBoR + Spread
USd liBoR + Spread
USd liBoR + Spread
USd liBoR + Spread
USd liBoR + Spread
8.40% p.a. payable monthly
9.00% p.a. payable monthly
Repaid on July 2, 2018
Repaid on June 18, 2018
Repaid on october 19, 2018
Repayable on october 21, 2019
Repayable on november 4, 2019
Repayable on January 20, 2020
Repayable on may 7, 2023
Repayable on october 19, 2023
527.61 current maturity of long term borrowings [note 24]
1952.51 Borrowings non–current [note 19]
loans guaranteed by directors - R nil (previous year: R nil)
19(d) Sales tax deferment loan (unsecured):
Sr.
no.
1
total
as at 31-3-2019
R crore
as at 31-3-2018
R crore
Rate of
interest
terms of repayment as at march 31, 2019
–
–
0.08 interest Free
0.08
current maturity of long term borrowings [note 24]
353
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [20]
Non-current liabilities: other financial liabilities
Particulars
Forward contract payables
embedded derivative payables
Financial guarantee contracts
due to others
Note [21]
Non-current liabilities: provisions
Particulars
employee pension scheme [note 50(ii)(a)]
Post -retirement medical benefits plan [note 50(ii)(a)]
Note [22]
other non- current liabilities
Particulars
other Payables (deferred income on day one fair valuation of financial instruments)
Note [23]
Current liabilities: Financial liabilities - Borrowings
as at 31-3-2019
as at 31-3-2018
v crore
6.76
26.63
16.64
3.72
53.75
v crore
17.82
75.79
9.27
5.76
108.64
as at 31-3-2019
as at 31-3-2018
v crore
308.36
189.26
497.62
v crore
301.13
171.74
472.87
as at 31-3-2019
as at 31-3-2018
v crore
0.58
v crore
1.27
Particulars
Secured Unsecured
total
Secured Unsecured
total
as at 31-3-2019
as at 31-3-2018
loans repayable on demand from banks [note 23(b)]
Short term loan and advances from banks [note 23(b)]
loans from related parties:
v crore
v crore
v crore
v crore
v crore
v crore
24.54
–
–
3610.98
24.54
3610.98
20.06
96.53
–
3586.68
20.06
3683.21
Subsidiary companies
–
32.73
32.73
–
426.30
426.30
24.54
3643.71
3668.25
116.59
4012.98
4129.57
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 5930.00 crore as at
march 31, 2019 (march 31, 2018 : R 6026.53 crore)
354
Notes forming part of the Financial Statements (contd.)
Note [24]
Current liabilities: 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)]
0.675% Foreign currency convertible bonds [Note 19(b)]
Sales tax deferment loan [Note 19(d)]
24(a) Loans guaraneed by directors R Nil (previous year: R Nil)
Note [25]
Current liabilities: Financial liabilities - other trade payables
Particulars
Acceptances
Due to related parties:
Subsidiary companies
Associate companies
Joint venture companies
Due to others
Note [26]
Current liabilities: other financial liabilities
Particulars
Unclaimed dividend
Forward contract payable
Embedded derivative payable
Financial guarantee contracts
Due to others [Note 26(a)]
As at 31-3-2019
As at 31-3-2018
v crore
–
2768.06
1363.39
–
4131.45
v crore
408.58
527.61
–
0.08
936.27
As at 31-3-2019
As at 31-3-2018
v crore
v crore
520.39
v crore
v crore
478.07
928.65
4.04
1006.51
767.28
2.92
995.18
1939.20
33616.77
36076.36
1765.38
28713.84
30957.29
As at 31-3-2019
As at 31-3-2018
v crore
84.64
234.15
68.17
9.87
1461.02
1857.85
v crore
63.69
127.90
61.34
6.22
1618.85
1878.00
26(a) Due to others include due to directors R 57.00 crore (previous year: R 49.11 crore)
355
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [27]
other current liabilities
contract liabilities [Refer note 48(d)]
Particulars
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
due to customers (construction and project related activity)
advances from customers
6678.88
14593.29
5346.45
14070.34
other Payables
Note [28]
Current liabilities- provisions
Particulars
Provision for employee benefits:
Gratuity [note 50(ii)(a)]
compensated absences
employee pension scheme [note 50(ii)(a)]
Post-retirement medical benefits plan [note 50(ii)(a)]
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
subsidiaries/joint venture 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
356
21272.17
1278.47
22550.64
19416.79
1428.67
20845.46
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
103.26
585.25
24.52
7.84
91.10
515.34
22.58
7.09
720.87
702.96
1423.83
636.11
466.11
1102.22
as at 31-3-2019
as at 31-3-2018
v crore
2145.93
157.68
218.41
676.38
7520.77
30986.48
7586.12
84.92
7187.07
v crore
2113.67
170.25
193.33
423.22
7424.61
20305.06
7267.96
139.20
6576.16
Notes forming part of the Financial statements (contd.)
Note [29] (contd.)
Notes:
1.
the company does not expect any reimbursements in respect of the above contingent liabilities.
2.
3.
4.
5.
it is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution of
the arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above 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 twelve 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 six 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.
Note [30]
Commitments
Particulars
as at 31-3-2019
as at 31-3-2018
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,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
(b) Funding committed by way of equity/loans to subsidiary companies
(c) Funding committed by way of equity (including investment through
purchase of investments from other parties*)
675.07
0.01
0.05
662.50
658.86
–
3.64
845.00
10732.85
675.13
715.45
–
* the company has entered into a definitive share purchase agreement to acquire 20.32% stake in mindtree limited on
march 18, 2019 at a price of R 980 per share aggregating to consideration of R 3269.00 crore. Further, the company has placed
a purchase order with its stock broker for acquiring 15% stake through on-market purchases for an overall consideration amount
not exceeding R 2434.00 crore from any recognised stock exchange, but only after receipt of relevant approvals from regulatory
authorities. the company will also make an open offer to acquire 31% stake for a consideration of R 5029.85 crore in accordance
with the requirements of the SeBi (Substantial acquisition of Shares and takeover) Regulations, 2011. the completion of these
transactions are subject to receipt of necessary regulatory approvals.
Subsequent to march 31, 2019 and up to may 9,2019, the company acquired 4,25,90,088 equity shares of mindtree limited
(representing 25.94% of the share capital of that company) at a cost of R 4180.91 crore through block deal purchase from a major
shareholder (and his associate entities) and on- market purchases.
357
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [31]
revenue from operations
Particulars
Sales and service:
construction and project related activity
manufacturing and trading activity
Property development activity
engineering and service fees
Servicing
commission
other operational income:
income from hire of plant and equipment
Profit/(loss) on sale of investment properties
lease rentals
income from services to Group companies
Premium earned (net) on related forward exchange contracts
miscellaneous income
2018-19
2017-18
v crore
v crore
v crore
v crore
77799.03
6238.01
642.08
10.06
933.61
160.16
67.65
565.60
58.93
111.63
26.22
374.88
66978.07
5575.56
96.68
18.74
666.64
159.80
85782.95
73495.49
122.03
–
74.08
326.71
36.02
557.32
1204.91
86987.86
1116.16
74611.65
Note [32]
other income
interest income:
Particulars
2018-19
2017-18
v crore
v crore
v crore
v crore
Subsidiaries, associates and joint venture companies
others
dividend income:
Subsidiary companies
Joint venture 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)
213.11
418.32
1313.98
19.44
178.70
209.59
287.30
631.43
496.89
535.59
–
2693.08
1512.12
251.15
(22.60)
28.64
83.23
284.87
2768.84
3228.67
(2233.22)
(125.74)
60.18
62.75
123.14
1612.67
358
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, stock-in-trade and
work-in-progress:
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
Provision for foreseeable losses on construction contracts
other provisions/(reversal of provisions) [note 54(a)]
miscellaneous expenses
2018-19
2017-18
v crore
v crore
v crore
v crore
7917.34
84.55
8018.02
75.03
7832.79
–
29099.38
1786.14
2341.99
22021.74
7942.99
149.10
22236.60
1531.22
1808.79
19620.99
230.41
386.27
5549.53
6166.21
154.24
285.20
4430.65
4870.09
–
1684.82
42.86
435.32
1411.76
1206.82
232.69
444.99
530.91
728.18
65.33
5.93
396.02
192.44
35.37
168.17
535.86
154.24
285.20
4052.01
4491.45
221.52
169.68
3052.84
3444.04
(1296.12)
(1047.41)
(48.37)
956.70
15.49
363.01
1198.37
763.52
188.96
422.12
375.01
608.14
52.42
5.05
339.96
181.91
20.18
(38.05)
973.80
* note: current year includes opening adjustments on transition to ind aS 115.
8117.47
69903.39
6378.22
58620.50
359
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
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(ii)(b)]
expenses on employees stock option schemes [note 17(h)(v)(B)]
insurance expenses - medical and others
Staff welfare expenses
Recoveries on account of deputation
Note [35]
sales, administration and other expenses
Particulars
Power and fuel
Packing and forwarding
Professional fees
audit fees [note 55]
insurance
Rent
Rates and taxes
travelling and conveyance
Repairs to buildings
General repairs and maintenance
directors’ fees
telephone, postage and telegrams
advertising and publicity
Stationery and printing
commission:
distributors and agents
others
Bank charges
miscellaneous expenses
Bad debts and advances written off
less: allowance for doubtful debts and advances written back
252.47
214.12
allowance for doubtful debts and advances (net)
exchange (gain)/loss [net]
other provisions [note 54]
Recoveries from subsidiaries, associates and joint venture companies
360
2018-19
v crore
v crore
5613.91
2017-18
v crore
v crore
5070.64
131.40
14.46
64.40
119.90
13.16
72.50
2018-19
v crore
210.26
74.70
90.34
579.13
(485.85)
6082.49
v crore
60.47
119.37
358.41
6.00
39.51
215.92
48.78
296.41
19.11
241.54
1.45
108.03
88.13
44.29
21.68
8.20
94.60
660.71
38.35
56.82
(121.76)
92.12
(178.36)
2319.78
205.56
69.77
83.35
603.36
(417.94)
5614.74
v crore
58.22
96.75
265.31
4.88
34.48
244.15
54.56
304.71
18.51
228.33
0.77
101.63
67.92
38.18
22.47
5.68
83.56
536.83
20.36
745.17
(148.60)
70.17
(173.31)
2680.73
2017-18
v crore
375.33
354.97
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.
2018-19
Note 34-
Employee
benefits
expense
Note 35 - Sales,
administration
and other
expenses
Total
–
–
90.34
–
–
–
–
–
–
60.47
119.37
39.51
215.92
48.78
296.41
19.11
241.54
660.71
1745.29
554.69
362.54
660.91
579.69
1024.59
25.04
637.56
1196.57
Note 33 -
Manufacturing,
construction
and operating
expenses
956.70
363.01
188.96
422.12
375.01
608.14
5.05
339.96
973.80
Nature of expenses
Sr.
No.
1
2
3
4
5
6
7
8
9
Power and fuel
Packing and forwarding
Insurance
Rent
Rates and taxes
Travelling and conveyance
Repairs to buildings
General repairs and maintenance
Miscellaneous expenses
Note [36]
Finance costs
Note 33 -
Manufacturing,
construction
and operating
expenses
1684.82
435.32
232.69
444.99
530.91
728.18
5.93
396.02
535.86
Particulars
interest expenses
other borrowing costs
exchange loss (attributable to finance costs)
v crore
Total
2017-18
Note 34-
Employee
benefits
expense
Note 35-Sales,
administration
and other
expenses
–
–
83.35
–
–
–
–
–
–
58.22 1014.92
459.76
96.75
306.79
34.48
666.27
244.15
429.57
54.56
912.85
304.71
23.56
18.51
568.29
228.33
536.83 1510.63
2018-19
v crore
1601.50
2.78
37.11
1641.39
2017-18
v crore
1415.71
3.59
12.93
1432.23
Note [37]
Particulars in respect of loans and advances in the nature of loans to related parties as required by the SeBi (listing obligations and
disclosure Requirements) Regulations, 2015:
v crore
Sr.
no.
name of the company
Balance as at
31-3-2019
31-3-2018
maximum outstanding during
2017-18
2018-19
loans and advances in the nature of loans given to subsidiaries:
l&t Seawoods Private limited
a
l&t Realty limited
B
l&t Shipbuilding limited
c
l&t Special Steels & Heavy Forgings Private limited*
d
PnG tollway limited
e
l&t Hydrocarbon engineering limited
F
l&t construction equipment limited
G
nabha Power limited
H
l&t Finance limited
i
l&t metro Rail (Hyderabad) limited
J
l&t Finance Holdings limited
K
l
Hi-tech Rock Products & aggregates limited
m l&t infrastructure development Projects limited
total
–
70.04
454.50
1507.65
–
54.07
–
379.80
–
109.00
–
301.85
18.20
2895.11
–
76.75
225.50
1379.11
18.20
–
7.00
594.29
–
–
–
–
–
2300.85
147.29
85.03
558.88
1507.65
–
56.64
7.05
1009.87
1506.84
109.00
1016.16
301.85
18.20
–
133.10
998.12
1401.86
18.20
0.31
42.91
1789.97
–
–
–
–
–
* l&t Special Steels & Heavy Forgings Private limited R1507.65 crore is before adjusting for impairment of R 263 crore.
361
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [37] (contd.)
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/investments made/
guarantees given/security provided)
Purpose for which the loan/guarantee/
security is proposed to be utilised by
the recipient
(a)
loans and advances
Subsidiary companies:
(a) l&t Realty limited
(b) l&t Shipbuilding limited
(c) l&t Special Steels & Heavy Forgings Private limited*
(d) PnG tollway limited
(e) l&t construction equipment limited
(f) l&t Hydrocarbon engineering limited
(g) nabha Power limited
(h) l&t metro Rail (Hyderabad) limited
(i) Hi-tech Rock Products & aggregates limited
(j) l&t infrastructure development Projects limited
Project funding
Working capital
Working capital and project funding
Project funding
Working capital
Working capital
Part financing of original project cost
temporary project funding and
working capital
General corporate purposes and
investments
General corporate purpose
total
other advances:
(B)
Subsidiary companies:
l&t Uttaranchal Hydropower 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) l&t Hydrocarbon engineering limited
(h) l&t metro Rail (Hyderabad) limited
corporate guarantee given for
subsidiary’s debt
2018-19
v crore
2017-18
70.04
454.50
1507.65
–
–
54.07
379.80
109.00
301.85
18.20
2895.11
76.75
225.50
1379.11
18.20
7.00
–
594.29
–
–
–
2300.85
–
–
19.45
19.45
11.94
–
427.31
1331.00
4025.00
735.56
739.96
250.00
16.88
60.60
418.95
3156.00
3707.00
65.18
–
–
362
Notes forming part of the Financial statements (contd.)
Note [38] (contd.)
disclosure pursuant to section 186 of the Companies Act 2013: (contd.)
Sr.
no.
nature of the transaction (loans given/investments made/
guarantees given/security provided)
Purpose for which the loan/guarantee/
security is proposed to be utilised by
the recipient
(i) larsen & toubro atco Saudia llc
(j) larsen & toubro arabia llc
(k) l&t technology Services limited
(l) l&t technology Services llc
(m) larsen & toubro Heavy engineering llc
(n) larsen & toubro (Saudi arabia) llc
(o) l&t Hydrocarbon engineering limited
(p) l&t-mHPS Boilers Private limited
corporate guarantee given for
subsidiary’s project performance
Guarantees issued by bank out of
the company’s sanctioned limits to
customers of l&t-mHPS Boilers Private
limited for project performance
(d)
investments in fully paid equity instruments and current
investments
2018-19
2260.03
8442.15
770.67
138.31
–
1610.23
17736.16
28.93
v crore
2017-18
2130.11
5971.38
787.73
130.35
1047.98
1517.67
8691.05
28.79
38507.25
27729.67
Refer to note 5 and note 10
* loan given to l&t Special Steels & Heavy Forgings Private limited R 1507.65 crore is before adjusting for impairment of R 263 crore.
Note [39]
amount required to be spent by the company on corporate Social Responsibility (cSR) related activities during the year is
R 121.47 crore (previous year: R 97.29 crore).
the amount recognised as expense in the Statement of Profit and loss on cSR related activities is R 121.68 crore (previous year:
R 100.92 crore), which comprises:
v crore
total
Sr.
no.
(a)
Particulars
disclosed
under
2018-19
Provided
Paid
total
2017-18
Paid Provided
construction/acquisition of assets
recognised as expense and shown
under sales, administration and other
expenses
note 35
3.80
0.18
3.98
4.42
1.52
5.94
(b)
other revenue expenses:
recognised as expense and shown
under sales, administration and other
expenses
recognised as expense and shown under
note 35
91.02
9.66
100.68
70.21
9.19
79.40
employee benefits expense
note 34
total
16.99
111.81
0.03
9.87
17.02
121.68
15.54
90.17
0.04
10.75
15.58
100.92
Note [40]
the expenditure on research and development activities recognised as expense in the Statement of Profit and loss is R 168.23 crore
(previous year: R 138.93 crore). Further, the company has incurred capital expenditure on research and development activities as
follows:
(a) on tangible assets R 5.46 crore (previous year: R 6.22 crore);
(b) on intangible assets being expenditure on new product development R 40.53 crore (previous year: R 48.08 crore) [note 1(i)(ii)]; and
(c) on other intangible assets R 1.96 crore (previous year: R 1.84 crore).
in addition, the company has incurred expenditure of R 0.52 crore (previous year: R 2.70 crore) which is customer funded.
363
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
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 buildings 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
31-3-2019
6.51
6.79
–
13.30
R crore
as at
31-3-2018
49.01
23.51
–
72.52
(a)
(B)
assets acquired on finance lease comprises plant & 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.
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
minimum lease payment
v crore
Present value of minimum
lease payments
as at
31-3-2019
0.01
as at
31-3-2018
–
as at
31-3-2019
–
as at
31-3-2018
–
0.02
0.13
0.16
0.10
0.06
0.02
0.28
0.30
0.10
0.20
–
0.06
0.06
–
0.06
–
0.20
0.20
–
0.20
(ii) operating leases:
(a) the company has taken various commercial premises and plant & equipment under cancellable operating leases.
these lease agreements are renewed on expiry, based on requirement, convenience and other factors. 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
as at
31-3-2019
19.62
12.43
0.25
32.30
R crore
as at
31-3-2018
23.79
28.29
6.80
58.88
(c) lease rental expenses in respect of operating leases: R 150.49 crore (previous year: R 103.49 crore)
364
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
31-3-2019
41.72
v crore
as at
31-3-2018
388.00
(a)
investment held for sale as at march 31, 2019 represents equity investment in l&t technology Services limited R 41.72 crore.
Regulation 38 of the SeBi (listing obligation and disclosure Requirements) Regulations, 2015 requires a listed entity to comply
with the minimum public shareholding requirements as specified in rules 19(2) and 19a of the Securities contracts (Regulation)
Rules, 1957 (“ScRR”). Rule 19(2)(b) of the ScRR requires the maintenance of a minimum public shareholding of 25% at all times
of each class or kind of equity shares or convertible debentures issued by a listed company.
the company is holding 78.88% in its listed subsidiary company l&t technology Services limited. in order to comply with the said
requirement, the company plans to divest its investment in the said subsidiary in the open market within twelve months from the
reporting date.
the above investment forms part of the unallocable corporate assets. [note 47(a)].
(b)
investment held for sale as at march 31, 2018 represents equity investment in marine infrastructure developer Private limited
(midPl). through a scheme of arrangement of demerger, the Port business in l&t Shipbuilding limited was transferred to midPl
(effective date march 22, 2017) in financial year 2016-17. as a shareholder, the company had received 38,80,00,000 equity shares
of R10 each. the company divested its stake in midPl to the strategic partner in June 28, 2018.
the above investment forms part of the unallocable corporate assets as at march 31, 2018. [note 47(a)].
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
2154.51
As at 31-3-2019
After twelve
months
1065.93
Within twelve
months
1680.39
As at 31-3-2018
After twelve
months
819.66
Total
3220.44
v crore
Total
2500.05
27932.56
284.26
28216.82
22391.67
525.78
22917.45
1293.86
1995.18
–
–
1293.86
1995.18
991.91
3441.59
0.42
–
992.33
3441.59
37120.43
6970.23
44090.66
32752.18
7747.75
40499.93
(b) current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
Particulars
Note
Within twelve
months
As at 31-3-2019
After twelve
months
Within twelve
months
As at 31-3-2018
After twelve
months
Total
v crore
Total
Trade payables:
Due to micro enterprises and small enterprises
Due to others
Other financial liabilities
Other current liabilities
Provisions
193.70
35289.23
1835.18
8.16
787.13
22.67
201.86
131.05
6.66
137.71
36076.36
30314.50
642.79
30957.29
1857.85
1858.35
19.65
1878.00
18116.93
4433.71
22550.64
16183.09
4662.37
20845.46
1301.45
122.38
1423.83
991.53
110.69
1102.22
25
26
27
28
365
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [44]
disclosure pursuant to ind aS 107 “Financial instruments: disclosures”: market risk management
(a) Foreign exchange rate and interest rate risk:
the company regularly reviews its foreign exchange forward and option positions and interest rate swaps, both on a standalone
basis and in conjunction with its underlying foreign currency and interest rate related exposures. the company follows cash flow
hedge accounting for Highly Probable Forecasted exposures (HPFe) hence the movement in mark to market (mtm) of the hedge
contracts undertaken for such exposures is likely to be offset by contra movements in the underlying exposures values. However,
till the point of time that the HPFe becomes an on-balance sheet exposure, the changes in mtm of the hedge contracts will impact
the Balance Sheet of the company. Further, given the effective horizons of the company’s risk management activities which
coincide with the durations of the projects under execution and could extend across 3-4 years and the business uncertainties
associated with the timing and estimation of the project exposures, the recognition of the gains and losses related to these
instruments may not always coincide with the timing of gains and losses related to the underlying economic exposures and,
therefore, may affect the company’s financial condition and operating results. Hence, the company monitors the potential risk
arising out of the market factors like exchange rates, interest rates, price of traded investment products etc., on a regular basis. For
on balance sheet exposures, the company monitors the risks on net unhedged exposures.
(i)
Foreign exchange rate risk:
in general, the company is a net receiver of foreign currency. accordingly, changes in exchange rates and in particular a
strengthening of the indian Rupee 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
Net exposure to foreign currency risk in respect of
recognised financial assets/(recognised financial
liabilities)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to non
financial assets/(liabilities)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to firm
commitments and highly probable transactions
Receivable/(payable) exposure with respect to forward
contracts and embedded derivatives not designated as
cash flow hedge
As at 31-3-2019
As at 31-3-2018
US Dollars
including
pegged
currencies
EURO
Japanese
Yen
US Dollars
including
pegged
currencies
EURO
Japanese
Yen
v crore
(3190.33)
141.69
(4.02)
(1593.16)
(150.69)
(95.77)
552.57
222.95
–
594.48
222.04
–
1368.13
(833.18)
540.83
1848.44
(1388.82)
659.25
(104.88)
122.63
(24.22)
(1219.10)
(6.92)
–
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
366
Notes forming part of the Financial statements (contd.)
Note [44] (contd.)
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 29.88 crore as at march 31, 2019 and R 25.61 crore as at march 31, 2018.
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, 2019 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 31-3-2019
v crore
as at 31-3-2018
5508.64
5157.15
a hypothetical 50 basis point shift in respective currency liBoRs and other benchmarks on the unhedged loans would result
in a corresponding increase/decrease in interest cost for the company on a yearly basis as follows:
Particulars
indian rupees
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
2018-19
2017-18
v crore
impact on equity
as at
31-3-2019
as at
31-3-2018
(0.47)
0.47
(17.45)
17.45
(0.45)
0.45
(16.39)
16.39
(0.47)
0.47
(17.45)
17.45
(0.45)
0.45
(16.39)
16.39
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
367
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [44] (contd.)
market value of debt securities would result in a value change of +/- R 11.08 crore as at march 31, 2019 and +/- R 14.04 crore as
at march 31, 2018. 5% change in the equity funds’ naV would result in a value change of +/- R 38.91 crore as at march 31, 2019
and +/- R 16.24 crore as at march 31, 2018 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:
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 as at april 1
changes in allowance for expected credit loss:
Particulars
Provision/(reversal) of allowance for expected credit loss
additional provision (net) towards credit impaired receivables
Write off as bad debts
closing balance as at march 31 [reported under note 11]
2018-19
2224.97
71.30
188.35
(214.12)
2270.50
v crore
2017-18
1916.66
171.07
494.34
(357.10)
2224.97
(ii) trade receivable written off during the year but still enforceable for recovery amounts to R nil [previous year: R 409.43 crore,
out of this R 243.62 crore included above and balance R 165.81 crore included in exceptional items. Further, exceptional
items for the year ended march 31, 2018 also included write off of retention money not due (classified as non-financial asset)
amounting to R 128.94 crore. (refer to note 46)].
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)
368
note
5
5
10
10
7,15
7,15
6,14
11
15
7,12,13
as at
31-3-2019
R crore
as at
31-3-2018
97.35
888.68
1631.69
656.38
9.84
12.40
3296.34
3026.51
28216.82
730.02
7889.25
927.46
40790.06
136.64
1085.08
1070.80
424.46
3.77
21.33
2742.08
2676.46
22917.45
2387.74
4637.58
767.87
33387.10
Notes forming part of the Financial statements (contd.)
Note [45] (contd.)
(a) category-wise classification for applicable financial assets: (contd.)
Sr.
no.
iii. measured at fair value through other comprehensive income (FVtoci):
Particulars
investment in government securities, bonds and debentures
(i)
(ii) derivative financial instruments designated as cash flow hedges
(iii) embedded derivatives designated as cash flow hedges
Sub-total (iii)
total (i+ii+iii)
(b) category-wise classification for applicable financial liabilities:
Sr.
no.
i.
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:
due to micro enterprises and small enterprises
due to others
(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)
(c)
items of income, expense, gains or losses related to financial instruments:
Sr.
no.
i
a
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 derivative:
a. on forward contracts not designated as cash flow hedges
b. on embedded derivatives contracts not designated as cash flow hedges
c.
impairment loss on investments
on futures not designated as cash flow hedges
3.
Sub-total (a)
note
10
7,15
7,15
note
20,26
20,26
as at
31-3-2019
2406.91
602.52
0.18
3009.61
47096.01
R crore
as at
31-3-2018
2849.72
358.49
1.96
3210.17
39339.35
R crore
as at
31-3-2019
as at
31-3-2018
6.86
3.26
10.12
13.52
15.79
29.31
19,23,24
10191.57
10561.00
25
20,26
20,26
20,26
201.86
36076.36
1549.38
48019.17
137.71
30957.29
1688.31
43344.31
234.05
91.54
325.59
26.51
48381.39
132.19
121.34
253.53
15.49
43642.64
2018-19
R crore
2017-18
314.03
(2181.30)
42.02
(9.51)
(22.60)
(213.17)
110.77
0.15
17.05
(125.74)
–
(2289.84)
369
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [45] (contd.)
(c)
items of income, expense, gains or losses related to financial instruments: (contd.)
Particulars
Financial assets measured at amortised cost:
(i)
exchange gains/(losses) on revaluation or settlement of items denominated in foreign currency
(trade receivables, loans given etc.)
(ii) allowance/(reversal) for expected credit loss during the year in the Statement of Profit or loss
(iii) Provision for impairment loss (other than expected credit loss) [net]
(iv) Gains/(losses) on derecognition:
Bad debts (written off)/written back (net)
1.
2. Gains/(losses) on transfer of financial assets (on non-recourse basis)
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.
(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 asset and 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)
other income/(expenses):
dividend income:
dividend income from investments measured at FVtPl
Sub-total (a)
Sr.
no.
B
c
ii
a
B
iii
a
370
2018-19
R crore
2017-18
273.96
(71.30)
(411.56)
256.40
(32.18)
15.32
(420.35)
84.03
(336.32)
(210.23)
123.70
(171.07)
(525.60)
(186.17)
(35.73)
(794.87)
(162.60)
117.68
(44.92)
(3129.63)
(141.74)
(51.22)
(147.38)
92.29
39.09
(250.03)
(79.30)
(38.23)
(62.89)
(51.49)
254.95
188.29
0.64
192.70
(442.73)
(21.95)
114.85
(153.08)
178.70
178.70
2693.08
2693.08
Notes forming part of the Financial statements (contd.)
Note [45] (contd.)
(c)
items of income, expense, gains or losses related to financial instruments: (contd.)
Sr.
no.
B
c
Particulars
interest income:
(a) Financial assets measured at amortised cost
(b) Financial assets measured at fair value through other comprehensive income
(c) Financial assets measured at fair value through Profit or loss
Sub-total (B)
interest expense:
(a)
(b)
Financial liabilities that are measured at amortised cost
derivative instruments (including embeded derivatives) that are measured at fair value through
other comprehensive income (reclassified to Profit or loss during the year)
Financial liabilities that are measured at fair value through Profit or loss
(c)
Sub-total (c)
total [iii] = (a+B+c)
2018-19
R crore
2017-18
284.93
180.69
32.80
498.42
269.00
226.95
0.98
496.93
(1001.78)
(860.74)
(259.02)
(0.06)
(1260.86)
(583.74)
(266.60)
(15.48)
(1142.82)
2047.19
(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 bond
Redeemable non-convertible fixed rate debentures
term loan from banks
total
as at 31-3-2019
as at 31-3-2018
carrying
amount
1363.39
2180.66
90.67
Fair Value
1375.81
2210.39
101.09
carrying
amount
Fair Value
1245.64
1241.13
2588.43
2647.14
–
–
3634.72
3687.29
3834.07
3888.27
v crore
Fair value
hierarchy
l2*
l2*
l2*
note: the carrying amounts of trade and other payables are considered to be the same as their fair values due to their short
term nature. the carrying amounts of borrowings with floating rate of interest are considered to be close to the fair value.
* Valuation technique l2: Future cash flows discounted using G-sec/liBoR rates plus corporate spread.
(e) Fair value hierarchy of financial assets and liabilities measured at fair value:
Particulars
Note
As at 31-3-2019
Level 2
Level 3
Level 1
Total
Level 1
As at 31-3-2018
Level 2
Level 3
v crore
Total
Financial assets:
Investments at FVTPL:
(i)
Equity shares (other than those held in subsidiary &
assosiate 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
31.67
–
65.68
97.35
72.27
–
64.37
136.64
5
10
10
7,15
7,15
–
1631.69
656.38
–
888.68
–
–
9.84
–
12.40
–
–
–
–
–
888.68
1631.69
656.38
9.84
– 1085.08
–
–
3.77
1070.80
424.46
–
– 1085.08
– 1070.80
424.46
–
3.77
–
12.40
–
21.33
–
21.33
371
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [45] (contd.)
(e) Fair value hierarchy of financial assets and liabilities measured at fair value (contd.)
Particulars
Note
As at 31-3-2019
Level 2
Level 3
Level 1
Total
Level 1
As at 31-3-2018
Level 2
Level 3
v crore
Total
Investments at FVTOCI
(i)
Debt instruments viz. government securities, bonds and
debentures
(ii) Derivative financial instruments designated as cash
flow hedges
(iii) Embedded derivative financial instruments designated
as cash flow hedges
Total
Financial Liabilities:
(i) At FVTPL - Designated as FVTPL:
(a) Derivative instruments not designated as cash flow
hedges
(b) Embedded derivative instruments not designated as
cash flow hedges
(ii) Designated as FVTOCI:
(a) Derivative financial instruments designated as cash
flow hedges
(b) Embedded derivative financial instruments designated
as cash flow hedges
7,15
7,15
20,26
20,26
20,26
20,26
10
2406.91
–
–
602.52
–
–
2406.91
2849.72
–
– 2849.72
602.52
–
358.49
–
358.49
–
4726.65
0.18
1513.62
–
65.68
0.18
6305.95
–
1.96
4417.25 1470.63
–
1.96
64.37 5952.25
–
–
–
–
–
6.86
3.26
234.05
91.54
335.71
–
–
–
–
–
6.86
3.26
234.05
91.54
335.71
–
–
–
–
–
13.52
15.79
132.19
121.34
282.84
–
–
–
–
–
13.52
15.79
132.19
121.34
282.84
Total
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
(f) movement of items measured using unobservable inputs (level 3):
date.
Particulars
Balance as at 1-4-2017
Gains/(losses) recognised in Profit or loss during 2017-18
Balance as at 31-3-2018
Gains/(losses) recognised in Profit or loss during 2018-19
Balance as at 31-3-2019
R crore
equity investment in tidel Park limited
55.94
8.32
64.27
1.32
65.58
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
31-3-2019
65.58
Fair Value
as at
31-3-2018
Significant unobservable
inputs
64.27 31-3-2019:
1. Net realisation per month
R 30.90 per sq/ft.
2. Capitalisation rate 12.25%
31-3-2018:
1. Net realisation per month
R 30 per sq/ft.
2. Capitalisation rate 12%
v crore
Sensitivity
31-3-2019 : 1% change in net realisation would result in
+/- R 0.32 crore (post tax +/- R 0.21 crore).
25 bps change in capitalisation rate would result in
+/- R 0.63 crore (post tax +/- R 0.41 crore).
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).
372
Notes forming part of the Financial statements (contd.)
Note [45] (contd.)
(g) maturity profile of financial liabilities (undiscounted values)
Particulars
note
as at 31-3-2019
Within
twelve
months
after twelve
months
total
as at 31-3-2018
Within
twelve
months
after twelve
months
v crore
total
a. non derivative liabilities:
Borrowings
trade payables:
due to micro enterprises and small enterprises
due to others
other financial liabilities
total
B. derivative liabilities:
Forward contracts
embedded derivatives
total
19, 23, 24
8116.36
2522.89
10639.25
5370.82
5874.29
11245.11
25
20, 26
20, 26
20, 26
193.70
35289.23
1529.37
45128.66
238.25
69.75
308.00
8.16
787.13
46.52
3364.70
8.10
28.91
37.01
201.86
36076.36
1575.89
48493.36
131.05
30314.50
1669.12
37485.49
246.35
98.66
345.01
131.32
63.40
194.72
6.66
642.79
34.68
6558.42
19.80
85.37
105.17
137.71
30957.29
1703.80
44043.91
151.12
148.77
299.89
(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 dollars
eURo
malaysian Ringgit
Saudi Riyal
omani Riyal
arab emirates dirham
Bangladesh taka
British Pound
Japanese Yen
Kuwaiti dinars
qatari Riyals
thai Baht
Particulars
(b) Payable hedges:
US dollars
eURo
arab emirates dirham
Swiss Franc
chinese Yuan
British Pound
Japanese Yen
Kuwaiti dinars
Swedish Krona
omani Riyal
canadian dollar
nominal
amount
(R crore)
5602.72
1208.19
113.99
96.64
230.00
1228.16
873.53
3.15
1449.58
695.55
1551.27
–
nominal
amount
(R crore)
10513.68
3103.39
–
294.76
–
30.52
1058.26
8.69
–
28.71
40.53
as at 31-3-2019
average
rate
(R)
Within
twelve
months
(R crore)
after
twelve
months
(R crore)
nominal
amount
(R crore)
as at 31-3-2018
average
rate
(R)
Within
twelve
months
(R crore)
after
twelve
months
(R crore)
72.61
85.76
17.54
21.04
187.51
19.34
0.88
96.62
0.68
235.50
19.72
–
4131.54
944.89
53.37
96.64
150.51
1228.16
854.91
3.15
1284.36
403.43
1227.83
–
as at 31-3-2019
average
rate
(R)
Within
twelve
months
(R crore)
70.53
81.73
–
72.76
–
95.54
0.66
235.83
–
180.36
54.04
9787.62
2969.29
–
294.76
–
30.52
874.72
8.69
–
28.71
40.53
263.30
60.62
–
79.49
1471.18 4178.79
904.48
138.38
–
301.94
– 1414.99
–
18.62
4.41
–
923.19
165.22
292.12
613.52
323.44 1476.18
1.43
–
68.11 3584.90
632.20
85.60
138.38
17.07
–
–
301.94
179.55
18.11 1411.18
–
4.41
889.42
442.85
18.55 1253.61
1.43
–
90.74
0.65
225.58
2.12
593.89
272.28
–
–
–
3.81
–
–
33.77
170.67
222.57
–
after
twelve
months
(R crore)
nominal
amount
(R crore)
726.06 10207.57
134.10 2714.06
0.75
404.36
26.03
52.96
309.02
12.24
16.56
–
–
–
–
–
–
183.54
–
–
–
–
as at 31-3-2018
average
rate
(R)
Within
twelve
months
(R crore)
after
twelve
months
(R crore)
67.96 4752.99 5454.58
69.75
80.60 2644.31
–
0.75
17.86
–
404.36
74.68
–
26.03
10.32
24.08
28.88
93.51
–
309.02
0.62
–
12.24
217.71
–
16.56
8.83
–
–
–
–
–
–
373
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
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:
US dollars
arab emirates dirham
qatari Riyal
Saudi Riyal
nominal
amount
(R crore)
as at 31-3-2019
average
rate
(R)
Within
twelve
months
(R crore)
after
twelve
months
(R crore)
nominal
amount
(R crore)
as at 31-3-2018
average
rate
(R)
Within
twelve
months
(R crore)
after
twelve
months
(R crore)
28.73
81.20
116.68
51.07
71.83
20.46
20.91
19.34
28.73
–
116.68
51.07
–
81.20
–
–
28.73
–
–
187.39
71.83
–
–
17.43
–
–
–
187.39
28.73
–
–
–
(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 31-3-2019
average
rate
(%)
Within
twelve
months
(R crore)
365.26
after
twelve
months
(R crore)
–
nominal
amount
(R crore)
as at 31-3-2018
average
rate
(%)
Within
twelve
months
(R crore)
520.62
760.62
7.60
US dollars
365.26
7.17
(iii) outstanding commodity price hedge instruments:
commodity forward contract:
as at 31-3-2019
average
rate
(R)
after twelve
months
(R crore)
nominal
amount
(R crore)
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)
(305.35)
199.84
38.32
39.27
42.44
27.21
432547.41
149482.10
5469.41
13631.02
189480.24
143913.20
Within
twelve
months
(R crore)
(305.35)
199.84
29.47
29.26
42.44
27.21
–
–
8.85
10.01
–
–
(223.90) 462821.73
198.62 139526.87
60.65
4055.89
11958.33
33.91
19.76 222813.00
10.99 160606.00
Within
twelve
months
(R crore)
(223.90)
198.62
60.65
33.91
19.76
10.99
*negative nominal amount represents sell position.
(i) carrying amounts of hedge instruments for which hedge accounting is followed:
cash flow hedge:
after
twelve
months
(R crore)
240.00
after
twelve
months
(R crore)
–
–
–
–
–
–
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
374
as at 31-3-2019
interest rate
exposure
currency
exposure
commodity
price
exposure
as at 31-3-2018
interest rate
exposure
currency
exposure
commodity
price
exposure
382.60
246.05
99.28
32.58
–
–
–
–
56.94
46.85
169.36
134.83
–
–
72.40
93.28
–
–
–
–
27.61
23.27
–
–
Notes forming part of the Financial statements (contd.)
Note [45] (contd.)
(i) carrying amounts of hedge instruments for which hedge accounting is followed (contd.)
R crore
Particulars
(ii) Swap contracts
current:
as at 31-3-2019
interest rate
exposure
currency
exposure
commodity
price
exposure
as at 31-3-2018
interest rate
exposure
currency
exposure
commodity
price
exposure
asset - other financial assets
48.84
0.88
non current:
asset - other financial assets
–
–
–
–
66.59
(8.43)
21.03
(3.65)
net investment hedge:
Particulars
(i) Forward contracts
current:
asset - other financial assets
liability - other financial liabilities
non-current:
asset - other financial assets
currency
exposure
as at 31-3-2019
interest rate
exposure
commodity
price
exposure
currency
exposure
as at 31-3-2018
interest rate
exposure
commodity
price
exposure
11.48
0.11
2.68
–
–
–
–
–
–
14.63
2.15
0.91
–
–
–
–
–
R crore
–
–
–
v crore
(j)
Breakup of Hedging reserve & cost of hedging reserve balance:
Particulars
Balance towards continuing hedges
Balance for which hedge accounting discontinued
cash flow
hedging
reserve
89.50
(34.05)
cost of
hedging
reserve
5.05
(0.88)
cash flow
hedging
reserve
(23.89)
138.39
(k) Reclassification of Hedging reserve & cost of hedging reserve to Profit or loss:
cost of
hedging
reserve
(12.34)
–
v crore
as at 31-3-2019
as at 31-3-2018
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 operation
manufacturing ,construction and operating expenses
Finance costs
Sales, administration and other expenses
Hedging reserve/cost of
hedging reserve
2018-19
2017-18
(13.47)
(1.32)
(40.72)
(1.24)
22.58
(259.02)
247.72
177.14
(15.60)
2.16
(266.60)
181.10
375
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [45] (contd.)
(l) movement of Hedging reserve & cost of hedging reserve:
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
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
2018-19
2017-18
Gross
175.13
–
tax
(60.63)
–
net of tax
114.50
–
Gross
240.09
–
tax net of tax
156.91
(0.72)
(83.18)
(0.72)
v crore
256.53
(87.91)
168.62
(16.22)
5.81
(10.41)
(176.84)
59.67
(269.48)
(0.44)
40.72
85.29
60.60
(20.45)
92.35
0.15
(13.95)
(29.84)
(116.24)
39.22
(177.13)
(0.29)
26.77
55.45
217.80
(150.03)
61.11
(0.48)
(177.14)
175.13
(78.02)
53.75
(21.89)
0.17
139.78
(96.28)
39.22
(0.31)
63.45 (113.69)
114.50
(60.63)
2018-19
2017-18
Gross
(18.97)
–
tax net of tax
(12.34)
6.63
Gross
(19.56)
–
tax net of tax
(12.79)
0.07
6.77
0.07
v crore
(247.65)
0.12
272.91
6.41
86.54
(0.04)
(95.37)
(2.24)
(161.11)
0.08
177.54
4.17
(38.56)
–
39.15
(18.97)
13.47
–
(13.68)
6.63
(25.09)
–
25.47
(12.34)
Note [46]
a. exceptional items for the year ended march 31, 2019 include the following:
(i) Gain of R 3276.70 crore on sale of the company’s stake in subsidiary companies viz. larsen & toubro infotech limited
R 2142.90 crore and l&t technology Services limited R 1133.80 crore;
(ii) Write back of trade receivable and retention money of certain customer dues now considered recoverable R 294.75 crore
[note 1(t)(vii)].
(iii)
impairment of investment in group companies viz l&t Shipbuilding limited R 1167.42 crore, l&t infrastructure development
project limited R 773.00 crore and l&t Special Steels and Heavy Forging Private limited R 1156.10 crore.
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 [note 1(t)(vii)].
B
the competition commission of india (cci) accorded on april 18, 2019 its approval for the acquisition of the company’s electrical
& automation (e&a) business by Schneider electric subject to certain conditions, the details of which are awaited. Pending receipt
of cci’s detailed order, the e&a business is treated as continuing operation and accordingly the relevant assets are not classified as
held for sale.
376
Notes forming part of the Financial statements (contd.)
Note [47]
disclosure pursuant to ind aS 108 “operating Segment”
(a)
information about reportable segment
Particulars
For the year ended 31-3-2019
Inter-segment
External
For the year ended 31-3-2018
Total
External Inter-segment
Total
v crore
Revenue
Infrastructure
Power
Heavy Engineering
Defence Engineering
Electrical & Automation [Note 46(B)]
Realty
Others
Elimination
Total
Segment result [Profit/(Loss) before interest and tax]
Infrastructure
Power
Heavy Engineering
Defence Engineering
Electrical & Automation [Note 46(B)]
Realty
Others
Total
Inter-segment margins on capital jobs
Finance costs
Unallocated corporate income/(expenditure) (net)
Profit before tax
Provision for current tax
Provision for deferred tax
Profit after tax
Particulars
infrastructure
Power
Heavy engineering
defence engineering
electrical & automation [note 46(B)]
Realty
others
segment total
Unallocable corporate assets/liabilities
inter-segment assets/liabilities
total assets/liabilities
57767.41
6200.71
1417.25
3249.55
4264.25
201.02
1511.46
–
74611.65
599.24
7.52
150.27
0.90
182.28
19.40
10.16
(969.77)
–
68452.62
3975.77
2477.76
3691.46
4760.96
1290.48
2338.81
–
86987.86
455.91
7.32
35.49
0.21
169.60
19.15
12.26
(699.94)
–
68908.53
3983.09
2513.25
3691.67
4930.56
1309.63
2351.07
(699.94)
86987.86
5000.21
129.84
486.79
549.83
812.41
885.22
345.06
8209.36
(10.11)
(1641.39)
2660.31
9218.17
(2687.22)
146.75
6677.70
58366.65
6208.23
1567.52
3250.45
4446.53
220.42
1521.62
(969.77)
74611.65
5010.02
161.96
259.03
320.76
624.78
68.65
263.69
6708.89
(14.71)
(1432.23)
2000.43
7262.38
(1974.07)
98.99
5387.30
v crore
Segment assets
Segment liabilities
as at
31-3-2019
68926.08
5095.07
2932.34
6408.76
3001.52
1837.51
1561.80
89763.08
36596.19
(633.58)
125725.69
as at
31-3-2018
59969.40
5725.11
2248.67
6122.86
2938.01
1608.40
1130.36
79742.81
36575.10
(711.23)
115606.68
as at
31-3-2019
47253.59
4838.09
1528.56
5302.55
1686.60
618.00
912.73
62140.12
11668.43
(633.58)
73174.97
as at
31-3-2018
40034.89
5657.36
1019.37
5152.27
1663.94
647.55
572.65
54748.03
12395.63
(711.23)
66432.43
377
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [47] (contd.)
disclosure pursuant to ind aS 108 “operating Segment” (contd.)
Depreciation, amortisation
& obsolescence included in
segment expense
For the
year ended
31-3-2019
708.05
47.16
44.95
62.83
139.16
For the
year ended
31-3-2018
627.64
43.56
48.10
54.42
130.00
Other non-cash expenses
included in segment
expense
For the
year ended
31-3-2019
46.40
2.99
2.12
2.59
6.37
For the
year ended
31-3-2018
22.86
1.40
1.03
0.95
3.85
Interest expense included in
segment expense
Additions to non-current
assets
v crore
For the
year ended
31-3-2019
297.87
For the
year ended
31-3-2018
236.90
For the
year ended
31-3-2019
1137.18
62.96
107.94
189.50
240.35
For the
year ended
31-3-2018
1485.47
133.40
46.23
218.14
196.60
Particulars
Infrastructure
Power
Heavy Engineering
Defence Engineering
Electrical & Automation
[Note 46(B)]
17.34
19.93
1039.42
28.53
192.79
Realty
29.33
Others
2301.96
Segment Total
424.10
Unallocated corporate
(44.31)
Inter-segment
2681.75
Total
note : there is no impairment in non-financial assets of the segments. Unallocable corporate expenses include impairment loss of
R 3096.52 crore for the year ended march 31, 2019 (previous year: R nil )
255.54
114.27
2107.74
227.05
(82.26)
2252.53
17.97
16.86
938.55
110.91
0.95
0.28
31.32
38.45
0.95
0.46
61.88
12.82
236.90
(236.90)
297.87
(297.87)
1049.46
1067.95
69.77
74.70
–
–
(b) Geographical information
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)
378
Particulars
Particulars
v crore
Revenue by location of
customers
For the year
ended
31-3-2019
67796.90
For the year
ended
31-3-2018
58124.10
2001.49
5123.08
3861.23
2155.37
6049.79
19190.96
86987.86
2478.78
4156.19
4917.23
1551.96
3383.39
16487.55
74611.65
v crore
non current assets by location
of customers
as at
31-3-2019
10917.09
364.48
11281.57
as at
31-3-2018
10306.95
379.79
10686.74
Notes forming part of the Financial statements (contd.)
Note [47] (contd.)
disclosure pursuant to ind aS 108 “operating Segment” (contd.)
(c) Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed
ten percent of the company’s total revenue.
(d) the company’s reportable segments are organised based on the nature of products and services offered by these segments.
(e) Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:
(i)
Basis of identifying operating segments:
operating segments are identified as those components of the company (a) that engage in business activities to earn
revenues and incur expenses (including transactions with any of the company’s other components); (b) whose operating
results are regularly reviewed by the corporate executive management to make decisions about resource allocation and
performance assessment; and (c) for which discrete financial information is available.
the company has six reportable segments as described under “segment composition” below. the nature of products and
services offered by these businesses are different and are managed separately given the different sets of technology and
competency requirements.
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.
iv) Segment composition:
•
•
•
•
•
infrastructure segment comprises engineering and construction of building and factories, transportation infrastructure,
heavy civil infrastructure, power transmission & distribution, water & effluent treatment, smart world & communication
projects and metallurgical & material handling systems (hitherto reported under others segment).
power segment comprises turnkey solutions for coal-based and Gas-based thermal power plants including power
generation equipment with associated systems and/or balance-of-plant packages.
Heavy engineering segment comprises manufacture and supply of custom designed, engineered critical equipment
& systems to core sector industries like Fertiliser, Refinery, Petrochemical, chemical, oil & Gas and thermal & nuclear
Power.
defence engineering segment comprises design, development, prototyping, serial production, delivery, commissioning
and through life-support of equipment, systems and platforms for defence and aerospace sectors. it also includes
defence Shipbuilding comprising design, construction, commissioning, repair/refit and upgrades of naval and coast
Guard vessels.
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.
•
realty segment comprises property development and leasing activities.
• others segment includes Hydrocarbon, marketing and servicing of construction & mining machinery and parts thereof,
manufacture and sale of rubber processing machinery.
379
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [48]
disclosure pursuant to ind aS 115 “Revenue from contracts with customers”:
(a) disaggregation of revenue into operating segments and geographical areas for the year ended march 31, 2019:
Segment
infrastructure
Power
Heavy engineering
defence engineering
electrical & automation
Realty
others
total
Revenue as per ind aS 115
domestic
53180.52
2585.90
1256.63
3438.00
4259.81
665.45
1565.74
Foreign
total
15098.78
68279.30
1383.77
1195.04
253.46
482.13
–
768.90
3969.67
2451.67
3691.46
4741.94
665.45
2334.64
66952.05
19182.08
86134.13
v crore
other
Revenue
total as per Profit and
loss/Segment reporting
173.32
6.10
26.09
–
19.02
625.03
4.17
853.73
68452.62
3975.77
2477.76
3691.46
4760.96
1290.48
2338.81
86987.86
(b) out of the total revenue recognised under ind aS 115 during the year, R 78194.12 crore is recognised over a period of time and
R 7940.01 crore is recognised at a point in time.
(c) movement in expected credit loss during the year:
Particulars
Provision on trade receivables
covered under ind aS 115
Provision on contract
assets
v crore
opening balance as at april 1, 2018
ind aS 115 transition impact
changes in allowance for expected credit loss:
Provision/(reversal) of allowance for expected credit loss
additional provision (net) towards credit impaired receivables
Write off as bad debts
closing balance as at march 31, 2019
(d) contract balances:
(i) movement in contract balances during the year:
2224.97
–
71.30
188.35
(214.12)
2270.50
108.55
690.80
(160.48)
–
–
638.87
v crore
Particulars
contract assets
contract liabilities
net contract balances
opening balance as at april 1, 2018
closing balance as at march 31, 2019
net increase
36525.16
40230.97
3705.81
19416.79
21272.17
1855.38
17108.37
18958.80
1850.43
note: increase in net contract balances is primarily due to higher revenue recognition as compared to progress bills raised
during the year and ind aS 115 transition adjustment.
(ii)
Revenue recognised during the year from opening balance of contract liabilities amounts to R 6313.77 crore.
(iii) Revenue recognised during the year from the performance obligation satisfied in previous year (arising out of contract
modifications) amounts to R 29.11 crore.
(e)
cost to obtain the contract :
(i) amount of amortisation recognised in Profit and loss during the year 2018-19: R nil.
(ii) amount recognised as assets as at march 31, 2019: R nil.
380
Notes forming part of the Financial statements (contd.)
Note [48] (contd.)
disclosure pursuant to ind aS 115 “Revenue from contracts with customers” (contd.)
(f)
Reconciliation of contracted price with revenue during the year:
opening contracted price of orders as at april 1, 2018*
add:
Fresh orders/change orders received (net)
increase due to additional consideration recognised as per contractual terms
increase due to exchange rate movements (net)
less:
orders completed during the year
closing contracted price of orders as at march 31, 2019*
total Revenue recognised during the year:
less: Revenue out of orders completed during the year
Revenue out of orders under execution at the end of the year (i)
Revenue recognised upto previous year (from orders pending completion at the end of the year) (ii)
decrease due to exchange rate movements (net) (iii)
Balance revenue to be recognised in future viz. order book (iV)
closing contracted price of orders as at march 31, 2019* (i+ii+iii+iV)
*including full value of partially executed contracts.
v crore
469239.36
109880.10
2015.38
2496.79
41650.89
541980.74
77063.70
218003.35
(109.65)
247023.34
541980.74
86134.13
9070.43
(g) Remaining performance obligations: the aggregate amount of transaction price allocated to remaining performance obligations
and expected conversion of the same into revenue is as follows:
expected conversion in revenue
v crore
Particulars
total
Upto 1 Year
From 1 to 2
years
From 2 to 3
years
From 3 to 4
years
From 4 to 5
years
Beyond 5
years
transaction price allocated to the
remaining performance obligation
247023.34
90026.10
88727.16
41303.07
16670.26
5893.87
4402.88
(h) disclosure of amount by which financial statements are impacted by application of ind aS 115 as compared to ind aS 11 and
ind aS 18:
assets
liabilities
equity
Particulars
v crore
as at 31-3-2019
as per ind aS 11
and ind aS 18
impact of application of ind aS 115
increase/(decrease)
transition impact as
at april 1, 2018
For the year
2018-19
as at 31-3-2019
after application
of ind aS 115
125898.89
72891.13
53007.77
13.38
714.96
(701.58)
(186.58)
(431.12)
244.54
125725.69
73174.97
52550.72
381
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [48] (contd.)
disclosure pursuant to ind aS 115 “Revenue from contracts with customers” (contd.)
Particulars
Revenue from operations
manufacturing, construction and operating expenses
Sales, administration and other expenses
Profit before tax
tax expenses
Profit after tax
Basic earnings per share
diluted earnings per share
as per ind aS 11
and ind aS 18
86569.22
69700.17
2480.26
8842.27
2409.11
6433.16
45.89
45.80
For the year 2018-19
impact of application of
ind aS 115 increase/(decrease)
418.64
203.22
(160.48)
375.90
131.36
244.54
1.74
1.74
v crore
after application
of ind aS 115
86987.86
69903.39
2319.78
9218.17
2540.47
6677.70
47.63
47.54
(i)
Pursuant to adoption of ind aS 115, the company recognised impairment loss on contract assets using expected credit loss
model applied to trade receivables.
a.
impact on account of transition: opening Retained earnings as at april 1, 2018 reduced by R 464.70 crore (net of tax)
due to initial recognition of expected credit loss on contract assets with a corresponding increase in deferred tax asset by
R 226.10 crore and decrease in contract assets by R 690.80 crore.
impact for the year: there is a decrease in sales, administration and other expenses due to reversal of provision for
expected credit loss on contract assets in terms of the provision matrix resulting in profit after tax being higher by
R 104.40 crore with a corresponding increase in contract assets by R 160.48 crore and decrease in deferred tax asset by
R 56.08 crore.
B.
(ii) Under ind aS 115, revenue from realty business is recognised upon delivery of units as against percentage of completion
method followed under ind aS 11.
a.
impact on account of transition: opening Retained earnings as on april 1, 2018 reduced by R 236.88 crore (net of tax)
with a corresponding increase in contract liability by R 714.96 crore, increase in inventory by R 372.58 crore, decrease in
contract asset by R 3.51 crore and increase in deferred tax asset by R 109.01 crore.
impact for the year: Profit after tax during the year is higher by R 140.14 crore, with a corresponding decrease in
contract liability by R 418.64 crore, increase in other current liability R6.59 crore, decrease in inventory by R196.63 crore,
decrease in deferred tax asset by R 94.35 crore and decrease in current tax liability by R 19.07 crore.
B.
Note [49]
disclosure pursuant to ind aS 12 “income taxes”
(a) major components of tax expense/(income):
Sr.
no.
1.
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
minimum alternate tax credit
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
2.
income tax expense reported in Profit or loss [(i)+(ii)]
other comprehensive income (oci) Section:
(i)
items not to be reclassified to Profit or loss in subsequent periods:
current tax expense/(income):
on remeasurement of defined benefit plans
382
2018-19
v crore
2017-18
2460.08
227.14
83.75
(230.23)
(0.27)
–
2540.47
1808.52
165.55
(79.03)
(16.05)
(3.91)
1875.08
(10.94)
(10.94)
1.32
1.32
Particulars
2018-19
2017-18
Notes forming part of the Financial statements (contd.)
Note [49] (contd.)
disclosure pursuant to ind aS 12 “income taxes” (contd.)
Sr.
no.
Particulars
(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
income tax expense reported in the oci section [(i)+(ii)]
(b) Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate applicable in india:
Sr.
no.
1.
2.
3.
4.
Profit before tax
corporate tax rate as per income tax act, 1961
tax on accounting profit (c) = (a) * (b)
tax on income exempt from tax :
(i)
(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 net capital (gain)/loss [net] on which no deferred tax benefit is
recognised
(viii) effect of current tax related to earlier years
(ix) effect of previously unrecognised tax losses used to reduce current tax expense
(x)
tax effect of losses in joint operation of current year on which no deferred tax benefit
is recognised
(xi) tax effect on various other items
total effect of tax adjustments [(i) to (xi)]
tax expense recognised during the year (e)=(c)+(d)
effective tax Rate (f)=(e)/(a)
5.
6.
2018-19
v crore
2017-18
(76.46)
0.49
(75.97)
45.87
8.87
(16.68)
2.76
40.82
(46.09)
4.73
(0.49)
4.24
(27.13)
0.14
11.12
–
(15.87)
(10.31)
v crore
9218.17
34.94%
3221.20
(523.73)
(978.42)
(2.50)
42.52
28.35
1.52
(147.05)
(0.27)
1093.56
–
–
227.14
(477.86)
37.68
18.33
(680.73)
2540.47
27.56%
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%
383
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [49] (contd.)
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
As at 31-3-2019
As at 31-3-2018
Base amount
(R crore)
Deferred tax
(R crore)
Expiry date
(Assessment
year)
Base amount
(R crore)
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
1575.75
1015.66
764.40
3355.81
270.88
200.16
143.34
614.38
31-3-2027
31-3-2026
31-3-2025
1651.79
998.16
1135.58
3785.53
31-3-2027
284.17
196.38
31-3-2026
236.16 31-3-2025
716.71
(ii) Unrecognised deductible temporary differences for which no deferred tax asset (dta) is recognised in Balance Sheet
v crore
Sr.
No.
1.
2.
Particulars
As at 31-3-2019
As at 31-3-2018
Base Amount
Deferred Tax
Base Amount
Deferred Tax
Deductible temporary differences towards provision for
dimunition in value of investments on which DTA is not created
Temporary differences arising out of revaluation of tax base of
assets (on account of indexation benefit)
Total
4156.22
970.86
1692.29
363.99
6333.56
10489.78
1475.47
2446.33
5718.83
7411.12
1332.26
1696.25
(d) components of deferred tax (assets) and liabilities recognised in the Balance Sheet and Statement of Profit or loss
Sr.
no.
1.
2.
3.
4.
5.
6.
7.
Particulars
disputed statutory liability claimed on payment basis u/s 43B of
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
minimum alternate tax credit
other temporary differences
deferred tax expense/(income)
net deferred tax (assets)/liabilities
Balance Sheet
as at
31-3-2019
as at
31-3-2018
155.57
(257.89)
(1048.46)
507.75
46.03
(230.23)
(14.63)
136.47
(208.68)
(880.64)
519.59
(8.51)
41.15
(841.86)
(400.62)
(e) Reconciliation of deferred tax (assets)/liabilities:
Sr.
no.
1.
2.
3.
4.
Particulars
Statement of Profit and loss in Profit or loss section
opening Balance as at april 1
tax (income)/expense recognised in opening Retained earnings [refer to note 48(h)]
tax (income)/expense during the period recognised in:
(i)
(ii) Statement of Profit and loss under oci section
(iii) Hedge reserve (other than through oci)
acquired under business combination [note 60(b)]
closing balance as at march 31
v crore
Statement of Profit or loss
2018-19
2017-18
19.10
(49.31)
58.27
(11.52)
–
(230.23)
66.94
(146.75)
(14.07)
5.21
(140.44)
9.05
–
41.26
(98.99)
v crore
2018-19
2017-18
(400.62)
(335.11)
(146.75)
40.82
(0.20)
–
(841.86)
(285.22)
–
(98.99)
(15.87)
(0.15)
(0.39)
(400.62)
384
Notes forming part of the Financial statements (contd.)
Note [50]
disclosure pursuant to indian accounting Standard (ind aS) 19 “employee Benefits”:
i
ii
defined contribution plans: note {[1](k)(ii)(a)}: amount of R 88.55 crore (previous year: R 124.47 crore) is recognised as an expense.
defined benefit plans: note {[1](k)(ii)(B)}:
a)
the amount 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/(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
31-3-2019
As at
31-3-2018
Post-retirement medical
benefit plan
As at
31-3-2019
As at
31-3-2018
Company pension plan
As at
31-3-2019
As at
31-3-2018
v crore
Trust-managed provident
fund plan
As at
31-3-2019
As at
31-3-2018
493.46
103.26
596.72
432.54
444.87
91.10
535.97
399.87
–
197.10
197.10
–
–
178.83
178.83
–
–
332.88
332.88
–
– 2503.86
323.71
–
323.71 2503.86
– 2516.98
2270.10
–
2270.10
2287.81
–
164.18
0.01
136.11
–
197.10
–
178.83
–
332.88
–
–
323.71 (13.12)
–
(17.71)
164.18
–
164.18
164.18
–
136.11
–
136.11
136.11
–
197.10
–
197.10
7.84
189.26
178.83
–
178.83
7.09
171.74
332.88
–
332.88
24.52
308.36
323.71
–
323.71
22.58
301.13
22.73
–
22.73
27.10
–
27.10
27.10 # 22.73 #
–
–
# 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
6
7
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
8
9
10 Amount capitalized 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
2018-19
64.47
31.39
(28.71)
19.45
2017-18
72.42
28.33
(29.00)
34.04
2018-19
9.76
13.46
–
6.13
2017-18
13.11
13.16
–
(21.93)
2018-19
3.03
23.99
–
3.48
2017-18
3.44
21.67
–
5.91
v crore
Trust-managed
provident fund plan
2018-19
67.16
194.14
(194.14)
–
2017-18
61.53
178.70
(178.70)
–
2.24
–
(21.84)
0.20
–
–
–
(0.07)
88.77
64.40
2.68
21.69
88.77
26.47
–
0.01
–
(0.12)
84.04
72.50
(0.66)
12.20
84.04
50.83
–
–
–
–
–
(0.01)
29.34
9.75
13.46
6.13
29.34
–
–
–
–
–
–
(0.02)
4.32
13.09
13.16
(21.93)
4.32
–
–
0.64
–
–
–
–
31.14
3.67
23.99
3.48
31.14
–
–
–
–
–
–
–
31.02
3.44
21.67
5.91
31.02
–
(2.84)
–
(2.13)
–
2.84
–
–
–
67.16
67.16
–
2.13
–
–
–
61.53
61.53
–
–
67.16
196.98
–
61.53
180.83
385
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [50] (contd.)
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
31-3-2019
As at
31-3-2018
Post-retirement medical
benefit plan
As at
31-3-2019
As at
31-3-2018
Company pension plan
v crore
Trust-managed
provident fund plan
As at
31-3-2019
As at
31-3-2018
As at
31-3-2019
As at
31-3-2018
535.97
64.47
31.39
517.73
72.42
28.33
178.83
9.76
13.46
185.64
13.11
13.16
323.71
3.03
23.99
312.75
3.44
21.67
2270.10
67.16
194.14
2146.56
61.53
178.70
–
–
–
–
–
–
–
–
–
–
–
–
190.95
45.57
168.39
25.12
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
ii) Actuarial (gains)/losses arising from
3.42
18.79
(4.62)
(23.05)
(15.00)
–
–
–
–
–
changes in financial assumptions
6.03
(14.52)
5.39
(13.08)
6.52
(13.32)
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
10.00
(57.74)
–
–
3.18
29.77
(116.88)
0.20
0.24
(0.11)
5.36
(11.08)
–
–
–
14.20
(11.15)
–
–
–
11.96
(21.97)
0.64
–
–
19.23
(20.06)
–
–
–
–
(265.03)
–
–
0.97
–
(310.20)
–
–
–
benefit obligation
596.72
535.97
197.10
178.83
332.88
323.71
2503.86
2270.10
d) changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:
v crore
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
31-3-2019
399.87
28.71
As at
31-3-2018
439.61
29.00
Trust-managed provident
fund plan
As at
31-3-2019
2287.81
194.14
As at
31-3-2018
2156.30
178.70
(2.24)
63.94
–
–
–
(57.74)
432.54
21.84
26.07
–
–
0.23
(116.88)
399.87
2.84
64.57
45.57
187.08
–
(265.03)
2516.98
2.13
63.20
25.12
172.56
–
(310.20)
2287.81
* 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 determined at the start of the annual
reporting period.
the company expects to fund R 60.92 crore (previous year: R 45.05 crore) towards its gratuity plan and R 73.88 crore
(previous year: R 67.68 crore) towards its trust-managed provident fund plan during the year 2019-20.
386
Notes forming part of the Financial statements (contd.)
Note [50] (contd.)
disclosure pursuant to ind aS 19 “employee Benefits” (contd.)
e)
the fair values of major categories of plan assets are as follows:
Particulars
As at 31-3-2019
As at 31-3-2018
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
Insurer managed funds
Fixed deposits
Special deposit scheme
Other (payables)/receivables
Closing balance of the plan assets
Quoted
–
15.81
172.10
132.95
77.63
8.41
6.90
–
–
–
–
–
413.80
Unquoted
0.61
–
–
–
–
–
9.88
4.75
–
1.85
1.49
0.16
18.74
Total
0.61
15.81
172.10
132.95
77.63
8.41
16.78
4.75
–
1.85
1.49
0.16
432.54
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
Particulars
As at 31-3-2019
As at 31-3-2018
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 - PSU bonds
Mutual funds - Equity
Mutual funds - Debt
Mutual funds - Others
Special Deposit Scheme
Other (Payables)/Receivables
Closing balance of the plan assets
Quoted
–
0.06
509.01
582.09
592.89
535.32
33.03
–
–
–
–
2252.40
Unquoted
4.78
–
–
–
–
–
46.57
21.47
1.12
190.60
0.04
264.58
Total
4.78
0.06
509.01
582.09
592.89
535.32
79.60
21.47
1.12
190.60
0.04
2516.98
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
v crore
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
v crore
Total
5.05
–
401.61
518.65
455.76
658.68
58.96
0.25
7.85
193.08
(12.08)
2287.81
f)
the average duration of the defined benefit plan obligations at the end of the reporting period is as follows:
Plans
1. Gratuity plan
2.
Post-retirement medical benefit plan
3. company pension plan
as at 31-3-2019 as at 31-3-2018
6.17 years
6.45 years
13.86 years
13.95 years
7.67 years
7.57 years
387
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [50] (contd.)
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 31-3-2019 as at 31-3-2018
i)
discount rate:
a) Gratuity plan
b) company pension plan
c) Post-retirement medical benefit plan
ii) annual increase in healthcare costs (see note vii below)
iii) Salary growth rate:
a) Gratuity plan
b) company pension plan
iv) attrition Rate:
7.48%
7.48%
7.48%
5.00%
5.00%
7.00%
7.68%
7.68%
7.68%
5.00%
5.00%
6.00%
(a) For gratuity plan, the attrition rate varies from 1% to 12% (previous year: 1% to 11%) for various age groups.
(b) For company pension plan, the attrition rate varies from 0% to 2% (previous year: 0% to 2%) for various age
groups.
(c)
For post-retirement medical benefit plan, the attrition rate varies from 1% to 11% (previous year: 1% to 12%) 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
2018-19
32.77
(28.82)
2017-18
30.99
(27.08)
2018-19
(29.71)
32.27
2017-18
(27.97)
30.46
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
2018-19
(24.05)
2017-18
(24.01)
2018-19
2017-18
27.66
27.70
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
2018-19
19.99
(24.76)
2017-18
17.53
(22.60)
2018-19
(16.44)
30.96
2017-18
(14.43)
28.40
v crore
388
Notes forming part of the Financial statements (contd.)
Note [50] (contd.)
disclosure pursuant to ind aS 19 “employee Benefits” (contd.)
h) characteristics of defined benefit plans and associated risks:
1 Gratuity plan:
2
3
4
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, the unfunded portion 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.
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.
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.
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.
389
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
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 exists and status of transactions entered during the year:
Sr
no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
name of the Subsidiary company
nature of relationship
Bhilai Power Supply company 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
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 Vision Ventures limited
l&t Power limited
l&t cassidian limited $$$
l&t aviation Services Private limited
larsen & toubro infotech limited
l&t Finance Holdings limited
Syncordis S.a.
Syncordis SaRl
Syncordis limited
l&t capital market (middle east) ltd***
l&t Hydrocarbon international FZe%%%
Graphene Solutions Pte ltd. **
Graphene Solutions Sdn .BHd **
Graphene Solutions taiwan limited **
larsen & toubro infotech norge aS @@@
nielsen+Partner Unternehmensberater GmbH^^^
nielsen+Partner Unternehmensberater aG^^^
nielsen+Partner Pte ltd^^^
nielsen+Partner S.a^^^
nielsen&Partner company limited^^^
nielsen&Partner Pty ltd^^^
Ruletronics limited^^^
Ruletronics Systems inc^^^
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 Support Services S.a.
l&t infrastructure Finance company limited
l&t infra debt Fund limited
l&t infra investment Partners advisory Private limited
Subsidiary
Subsidiary
Wholly owned subsidiary (WoS)
WoS
WoS
Subsidiary
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
WoS
WoS
Subsidiary
Subsidiary
WoS of larsen & toubro infotech GmbH
WoS of Syncordis S.a.
WoS of Syncordis S.a.
WoS of l&t Finance Holdings limited
WoS of l&t Hydrocarbon engineering limited
WoS of Graphene Semiconductor Services Private limited
WoS of Graphene Semiconductor Services Private limited
WoS of Graphene Semiconductor Services Private limited
WoS of larsen and toubro infotech limited
WoS of larsen & toubro infotech GmbH
WoS of nielsen + Partners Germany
WoS of nielsen + Partners Germany
WoS of nielsen + Partners Germany
WoS of nielsen + Partners Germany
WoS of nielsen + Partners Germany
WoS of larsen and toubro infotech Gmbh
WoS of larsen and toubro infotech Gmbh
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
WoS of Syncordis S.a.
WoS of l&t Finance Holdings limited
Subsidiary of l&t Finance Holdings limited
WoS of l&t infrastructure Finance company limited
transaction entered
during the year (Yes/
no)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
no
no
no
Yes
Yes
no
no
no
no
no
no
no
no
no
no
no
no
Yes
no
Yes
no
Yes
Yes
no
no
Yes
Yes
Yes
390
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(a) list of related parties over which control exist and status of transactions entered during the year: (contd.)
Sr
no.
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
name of the Subsidiary company
nature of relationship
l&t infra investment Partners trustee Private limited
l&t Financial consultants limited
mudit cement Private limited
l&t capital company limited
l&t trustee company Private limited $$
l&t Power development limited
l&t Uttaranchal Hydropower limited
larsen & toubro electromech llc ##
l&t Westend Project llP
ltR SSm Private limited $
esencia technologies india Private limited
Syncordis Software Services india Private 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 construction machinery limited *
l&t infrastructure engineering limited
l&t thales technology Services Private limited
Graphene Semiconductor Services Private limited **
Seastar labs Private limited **
Ruletronics Systems Private limited ^^^
l&t Hydrocarbon engineering limited
Sahibganj Ganges Bridge-company Private limited#
Seawoods Retail Private limited^^
Seawoods Realty Private limited^^
marine infrastructure developer Private limited^
l&t infra contractors Private limited
larsen & toubro llc
larsen & toubro infotech GmbH
larsen & toubro infotech canada limited
larsen & toubro infotech llc
l&t infotech Financial Services technologies inc.
larsen & toubro infotech South africa (PtY) limited
l&t information technology Services (Shanghai) co. ltd.
l&t Realty FZe
larsen & toubro international FZe
larsen & toubro Hydrocarbon international limited llc#
thalest limited
Servowatch Systems limited
larsen & toubro (oman) llc
l&t modular Fabrication Yard llc
larsen & toubro (east asia) Sdn.BHd
larsen & toubro qatar llc #
l&t overseas Projects nigeria limited
Pt larsen & toubro Hydrocarbon engineering indonesia
WoS of l&t infrastructure Finance company limited
WoS of l&t Finance Holdings limited
WoS of l&t Financial consultants limited
WoS
WoS of l&t capital company limited
WoS
WoS of l&t Power development limited
Subsidiary
Subsidiary of l&t Realty limited
Subsidiary of l&t Realty limited
WoS of esencia technologies, inc.
Subsidiary of larsen & toubro infotech 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
WoS
Subsidiary of l&t technology Services limited
WoS of l&t technology Services limited
WoS of Graphene Semiconductor Services Private limited
Subsidiary of larsen and toubro infotech limited
WoS
WoS of l&t capital company limited
WoS
WoS
Subsidiary
WoS of l&t capital company limited
Subsidiary
WoS of larsen & toubro infotech limited
WoS of larsen & toubro infotech limited
WoS of larsen & toubro infotech limited
WoS of larsen & toubro infotech limited
Subsidiary of larsen & toubro infotech limited
WoS of larsen & toubro infotech limited
WoS of l&t Realty limited
WoS of l&t Global Holdings limited
Subsidiary
WoS of larsen & toubro international FZe
WoS of thalest limited
Subsidiary of larsen & toubro international FZe
Subsidiary of l&t Hydrocarbon engineering limited
Subsidiary of larsen & toubro international FZe
Subsidiary of larsen & toubro international FZe
WoS of larsen & toubro international FZe
Subsidiary of l&t Hydrocarbon engineering limited
transaction entered
during the year (Yes/
no)
no
Yes
Yes
Yes
Yes
Yes
Yes
Yes
no
Yes
no
no
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
no
no
no
Yes
no
Yes
Yes
Yes
Yes
Yes
no
no
no
no
no
no
no
Yes
Yes
no
Yes
Yes
no
no
Yes
no
no
391
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(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
Sr
no.
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
l&t electricals & automation Saudi arabia company limited llc
larsen & toubro Kuwait construction General contracting
company Wll
larsen & toubro (Saudi arabia) llc
larsen toubro arabia llc
l&t Hydrocarbon Saudi company (formerly known as larsen &
toubro atco Saudia llc)
Subsidiary of larsen & toubro international FZe
Subsidiary of l&t Hydrocarbon engineering limited
Subsidiary
Subsidiary of l&t Hydrocarbon engineering limited
tamco Switchgear (malaysia) Sdn. BHd
Henikwon corporation Sdn. BHd
esencia technologies inc.
l&t infotech S. de R.l. de c.V.
tamco electrical industries australia Pty limited
Pt tamco indonesia
larsen & toubro Heavy engineering llc
l&t electrical & automation FZe
Kana controls General trading & contracting company W.l.l.
larsen & toubro t&d Sa (Proprietary) limited
l&t technology Services llc
larsen & toubro infotech austria GmbH
l&t Global Holdings limited
l&t Geo – l&t JV for maharatangarh project @
l&t Geo – l&t UJV cmRl cS@@
l&t cutting tools limited ###
eWac alloys limited %
larsen & toubro Readymix & asphalt concrete industries llc %% Subsidiary of larsen & toubro international FZe
WoS of l&t Hydrocarbon engineering limited
WoS of larsen & toubro international FZe
WoS of tamco Switchgear (malaysia) Sdn. BHd
WoS of l&t technology Services llc
Subsidiary of larsen & toubro infotech limited
WoS of larsen & toubro international FZe
Subsidiary of larsen & toubro international FZe
Subsidiary of l&t Hydrocarbon engineering limited
WoS of larsen & toubro international FZe
Subsidiary of l&t electrical & automation FZe
Subsidiary of larsen & toubro international FZe
WoS of l&t technology Services limited
WoS of larsen & toubro infotech limited
WoS
WoS of l&t Geostructure llP
WoS of l&t Geostructure llP
WoS
WoS
transaction entered
during the year (Yes/
no)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
no
no
no
Yes
Yes
Yes
Yes
Yes
Yes
no
Yes
no
no
Yes
Yes
Yes
the company has sold its stake on June 28, 2018
Struck off from the register of companies on June 26, 2018
the company through its subsidiary has acquired stake on February 1, 2019
the company has been incorporated on September 24, 2018
Struck off from the Register of companies on august 8, 2018
^
^^
^^^
$
$$
$$$ applied for strike off
*
**
***
#
##
###
%
%% the company through its subsidiary has sold its stake on September 28, 2017
%%% the company has been incorporated on September 9, 2018
@
@@
@@@ the company has been incorporated on november 20, 2018
the company has been incorporated on december 18, 2018
the company through its subsidiary has acquired stake on october 15, 2018
the company has been incorporated on July 1, 2018
in the process of liquidation
Reclassified as subsidiary w.e.f. august 16, 2017 due to purchase of additional stake
the company has sold its stake on September 27, 2017
the company has sold its stake on november 16, 2017
the arrangement entered on September 14, 2018 assessed as subsidiary since the company through its subsidiary exercises unilateral control
the arrangement entered on January 4, 2019 assessed as subsidiary since the company through its subsidiary exercises unilateral control
392
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
magtorq Private limited
Feedback infra 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.
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.
Joint Venture companies
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 **
25.
27.
29.
31.
Western andhra tollways limited **
Vadodara Bharuch tollway limited
l&t transportation infrastructure limited
l&t mBda missile Systems limited
Sr. no.
2.
4.
6.
8.
10.
12.
14.
16.
18.
20.
22.
24.
26.
28.
30.
32.
Joint Venture companies
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*
larsen & toubro electromech llc ***
* Reclassified as associate w.e.f. august 14, 2018 on amendment to articles of association
** the company has sold its stake on may 4, 2018
*** Reclassified as subsidiary w.e.f. august 16, 2017 due to purchase of additional stake
(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
393
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
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.
mr. S. n. Subrahmanyan (chief executive officer and
2.
mr. R. Shankar Raman (Whole-time director & chief
managing director)#
Financial officer)
mr. Shailendra Roy (Whole-time director)
mr. m. V. Satish (Whole-time director)
4.
6.
mr. d. K. Sen (Whole-time director)
mr. J.d. Patil (Whole-time director)**
Sr. no.
independent/non-executive directors
Sr. no.
independent/non-executive directors
1.
3.
5.
7.
9.
11.
13.
15.
17.
mr. a.m. naik (Group chairman)*
mr. Subodh Bhargava
mr. Vikram Singh mehta
mr. akhilesh Krishna Gupta
mr. thomas mathew t
mr. Subramanian Sarma
mr. Sanjeev aga
arvind Gupta ##
mr. Sushobhan Sarker###
2.
4.
6.
8.
10.
12.
14.
16.
mr. m. m. chitale
mr. m. damodaran
mr. adil Zainulbhai
mrs. Sunita Sharma
mr. ajay Shankar
mrs. naina lal Kidwai
mr. narayanan Kumar
mr.Hemant Bhargava ***
* w.e.f. october 1, 2017
# w.e.f. July 1,2017
(Group executive chairman till September 30, 2017)
(Whole-time director till June 30, 2017)
** appointed w.e.f. July 1, 2017
*** appointed w.e.f. may 28, 2018
(c) disclosure of related party transactions:
## 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 and 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
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
1539.40
1497.24
1073.38
473.53
360.04
400.56
773.12
158.57
1802.47
7.44
3.82
–
1.07
6.37
2620.22
3303.53
729.89
244.57
237.24
1382.61
352.83
1.50
2.10
394
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(c) disclosure of related party transactions: (contd.)
Sr.
no.
nature of transaction/relationship/major parties
ii. (a)
Sale of goods/contract revenue & services
Subsidiaries, including:
l&t metro Rail (Hyderabad) limited
l&t Hydrocarbon engineering limited
l&t Parel Project llP
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
(b) Reversal of sale of goods/contract revenue & services
Subsidiary:
nabha Power limited
Joint ventures, including:
l&t deccan tollways limited
l&t Samakhiali Gandhidham tollway limited
total
iii.
Purchase/lease of property, plant and equipment
Subsidiaries, including:
l&t Shipbuilding limited
larsen & toubro (oman) llc
larsen & toubro Heavy engineering llc
l&t construction equipment limited
l&t Hydrocarbon engineering limited
larsen & toubro infotech limited
Joint ventures:
l&t Special Steels and Heavy Forgings Private limited
l&t-mHPS turbine Generators Private limited
l&t Kobelco machinery Private limited
total
iv.
Sale of property, plant and equipment
Subsidiaries, including:
l&t Geostructure llP
l&t Hydrocarbon engineering limited
Joint venture:
l&t-mHPS Boilers Private limited
Key management personnel:
mr. Shailendra Roy
total
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
1311.33
1370.69
371.94
570.22
159.44
415.97
0.13
1470.90
4.16
25.99
30.15
65.25
0.38
65.63
5.58
0.69
6.25
12.52
147.20
0.13
0.13
1786.79
4.16
23.86
15.00
9.25
33.48
–
0.13
0.13
0.12
1.95
3.07
0.69
6.25
0.26
0.28
0.54
9.49
0.01
9.50
0.54
–
–
0.54
770.34
188.42
132.96
87.07
178.54
0.13
0.26
–
0.28
–
–
–
5.75
2.20
1.25
–
0.01
–
–
0.50
–
–
395
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(c) disclosure of related party transactions: (contd.)
Sr.
no.
nature of transaction/relationship/major parties
v.
investments including subscription to equity shares and
preference shares (equity portion)
Subsidiaries, including:
l&t metro Rail (Hyderabad) limited
l&t Uttaranchal Hydropower limited
l&t Shipbuilding limited
l&t Finance Holdings limited
Joint ventures, including:
l&t mBda missile Systems limited
l&t-mHPS turbine Generators Private limited
l&t Special Steels and Heavy Forgings Private limited
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
488.11
2771.16
220.20
249.40
–
–
0.48
0.69
1.17
436.57
2000.00
261.01
total
489.28
3032.17
vi.
investments in preference share (debt portion)
Subsidiary:
l&t Shipbuilding limited
Joint venture:
l&t Special Steels and Heavy Forgings Private limited
total
vii.
Subscription to debentures/bonds net of redemptions
Subsidiaries:
l&t metro Rail (Hyderabad) limited
l&t Finance limited
total
viii.
Sale/Redemption of investments in
Subsidiaries:
l&t Seawoods limited
l&t Finance limited
total
ix.
inter corporate deposits given to/(repaid by)
Subsidiaries (net) including:
l&t Shipbuilding limited
nabha Power limited
l&t Hydrocarbon engineering limited
Hi-tech Rock Products and aggregates limited
l&t metro Rail (Hyderabad) limited
Joint venture:
l&t Special Steels and Heavy Forgings Private limited
total
–
–
–
250.00
250.00
345.00
345.00
457.79
84.48
542.27
–
–
250.00
–
345.00
–
229.00
(210.88)
54.03
299.78
106.86
84.48
181.76
214.43
396.19
28.53
28.53
260.75
260.75
(1202.30)
211.89
(990.41)
396
260.65
181.76
214.43
–
28.53
210.00
50.75
(286.50)
(986.21)
–
–
211.89
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(c) disclosure of related party transactions: (contd.)
Sr.
no.
nature of transaction/relationship/major parties
x.
inter corporate borrowing taken from/(repaid to)
Subsidiaries (net) including:
l&t Seawoods limited
l&t Hydrocarbon engineering limited
total
xi.
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
total
xii.
Rent paid, including lease rentals under leasing/hire purchase
arrangements
Subsidiaries, including:
l&t electrical & automation FZe
Pt tamco indonesia
larsen & toubro infotech limited
Joint Ventures, including:
l&t Special Steels and Heavy Forgings Private limited
total
xiii.
Rent received, overheads recovered and miscellaneous income
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
(393.80)
420.80
(275.34)
(129.91)
114.79
16.58
4.92
0.26
0.31
0.31
1.20
(393.80)
154.32
5.42
159.74
0.97
1.24
2.21
420.80
137.62
4.36
141.98
1.16
–
1.16
Subsidiaries, including:
518.56
532.50
larsen & toubro infotech limited
l&t technology Services limited
l&t Hydrocarbon engineering limited
l&t Geostructure llP
l&t Finance limited
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
77.24
55.58
132.20
68.87
53.55
77.84
90.38
35.00
11.75
8.03
16.87
0.03
16.87
0.03
17.78
0.08
613.30
640.74
294.89
124.41
105.35
17.86
4.18
0.80
0.28
–
–
77.58
122 .10
107.92
40.86
13.58
17.78
0.08
397
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(c) disclosure of related party transactions: (contd.)
Sr.
no.
nature of transaction/relationship/major parties
2018-19
2017-18
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:
9.75
11.06
l&t electricals & automation Saudi arabia company limited llc
l&t electrical and automation FZe
Pt tamco indonesia
total
(b) charges recovered for deputation of employees to related parties
Subsidiaries, including:
l&t Parel Project llP
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
l&t construction equipment limited
Joint ventures:
l&t-Sargent & lundy limited
l&t-mHPS Boilers Private limited
9.75
90.02
3.58
12.88
106.48
1313.98
19.44
1.00
5.95
1.45
18.59
13.88
13.97
0.61
1.35
1.62
12.88
353.60
163.90
331.21
318.00
7.50
11.94
11.06
88.00
4.65
15.81
108.46
535.59
–
total
1333.42
535.59
xvi.
commission received, including those under agency arrangements
Subsidiary:
l&t construction equipment limited
Joint venture:
l&t Kobelco machinery Private limited
total
10.58
3.75
14.33
10.58
3.75
7.95
2.00
9.95
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
–
–
–
7.95
2.00
398
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(c) disclosure of related party transactions: (contd.)
Sr.
no.
nature of transaction/relationship/major parties
xvii. 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
Joint ventures, including:
l&t-mHPS Boilers Private limited
l&t-mHPS turbine Generators Private limited
total
xviii.
interest paid to
Subsidiaries, including:
l&t Hydrocarbon engineering limited
l&t Seawoods limited
Joint venture:
l&t infrastructure development Projects limited
l&t-mHPS turbine Generators Private limited
total
xix.
interest received from
Subsidiaries, including:
l&t Shipbuilding limited
nabha Power limited
l&t Finance Holdings limited
l&t metro Rail (Hyderabad) limited
l&t Finance limited
Joint venture:
l&t Special Steels and Heavy Forgings Private limited
total
xx.
amount written off as bad debts
Subsidiaries, including:
larsen & toubro electromech llc
Bhilai Power Supply company limited
Joint venture:
PnG tollway limited
total
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
45.35
36.31
6.62
16.37
10.36
0.50
199.36
23.15
–
1.81
26.39
31.55
17.95
12.15
16.57
106.83
–
1.26
25.08
7.07
4.50
9.07
4.16
7.97
0.07
0.43
98.24
25.02
33.06
–
42.13
56.83
–
–
102.05
0.59
–
–
0.50
36.81
124.87
33.06
157.93
109.69
102.05
211.74
0.59
–
0.59
0.52
45.87
231.31
1.81
233.12
116.05
106.83
222.88
1.35
25.08
26.43
399
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(c) disclosure of related party transactions: (contd.)
Sr.
no.
nature of transaction/relationship/major parties
xxi.
investments written off
Subsidiaries:
Seawoods Retail Private limited
Seawoods Realty Private limited
total
xxii. amount recognised/(reversed) in Profit and loss as provision towards
bad and doubtful debts (including expected credit loss on account
of delay)
Subsidiaries, including:
nabha Power limited
l&t electricals & automation Saudi arabia company limited llc
l&t Parel Project llP
l&t Seawoods limited
larsen & toubro Heavy engineering llc
l&t Uttaranchal Hydropower limited
l&t Hydrocarbon engineering limited
Joint ventures, including:
(0.38)
l&t Special Steels and Heavy Forgings Private limited
l&t Howden Private limited
l&t Samakhiali Gandhidham tollway limited
l&t- mHPS Boilers Private limited
total
(2.59)
16.66
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
0.02
0.02
–
0.01
0.01
(2.21)
(6.03)
(1.48)
(1.74)
0.57
0.65
(0.53)
0.31
(0.09)
(0.33)
(1.54)
1.55
22.69
1167.42
1929.10
3096.52
0.08
0.08
1167.42
773.00
1156.10
0.08
0.75
–
0.75
–
–
–
–
2.93
(7.25)
–
(0.83)
21.66
0.68
–
–
–
14766.31
6868.13
9308.23
3217.46
–
–
4154.47
2107.86
54.26
54.26
6922.39
–
14766.31
xxiii. amount recognised in Profit and loss on account of impairment loss
on investment and inter corporate deposit
Subsidiaries, including:
l&t Shipbuilding limited
larsen & toubro Hydrocarbon international limited llc
Joint ventures:
l&t infrastructure development Projects limited
l&t Special Steels and Heavy Forgings Private limited
total
xxiv.
Rent deposit returned
Key management personnel:
mr. d.K. Sen
total
xxv. Guarantee given on behalf of
Subsidiaries, including:
l&t Hydrocarbon engineering limited
larsen & toubro arabia llc
l&t Hydrocarbon Saudi company llc
Joint venture:
l&t-mHPS turbine Generators Private limited
total
400
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(c) disclosure of related party transactions: (contd.)
Sr.
no.
nature of transaction/relationship/major parties
xxvi. contribution to post employment benefit plans
(a)
towards employer’s contribution to provident fund trusts, including:
larsen & toubro officers & Supervisory Staff Provident Fund
larsen & toubro limited Provident Fund of 1952
(b)
(c)
total
towards employer’s contribution to gratuity trusts, including:
larsen & toubro officers & Supervisors Gratuity Fund
larsen & toubro Gratuity Fund
total
towards advance contribution to/(refund from) gratuity trusts:
larsen & toubro officers & Supervisors Gratuity Fund
larsen & toubro Gratuity Fund
total
(d)
towards employer’s contribution to superannuation trust:
larsen & toubro limited Senior officers’ Superannuation Scheme
total
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
69.02
69.02
45.05
45.05
–
–
9.78
9.78
59.19
8.22
43.35
–
–
9.78
64.13
64.13
6.18
6.18
(175.00)
(175.00)
11.29
11.29
54.35
8.45
5.01
1.17
(142.30)
(32.70)
11.29
“major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective
period.
xxvii. compensation to key management personnel:
2018-19
2017-18
Short-term
employee
benefits
Post-
employment
benefits
Other
long term
benefits
Total
Short-term
employee
benefits
Post-
employment
benefits
Other
long term
benefits
v crore
Total
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/Independent Directors:
(a) Mr. A.M. Naik (Group Chairman w.e.f.
October 1, 2017)
–
–
21.28
14.06
9.16
5.54
7.43
6.51
5.67
3.75
2.33
1.46
1.95
1.71
5.15
3.00 **
(b) Other Non-Executive/Independent Directors
Total
* Represents encashment of past service accumulated leave.
*** Post-employment benefits include gratuity R 55.04 crore.
5.03
74.16
–
19.87
–
–
–
–
–
–
–
–
–
–
–
11.58 56.80 ***
19.38 *
87.76
26.95
17.81
11.49
7.00
9.38
8.22
13.99 3.70
9.16 2.42
7.96 1.83
6.37 1.69
5.86 1.52
3.14 0.81
8.15
2.54 1.50 **
–
–
–
–
–
–
–
17.69
11.58
9.79
8.06
7.38
3.95
4.04
5.03
94.03
3.82
–
64.42 70.27
–
19.38
3.82
154.07
** Represents pension
# Appointed w.e.f. July 1, 2017
401
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(d) amount due to/from related parties:
Sr.
no.
category of balance/relationship/major parties
i
accounts receivable
Subsidiaries, including:
l&t metro Rail (Hyderabad) limited
l&t Seawoods limited
l&t Hydrocarbon engineering 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 and aggregates limited
larsen and 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
magtorq Private limited
l&t-chiyoda limited
total
iii.
investment in debt securities [including preference shares
(debt portion)]
Subsidiaries:
l&t Shipbuilding limited
l&t metro Rail (Hyderabad) limited
Joint ventures:
l&t Special Steels and Heavy Forgings Private limited
Kudgi transmission limited
l&t infrastructure development Private limited
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
1218.66
458.44
822.67
140.55
115.36
53.04
75.62
0.01
152.16
97.76
110.36
296.97
460.21
503.41
3.99
289.15
0.15
747.74
771.22
1019.17
0.61
255.20
0.01
1473.87
931.89
1029.15
4.04
1965.08
1791.00
1161.75
867.35
955.12
888.68
273.07
213.17
488.89
253.06
987.58
188.22
64.03
78.87
40.66
38.19
33.22
42.68
0.15
78.23
89.21
98.12
234.82
276.37
700.05
0.43
0.18
867.35
–
217.73
509.49
260.36
total
2116.87
1854.93
402
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(d) amount due to/from related parties: (contd.)
Sr.
no.
category of balance/relationship/major parties
iv
impairment of investment in debt securities
Joint venture:
l&t Special Steels and Heavy Forgings Private limited
total
v.
loans & advances recoverable
Subsidiaries, including:
Hi-tech Rock Products and aggregates limited
l&t Shipbuilding limited
l&t Geostructure llP
nabha Power limited
Joint ventures, including:
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
213.17
213.17
213.17
–
–
2330.90
2134.44
363.37
774.59
386.69
1677.53
1621.11
–
763.09
223.11
615.10
l&t Special Steels and Heavy Forgings Private limited
1539.83
1399.58
associates, including:
l&t-chiyoda limited
magtorq Private limited
total
vi.
impairment provision on loans & advances recoverable
Joint venture:
l&t Special Steels and Heavy Forgings Private limited
total
vii. advances against equity contribution
Subsidiary:
l&t Uttaranchal Hydropower limited
total
viii. Unsecured loans (including lease finance)
Subsidiaries, including:
l&t Hydrocarbon engineering limited
l&t Seawoods limited
l&t Valves limited
total
7.38
0.39
4.94
2.44
4015.81
3755.94
–
–
19.45
19.45
426.30
263.00
263.00
–
–
32.73
263.00
–
–
19.56
12.22
32.73
426.30
0.79
–
19.45
129.91
294.89
403
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(d) amount due to/from related parties: (contd.)
Sr.
no.
ix.
category of balance/relationship/major parties
advances received in the capacity of supplier of goods/services
classified as “advances from customers” in the Balance Sheet
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
Subsidiaries, including:
l&t Seawoods limited
l&t Hydrocarbon engineering limited
Joint ventures, including:
l&t-mHPS Boilers Private limited
total
x.
due to directors #:
Key management personnel, including:
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
xi.
(a)
Post employment benefit plans
due to provident fund trusts, including:
larsen & toubro officers & Supervisory Staff Provident Fund
total
(b)
due to gratuity trusts:
larsen & toubro officers & Supervisors Gratuity Fund
larsen & toubro Gratuity Fund
total
(c)
due to superannuation trust:
larsen & toubro limited Senior officers’ Superannuation Scheme
total
40.33
7.15
47.48
57.00
57.00
27.73
27.73
60.92
60.92
7.99
7.99
5.48
29.61
6.97
–
18.60
12.15
7.05
4.20
6.00
5.30
24.77
49.70
11.22
7.99
74.69
17.00
91.69
49.11
49.11
24.51
24.51
45.05
45.05
6.74
6.74
28.15
29.95
17.00
9.77
11.58
7.39
5.32
5.19
4.50
2.28
21.65
36.31
8.75
6.74
404
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(d) amount due to/from related parties: (contd.)
Sr.
no.
category of balance/relationship/major parties
xii.(a) capital commitment given
Subsidiaries, including:
l&t Shipbuilding limited
larsen & toubro Heavy engineering llc
Joint ventures:
l&t Special Steels and Heavy Forgings Private limited
l&t-mHPS turbine Generators Private limited
total
(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
l&t Howden Private limited
associates, including:
l&t-chiyoda limited
magtorq Private limited
total
xiii. commitment to fund
Subsidiaries:
l&t Uttaranchal Hydropower limited
l&t metro Rail (Hyderabad) limited
total
xiv.
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-Gulf Private limited
l&t deccan tollways limited
l&t infrastructure development Projects limited
Krishnagiri thopur toll Road limited
l&t Samakhiali Gandhidham tollway limited
l&t BPP tollway limited
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
32.15
0.12
32.27
30.00
0.02
0.10
84.39
0.13
84.52
2166.60
1476.64
392.05
19.92
2578.57
845.00
845.00
2343.95
88.31
1205.16
5.50
2687.30
715.45
715.45
1329.55
76.10
937.64
914.90
207.55
42.63
103.60
19.06
298.00
547.00
651.26
969.27
–
320.82
69.19
18.77
–
–
–
–
–
47.25
33.59
0.13
–
1185.88
667.58
394.67
1.87
3.63
233.45
482.00
693.54
195.41
149.67
156.46
–
–
15.24
13.70
13.63
13.08
20.43
total
2432.26
1405.65
405
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [51] (contd.)
(d) amount due to/from related parties: (contd.)
Sr.
no.
category of balance/relationship/major parties
xv. Guarantee given on behalf of
Subsidiaries, including:
l&t Hydrocarbon engineering limited
larsen toubro arabia llc
l&t Shipbuilding limited
nabha Power limited
Joint ventures, including:
l&t-mHPS turbine Generators Private limited
l&t-mHPS Boilers Private limited
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
38051.01
27221.33
18476.12
8442.15
4025.00
427.31
456.24
508.34
total
38507.25
27729.67
xvi.
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
l&t Hydrocarbon engineering limited
Pt. tamco indonesia
l&t Parel Project llP
Joint ventures, including:
l&t- mHPS Boilers Private limited
PnG tollway limited
6.60
8.56
2.04
0.68
0.81
0.81
23.54
52.73
23.37
–
total
30.14
61.29
“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 3.70 crore (as at 31-3-2018: R 3.08 crore).
note : 1. all the related party contracts / arrangements have been entered on arm’s length basis.
2. the amount of outstanding balances as shown above are unsecured and will be settled/recovered in cash.
406
8691.05
5971.38
3156.00
3707.00
418.95
89.39
3.52
1.81
0.90
21.84
25.08
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
2018-19
2017-18
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
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
6677.70
1,40,20,87,033
47.63
5387.30
1,40,06,13,951
38.46
6677.70
1,40,20,87,033
5387.30
1,40,06,13,951
24,57,688
1,40,45,44,721
47.54
2
35,69,417
1,40,41,83,368
38.37
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:
Particulars
2018-19
2017-18
Weighted average number of potential equity shares on account of conversion of foreign currency
convertible bonds
Note [53]
95,20,455
95,20,455
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
9
10
11
12
13
14
15
16
Name of the subsidiary company
Principal
place of
business
As at 31-3-2019
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
Indian subsidiaries
Bhilai Power Supply Company Limited
L&T Shipbuilding Limited [refer Note 60(a)]
L&T Electricals and Automation Limited
Hi-Tech Rock Products and Aggregates
India
India
India
India
Limited
L&T Seawoods Limited
India
Kesun Iron & Steel Company Private Limited India
India
L&T Geostructure LLP
India
L&T Valves Limited
India
L&T Realty Limited
India
L&T Power Limited
India
L&T Cassidian Limited%
India
L&T Aviation Services Private Limited
India
Larsen & Toubro Infotech Limited
India
L&T Finance Holdings Limited
India
L&T Capital Company Limited
India
L&T Power Development Limited
99.90
97.00
100.00
100.00
100.00
95.00
74.00
100.00
100.00
99.99
100.00
100.00
74.80
63.91
100.00
100.00
99.90
97.00
100.00
100.00
100.00
95.00
100.00
100.00
100.00
99.99
100.00
100.00
74.80
63.91
100.00
100.00
99.90
97.00
100.00
100.00
100.00
95.00
100.00
100.00
100.00
99.99
100.00
100.00
74.80
63.91
100.00
100.00
99.90
97.00
100.00
100.00
100.00
95.00
74.00
100.00
100.00
99.99
100.00
100.00
82.96
64.01
100.00
100.00
99.90
97.00
100.00
100.00
100.00
95.00
74.00
100.00
100.00
99.99
100.00
100.00
82.96
64.01
100.00
100.00
99.90
97.00
100.00
100.00
100.00
95.00
74.00
100.00
100.00
99.99
100.00
100.00
82.96
64.01
100.00
100.00
407
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [53] (contd.)
Sr.
No.
Name of the subsidiary company
Indian subsidiaries
L&T Metro Rail (Hyderabad) Limited
17
L&T Technology Services Limited
18
L&T Construction Equipment Limited
19
L&T Infrastructure Engineering Limited
20
L&T Hydrocarbon Engineering Limited
21
L&T Construction Machinery Limited*
22
Seawoods Retail Private Limited^
23
24
Seawoods Realty Private Limited^
25 Marine Infrastructure Developer Private
Limited$
Principal
place of
business
As at 31-3-2019
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion
of direct
ownership
(%)
Proportion
of effective
voting power
held (%)
India
India
India
India
India
India
India
India
India
99.99
78.88
100.00
100.00
100.00
100.00
–
–
–
99.99
78.88
100.00
100.00
100.00
100.00
–
–
–
99.99
78.88
100.00
100.00
100.00
100.00
–
–
–
99.99
88.64
100.00
100.00
100.00
–
100.00
100.00
97.00
99.99
88.64
100.00
100.00
100.00
–
100.00
100.00
97.00
99.99
88.64
100.00
100.00
100.00
–
100.00
100.00
97.00
% Applied for strike off
*
^
$
The Company is incorporated on December 18, 2018
Striked off on June 26, 2018
The Company has sold its stake on June 28, 2018
Foreign subsidiaries:
Sr.
No.
1
2
3
4
Name of the subsidiary company
Larsen & Toubro LLC
Larsen & Toubro Hydrocarbon International
Limited LLC#
Larsen & Toubro (Saudi Arabia) LLC
L&T Global Holdings Limited
# In the process of liquidation
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 31-3-2019
Proportion
of effective
ownership
Interest (%)
98.80
Proportion
of direct
ownership
(%)
95.24
Proportion
of effective
voting power
held (%)
98.80
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
99.19
Proportion
of direct
ownership
(%)
95.24
Proportion
of effective
voting power
held (%)
99.19
90.00
100.00
100.00
90.00
100.00
100.00
4.35
100.00
100.00
100.00
100.00
100.00
4.35
100.00
100.00
100.00
100.00
100.00
As at 31-3-2019
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 31-3-2018
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
@ Under liquidation
408
Notes forming part of the Financial statements (contd.)
Note [53] (contd.)
joint ventures :
Name of the joint venture company
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
L&T Ahmedabad-Maliya Tollway Limited
L&T Halol-Shamlaji 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
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
As at 31-3-2019
As at 31-3-2018
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
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
^
^
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
50.10
51.00
51.00
75.50
74.00
72.11
51.00
51.00
50.00
^ 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 1-4-2018
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
Balance as at 31-3-2019 (6=1+2+3+4+5)
35.47
30.01
(19.50)
(0.17)
(0.20)
45.61
178.65
30.32
(4.13)
(0.04)
–
204.80
8.71
50.00
–
–
0.39
59.10
Sr.
No.
1
2
3
4
5
6
Contractual
rectification
cost -
construction
contracts
225.29
349.18
–
v crore
Others
Total
17.99
–
–
466.11
459.51
(23.63)
(181.02)
(17.99)
(199.22)
–
393.45
–
–
0.19
702.96
409
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [54] (contd.)
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, 2019 represents the
amount of the expected cost of meeting such obligations of rectification/replacement. the timing of the outflows is expected
to be within a period of 1 to 5 years from the date of Balance Sheet.
ii.
expected tax liability in respect of indirect taxes represents mainly the differential sales tax liability on account of non-
collection of declaration forms.
iii. Provision for litigation related obligations represents liabilities that are expected to materialise in respect of matters in appeal.
iv. contractual rectification cost represents the estimated cost the company is likely to incur during defect liability period as
per the contract obligations in respect of completed construction contracts accounted under ind aS 115 “Revenue from
contracts with customers”.
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
2018-19
2017-18
1.90
1.50
0.55
0.30
1.62
0.13
1.90
1.50
0.55
0.30
0.43
0.20
the company purchased electoral Bonds for R 35.00 crore and issued the same to political parties as company’s political contribution.
(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, 2019. 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 (Section 16)
interest due and payable towards suppliers under mSmed act for payments already made
2018-19
133.47
0.11
122.63
0.30
0.32
interest accrued and remaining unpaid at the end of the year to suppliers under mSmed act
10.97
amount of further interest remaining due and payable even in the succeeding years
8.14
v crore
2017-18
66.64
0.28
142.28
0.11
5.68
10.18
8.14
410
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, 2019.
Note [59]
disclosure in respect of joint operations:
(a)
(i) name of joint operation (with specific ownership interest in the arrangement):
Principal Place
of Business
description of interest
Sr.
no.
1
2
3
4
5
6
name of the joint operation
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
7 metro tunneling Group
8
l&t-Hochtief Seabird Joint Venture
9 metro tunneling chennai-l&t
Shanghai Urban construction (Group)
corporation Joint Venture
Proportion
of ownership
interest %
49%
50%
80%
65%
43%
26%
26%
90%
75%
india
india
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
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).
411
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [59] (contd.)
(i) name of joint operation (with specific ownership interest in the arrangement): (contd.)
Sr.
no.
name of the joint operation
16
l&t-Stec JV mUmBai
Proportion
of ownership
interest %
65%
Principal Place
of Business
description of interest
india
india
india
Uae
india
100%
100%
65%
60%
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
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
* the joint operation is in the process of liquidation.
412
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.
Company’s share
For the year
v crore
Total tax
Profit
after tax
Other
Comprehensive
Income
Total
Comprehensive
Income
Notes forming part of the Financial statements (contd.)
Note [59] (contd.)
(ii)
Financial interest in joint operation (to the extent of company’s share):
Sr. No.
Name of the joint operation
Year
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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
16
L&T-STEC JV MUMBAI
17
L&T- ISDPL (JV)
18
L&T-IHI Consortium
19
L&T-Eastern Joint Venture
As at period end
Total
Assets
Total
Liabilities
Total
Income
0.053
0.053
22.739
26.753
669.211
532.638
77.874
141.500
2.966
2.966
11.901
9.766
12.165
11.457
23.846
23.831
91.524
87.298
(0.591)
(0.592)
56.706
57.636
819.952
531.469
164.482
183.162
(0.899)
(0.906)
10.160
10.110
1.076
0.755
(50.094)
(50.477)
133.540
121.548
–
–
0.646
1.174
1059.795
626.043
(14.740)
0.503
–
–
2.483
0.059
0.815
0.753
–
–
10.521
27.249
Total
Expense
excluding
tax
0.001
0.001
3.729
1.539
1212.474
626.603
(13.550)
0.520
0.007
0.013
0.132
0.048
0.047
0.021
0.368
0.013
18.286
29.078
–
–
–
–
–
–
–
–
–
–
0.266
0.018
0.380
0.285
–
–
–
–
(0.001)
(0.001)
(3.083)
(0.365)
(152.679)
(0.560)
(1.190)
(0.017)
(0.007)
(0.013)
2.085
(0.007)
0.388
0.447
(0.368)
(0.013)
(7.765)
(1.829)
14.533
54.269
45.193
55.786
(22.162)
2.593
6.898
10.377
0.083
–
(29.143)
(7.784)
33.803
94.892
218.749
221.616
(15.944)
50.094
42.277
106.114
2018-19
2017-18
283.119
491.395
281.245
489.967
703.471
997.411
703.111
997.008
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
1172.979
1717.123
14.598
14.272
447.749
150.957
675.123
534.150
171.877
32.907
302.204
45.023
18.801
17.696
1124.817
1500.921
6.686
6.334
446.855
150.195
550.545
526.782
171.877
32.907
302.204
45.023
20.463
18.156
1750.670
1901.446
0.359
0.551
200.096
96.439
736.471
388.537
266.523
18.314
586.768
71.707
0.100
0.027
1387.209
1573.576
(0.013)
0.011
198.753
95.037
544.147
375.696
266.523
18.314
586.768
71.707
1.303
5.699
–
–
–
–
–
–
0.399
0.194
1.210
0.643
75.114
4.486
–
–
–
–
–
–
(58.221)
(56.020)
0.360
0.403
363.461
327.870
(0.027)
0.346
0.133
0.759
117.210
8.355
–
–
–
–
(1.203)
(5.672)
–
–
–
–
0.768
0.003
–
–
–
–
–
–
–
–
–
–
–
0.520
–
–
–
(0.009)
0.086
0.010
10.843
4.332
–
–
–
–
–
–
–
–
–
–
–
–
(0.001)
(0.001)
(3.083)
(0.365)
(151.911)
(0.557)
(1.190)
(0.017)
(0.007)
(0.013)
2.085
(0.007)
0.388
0.447
(0.368)
(0.013)
(7.765)
(1.309)
(29.143)
(7.784)
(58.221)
(56.029)
0.446
0.413
374.304
332.202
(0.027)
0.346
0.133
0.759
117.210
8.355
–
–
–
–
(1.203)
(5.672)
413
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [59] (contd.)
(ii)
Financial interest in joint operation (to the extent of company’s share) (contd.)
Sr. No.
Name of the joint operation
Year
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
23
L&T-Delma Mafraq Joint Venture
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
28
LNT-Shriram EPC Tanzania UJV
29
LTH Milcom Private Limited
Total
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
As at period end
Total
Assets
Total
Liabilities
Total
Income
8.469
8.995
0.278
0.500
10.887
7.591
48.543
41.011
–
0.813
4.993
4.512
152.734
30.923
231.619
325.673
234.617
275.208
56.376
65.194
305.329
254.207
38.379
22.756
171.444
172.037
0.037
0.052
5256.956
5151.582
144.293
31.270
348.185
401.918
208.502
250.604
35.099
39.595
215.175
227.628
37.536
23.290
148.895
171.898
0.012
0.011
5489.484
5088.117
181.885
23.263
6.319
635.825
405.698
279.741
2.480
13.312
595.253
402.949
44.125
29.978
281.570
89.469
–
–
6788.195
5662.762
Company’s share
For the year
v crore
Total
Expense
excluding
tax
0.305
1.191
9.228
12.162
166.919
23.610
41.688
699.959
405.693
279.569
6.802
13.316
532.888
376.649
42.357
30.513
246.898
89.331
0.014
0.012
6411.262
5437.687
Total tax
Profit
after tax
Other
Comprehensive
Income
Total
Comprehensive
Income
–
–
–
–
6.178
–
–
–
–
–
–
0.037
–
–
0.391
–
12.116
–
–
–
96.137
5.663
(0.305)
(0.378)
(4.235)
(7.650)
8.788
(0.347)
(35.369)
(64.134)
0.005
0.172
(4.322)
(0.041)
62.365
26.300
1.377
(0.535)
22.556
0.138
(0.014)
(0.012)
280.796
219.412
–
–
–
–
–
–
(4.952)
(0.067)
1.505
0.128
–
–
1.211
0.278
–
–
(0.146)
0.001
–
–
9.315
5.196
(0.305)
(0.378)
(4.235)
(7.650)
8.788
(0.347)
(40.321)
(64.201)
1.510
0.300
(4.322)
(0.041)
63.576
26.578
1.377
(0.535)
22.410
0.139
(0.014)
(0.012)
290.111
224.608
(b) name of joint operation (with specific ownership of activity carried out through the arrangement):
Sr.
no.
1
2
3
4
5
name of the joint operation
l&t Sojitz consortium
Principal place
of business
india
l&t-KBl (UJV) Hyderabad
l&t-KBl-maYtaS UJV
mallanna Sagar Reservoir
lnt-Prasad-RK infra JV
larsen & toubro limited
Waterleau consortium
india
india
india
qatar
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 (construcition 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.
414
Notes forming part of the Financial statements (contd.)
Note [59] (contd.)
(b) name of joint operation (with specific ownership of activity carried out through the arrangement) (contd.)
description of the interest
Jointly controlled operations (design, supply, erection, testing &
commissioning of 25 KV, 50HZ, single phase, traction over-head
equipment, switching stations, Scada and other associated works,
in the state of Karnataka and andhra Pradesh, india).
Jointly controlled operations (design, supply, erection, testing &
commissioning of 25 KV, 50HZ, single phase, traction over-head
equipment, switching stations, and other associated works, in the
state of Karnataka and andhra Pradesh, india).
design & construction of 8 special steel bridges over water main
and railways and across creek & rivers including Ulhas damanganga,
Par & tapi rivers, involving bridge structure, approaches in
formation in embankments with 1 major bridge, 3 minor bridges
and 1 RUB, guide bunds and protection works including testing
and commissioning on design-build lumpsum price basis for JnPt
Vadodara Section of Western dedicated Freight corridor (Phase-2).
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 inter locking 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 lumpsum price basis for JnPt -makarpur section.
civil building and track works contract package- 3 (R).
Sr.
no.
6
name of the joint operation
l&t-BRaPl JV (package ii)
Principal place
of business
india
7
l&t-BRaPl JV (package iii)
india
8
iiS - l&t consortium
india
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
16
17
18
19
20
21
Sojitz corporation-l&t
consortium
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
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 lumpsum price basis for Rewari- makarpura.
415
Notes FoRminG PaRt oF tHe Financial StatementS
annUal RePoRt 2018-19
Notes forming part of the Financial statements (contd.)
Note [60]
disclosure pursuant to ind aS 103 “Business combinations”:
(a) the Board of directors in its meeting held on may 10, 2019, has approved amalgamation of its wholly-owned subsidiary
l&t Shipbuilding limited (‘ltSB’) with the company subject to receipt of regulatory and other approvals. the company has
increased its stake in ltSB to 100% in april 2019 from 97% as at march 31, 2019.
(b) during the previous 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 was effective from
the appointed date april 1, 2017. SiPl had a registered office in Bengaluru, india and was engaged in the business of manufacture
of electronic Systems and Sub-systems.
no fresh shares were issued to effect the merger as SiPl was wholly owned subsidiary of the company. Further the merger was
accounted using pooling of interest method, involving the following:
(i)
the assets and liabilities of SiPl were reflected at their carrying amounts. no adjustment was made to reflect the fair values,
or recognise any new asset or liability.
(ii) the financial information in the financial statements of the company was restated from the effective date april 1, 2017.
(iii) the balance of the retained earnings appearing in the financial statements of the SiPl was aggregated with the corresponding
balance appearing in the financial statements of the company.
(iv) the identity of General reserve and Securities premium was preserved and appearing in the financial statements of the
company in the same form in which they appeared in financial statements of SiPl; and
(v) the excess of amount of investment by the company in SiPl over the share capital of SiPl was treated as capital reserve in
company’s financial statements and the same was 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 and duty drawback amounts to
R 99.97 crore (previous year: R 111.04 crore).
Note [62]
disclosure pursuant to ind aS 7 “Statement of cash Flows” - changes in liabilities arising from financing activities:
Particulars
non-current
borrowings
(note 19)
current borrowings
(note 23)
current maturities
of long term
borrowings
(note 24)
Sr.
no.
1
2
3
4
5
6
7
8
Balance as at 1-4-2017
changes from financing cash flows
the effect of changes in foreign
exchange rates
interest accrued
other changes (transfer within
categories)
Balance as at 31-3-2018
changes from financing cash flows
the effect of changes in foreign
exchange rates
interest accrued
9
10 other changes (transfer within
7134.28
(770.63)
10.06
57.72
(936.27)
5495.16
784.06
–
5.00
2312.50
1783.81
32.62
0.64
–
4129.57
(606.49)
144.37
0.80
v crore
total
10558.37
(87.61)
31.88
58.36
–
10561.00
(791.77)
370.99
51.35
–
10191.57
1111.59
(1100.79)
(10.80)
–
936.27
936.27
(969.34)
226.62
45.55
3892.35
4131.45
categories)
Balance as at 31-3-2019
11
(3892.35)
2391.87
–
3668.25
416
Notes forming part of the Financial statements (contd.)
Note [62] (contd.)
amounts reported in statement of cash flows under financing activities:
Particulars
Proceeds from non-current borrowings
Repayments of non-current borrowings
(Repayments)/proceeds from other borrowings (net)
total changes from financing cash flows (refer to Sr. no. 7 & 2 above)
Note [63]
amounts reported in statement of cash flows
v crore
2018-19
789.05
(974.33)
(606.49)
(791.77)
2017-18
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:
on march 30, 2019, the ministry of corporate affairs notified following new ind aS, applicable in respect of accounting periods
commencing on or after april 1, 2019.
ind As 116 “Leases”
ind aS 116 “leases” supersedes aS 17 “leases” in respect of accounting periods commencing on or after april 1, 2019. ind aS
116 sets out the principles for the recognition, measurement, presentation and disclosure of leases. Pursuant to transition methods
permitted under ind aS 116, the company is proposing to use “modified retrospective approach” for transitioning to ind aS 116 with
effect from april 1, 2019. Under modified retrospective approach, cumulative effect of initially applying the accounting standard as
at april 1, 2019 will be recognised as an adjustment to the opening balance of Retained earnings of the financial year 2019-20 and
figures for the financial year 2018-19 will not be restated as per the new accounting standard. With respect to existing leases as at the
date of initial application of the accounting standard, the company is proposing to use the practical expedient available on transition to
ind aS 116 and will not reassess whether a contract is or contains a lease and instead apply ind aS 116 only to the contracts that were
previously identified as lease applying ind aS 17.
the company has carried out an initial assessment of the impact of adopting this standard and there would not be any significant
impact on the financials of the company.
Note [64]
Figures for the previous year have been regrouped/reclassified to conform to the figures of the current year.
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Auditors’ report on Consolidated FinanCial statements annUal RePoRt 2018-19
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 Audit of Consolidated Financial statements
opinion
We have audited the accompanying consolidated financial statements of larsen & toubro limited (the “Parent”) and its subsidiaries
(the Parent and its subsidiaries together referred to as the “Group”), which includes 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, which comprise the
Consolidated Balance sheet as at march 31, 2019, the Consolidated statement of Profit and loss (including other Comprehensive
income), the Consolidated statement of Changes in equity and the Consolidated statement of Cash Flows for the year then ended
on that date, and notes to financial statements, including a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as the “Consolidated Financial statements”).
in our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial
statements give the information required by the Companies act, 2013 (the “act”) in the manner so required and give a true and
fair view in conformity with indian accounting standards prescribed under section 133 of the act read with the Companies (indian
accounting standards) Rules 2015, as amended (“ind as”) and other accounting principles generally accepted in india, of the state of
affairs of the Group as at march 31, 2019, the consolidated profit, consolidated total comprehensive income, consolidated changes in
equity and its consolidated cash flows for the year ended on that date.
Basis for opinion
We conducted our audit of consolidated financial statements in accordance with the standards on auditing (sas) specified under
section 143(10) of the Companies act, 2013. our responsibilities under those standards are further described in the auditor’s
Responsibilities for the audit of the Consolidated Financial statements section of our report. We are independent of the Group, and of
its joint operations, associates and joint ventures in accordance with the Code of ethics issued by the institute of Chartered accountants
of india (“iCai”) together with the ethical requirements that are relevant to our audit of the consolidated financial statements under
the provisions of the Companies act, 2013 and the Rules made thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the iCai’s Code of ethics. We believe that the audit evidence obtained is sufficient and
appropriate to provide a basis for our audit opinion on the consolidated financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. these matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
appropriateness of recognition, measurement, presentation and disclosures of revenues and other related balances in view of
adoption of ind as 115 “Revenue from Contracts with Customers” (new revenue accounting standard)
Key audit matter
description
appropriateness of recognition, measurement, presentation and disclosures of revenues and other related
balances in view of adoption of ind as 115 “Revenue from Contracts with Customers” (new revenue accounting
standard).
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the application of the new revenue accounting standard involves certain key judgements relating to identification
of distinct performance obligations, determination of transaction price of the identified performance obligations,
the appropriateness of the basis used to measure revenue recognised over a period. additionally, new revenue
accounting standard contains disclosures which involves collation of information in respect of disaggregated
revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance
sheet date.
Refer to note no. 1(i) of the Consolidated Financial statements
Principal audit
Procedures
the auditors have assessed the process to identify the impact of adoption of the new revenue accounting
standard.
the procedures performed included the following:
•
•
Evaluated the design of internal controls relating to implementation of the new revenue accounting standard;
Selected samples of continuing and new contracts, and tested the operating effectiveness of the internal
control, relating to identification of the distinct performance obligations and determination of transaction
price. the auditors have carried out a combination of procedures involving enquiry and observation,
reperformance and inspection of evidence in respect of operation of such controls; and
•
Selected samples of continuing and new contracts and performed the following procedures:
i.
Read and analysed contracts to identify the distinct performance obligations in such contracts;
ii. Compared such performance obligations with that identified and recorded by the Company;
iii. Considered the terms of the contracts to determine the transaction price including any variable
consideration to verify the transaction price used to compute revenue and to test the basis of estimation
of the variable consideration;
iv.
in respect of samples relating to fixed price contracts, progress towards satisfaction of performance
obligation used to compute recorded revenue was verified with the supporting documentation,
validated estimates of costs to complete, mathematical appropriateness of calculations and the
adequacy of project accounting; and
v.
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
Revenue recognition – accounting for construction contracts
Key audit matter
description
there are significant accounting judgements including estimation of costs to complete, determining the stage of
completion and the timing of revenue recognition.
Principal audit
Procedures
the Group recognises revenue and profit/loss on the basis of stage of completion based on the proportion of
contract costs incurred as at balance sheet date, relative to the total estimated costs of the contract at completion.
the recognition of revenue and profit/loss therefore rely on estimates in relation to total estimated costs of each
contract.
Cost contingencies are included in these estimates to take into account specific uncertain risks, or disputed claims
against the Group, arising within each contract. these contingencies are reviewed by the management on a
regular basis throughout the contract life and adjusted where appropriate.
the revenue on contracts may also include variable consideration (variations and claims). Variable consideration is
recognised when the recovery of such consideration is highly probable.
Refer to note no 1(i) of the Consolidated Financial statements
the auditors’ procedures included:
•
•
•
•
•
•
Testing of the design and implementation over controls involved for the determination of the estimates used,
as well as their operating effectiveness;
Testing the relevant information technology systems’ access and change management controls relating to
contracts and related information used in recording and disclosing revenue in accordance with the new
revenue accounting standard;
Testing samples of contracts for appropriate identification of performance obligations;
For the sample selected, reviewing for change orders and the impact on estimated costs to complete;
Engaging technical experts to review estimates of costs to complete for sample contracts; and
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
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Auditors’ report on Consolidated FinanCial statements annUal RePoRt 2018-19
appropriateness of revenues and onerous obligations in respect of fixed price contracts involves critical estimates for services relating
to information technology & technology services segment
Key audit matter
description
estimated effort is a critical estimate to determine revenues and provision for onerous obligations in fixed price
contracts. this estimate has a high inherent uncertainty as it requires consideration of progress of the contract,
efforts incurred till date, efforts required to complete the remaining contract performance obligations.
Refer to note no.1(i) of the Consolidated Financial statements
Principal audit
Procedures
the auditors audit approach was a combination of test of internal controls and substantive procedures which
included the following:
•
•
•
•
•
Evaluated the design of internal controls relating to recording of efforts incurred and estimation of efforts
required to complete the performance obligations;
Tested the access and application controls pertaining to time recording, allocation and budgeting systems
which prevents unauthorised changes to recording of efforts incurred;
Selected samples of contracts and tested the operating effectiveness of the internal controls relating to
efforts incurred and estimated through inspection of evidence of performance of these controls;
Selected samples of contracts and performed a retrospective review of efforts incurred with estimated efforts
to identify significant variations and verify whether those variations have been considered in estimating the
remaining efforts to complete the contract;
Reviewed samples of contracts with unbilled revenues to identify possible delays in achieving milestones,
which require change in estimated efforts to complete the remaining performance obligations; and
•
Performed analytical procedures and test of details for reasonableness of incurred and estimated efforts.
Revenue recognition and measurement of contract assets in respect of un-invoiced amounts and measurement of receivables in
respect of overdue invoices.
Key audit matter
description
Principal audit
Procedures
the Group, in its contract with customers, promises to transfer distinct services to its customers which may be
rendered in the form of engineering, procurement and construction (ePC) services through design-build contracts,
and other forms of construction contracts. the recognition of revenue is based on contractual terms, which
could range from cost plus fee to agreed unit price to lump-sum arrangements. at each reporting date, revenue
is accrued for costs incurred against work performed that may not have been invoiced. identifying whether the
group’s performance have resulted in a service that would be billable and collectable where the works carried out
have not been acknowledged by customers as of the reporting date, or in the case of certain defence contracts,
where the evidence of work carried out and cost incurred are covered by confidentiality arrangements involves a
significant amount of judgment.
•
•
Recognition of revenue before formal acknowledgment of receipt of services by the customer could lead to
an over or under-statement of revenue and profit, whether intentionally or in error; and
Assessing the recoverability of amounts overdue against invoices raised which have remained unsettled for a
significantly long period after the end of the contractual credit period also involves a significant amount of
judgment.
Refer to note no. 1(i) and 1(r) of the Consolidated Financial statements
the procedures performed included the following:
•
•
Obtained an understanding of the Group’s processes in collating the evidence supporting execution of work
for each disaggregated type of revenue. auditors have also obtained an understanding of the design of key
controls for quantifying units of items / services that would be invoiced and the application of appropriate
prices for each of such services;
Tested the design and operating effectiveness of management’s key controls in collating the units of services
delivered and in the application of accurate prices for each of such services for samples of the un-invoiced
revenue entries, which included testing of access and change management controls exercised in respect of
related information systems;
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•
•
•
•
•
Tested samples of un-invoiced revenue entries with reference to the reports from the information system that
records the costs incurred against the services delivered to confirm the work performed and application of
appropriate margin applied for the respective services. the auditors have also tested whether appropriate
adjustments have been made for the element of variable consideration related to committed service levels of
performance. With regard to incentives, auditors tests were focused to ensure that accruals were restricted to
only those items where contingencies were minimal;
Tested cut-offs for revenue recognized against un-invoiced amounts by matching the revenue accrual against
accruals for corresponding cost;
For defence contracts which are covered under statutory confidentiality arrangements, the auditors have
compared the revenue recognised with amounts collected from customers to ensure that the gap between
revenue recognised and collections is below the materiality threshold;
Extended the testing upto the date of approval of financial statements by the Board of Directors of the Parent
entity to verify adjustments, if any, that may have been necessary upon receipt of approvals from customers
for services delivered prior to the reporting date and/or collections there against;
Reviewed the delivery and collection history of customers against whose contracts un-invoiced revenue is
recognised; and
•
Verification of subsequent receipts, post balance sheet date.
Provision for expected credit losses for financial services segment
Key audit matter
description
the Group has financial assets that are debt instruments such as loans, debt securities, bank balances and deposits
and trade receivables that are measured at: amortised cost; and fair value through other comprehensive income
(“FVOCI”); and finance lease receivables recognised as per Ind AS 16 on “Leases”, in respect of which impairment
losses have been recognised and measured using the “expected credit losses” (“eCl”) model laid down in ind as
109 on “Financial instruments” for which, the Group has used the general approach described in ind as 109.
Principal audit
Procedures
While the Group has identified objective criteria to define “significant increase in credit risk” (“siCR”) on a
financial asset, identification of financial instruments that could be grouped together on the basis of shared credit
risk and assessed collectively for siCR constitutes a significant judgement.
also, the Group has used an internal rating based approach in building its eCl model, using its own internal
estimates for some or all of the credit risk components such as the Probability of default (“Pd”), loss Given
default (“lGd”) and effective maturity (“m”). each of these elements are critical estimates in the measurement of
impairment on such financial assets.
the Group has also built in a collective adjustment for its loan portfolios to be more responsive to emerging
macro-economic and other risk developments, which also involves critical judgements and estimates.
therefore, impairment of financial assets was considered a key audit matter.
the procedures performed included the following:
•
•
•
Obtained an understanding of how the Group identified financial assets that are not measured at fair value
through profit and loss, with similar credit risks, to assess siCR collectively i.e. the extent of forward looking
information, that is reasonable and supportable, was collated and the extent to which reliance was placed on
past information.
Checked the appropriateness of the Group’s determination of SICR and the resultant basis for classification of
exposures into various stages.
Assessed the appropriateness of key data sources and assumptions in building estimates for components
of credit risk including Pd, lGd and m that were used in modelling eCl provisions. For data from external
sources, we understood the process of choosing such data, its relevance to the Group. the auditors have
evaluated the key controls and governance over the modelling process including model monitoring, validation
and approval. the auditors have tested controls over model outputs and recognition and approval of post
model adjustments and management overlays.
•
For corporate exposures, tested design and operating effectiveness of the key controls over the
appropriateness of use of collaterals, the quantification thereof and the timing of recovery.
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Auditors’ report on Consolidated FinanCial statements annUal RePoRt 2018-19
•
•
•
•
Tested the design and operating effectiveness of the Group’s key internal controls around the completeness
and accuracy of financial assets on which the eCl model was applied. a sample of exposures was also tested
for staging, application of the appropriate Pd, lGd and m. the auditors have tested the mathematical
accuracy of the model output and its sensitivity to changes in modelling assumptions.
Assessed and tested the material overlays with a focus on the reasonableness of the supportable information
used.
Involved our specialists in areas that required specific expertise (i.e. data reliability and the expected credit
loss model).
Assessed the accuracy of the disclosures in the financial statements and ensured that they were in accordance
with ind as 109.
evaluation of uncertain tax positions
Key audit matter
description
the Group has material uncertain tax positions including matters under dispute which involves significant
judgment to determine the possible outcome of these disputes.
Principal audit
Procedures
Refer to Note No 1(z) and 1(aa) of the Consolidated Financial Statements
the auditors procedures included the following:
•
•
Obtained understanding of key uncertain tax positions;
Obtained details of completed tax assessments and demands for the year ended March 31, 2019 from the
management;
•
The auditors along with our internal tax experts –
i.
discussed with appropriate senior management and evaluated the management’s underlying key
assumptions in estimating the tax provision;
ii. Assessed management’s estimate of the possible outcome of the disputed cases; and
iii. Considered legal precedence and other rulings in evaluating management’s position on these uncertain
tax positions.
•
Additionally, considered the effect of new information in respect of uncertain tax positions as at April 1, 2018
to evaluate whether any change was required to management’s position on these uncertainties.
impairment of toll Collection Rights
Key audit matter
description
toll collection rights obtained in consideration for rendering construction services, represent the right to collect
toll revenue during the concession period in respect of Build-operate-transfer ("Bot") and design-Build-operate-
transfer (“dBot”) projects. toll collection rights are capitalised as intangible assets upon completion of the project
at the cumulative construction costs plus the present value of obligation towards negative grants and additional
concession fee payable to national Highways authority of india ("nHai")/state authorities, if any.
Principal audit
Procedures
the Group has carried out an evaluation for impairment of such toll collection rights which have incurred losses
on a continuous basis, representing indicators of impairment. management has estimated the future cash flows
arising from achieving revenues and costs in line with the increase in traffic as well as refinancing/ restructuring.
as such estimations involve complex and subjective judgements by the management, there is a risk that there may
be an impairment that has not been recorded.
Refer to note no 1(n) of the Consolidated Financial statements.
the auditors have performed a range of audit procedures, which included the following:
•
•
Evaluated the design and implementation of the relevant controls and the operating effectiveness of such
internal controls in estimating the future projections including assumptions used in determining the value in
use;
Compared the actual revenues and cash flows generated by the entities during the year as compared to the
projections and estimates considered in the previous year and evaluated the basis of future projections with
regard to the revenue and cash flows;
422
•
•
•
Evaluated the appropriateness of key assumptions in the valuations including discount rate, growth rate, and
consulted internal specialists. the challenge was based on the auditors’ assessment of the historical accuracy
of the Group’s estimates in the prior periods and an assessment of the consistency of assumptions across all
the subsidiaries and comparison of the assumptions with public data wherever available;
The auditors have also performed a sensitivity analysis to assess the impact of possible different assumptions
related to revenue and cost estimates including:
i.
ii.
Increase/decrease in revenue growth rate;
Increase/decrease to cost forecasts; and
The auditors have enquired with key financial and operational personnel to identify any factors that should
be taken into account in auditors’ analysis. in all cases, the auditors have corroborated management’s
explanations, including changes in assumptions, and evaluated these relative to auditors own analysis.
multiple it applications
Key audit matter
description
one of the components is highly dependent on technology due to the significant number of transactions
that are processed daily and discrete it systems. the interest income is computed through various it systems
and the interfacing of these system with the accounting system is critical aspect of audit. the audit approach
relies extensively on automated controls and controls around interface of different systems, therefore on the
effectiveness of controls over it systems.
it application controls are critical to ensure that changes to applications and underlying data are made in an
appropriate manner. appropriate controls contribute to mitigating the risk of potential fraud or errors as a result of
changes to applications and data.
Principal audit
Procedures
management has implemented Group wide preventive and detective controls across critical applications and
infrastructure to reduce the risk over it applications in the financial reporting process. due to the pervasive nature,
the auditors have assessed the risk of a material misstatement arising from technology as significant for the audit.
the component auditors have performed a range of audit procedures, which included the following:
access rights were tested over applications, operating systems and databases relied upon for financial reporting.
specifically, the tests were designed to cover the following:
•
•
•
New access requests for joiners were properly reviewed and authorised;
User access rights were removed on a timely basis when an individual left or moved role;
Access rights to applications, operating systems and databases were periodically monitored for
appropriateness; and
•
Highly privileged access is restricted to appropriate personnel.
other areas that were independently assessed included password policies, security configurations, controls over
changes to applications and databases and that business users, developers and production support did not have
access to change applications, the operating system or databases in the production environment. testing of
automated controls and interface testing was carried out.
other procedures performed included:
• Where inappropriate access was identified, we understood the nature of the access, and, where possible,
obtained additional evidence on the appropriateness of the activities performed;
•
•
Additional substantive testing was performed on specific year-end reconciliations and confirmations with
external counterparties;
A list of users’ access permissions was obtained and manually compared to other access lists where
segregation of duties was deemed to be of higher risk.
information other than the Consolidated Financial statements and Auditor’s report
the Company’s Board of directors is responsible for the preparation of other information. the other information comprise the
information included in the management discussion and analysis, Board’s Report including annexures to Board’s Report, Business
Responsibility Report, Corporate Governance and shareholder’s information, but does not include the consolidated financial statements
and our auditor’s report.
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Auditors’ report on Consolidated FinanCial statements annUal RePoRt 2018-19
our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
in connection with our audit of the consolidated financial statements, our responsibility is to read the other information, compare
with the other information of the joint operations, subsidiaries, joint ventures and associates audited by other auditors to the extent it
relates to these entities and, in doing so, place reliance on the work of the other auditors and consider whether the other information
is materially inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated. other information so far as it relates to the joint operations, subsidiaries, joint ventures
and associates, is traced from their financial statements audited by the branch auditors and other auditors and, in doing so, consider
whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during
the course of our audit or otherwise appears to be materially misstated.
if, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Management’s responsibility for the Consolidated Financial statements
the Parent’s Board of directors is responsible for the matters stated in section 134(5) of the Companies act, 2013 (the “act”) with
respect to the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial
position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and
consolidated cash flows of the Group including its joint operations, associates and joint ventures in accordance with the ind as and
other accounting principles generally accepted in india.
the respective Board of directors of the companies included in the Group are responsible for maintenance of adequate accounting
records in accordance with the provisions of the act for safeguarding the assets of the Group, and of its joint operations, associates
and joint ventures and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
in preparing the consolidated financial statements, the respective Board of directors of the companies included in the Group, its joint
operations, associates and joint ventures are responsible for assessing the ability of the Group, its joint operations, associates and joint
ventures to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do
so.
the respective Board of directors of the companies included in the Group, its joint operations, associates and joint ventures are also
responsible for overseeing the financial reporting process of the Group, its joint operations, associates and joint ventures.
Auditor’s responsibility for the Audit of the Consolidated Financial statements
our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with sas will always detect a material
misstatement when it exists. misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
as part of an audit in accordance with sas, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. the risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the act, we are also responsible for expressing our opinion on whether the Parent,
subsidiary companies, joint operation companies, associate companies and joint venture companies incorporated in india, have
adequate internal financial controls systems in place and the operating effectiveness of such controls.
•
•
424
•
•
•
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the
Group, its joint operations, associates and joint ventures to continue as a going concern. if we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Group, its joint operations, associates and joint
ventures to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group, its joint operations, associates and joint ventures to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the
consolidated financial statements.
Materiality
materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements.
Communication with those charged with governance
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the consolidated financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
other Matters
1.
the consolidated financial statements includes the financial information of 24 joint operations included in the standalone financials
statements of the companies included in the Group whose financial information reflect total assets of R 4,540.71 crore as at march
31, 2019, total revenue of R 6,018.63 crore and net cash outflows amounting to R 170 crore for the year ended on that date, as
considered in the respective standalone financial statements of the Companies included in the Group. 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 work done
by and the reports of such other auditors.
The consolidated financial statement also includes the financial information of 66 subsidiaries whose financial information reflect
total assets of R 1,14,000.15 crore as at march 31, 2019, total revenues of R 50,475.82 crore and net cash outflows amounting
to R 1,045.06 crore for the year ended on that date, as considered in the consolidated financial statements. The consolidated
financial statements also include the Group’s share of total loss after tax (net) of R 310.50 crore and total comprehensive loss
(net) of R 301.19 crore for the year ended march 31, 2019, as considered in the consolidated financial statement, in respect of
3 associates and 7 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 financial statement, 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 subsection (3) of section 143 of
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Auditors’ report on Consolidated FinanCial statements annUal RePoRt 2018-19
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.
our opinion on the consolidated financial statements is not modified in respect of the above matters with respect to our reliance
on the work done by and the reports of such other auditors.
2.
The consolidated financial statements includes the financial information of 6 joint operations included in the standalone financial
statements of the companies included in the Group which have not been audited by their auditors, whose financial information
reflects total assets of R 302.45 crore as at march 31, 2019 and total revenues of R 452.54 crore and net cash inflow of
R 0.10 crore for the year ended on that date, as considered in the respective standalone financial statements of the Companies
included in the Group. the financial information of these joint operations has been unaudited and has been furnished to us by
the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures
included in respect of these joint operations, is based solely on such unaudited financial information which is certified by the
management. in our opinion and according to the information and explanations given to us by the management, the financial
information of these joint operations are not material to the Group.
the consolidated financial statements includes the financial information of 44 subsidiaries which have not been audited by their
auditors, whose financial information reflect total assets of R 250.21 crore as at march 31, 2019, total revenues of R 255.06 crore
and net cash inflow of R 40.61 crore for the year ended on that date. The consolidated financial statements also includes the
Group’s share of total loss after tax (net) of R 0.06 crore and total comprehensive income (net) of R 0.63 crore for the year ended
march 31, 2019, as considered in the consolidated financial statement, in respect of 3 associates and 7 joint ventures, whose
financial information has not been audited by their auditors. the financial information of these subsidiaries, associates and joint
ventures is unaudited and has been furnished to us by the management and our opinion on the consolidated financial statement,
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 which is certified by the management. 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.
our opinion on the consolidated financial statement is not modified in respect of the above matters with respect to our reliance on
the financial information certified by the management.
report on other Legal and regulatory requirements
as required by section 143(3) of the act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit of the aforesaid consolidated financial statements.
b)
c)
in our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our examination of those books.
the Consolidated Balance sheet, the Consolidated statement of Profit and loss (including other Comprehensive income),
Consolidated statement of Changes in equity and the Consolidated statement of Cash Flows dealt with by this Report are in
agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d)
in our opinion, the aforesaid consolidated financial statements comply with the ind as specified under section 133 of the act,
read with Rule 7 of the Companies (accounts) Rules, 2014.
e) on the basis of the written representations received from the directors of the Parent as on march 31, 2019 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, 2019 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 auditor’s reports of the Parent and its 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 internal financial controls over financial reporting
of those companies, for reasons stated therein.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of
the act, as amended
426
in our opinion and to the best of information and according to the explanations given to us, the remunerations paid by the
Company to its directors during the year is in accordance with the provisions of section 197 of the act.
h) 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:
•
•
•
The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the
Group, its associates and joint ventures.
Provision has been made in the consolidated financial statements, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts; and
There has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund by
the Parent, applicable subsidiary companies, associate companies, joint venture and joint operation companies to the extent
incorporated in india.
For deLoitte HAsKiNs & seLLs LLp
Chartered accountants
(Firm’s Registration No. 117366W/W-100018)
sanjiv V. pilgaonkar
(Membership No. 039826)
mumbai, may 10, 2019
427
Auditors’ report on Consolidated FinanCial statements annUal RePoRt 2018-19
ANNeXure “A” to tHe iNdepeNdeNt Auditor’s report
(referred to in paragraph “1(f)” under ‘report on other Legal and regulatory requirements’ section of our report of even date)
report on the internal Financial Controls over Financial reporting under Clause (i) of sub-section 3 of section 143 of the
Companies Act, 2013 (the “Act”)
in conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended march 31, 2019,
we have audited the internal financial controls over financial reporting of laRsen & toUBRo limited (hereinafter referred to as
“Parent”) and its subsidiary companies (the parent and its subsidiaries together 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 act.
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, which are applicable to an audit of internal financial controls. those standards and the
Guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. the procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by 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.
428
inherent Limitations of internal Financial Controls over Financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. also,
projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that
the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
opinion
in our opinion to the best of our information and according to the explanations given to us and based on the consideration of the
reports of 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, 2019, 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 34 subsidiary companies, 1 joint operation company, 7 joint venture companies and 3
associate companies, which are companies incorporated in india, is based solely on the corresponding reports furnished to us by 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 10 subsidiary companies, and 5 joint venture companies, which are companies
incorporated in india, whose financial information is unaudited and whose efficacy of internal financial controls over financial reporting
is based solely on the management’s certification provided to us and our opinion on the adequacy and operating effectiveness of
the internal financial controls over financial reporting of the Group is not affected as the financial information of such entities is not
material to the Group.
our opinion is not modified in respect of the above matters with respect to our reliance on the work done by and the reports of such
other auditors and the financial information certified by the management.
For deLoitte HAsKiNs & seLLs LLp
Chartered accountants
(Firm’s Registration No. 117366W/W-100018)
sanjiv V. pilgaonkar
(Membership No. 039826)
mumbai, may 10, 2019
429
CoNsoLidAted BalanCe sHeet annUal RePoRt 2018-19
Consolidated Balance sheet as at March 31, 2019
Note
as at 31-3-2019
v crore
v crore
as at 31-3-2018
v crore
v crore
as at 1-4-2017
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
10889.56
2483.56
4254.56
1826.91
4222.91
11435.93
67969.35
3418.93
5648.62
6413.93
10642.04
2143.07
4345.86
1561.78
2030.51
11300.36
11232.97
1944.71
3613.26
1398.66
432.22
11353.23
2766.90
2685.91
1487.38
48234.72
857.60
62714.68
2754.92
4753.78
56032.51
2359.10
3697.51
4847.80
4139.74
14300.22
27787.85
3526.87
1779.09
486.45
22026.52
3286.34
2481.59
3365.47
1793.85
54459.45
614.32
9464.25
33116.98
6834.34
1198.39
559.72
32005.11
4194.41
107874.37
52688.03
7.41
279134.07
87373.20
47897.02
1512.43
243877.45
73193.34
39957.92
1649.37
211004.54
2642.29
4531.81
1862.32
57788.88
1144.05
13946.17
37038.17
6509.49
5216.75
626.69
42530.82
2006.28
430
Consolidated Balance sheet as at March 31, 2019 (contd.)
eQuitY ANd LiABiLities:
equity
equity share capital
other equity
equity attributable to owners of the
Company
non-controlling interests
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:
due to micro enterprises and
small enterprises
due to others
other financial liabilities
other current liabilities
Provisions
Current tax liabilities (net)
liabilities associated with group(s) of assets
classified as held for sale
totAL eQuitY ANd LiABiLities
Note
as at 31-3-2019
v crore
v crore
as at 31-3-2018
v crore
v crore
as at 1-4-2017
v crore
v crore
20
21
280.55
62094.25
280.27
54623.23
186.59
49276.44
62374.80
6826.11
54903.50
5201.43
49463.03
3140.03
22
23
74120.79
354.83
72914.76
353.95
67340.58
226.09
24
50(d)
25
26
27
28
29
30
31
52
74475.62
556.84
311.13
0.55
73268.71
523.54
637.92
67.97
67566.67
526.60
610.95
172.14
29223.84
22210.54
261.12
42733.69
4815.08
19331.85
15277.47
176.16
37621.22
5032.18
16534.47
10078.90
130.26
30164.60
4828.64
99244.27
31166.55
3037.84
1137.16
3.20
279134.07
77438.88
27095.64
2525.05
752.84
1461.97
243877.45
61736.87
23392.13
2667.81
232.71
1495.60
211004.54
CoNtiNGeNt LiABiLities
CoMMitMeNts (capital and others)
Notes ForMiNG pArt oF tHe
FiNANCiAL stAteMeNts
32
33
1 to 69
in terms of our report attached
For deloitte HasKins & sells llP
Chartered accountants
Firm's Registration No.117366W/W-100018
by the hand of
sanJiV V. PilGaonKaR
Partner
Membership No. 39826
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. m. CHitale
(din 00101004)
sUnita sHaRma
(din 02949529)
mumbai, may 10, 2019
n. HaRiHaRan
Company secretary
m. no. a3471
ViKRam sinGH meHta
(din 00041197)
sanJeeV aGa
(DIN 00022065)
n. KUmaR
(din 00007848)
directors
431
CoNsoLidAted stAteMeNt oF PRoFit and loss annUal RePoRt 2018-19
Consolidated statement of profit and Loss for the year ended March 31, 2019
iNCoMe:
Revenue from operations
other income
total income
eXpeNses:
manufacturing, construction and operating expenses:
Cost of raw materials, components consumed
excise duty
Construction materials consumed
Purchase of stock-in-trade
stores, spares and tools consumed
sub-contracting charges
Changes in inventories of finished goods, work-in-progress
and stock-in-trade
other manufacturing, construction and operating expenses
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 (net)
profit before tax
tax expense:
Current tax
deferred tax (net)
Note
34
35
36
37
38
39
42
2018-19
2017-18
v crore
v crore
v crore
v crore
141007.09
1851.53
142858.62
119862.10
1341.93
121204.03
17002.51
-
31059.78
1800.15
2858.57
26346.70
(867.67)
13695.42
7385.63
15245.37
178.94
24056.23
1574.64
2378.50
24639.02
(1315.23)
10540.63
6019.74
99281.09
18100.58
7302.27
1806.04
2084.00
128573.98
1.53
128572.45
14286.17
294.75
14580.92
83317.84
15270.79
7637.18
1538.52
1928.73
109693.06
5.19
109687.87
11516.16
123.00
11639.16
3198.87
8440.29
(435.86)
8004.43
–
50(a)
50(a)
4693.33
(349.99)
3732.27
(533.40)
profit after tax
share in profit/(loss) of joint ventures/associates (net)
profit for the year
other comprehensive income
A. items that will not be reclassified to profit or loss:
equity instruments through other comprehensive income
income tax on equity instruments through other comprehensive income
55(f)
Gain/(loss) on remeasurements of the net defined benefit plans
income tax (expenses)/income 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 (expenses)/income on debt instruments through other
comprehensive income
Foreign currency translation reserve
income tax (expenses)/income on foreign currency translation reserve
24.22
–
(30.17)
10.98
(63.01)
7.61
(17.23)
(3.25)
Carried forward - other comprehensive income
432
4343.34
10237.58
(21.00)
10216.58
24.22
–
–
34.84
(5.47)
(19.19)
29.37
(45.48)
(2.05)
97.61
0.49
(47.53)
98.10
79.94
(55.40)
(20.48)
(70.85)
Consolidated statement of profit and Loss for the year ended March 31, 2019 (contd.)
2018-19
Note
v crore
v crore
(70.85)
2017-18
v crore
v crore
79.94
Brought forward - other comprehensive income
effective portion of gains/(losses) on hedging instruments in a
cash flow hedge
income tax (expenses)/income on effective portion of gains and
losses on hedging instruments in a cash flow hedge
Cost of hedging reserve
income tax (expenses)/income 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 69
(283.06)
106.69
26.65
(9.31)
91.06
(8.38)
1.16
(0.52)
82.68
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
(176.37)
17.34
(229.88)
9986.70
8905.13
1311.45
10216.58
(273.99)
44.11
(229.88)
8631.14
1355.56
9986.70
63.51
63.40
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
sanJiV V. PilGaonKaR
Partner
Membership No. 39826
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. m. CHitale
(din 00101004)
sUnita sHaRma
(din 02949529)
mumbai, may 10, 2019
n. HaRiHaRan
Company secretary
m. no. a3471
ViKRam sinGH meHta
(din 00041197)
sanJeeV aGa
(DIN 00022065)
n. KUmaR
(din 00007848)
directors
433
CoNsoLidAted stAteMeNt oF CHanGes in eqUitY annUal RePoRt 2018-19
Consolidated statement of Changes in equity for the year ended March 31, 2019
A. equity share capital
Particulars
2018-19
2017-18
number of
shares
v crore
number of
shares
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
1,40,13,69,456
13,59,929
–
280.27
0.28
–
93,29,65,803
16,38,898
46,67,64,755
v crore
186.59
0.33
93.35
issued, subscribed and fully paid up equity shares outstanding at the end
of the year
1,40,27,29,385
280.55
1,40,13,69,456
280.27
B. other equity
Particulars
Share
application
money
pending
allotment
Equity
component
of Foreign
currency
convertible
bonds
Reserves and surplus
Securities
premium
Capital
reserve
Capital
Redemp-
tion
Reserve
Employee
share
options
(net)
Statutory
Reserves
Retained
Earnings
v crore
Total
Non–
controlling
interests
Items of other comprehensive income Total Other
Equity
Hedging
reserve
Foreign
currency
translation
reserve
Debt
instruments
through
Other
Comprehen-
sive Income
Balance as at 31-3-2017
Change in accounting policy
[Refer Note 65]
Restated balance as at
1-4-2017
Profit for the year (a)
Other comprehensive
income (b)
Total comprehensive
income for the year (a+b)
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 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 interests
Increase in non-controlling
interests due to dilution/
divestment/acquisition
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3.56
–
–
153.20
280.28
– 8318.85
303.25
2742.30
37335.32
478.24
347.52
70.97 50029.93
3563.60 53593.53
–
–
–
–
–
–
(753.49)
–
–
–
(753.49)
(423.57) (1177.06)
153.20
–
280.28
–
– 8318.85
–
–
303.25
–
2742.30
–
36581.83
7369.86
478.24
–
347.52
–
70.97 49276.44
7369.86
–
3140.03 52416.47
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
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2.16
–
–
–
–
–
–
–
–
–
–
–
–
–
137.63
–
–
–
–
(0.13)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
42.00
–
0.02
–
(21.30)
31.61
610.61
–
(631.33)
–
–
–
–
–
–
–
(93.35)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1960.76)
–
(441.05)
–
–
–
–
113.83
21.38
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.28)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
137.63
(0.28)
(0.13)
2.16
–
31.61
–
–
–
–
137.63
(0.28)
(0.13)
2.16
–
5.57
–
37.18
–
(93.35)
– (1960.76)
–
(93.35)
(151.20) (2111.96)
–
(441.05)
–
(441.05)
–
–
3.56
–
3.56
113.83
(113.83)
–
–
21.38 1685.36 1706.74
Balance as at 31-3-2018
3.56
153.20 282.44
42.00 8363.02
313.56
3352.91 41077.32
572.67
437.77
24.78 54623.23
5201.43 59824.66
434
Consolidated statement of Changes in equity for the year ended March 31, 2019 (contd.)
Particulars
Share
application
money
pending
allotment
Equity
component
of Foreign
currency
convertible
bonds
Reserves and surplus
Securities
premium
Capital
reserve
Capital
Redemp-
tion
Reserve
Employee
share
options
(net)
Statutory
Reserves
Retained
Earnings
v crore
Total
Non–
controlling
interests
Items of other comprehensive income Total Other
Equity
Hedging
reserve
Foreign
currency
translation
reserve
Debt
instruments
through
Other
Comprehen-
sive Income
3.56
153.20 282.44
42.00 8363.02
313.56
3352.91 41077.32
572.67
437.77
24.78 54623.23
5201.43 59824.66
–
–
–
–
–
–
–
(1237.65)
–
–
– (1237.65)
(2.73) (1240.38)
3.56
–
153.20 282.44
–
–
42.00 8363.02
–
–
313.56
–
3352.91 39839.67
8905.13
–
572.67
–
437.77
–
24.78 53385.58
8905.13
–
5198.70 58584.28
1311.45 10216.58
Balance as at 31-3-2018
Change in accounting policy
[Refer Note 1(i) and 44(h)]
Restated balance as at
1-4-2018
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
Transfer from/(to) retained
earnings during the year
Employee share options (net)
Dividend paid for the previous
year
Additional tax on dividend
paid for the previous year
Net gain/loss on transactions
with non-controlling interests
Increase in non-controlling
interests due to dilution/
divestment/acquisition
Balance as at 31-3-2019
–
–
(3.56)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
108.97
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(12.19)
35.68
498.77
–
(486.58)
–
–
–
–
–
–
(2243.18)
–
(427.02)
–
2634.66
–
(27.65)
5.50
(31.94)
(192.40)
(55.15)
(273.99)
44.11
(229.88)
8910.63
(31.94)
(192.40)
(55.15)
8631.14
1355.56
9986.70
–
–
–
–
–
–
–
–
–
(0.37)
–
–
–
–
–
–
–
–
–
–
105.41
6.50
111.91
(0.37)
–
(0.37)
–
35.68
–
117.43
–
153.11
– (2243.18)
(199.53) (2442.71)
–
(427.02)
(50.01)
(477.03)
–
2634.66 (2634.66)
–
–
(27.65)
3032.12
3004.47
153.20 282.44
42.00 8471.99
337.05
3851.68 48200.53
540.73
245.00
(30.37) 62094.25
6826.11 68920.36
in terms of our report attached
For deloitte HasKins & sells llP
Chartered accountants
Firm's Registration No.117366W/W-100018
by the hand of
sanJiV V. PilGaonKaR
Partner
Membership No. 39826
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. m. CHitale
(din 00101004)
sUnita sHaRma
(din 02949529)
mumbai, may 10, 2019
n. HaRiHaRan
Company secretary
m. no. a3471
ViKRam sinGH meHta
(din 00041197)
sanJeeV aGa
(DIN 00022065)
n. KUmaR
(din 00007848)
directors
435
CoNsoLidAted stAteMeNt oF CasH FloWs annUal RePoRt 2018-19
Consolidated statement of Cash Flows for the year ended March 31, 2019
A. Cash flow from operating activities:
profit before tax (excluding non-controlling interests and exceptional items)
adjustments for :
dividend income
depreciation, amortisation, impairment and obsolescence
exchange difference on items grouped under financing/investing activities
effect of exchange rate changes on cash and cash equivalents
expenses on buyback of shares
Finance costs
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 a subsidiary classified under developmental projects segment
(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 and other payables
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:
expenditure on acquisition 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 cash and other bank balances not available for immediate use
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 joint ventures/associate
dividend received from other investments
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
436
2018-19
v crore
2017-18
v crore
14286.17
11516.16
(236.91)
2084.00
(101.14)
49.59
17.38
1806.04
(900.58)
(591.37)
(65.33)
(415.61)
21.81
157.97
–
16112.02
(9395.14)
330.68
6672.34
13719.90
(13855.16)
(135.26)
(4581.59)
(4716.85)
(4282.61)
807.98
(1862.54)
653.36
(3032.80)
(3988.12)
(93.62)
43.62
730.61
19.44
236.91
(21.81)
67.00
(309.86)
33.05
–
(10999.39)
(2748.08)
1928.73
(31.03)
(53.53)
–
1538.52
(665.67)
(686.23)
2217.72
–
125.74
111.39
(5.58)
13248.14
(14501.11)
(642.38)
11727.02
9831.67
(16459.25)
(6627.58)
(3403.44)
(10031.02)
(2877.17)
862.13
(1164.82)
428.59
2551.37
484.65
(621.93)
229.89
529.30
0.66
2748.08
(125.74)
1048.29
(213.77)
50.47
(15.50)
3914.50
Consolidated statement of Cash Flows for the year ended March 31, 2019 (contd.)
C. Cash flow from financing activities:
Proceeds from issue of share capital (including share application money)[net]
Proceeds from non-current borrowings [Note 62]
Repayments of non-current borrowings [Note 62]
Proceeds from other borrowings (net) [Note 62]
Payment (to)/from non-controlling interests (net)- including sale proceeds on divestment of
part stake in subsidiary companies
settlement of derivative contracts related to borrowings
dividend 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 the end of the year
2018-19
v crore
11.31
24181.62
(14081.42)
7765.14
2884.85
308.95
(2243.18)
(403.93)
(2982.36)
15440.98
(275.26)
6798.69
6523.43
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
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 bank balances 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 bank balances 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.
as at
31-3-2019
v crore
6509.49
5216.75
290.07
12016.31
13.94
5216.75
290.07
6523.43
as at
31-3-2018
v crore
6834.34
1198.39
320.31
8353.04
(35.65)
1198.39
320.31
6798.69
in terms of our report attached
For deloitte HasKins & sells llP
Chartered accountants
Firm's Registration No.117366W/W-100018
by the hand of
sanJiV V. PilGaonKaR
Partner
Membership No. 39826
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. m. CHitale
(din 00101004)
sUnita sHaRma
(din 02949529)
mumbai, may 10, 2019
n. HaRiHaRan
Company secretary
m. no. a3471
ViKRam sinGH meHta
(din 00041197)
sanJeeV aGa
(DIN 00022065)
n. KUmaR
(din 00007848)
directors
437
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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 the 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 10, 2019.
(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:
(i)
(ii)
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
(iii) 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.
438
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 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 interests represent that part of the total comprehensive income and net assets of subsidiaries attributable to
interest which is 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 ventures 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 ventures. 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 ventures and associates are incorporated in the consolidated financial statements using
equity method of accounting after making necessary adjustments to achieve uniformity in application of accounting policies,
wherever applicable.
an investment in joint venture or associate is initially recognised at cost and adjusted thereafter to recognise the Group’s share of
profit or loss and other comprehensive income of the joint venture or associate. Gain or loss in respect of changes in other equity
of joint ventures or associates resulting 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 and associate, is recognised as goodwill and is included in the carrying value of the
investment in the joint venture and associate. the excess of fair value of assets and liabilities over the investment is recognised
directly in equity as capital reserve. the unrealised profits/losses on transactions with joint ventures and associates 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 a joint venture or associate exceeds the Group’s interest in that joint venture or associate
(which includes any long term interests that, in substance, form part of the Group’s net investment in the joint venture or
associate), the Group discontinues recognising its share of further losses. additional losses are recognised only to the extent that
the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture or associate.
(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.
439
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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
the Group has adopted ind as 115 “Revenue from Contracts with Customers” effective april 1, 2018. ind as 115 supersedes
ind as 11 “Construction Contracts” and ind as 18 “Revenue”. the Group has applied ind as 115 using the modified retrospective
method and the cumulative impact of transition to ind as 115 has been adjusted against the Retained earnings as at april 1, 2018.
accordingly, the figures of the previous year are not restated under ind as 115.
the Group recognises revenue from contracts with customers when it satisfies a performance obligation by transferring promised
goods or service to a customer. the revenue is recognised to the extent of transaction price allocated to the performance
obligation satisfied. Performance obligation is satisfied over time when the transfer of control of good or service to a customer
is done over time and in other cases, performance obligation is satisfied at a point in time. For performance obligation satisfied
over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation.
the progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the
performance obligation.
transaction price is the amount of consideration to which the Group expects it to be entitled in exchange for transferring goods
or services to a customer excluding amounts collected on behalf of a third party. Variable consideration is estimated using the
expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are
as per business practice and the financing component, if significant, is separated from the transaction price and accounted as
interest income.
Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in profit & loss
immediately in the period in which such costs are incurred. incremental costs of obtaining a contract, if any, and costs incurred to
fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a
proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.
significant judgments are used in:
a. determining the revenue to be recognised in case of performance obligation satisfied over a period of time. Revenue
recognition is done by measuring the progress towards complete satisfaction of performance obligation. the progress is
440
Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance
obligation.
b. determining the estimated losses, which are recognised in the period in which such losses become probable based on the
expected total contract cost as at the reporting date.
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. Revenue from sale of goods including contracts for supply/commissioning of complex plant and equipment is recognised as
follows:
Revenue from sale of manufactured and traded goods is recognised when the control of the same is transferred to the
customer and it is probable that the Group will collect the consideration to which it is entitled for the exchanged goods.
Performance obligations in respect of contracts for sale of manufactured and traded goods is considered as satisfied at a
point in time when the control of the same is transferred to the customer and where there is an alternative use of the asset
or the company does not have either explicit or implicit right of payment for performance completed till date. in case where
there is no alternative use of the asset and the company has either explicit or implicit right of payment considering legal
precedents, performance obligation is considered as satisfied over a period of time and revenue is recognised over time.
B. Revenue from construction/project related activity is recognised as follows:
•
•
Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the
extent performance obligations have been satisfied. the amount of transaction price allocated to the performance
obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the
customer.
Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and
control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents
the cost of work performed on the contract plus proportionate margin, using the percentage of completion method.
Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.
impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the
extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the company expects
to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining
performance obligations). in addition, the Group recognises impairment loss (termed as provision for expected credit loss on
contract assets in the financial statements) on account of credit risk in respect of a contract asset using expected credit loss
model on similar basis as applicable to trade receivables.
For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the
case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as “due from customers”. For
contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus
recognised losses, as the case may be), the surplus is shown as contract liability and termed as “due to customers”. amounts
received before the related work is performed are disclosed in the Balance sheet as contract liability and termed as “advances
from customer”. the amounts billed on customer for work performed and are unconditionally due for payment i.e only
passage of time is required before payment falls due, are disclosed in the Balance sheet as trade receivables. the amount of
retention money held by the customers pending completion of performance milestone is disclosed as part of contract asset
and is reclassified as trade receivables when it becomes due for payment.
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.
441
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
d.
Revenue from property development activities :
(i) effective april 1, 2018, Revenue from property development activities is recognised when performance obligation
is satisfied, customer obtains control of the property transferred and a reasonable expectation of collection of the
sale consideration from the customer exists. the costs incurred on property development activities are carried as
“inventories” till such time the aforesaid conditions are fulfilled.
(ii) For the periods ended on or before march 31, 2018, the revenue from the 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
e.
in the case of the developmental project business and the realty business, revenue includes profit on sale of investment
property or sale of stake in the subsidiary and/or joint venture companies as the sale/divestments are inherent in the business
model.
F.
Rendering of services
Revenue from rendering of services is recognised over time as and when the customer receives the benefit of the company’s
performance and the Company has an enforceable right to payment for services transferred.
Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.
in respect of information technology (it) business and technology services business, revenue from contracts awarded on time
and material basis is recognised over a period of time when relevant services are rendered and related costs are incurred.
Revenue from fixed price contracts is recognised over a period of time using the proportionate completion method.
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.
G.
income from interest-bearing loans is recognised on accrual basis over the life of the loans based on the effective yield.
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.
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.
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Note [1] (contd.)
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 (upto the date of sale) 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 represents income earned from the activities incidental to the business and is recognised when the
performance obligation is satisfied and the right to receive the income is established as per the terms of the contract.
(j) 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. Government grants, which are revenue in nature and are towards compensation for the qualifying costs, incurred by the
Group, are recognised as other 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 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.
d. other items of income are accounted as and when the right to receive such income arises and it is probable that the
economic benefits will flow to the group and the amount of income can be measured reliably.
(k) 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.
(l) 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
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Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
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.
(m) 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.
(n)
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.
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
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Note [1] (contd.)
F.
the Group has ability to reliably measure the expenditure attributable to the intangible asset during its development.
development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.
intangible assets not ready for the intended use on the date of the Balance sheet are disclosed as “intangible assets under
development”.
intangible assets are amortised on straight line basis over the estimated useful life. the method of amortisation and useful
life are reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a
prospective basis. the estimated useful life for major categories of the intangible assets are as follows:
(i)
specialised software: over a period of three to ten years;
(ii)
technical know-how: over a period of three to seven years;
(iii) development costs for new products: over a period of five years;
(iv) customer contracts and relationships: over a period of the contract which generally is over four to ten years;
(v)
intangible assets with indefinite useful life that are acquired separately are carried at cost less accumulated impairment
losses;
(vi)
fare collection rights obtained in consideration for rendering construction services represent the right to collect fare
during the concession period in respect of Build-operate-transfer (Bot) projects undertaken by the Group. Fare
collection rights are capitalised as intangible asset upon completion of the project at the cumulative construction
costs including related margins. till the completion of the project, the same is recognised as intangible assets under
development. Fare collection rights are amortised using the straight line method over the period of concession; and
(vii) exploration and evaluation expenditure incurred for potential mineral reserves is recognised and reported as part of
“intangible assets under development” 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.
(o)
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
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Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
generating unit) is reduced to its recoverable amount. For this purpose, the impairment loss recognised in respect of a cash
generating unit is allocated first to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to
reduce the carrying amount of the other assets of the cash generating unit on a pro-rata basis.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit), except for allocated
goodwill, is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss is recognised for the asset (or cash generating unit) in
prior years. a reversal of an impairment loss (other than impairment loss allocated to goodwill) is recognised immediately in the
statement of Profit and loss.
(p) employee benefits
(i)
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.
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.
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Note [1] (contd.)
(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.
(q) 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.
(ii) operating leases:
the leases which are not classified as finance lease are operating leases.
a.
lease rentals on assets taken 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)
(r) Financial instruments
Financial assets and/or financial liabilities are recognised when the Group becomes party to a contract embodying the related
financial instruments. all financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction
values and where such values are different from 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
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Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
•
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
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
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Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
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.
(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 premium element and the spot element of a forward contract is separated
and only the change in the value of the spot element of the forward contract is designated as the hedging instrument.
similarly, wherever applicable, the foreign currency basis spread is separated from the financial instrument and is
excluded from the designation of that financial instrument as the hedging instrument in case of time period related
hedges. the changes in the fair value of the premium element of the forward contract or the foreign currency basis
spread of the financial instrument is accumulated in a separate component of equity as ‘cost of hedging’. the changes
in the fair value of such premium element or foreign currency basis spread are reclassified to profit or loss as a
reclassification adjustment on a straight line basis over the period of the forward contract or the financial instrument.
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
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Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
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.
(s)
inventories
inventories are valued after providing for obsolescence, as under:
(i)
Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net
realisable value. However, these items are considered to be realisable at cost if the finished products in which they will be
used, are expected to be sold at or above cost.
(ii) manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. in
some cases, manufacturing work-in-progress are valued at lower of specifically identifiable cost or net realisable value. in the
case of qualifying assets, cost also includes applicable borrowing costs vide policy relating to borrowing costs.
(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net
realisable value. Cost includes related overheads and excise duty paid/payable on such goods.
(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically
identifiable cost or net realisable value.
assessment of net realisable value is made 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.
(t) 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 bank balances.
(u) securities premium
(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.
(v) Borrowing Costs
Borrowing costs include finance costs 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 finance costs. in cases where hedging instruments are acquired for protection against exchange rate risk related to
borrowings and are accounted as hedging a time-period related hedge item, the borrowing costs also include the amortisation
450
Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
of premium element of the forward contract and foreign currency basis spread as applicable, over the period of the hedging
instrument.
Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time
the asset is ready for its intended use or sale. a qualifying asset is an asset that necessarily requires a substantial period of time
to get ready for its intended use or sale. all other borrowing costs are recognised in profit or loss in the period in which they are
incurred.
(w) share-based payment arrangements
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. the share based payment equivalent to the fair value as on the date
of grant of employee stock options granted to key managerial personnel is disclosed as a related party transaction in the year of
grant.
(x) 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 finance costs on those
foreign currency borrowings;
B.
exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
C. exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is
neither planned nor likely to occur (therefore forming part of the net investment in foreign operation), which are
recognised initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the
monetary items.
(iii) exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or receipt
of advance consideration is used for initial recognition of related asset, expense or income.
(iv) 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 interests is reflected as part of non-
controlling interests.
451
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
(y) 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 finance costs 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 finance costs 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 finance costs 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.
(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(w) 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.
(z) 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 applicable tax laws, 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.
452
Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
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.
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 realized. Deferred tax assets in respect of
unutilised tax credits which mainly relate to minimum alternate tax and dividend distribution tax paid or payable by the subsidiary
companies are recognized, to the extent it is probable of such unutilised tax credits will get realized, in the period in which such
determination is made.
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.
(aa) 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.
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.
453
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [1] (contd.)
(ab) 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.
(ac) 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.
(ad) 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.
(ae) 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.
454
Notes forming part of the Consolidated Financial statements (contd.)
Note [2]
property, plant and equipment and Capital work-in-progress
Cost
As at
1-4-2018
Pursuant to
acquisition
of
subsidiaries
Additions
Foreign
currency
fluctuation
Depreciation
Impairment
Book value
v crore
Deductions
As at
31-3-2019
Up to
31-3-2018
Pursuant to
acquisition
of
subsidiaries
For the year
Foreign
currency
fluctuation
Deductions
Up to
31-3-2019
Up to
31-3-2018
Up to
31-3-2019
As at
31-3-2019
As at
31-03-2018
573.31
451.79
1025.10
3664.27
636.35
1.12
637.47
321.35
1.02
322.37
381.62
11.81
393.43
383.11
30.68
413.79
244.45
36.73
–
–
–
0.82
0.01
–
0.01
2.05
–
2.05
0.45
–
0.45
0.07
–
0.07
–
–
–
–
–
352.93
0.05
352.98
168.69
780.33
41.32
821.65
239.94
–
239.94
60.45
–
60.45
30.97
–
30.97
77.75
–
77.75
–
92.79
0.26
0.58
0.84
20.44
51.44
–
51.44
0.79
–
0.79
2.04
–
2.04
3.88
–
3.88
6.86
–
6.86
–
–
7.07
0.24
7.31
15.17
919.43
452.18
1371.61
3839.05
–
9.63
9.63
488.95
200.24
24.33
224.57
7851.31
184.37
8035.68
2729.71
14.76
2744.47
30.60
0.84
31.44
9.17
1.00
10.17
10.78
3.92
14.70
43.87
17.03
60.90
848.53
0.28
848.81
375.12
0.02
375.14
405.76
7.89
413.65
423.85
13.65
437.50
364.12
1.10
365.22
180.47
0.87
181.34
164.06
5.57
169.63
175.03
13.40
188.43
–
–
244.45
129.52
16.38
14.21
–
–
–
0.50
0.01
–
0.01
1.14
–
1.14
0.09
–
0.09
0.02
–
0.02
–
–
–
–
–
–
17.98
17.98
147.46
925.04
15.67
940.71
146.08
0.10
146.18
65.11
0.05
65.16
61.12
1.51
62.63
57.35
3.13
60.48
13.67
5.75
Class of assets
Land
Freehold
Taken on lease
Sub total - Land
Buildings
Plant & equipment
Owned
Leased out
7219.77
167.38
Sub total - Plant & equipment 7387.15
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
Aircraft
Ships
Dredged channel and
Breakwater structures
Leasehold Improvements
Sub total - Other assets
Total
Previous year
Add: Capital work-in-progress
–
0.15
0.15
7.36
–
0.07
0.07
9.51
–
27.69
27.69
634.76
–
–
–
189.31
–
–
–
195.54
919.43
424.49
1343.92
3008.75
573.31
442.16
1015.47
2986.01
25.80
–
25.80
118.90
15.43
134.33
3561.66
15.00
3576.66
28.36
–
28.36
28.95
–
28.95
4260.70
169.37
4430.07
4461.70
152.62
4614.32
0.02
0.72
0.74
1.48
–
1.48
2.77
–
2.77
4.82
–
4.82
–
–
27.67
1.66
29.33
8.43
0.92
9.35
6.65
1.30
7.95
28.05
9.98
38.03
483.69
0.26
483.95
238.72
–
238.72
221.32
5.78
227.10
209.15
6.55
215.70
–
–
30.05
19.96
–
–
–
0.01
–
0.01
0.24
–
0.24
–
–
–
–
–
–
–
–
0.01
–
0.01
0.24
–
0.24
–
–
–
–
–
–
–
–
224.74
217.92
364.84
0.02
364.86
136.39
0.02
136.41
184.20
2.11
186.31
214.70
7.10
221.80
272.23
0.02
272.25
140.87
0.15
141.02
217.32
6.24
223.56
208.08
17.28
225.36
214.40
109.56
228.07
22.52
843.52
802.92
69.94
70.56
1197.44
1164.05
10889.56 10642.04
2483.56
2143.07
13373.12 12785.11
1011.08
114.50
1406.76
15250.34
–
–
–
3.40
2.37
15.42
110.58
1863.01
14288.11
161.76
1270.57
–
(0.03)
(0.03)
86.26
19.17
1013.45
–
129.39
0.50
0.50
1516.81
364.76 16838.25
167.56
44.56
242.71
4390.38
–
–
–
1.76
48.81
14.56
82.79
1523.39
–
(0.02)
(0.02)
43.10
5.84
0.27
6.11
234.68
210.53
58.83
319.37
5723.95
–
–
–
217.92
489.27
15250.34
2952.14
139.58
1502.55
4.56
208.45
4390.38
Notes:
(a) Carrying value of property, plant and equipment pledged as collateral for liabilities and/or commitments as at march 31, 2019
R 2073.80 crore (previous year: R 2073.45 crore).
(b) Carrying value of property, plant and equipment having restriction on title as at march 31, 2019 R 2047.41 crore (previous year:
R 2042.16 crore).
(c) depreciation for the year includes R 8.06 crore (previous year: R 4.85 crore) on account of obsolescence.
455
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [2] (contd.)
(d)
increase in impairment as on march 31, 2019 is on account of foreign currency fluctuation R 6.82 crore. Further impairment on
CWiP during the year is R 175.55 crore. impairment during the previous year was R 115.41 crore and reversal of impairment during
the previous year was R 0.49 crore.
(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, 2018 of individual assets has been reclassified, wherever necessary.
(g) 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 dredged channel and Breakwater structures
leasehold land
Buildings
Plant and equipment
Computers
office equipment
Furniture and fixtures
owned vehicles
aircraft
ships
minimum useful life
(in years)
15
5
3
3
3
3
3
18
14
50
maximum useful life
(in years)
99
61
35
7
30
12
15
18
15
50
Note [3]
investment property
Cost
Depreciation
Impairment
Book value
v crore
Class of assets
As at
1-4-2018
Additions
Foreign
currency
fluctuation
Land
Buildings
Total
31.21
581.80
1396.85 188.58
1978.65 219.79
0.62
-
0.62
Transfer
(to)/from
inventories
and owners
occupied
property
(51.84)
(106.18)
(158.02)
Deductions
As at
31-03-2019
Up to
31-03-2018
For the
period
Foreign
currency
fluctuation
8.01
553.78
104.63 1374.62
112.64 1928.40
5.33
29.62
34.95
8.14
26.64
34.78
Previous year
Add: Capital work-in-progress
188.81 1777.90
0.05
24.37
12.48 1978.65
8.87
30.43
Transfer
(to)/from
inventories
and owners
occupied
property
(0.79)
(4.38)
(5.17)
Deductions
Up to
31-3-2019
Up to
31-3-2018
Up to
31-3-2019
As at
31-3-2019
As at
31-3-2018
–
13.25
13.25
12.68
38.63
51.31
2.48
–
2.48
4.71
–
573.99
536.39
1335.99 1367.23
4.71 1872.38 1941.22
0.98
5.33
34.95
2.48
2382.18 2404.64
4254.56 4345.86
–
–
–
–
Notes:
(a) Carrying value of investment property pledged as collateral for liabilities and/or commitments and having restriction on title as at
march 31, 2019 R 0.16 crore (previous year: R 0.16 crore)
(b) Useful life of building included in investment property: 20 to 60 years
(c) amount recognised in the statement of Profit and loss for investment property:
sr. no.
1
2
Rental income derived from investment property
Particulars
direct operating expenses arising from investment property that generated rental
income
2018-19
148.71
7.37
v crore
2017-18
73.31
3.03
(d) Fair value of investment property: R 6456.76 crore as at March 31, 2019 (R 6448.68 crore as at March 31, 2018).
456
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
valuers on a case to case basis. Fair value of property that are evaluated by independent valuers amounted to R 2693.38 crore.
(previous year: R 2510.89 crore). Valuation is based on government rates, market research, marked trend and comparable values as
considered appropriate.
impairment during the year R 2.23 crore includes R 0.15 crore on account of foreign currency fluctuation on land and R 99.33 crore
on CWiP (previous year: R 2.48 crore on land and R 133.49 crore on CWiP)
(f)
Note [4]
Goodwill
Class of assets
As at
1-4-2018
Additions*
Cost
Foreign
currency
fluctuation
Deductions
As at
31-3-2019
Up to
31-3-2018
Goodwill on
consolidation
Previous year
1609.88
259.67
5.46
–
1875.01
1446.76
245.24
42.67
124.79 1609.88
–
–
# Impairment upto 31-03-2019 R 48.10 crore, during the year R nil * Refer Note 51
Pursuant to
acquisition
of
subsidiaries
–
–
Note [5]
other intangible assets and intangible assets under development
Amortisation
For the
period
Foreign
currency
fluctuation
Impairment
Book value
v crore
Deductions
Up to
31-3-2019
As at
31-3-2019
As at
31-3-2019
As at
31-3-2018
–
–
–
–
–
–
–
48.10 #
1826.91 1561.78
–
48.10
1561.78
As at
1-4-2018
1072.92
120.02
6.25
Pursuant to
acquisition of
subsidiaries
0.06
–
3.86
Cost
Additions
126.65
7.48
–
Foreign
currency
fluctuation
6.54
–
–
Deductions
As at
31-3-2019
Up to
31-3-2018
1.14
6.70
–
1205.03
120.80
10.11
862.10
49.22
6.24
Pursuant to
acquisition of
subsidiaries
0.01
–
–
Amortisation
For the
year
112.86
14.80
3.86
Foreign
currency
fluctuation
4.25
–
–
v crore
Book value
Deductions
Up to
31-3-2019
As at
31-3-2019
As at
31-3-2018
1.05
6.70
–
978.17
57.32
10.10
226.86
63.48
0.01
210.82
70.80
0.01
223.39
–
77.07
(0.32)
7.60
292.54
108.52
–
42.55
(0.07)
7.28
143.72
148.82
114.87
Class of assets
Specialised Software
Technical knowhow
Trade Names
New Product Design
and Development
Customer contracts
and relationship
207.85
Fare Collection Rights 1548.23
3178.66
Total
53.81
–
57.73
0.32
2175.17
2386.69
Previous year
Add: Intangible assets under development
1349.39
78.04
1732.76
6.71
–
12.93
25.36
–
–
15.44
6.89
268.69
3723.40
5620.57
3178.66
112.11
9.96
1148.15
917.17
–
–
0.01
0.03
45.47
37.68
257.22
220.86
3.13
–
7.31
16.07
–
–
15.03
5.98
160.71
47.64
1397.66
1148.15
95.74
107.98
3675.76 1538.27
4222.91 2030.51
11435.93 11300.36
15658.84 13330.87
addition to other intangible assets include internally developed intangible assets: R 88.02 crore (previous year: R 74.43 crore)
Notes:
(a) Borrowing cost capitalised in accordance with ind as 23 “Borrowing Costs” is as follows:
investment property
Capital work-in-progress (PPe)
intangible assets under development
Class of assets
(b) The average capitalization rate for borrowing cost is 9.70%. (previous year: 10.06%)
2018-19
13.89
134.34
942.07
1090.30
v crore
2017-18
51.98
102.45
914.93
1069.36
457
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [6]
Non-current Assets : Financial Assets - other investments
Particulars
equity instruments
Preference shares
Government and trust securities
debentures and bonds
mutual funds
security receipt
Units of fund
Note [7]
Non-current Assets : Financial Assets - Loans
Particulars
security deposits
Considered good - unsecured
less: allowance for expected credit loss
loans and advances to related parties
Considered good - unsecured
others loans
Considered good - secured
Considered good - unsecured
less: allowance for expected credit loss
Credit impaired
less: allowance for expected credit loss
as at 31-3-2019
as at 31-3-2018
v crore
574.21
312.30
1832.55
813.20
19.69
791.07
188.79
4531.81
v crore
667.19
285.72
–
1248.10
18.94
1016.88
128.64
3365.47
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
244.12
28.30
234.55
26.16
215.82
1645.35
0.08
1.07
–
1862.32
114.87
113.80
0.36
0.36
208.39
1584.23
0.23
1.00
–
1793.85
1.00
–
0.34
0.34
458
Notes forming part of the Consolidated Financial statements (contd.)
Note [8]
Non-current Assets : Financial Assets - Loans towards financing activities
Particulars
Considered good - secured
less: allowance for expected credit loss
Considered good - unsecured
less: allowance for expected credit loss
Having significant increase in credit risk
less: allowance for expected credit loss
Credit impaired
less: allowance for expected credit loss
Note [9]
Non-current Assets : Financial Assets- others
Particulars
Cash and bank balances not available for immediate use
Fixed deposits with banks (maturity more than 12 months)
Forward contract receivables
embedded derivative receivables
other receivables
Note [10]
other non-current Assets
Capital advances:
secured
Unsecured
Particulars
advance recoverable other than in cash
Current tax receivable (net)
as at 31-3-2019
as at 31-3-2018
v crore
38843.70
155.71
14988.60
139.05
2029.89
178.47
6270.60
3870.68
v crore
v crore
36137.14
127.37
v crore
38687.99
36009.77
13606.72
38.33
14849.55
13568.39
2336.04
168.78
1851.42
2167.26
7613.56
4899.53
2399.92
57788.88
2714.03
54459.45
as at 31-3-2019
as at 31-3-2018
v crore
290.07
201.04
432.32
6.15
214.47
1144.05
v crore
320.31
–
238.38
5.06
50.57
614.32
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
5.38
165.72
21.48
53.83
171.10
1986.60
3490.92
5648.62
75.31
1903.98
2774.49
4753.78
459
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [11]
Current Assets: inventories
Particulars
Raw materials [include goods-in-transit R 53.34 crore
(previous year: R 18.52 crore)]
Components [include goods-in-transit R 31.55 crore
(previous year: R 23.34 crore)]
Construction materials [include goods-in-transit R 114.55 crore
(previous year: R 67.32 crore)]
manufacturing work-in-progress
Finished goods
stock-in-trade (in respect of goods acquired for trading) [include goods-in-
transit R 38.79 crore (previous year: R 26.31 crore)]
stores and spares [including goods-in-transit R 2.25 crore
(previous year: R 3.77 crore)]
loose tools [include goods-in-transit R 0.05 crore (previous year: R nil)]
Property development projects (including land)
as at 31-3-2019
as at 31-3-2018
v crore
722.75
529.55
221.57
651.70
301.74
386.27
295.49
14.66
3290.20
6413.93
v crore
529.15
474.91
151.41
630.27
245.25
285.67
209.55
14.12
2307.47
4847.80
note: during the year R 468.74 crore (previous year: R 161.42 crore) was recognised as expense towards write-down of inventories.
Note [12]
Current Assets: Financial Assets - investments
Particulars
equity instruments
Government and trust securities
debentures and bonds
mutual funds
Preference shares
Note [13]
Current Assets: Financial Assets - trade receivables
Particulars
Considered good-secured
Considered good-unsecured
less: allowance for expected credit loss
Credit impaired
less: allowance for expected credit loss
460
as at 31-3-2019
as at 31-3-2018
v crore
8.28
962.66
4192.93
8781.62
0.68
13946.17
v crore
176.80
1206.48
3712.59
4366.71
1.67
9464.25
as at 31-3-2019
as at 31-3-2018
v crore
38768.94
1989.56
1201.07
1011.27
v crore
68.99
v crore
34933.21
2065.03
v crore
54.97
36779.38
32868.18
1028.90
835.07
189.80
37038.17
193.83
33116.98
Notes forming part of the Consolidated Financial statements (contd.)
Note [14]
Current Assets : Financial Assets - Cash and cash equivalents
Particulars
Balance with banks
Cheques and drafts on hand
Cash on hand
Fixed deposits with banks (maturity less than 3 months)
Note [15]
Current Assets : Financial Assets - 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*
earmarked balances with banks-others
margin money deposits with banks
Cash and bank balances not available for immediate use
* Real Estate (Regulation and Development) Act, 2016
Note [16]
Current Assets: Financial Assets - Loans
Particulars
security deposits
Considered good - unsecured
less: allowance for expected credit loss
Credit impaired
less: allowance for expected credit loss
loans and advances to related parties
Considered good - unsecured
others loans
Considered good - secured
Considered good - unsecured
as at 31-3-2019
as at 31-3-2018
v crore
4261.34
624.49
37.44
1586.22
6509.49
v crore
3710.42
838.52
64.02
2221.38
6834.34
as at 31-3-2019
as at 31-3-2018
v crore
845.70
85.34
0.41
1.10
149.08
4135.12
5216.75
v crore
900.03
64.09
7.92
–
31.46
194.89
1198.39
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
508.60
0.46
5.07
5.07
479.23
0.46
508.14
478.77
5.89
5.89
–
66.46
0.15
51.94
626.69
–
18.20
0.33
62.42
559.72
461
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [17]
Current Assets: Financial Assets - Loans towards financing activities
as at 31-3-2019
as at 31-3-2018
v crore
34028.69
52.19
130.77
8108.95
146.77
801.03
78.12
v crore
v crore
v crore
24227.43
42.73
49.90
33845.73
24134.80
7228.94
70.08
7962.18
7158.86
757.45
46.00
722.91
42530.82
711.45
32005.11
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
11.56
61.11
6.27
64.69
72.67
974.20
919.66
39.75
70.96
3428.27
643.92
51.26
27.11
617.30
644.41
644.41
27.11
175.79
202.90
202.90
–
2006.28
–
4194.41
Particulars
Considered good - secured
less: allowance for expected credit loss
less: net fair value changes
Considered good - unsecured
less: allowance for expected credit loss
Having significant increase in credit risk
less: allowance for expected credit loss
Note [18]
Current assets: Financial Assets - others
Particulars
advances to related parties:
associate companies
Joint venture companies
advances recoverable in cash
Forward contract receivables
embedded derivative receivables
doubtful advances:
deferred credit sale of ships
other loan and advances
less: allowance for expected credit loss
462
Notes forming part of the Consolidated Financial statements (contd.)
Note [19]
other current assets
Contract assets [Refer note 44(d)]
Particulars
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
due from customers (construction and project related activity)
Retention money including unbilled revenue
31847.85
15172.45
28772.62
13991.12
Balance with customs, port trust, etc.
advance recoverable other than in cash
Government grant receivable
other loans and advances
less: allowance for expected credit loss
others
Note [20]
equity share capital
7.00
7.00
47020.30
16.88
5276.50
123.51
–
250.84
52688.03
6.99
6.99
42763.74
61.44
4789.58
127.80
–
154.46
47897.02
(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
as at 31-3-2019
as at 31-3-2018
number of
shares
v crore
number of
shares
v crore
1,62,50,00,000
325.00
1,62,50,00,000
325.00
1,40,27,29,385
280.55
1,40,13,69,456
280.27
(b) reconciliation of the number of equity shares and share capital:
Particulars
2018-19
2017-18
number of
shares
v crore
number of
shares
issued, subscribed and fully paid up equity shares outstanding at the beginning
of the year
1,40,13,69,456
280.27
93,29,65,803
add: shares issued on exercise of employee stock options during the year
13,59,929
0.28
16,38,898
add: shares issued as bonus on July 15, 2017
–
–
46,67,64,755
v crore
186.59
0.33
93.35
issued, subscribed and fully paid up equity shares outstanding at the end of the
year
1,40,27,29,385
280.55 1,40,13,69,456
280.27
(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.
463
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [20] (contd.)
(d) shareholder holding more than 5% of equity shares:
name of the shareholder
life insurance Corporation of india
l&t employees Welfare Foundation
as at 31-3-2019
as at 31-3-2018
number of
shares
24,66,76,682
17,21,28,421
shareholding
%
17.59
12.27
number of
shares
24,63,52,777
17,21,28,421
shareholding
%
17.58
12.28
(e) shares reserved for issue under options outstanding 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 31-3-2019
as at 31-3-2018
number of
equity shares
to be issued
as fully paid
28,85,240
R crore
(at face
value)
0.58*
number of
equity shares
to be issued as
fully paid
42,65,623@
R crore
(at face
value)
0.85*
bonds (FCCB)
95,20,455
1.90**
95,20,455@
1.90**
the equity shares will be issued at a premium of R 71.99 crore (previous year: R 94.42 crore)
*
** the equity shares will be issued at a premium of R 1214.50 crore (previous year: R 1214.50 crore) on the exercise of options
by the bond holders
note 20(h)(i) 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, 2019 are 46,67,64,755 (previous period of five years ended march 31, 2018: 77,50,59,331 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, 2019 – nil (previous period of five years ended march 31, 2018: nil)
(h) stock option of the parent company
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
10
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
464
2000
2002 (A)
2002 (B)
2003 ( A)
2003(B)
2006
2006(A)
2017-18
2:00
2018-19
2.00
1-6-2000
1-6-2001
2017-18
2.00
2018-19
2.00
19-4-2002
19-4-2003
2017-18
2.00
2018-19
2.00
19-4-2002
19-4-2003
2018-19
7.80
2017-18
7.80
23-5-2003 onwards
23-5-2004 onwards
2018-19
7.80
2017-18
7.80
2018-19
267.10
2017-18
267.10
2018-19
267.10
2017-18
267.10
23-5-2003 onwards
23-5-2004 onwards
1-9-2006 onwards
1-9-2007 onwards
1-7-2007 onwards
1-7-2008 onwards
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
– 1,08,685
–
–
–
–
–
–
–
13,200
–
–
–
–
–
32,250
–
–
–
–
–
59,550
–
–
–
–
–
–
–
17,700
29,789
–
–
–
–
6,200
39,708
– 4,94,210
47,178
– 4,15,042
– 1,36,876
– 28,94,772
–
19,800
–
48,375
–
89,325
–
70,767
– 6,22,567
– 2,05,321
– 43,42,684
19,800
–
48,375
–
89,325
–
70,767
– 1,05,342
49,313
– 2,02,516 3,51,935 4,51,376
Notes forming part of the Consolidated Financial statements (contd.)
Note [20] (contd.)
Sr.
No.
11
12
13
Series reference
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
contractual life of options
(in years)
* Record date: July 14, 2017
2000
2002 (A)
2002 (B)
2003 ( A)
2003(B)
2006
2006(A)
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
–
–
–
–
–
–
–
19,800
19,800
–
–
–
–
–
–
–
–
48,375
48,375
–
–
–
–
–
–
–
–
89,325
89,325
–
–
–
–
–
–
–
25,200
71,600
– 2,34,441 1,56,962
70,767 1,73,309 4,87,892
10,750 1,30,806
70,767
– 1,62,559 3,57,086
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
4.95
4.72
–
–
–
–
–
–
– 6,39,890 5,73,580
2,805 11,25,488 9,15,424
– 27,11,931 35,49,464
– 9,76,795 15,63,209
– 17,35,136 19,86,255
Nil
4.15
3.74
iii. the number and weighted average exercise price of stock options are as follows:
2018-19
2017-18
Particulars
no. of stock
options
no. of stock
options
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
iv. Weighted average share price at the date of exercise for stock options exercised during the year is R 1272.80 (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)
223.35
–
–
–
–
–
257.28
222.40
139.58
251.52
264.28
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
42,65,623
–
–
–
–
–
6,65,090
13,59,929
6,85,544
28,85,240
9,87,545
v.
R 1106.67) per share.
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 986.95 (previous year: R 965.25) per option
vii. the fair value has been calculated using the Black-scholes option Pricing model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
Particulars
sr.
no.
(a) Weighted average risk-free interest rate
(B) Weighted average expected life of options
(C) Weighted average expected volatility
(d) Weighted average expected dividends over the life of the option
(e) Weighted average share price
(F) Weighted average exercise price
(G) method used to determine expected volatility
2018-19
2017-18
7.44%
4.09 years
25.73%
R 65.41 per option
R 1225.00 per option
R 257.28 per share
6.83%
4.17 years
27.92%
R 58.37 per option
R 1178.47 per option
R 229.73 per share
expected volatility is based on the historical
volatility of the Company’s share price applicable
to the total expected life of each option.
viii. the balance in share options (net) account as at march 31, 2019 is R 106.91 crore (previous year: R 108.59 crore), including
R 52.29 crore (previous year: R 76.12 crore) for which the options have been vested to employees as at march 31, 2019.
(i) during the year ended march 31, 2019, the Company paid the final dividend of R 16 per equity share for the year ended
march 31, 2018.
465
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [20] (contd.)
(j) on may 10, 2019 the Board of directors has recommended the final dividend of R 18.00 per equity share for the year ended
march 31, 2019 subject to approval of shareholders. on approval, the total dividend payment based on number of shares
outstanding as on march 31, 2019 is expected to be R 2524.91 crore and the payment of dividend distribution tax is expected to
be R 484.03 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 is 1.81:1 (as at 31-3-2018: 1.79:1).
(i)
(l) stock option schemes of subsidiary companies:
larsen & toubro infotech limited
employee stock ownership scheme (‘esos Plan’)
(a)
the options are vested equally over a period of 5 years subject to the discretion of the management and fulfillment of
certain conditions. the options can be exercised anytime within a period of 7 years from the date of grant and would be
settled by way of issue of equity shares. management has discretion to modify the exercise period.
(B) The details of the grants under the aforesaid schemes under various series are summarized below:
Sr.
No.
i
ii
iii
iv
v
vi
Particulars
Grant Price
Grant Dates
Vesting commences on
ESOP scheme 2000
ESOP Scheme 2000
I,II & III
IV - XXI
2018-19
R 5
2017-18
R 5
2018-19
R 2
2017-18
R 2
01 April 2001 onwards
01 April 2002 onwards
01 October 2001
onwards
01 October 2002
onwards
U.S. Stock Option
Sub-plan
2006
2017-18
USD 2.4
2018-19
USD 2.4
15 March 2007
onwards
15 March 2008
onwards
ESOP scheme
2015
2018-19
R 1
2017-18
R 1
10 June 2016 onwards
10 June 2017 onwards
Options granted & outstanding at
the beginning of the year
Options granted during the year
Options allotted/exercised during
the year
21,345
–
36,720
–
6,85,302 14,50,725
–
–
39,000
–
47,000 28,50,140 35,96,300
1,29,300
3,59,400
9,130
3,375
615,091
6,73,315
6,000
8,000
8,80,600
7,43,460
vii Options Lapsed/cancelled during
the year
375
12,000
12,021
92,108
–
–
2,12,080
1,32,000
viii Options granted & outstanding at
the end of the year
11,840
21,345
58,190
6,85,302
33,000
39,000 21,16,860 28,50,140
ix
x
Options vested at the end of the
year out of (viii)
Options unvested at the end of the
year out of (viii)
xi Weighted average
remaining
contractual life of options (in
years)
11,840
21,345
58,190
4,47,852
33,000
39,000
1,02,360
3,12,600
–
–
–
–
–
–
2,37,450
0.7
–
–
– 20,14,500 25,37,540
–
4.7
5.3
(C) 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 (v)
2018-19
2017-18
no. of stock
options
Weighted
average
exercise price
(R)
no. of stock
options
Weighted
average
exercise price
(R)
35,95,787
3,59,400
15,10,821
2,24,476
22,19,890
2,05,390
2.89
1.00
2.09
1.06
3.50
28.02
51,30,745
1,29,300
14,28,150
2,36,108
35,95,787
8,20,797
2.73
1.00
2.35
1.59
2.90
9.03
466
Notes forming part of the Consolidated Financial statements (contd.)
Note [20] (contd.)
(d) Weighted average share price at the date of exercise for stock options exercised during the year is R 1617.00 per share
(previous year: R 850.00 per share).
(e) Weighted average fair value of options granted during the year is R 1649.62 per option (previous year: R 644.71 per option).
(F) the fair value has been calculated using the Black-scholes option Pricing model and significant assumptions and inputs
to estimate the fair value options granted during the year are as follows:
sr. no.
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
2018-19
7.49%
3 years
17.72%
R 108.91
R 1650.48
R 1
2017-18
6.69%
3 years
17.88%
R 115.33
R 645.55
R 1
vii
method used to determine expected volatility
the expected volatility has been calculated
entirely based on historic volatility of the 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 shareholders’ 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 the Company and shall not be more than the market price as defined in the seBi (share Based
employee Benefits) Regulations, 2014 and shall be subject to compliance with accounting policies under the said
regulation. the number of shares to be allotted on exercise of options should not exceed the total number of
unexercised vested options that may be exercised by the employee. Details of grants under ESOP Scheme, 2016 are
summarised 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
2018-19
2
28-07-2016 onwards
28-07-2017 onwards
32,24,945
1,64,000
2,35,000
15,57,278
17,38,667
82,187
16,56,480
4.51
2017-18
2
39,80,000
1,83,300
1,93,900
7,65,655
32,24,945
10,82,345
21,42,600
5.41
467
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [20] (contd.)
(B) no options were granted to key managerial personnel during the current year as well as previous year.
(C) the number and weighted average exercise price of stock options are as follows:
sr.
no.
i
ii
iii
iv
v
vi
Particulars
2018-19
2017-18
no. of stock
options
Weighted
average exercise
price (R)
no. of stock
options
Weighted
average exercise
price (R)
options granted and outstanding at the beginning
of the year
options granted during the year
options exercised during the year
options lapsed during the year
options granted and outstanding at the end of
the year
options exercisable at the end of the year out
of -(a) above
32,24,945
2,35,000
15,57,278
1,64,000
17,38,667
82,187
2
2
2
2
2
2
39,80,000
1,93,900
7,65,655
1,83,300
32,24,945
10,82,345
2
2
2
2
2
2
(d) Weighted average share price at the date of exercise for stock options exercised during the year is R 1435.59 per share
(previous year: R 849.70 per share).
(e)
in respect of stock options granted pursuant to the Company’s stock option schemes, the fair value of the options is
treated as discount and accounted as employee compensation over the vesting period.
(F) the weighted average fair value at grant date of options granted during the year ended 31-03-2019 is R 1281.80 per
option (previous year: R 737.10 per option). the fair value of grant date is determined using the Black scholes option
Pricing modelwhich 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
2018-19
R 2.00
23-Jul-18
22-Jul-25
2017-18
R 2.00
23-aug-17
22-aug-24
(iv) Weighted average share price at grant date
R 1281.80 per option
R 737.10 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
22.47%
5.06%
7.67%
42.54%
8.05%
6.44%
the expected price volatility is based on the historic
volatility (based on the remaining life of the options),
adjusted for any expected changes to future volatility
based on publicly available information.
(iii) l&t Finance Holdings limited
(a) the subsidiary has formulated employee stock option schemes 2010 (esoP scheme-2010) 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 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
468
Notes forming part of the Consolidated Financial statements (contd.)
Note [20] (contd.)
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 months from the date of
grant. options allotted under scheme 2010 can be exercised anytime within a period of 7 years from the date of grant
and would be settled by way of equity. the options granted under scheme 2013 can be exercised anytime within a
period of 8 years from the date of grant. management has discretion to modify the exercise period.
(B) the details of the grants are summarised 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
Scheme 2010
Scheme 2013
2018-19
2017-18
2018-19
2017-18
44.20
Market Price as on the preceding
date of grant
42,04,925
15,10,000
3,77,125
3,85,800
28,18,795
3,00,90,000
2,37,93,000
33,30,000
1,64,90,000
1,37,20,000
2,52,862
16,91,008
21,95,800
27,49,600
38,42,500
35,80,500
Options granted and outstanding at the end of the year
49,52,000
42,04,925
4,16,34,600
3,00,90,000
of which :
Options vested
Options yet to vest
5,04,000
44,48,000
1,71,425
44,32,000
14,30,000
40,33,500
3,72,02,600
2,86,60,000
7 Weighted average remaining contractual life of options (in
years)
5.63
6.01
5.92
6.15
(C) average fair values of options granted during the year is R 58.54 (previous year: R 63.25) per option.
(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
2018-19
7.42%
3.24 years
32.78%
2017-18
6.58%
3.27 years
32.57%
R 3.65 per option
R 3.31 per option
R 168.93 per option
R 145.59 per option
R 161.05 per option
R 116.58 per option
expected volatility is based on the historical volatility
of the Company’s shares price applicable to the
expected life of each option.
469
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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 [note 1(u)]
employee share options (net) [note 1(w)]
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(x)(iv)]
Hedging reserve [note 1(r)(iii)(B)] & [note 57(n)]
Cash flow hedging reserve
Cost of hedging reserve
debt instruments through other comprehensive income [note 1(r)(i)(B)]
as at 31-3-2019
as at 31-3-2018
v crore
v crore
153.20
–
v crore
v crore
153.20
3.56
10.52
271.92
10.52
271.92
282.44
42.00
8471.99
282.44
42.00
8363.02
536.49
(222.93)
337.05
313.56
1345.81
1399.55
92.57
514.98
3851.68
48200.53
540.73
239.11
5.89
449.22
(11.45)
245.00
(30.37)
62094.25
3352.91
41077.32
572.67
437.77
24.78
54623.23
525.76
(188.71)
1423.04
1694.87
146.46
587.31
* Capital redemption reserve has been created on redemption of preference shares (by a subsidiary) out of profits in accordance with
section 55(2)(c) of the Companies act, 2013.
^ 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 is not to be utilised except to redeem debentures.
470
Notes forming part of the Consolidated Financial statements (contd.)
Note [22]
Non-current liabilities: Financial liabilities - Borrowings
Particulars
secured Unsecured
total
secured Unsecured
total
v crore
v crore
v crore
v crore
v crore
v crore
as at 31-3-2019
as at 31-3-2018
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
Finance lease obligation [note 48(b)(i)(B)]
28587.12
–
–
–
–
28711.08
–
–
120.48
976.29
–
7865.92 36453.04
–
120.48
976.29
–
7859.84 36570.92
0.06
0.06
25187.11
50.00
–
–
–
8876.75 34063.86
50.00
–
116.96
116.96
905.26
905.26
1245.64
1245.64
23855.61 12677.23 36532.84
0.20
0.20
–
loans guaranteed by directors R nil (previous year: R nil)
Note [23]
Non-current liabilities: other financial liabilities
Particulars
Forward contract payables
embedded derivative payables
Financial guarantee contracts
due to others
Note [24]
Non-current liabilities : provisions
Particulars
employee pension scheme [note 45(b)(i)]
Post-retirement medical benefit plan [note 45(b)(i)]
Provision for other employee benefits
other provisions [note 53(a)]
57298.20
16822.59 74120.79
49092.72 23822.04 72914.76
as at 31-3-2019
as at 31-3-2018
v crore
12.80
139.78
0.65
201.60
354.83
v crore
19.97
79.39
0.52
254.07
353.95
as at 31-3-2019
as at 31-3-2018
v crore
308.36
226.66
14.09
7.73
556.84
v crore
301.13
209.04
12.44
0.93
523.54
471
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [25]
other non-current liabilities
Particulars
other payables
Note [26]
Current liabilities : Financial liabilities - Borrowings
as at 31-3-2019
as at 31-3-2018
v crore
0.55
0.55
v crore
67.97
67.97
Particulars
secured Unsecured
total
secured Unsecured
total
as at 31-3-2019
as at 31-3-2018
loans repayable on demand
short term loans from banks
short term loans from others
Commercial paper
v crore
v crore
v crore
v crore
v crore
v crore
3974.04
2546.51
–
–
1611.78
4063.24
5.99
5585.82
6609.75
5.99
17022.28 17022.28
1569.13
1511.47
4102.79
96.88
–
463.73
– 13196.20 13196.20
57.66
4005.91
463.73
6520.55
22703.29 29223.84
1608.35 17723.50 19331.85
Note [27]
Current liabilities : Financial liabilities - Current maturities of long term borrowings
Particulars
secured Unsecured
total
secured Unsecured
total
as at 31-3-2019
as at 31-3-2018
Redeemable non-convertible fixed rate debentures
Redeemable non-convertible floating rate debentures
Preference shares
0.675% Foreign currency convertible bonds
term loans from banks
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
9111.04
–
–
–
4160.98
–
–
3073.62 12184.66
–
184.19
1363.39
8478.30
–
–
–
184.19
1363.39
4317.32
–
–
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
13272.02
8938.52 22210.54
11911.55
3365.92 15277.47
472
Notes forming part of the Consolidated Financial statements (contd.)
Note [28]
Current liabilities : Financial liabilities - other trade payables
Particulars
acceptances
due to related parties:
associate companies
Joint venture companies
due to others
Note [29]
Current liabilities : other financial liabilities
Particulars
Unclaimed dividend
Unclaimed interest on debentures
Financial guarantee contracts
Forward contract payables
embedded derivative payables
due to others
Note [30]
other current liabilities
Particulars
Contract liabilities [Refer note 44(d)]
due to customers - construction contract
due to customers - property development projects
advances from customers
other payables
as at 31-3-2019
as at 31-3-2018
v crore
v crore
520.99
v crore
v crore
448.28
47.68
1092.73
23.03
1120.37
1140.41
41072.29
42733.69
1143.40
36029.54
37621.22
as at 31-3-2019
as at 31-3-2018
v crore
84.64
15.31
1.13
380.65
145.48
4187.87
4815.08
v crore
63.69
14.16
0.95
171.65
131.84
4649.89
5032.18
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
11021.59
–
17270.56
8630.93
705.11
14860.24
28292.15
2874.40
31166.55
24196.28
2899.36
27095.64
473
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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(a)]
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
income tax liability (including penalty) that may arise in respect of which
the Group is in appeal
d)
e) Guarantees or letter of credit or letter of comfort given to third parties
f) Corporate guarantees for debt given on behalf of joint ventures
g) Bank guarantees given on behalf of joint venture(s)
h) Contingent liabilities incurred in relation to interest in joint operations
i) share in contingent liabilities of joint operations for which the Group is
contingently liable
j) Contingent liabilities in respect of liabilities of other joint operators in
respect of joint operations
k) share of contingent liabilities incurred jointly with other investors of the
associate(s)
l) share of joint ventures’ contingent liabilities in respect of legal claim(s)
lodged against the entity
as at 31-3-2019
as at 31-3-2018
v crore
v crore
v crore
v crore
254.53
1133.19
28.92
14.97
0.84
91.62
1513.77
215.17
1024.72
25.55
13.12
5.00
1432.45
1283.56
68.54
1172.95
1605.39
3037.84
1241.49
2525.05
as at 31-3-2019
as at 31-3-2018
v crore
3354.54
257.37
382.62
952.17
2594.98
427.31
28.93
7586.12
84.92
7187.07
122.15
240.08
v crore
3386.98
248.74
362.11
692.12
2824.15
479.55
28.79
7267.96
139.20
6576.16
116.20
694.32
Notes:
(i)
(ii)
the Group expects reimbursements of R 9.30 crore (previous year: R 97.67 crore) in respect of the above contingent liabilities.
it is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution
of the arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above excludes interest and penalty in cases
where the Group has determined that the possibility of such levy is remote.
in respect of matters at (e), the cash flows, if any, could occur any time during the subsistence of the underlying agreement.
in respect of matters at (f), 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 (g), 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 (h) to (j), the cash outflows, if any, could generally occur upto completion of projects undertaken by the
respective joint operations.
(iii)
(iv)
(v)
(vi)
(vii) in respect of matters at (k) and (l), the cash outflows, in any, could generally occur any time up to settlement of claims or during
subsistence of the underlying agreements.
474
Notes forming part of the Consolidated Financial statements (contd.)
Note [33]
Commitments
Particulars
(i) estimated amount of contracts remaining to be executed for capital
account of 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
(iv) Commitments to provide funding for joint venture’s capital commitments,
if called
(v) Funding committed by way of equity (including investment through
purchase of investments from other parties*) to other companies
as at 31-3-2019
as at 31-3-2018
v crore
825.18
929.85
183.83
42.87
10732.85
v crore
836.78
2075.57
409.74
116.85
–
* the Company has entered into a definitive share purchase agreement to acquire 20.32% stake in mindtree limited on
march 18, 2019 at a price of R 980 per share aggregating to consideration of R 3269.00 crore. Further, the Company has placed
a purchase order with its stock broker for acquiring 15% stake through on-market purchases for an overall consideration amount
not exceeding R 2434.00 crore from any recognised stock exchange, but only after receipt of relevant approvals from regulatory
authorities. the Company will also make an open offer to acquire 31% stake for a consideration of R 5029.85 crore in accordance
with the requirements of the seBi (substantial acquisition of shares and takeover) Regulations, 2011. the completion of these
transactions are subject to receipt of necessary regulatory approvals.
subsequent to march 31, 2019 and up to may 9,2019, the Company acquired 4,25,90,088 equity shares of mindtree limited
(representing 25.94% of the share capital of that company) at a cost of R 4180.91 crore through block deal purchase from major
shareholder (and his associate entities) and on- market purchases.
Note [34]
revenue from operations
Particulars
sales & service:
Construction and project related activity
manufacturing and trading activity
engineering service fees
software development products and services
income from financing activity/annuity based projects
Property development activity
Fare collection and related activity
servicing fees
Commission
Charter hire income
investment/portfolio management and trusteeship fees
Fees for operation and maintenance of power plant
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 a subsidiary classified under developmental
projects segment.
Profit on sale of investment property
miscellaneous income
2018-19
2017-18
v crore
v crore
v crore
v crore
96472.60
8116.18
5172.01
9330.75
13009.42
2255.75
166.49
974.85
198.45
1.27
618.64
2821.67
4.83
194.73
48.48
32.76
415.61
565.60
607.00
83595.78
7838.44
3849.87
7445.55
10452.48
686.81
28.60
737.52
206.98
0.79
615.56
2628.68
139138.08
118087.06
15.73
111.02
1.75
59.44
–
619.09
968.01
1869.01
141007.09
1775.04
119862.10
475
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [35]
other income
Particulars
Interest income [Note 46(a)]:
interest income on loans and advances to related parties:
Joint venture & associate companies
interest income on investment
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
Cost of raw materials, components consumed:
Raw materials and components
less: scrap sales
excise duty
Construction materials consumed
Purchase of stock-in-trade
Value of stock in trade transferred on sale of business
stores, spares and tools consumed
sub-contracting charges
Changes in inventories of finished goods, stock-in-trade, work-in-progress 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
2018-19
2017-18
v crore
v crore
v crore
v crore
112.13
389.71
398.74
2.09
58.09
176.73
107.10
433.46
125.11
900.58
665.67
1.66
53.78
2692.64
55.44
2692.64
(2217.72)
(125.74)
67.14
5.46
199.04
1341.93
60.18
176.73
65.33
(21.81)
25.77
5.07
639.68
1851.53
2018-19
2017-18
v crore
v crore
v crore
v crore
17150.93
148.42
15360.64
115.27
17002.51
–
31059.78
1800.15
2858.57
26346.70
1800.15
–
301.74
386.27
5828.16
3174.88
115.32
9806.37
15245.37
178.94
24056.23
1574.64
2378.50
24639.02
1604.19
29.55
245.25
285.67
4540.13
2307.47
110.70
7489.22
Carried forward
9806.37
79067.71
7489.22
68072.70
476
Notes forming part of the Consolidated Financial statements (contd.)
Note [36]
Manufacturing, construction and operating expenses (contd.)
Particulars
Brought forward
less: opening stock:
Finished goods
stock-in-trade
Work-in-progress
Cost of built up space and property development land:
Work-in-progress
Completed property
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
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
Provision/(reversal) for foreseeable losses on construction contracts
other provisions
miscellaneous expenses
Finance cost of financial services business and finance lease activity:
[Note 46(a)]
interest and other financing charges
2018-19
2017-18
v crore
v crore
v crore
v crore
9806.37
79067.71
7489.22
68072.70
245.25
285.67
4525.09
3744.40
138.29
8938.70
–
2118.68
42.94
488.94
2365.90
208.40
2091.47
286.21
569.27
627.93
1128.17
90.37
24.58
481.28
183.51
148.06
2839.71
340.82
188.59
4385.19
1259.39
–
6173.99
(867.67)
(1315.23)
(48.72)
1281.49
16.00
411.41
1663.04
203.15
1423.68
252.41
529.66
414.55
875.89
83.03
8.27
415.87
(2.28)
14.67
2998.51
13695.42
10540.63
7385.63
99281.09
6019.74
83317.84
477
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [37]
employee benefits expense
Particulars
salaries, wages and bonus
Contribution to and provision for:
2018-19
2017-18
v crore
v crore
16298.89
v crore
v crore
13666.38
Provident fund and pension fund
superannuation/employee pension and social security schemes
Gratuity funds [note 45(b)(ii)]
303.03
222.34
152.65
254.27
188.49
140.83
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 expected credit loss written back
Receivable discounting charges -non recourse
allowances for expected credit loss
loss on fair valuation of loans towards financing activities (net)
Recoveries from Joint venture and associates
exchange (gain)/loss [net]
other provisions
478
678.02
157.97
205.69
1100.79
(340.78)
18100.58
583.59
111.39
179.16
1011.83
(281.56)
15270.79
2018-19
v crore
v crore
121.80
155.32
94.62
544.53
213.66
763.64
39.07
496.71
943.00
7.90
214.06
196.52
73.96
2017-18
v crore
v crore
118.13
157.36
76.47
536.19
151.38
688.91
31.77
446.05
730.79
6.28
206.18
168.36
63.88
389.77
10.10
1847.36
1665.79
399.87
163.22
904.01
181.57
39.87
1856.57
77.62
(46.22)
(244.64)
105.61
7302.27
499.91
7.12
1205.38
709.36
507.03
155.37
738.30
496.02
36.25
2521.33
30.73
(48.41)
(245.82)
64.63
7637.18
Notes forming part of the Consolidated Financial statements (contd.)
Note [39]
Finance costs
Particulars
interest expenses
other borrowing costs
exchange loss (attributable to finance costs)
2018-19
v crore
1756.14
12.79
37.11
1806.04
2017-18
v crore
1511.08
13.07
14.37
1538.52
39(a) Aggregation of expenses disclosed vide [Note 36 - Manufacturing, construction and operating expenses], [Note 37 - Employee
benefits expense], [note 38 - sales, administration and other expenses] and [note 39 - Finance costs]
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 36:
Manufacturing,
construction
and operating
expenses
2118.68
488.94
286.21
569.27
627.93
1128.17
90.37
24.58
481.28
2091.47
7385.63
2839.71
2018-19
Note 38:
Sales,
administration
and other
expenses
121.80
155.32
94.62
544.53
213.66
763.64
Note 37:
Employee
benefits
expense
–
–
205.69
–
–
–
–
39.07
496.71
943.00
–
–
–
–
–
–
Note 39:
Finance costs
Total
Note 36:
Manufacturing,
construction
and operating
expenses
1281.49
411.41
252.41
529.66
414.55
875.89
83.03
8.27
2240.48
644.26
586.52
1113.80
841.59
1891.81
90.37
63.65
977.99
415.87
3034.47
1423.68
–
–
–
–
–
–
–
–
–
–
–
904.01
1806.04
–
9191.67
3743.72
6019.74
2998.51
R crore
Total
Note 39:
Finance costs
–
–
–
–
–
–
–
–
–
–
1399.62
568.77
508.04
1065.85
565.93
1564.80
83.03
40.04
861.92
2154.47
2017-18
Note 38:
Sales,
administration
and other
expenses
118.13
157.36
76.47
536.19
151.38
688.91
Note 37:
Employee
benefits
expense
–
–
179.16
–
–
–
–
31.77
446.05
730.79
–
–
–
–
–
–
1538.52
–
7558.26
3736.81
738.30
479
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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.
Name of subsidiaries
Principal place
of business
As at 31-3-2019
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Indian Subsidiaries
Hi-Tech Rock Products and Aggregates Limited
L&T Geostructure LLP
L&T Geo – L&T JV for Maharatangarh project $
L&T Geo – L&T UJV CMRL CS $$
L&T Infrastructure Engineering Limited
L&T Cassidian Limited #
L&T Hydrocarbon Engineering Limited
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Thales Technology Services Private Limited
Syncordis Software Services India Private Limited
Graphene Semiconductor Services Private Limited ##
Seastar Labs Private Limited ##
Ruletronics Systems 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 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
LTR SSM Private Limited ^
L&T Seawoods Limited
L&T Vision Ventures Limited
Seawoods Retail Private Limited *
Seawoods Realty Private Limited *
L&T Electricals and Automation Limited
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
480
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.80
78.88
58.37
74.80
78.88
78.88
74.80
78.88
63.91
63.91
63.91
63.91
63.91
63.91
63.91
63.91
63.91
–
63.91
63.91
63.91
35.11
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
68.00
–
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.80
78.88
58.37
74.80
78.88
78.88
74.80
78.88
63.91
63.91
63.91
63.91
63.91
63.91
63.91
63.91
63.91
–
63.91
63.91
63.91
35.11
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
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
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
100.00
Notes forming part of the Consolidated Financial statements (contd.)
Note [40] (contd.)
Sr.
No.
Name of subsidiaries
Principal place
of business
As at 31-3-2019
As at 31-3-2018
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
Indian Subsidiaries
L&T Construction Equipment Limited
L&T Construction Machinery Limited **
L&T Valves Limited
L&T Shipbuilding Limited***
Bhilai Power Supply Company Limited
L&T Power Limited
Kesun Iron and Steel Company Private Limited
L&T Aviation Services Private Limited
L&T Capital Company Limited
L&T Infra Contractors Private Limited
100.00
100.00
100.00
97.00
99.90
99.99
95.00
100.00
100.00
100.00
The arrangement entered on September 14, 2018 assessed as subsidiary since the group exercises unilateral control
The arrangement entered on January 4, 2019 assessed as subsidiary since the group exercises unilateral control
The company is in process of being struck off from register of companies
The Group has acquired stake on October 15, 2018
The Group has acquired stake on February 1, 2019
The company has been dissolved on August 8, 2018
49
50
51
52
53
54
55
56
57
58
$
$$
#
##
%
@
@@ The Group has sold its stake on June 28, 2018
^
*
**
*** Classified as wholly owned subsidiary w.e.f. April 10, 2019 due to purchase of additional stake
The company has been incorporated on September 24, 2018
The name of the company has been struck off the register of companies on June 26, 2018
The company has been incorporated on December 18, 2018
100.00
100.00
100.00
97.00
99.90
99.99
95.00
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
97.00
99.90
99.99
95.00
100.00
100.00
100.00
Principal place
of business
As at 31-3-2019
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
Name of subsidiaries
Foreign Subsidiaries
Larsen & Toubro (Oman) LLC
Larsen & Toubro Qatar LLC #
Larsen & Toubro Saudi Arabia LLC
Larsen & Toubro T&D SA (Proprietary) Limited
Larsen & Toubro Heavy Engineering LLC
Larsen & Toubro Hydrocarbon International Limited
LLC #
L&T Modular Fabrication Yard LLC
L&T Overseas Projects Nigeria Limited
Larsen Toubro Arabia LLC
L&T Hydrocarbon Saudi Company (formerly known as
Larsen & Toubro ATCO Saudi LLC)
Larsen & Toubro Kuwait Construction General
Contracting Company WLL
Sultanate of
Oman
Qatar
Kingdom of
Saudi Arabia
South Africa
Sultanate of
Oman
Kingdom of
Saudi Arabia
Sultanate of
Oman
Nigeria
Kingdom of
Saudi Arabia
Kingdom of
Saudi Arabia
Kuwait
PT Larsen & Toubro Hydrocarbon Engineering
Indonesia
Indonesia
Larsen & Toubro Electromech LLC
Sultanate of
Oman
65.00
49.00
100.00
72.50
70.00
100.00
70.00
100.00
75.00
100.00
49.00
95.00
70.00
65.00
100.00
100.00
72.50
100.00
100.00
100.00
100.00
100.00
100.00
100.00
95.00
100.00
65.00
49.00
100.00
72.50
65.00
100.00
100.00
72.50
70.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
49.00
100.00
95.00
95.00
70.00
100.00
481
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [40] (contd.)
Sr.
No.
Name of subsidiaries
Principal place
of business
As at 31-3-2019
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Proportion
of effective
ownership
Interest (%)
Proportion of
voting power
held (%)
Foreign Subsidiaries
L&T Hydrocarbon International FZE ^
L&T Information Technology Services (Shanghai) Co.,
UAE
China
100.00
100.00
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Ltd.
L&T Infotech Financial Services Technologies Inc.
Larsen & Toubro Infotech Canada Limited
Larsen & Toubro Infotech LLC
Larsen & Toubro Infotech South Africa (Proprietary)
Limited
Larsen & Toubro Infotech GmbH
Larsen & Toubro Infotech Austria GmbH
L&T Information Technology Spain,S.L.
Larsen & Toubro Infotech Norge AS *
Larsen & Toubro LLC
L&T Infotech S. DE R.L. DE C.V.
Syncordis S.A.
Syncordis SARL
Syncordis Limited
Syncordis Support Services S.A.
Nielsen+Partner Unternehmensberater GmbH**
Nielsen+Partner Unternehmensberater AG**
Nielsen+Partner Pte Ltd**
Nielsen+Partner S.A **
Nielsen&Partner Company Limited**
Nielsen&Partner Pty Ltd**
Ruletronics Limited**
Ruletronics Systems Inc**
L&T Technology Services LLC
Graphene Solutions PTE Ltd. @
Graphene Solutions SDN .BHD @
Graphene Solutions Taiwan Limited @
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
L&T Capital Markets (Middle East) Ltd @@
48
49
50
51
52
53
54
55
56
#
^
*
** The Group has acquired stake on February 1, 2019
The Group has acquired stake on October 15, 2018
@
@@ The company has been incorporated on July 1, 2018
The company is in process of liquidation.
The company has been incorporated on September 9, 2018
The company has been incorporated on November 20, 2018
Canada
Canada
USA
South Africa
Germany
Austria
Spain
Norway
USA
Mexico
Luxembourg
France
UK
Luxembourg
Germany
Switzerland
Singapore
Luxembourg
Thailand
Australia
UK
USA
USA
Singapore
Malaysia
Taiwan
USA
UAE
Malaysia
Kuwait
UAE
Kingdom of
Saudi Arabia
Indonesia
UK
Australia
Malaysia
UK
Malaysia
UAE
UAE
UAE
74.80
74.80
74.80
74.80
56.02
74.80
74.80
74.80
74.80
98.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
78.88
78.88
78.88
78.88
78.88
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
63.91
74.80
74.80
74.80
74.80
56.02
74.80
74.80
74.80
74.80
98.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
74.80
78.88
78.88
78.88
78.88
78.88
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
63.91
482
–
82.96
82.96
82.96
82.96
62.14
82.96
82.96
82.96
–
99.19
82.96
82.96
82.96
82.96
82.96
–
–
–
–
–
–
–
–
88.64
–
–
–
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
–
–
82.96
82.96
82.96
82.96
62.14
82.96
82.96
82.96
–
99.19
82.96
82.96
82.96
82.96
82.96
–
–
–
–
–
–
–
–
88.64
–
–
–
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
–
Notes forming part of the Consolidated Financial statements (contd.)
Note [40] (contd.)
Name of associates
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
LTIDPL INDVIT Services Limited*
Magtorq Engineering Solutions Private Limited
India
India
Qatar
UAE
India
India
India
India
Sr.
No.
1
2
3
4
5
6
7
8
As at 31-3-2019
As at 31-3-2018
Proportion
of effective
ownership
Interest (%)
50.00
50.00
50.00
49.00
21.74
42.85
97.45
39.28
Proportion of
voting power
held (%)
50.00
50.00
50.00
49.00
21.74
42.85
97.45
39.28
Proportion
of effective
ownership
Interest (%)
50.00
50.00
50.00
49.00
21.74
42.85
–
39.28
Proportion of
voting power
held (%)
50.00
50.00
50.00
49.00
21.74
42.85
–
39.28
@ The company is under liquidation
* The company has been re-classified as associate w.e.f. August 14, 2018 on amendment to Articles of Association
Sr. No. Name of joint ventures
As at 31-3-2019
As at 31-3-2018
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 *
Krishnagiri Thopur Toll Road Limited *
Western Andhra Tollways Limited *
Krishnagiri Walajahpet Tollway Limited *
Devihalli Hassan 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
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
24
25
India
India
India
India
India
India
India
India
India
Azerbaijan
India
India
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
98.12
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
97.45
97.45
98.12
483
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [40] (contd.)
Sr. No. Name of joint ventures
As at 31-3-2019
As at 31-3-2018
Principal place of
business
Proportion of effective
ownership interest (%)
Proportion of effective
ownership interest (%)
Joint Ventures
LTIDPL INDVIT Services Limited**
L&T Interstate Road Corridor Limited
Ahmedabad-Maliya Tollway Limited
L&T Halol-Shamlaji Tollway Limited
PNG Tollway Limited
L&T IDPL Trustee Manager Pte. Ltd. ***
L&T Kobelco Machinery Private Limited [Note 66]
Raykal Aluminium Company Private Limited
Indiran Engineering Projects and Systems Kish PJSC
26
27
28
29
30
31
32
33
34
*
**
*** The name of the company has been struck off from the register of companies on August 6, 2018
India
India
India
India
India
Singapore
India
India
Iran
The Group has sold its stake on May 4, 2018
The company has been re-classified as associate w.e.f. August 14, 2018 on amendment to Articles of Association
–
97.45
97.45
47.75
72.11
–
51.00
75.50
50.00
97.45
97.45
97.45
47.75
72.11
97.45
51.00
75.50
50.00
Sr.
No.
1
2
Name of joint operations (with specific ownership interest in
the arrangement)
Desbuild L&T Joint Venture
Larsen and Toubro Limited-Shapoorji Pallonji & Co. Ltd. Joint
Principal place of
business
India
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
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
India
Qatar
India
India
India
India
India
India
India
India
Joint Venture
Civil Works Joint Venture
Qatar
Kindgom of Saudi
Arabia
L&T-Shanghai Urban Construction (Group) Corporation Joint
Venture
DAEWOO and L&T Joint Venture
L&T-STEC JV MUMBAI
L&T-ISDPL (JV)
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
India
India
India
India
India
UAE
India
India
484
As at 31-3-2019
Proportion of effective
ownership interest (%)
49.00
As at 31-3-2018
Proportion of effective
ownership interest (%)
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
100.00
65.00
60.00
50.00
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
100.00
65.00
60.00
50.00
Notes forming part of the Consolidated Financial statements (contd.)
Note [40] (contd.)
Sr.
No.
22
23
24
25
26
27
28
29
30
31
Name of joint operations (with specific ownership interest in
the arrangement)
L&T- Inabensa Consortium
Principal place of
business
India
As at 31-3-2019
Proportion of effective
ownership interest (%)
100.00
As at 31-3-2018
Proportion of effective
ownership interest (%)
100.00
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
UAE
Qatar
India
UAE
India
Tanzania
India
India
Kindgom of Saudi
Arabia
100.00
75.00
55.00
50.00
50.00
90.00
56.67
50.00
50.00
100.00
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)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
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
L&T ISDPL - DI (JV)
L&T Galfar Consortium
Sojitz Corporation-L&T consortium (for 4 projects)
Sojitz Corporation-Gayathri Projects Ltd-L&T consortium
PESB and Larsen & Toubro Joint Venture
Scomi Engineering Bhd-L&T consortium
Consortium of M/s. J. Ray McDermott Sdn. Bhd. and M/s. L&T Hydrocarbon Engineering Limited
Consortium of L&T Hydrocarbon Engineering Limited and EMAS AMC Pte. Ltd.
Consortium of L&T Hydrocarbon Engineering Limited and Reliance Naval and Engineering Limited
Consortium of L&T Hydrocarbon Engineering Limited, GE Oil & Gas UK Ltd., McDermott International Management
S.de RL, Berlian McDermott Sdn Bhd and Vetco Gray Pte Ltd
Consortium of L&T Hydrocarbon Engineering Limited and Technip India Limited
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)
L&T Infrastructure Engineering Limited-Fortress Infrastructure Advisory Services (for 4 projects)
L&T Infrastructure Engineering Limited-Mahindra Consulting Engineers Ltd.
L&T Infrastructure Engineering Limited-Pricewaterhouse Coopers Pvt. Ltd. (for 2 projects)
L&T Infrastructure Engineering Limited-Rajendran Associates
L&T Infrastructure Engineering Limited-Transtek Engineers & Services Pvt. Ltd.
L&T Infrastructure Engineering Limited-Vax Consultants Pvt.Ltd. (for 5 projects)
L&T Infrastructure Engineering Limited-Aakar Abhinav Consultants Pvt. Ltd.
L&T Infrastructure Engineering Limited-Centre for Symbiosis of Technology Environment & Management (STEM)
20
21
22
23
24
25
26
27
28
29
30
Principal place of business
India
India
India
India
Qatar
India
India
India
India
India
Oman
India
India
Malaysia
India
India
Kingdom of Saudi Arabia
India
India
India
India
India
India
India
India
India
India
India
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 interests is reported separately in the Consolidated Balance sheet. Retained
earnings comprise Group’s share in general reserve and balance of Profit and loss.
485
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [42]
(a) exceptional item for 2018-19 represents recognition of certain customer dues now considered recoverable.
(b) 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.
(c) the Competition Commission of india (CCi) accorded on april 18, 2019 its approval for the acquisition of the Group’s electrical &
automation (e&a) business by schneider electric subject to certain conditions, the details of which are awaited. Pending receipt of
CCi’s detailed order, the e&a business is treated as continuing operation and accordingly, the relevant assets are not classified as
held for sale.
Note [43]
the expenditure on research and development activities recognised as expense in the statement of Profit and loss is R 232.27 crore
(previous year: R 206.80 crore). Further, the Group has incurred capital expenditure on research and development activities as follows:
(a) on Property, Plant & equipment R 5.59 crore (previous year: R 6.73 crore)
(b) on intangible assets being expenditure on new product development R 52.54 crore (previous year: R 51.38 crore)
(c) on other intangible assets R 1.96 crore (previous year: R 5.64 crore)
Note [44]
disclosure pursuant to ind as 115 “Revenue from Contracts with Customers”:
(a) disaggregation of revenue into operating segments and geographical areas for the year ended march 31, 2019:
segment
domestic
Foreign
total
other revenue
Revenue as per ind as 115
infrastructure
Power
Heavy engineering
defence engineering
electrical & automation
Hydrocarbon
it & technology services
Financial services
developmental Projects
others
total
53212.17
2583.78
964.08
3420.43
4234.45
7174.51
1217.91
1135.97
3521.39
4581.92
82046.61
19095.51
1383.77
1184.05
331.53
1533.30
7945.69
13153.45
–
–
443.95
45071.25
72307.68
3967.55
2148.13
3751.96
5767.75
15120.20
14371.36
1135.97
3521.39
5025.87
127117.86
110.37
3.95
26.09
–
19.06
11.38
–
11501.72
1546.65
670.01
13889.23
v crore
total as per
statement of
Profit & loss /
segment report
72418.05
3971.50
2174.22
3751.96
5786.81
15131.58
14371.36
12637.69
5068.04
5695.88
141007.09
(b) out of the total revenue recognised under ind as 115 during the year, R 109086.70 crore was recognised over a period of time
and R 18031.16 crore was recognised at a point in time.
(c) movement in expected Credit loss during the year:
Particulars
opening balance as at april 1, 2018
ind as 115 transition impact
Changes in allowance for expected credit loss:
Provision / (reversal) of allowance for expected credit loss
additional provision (net)
Write off as bad debts
Closing balance as at march 31, 2019
v crore
Provision on trade receivables
covered under ind as 115
2900.10
–
Provision on Contract
assets
121.85
780.87
84.34
265.62
(249.23)
3000.83
(195.46)
155.14
(2.75)
859.65
486
Notes forming part of the Consolidated Financial statements (contd.)
Note [44] (contd.)
(d) Contract balances:
(i) movement in contract balances during the year -
v crore
Particulars
Contract assets
Contract liabilities
net contract balances
opening balance as on april 01, 2018
Closing balance as on march 31, 2019
net increase
42763.74
47020.30
4256.56
24196.28
28292.15
4095.87
18567.46
18728.15
160.69
note: increase in net contract balances is primarily due to higher revenue recognition as compared to progress bills raised
during the year and ind as 115 transition adjustment.
(ii) Revenue recognised during the year from opening balance of contract liabilities amounts to R 9724.78 crore.
(iii) Revenue recognised during the year from the performance obligation satisfied upto previous year (arising out of contract
modifications) amounts to R 221.00 crore.
(e) Cost to obtain the contract :
i.
amount of amortisation recognised in statement of Profit and loss during the year 2018-19: R 5.32 crore.
ii. amount recognised as contract assets as at march 31, 2019: R 30.26 crore.
(f) Reconciliation of contracted price with revenue during the year -
opening contracted price of orders as at april 1, 2018*
add:
Fresh orders /change orders received (net)
increase due to additional consideration recognised as per contractual terms
increase due to exchange rate movements (net)
less:
orders completed during the year
Closing contracted price of orders as at march 31, 2019*
total Revenue recognised during the year
less: Revenue out of orders completed during the year
Revenue out of orders under execution at the end of the year (i)
Revenue recognised upto previous year (from orders pending completion at the end of the year) (ii)
decrease due to exchange rate movements (net) (iii)
Balance revenue to be recognised in future viz. Order book (IV)
Closing contracted price of orders as at march 31, 2019* (i+ii+iii+iV)
* including full value of partially executed contracts
v crore
560785.57
156242.07
5944.08
2798.27
85624.38
640145.61
99572.64
242938.20
(68.63)
297703.40
640145.61
127117.86
27545.22
(g) Remaining performance obligations: the aggregate amount of transaction price allocated to remaining performance obligations
and expected conversion of the same into revenue is as follows -
Particulars
total
Upto
1 Year
From
1 to 2 years
expected conversion in revenue
From
3 to 4 years
From
2 to 3 years
v crore
From
4 to 5 years
Beyond
5 years
transaction price allocated to the
remaining performance obligation
297703.40
116804.46
108730.85
44795.85
16996.20
5926.62
4449.42
487
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [44] (contd.)
(h) disclosure of amount by which Consolidated financial statements are impacted by application of ind as 115 as compared to
ind as 11 and ind as 18 -
(i)
impact on Balance sheet:
Particulars
assets
liabilities
total equity
(ii)
impact on statement of Profit & loss:
as per
ind as 11/
ind as 18 as at
31.03.2019
278489.21
208509.40
69979.81
impact of application
of ind as 115
increase/(decrease)
For the year
2018-19
v crore
after
application of
ind as 115 as
at 31.03.2019
(871.87)
(1333.35)
461.48
279134.07
209933.16
69200.91
transition
impact as at
april 1, 2018
1516.73
2757.11
(1240.38)
Particulars
Revenue from operations
manufacturing, construction and operating expenses
employee benefits expense
sales, administration and other expenses
Profit before tax
tax expenses
Profit after tax
non-controlling interest (nCi) in (income)/losses
net Profit after tax, non-controlling interest and share
in profit of joint ventures/associates
Basic earnings per share
diluted earnings per share
as per
ind as 11/
ind as 18
139725.20
98518.70
18130.84
7506.39
13827.04
4050.94
9776.10
(1306.65)
8448.45
60.26
60.15
For the year 2018-19
impact of application
of ind as 115
increase/(decrease)
1281.89
762.39
(30.26)
(204.12)
753.88
292.40
461.48
(4.80)
456.68
3.25
3.25
v crore
after application
of ind as 115
141007.09
99281.09
18100.58
7302.27
14580.92
4343.34
10237.58
(1311.45)
8905.13
63.51
63.40
a. Pursuant to adoption of ind as 115, the Group recognised impairment loss on contract assets using expected credit loss
applied to trade receivables.
impact during transition: opening total equity as on april 1, 2018 reduced by R 552.17 crore (net of tax) due to
initial recognition of expected credit loss on contract assets with a corresponding increase in deferred tax asset by
R 260.19 crore and reduction in contract assets by R 812.36 crore.
impact for the year: there is a decrease in sales, administration and other expenses due to reversal of provision for
expected credit loss on contract asset resulting in profit after tax being higher by R 131.90 crore (net of tax) with
corresponding increase in contract assets by R 204.12 crore and reduction in deferred tax asset R 72.22 crore.
Further, there is an increase in Profit after tax due to recognition of contract cost (net) by R 22.90 crore (net of tax) with
a corresponding increase in contract assets by R 34.85 crore, increase in inventory by R 0.65 crore, decrease in deferred
tax asset by R 7.82 crore and increase in contract liability by R 4.78 crore.
B. Under ind as 115, revenue from realty business is recognised upon delivery of units as against percentage of completion
method followed under ind as 11.
impact during transition: opening total equity as on april 1, 2018 reduced by R 688.21 crore (net of tax) with a
corresponding increase in contract liability by R 2757.11 crore, decrease in contract asset by R 3.51 crore, increase
488
Notes forming part of the Consolidated Financial statements (contd.)
Note [44] (contd.)
in inventory by R 1748.47 crore, decrease in trade receivable by R 22.02 crore and increase in deferred tax asset by
R 345.96 crore.
impact for the year: Profit after tax during the year is higher by R 306.68 crore (net of tax) with a corresponding
decrease in contract liability by R 1319.06 crore, decrease in current tax liability by R 19.07 crore, decrease in inventory
by R 656.66 crore, decrease in trade receivable by R 148.53 crore, increase in other current asset by R 5.17 crore and
decrease in deferred tax assets by R 231.43 crore.
(i)
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
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.
Remuneration
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.
Funding from grantor
Viability Gap Funding of R 1458 crore
infrastructure return at the end of
the concession period
Being dBFot project, the project assets have to be transferred at the end of concession
period
Renewal and termination options
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.
Rights & obligations
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.
Classification of service
arrangement
intangible assets have been recognised towards rights to charge the users of the utility
Construction revenue recognised
R 387.33 crore (previous year: R 469.10 crore) [included in note 44 (a) above]
489
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [45]
disclosure pursuant to ind as 19 “employee Benefits” [note 1(p)]
(a) defined contribution plans: amount of R 400.64 crore (previous year: R 387.19 crore) is recognised as an expense. out of above,
R 399.84 crore (previous year: R 386.04 crore) is included in “employee benefit expense” [note 37] in the statement of Profit and
loss and R 0.80 crore (previous year: R 1.15 crore) has been capitalised.
(b) defined Benefit plans:
(i)
the amounts recognised in Balance sheet are as follows:
Particulars
Gratuity plan
As at
31-3-2019
As at
31-3-2018
Post-retirement medical
benefit plan
As at
31-3-2019
As at
31-3-2018
Pension plan
Trust-managed
provident fund plan
As at
31-3-2019
As at
31-3-2018
As at
31-3-2019
As at
31-3-2018
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
753.52
254.53
1008.05
649.28
676.92
215.17
892.09
610.99
–
241.63
241.63
–
–
222.16
222.16
–
–
337.28
337.28
–
–
326.68
326.68
–
4090.42
–
4090.42
4128.60
3618.47
14.84
3633.31
3676.19
(limit in para 64(b))
3.24
4.78
–
–
–
–
3.38
–
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
362.01
285.88
241.63
222.16
337.28
326.68
(34.80)
(42.88)
364.96
(2.95)
362.01
362.01
–
292.73
(6.85)
285.88
285.88
–
241.63
–
241.63
14.97
226.66
222.16
–
222.16
13.12
209.04
337.28
–
337.28
28.92
308.36
326.68
–
326.68
25.55
301.13
46.33
(0.10)
46.23
46.23
–
# 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
33.83
(2.96)
30.87
30.87
–
v crore
1
2
3
4
5
6
7
8
9
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
Past service cost
Actuarial gain/(loss) not recognised in
books
Adjustment for earlier years
Re-measurement - Effect of the limit in
para 64(b)
10 Business Combination
10 Translation adjustments
11 Amount capitalised out of the above
Total (1 to 11)
490
2018-19
149.50
53.22
(44.24)
2017-18
134.31
45.74
(41.19)
2018-19
20.01
16.71
–
2017-18
21.51
16.48
–
2018-19
3.14
24.22
–
2017-18
2017-18
3.68 136.98 $ 116.19 $
22.00
–
314.71
(314.71)
280.26
(280.26)
Trust-managed
provident fund plan
2018-19
5.74
(24.87)
–
–
–
–
(18.86)
(14.02)
28.77
–
–
1.29
(2.76)
–
1.22
(1.19)
191.55
21.00
3.30
(5.40)
0.05
(34.82)
(0.70)
–
–
(0.19)
–
(0.30)
(0.81)
136.99
–
–
–
–
–
(0.01)
31.36
–
–
–
–
–
(0.02)
2.45
4.57
0.63
–
–
–
–
–
–
32.56
3.75
–
–
–
–
–
–
–
18.86
–
14.02
–
–
–
–
–
29.43
–
–
–
–
136.98
–
–
–
–
116.19
Notes forming part of the Consolidated Financial statements (contd.)
Note [45] (contd.)
Particulars
I.
Amount included in “employee benefits
Gratuity plan
Post-retirement medical
benefit plan
Pension plan
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
v crore
Trust-managed
provident fund plan
2018-19
2017-18
expense”
152.65
140.83
21.76
22.60
3.77
3.68
136.98
116.19
II. Amount included as part of
“manufacturing, construction and
operating expenses”
Amount included as part of “finance cost”
III.
IV. Amount included as part of “Other
comprehensive income”
Total (I+II+III+IV)
Actual return on plan assets
0.31
7.47
0.21
0.47
31.12
191.55
38.50
(4.52)
136.99
66.06
–
15.00
(5.40)
31.36
–
–
14.67
(34.82)
2.45
–
–
24.22
4.57
32.56
–
–
22.00
3.75
29.43
–
–
–
–
–
–
136.98
333.57
–
116.19
294.28
(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
31-3-2019
As at
31-3-2018
Post-retirement medical
benefit plan
As at
31-3-2019
As at
31-3-2018
Pension plan
As at
31-3-2019
As at
31-3-2018
v crore
Trust-managed provident
fund plan
As at
31-3-2019
As at
31-3-2018
Opening balance of the present value of
defined benefit obligation
Add: Current service cost
Add: Interest cost
Add: Contribution by plan participants
i)
ii)
iii)
Employer
Employee
Transfer-in/(out)
Add/(less): 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
defined benefit obligation
892.09
149.50
53.22
844.16
134.31
45.74
222.16
20.01
16.71
234.55
21.51
16.48
326.68
3.14
24.22
317.41 3633.31
3.68
22.00
136.98 $
314.71
3318.32
116.19 $
280.26
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
352.78
–
–
295.03
–
6.32
19.82
(11.43)
(30.16)
(15.00)
–
11.66
(16.61)
8.40
(18.66)
7.60
(15.48)
–
–
–
–
10.79
(109.45)
–
17.79
(168.71)
3.30
(2.37)
(11.85)
–
14.00
(12.02)
(0.70)
11.96
(21.96)
0.64
19.23
(20.16)
–
–
(477.56)
–
–
(482.35)
–
(15.31)
0.19
1.48
7.56
6.28
5.49
–
0.52
–
–
–
–
–
(2.84)
–
–
–
–
–
–
–
–
–
–
128.71
–
–
1.49
105.86
–
–
–
1008.05
892.09
241.63
222.16
337.28
326.68
4090.42
3633.31
491
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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/(less): transfer in/(out)
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
less: settlements
Closing balance of the plan assets
v crore
Gratuity plan
trust-managed provident
fund plan
as at
31-3-2019
as at
31-3-2018
as at
31-3-2019
as at
31-3-2018
610.99
44.24
615.72
41.19
3676.19
314.71
3348.38
280.26
(5.74)
–
95.13
–
–
–
–
(95.18)
–
(0.16)
649.28
24.87
–
73.90
–
–
–
(3.70)
(140.99)
–
–
610.99
18.86
–
132.76
–
334.82
128.98
–
(477.56)
0.18
(0.34)
4128.60
14.02
–
116.32
–
295.44
108.71
(4.43)
(482.35)
(0.16)
–
3676.19
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 trusts formed by the Parent Company and a few subsidiaries manage the investments of provident funds and
gratuity funds. interest income on plan assets is determined by multiplying the fair value of the plan assets by the
discount rate determined at the start of the annual reporting period.
the Group expects to fund R 111.90 crore (previous year: R 93.63 crore) towards its gratuity plan and R 143.83 crore
(previous year: R 122.04 crore) towards its trust-managed provident fund plan during the year 2019-20.
$
Employer’s contribution to provident fund.
(v) the fair values of major categories of plan assets are as follows:
Particulars
As at 31-3-2019
As at 31-3-2018
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
Quoted
–
15.81
193.00
162.66
77.63
8.41
7.20
–
Unquoted
1.78
–
–
–
–
–
9.88
4.75
Total
1.78
15.81
193.00
162.66
77.63
8.41
17.08
4.75
Quoted
–
16.51
82.54
128.18
66.35
–
4.96
–
Unquoted
1.68
–
99.91
–
–
55.59
–
0.29
v crore
Total
1.68
16.51
182.45
128.18
66.35
55.59
4.96
0.29
492
Notes forming part of the Consolidated Financial statements (contd.)
Note [45] (contd.)
Particulars
As at 31-3-2019
As at 31-3-2018
Gratuity plan
Special deposit scheme
Fixed deposits
Insurer managed fund
Other (payables)/receivables
Closing balance of the plan assets
Quoted
–
–
–
–
464.71
Unquoted
1.49
1.85
163.17
1.65
184.57
Total
1.49
1.85
163.17
1.65
649.28
Quoted
–
–
–
–
298.54
Unquoted
2.54
1.47
147.80
3.17
312.45
Particulars
As at 31-3-2019
As at 31-3-2018
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
Other (payables)/receivables
Closing balance of the plan assets
Quoted
–
0.06
831.42
956.71
988.14
890.85
56.48
0.34
–
–
–
7.99
3731.99
Unquoted
7.28
–
–
–
–
–
75.28
34.09
1.98
271.20
2.60
4.18
396.61
Total
7.28
0.06
831.42
956.71
988.14
890.85
131.76
34.43
1.98
271.20
2.60
12.17
4128.60
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
v crore
Total
2.54
1.47
147.80
3.17
610.99
v crore
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
(vi) the average duration (years) 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 31-3-2019 as at 31-3-2018
6.30
14.86
7.50
6.02
14.60
7.70
(vii) Principal actuarial assumptions at the Balance sheet date (expressed as weighted average):
Plans
as at 31-3-2019 as at 31-3-2018
(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
7.31%
7.31%
7.31%
5.00%
5.13%
7.00%
7.56%
7.56%
7.56%
5.00%
5.03%
5.99%
493
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [45] (contd.)
(d) attrition Rate:
(a) For gratuity plan, the attrition rate varies from 1% to 25% (previous year: 1% to 25%) for various age groups.
(b) For pension plan, the attrition rate varies from 0% to 2% (previous year: 0% to 2%) for various age groups.
(c)
For post-retirement medical benefit plan, the attrition rate varies from 1% to 11% (previous year: 1% to 12%) 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 loss.
(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
Pension plan
effect of 1% increase
effect of 1% decrease
as at
31-3-2019
as at
31-3-2018
as at
31-3-2019
as at
31-3-2018
v crore
78.92
(69.88)
26.97
(33.66)
81.24
(70.36)
24.44
(29.80)
(71.48)
78.62
(22.03)
41.66
(71.74)
81.31
(19.96)
37.71
impact of change in discount rate
(24.45)
(24.29)
28.13
28.04
(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 are legally separate from the Parent Company and the material domestic
subsidiary companies. the trustees nominated by the group are responsible for the administration of the plans. there
are no minimum funding requirements of these plans. the funding of these plans is based on gratuity fund’s actuarial
measurement framework set out in the funding policies of the plan. these actuarial measurements are similar compared
to the assumptions set out in (vii) supra. an insignificant portion of the gratuity plan of the group attributable to
subsidiary companies is administered by the respective subsidiary companies and is funded through insurer managed
funds. a part of the gratuity plan is unfunded and managed within the group. Further, the unfunded portion also
includes amounts payable in respect of the Group’s foreign operations which result in gratuity payable to employees
engaged as per the local laws of country of operation. employees do not contribute to any of these plans.
(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.
494
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 31-3-2019
Inter-segment
External
For the year ended 31-3-2018
Total
External Inter-segment
Total
v crore
Revenue
Infrastructure
Power
Heavy Engineering
Defence Engineering
Electrical & Automation [Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Elimination
Total
Segment result [Profit/(Loss) before interest and tax]
Infrastructure
Power
Heavy Engineering
Defence Engineering
Electrical & Automation [Note 42(c)]
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
Total
72418.05
3971.50
2174.22
3751.96
5786.81
15131.58
14371.36
12637.69
5068.04
5695.88
–
141007.09
785.71
11.59
339.44
97.28
306.82
44.65
181.74
–
–
239.10
(2006.33)
–
73203.76
3983.09
2513.66
3849.24
6093.63
15176.23
14553.10
12637.69
5068.04
5934.98
(2006.33)
141007.09
5388.77
129.88
487.01
472.22
850.09
1178.10
3084.20
3052.64
314.35
776.20
15733.46
62286.62
6200.58
1391.60
3214.44
5209.03
11735.83
11187.79
10063.75
4294.05
4278.41
–
119862.10
1130.29
7.65
243.47
5.62
299.24
23.80
169.64
–
–
165.79
(2045.50)
63416.91
6208.23
1635.07
3220.06
5508.27
11759.63
11357.43
10063.75
4294.05
4444.20
(2045.50)
– 119862.10
5440.08
163.99
205.21
120.38
668.82
771.81
2146.51
1440.64
196.40
1182.57
12336.41
495
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [46]
(a)
information about Reportable segments (contd.)
Particulars
Inter-segment margins on capital jobs
Finance costs
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 interests in subsidiaries
Net profit after tax, non-controlling interests and
share in profit/(loss) of joint ventures/associates
Particulars
infrastructure
Power
Heavy engineering
defence engineering
electrical & automation [note 42(c)]
Hydrocarbon
it & technology services
Financial services
developmental Projects
others
segment total
For the year ended 31-3-2019
Inter-segment
External
Total
(5.50)
(1806.04)
659.00
14580.92
(4693.33)
349.99
10237.58
(21.00)
(1311.45)
8905.13
For the year ended 31-3-2018
v crore
External Inter-segment
Total
12.90
(1538.52)
828.37
11639.16
(3732.27)
533.40
8440.29
(435.86)
(634.57)
7369.86
v crore
segment assets
segment liabilities
as at
31-3-2019
as at
31-3-2018
as at
31-3-2019
as at
31-3-2018
74848.71
65485.32
50908.92
43235.53
6030.51
4614.54
7826.76
4458.66
6491.79
3962.73
7734.33
4449.55
4838.09
2111.79
4964.28
2178.18
12224.57
9226.17
10096.59
9647.21
7568.14
2575.96
5647.48
1541.48
4618.63
2139.88
7841.04
2187.10
104842.19
86088.63
92973.64
76390.47
31191.27
30375.07
9560.38
11109.86
9819.89
10576.54
3936.13
2975.92
265504.31
231958.27
184143.96
157687.39
Corporate unallocated assets/liabilities
15890.10
14329.15
28049.54
28495.10
inter-segment assets/liabilities
(2260.34)
(2409.97)
(2260.34)
(2409.97)
Consolidated total assets/liabilities
279134.07
243877.45
209933.16
183772.52
496
Notes forming part of the Consolidated Financial statements (contd.)
Note [46]
(a)
information about Reportable segments (contd.)
Particulars
infrastructure
Power
Heavy engineering
defence engineering
electrical & automation [note 42(c)]
Hydrocarbon
it & technology services
Financial services
developmental Projects
others
segment total
Unallocable
Consolidated total
v crore
Depreciation, amortization,
impairment & obsolescence
included in segment expense
non-cash expenses other
than depreciation included in
segment expense
2018-19
764.59
2017-18
683.64
2018-19
46.40
2017-18
22.86
47.16
44.95
134.03
161.63
151.83
251.34
49.01
207.22
96.77
1908.53
175.47
2084.00
43.56
87.47
141.44
152.74
132.41
244.43
51.23
73.68
115.42
1726.02
202.71
1928.73
2.99
2.19
2.59
6.37
7.82
7.25
68.15
–
1.46
145.22
12.75
157.97
1.40
1.06
0.95
3.85
3.66
8.47
29.43
–
1.29
72.97
38.42
111.39
note : impairment loss included in segment expense: Heavy engineering segment R nil (previous year: R 31.88 crore),
developmental Projects segment R 127.94 crore (previous year: R nil), other segment R 2.08 crore (previous year: R 27.69 crore)
and Corporate Unallocated R 146.93 crore (previous year: R 84.32 crore).
Particulars
infrastructure
Power
Heavy engineering
defence engineering
electrical & automation
[note 42(c)]
Hydrocarbon
it & technology services
Financial services
developmental Projects
others
segment total
Unallocable
inter-segment
Consolidated total
interest income included in
segment income
Finance costs included in
segment expense
v crore
Profit or (loss) of associates
and joint ventures accounted
applying equity method not
included in segment result
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2.95
297.87
236.90
0.96
2.44
6.37
–
–
6.61
244.92
5.20
286.25
1.17
66.57
618.38
629.65
1.29
0.48
–
–
5.29
119.43
4.04
215.74
0.54
53.62
–
–
–
–
–
–
6859.46
599.54
–
–
–
–
–
–
5449.67
183.60
164.45
(156.81)
(227.96)
0.40
0.06
–
17.70
–
–
–
29.72
–
0.70
627.53
(90.38)
(392.85)
–
–
6.24
2.98
402.09
7756.87
6314.10
(38.29)
(420.46)
518.66
(297.87)
(236.90)
17.29
(15.40)
(347.45)
(255.08)
900.58
665.67
(73.37)
7385.63
(57.46)
6019.74
–
–
(21.00)
(435.86)
497
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [46]
(a)
information about Reportable segments (contd.)
Particulars
infrastructure
Power
Heavy engineering
defence 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
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)
additions to non-current assets
2018-19
2017-18
1251.62
62.96
76.76
219.15
258.30
386.99
667.31
860.12
2938.11
629.99
7351.31
228.58
(105.29)
7474.60
1516.19
133.40
41.25
229.40
202.16
399.29
512.16
351.39
2461.60
410.14
6256.98
457.28
(74.61)
6639.65
v crore
investment in associates and
joint ventures accounted
applying equity method
included in segment assets
as at
31-3-2019
4.70
933.37
–
6.36
–
394.60
–
–
1275.49
26.93
2641.45
0.84
–
2642.29
as at
31-3-2018
8.95
774.53
–
5.96
–
359.92
–
–
1310.94
20.73
2481.03
0.56
–
2481.59
v crore
Revenues by location of customers
2018-19
95898.05
8826.86
6575.22
3031.69
6306.93
1672.07
4146.69
14549.58
45109.04
141007.09
2017-18
80162.78
7355.33
8053.68
4485.12
3866.38
2174.35
5335.10
8429.36
39699.32
119862.10
v crore
non-current assets
Particulars
as at
31-3-2018
35096.97
1680.43
36777.40
(c) Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed
as at
31-3-2019
38648.64
2113.39
40762.03
india
Foreign countries
total
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.
498
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 group (a) that engage in business activities to earn revenues
and incur expenses (including transactions with any of the group’s other components); (b) whose operating results are
regularly reviewed by the Group’s Corporate executive management to make decisions about resource allocation and
performance assessment; and (c) for which discrete financial information is available.
the group has nine reportable segments [described under “segment composition”] which are the group’s independent
businesses. the nature of products and services offered by these businesses are different and are managed separately given
the different sets of technology and competency requirements. in arriving at the reportable segment, the seven 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, smart world &
communication projects and metallurgical & material handling systems.
power segment comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power
generation equipment with associated systems and/or balance-of-plant packages.
Heavy engineering segment comprises manufacture and supply of custom designed, engineered critical equipment
& systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, oil & Gas and thermal & nuclear
Power.
defence engineering segment comprises design, development, prototyping, serial production, delivery, commissioning
and through life-support of equipment, systems and platforms for defence and aerospace sectors. it also includes
defence shipbuilding comprising design, construction, commissioning, repair/refit and upgrades of naval and Coast
Guard vessels.
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 and wealth
management.
developmental projects segment comprises development, operation and maintenance of basic infrastructure projects,
toll and fare collection, power development, development and operation of port facilities (till the date of sale) and
providing related advisory services.
• others segment includes realty, 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, 2019.
499
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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) list of related parties:
(i) name of associates with whom transactions were carried out during the year :
Associate Companies:
1.
l&t-Chiyoda limited
3. magtorq Private limited
5.
ltidPl indVit Services Limited@@
2.
4.
6.
Feedback Infra Private Limited@
l&t Camp Facilities llC
larsen & toubro qatar & HBK Contracting Co. Wll
@ The Group has sold its stake on March 19, 2018
@@ w.e.f. August 14, 2018
(ii) name of joint ventures with whom transactions were carried out during the year :
Joint Venture Companies:
larsen & toubro electromech llC*
1.
3.
l&t-sargent & lundy limited
5.
l&t Halol-shamlaji tollway limited
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.
31.
33.
l&t Kobelco machinery Private limited
ltidPl indVit services limited#
l&t Hydrocarbon Caspian llC
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.
l&t deccan tollways limited
12.
14.
l&t samakhiali Gandhidham tollway limited
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.
32.
l&t transportation infrastructure limited
l&t mBda missile systems limited
l&t sambalpur- Rourkela tollway limited
l&t infrastructure development Projects limited
*Reclassified as subsidiary w.e.f. August 16, 2017 due to purchase of additional stake
** the Group has sold its stake on may 4, 2018
# Re-classified as associate w.e.f. august 14, 2018 on amendment of articles of association
(iii) name of post-employment benefit plans with whom transactions were carried out during the year :
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.
2.
larsen & toubro Gratuity Fund
l&t technology services limited employee Group Gratuity scheme
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 trust
1.
larsen & toubro limited senior officers’ superannuation scheme
500
Notes forming part of the Consolidated Financial statements (contd.)
Note [47] (contd.)
(iv) name of Key management Personnel (of the parent company) and their relatives with whom transactions were carried out during
the year:
(i) executive directors:
1. mr. s. n. subrahmanyan (Chief executive officer and
2. mr. R. shankar Raman (Whole-time director & Chief
managing director)#
3. mr. shailendra Roy (Whole-time director)
5. mr. m. V. satish (Whole-time director)
Financial officer)
4. mr. d. K. sen (Whole-time director)
6. mr. J.d. Patil (Whole-time director)**
(ii) independent/Non-executive directors:
1. mr. a.m. naik (Group Chairman)*
3. mr. subodh Bhargava
5. mr. Vikram singh mehta
7. mr. akhilesh Krishna Gupta
9. mr. thomas mathew t
11. mr. subramanian sarma
13. mr. sanjeev aga
15. mr. arvind Gupta ##
17. Mr. Hemant Bhargava @
2. mr. m. m. Chitale
4. mr. m. damodaran
6. mr. adil Zainulbhai
8. mrs. sunita sharma
10. mr. ajay shankar
12. mrs. naina lal Kidwai
14. mr. narayanan Kumar
16. mr. sushobhan sarkar ###
# w.e.f. July 1,2017 (Whole-time director till June 30, 2017)
* w.e.f. october 1, 2017 (Group executive Chairman till september 30, 2017)
## appointed w.e.f. July 1, 2017
@ Appointed w.e.f. May 28, 2018
**appointed w.e.f. July 1, 2017
### ceased w.e.f. may 2, 2018
(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) (a) sale of goods/contract revenue & services
Joint ventures, including:
l&t-mHPs Boilers Private limited
l&t infrastructure development Projects limited
l&t deccan tollways limited
associate:
l&t-Chiyoda limited
total
(B) Reversal of sale of goods/contract revenue & services
Joint ventures:
l&t deccan tollways limited
l&t samakhiali Gandhidham tollway limited
total
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
1210.35
1941.69
779.49
187.78
154.52
168.41
7.67
–
0.13
23.86
2.13
1385.93
362.45
149.50
194.04
134.85
87.37
0.17
–
0.28
156.61
2098.30
438.62
0.17
438.79
0.28
0.28
162.15
1372.50
184.85
0.13
184.98
25.99
25.99
501
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
Joint ventures:
0.54
0.01
l&t-mHPs turbine Generators Private limited
l&t special steels and Heavy Forgings Private limited
l&t sapura shipping Private limited
l&t Kobelco machinery Private limited
total
(iv)
sale of property, plant and equipment
Joint venture:
l&t-mHPs Boilers Private limited
Key management personnel:
mr. shailendra Roy
total
0.13
0.13
0.16
0.12
0.69
6.25
0.54
0.69
6.25
6.94
0.01
–
–
–
(v)
investments including subscription to equity shares and preference
shares (equity portion)
Joint ventures, including:
l&t special steels and Heavy Forgings Private limited
l&t-mHPs turbine Generators Private limited
l&t mBda missile systems limited
1.17
261.37
–
0.69
0.48
total
1.17
261.37
(vi)
subscription of preference share (debt portion)
Joint venture:
l&t special steels and Heavy Forgings Private limited
total
(vii)
inter-corporate deposits given/(repaid)-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-sargent & lundy limited
l&t sapura shipping Private limited
l&t-mHPs Boilers Private limited
associate:
l&t-Chiyoda limited
total
–
–
55.86
55.86
6.65
0.97
7.62
–
84.48
(28.62)
4.92
0.45
1.05
0.97
214.43
214.43
392.76
392.76
7.08
2.37
9.45
0.01
–
–
–
–
–
260.65
0.33
0.03
214.43
211.89
180.87
4.27
2.25
0.11
2.37
502
Notes forming part of the Consolidated Financial statements (contd.)
Note [47] (contd.)
sr.
no.
nature of transaction/relationship/major parties
(ix)
Rent paid, including lease rentals under leasing arrangements
Joint ventures, including:
l&t special steels and Heavy Forgings Private limited
total
(x)
Rent received, overheads recovered and miscellaneous income
Joint ventures , including:
l&t-mHPs Boilers Private limited
l&t-sargent & lundy limited
l&t-mHPs turbine Generators Private limited
associates, including:
l&t-Chiyoda limited
Key management personnel:
mr. d. K. sen
total
(xi) (a) Charges incurred for deputation of employees from related parties
Joint venture:
l&t infrastructure development Projects limited
total
(B) Charges recovered for deputation of employees to related parties
Joint ventures, including:
l&t infrastructure development Projects limited
l&t special steels and Heavy Forgings Private limited
l&t sapura shipping Private limited
associate:
l&t-Chiyoda limited
total
(xii) dividend received
Joint ventures:
l&t-mHPs Boilers Private limited
l&t-sargent & lundy limited
associate:
Feedback infra Private limited
total
(xiii) Commission received, including those under agency arrangements
Joint ventures, including:
l&t Kobelco machinery Private limited
total
(xiv) Guarantee charges recovered from
Joint ventures:
l&t-mHPs Boilers Private limited
l&t-mHPs turbine Generators Private limited
total
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
1.24
1.24
79.40
23.20
0.03
102.63
–
–
7.71
12.88
20.59
19.44
–
19.44
3.80
3.80
0.52
0.52
1.20
35.10
11.77
8.04
23.20
0.03
–
1.62
1.35
4.13
12.88
11.94
7.50
–
3.75
0.02
0.50
–
–
92.28
23.55
0.08
115.91
0.04
0.04
9.94
15.81
25.75
–
0.66
0.66
2.00
2.00
0.50
0.50
–
40.99
13.60
8.81
23.52
0.08
0.04
2.17
1.97
5.28
15.81
–
–
0.66
2.00
0.07
0.43
503
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [47] (contd.)
sr.
no.
nature of transaction/relationship/major parties
(xv)
interest paid to
Joint venture:
l&t infrastructure development Projects limited
l&t-mHPs turbine Generators Private limited
total
(xvi)
interest received from
Joint ventures, including:
l&t special steels and Heavy Forgings Private limited
associate:
l&t Camp Facilities llC
total
(xvii) amount written off as bad debts
Joint venture:
PnG tollway limited
total
(xviii) amount recognised/(reversed) in P&l as provision towards bad and
doubtful debts (including expected credit loss on account of delay)
Joint ventures, including:
l&t special steels and Heavy Forgings Private limited
l&t Howden Private limited
l&t-mHPs Boilers Private limited
l&t samakhiali Gandhidham tollway limited
total
(xix) Guarantees given on behalf of
Joint venture :
l&t-mHPs turbine Generators Private limited
total
(xx)
Rent deposit returned:
Key management personnel:
mr. d.K. sen
total
(xxi) Contribution to post employment benefit plans
(a)
towards employer’s contribution to provident fund trusts, including:
larsen & toubro officers & supervisory staff Provident Fund
total
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
v crore
1.81
1.81
111.86
0.26
112.12
25.08
25.08
(0.38)
(0.38)
–
–
0.08
0.08
143.11
143.11
–
1.81
106.83
0.26
25.08
(0.09)
(0.33)
1.55
(1.54)
–
0.08
130.58
33.06
33.06
106.90
0.20
107.10
–
–
22.69
22.69
54.26
54.26
–
–
115.40
115.40
33.06
–
102.05
0.20
–
(0.03)
0.46
21.66
0.01
54.26
–
103.95
504
Notes forming part of the Consolidated Financial statements (contd.)
Note [47] (contd.)
sr.
no.
(B)
nature of transaction/relationship/major parties
towards employer’s contribution to gratuity trusts, including:
larsen & toubro officers & supervisors Gratuity Fund
l&t Hydrocarbon engineering ltd Group Gratuity scheme
l&t technology services limited employee Group Gratuity scheme
total
(C)
towards advance contribution to/(refund from) gratuity trusts:
larsen & toubro officers & supervisors Gratuity Fund
larsen & toubro Gratuity Fund
total
(d)
towards employer’s contribution to superannuation trust:
larsen & toubro limited senior officers’ superannuation scheme
total
v crore
2018-19
2017-18
amount amounts for
major parties
amount amounts for
major parties
59.56
24.06
43.35
0.85
13.03
–
–
9.78
5.01
9.86
7.63
(142.30)
(32.70)
11.29
24.06
(175.00)
(175.00)
11.29
11.29
59.56
–
–
9.78
9.78
“major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective
period.
(xxii) Compensation 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*
Independent/Non Executive Directors:
(a) Mr. A.M. Naik (Group Chairman
w.e.f. October 1, 2017)
(b) Mr. Subramanian Sarma
(c) Other Independent/Non-Executive
Directors
Total
^ Includes gratuity R 55.04 crore
* Appointed w.e.f. July 1, 2017
Short-term
employee
benefits
2018-19
Post-
employment
benefits
Other Long
term benefit
Total
Short-term
employee
benefits
2017-18
Post-
employment
benefits
Other long
term benefit
v crore
Total
–
–
21.28
14.06
9.16
5.54
7.43
6.51
5.67
3.75
2.33
1.46
1.95
1.71
9.21
3.00 #
14.00
6.20
–
–
93.39
19.87
–
–
–
–
–
–
–
–
–
–
–
–
11.58
56.80 ^ 19.38 ^^
87.76
26.95
17.81
11.49
7.00
9.38
8.22
13.99
9.16
7.96
6.37
5.86
3.14
3.70
2.42
1.83
1.69
1.52
0.81
12.21
4.56
1.50 #
14.00
6.20
11.28
4.79
–
–
–
–
–
–
–
–
–
–
–
17.69
11.58
9.79
8.06
7.38
3.95
6.06
11.28
4.79
113.26
78.69
70.27
19.38
168.34
^^ Represents encashment of past service accumulated leave
# Represents pension
505
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [47] (contd.)
(c) amount due to/from related parties (including commitments):
sr.
no.
Category of balance/relationship/major parties
(i)
accounts receivable
Joint ventures, including:
l&t-mHPs Boilers Private limited
l&t infrastructure development Projects limited
Krishnagiri Walajahpet tollway limited
l&t samakhiali Gandhidham tollway limited
l&t deccan tollways 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:
l&t-Chiyoda limited
magtorq Private limited
total
(iii)
investment in debt securities [including preference shares (debt
portion)]
Joint ventures:
l&t special steels and Heavy Forgings Private limited
l&t infrastructure development Projects limited
Kudgi transmission limited
total
(iv)
loans & advances recoverable
Joint ventures, including:
l&t special steels and Heavy Forgings Private limited
l&t sapura shipping Private limited
associates, including:
l&t Camp Facilities llC
l&t-Chiyoda limited
total
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
267.98
297.84
127.37
53.17
–
0.05
75.62
0.01
0.01
267.99
0.15
297.99
1113.57
1148.30
28.83
463.50
506.61
23.88
5.35
19.07
1142.40
1167.37
955.12
987.58
955.12
1852.69
33.54
213.17
253.06
488.89
1539.83
167.38
19.56
11.54
987.58
1819.92
24.40
1886.23
1844.32
86.91
40.70
42.68
38.19
33.22
0.15
276.49
700.47
15.45
3.79
217.73
260.36
509.49
1400.00
191.60
18.54
6.26
(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
7.15
7.15
6.97
17.00
17.00
17.00
506
Notes forming part of the Consolidated Financial statements (contd.)
Note [47] (contd.)
sr.
no.
Category of balance/relationship/major parties
(vi) due to directors #:
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
Key management personnel, including:
66.27
58.10
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. subramanian sarma
total
Post-employment benefit plans
(vii)
(a) due to provident fund trusts, including:
larsen & toubro officers & supervisory staff Provident Fund
total
(B)
due to gratuity trusts:
larsen & toubro officers & supervisors Gratuity Fund
larsen & toubro Gratuity Fund
total
(C) due to superannuation trust:
larsen & toubro limited senior officers’ superannuation scheme
total
(viii) Capital commitment given
Joint ventures:
l&t special steels and Heavy Forgings Private limited
l&t-mHPs turbine Generators Private limited
66.27
28.28
28.28
60.92
60.92
7.99
7.99
34.07
1.75
18.60
12.15
7.05
4.20
6.00
5.30
6.68
24.77
49.70
11.22
7.99
0.02
34.05
11.77
11.58
7.39
5.32
5.19
4.50
2.28
6.28
21.65
36.31
8.75
6.74
0.13
–
58.10
24.51
24.51
45.06
45.06
6.74
6.74
0.13
total
34.07
0.13
507
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [47] (contd.)
sr.
no.
(ix)
Category of balance/relationship/major parties
Revenue commitment given
Joint ventures, including:
l&t-mHPs Boilers Private limited
l&t-mHPs turbine Generators Private limited
l&t Howden Private limited
associates, including:
l&t-Chiyoda limited
total
(x)
Revenue commitment received
Joint ventures, including:
l&t infrastructure development Projects limited
Krishnagiri thopur toll Road limited
l&t BPP tollway limited
l&t samakhiali Gandhidham tollway limited
l&t deccan tollways limited
l&t mBda missile systems limited
l&t-Gulf Private 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
(xii) Guarantees given on behalf of
Joint ventures:
as at 31-3-2019
as at 31-3-2018
amount amounts for
major parties
amount amounts for
major parties
v crore
401.52
1237.63
207.56
42.63
103.60
186.89
–
–
–
–
–
69.19
18.77
23.37
–
205.99
607.51
88.31
88.31
23.55
23.55
456.24
115.07
1352.70
76.10
76.10
52.73
52.73
508.34
667.58
394.67
–
111.24
13.70
13.63
20.43
13.08
15.24
–
–
21.84
25.08
l&t-mHPs Boilers Private limited
l&t-mHPs turbine Generators Private limited
28.93
427.31
89.39
418.95
total
456.24
508.34
“major parties” denote entities accounting for 10% or more of the aggregate for that category of balance during respective
period.
# includes commission due to other non-executive directors R 4.54 crore (as at 31-3-2018: 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.
508
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
31-3-2019
247.96
1324.17
7495.57
9067.70
as at
31-3-2018
307.42
937.55
8128.44
9373.41
minimum lease Payments
as at
31-3-2019
1252.22
5067.24
15739.76
22059.22
12991.52
9067.70
as at
31-3-2018
1333.70
4814.95
17251.74
23400.39
14026.98
9373.41
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
31-3-2019
88.69
145.40
7.29
241.38
R crore
as at
31-3-2018
89.75
97.44
10.42
197.61
a. assets acquired on finance lease comprises of plant & equipment and land. the leases have a primary period which is
fixed and non-cancellable. the Group has an option to renew the lease for secondary period.
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
31-3-2019
–
0.02
0.14
0.16
0.10
0.06
as at
31-3-2018
0.06
0.02
0.28
0.36
0.10
0.26
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
31-3-2019
–
–
0.06
0.06
as at
31-3-2018
0.06
–
0.20
0.26
509
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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.
(i)
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
31-3-2019
281.97
797.64
234.55
1314.16
R crore
as at
31-3-2018
202.78
585.07
131.06
918.91
(ii) 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 583.10 crore (previous year: R 425.48 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 “earnings per share’’:
Particulars
2018-19
2017-18
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
8905.13
1,40,20,87,033
63.51
7369.86
1,40,06,13,951
52.62
8905.13
1,40,20,87,033
7369.86
1,40,06,13,951
24,57,688
1,40,45,44,721
63.40
2.00
35,69,417
1,40,41,83,368
52.49
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.
Weighted average number of potential equity shares on account of conversion of foreign currency
convertible bonds
95,20,455
95,20,455
Particulars
2018-19
2017-18
510
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.
(a)
Particulars
Consolidated statement of Profit and loss:
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/(income) reported in the consolidated statement of
profit or loss [(i)+(ii)]
(b) other Comprehensive income 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 gain/(loss) on cash flow hedges
on gain/(loss) on fair value of debt securities
on foreign currency translation
(c)
income tax expense/(income) reported in the other comprehensive income [(i)+(ii)]
Retained earnings:
deferred tax
income tax expense/(income) reported in retained earnings
2018-19
v crore
2017-18
5002.74
(568.96)
259.55
4693.33
3609.98
(42.62)
164.91
3732.27
(349.72)
(509.37)
(0.27)
–
(349.99)
(13.39)
(10.64)
(533.40)
4343.34
3198.87
(11.37)
(11.37)
0.39
0.39
(88.36)
0.49
(87.87)
9.31
(18.33)
(7.61)
2.76
(13.87)
(112.72)
(606.15)
(606.15)
5.60
5.60
(0.13)
(0.13)
(30.00)
(0.49)
(30.49)
0.52
38.38
2.05
–
40.95
15.93
–
–
511
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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 [(c)=(a)*(b)]
(i)
(ii)
tax on income exempt from tax :
dividend income and interest on tax free bonds
tax on expenses not tax deductible :
(a) Corporate social Responsibility expenses
(B) expenses in relation to exempt income
(C) tax on employee perquisites borne by the Group
(iii) Weighted deduction on Research & development expenditure and deduction u/s 80 ia
(iv)
tax effect on impairment and fair valuation losses recognised on which deferred tax
asset is not recognised
effect of previously unrecognised tax losses and unutilised tax credits 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)
(viii) effect on deferred tax due to change in income tax rate
(ix) effect of tax benefit on business combination under common control
(x)
total effect of tax adjustments [(i) to (x)]
tax expense recognised during the year [(e)=(c)-(d)]
effective tax Rate [(f)=(e)/(a)]
tax effect on various other items
(e)
(f)
2018-19
14580.92
34.944%
5095.16
v crore
2017-18
11639.16
34.608%
4028.08
(69.75)
(937.39)
60.10
48.58
1.57
(151.25)
45.76
85.15
2.37
(402.85)
168.15
257.28
(774.91)
580.92
(321.18)
–
(228.35)
(65.70)
(751.82)
4343.34
29.79%
(19.4)
749.94
(258.75)
(10.64)
(226.15)
(114.53)
(829.21)
3198.87
27.48%
(c)
(i) Unused tax losses and unused tax credits for which no deferred tax asset is recognised in Balance sheet
Particulars
as at 31-3-2019
v crore
expiry year
as at 31-3-2018
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
3710.67
7082.48
3901.55
199.12
14893.82
FY 2020-34
FY 2020-27
FY 2029-34
2800.85
7176.81
4297.09
230.83
14505.58
FY 2019-34
FY 2019-26
FY 2028-33
(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
512
as at
31-3-2019
783.94
v crore
as at
31-3-2018
1023.29
2491.23
3275.17
2335.48
3358.77
Notes forming part of the Consolidated Financial statements (contd.)
Note [50] (contd.)
(d) major components of deferred tax liabilities and deferred tax assets:
Particulars
Deferred tax
liabilities/
(assets)
as at
31-3-2018
Charge/
(credit) to
Retained
Earnings
Charge/
(credit) to
Statement
of Profit
and Loss
Effect
due to
acquisition/
disposal
Charge/(credit)
to other
comprehensive
income
Exchange
Difference
v crore
Deferred tax
liabilities/
(assets)
as at
31-3-2019
(Credit)
to Hedge
Reserve
(other than
through
OCI)
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, loans & advances
and contract assets
- 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):
1681.60
–
(18.03)
138.11
–
19.10
–
–
–
6.30
(69.92)
(62.55)
124.93
(355.14)
1589.50
(951.58)
637.92
(2218.23)
(249.19)
(237.65)
(345.82)
(95.49)
(565.68)
–
–
–
–
260.48
(52.40)
8.01
(23.69)
(228.16)
(10.82)
–
(0.39)
–
–
–
19.95
19.95
–
(1.27)
54.78
–
–
–
–
–
(60.52)
2.76
(57.76)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1663.57
–
157.21
–
70.71
0.82
0.82
(401.53)
1489.96
(1178.83)
311.13
–
–
–
–
–
(2206.94)
(291.32)
(283.03)
(119.18)
(793.84)
51.49
(0.20)
–
40.08
(13.18)
–
27.95
(0.11)
–
(219.63)
(356.96)
(279.24)
(3706.50)
(606.15)
(287.44)
(93.49)
(40.09)
(7.21)
44.28
–
–
–
14.66
(1.66)
(958.19)
(0.20)
(1.66)
(4597.76)
1178.83
(3418.93)
Offsetting of deferred tax (assets) with deferred
tax liabilities
Net Deferred tax (assets)
951.58
(2754.92)
Net deferred tax liability/(assets)
(2117.00)
(606.15)
(349.99)
(20.14)
(13.48)
(0.20)
(0.84)
(3107.80)
513
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [51]
disclosure pursuant to ind as 103 “Business Combinations”:
(a) acquisition of Graphene Group
(i) on october 15, 2018, the Group has acquired 100% stake in Graphene semiconductor services Private limited, a Bengaluru
based company, along-with its fully owned subsidiary viz. Graphene Solutions PTE Ltd., Graphene Solutions SDN.BHD,
Graphene solutions taiwan limited and seastar labs Private limited, operating in the it & technology services segment.
(ii) assets acquired and liabilities recognised on the date of acquisition are as follows:
Graphene semiconductor services Private
limited (Consolidated)
v crore
assets
non-current assets
trade names
Customer Relationships
deferred tax assets
other non-current assets
Current assets
trade receivables
Cash and bank balances
other current assets
total assets
liabilities
non-current liabilities
deferred tax liability
other non- current liabilities
Current liabilities
trade payables
other current liabilities
total liabilities
net assets acquired
(iii) Calculation of Goodwill:
Purchase consideration:
Cash (a)
Contingent consideration payable over one year (B)
Purchase consideration paid (C=a+B)
less: net assets acquired
Goodwill
514
3.86
35.52
1.51
2.33
12.18
8.68
5.61
13.56
0.39
0.79
15.31
43.22
26.47
69.69
13.95
16.10
30.05
39.64
v crore
Graphene semiconductor services
Private limited (Consolidated)
66.72
11.50
78.22
39.64
38.58
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.
(v) the Group has recognised contingent consideration in accordance with terms of share purchase and subscription agreement.
the maximum contingent consideration of R 13.00 crore is payable to the promoters of Graphene upon achievement of
specified financial targets. the fair value of contingent consideration is determined by assigning probabilities of achievement
of the targets.
(vi) these entities have reported revenue of R 38.51 crore and profit after tax of R 5.15 crore from the date of acquisition till
march 31, 2019. Had the entities been acquired from april 1, 2018, they would have reported revenue of R 84.20 crore and
profit after tax of R 11.30 crore during 2018-19.
(vii) trade receivables acquired have been substantially collected during the year.
(b) acquisition of Ruletronics Group
(i) on February 01, 2019, the Group has acquired 100% stake in Ruletronics systems Private limited, india, Ruletronics limited,
UK and Ruletronics systems inc, Usa, operating in the it & technology services segment.
(ii) assets acquired and liabilities recognised on the date of acquisition are as follows:
Ruletronics systems
Private limited, india
Ruletronics limited, UK Ruletronics systems inc,
v crore
assets
non-current assets
Property, Plant & equipment
other non-current assets
Current assets
trade receivables
Cash and bank balances
other current assets
total assets
liabilities
non-current liabilities
deferred tax liability
Current liabilities
trade payables
other current liabilities
total liabilities
net assets acquired
(iii) Calculation of Goodwill:
0.26
0.003
3.13
0.40
2.17
0.28
1.41
0.26
5.70
5.96
0.02
1.69
1.71
4.25
0.07
–
5.75
3.64
0.85
1.42
2.57
0.07
10.24
10.31
–
3.99
3.99
6.32
Usa
0.04
–
4.24
0.27
–
0.42
0.15
0.04
4.51
4.55
–
0.57
0.57
3.98
v crore
Ruletronics systems
Private limited, india
Ruletronics limited, UK Ruletronics systems inc,
Usa
Purchase consideration:
Cash (a)
deferred consideration payable over
future years (B)
Present Value of Contingent consideration
payable over future years (C)
Purchase consideration paid (d=a+B+C)
less: net assets acquired
Goodwill
2.84
2.54
–
5.38
4.25
1.13
13.66
–
15.48
29.14
6.32
22.82
7.13
–
12.92
20.05
3.98
16.07
515
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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.
(v) the Group has recognised contingent consideration in accordance with the terms of the share purchase agreement. the
maximum contingent consideration of R 32.81 crore is payable to the promoters of Ruletronics upon achievement of
the specified financial targets. the fair value of the contingent consideration is determined by assigning probabilities of
achievement of targets.
(vi) these entities have reported revenue of R 7.56 crore and profit after tax of R 0.34 crore from the date of acquisition till
march 31, 2019. Had the entities been acquired from april 1, 2018, they would have reported revenue of R 36.46 crore and
profit after tax of R 7.10 crore during 2018-19.
(vii) out of R 13.12 crore trade receivables acquired, R 6.95 crore have been collected during the year.
(c) acquisition of nielsen+Partner Group
(i) on February 01, 2019, the Group has acquired 100% stake in nielsen+Partner Unternehmensberater GmbH, Germany,
along-with its fully owned subsidiaries viz. Nielsen+Partner Unternehmensberater AG, Switzerland, Nielsen+Partner Pte.
ltd., singapore, nielsen+Partner s.a. luxembourg, nielsen&Partner Pty ltd., australia, nielsen&Partner Co. ltd., thailand,
operating in the it & technology services
(ii) assets acquired and liabilities recognised on the date of acquisition are as follows:
nielsen+Partner (Consolidated)
v crore
assets
non-current assets
Customer Relationships
Property, Plant & equipment
other non-current assets
Current assets
trade receivables
Cash and bank balances
other current assets
total assets
liabilities
non-current liabilities
deferred tax liability
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: net assets acquired
Goodwill
516
18.29
0.58
2.42
24.39
20.06
1.18
3.76
16.36
21.29
45.63
66.92
6.39
20.12
26.51
40.41
v crore
nielsen+Partner (Consolidated)
186.37
35.11
221.48
40.41
181.07
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.
(v) the Group has recognised contingent consideration in accordance with the terms of the share purchase agreement. the
maximum contingent consideration of R 40.26 crore is payable to the promoters of Nielsen+Partner upon achievement of
the specified financial targets. the fair value of the contingent consideration is determined by assigning probabilities of
achievement of targets.
(vi) these entities have reported revenue of R 18.77 crore and profit after tax of R 2.13 crore from the date of acquisition till
march 31, 2019. Had the entities been acquired from april 1, 2018, they would have reported revenue of R 119.18 crore and
profit after tax of R 19.00 crore during 2018-19.
(vii) out of R 24.39 crore of trade receivables acquired, R 16.31 crore have been collected during the year.
Note [52]
disclosure 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, 2019:
assets/disposal Group
non-current assets (l&t Financial Consultants limited)
Current assets (l&t Vision Ventures limited)
Reportable segment
Financial services
others
(b) 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
(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:
Provisions
tax liabilities (net)
other liabilities
total
v crore
as at
31-3-2019
as at
31-3-2018
1.17
1464.24
–
–
–
–
6.24
7.41
–
–
3.20
3.20
0.58
0.48
2.50
0.18
44.45
1512.43
0.90
1.38
1459.69
1461.97
517
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [53]
disclosure pursuant to ind as 37 “Provisions, Contingent liabilities and Contingent assets”
(a) movement in provisions:
Sr.
No.
Particulars
1 Balance as at 1-4-2018
2
3
4
5
6
Additional provision during the year
Provision used during the year
Unused provision reversed during the period
Translation adjustments
Additional provision for unwinding of interest
and change in discount rate
Balance as at 31-3-2019 (1 to 6)
7
Product
warranties
Expected tax
liability in
respect of
indirect taxes
Litigation
related
obligations
45.09
37.04
(21.74)
(4.22)
6.91
210.39
41.33
(4.13)
(4.04)
–
0.63
63.71
–
243.55
9.15
50.00
–
–
–
0.38
59.53
Class of provisions
Contractual
rectification
cost-
Construction
contracts
374.62
429.59
–
(276.39)
5.03
Provision
towards
constructive
obligation
458.24
136.17
–
–
–
v crore
Others*
Total
76.39
2.61
(58.78)
(16.50)
23.73
1173.88
696.74
(84.65)
(301.15)
35.67
–
532.85
–
594.41
–
27.45
1.01
1521.50
* includes liquidated damages/backwork charges adjusted against revenue/manufacturing, construction and operating expenses during the year.
Break up of provisions:
Particulars
Balance as at 1-4-2018
Balance as at 31-3-2019
(b) nature of provisions:
note 24
0.93
7.73
note 31
1172.95
1513.77
v crore
total
1173.88
1521.50
(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, 2019 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 115 “Revenue from contracts
with customers”.
(v) Constructive obligation represents losses absorbed by the group in a joint venture over and above the investments.
(c) disclosure in respect of contingent liabilities is given in note 32.
518
Notes forming part of the Consolidated Financial statements (contd.)
Note [54]
disclosure pursuant to ind as 112 “disclosure of interest in other entities”: subsidiaries
(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 2018-19, the Group has sold 7.44% stake in larsen & toubro infotech limited and 8.43% stake in
l&t technology services limited. the proceeds on disposal of R 3378.02 crore were received in cash. an amount of
R 417.19 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 2960.83 crore
between the consideration received and the increase in the non-controlling interests has been credited to retained earnings.
During the year 2017-18, the Group has sold 0.61% 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.
(ii) on account of dilution
during the year 2018-19, the Group’s continuing interest has reduced on account of dilution due to exercise of esoPs by
0.10%, 0.72% and 1.33% in l&t Finance Holdings limited, larsen & toubro infotech limited and l&t technology services
limited respectively. the proceeds on dilution of R 22.13 crore were received in cash. an amount of R 132.23 crore (being
the proportionate share of the carrying amount of the net assets of l&t Finance Holdings limited, larsen & toubro infotech
limited and l&t technology services limited) has been transferred to non-controlling interests. the difference of R 110.10
crore between the increase in the non-controlling interests and the consideration received has been debited to retained
earnings.
during the year 2017-18, the Group’s continuing interest has reduced on account of dilution due to exercise of esoPs
by 0.20%, 0.70% and 0.67% in L&T Finance Holdings Limited, Larsen & Toubro Infotech Limited and 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, larsen & toubro
infotech limited and 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 2.41% 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 1393.83 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 61.96 crore between the consideration received
and increase in the non-controlling interests has been credited 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
name of company
marine infrastructure developer Private limited
l&t Cutting tools limited
eWaC alloys limited
effect on consolidated
profit/(loss) after non-
controlling interest
2018-19
415.61
–
–
2017-18
v crore
line item in statement of Profit
& loss in which the gain/(loss) is
recognised
– other operational income
136.74 exceptional items
273.40 exceptional items: R 281.01 crore
Current tax: R 7.61 crore
larsen & toubro Readymix and asphalt Concrete
industries llC
total
–
415.61
3.16 other income
413.30
519
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [54] (contd.)
(b) disclosure of subsidiaries having material non-controlling interests :
(i)
summarised statement of Profit and loss
Particulars
Revenue
Profit/(loss) for the year
other comprehensive income
total comprehensive income
effective % of non-controlling interest
Profit/(loss) allocated to non-controlling interest (including
consolidation adjustments)
dividend (including dividend distribution tax) to
non-controlling interest
Particulars
Revenue
Profit/(loss) for the year
other comprehensive income
total comprehensive income
effective % of non-controlling interest
Profit/(loss) allocated to non-controlling interest (including
consolidation adjustments)
dividend (including dividend distribution tax) 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
520
v crore
l&t Finance limited
2018-19
6890.59
845.93
(1.38)
844.55
36.09%
2017-18
4930.71
116.26
(1.43)
114.83
35.99%
l&t Finance Holdings limited
2017-18
89.52
266.05
0.62
266.67
35.99%
2018-19
481.73
267.79
(0.32)
267.47
36.09%
539.68
281.64
(28.76)
(39.34)
–
–
71.87
52.16
v crore
larsen & toubro infotech
limited
l&t technology services
limited
2018-19
9016.17
1475.06
25.87
1500.93
25.20%
2017-18
7203.05
1160.12
(99.41)
1060.71
17.04%
2018-19
4781.37
700.10
(2.13)
697.97
21.12%
2017-18
3596.70
489.38
21.69
511.07
11.36%
314.13
166.99
118.82
50.05
115.89
58.63
37.66
12.71
l&t Finance limited
l&t Finance Holdings limited
v crore
as at
31-3-2019
32026.49
20353.11
11673.38
23810.66
26583.43
(2772.77)
8900.61
1492.01
as at
31-3-2018
22115.80
14635.77
7480.03
22088.00
21256.22
831.78
8311.81
1031.65
as at
31-3-2019
866.85
1370.42
(503.57)
9182.03
848.11
8333.92
7830.35
2766.57
as at
31-3-2018
1251.80
727.61
524.19
7942.77
781.30
7161.47
7685.66
2723.96
v crore
larsen & toubro infotech
limited
l&t technology services
limited
as at
31-3-2019
4838.98
1482.92
3356.06
1379.71
22.32
1357.39
4713.45
1177.75
as at
31-3-2018
3997.88
1285.00
2712.88
1044.07
38.37
1005.70
3718.58
624.00
as at
31-3-2019
2271.41
783.45
1487.96
953.93
5.97
947.96
2435.92
507.15
as at
31-3-2018
1810.98
611.54
1199.44
767.70
1.80
765.90
1965.34
216.70
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
v crore
l&t Finance limited
2018-19
(7517.73)
(2145.81)
10845.39
1181.85
2017-18
(9028.02)
753.42
8328.44
53.84
l&t Finance Holdings limited
2017-18
(260.20)
(2191.00)
2461.93
10.73
2018-19
765.22
(1306.32)
530.33
(10.77)
v crore
larsen & toubro infotech
limited
l&t technology services
limited
2018-19
1247.49
(682.69)
(595.17)
(30.37)
2017-18
710.95
(249.52)
(407.49)
53.94
2018-19
736.62
(486.06)
(202.14)
48.42
2017-18
339.60
(165.60)
(98.50)
75.50
Note [55]
disclosure pursuant to ind as 112 “disclosure of interest in other entities” :- Joint Ventures and associates
(a) summarised Balance sheet of material joint ventures:
Particulars
Current assets
Cash and bank balances
other assets
total current assets
total non-current assets (including Goodwill)
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
31-3-2019
as at
31-3-2018
as at
31-3-2019
as at
31-3-2018
as at
31-3-2019
as at
31-3-2018
v crore
318.67
334.77
3112.87
3371.25
3431.54
3706.02
0.15
278.67
278.82
0.28
923.34
643.69
187.79
2739.12
3707.88
188.07
3662.46
4351.57
501.86
574.84
1255.08
1307.31 11799.38 18882.85
(a)
(B)
Financial liabilities (excluding trade payables)
565.09
549.38
1585.44
1434.18
2184.58
2469.76
other liabilities (including trade payables)
1918.24
2533.92
138.37
92.49
297.50
313.46
total current liabilities
non-current liabilities
(C)
2483.33
3083.30
1723.81
1526.67
2482.08
2783.22
Financial liabilities (excluding trade payables)
4.65
11.90
606.25
550.36 10690.79 11831.44
other liabilities (including trade payables)
–
–
16.32
16.92
434.73
7137.86
total non-current liabilities
non-controlling interest (nCi)
(d)
(e)
4.65
11.90
622.57
567.28 11125.52 18969.30
–
–
–
–
161.26
132.04
net assets
(a+B-C-d-e)
1445.42
1185.66
(812.48)
(598.57)
1692.98
1349.86
521
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [55] (contd.)
(b) Reconciliation of carrying amounts of material joint ventures:
Particulars
l&t-mHPs Boilers
Private limited
l&t special steels and
Heavy Forgings Private
limited
l&t infrastructure
development Projects
limited (consolidated)
as at
31-3-2019
as at
31-3-2018
as at
31-3-2019
as at
31-3-2018
as at
31-3-2019
as at
31-3-2018
v crore
opening net assets
1185.66
929.88
(598.57)
(641.09)
1349.86
1749.80
Profit/(loss) for the year (net of nCi)
279.96
241.47
(213.89)
(270.30)
588.70
(404.18)
dividend distributed during the year (including
dividend tax)
(28.22)
–
–
–
–
–
other comprehensive income (net of nCi)
8.02
14.31
(0.02)
1.21
24.71
(0.67)
infusion during the year
amount adjusted against securities premium
equity component of other financial instruments
other adjustments
Closing net assets
Group's share in %
Group's share
impairment
Parent's investment in group companies
Regrouped to provisions
other adjusments
Carrying amount
–
–
–
–
–
–
–
–
–
–
–
–
311.61
–
–
–
–
(246.59)
70.00
(93.70)
–
–
–
4.91
1445.42
1185.66
(812.48)
(598.57)
1692.98
1349.86
51.00%
51.00% 74.00%
74.00% 97.45%
97.45%
737.16
604.69
(601.24)
(442.94)
1657.53
1325.49
–
–
–
–
–
–
–
–
–
–
–
(288.44)
(113.00)
33.30
33.30
594.41
458.24
–
–
6.83
(15.30)
(127.58)
65.14
737.16
604.69
–
–
1274.81
1310.93
(c) summarised statement of Profit and loss of material joint ventures:
Particulars
Revenue
interest income
depreciation and amortisation
Finance cost
tax expense
v crore
l&t-mHPs Boilers
Private limited
l&t special steels and
Heavy Forgings Private
limited
l&t infrastructure
development Projects
limited (consolidated)
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2735.70
2966.52
210.83
127.87
1666.57
1760.54
20.26
19.22
0.12
0.16
29.71
7.16
(62.32)
(17.72)
(58.63)
(47.65)
(49.28)
(452.16)
(329.58)
(21.25)
(181.59)
(179.22)
(1070.17)
(905.61)
(137.93)
(126.70)
–
–
(36.97)
(70.91)
Profit/(loss) from continuing operations (net of nCi)
279.96
241.47
(213.89)
(270.30)
607.52
(193.60)
Profit/(loss) from discontinued operations (net of nCi)
–
–
–
(18.82)
(210.58)
Profit/(loss) for the year (net of nCi)
279.96
241.47
(213.89)
(270.30)
588.70
(404.18)
other comprehensive income (net of nCi)
8.02
14.31
(0.02)
1.21
24.71
(0.67)
total comprehensive income (net of nCi)
287.98
255.78
(213.91)
(269.09)
613.41
(404.85)
522
Notes forming part of the Consolidated Financial statements (contd.)
Note [55] (contd.)
(d) Financial information in respect of individually not material joint venture/associate
Particulars
aggregate carrying amount of investment in individually not material joint venture/associate
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
as at
31-3-2019
630.32
66.11
(17.80)
48.31
as at
31-3-2019
88.52
541.80
630.32
2011.97
2642.29
2018-19
17.72
48.39
66.11
(87.11)
(21.00)
v crore
as at
31-3-2018
565.98
77.20
11.53
88.73
v crore
as at
31-3-2018
71.10
494.87
565.97
1915.62
2481.59
v crore
2017-18
18.67
58.53
77.20
(513.06)
(435.86)
Note [56]
disclosure pursuant to ind as 107 “Financial instruments: disclosures”: market risk management
(a) Foreign exchange rate and interest rate risk:
the Group regularly reviews its foreign exchange forward and option positions and interest rate swaps, both on a standalone
basis and in conjunction with its underlying foreign currency and interest rate related exposures. the Group follows cash flow
hedge accounting for Highly Probable Forecasted exposures (HPFe) hence the movement in mark to market (mtm) of the hedge
contracts undertaken for such exposures is likely to be offset by contra movements in the underlying exposures values. However,
till the point of time the HPFe becomes an on-balance sheet exposure, the changes in mtm of the hedge contracts will impact the
Balance Sheet of the Group. Further, given the effective horizons of the Group’s risk management activities which coincide with
the durations of the projects under execution and could extend across 3-4 years and the business uncertainties associated with
the timing and estimation of the project exposures, the recognition of the gains and losses related to these instruments may not
always coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may affect the
Group’s financial condition and operating results. Hence, the Group monitors the potential risk arising out of the market factors
like exchange rates, interest rates, price of traded investment products etc. on a regular basis. For on-balance sheet exposures, the
Group monitors the risks on net unhedged exposures.
(i)
Foreign exchange rate risk:
in general, the Group is a net receiver of foreign currency. accordingly, changes in exchange rates, and in particular a
strengthening of the indian Rupee, will negatively affect the Group’s net sales and gross margins as expressed in indian
Rupee. there is a risk that the Group may have to adjust local currency product pricing due to competitive pressures when
there have been significant volatility in foreign currency exchange rates.
the Group may enter into foreign currency forward and option contracts with financial institutions to protect against foreign
exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future
cash flows and net investments in foreign subsidiaries. in addition, the Group has entered, and may enter in the future, into
523
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [56] (contd.)
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 31-3-2019
As at 31-3-2018
Particulars
US Dollar
including
pegged
currencies
EURO Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
Kuwaiti
Dinar
US Dollar
including
pegged
currencies
EURO Malaysian
Ringgit
Canadian
Dollar
Japanese
Yen
Kuwaiti
Dinar
(5474.23)
286.37
67.37
91.74
(10.43)
162.25 (2966.34)
(23.64)
66.84
50.96
(179.21)
78.01
552.57
222.95
–
–
–
–
594.48
222.04
–
–
–
–
16327.53
(813.82)
102.09
(38.66)
538.14
974.77 11598.88 (1673.88)
49.17
51.14
659.25
1273.26
Net exposure to foreign currency
risk in respect of recognised
financial assets/(recognised
financial liabilities)
Derivatives including embedded
derivatives for hedging
receivable/ (payable)
exposure with respect to non
financial assets/(non financial
liabilities)
Derivatives including embedded
derivatives for hedging
receivable/(payable)
exposures with respect to
firm commitments and highly
probable forecast transactions
Receivable/(payable) exposures
with respect to forward
contracts and embedded
derivatives not designated as
cash flow hedge
Options (written) not designated
as cash flow hedge
(527.50)
(533.77)
(1237.61)
586.94
–
–
–
–
31.73
– (1705.20)
(239.02)
–
–
–
–
–
–
–
–
–
–
–
–
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 106.11 crore as at March 31, 2019 and R 59.93 crore as at march 31, 2018.
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, 2019 due to the inherent limitations associated with predicting the
timing and amount of changes in foreign currency exchange rates and the Group’s actual exposures and position.
(ii)
interest rate risk:
the Group’s exposure to changes in interest rates relates primarily to the Group’s outstanding floating rate debt and lending.
the Group’s outstanding debt in local currency is a combination of fixed rate and floating rate. For the portion of local
524
Notes forming part of the Consolidated Financial statements (contd.)
Note [56] (contd.)
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
31-3-2019
as at
31-3-2018
49107.01
45476.71
a hypothetical 50 basis point shift in respective currency liBoR and other benchmarks on the unhedged loans would result in
a corresponding increase/decrease in finance 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
2018-19
2017-18
v crore
impact on equity
as at
31-3-2019
as at
31-3-2018
1.63
(1.63)
(20.44)
20.44
(25.77)
25.77
(20.91)
20.91
1.63
(1.63)
(20.44)
20.44
(25.77)
25.77
(20.91)
20.91
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 38.01 crore as at
march 31, 2019 and +/-R 24.17 crore as at march 31, 2018. a 5% change in the equity funds, naV would result in a value change
of +/- R 39.16 crore as at March 31, 2019 and +/- R 17.19 crore as at march 31, 2018 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
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,
525
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [56] (contd.)
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
measured at
12-month eCl
loss allowance as on 1-4-2017
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
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 31-3-2019
307.45
188.74
(64.69)
(151.69)
279.81
313.71
28.36
(141.88)
480.00
v crore
loss allowance measured at life time eCl
Financial assets for which
credit risk has increased
significantly and credit not
impaired
143.92
16.89
Financial assets for which
credit risk has increased
significantly and credit
impaired
3865.51
67.93
(51.09)
82.89
192.61
33.49
(25.78)
27.79
228.11
115.78
871.18
4920.40
123.00
(2.59)
(1127.93)
3912.88
(iv) Reconciliation of allowance for expected credit loss on trade receivables (other than financial services business):
opening balance
Changes in allowance for expected credit loss:
Particulars
loss allowance based on eCl
additional provision
Write off as bad debts
Closing balance [Refer note 13]
(v) amounts written off:
amount of financial assets written off during the period but still enforceable
Particulars
v crore
trade Receivables
2018-19
2900.10
2017-18
2465.16
84.34
265.62
(249.23)
3000.83
2018-19
1531.86
41.80
766.83
(373.69)
2900.10
v crore
2017-18
557.52
526
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
(i)
investment in preference shares
(ii)
investment in mutual funds and units of fund
(iii)
(ii)
investment in government securities, debentures and bonds
(v) derivative instruments not designated as cash flow hedges
(vi) embedded derivatives not designated as cash flow hedges
(vii) investment in security receipts
(viii) loans
sub-total (i)
ii. measured at amortised cost:
loans
investment in government securities, debentures and bonds
(i)
(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)
(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:
Borrowings
(i)
(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.
note
as at
31-3-2019
v crore
as at
31-3-2018
843.99
287.39
4514.29
1253.23
17.12
47.60
1016.88
16836.61
24817.11
71981.52
84.94
33116.98
3428.27
8353.04
121.53
117086.28
4829.00
865.18
8.72
5702.90
147606.29
582.49
312.98
8990.10
1523.26
139.12
28.40
791.07
24395.92
36763.34
78412.79
1832.55
37038.17
974.20
12217.35
287.14
130762.20
4445.53
1212.86
17.50
5675.89
173201.43
as at
31-3-2019
v crore
as at
31-3-2018
24.93
99.41
124.34
21.44
47.11
68.55
6,12
6,12
6,12
6,12
9,18
9,18
6
7,8,16,17
7,8,16,17
6,12
13
18
9,14,15
6,12
9,18
9,18
note
23,29
23,29
22,26,27
28
125555.17
42994.81
4489.42
173039.40
107524.08
37797.38
4981.81
150303.27
23,29
23,29
23,29
368.52
185.85
554.37
1.78
173719.89
170.18
164.12
334.30
1.47
150707.59
527
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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
2018-19
2017-18
1. Gains/(losses) on fair valuation or sale of investments
2. Gains/(losses) on fair valuation or sale of loan (Financial services)
3. Gains/(losses) on fair valuation/settlement of derivative:
137.91
(2160.12)
(77.62)
(30.73)
(a) Gains/(losses) on fair valuation or settlement of forward contracts not designated as
7.73
59.40
cash flow hedges
(b) Gains/(losses) on fair valuation or settlement of embedded derivative contracts not
(1.65)
28.22
designated as cash flow hedges
(c) Gains/(losses) on fair valuation or settlement of futures not designated as cash flow
(21.81)
(125.74)
hedges
sub-total (a)
B.
Financial assets measured at amortised cost:
44.56
(2228.97)
(i) exchange difference gains/(losses) on revaluation or settlement of items denominated in
471.76
220.53
foreign currency (trade receivables, loans given etc.)
(ii) (allowance)/reversal for expected credit loss during the year
(iii) Provision for impairment loss (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:
(699.45)
(1265.19)
(803.87)
(778.78)
438.15
(220.29)
(364.34)
(477.26)
(957.75)
(2520.99)
(i) exchange difference gains/(losses) on revaluation or settlement of items denominated in
(452.17)
(172.42)
foreign currency (trade payables, borrowing availed etc.)
(ii) Unclaimed credit balances written back
sub-total (C)
total [i] = (a+B+C)
90.86
128.76
(361.31)
(43.66)
(1274.50)
(4793.62)
528
Notes forming part of the Consolidated Financial statements (contd.)
Note [57] (contd.)
sr.
no.
Particulars
v crore
2018-19
2017-18
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.
(125.90)
(51.18)
(ii) derivative measured at fair value through other Comprehensive income:
(b) Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
(225.41)
640.56
flow hedges
(c) Gains/(losses) on fair valuation or settlement of embedded derivative contracts
18.49
(82.38)
designated as cash flow hedges
sub-total (a)
less:
(332.82)
507.00
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
(62.89)
(5.70)
(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)]
total [ii] = (a-B)
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:
355.28
434.30
15.42
(150.25)
307.81
278.35
(640.63)
(640.63)
228.65
228.65
236.91
236.91
2748.08
2748.08
10901.16
8789.81
356.91
391.27
2197.22
1443.07
13455.29
10624.15
(i) Financial liabilities measured at amortised cost
(8528.80)
(6969.13)
(ii) derivative instruments (including embeded derivatives) that are measured at fair value
(259.02)
(266.60)
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)
(0.06)
(15.48)
(8787.88)
(7251.21)
4904.32
6121.02
529
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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
as at 31-3-2019
as at 31-3-2018
Carrying
amount
Fair value
Carrying
amount
Fair value
v crore
Financial assets:
loans
7,8,16,17
62234.11
57890.20
61500.75
56265.75
Government securities, debentures and bonds
6,12
1832.55
1899.07
84.94
84.94
total
Financial liabilities:
Borrowings
total
notes:
64066.66
59789.27
61585.69
56350.69
22,26,27
51252.31
51252.31
51656.55
51656.55
44982.93
45417.30
44982.93
45417.30
1. Carrying amount of loans is gross of provsion for expected credit losses
2.
the carrying amounts of trade and other receivables, cash and cash equivalents, trade and other payables are considered to
be the same as their fair values due to their short term nature. the carrying amounts of loans given and borrowings taken for
short term or at floating rate of interest are considered to be close to the fair value. accordingly these items have not been
included in the above table.
(e) disclosure pursuant to ind as 113 “Fair Value measurement” - Fair value hierarchy of financial assets and financial liabilities
measured at amortised cost:
as at 31-3-2019
level 1
level 2
level 3
total
v crore
Valuation technique for
level 3 items
Financial assets:
loans
Government securities, debentures and bonds
total
Financial liabilities:
Borrowings
total
–
–
–
737.02
737.02
8783.50
49106.70
57890.20
discounted cash flow
1899.07
–
1899.07
discounted cash flow
10682.57
49106.70
59789.27
9360.96
41558.57
51656.55
discounted cash flow
9360.96
41558.57
51656.55
as at 31-3-2018
level 1
level 2
level 3
total Valuation technique for
level 3 items
v crore
Financial assets:
loans
debentures and Bonds
total
Financial liabilities:
Borrowings
total
–
–
–
8989.57 47276.18 56265.75 discounted cash flow
84.94
–
84.94 discounted cash flow
9074.51 47276.18 56350.69
811.49
9202.25 35403.56 45417.30 discounted cash flow
811.49
9202.25 35403.56 45417.30
Valuation technique level 2: Future cash flows discounted using G-sec/liBoR rates plus corporate spread.
530
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 31-3-2019
As at 31-3-2018
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
39.93
–
–
213.17
542.56
99.81
582.49
312.98
102.16
–
741.83
–
217.73
69.67
843.99
287.40
8801.31
656.38
–
–
8801.31
4385.66
0.53
866.35
1523.26
424.46
–
–
–
4385.66
828.77
1253.23
(v) Derivative instruments not designated as cash
9,18
flow hedges
(vi) Embedded derivative instruments not
designated as cash flow hedges
(vii) Other investments
(viii) Loans (financial services business)
Financial assets at FVTOCI
(i) Debt instruments viz. government securities,
bonds and debentures
(ii) Derivative financial instruments designated as
cash flow hedges
(iii) Embedded derivative financial instruments
designated as cash flow hedges
9,18
8,17
6, 7,
12
9,18
9,18
Total
Financial Liabilities:
Financial liabilities at FVTPL:
(i) Designated at FVTPL:
–
–
–
–
139.12
28.40
–
–
139.12
28.40
–
–
979.86
979.86
24395.92
24395.92
–
–
–
–
17.12
47.60
–
–
17.12
47.60
–
1145.50
1145.50
– 16836.61 16836.61
2133.84
2303.29
8.40
4445.53
2849.72
1889.70
89.58
4829.00
–
1212.86
–
1212.86
–
865.18
–
865.18
–
17.50
–
17.50
–
8.72
–
8.72
11631.46
3914.87
26892.90
42439.23
7762.00
3046.05 19711.96 30520.01
(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
–
–
–
–
–
24.93
99.41
368.52
185.85
678.71
–
–
–
–
–
24.93
99.41
–
–
21.44
47.11
–
–
21.44
47.11
368.52
–
170.18
–
170.18
185.85
–
164.12
–
164.12
678.71
–
402.85
–
402.85
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 vaue technique using forward exchange rates at the end of reporting period.
(b) Preference share and government securities, bonds and debentures – Future cash flows are discounted using G-sec rates as at
reporting date.
531
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [57] (contd.)
(g) movement of items measured using unobservable inputs (level 3):
Particulars
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
addition during the year
disposal during the year
Gains/(losses) recognised in Profit or loss
Balance as at 31-3-2019
equity
shares
Preference
shares
debt
instruments
loans
other
investments
v crore
total
752.53
141.45
(166.52)
14.37
741.83
565.76
(571.03)
(194.00)
542.56
75.45
1113.95
7900.36
733.61
10575.90
–
–
(5.78)
69.67
–
–
30.14
99.81
244.58
13342.84
443.97
14172.84
(407.93)
(4406.59)
(14.05)
(4995.09)
(32.25)
–
(18.03)
(41.69)
918.35
16836.61
1145.50
19711.96
11.19
14248.11
192.46
15017.52
(33.33)
(6688.80)
(123.44)
(7416.60)
(21.46)
–
(234.66)
(419.98)
874.75
24395.92
979.86
26892.90
(h) sensitivity disclosure for level 3 fair value measurements:
Fair value as at
Particulars
As at
31-3-2019
As at
31-3-2018
Significant unobservable
inputs
v crore
476.98
656.51 Book value
65.58
Equity shares
64.27 31-3-2019:
1.
2.
Net realization per
month R 30.90 per sq/ft.
Capitalisation rate
12.25%
31-3-2018:
1.
Net realization per
month R 30 per sq/ft.
Capitalisation rate 12%
2.
Preference
shares
–
99.81
21.05 Cost
69.67 Expected yield
Debt instruments
874.75
918.35 Expected yield
Loans
24395.92
16836.61 Expected yield
Other
Investments
979.86
1145.50 Net Assets Value (NAV)
532
Sensitivity
2019: Increase/decrease of 5% in the book value would result in impact on
profit or loss by R 18.02 crore
2018: Increase/decrease of 5% in the book value would result in impact on
profit or loss by R 24.51 crore
2019 : 1% change in net realization would result in +/- R 0.32 crore (post
tax- R 0.21 crore)
25 bps change in capitalization rate would result in +/- R 0.63 crore (post
tax- R 0.41 crore)
2018 : 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)
2018: Sensitivity is insignificant
2019: Increase/decrease in the fair value by 5% would result in impact on
profit or loss by R 4.74 crore
2018: Increase/decrease in the fair value by 5% would result in impact on
profit or loss by R 3.21 crore
2019: Increase/(decrease) in fair value by 0.25% would result in impact on
profit or loss by R 1.65 crore
2018: Increase/(decrease) in fair a by 0.25% would result in impact on profit
or loss by R 1.73 crore
2019: Increase/(decrease) in fair value by 0.25% would result in impact on
profit or loss by R 39.68 crore
2018: Increase/(decrease) in fair value by 0.25% would result in impact on
profit or loss by R 27.52 crore
2019: Increase/decrease in the NAV by 5% would result in impact on profit
or loss by R 31.87 crore
2018: Increase/decrease in the NAV by 5% would result in impact on profit
or loss by R 37.45 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 31-3-2019
Within
twelve
month
After
twelve
month
Total
As at 31-3-2018
Within
twelve
month
After
twelve
month
v crore
Total
22,26,27
53909.10
84473.80
138382.90
35625.77
84552.99 120178.76
28
23,29
23,29
23,29
41836.59
1158.22
42994.81
37031.46
765.92
37797.38
4261.66
227.76
4489.42
3245.58
1736.23
4981.81
100007.35
85859.78
185867.13
75902.81
87055.14 162957.95
384.74
147.05
531.79
14.14
142.08
156.22
398.88
289.13
688.01
176.76
136.50
313.26
21.99
89.29
111.28
198.75
225.79
424.54
(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
As at 31-3-2019
As at 31-3-2018
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
15833.62
8848.99 15955.20
69.64 10243.19
5712.01
24682.61
2373.28
113.99
230.00
75.12
84.81
17.54
187.51
1643.94
729.34
1823.48
53.37
150.51
60.62
79.49
Arab Emirates Dirham
1228.16
19.34
1228.16
Canadian Dollar
British Pound
Japanese Yen
Kuwaiti Dinar
Qatari Riyal
Bangladesh Toka
Saudi Riyal
Australian Dollar
South African Rand
Danish Krone
Norwegian Krone
Thai Baht
Swedish Krona
–
87.48
1449.58
1524.52
1551.27
873.53
96.64
–
96.74
0.68
–
87.48
1284.36
237.38
1232.40
19.72
0.88
21.04
1227.83
854.91
96.64
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
165.22
292.12
323.44
18.62
–
–
–
–
–
–
–
222.73
1698.31
18.55
1253.61
138.38
301.94
1414.98
56.96
68.97
923.19
2039.77
1476.18
–
–
25.90
102.69
85.20
17.07
179.55
18.11
56.96
97.34
0.65
–
–
56.32
5.40
9.87
12.34
16.91
1.43
27.03
9.39
2.12
9.32
1210.15
613.33
138.38
301.94
–
–
1411.17
3.81
56.96
68.97
889.42
–
–
25.90
102.69
9.87
16.91
1.43
27.03
–
–
33.77
341.46
222.57
–
–
–
–
–
–
–
–
533
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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
Omani Riyal
Canadian Dollar
As at 31-3-2019
As at 31-3-2018
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
13738.88
4472.40
–
71.10
1060.96
531.77
302.59
–
–
5.20
28.71
40.53
70.57
81.43
–
94.52
0.66
232.14
72.69
–
–
9.16
180.36
54.04
12789.54
4338.30
–
71.10
877.42
531.77
302.59
–
–
5.20
28.71
40.53
949.34 13167.42
4957.31
134.10
0.75
–
75.61
–
337.91
183.54
760.92
–
417.42
–
26.03
–
16.56
–
8.02
–
–
–
–
–
67.43
80.88
17.86
91.99
0.62
219.15
74.49
10.32
8.83
8.74
–
–
7475.81
4887.56
0.75
51.53
337.91
760.92
417.42
26.03
16.56
7.00
–
–
5691.61
69.75
–
24.08
–
–
–
–
–
1.02
–
–
(B) options taken to hedge exchange rate risk and accounted as cash flow hedge:
Particulars
Receivable:
US Dollars/Indian Rupees
EURO/US Dollars
Payable:
US Dollars/Indian Rupees
Nominal
amount
(v crore)
As at 31-3-2019
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(v)
Within
twelve
months
(v crore)
After
twelve
months
(v crore)
1422.50 R 71.13 to
R 74.94
$ 1.17 to
$ 1.25
632.65
750.00 R 67.69 to
R 75
1422.50
–
363.68
268.97
750.00
–
–
–
–
–
–
–
–
–
–
–
–
–
(C) Forward covers taken to hedge exchange rate risk and accounted as net investment hedge:
Particulars
Receivable:
US Dollar
Arab Emirates Dirham
Qatati Riyals
Saudi Riyal
Nominal
amount
(v crore)
28.73
81.20
116.68
51.07
As at 31-3-2019
Average
rate
(v)
Within
twelve
months
(v crore)
71.83
20.46
20.91
19.34
28.73
–
116.68
51.07
After
twelve
months
(v crore)
–
81.20
–
–
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(v)
Within
twelve
months
(v crore)
28.73
–
–
187.39
71.83
–
–
17.43
–
–
–
187.39
(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 31-3-2019
Average
rate
(%)
Within
twelve
months
(v crore)
369.58
After
twelve
months
(v crore)
4.32
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(%)
Within
twelve
months
(v crore)
524.94
773.58
7.48
Floating interest rate borrowings
373.90
7.17
534
After
twelve
months
(v crore)
28.73
–
–
–
After
twelve
months
(v crore)
248.64
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 31-3-2019
Average
rate
(v)
Copper (Tn)*
Aluminium (Tn)
Iron Ore (Tn)
Coking Coal (Tn)
Zinc (Tn)
Lead (Tn)
*Negative nominal amount represents sell position.
(271.25) 514615.22
202.04 148790.59
5469.41
38.32
39.27
13631.02
42.44 189480.24
33.63 142435.43
Within
twelve
months
(v crore)
(271.25)
202.04
29.47
29.26
42.44
33.63
After
twelve
months
(v crore)
–
–
8.85
10.01
–
–
Nominal
amount
(v crore)
As at 31-3-2018
Average
rate
(v)
(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
(k) Carrying amounts of hedge instruments for which hedge accounting is followed:
(a) Cash flow hedge:
Particulars
(i) Forward contracts
Current:
As at 31-3-2019
Currency
exposure
Interest rate
exposure
Asset - Other financial assets
Liability - Other financial liabilities
Non-current:
Asset - Other financial assets
Liability - Other financial liabilities
714.75
396.77
366.37
109.95
(0.40)
–
(0.40)
–
(ii) Swap contracts
Current:
Asset - Other financial assets
49.11
0.88
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
–
–
–
22.43
0.96
6.51
–
–
–
–
–
–
–
–
Commodity
price
exposure
56.94
46.57
–
–
–
–
–
–
–
–
–
–
As at 31-3-2018
Currency
exposure
Interest rate
exposure
538.62
197.60
219.76
98.81
(0.25)
–
(0.48)
–
66.58
12.57
(8.43)
–
21.02
(3.65)
–
–
–
–
–
–
–
–
–
–
After
twelve
months
(v crore)
–
–
–
–
–
–
v crore
Commodity
price
exposure
25.18
23.19
–
–
–
–
–
–
–
–
–
–
535
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [57] (contd.)
(B) net investment hedge:
Particulars
(i) Forward contracts
Current:
As at 31-3-2019
As at 31-3-2018
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
11.48
0.11
2.68
–
–
–
–
–
–
14.63
2.15
0.91
–
–
–
(l)
Breakup of cash flow hedging reserve and cost of hedging reserve:
v crore
Commodity
price
exposure
–
–
–
v crore
Particulars
Balance towards continuing hedges
Balance for which hedge accounting discontinued
Total
As at 31-3-2019
As at 31-3-2018
Cash flow
hedging reserve
Cost of hedging
reserve
Cash flow
hedging reserve
Cost of hedging
reserve
360.54
(121.43)
239.11
6.77
(0.88)
5.89
241.13
208.09
449.22
(11.45)
–
(11.45)
v crore
(m) Reclassification of hedging reserve and cost of hedging reserve to Profit or loss:
Particulars
2018-19
2017-18
Future cash flows are no longer expected to occur:
Revenue from operations
sales, administration and other expenses
other income
Hedged expected future cash flows affecting profit or loss:
Progress Billing
Revenue from operations
manufacturing, construction and operating expenses
Finance costs
other income
sales, administration and other expenses
109.03
(45.53)
0.34
–
(83.81)
–
(28.32)
69.08
441.59
331.25
(24.26)
(166.29)
(259.35)
(267.43)
–
0.03
262.37
203.70
536
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
Changes in the spot element of the forward contracts which is designated as hedging
instruments for time period related hedges
Changes in fair value of forward contracts designated as hedging instruments
Changes in 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
v crore
2018-19
2017-18
449.22
359.62
261.47
(4.49)
(301.78)
719.83
59.82
(151.83)
(364.94)
(211.57)
0.31
1.24
28.32
(255.20)
106.69
239.11
(8.38)
449.22
v crore
2018-19
2017-18
(11.45)
(12.09)
(226.43)
0.13
252.95
(9.31)
5.89
(5.33)
–
6.49
(0.52)
(11.45)
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 collateral
non-current:
investments
loans
other assets
total non-current financial assets pledged as collateral
as at
31-3-2019
v crore
as at
31-3-2018
22.90
11865.78
682.92
24703.11
694.42
37969.13
87.48
42797.67
–
42885.15
–
11434.34
1257.08
10519.31
525.62
23736.35
–
52722.97
26.10
52749.07
537
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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 31-3-2019:
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:
84.25% 52550.72
74.99%
6677.70
43.30%
(118.63)
75.99%
6559.07
Hi-Tech Rock Products and Aggregates
0.02%
14.15
0.03%
3.11
–
–
0.04%
3.11
Limited
L&T Geostructure LLP
L&T Infrastructure Engineering Limited
0.24%
0.07%
150.69
44.01
0.60%
0.05%
53.19
4.52
–
(0.03%)
–
0.07
0.62%
0.05%
53.19
4.59
Heavy Engineering:
L&T Cassidian Limited
Defence Engineering:
–
–
–
–
–
–
–
–
L&T Shipbuilding Limited
(1.96%)
(1225.59)
(4.66%)
(415.10)
(0.41%)
1.12
(4.80%)
(413.98)
Hydrocarbon:
L&T Hydrocarbon Engineering Limited
3.19%
1989.46
6.23%
554.74
42.21%
(115.64)
5.09%
439.10
IT & Technology Services:
Larsen & Toubro Infotech Limited
L&T Technology Services Limited
L&T Thales Technology Services Private
Limited
7.56%
3.91%
0.02%
4713.45
2435.92
10.61
16.56%
7.86%
0.12%
1475.06
700.10
10.67
(9.44%)
0.78%
(0.08%)
25.87
(2.13)
0.21
17.39%
8.09%
0.13%
1500.93
697.97
10.88
Syncordis Software Services India Private
0.00%
2.01
0.01%
0.67
0.01%
(0.02)
0.01%
0.65
Limited
Graphene Semiconductor Services Private
0.03%
21.32
0.05%
4.70
(0.04%)
0.10
0.06%
4.80
Limited
Seastar Labs Private Limited
Ruletronics Systems 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
Private Limited
0.00%
0.01%
0.00%
0.13%
12.55%
2.46%
1.70%
0.02%
0.21
3.82
0.70
82.45
7830.35
1531.93
1061.22
11.21
0.00%
0.00%
0.00%
0.37%
3.01%
3.39%
1.48%
(0.05%)
0.11
(0.43)
0.14
33.27
267.79
302.00
131.66
(4.26)
–
–
–
(0.05%)
0.12%
(0.10%)
0.02%
–
–
–
–
0.14
(0.32)
0.27
(0.05)
–
0.00%
(0.01%)
0.00%
0.39%
3.10%
3.50%
1.52%
(0.05%)
0.11
(0.43)
0.14
33.41
267.47
302.27
131.61
(4.26)
L&T Infra Investment Partners Trustee
0.00%
0.05
–
–
–
–
–
–
Private Limited
L&T Infrastructure Finance Company
6.30%
3930.38
2.60%
231.90
0.19%
(0.52)
2.68%
231.38
Limited
L&T Investment Management Limited
L&T Mutual Fund Trustee Limited
L&T Trustee Company Private Limited
L&T Financial Consultants Limited
0.85%
0.00%
–
0.11%
527.23
1.43
–
67.30
0.99%
0.00%
–
0.13%
88.35
(0.10)
–
11.93
0.07%
–
–
0.01%
(0.20)
–
–
(0.02)
1.02%
0.00%
–
0.14%
88.15
(0.10)
–
11.91
538
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)
Mudit Cement Private Limited
L&T Finance Limited
L&T Infra Investment Partners (The Fund)
(0.04%)
14.27%
0.79%
(26.20)
8900.61
493.74
(0.08%)
9.50%
0.14%
(6.89)
845.93
12.51
As % of
consolidated
other
comprehensive
income
–
0.50%
–
Amount
(v crore)
–
(1.38)
–
As % of
consolidated
total
comprehensive
income
(0.08%)
9.78%
0.14%
Amount
(v crore)
(6.89)
844.55
12.51
Developmental Projects:
L&T Metro Rail (Hyderabad) Limited
Sahibganj Ganges Bridge-Company
Private Limited
3.54%
–
2208.24
–
(1.66%)
–
(148.15)
–
0.26%
–
(0.72)
–
(1.73%)
–
(148.87)
–
Marine Infrastructure Developer Private
–
–
(0.59%)
(52.96)
–
–
(0.61%)
(52.96)
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 Westend Project LLP
LTR SSM Private 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, Construction Equipment and
Others:
L&T Construction Equipment Limited
L&T Construction Machinery Limited
L&T Valves Limited
Others:
Bhilai Power Supply Company Limited
L&T Power Limited
Kesun Iron and Steel Company Private
Limited
L&T Aviation Services Private Limited
L&T Capital Company Limited
L&T Infra Contractors Private Limited
0.00%
0.00%
4.76%
2.09%
5.20%
0.00%
(0.04%)
0.09%
0.40%
–
0.00%
4.34%
(0.01%)
–
–
0.00%
0.58%
0.00%
0.70%
0.00%
0.01%
0.00%
0.05%
0.01%
0.00%
(0.10)
(1.00)
2967.95
1302.53
3245.07
(0.02)
(26.89)
56.20
251.43
–
0.05
2706.91
(4.65)
–
–
2.03
(0.46%)
(2.26%)
(1.66%)
0.00%
1.08%
0.00%
(9.71%)
3.33%
(9.38%)
–
0.00%
0.51%
0.00%
–
–
(0.03%)
(40.68)
(201.27)
(148.12)
0.03
96.42
(0.01)
(865.07)
296.67
(835.68)
–
(0.05)
45.30
(0.02)
–
–
(2.44)
–
–
–
–
0.41%
–
–
–
–
–
–
0.03%
–
–
–
–
–
–
–
–
(1.11)
–
–
–
–
–
–
(0.08)
–
–
–
–
(0.47%)
(2.33%)
(1.72%)
0.00%
1.10%
0.00%
(10.02%)
3.44%
(9.68%)
–
0.00%
0.52%
0.00%
–
–
(0.03%)
(40.68)
(201.27)
(148.12)
0.03
95.31
(0.01)
(865.07)
296.67
(835.68)
–
(0.05)
45.22
(0.02)
–
–
(2.44)
362.10
0.01
439.04
0.63%
–
(1.63%)
56.05
–
(144.74)
(0.40%)
–
(3.14%)
1.09
–
8.59
0.66%
–
(1.58%)
57.14
–
(136.15)
0.05
5.27
(0.27)
33.92
4.96
(0.01)
–
0.00%
–
(0.02%)
0.01%
0.00%
–
0.22
–
(1.50)
0.47
(0.01)
–
–
–
–
–
–
–
0.00%
–
0.00%
–
–
(0.01)
–
–
(0.02%)
0.01%
0.00%
–
0.22
–
(1.51)
0.47
(0.01)
539
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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)
Foreign Subsidiaries
Infrastructure:
Larsen & Toubro (Oman) LLC
Larsen & Toubro Qatar LLC
Larsen & Toubro Saudi Arabia LLC
Larsen & Toubro T&D SA (Proprietary)
Limited
0.62%
0.00%
0.88%
0.01%
383.25
0.50
551.00
2.96
(0.27%)
0.00%
1.83%
0.00%
(24.11)
(0.01)
163.11
0.22
(7.52%)
(0.01%)
(7.24%)
0.18%
20.61
0.03
19.84
(0.48)
(0.04%)
0.00%
2.12%
0.00%
(3.50)
0.02
182.95
(0.26)
Larsen & Toubro (East Asia) Sdn.Bhd.
0.00%
1.04
0.01%
1.11
0.00%
(0.01)
0.01%
1.10
Hydrocarbon:
Larsen & Toubro Heavy Engineering LLC
Larsen & Toubro Hydrocarbon
International Limited LLC
L&T Modular Fabrication Yard LLC
L&T Overseas Projects Nigeria Limited
Larsen Toubro Arabia LLC
L&T Hydrocarbon Saudi Company
(formerly known as Larsen & Toubro
ATCO Saudi LLC)
Larsen & Toubro Kuwait Construction
General Contracting company WLL
PT Larsen & Toubro Hydrocarbon
Engineering Indonesia
Larsen & Toubro Electromech LLC
L&T Hydrocarbon International FZE
IT & Technology Services:
(0.10%)
0.00%
0.16%
0.00%
(0.63%)
(0.74%)
(64.42)
(2.72)
(0.47%)
0.00%
(42.10)
(0.27)
97.59
(0.02)
(390.04)
(461.21)
1.95%
0.00%
0.35%
0.26%
173.52
(0.03)
30.90
23.10
5.19%
0.05%
3.80%
–
8.90%
10.34%
(14.22)
(0.14)
(10.42)
–
(24.38)
(28.33)
(0.65%)
(0.01%)
1.89%
0.00%
0.08%
(0.06%)
(56.32)
(0.41)
163.10
(0.03)
6.52
(5.23)
0.00%
1.53
0.03%
2.75
0.03%
(0.08)
0.03%
2.67
–
–
–
–
–
–
–
–
(0.12%)
0.00%
(73.82)
0.12
0.57%
0.00%
51.03
(0.17)
2.98%
–
(8.18)
–
0.50%
0.00%
42.85
(0.17)
L&T Information Technology Services
0.00%
(0.37)
0.00%
(0.01)
–
–
0.00%
(0.01)
(Shanghai) Co., Ltd.
L&T Infotech Financial Services
0.39%
245.78
0.85%
75.48
(0.75%)
2.06
0.90%
77.54
Technologies Inc.
Larsen & Toubro Infotech Canada Limited
Larsen & Toubro Infotech LLC
Larsen and Toubro Infotech South Africa
(Proprietary) LTD
Larsen & Toubro Infotech GmbH
Larsen & Toubro Infotech Austria GmbH
L&T Information Technology Spain SL
Larsen & Toubro Infotech Norge AS
Larsen & Toubro LLC
L&T Infotech S. DE R.L. DE C.V.
Syncordis S.A.
Syncordis SARL
Syncordis Limited
Syncordis Support Services S.A.
0.03%
0.01%
0.01%
0.58%
0.00%
0.00%
0.00%
0.01%
0.00%
0.03%
0.00%
(0.01%)
0.00%
17.68
3.34
3.12
358.79
0.32
2.48
0.02
2.59
(0.60)
21.25
0.54
(4.54)
1.15
0.08%
0.00%
(0.01%)
0.06%
0.00%
(0.01%)
–
0.00%
(0.01%)
0.08%
(0.05%)
(0.05%)
0.01%
6.76
0.35
(1.24)
5.16
(0.39)
(0.71)
–
0.03
(0.93)
6.71
(4.83)
(4.60)
1.03
0.01%
(0.06%)
0.24%
(0.71%)
0.00%
0.04%
–
(0.05%)
(0.01%)
0.32%
0.01%
(0.03%)
0.02%
(0.02)
0.17
(0.67)
1.94
(0.01)
(0.10)
–
0.15
0.01
(0.87)
(0.02)
0.07
(0.05)
0.08%
0.01%
(0.02%)
0.08%
(0.01%)
(0.01%)
–
0.00%
(0.01%)
0.07%
(0.06%)
(0.05%)
0.01%
6.74
0.52
(1.91)
7.10
(0.40)
(0.81)
–
0.18
(0.92)
5.84
(4.85)
(4.53)
0.98
540
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)
Nielsen+Partner Unternehmensberater
0.03%
15.06
0.01%
0.55
As % of
consolidated
other
comprehensive
income
0.17%
GmbH
Nielsen+Partner Unternehmensberater AG
Nielsen+Partner Pte Ltd
Nielsen+Partner S.A
Nielsen&Partner Company Limited
Nielsen&Partner Pty Ltd
Ruletronics Limited
Ruletronics Systems Inc
L&T Technology Services LLC
Graphene Solutions PTE Ltd.
Graphene Solutions SDN .BHD
Graphene Solutions Taiwan Limited
Esencia Technologies Inc
Financial Services:
0.00%
0.01%
0.01%
0.00%
0.00%
0.01%
0.01%
0.22%
0.00%
0.00%
0.00%
0.00%
2.06
9.27
4.72
(0.19)
0.50
6.66
4.06
136.93
1.50
0.17
1.27
(0.72)
0.01%
0.00%
0.00%
0.00%
0.00%
0.01%
0.00%
0.87%
0.00%
0.00%
0.00%
0.78%
0.69
0.32
0.25
0.04
0.29
0.57
0.20
77.38
0.11
(0.01)
0.24
69.05
0.03%
0.17%
0.08%
(0.05%)
0.01%
0.08%
0.04%
(1.07%)
0.03%
0.00%
0.03%
(0.11%)
Amount
(v crore)
(0.47)
(0.08)
(0.46)
(0.22)
0.14
(0.02)
(0.22)
(0.11)
2.93
(0.07)
(0.01)
(0.07)
0.30
As % of
consolidated
total
comprehensive
income
0.00%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.93%
0.00%
0.00%
0.00%
0.80%
Amount
(v crore)
0.08
0.61
(0.14)
0.03
0.18
0.27
0.35
0.09
80.31
0.04
(0.02)
0.17
69.35
L&T Capital Markets (Middle East) Ltd
0.00%
1.17
(0.02%)
(1.56)
0.20%
(0.54)
(0.02%)
(2.10)
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 LLC
PT. Tamco Indonesia
Servowatch Systems Limited
Tamco Electrical Industries Australia Pty
Ltd.
Tamco Switchgear (Malaysia) SDN BHD
Thalest Limited
Others:
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
Magtorq Private Limited
0.01%
5.60
(0.02%)
(2.19)
(0.17%)
0.46
(0.02%)
(1.73)
(0.02%)
(0.01%)
0.27%
(0.03%)
0.01%
(0.04%)
0.01%
0.85%
0.01%
1.23%
0.65%
(10.94%)
0.12%
–
0.01%
(12.30)
(3.74)
(0.01%)
0.00%
(0.62)
0.10
0.02%
0.06%
(0.04)
(0.16)
(0.01%)
0.00%
166.45
(16.00)
0.18%
(0.03%)
16.14
(2.88)
(3.12%)
0.27%
8.54
(0.74)
0.29%
(0.04%)
2.90
(24.65)
5.35
527.84
7.77
769.06
407.36
48840.69
(6826.11)
(0.02%)
(0.08%)
(0.03%)
0.19%
0.00%
5.85%
4.99%
(14.73%)
(1.79)
(6.93)
(2.23)
1.06%
(0.16%)
0.03%
16.84
(0.14)
(1.10%)
0.06%
(2.89)
0.42
(0.08)
3.01
(0.15)
521.29
444.03
3951.63
(1311.45)
145.29%
1.81%
16.10%
(398.08)
(4.97)
(521.42)
(44.11)
(0.05%)
(0.08%)
(0.03%)
0.23%
0.00%
1.43%
5.09%
(15.71%)
(0.66)
(0.06)
24.68
(3.62)
(4.68)
(6.51)
(2.31)
19.85
(0.29)
123.21
439.06
3430.21
(1355.56)
76.73
–
4.76
0.18%
–
0.00%
16.31
–
0.10
0.12%
–
–
(0.32)
–
–
0.19%
–
0.00%
15.99
–
0.10
541
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
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)
Magtorq Engineering Solutions Private
0.00%
0.39
0.00%
0.05
Limited
Foreign Associates
As % of
consolidated
other
comprehensive
income
–
Amount
(v crore)
–
As % of
consolidated
total
comprehensive
income
0.00%
Amount
(v crore)
0.05
Larsen & Toubro Qatar & HBK Contracting
(0.01%)
(3.63)
–
–
0.08%
(0.22)
0.00%
(0.22)
Co. WLL
L&T Camp Facilities LLC
Total Associates
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:
0.01%
4.93
83.18
0.01%
0.95
17.41
0.01%
(0.04)
(0.58)
0.01%
0.91
16.83
1.18%
0.23%
0.07%
0.05%
737.16
146.39
45.38
30.60
1.60%
0.26%
0.11%
0.07%
142.78
23.22
(1.49%)
4.27%
4.09
(11.70)
9.74
6.07
0.01%
(0.28%)
(0.03)
0.78
1.70%
0.13%
0.11%
0.08%
146.87
11.52
9.71
6.85
L&T Special Steels and Heavy Forgings
(0.96%)
(601.24)
(1.78%)
(158.28)
0.00%
(0.01)
(1.83%)
(158.29)
Private Limited
Defence Engineering:
L&T MBDA Missile Systems Limited
0.00%
0.45
0.00%
(0.02)
–
–
0.00%
(0.02)
Hydrocarbon:
L&T Sapura Offshore Private Limited
L&T Sapura Shipping Private Limited
L&T-Gulf Private Limited
Developmental Projects:
0.00%
0.48%
0.03%
0.29
300.73
15.90
0.00%
0.00%
0.02%
(0.16)
0.40
1.41
–
(6.31%)
–
–
17.28
–
0.00%
0.20%
0.02%
(0.16)
17.68
1.41
L&T Infrastructure Development Projects
2.17%
1354.74
6.44%
573.55
(8.83%)
24.20
6.93%
597.75
Limited (Consolidated)
Valves, Construction Equipment and
Others:
L&T Kobelco Machinery Private Limited
0.04%
26.70
0.07%
6.27
0.01%
(0.04)
0.07%
6.23
Others:
Raykal Aluminium Company Private
0.00%
0.23
0.00%
(0.03)
–
–
0.00%
(0.03)
Limited
Foreign Joint Ventures
Hydrocarbon:
Indiran Engineering Projects & Systems,
0.00%
(0.31)
0.00%
(0.20)
(0.03%)
0.09
0.00%
(0.11)
Kish, (PJSC)
L&T Hydrocarbon Caspian LLC
Total Joint Ventures
CFS Adjustment and elimination
Total
–
(55.04%)
–
2057.02
(34330.70)
62374.80
–
(11.62%)
–
604.75
(1034.91)
8905.13
–
(137.27%)
–
34.66
376.09
(273.99)
–
(7.63%)
–
639.41
(658.82)
8631.14
542
Notes forming part of the Consolidated Financial statements (contd.)
Note [60]
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:
sr.
no.
1
2
3
4
5
Particulars
note
inventories
trade receivables
loans - current
other financial assets
other current assets
11
13
16
18
19
as at 31-3-2019
as at 31-3-2018
Within
twelve
months
5318.60
36645.76
625.59
2006.28
45317.53
after
twelve
months
1095.33
392.41
1.10
–
7370.50
total
6413.93
37038.17
626.69
2006.28
52688.03
Within
twelve
months
3873.97
32589.64
556.38
4194.41
38949.33
after
twelve
months
973.83
527.34
3.34
–
8947.69
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
v crore
total
4847.80
33116.98
559.72
4194.41
47897.02
v crore
total
Particulars
note
as at 31-3-2019
Within
twelve
months
after
twelve
months
total
as at 31-3-2018
Within
twelve
months
after
twelve
months
trade payables :
due to micro enterprises and small
enterprises
due to others
other financial liabilities
other current liabilities
Provisions
252.96
41583.63
4734.92
26333.88
2864.80
8.16
1150.06
80.16
4832.67
173.04
261.12
42733.69
4815.08
31166.55
3037.84
166.40
36865.06
5000.35
22344.67
2328.52
28
29
30
31
9.76
176.16
756.16 37621.22
5032.18
4750.97 27095.64
2525.05
196.53
31.83
sr.
no.
1
2
3
4
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:
On March 30, 2019, the Ministry of Corporate Affairs notified Ind AS 116 “Leases”, applicable in respect of accounting periods
commencing on or after april 1, 2019.
Ind AS 116 “Leases” supersedes AS 17 “Leases” in respect of accounting periods commencing on or after April 1, 2019. Ind AS 116
sets out the principles for the recognition, measurement, presentation and disclosure of leases. Pursuant to transition methods
permitted under Ind AS 116, the Group is proposing to use “modified retrospective approach” for transitioning to Ind AS 116 with
effect from april 1, 2019. Under modified retrospective approach, cumulative effect of initially applying the accounting standard as
at april 1, 2019 will be recognised as an adjustment to the opening balance of retained earnings of the financial year 2019-20 and
figures for the financial year 2018-19 will not be restated as per the new accounting standard. With respect to existing leases as at the
date of initial application of the accounting standard, the Group is proposing to use the practical expedient available on transition to
Ind AS 116 and will not reassess whether a contract is or contains a lease and instead apply Ind AS 116 only to the contracts that were
previously identified as lease applying ind as 17.
the Group has carried out an initial assessment of the impact of adopting this standard and there would not be any significant impact
on the financial statements of the Group.
543
Notes FoRminG PaRt oF tHe Consolidated FinanCial statements annUal RePoRt 2018-19
Notes forming part of the Consolidated Financial statements (contd.)
Note [62]
disclosure pursuant to ind as 7 “statement of Cash Flows” - Changes in liabilities arising from financing activities:
sr. no.
Particulars
1
2
3
4
5
6
7
8
9
10
11
Balance as at 1-4-2017
Proceeds from Borrowings (net)
effect of changes in foreign exchange
rates
interest accrued (net of interest paid)
other changes (transfer within categories)
Balance as at 31-3-2018
Proceeds from Borrowings (net)
effect of changes in foreign exchange
rates
interest accrued (net of interest paid)
other changes (transfer within categories)
Balance as at 31-3-2019
non-current
borrowings
(note 22)
67340.58
14133.39
11.23
(326.42)
(8244.02)
72914.76
8493.76
46.45
(250.03)
(7084.15)
74120.79
amounts reported in statement of Cash Flows under financing activities:
Current borrowings
(note 26)
16534.47
2680.02
56.03
61.33
–
19331.85
7765.14
210.74
0.11
1916.00
29223.84
Particulars
Proceeds from non-current borrowings
Repayments of non-current borrowings
Proceeds from other borrowings (net)
Changes from financing cash flows (as above) (a)
Repayments on account of liability classified as held for sale (b)
total changes from financing cash flows (a+b)
Current maturities
of long term
borrowings (note 27)
10078.90
(4172.13)
(8.64)
1135.32
8244.02
15277.47
1606.44
240.30
(81.82)
5168.15
22210.54
2018-19
24181.62
(14081.42)
7765.14
17865.34
–
17865.34
v crore
total
93953.95
12641.28
58.62
870.23
–
107524.08
17865.34
497.49
(331.74)
–
125555.17
v crore
2017-18
46903.46
(36942.20)
2680.02
12641.28
(22.28)
12619.00
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 252.91 crore
(previous year: R 385.17 crore).
Note [64]
The Group has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at
march 31, 2019. the disclosure pursuant to the said act is as under:
Particulars
Principal amount due to suppliers under msmed act
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
2018-19
193.92
0.13
125.39
–
0.30
0.38
11.25
8.24
v crore
2017-18
105.66
0.33
144.48
0.02
0.11
5.68
10.45
8.18
544
Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [65]
The financial services business of the Group has changed its accounting policy in respect of provision for expected credit loss to adopt
more prudent norms for determining stage 3 (credit impaired) assets and its classification of loans into at amortised cost or at fair value
through profit or loss (FVTPL) or at fair value through other comprehensive income (FVTOCI). Accordingly, the Balance Sheet as at
April 1, 2017 has been restated. The impact of the change amounting to R 753.49 crore (net of tax) has been debited to the opening
retained earnings as on April 1, 2017 as below. The impact on the financial results for 2017-18 is not material.
v crore
Particulars
Assets
As at
April 1, 2017
As at
March 31, 2017
Impact of
change
Remarks
Loan towards financing activities
70261.24
72061.24
(1800.00) Additional provision as per expected
credit loss (ECL) method on change in
accounting policy
Deferred tax assets (net)
2359.10
1736.15
622.94 Deferred tax assets on additional ECL
Total
Equity and Liabilities
Other equity
provision
(1177.06)
49276.44
50029.93
(753.49) Net impact on retained earnings
(Group share)
Non-controlling interests
3140.03
3563.60
(423.57) Share of Non-controlling interests on
Total
NOTE [66]
additional ECL provision (net of tax)
(1177.06)
Subsequent to the year under review, the Company has divested its entire stake in L&T Kobelco Machinery Private Limited (part of
Others Segment) to Kobe Steel, Ltd. on April 17, 2019. Since the criteria for classifying the said investment as held for sale is not met as
at reporting date, the same has not been classified as held for sale in the consolidated financial statements.
NOTE [67]
The Board of Directors in its meeting held on May 10, 2019, has approved amalgamation of its wholly-owned subsidiary
L&T Shipbuilding Limited (‘LTSB’) with the Company subject to receipt of regulatory and other approvals.
NOTE [68]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2019.
NOTE [69]
Figures for the previous year have been regrouped/re-classified to conform to the figures of the current year.
545
salient features of the financial statements of subsidiaries/associate companies/joint ventures annuaL report 2018-19
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
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: * Date of incorporation
546
1
Bhilai
Power
Supply
Company
Limited
31-Mar-19
INR
2
L&T
Shipbuilding
Limited
31-Mar-19
INR
3
L&T
Electricals
and
Automation
Limited
31-Mar-19
INR
4
Hi-Tech
Rock
Products &
Aggregates
Limited
31-Mar-19
INR
5
L&T
Seawoods
Limited
31-Mar-19
INR
6
Kesun Iron
and Steel
Company
Private
Limited
31-Mar-19
INR
7
L&T Valves
Limited
v crore
8
L&T Realty
Limited
31-Mar-19
INR
31-Mar-19
INR
–
11-Jul-95* 13-Nov-07*
–
–
12-Dec-07*
–
01-Jan-08*
–
13-Mar-08*
–
16-Jan-09* 23-Nov-61* 30-Nov-07*
–
–
0.05
444.00
7.44
0.05
1654.55
0.01
18.00
47.16
–
1.07
1.12
1.12
–
–
–
–
–
–
–
–
–
99.90
(1669.59)
3810.25
2584.66
2584.66
11.87
599.77
(415.10)
–
(415.10)
–
–
–
–
97.00
(5.41)
8.92
10.95
10.95
–
–
(2.44)
–
(2.44)
–
–
–
–
100.00
14.10
400.73
414.88
414.88
299.80
360.14
4.39
1.28
3.11
–
–
–
–
100.00
9
Chennai
Vision
Developers
Private
Limited
31-Mar-19
INR
10
L&T Vision
Ventures
Limited
11
L&T Power
Limited
12
L&T
Cassidian
Limited
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
1052.36
71.13
2778.04
2778.04
–
281.19
20.99
(24.31)
45.30
–
–
–
–
100.00
13
L&T
Aviation
Services
Private
Limited
31-Mar-19
INR
(0.28)
0.29
0.02
0.02
–
–
(0.00)
–
(0.00)
–
–
–
–
95.00
421.04
556.27
995.31
995.31
33.86
739.32
(219.12)
(74.39)
(144.73)
–
–
–
–
100.00
14
Larsen
& Toubro
Infotech
Limited
15
L&T Finance
Holdings
Limited
204.27
83.81
335.24
335.24
43.45
51.84
(828.32)
7.36
(835.68)
–
–
–
–
100.00
16
L&T
Housing
Finance
Limited
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
–
14-Aug-08* 22-Dec-06* 09-Mar-06* 15-Apr-11* 06-Nov-09* 23-Dec-96* 01-May-08*
–
–
–
–
–
–
–
09-Oct-12
0.01
0.05
0.05
0.05
45.60
17.35
1998.81
165.37
(0.03)
0.02
0.00
0.00
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
(4.70)
10.89
6.24
6.24
–
–
(0.02)
–
(0.02)
–
–
–
–
68.00
5.21
0.06
5.32
5.32
5.31
–
0.25
0.03
0.22
–
–
–
–
99.99
(0.05)
0.00
0.00
0.00
–
–
–
–
–
–
–
–
–
100.00
(11.68)
13.86
47.78
47.78
–
17.99
(2.05)
(0.55)
(1.50)
–
–
–
–
100.00
4696.10
1513.15
6226.60
6226.60
2260.06
8907.20
1959.75
484.69
1475.06
(216.84)
–
(268.94)
–
74.80
5831.54
2218.53
10048.88
10048.88
9146.20
482.11
304.03
36.97
267.06
–
–
(199.70)
–
63.91
1366.57
11559.29
13091.23
13091.23
1617.18
1484.03
394.08
92.07
302.01
(114.94)
–
–
–
63.91
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.
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: * Date of incorporation
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-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
23
L&T Infra
Investment
Partners
Advisory
Private
Limited
31-Mar-19
INR
24
L&T Infra
Investment
Partners
Trustee
Private
Limited
31-Mar-19
INR
–
31-Dec-12 07-Feb-13* 25-Apr-96* 30-Apr-96* 18-Apr-06* 19-Mar-13* 30-May-11* 12-Aug-11*
–
–
–
–
–
–
–
1599.14
52.31
251.82
0.15
1255.30
490.18
5.00
0.10
7301.47
46936.55
55837.16
55837.16
4683.62
6890.59
1303.05
457.12
845.93
(191.90)
–
–
–
63.91
25
L&T
Financial
Consultants
Limited
31-Mar-19
INR
–
16-Jun-11*
30.14
17.17
99.62
99.62
68.50
77.32
40.89
7.62
33.27
–
–
–
–
63.91
275.40
77.15
604.37
604.37
277.79
618.84
88.35
–
88.35
(30.22)
–
–
–
63.91
1.28
0.06
1.49
1.49
1.11
0.07
(0.08)
0.02
(0.10)
–
–
–
–
63.91
2675.06
24478.41
28408.77
28408.77
2080.54
2817.18
421.88
189.99
231.89
–
–
–
–
63.91
571.04
7545.17
8606.39
8606.39
167.04
728.56
131.66
–
131.66
–
–
–
–
63.91
6.21
1.50
12.71
12.71
8.23
6.52
(5.91)
(1.64)
(4.27)
–
–
–
–
63.91
26
Mudit
Cement
Private
Limited
31-Mar-19
INR
27
L&T Capital
Company
Limited
28
L&T Power
Development
Limited
31-Mar-19
INR
31-Mar-19
INR
29
L&T
Uttaranchal
Hydropower
Limited
31-Mar-19
INR
30
L&T
Arunachal
Hydropower
Limited
31-Mar-19
INR
31
L&T
Himachal
Hydropower
Limited
31-Mar-19
INR
–
27-Dec-13 06-Apr-00* 12-Sep-07* 13-Nov-06* 24-Jun-10* 22-Jun-10*
–
–
–
–
–
(0.05)
0.01
0.06
0.06
0.03
0.03
0.00
(0.00)
0.00
–
–
–
–
63.91
32
Nabha
Power
Limited
31-Mar-19
INR
–
09-Apr-07
18.75
2.10
0.05
3112.70
161.05
40.39
200.55
2325.00
48.55
414.89
482.19
482.19
4.26
81.06
16.60
4.66
11.94
(6.75)
–
–
–
63.91
(28.30)
61.32
35.12
35.12
–
–
(6.26)
0.63
(6.89)
–
–
–
–
63.91
4.91
0.07
5.03
5.03
0.01
0.75
0.47
(0.00)
0.47
(9.00)
–
–
–
100.00
(144.75)
1.10
2969.05
2969.05
2963.97
6.78
(148.09)
0.03
(148.12)
–
–
–
–
100.00
1141.48
112.60
1415.13
1415.13
0.30
–
0.03
0.00
0.03
–
–
–
–
100.00
(40.49)
0.11
0.01
0.01
–
–
(40.68)
0.00
(40.68)
–
–
–
–
100.00
(201.55)
1.12
0.12
0.12
–
–
(201.27)
0.00
(201.27)
–
–
–
–
100.00
920.07
8023.75
11268.82
11268.82
–
3968.04
121.03
24.61
96.42
–
–
–
–
100.00
547
salient features of the financial statements of subsidiaries/associate companies/joint ventures annuaL report 2018-19
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 Thales
L&T
Technology
Metro Rail
Services
(Hyderabad)
Private
Limited
Limited
36
L&T
Infrastructure
Engineering
Limited
35
L&T
Construction
Equipment
Limited
39
L&T
Hydrocarbon
Engineering
Limited
34
L&T
Technology
Services
Limited
v crore
40
L&T Infra
Contractors
Private
Limited
Particulars
Sr.
no.
Sr. No.
38
Sahibganj
Ganges
Bridge-
Company
Private
Limited
31-Mar-19
INR
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity / Reserves and surplus (as
applicable)
Liabilities
Total equity and liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - preference
Proposed dividend - equity
Proposed dividend - preference
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity / Reserves and surplus (as
applicable)
Liabilities
Total equity and liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - preference
Proposed dividend - equity
Proposed dividend - preference
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Note: * Date of incorporation
548
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
–
24-Aug-10* 14-Jun-12*
–
–
–
29-Jul-97* 09-Dec-98*
–
15-Feb-14
31-Mar-19
INR
31-Mar-19
INR
–
–
14-Jul-16* 02-Apr-09* 17-Mar-17*
–
2427.18
20.80
120.00
3.60
2.05
0.01
1000.05
0.01
(218.93)
13748.98
15957.23
15957.23
–
1629.04
(147.32)
0.82
(148.14)
–
–
–
–
100.00
2415.12
789.42
3225.34
3225.34
752.40
4712.00
941.45
241.35
700.10
(77.98)
–
(140.42)
–
78.88
41
Esencia
Technologies
India Private
Limited
31-Mar-19
INR
42
Syncordis
Software
Services
India Private
Limited
31-Mar-19
INR
242.10
1050.80
1412.90
1412.90
92.75
493.05
8.75
(47.30)
56.05
(318.00)
–
–
–
100.00
43
LTR SSM
Private
Limited
40.41
42.58
86.59
86.59
–
68.32
6.92
2.40
4.52
–
–
–
–
100.00
44
Larsen &
Toubro LLC
8.56
71.40
82.01
82.01
7.11
116.75
12.81
2.14
10.67
–
–
–
–
58.37
45
Larsen
& Toubro
Infotech
GmbH
31-Mar-19
INR
31-Mar-19
USD
31-Mar-19
EURO
(0.01)
–
–
–
–
–
0.00
0.00
0.00
–
–
–
–
100.00
989.40
9886.94
11876.39
11876.39
2771.78
12694.83
847.35
292.59
554.76
(250.01)
(60.90)
–
–
100.00
(0.02)
0.01
0.00
0.00
–
–
(0.01)
–
(0.01)
–
–
–
–
100.00
46
Larsen
& Toubro
Infotech
Canada
Limited
31-Mar-19
CAD
47
Larsen
& Toubro
Infotech LLC
31-Mar-19
USD
48
L&T Infotech
Financial
Services
Technologies
Inc.
31-Mar-19
CAD
–
31-May-17
–
11-Dec-17 24-Sept-18*
–
69.16
77.67
02-Jan-01* 14-Jun-99*
51.54
25-Apr-00
69.16
21-Jul-09*
51.54
01-Jan-11
0.01
0.45
0.10
0.36
0.39
0.00
–
193.28
0.69
0.05
0.75
0.75
–
1.59
0.22
0.08
0.14
–
–
–
–
78.88
1.57
1.01
3.03
3.03
–
7.08
0.94
0.29
0.65
–
–
–
–
74.80
(0.05)
0.00
0.05
0.05
–
–
(0.05)
–
(0.05)
–
–
–
–
100.00
2.23
0.94
3.53
3.53
–
3.43
0.04
0.01
0.03
–
–
–
–
98.80
353.80
189.39
543.58
543.58
–
94.07
5.42
(0.85)
6.27
(8.10)
–
–
–
74.80
17.80
25.46
43.26
43.26
–
164.79
9.10
2.44
6.66
–
–
–
–
74.80
3.34
0.48
3.82
3.82
–
6.71
0.32
–
0.32
–
–
–
–
74.80
53.34
46.71
293.33
293.33
–
298.19
104.31
28.44
75.87
(31.79)
–
–
–
74.80
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
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
49
Larsen &
Toubro
Infotech
South Africa
(Proprietary)
Limited
31-Mar-19
ZAR
50
L&T
Information
Technology
Services
(Shanghai) Co.,
Ltd.
31-Dec-18
CNY
51
L&T Realty FZE
52
Larsen &
Toubro
International
FZE
53
Larsen &
Toubro
Hydrocarbon
International
Limited LLC
54
Thalest
Limited
55
Servowatch
Systems
Limited
56
L&T Modular
Fabrication
Yard LLC
31-Mar-19
AED
31-Mar-19
USD
31-Dec-18
SAR
31-Mar-19
GBP
31-Mar-19
GBP
31-Dec-18
OMR
4.77
18.60
25-Jul-12 28-Jun-13* 27-Jan-08* 25-Sep-01* 17-Jun-13*
69.16
10.14
18.83
90.53
04-Apr-12
90.53
04-Apr-12
179.63
05-Jul-06*
0.21
1.09
16.94
756.21
0.93
1.21
23.08
51.81
3.20
16.60
20.01
20.01
–
25.83
(1.48)
(0.40)
(1.08)
–
–
–
–
56.02
(2.80)
4.78
3.07
3.07
–
4.11
(1.51)
–
(1.51)
–
–
–
–
74.80
(10.96)
0.12
6.10
6.10
–
–
(2.75)
–
(2.75)
–
–
–
–
100.00
(38.61)
22.55
740.15
740.15
577.14
0.19
532.51
11.66
520.85
(487.42)
–
–
–
100.00
(3.70)
7.18
4.41
4.41
–
–
(0.22)
0.21
(0.43)
–
–
–
–
100.00
6.56
–
7.77
7.77
–
–
(0.14)
–
(0.14)
–
–
–
–
100.00
(47.73)
53.59
28.94
28.94
–
43.44
(7.04)
(0.11)
(6.93)
–
–
–
–
100.00
62
Larsen & Toubro
Saudi Arabia LLC
63
Larsen Toubro
Arabia LLC
131.91
281.80
465.52
465.52
–
1089.79
183.79
–
183.79
–
–
–
–
70.00
64
L&T
Hydrocarbon
Saudi Company
(formerly known
as Larsen &
Toubro ATCO
Saudi LLC)
31-Dec-18
SAR
Sr. No.
Particulars
Sr.
no.
57
Larsen & Toubro
(East Asia) SDN.
BHD
58
Larsen & Toubro
Qatar LLC
59
L&T Overseas
Projects Nigeria
Limited
60
L&T Electricals
& Automation
Saudi Arabia
Company
Limited LLC
61
Larsen &
Toubro Kuwait
Construction
General
Contracting
Company, W.L.L
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: * Date of incorporation
31-Mar-19
MYR
31-Dec-18
QAR
31-Dec-18
NGN
31-Mar-19
SAR
31-Dec-18
KWD
31-Dec-18
SAR
31-Dec-18
SAR
16.94
19.00
13-Jun-96* 31-Mar-04*
0.19
18.60
15-Jul-04* 22-Aug-06* 29-Nov-06* 22-Jun-99*
229.91
18.44
18.60
01-Jul-12*
18.60
08-Jul-07*
1.27
0.38
0.19
33.19
45.98
26.74
18.60
1.86
(1.66)
3.08
2.69
2.69
–
2.42
0.16
0.00
0.16
–
–
–
–
30.00
0.18
4.41
4.97
4.97
0.19
–
(0.03)
–
(0.03)
–
–
–
–
49.00
(0.19)
0.03
0.03
0.03
–
–
(0.00)
–
(0.00)
–
–
–
–
100.00
(48.56)
149.22
133.85
133.85
–
146.38
(2.67)
0.30
(2.97)
–
–
–
–
100.00
(44.57)
22.39
23.80
23.80
–
–
0.45
–
0.45
–
–
–
–
49.00
555.11
1673.52
2255.37
2255.37
–
2140.92
281.60
58.34
223.26
(174.00)
–
–
–
100.00
(372.89)
806.33
452.04
452.04
–
825.54
88.53
12.97
75.56
–
–
–
–
75.00
(477.84)
1191.93
715.95
715.95
–
799.00
14.08
3.30
10.78
–
–
–
–
100.00
549
salient features of the financial statements of subsidiaries/associate companies/joint ventures annuaL report 2018-19
71
Kana
Controls
General
Trading &
Contracting
Company
W.L.L
31-Mar-19
KWD
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.)
69
65
Larsen
Tamco
& Toubro
Switchgear
Heavy
(Malaysia)
Engineering
Sdn. Bhd.
LLC
67
Tamco
Electrical
Industries
Australia
Pty Ltd.
70
L&T
Electrical &
Automation
FZE
66
Henikwon
Corporation
Sdn. Bhd.
v crore
72
Larsen
and Toubro
T&D SA
(Propreitary)
Limited
68
PT. Tamco
Indonesia
Particulars
Sr.
no.
Sr. No.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity / Reserves and surplus (as
applicable)
Liabilities
Total equity and liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - preference
Proposed dividend - equity
Proposed dividend - preference
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity / Reserves and surplus (as
applicable)
Liabilities
Total equity and liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - preference
Proposed dividend - equity
Proposed dividend - preference
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Note: * Date of incorporation
550
31-Mar-19
MYR
31-Mar-19
MYR
31-Mar-19
AUD
31-Dec-18
IDR
31-Dec-18
OMR
31-Mar-19
AED
31-Mar-19
ZAR
16.94
29-May-07
16.94
03-Jul-12
49.02
23-Apr-08
0.00
23-Apr-08
181.24
07-Apr-08*
18.83
04-Apr-08*
227.43
10-Sep-13
4.77
06-Sep-10*
169.40
10.93
80.75
12.58
102.67
1.88
2.27
3.58
358.47
249.66
777.53
777.53
–
529.96
19.88
3.05
16.83
(69.77)
–
–
–
100.00
(23.20)
29.29
17.02
17.02
–
51.35
(0.60)
0.00
(0.60)
–
–
–
–
100.00
(75.40)
11.48
16.83
16.83
–
18.43
(2.23)
–
(2.23)
–
–
–
–
100.00
(52.45)
133.84
93.97
93.97
–
40.54
(5.46)
(0.03)
(5.43)
–
–
–
–
100.00
(83.11)
112.73
132.29
132.29
–
105.01
(44.43)
(2.49)
(41.94)
–
–
–
–
70.00
178.74
199.41
380.03
380.03
–
453.99
19.82
3.68
16.14
–
–
–
–
100.00
(6.01)
22.30
18.56
18.56
–
56.63
0.06
–
0.06
–
–
–
–
49.00
(0.62)
0.28
3.24
3.24
–
–
0.22
–
0.22
–
–
–
–
72.50
73
L&T
Technology
Services LLC
31-Mar-19
USD
74
L&T
Infotech
Austria
GmbH
31-Mar-19
EURO
75
L&T Global
Holdings
Limited
31-Mar-19
USD
76
L&T
Information
Technology
Spain, S.L.
31-Mar-19
EURO
77
Larsen
& Toubro
(Oman) LLC
78
Esencia
Technologies
Inc.
79
Syncordis
S.A.
80
Syncordis
SARL
31-Dec-18
OMR
31-Mar-19
USD
31-Dec-18
EURO
31-Dec-18
EURO
69.16
26-Jun-14*
77.67
18-Jun-15*
69.16
24-Feb-16*
77.67
01-Feb-16*
181.24
29-Jan-94*
69.16
31-May-17
79.99
15-Dec-17
79.99
15-Dec-17
103.80
0.27
55.32
0.39
26.41
0.01
0.28
0.12
33.13
72.85
209.78
209.78
–
208.23
77.57
0.19
77.38
–
–
–
–
78.88
0.42
0.16
0.85
0.85
–
3.15
0.21
0.06
0.15
–
–
–
–
74.80
352.04
781.90
1189.26
1189.26
1186.16
–
444.03
–
444.03
–
–
–
–
100.00
2.24
11.31
13.94
13.94
–
37.30
(1.11)
(0.24)
(0.87)
–
–
–
–
74.80
398.31
2943.08
3367.80
3367.80
–
2592.69
13.74
(0.45)
14.19
–
–
–
–
65.00
11.72
33.64
45.37
45.37
0.03
129.06
91.95
22.90
69.05
(74.85)
–
–
–
78.88
20.12
33.84
54.24
54.24
1.01
115.76
10.49
2.58
7.91
–
–
–
–
74.80
0.95
17.91
18.98
18.98
–
28.83
(6.01)
(1.17)
(4.84)
–
–
–
–
74.80
v crore
88
L&T - MHPS
Turbine
Generators
Private
Limited
31-Mar-19
INR
statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part a: “subsidiaries” [as per section 2(87) of the companies act, 2013] (contd.)
85
81
L&T -
Syncordis
Sargent
Limited
and Lundy
Limited
84
Larsen
and Toubro
Electromech
LLC
87
L&T - MHPS
Boilers
Private
Limited
83
L&T
Infotech S.
DE R.L. DE
C.V.
82
Syncordis
Support
Services
S.A.
86
L&T - Gulf
Private
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
31-Mar-19
GBP
31-Dec-18
EURO
31-Dec-18
MXN
31-Dec-18
OMR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
90.53
15-Dec-17
79.99
15-Dec-17
3.54
01-Mar-17*
181.24
–
01-Jan-05 05-May-95* 11-Jan-08* 09-Oct-06* 27-Dec-06*
–
–
–
0.01
0.24
0.00
5.44
5.57
8.00
234.10
710.60
(2.34)
6.61
4.28
4.28
–
4.62
(2.90)
(0.54)
(2.36)
–
–
–
–
74.80
89
Raykal
Aluminium
Company
Private
Limited
31-Mar-19
INR
–
23-Feb-99*
0.90
3.84
4.98
4.98
–
–
0.95
0.00
0.95
–
–
–
–
74.80
90
L&T Special
Steels and
Heavy
Forgings
Private
Limited
31-Mar-19
INR
(0.48)
6.54
6.06
6.06
–
15.55
(0.87)
(0.28)
(0.59)
–
–
–
–
74.80
(138.08)
418.18
285.54
285.54
–
345.10
18.29
0.73
17.56
–
–
–
–
70.00
55.64
26.79
88.00
88.00
30.98
93.41
14.32
2.18
12.14
(15.00)
–
–
–
50.0001
23.79
8.04
39.83
39.83
1.22
24.75
3.58
0.75
2.83
–
–
–
–
50.0002
1211.32
2487.98
3933.40
3933.40
455.88
2735.70
417.89
137.93
279.96
–
–
(23.41)
–
51.00
91
L&T Howden
Private
Limited
92
L&T Sapura
Offshore
Private
Limited
93
L&T Kobelco
Machinery
Private
Limited
94
L&T Sapura
Shipping
Private
Limited
95
L&T MBDA
Missile
Systems
Limited
(423.56)
1935.59
2222.63
2222.63
427.30
812.08
45.56
–
45.56
–
–
–
–
51.00
96
L&T
Infrastructure
Development
Projects
Limited
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
USD
31-Mar-19
INR
31-Mar-19
INR
–
–
01-Jul-09* 17-Jun-10* 02-Sep-10* 25-Nov-10* 02-Sep-10* 05-Apr-17* 26-Feb-01*
–
–
–
–
–
0.05
566.60
30.00
0.01
50.00
158.85
1.00
321.06
0.25
0.67
0.97
0.97
–
–
(0.04)
–
(0.04)
–
–
–
–
75.50
(1379.09)
2346.38
1533.89
1533.89
–
210.83
(213.88)
0.01
(213.89)
–
–
–
–
74.00
60.58
118.52
209.10
209.10
–
162.88
26.06
6.62
19.44
–
–
–
–
50.10
0.48
5.93
6.42
6.42
–
–
(0.26)
0.00
(0.26)
–
–
–
–
60.00
2.28
61.02
113.30
113.30
–
101.30
14.92
2.70
12.22
–
–
(1.15)
–
51.00
342.36
309.16
810.37
810.37
–
108.03
1.14
0.48
0.66
–
–
–
–
60.00
(0.12)
55.81
56.69
56.69
–
–
(0.04)
–
(0.04)
–
–
–
–
51.00
2182.46
1687.14
4190.66
4190.66
3284.64
246.34
92.13
(0.47)
92.60
–
–
–
–
97.45
Note: * Date of incorporation
551
salient features of the financial statements of subsidiaries/associate companies/joint ventures annuaL report 2018-19
statement containing salient features of the financial statements of
subsidiaries/associate companies/joint ventures
Part a: “subsidiaries” [as per section 2(87) of the companies act, 2013] (contd.)
101
97
L&T
Panipat
Halol-Shamlaji
Elevated
Tollway
Corridor
Limited
Limited
100
L&T
Transportation
Infrastructure
Limited
99
L&T Interstate
Road Corridor
Limited
102
Ahmedabad-
Maliya Tollway
Limited
98
Vadodara
Bharuch
Tollway
Limited
Particulars
Sr.
no.
Sr. No.
v crore
104
L&T Deccan
Tollways
Limited
103
L&T
Samakhiali
Gandhidham
Tollway
Limited
31-Mar-19
INR
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity / Reserves and surplus (as
applicable)
Liabilities
Total equity and liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - preference
Proposed dividend - equity
Proposed dividend - preference
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Sr. No.
Particulars
Sr.
no.
1
2
Financial year ending on
Currency
Exchange rate on the last day of
financial year
Date of Acquisition
Share capital (including share application
money pending allotment)
Other equity / Reserves and surplus (as
applicable)
Liabilities
Total equity and liabilities
Total assets
Investments
Turnover
Profit before taxation
Provision for taxation
Profit after taxation
Interim dividend - equity
Interim dividend - preference
Proposed dividend - equity
Proposed dividend - preference
3
4
5
6
7
8
9
10
11
12
13
14
15 % of share holding
Note: * Date of incorporation
552
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
–
21-Jul-05* 23-Dec-05* 02-Feb-06* 24-Sep-97* 09-Sep-08* 09-Sep-08* 05-Feb-10* 20-Dec-11*
–
–
–
–
–
–
–
30.05
43.50
57.16
41.40
795.35
149.00
80.54
285.34
(317.75)
498.21
210.51
210.51
9.68
78.30
(19.35)
–
(19.35)
–
–
–
–
97.45
(192.50)
895.17
746.17
746.17
135.85
345.13
72.81
15.92
56.89
–
–
–
–
97.45
105
Kudgi
Transmission
Limited
31-Mar-19
INR
106
L&T
Sambalpur
- Rourkela
Tollway
Limited
31-Mar-19
INR
(13.63)
261.88
305.41
305.41
141.38
30.29
(56.54)
–
(56.54)
–
–
–
–
97.45
171.33
175.38
388.11
388.11
56.64
32.01
22.22
6.97
15.25
–
–
–
–
98.12
(410.45)
747.33
1132.23
1132.23
–
86.23
(49.51)
–
(49.51)
–
–
–
–
47.75
(57.34)
1227.08
1318.74
1318.74
7.16
190.41
(12.38)
–
(12.38)
–
–
–
–
97.45
(204.17)
1759.01
1635.38
1635.38
–
154.36
(108.38)
–
(108.38)
–
–
–
–
97.45
(343.33)
2248.39
2190.40
2190.40
46.32
134.83
(227.40)
–
(227.40)
–
–
–
–
97.45
107
PNG Tollway
Limited
108
L&T
Rajkot-Vadinar
Tollway
Limited
109
L&T Chennai
- Tada Tollway
Limited
110
L&T Capital
Markets
(Middle East)
Limited
111
Larsen &
Toubro
Infotech Norge
AS
112
Graphene
Semiconductor
Services
Private Limited
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
INR
31-Mar-19
USD
31-Mar-19
NOK
31-Mar-19
INR
–
30-Aug-13 18-Oct-13* 16-Feb-09* 08-Sep-08* 24-Mar-08*
–
–
–
–
69.16
18.83
01-Jul-18* 20-Nov-18*
–
15-Oct-18
192.60
290.03
169.10
110.00
42.00
5.19
0.03
1.43
157.06
1604.86
1954.52
1954.52
277.09
195.45
58.94
15.25
43.69
–
–
–
–
97.45
(66.37)
1116.11
1339.77
1339.77
89.83
224.28
(57.56)
–
(57.56)
–
–
–
–
97.45
(327.68)
974.20
815.62
815.62
–
–
194.12
–
194.12
–
–
–
–
72.11
(230.47)
956.78
836.31
836.31
–
104.10
(107.71)
–
(107.71)
–
–
–
–
97.45
(5.49)
357.25
393.76
393.76
–
–
(0.13)
–
(0.13)
–
–
–
–
97.45
(3.63)
18.24
19.80
19.80
–
1.90
(1.56)
–
(1.56)
–
–
–
–
63.91
(0.00)
–
0.03
0.03
–
–
0.00
–
0.00
–
–
–
–
74.80
19.89
6.99
28.31
28.31
1.74
34.58
6.44
1.74
4.70
–
–
–
–
78.88
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.)
117
113
L&T
Graphene
Hydrocarbon
Solutions
International
Pte. Ltd.
FZE
31-Mar-19
AED
118
L&T
Construction
Machinery
Limited
31-Mar-19
INR
119
Ruletronics
Systems
Private
Limited
31-Mar-19
INR
115
Graphene
Solutions
Taiwan
Limited
31-Dec-18
TWD
116
Seastar
Labs Private
Limited
114
Graphene
Solutions
SDN. BHD.
v crore
120
LT IDPL
INDVIT
Services
Limited
31-Mar-19
INR
31-Mar-19
SGD
31-Mar-19
MYR
31-Mar-19
INR
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
Note: * Date of incorporation
51.04
15-Oct-18
16.94
15-Oct-18
–
15-Oct-18
–
–
15-Oct-18 09-Sep-18* 18-Dec-18*
18.83
–
–
01-Feb-19 20-May-99*
0.31
0.17
1.12
0.05
0.29
0.01
0.51
13.95
1.19
0.62
2.12
2.12
–
3.49
0.16
0.05
0.11
–
–
–
–
78.88
0.00
0.03
0.20
0.20
–
–
(0.01)
(0.00)
(0.01)
–
–
–
–
78.88
0.15
0.24
1.51
1.51
–
0.52
0.30
0.06
0.24
–
–
–
–
78.88
0.16
0.38
0.59
0.59
–
–
0.11
–
0.11
–
–
–
–
78.88
(0.18)
0.28
0.39
0.39
–
–
(0.17)
–
(0.17)
–
–
–
–
100.00
–
0.00
0.01
0.01
–
–
–
–
–
–
–
–
–
100.00
3.31
2.13
5.95
5.95
–
1.03
(0.57)
(0.14)
(0.43)
–
–
–
–
74.80
23.34
73.26
110.55
110.55
70.00
6.72
4.19
0.60
3.59
–
–
–
–
97.45
notes:
a)
a)
b)
c)
d)
e)
f)
names of subsidiaries which are yet to commence operations:
pt Larsen & toubro Hydrocarbon engineering indonesia
L&t Hydrocarbon caspian LLc
L&t infra contractors private Limited
Ltr ssm private Limited
L&t construction machinery Limited
L&t Hydrocarbon international FZe
B)
names of subsidiaries which have been sold/dissolved/struck-off from the register of companies during the year:
sold:
L&t bpp tollway Limited
Krishnagiri thopur toll road Limited
(i)
a) marine infrastructure developer private Limited
b)
c)
d) Western andhra tollways Limited
e)
f)
Krishnagiri Walajahpet tollway Limited
devihalli Hassan tollway Limited
(ii) Dissolved/struck-off:
a)
b)
c)
d)
L&t idpL trustee manager pte. Ltd.
L&t trustee company private Limited
seawoods retail private Limited
seawoods realty private Limited
553
salient features of the financial statements of subsidiaries/associate companies/joint ventures annuaL report 2018-19
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
Seaport
(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-19
31-Mar-18
31-Dec-18
31-Dec-18
31-Mar-19
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
26-Oct-94
11-Feb-05
13-Sep-07
28-Jul-04
2-Aug-10
Number
45,00,000
98,30,000
2,450
100
9,000
Amount of Investment in Associates/Joint
Venture (R crore)
Total Share capital (R crore)
Reserves closing
Total No of shares
4.50
9.00
144.47
9.83
44.06
17.51
90,00,000
4,40,58,020
4.33
9.50
(0.76)
5,000
0.18
0.38
(7.59)
200
Extent of Holding % (effective)
50.00%
21.74%
49.00%
50.00%
Description of how there is significant influence
Refer Note 1
4.42
0.21
10.89
21,003
42.85%
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
76.73
13.39
4.28
(3.60)
4.76
32.62
14.31
–
–
1.23
–
–
–
0.24
–
554
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
Magtorq
Engineering
Solutions
Private Limited
Indiran
Engineering
Projects and
Systems Kish
PJSC
31-Mar-19
Refer Note 2
Gujarat
Leather
Industries
Limited
1
2
3
4
5
6
7
Date on which the Associate or Joint Venture was associated or acquired
2-Aug-10
31-Oct-09
27-Jun-91
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
Total No of shares
Extent of Holding % (effective)
Description of how there is significant influence
Reason why the associate/joint venture is not consolidated
22,000
0.22
0.24
0.74
24,000
39.28%
875
0.39
0.78
(1.40)
1,750
50.00%
Refer Note 1
Net worth attributable to Shareholding as per latest audited Balance Sheet (R crore)
0.39
(0.31)
Profit / (Loss) for the year (R crore)
Considered in Consolidation
Not Considered in Consolidation
0.14
–
(0.41)
–
7,35,000
–
–
–
–
50.00%
Refer Note 3
–
–
–
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. 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)
m. m. cHitaLe
(din 00101004)
sunita sHarma
(din 02949529)
mumbai, may 10, 2019
n. HariHaran
company secretary
m. no. a3471
viKram sinGH meHta
(din 00041197)
sanjeev aGa
(din 00022065)
n. Kumar
(din 00007848)
directors
555
salient features of the financial statements of subsidiaries/associate companies/joint ventures annuaL report 2018-19
notes
556
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) is/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
Fourth Annual General Meeting of the Company, to be held at Birla Matushri Sabhagar,19, Marine Lines, Mumbai - 400020 on Thursday, August
1, 2019 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, 2019 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, 2019.
Dividend on equity shares for the financial year 2018-19.
Appoint Mr. M. V. Satish (DIN: 06393156) as a Director liable to retire by rotation.
Appoint Mr. Shailendra Roy (DIN: 02144836), as a Director liable to retire by rotation.
Appoint Mr. R. Shankar Raman (DIN: 00019798), as a Director liable to retire by rotation.
Appoint Mr. J. D. Patil (DIN: 01252184), as a Director liable to retire by rotation.
Re-appoint Mr. M. M. Chitale (DIN: 00101004), as an Independent Director
Re-appoint Mr. M. Damodaran (DIN: 02106990), as an Independent Director and approve his continuation
beyond the age of 75 years
557
Item No.
resolutions
For
Against
9
Re-appoint Mr. Vikram Singh Mehta (DIN: 00041197), as an Independent Director
10
11
12
13
14
15
Re-appoint Mr. Adil Zainulbhai (DIN: 06646490), as an Independent Director
Change in scale of salary of Mr. S. N. Subrahmanyan (DIN: 02255382), Chief Executive Officer and Managing
Director
Change in scale of salary of Mr. R. Shankar Raman (DIN: 00019798), Chief Financial Officer & Whole-time Director
Alteration to the objects clause of the Memorandum of Association of the Company
Raise funds through issue of convertible bonds and/or equity shares through depository receipts and including
by way of Qualified Institution Placement (‘QIP’), to Qualified Institutional Buyers (‘QIB’) for an amount not
exceeding R 4000 Crore or US $ 600 million, if higher.
Ratification of remuneration payable to M/s R. Nanabhoy & Co. Cost Accountants (Regn. No. 00010) for the
financial year 2019-20.
Signed this ........................ day of ............... 2019
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 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.
558
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 Fintech 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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